SELF‐EMPLOYMENT,EFFICIENCY WAGE,AND PUBLIC POLICIES

Empirical evidence suggests that unemployed workers are much more likely to become self‐employed than wage‐employed workers. Also, higher unemployment benefits significantly reduce the rate of self‐employment. This article develops a model of self‐employment which incorporates transitions between unemployment and self‐employment. It integrates two strands of theoretical literature—models of occupational choice and the efficiency wage models. In this model, a higher unemployment benefit reduces the self‐employment rate and the transition rate of unemployed workers to self‐employment, which is consistent with empirical evidence. (JEL J23, J58, J64)     

TESTING FOR EFFICIENCY IN LOTTO MARKETS

State-sponsored lotto games, because they are pari-mutuel and because jackpots with no winner are rolled over into the next drawing, present an excellent opportunity to test for market efficiency. Using data from Massachusetts, Kentucky, and Ohio, we investigate bettors' responses and test for weak-form efficiency. Lotto bets do not have positive net expected returns, thus weak-form efficiency exists. To evaluate strong-form efficiency we utilize the concept of a rational expectations equilibrium. We find that in general lotto bettors' decisions to play generate a level of sales that conform to their original forecasts of expected value.     

EXPLAINING PUBLIC SUPPORT FOR LEGISLATIVE TERM LIMITS

A number of theories have been offered to explain popular supportfor term limits and their passage in states across the country.Using survey data from the 1992 American National Election Studyand several other statewide surveys, this article examines thefollowing explanations for term limits support: dissatisfactionwith Congress and state legislatures, cynicism, self-interest,and ideology. An analysis of these data suggest that term limitssupport is not influenced by a dissatisfaction with legislaturesor particular incumbents or by a specific ideology. Instead,support for term limits is related to cynicism and, to someextent, self-interest.     

PUBLIC MUNIFICENCE FOR PRIVATE BENEFIT: LITURGIES IN CLASSICAL ATHENS

Liturgies or public services became less efficient as a source of state revenue in Classical Athens over the democratic period. This is illustrated in a model in which each citizen, knowing his own wealth and the probability distribution of the visible wealth of others, can engage in costly wealth concealment to improve his chances of avoiding a liturgy. Relative to a wealth tax, liturgies are efficient as long as their performers can acquire sufficient private benefits through public munificence. The observed decline in these benefits over the democratic period reduced or eliminated this relative efficiency.     

AN EFFICIENCY EXPLANATION FOR WHY FIRMS SECOND SOURCE

Firms facing research costs and demand uncertainty may engage in second-sourcing, in which potential suppliers agree to pool production facilities. I show how sellers and buyers both can benefit from the practice. Second-sourcing allows firms to meet a wider range of possible rates of demand and often to supply a given rate of demand at a lower total cost than under non-cooperation. Buyers benefit through a reduced probability of stock-outs and frequently a lower purchase price. Semiconductor industry data are found to be consistent with the paper's predictions.     

AN ECONOMIC ANALYSIS OF STATE SUPPORT FOR HIGHER EDUCATION

There are few practical problems in which the economist has a more direct interest than those relating to the principles on which the expense of the education of children should be divided between the state and the parents.–A lfred M arshall , Principles of Economics     

RELIGION AND SUPPORT FOR DEMOCRACY: A CROSSNATIONAL EXAMINATION

This article examines citizens' support for democracy across forty-six nations. The authors use multilevel modeling and data from the World Values Survey and other sources to assess individuals' support for democracy in light of broader country-level factors as well as individual proclivities toward religion, politics and community. Findings suggest that the predominance of a particular religion in a nation does not influence individuals' views in and of itself. It does, however, matter when individuals' religious beliefs and practices as well as their civic engagement are taken into account. These factors, even in predominantly Muslim countries, appear to foster rather than hinder positive views towards democracy. But individuals seeking a prominent role for religion in government are likely to be substantially less supportive of democracy. Such antidemocratic attitudes appear countered in a citizenry where many are engaged in conventional political activities, have attained higher social statuses and reside in highly globalized states with Protestant or Muslim majorities and without a Communist legacy.     

