NEW ESTIMATES OF THE OPTIMAL TAX ON ALCOHOL

In this paper I use a new data set to estimate the optimal alcohol tax rate. As a benchmark, the empirical results imply that the optimal tax rate is over 100 percent of the net-of-tax price. However, alcohol taxation is a second-best solution to the problems associated with alcohol abuse. I conclude that the optimal alcohol tax rate would be much lower if punishment for drunk driving were more certain and severe. Government provision of information about the health consequences of heavy drinking would also remove part of the efficiency rationale for alcohol taxes.     

THE INFLUENCE OF IDEOLOGY ON CONGRESSIONAL VOTING

This paper investigates the influence of ideology on congressional voting. The conceptual framework is based on the assumption that the congressman's objective is the maximization of the expected value of his office. A comparative analysis of voting on two proposed floor amendments to the U. S. House Administration Committee's 1974 Federal Election Campaign Act bill indicates that congressmen will ignore ideological considerations when the opportunity cost of not ignoring them is sufficiently high. Voting on one of these amendments is found to be consistent with shirking as broadly defined.     

THE INFLUENCE OF ECONOMICS ON ANTITRUST LAW

Economists today play prominent roles in formulating antitrust policy and litigating antitrust cases. This paper explains why economics influences antitrust law and describes how economic theories enter and shape the antitrust system. Antitrust policy and doctrine change over time in response to developments in economic theory, and the decentralization of the antitrust adjudication system and the wide latitude accorded judges in interpreting antitrust statutes ensure that legal rules will reflect advances in the economic literature concerning the appropriate content of standards governing business conduct.     

SAME-GENDER SEX IN THE UNITED STATES IMPACT OF T-ACASI ON PREVALENCE ESTIMATES

Well-conducted telephone surveys provide an economical meansof estimating the prevalence of sexual and reproductive behaviorsin a population. There is, however, a nontrivial potential forbias since respondents must report sensitive information toa human interviewer. The National STD and Behavior MeasurementExperiment (NSBME) evaluates a new survey technology—telephoneaudio computer-assisted self-interviewing (T-ACASI)—thateliminates this requirement. The NSBME embedded a randomizedexperiment in a survey of probability samples of 1,543 U.S.and 744 Baltimore adults ages 18 to 45. Compared with NSBMErespondents interviewed by human interviewers, respondents interviewedby T-ACASI were 1.5 to 1.6 times more likely to report same-gendersexual attraction, experience, and genital contact. The impactof T-ACASI was more pronounced (odds ratio = 2.5) for residentsof locales that have historically been less tolerant of same-gendersexual behaviors and for respondents in households with children(odds ratio = 3.0).     

THE INFLUENCE OF RELATIONSHIP ENHANCEMENT TRAINING ON DIFFERENTIATION OF SELF

The effectiveness of the Relationship Enhancement (RE) program (Guerney, 1987a) in increasing functional and basic levels of differentiation of self (Bowen, 1987a) was examined. Participants were 20 married couples who received training in relationship enhancement skills over six 2 1/2-hour sessions. Measures of differentiation of self, quality of relationship, and anxiety were obtained before and after training and at follow-up. The data show that significant increases in the functional and basic levels of differentiation of self occurred, a significant increase in the quality of relationship occurred, and significant negative correlations were found between differentiation of self and anxiety.     

ANTI-SEMITIC ATTITUDES OF THE MASS PUBLIC: ESTIMATES AND EXPLANATIONS BASED ON A SURVEY OF THE MOSCOW OBLAST

In this article we examine anti-Semitism as expressed by a sampleof residents of the Moscow Oblast (Soviet Union). Based on asurvey conducted in 1920, we begin by describing anti-Jewishprejudice and support for official discrimination against Jews.We discover a surprisingly low level of expressed anti-Semitismamong these Soviet respondents and virtually no support forstate policies that discriminate against Jews. At the same time,many of the conventional hypotheses predicting anti-Semitismare supported in the Soviet case. Anti-Semitism is concentratedamong those with lower levels of education, those whose personalfinancial condition is deteriorating, and those who oppose furtherdemocratization of the Soviet Union. We do not take these findingsas evidence that anti-Semitism is a trivial problem in the SovietUnion but, rather, suggest that efforts to combat anti-Jewishmovements would likely receive considerable support from ordinarySoviet people.     

