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Economic Influences on Moral Values

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  • Östling Robert

    (Stockholm University)

Abstract

This paper extends standard consumer theory to account for endogenous moral motivation. Building on cognitive dissonance theory, I show how moral values are affected by changes in prices and income. The key insight is that changes in prices and income that lead to higher consumption of an immoral good also affect the moral values held by the consumer so that the good is considered less immoral. A preliminary empirical analysis based on the World Values Survey is consistent with the model's predictions with respect to income.

Suggested Citation

  • Östling Robert, 2009. "Economic Influences on Moral Values," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(1), pages 1-26, January.
    • Handle: RePEc:bpj:bejeap:v:9:y:2009:i:1:n:2
    DOI: 10.2202/1935-1682.2044
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    Cited by:

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    3. Nordblom, Katarina & Zamac, Jovan, 2011. "Endogenous Norm Formation Over the Life Cycle – The Case of Tax Evasion," Working Paper Series 2011:13, Uppsala University, Department of Economics.
    4. Mikael Elinder, 2012. "Correcting mistakes: cognitive dissonance and political attitudes in Sweden and the United States," Public Choice, Springer, vol. 153(1), pages 235-249, October.
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    8. Giacomo Corneo & Frank Neher, 2014. "Income inequality and self-reported values," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(1), pages 49-71, March.

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    More about this item

    Keywords

    consumer theory; moral values; endogenous preferences; cognitive dissonance; self-serving bias;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory

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