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The Effect of Coherent Collective Consciousness on National Quality of Life and Economic Performance Indicators-An Analysis of the IMD Index of National Competitive Advantage

January 2017
Journal of Health and Environmental Research 3(1):16-31

DOI:10.11648/j.jher.s.2017030301.12

Authors:

Maharishi International University

The scores of New Zealand and Norway on the IMD Index of National Competitive Advantage increased significantly when they passed the predicted coherence group threshold in 1993 (1% of a population practicing the Transcendental Meditation program or the √1% practicing the advanced TM-Sidhi program in a group) when compared to 44 other developed nations as shown by crosscountry panel regression analysis robust to serially correlated errors, heteroskedasticity, and contemporaneous correlation of residuals (p < 0.000000000000003). Subsidiary analysis and Organisation for Economic Cooperation and Development (OECD) data confirmed that the changes were unusually broad-based (p <.000000065), sustained, and balanced in nature with five years of high growth, low unemployment, and low inflation. Taken as a whole, the findings suggest a prescription for balanced and sustained growth based on a method to enhance quality of life and innovation among the population.

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Journal of Health and Environmental Research

2017; 3(3-1): 16-31

http://www.sciencepublishinggroup.com/j/jher

doi: 10.11648/j.jher.s.2017030301.12

ISSN: 2472-3584 (Print); ISSN: 2472-3592 (Online)

The Effect of Coherent Collective Consciousness on

National Quality of Life and Economic Performance

Indicators—An Analysis of the IMD Index of National

Competitive Advantage

Guy Hatchard

, Kenneth Cavanaugh

Safe, Healthy, Natural, Helena Bay, New Zealand, Management, Department of Management, Maharishi University of Management,

Fairfield, Iowa, USA

Institute of Science, Technology, and Public Policy, Applied Statistics, Department of Management, College of Business and Public

Administration, Maharishi University of Management, Fairfield, Iowa, USA

Email address:

ghatchard@gmail.com (G. Hatchard)

To ci te t hi s arti cl e:

Guy Hatchard, Kenneth Cavanaugh. The Effect of Coherent Collective Consciousness on National Quality of Life and Economic

Performance Indicators—An Analysis of the IMD Index of National Competitive Advantage. Journal of Health and Environmental

Research. Special Issue: Maharishi Vedic Science: Creating a Sustainable Future. Vol. 3, No. 3-1, 2017, pp. 16-31.

doi: 10.11648/j.jher.s.2017030301.12

Received: January 13, 2017; Accepted: February 16, 2017; Published: March 20, 2017

Abstract:

The scores of New Zealand and Norway on the IMD Index of National Competitive Advantage increased

significantly when they passed the predicted coherence group threshold in 1993 (1% of a population practicing the

Transcendental Meditation program or the √1% practicing the advanced TM-Sidhi program in a group) when compared to 44

other developed nations as shown by cross-country panel regression analysis robust to serially correlated errors,

heteroskedasticity, and contemporaneous correlation of residuals (p < 0.000000000000003). Subsidiary analysis and

Organisation for Economic Co-operation and Development (OECD) data confirmed that the changes were unusually broad-

based (p <.000000065), sustained, and balanced in nature with five years of high growth, low unemployment, and low

inflation. Taken as a whole, the findings suggest a prescription for balanced and sustained growth based on a method to

enhance quality of life and innovation among the population.

Keywords:

IMD Index, Norway, New Zealand, Maharishi Effect, National Competitive Advantage, Quality of Life

1. Introduction

The burning question facing governments and voters today

is: What policies and programs will guarantee prosperity for

all and who will deliver it? Yet it is not only government

economic policy that influences economic outcomes; less

tangible human factors [45], referred to by terms such as

confidence, innovation, creativity, mobility, insight,

opportunity, and vibrancy, play an essential role in economic

success. Can a method be adopted to directly influence these

more abstract determinants of economic success which

interface directly with individual and social consciousness?

This paper sheds light on this question by analyzing the

Institute for Management Development (IMD) broad-based

international measure of economic performance and quality

of life. The IMD Index published yearly [29] amalgamates

data from over 200 sources.

Drawing on physical field theory, we use a ‘field effect’

model of consciousness [22, 12, 13, 25, chap. 4], whose

effects are characterized by a phase transition from disorder

to order in society. Phase transitions in the physical sciences

are understood as sudden decreases in entropy or disorder

when a critical threshold is passed accompanied by the

emergence of new system properties. The model for such a

transformation is that of a step function—rapid, broad-based

inception of more orderly properties and functions of the

system.

The phase transition effect we studied is known as the

Journal of Health and Environmental Research 2017; 3(3-1): 16-31 17

Maharishi Effect, named after Maharishi Mahesh Yogi who

predicted it more than 40 years ago [33]. Over the last 35

years, 47 scientific research findings [36] have indicated

strong empirical support for the Maharishi Effect which

predicts increased positive trends and reduced problems in

society when the critical threshold of one per cent of a

population practicing the Transcendental Meditation

program

or the square root of one per cent of a population

practicing the advanced Transcendental Meditation

and

TM-Sidhi

program in a group morning and evening [34] is

passed.

The Transcendental Meditation program is an easy-to-

learn, mental technique practiced 15 to 20 minutes twice a

day, which has become popular as a method to improve

health, increase creativity, optimize brain functioning, and

reduce stress; over six million individuals have learned the

technique worldwide. Over 700 research studies have

validated effects for the individual such as faster reaction

times, increased creativity and IQ, and improved self

actualisation, and general health when the technique is

practiced regularly [36]. According to Maharishi [35, p. 308],

the TM-Sidhi program is an advanced aspect of the

Transcendental Meditation program; it teaches the individual

to think and act from the level of self-referral consciousness,

enhancing coordination between mind and body while

increasing coherent EEG patterns in the brain [46].

1.1. The Maharishi Effect: Previous Research on Crime

and Conflict

In 1993, A prospective test of the Maharishi Effect [23]

was undertaken when 4,000 advanced Transcendental

Meditation participants gathered in Washington, D. C. for a

six-week demonstration project. Predictions of reduced

violent crime, improved approval ratings for government,

and reduced need for emergency services were lodged in

advance with a 27-member independent review panel and

advertised in the Washington Post [23], [19]. There was a

24% reduction in violent crime compared to the trend

predicted by time-series analysis of preceding data (p <

0.000000002), approval ratings for President Clinton

increased (p < 0.00000006), accidents, emergency

psychiatric calls, and hospital trauma cases decreased, and a

quality of life index improved (p < 0.00004).

Over 30 studies have shown reduced crime and violence

through the Maharishi Effect since 1974 [36]. For example,

Hatchard et al. [24] found reduced crime in Metropolitan

Merseyside, UK. Time series analysis of monthly data showed

total crime fell 13.4% in March 1988 (p < 0.00006) when a

permanent Transcendental Meditation group was formed.

Using time series analysis Orme-Johnson et al. [41, 42]

analyzed the effect on world events of three large

TM-Sidhi, Consciousness-Based, Maharishi, Maharishi Vedic Approach to

Health, Maharishi University of Management, and Maharishi Vedic Science are

registered or common law trademarks licensed to Maharishi Education

Development Corporation and used under sublicense or with permission.

Transcendental Meditation assemblies. They found

reductions in terrorism (72%) and international conflict

(33%) as well as increased world stock.

1.2. USA—Economic and Social Research on the

Maharishi Effect

Stock market data can be interpreted as a measure of

public confidence and optimism. Cavanaugh, Orme-Johnson

et al [6] used regression analysis and Box-Jenkins time series

analysis respectively and found a simultaneous rise in the

world’s major stock markets during an assembly of 8000 (the

square root of one per cent of the world’s population) held at

Maharishi University of Management, Iowa in December

1983 (p < 0.00004).

Orme-Johnson and Gelderloos [39] measured the impact

of participation in the Transcendental Meditation technique

in the USA on a quality of life index. A reversal in the long-

term decline in US quality of life occurred as large numbers

of the USA population started the Transcendental Meditation

program and accelerated when the Maharishi Effect threshold

was exceeded (p < 0.0001). The economic portion of the

index reported GNP per capita as rising 2.3% in 1983

marking the end of the recession, and a sharp decline in

unemployment commencing in 1983.

In a series of studies covering 1979 to 1987 using Box-

Jenkins time series analysis and multiple-input transfer

function analysis, Cavanaugh et al. [7-10] found highly

statistically significant reductions in the monthly “Misery

Index” (the sum of inflation and unemployment rates) in both

USA and Canada when the coherence creating group at

Maharishi University of Management exceeded the square

root of one per cent of the population threshold (p <

0.00000001).

2. Data

The preceding case studies and previous research findings

indicate a need to rigorously assess and quantify the impact

of the Maharishi Effect on broad-based measures of national

economic performance. The opportunity to investigate this

was provided by the two developed countries enjoying the

world’s highest levels of participation in the Transcendental

Meditation program both of which passed the Maharishi

Effect threshold during 1993.

2.1. Coherence Data

Cumulative numbers of individuals instructed in the

Transcendental Meditation technique in New Zealand were

obtained. By the end of 1993, there were 35,593 persons

instructed in the Transcendental Meditation technique. The

population of New Zealand at the end of 1993 was

3,525,000.

Among the 46 countries covered by IMD data, the only

other country to have reached the target of one per cent

instructed in the Transcendental Meditation program during

the period covered by the IMD rankings (1992 to 1998) was

18 Guy Hatchard and Kenneth Cavanaugh: The Effect of Coherent Collective Consciousness on National Quality of Life and

Economic Performance Indicators—An Analysis of the IMD Index of National Competitive Advantage

Norway. The baseline number instructed in Transcendental

Meditation in Norway at 1st January 1988 was recorded as

37,000 to 38,000 with the extended range accounted for by a

small recording error. Subsequently 2,925 new individuals

participated in the Transcendental Meditation program before

the end of 1993. There were also over 400 advanced TM-

Sidhi practitioners some of whom practiced in groups

generating sufficient additional coherence to pass the

Maharishi Effect threshold. The population of Norway was

4,287,000 in 1992.

