Social norms, inequality and child labor

This paper theoretically analyzes a situation wherein adults’ decisions on child labor are affected not only by materialistic utility but also by a social norm against child labor. The adult thus faces a tradeoff; on the one hand, household income rises if she sends her child to work. On the other hand, the adult suffers disutility from violating the social norm in so doing. We also suppose that the extent of disutility falls as more other adults have their children work. We then explore how the total amount of child labor in an economy changes as adults’ labor efficiencies rise or become more unequal. Our analysis reveals that a more equal distribution or rises in adults’ labor efficiency help decrease child labor only under certain conditions.     

Being the best or doing the right thing? An investigation of positional,prosocial and conformist preferences in provision of public goods

Based on a simple theoretical framework, we show that when individuals exhibit positional, prosocial or conformist preferences which are endogenous, the end outcomes in terms of private provision of public goods can differ significantly from traditional neo-classical predictions. Indeed, when a given individual selects a specific subset of preferences according to what others do, he/she will contribute positively to the public good provision. We provide anecdotal evidence to support our theoretical analysis by using data from an Internet survey on a sample of French individuals. Analyses of individual responses confirm our theoretical arguments. For instance, we show that relative concerns matter, that is, for several environmental goods, people might prefer polluting more in absolute terms but less than others in society. Moreover, we also test whether people exhibit a social desirability bias and show that they attribute more (less) positional (prosocial) concerns to others in society.     

Der Einfluss von people pattern auf die Präferenz für die Gestaltung innerbetrieblicher Diagramme – eine empirische Studie

This paper proofs the impact of the identity in terms of certain not yet scientifically analysed cognitive filters (people pattern) to graphical and visual preferences of human being. Some items based on a people pattern questionnaire have been extracted in order to build up people pattern profiles that maintain people’s chart-type preference. That approach aims the identity driven prediction of the preferred chart-type, used for special business purposes to ease graphical interaction. This model can be used to include the auditor’s visual preferences already in the design process of business charts.     

Procrastination, prompts, and preferences: Evidence from daily records of self-directed learning activities

This paper presents evidence showing that a libertarian paternalistic intervention having significant but uneven effects on the student procrastination of a coursework assignment. We observe the degree of procrastination in a language course at a Japanese university with individuals’ electronic records of daily activities. With a quasi-experiment that generates variations in the frequency of interventions and the preference of students towards the course, we examine the effects of in-class verbal prompts by an instructor on the timing of task completion. We find that prompts affect behavior, especially when reinforced, but the responsiveness depends on the class preferences and the timing of interventions.     

Subjective measures of risk aversion, fixed costs, and portfolio choice

The paper investigates risk preferences among different types of individuals. We use several different measures of risk preferences, including questions on choices between uncertain income streams suggested by Barsky, Juster, Kimball, and Shapiro (1997) and a number of ad hoc measures. As in [Barsky et al., 1997] and [Arrondel and Calvo-Pardo, 2002], we first analyze individual variation in the risk aversion measures and explain them by background characteristics (both “objective” characteristics and other subjective measures of risk preference). Next we incorporate the measured risk preferences into a household portfolio allocation model, which explains portfolio shares, while accounting for incomplete portfolios and fixed costs. Our results show that a measure based on factor analysis of answers to a number of simple risk preference questions has the most explanatory power. The Barsky et al. (1997) measure has less explanatory power than this “a-theoretical” measure, suggesting that sophisticated measures based on economic theory may exceed the financial capability of respondents. Fixed costs turn out to provide an economically and statistically highly significant explanation for incomplete portfolios.     

On the continuity of ethical social welfare orders on infinite utility streams

In this paper we study the extent to which ethical social welfare orders on infinite utility streams can be continuous. For a class of metrics, we show that ethical preferences can be continuous if and only if the continuity requirement is in terms of a metric which satisfies a simplex condition. This condition requires that the distance from the origin to the unit simplex in the space of utility streams be positive. We use this characterization result to establish that the metric used by Svensson (Econometrica 48:1251–1256, 1980) induces the smallest topology for which there exist continuous ethical preferences. We thank an associate editor and two referees of this journal for their comments and suggestions.     

