Equivalence scales,the cost of children and household consumption patterns in Italy

This article deals with the estimation of parametric equivalence scales for Italian households with different demographic characteristics: composition, location and number of employed members in the household. Using a sample of 43,701 observations on monthly current expenditures from 1997 to 2004 we estimate a demand system for ten goods and we tackle the problem of corner solutions for some goods adopting the Two Step estimator proposed by Shonkweiler and Yen (Am J Agric Econ 81:972–982, 1999). The consumption behavior of households is also analyzed calculating compensated, uncompensated and expenditure elasticites for each commodity. By considering households that differ in composition (number of children), geographic location (four-different macro-areas of Italy), and number of employed adults, we allow for a range of useful comparisons.     

Linear cost share equilibria and the veto power of the grand coalition

We consider pure exchange economies with finitely many private goods involving the choice of a public project. We discuss core-equivalence results in the general framework of non-Euclidean representation of the collective goods. We define a contribution scheme to capture the fraction of the total cost of providing the project that each blocking coalition is expected to cover. We show that for each given contribution scheme defined over the wider class of Aubin coalitions, the resulting core is equivalent to the corresponding linear cost share equilibria. We also characterize linear cost share equilibria in terms of the veto power of the grand coalition. It turns out that linear cost share equilibria are exactly those allocations that cannot be blocked by the grand coalition with reference to auxiliary economies with the same space of agents and modified initial endowments and cost functions. Unlike the Aubin-type equivalence and results presented in Diamantaras and Gilles (Soc Choice Welf 15:121–139, 1998), this characterization does not depend on a particular contribution scheme.     

Measuring opportunity inequality with monetary transfers

In this paper I consider the problem of measuring opportunity inequality when monetary transfers are possible. First, I consider the case in which agents have common evaluations (or identical preferences), as in the previous literature. I then propose an extension to the heterogeneous case. In both cases I identify an appropriate egalitarian benchmark relative to which inequality can be measured, and I establish that this yields a theory of measurement analogous to that of income inequality. Consequently, the introduction of money (or an infinitely divisible commodity) avoids the difficulty reported in Ok (J Econ Theory 77:300–329, 1997). The results of the paper are immediately applicable to the measurement of multidimensional economic inequality including economies with indivisible goods.     

Subjective well-being in European countries��on the age-specific impact of physical activity

As an attempt to measure the ‘experienced’ utility of individuals in economics, the investigation of individuals’ subjective well-being (SWB) was pioneered by Van Praag and Frijters (1999) and Kahneman et al. (1999). Since then, a number of studies has analysed the factors associated with SWB and policy makers are now recognising the importance of SWB as a policy target, with the implication being that one could target its factors associated with increase in the overall SWB in countries. However, despite its significance to economies, and increasing policy relevance, investigations on the impact of sport and physical activity on SWB are relatively rare [e.g. Rasciute and Downward in Kyklos 63(2):256–270, 2010]. More specifically, despite sports participation and engagement in physical activity having a strong age-specific profile (Breuer et al. in Eur Rev Aging Phys Act 7:61–70, 2010; Hinrichs et al. in Eur J Sport Soc 6(1):49–57, 2010; Mechling and Netz in European Rev Aging Physical Activity 6(2):89–97, 2009), there is no study that investigates whether the magnitude of this impact is age-specific. Consequently, this paper seeks to make a unique contribution to the existing literature by exploring the age-specific effects of physical activity on SWB for a broad cross-section of 19 European countries. Overall, the results suggest that engagement in physical activity generally contributes to the SWB of individuals on a European level but that significant age-specific differences exist.     

The replacement principle for the provision of multiple public goods on tree networks

This article considers the provision of two public goods on tree networks where each agent has a single-peaked preference. We show that if there are at least four agents, then no social choice rule exists that satisfies efficiency and replacement-domination. In fact, these properties are incompatible, even if agents’ preferences are restricted to a smaller domain of symmetric single-peaked preferences. However, for rules on an interval, we prove that Miyagawa’s (Soc Choice Welf 18:527–541, 2001) characterization that only the left-peaks rule and the right-peaks rule satisfy both of these properties also holds on the domain of symmetric single-peaked preferences. Moreover, if agents’ peak locations are restricted to either the nodes or the endpoints of trees, rules exist on a subclass of trees. We provide a characterization of a family of such rules for this tree subclass.     

The human development index: a response to Klugman, Rodriguez and Choi

Each year, the mass media and many governments look keenly at the country rankings by the Human Development Index (HDI), as published in the annual Human Development Reports (HDR). Klugman, Rodriguez and Choi (KRC) were members of the team that produced the 20th anniversary edition of the HDR (United Nations Development Programme (UNDP), 2010) which introduced a new version of this popular index. However, Ravallion (2010) argued that the new HDI has a number of undesirable features, some shared with the old index and some new. This note responds to the points made by KRC (J Econ Inequality 9(2):249–288, 2011) in their defense of the new HDI.¹     

Gambling participation in Australia: findings from the national Household Expenditure Survey

Regression modeling is used to predict gambling patterns in Australia on the basis of the unit record files underlying the Australian Bureau of Statistics’ Household Expenditure Survey of 6,892 households. The four largest categories of gambling expenditure are examined, namely: lottery tickets, lotto-type games and instant lottery (scratch cards), TAB (pari-mutuel wagering) and related on course betting, and poker (slot) machines and ticket machines. Determining factors analyzed include the source and level of household income, family composition and structure, welfare status, gender, age, ethnicity and geographic location. Apart from the determinants of expenditure varying widely across the different types of gambling activity, the results generally indicate that the source of household income is more important than the level of income and that household composition and regional location are likewise significant in determining gambling expenditure.      