2.2. Economic History

New Zealand is a small, developed country whose

economy has depended on exports of primary products,

particularly meat, wool, forestry, and dairy products, to pay

for needed imports. Its economy gradually declined between

1950 and 1990, with attendant relative falls in standard of

living as compared to its major trading partners. Repeated

interventions of successive governments to correct the

imbalances in the persistently sluggish economy had failed to

produce a sustainable model of economic success. But by

1994, it was apparent that an unexpected vibrancy had taken

hold of the whole economy and the national mood.

Norway has an oil-rich economy, but despite the attendant

wealth, the economy underperformed in the 1980s. Low

domestic demand became linked with rising unemployment

and a high rate of corporate failure which affected bank

solvency. By 1994, it was clear that domestic demand had

unexpectedly begun to increase ushering in an extended

period of growth.

This was reflected in large increases in the IMD scores of

competitive advantage for Norway and New Zealand which

encompassed broad measures of economic performance and

quality of life (see Table 1).

2.3. Measures of Economic Well Being of Nations

Michael Porter’s analysis of “The Competitive Advantage

of Nations” [44] has been adapted and augmented in

econometric approaches to measuring the economic

wellbeing of nations. The IMD Index contained in the IMD

Worl d Co mpet it iv en ess Ye ar bo ok [2 9] i s used i n th is study. It

is a measure and database of the relative national economic

health of industrially developed nations that has drawn upon

Porter’s ideas, but its broad base ensures that it is

independent of any particular theory. Madeleine Linard de

Guertechin defines the IMD Index in the 1997 Yearbook as a

multi-dimensional approach “to capture in a single index the

capacity of a country’s economic structure to promote

growth” (29, introduction) The IMD Index is used to test

whether the economy of both New Zealand and Norway

showed a significant and broad-based improvement in IMD

scores relative to other developed nations at the time when

they surpassed the 1% threshold of individuals instructed in

the Transcendental Meditation program in 1993. The main

conclusions of the analysis are also checked against the

conclusions of the independently compiled OECD Economic

Surveys [38].

2.4. Sources

The IMD Yearbook has been published annually since

1987 by the International Institute for Management

Development in Switzerland. It contains a database of

economic and social measures from industrially developed

nations, which in 1996 comprised 224 data inputs for each of

46 nations. The 224 data points data are combined through

addition of z scores into 41 sub-scales which are in turn

grouped into 8 categories

and finally combined into one

overall competitiveness performance index yielding an

annual ranking of the 46 countries. The Index has been

compiled from 1992 to 1998 using a consistent methodology.

The data sources are made up of 35.5% that are per capita

statistics unrelated to country size such as interest rates or

international credit ratings, 10.7% absolute values that are

positively affected by the size of the country, 11.6% growth

rates, 33.3% executive surveys, and 8.9% background

information. The IMD Yearbooks rank the 46 countries on

each set of the 224 raw data inputs (excluding the

background statistics). Each data set is then converted into z

scores through the standard procedure.

Two-t hirds o f the d ata sourc es i nvolv e ha rd o r meas ured

facts drawn from a wide variety of international and national

sources. Data sources are referenced, missing values (2.9%)

are handled efficiently, and data issues of reliability and

comparability are discussed in footnotes and appendices. The

remaining one-third of the data series are derived from up-to-

date surveys of senior executives from the 46 countries. A

similar procedure has been used in every other year.

The IMD Yearbooks report raw values for the data inputs,

but all compiled sub-scales and categories are quoted solely

as rankings of nations. The country with the best

performance being ranked number 1 and so on. To avoid this

dilution of data, the authors obtained the series of compiled z

scores for the overall Index from IMD (See Table 1) and used

it in the main analysis. The effects of minor recorded data

irregularities are discussed and their correction estimated in

the subsidiary analysis,

3. Primary Analysis

The dependent variable is the IMD Index data (Table 1),

which is a repeated measure where each of 46 countries is

observed at seven yearly intervals in order to calculate a

numerical value for overall international competitiveness.

Since the overall IMD Index score is constructed from the

These eight categories are defined as: Domestic Economy—macroeconomic

evaluation of the domestic economy; Internationalization—participation in

international trade and investment flows; Government— extent to which

government policies are conducive to competition; Finance—performance of

capital markets and quality of financial services; Management—enterprise

management in an innovative, profitable, and responsible manner;

Infrastructure—extent to which resources & systems are adequate to meet the

needs of business; Science and Technology—capacity and success of basic and

applied research; and People—availability and qualifications of human resources.

Journal of Health and Environmental Research 2017; 3(3-1): 16-31 19

addition of z scores, the mean of each year is necessarily

zero. Although the scores can in theory take any value, in

practice, no country moved outside limits of ±200. The

standard deviation of the IMD Index scores increased

between 1992, when it was 63, to 72 in 1998.

Maharishi Effect theory predicts a phase transition in

economic performance as the 1% threshold is passed. Visual

inspection of Table 1 shows that both New Zealand and

Norway increased their IMD scores by approximately 25

when the Maharishi Effect threshold was surpassed during

1993. To assess the statistical significance of this improved

performance, the main analysis should analyze the behavior

of the panel of data as a whole. Importantly, it should ensure

that any statistical threats to inference such as serial

correlation or heteroskedasticity of the residuals are

diagnosed and properly handled. The increase in standard

deviation between cross-sections suggests that cross-

sectional heteroskedasticity should be checked.

Vis ual i nspec tio n o f Tabl e 1 i ndi cates so me vola tility in

individual country scores from year to year which suggests

that heteroskedasticity should also be investigated in a group-

wise sense. This volatility should also be visually examined

and investigated on a case-by-case basis. Above all, the

model should be both a good fit and demonstrably robust.

Figure 1. IMD Scores For New Zealand and Norway 1992 to 1997.

Tab le 1. IMD Index of Nati onal E conomi c Well Being.

Overall Scores 1992 - 1998* (compiled z scores)

Country 1998 1997 1996 1995 1994 1993 1992

ARGENTINA -51.21 -27.26 -50.35 -34.55 -42.30 -33.69 -30.95

AUSTRALIA 41.85 31.54 29.64 39.88 39.39 22.28 21.36

AUSTRIA 9.17 28.12 40.38 46.05 48.47 40.68 40.15

BELGIUM 8.14 15.65 36.66 30.27 37.10 41.31 37.48

BRAZIL -65.33 -52.90 -67.45 -65.83 -91.66 -97.27 -92.36

CANADA 66.25 64.43 59.22 41.77 25.31 29.31 31.41

CHILE -1.52 8.03 48.20 31.16 14.04 27.30 24.93

CHINA 1.71 -21.02 -15.28 -36.27 -47.41 -54.15 -57.60

COLOMBIA -102.68 -101.78 -53.43 -51.03 -49.13 -39.31 -39.22

CZECH REPUBLIC -66.77 -54.81 -53.47 -70.81 -68.60 -55.01 -58.44

DENMARK 69.49 67.99 69.43 64.52 72.26 75.38 72.15

FINLAND 78.34 75.35 44.15 36.58 26.27 5.59 16.28

FRANCE 17.69 30.75 30.23 36.18 45.60 34.86 32.17

GERMANY 45.50 52.57 62.25 70.31 80.07 82.59 83.47

GREECE -63.05 -59.71 -75.12 -78.65 -69.22 -68.46 -65.91

HONG KONG 89.65 89.02 86.64 93.55 95.00 95.27 90.69

HUNGARY -30.57 -56.31 -71.88 -86.27 -77.25 -60.48 -60.36

ICELAND 27.54 19.39 18.38 8.68 10.14 11.16 9.33

INDIA -82.64 -93.23 -69.27 -61.14 -66.95 -76.61 76.35

INDONESIA -75.05 -75.20 -75.78 -54.46 -56.00 -59.70 -57.97

IRELAND 62.87 48.40 28.53 21.02 22.72 14.41 13.21

ISRAEL -0.56 -6.38 19.91 12.14 14.64 18.49 14.39

ITALY -40.31 -54.24 -32.90 -32.99 -31.72 -28.46 -27.33

JAPAN 35.31 67.83 81.29 90.14 104.43 118 .35 111.59

KOREA -62.47 -33.40 -21.22 -6.07 -41.18 -30.35 -32.51

LUXEMBOURG 68.29 59.57 62.80 39.61 42.26 47.43 46.95

MALAYSIA 18.08 32.54 23.36 16.88 32.11 37.72 33.52

MEXICO -62.27 -76.57 -82.18 -88.50 -38.17 -46.10 -46.99

NETHERLANDS 83.62 73.49 63.15 63.20 58.46 58.03 59.65

NEW ZEALAND 47.56 58.73 60.53 62.27 51.84 27.95 28.15

NORWAY 72.73 74.66 68.17 52.42 46.44 19.97 15.90

PHILIPPINES -54.33 -40.84 -41.80 -59.77 -59.56 -53.13 -44.58

POLAND -105.54 -108.77 -86.97 -107.37 -114.90 -110.90 -112.32

PORTUGAL -36.83 -52.62 -60.20 -42.62 -38.51 -42.77 -39.20

RUSSIA -133.41 -160.64 -179.28 -182.09 -179.59 -156.91 -140.44

SINGAPORE 141.39 135.35 119.06 120.94 106.40 116. 97 113. 14

SOUTH AFRICA -100.84 -110.36 -100.18 -91.67 -84.84 -84.20 -80.67

SPAIN -10.34 -3.74 -35.12 -26.59 -27.47 -36.42 -37.30

SWEDEN 36.65 35.01 45.21 44.14 56.47 47.57 45.76

SWITZERLAND 69.70 71.74 62.76 81.42 83.25 73.03 71.01

TAI WAN 38.64 15.59 33.08 41.74 18.93 45.05 43.71

20 Guy Hatchard and Kenneth Cavanaugh: The Effect of Coherent Collective Consciousness on National Quality of Life and

Economic Performance Indicators—An Analysis of the IMD Index of National Competitive Advantage

Overall Scores 1992 - 1998* (compiled z scores)

Country 1998 1997 1996 1995 1994 1993 1992

THAILAND -71.19 -32.61 -35.37 -13.96 -7.86 -15.86 -15.18

TURKEY -61.35 -61.01 -55.63 -54.52 -38.84 -52.20 -50.53

UNITED KINGDOM 52.93 62.64 31.37 41.23 43.06 30.58 33.29

USA 196.02 180.05 155.68 164.43 153.42 145.70 139.11

VENEZUELA -100.87 -115.68 -117.20 -105.34 -96.93 -64.97 -62.62

*Publication date is April of that year; scores compiled from the previous year's data.