Risk attitudes and risky behavior

In economic theory, risk aversion is a characteristic of the typical utility function of money. Observations of how people deal with risks in real life have cast some doubts on the prevalence of risk aversion. People buy insurance, but they also gamble and take investment risks. Many of the conclusions in the discussions of utility derive from experiments employing some kind of lottery choices. While the experiments have given interesting ideas for theory, there has been little testing of the extent to which the obtained measures of risk attitudes correlate with actual behavior. Data from the VSB panel were used to answer three questions: (1) Can hypothetical risky choice questions be meaningfully answered by ordinary survey respondents? (2) What are the relationships between different measures of risk attitudes and actual portfolio choices of risky assets? (3) What is the relationship between risk attitude and playing in lotteries, lotto, etc.?     

Understanding preferences for tree attributes: the relative effects of socio-economic and local environmental factors

Urban plant biodiversity is influenced by both the physical environment and attitudes and preferences of urban residents for specific plant types. Urban residents are assumed to be disconnected from their immediate environment, and cultural and societal factors have been emphasized over environmental factors in studies of landscaping choices. However, we postulate that local climatic and environmental factors can also affect preferences for plant attributes. Therefore, spatial and temporal patterns in urban tree biodiversity may be driven not only by the direct effect of environmental variables on plant function, but also by the effect of environmental variables on attitudes toward trees and associated choices about which types of trees to plant. Here, we tested the relative effects of socio-economic and local environmental factors on preferences toward tree attributes in five counties in southern California in and surrounding Los Angeles, based on 1,029 household surveys. We found that local environmental factors have as strong an effect on preferences for tree attributes as socio-economic factors. Specifically, people located in hotter climates (average maximum temperature 25.1 °C) were more likely to value shade trees than those located in cooler regions (23.1 °C). Additionally, people located in desert areas were less likely to consider trees to be important in their city compared with people located in naturally forested areas. Overall, our research demonstrates the inherent connections between local environmental factors and perceptions of nature, even in large modern cities. Accounting for these factors can contribute to the growing interest in understanding patterns of urban biodiversity.     

Hedonic games related to many-to-one matching problems

We consider the existence problem of stable matchings in many-to-one matching problems. Unlike other approaches which use algorithmic techniques to give necessary and sufficient conditions, we adopt a game theoretic point of view. We first associate, with each many-to-one matching problem, a hedonic game to take advantage of recent results guaranteeing the existence of core-partitions for that class of games, to build up our conditions. The main result states that a many-to-one matching problem, with no restrictions on individual preferences, has stable* matchings if and only if a related hedonic game is pivotally balanced. In the case that the preferences in the matching problem are substitutable, the notions of stability and stability* coincide.     

Investor preferences for positive social externalities and state-owned enterprises’ facilitated access to capital

State-ownership of commercial companies exists around the world, and it is important to understand its effect on financing and investment decisions. Empirically, firms that are partially state-owned (SOE) usually profit from easier access to capital. We propose a novel explanation for this: investors’ social preferences can affect capital allocation if SOEs are perceived as socially beneficial. In support of this we found that people attribute social benefits more to SOEs than to private firms, and their propensity to invest depends on this attitude. Further, in an incentivized modified stochastic public goods game, participants invested in risky options with positive externalities even when the aggregate of private return and externality was lower than the return of an investment option with only private returns. For the case of the EU, we discuss alternative explanations such as state guarantees and political lending in the light of regulations of state aid. We conclude that even if these regulations prohibit direct or indirect state aid for SOEs, state-ownership can affect capital allocation through investors’ social preferences.     

Utility, informed preference, or happiness: Following Harsanyi's argument to its logical conclusion

