IS THE PRICE ELASTICITY OF MONEY DEMAND ALWAYS UNITY?

Including both monetary gold and nonmonetary gold in a standard money‐in‐utility model, we establish a presumption that the price elasticity of money demand should be less than 1 under commodity standards. Applying cointegration methods to data of the world, the United Kingdom, and the United States, we find support for the new theory. (JEL E41, E42)     

Individualized Marriage and the Integration of Resources

In individualized marriages, spouses maintain independence in their relationship. In individualized marriages, do married couples manage their money in pooled accounts or do they keep separate accounts? We answer this question with the 2002 International Social Survey Programme (N = 18,587;31 country contexts) and examine how variation in the individualization of marriage is related to variation in resource integration within marriage. We make two contributions. First, we found that individualization matters. When couples understood and practiced individualized marriage, they were more likely to keep their money separate. The presence of individualized approaches to marriage and individualized alternatives to marriage within a country were also related to a higher likelihood of couples keeping money separate. Second, we found that integrating resources remained a constitutive part of marriage. Despite trends toward individualization and growing alternatives to marriage, most married couples continued to pool their money.     

Gift exchange or <Emphasis Type="Italic">quid pro quo</Emphasis>? Temporality,ambiguity, and stigma in interactions between pedestrians and service-providing panhandlers

Based on ethnographic fieldwork with panhandlers who provide services while asking for money, informal interviews with pedestrians who have interacted with them, and formal interviews with twenty people who regularly interact with panhandlers, this article unpacks the relationship between temporality and ambiguity of meaning in exchange. In line with previous research, I find that providing a service while asking for money allows panhandlers to manage stigma by recasting their relationship with pedestrians who give as a market exchange. More surprisingly, I find that this kind of recasting makes giving less compelling for the pedestrians in fleeting encounters with panhandlers: they resist service provision in fleeting encounters with panhandlers on the grounds that the exchange is experienced as a coldly rational quid pro quo. In contrast, pedestrians who have long-term relationships with panhandlers experience the interaction as a gift exchange and the service as an expression of gratitude and subservience. The development of an open-ended temporal horizon and of a cycle of exchange, I argue, allows the service and the money given to operate as boundary objects, enabling panhandlers and pedestrians to attach different meanings to the exchange of money for services. This emergent ambiguity allows them to carry out interaction and exchange successfully. Contrary to models of interaction and everyday economic transactions that frame shared definitions of the situation as necessary for successful and repeated interactions, I find that ambiguity and polysemy may be productive and sustaining in interactions between participants from distinct social worlds.     

ECONOMIES OF SCALE IN BANKING,INDETERMINACY, AND MONETARY POLICY

This paper investigates economies of scale (ES) in financial intermediation as a source of equilibrium indeterminacy. Financial intermediation is embedded into a standard flexible‐price monetary model, and provides deposits (inside money) that substitute with currency to purchase consumption. The results indicate that equilibrium indeterminacy does not depend on a large degree of ES in intermediation nor a large intermediation sector, but on monetary policy and the determination of nominal interest rates. Monetary policies not targeting nominal rates allow for indeterminacy to arise for any positive degree of ES, while policies targeting nominal rates eliminate indeterminacy for all degrees of ES. (JEL C62, E44, E52)     

The Association of Couples’ Relationship Status and Quality With Breastfeeding Initiation

Using data from the Fragile Families and Child Wellbeing Survey (N= 3,567), we examine the links between relationship status, relationship quality, and race and ethnicity in breastfeeding initiation. We consider four relationship types: married, cohabiting, romantically involved but not cohabiting (termed visiting), and nonromantically involved mothers. We find that even after adjusting for a wide range of sociodemographic factors, married mothers were more likely to breastfeed than unmarried mothers and that racial and ethnic differences in breastfeeding do not result from differences in marriage rates. Among unwed mothers, paternal provision of money or other assistance during pregnancy decreases the likelihood of breastfeeding. We conclude that relationship status, above and beyond demographic characteristics, is an important correlate of breastfeeding.     

ACROSS TIME AND REGIMES: 212 YEARS OF THE US‐UK REAL EXCHANGE RATE

The behavior of the US‐UK real exchange rate over the period 1794–2005 is examined. This series includes five intervals of floating nominal exchange rates and four fixed exchange rate regime periods. A consistent pattern of higher real exchange rate volatility under floating nominal rates is shown. Over time, real exchange rate movements have increasingly been driven by movements in the nominal exchange rate rather than relative prices. The persistence of the real exchange rate has been considerably higher in the postwar period. (JEL F31, N20)     

MONETARY POLICY AND ENDOWMENT RISK IN A LIMITED PARTICIPATION MODEL

A limited participation model is constructed to study the risk‐sharing role of monetary policy. A fraction of households exchange money for interest‐bearing government nominal bonds in the asset market and the government injects money through open market operations. In equilibrium, money is nonneutral and monetary policy redistributes consumption across households. Without idiosyncratic endowment risk, monetary policy becomes a perfect risk‐sharing tool, but with idiosyncratic endowment risk, it is not. The Friedman rule is not optimal in general. (JEL E4, E5)     