New Zealand and Norway both surpassed the Maharishi

Effect Threshold during 1993. The target reporting date for

the 1994 IMD Index data is mid 1993. Therefore in accord

with previous practice, the independent variable or Maharishi

Effect Index was modeled as step function—zero for every

country except Norway and New Zealand in the years 1994,

1995, 1996, 1997, and 1998 when it was assigned the value

one. This follows established practice where the Maharishi

Effect is described as a phase transition phenomenon, which

can be understood and analyzed in the same way as

transitions in physical systems [24, 25]

3.1. Statistical Methods

Annual IMD index ratings for 46 countries formed a

longitudinal panel of data for the years 1992 through 1998.

The cross-country panel data were analyzed using dynamic

panel regression methods.

A "f ixed-e ffec t" p ane l r egr ess ion mo del for th e IM D index

was formulated and then estimated using a procedure for

cross-country data proposed by Beck and Katz [3] In this

fixed-effect model (FEM), the annual value of the IMD index

for each country was modeled as a linear function of three

terms: (1) a country-specific regression intercept (fixed

effect) that provided an estimate of the mean of the index for

each country; (2) a regression coefficient designed to

estimate a hypothesized shift in the mean of the index for

New Zealand and Norway due to the Maharishi Effect; and

(3) a random error or disturbance term

Beck and Katz [3]

Each of the resulting set of regression equations for the 46

countries had following simple form:

IMDit = Ωoi + Ω1 MEit + ∑it, i = 1, 2,..., G; t = 1, 2,..., T

(1)

In these equations IMDit is the IMD index for country i in

year t, G is the number of countries in the sample (46) and T is

the number of annual observations for each country (seven). The

coefficient ∧oi is a regression intercept or constant term that

differs across countries. The Maharishi Effect variable MEit is a

"step-function" binary variable that takes the value 1 for the

years 1994 through 1998 for New Zealand and Norway and is

equal to 0 for all other countries and time periods. The

parameter ∧1 is a regression coefficient that estimates the impact

of the Maharishi Effect on the mean of the index for Norway

and New Zealand. Finally, ∑it is a random error or regression

disturbance term with mean zero.

The parameters of the panel regression model were

estimated using a method suggested by Beck and Katz [3, 4]

The Beck and Katz approach allows for possibly differing

variance of regression errors across countries (“panel

heteroskedasticity”), contemporaneous correlation of errors

across countries, and possible serial correlation of residual

errors. The latter three properties of the regression errors are

common in the analysis of cross-country data [3] In the

presence of any of the above three properties of the

regression errors, ordinary least squares (OLS) regression

will not be optimal [3, 4] In this case the OLS estimates of

the regression parameters will be inefficient, although they

are unbiased and consistent [3]; [21, ch. 11]. More

importantly, in this case the estimated standard errors for the

regression coefficients will be incorrect (biased and

inconsistent) even in large samples, thus invalidating

standard tests of hypotheses (e.g., t-tests and F-tests) [21,

chap. 11-12]; [3, 4]. The method of Beck and Katz generates

correct standard errors for the purpose of hypothesis testing,

so-called “panel corrected standard errors” (PCSE).

3.2 The Beck-Katz Approach

The first step in the Beck-Katz approach was to estimate

the fixed-effect model (1) using OLS regression. If

diagnostic tests indicated the presence of significant first-

order serial correlation of the regression residuals, the Prais-

Winsten transformation of the data was used to eliminate the

observed serial correlation [32, p. 619]. The equation was

then re-estimated by OLS using the transformed data.

As recommended by Beck and Katz [3] on the basis of Monte

Carlo simulation experiments, the Prais-Winsten transformation

was based on a common estimated serial correlation coefficient,

rather than separate coefficients for each country. The resulting

regression estimates based on the transformed data are

equivalent to those produced by feasible generalized least

squares (FGLS) estimation of a regression model with a first-

order autoregressive (AR (1)) model for the errors [21, p. 546].

An advantage of the Prais-Winsten approach is that, in

contrast to the Cochran-Orcutt transformation, it does not

involve discarding the first data observation for each country,

leading to increased efficiency of the resulting OLS estimates

[21, pp. 546-547]. Since only 7 annual observations were

available for the IMD index for the 46 countries, retaining

the first observation was an important consideration. This

issue was particularly salient for tests of the Maharishi Effect

because only two annual values of the index were available

for the baseline period prior to the predicted onset of the

Maharishi Effect for New Zealand and Norway in 1993 (as

reflected in the IMD index data for 1994).

After removing the serial correlation of residuals in the

first step of the Beck-Katz procedure, the OLS estimates of

the regression slope parameters for the fixed-effect model (1)

Journal of Health and Environmental Research 2017; 3(3-1): 16-31 21

will be unbiased and consistent. However the estimated

standard errors for the parameter estimates will still be

incorrect (biased and inconsistent) if the regression errors

display either differing error variance across countries, cross-

country correlation of the errors, or both. Because the OLS

parameter estimates will be correct after any serial

correlation of the errors has been removed, Beck and Katz

propose basing hypothesis tests on the OLS parameter

estimates of the transformed data from step one using

corrected standard errors (PCSEs).

Beck and Katz [4] prove that the resulting PCSEs are

consistent. Simulation experiments [3, 4] indicate that in typical

cross-country studies the corrected standard errors will be

accurate even in the presence of contemporaneously correlated

(panel heteroskedastic) errors. Their simulations also suggest

that the efficiency loss of using the OLS parameter estimates

"would not be large in practical research situations" [4, p. 5].

In summary, the specification of the independent Maharishi

Effect variable as a step function enables the panel regression

model to provide an “impact assessment” of the Maharishi

Effect intervention on the mean level of the IMD Index for

Norway and New Zealand allowing for a common

autoregressive error structure as well as a contemporaneous

correlation of errors and differing error variance across

countries. With this approach, the analysis will answer the

question ‘Is a significant increase in competitiveness score

predicted by the increase in coherence, taking into account the

time-dependent, dynamic structure of the IMD panel of scores?’.

4. Results of Primary Analysis

The primary analysis employs panel regression analysis to

determine the significance of the increases in the level of the

IMD Index for the 1994-1998 as compared with the 1992-

1993 baseline period. The dependent variable for the analysis

was the annual value of the IMD index (compiled z scores)

for the full set of 46 countries ranked by the IMD over the

years 1992-1998. The sample included seven annual

observations for each of the 46 countries, giving a total of

322 observations. There were no missing data values. The

regression results for the primary panel data analysis of the

IMD index are summarized in Tables 2 and 3. Results were

calculated using LIMDEP 7.0 and EViews 3.1 for Windows.

Tab le 2 disp lays the init ial o rdina ry l east squa res (OLS)

regression parameter estimates for the fixed-effects model

(FEM) described in equation (1). As hypothesized, the sign

of the estimated impact of the Maharishi Effect on the IMD

index for New Zealand and Norway was positive. The

estimate of the Maharishi Effect parameter ∧1 indicated an

upward shift of 36.545 in the mean level of the IMD index

for the two countries, on average, for the years 1994 through

the end of the sample in 1998 (p = 0.000033, two tailed test).

As shown in Table 2, the overall F statistic for the

regression was statistically significant, indicating that the

parameter estimates for all explanatory variables in the

regression take together, including the estimated regression

intercepts for each country, were significantly different from

zero. The reported R-squared value for the regression implies

that the estimated model accounted for 96.1 percent of the

variation in the IMD index.

Diagnostic tests reported in Table 2 indicate violation of

important assumptions underlying the OLS regression

analysis. First, the Lagrange multiplier (LM) test for first-

order serial correlation of the regression residuals was

statistically significant, with an estimated serial correlation

coefficient of 0.388. The latter test is the Breusch-Godfrey

test for first-order serial correlation [18]; [21, p. 541].

Second, the LM test for differing variances for the regression

errors across countries was highly significant [21, pp. 594-

596], indicating violation of the OLS assumption of constant

variance of the regression disturbances. Third, inspection of

the (contemporaneous) correlation matrix of the regression

residuals indicated substantial cross-country correlation of

the errors, with a majority of the correlations varying from

0.5 to 0.9 in absolute value.

As described above, in the presence of any of these three

violations of the standard OLS error assumptions, the standard

errors for the estimated parameters will be incorrect (biased and

inconsistent), thus invalidating hypothesis tests for the estimated

parameters. Consequently, in order to perform valid hypothesis

tests the Beck-Katz procedure [3]; [21, chap. 15] was used to

correct the OLS standard errors reported in Table 2.

Tab le 2. Panel Regression Analysis of IMD Index, 1992-1998 Ordi nary Leas t Squ ares (OLS) Regr essio n Est imat es of Fixed Effects Model Dependent Variable:

IMD Index (Compiled Z Scores)

†.

Va ri ab l e Coefficient Standard Error T-Ratio P Va lue

Maharishi Effect 36.545 8.655 4.223 3.3 x 10

-5

Number of observations 322 Degrees of freedom 275

F-statistic F (46, 275) 145.48 (p = 0.000) R-squared 0.961

S. E. of regression 14.629 R-bar-squared 0.954

Sum of squared residuals 58852.80 S. D. of dependent variable 68.153

Lag-one seria l correla tion 0. 388 Mean of dependent variable 2.07 　x 10

-12

Durbin-Watson statistic 1.119 Akaike information criterion 2684.85

Diagnostic Tests:

LM test for s erial correlation: LM test for p anel heterosceda sticity:

2 (1) = 70.574 (p = 0.000)

2 (45) = 146.7808 (p = 0.000)

Tes t of po ole d reg re ssi on vs . fi xed e ffe ct s: Jarque-Bera test for normality:

F (45, 275) = 144.913 (p = 0.000)

2 (2) = 12.845 (p = 0.002)

† The data consisted of 7 annual observations on each of 46 countries, for a total sample size of 322. To conserve space, the 46 estimated country-specific

intercepts (fixed effects) are not shown. These intercepts were jointly statistically significant. Complete regression results are available from the authors.

