Positive and negative intergroup contact in school and out-of-school contexts: A longitudinal approach to spillover effects

This study aims to tackle positive and negative intergroup contact in school and out-of-school contexts to test whether a spillover effect (i.e., the extent to which experiences that individuals have in one context spill over into another) applies to intergroup contact. Participants were 984 adolescents (M_age = 14.66; 62.7% female; 24.8% ethnic minority). Results indicated that positive contact in school was related over time to higher positive contact in out-of-school contexts and vice versa (i.e., valence consistent spillover effect). Positive contact in school was linked over time to lower negative contact in out-of-school contexts (i.e., valence inconsistent spillover effect). Overall, this study provides novel insights into the transmission of adolescents' intergroup contact across socialization contexts by emphasizing the leading role of positive contact in schools.     

HEALTH CARE INFLATION AND ITS IMPLICATIONS FOR MONETARY POLICY

Motivated by recent findings on the cyclical movement of both health and health spending, we construct a general equilibrium model that distinguishes health care demand from the demand for other goods. Using this model, we are able to generate inflation dynamics and cyclicality of health that match the US data. When the model is subjected to an expansionary monetary policy shock, it yields different output and inflation responses compared with a two‐sector model with homogeneous demand. We show that the trade‐off between leisure and health spending plays an important role in model dynamics. The model further predicts different degrees of inflation stabilization across sectors when a shift in the monetary policy occurs. (JEL E52, E31, E32, I10)     

STRATEGIC ENFORCEMENT,INTELLECTUAL PROPERTY RIGHTS,AND CONTRACTUAL R&D

This study examines the role of intellectual property rights (IPRs) in contractual research and development (R&D) in developing countries. We find that strong IPRs provide incentives for firms, both multinational and local, to specialize in R&D activities in which they have competitive advantage (the specialization effect). They also facilitate the switching process from imitators to potential innovators for local firms (the switching effect). Moreover, we also demonstrate that a multinational firm's strategic IPRs enforcement behavior can be an effective instrument for subsidizing contractual R&D in developing countries (the subsidizing effect). We further illustrate how a policy mix of IPRs and a foreign direct investment subsidy in these countries affects R&D activities by adding an offshore R&D subsidiary as an additional organizational form. (JEL L13, O31, O34)     

FISCAL STABILIZATION WITH PARTIAL EXCHANGE RATE PASS‐THROUGH

This article examines the role of fiscal stabilization policy in a two‐country framework that allows for partial exchange rate pass‐through. Analytical solutions for optimal monetary and fiscal policy rules depend on the degree of pass‐through. Each country unilaterally uses its fiscal instrument to stabilize the costs facing exporters. The welfare effects differ strongly depending on the degree of pass‐through. For high levels, both countries are better off with the fiscal instrument and welfare is closer to the benchmark flex‐price level. For low levels, however, the unilateral equilibrium policy rules lead to high volatility in taxes, and fiscal policy ends up being destabilizing by transmitting exchange rate fluctuations. Because these results stem from strategic considerations by the two countries, the fiscal instrument is not used under policy coordination. In addition, imposing a monetary union increases welfare when pass‐through is low, including the case of local currency pricing. (JEL E52, E63, F41, F42)     

On the social stability of coalitional property rights regimes

We present a model of coalitional property rights (CPR) regimes– regimes in which ownership of a good is attributable to coalitions of various sizes. Specifically, for each good, we define a legal structure that specifies the legal coalitions of individuals that share a communal claim to that good. Generally, each legal coalition may use exclusionary rules to allocate its holdings internally. These rules allow eligible subcoalitions to recontract by expropriating some fraction of the legal coalition's endowment. We then ask: what types of CPR regimes are socially stable in the sense of having a nonempty core? We give conditions on the legal structure and the primitives of the economy that achieve social stability in this sense. We emphasize two cases of particular interest. ( I ) Unanimity. Unanimity is required for a legal coalition to recontract against (block) the status quo. In this case, the core is nonempty under standard assumptions. Each agent's ability to veto an alternative allocation allows a partial characterization in terms of the economies that are privatized by dividing up the communal endowment among the members of each legal coalition. We show that in some economies' collective vs private ownership matters in terms of social stability. ( II ) Exclusion. Many eligible subcoalitions can expropriate the legal coalition's entire endowment. An example is the collection of simple majorities. The presence of cycles can easily lead to social instability. We show that if endowment holdings are sufficiently “specialized” and each agent's “veto power” sufficiently large, then stability can be achieved despite the presence of cycles in some goods. Received: 30 June 1993/Accepted: 28 February 1998     

