IS THERE ADVERSE SELECTION IN LIFE INSURANCE MARKETS?

Adverse selection theory predicts people with a high risk of death are more likely to own life insurance. Using a unique data set merging administrative and survey records, we test this theory and find the opposite: people with high death risk are less likely to own life insurance. We postulate advantageous selection and price discrimination swamp adverse selection in individual life insurance markets. To determine which effect is more powerful, we analyze group life insurance markets, where insurance companies cannot price discriminate as well as in individual markets. Our data suggest that price discrimination has a stronger effect than advantageous selection. (JEL D8, G1, I1)     

FIRM SURVIVAL,UNCERTAINTY, AND FINANCIAL FRICTIONS: IS THERE A FINANCIAL UNCERTAINTY ACCELERATOR?

Using a large panel of unquoted UK firms over the period 2000–2009, we examine the impact of firm‐specific uncertainty on corporate failures. In this context we also distinguish between firms which are likely to be more or less dependent on bank finance as well as public and nonpublic companies. Our results document a significant effect of uncertainty on firm survival. This link is found to be more potent during the recent financial crisis compared with tranquil periods. We also uncover significant firm‐level heterogeneity because the survival chances of bank‐dependent and nonpublic firms are most affected by changes in uncertainty, especially during the recent global financial crisis. (JEL E44, F32, F34, G32)     

IS THERE A “DOUBLE BONUS” FROM REDUCING INEQUALITY?

We study the effect of inequality on growth in an overlapping generations (OLG) model where inequality affects growth through accumulation of human capital and endogenous fertility. In contrast to much of the existing literature, we argue that the effect of inequality on growth might be non‐monotonic. Our model suggests that the effect depends on the demographic stage of development: inequality impedes growth in low‐fertility (high human capital) economies, but enhances growth in high‐fertility (low human capital) economies. Our finding casts doubt on a “double bonus” from reducing inequality in developing countries which are typically characterized by high fertility. (JEL O40, J13, O15)     

FIDDLING WITH VALUE: VIOLINS AS AN INVESTMENT?

This paper measures the returns to investing in violins, using two different datasets. One dataset includes 337 observations on repeat sales of the same violins at auction and at dealer sales starting in the mid‐nineteenth century, and another dataset includes over 2,500 observations on sales of individual violins at auction since 1980. Overall, real returns for the dataset on repeat sales for the period 1850–2008 have been approximately 3.5%. Real returns to the overall portfolio of individual sales since 1980 have been about 3.3%. The price path has been stable with a slight negative correlation to stocks and bonds. (JEL D44, G11, L82)     

IS THERE RECIPROCITY IN A RECIPROCAL‐EXCHANGE ECONOMY? EVIDENCE OF GENDERED NORMS FROM A SLUM IN NAIROBI,KENYA

Norms of reciprocity help enforce cooperative agreements in bilateral sequential exchange. We examine the norms that apply in a reciprocal-exchange economy. In our one-shot investment game in a Nairobi slum, people adhered to the norm of balanced reciprocity, which obligates quid-pro-quo returns for any level of trust. The norm is gendered, with people more likely to comply when confronted with women rather than men, and differs from conditional reciprocity, prevalent in developed countries, according to which greater trust is rewarded with proportionally larger returns. Balanced reciprocity produces less trust and trustworthiness and smaller gains from trade than conditional reciprocity. ( JEL C72, C91)     

IS MORE COMPETITION ALWAYS BETTER? AN EXPERIMENTAL STUDY OF EXTORTIONARY CORRUPTION

Using a laboratory experiment, we assess whether increasing competition among public officials reduces extortionary corruption. We find that increasing the number of providers has no effect on bribe demands when citizens' search costs are high, but it increases corruption when search costs are low. The effect is absent in a parallel setting framed as a standard market, which we attribute to citizens using a nonsequential search strategy as opposed to sequential search in the corruption setting. We conclude that efforts to reduce search costs, such as infrastructure investments, are preferable to anti‐corruption policies aimed at increasing the number of providers. (JEL D73, D49, C91)     

