How much will it cost if you spend 100 on your congratulations?
If you increase spending 1, your income will increase by 0.988. In other words, if you spent 100,000 won for the congratulatory speech, you would have collected 98,800 won before and after. Professor Song Hyeon-jae and Son Hye-rim This is an article published by Professor of Economics at Seoul City University at the end of last year. The title of the article is "The analysis of the relationship between the expenditure of congratulation expenses and the income of Korean households using the financial panel".
Professor Song interviewed about 3,000 families who spent 10 years in the past. It is a very rare article that deals with Congress spending and income as an academic subject. In an interview with Joongang Ilbo on June 29, Professor Song Hyeon-jae predicted, "Unless the culture of the congratulatory address changes significantly, the size will be reduced. The following is a questionnaire.
"As with any other worker, I was often asked to attend the congratulatory address, and I kept asking myself," What kind of thoughts do Koreans pay? "When you receive a wedding invitation, or when you hear obituaries and go to a funeral home, you'll worry about future economic benefits. "I wondered how that really works."
How did you analyze this?
"Using the data from the financial panel of the Korean Institute of Public Finance 2007 ~ 2016, I asked about the expenses of congratulations and other expenses. It is reasonable to use lifelong data for accurate analysis, but there is no data in Korea for more than one Thus, the financial panel that accumulated 10 years of data could be an alternative. Of the total of 3,488 households, there were four groups: those who had so much to spend with congratulations and congratulations, the two groups that had only one income or spending , and those who had no income or expense.
How did the result come out?
"The group (1301 households), which had income and expenditure, spent 9.55 million won for 10 years and received 15.23 million won. Although it seems that the income is much higher, it should be considered the spending pattern of congratulation expenses and inflation rate. The expenditure coefficient was estimated at 0.988. "
What does that mean?
"If the expense of the congratulatory address increases by 10,000 won, that means that the income from the congratulatory address has increased 9880 won, or nearly 10,000 won. This means that the income of any household in the case of a congratulatory gift saved almost completely the cost of memorials of congratulations to date. In economic terms, it is called "total insurance".
"If the underlying asset is 100, the probability that the asset is fully guaranteed, that is, the expected value (guaranteed asset) is 100. In short, the revenue and cost are the same."
Is the expected result?
"I built such a hypothesis (full insurance), but I did not expect that to happen. It is a relatively surprising result in terms of the social commitment of congregational culture."
It's true even if we look around.
"I do not have money yet. This study is the result of analyzing long-term patterns for thousands of families."
There are a growing number of young people who are not married or married later. The consciousness of the community has greatly diminished in comparison with the past. Will the culture of torture and poverty change?
"Ultimately it will be." As marriage changes and life expectancy becomes longer, the payout time and collection time can be significantly different. The number of cases you can not charge but it will not be easy to change the scope of the offline communities. "However, the scope of the community I manage may be small, in fact, the scope of offline communities is declining.
So how do you expect to change?
"If you anticipate the future and think that you will earn less in the future, you will have less expense. If I had the experience of" I paid for the congratulations and will not be back later ", this will "The culture that exchanges money will not go away, but instead, I think the scope will be reduced."
There is a small wedding movement and the non-announcing funerals are increasing. In addition, the law of prohibition of illegal appeal (law of Kim Young Ran) was applied.
"How big is this? The overall congregational culture will have a real impact on the pattern of congressional favors if expectations are changed."
Lee Sang-jae · Hyungsoo Park · Tae-ho Kim reporter firstname.lastname@example.org