Pre‐Going Private Ownership Around the World

Going private transactions are often highly leveraged, and give rise to potential agency conflicts among existing shareholders. But who exactly are those shareholders, and under what legal conditions are these transactions more likely to occur? We examine ownership structure prior to going private transactions in 33 countries around the world from 2002 to 2014. The data indicate strong and consistent evidence that pre‐going private ownership is characterized by higher institutional and corporate ownership. Family ownership lowers the probability of a public to private transaction. Stronger creditor rights increase the probability of going private, particularly for whole company and institutional buyouts.     

Predicting the Risk of Biological Invasions Using Environmental Similarity and Transport Network Connectedness

Understanding the risk of biological invasions associated with particular transport pathways and source regions is critical for implementing effective biosecurity management. This may require both a model for physical connectedness between regions, and a measure of environmental similarity, so as to quantify the potential for a species to be transported from a given region and to survive at a destination region. We present an analysis of integrated biosecurity risk into Australia, based on flights and shipping data from each global geopolitical region, and an adaptation of the “range bagging” method to determine environmental matching between regions. Here, we describe global patterns of environmental matching and highlight those regions with many physical connections. We classify patterns of global invasion risk (high to low) into Australian states and territories. We validate our analysis by comparison with global presence data for 844 phytophagous insect pest species, and produce a list of high‐risk species not previously known to be present in Australia. We determined that, of the insect pest species used for validation, the species most likely to be present in Australia were those also present in geopolitical regions with high transport connectivity to Australia, and those regions that were geographically close, and had similar environments.     

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.     

The Value of a Statistical Life for Risk‐Averse and Risk‐Seeking Individuals

This article estimates the value of a statistical life (VSL) for Chile under the hedonic wage method while accounting for individual risk preferences. Two alternative measures of risk aversion are used. First, risk aversion is directly measured using survey measures of preferences over hypothetical gambles, and second, over observed individual behaviors that may proxy for risk preferences, such as smoking status, are used. I reconcile the results with a theoretical model of economic behavior that predicts how the wage‐risk tradeoff changes as risk aversion differs across individuals. The VSL estimates range between 0.61 and 8.68 million dollars. The results using smoking behavior as a proxy for risk attitudes are consistent with previous findings. However, directly measuring risk aversion corrects the wage‐risk tradeoff estimation bias in the opposite direction. The results are robust to other observed measures of risk aversion such as drinking behavior and stock investments. Results suggest that, consistent with the literature that connects smoking behavior with labor market outcomes, smoking status could be capturing poor health productivity effect in addition to purely risk preferences.     

Day care in working-class ethnic neighborhoods: implications for social policy.

Implications for social service planning are contained in the findings of a survey to determine preferences in day care for children in working-class families of Polish and Italian extraction.     

Comparison as a Universal Learning Action

This article explores ‘comparison’ as a universal metasubject learning action, a key curricular element envisaged by the Russian Federal State Educational Standards. Representing the modern learner’s fundamental pragmatic skill embedding such core capacities as information processing, critical thinking, robust decision-making, and effective problem solving, the universal learning action of ‘comparison’ has become a new professional challenge for educators, in terms of both understanding the underlying theoretical framework and ensuring that appropriate instructional models are deployed. The author seeks to clarify either of these aspects by providing a plain discussion of how the basic mechanisms of comparison as a cognitive device can be incorporated into clear and simple classroom aids and algorithms supporting goal-directed learning.     

Transient detailed balance and product form for reaction networks

This paper explores the boundary of the set of reaction networks that have an exact transient (truncated) multidimensional Poisson or product-form distribution for the number of particles of different types. Motivated by the birth–death process, we introduce the notions of transient detailed balance and delay functions, and use these notions to obtain the novel transient product-form distribution in a coagulation-fragmentation process for polymers with a tree-like structure from that of the pure coagulation process.     

Trend smoothness achieved by penalized least squares with the smoothing parameter chosen by optimality criteria

This work presents a study about the smoothness attained by the methods more frequently used to choose the smoothing parameter in the context of splines: Cross Validation, Generalized Cross Validation, and corrected Akaike and Bayesian Information Criteria, implemented with Penalized Least Squares. It is concluded that the amount of smoothness strongly depends on the length of the series and on the type of underlying trend, while the presence of seasonality even though statistically significant is less relevant. The intrinsic variability of the series is not statistically significant and its effect is taken into account only through the smoothing parameter.