THE IMPACT OF STOCK MARKET FLUCTUATIONS ON THE MENTAL AND PHYSICAL WELL‐BEING OF CHILDREN

The stock market crash of 2008 caused a severe impact to households. Earlier research has explored the impacts of a stock market crash on life well‐being, psychological stress, and adult health behaviors. We extend this literature by documenting impacts of stock market fluctuations on a range of child outcomes; including effects on both mental and physical health. We show a negative effect of a market crash on hospitalizations, child reported health status, sick days from school, and an aggregate health index measure. Both graphical and regression‐based analysis reveal that our results are not driven by a preexisting trend of declining child health before the market crash and extensive sensitivity analysis demonstrates that the results are robust to multiple empirical specifications. (JEL I15, E32, J13)     

NEW MEASURES OF THE COSTS OF UNEMPLOYMENT: EVIDENCE FROM THE SUBJECTIVE WELL‐BEING OF 3.3 MILLION AMERICANS

Using two large U.S. surveys, we estimate the effects of unemployment on the subjective well‐being (SWB) of the unemployed and the rest of the population. For the unemployed, the nonpecuniary costs of unemployment are several times as large as those resulting from lower incomes, while the indirect effect at the population level is 15 times as large. For those who are still employed, a one percentage point increase in local unemployment has an impact on well‐being roughly equivalent to a 4% decline in household income. We also find evidence indicating that job security is an important channel for the indirect effects of unemployment. (JEL E24, H23, J64, J68)     

DO NEWLY RETIRED WORKERS IN THE UNITED STATES HAVE SUFFICIENT RESOURCES TO MAINTAIN WELL‐BEING?

A current policy issue is the extent to which savings are sufficient to sustain economic well-being in retirement. We compare annuitized wealth at retirement to three preretirement consumption estimates. About one-half of new retirees have insufficient resources to enable the full maintenance of estimated preretirement consumption in retirement, and about 40% fail to meet the "0.7 of earnings" standard that is used in many studies. Using standards reflecting social (poverty) norms we find a less serious problem. About 5% (25%) of new retirees have insufficient resources to enable an above-poverty (near-poverty) level of living during retirement. (JEL J14, J26 )     

INCOME INEQUALITY: THE IMPLICATIONS OF ECONOMIC STRUCTURE AND SOCIAL CONDITIONS

During the past few decades income inequality has been increasing in the United States and other developed nations, and is having major social consequences. In this study county-level data for the United States was analyzed to test the relative importance of three alternative approaches for explaining increased levels of inequality. These three approaches include economic structure, social conditions, and a model that maintains that both social conditions and inequality are a function of economic structure. The results revealed that social conditions were much more strongly related to inequality than economic structure and little support was found for the theoretical model. The two social conditions most strongly related to inequality included female employment and the percent of female-headed households. Counties with high levels of female employment tended to have low levels of inequality, while counties with high proportions of female-headed households tend to have high levels of inequality. The implications of these findings are discussed.     

BEYOND THE BIBLE AND THE CROSS: A SOCIAL AND CULTURAL ANALYSIS OF CHINESE ELDERS' PARTICIPATION IN CHRISTIAN CONGREGATIONS IN THE UNITED STATES

Mainland Chinese elders constitute a unique group in popular Christian participation and conversion. This work aims to explore the social contexts and cultural facets of Mainland Chinese elders' Christian practice in the United States. Based on face-to-face, in-depth interviews with 20 Mainland Chinese elders as well as participant observation at selected congregational settings, this study suggests that the existing theories on aging and religion as well as religious practice among immigrants are inadequate to explain Chinese elderly immigrants' participation in Christian congregations in the U.S. Instead, social isolation and lack of social support system resulting from immigration and aging process serve as the major drive for the elders to pursue social and cultural recognition from Chinese Christian gatherings. Besides religious services, social service functions of churches and opportunities for fellowship are other factors that explain Chinese elders' church involvement. In conclusion, we argue that social and cultural services are needed to particularly assist Chinese seniors to adjust and adapt to their elderly lives in the host country.     

