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Productivity effects of innovation, stress and social relations

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  • Cowan, Robin
  • Sanditov, Bulat
  • Weehuizen, Rifka

Abstract

Abstract Innovation is a source of increasing productivity, but also of stress. Psychological research shows that individual productivity increases and then decreases as stress levels increase. Agents' stress levels are determined by their own coping ability and by positive and negative spillovers to their social contacts. We model stress and inter-agent dynamics, identifying the relationships between innovation, stress and productivity. We characterize conditions under which multiple equilibria in stress levels and growth rates exist; and under which the dynamics exhibit hysteresis. High rates of innovation can result in high stress equilibrium and have a negative effect on economic growth.

Suggested Citation

  • Cowan, Robin & Sanditov, Bulat & Weehuizen, Rifka, 2011. "Productivity effects of innovation, stress and social relations," Journal of Economic Behavior & Organization, Elsevier, vol. 79(3), pages 165-182, August.
  • Handle: RePEc:eee:jeborg:v:79:y:2011:i:3:p:165-182
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    Cited by:

    1. Alam, Muhammad Aftab, 2016. "Techno-stress and productivity: Survey evidence from the aviation industry," Journal of Air Transport Management, Elsevier, vol. 50(C), pages 62-70.
    2. repec:kap:jbuset:v:150:y:2018:i:4:d:10.1007_s10551-016-3163-1 is not listed on IDEAS
    3. Rune Bysted & Kristina Risom Jespersen, 2014. "Exploring Managerial Mechanisms that Influence Innovative Work Behaviour: Comparing private and public employees," Public Management Review, Taylor & Francis Journals, vol. 16(2), pages 217-241, February.

    More about this item

    Keywords

    Innovation Stress Social relationships;

    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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