DIRECT TESTS OF INDIVIDUAL PREFERENCES FOR EFFICIENCY AND EQUITY

Departures from “economic man” behavior in many games in which fairness is a salient characteristic are now well documented in the experimental economics literature. These data have inspired the development of models of social preferences that assume agents have preferences for equity and efficiency as well as their own material payoffs. Empirical failure of the economic man model comes from experiments that provide direct tests of its distinguishing characteristic: indifference to the payoffs of others. This paper reports an experiment that subjects popular social preferences models to the same type of empirical challenge. We report direct tests of the distinguishing characteristics of these models: preference for allocations that have higher efficiency and greater equity. (JEL A12, A13, B49, C70, C91, D63)     

A MEN'S SUPPORT GROUP FOR SIGNIFICANT OTHERS OF RAPE VICTIMS

This article discusses the trauma for rape as experienced by women rape victims and focuses on a men's support group for male-significant-others of women who have been raped. The project describes the various developmental phases through which the male-significant-others of rape victims must pass in order to achieve resolution and the impact of the male's response upon the relationship with the victim.     

THE EFFECT OF QUESTION WORDING ON PUBLIC SUPPORT FOR GOVERNMENT SPENDING

Analyses of question wording experiments on the General SocialSurvey spending items showed consistent wording effects forseveral issues across three years. An examination of types ofwording change indicate that even minor changes can affect responses.However, an examination of interactions with respondent individualdifferences showed no consistent pattern.     

PLURALISTIC IGNORANCE AND WHITE ESTIMATES OF WHITE SUPPORT FOR RACIAL SEGREGATION

This article presents data, taken from a secondary analysisof a national survey, indicating that in 1968 most white Americanadults grossly exaggerated the support among other whites forracial segregation. Several correlates of this pattern of pluralisticignorance—the extent to which the respondents led segregatedlives, their racial attitudes, and their racial values—areexamined. Finally, the relationship between this form of pluralisticignorance and the willingness of these white respondents toendorse racially restricted housing is discussed.     

THE MISSING LINK: POLITICAL ACTIVISTS AND SUPPORT FOR SCHOOL PRAYER

Explanations for the wide gap between strong public supportfor school prayer and lack of support in Congress have focusedon the attributes of the public. Here another important explicandis investigated: the characteristics of political activists.We find that activist opinion more nearly matches congressionalbehavior on school prayer than does public opinion. While manyof the same demographic and religious variables explain supportfor school prayer among activists and the public, ideology appearsto be more important among activists.     

IMPLICATIONS OF IMMIGRATION POLICIES FOR THE U.S. FARM SECTOR AND WORKFORCE

We develop a theoretical model using migration and trade theory to examine the effects of domestic and border enforcement policies on unauthorized workers and the U.S. agricultural sector. The theoretical results show that heightened immigration policies increase the illegal farm wage rate, and reduce the employment of unauthorized farm workers and exports. The empirical analysis show that increased domestic enforcements curtail the number of undocumented farm workers by an average of 8,947 and commodity exports to Mexico by an average of $180 million. The tighter border control curbs illegal farm workers by 8,147 and reduces farm exports by $181 million. (JEL F160)     

QUESTION WORDING AND PUBLIC SUPPORT FOR CONTRA AID, 1983-1986

How does question wording affect the results of polls? How canwe distinguish question wording effects from genuine change?In this analysis, we make use of a series of polls concerningPresident Reagan's policy toward Nicaragua. We identify fivevariations in wording in the survey items that have been usedon this topic, and we find evidence that these are responsiblefor variations in support for the Contras. If the ideologicalnature of the Sandinistas, President Reagan, the amount of moneyto be spent, and/or the role of the Contras are mentioned, orif a balanced question format is employed, the poll resultscan be substantially affected. Once these factors are controlledfor, we can argue that there was a small but statistically significantincrease in support for Reagan's policy over the period 1983–1986.     