22 Guy Hatchard and Kenneth Cavanaugh: The Effect of Coherent Collective Consciousness on National Quality of Life and

Economic Performance Indicators—An Analysis of the IMD Index of National Competitive Advantage

4.1. Correction for Violations of the OLS Error

Assumptions

In the Beck-Katz procedure, all regression variables for

the fixed-effects model were first transformed to eliminate

the serial correlation of residuals and then the model was re-

estimated by OLS. The resulting estimates are shown in the

top panel of Table 3. After adjusting parameter estimates for

residual serial correlation, panel-corrected standard errors

were calculated to provide estimated standard errors that are

robust to panel heteroskedasticity and contemporaneous

correlation of the residuals. The calculation of the PCSEs

provides corrected estimates of the OLS standard errors, but

does not alter the OLS parameter estimates that have been

adjusted for serial correlation. Nor does the adjustment

process for the standard errors change the summary and

diagnostic statistics for the regression. The resulting

corrected standard errors (PCSEs) are reported in the lower

panel of Table 3.

Tab le 3 . Corrected Panel Regression Analysis of IMD Index, 1992-1998 OLS Regression Estimates Corrected for Serial Correlation with Standard Errors

Robust to Panel Heteroskedasticity, and Cross-Country Correlat ion of Residuals. Depend ent Variable: IMD Index (Compiled Z Scores)

† .

OLS Estimates Corrected for Residual Serial Correlation:

Va ri ab l e Coefficient Standard Error T-Ratio P Val ue

Maharishi Effect 43.023 11.890 3.618 0.0004

OLS Estimates Corrected for Serial Correlation with Standard Errors Robust to Panel Heteroskedasticity and Cross-Country Residual Correlation:

Va ri ab l e† Coefficient Panel Corrected Standard Error T-Ratio P Value

Maharishi Effect 43.023 4.961 8.672 2.9 x 10

-15

Number of observations 322 Degrees of freedom 275

F-statistic F (46, 275)) 62.82 (p = 0.000) R-squared 0.913

S. E. of regression 14.469 R-bar-squared 0.899

Sum of squared residuals 57572.16 S. D. of dependent variable 45.430

Lag-one seria l correla tion 0.0 26　 Mean of dependent variable -1.43 x 10

-12

Durbin-Watson statistic 2.052 Akaike information criterion 2677.76

Diagnostic Tests:

LM test for s erial correlation: Jarque-Bera test for normality:

2 (1) = 0.244 (p = 0.622)

2 (2) = 7.986 (p = 0.018)

Tes t of po ole d reg re ssi on vs . fi xed e ffe ct s: LM test for p anel heterosceda sticity:

F (46, 275) = 61.245 (p = 0.000)

2 (45) = 84.702 (p = 0.0003)

Ramsey's RESET test for omitted variables: F (3, 272) = 1.678 (p = 0.172)

† Prior to OLS estimation, the dependent and independent variables were transformed using the Prais-Winsten transformation to remove first-order serial

correlation of residuals (r1 = 0.388). To conserve space, the 46 estimated country-specific intercepts (fixed effects) are not shown. These intercepts were

jointly significant. Complete regression results are available from the authors.

In the first step of the Beck-Katz procedure, the Prais-

Winsten transformation was separately applied to all variables

for each country. As recommended by Beck and Katz [3] the

transformation was based on single, common, estimated serial

correlation coefficient for all countries, rather than separate

coefficients for each country. The common estimated serial

correlation coefficient was 0.388 (Table 2). The OLS

parameter estimates that have been corrected for serial

correlation are equivalent to those from a regression model

with first-order autoregressive (AR (1)) errors that was

estimated using feasible generalized least squares.

After adjustment for serial correlation, the estimated

Maharishi Effect parameter indicated a significant upward

shift in the mean of the IMD index for Norway and New

Zealand of 43.023 units (refer to top panel of Table 3). The

latter parameter estimate is unbiased and consistent [3]; [21,

ch. 11], but its estimated standard error remains incorrect

(biased and inconsistent) because the LM test for panel

heteroskedasticity in (Table 3) indicates the presence of

significantly different error variances across countries.

Substantial remaining cross-country correlation of residuals

was also found, which also implies biased and inconsistent

OLS standard errors.

The non-significance of the LM test for serial correlation

(Table 3) indicates that the Prais-Winsten transformation was

successful in removing the serial correlation of the regression

residuals. The R-squared value for the regression was 0.913,

indicating that the regression accounted for 91.3 percent of

the variation in the index. Note that because the dependent

variables have been transformed, this R-squared value cannot

be validly compared to that reported in Table 2. The overall

F-statistic was significant, as was the F-test for the joint

significance of the country-specific intercept terms for the

fixed effect model. Ramsey's RESET test [18]; [31, p. 98, 80]

was not significant, indicating no evidence of omitted

explanatory variables or incorrect functional form of the

regression equation.

The lower panel of Table 3 reports the panel-corrected

standard error for the Maharishi Effect parameter. The PCSE

for the Maharishi Effect parameter reported in Table 3 is

robust to both panel heteroskedasticity and cross-country

correlation of the regression disturbances [4].

The PCSE for the estimated Maharishi Effect parameter is

substantially smaller than that resulting from adjustment for

Journal of Health and Environmental Research 2017; 3(3-1): 16-31 23

serial correlation alone (top panel of Table 3). This reduction

in the standard error results in a larger t-ratio for the

estimated Maharishi Effect parameter t (275) = 8.672, with

p-value 2.9 x 10

-15

. In addition to being statistically

significant, the latter estimate was also substantively

important, representing 61.7 percent of the standard

deviation of the untransformed IMD index (43.023/68.153).

Tab le 3 r eport s s evera l diag nos tic test s of mo del adequacy.

These tests include an F-test of the "pooled regression"

model versus the fixed-effects model [2, p. 12]; [21, p. 562].

The pooled regression model includes only a single common

intercept term, as contrasted with the FEM reported in Table

3, which incorporates a separate intercept for each country.

The F-test rejects the null hypothesis that the country-

specific intercepts are jointly equal to zero, thus indicating

that the pooled regression model is not a valid restriction on

the fixed-effects model.

A fu rth er i ssue r ega rdi ng t he int erp ret ation o f the

regression results in Tables 2 and 3 is the apparent non-

normality of the regression residuals. The Jarque-Bera test

[30] reported in both tables was statistically significant,

indicating rejection of the null hypothesis that the regression

residuals were drawn from a normal distribution. However,

the distribution of residuals was not grossly non-normal. The

histogram was bell-shaped, displaying mild negative

skewness (-0.280) and positive kurtosis (3.531), as compared

to the expected values of 0.0 and 3.0, respectively, for a

normal (Gaussian) distribution.

Even in the presence of grossly non-normal errors, under

fairly general conditions the OLS regression parameters

remain correct (unbiased and consistent) and are

approximately (asymptotically) normally distributed in large

samples [17, pp. 62-63]. This result also extends to the case

in which the errors are heteroskedastic and serially correlated

[21, pp. 458-460]. The usual hypothesis testing procedures,

such as t-tests and F-tests, also remain asymptotically valid

for large samples [17, pp. 62-63]. The significance of the test

for normality in this case appears to be due to the very large

sample size (322 observations) since the deviation from

normality appears to be slight. Thus it appears unlikely that

the observed mild departure from normality of residuals has

any important implication for the interpretation of the

empirical results shown in Table 3.

4.2. Conclusion of Primary Analysis

In sum, the estimated impact of the Maharishi Effect on

the mean level of the IMD index for New Zealand and

Norway remained substantial in size and highly significant

after correction for serially correlated errors, differing

variance of the regression residuals across countries (panel

heteroskedasticity), and cross-country correlation of the

errors. This significant estimated upward shift in the mean

IMD index lends support to the hypothesis of a sudden

improvement in the economies of New Zealand and Norway

triggered in 1993 when both countries reached the predicted

critical threshold of one percent of the national population

instructed in the TM technique.

To fu rther asse ss t he ap pro pri atene ss o f the Maha rishi

Effect phase transition model and to more fully understand

the character of the economic and social changes that

occurred in New Zealand and Norway with the onset of the

Maharishi Effect, the following three subsections (Correction

of Data Irregularities, Subsidiary Analysis, and Discussion)

examine the data sources and individual country

performances in detail. Also the nature of the improved

economic and social performance in New Zealand and

Norway is compared to those of other countries. The latter

discussion shows that for countries other than New Zealand

and Norway, most cases of sharp upward movement in the

IMD Index are the result of short-term volatility. In contrast,

the improved performance of New Zealand and Norway on

the IMD Index in 1994 is broad-based and then largely

sustained over the subsequent five-year period. From this

point of view, the large effect size and the high statistical

significance obtained in the panel regression analysis are not

surprising. Some alternative statistical approaches were used

in preliminary analysis of the panel data, all of which were

highly statistically significant indicating that the significant

results reported in Tables 2-3 are quite robust to the method

of analysis employed. To substantiate these results, the

Discussion section will investigate the logical basis for a

causal inference from the data.

5. Correction of Data Irregularities

The statistical results need to be discussed in the light of

any identified irregularities in the input data series that

contribute to the IMD Index.

5.1. Size

The IMD Index is calculated to favor countries with a

higher population since size is considered an aid to

competitive advantage. Twenty-four (10.7%) of the 224 IMD

data sources are directly related to the size of the country.

Some examples include Gross Domestic Product, Measures of

Tot al Inv est men t, Nu mber of C omp ute rs in Us e, Num ber of

Fortune 500 Companies, Size of Banks, etc. In effect, a larger

country has a greater potential to be ranked higher. This adds

significance to the relatively high IMD Index score of New

Zealand and Norway, which were ranked 11th and 6th by score

in 1996, but only 43rd and 41st on population size.

