Education and anomalies in decision making: Experimental evidence from Chinese adult twins

We estimate the effects of education on two dimensions of decision making behavior—risk and time—beyond those considered to be normal-ranged to encompass behavioral anomalies with respect to expected utility as well as time consistency. We conduct a number of incentivized choice experiments on Chinese adult twins to measure decision making behavior, and use a within-twin-pair fixed-effects estimator to deal with unobservable family-specific effects. The estimation results show that a higher education level tends to reduce the degree of risk aversion towards moderate prospects, moderate hazards, and longshot prospects. For anomalies under risk and uncertainty, college graduates exhibit significantly more Allais-type behavior compared to high school dropouts, while high school graduates exhibit more ambiguity aversion as well as a familiarity preference relative to high school dropouts. For decision making involving time, a higher education level tends to reduce the degree of impatience, and to reduce behavioral anomalies including hyperbolic discounting, dread, and hopefulness. The experimental observations suggest that people with a higher education level tend to exhibit more behavioral anomalies in risk attitudes but fewer behavioral anomalies involving time, hence implying that education has multi-functions in preference formation and human capability building. This study contributes to the understanding of the nature of these behavioral anomalies and the roles of education in human decision making.     

Dynamically Consistent Preferences with Quadratic Beliefs

This article characterizes a family of preference relations over uncertain prospects that (a) are dynamically consistent in the Machina sense and, moreover, for which the updated preferences are also members of this family and (b) can simultaneously accommodate Ellsberg- and Allais-type paradoxes.Replacing the "mixture independence" axiom by "mixture symmetry" proposed by Chew, Epstein, and Segal (1991) for decision making under objective risk, and requiring that for some partition of the state space the agent perceives ambiguity and so prefers a randomization over outcomes across that partition (proper uncertainty aversion), preferences can be represented by a (proper) quadratic functional. This representation may be further refined to allow a separation between the quantification of beliefs and risk preferences that is closed under dynamically consistent updating.     

Work, welfare and the attack on the welfare state: the mixing of politics and policy

This article considers the current ideological and political attack against the floor of benefits for poor families in the United States. It examines a number of punitive approaches to the treatment of families on welfare that were developed in the United States in the late 1980s and the 1990s and contends that such policies will not effectively deter the dysfunctional behavior of some of the poor. Rather these policy developments reflect an attack on current national policies of developing an income maintenance floor that seeks to economically sustain poor families, albeit often inadequately. The article contends that current welfare proposals by conservatives and social liberals are not satisfactory for dealing with the problems of the welfare poor and offers suggestions for dealing with these deficits. It also notes that criticisms of welfare state protection for the poor raised in the United States are much more categorical than those raised in Sweden.     

A cultural model of pregnancy: a comparison between Mexican physicians and working-class women in Tijuana,B.C.

At the time this research was conducted, it was reported that a significant percentage of women in Tijnana, B.C. (18.6%) who gave birth in a hospital did so having had little or no prenatal care [Núcleo Regional para el Desarrollo de Sistemas de Salud (NUREDESS) 1993]. Why does this underutilization of prenatal care occur? Frequently, explanations for health-seeking behavior among poor and working-class Mexican women tend to focus on cultural beliefs. This research examined the accuracy of such a cultural explanation by discerning the cultural model of prenatal care of a group of working-class Mexican women and comparing it to the biomedical model, as represented by a group of Mexican physicians. The results demonstrate that both groups actually share a similar model of prenatal care, one rooted in biomedicine. Therefore, it is important to consider broader, structural and economic variables as key factors that influence prenatal health care behavior.     

Reflections on the Statistical Analysis of Personality and Norms in War, Peace, and Prejudice: Are Deviant Minorities the Problem?

The compelling quality of the Global Change simulation study ( Altemeyer, 2003 ), in which high RWA (right-wing authoritarianism)/high SDO (social dominance orientation) individuals produced poor outcomes for the planet, rests on the inference that the link between high RWA/SDO scores and disaster in the simulation can be generalized to real environmental and social situations. However, we argue that studies of the Person × Situation interaction are biased to overestimate the role of the individual variability. When variables are operationalized, strongly normative items are excluded because they are skewed and kurtotic. This occurs both in the measurement of predictor constructs, such as RWA, and in the outcome constructs, such as prejudice and war. Analyses of normal linear statistics highlight personality variables such as RWA, which produce variance, and overlook the role of norms, which produce invariance. Where both normative and personality forces are operating, as in intergroup contexts, the linear analysis generates statistics for the sample that disproportionately reflect the behavior of the deviant, antinormative minority and direct attention away from the baseline, normative position. The implications of these findings for the link between high RWA and disaster are discussed.     

