CONSPICUOUS SPENDING AND THE INCOME DISTRIBUTION OF SOCIAL GROUPS

Using South African household expenditure data, we analyze how the spending of a household on visible goods, such as jewelry and clothes, depends on the distribution of income within its social group. We find that this spending is positively correlated with the share of peers who possess a similar income level to the household, what we dub the “local income share.” Moreover, we find that the spending of a household on visible goods is positively correlated with the average income of peers that are poorer than this household. We interpret this as evidence for cascade effects through which income changes among the poorest in the social group can trigger adjustments in the visible spending patterns of the wealthy. In line with previous research (Charles et al. 2009), we also find that visible spending of a household is negatively correlated with the average income of its social group. We present a simple model of status competition based on Hopkins and Kornienko (2004) that synthesizes these effects and can account for our results. (JEL D12, D31, O12)     

A MODEL OF OPTIMAL PLANT SIZE WITH AN APPLICATION TO THE DEMAND FOR COGNITIVE ACHIEVEMENT AND FOR SCHOOL SIZE

A model of optimal plant size is developed which predicts that 1) plants experience increasing returns to in-plants inputs, 2) the relative price of plant output is greater in rural areas than in urban areas, and 3) plants are larger in urban areas than in rural areas. The model's predictions appear to be consistent with behavior in a number of consumer services (e. g., grocery, movie, and library services). These predictions are more rigorously tested and are strongly supported when demand functions for cognitive achievement and for school size are estimated. These regressions also lend support to the quality-quantity model of fertility.     

THE USE OF THE INTERNET AMONG ACADEMIC GAY COMMUNITIESIN TAIWAN : AN EXPLORATORY STUDY

The rise of the internet has tremendous impacts on homosexual communities in Taiwan. The internet has created a medium where homosexual people can form virtual communities to seek for emotional support without fearing the disclosure of their sexual preferences and causing unwanted negative consequences. The internet has become a medium where homosexual communities can share information with each other and voice their concerns to the public. Thus, the internet may become what Ithiel de Sola Pool (1984) called 'the technology of freedom' for homosexual communities. The purposes of this paper are set to discuss whether academic homosexual individuals perceive the internet to be more fair and impartial in terms of news reporting than traditional mass media and to investigate why they use the internet. This paper employs a questionnaire survey method to collect data for the questions. The quantitative analysis of survey data (N=701), from a self-completed questionnaire using modified snowball sampling of gays and lesbians from Taiwan. Principal component analysis with varimax rotation led to seven factors that account for 66.31% of the variance. These factors are social interaction and information, entertainment and relaxation, personal revelation, preference, privacy and escapism, pass time and, novelty-seeking. Correlation analyses also suggested that respondents' demographics, internet usage frequency and, time are associated with their use motivation. As an exploratory study of an academic homosexual population and their internet use behaviour in Taiwan, this study raised more questions than it intended to answer. The use of individual media by this group needs further study.     

THE INCOME EFFECTS OF THE SOURCES OF MONETARY CHANGE: AN HISTORICAL APPROACH*

This paper attempts to answer the question – does the way in which the quantity of money is introduced into the economic system matter or only the amount introduced? The question of the importance of the sources of monetary change has become a key issue between Monetarists and Neo-Keynesians. The approach of the paper is to compare different periods in U. S. monetary history over the time span 1834–1914, which exhibited different sources of monetary change, to see whether the source of monetary change significantly affected the relationship between money and income between these periods, as well as within them. In the majority of cases examined, the income effects of the sources of monetary change were found to be insignificant.     

SOCIAL WORKER PERCEPTIONS OF THE PORTRAYAL OF THE PROFESSION IN THE NEWS AND ENTERTAINMENT MEDIA: AN EXPLORATORY STUDY

This exploratory study describes social workers' perceptions of the depiction of the social work profession found in the news and entertainment media. A random sample of 665 MSW social workers who were members of the Florida Chapter of the National Association of Social Workers were surveyed regarding how they felt the profession was depicted in the news and entertainment media on a set of paired adjectives comprising 9 semantic differential scales. Findings showed that these social workers perceived the profession to be depicted negatively in both news and entertainment media. Implications for social work educators are discussed.     

AN EMPIRICAL TEST OF THE MEDIAN VOTER MODEL

This paper uses data at the school district level for 257 Michigan school districts to estimate the Bowen equilibrium level of expenditures in each district. The estimation uses a theoretical model of millage referenda that is developed in the paper. Then, the estimated Bowen equilibrium level of expenditures in each district is compared with the actual level. In the average district, the actual level of expenditures is less than 3 percent away from the estimated Bowen equilibrium. This evidence strongly suggests that, for educational expenditures at least, the theoretical median voter model provides a good explanation of empirical reality.     

AN ECONOMETRIC MODEL OF THE DEMAND FOR CHILD CARE

Child care denotes any arrangement used by a working parent for care of a child, including self-care. This paper is concerned with the factors that influence the demand for market modes of child care by two parent families with working mothers. An econometric model is specified that relates the demand for child care to price, income, and other economic variables. Because of the discrete nature of the child care decision, the multinomial logit probability model is used to analyze the data. The empirical results suggest that the demand for child care is sensitive to both prices and income.     

