‘In a perfect world it would be great if they didn't exist’: How Australians experience payday loans

In the last few decades, payday lending has mushroomed in many developed countries. The arguments for and against an industry which provides small, short‐term loans at very high interest rates have also blossomed. This article presents findings from an Australian study to contribute to the international policy and practice debate about a sector which orients to those on a low income. At the heart of this debate lies a conundrum: Borrowing from payday lenders exacerbates poverty, yet many low‐income households rely on these loans. We argue that the key problem is the restricted framework within which the debate currently oscillates. Key Practitioner Message: ● Framing payday borrowing as a problem of market failure leads to one‐sided and ineffective regulatory responses; ● Until governments instigate real alternatives for cheap and readily available credit, and broader anti‐poverty measures, curbing access to payday lenders can have the perverse effect of increasing privation; ● For practitioners seeking to abolish payday lending, campaigns for higher wages and a liveable social welfare income are central.     

A comparison of six methods of analysing row-column designs with inter-block information

Six methods of obtaining estimates of treatment effects in a row-column design are considered. Five methods use estimates of inter-row and inter-column variation, and the remaining method is Ordinary Least Squares. Using simulation, these methods are examined to see which are most appropriate for minimising the sum of the squared differences between the estimates of the elementary treatment contrasts and their true values. Recommendations are made of which methods to use.     

Individual Prior Information in a Physiological Model of 2H8-Toluene Kinetics: An Empirical Bayes Estimation Strategy

Physiologically-based toxicokinetic (PBTK) models are widely used to quantify whole-body kinetics of various substances. However, since they attempt to reproduce anatomical structures and physiological events, they have a high number of parameters. Their identification from kinetic data alone is often impossible, and other information about the parameters is needed to render the model identifiable. The most commonly used approach consists of independently measuring, or taking from literature sources, some of the parameters, fixing them in the kinetic model, and then performing model identification on a reduced number of less certain parameters. This results in a substantial reduction of the degrees of freedom of the model. In this study, we show that this method results in final estimates of the free parameters whose precision is overestimated. We then compared this approach with an empirical Bayes approach, which takes into account not only the mean value, but also the error associated with the independently determined parameters. Blood and breath ²H₈-toluene washout curves, obtained in 17 subjects, were analyzed with a previously presented PBTK model suitable for person-specific dosimetry. Model parameters with the greatest effect on predicted levels were alveolar ventilation rate Q_PC, fat tissue fraction V_FC, blood-air partition coefficient K_b, fraction of cardiac output to fat Q_a/co and rate of extrahepatic metabolism V_max-p. Differences in the measured and Bayesian-fitted values of Q_PC, V_FC and K_b were significant (p < 0.05), and the precision of the fitted values V_max-p and Q_a/co went from 11 ± 5% to 75 ± 170% (NS) and from 8 ± 2% to 9 ± 2% (p < 0.05) respectively. The empirical Bayes approach did not result in less reliable parameter estimates: rather, it pointed out that the precision of parameter estimates can be overly optimistic when other parameters in the model, either directly measured or taken from literature sources, are treated as known without error. In conclusion, an empirical Bayes approach to parameter estimation resulted in a better model fit, different final parameter estimates, and more realistic parameter precisions.     

Optimal Purchase and Transportation Cost Lot Sizing for a Single Item

A review of the literature indicates that the traditional approach for evaluating quantity discount offerings for purchased items has not adequately considered the effect that transportation costs may have on the optimal order quantity; despite the general fact that purchased materials must bear transportation charges. The transportation cost structure for less-than-truckload (LTL) shipments reflects sizable reductions in freight rates when the shipment size exceeds one of the nominal rate breakpoints. However, the shipper must also be aware of the opportunity to reduce total freight costs by artificially inflating the actual shipping weight to the next rate breakpoint, in order that a lower marginal tariff is achieved for the entire shipment. Such over-declared shipments result in an effective freight rate schedule that is characterized by constant fixed charge segments in addition to the nominal marginal rates. Over-declared shipments are economical when the shipment volume is less than the rate breakpoint, but greater than a cost indifference point between the two adjacent marginal rates. This paper presents a simple analytical procedure for finding the order quantity that minimizes total purchase costs which reflect both transportation economies and quantity discounts. After first solving for the series of indifference points that apply to a particular freight rate schedule, a total purchase cost expression is presented that properly accounts for the actual transportation cost structure. The optimal purchase order quantity will be one of the four following possibilities: (1) the valid economic order quantity (EOQ), QC; (2) a purchase price breakpoint in excess of QC; (3) a transportation rate breakpoint in excess of QC; and (4) a modified EOQ which provides an over-declared shipment in excess of QC. Finally, an algorithm which systematically explores these four possibilities is presented and illustrated with a numerical example.     