THE MARITAL AND FAMILY THERAPY EXAMINATION PROGRAM: A SURVEY OF PARTICIPANTS

Participants in the Examination in Marital and Family Therapy between November 1994 and May 1996 were surveyed to ascertain who took the examination, how they prepared for it, whether they thought that it was fair, and how these variables related to scores. Two-thirds of the respondents were female. Most were taking the examination for the first time, were relatively young, were Caucasian, and spoke English as their primary language. They primarily practiced marital and family therapy and had completed master's level university programs in marital and family therapy, counseling, and psychology. Most were sitting for the examination relatively soon after completing their training in marital and family therapy. Individual study was the preparation method of choice for half of the sample. Demographic variables had a modest but ambiguous effect on test score. Educational background had none. However, a relatively short latency between graduation and examination was related to a higher score, as was the use of multiple preparation procedures. With regard to fairness, the participants largely agreed that the examination was moderately difficult, but that the problems were realistic and they had enough time to complete the test.     

FEDERAL TRANSFER PAYMENTS IN AMERICA: VETERANS' PENSIONS AND THE RISE OF SOCIAL SECURITY

This paper examines the determinants of the adoption of the veterans' pension program and how it served as a prototype for the creation and administration of the federal welfare system in the United States. We provide statistical evidence in the form of an analysis of votes in the House of Representatives that state-based special interests which had supported the ongoing liberalization of the veterans' pension program provided significant support for the adoption of the Social Security Act of 1935. There is clear evidence the social security system was not adopted as a simple extension of state old-age pension programs.     

DEPRECIATION IN PRODUCTION ANALYSIS AND IN INCOME AND WEALTH ACCOUNTS: RESOLUTION OF AN OLD DEBATE

In this article, I propose a resolution for the long-standing controversy over depreciation. I develop, from capital theory, income and wealth accounting capital concepts and compare them with those from production analysis and productivity measurement. I conclude that depreciation in economic accounts is exactly the same measurement as in production analysis. As for empirical implications, market-based measures of depreciation are appropriate for economic accounts, provided they are appropriate empirical measures of economic depreciation.     

AN ANALYSIS OF EARNINGS PATTERNS FOR CHINESE, JAPANESE, AND NON-HISPANIC WHITE MALES IN THE UNITED STATES

This article examines simultaneously three theoretical explanations—assimilation, human capital, and discrimination—on the earnings attainment process of Chines, Japanese, and non-Hispanic white males in the United States. The analyses are conducted by level of education, by state of residence, and by nativety. We first apply the earnings determination model separately for each of the racial/ethnic groups to examine if earnings patterns are similarly explaned by assimilation and human capital measures. We then combine the three groups to see if ethnic differences remain after the effects of individual characteristics are controlled for. Our findings, based on results from separate regression analyses, show few intergroup differences, except for foreign-born Japanese. Regardless of race, earnings are generally improved by assimilation, human capital, and favorable structural factors, as expected by both the assimilation and the human capital theories. However, results from some of our paired-group comparisons do not indicate a parity in earnings between the two Asian groups and non-Hispanic white group. In particular, U.S. -born Chinese and Japanese in California, with or without college degrees, U.S.- born Japanese with college degrees in Hawaii, and foreign-born Chinese, regardless of college education or state of residence, experience significant earnings disadvantages relative to their white counterparts with identical credentials. The finding that U.S. -born Chinese and Japanese lag behind their equally qualified white counterparts in earnings attainment suggests an existing effect of racial discrimination.     

IMPLICATION ANALYSIS: A PRAGMATIC PROPOSAL FOR LINKING THEORY AND DATA IN THE SOCIAL SCIENCES

Sociology and other social sciences struggle to emulate a model of scientific evidence that is often inappropriate. Not only do social researchers encounter special limits, but they are also handicapped by a distorted and idealized picture of practices in the hard sciences. Ironically, while often obliged to use data of lower quality, sociology employs standards for evaluating a theory that are not attained in the hard sciences. After a brief review of these obstacles, we describe a set of procedures for using empirical data to rigorously evaluate theories and hypotheses without resorting to the mimicking of hard science. The interaction between theory and evidence normally involves deriving implications from the theory (usually referred to as hypotheses) and then ascertaining how closely the empirical evidence meets these implications. The appropriateness of the implications is a key factor in the entire operation, linking as they do the data and the theory. The evaluation of a theory is no better than the theory's implications (as generated by the investigator) coupled with the quality and appropriateness of the evidence. It is our impression, however, that because this step is insufficiently addressed, there are unnecessary problems in the evaluation of theories. We use the term Implication Analysis to describe our efforts to review and improve current procedures.     