THE EMPIRICAL DEFINITION OF MONEY: A CRITIQUE

Money talks, but it does not give itself away. Lately there has been much talk about money, and even less agreement than heretofore about what it is. Because of the growing immateriality of money, the difficulty of defining it has waxed rather than waned with increased knowledge. This, of course, has not made the development of monetary theory or the determination of monetary policy any easier. Milton Friedman and Anna Jacobson Schwartz (hereafter referred to as F-S) prefer an empirical definition of money to a priori definitions, such as the generally acceptable means of payment.1 However, they fail to demonstrate either that complete freedom from a priori conceptualization is possible or that such procedure can avoid circularity of reasoning.2 If there is no "right" definition of money (F-S, 1970, pp. 137, 145–146, 151, 197–198), there is no "empirical" definition in the absence of the "right" monetary theory.     

THE INFLUENCE OF CLASS POSITION ON THE FORMAL AND INFORMAL SANCTIONING OF WHITE-COLLAR OFFENDERS

Although researchers have investigated formal legal reactions to white-collar crime, few data exist on informal reactions to white-collar lawbreakers and how these reactions influence sentencing decisions. Even so, commentators often assert that whitecollar offenders receive lenient criminal penalties because judges sympathize with such offenders due to the losses they incur through informal sanctions. In this light, a causal model is used to explore the influence of class position on an important informal sanction—loss of job—and the influence of loss of job on sentence severity. Class position is found to determine the likelihood of loss of job but not that of incarceration. Further, offenders who commit large-scale offenses are less likely to suffer loss of job than those who commit small-scale crimes. Social reactions to white-collar crime are inconsistent, and class position more strongly influences informal, nongovernmental social control than social control through law.     

SWITCHING REGRESSION ESTIMATES OF THE INTERGENERATIONAL PERSISTENCE OF CONSUMPTION

The influential economic theory of intergenerational transfers predicts a negative connection between credit constraints and intergenerational mobility of consumption. Existing work has used bequest receipt to signal a parent's access to credit markets when investing in his children's human capital. However, measurement error in bequest receipt generates misclassification error and, in turn, attenuation bias. Employing switching regressions with imperfect sample separation to deal with this error, we show that the intergenerational persistence of consumption in the United States for credit constrained families is much higher than that for unconstrained families, contrary to what the theory implies. This means that children from constrained families are more likely to have consumption levels similar to those of their parents than children from unconstrained families. Our results are robust to the choice of bequest variables and other predictive variables in the switching equation. (JEL C13, D12, E21, J62)     

MORAL MESSAGES: THE RELATIVE INFLUENCE OF DENOMINATION ON THE RELIGIOSITY-ALCOHOL RELATIONSHIP

This article examines the use and misuse of alcohol across religious denominations. After controlling for standard sociodemographic variables, we find that the impact of religiosity on alcohol use is greatest among those denominations taking a strong stand against its consumption, mainly because religion constitutes a significant reference group for members. We also find that religiosity fails to influence misuse, and discuss the possible reasons for this result.     

THE INFLUENCE OF CLASSROOM CHARACTERISTICS ON HIGH SCHOOL TEACHER TURNOVER

This paper examines the effect of class load and other factors on teacher turnover. Unlike previous studies, class load characteristics–class size, number of classes taught, and percentage of class time spent in areas outside a teacher's certification area–are included along with salary, personal characteristics, and district characteristics in a discrete time hazard model to simulate the effects of changing classroom characteristics on high school teacher turnover. The results indicate that class load characteristics are important correlates of job turnover. Policy implications for school districts, given a growing school-age population, are discussed.     

