Contextualizing the 'Homo Economicus' : essays on non-instrumental relationality, quality of life, and civic engagement

The aim of this dissertation is to highlight the importance of re-contextualizing the individual in economic analysis. In particular, the emphasis is placed on human relationality in its non-instrumental form for the study of life satisfaction and quality of life. Chapter 1 introduces the concept of non-instrumentality in relations and describes the problem posed by its continuous decline in recent years. An alternative categorization of such form of relationality is proposed and equipped with a theoretical model where traditional economic modeling tools are mixed with Hirschman (1970) insights of organizational behavior to endow non-instrumental relationships with a restorative signal mechanism aimed at preserving their stability from within. Moreover, a model of relational capital is constructed around the proposition that non-instrumental relationships are commodities which can be both consumed and produced by individuals through investments in the form of time and market goods. In Chapter 2 the positive link between one form of non-instrumental relationality –namely, family ties– and quality of life is documented. Using a difference-in-differences propensity score matching approach, a thorough empirical analysis of the relationship between the psychological well-being of older generations and their coresidence choices is carried out. The findings seem to highlight the supporting role played by family proximity in old age: respondents from historically Catholic European countries choosing to live under the same roof with an adult child reported significantly lower depression levels than those for whom such a treatment was not present. Chapter 3 uses a stag-hunt game to exemplify the risk- and payoff-dominant equilibria often present in the provision of public goods. An instrumental variables approach is used to document the link between cognitive abilities and pro-social behaviors in old age. The results advocate for the existence of a seemingly strong causal link running from cognition to community engagement. This empirical finding supports theories of collective agency –such as those of we-rationality and team-thinking– and is in line with mainline experimental results showing how participants with higher cognitive abilities tend to be less risk averse and hence more willing to opt for a payoff-dominant action in a stag-hunt game context more often.