TRADE ADJUSTMENT,POLITICAL PRESSURE,AND TRADE PROTECTION PATTERNS

This paper introduces trade adjustment considerations as active determinants of trade policy. Using novel U.S. data sets, I show that, despite their small monetary value, trade‐induced unemployment and trade‐adjustment costs can incite an incumbent politician to grant protection to an unorganized industry, even in the presence of political pressure by organized sectors. This finding complements the theoretical predictions from Grossman and Helpman (American Economic Review, 84, 1994, 833–50) who argue that the government should protect organized industries but should subsidize imports in unorganized sectors. (JEL D73, F13, F14, F16, J68)     

Exploring Parents' Experiences and Reactions to Adolescents' Hyperactivity,Impulsivity, and Attention Problems

Adolescents' hyperactivity, impulsivity, and attention problems (HIA) have been shown to make parents feel powerless. In this study, the authors examined whether these feelings were dependent on parents' experiences with their older children. Two models that offer different predictions of how parents make use of their earlier experiences when raising their later‐born children were explored: the learning‐from‐experience model and the spillover model. The authors used reports from 372 parents with 1 child (M_age = 11.92) and 198 parents with 2 children (M_age = 11.89 and 14.35) from a small town in a European country. The results did not support a learning‐from‐experience process. Instead, consistent with a spillover process, parents felt particularly powerless about their younger children with HIA if they also felt powerless about their older children. This study suggests that parents' experiences of raising their older children are important for their reactions to HIA in their younger children     

Exploring public relations challenges in compounding crises: The pariah effect of toxic trailers

This study examined the distinct exigency of a compounding crisis, a crisis that occurs in close succession to another (potentially unrelated) crisis before an organization has had the opportunity to rebuild legitimacy. Specifically, we identified the public relations challenges faced by the US Federal Emergency Management Agency during the formaldehyde travel trailer crisis and examined how the Hurricane Katrina crisis encumbered the agency’s response efforts. We offer a theoretical frame for understanding the public relations challenges inherent in compounding crises and propose that, in a compounding crisis, organizational legitimacy and social capital decrease while stakeholder risk perceptions and attribution of crisis responsibility increase. A new phenomenon termed the pariah effect is offered to explain when an organization experiencing a compounding crisis is ostracized by other organizations that could assist with the crisis response to avoid negative spillover effects that could result from associating with the offending organization. This study also demonstrates how attribution of responsibility in a compounding crisis can create an exigency in which an organization must take actions beyond the scope and original mission of the organization.     

Punitiveness and Political Culture

This article draws on an emerging comparative literature indicating the significant effects that political systems can have on the deployment of penal power, and the ways they condition responses to crime and to criminal offenders. It explores two political‐cultural mechanisms that help account for variations in levels of punitiveness between countries. These mechanisms – called here as the insulation and autonomy effect and the populism disincentive effect– are embedded in jurisdiction‐specific political cultures and the structures that sustain them.     

SIMULTANEOUS DECISION‐MAKING IN COMPETITIVE AND COOPERATIVE ENVIRONMENTS

We experimentally investigate simultaneous decision‐making in two contrasting environments: one that encourages competition (lottery contest) and one that encourages cooperation (public good game). We find that simultaneous participation in the public good game affects behavior in the contest, decreasing sub‐optimal overbidding. Contributions to the public good are not affected by participation in the contest. The direction of behavioral spillover is explained by differences in strategic uncertainty and path‐dependence across games. Our design allows us to compare preferences for cooperation and competition. We find that in early periods, there is a negative correlation between decisions in competitive and in cooperative environments. (JEL C72, C91)     

Youth perceptions about parental spillover: influences and impacts

Work and family mutually influence one another. Whereas evidence supports the impact of spillover between these domains on employees and employers, less evidence exists about how it affects other family members, especially children. Using spillover theory as a framework, youth participants (N=111) completed a self-report survey to test parental spillover and work attitudes. Correlation and independent t-test analyses helped answer hypotheses about the role of family structure on youth perceptions of positive and negative spillover as well as on youth reports of anxiety. Results suggest family structure does impact perceptions of positive spillover and that youth perceptions of negative parental spillover is related to levels of anxiety. These findings are important since the impact of parental spillover on youth largely is absent from spillover research.     

THE NEAR OPTIMALITY OF MARK-UP PRICING

Mark-up pricing policies result in a loss of profits compared to marginal pricing behavior. These losses, however, are often very small, even for large changes in the money supply. But by adopting a simple pricing rule the firm does not have to forecast the future, and avoids the informational and computational costs required to determine the profit maximizing price each period. Thus, even if these costs are small, mark-up pricing policies may be optimal, or approximately so, at least for some firms. In a macro model this is likely to imply large monetary non-neutralities.     

