The Swiss social insurance system: Social security and grass‐roots democracy

The foundations of Switzerland's social insurance system can be traced to 1890 when a public referendum voted the inclusion of an article into the Federal Constitution that gave the executive the task of creating a sickness and accident insurance scheme. Currently, as in other European countries, the Swiss social insurance system is facing challenges as a result of rising health costs and demographic shifts, which are placing a growing burden on both public finances and private households. To reach policy decisions to address these challenges, the Swiss system is distinguishable from those of its European neighbours because of a continuing tradition of political decision‐making based on grass‐roots democracy: through referenda, the Swiss people remain directly responsible for the development of the national social insurance system. Importantly, not only might this unique feature of Swiss democracy lead the Swiss people more readily to accept and identify with their social insurance system but it may offer a sound democratic base upon which to build a consensual approach to address the policy challenges that lie ahead.     

Functional Upgrading and Value Capture of Multinational Subsidiaries

This paper investigates the relationship between the value capture of multinational subsidiaries and functional upgrading, which is defined as a diversification of employment from primary business functions to higher value adding activities such as ICT, R&D, marketing or logistics. By combining survey-based business function indicators with longitudinal accounting data for a representative sample of multinational subsidiaries located in six Central and Eastern European countries (CEECs), we assess the impact of functional upgrading on foreign subsidiaries' value capture. The results provide robust evidence that the breadth as well as the scope of functional upgrading induces an upward shift of subsidiaries' value added. The effect of functional upgrading is stronger in the earlier phases after entry of the foreign investor, while the long-term growth trend remains unaffected.     

The Sources of Belief in Personal Capability: Antecedents of Self-Efficacy in Private Adaptation to Flood Risk

Self-efficacy is one of the strongest and most consistent drivers of private flood mitigation behavior; however, the factors influencing self-efficacy in the context of flooding remain unclear. The present study examines three potential antecedents of self-efficacy: personal and vicarious experiences of floods or building-related events, social norms for private flood preparedness, and personal competencies such as technical abilities and social skills. While controlling for other drivers in a protection motivation theory (PMT) framework, these antecedents are tested as precursors of self-efficacy and intentions to improve flood resilience. Structural equation modeling is applied to conduct mediation analyses with survey data of 381 flood-prone households in Austria. Contrary to theoretical expectations, personal and vicarious experiences do not predict self-efficacy, presumably because rare flood events and changing hazard characteristics do not facilitate generalizable performance accomplishments. Social norms strongly and consistently influence self-efficacy, especially for actions observable by others, and also directly influence protective responses. Personal competencies increase self-efficacy and support protective action, particularly with regard to preventive and structural measures. The strength and direction of the antecedents of self-efficacy as well as of other PMT determinants vary between general and specific protective responses. This study provides important insights for risk managers, suggesting that interventions involving social norms and personal competencies can be effective in stimulating self-efficacy and, in turn, private flood mitigation. Interventions and research should clearly differentiate between general intention and the implementation of specific measures, and should address cumulative, synergistic, or tradeoff interrelations between multiple measures.     

Family Migration and Subsequent Employment: The Effect of Gender Ideology

A substantial body of evidence shows gender asymmetry in family migration, with women more likely to leave employment following migration than men. Gender ideologies, although yet not tested directly, have been proposed as one determinant for these asymmetries. Analyzing longitudinal data from the British Household Panel Survey (1991–2008) on 3,333 dual‐earner couples with dyadic multilevel regression models, the author examined whether the association of family migration with subsequent employment is moderated by the gender ideologies of both partners. The existing literature is enriched by illustrating that women's gender ideologies do not moderate the association, but women with egalitarian partners are less likely to leave employment after family migration than those with traditional partners. No significant effects for men were found. Even after controlling for both partners' gender ideologies and relevant control variables, a substantial gender difference in the risk of leaving employment after family migration remains, meriting further research.     

Efficacy of newer medications for lower urinary tract symptoms attributed to benign prostatic hyperplasia: a systematic review

We conducted a systematic review to evaluate the efficacy and adverse effects of newer drugs used to treat lower urinary tract symptoms (LUTS). The drugs were either Food and Drug Administration (FDA) approved for benign prostatic hyperplasia (BPH) or not FDA approved for BPH but have been evaluated for treatment of BPH since 2008. We searched bibliographic databases through September 2017. We included randomized controlled trials (RCTs) lasting one month or longer published in English. Outcomes of interest were LUTS assessed by validated measures. Efficacy was interpreted using established thresholds indicating clinical significance that identified the minimal detectable difference. Twenty-three unique, generally short-term, RCTs evaluating over 9000 participants were identified. Alpha-blocker silodosin and phosphodiesterase type 5 inhibitor tadalafil were more effective than placebo in improving LUTS (moderate strength evidence) but these drugs had more adverse effects, including abnormal ejaculation (silodosin). Anticholinergics were only effective versus placebo when combined with an alpha-blocker. Evidence was generally low strength or insufficient for other drugs. Evidence was insufficient to assess long-term efficacy, prevention of symptom progression, need for surgical intervention, or long-term adverse effects. Longer trials are needed to assess the effect of these therapies on response rates using established minimal detectable difference thresholds, disease progression, and harms.     

Choosing Principal Components: A New Graphical Method Based on Bayesian Model Selection

This article approaches the problem of selecting significant principal components from a Bayesian model selection perspective. The resulting Bayes rule provides a simple graphical technique that can be used instead of (or together with) the popular scree plot to determine the number of significant components to retain. We study the theoretical properties of the new method and show, by examples and simulation, that it provides more clear-cut answers than the scree plot in many interesting situations.     

Testing for a break in persistence under long-range dependencies and mean shifts

We show that the CUSUM-squared based test for a change in persistence by Leybourne et al. (J Time Ser Anal 28:408–433, 2007) is not robust against shifts in the mean. A mean shift leads to serious size distortions. Therefore, adjusted critical values are needed when it is known that the data generating process has a mean shift. These are given for the case of one mean break. Response curves for the critical values are derived and a Monte Carlo study showing the size and power properties under this general de-trending is given.     

Sorting and Decentralized Price Competition

We investigate the role of search frictions in markets with price competition and how it leads to sorting of heterogeneous agents. There are two aspects of value creation: the match value when two agents actually trade and the probability of trading governed by the search technology. We show that positive assortative matching obtains when complementarities in the former outweigh complementarities in the latter. This happens if and only if the match‐value function is root‐supermodular, that is, its nth root is supermodular, where n reflects the elasticity of substitution of the search technology. This condition is weaker than the condition required for positive assortative matching in markets with random search.     

The Effects of Ethnic Minority Adolescents' Ethnic Self‐Identification on Friendship Selection

This study investigated the effects of ethnic minority adolescents' ethnic self‐identification (host country, dual, or heritage country) on friendship choices among ethnic majority and minority peers. Hypotheses were derived from similarity–attraction and social identity theory and tested using longitudinal social network data from 1,004 middle school students (five schools) in Germany. Results showed that ethnic minority adolescents' ethnic self‐identification affected friendship selection beyond ethnic homophily. While host country and dual identification was beneficial with respect to friendships with both ethnic majority and minority peers, heritage country identification was detrimental to relations with both of them.