GETTING INTO THE WEEDS: DOES LEGAL MARIJUANA ACCESS BLUNT ACADEMIC PERFORMANCE IN COLLEGE?

This paper examines the effect of legal access to marijuana on student performance stemming from a voter-approved initiative legalizing marijuana for those 21 and older in the State of Washington. Using panel data from a medium-sized public university, we use a within-student and within-class estimator to show that legalization reduces students' grades, with an effect size about one-half the impact of gaining legal access to alcohol. Consistent with how marijuana consumption affects cognitive functioning, we find that students' grades fall furthest in courses that require more quantitative skills. These effects are largely driven by men and low performers. (JEL I23, I18, K32)     

DOES THE NUMBER OF COUNTRIES IN INTERNATIONAL BUSINESS CYCLE MODELS MATTER?

Until the 1980s, standard models with two large open economies (i.e., the United States and Europe) provided plausible representations of the world economy. However, with the emergence of many developing countries since the 1990s, this approach no longer seems reasonable. In line with this change to the global economic environment, cross-country output correlations between the United States and other countries have risen. This paper extends the standard two-country model to many countries to show that doing so produces closer cross-country correlations to the data. In particular, based on analytical investigation with a simple model and quantitative analysis with a more general model, I show that the cross-country output correlation rises and the cross-country consumption correlation falls as the number of countries in the two models increases. (JEL F40, F41, F44)     

PEER EFFECTS IN HIGHER EDUCATION: DOES THE FIELD OF STUDY MATTER?

Does the peer effect vary with the field of study? Using data from a middle‐sized public university located in southern Italy and exploiting the random assignment of first‐year students to college accommodation, we find that roommate peer effects for freshmen enrolled in the hard sciences are positive and significantly larger than for freshmen enrolled in the humanities and social sciences. We present a simple theoretical model which suggests that the uncovered differences between fields in the size of the peer effect could plausibly be generated by between‐field variation in labor market returns, which affect optimal student effort. (JEL I21, Z13, J24)     

DOES CORRUPTION ATTENUATE THE EFFECT OF RED TAPE ON EXPORTS?

I use firm ‐level data to examine whether corruption attenuates the adverse effects of red tape on exports. I find that, conditional on there being customs‐related red tape, a firm is better off if it can use bribes to lower the delay that it faces. However, I also find that corruption has a negative overall effect on a firm's decision to export. That is, corruption prevents some firms from entering the export market. These results suggest that to gauge the overall effect of corruption, we must compare its red‐tape attenuating effect with its adverse effect on a firm's decision to export. (JEL F10, F14, K42)     

DOES PUBLIC ATTENTION REDUCE THE INFLUENCE OF MONEYED INTERESTS? POLICY POSITIONS ON SOPA/PIPA BEFORE AND AFTER THE INTERNET BLACKOUT

We investigate the role of public attention in determining the effect that campaign contributions by interest groups have on legislators' policy positions. We exploit the shock in public attention induced by the Internet service blackout of January 2012 that increased the salience of the Stop Online Piracy Act/Protect IP Act (SOPA/PIPA) bills aimed at stronger protection of property rights on the Internet. Using a new dataset of U.S. congressmen's public statements, we find a strong statistical relationship between campaign contributions funded by the affected industries and legislators' positions. However, this relationship evaporates once the two bills become primary policy issues. Our results are consistent with the notion that legislators choose positions on secondary policy issues in order to cater to organized interests, whereas positions on primary policy issues are driven by electoral support. (JEL D72, L82, L86)     

QUANTITATIVE EASING AND THE UK STOCK MARKET: DOES THE BANK OF ENGLAND INFORMATION DISSEMINATION STRATEGY MATTER?

We use intraday aggregate stock market data and an event‐study framework to assess the UK's equity market reaction to the unexpected element of the Bank of England Monetary Policy Committee's (MPC) asset purchase announcements for the 2009–2017 period. We assess the reactions of equity returns and their volatility over various time frames, both preceding and following the MPC announcements. Our results show that the UK unconventional monetary policy shocks have a significant impact on domestic equity returns and volatilities. The strength of this impact depends on the Bank's information dissemination through inflation reports and the publication of the MPC's voting records. (JEL G14, E44, E52)     

DOES THE LAUNCH OF THE EURO HINDER THE CURRENT ACCOUNT ADJUSTMENT OF THE EUROZONE?

This paper examines current account adjustments before and after the launch of the euro. Applying a dynamic panel model, we provide robust evidence to support that the adoption of the euro facilitates rather than hinders the adjustment of current accounts. This finding agrees with our results that the use of the euro assists real exchange rate and inflation rate adjustments. We also find that the independence of exchange rate regimes from current account, real exchange rate and inflation rate adjustments is observed when standard panel estimation methods are applied and when time‐varying smooth shifts in mean are not controlled. (JEL C33, F32, F41)     

DOES SOCIAL CAPITAL PROMOTE SAFETY ON THE ROADS?

