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Adaptation towards reference values: A non-linear perspective

Georgellis, Yannis, Gregoriou, Andros, Tsitsianis, Nikolaos (2008) Adaptation towards reference values: A non-linear perspective. Journal of Economic Behavior and Organization, 67 (3-4). pp. 768-781. ISSN 0167-2681. (doi:10.1016/j.jebo.2007.08.007) (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided)

The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided. (Contact us about this Publication)
Official URL
http://dx.doi.org/10.1016/j.jebo.2007.08.007

Abstract

Using large-scale panel data, we examine the dynamics of adjustment towards reference points for key workplace attributes. We discover that an Exponential Smooth Transition Autoregressive (ESTAR) model is superior to a linear model in characterizing such a process. The speed of adjustment increases non-linearly with the distance from reference points and adjustment is faster for job satisfaction shocks compared to shocks in earnings or work hours. Our findings lend further credence to the relative utility hypothesis and highlight the inherently non-linear nature of the dynamic path of adjustment towards reference points, a previously neglected issue in the adaptation literature.

Item Type: Article
DOI/Identification number: 10.1016/j.jebo.2007.08.007
Uncontrolled keywords: Reference points; Relative utility; Adaptation; ESTAR models; Job satisfaction
Subjects: H Social Sciences
Divisions: Faculties > Social Sciences > Kent Business School
Depositing User: Yannis Georgellis
Date Deposited: 09 May 2014 01:00 UTC
Last Modified: 29 May 2019 12:35 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/41056 (The current URI for this page, for reference purposes)
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