THE VANISHING LIQUIDITY EFFECT OF MONEY ON INTEREST: ANALYSIS AND IMPLICATIONS FOR POLICY

This paper seeks to re-examine the effects of money on interest rates. The earlier literature on this topic determined, fairly well, the pattern of response of interest rates to changes in money growth. The notable studies of Cagan (1972), Cagan and Gandolfi (1969), and Gibson (1970) served to establish the professions "stylized pattern" as presented in section I. Section II presents new evidence on the subject and finds that the old empirical generalizations no longer hold. Specifically, the results suggest that the initial liquidity effect of faster money growth is likely to be offset within the month following the monetary policy change. Sections III and IV investigate the reasons for the changing pattern of monetary effects on interest rates and discuss the policy implications of the new pattern.     

INNOVATION: ITS PUBLIC AND PRIVATE ASPECTS AND SOME OF THEIR EMPIRICAL IMPLICATIONS FOR MERGERS

Innovators may have incentives to incur the expense of the search for new knowledge even if others can use the results without contributing to the costs of the search for them. Why? Assume firms choose their actions independently. Assume new knowledge is a free public good: a firm can make the product at lower cost even if it spends nothing on research, if another does the research. The most plausible noncooperative equilibrium in this situation is stochastic: firms will decide what to do on the basis of a random device. The theory determines the probability that the firm spends nothing, or something, on research. In consequence, no firm can be certain that a rival will do the research; no firm can be certain of becoming a free rider. In consequence, there will be no relation on average between returns on research-outlays and size of outlays; but the yield on research always will be positive. Innovation can lead to differences among firms, but these differences should not persist, as firms can gain by eliminating them. In a non-cooperative equilibrium, where firms have different cost conditions, the allocation of output among them is inefficient. Such inefficiency can be eliminated if information about methods of production is sold, say by way of licensing. But royalty receipts are a very small fraction of total revenues, even in research and development intensive industries such as chemicals and scientific instruments. Merger is another avenue of cooperation. The theory which assumes research results are private predicts a positive relation between merger activity and technical change. Empirical evidence for the 1879–1930 inverval supports this prediction.     

PARENTS' AND CHILDREN'S PERCEPTIONS OF A FAMILY SUPPORT INTERVENTION FOR CHILD BEHAVIOURAL PROBLEMS

The aim of this study was to establish the perceptions of children and their parents following a Family Support intervention for child behavioural and related difficulties. One hundred parents and 22 children aged 5–12 years participated in structured interviews, following the intervention. A framework approach to thematic content analysis was used. Themes, categories and subcategories were established. Parents discussed the usefulness of the intervention and the service in relation to therapeutic work (behavioural techniques and advice), support, practical help, and liaison with other agencies. They also identified service gaps. A number of factors were identified as responsible for improvement, both directly arising from and independently of the intervention. Despite their young age, children had good understanding of the interventions and their role in them, and expressed their wish for active involvement. The intervention was underpinned by a solution‐focused therapy model, combined with behavioural techniques. Families' perceptions indicate that they predominantly applied behavioural strategies, while some parents and children generated solutions in other areas of their lives. Family support has an important preventive role and should consist of an integral component of inter‐agency services for children with a broad range of behavioural and emotional difficulties and their families, and have close links with child mental health services.     

FAMILY GOAL RECORDING: AN ADAPTATION OF GOAL ATTAINMENT SCALING FOR ENHANCING FAMILY THERAPY AND ASSESSMENT*

Family Goal Recording is proposed as a systemic approach for measuring change in the presenting concerns of couples and families. This paper describes the procedures for using Family Goal Recording as an outcome measure for family therapy and a device to enhance goal attainment. In addition, the results of an initial study on the reliability and validity of this method are presented.