Remittances,Transnational Dahiras and Governance in Senegal

The potential role of transnational organisations in fostering effective governance goes unexplored despite the increasing positive role that these organisations are playing today. In Senegal, a whole range of non‐state actors have always played a substantial socio‐economic role, even before the rise of the post‐colonial state. The Murid brotherhood can be regarded as part of this category of customary non‐state actors. In the 1980s, young Murids started to organize themselves in what can be viewed as self‐help community‐based organisations whose functions included the provision of social safety nets to their adherents. By the late 1980s, the scope of these youth organisations, or dahiras, expanded beyond the national boundaries. Mention of these dahiras in the vast development literature has so far been confined to the socio‐economic importance of the money they remit. This paper offers to transcend this focus on financial remittances, to explore the potential political role of international dahiras in their home country. By playing the role of alternative providers of social services, dahiras have propelled themselves to a position of legitimate non‐state actors with political clout. Today, some of them are starting to hold government to account for their actions. Their political power is not only derived from their affiliation with customary centres of authority, but it is also the resultant of their increased financial autonomy. Because transnational dahira interventions in Senegal are mostly associated with the role of remittances, their relations with the state are analysed through the lens of revenue generation and other processes of state formation such as internal bargaining between the state and societal forces. The paper is an examination of the potential role of transnational dahiras in demands for responsive governance. Its analytical orientation is placed within the theoretical premises of the “drivers of change” approach, fiscal sociology of state making and governance.     

MONEY,OUTPUT, AND INFLATION IN THE LONGER TERM: MAJOR INDUSTRIAL COUNTRIES, 1880–2001

We study how fluctuations in money growth correlate with fluctuations in real output growth and inflation. Using band‐pass filters, we extract cycles from each time series that last 2–8 (business cycles) and 8–40 (longer‐term cycles) years. We employ annual data, 1880–2001 without gaps, for 11 industrial countries. Fluctuations in money growth do not play a systematic role at business cycle frequencies. However, money growth leads or affects contemporaneously inflation, but not real output growth, in the longer run. Also, formal break tests indicate no structural changes for the longer‐term money growth and inflation relationship, despite changes in policy regimes.(JEL E3)     

What was Bitcoin,what will it be? The techno-economic imaginaries of a new money technology

In its first decade, Bitcoin has not proven to be a practical money form for most circumstances, but it has become a staging ground for debate around the cultural role of money in society. This debate is poised between two related but ultimately incompatible techno-economic imaginaries: infrastructural mutualism and digital metallism. Each offers a theory not just of money, but also of relations, identities, and the larger imaginaries we call ‘society’ and ‘the economy’. In particular, they offer distinct visions of what it means to be a ‘peer’ in a peer-to-peer money system, and perhaps, a peer-to-peer society. This article traces the pre-history of Bitcoin, as well as more recent developments, to inquire about its future, as well as the future of money more broadly.     

Service Provision for Men with Eating Issues in Australia: An Analysis of Organisations', Practitioners', and Men's Experiences

Abstract

Research was undertaken to explore issues surrounding service provision for men with eating issues in Australia. Qualitative and quantitative data were gathered from key stakeholders—organisations that provide treatment (n=15), practitioners that have worked with men with eating issues (n=10), and individual men with eating issues (n=5). Four key areas were explored: rates of access to services, the expression and development of eating issues in men, factors inhibiting or facilitating the recovery process, and recommendations to improve service provision. Results highlighted the need for increased awareness about men's eating issues within society generally, but for health professionals specifically, the need for better recognition of the expression of eating issues in men, and the expansion of existing services to be more “male friendly”. It is anticipated that service providers will benefit from these findings by identifying ways to reduce barriers and encourage help-seeking behaviour in men. Future research should seek to replicate and expand these findings using a larger sample size.     

Parenthood,Gender and Work‐Family Time in the United States,Australia, Italy,France, and Denmark

Research has associated parenthood with greater daily time commitments for fathers and mothers than for childless men and women, and with deeper gendered division of labor in households. How do these outcomes vary across countries with different average employment hours, family and social policies, and cultural attitudes to family care provision? Using nationally representative time‐use data from the United States, Australia, Italy, France, and Denmark (N = 5,337), we compare the paid and unpaid work of childless partnered adults and parents of young children in each country. Couples were matched (except for the United States). We found parents have higher, less gender‐equal workloads than nonparents in all five countries, but overall time commitments and the difference by parenthood status were most pronounced in the United States and Australia.     

