RESEARCH UNIVERSITIES AND REGIONAL HIGH‐TECH FIRM START‐UP AND EXIT

If localized knowledge spillovers are present in the university setting, higher rates of both start‐up and/or survival would be observed in areas that are geographically proximate to the university. Using a detailed industry data set for Texas for 1999:3–2005:2, we analyze start‐up and exit rates for high‐tech firms. Based on a Poisson quasi‐maximum likelihood estimation, we find evidence that the level of R&D and proximity of a research institution positively affects the likelihood of technology start‐ups. However, using both the Cox proportional hazards model and Kaplan–Meier approach, our results suggest that geographic proximity to knowledge centers does not reduce hazard rates. (JEL R12, R53, O18)     

SMALL‐ AND MEDIUM‐SIZED ENTERPRISE FINANCING AND SECURITIZATION: FIRM‐LEVEL EVIDENCE FROM THE EURO AREA

This paper analyzes the impact of securitization on access to finance for small and medium‐sized enterprises (SMEs) in the euro area. Using firm‐level survey data on SME financing conditions, we show that an increase in securitization issuance reduces the probability of SMEs facing credit constraints and decreases the costs of bank financing for nonconstrained firms. Our results reveal that in addition to the volume of securitization, its type and quality matter for credit extension to SMEs. The paper thus provides empirical support for recent initiatives to revive securitization in Europe and for effective monetary policy transmission in the euro area. (JEL D22, E44, E51, E58, G21)     

SELF-INTEREST AND PUBLIC OPINION TOWARD SMOKING POLICIES; A REPLICATION AND EXTENSION

Numerous studies report that self-interest has a non significantinfluence upon various political and social attitudes. In contrast,a recent article by Green and Gerken (1989) reports a Californiastudy showing that cigarette smokers are significantly moreopposed than nonsmokers to public smoking restrictions and tobaccosales tax increases. The present article replicates and extendsthis analysis with data from two different states—Illinois(in 1984, N=458)—and North Carolina (in 1985, N=488)—andusing analysis techniques that differ from and expand upon theCalifornia study. Despite these methodological differ ences,self-interest is again shown to have a significant influenceon opinions concerning public smoking restrictions and taxation,as well as on several additional issues relating to smokingand tobacco.     

AFFIRMATIVE ACTION AND THE UTILIZATION OF MINORITY‐ AND WOMEN‐OWNED BUSINESSES IN HIGHWAY PROCUREMENT

The Federal Highway Administration (FHWA) mandates states' use of affirmative action when awarding federally funded road construction projects. Here I document the effectiveness of this program in increasing purchases from disadvantaged business enterprises (DBEs). Higher goals for the utilization of DBEs, both across states over time and across projects within California, is associated with a greater share of contract dollars awarded to DBEs. This effect is concentrated among minority‐owned firms and is stronger when goals are more likely to be binding and in states with an apparently stricter enforcement regime. (JEL J15, H57)     

RENT‐SEEKING AND CAPITAL ACCUMULATION

A general model incorporating rent‐seeking activities in the standard neoclassical model of capital accumulation is presented. The welfare of the representative agent is negatively affected by the efficiency of rent‐seeking activities. Although intuitive, this result is not obvious because long‐run income can be positively affected by more efficient rent‐seeking activities. The model is used to provide explanations for some recent experiences in developing countries, including the relative poor performance of economies that experience a move to a more decentralized system and the observed path of total factor productivity (TFP) in countries like Ireland and Venezuela. (JEL D23, D74, O40, O41, O47)     

LIQUIDITY RISK AND TIME‐VARYING CORRELATION BETWEEN EQUITY AND CURRENCY RETURNS

Using the data of 20 major Organization for Economic Co‐operation and Development countries over time, this article documents new evidence on real equity and real currency prices: higher real returns in the home equity market relative to its foreign counterparts are generally associated with real home currency depreciation at monthly frequency, but this negative correlation breaks down or even reverses during times of relatively higher aggregate economic uncertainty or volatility. This article also argues that a long‐run risks‐type model with time‐varying liquidity risk in stock markets can provide one plausible explanation for the time‐varying correlation structure. (JEL E43, F31, G12, G15)     

THE CREDIT‐CHANNEL TRANSMISSION MECHANISM AND THE NONLINEAR GROWTH AND WELFARE EFFECTS OF INFLATION AND TAXES

With the credit‐channel effect driven by the central bank's open market operations, this paper's model easily gives rise to the nonlinear inflation‐growth nexus, which is evidenced by a number of cross‐country empirical studies. The threshold level of the inflation rate is found to be lower when tax rates are higher. The presence of the credit‐channel effect also provides the rationale for setting positive (and smaller than 1) tax rates on consumption, labor income, and capital income. The optimal tax rates rise as the inflation target declines. Under a fiscal policy rule where labor and capital income taxes move proportionally to each other, the optimal capital income tax rate could be higher than the optimal labor income tax rate. Under a sufficiently large central bank balance sheet, the credit‐channel effect will be so weak that inflation and all kinds of taxes are growth and welfare repressing. This provides a rationale for central banks that have implemented quantitative easing policies to shrink their balance sheets. (JEL E58, E62, O42)     