HISTORY DEPENDENCE AND THE FORMATION OF SOCIAL PREFERENCES: AN EXPERIMENTAL STUDY

We study the minimal contributing set (MCS) game, a three‐person sequential step‐level public goods game. The behavior of critical third players changes with experience in this game even though they face no strategic or payoff uncertainty. We explore why these changes occur by manipulating subjects' experience in the first half of the experiment. The treatments give subjects very different initial experiences, but all treatments move subjects' choices toward experienced subjects' play in the control sessions. Long‐run play is indistinguishable across treatments. Our results are more consistent with the “discovered preferences” hypothesis ( Plott 1996 ) than either the “constructed preference” or “reference point” hypotheses. (JEL H41, C72, C92)     

THE DIFFUSION OF MEDICAL TECHNOLOGY: SOCIAL NETWORK ANALYSIS AND POLICY RESEARCH

The purpose of this article is to demonstrate how social network analysis can be used to provide information for policy decisions pertaining to physicians' adoption and utilization of new medical technology. Interviews and hospital records were used to obtain data on refenals, consultations, discussions, and on-call coverage; utilization of a computer-based hospital information system; and personal and practice characteristics from 24 physicians who belong to a private group practice. The results of a block-model analysis suggest that the physician's relative position in the network is an important determinant of his/her participation in the diffusion process. A number of policy implications related to the introduction of new medical technology into practice settings are discussed.     

ON THE SOCIAL DIMENSION OF TIME AND RISK PREFERENCES: AN EXPERIMENTAL STUDY

When explaining risk taking, intertemporal allocation, and distributing behavior, economists rely on risk, time, and other-regarding preferences but offer no guidance on how these three crucial aspects are interrelated. We report on an experiment exploring such interrelation. For this sake, we compare evaluations of several prospects, each of which allocates certain or risky and immediate or delayed payoffs to the actor and to another participant. We find that individuals are self-oriented as to social allocation of risk and delay and other-regarding with respect to expected payoffs . ( JEL C91, D63, D81)     

GUNS AND OIL: AN ANALYSIS OF CONVENTIONAL WEAPONS TRADE IN THE POST‐COLD WAR ERA

This paper analyzes the global conventional weapons trade between 1989 and 1999. We postulate that a key reason for the huge transfer of weapons to the Persian Gulf region is the enormous value of the oil wealth there along with the dependence of Western economies on access to the relatively cheap and steady supply of crude oil. We find a strong, positive, and robust empirical association between arms trade and crude oil trade and explain it as the result of a target price band arrangement that was responsible for the remarkably stable crude oil prices during our study period. (JEL F10, F59, Q38)     

AN EGALITARIAN SYSTEM BREEDS GENEROSITY: THE IMPACT OF REDISTRIBUTION PROCEDURES ON PRO‐SOCIAL BEHAVIOR

In a meritocratic system, people are compensated on the basis of their individual ability, whereas in an egalitarian system people are equally compensated. Essentially, in the latter system high performers are taxed and subsidize underperformers. Would differences in income redistribution procedures affect people's pro‐social behavior? In experiments, we found that people are more generous toward strangers in an egalitarian treatment than in a meritocratic treatment. Interestingly, being taxed does not reduce the generosity of high performers, whereas being subsidized significantly increases the generosity of low performers. (JEL C91, D63, D64)     

POLITICAL ECONOMY AND THE SOCIAL MARGINAL COST OF PUBLIC FUNDS: THE CASE OF THE MELTZER‐RICHARD ECONOMY

In previous studies on the social marginal cost of public funds (SMCF), the existing tax system has been assumed to be either arbitrary or optimal. This note explores another possibility: the existing tax system itself represents a political equilibrium. Our exploration proceeds in Meltzer and Richard’s (1981) political economy of redistributive taxation. An interesting feature of our finding is that the degree of income inequality as measured by the ratio of mean to median income can play an important role in estimating the SMCF and judging whether the level of redistribution is excessive or inadequate. (JEL D61, D72, H21)     

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.