Even Risk-Averters may Love Risk

A decision maker bets on the outcomes of a sequence of coin-tossings. At the beginning of the game the decision maker can choose one of two coins to play the game. This initial choice is irreversible. The coins can be biased and the player is uncertain about the nature of one (or possibly both) coin(s). If the player is an expected-utility maximizer, her choice of the coin will depend on different elements: the nature of the game (namely, whether she can observe the outcomes of the previous tosses before making her next decision), her utility function, the prior distribution on the bias of the coin. We will show that even a risk averter might optimally choose a riskier coin when learning is allowed. We will express most of our results in the language of stochastic orderings, allowing comparisons that are valid for large classes of utility functions.     

Two Problems of the Graduate Program

The establishment of the BSW as the beginning professional degree including the “base” content of professional education is precipitating structural changes in social work education that could provide a unique opportunity for the establishment of a truly “advanced” two-year MSW. However, the path of least resistance currently practiced forecloses this alternative in favor of advanced standing and a one-year MSW for BSW graduates and the vague possibility of a practice doctorate as the way to upgrade professional education. This dilemma/opportunity is examined here, a case is made for an upgraded two-year MSW, and strategy to facilitate its implementation is suggested.     

How might sovereign bond yields in Asia Pacific react to US monetary normalisation under turbulent market conditions?*

This paper examines the potential impact of US monetary normalisation on sovereign bond yields in Asia Pacific. We apply the quantile vector autoregressive model with principal component analysis to the assessment of tail risk of sovereign debt, which may not be detectable using traditional OLS-based analysis. Our empirical evidence suggests that US Treasury bond yields can have a significant impact on sovereign bond yields in the region, an important channel through which monetary normalisation by the Fed can affect Asia-Pacific economies. Increases in sovereign bond yields will not only compromise the ability of the sovereigns in the region to service their debt but also translate into higher costs of borrowing for the rest of economy. The results show how much the outsized impact could potentially be if US monetary normalisation somehow turns out to be much more disorderly than expected.     

Culture and Wellbeing: The Case of Indigenous Australians

A recurring theme in Indigenous affairs in Australia is a tension between maintenance of Indigenous culture and achievement of socio-economic ‘equity’: essentially ‘self-determination’ versus ‘assimilation’. Implicit in this tension is the view that attachment to traditional cultures and lifestyles is a hindrance to achieving ‘mainstream’ economic goals. Using data from the National Aboriginal and Torres Strait Islander Social Survey, stronger attachment to traditional culture is found to be associated with enhanced outcomes across a range of socio-economic indicators. This suggests Indigenous culture should be viewed a part of the solution to Indigenous disadvantage in Australia, and not as part of the problem.     

A forensics of wishing: technology assessment in the age of technoscience

If one considers the Collingridge dilemma to be a dilemma awaiting a solution, one has implicitly abandoned a genuinely historical conception of the future and adopted instead a notion of the future as an object of technical design, the realisation of technical possibility or as wish-fulfilment. The definition of technology assessment (TA) as a successful response to the Collingridge dilemma renders it a technoscience that shares with all the others the conceit of being able, supposedly, to shape the future. An alternative way of pursuing TA begins with an analysis of our age of technoscience, including its impoverished conception of the future. A critical appreciation of this conception gives rise to a forensics of wishing.     

The monopolistic polluter under environmental liability law: incentives for abatement and R&D

This article analyzes the output, abatement, and investment decisions made by a monopolistic polluter under environmental liability law. The model applied considers both integrated and end-of-pipe abatement technologies. We find that in the case of fixed technology, in many instances negligence produces more favorable results than strict liability in terms of social welfare. The reason is that output under strict liability is always less than first-best output, whereas output under negligence is not similarly limited. However, this ranking of liability rules may be reversed when technology is endogenous. Under such conditions investment in both integrated and end-of-pipe abatement technologies under negligence is guided by motives foreign to the social planner, whereas the polluter’s calculus under strict liability is similar to that of the social planner.