Bias Correction in the Dynamic Panel Data Model with a Nonscalar Disturbance Covariance Matrix

Approximation formulae are developed for the bias of ordinary and generalized Least Squares Dummy Variable (LSDV) estimators in dynamic panel data models. Results from Kiviet [Kiviet, J. F. (1995), on bias, inconsistency, and efficiency of various estimators in dynamic panel data models, J. Econometrics68:53-78; Kiviet, J. F. (1999), Expectations of expansions for estimators in a dynamic panel data model: some results for weakly exogenous regressors, In: Hsiao, C., Lahiri, K., Lee, L-F., Pesaran, M. H., eds., Analysis of Panels and Limited Dependent Variables, Cambridge: Cambridge University Press, pp. 199-225] are extended to higher-order dynamic panel data models with general covariance structure. The focus is on estimation of both short- and long-run coefficients. The results show that proper modelling of the disturbance covariance structure is indispensable. The bias approximations are used to construct bias corrected estimators which are then applied to quarterly data from 14 European Union countries. Money demand functions for M1, M2 and M3 are estimated for the EU area as a whole for the period 1991: I-1995: IV. Significant spillovers between countries are found reflecting the dependence of domestic money demand on foreign developments. The empirical results show that in general plausible long-run effects are obtained by the bias corrected estimators. Moreover, finite sample bias, although of moderate magnitude, is present underlining the importance of more refined estimation techniques. Also the efficiency gains by exploiting the heteroscedasticity and cross-correlation patterns between countries are sometimes considerable.     

The Impact of Macro- and Micro-Economic Uncertainty on Family Formation in The Netherlands

In this paper, we study the impact of macro- and micro-economic uncertainty on family formation between 1970 and 2000 in The Netherlands. Using data of the Family Survey Dutch Population, we analysed the monthly hazard rates of experiencing the transition into first union, first marriage and parenthood after the start of the relationship of 365 male and 364 female partners by applying piecewise-constant exponential models. The results show that macro-economic uncertainties, i.e. high unemployment rates, lead to postponement of the first union and marriage, but not of the first child. In addition, we found that this relationship is not interpreted by individual-level employment insecurity, i.e. temporary employment or unemployment, which does not seem to prevent people from making long-term family commitments. Although hypothesized, we did not find that the negative effects of macro- and micro-level insecurities on family formation reinforce each other or that they vary between individuals with different educational qualifications.     

OLS and IV estimation of regression models including endogenous interaction terms

We analyze a class of linear regression models including interactions of endogenous regressors and exogenous covariates. We show how to generate instrumental variables using the nonlinear functional form of the structural equation when traditional excluded instruments are unknown. We propose to use these instruments with identification robust IV inference. We furthermore show that, whenever functional form identification is not valid, the ordinary least squares (OLS) estimator of the coefficient of the interaction term is consistent and standard OLS inference applies. Using our alternative empirical methods we confirm recent empirical findings on the nonlinear causal relation between financial development and economic growth.     

The Impact of Macro-Economic Circumstances and Social Protection Expenditure on Economic Deprivation in 25 European Countries, 2007–2011

In this study, we investigate to what extent macro-economic circumstances and social protection expenditure affect economic deprivation. We use three items from round five of the European Social Survey (2010–2011) to construct our latent outcome variable, which we label economic deprivation in the 3 years before 2010–2011. The results of our linear multilevel regression analyses indicate that in countries that perform worse economically, individual experiences of economic deprivation are more prevalent: the stronger the rise in the unemployment rate and the lower a country’s wealth, the more economic deprivation individuals experience. We also find that in countries with high levels of social protection, people experience less economic deprivation as compared to countries with low levels of social protection. In turn, adverse economic conditions in a country temper these positive outcomes of social welfare arrangements. Finally, our study reveals that the strength of the relationship between a low income and economic deprivation strongly varies according to the economic circumstances in a country and the generosity of the welfare state.     