The IMD scores can be recalculated by excluding absolute

values (the excluded data is still represented in the resulting

scale since IMD uses both absolute values and per capita

values). An adjusted Index can be calculated by subtracting

the z scores for the 24 affected data points from the overall

IMD Index scores reported in Table 1.

5.2. Timing

The target timing of reported data lags by one year behind

the publication date of the IMD Yearbook, which comes out

in May of the quoted year. Thus the average reporting date

for 1994 rankings is mid 1993. Data for New Zealand lagged

24 Guy Hatchard and Kenneth Cavanaugh: The Effect of Coherent Collective Consciousness on National Quality of Life and

Economic Performance Indicators—An Analysis of the IMD Index of National Competitive Advantage

an average of 0.3 years behind the overall target date. This

lag was not evenly distributed. By inspection it was

determined that lags could potentially influence outcomes for

12 out of the 41 sub-scales. Norway data timing only lagged

0.13 years behind the target date and had very little impact

on overall scores.

For six sub-scales, the change in the New Zealand sub-

scale ranks for the following year 1994/1995 more accurately

gauged the actual improvement in the 1993/94 time frame.

These were Economic Sectors, Export of Goods and

Services, Imports of Goods and Services, Patents, Energy

Self-Sufficiency, and Educational Structures. In these cases,

the time lags meant that four of these sub-scales showed

larger improvements for 1994/95 than for 1993/94, one

remained unchanged, and one showed that a fall for 1993/94

had become a rise in 1994/95.

For the National Debt sub-scale, two out of four New

Zealand figures were three years out of date. OECD data

shows that New Zealand reduced its net national debt during

that three-year period. This would have improved New

Zealand’s ranking by 6 ranks. The 1993/94 sub-scale rank

remained unchanged on the IMD Index. It should have been

recorded as a positive improvement.

For the Government Expenditure sub-scale, New Zealand

data for levels of government employment was seven years

out of date. OECD data shows that overall government

employment in central administration and defense fell by 6%

between 1989 and 1993. Therefore the ranking on the

Government Expenditures sub-scale should have been higher

than it actually was, but the size of the annual change for

1993/94 was positive and therefore was not corrected.

For the Environment sub-scale, figures for all countries

lagged three years behind the target date therefore this scale

is not useful for assessing improvements in 1993/1994.

The Productivity sub-scale has five data inputs. For New

Zealand, one was missing, one was up to date, one was a

1990/95 trend for overall productivity, one was two years out

of date, and crucially important, agricultural productivity was

five years out of date. OECD data reports that the New

Zealand economy grew 0.5% in 1990, shrank 1.8% in 1991,

resumed a slow upward trend in 1992, and then grew more

rapidly in 1993 to attain an annual value of 5.5% by 1994,

the largest among OECD countries. Therefore, although the

Productivity sub-scale showed an improvement in rank, the

size of the improvement (only one place) is too small.

For the R & D Resources sub-scale, four of the six New

Zealand data inputs are three years out of date, one is two

years out of date, and one is up to date. New Zealand’s rank

on this sub-scale declined in the 1994 IMD Index and then

resumed an upward trend in the 1994, 1995, and 1996 IMD

publications. Therefore, it is assumed that the positive

change recorded in the 1995/1996 IMD publications more

accurately reflect the conditions prevalent in 1993.

Data irregularities had an impact on performance in only

one sub-scale of the Norwegian data. Two out of three

figures for Capital Formation were one year out of date,

while the fourth factor was a four-year growth rate. This sub-

scale declined between 1993/94, but increased strongly

between 1994/95, which more accurately reflects the Capital

Formation in 1993/94.

5.3. Trends

26 data inputs (11.6%) are trends. These trends are

variously reported over 3 to 5 years as average annual growth

percentage rates, annual compound percentage growth rates,

or geometric means. The sharpness of the improvements in

the New Zealand economy in 1993 evident in OECD

Surveys [38] demonstrates that data from trends used in the

IMD Index will greatly underestimate the rapid improvement

in the economy and expansion in business confidence, which

occurred during 1993. Thus the impact of trends used in the

IMD Index will mean that the regression analysis reported in

the previous section underestimates the significance of

improvements in the New Zealand economy. A similar,

though less-marked effect is evident in the oil-based

Norwegian economy, which experienced an unexpected

surge in domestic growth beginning in 1993 at 2%, and

doubling in 1994 to a record 4%.

5.4. Correction of IMD Scores for Data Irregularities

The detailed consideration of sub-scales shows that the

analysis would be more accurate if timing could be adjusted,

and more so if the effect of trends and size were also partialed

out of the analysis. Whilst the time involved in such data

collection and adjustment is prohibitive for the single

researcher (the analyzed panel data is derived from 72,128

single data inputs), it has been possible to estimate the effect

that the adjustment of timing and size would have on the

overall rank of New Zealand and Norway for 1993 and 1994.

This involves an approximation—a proportional approach to

adjust the 41 sub-scales recorded as ranked data only in the

1996 yearbook. Each sub-scale accounts for a specific known

proportion of the overall IMD index according to how many

source data points feed into the calculation of the overall Index.

If 1993/94 New Zealand data is on average one year out of

date on a particular sub-scale compared to data from other

nations in the same category, the 1994/95 sub-scale ranking of

New Zealand can be used to proportionally adjust the 1993/94

rank to more accurately reflect the 1993/94 change.

This is a relatively simple, if time consuming, procedure. It is

also the most conservative method of adjusting the IMD Index

for timing that can be adopted. No adjustments for the effect of

growth rates averaged over time were used. Our protocol

underestimated the score and rank of New Zealand and Norway

in 1994 as compared to the effect of completely recalculating

the IMD Index. After this proportional adjustment, the z scores

of the 24 ‘size-related’ categories were subtracted from the

IMD Index. On the new scale, which more accurately reflects

the ‘economic vibrancy’ of countries, New Zealand rose from

38.75 in 1993 to 78.05 in 1994—a rise of 39.3 units (compared

to 23.89 on the unadjusted scale). Norway rose from 27.69 in

1993 to 55.42 in 1994—a rise of 27.73 units (compared to

26.47 on the unadjusted scale). Since it was not feasible to

Journal of Health and Environmental Research 2017; 3(3-1): 16-31 25

adjust the data for the remaining 44 countries, the corrected

scale must be considered preliminary. However, the relatively

high proportion of timing irregularities in the New Zealand

analysis justifies the utility of this partial approach to data

correction. The more so since the majority of other data

irregularities are clustered among a few countries such as

Russia, which are near the bottom of the IMD Index, well away

from New Zealand and Norway. It is evident that the correction

of the IMD Index for New Zealand and Norway would have a

large positive impact on both the statistical significance of the

size of the change between 1993/94 and on the overall rank of

both countries in 1994 (New Zealand is 5th overall and Norway

10th on the resulting Economic Vibrancy Scale

6. Subsidiary Analysis

6.1. Breadth of Improvement on Index Sub-scales

The IMD reports ranks for each country for 1992-1996 on

the 41 sub-scales that contribute to the overall IMD Index

[29]. Subsidiary analysis of these ranks was undertaken to

test whether the improvement of factors contributing to the

rise in IMD scores was broad-based.

Figure 2. IMD Index Structure—Grouped By 8 Categories and 41 Sub-

Scales.

This higher score is commensurate with scores from the World Economic Forum

Index of international competitiveness which placed New Zealand 3rd and

Norway 7th in 1996. The World Economic Forum Index used to work jointly with

IMD, but since 1996 it has published its own Ind ex which places more emphasis

than IMD on openness to trade and investment, the effici ency of gover nment and

the financial sector, labor market flexibility and educational attainment.

For each country and each year, the number of sub-scales

that increased or fell in rank were recorded as a positive or

negative integers; by summing these two figures an overall

performance of ‘integer change in rank’ for sub-scales is

obtained for each country for each pair of years. For 1993/4,

New Zealand improved its rank on 26 sub-scales, remained

unchanged on 11 and fell back on 4 sub-scales. Norway

improved its rank on 28 sub-scales, remained unchanged on

7, and fell back on 5. Thus for 1993/94, New Zealand’s score

was 26 - 4 = +22 and Norway’s score was 28 - 5 = +23.

For each of the 36 countries with complete sub-scale data

for all years of the sample, the net number of sub-scale ranks

showing improvement from the previous year was calculated

for each country for 1993-1996. The net improvement in sub-

scale ranks was calculated as the number of increased ranks

minus decreased ranks. The resulting integer net-

improvement totals were then converted to z scores for

statistical analysis. The sample included four annual

observations for each of 36 countries, yielding a total of 144

observations.

Adjustments of timing for New Zealand and Norway were

then incorporated into the subsidiary analysis of sub-scales

using the information reported previously. Now New Zealand

shows a net gain in rank of +27 out of 39 available sub-scales

and Norway +25 out of 40 available sub-scales.

6.2. Analysis of Breadth of Improvement on IMD Index

Sub-scales

Panel regression analysis employing the Beck and Katz

method as before was used to test the hypothesis that the

onset of the Maharishi Effect in 1993 resulted in a significant

average net improvement in sub-scale ranks for New Zealand

and Norway relative to other countries in the sample. This

subsidiary analysis, thus, investigated the hypothesis that the

latter two countries showed an improvement in the IMD

index from 1993 to 1994 that was significantly more broad-

based than that experienced by the other 34 countries. Space

does not allow us to include the full results of this analysis,

which may be obtained from the authors.

Figure 3. Change in Sub-Scale ranks—positive minus negative change

1992-1996.

In summary our parameter estimate indicates that, on

average, the net number of increased index sub-scale ranks

for New Zealand and Norway for 1993-1994 was 27.592

units higher than the mean rank-improvement score for the

26 Guy Hatchard and Kenneth Cavanaugh: The Effect of Coherent Collective Consciousness on National Quality of Life and

Economic Performance Indicators—An Analysis of the IMD Index of National Competitive Advantage

remaining 34 countries over the whole sample. The

magnitude of the estimated Maharishi Effect parameter was

both statistically significant (p = 0.000033) and substantial in

magnitude. The parameter estimate is nearly three (2.88)

times the size of the inherent variability of the dependent

variable, as measured by the latter's standard deviation. By

the standards of social science, this is a large effect and lends

substantial support to the primary analysis, the modeling of

effect as a step function, and the unique character of the

changes in New Zealand and Norway.

