EMPLOYMENT FLUCTUATIONS AND THE MITIGATION OF RISK

The main ideas discussed in this paper can be briefly summarized as follows: First, although risk-mitigating arrangements — specifically, risk shifting in labor markets and risk pooling in product markets — suggest an explanation for certain specified features of macroeconomic fluctuations, risk-mitigating contractual arrangements are neither necessary nor sufficient to cause any particular disturbance to produce output and employment fluctuations. Second, given that a stochastic disturbance is going to affect output and employment, risk-mitigating arrangements can affect the amplitude of these fluctuations. Specifically, risk-mitigating arrangements reduce and reallocate the risks associated with stochastic disturbances. This process produces at least three effects on the variation in aggregate employment. These effects are changes in worker tolerance of employment fluctuations, increased variation in spot product prices, and relatively greater income variation for agents who probably have relatively high marginal spending propensities. In addition to these effects the existence of contractual markets has a potential effect on the form of the inference problem that agents face in determining the nature of disturbances in a context of incomplete information. Third, despite some similarities, a macroeconomic model that encompasses risk-mitigating arrangements differs in important ways from models that utilize the non-market-clearing approach to analysis of the determination of income and employment.     

EMPIRICAL VALUES AND THE CULTURE OF FAMILY THERAPY*

The research-clinical practice connection is weak in family therapy. Some have argued, in an inordinate ideological and political tone, that traditional research methods are inappropriate for family therapy. This position mischaracterizes modern day clinical researchers and research. In presenting 10 key dimensions of the research-clinical practice issue in family therapy, this paper addresses some of these misrepresentations. If research and practice are to interact more productively, a major commitment, the scope and implications of which have not yet been realized, will need to be made. Actualizing the research-practice link is a training problem and a fundamental professional issue. Progress in this realm would change the particulars of clinical practice as we know it. These processes will involve nothing less than remaking the culture of family therapy.     

EDUCATION AND POLITICAL TOLERANCE: TESTING THE EFFECTS OF COGNITIVE SOPHISTICATION AND TARGET GROUP AFFECT

This paper examines the effects of education and cognitive sophisticationon willingness to extend civil liberties to nonconformist groups.We conducted secondary analysis of the 1984 General SocietySurvey data. The results show that there is a strong tolerancedimension that cuts across groups and types of actions. We foundstrong positive effects of education on a multiple target grouptolerance scale that included both left-wing and right-winggroups. A substantial fraction of the education effect on toleranceis mediated by cognitive sophistication. The effects of educationon tolerance are strong even when a person has negative feelingstoward the target group. This paper helps identify why and when(e.g., cognitive sophistication and dislike of a target group)education enhances political tolerance. We discuss the implicationsof the research for debates on the education-tolerance relationship.     

LONG-RUN EQUILIBRIUM IN THE EMPIRICAL STUDY OF MONOPOLY AND COMPETITION

A long-run tendency of industry profit rate to converge to a single competitive level has been a fundamental tenet of the industrial organization approach to the study of competitiveness in a market economy. This paper shows that for the post World War II period a weak equalization can be econometrically identified with different reaction speeds by industry. However, persistent profit rate differences endure. Finally, a portfolio theory of risk is considered as an explanation of these differentials.     

RISK TAKING IN CONTESTS AND THE ROLE OF CARROTS AND STICKS

We study contests in which contestants choose both work effort and the variance of output (risk). Winner-take-all contests generate incentives for contestants to engage in costly risk taking, which is inefficient if the contest organizer values the aggregate output of all contestants. The addition of a penalty for ranking last (retaining a prize for ranking first) enables the organizer to independently control contestants' incentives to exert productive effort and to increase output variance. In this way, the organizer can eliminate risk-seeking behavior in settings where it is wasteful, but also control risk seeking when it is desirable, such as in research tournaments. ( JEL J33, C72)     

SALARIES OR PIECE RATES: ON THE ENDOGENOUS MATCHING OF HARVEST WORKERS AND CROPS

The objective of this paper is to determine whether the choice of payment schemes (hourly vs. piece rates) is systematically related to the workers' risk aversion and ability. We derive the equilibrium relationship between agents' risk aversion and ability and the power of incentives (payment scheme) in a market where many heterogeneous principals and agents are endogenously matched. The equilibrium matching between principals and agents depends on the traits and is critical in determining the contract choice. Using confidential data from the National Agricultural Workers Survey (NAWS), we find evidence of matching between agricultural workers and the riskiness of their jobs (crops they harvest) based on workers' risk aversion and no matching based on ability. When controlling for matching, we find strong evidence that high risk‐averse workers choose hourly rates and low risk‐averse workers choose piece rates. We also found that high ability types choose piece rates and low ability types choose hourly rates but the evidence is weaker. (JEL J33, D82, Q12)     