Downscaling,Upgrading or Linking? Ways to Realize Micro‐Insurance

Micro‐insurance is seen by many as a promising tool to improve the social protection of low‐income earners. This assumption is supported by the positive experience of existing micro‐insurance schemes. At the same time, however, many schemes have failed to organize sustainable insurance arrangements that are affordable for the poor and near‐poor. The question is thus which institutions are best able to arrange for micro‐insurance. Formal institutions such as public agencies or commercial companies are usually too distant in social and spatial terms from the target group of micro‐insurance and face severe difficulties in downscaling. Informal institutions, however, such as self‐help groups or grassroots NGOs, usually lack the know‐how, experience and capacities to design and manage insurance arrangements. They need powerful partners to upgrade. An alternative would be that formal and informal institutions cooperate in providing micro‐insurance. This article argues that such a linking approach is superior to both the downscaling and upgrading approach.     

Social Exclusion, Inequality and Social Work

This paper sets out the environment of inequality in which social work and the poor have recently operated. It explores pragmatic and idealist arguments concerning whether or not the poor need social work. Finally, policy solutions developed in consultation with social service users and carers are suggested in relation to poverty and social exclusion. Social exclusion can be linked to relative poverty as exclusion from economic and social norms. However, there is a wider brief in our own government’s publications and those of Europe, of examining how people are excluded from actions and policies of agencies who are there to support them. This paper will retain the concepts of poverty as lack of material income, and inequality as the gap between the rich and the poor, while being aware of the policy implications for social service users and carers of the more comprehensive process of being shut out partially or fully from social, economic, political and cultural systems. The debates around social work, social exclusion and inequality that follow establish: that some of the poor do need social work; that the poverty of social service users is related to policies that have restructured welfare in Britain; that the reason for individuals approaching or being referred to social services are complex but are likely to include financial deprivation as a key contributory factor; that if the poor do need social work, advocacy is essential rather than social work being seen as concerned only with social control—taking children into care, mentally ill people into hospitals, and advising the DSS on the suitability of claimants for benefits. Finally, the discussion turns to new policy agendas on social exclusion instigated by the Labour government. What positive difference can such policies make for social service users, their carers and social workers?.     

Intertemporal choice under timing risk: An experimental approach

This paper investigates how individuals evaluate delayed outcomes with risky realization times. Under the discounted expected utility (DEU) model, such evaluations depend only on intertemporal preferences. We obtain several testable hypotheses using the DEU model as a benchmark and test these hypotheses in three experiments. In general, our results show that the DEU model is a poor predictor of intertemporal choice behavior under timing risk. We found that individuals are averse to timing risk and that they evaluate timing lotteries in a rank-dependent fashion. The main driver of timing risk aversion is nothing but probabilistic risk aversion that stems from the nonlinear treatment of probabilities.     

Free trade and cheap theatre: sources of politics for the nineteenth-century London poor

The very poor and unskilled workers of mid-nineteenth-century London – often termed the ‘casual poor’ due to their irregularity of employment – have been generally portrayed as entirely apolitical, and to have exhibited purely mob responses to the issues of the day. This article suggests that we have not properly understood or ‘read’ the evidence we have of the attitudes towards politics of these people, and that we have assessed their actions purely within the framework of our own understandings. In particular, their views about Chartism, the major working-class political movement of the period, have been a key to how they have been perceived. But our understanding of these views has been distorted by what appeared to be their lack of knowledge of the ‘real’ aims of the movement. Instead, if we look at other types of evidence, such as from the theatre, we can find clues as to how their understandings of such conflicts may simply have been different, and so be able to explain in much more rational terms the actions and beliefs of this historically inarticulate group.     