The role of eviction in veterans’ homelessness recidivism*

Eviction is one of the leading causes of homelessness in the U.S.A. Though permanent supportive housing (PSH) helps participants maintain housing, some still leave due to eviction. This study aimed to determine whether eviction is an important predictor of recidivism and time to return to homelessness for participants exiting PSH. The characteristics and post-exit service use of 2802 Veteran PSH participants were analyzed based on exit reason. A Cox proportional hazards survival analysis modeled risk factors for returning to homelessness within 360 days of exit. Compared with other exiters, evicted Veterans remained in the program for less time, were less likely to be receiving service-connected compensation, and used more services – particularly mental health and substance use services – following their exit, and those who returned to homelessness did so more quickly. Identifying participants who might benefit from more intensive services, project-based housing, or income supports may prevent evictions and subsequent returns to homelessness.     

Understanding barriers to healthy behaviors in black college men

Objective: Due to the short life expectancy of black men, it is important to understand what impacts health behaviors in this group so that interventions and programs can be developed to improve their health behaviors which may help in increasing the life expectancy of black men. The purpose of this study was to understand what perceived barriers exist for black college men that prevent them from engaging in healthy behaviors. Participants and Methods: Thirty-five black male students at a southern Historically Black College and University participated in five focus groups and four interviews. A qualitative analysis was used to analyze data for similar themes and codes. Results: Perceived barriers to engaging in healthy behaviors appear to be influenced by image, food cost, and education. Cues to action for not engaging in healthy behaviors appear to be related to role models. Conclusions: Black college men are not adequately informed or educated about elements that can impact their health and how they can improve it. College administrators and researchers should develop interventions that include elements of increasing health knowledge and age-appropriate role models to improve health behavior change among this group.     

Queer-friendly nation? The experience of Chinese gay immigrants in Canada

In the past decade, the People’s Republic of China has become the leading source country of immigrants to Canada. However, little is known about the experience of Chinese gay immigrants in Canada. Using narratives collected through a qualitative study, we show the way in which Chinese gay men construct their experience of immigration in Canada. Unlike the national discourse that claims Canada is a friendly nation for members of the LGBTTQ community, the experiences of Chinese gay immigration present a different story. As racialised gay men, they continue to be subjected to social violence in Canada – albeit differently from what they experienced in China. The analysis demonstrates the complexity of social marginalisation experienced by these men, the understanding of which is essential for social workers to engage in practice with them that is socially transformative.     

Earnings,relative income,and family formation

The probability of first marriage for men who graduated from Wisconsin high schools in 1957 was analyzed with respect to their Social Security earnings records, Wisconsin income tax reports for parents, and other variables. The findings provide no support for Easterlin's hypothesis that marriage will occur earlier when young men judge their economic prospects favorably with respect to their parents' income. However, young men's earnings and time spent in schooling to increase them were found to be important influences on marriage timing. Additional schooling had little effect net of the time it absorbed.     

The relationship of trauma exposure to sex offending behavior among male juvenile offenders

The most common type of adult and juvenile sex offender treatment utilizes a Relapse Prevention (RP) model. In RP clients learn about their offense cycle with an emphasis on recognizing high-risk situations and negative emotional states that can be precursors or triggers to offending behavior. This study identifies ways that traumatic experiences and trauma-associated feelings can be offense triggers for juvenile sex offenders. Researchers interviewed the treating clinicians of 40 male juvenile sex offenders who received at least six months of RP sex offender treatment. Results showed that 95% of the youths had experienced a Post Traumatic Stress Disorder (PTSD) Criterion A traumatic event and that 65% met criteria for PTSD based on clinician judgments. Overall, clinicians identified prior trauma exposure as being related to the offense triggers in 85% of offenders. Specifically, the following trauma-related feelings were identified as offense triggers: intense fear in 37.5% of sex offenders, helplessness in 55%, and horror in 20%. Implications for sex offender treatment programs are discussed.