7. Discussion

The statistical analysis has measured the significance of

the rises in Norway and New Zealand relative to all

individual changes among countries and years including any

other large rises. To assess further whether this change was

unique, the annual change for each year and each country

was expressed as a percentage of the standard deviation for

the overall scores in that year. New Zealand rose by 35% in

93/94 and Norway by 39%. All other annual changes in

scores were inspected; those above 25% are discussed on a

case-by-case basis as follows.

The IMD scores show some volatility4, but most of the

larger rises tend to be relatively short lived. This was true of

Argentina, Chile, Korea, Taiwan, Philippines, United

Kingdom, Russia, Poland, Spain, and Luxembourg. None of

the above fitted the step function model used to assess the

significance of rises in New Zealand and Norway.

Only Canada (24% and 25% between 94/96), Ireland (27% in

96/97), USA (34% in 96/97), Hungary (36% in 97/98), China

(30% in 95/96 and 32% in 97/98), and Finland (43% in 96/97)

have had sustained annual rises of more than 25% of the

standard deviation of IMD scores. The influence of the

Maharishi Effect on Canada and the USA created by a

coherence-creating group in Iowa has already been the subject

of research (Cavanaugh 1987, 88, 89). In fact, many Canadians

participate in the coherence-creating group in Fairfield, Iowa.

Similarly, there is a UK coherence-creating group in Merseyside

with many Irish participants. The authors cannot assess the

impact of such groups on their IMD performance. China and

Hungary are rising in economic performance from a very low

relative base line and are therefore not strictly comparable with

New Zealand and Norway.

Finland does have a comparable economy but it does not

have a coherence-creating group. Its IMD score improved

43% of the SD between 1996 and 1997, larger than the

1993/94 changes in Norway and New Zealand. OECD

Surveys throw light on the nature of the economic resurgence

in Finland. Prior to their collapse in 1990, Finland had a

Vo l a t i l i t y i n t h e I M D o v e r a l l s c o r e s r e s u l t s p a r t l y from the survey content of the

Index (33%). Surveys reflect both the long and short-term views of participating

executives; they also reflect changes in national mood. This can mirror the current

business and political climate, which can be subject to short-term fluctuations.

The IMD Index is also sensitive to regional economic factors, currency

fluctuations, overseas investor confidence, stability of specific global markets,

and regional conflicts.

strong economic relationship with the countries of the former

Soviet Union. From mid 1990 up to 1993, Finland’s real

GDP fell by almost 15% and unemployment rose from 3.5%

to 19%. The terms of trade deteriorated. There was a

financial crisis resulting in the devaluation of the currency.

Following this, the 1995 OECD Finland Economic Survey

concluded that the strong recovery of exports to former

Comecon countries was striking, with Finnish sales to

Central and Eastern Europe currently returning to levels that

prevailed just before the collapse of trade with this region in

1990/91. During this recovery, exports to the EU remained

largely stagnant and unemployment was still running at 17%

in 1996. In 1997, the OECD Survey reported that Finland

had fully recovered the enormous loss in output that it

sustained after the collapse of the Soviet Union. Therefore

the large rise in IMD Competitiveness ratings for Finland

between 1996 and 1997 was actually a recovery from the

massive economic shock that the country sustained after the

collapse of the Soviet Union. Nor did Finland enjoy the

balanced nature of the recovery in New Zealand and Norway

where unemployment fell as the economy gained speed

, as

confirmed by OECD Surveys [38].

8. Analysis of Causality

The improvement in the competitiveness scores of Norway

and New Zealand is highly statistically significant, but it is

important to discuss the reasons why they lend support to a

causal interpretation. The analysis has established a strong

correlation between events; on their own, correlation and

simultaneity of events only strengthen causality arguments,

but do not prove causality. Granger [20] suggests that the

temporal sequence of events is crucial to establishing

causality. In essence, if X precedes Y, then X is a good

candidate for a causal factor, but Y is not. Moreover, because

economic systems involve a complexity of mutually

interacting variables, if X is clearly exogenous to the existing

economic system then the argument for causality is

strengthened [47] Hendry and Richard [26] agree and place

emphasis on the need for a satisfactory explanatory model.

More than this, the examination of other potential causal

factors is essential. With these factors in mind, we can

discuss the arguments for causality.

8.1. Timing

Within the limits imposed by annual data, the statistical

analysis shows that there was a significant improvement in a

broad measure of the economic health of Norway and New

Zealand at the time predicted by theory, when the Maharishi

Effect threshold was surpassed. This shows a correlation,

which lends support to a causal hypothesis. The subsidiary

Economic theory predicts that there should be a negative relationship between

unemployment rate and economic growth. This empirical regularity known as

‘Okun’s Law’ states that the unemployment rate will decline by 0.4% for every

1% of annual real GNP growth above its trend rate of growth [15]. This was not

the case during the recovery in Finland, which underlines the unusual nature of

the economic changes taking place there.

Journal of Health and Environmental Research 2017; 3(3-1): 16-31 27

analysis, which makes the timing of the data inputs more

exact, strengthens this correlation considerably. Examination

of all other relatively large individual movements in national

IMD Index scores, has shown that most of these were

examples of volatility or due to other causes.

8.2. Economic Forecasts

OECD forecasts did not predict the speed, timing, and

depth of the improvements in the Norwegian and New

Zealand economies. In retrospect, in 1998 the OECD reached

the conclusion that 80% of the massive New Zealand

government debt repayment achieved between 1994 and

1998 was not predicted by prior cyclical trends. Moreover,

most influential New Zealand economic commentators did

not see any prospect of significant short-term economic

recovery even as late as 1992. For example, in a landmark

study of the New Zealand economy, Michael Porter and

Graham Crocombe wrote in 1991:

“The New Zealand economy is not well suited to the

imperatives of the modern global economy. Despite recent

refo rms, our economy has contin ue d to languish. The weak

competitive position of many of our industries remains

essentially unchanged. Government spending has become an

even larger drain on the national economy.

If New Zealand is to become a prosperous nation in the

next century, broad-based systematic change is required—in

attitudes, institutions, policies, and strategies. These changes

will take decades fully to bear fruit...” [11, p. 177]

This broad-based change came about not slowly through

changes in attitudes, institutions, policies, and strategies as

Porter and Crocombe suggest, but rapidly pointing to a novel

cause such as the Maharishi Effect. These results are

suggestive of the capacity of Maharishi Effect theory to

predict economic improvements that were not anticipated by

traditional economic theory.

8.3. Other Economies

The authors have published elsewhere [24, 25] case

studies of the Maharishi Effect in Cambodia (see also

Fergusson [16]), Mozambique, Merseyside, and USA, which

record similar broad-based improvements. These case studies

strengthen causality arguments, since they imply that the

Maharishi Effect theory is robust, repeatable, and portable;

especially since these four economies are radically different

from one another. Cambodia and Mozambique are formerly

the poorest nations in the world; USA is arguably the richest,

while Merseyside is an industrial metropolitan area.

8.4. Replication

Since various effects have been found in 47 previous

research studies [36], these replicated effects lend support to

a causal interpretation of the findings reported here. Many of

the previous studies use powerful time series analysis

techniques, where daily, weekly or monthly movements in

the dependent variable above and below the Maharishi Effect

threshold have been shown to lead positive and negative

changes respectively in the dependent variables (see for

example [40]). The prospective study of the Maharishi Effect

in Washington D. C. [23] also bolsters the argument for

causality since the timing and size of the effect on violent

crime were predicted in advance.

8.5. Model Sufficiency and Fit

The rapid onset of broad-based improvement in the IMD

Index of social and economic indicators and its sub-scales

provides a very good fit with the phase transition or step

function model of Maharishi Effect theory used in prior

research (see [25] for a full discussion of theory). Parameter

constancy is also indicated since both New Zealand and

Norway had comparable effect sizes.

8.6. Alternative Explanations

A c rucia l a dju nct to ca usal ana lysis mus t be a d isc ussion of

alternative explanations. For example, OECD surveys seek to

describe the causes of economic changes among their

member countries in terms of government policy, domestic

demand, strength of sectors, educational characteristics of the

work force, and international factors such as export demand,

exchange rates, and world economy. Particular emphasis is

placed on the effect of government policy. Therefore, in

seeking to identify the causes of the improvements in New

Zealand, the OECD [38] discussed the role of government

economic reforms that took place from 1983 to 1990. With

hindsight, it described the New Zealand economy as having

“the least distorted economy among OECD members”.

Wer e t he N ew Ze ala nd fi sc al r ef or ms in th e 1 98 0s th e

cause of the 1993/4 improvements in IMD scores? In part,

the answer is that the improvements were far broader than

could be anticipated from the nature of the reforms. The

improvements appeared in virtually all economic sectors. A

close study of OECD Summaries [38] shows that as late as

December 1992, the OECD itself did not expect the

sweeping economic reforms undertaken mainly in the mid

1980s to correct what it saw as fundamental imbalances in

the New Zealand economy. In this, it was drawing upon its

previous experience of the possible effects of government

policy changes among its members.

Porter and Crocombe [11, p. 8, 10, and 12] also reject this

explanation strongly—“The failure of heavy government

intervention was obvious, yet the early results of a rapid

transition to a market economy appeared to hold little

promise... Why despite one of the most rapid and far-

reaching econo mic liberalizations ever [begun eight years

earlier], does our economy continue to languish and

unemployment soar?...[This book] highlights how New

Zealand’s institutions and policies have retarded the progress

of the economy.”

