3 ms·
These studies always seem to make an implicit assumption of memorylessness which I don't think is well justified. It's the same with things like the Laffer curv
by JoeSmithson 8y ago
These studies always seem to make an implicit assumption of memorylessness which I don't think is well justified. It's the same with things like the Laffer curve - why would we assume that any specific days-per-week (or tax rate) has a specific output?
It seems much more likely to me that the act of changing it has a positive affect on productivity - but this is obviously a more short term gain.
- AmericanChopper 8y agoThe Laffer curve is actually based on sound economics though. A reduced tax rate keeps money invested in the market, as well as increasing investment incentives. I don't see the similar underlying logic here. The employee has less resources (hours in the week), and their incentives remain mostly unchanged. Based on the reported outcomes it seems like it may have tapped into some discretionary effort, but doing that over a short period isn't especially remarkable, and I'd say there are easier and more sustainable ways to achieve that.