TEACHING NOTES: PAPER OR PIXELS? AN INQUIRY INTO HOW STUDENTS ADAPT TO ONLINE TEXTBOOKS

This case study investigated how 23 students adapted to using a completely online textbook in lieu of a traditional paper text. All were enrolled in a single advanced MSW practice course. A variety of adaptation styles evolved. The students' primary strategy was to revert to making paper copies when permitted to do so instead of reading the assigned materials online. While a few students adapted to the electronic textbook, most generally did not because of interface design, time constraints, and study strategies. Implications for further research on relying completely on electronically-distributed reading materials are discussed.     

IS BOWEN THEORY VALID? A REVIEW OF BASIC RESEARCH

In the last 15 years, a substantial number of studies have tested the theoretical validity of Bowen family systems theory. A review of this basic research provided empirical support for the relationship between differentiation and chronic anxiety, marital satisfaction, and psychological distress. Bowen's assumption that couples with the same level of differentiation marry was not supported. His specific theories of sibling position and triangulation also received little empirical support. Research on multigenerational transmission has generally ignored Bowen's theoretical perspective, and more research needs to test Bowen's claim that his theory is universal. In addition, researchers still need to examine the effect of differentiation on child functioning, physical health problems, and adaptability.     

IS ECONOMICS A HOUSE DIVIDED? ANALYSIS OF CITATION NETWORKS

We investigate divisions within the citation network in economics using citation data between 1990 and 2010. We consider all partitions of top institutions into two equal‐sized clusters and pick the one that minimizes cross‐cluster citations. The strongest division is much stronger than could be expected to be found under idiosyncratic citation patterns and is consistent with the reputed freshwater/saltwater division in macroeconomics. The division is stable over time but varies across the fields of economics. (JEL A11, D85, I23)     

WHAT IS THE PROBABILITY YOUR VOTE WILL MAKE A DIFFERENCE?

One of the motivations for voting is that one vote can make a difference. In a presidential election, the probability that your vote is decisive is equal to the probability that your state is necessary for an electoral college win, times the probability the vote in your state is tied in that event. We computed these probabilities a week before the 2008 presidential election, using state‐by‐state election forecasts based on the latest polls. The states where a single vote was most likely to matter are New Mexico, Virginia, New Hampshire, and Colorado, where your vote had an approximate 1 in 10 million chance of determining the national election outcome. On average, a voter in America had a 1 in 60 million chance of being decisive in the presidential election. (JEL H0)     

GATEKEEPING IN FIELD PERFORMANCE: IS GRADE INFLATION A GIVEN?

This field note presents the results of a pilot study that explored the use of a new non-numerically rated field performance tool, a vignette matching measure for MSW students. Evaluation of performance in the field has proved to be a difficult task because few if any measures, including competency-based measures, have known levels of reliability and validity. Field instructors rated a sample of 154 students. Over half of the students were rated as exceptional, which may support the long-standing notion that performance ratings are inflated. Implications for social work education and research are discussed.     

CAN A HIGH SENSE OF CONTROL AND JOHN HENRYISM BE BAD FOR MENTAL HEALTH?

Social stratification profoundly affects mental health. Specifically, substantial empirical evidence finds that higher status promotes mental health via a higher sense of control and a propensity to cope actively with problems. An unresolved issue, though, is whether the effects of sense of control and active coping on mental health are uniformly beneficial across levels of socioeconomic status. Perceived control and John Henryism, an active coping style, may undermine mental health, especially for lower-status persons, who lack resources. Using data from the National Comorbidity Survey for African Americans, Hispanics, and whites, we find that both sense of control and John Henryism tend to be monotonically related to positive mental health regardless of socioeconomic status and race/ethnicity.     

THE POT RUSH: IS LEGALIZED MARIJUANA A POSITIVE LOCAL AMENITY?

