Workers keen to buy more goods keep toiling away
EVERY YEAR, as Americans polish off their Thanksgiving feasts, a particular type of television advertisement begins to air. The details vary, but the plot is always the same: one family member surprises another with the Christmas gift of a luxury car, often adorned with a cartoonishly large bow. The recipient never betrays a hint of the dismay one might expect to see on the face of someone whose partner has without consultation spent tens of thousands of dollars.
Some recent research suggests this might indeed be the case. A forthcoming paper by Chloé Michel, now at Swiss Re, Michelle Sovinsky of Mannheim University, Eugenio Proto of Bristol University and Andrew Oswald of Warwick University attempts to unpick the effect of advertising on welfare.
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