Harsanyi (1997) argues that, for normative issues, informed preferences should be used, instead of actual preferences or happiness (or welfare). Following his argument allowing him to move from actual to informed preferences to its logical conclusion forces us to use happiness instead. Where informed preferences differ from happiness due to a pure concern for the welfare of others, using the former involves multiple counting. This “concerning effect” (non-affective altruism) differs from and could be on top of the “minding effect” (affective altruism) of being happy seeing or helping others to be happy. The concerning/minding effect should be excluded/included in social decision. Non-affective altruism is shown to exist in a compelling hypothetical example. Just as actual preferences should be discounted due to the effects of ignorance and spurious preferences, informed preferences should also be discounted due to some inborn or acquired tendencies to be irrational, such as placing insufficient weights on the welfare of the future, maximizing our biological fitness instead of our welfare. Harsanyi's old result on utilitarianism is however defended against criticisms in the last decade. Harsanyi (1997) argues, among other things, that in welfare economics and ethics, what are important are people's informed preferences, rather than either their actual preferences (as emphasized by modern economists) or their happiness (as emphasized by early utilitarians). The main purpose of this paper is to argue that, pursuing Harsanyi's argument that allows him to move from actual to informed preferences to its logical conclusion forces us to happiness as the ultimately important thing. The early utilitarians were right after all! Since I personally approve of Harsanyi's basic argument, I regard myself as his follower who becomes more Catholic than the Pope. (It is not denied that, in practice, the practical difficulties and undesirable side-effects of the procedure of using happiness instead of preferences have to be taken into account. Thus, even if we ultimately wish to maximize the aggregate happiness of people, it may be best in practice to maximize their aggregate preferences in most instances. This important consideration will be largely ignored in this paper.) The secondary objective is to give a brief defence of Harsanyi's (1953, 1955) much earlier argument for utilitarianism (social welfare as a sum of individual utilities) that has received some criticisms in the last decade. The argument (e.g. Roemer 1996) that Harsanyi's result is irrelevant to utilitarianism is based on the point that the VNM (von Neumann-Morgenstern) utility is unrelated to the subjective and interpersonally comparable cardinal utility needed for a social welfare function. Harsanyi's position is defended by showing that the two types of utility are the same (apart from an indeterminate zero point for the former that is irrelevant for utilitarianism concerning the same set of people). Received: 29 May 1997 / Accepted: 3 November 1997     

The Political Values and Choices of Husbands and Wives

This article applies theoretical ideas in the literature on the household division of labor to the analysis of partners’ political preferences. We regress men's and women's political party preferences on their own and their partners’ characteristics using data from the 1991 British Household Panel Survey (N =2,846). We find a symmetrical pattern of influence: Men and women both give greatest weight to their own political values but also accord some significant weight to their partners’ values. Economically dependent men, however, place virtually no emphasis on their partners’ political values. Apart from this, we suggest that there may be a process of mutual accommodation within couples regarding political preferences that leads to greater concordance in the partners’ preferences over time.     

Urban Aboriginal use of fringe financial institutions: Survey evidence from Prince George, British Columbia

This paper analyses the use of fringe financial institutions (FFIs), such as payday loan and check cashing providers, by urban Aboriginal people based on a survey undertaken in Prince George, British Columbia. We found that 60% of FFIs’ clients surveyed self-identified as Aboriginal. Their characteristics, compared to the non-Aboriginal FFI clients, included having lower average incomes, lower levels of education, more likely to be female, a higher incidence of being unemployed, higher levels of financial exclusion, and less satisfaction with the service provided by FFIs. We find that government policy towards regulating the FFI industry is inadequate for meeting the basic financial needs of urban Aboriginal people.     

Targeting and child poverty

We examine the relative merits of targeting children within the household through price subsidies and cash transfers. To do so, we model the behavior of a household composed of one adult and one child. We then show that ‘favorable’ distortions from price subsidies may allow redistributing toward the child and then derive the conditions under which this redistributive scheme is more efficient than cash transfers. The framework is extended to account for possible paternalistic preferences of the social planner and for households composed of two adults with different preferences. Applied to a continuum of households, our approach is extended to the problem of child poverty alleviation. In contrast to the traditional view, we show that well-chosen subsidies may be more cost effective than cash transfers in reducing child poverty.     