This paper examines the amenity value of legalized marijuana by analyzing the impact of marijuana legalization on migration to Colorado. Colorado is the pioneering state in this area having legalized medical marijuana in 2000 and recreational marijuana in 2012. We test whether potential migrants to Colorado view legalized marijuana as a positive or negative local amenity. We use the synthetic control methodology to examine in- and out-migration to/from Colorado versus migration to/from counterfactual versions of Colorado that have not legalized marijuana. We find strong evidence that potential migrants view legalized marijuana as a positive amenity with in-migration significantly higher in Colorado compared with synthetic-Colorado after the writing of the Ogden memo in 2009 that effectively allowed state laws already in place to be activated, and additionally after marijuana was legalized in 2013 for recreational use. When we employ permutation methods to assess the statistical likelihood of our results given our sample, we find that Colorado is a clear and significant outlier. We find no evidence for changes in out-migration from Colorado suggesting that marijuana legalization did not change the equilibrium for individuals already living in the state. (JEL I18, R23, K42, C22)     

MARKET POWER AND COLLUSION IN THE OCEAN SHIPPING INDUSTRY: IS A BIGGER CARTEL A BETTER CARTEL?

The regulatory structure of the ocean shipping industry allows carriers to enter into joint pricing agreements (conference agreements) that are free from antitrust scrutiny, and requires freight rates to be published and policed by a government agency. We test whether this regulatory structure leads to the exercise of market power, and identify whether that market power resides with conferences themselves or requires the participation of carriers outside the conference. The results suggest that liner conferences are not particularly effective cartels although some market power may exist in ocean shipping. Market concentration may be a contributing factor to this market power. (JEL L12, L43, L92, K21)     

HOW MANY MORE CITES IS A $3,000 OPEN ACCESS FEE BUYING YOU? EMPIRICAL EVIDENCE FROM A NATURAL EXPERIMENT

We analyze the effect of open access (OA) status of journal articles on citations. Using cross‐sectional and panel data from mathematics and economics, we perform negative binomial, Poisson, and generalized method of moments/instrumental variable methods regressions. We benefit from a natural experiment via hybrid OA pilot agreements. Citations to pre‐prints allow us to identify the intrinsic quality of articles prior to journal publication. Overall, our analysis suggests that there is no hybrid OA citation benefit. However, for the subpopulation of articles without OA pre‐ or post‐prints, we find positive hybrid OA effects for the full sample and each discipline separately. (JEL L17, O33, A11)     

MOVING TOWARD A MORE INCLUSIVE EDUCATIONAL ENVIRONMENT? A MULTI-SAMPLE EXPLORATION OF RELIGIOUS DISCRIMINATION AS SEEN THROUGH THE EYES OF STUDENTS FROM VARIOUS FAITH TRADITIONS

This multi-sample study of master of social work students from various faith traditions (N=391) explores the extent to which religious discrimination is perceived to exist as a problem in social work education programs. No difference in perceptions emerged between religiously affiliated and non-affiliated respondents. Evangelical Christians generally reported higher levels of discrimination than theologically liberal and mainline Christians. The confirmation of the second hypothesis suggests that professional attention may be needed to ensure compliance with the profession's ethical and educational standards, while the failure of the first hypothesis suggests that progress toward a more inclusive educational environment may be occurring.     

ARE SMALL FIRMS MORE BEAUTIFUL OR IS BIGGER BETTER? A Study of Compensating Differentials and Law Firm Internal Labor Markets

Research on the size–job rewards relationship emphasizes extrinsic rewards that are typically more prevalent in large, complex organizations. We examine whether certain intrinsic rewards are more characteristic of small firms and shift the focus from manufacturing industries to professional service (law) firms. We find that small is not entirely beautiful. Smaller firms offer more autonomy but no more challenging work or better coworker relations, whereas larger firms offer lucrative salaries, enhanced benefits, and greater promotional opportunities. Our results challenge the compensating differential explanation whereby large firms offer superior extrinsic rewards to compensate for a shortfall of instrinsic job rewards.