Gender gaps in STEM in Japanese academia: The impact of research productivity,outside offers,and home life on pay

To understand differences in labor market outcomes between genders, economists must examine a complex array of potentially significant factors, such as institutional context, productivity differences, child-bearing and home production, and bargaining behavior. Many of these factors are not well captured by standard data sources. We use a new survey of academics in Japan to better understand the sources of gender pay differences. We find a 6% pay gap which persists when we control for research productivity, despite an institutional context shaped by explicit salary tables. We do not find a motherhood wage penalty, and the gender salary we document is not affected by differences in outside job offers.     

Contradictory Logics in Asset‐building Discourse: Habits,Identities and Discipline

Asset‐building as an anti‐poverty policy emphasizes helping the poor to save and accumulate wealth so as to promote future financial well‐being. This article focuses on how asset‐building discourse is practiced at the frontlines and its implications for how workers come to address issues of poverty. Drawing on qualitative data from a case study of a matched savings programme in the USA, the study finds that asset‐building discourse as enacted by workers is fundamentally contradictory: it promotes the idea that the poor can acquire financial literacy, but simultaneously works to discipline the poor to thoughtlessly save out of habit. More priority is placed on inculcating the habit of saving rather than teaching economically rational decision‐making. These findings indicate that asset‐building is consistent with a neo‐liberal outlook that focuses on disciplining the poor to be market compliant irrespective of whether their participation in market‐based activities effectively addresses the challenges of living in poverty.     

Behavioral Treatment of Chronic Psychiatric Patients

Behavioral treatments for hallucinations and delusions, aggressive and destructive responses, inappropriate social behavior, poor self-care and grooming, and deficient recreational and vocational skills in chronic psychiatric patients are reviewed. Consideration is given to the short-term, long-term, and generalized effects of these interventions. Three case studies illustrate behavioral procedures of consumable reinforcement, response cost, graphic feedback, differential reinforcement of other behavior (DRO), and overcorrection. The potential contribution of clinical social workers in applying such programs on a psychiatric unit is discussed.     

Psychological Factors in Terrorism and Counterterrorism: Individual, Group, and Organizational Levels of Analysis

This article explores psychological factors involved in terrorism and counterterrorism on individual, group, and organizational levels of analysis. On the individual level, we describe attempts to understand terrorist behavior as a form of psychopathology and/or as reflecting a unique constellation of personality traits. We also consider whether there exists a general motivational basis for participating in terrorism. On the group level of analysis, we address the process of shared reality construction, social influence involved in recruitment of new members to terrorist organization, their indoctrination into terrorist ideology, and the use of language in creating terrorism warranting norms. On the organizational level, we consider issues of training, logistics, and cost effectiveness as they apply to the decisions to launch or abstain from terrorist activities. We conclude by considering the implications of our analysis for possible ways and means for countering terrorism.     

中国的制度变迁、阶级结构转型和收入不平等：1978-2005

本文结合制度主义理论与新马克思主义的阶级分析方法,提出在中国社会分层研究中“把阶级带回来”的观点。根据户口制度、单位制度、干部身份制和私有产权等造成转型时期中国不平等的重要制度性因素,建立一个以对不同形式生产性资产的占有为基础的即新马克思主义取向的中国阶级分类方式,并在经验层面展示了其较之于其他分类法的优越性。研究认为,中国正在发生的制度转型对社会不平等秩序的重塑表现为不同形式的生产性资产,即劳动力、资本、组织、技术/权威等四种所有权作用的相对转变,从而导致阶级结构的转型和贫富差距的拉大。     

Normative, Gain and Hedonic Goal Frames Guiding Environmental Behavior

This article discusses new developments about goal-dependent framing and multiple goal frames (sometimes also called "multiple motives"), which are highly relevant for understanding environmental behavior. We introduce goal-framing theory, which postulates that goals "frame" the way people process information and act upon it. Three goal frames are distinguished: a hedonic, gain, and normative goal frame. In general, multiple goals are active at any given time, which may (or may not) be compatible; that is, the strength of the focal goal may be influenced by other goals that are in the background. Based on an extensive review of studies in environmental psychology, we suggest those conditions under which each goal frame may be dominant in influencing environmental behavior. In the environmental context, normative goal frames imply acting pro-environmentally, while gain and hedonic goal frames often result in not acting in an environmentally sound manner. Next, we argue that pro-environmental behavior may be promoted by strengthening normative goals or by making gain and hedonic goals less incompatible with normative goals. Finally, based on goal-framing theory, we suggest questions to be addressed in future research.     