THE STRUCTURE OF FAMILY PARADIGMS: AN ANALYTICAL MODEL OF FAMILY VARIATION

The theory of family paradigms provides an integrative framework for under-standing and systematizing the diverse ways that families organize and make sense of family life. Using formal methods of analysis based on logical and geometrical arguments, the priecise implications of models of family types can be investigated and compared. The paradigmatic framework can thus be refined and extended to form a more rigorous theoretical grounding for family typologies is explored and a miltidimensional model is derived the geometry of which is equivalent to, but more succinctly captures, the underlying structure of uariation in family para-digms. In Part II, the resulting model is interpredtd and explored in terms of implications for family theory, theory construction, and family therapy. Clarifying the basic dimensions of the paradigmatic framework also permits more precise exploration of interrelationships among related models of family types, which can be understood as reduced models derivable from the complete geometry of the paradigmatic framework.     

THE EFFECT OF MINIMUM WAGES IN THE PRESENCE OF FRINGE BENEFITS: AN EXPANDED MODEL

Firms may react to a minimum wage hike by reducing their expenditures on fringe benefits. This possibility is incorporated into an expanded model of minimum wages. A set of predictions that differentiate this expanded model from current minimum wage models is derived and tested. The expanded model is shown to better predict the effect of minimum wages on labor force participation, quit rates, and prices than previous models. An interesting result of the expanded model is that a covered worker may be worse off due to a minimum wage hike even if he retains his job.     

THE GRAVITY MODEL: AN ILLUSTRATION OF STRUCTURAL ESTIMATION AS CALIBRATION

Dawkins, Srinivasan, and Whalley (“Calibration,”Handbook of Econometrics, 2001) propose that estimation is calibration. We illustrate their point by examining a leading econometric application in the study of international and interregional trade by Anderson and van Wincoop (“Gravity with Gravitas: A Solution to the Border Puzzle,”American Economic Review, 2003). We replicate the econometric process and show it to be a calibration of a general equilibrium model. Our approach offers unique insights into structural estimation, and we highlight the importance of traditional calibration considerations when one uses econometric techniques to calibrate a model for comparative policy analysis. (JEL F10, C13, C60)     

BUILDING ON PRETREATMENT CHANGE TO CONSTRUCT THE THERAPEUTIC SOLUTION: AN EXPLORATORY STUDY

This paper reports the authors' "accidental" discovery that change in the problem situation frequently occurs prior to the first session, and that clients can often recall and describe such changes, if prompted. The authors describe one technique for eliciting reports of pretreatment change from clients, and discuss the results of an informal survey of 30 families who responded to this intervention. Rather than discounting pretreatment change as a "flight into health," it can be framed in Batesonian terms as a "difference that makes a difference."     

THE POLITICAL ECONOMY OF INTERGENERATIONAL INCOME MOBILITY

The intergenerational elasticity of income is considered one of the best measures of the degree to which a society gives equal opportunity to its members. While much research has been devoted to measuring this reduced‐form parameter, less is known about its underlying structural determinants. Using a model with exogenous talent endowments, endogenous parental investment in children, and endogenous redistributive institutions, we identify the structural parameters that govern the intergenerational elasticity of income. The model clarifies how the interaction between private and collective decisions determines the equilibrium level of social mobility. Two societies with similar economic and biological fundamentals may have vastly different degrees of intergenerational mobility depending on their political institutions. We offer empirical evidence in line with the predictions of the model. We conclude that international comparisons of intergenerational elasticity of income are not particularly informative about fairness without taking into account differences in politico‐economic institutions. (JEL E24, J62, J68, P16)     

INCOME UNCERTAINTY and THE ONSET OF THE GREAT DEPRESSION

Income uncertainty contributes substantially to explaining the fall in consumption that marks the onset of the Great Depression. Consistent estimates of the variance of income measure income uncertainty from 1921-30 and are produced using a linear moment model. This series provides a statistical link between the large erratic swings in income uncertainty after September 1929 and the Great Crash in the stock market. Comparison of the behavior of income uncertainty in the 1920s to the pre-World War I and post-World War II eras suggests that the experience after the Great Crash was historically unique.     

AN INCOME-SATIATION MODEL OF EFFICIENCY WAGES

Efficiency wages are wages that exceed a worker's reservation wage. A standard explanation for such wages is "bonding": high wages increase the cost of being discharged for misbehavior and so help ensure worker honesty. A neglected alternative is "satiation": by decreasing the worker's marginal utility of income, the high wage decreases the benefit from misbehavior. Satiation, unlike bonding, applies even in a one-period model, but it relies on the misbehavior having a monetary benefit and on at least part of the punishment being nonmonetary.     

DECENTRALIZATION AND INCOME DISTRIBUTION IN SOCIALIST ECONOMIES

Can an informationally decentralized mechanism be designed so as to lead society to a predetermined distribution of income and with the resulting allocation being Pareto optimal? In the present paper this question is answered affirmatively by presenting a decentralized mechanism capable of achieving these objectives. As a by-product of the analysis the redistributive possibilities arising from the creation of accounting “money” are also brought out.