Myopia is the ultimate explanation, but it’s also incomplete. As explained in the linked paper, there’s a wealth of data showing that people spend a lot on consumption that doesn’t seem to raise their physical welfare. For example, people a lot on funerals even in places where people aren’t getting adequate nutrition.
Myopia is the ultimate explanation, but it’s also incomplete. As explained in the linked paper, there’s a wealth of data showing that people spend a lot on consumption that doesn’t seem to raise their physical welfare. For example, people a lot on funerals even in places where people aren’t getting adequate nutrition.