Migrant remittances and household wellbeing in urban Zimbabwe

Evidence from household surveying in December 2005 in Harare and Bulawayo, Zimbabwe, indicates that a wide network of international migrant remitters are ameliorating the economic crisis in Zimbabwe by sending monetary and in-kind transfers to over 50 per cent of urban households. The research combines quantitative measurement of scale and scope, with demographic and qualitative narrative to build a holistic picture of the typography of receiving and non-receiving households. A complex set of interrelated variables helps to explain why some households do and others do not receive income and goods from people who are away, and the economic and social extent of their subsequent benefit from them. Moreover, the mixed methods approach is designed to capture inter-household and likely macroeconomic effects of how households receive their goods and money; and of how they subsequently exchange (if applicable), store and spend it. Evidence emerges of a largely informal, international social welfare system, but one which is not without adverse inter-household effects for some. These include suffering exclusion from markets suffering from inflationary pressures, not least as a result of other people’s remittances. This paper explores the role of remittances, within this internationalised informal welfare system which we can map from our household survey, in reframing vulnerability and marginalization differentially among and between our subject households.     

What Nonprofit Executives Want and What They Get from Board Members

In theory, nonprofit boards of directors exist to perform mission‐setting and oversight functions that help to ensure organizational accountability. Yet there is evidence that board behavior often falls short of this ideal. Using survey data from a sample of 241 executive directors of nonprofit agencies, we investigated whether nonprofit boards are meeting executive directors’ expectations, and if not, what factors explain this? We find that although board behavior tends to align closely with executive directors’ preferences for involvement in administration and management tasks, there is a greater disconnect between board behavior and executive directors’ preferences for involvement in mission‐setting and oversight duties. Factors that mitigate this gap include organizational professionalization and stability, whereas more extensive reliance on government funding exacerbates it. Female executive directors experience a greater disconnect in their preferences for board involvement and actual board involvement than male executive directors. We conclude by discussing the implications of our findings for both theory and practice.     

The Impacts of Education,Adverse Childhood Experience,and Nativity on Intimate Partner Violence

This paper tested an implication of household bargaining theory, that women with higher human capital experience less intimate partner violence. Relying on a single source of income imposes a barrier to leaving an abusive relationship. Women with higher human capital are better equipped to leave a relationship, which allows them to tolerate less violence in a relationship. Using a California health survey dataset, we found that more educated women were less likely to experience spousal violence. We used the detailed nature of the data to control for commonly omitted variables such as adverse childhood experiences. In addition, we found that the effect of education on intimate partner violence varied by nativity (US-born vs. foreign-born) and was smaller for foreign-born women. Drawing from the literature on the returns to education by race, we hypothesized that foreign-born women have a lower return on human capital, which in turn moderated the effect of education on household bargaining power.     

Adult-equivalence scales and the economic implementation of interpersonal comparisons of well-being

Equivalence Scale Exactness (ESE) or Independence of Base (IB), a condition on household preferences and interpersonal comparisons, makes adult-equivalence scales independent of utility levels. ESE is characterized by Income-Ratio Comparability (IRC) which assumes that utility equality is preserved by income scaling. If ESE/IRC is a maintained hypothesis, equivalence scales can be estimated from behaviour alone if preferences are not piglog. This condition is not met by a family of translog expenditure functions or by the Almost Ideal Demand System. A translog expenditure function can be used for the reference household, however, together with an independent specification of the equivalence scale.Earlier versions of this paper [1987–1992] have been presented at Amsterdam, Augsburg, Barcelona, Bilbao, CORE, Essex, GREQE, Kiel, Leyden, Madrid, Southhampton, Toulouse, UBC, and Valencia. We thank the seminar participants and the referees of this journal, and are especially indebted to Kenneth Arrow, Martin Browning, Dale Jorgenson, Joseph Ostroy, Shelley Phipps, J. Ruiz-Castillo, Daniel Slesnick, Terry Wales and John Weymark. We also thank Amartya Sen whose remarks on another paper inspired the approach we have taken in this one.     

Women and men as conservers, users and managers of agrobiodiversity: A feminist social–ecological approach

This feminist socio-ecological heuristic studies agrobiodiversity management, conservation and utilisation by men and women. Four approaches are characterised for an analysis of institutions, local knowledge, household economics and commodity chains. They are in turn linked to unveil their potential contributions towards a better understanding women's handling of, interests in and dependence on agrobiodiversity. The conceptualisation of a feminist framework aims at better informed research into the relationships between women, men and plants and is illustrated by examples from South Asia. Insights derived from a feminist socio-ecological perspective on agricultural biodiversity serve to generate gender-relevant policy recommendations towards establishing sustainable farming systems.