Porter also suggested that the resource-dependent nature of

the New Zealand economy was indicative of poor prospects

[11]. Moreover, other significant New Zealand economic

commentators [5] also believed as late as 1992 that not only

was there little prospect of a significant improvement in the

28 Guy Hatchard and Kenneth Cavanaugh: The Effect of Coherent Collective Consciousness on National Quality of Life and

Economic Performance Indicators—An Analysis of the IMD Index of National Competitive Advantage

economy, but also that the government reforms of the 1980s

had in fact harmed the economy.

It is clear that the changes in government policy in New

Zealand occurred many years before the economic

improvements from 1993 onwards. Therefore it is natural for

Porter and other economists to reject government policy as

an explanatory principle. Moreover, our analysis and

previous research has located similar effects of coherence in

five nations, each with radically different government

policies [25].

Another possible explanation is the supposition that the

economies of major trading partners improved sufficiently to

stimulate the growth in New Zealand and Norway. However,

our analysis is comparative and it demonstrates a larger

improvement in New Zealand and Norway than their trading

partners. Therefore this argument must be rejected.

In general the strongest argument against other

explanations is the generalized nature of the IMD Index. It

includes 224 social and economic factors. The

simultaneously move of such a broad range of factors,

strongly suggests an exogenous variable. The coherence in

collective consciousness is a clear candidate for this position.

Moreover, Cavanaugh [7-10] controlled some other

economic variables suggested by modern economic theory,

and found that the influence of the Maharishi Effect on the

Misery Index in USA was robust.

8.7. Effect of Foreign Investment

Foreign investment is another alternative exogenous

variable. By the end of 1994, both New Zealand and Norway

had dramatically increased their attractiveness to foreign

investors. On the IMD scale of attractiveness, New Zealand

rose from 9th overall to 5th and Norway from 23rd overall to

10th between 1993 and 1994. In 1994, there was a net inflow

of overseas investment in stocks of New Zealand companies

of US$12.42 billion. This is US$3,500 for every man woman

and child in New Zealand, the second highest level of per

capita overseas investment in the world (second only to

Singapore). This represents 22% of New Zealand’s GDP, a t

the time the fourth highest ratio of investment to GDP in the

world (just behind Singapore, Malaysia, and Indonesia).

Norway has also had a large rise in net inflow of overseas

investment up from US$3.16 billion in 1992 to US$14.33

billion in 1994. This shows the rapid growth in confidence

that the rest of the world had in the economies of New

Zealand and Norway, but the timing of the investment does

not fit as a causal factor, since foreign investment did not

start to kick in until later in 1994 when the massive shift in

the economic prospects and performance had already taken

place and then began to attract international investors. The

more so since such investment was largely predatory of

assets or land rather than immediately stimulating new

economic activity

Foreign investors are looking for monetary gains; they do not necessarily care

about the long-term interests of target countries. They will tend to pull the plug on

investments for short-term reasons [37], [43].

8.8. Independent Confirmation of Economic Progress:

OECD Economic Surveys

The improvements in the economies of New Zealand and

Norway have been independently assessed by OECD

Surveys published biannually. The surveys confirm the

unusual, far reaching, unexpected, and sustained nature of

the economic resurgence in both countries. Among other

things, OECD surveys found that both New Zealand and

Norway enjoyed sustained periods of low inflation, high

economic growth, and low unemployment after the

Maharishi Effect threshold was passed. It is quite clear that

the OECD was taken aback by the speed and depth of the

economic changes in both countries. The trends were not

predicted accurately in earlier forecasts and were

characterized as atypical or unexpected in later reports after

the changes emerged in 1993/4.

8.9. Were the Economic Changes in Norway and New

Zealand Sustained

The impact of the Maharishi Effect on the economy of

New Zealand and Norway has been modeled as a step

function—in 1993/4 it is clear that the economy of both

countries ‘stepped up’ to a new level of performance. By the

beginning of 1998, New Zealand and Norway had enjoyed

five years of sustained economic growth with low inflation

and low unemployment. The relevant 1999 OECD Economic

Surveys [38] concluded that the strong performance of the

Norwegian economy since 1993 has lifted mainland GDP by

20% in only five years, and during the last five years New

Zealand has experienced relatively rapid economic expansion

by both past and international standards.

9. Cost Benefit Analysis

Our results suggest an intriguing strategy for national

economic development. Some economists have suggested the

general distribution of a minimum wage will be an effective

strategy to stimulate economic development. The approach

suggested by our results is a program to increase coherence

in collective consciousness by increasing creativity and

optimum brain functioning among a small select group of the

population, who then produce a highly influential field effect

among the whole population. Is this practical and cost

effective? Other studies have assessed the economic impact

of the Maharishi Effect through reduced crime [24] and

reduced healthcare costs [27]. These findings indicated

substantial savings. Hatchard [25, chap. nine] undertook a

more global measure of the economic impact of the

Maharishi Effect on the New Zealand economy whose

conclusions we summarize here.

9.1. GDP and Government Debt Reduction in New Zealand

Comparing 1988-92 and 1993-97 New Zealand had a

relative increase in real GDP growth rate per capita of 3.28%

p.a.. Excluding oil revenues, Norway had an increase in real

GDP Growth rate of 3.43% p.a. after the Maharishi Effect

Journal of Health and Environmental Research 2017; 3(3-1): 16-31 29

threshold had been surpassed. To estimate of how much of

the increase in GDP is due to the Maharishi Effect, Hatchard

[25] examined the principle sources of government revenue.

New Zealand government treasury and OECD sources show

that after the coherence threshold was passed in 1993, the

New Zealand government retired 23.5% of GDP in net total

debt over a four-year period. During this time real GDP

increased from US$42.6 billion to US$47.5 billion.

Figure 4. Government Debt New Zealand and OECD Average 1990-98.

Using OECD data, net debt was reduced from US$21.1

billion to US$12.4 billion—a total of US$8.7 billion in debt

retirement. This is a very significant economic performance

for a small nation. The government had been facing a

persistently high debt to GDP ratio that defied fiscally

conservative reform prior to the coherence threshold being

passed in 1993. New Zealand’s subsequent performance

approximates the step function typical of the Maharishi

Effect. The OECD Secretariat calculated that only one-fifth

of the debt reduction ($1.7 billion) could be accounted for by

prior cyclical trends. This indicates a phase transition in the

New Zealand economy when it reached the coherence

threshold in 1993 and supports our view discussed elsewhere

(Hatchard 2000) that the dynamics of the economy had

changed.

The OECD also reported that during the 1994-1997

period, the government received NZ$3.24 billion (US$1.62

billion) in sales of assets and lowered personal income tax

rates by 0.6% of household income and indirect taxes by

0.5% of GDP during this four year period—a total of

approximately US$1.36 billion. Taking the headline figure of

US$8.7 billion in net government debt reduction, subtracting

the US$1.96 billion identified as resulting from previous

trends and the US$1.62 billion in asset sales, and adding the

US$1.36 in tax reductions, the New Zealand government had

a net gain of US$6.48 billion over four years.

During this four-year period, economic activity increased

by US$14.44 billion compared to the previous trend. This

yielded a tax revenue benefit @ 38% of US$5.49 billion to

the New Zealand Government. In addition, the government

benefited by US$1.02 billion in reduced welfare payments to

the unemployed. The sum of increased tax revenues and

reduced unemployment benefits is US$6.51 billion.

The cost of instructing one per cent of the population of

New Zealand in the Transcendental Meditation program at

1999 prices is 38,000 x $575 = NZ$21.85 million (US$10.93

million).

In summary the New Zealand Government had a net debt

reduction of US$6.48 billion, which, according to the OECD,

could not be accounted for by previous cyclical trends; and a

net increase in revenues from increased tax-take and reduced

unemployment of US$6.51 billion. The equivalence of these

two headline figures suggests that the net increase in tax

revenues was the entirely the result of new economic factors

not predicted by previous economic trends. On this basis, it

would be very conservative to rely on Cavanaugh’s time

series analysis [7-10] which reports that 54% of the reduction

in the Misery Index in the USA was due to the Maharishi

Effect. Taking 54% of the improved economic performance

of New Zealand to be the result of coherence creating, we

arrive at $713 increase in GDP over four years for each $1

spent implementing the coherence creating strategy and

corresponding benefits to the government coming to $320.

This suggests that each person learning the Transcendental

Meditation program generated US$205,000 in increased

GDP over a four-year period.

9.2. Coherence as an Economic Multiplier

Our cost-benefit summary suggests that a coherence

creating program can be added to any economic system as an

economic multiplier. In effect a cascade of benefits are

stimulated in the economy; the estimated government saving

of $320 for every dollar invested represents an annual rate of

return on capital of 8,000%. Moreover, some savings are

unquantified due to either a lack of empirical data to support

an estimate or the essentially ‘priceless’ and vital nature of

commodities such as ‘improved quality of life’ or ‘increased

creativity and innovation’.

10. Conclusion

The empirical data and statistical analysis presented in this

study lends support to the hypothesis that the Maharishi

Effect had a substantial impact on the IMD Index scores of

National Competitive Advantage for both New Zealand and

Norway. This suggests a basis for wealth generation in a

coherence creating approach to national economic

development. Results of analysis, previous research and case

studies reported here appear to provide governments with a

simple-to-implement, highly cost-effective intervention to

develop national human resources, multiply investment, and

improve economic performance.

We ha ve fo un d t ha t a s t he M aha ri sh i E ffe ct st im ul ates

economic growth, the wealth generated is distributed in

different ways through the economic channels that are active

in that nation, and by the government via the taxation and

spending process. In New Zealand debt repayment was a

priority for their government. This was achieved on a

massive and unprecedented scale after the Maharishi Effect

30 Guy Hatchard and Kenneth Cavanaugh: The Effect of Coherent Collective Consciousness on National Quality of Life and

Economic Performance Indicators—An Analysis of the IMD Index of National Competitive Advantage

threshold was passed. In Norway, the government spent

heavily on social welfare, health, and education.

Coherence creating represents a unique form of ethical

investment that appears to not only create conditions

necessary to underpin economic growth but also to

dynamically multiply itself hundreds of times in the wider

economy thereby benefiting the entire population by

stimulating GDP, as well as reducing unemployment,

inflation, and government debt. This understanding extends

the growing perception that human factors underlie the

growth and stability of economic systems [45].