Expenditures on children by female-headed households

The 1982–84 Consumer Expenditure Survey data are used to analyze expenditures made by nonpoor female-headed households for child-related goods and services. These child costs are measured using Engel's (1895) food share equivalency methodology, previously used by Espenshade (1984) to analyze child-related expenditures in two-parent households. Results show that single, female-headed households on average spend about $112,000 to $142,000 in 1990 dollars to raise a single child to age 18. Findings are also compared with those of two other recently published studies of single-parent child cost estimates. Professor Douthitt's research interests include analysis of the effects of family composition on money and time expenditures. Professor Huh's current research interests include analysis of gender roles and family time use.     

Sociology’s <Emphasis Type="Italic">Suicide</Emphasis>: A Forensic Autopsy?

For decades Durkheim’s theory of suicide has been tested and found wanting. Yet, rather than being consigned to the dust-bin of history, it lives on and is pointed to as an exemplar of the powers of sociological theory and research. If this rationalizing and/or dismissal of so many falsifications of the theory were an isolated phenomenon, it might be evidence of some lemming-like propensity for suicide or a disciplinary death-wish, among a few sociologists. But it appears to be a much more widespread and common occurrence. In this paper we explore some possible explanations of this ‘falsification denial’—‘The Social Misconstruction of Reality’ (Hamilton 1996), ‘When Prophecy Fails’ (Festinger et al. 1956), ‘Underdetermination’ (Duhem 1954; Quine Journal of Philosophy 67:178–183, 1970, Erkenntnis 9:313–328, 1975; Lakatos 1970), and ‘Boundary Maintenance’ (Erikson 1966), and we outline some of the more important and pernicious consequences of this falsification denial for the discipline and future of sociology.     

Constructing indices of multivariate polarization

Multivariate indices of polarization are constructed to measure effects of non-income attributes like wealth and education. Polarization is considered as the presence of groups which are internally homogeneous, externally heterogeneous, and of similar size. We propose a class of polarization indices which is built from measures of relative groups size and from decomposable indices of socio-economic inequality. For the latter, we employ the special inequality indices of Maasoumi (Econometrica 54:991–997, 1986), Tsui (J Econ Theory 67:251–265, 1995; Soc Choice Welf 16:145–157, 1999) and Koshevoy and Mosler (J Multivar Anal 60:252–276, 1997). Then, postulates for multidimensional polarization measurement are stated and discussed. The approach is illustrated by an empirical application to the population of the East and West Germany with polarization defined on income and education.     

Measuring Differences in Living Standards Within Households

This article presents a quantitative approach used to investigate differences in living standards between spouses within households. Adopting a specially adapted, standard poverty measurement approach—nonmonetary indicators—it explores differences between spouses in terms of possessions and access to certain goods and services and the control and management of household resources. Using data from a unique module in the Living in Ireland Survey (N = 2,248 individuals) as an exemplar, the article focuses on 3 methodological issues: (a) the development of specially designed nonmonetary indicators to explore differences in living standards within households rather than between households (including the role played by qualitative findings in developing those indicators and how focus groups were used to assess and validate the method), (b) the use of multivariate analysis to assess the impact of a wife's independent income in ameliorating differences in living standards between spouses, and (c) the deployment of a mechanism for use in quantitative surveys to record spousal presence and allow measurement of any subsequent difference in individual responses.     

Why do larger families reduce parental investments in child quality, but not child quality per se?

Becker’s Quantity–Quality model (Becker in Demographic and economic change in developed countries, Princeton University Press, Princeton, pp 209–240, 1960; Becker and Lewis in J Polit Econ 81(2): S279–S288, 1973; Becker and Tomes in J Polit Econ 84(4): S143–S162, 1976) suggests a trade-off between family size and parental investments in children. To date, only Cáceras-Delpiano (J Hum Resour 41(4): 738–754, 2006) tests this theory by considering private school enrolment. This study extends this work by using a unique data set containing a broader range of parental investments that are arguably linked to parental intentions for producing higher quality children, such as overall and non-sectarian private school enrolment, the number of computers in the home per child, and saving for the child’s education. Both studies find that fertility reduces parental investments. However, the literature generally finds that fertility has no impact on child outcomes. The study offers three potential explanations for this ‘puzzle’.     

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.     

