Let's Call it Quits: Break‐Even Effects in the Decision to Stop Taking Risks

“Chasing” behavior, whereby individuals, driven by a desire to break even, continue a risky activity (RA) despite incurring large losses, is a commonly observed phenomenon. We examine whether the desire to break even plays a wider role in decisions to stop engaging in financially motivated RA in a naturalistic setting. We test hypotheses, motivated by this research question, using a large data set: 707,152 transactions of 5,379 individual financial market spread traders between September 2004 and April 2013. The results indicate strong effects of changes in wealth around the break‐even point on the decision to cease an RA. An important mediating factor was the individual's historical long‐term performance. Those with a more profitable trading history were less affected by a fall in cash balance below the break‐even point compared to those who had been less profitable. We observe that break‐even points play an important role in the decision of nonpathological risk takers to stop RAs. It is possible, therefore, that these nonpathological cognitive processes, when occurring in extrema, may result in pathological gambling behavior such as “chasing.” Our data set focuses on RAs in financial markets and, consequently, we discuss the implications for institutions and regulators in the effective management of risk taking in markets. We also suggest that there may be a need to consider carefully the nature and role of “break‐even points” associated with a broader range of nonfinancially‐focused risk‐taking activities, such as smoking and substance abuse.     

Economics of Home Activities

This paper explores the contribution of unpaid home activities to the economic welfare of the family. It begins with a review of the conventional economic framework on how household decisions are made. It deals with the modifications which take into account unpaid work in the home. The concept of ‘imputed income’ from home activities (like housework and child care) is then introduced before several possible methods of measuring that income are assessed. The final section of the paper analyses some policy implications which follow from recognizing imputed income as part of family income.     

Adolescents' Emotional Experiences of Mother–Adolescent Conflict Predict Internalizing and Externalizing Symptoms

Research on adolescent emotion has generally focused on expressions of emotion; however, there are reasons to believe that adolescents' experiences of emotion may be related to adolescent development in unique and important ways. This study examined the relation of adolescents' emotional experiences of conflict with their mothers to their internalizing and externalizing symptoms at three time points, each a year apart. After participating in videotaped conflict negotiation tasks with their mothers, adolescents (N=80) watched the videotape of their interactions and used a joystick to make continuous ratings of how negative, positive, or neutral they felt during the discussions. Hierarchical Linear Modeling was used to assess relations among their continuous emotion ratings and their internalizing and externalizing symptoms 1 year before the interaction task, at the time of the interaction task, and 1 year later. Adolescents' externalizing symptoms at the time of the conflict task were associated with negative emotion that decreased across the conflict discussion. Relations between emotional experience and internalizing symptoms a year later were moderated by adolescent gender, revealing that a tolerance for increasing negative emotion predicts fewer future internalizing symptoms for girls. The importance of adolescents' ability to tolerate negative emotion during normal developmental conflicts is discussed.     

Healing Victims and Offenders and Reducing Crime: A Critical Assessment of Restorative Justice Practice and Theory

The current article explores the growing restorative justice movement. It examines promising research indicating that face‐to‐face dialogue with crime victims and offenders may work to restore and heal participants, and reduce recidivism. In addition, the article assesses the current state of restorative justice theory, suggesting new avenues for future theory and research. I show how current thinking about restorative justice can benefit from a micro‐sociological reframing, focusing on the production of collective emotion and micro‐dynamics of interaction.     

The Cost of High Unemployment

In response to R. A. B. Leaper's challenge in the last issue of this journal we present a report which we have just prepared for the BBC North-East. We believe that a better understanding of the costs of high unemployment to the country is needed to inform decisions on how much we can afford to pay to tackle the problem. In the final section of the paper we show how this evidence can be of value in costing policy options.
The last detailed costings of unemployment were published in 1982 for the financial year 1981/82. In February 1982 it appears that a political decision was taken not to publish the latest Treasury estimate updating their 1981 calculations. Since then numerous parliamentary questions on the subject have received very limited answers disputing the validity of the whole exercise.     

EFFECTS ON THE PRIMARY CAREGIVER WHEN A FAMILY MEMBER EXPERIENCES ACQUIRED BRAIN INJURY

This pilot study examines a random sample of 20 families with adults who have experienced acquired brain injury. Information about family structure pre and post accident is obtained by structured and open ended interview along with identification of the role of the primary caregiver. Analysis of the role of primary caregiver demonstrates the importance of the role of mothers and wives and the extent to which greatly increased responsibilities are acquired post accident. These increased responsibilities are a burden and alter the women's lifestyle such that their quality of life, like that of the person with brain injury, is severely impaired. This is a distinct but often unheralded outcome of acquired brain injury.     

Book Review: The Human Relationship with Nature: Development and Culture. Peter H. Kahn,Jr. Cambridge,MA: The MIT Press, 1999. Hardbound, 252 pages including appendices

Population and Environment -