WORKER EFFORT DECISIONS AND EFFICIENT GENDER—SPECIFIC WAGE—TENURE PROFILES

Despite theoretical arguments that predict the opposite, empirical estimates of workers' returns to tenure tend to be greater for female than for male workers. This paper develops an agency model of wage contracts to explain this empirical finding. If male and female workers differ only in the expected length of their working lives, efficient wage-tenure profiles are steeper for women than men as a direct result of their shorter working life. This result implies that returns to tenure for women and men will become comparable as women's and men's labor force attachments converge.     

INTERNATIONAL TRADE AND LABOR‐MARKET DISCRIMINATION

Discrimination reduces the matching probability and output in the skill‐intensive differentiated‐product sector so that discrimination‐induced comparative advantage may overshadow technological comparative advantage in determining the pattern of trade. Trade liberalization generates a decrease in the skilled‐worker wage gap in the country that is an exporter of goods from the simple sector but increases it in the country that is a net exporter of differentiated products. Trade liberalization has an opposite effect on firms. In the country that is an exporter of simple goods, trade liberalization reduces the profits of the nondiscriminatory firms by more than those of the discriminatory firms. (JEL F16, F66, J71)     

NEURO-LINGUISTIC PROGRAMMING™ AND FAMILY THERAPY*

A brief introduction to Neuro-Linguistic Programming? (NLP?) as taught by the developers of NLP, Richard handler, John Grinder and their associates, is presented. This is followed by case examples. The cases illustrate what the authors believe are some of the substantive gains which NLP techniques have provided in their own and others' work with couples and families. NLP's major contributions involve understanding new models of human experience. This paper, however, is focused principally on a consideration of useful technology. The intent is to share from over three years' experiences certain fundamental and consistent benefits derived from the addition of NLP to clinical practice.     

FLEXIBLE CONTRACTS AND SUBJECTIVE WELL‐BEING

Theory suggests that when workers choose between permanent and flexible contracts, their utility should tend to equalize across contract types. New estimates of job satisfaction show the critical role played by unmeasured worker heterogeneity. They reveal that flexible contracts are a strong negative determinant of satisfaction with job security but are often a positive determinant of other dimensions of job satisfaction. As a consequence, flexible contracts have either a weak negative influence or no influence on overall job satisfaction. Moreover, flexible contracts generally have no impact on overall life satisfaction of the employed. These results appear broadly consistent with the presence of equalizing differences. (JEL J28, J41)     

DESPAIR, DISTRUST AND DISSATISFACTION AMONG BLACKS AND WOMEN, 1973–1987

Discontent among American blacks and women is examined with indicators of the anomia of despair and distrust, and of job and financial dissatisfaction. Nine years of General Social Survey data covering 1973 through 1987 show that blacks' discontent exceeds whites' in most instances examined; and black women more frequently show significantly higher discontent than other race/gender groups. Also, blacks' discontent more often exceeds whites' among persons high in SES than among those low in SES. But gender main effects are almost nonexistent; and white women almost never show more discontent than other race/gender groups. This unexpected finding may be related to white women's greater identification with race than gender and their perception of general but not personal discrimination. Failure of the gender/discontent relationships to differ with the American president in office may have a similar explanation. But, as expected, racial differences in discontent tended to be higher during the Nixon/Ford and Reagan administrations than Carter's.     

SECULARIZATION AND LONG‐RUN ECONOMIC GROWTH

This paper integrates a simple theory of identity choice into a framework of endogenous economic growth to explain how secularization can be both cause and consequence of economic development. A secular identity allows an individual to derive more pleasure from consumption than religious individuals, leading secular individuals to work harder and to save more in order to experience this pleasure from consumption. These activities are conducive to economic growth. Higher income makes consumption more affordable and increases the appeal of a secular identity for the next generation. An extension of the basic model investigates the Protestant Reformation as an intermediate stage during the take‐off to growth. Another extension introduces intergenerationally dependent religious preferences and demonstrates how a social multiplier amplifies the speed of secularization. (JEL N30, O10, O40, Z12, Z13)     

