Tunnel effect

Tunnel effect - Tunnel effect Source: Article by Hirshman...

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Tunnel effect Source : Article by Hirshman and Rotschild Called the Changing Tolerance for Income Inequality in the Course of Economic Development Definition : The initial gratification is called the Tunnel Effect. For example: if a person’s neighbors start making more money than him, he has hope for the future and expectations- (one-way, two-lane tunnel) The initial gratification of the advances of others, because you believe you will soon advance with them. You do not initially envy those who are advancing. This is seen in homogeneous societies because the group experiencing the tunnel effect must empathize with the group who is advancing. In homogeneous societies, resources are largely owned domestically. It is your prospects of mobility. But what about the opposite? If the neighbor gets laid off do you feel good, no most likely you will have fear for your own future and will cause depressive feelings. If that person gets their job back, hopefulness overwhelms envy Example: Some Evidence When asked in Brazil how their economic status was from ten years ago
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This note was uploaded on 11/16/2011 for the course IDS 100B taught by Professor Ross during the Spring '11 term at UCLA.

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Tunnel effect - Tunnel effect Source: Article by Hirshman...

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