UNION POWER,COLLECTIVE BARGAINING,AND OPTIMAL MONETARY POLICY

We study Ramsey policies and optimal monetary policy rules in a dynamic New Keynesian model with unionized labor markets. Collective wage bargaining and unions' monopoly power amplify inefficient employment fluctuations. The optimal monetary policy must trade off between stabilizing inflation and reducing inefficient unemployment fluctuations induced by unions' monopoly power. In this context the monetary authority uses inflation as a tax on union rents and as a mean for indirect redistribution. Results are robust to the introduction of imperfect insurance on income shocks. The optimal monetary policy rule targets unemployment alongside inflation. (JEL E0, E4, E5, E6)     

WHAT'S SO FUNNY ABOUT MAKING MONETARY POLICY?

During their meetings, the members of the Federal Open Market Committee (FOMC) make monetary policy, but they also make each other laugh. This article studies the amount of laughter elicited by members of the FOMC during their meetings. The study finds that a member elicits more laughter if he or she expects higher inflation, other things being equal. This finding suggests that members may use humor to cope with the threat of inflation. (JEL E52, E58, C23)     

Blurring Boundaries? Linking Technology Use,Spillover, Individual Distress,and Family Satisfaction

Information technology is entrenched in everyday life; yet, scholars have not firmly established whether this use blesses or vexes individuals and their families. This study analyzes longitudinal data (N =1,367) from the Cornell Couples and Careers Study to assess whether increases in spillover explain changes in distress and family satisfaction associated with technology use. Structural equation models indicate that cell phone use over time (but not computer use) is associated with increases in negative forms of spillover (positive spillover is not significant) and is linked to increased distress and lower family satisfaction. Overall, the evidence suggests that technology use may be blurring work/family boundaries with negative consequences for working people.     

PRODUCTIVITY EFFECTS OF PUBLIC CAPITAL MAINTENANCE: EVIDENCE FROM U.S. STATES

This article assesses the productivity effects of infrastructure operation and maintenance (O&M) spending by state and local governments in the 48 contiguous U.S. states over the period 1978–2000. We explicitly account for transboundary spillovers of capital and O&M spending and follow a semiparametric methodology that allows us to estimate state‐specific output elasticities. We find strong evidence that in all 48 states the cross‐state spillover effects of O&M outlays on productivity exceed their within‐state impacts and are substantially higher than the spillover effects of capital expenditure. (JEL C14, E22, E62, H76, O11, O47, R11)     

THE COMPOSITION AND CONSTRUCTION OF MONETARY AGGREGATES

An economic monetary aggregate is composed from a set of monetary goods that are at least weakly separable from other goods in the optimizing agent's utility function. We construct such an aggregate using a Divisia index number. We demonstrate that through the middle of the 1980s forecasts of the inflation rate based on our economic monetary aggregate are superior to forecasts based on the simple sum monetary aggregates M1 or M2.     

TOXIC NEIGHBORS: FORECLOSURES AND SHORT‐SALES SPILLOVER EFFECTS FROM THE CURRENT HOUSING‐MARKET CRASH

Do home foreclosures and short sales equally affect neighbors? On average, no‐default homes sell anytime up to 6 months after sales of foreclosed neighbors suffer a cumulative spillover effect of about 10%. Including the market trend, the total effect increases to 40%. Controlling for foreclosure effects, short sales do not produce additional spillover effects. We apply a modified hedonic model to estimate spillover effects on neighbors, using January 2008 to June 2009 home transactions from one of the most impacted housing markets. Our findings apply to severely “thin” markets and may not be true for stable markets. We show that accurate estimates of spillover effects require correcting for the market trend, two types of time and spatial price interdependence, and the endogenous neighborhood price. (JEL R21, R22, R31, K2)     

THE IMPACT OF PEER PRESENCE ON CHEATING

Recent research has shown that the presence of peers can increase individual output both in the lab and the field. This paper tests for negative side effects of such peer settings. We investigate whether peer settings are particularly prone to cheating even if they do not provide additional monetary benefits of cheating. Participants in our real‐effort experiment had the opportunity to cheat when declaring their output levels. Although cheating did not have different monetary consequences when working alone than when working in the presence of a peer, we find that cheating is a more severe problem in peer settings.(JEL J20, J30, M50)     

SUSTAINABILITY OF THE FRIEDMAN RULE IN AN INTERNATIONAL MONETARY POLICY GAME

This article develops a two-country monetary economy model in order to analyze the international monetary policy game between governments and the domestic monetary policy game between each government and its private sector. We prove that if governments can commit to their own private sectors, the cooperative equilibrium of the game between governments is for them to follow the Friedman rule. When governments lack such ability to commit, we find that the Friedman rule is more likely to be sustained in our open-economy model than in the closed-economy model of Ireland. ( JEL E31, E52, E61)