Race and Reciprocity: Inter‐household Exchanges in a Multiracial Neighborhood

This study investigates the degree to which African‐American households are socially integrated into a multiracial, middle‐class suburban neighborhood near Dallas, Texas. Although U.S. neighborhoods are becoming increasingly heterogeneous in composition, little is known about black households' participation in social and informational networks within multiracial middle‐class neighborhoods. Drawing on theories of the gift and social capital, we view neighborhoods in terms of complex patterns of inter‐household exchanges of material and symbolic goods. We predict that black‐led households will exchange at a lower rate with their neighbors than will other households and test this prediction using survey data collected from 119 households and from follow‐up interviews with eight black heads of household. Our main finding from the survey is that black households exchanged at a significantly lower rate than did other households, ceteris paribus. The follow‐up interviews found little evidence of black racial homophily in neighboring or of racism within the neighborhood. However, the low rate of black inter‐household exchanges may be partly explained by black head of households' personal experiences of racism outside the neighborhood and by a racially constituted disposition against borrowing from neighbors. We discuss implications of our findings for research on racial integration and segregation.     

The Effects of Ethnic Identity on Household Budget Allocation to Status Conveying Goods

The theory of compensatory consumption suggests that a possible lack of traditional avenues for fulfilling needs for social status may lead ethnic minorities to shift measures of social status from traditional indicators such as occupational prestige to consumption indicators of status conveying goods. In this study we investigate whether a household’s ethnic identity affects its budget allocation to status conveying goods. Annual budget shares for apparel, housing, and home furnishings are used for measuring status consumption. Results show that Asian American households allocate more of their budget to housing, while African American more to apparel, compared to European households. Hispanic households allocate more of their budget to both apparel and housing than European American households, but to a lesser degree compared to Asian Americans to housing and African Americans to apparel.     

Statistics on urban workers' income and consumption

This chapter gives statistics on China's urban workers' incomes and consumption. Charts include: 1) number of cities and counties by population size, 2) average annual wage of staff and workers in state-owned units by sector of national economy, 3) composition of total wage bill of staff and workers in state-owned units, 4) number of persons entering employment in cities and towns, 5) households of staff and workers in cities, 6) household income and expenditure of staff and workers in cities, 7) average annual consumption of residents, 8) possession of principal durable consumer goods, 9) daily nutrient intake from food per capita, and 10) social welfare institutions and personnel.     

Interhousehold Transfers of Goods and Services and Reported Well-Being Among Polish Households

Analyses of data from 600 households in the province of Lubin, Poland, five years after the economic transformation indicated the transfers of goods and services between households to be quite prevalent, with households with high levels of resources giving goods and services and those with low levels of resources receiving goods and services. The receipt of such transfers does not improve the living conditions of the receiving households relative to those who do not receive help; in fact, those receiving help report lower levels of satisfaction than those not receiving assistance.     

Understanding the workweek of foreign born workers in the United States

I analyze the length of the workweek of foreign-born workers in the US I concentrate on workers supplying long hours of work—50 or more weekly hours and document that immigrants are less likely than natives to work long hours. Surprisingly, these differences are greatest among highly educated and salary paid workers, and persists even after conditioning for demographic characteristics. I explain these differences with two within occupation characteristics. First, relative to natives, immigrants are less likely to supply long work weeks if they work in occupations where the immigrant-native earnings differential is big. Second, immigrants are also less likely to supply long work weeks when they work in occupations with a wide dispersion of earnings. This second result is important, because the occupation dispersion of earnings has been used to characterize changes of the worker’s earnings over the worker life cycle (Bell and Freeman, Labour Economics: 8(2), 2001a; Working Time in Comparative Perspective, 2001b; Kuhn and Lozano, Journal of Labor Economics:26(2), 311–344, 2008), and a good measure of the incentives to supply long hours of work.     

Gambling Related Cognitions Mediate the Association Between Thinking Style and Problem Gambling Severity

This study examined the associations among thinking style (rational versus experiential), gambling related cognitions, and problem gambling severity. The participants were 70 female and 41 male regular gamblers who completed the Gambling Related Cognitions Scale (Raylu and Oei, Addiction 99:757–769, 2004), the Rational-Experiential Inventory (Pacini and Epstien, J Pers Soc Psychol 76(6):972–987, 1999), and the Problem Gambling Severity Index (Ferris and Wynne, The Canadian problem and gambling index: final report. Canadian Centre on Substance Abuse, Ottawa, 2001). Rational thinking was negatively related to problem gambling severity. Gambling related biases increased with problem gambling severity but the strength of those biases was dampened by rational thought. The patterns by which gambling related cognition mediated the association between thinking style and gambling severity suggest that therapeutic interventions may benefit from a consideration of a gambler’s thinking style.     

A generalization of Campbell and Kelly’s trade-off theorem

This article considers social choice theory without the Pareto principle. We revisit the trade-off theorem developed by Campbell and Kelly (Econometrica 61:1355–1365, 1993) and generalize their result. By introducing an alternative measure of decisive structure, a dominance relation, we show that if a social welfare function dominates another social welfare function, then the number of pairs of alternatives which social ranking is independently of individual preferences under the former is not more than that under the latter. Moreover, we offer two applications of our main result.