Social Justice,Research, and Adolescence

In what ways might research on adolescence contribute to social justice? My 2014 Presidential Address identified strategies for social justice in our field. First, we need research that is conscious of biases, power, and privilege in science, as well as in our roles as scholars. Second, we need research that attends to inequities in lives of adolescents, and as scholars we need to question the ways that our research may unwittingly reinforce those inequalities. Third, we need research that attends to urgencies, that is, issues or conditions that influence adolescents’ well‐being which demand attention and action. I draw from a range of concepts and theoretical perspectives to make the case for a framework of social justice in research on adolescence.     

Risk Factors for Problem Gambling Among Indigenous Australians: An Empirical Study

Despite a long history of gambling amongst many Indigenous peoples, knowledge about contemporary Indigenous gambling is sparse. In Australia, previous studies of Indigenous gambling have been severely limited in number, scope and rigour. The research reported in this paper is based on the first Indigenous-specific quantitative gambling research undertaken in Australia since 1996 and draws on the largest sample to date. This study examined numerous aspects of gambling among Indigenous Australians. After appropriate consultations and permission, the study collected surveys from 1,259 self-selected Indigenous adults in 2011 at three Indigenous festivals, online and in several Indigenous communities. This paper draws on these data to identify problem gambling risk factors by comparing selected socio-demographic characteristics, early exposure to gambling, gambling motivations, gambling behaviour, gambling cognitions, and substance use while gambling, amongst non-problem, low risk, moderate risk and problem gamblers. A logistic regression investigated the difference between problem gamblers and all other PGSI groups. Risk factors associated with being a problem gambler were: being older, commencing gambling when under 10 years old, always being exposed to adults gambling as a child, using alcohol and/or drugs while gambling, having family and friends who gamble, having an addiction to gambling and not gambling to socialise, having a high expenditure on commercial gambling, and living in a state or territory other than NSW or QLD. Public health measures to address these risk factors are identified.     

Children’s Scales of Pleasure and Arousal

This article introduces the Children’s Scales of Pleasure and Arousal as instruments to enable children to provide judgments of emotions they witness or experience along the major dimensions of affect. In two studies (Study 1: N = 160, 3–11 years and adults; Study 2: N = 280, 3–5 years and adults), participants used the scales to indicate the levels of pleasure or arousal they perceived in stylized drawings of facial expressions, in photographs of facial expressions, or in emotion labels. All age groups used the Pleasure Scale reliably and accurately with all three types of stimuli. All used the Arousal Scale with stylized faces and with facial expressions, but only 5-year-olds did so for emotion labels.     

Does High School Employment Develop Marketable Skills?

While decades of academic research have consistently demonstrated a positive relationship between high school employment and adult earnings, the literature is empirically silent in regards to why this association exists. This study uses data from the National Longitudinal Survey of Youth 1997 (NLSY97) to examine the hypothesis that high school employment develops “marketable skills” in the form of occupation-specific human capital. By analyzing wage variation attributable to the commonality of skill portfolios across respondents’ high school and adult (age 20 and 23) occupations, this study fails to find consistent evidence that the types of skills utilized in high school employment are correlated with adult earnings. Within the framework of the human capital model, this would suggest that the positive, post-school economic gains of in-school work are largely attributable to increases in general human capital (e.g., workplace socialization, character building).     

Phrasing the Charitable Bequest Inquiry

This paper reports interest levels associated with twenty-three different phrasings of a request to leave a gift to charity in a will among 9964 survey respondents. Previous research suggests that a review of one’s life story may be an important component of bequest decision-making. Other findings suggest that mortality reminders may increase support for social norms and the pursuit of symbolic immortality. The attempts to reference symbolic immortality tested here were not effective. However, results supported avoiding extraneous death terms (“that will take effect at my death”) and using social norms (“many people like to leave a gift to charity in their wills”). The strongest support arose for the addition of the phrase “to support causes that have been important in their/your life/lives” to explain either the respondent’s or the social norm exemplars’ intent in making such a gift. Among common terms, “a gift to charity in your will” generated greater interest than substitute terms such as “bequest,” “leave a legacy” or “remember your favorite charities.”