I present evidence that social capital reduces traffic accidents and related death and injury, using data from a 10‐year panel of 48 U.S. states. The econometric challenge is to distinguish the causal effects of social capital from bias resulting from its correlation with unobservable characteristics by state that influence road risks. I accomplish this by employing snow depth as an instrument, and by restricting attention to summertime accidents. My results show that social capital has a statistically significant and sizable negative effect on crashes, traffic fatalities, serious traffic injuries, and pedestrian fatalities that holds up across a range of specifications. (JEL R41, I18, Z13)     

HOW DOES ADVERTISING AFFECT MARKET PERFORMANCE? A NOTE ON GENERIC ADVERTISING

We propose a novel approach to estimating the effect of advertising on market performance that relies on the preferences of firms participating in generic advertising programs. Generic advertising campaigns provide a unique window to observe advertising effects on market performance, because rotations in market demand systematically redistribute advertising rents among firms according to observable characteristics on producer size. We examine producer attitudes towards generic advertising in the “Beef. It's What's for Dinner!” campaign of the U.S. Beef Checkoff program, the subject of the recent and controversial Supreme Court ruling on generic advertising as a form of government speech. We find the likelihood producers favor an expansion of the advertising program increases in their operating scale. This finding is consistent with an advertising campaign that has led to a counterclockwise rotation of market demand and a commensurate increase in market performance in the U.S. beef market. (JEL L1, M37, Q13)     

DOES THE SAMARITAN'S DILEMMA MATTER? EVIDENCE FROM U.S. AGRICULTURE

The Samaritan's dilemma posits a downside to charity: recipients may rely on free aid instead of their own efforts. Anecdotally, the expectation of free assistance is thought to be important for decisions about insurance and risky behavior in numerous settings, but reliable empirical evidence is scarce. We estimate whether the Samaritan's dilemma exists in U.S. agriculture, where both private crop insurance and frequent federal disaster assistance are present. We find that bailout expectations are qualitatively and quantitatively important for the insurance decision. Furthermore, aid expectations reduce both expenditure on farm inputs and subsequent crop revenue. (JEL D72, H84, Q18)     

DID REGIONAL ECONOMIC DIVERSITY INFLUENCE THE EFFECTS OF THE GREAT RECESSION?

Using data for U.S. counties from 2005 to 2012, we test whether higher levels of economic diversity mediated the effects of the Great Recession via four measures of stability. Spatial spillover effects are modeled by the use of the spatial Durbin estimator with heteroscedastic errors. The data generally support the central hypothesis that higher levels of diversity within a county are associated with enhanced employment stability across all counties as well as subsets of metro and nonmetro counties. Results for wage stability, however, appear to contradict our other findings. We suggest that underlying labor elasticities can bridge these apparent contradictory results. (JEL R11, R12, O47)     

DOES THE GREAT RECESSION IMPLY THE END OF THE GREAT MODERATION? INTERNATIONAL EVIDENCE

In this paper we examine whether or not the Great Recession had a temporary or permanent effect on output growth volatility after years of low macroeconomic volatility since the early eighties. Based on break detection methods applied to a set of advanced countries, our empirical results do not give evidence to the end of the Great Moderation period but rather that the Great Recession is characterized by a dramatic short‐lived effect on the output growth but not on its volatility. We show that neglecting the breaks both in mean and in variance can have large effects on output volatility modeling based on GARCH specifications. (JEL E32, C22, O40)     

DOES TELEVISION ENTRY DECREASE THE NUMBER OF MOVIE THEATERS?

This paper empirically examines the impact of competition in the television (TV) industry on the number of movie theaters, their attendance, and their box office revenues. Studies of firm entry usually focus on the impact of regulation on economic outcomes within an industry, thereby neglecting its impact on neighboring industries. Using changes in regulation in the Spanish local TV station industry, we estimate the impact of TV entry on the movie theater industry between 1993 and 2005. Our findings show that local TV entry decreased the number of theaters and screens in a province, as well as movie attendance and box office revenues. (JEL L11, L43, L82)     

RELIGIOSITY,MORAL BELIEFS,AND DELINQUENCY: DOES THE EFFECT OF RELIGIOSITY ON DELINQUENCY DEPEND ON MORAL BELIEFS?

Does the effect of religiosity on delinquent behavior depend on moral beliefs? For example, will religious adolescents refrain from using marijuana, even if they do not believe using marijuana is wrong? We addressed this question using data from the third and fourth waves of the National Youth Survey. The results indicated a significant interaction between religiosity and moral beliefs for marijuana use and getting drunk, but not for hitting or property offenses. Religiosity has a stronger effect on marijuana and alcohol use when adolescents also believe these behaviors are wrong. Conversely, when it is not accompanied by strong moral beliefs, religiosity has less of an effect on marijuana use and drinking.     