Acknowledgements

Thanks to Fred Travis and Maxwell Rainforth of

Maharishi University of Management for critical assistance

with analysis and presentation.

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Consciousness as the Source of Purposeful Leadership

Chapter

Full-text available

Mar 2023

Strong, focused, and inclusive leadership is of the essence in articulating and solving the overwhelming problems of climate change, social inequality, bio-extinction, and more. Many researchers have highlighted the need to design new integrative approaches to gather the collective energies of humanity to face those challenges (Datar et al., Rethinking the MBA: Business education at a crossroads. Harvard Business Press, 2010). Purposeful Leadership based on a higher purpose (Quinn & Thakor, The economics of higher purpose: Eight counterintuitive steps for creating a purpose-driven organization. Berrett-Koehler Publishers, 2019), a deep purpose (Gulati & Adam, Deep purpose: The heart and soul of high-performance companies. Harper Business Press, 2022), a sustainable purpose (Polman & Winston, Net positive: How courageous companies thrive by giving more than they take. HBS Press, 2021), and total interconnectedness (Tsao & Laszlo, Quantum Leadership, Stanford University Press, 2019) is another way proposed to harness the integrative self-awareness of people in organizations. We propose that purposeful leadership emerges from the higher consciousness of leaders and managers (Maheshwari, Journal of Management, Spirituality & Religion 18:77–91, 2021; Nader, One Unbounded Ocean of Consciousness. Aguilar, 2021). The foundational Vedic message of Yogasthah kuru karmani, or “Established in Consciousness, perform action” (Maharishi Mahesh Yogi, The science of being and art of living, 1963) from Bhagavad Gita, implies that highly developed consciousness of individuals leads to more evolutionary leadership (Harung et al., Leadership Org Dev J, 16:44–59, 1995). This chapter will discuss purpose-driven leadership and purpose-driven organizations (Quinn, & Thakor, The economics of higher purpose: Eight counterintuitive steps for creating a purpose-driven organization. Berrett-Koehler Publishers, 2019) in the context of developing a theory of organizational purpose (Morrison & Rota, Academy of Management Review, 2021), which describes the principal values and drivers of purpose-driven organizations, and how such organizations may be better positioned for solving the problems facing humanity. It will also describe how regular practice of transcending can help develop the consciousness of leaders and managers and help clarify their deeper purposes.

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Quantum Leadership Through Yoga Sutras

Chapter

Mar 2023

Anil K. Maheshwari

Quantum Leadership (QL) emerges at the intersection of science and spirituality, or the convergence of quantum field theory and the unified field theory of consciousness, to transform organizations toward care and compassion. A quantum view of reality can be described as a field of total connectedness and total dynamism. The unified field of consciousness is a nonmaterial, self-interacting, self-aware, dynamic field of intelligence. QL can be facilitated by contemplative mechanisms for development into higher states of consciousness. V-theory of transcendence is grounded in the unified field theory of consciousness, and models this process of transcending surface reality and developing deep connectedness. Yoga Sutras is an ancient and popular Vedic scripture that provides an integrated eight-limbed model for development into higher states of consciousness leading to unbounded oneness. This paper presents three case studies of QL that each used a different subset of contemplative tools from the eight-limbed integrated model from Yoga Sutras. Mahatma Gandhi, Maharishi Mahesh Yogi, and Swami Ramdev utilized the Yoga Sutras in different ways to develop powerful tools of social action that improved the lives of people around the world. We present four principles for QL and explore how this mode of operating from total interconnectedness and dynamism can be deployed to solve grand management challenges.

Socio-political Violence in Cambodia Between 1990 and 2008: An Explanatory Mixed Methods Study of Social Coherence

Article

Full-text available

Apr 2019

The relationship between individual and group practice of the Transcendental Meditation and TM-Sidhi program andreductions in social stress, tension, and violence has been the topic of systematic exploration since the 1970s in Canada,India, Israel, Lebanon, New Zealand, Norway, the Philippines, Puerto Rico, United Kingdom, and United States.Findings from these quantitative studies have been published in leading international conflict resolution and peacestudies journals. However, research in Cambodia has to date only been of a descriptive and qualitative nature with afocus on economic and social variables not violence or crime.The purpose of the present study is therefore to examine socio-political violence in Cambodia between January 1990and December 1992 (the baseline period) and the possible influence of group practice of the Transcendental Meditationand TM-Sidhi program at Maharishi Vedic University (MVU) by 550 undergraduate students beginning in January1993 through December 2008 (the impact-assessment period). This study uses an explanatory mixed methods designto examine socio-political violence using time series analysis of machine-coded news reports (quantitative data) anddocument analysis of national and international media reports, personal statements, and public documents (qualitativedata).Results indicate that beginning in January 1993, when meditating students at MVU began their group practice, amarked downward shift occurred in the trends of socio-political violence and other forms of violent crime in Cambodia,contrary to predicted baseline trends and contrary to widespread community and media expectations. Such aconclusion can be drawn from both the quantitative and qualitative evidence when comparing baseline andimpact-assessment periods, suggesting that the observed decline in socio-political violence during this time wasassociated with an increase in peace, order, and harmony—that is, a rise of social coherence—in the collectiveconsciousness of Cambodia generated by the group of meditating students at MVU.

The Maharishi effect: A model for social improvement. Time series analysis of a phase transition to reduced crime in merseyside metropolitan area

Article

Full-text available

Jul 1996

Time series analysis was used to test the hypothesis that Merseyside crime rate was reduced by a group practising Maharishi Mahesh Yogi's Transcendental Meditation and TM-Sidhi programme. Previous research suggests that a phase transition to increased orderliness u evidenced by reduced crime rate should occur when the group size approaches the square root of 1% of the total population. Analysis of Merseyside monthly crime data and coherence group size from 1978 to 1991 shows that a phase transition occurred during March 1988 with a 13.4% drop in crime when the group size first exceeded the √1 % or Maharishi Effect threshold (p < 0.00006). Up to 1992, Merseyside crime rate has remained steady in contrast to the national crime rate which has increased by 45%. In 1987 Merseyside had the third highest rime rate of the eleven largest Metropolitan Areas in England and Wales; by 1992 it had the lowest crime rate. 40% below levels predicted by the previous behaviour of the series. There were 255,000 less crimes in Merseyside from 1988 to 1992 than would have been expected had Merseyside continued to follow the national crime trend. Home Office figures indicate savings to Merseyside could exceed £1250 million for the five year period. Demographic changes, economic variables, police practice, and other factors could not account for the changes.

A Guide to Econometrics

Article

Dec 2000

The Competitive Advantage of Nations.

Article

Jan 1991

Endogenous Technological Change

Article

Jan 1990

P.M. Romer

Hot money and the politics of debt: Third edition

Book

Aug 2004

R.T. Naylor

A ball of hot money rolls around the world. It seeks anonymity and political refuge. It dodges taxes and sidesteps currency controls. It rolls through offshore shell companies and secret bank accounts, phoney charities and fraudulent religious foundations. It is kept rolling by white-collar criminals, gun-runners, drug dealers, insurgent groups, scam artists, tax evaders, gold and gem smugglers, and, not least, secret service agents plotting coups and financing revolutions. R.T. Naylor explains the origins of this pool of hot and homeless money, its origins, its uses and abuses, how the world of high finance, corporate and governmental, became hostage to it, and the price the world is paying and will continue to pay until the hostages are released. This book was one of the first, and remains the most comprehensive, to dissect the world of offshore finance, capital flight, money laundering, and tax evasion. Once a subject of concern principally to tax authorities and finance ministries, since the September 11, 2001 hot and homeless money has now become a central preoccupation for police forces and intelligence services around the world.

The effect of the Taste of Utopia Assembly on the World Index of International Stock Prices

Article

Jan 1989

Investigating Causal Relations by Econometric Models and Cross-Spectral Methods

Article

Jan 1969
ECONOMETRICA

Clive W. J. Granger

Is Consciousness the Unified Field? A Field Theorist's Perspective

Article

Jan 1987

John Hagelin

1981, Dr. Hagelin joined the theoretical physics groups at the European Laboratory for Particle Physics (CERN) and the Stanford Linear Accelerator Center (SLAC), where he became actively engaged in fundamental research at the forefront of supersymmetric unified field theories. Following his positions at CERN and at SLAC, Dr. Hagelin joined the faculty of Maharishi International University, where he established a doc-toral program in elementary particle physics and unified quan-tum field theories. Dr. Hagelin has published extensively in the area of supersymmetric unified quantum field theories in such journals as Physics Letters, Nuclear Physics and The Physical Review. Abstract Progress in theoretical physics during the past decade has led to a progressively more unified understanding of the laws of nature, culminating in the recent discovery of completely unified field theories. The parallel discovery of a unified field of consciousness raises fundamen-tal questions concerning the relationship between the two. Following a general introduc-tion to unified quantum field theories, we consider the proposal due to Maharishi Mahesh Yogi that the unified field of modern theoretical physics and the field of "pure consciousness" are identical. We show that the proposed identity between consciousness and the unified field is consistent with all known physical principles, but requires an expanded physical framework for the understanding of consciousness. Such a framework may indeed be re-quired to account for experimentally observed field effects of consciousness and phenomeno-logical aspects of higher states of consciousness.

Maharishi Vedic University: Introduction

Article

Maharishi Mahesh Yogi

A Test For Normality of Observations and Regression Residuals

Article

Aug 1987

Using the Lagrange multiplier procedure or score test on the Pearson family of distributions we obtain tests for normality of observations and regression disturbances. The tests suggested have optimum asymptotic power properties and good finite sample performance. Due to their simplicity they should prove to be useful tools in statistical analysis. /// En utilisant la procédure du multiplicateur de Lagrange, ou le score test, sur les distributions du genre Pearson, on obtient des tests de normalité pour les observations et les résidus de régression. Les tests suggérés ont des proprietés optimales asymptotiques et des bonnes performances pour des échantillons finis. A cause de leur simplicité ces tests doivent s'avérer comme des instruments utiles dans l'analyse statistique.