Poverty eradication programs in Indonesia: Progress,challenges and reforms

This study explores the progress of and the challenges to poverty eradication programs in Indonesia by analyzing various social assistance programs and subsidies. Earlier poverty eradication programs such as food-based assistance and energy subsidies were only designed to increase households’ purchasing power. Later, the government also developed more advanced programs, such as conditional cash transfer, school assistance, and health insurance contribution assistance, to address long-run poverty by improving human capital quality. Common challenges of the existing programs remain, including inaccurate target the poor and lack of complementarity between programs. An exercise using a dynamic Computable General Equilibrium model shows that integrating programs into the conditional cash transfer reduces poverty further in rural and urban areas.     

The Psychology of Environmentally Sustainable Behavior: Fitting Together Pieces of the Puzzle

This paper considers the main features of four general psychological approaches to the analysis of environmentally sustainable behavior (rational–economic, social dilemmas, attitude–behavior models, and applied behavioral analysis), and focuses on the problems inherent in applying each approach to this issue. It also details the utility of a holistic Social–Ecological Framework that I believe is useful for analyzing environmentally sustainable behavior. This approach draws on concepts from ecological psychology such as Gibson's (1979) notion of "affordances," and shows how such a method can account for and help us understand the limitations of traditional psychological approaches to environmentally sustainable behavior, and provides a general guiding framework for the formulation of environmental policy decisions and intervention programs.     

Mind Reading, Deception and the Evolution of Kantian Moral Agents

Classical evolutionary explanations of social behavior classify behaviors from their effects, not from their underlying mechanisms. Here lies a potential objection against the view that morality can be explained by such models, e.g. Trivers' reciprocal altruism . However, evolutionary theory reveals a growing interest in the evolution of psychological mechanisms and factors them in as selective forces. This opens up perspectives for evolutionary approaches to problems that have traditionally worried moral philosophers. Once the ability to mind-read is factored-in among the relevant variables in the evolution of moral abilities and counted among the selection pressures that have plausibly shaped our nature as moral agents, an evolutionary approach can contribute, so I will argue, to the solution of a long-standing debate in moral philosophy and psychology concerning the basic motivation for moral behavior.     

The Taxonomy, Model and Message Strategies of Social Behavior

In an era of rising social awareness, both academics and practitioners have been concerned about the effectiveness of pro‐social consumer influence strategies. The main assumption here is that for social marketing to succeed one must first understand the factors underlying pro‐social consumer behavior. Firstly, drawing on two dimensions (i.e. the welfare receiver and restitution intention) the authors first identify four types of social behavior (altruism, compensation, reciprocity, and egoism). Next, the model describes social behavior as a result of preceding social behavior motivation and actual social behavior intention. Norms and economic evaluation have an impact on social behavior motivation, which in turn influences social behavior intention, eventually leading to actual social behavior. Actual control factors, such as the availability of resources and opportunities, decide whether social behavior intention can really translate into actual social behavior. Finally, authors propose message strategies (incorporating message appeal, message frame and central/peripheral processing) for each type of social behavior.     

Development of the Distinction Among the "Desirable", Morality, and Personal Preference

Israeli children of grades 1, 4, and 7 were asked, with respect to nine types of behavior, whether such behavior is bad, whether a child should be brought up to behave otherwise (and why), whether a child should be required to behave otherwise, and whether such behavior should be punished. Analysis of their responses and the reasons they provided supports the hypothesized distinction between three categories of behaviors or reasons for action—morality, “the desirable” and personal preferences—in terms of two dimensions: desirability and obligatoriness. Specifically, moral norms were perceived as both desirable and strictly obligatory, and were justified in terms of inherent goodness/badness and the welfare of others. Behaviors in the category of “the desirable” were perceived as desirable but not obligatory, and were justified in terms of self-development and long-term utility. Behaviors in the category of personal preferences were perceived as non-obligatory and neither desirable nor undesirable, and were justified in terms of personal choice. This distinction was less sharp among first graders, who exhibited some tendency to view desirables and preferences, as well as moral behavior, as obligatory. In light of these findings, it is suggested that the young child's “intuitive morality” relates only to the dimension of desirability and not to that of obligatoriness, which seems to develop somewhat later.