PROBING "DONT KNOW" ANSWERS: EFFECTS ON SURVEY ESTIMATES AND VARIABLE RELATIONSHIPS

Don't Know responses to survey questions are ambiguous becausethe same words are used by respondents to mean different things—ignorance,indecision, or uncertainty about the meaning of the questionasked. In order to clarify the meaning of such answers, surveyinterviewers are frequently trained to probe Don't Know answersat least once before the answer is considered final. We arguethat unconditional probing of Don't Know answers may not bea desirable practice, particularly as regards knowledge items.Large unintended effects on responses to four knowledge itemsresulted when two groups of interviewers, who administered thesame survey questions, probed Don't Know responses at differentrates. Strong evidence is provided in the article that the probingof Don't Know answers encouraged guesswork on the part of uninformedrespondents, giving rise to significant distributional differencesand differences in means across half samples for the affectedvariables. However, relationships between variables appear tobe largely unaffected by probing effects. In order to formulatevalid probing guidelines for interviewer training, further researchis needed to establish whether the findings for knowledge questionsgeneralize to factual questions.     

THE IMPACT OF INFORMATION AND RISK PERCEPTION ON THE HURRICANE EVACUATION DECISION-MAKING OF GREATER NEW ORLEANS RESIDENTS

This article contributes to the current discussion on how residents living in vulnerable areas make the decision to evacuate when they are in harms way. Key in this discussion is the question, what role does information and risk play in shaping evacuation behavior? This study used a sample of respondents from the greater New Orleans region (Orleans, Jefferson, and St. Bernard Parishes) of the Twelve Parish Survey (N = 1,207) conducted prior to Hurricane Katrina. The findings indicate that information sources are vitally important in the evacuation process. By examining the role of information from authorities, family, and friends; visual imagery; and the media we found that individuals use a variety of sources when they decide to evacuate. Further, the importance of visual imagery in the evacuation process is discussed. The article concludes with a discussion of the implications of information dissemination and its importance to members of the media and public policy makers.     

UNDERSTANDING THE EFFECTS OF MARRIAGE AND DIVORCE ON FINANCIAL INVESTMENTS: THE ROLE OF BACKGROUND RISK SHARING

We investigate how changes in marital status affect financial investments and how these effects vary with background risk. We use detailed register‐based panel data and difference‐in‐differences estimators to benchmark common unobserved influences on financial investments. Women increase the fraction of wealth invested in stocks after marriage and decrease it after divorce, whereas men show the opposite behavior. Households whose joint labor income risk is reduced more by marriage have a higher increase in their exposure to risky assets in marriage. Thus income risk sharing in the household is important for financial risk taking and investment responses to marital transitions. (JEL G11, J12, J16, D14)     

WITHIN‐MOTHER ESTIMATES OF THE EFFECTS OF WIC ON BIRTH OUTCOMES IN NEW YORK CITY

There is a large literature suggesting that “WIC works” to improve birth outcomes. However, methodological limitations related to selection into the Women, Infants, and Children (WIC) program have left room for doubt about this conclusion. This article uses birth records from New York City to address some limitations of the previous literature. We estimate models with mother fixed effects to control for fixed characteristics of mothers and we directly investigate the way that time‐varying characteristics of mothers affect selection into the WIC program. We find that WIC is associated with reductions in low birth weight, even among full‐term infants, and with reductions in the probability that a child is “small for dates.” These improvements are associated with a reduction in the probability that the mother gained too little weight during pregnancy. Improvements tend to be largest for first born children. We also find that women on WIC are more likely to be diagnosed with chronic conditions, and receive more intensive medical services, a finding that may reflect improved access to medical care. (JEL I12, H42)     

THE CHANGING INFLUENCE OF MONEY AND MONETARY POLICY ON EXCHANGE RATES

This paper focuses on an old issue—the linkage between money announcements and the exchange rate. It shows that the magnitude of the time-varying response of the spot exchange rate to an unanticipated money announcement is mainly driven by agents' expectations of the Federal Reserve's time-varying response to the deviation of the actual money supply from a prespecified target. The inference is, the magnitude of the exchange rate's response to economic announcements depends on market participants' expectations about the announcements and the Fed's probable monetary policy response.