RISK SOCIETY,MEDIA, AND POWER: THE CASE OF NANOTECHNOLOGY

Risk society theory posits that the transformation of industrial to postindustrial society corresponded with a transformation of societal power structured by capital, to one structured by the ability to define risk. Perceptions of risk are, in part, socially constructed and created through the framing efforts of various institutional actors. The resulting struggle over meaning is particularly acute when the issues contain many unknown elements—as is the case with emerging technologies. Applying insights from media studies, frame analysis, and organizational theory, we analyze coverage of nanotechnology (NT) in popular press, trade, and general science publications. The findings document the extent to which the risks of this emerging technology are presented or ignored across, between, and within organizational subfields. The analysis empirically assesses a key proposition of risk society theory and reveals how institutional processes reflect and reproduce power differentials. We discuss the implications of the empirical findings for sociological theories of risk and society, power, and collective action.     

RELIGIOUS REFERENCE GROUPS AND THE PERSISTENCE OF NORMATIVE BEHAVIOR: AN EMPIRICAL TEST

Reference groups and significant others are vitally important in both the formation and the persistence or change of normative as well as deviant behavior patterns. Thus one's initial religious beliefs and behavior (or lack thereof) reflect the socializing influence of the family. However, the situation may change when young people leave home for education or work, as demonstrated by research that shows decreases in religious beliefs or church attendance when young people leave home to attend college. In contrast to the pattern whereby religiosity declines in a college or university environment, we maintain that students who develop close ties with others who are religious, especially in a highly religious community, will maintain the same patterns of high commitment developed in their families. Specifically, we hypothesize that religious beliefs and participation will be positively related to (1) parents' religious beliefs and practices and (2) current friends' religious beliefs and participation. These hypotheses were tested with a sample of college students living on campus (n = 339). The data support the argument that students' current religious beliefs and behavior are related to both their parents' religiosity and the reinforcing effects of the religiosity of their current friends.     

BANKS,DEBT AND RISK: ASSESSING THE SPILLOVERS OF CORPORATE TAXES

We find evidence of tax-driven strategic allocation of debt and asset risk across group entities of European banks. We evaluate the effects that establishing tax neutrality between debt and equity finance has on systemic risk, and show that the degree of coordination in implementing the hypothetical tax reform matters. In particular, a coordinated elimination of the tax advantage of debt would significantly reduce systemic losses in the event of a severe banking crisis. By contrast, uncoordinated tax reforms are not equally beneficial precisely because national tax policies generate spillovers through cross-border bank activities. (JEL G21, G28, H25)     

THE EFFICACY OF MARITAL AND FAMILY THERAPY: AN EMPIRICAL OVERVIEW, CONCLUSIONS, AND RECOMMENDATIONS

Based primarily on the contributions to this Special Issue of JMFT, this article provides an overview of the empirical research on the efficacy of marital and family therapy for the following disorders and problems: schizophrenia; affective (mood) disorders; slected externalizing, internalizing, and pervasive developmental disorders of childhood; adolescent conduct disorder; marital distress and the prevention of divorce; alcoholism; adult and adolescent drug abuse; and various chronic adult, adolescent, and childhood physical disorders. Convincing scientific evidence supports the efficacy of broadly defined marital and family therapy for the treatment of many disorders, as well as its superiority to standard and individual treatments for certain disorders and populations. We conclude with recommendations for future research as well as for collaborative initiatives between marital/family therapists and other professionals working in the marriage and family field.     

UNDERSTANDING THE EFFECTS OF MARRIAGE AND DIVORCE ON FINANCIAL INVESTMENTS: THE ROLE OF BACKGROUND RISK SHARING

We investigate how changes in marital status affect financial investments and how these effects vary with background risk. We use detailed register‐based panel data and difference‐in‐differences estimators to benchmark common unobserved influences on financial investments. Women increase the fraction of wealth invested in stocks after marriage and decrease it after divorce, whereas men show the opposite behavior. Households whose joint labor income risk is reduced more by marriage have a higher increase in their exposure to risky assets in marriage. Thus income risk sharing in the household is important for financial risk taking and investment responses to marital transitions. (JEL G11, J12, J16, D14)