STEREOTYPE THREAT AND THE STUDENT‐ATHLETE

Achievement gaps may reflect the cognitive impairment thought to occur in evaluative settings (e.g., classrooms) where a stereotyped identity is salient (i.e., stereotype threat). This study presents an economic model of stereotype threat that reconciles prior evidence on how student effort and performance are influenced by this social‐identity phenomenon. This study also presents empirical evidence from a framed field experiment in which students at a selective college were randomly assigned to a treatment that primed their awareness of a negatively stereotyped identity (i.e., student‐athlete). This social‐identity manipulation reduced the test‐score performance of athletes relative to non‐athletes by 12%. These negative performance effects were concentrated among male student‐athletes who also responded to the social‐identity manipulation by attempting to answer more questions. (JEL I2, C9, D0)     

MY TICKET,MY "SELF": LOTTERY TICKET NUMBER SELECTION AND THE COMMODIFICATION AND EXTENSION OF THE SELF

According to the research literature, college‐educated women provide the most consistent support for nontraditional sex‐role attitudes. Conversely, working‐class males are supposedly the most ambivalent toward changes in gender roles. The present study involves a direct comparison of the attitudes of two different samples: one employed in blue‐collar occupations and the other enrolled in a small, private university. Some of the responses to an eleven‐item scale of sex‐role attitudes are consistent with the results of previous research. For example, women are generally more nontraditional than men. However, most surprising is the finding that male college students are the most conservative subgroup included in this study. By the senior year of college, students have become more liberal, but the “gender gap” persists. Parents’ educational status and fathers’ occupational status are statistically significant variables for female but not for male students. The authors conclude that the uncertain but dynamic relationship between socioeconomic status and sex‐role ideology will require further clarification and specification.     

MORALITY AND WORK–FAMILY CONFLICT IN THE LIVES OF POOR AND LOW-INCOME WOMEN

Contemporary understandings of work and family are largely based on middle-class women's experience, whereas poverty and welfare researchers focus on the economic struggles of single female-headed families. This qualitative study examines the cultural and moral forces underlying the tension between paid work and family responsibilities through the experience of poor and low-income women. Interview data reveal that as expected, the conditions of poverty and welfare shape work and family decisions. Yet, choices about work and family entail moral and emotional commitments defined through powerful gendered cultural schemas. Providing financially for children reflects a strong work ethic and moral worth corresponding to a masculine model of individual responsibility privileging self-sufficiency and independence. This is challenged by a shared moral imperative that mother's primary responsibility is the care of children. This examination is important for researchers in understanding the moral and emotional salience of gender in shaping the work and family lives of poor and low-income women.     

"SECRET BALLOTS" AND SELF-REPORTS IN AN EXIT-POLL EXPERIMENT

A controlled exit-poll experiment on Election Day (November3, 1992) shows that refusals to answer questions and other evasiveforms of responding were significantly lower when respondentswere given a self-administered "secret-ballot" questionnairethan when they were interviewed face-to-face. While there weresome suggestive interactions of this mode-of-data collectioneffect with age and sex, and with the partisan atmosphere ofthe precinct in which the interviews were conducted, they wereborderline in significance, inconsistent in pattern, or difficuitto interpret. More important, comparisons with official electionreturns (the truth) indicated that the secret-ballot techniquewas more accurate than were face-to-face interviews in estimatingthe final outcome on the most socially sensitive of three self-reportedvotes: a vote for or against a tax levy for elderly services.Using a genuine secret ballot in the tradition of the olderGallup preelection polls can thus increase the validity of self-reportsin exit polls today.     

ECONOMICS COURSEWORK AND LONG‐TERM BEHAVIOR AND EXPERIENCES OF COLLEGE GRADUATES IN LABOR MARKETS AND PERSONAL FINANCE

Using survey data from over 2,000 students who attended one of four large public universities in 1976, 1986, or 1996, we investigate the relationship between taking more coursework in economics, or choosing economics as an undergraduate major, and a wide range of later decisions and outcomes in labor markets and personal finance, many of which have not been analyzed in earlier research. Generally, economics coursework and majoring in economics are significantly related to higher levels of earnings, home equity, and savings. They are also associated with working more hours and negatively related to completing graduate degrees (except the MBA). Among graduates with positive savings, those with more economics coursework invest more in individual stocks and money market accounts, and are more likely to have employer‐provided life insurance. They have fewer credit cards, which are more often paid in full each month. Most of these findings also hold for graduates who majored in business, but on average economics majors worked more hours and earned more than business majors, were more likely to have been self‐employed, and expected to retire at an older age. Business majors were more likely to have experienced a layoff, and were even less likely than economics majors to complete graduate degrees (except the MBA). Economics majors expected to save even more than business majors by retirement, and viewed short‐term and precautionary motives for saving as more important. Finally, our results suggest that exposure to economics through course‐taking is more important for later outcomes than actual performance in those courses. (JEL A22, J3, D12)