THE MORAL COSTS OF NASTINESS

We introduce two variants of the one‐shot joy‐of‐destruction minigame (mini‐JOD). Two players are endowed with the same amount of money. They simultaneously decide whether or not to reduce the other player's payoff at an own cost. In one treatment there was a probability that nature would destroy the opponent's money anyway. We test whether this feature reduces the moral costs of nastiness, and find that destruction rates rise significantly, despite the absence of strategic reasons. (JEL C72, C91, D03)     

Sexual Frequency and the Stability of Marital and Cohabiting Unions

Prior research found that lower sexual frequency and satisfaction were associated with higher rates of divorce, but little research had examined the role of sexual activity in the dissolution of cohabiting unions. We drew upon social exchange theory to hypothesize why sexual frequency is more important in cohabitation: (a) cohabitors' lower costs of finding sexual alternatives, (b) cohabitors' lower barriers to ending the relationship in the form of union‐specific economic and noneconomic capital, and (c) cohabitors' higher expectations for sexual activity. Using the National Survey of Families and Households (N = 5,902), we examined the relationship between sexual frequency and union dissolution. Results indicated that low sexual frequency was associated with significantly higher rates of union dissolution among cohabitors than married couples.     

Short‐Term Reciprocity in Late Parent‐Child Relationships

Long‐term concepts of parent‐child reciprocity assume that the amount of support given and received is only balanced in a generalized fashion over the life course. We argue that reciprocity in parent‐child relationships also operates in the short term. Our analysis of short‐term reciprocity focuses on concurrent exchange in its main upward and downward currencies, time and money. Fixed‐effects models with data from SHARE (N = 8,816 dyads) revealed that within a family, parents gave financial transfers to those children who supported them with time transfers of help and care. Reciprocal patterns emerged most clearly if parents were highly dependent, received intense support, and had sufficient financial opportunities to reciprocate. We conclude that short‐term reciprocity eases the burden of late parent‐child relationships.     

Giving to the Good and the Needy: Parental Support of Grown Children

Parents may provide many types of support to their grown children. Parents age 40 to 60 (N = 633) reported the support they exchange with each child over age 18 (N = 1,384). Mothers and fathers differentiated among children within families, but provided emotional, financial, and practical help on average every few weeks to each child. Offspring received most assistance when they (a) had greater needs (because of problems or younger age) or (b) were perceived as more successful. Parents received more from high achieving offspring. Findings support contingency theory; parents give more material and financial support to children in need. Motivation to enhance the self or to assure support later in life may explain support to high achieving offspring.     

The Confederate Constitution, Tariffs, and the Laffer Relationship

This article offers an example of a national constitution, that of the Confederate States of America, which effectively constrained its fiscal authorities to tax rates on the lower end of the Laffer relationship. The taxes were Confederate import tariffs. Drawing on primary sources, the paper documents the role that this de facto capping of tariff rates played in the history of the drafting of the Confederate Constitution. That the Laffer relationship found constitutional expression for an important tax suggests that the "tariff" might have played a more significant role in the North–South conflict than is currently acknowledged.     

Relationship Transitions Among Older Cohabitors: The Role of Health,Wealth, and Family Ties

This study explored how health, wealth, and family ties shape older cohabitors' chances of marrying or separating. Drawing on rational choice and exchange theories, the author argues these factors affect women and men differently because the rewards, alternatives, and barriers of later‐life union formation differ by gender. The study used panel data from the 1998–2006 Health and Retirement Study and a sample of cohabitors 50 and older (N = 1,136). For older female cohabitors, large families and entitlement income lower the risk of marrying, whereas close social networks raise the risk of separating. Moreover, health and wealth have an interactive relationship in that the risk of marrying is highest for unhealthy male cohabitors when they are very wealthy but is highest for the poorest female cohabitors when they are in excellent health. Older men may be exchanging economic resources for caregiving, and cohabitation may be an adaptive response to the gendered costs and barriers of later‐life union formation.     

CAPITAL CONTROLS,MONETARY POLICY,AND BALANCE SHEETS IN A SMALL OPEN ECONOMY

We develop a small open economy, New Keynesian model that incorporates a financial accelerator in combination with liability dollarization. Applying a Ramsey‐type analysis, we compare the welfare implications of an optimal monetary policy under flexible exchange rates and an optimal capital control policy under fixed exchange rates. In an economy without the financial accelerator, an optimal monetary policy under flexible exchange rates is superior to an optimal capital control policy under fixed exchange rates. In contrast, in an economy with the financial accelerator, an optimal capital control under fixed exchange rates yields higher welfare than an optimal monetary policy under flexible exchange rates.(JEL E44, E52, F32, F38, F41)     

PAY SECRECY AND EFFORT PROVISION

Pay secrecy is often justified on the ground of concerns about the detrimental consequences of intra‐firm pay comparisons for work morale and performance. Surprisingly, however, there is only limited empirical evidence that the availability of pay comparison information is detrimental for effort provision. In this paper, I study pay comparison effects in a gift‐exchange game laboratory experiment where an employer is matched with two symmetric employees. I compare effort choices made by employees in a “pay secrecy” treatment and in two “public wages” treatments where employees are informed of the wage paid to the co‐worker. In one “public wages” treatment the employer can choose both wages she pays to the employees, while in the other treatment the wage paid to one employee is regulated exogenously. I show that pay disclosure can be detrimental for effort provision if employees are treated unequally. (JEL A13, C92, J31)