The Frontal Cortex

Measuring Love with CEO Pay

From Tyler Cowen:

1. In Danish data, if a CEO’s child dies, the value of that CEO’s company falls by one-fifth in the following two years.

2. If a CEO’s wife dies, the value of that CEO’s company falls by fifteen percent.

3. If a CEO’s mother-in-law dies, the value of that CEO’s company rises slightly.

The moral is simple: grief is debilitating, or at least distracting. Read the original paper here.

Comments

  1. #1 Ted
    September 6, 2007

    Heh. You got blurbed over at Tyler Cowen.

    You touch economics, he touches Proust.

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