Productivity effects of innovation, stress and social relations

B.R. Cowan, B. Sanditov, R. Weehuizen

Research output: Contribution to journalArticleAcademicpeer-review

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. 

Original languageEnglish
Pages (from-to)165-182
Number of pages18
JournalJournal of Economic Behavior & Organization
Volume79
Issue number3
DOIs
Publication statusPublished - Aug 2011

Keywords

  • Innovation
  • Stress
  • Social relationships
  • DEPRESSIVE SYMPTOMS
  • INFORMATION TECHNOLOGY
  • ALLOSTATIC LOAD
  • EMOTIONAL LABOR
  • MEDIATING ROLE
  • WORK
  • PERFORMANCE
  • MODEL
  • SUPPORT
  • RESOURCES

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