THE DIASPORA OF WEST AFRICA: THE INFLUENCE OF WEST AFRICAN CULTURES ON “JODY CALLS” IN THE UNITED STATES MILITARY

This research addresses the influences of West African cultures on a rarely studied area: marching cadences of the United States military. This article details the evolution of these military marching cadences tracing their form back to slave songs and to the music of precolonial West Africa. Six elements are identified that link these forms of music. These are: call and response, focus on the voice, percussion backbeat to create energy, functionality in nature, focus on the experiences of daily living, and oral history. These suggest a great influence of West African music on the United States military marching cadences.     

WAGE DIFFERENTIALS ACROSS LABOR MARKETS AND WORKERS: DOES COST OF LIVING MATTER?

Wage differential studies rarely account for interarea differences in cost of living, owing both to data limitations and theoretical ambiguity. This study develops a price index for 185 metropolitan areas comprising about 70% of the U.S. labor force. Current Population Survey data for 1985–95 and data on site-specific amenities are used to estimate earnings differentials based on nominal wages, wages fully adjusted for measured cost of living, and a simple approximation of "real" wages with partial adjustment for price-level differences. Dispersion in approximate real wages across 185 labor markets and differentials by region and city size are substantially lower than dispersion in nominal or full adjustment wages. Estimates of racial and ethnic differentials display moderate sensitivity to choice of a wage measure, whereas other standard differentials do not. Both nominal wages and wages fully adjusted for cost of living may provide misleading estimates of real wage differentials. Absent data on interarea prices and amenities, researchers should include detailed controls for region and city size in nominal wage equations. ( JEL J31, R23)     

RELIGIOSITY,PEERS, AND DELINQUENCY: DOES RELIGIOSITY REDUCE THE EFFECT OF PEERS ON DELINQUENCY?

Do peer influences have the same effect on religious and nonreligious youth, or does religiosity reduce the effect of peers on delinquency? Using data from the National Youth Survey, we examined the interaction of religiosity and peer influences on marijuana use, alcohol use, hitting, and property offenses. The results suggest that, for marijuana use and alcohol use, three measures of peer influence—peer attitudes, behaviors, and pressure—have weaker effects on religious adolescents. Thus, even when religious youth are exposed to peers who encourage substance use, religiosity may serve as a protective factor that reduces the effect of peers. In contrast, religiosity does not seem to condition the effect of peers on hitting and property offenses.     

IS LOVE BLIND? THE EFFECTS OF EXPERIENCE AND INFATUATION ON THE PERCEPTION OF LOVE

We hypothesized that participants in love and more experienced in romantic love (e.g., schematics) would perceive love more accurately than those who were not in love and less experienced. Judges viewed and rated a series of 25 thin-slice video clips of couples for whom their love for another was known via Sternbergs (Psychological Review, 93, 119–135) love scale. Individual differences in love judgment accuracy were large. Not surprisingly, participants who were in love at the time of the study and who reported having had a lengthy romantic relationship were more confident in their love judgment accuracy but, in fact, were less accurate. Apparently the love schemas people develop subjectively may not adequately represent the way in which the construct manifests among the population in general. Although love judgments may come easier to those in love, their perceptions of the love around them may be biased and inaccurate.     

WHICH JOURNAL RANKINGS BEST EXPLAIN ACADEMIC SALARIES? EVIDENCE FROM THE UNIVERSITY OF CALIFORNIA

The ranking of an academic journal is important to authors, universities, journal publishers, and research funders. Rankings are gaining prominence as countries adopt regular research assessment exercises that especially reward publication in high‐impact journals. Yet even within a rankings‐oriented discipline like economics there is no agreement on how aggressively lower‐ranked journals are down‐weighted and in how wide is the universe of journals considered. Moreover, since it is typically less costly for authors to cite superfluous references, whether of their own volition or prompted by editors, than it is to ignore relevant ones, rankings based on citations may be easily manipulated. In contrast, when the merits of publication in one journal or another are debated during hiring, promotion, and salary decisions, the evaluators are choosing over actions with costly consequences. We therefore look to the academic labor market, using data on economists in the University of California system to relate their lifetime publications in 700 different academic journals to salary. We test amongst various sets of journal rankings, and publication discount rates, to see which are most congruent with the returns implied by the academic labor market. (JEL A14, I23, J44)     

WHY DOES CULTURAL CAPITAL MATTER FOR HIGH SCHOOL ACADEMIC PERFORMANCE? An Empirical Assessment of Teacher‐Selection and Self‐Selection Mechanisms as Explanations of the Cultural Capital Effect

Many scholars have argued that students' cultural capital has a positive effect on academic performance because students with cultural capital have better relationships with their teachers (the "teacher-selection" effect). However, theory also points to the importance of a "self-selection" effect, whereby students' cultural capital has a positive effect on academic performance by enhancing students' expectations for future educational attainment. Using National Education Longitudinal Study data, I estimate structural equation models to empirically assess the extent to which teachers' perceptions of students and educational expectations act as mechanisms of the cultural capital effect on grades and standardized test scores. The results show that, contrary to theoretical expectations, teachers' perceptions do not mediate the effect of cultural capital on academic performance. However, educational expectations account for portions of the cultural capital effect on grades and test scores.