Disruption in Parental Co-habitation and its Effects on Short-Term,Medium-Term,and Long-Term Outcomes of Adolescents

In this paper the relationships between a disruption in parental co-habitation and various categories of adolescent outcomes over multiple time horizons are explored. Using data from the National Longitudinal Study of Adolescent Health (Add Health), we estimated the effects of a change from living with both parents to just one, on academic and employment outcomes, the likelihood to indulge in risky behaviors, mental health outcomes and body mass index measures, from less than 1 year to over 14 years after the change. Propensity score matching methods were used to control for individual characteristics and pre-existing differences in the family environment that may increase the chances of separation, and the results are compared to those obtained using ordinary least squares or probit methods. Results showed evidence of adverse effects of living with one parent in the short term, medium term and long term. Adolescents living with one parent had lower academic achievement in all term lengths, poor mental health in the short to medium term, and were more likely to engage in risky behaviors in the medium to long term.     

The FastHCS algorithm for robust PCA

Principal component analysis (PCA) is widely used to analyze high-dimensional data, but it is very sensitive to outliers. Robust PCA methods seek fits that are unaffected by the outliers and can therefore be trusted to reveal them. FastHCS (high-dimensional congruent subsets) is a robust PCA algorithm suitable for high-dimensional applications, including cases where the number of variables exceeds the number of observations. After detailing the FastHCS algorithm, we carry out an extensive simulation study and three real data applications, the results of which show that FastHCS is systematically more robust to outliers than state-of-the-art methods.     

Can Corruption Erode Confidence in Political Institutions Among European Countries? Comparing the Effects of Different Measures of Perceived Corruption

The purpose of this study is to analyze the effects of corruption on institutional confidence through testing alternative perceptions-based indexes of corruption. Scholars who have investigated this topic have often employed only indicators of corruption based on experts’ surveys. In this article we also consider a new index of corruption developed aggregating citizens’ perceptions. The first part of the paper explores the levels of corruption perceived by the citizens of EU member states, stressing the differences with the experts’ opinions. The second part tests, through a multivariate analysis, the impact of citizens’ and experts’ perceptions-based indexes of corruption on institutional confidence. The main results show that experts and citizens tend to express similar opinions on the extent of corruption in EU member states though, especially in some countries, these actors present some noticeable differences. Nevertheless, irrespective of the indexes used, more corrupt countries are characterized by lower levels of confidence in parliament and government. This relationship holds even controlling for the presence of reverse causality between corruption and confidence.     

Housing and children: simultaneous decisions?—a cohort study of young adults’ housing and family formation decision

This study contributes to earlier research on homeownership and childbearing by taking into account the potential simultaneity between these two life events. A dataset comprising three different Swedish birth cohorts suggests that these are events that are indeed simultaneous. Different tests indicate that taking this simultaneity into account gives an overall statistically significant improvement of the model fit. However, this result is most obvious for those young adults who faced increasing problems on the housing market. The childbearing decision of these cohorts also seems to be more sensitive to changes in the user cost.     

Wird die Relevanz von Ertragsteuern für die Unternehmensrechnung nach rechtlichen oder ökonomischen Kriterien beurteilt?

Textbooks in the areas of Management Accounting, Finance and Valuation treat taxes very differently. Finance and Valuation increasingly consider tax effects. Management Accounting considers taxes only if they meet certain legal “cost” criteria. These criteria follow tax law rules, but not economic rules and primarily consider tax effects of the local business tax only. This view is also reflected in recent cost accounting regulations. We present evidence from a survey of managers and chambers of commerce, according to which practitioners’ views of whether the local business tax is a cost are heterogeneous. The majority of managers do not consider the local business tax as a cost and do not pass it on to customers. The chambers of commerce however still consider the local business tax as a cost.     

Decomposition of Changes in Korean Wage Inequality, 1998–2007

South Korea experienced a steep increase in wage inequality between the Asian financial crisis in 1997 and the global financial crisis in 2008. This paper investigates the causes of the sharp change during that time period by looking at the contributions of changes in the distributions of schooling and unionization. The effects are estimated applying two robust distributional function based decomposition methods on Korean Labor and Panel Survey data for the time period 1998–2007. The results suggest changes in the distribution of schooling can explain about 10 % of the changes in the 90/50 percentile wage gap. The declining unionization rate does not have much impact on the upward trend of Korean wage inequality. In addition, aggregate decomposition results suggest that changes in labor force composition can explain a significant proportion of the total wage changes in the upper-tail of the distribution. Based on our findings we provide a list of policy recommendations to address the wage inequality issue in Korea.     

Unconditional government social cash transfer in Africa does not increase fertility

Among policymakers, a common perception surrounding the effects of cash transfer programmes, particularly unconditional programmes targeted to families with children, is that they induce increased fertility. We evaluate the Zambian Child Grant Programme, a government unconditional cash transfer targeted to families with a child under the age of 5 and examine impacts on fertility and household composition. The evaluation was a cluster randomized control trial, with data collected over 4 years from 2010 to 2014. Our results indicate that there are no programme impacts on overall fertility. Our results contribute to a small evidence base demonstrating that there are no unintended incentives related to fertility due to cash transfers.     

Realistic Free-Spins Features Increase Preference for Slot Machines

Despite increasing research into how the structural characteristics of slot machines influence gambling behaviour there have been no experimental investigations into the effect of free-spins bonus features—a structural characteristic that is commonly central to the design of slot machines. This series of three experiments investigated the free-spins feature using slot machine simulations to determine whether participants allocate more wagers to a machine with free spins, and, which components of free-spins features drive this preference. In each experiment, participants were exposed to two computer-simulated slot machines—one with a free-spins feature or similar bonus feature and one without. Participants then completed a testing phase where they could freely switch between the two machines. In Experiment 1, participants did not prefer the machine with a simple free-spins feature. In Experiment 2 the free-spins feature incorporated additional elements such as sounds, animations, and an increased win frequency; participants preferred to gamble on this machine. The Experiment 3 “bonus feature” machine resembled the free spins machine in Experiment 2 except spins were not free; participants showed a clear preference for this machine also. These findings indicate that (1) free-spins features have a major influence over machine choice and (2) the “freeness” of the free-spins bonus features is not an important driver of preference, contrary to self-report and interview research with gamblers.     

Partitioned log-rank tests for the overall homogeneity of hazard rate functions

In survival analysis, it is routine to test equality of two survival curves, which is often conducted by using the log-rank test. Although it is optimal under the proportional hazards assumption, the log-rank test is known to have little power when the survival or hazard functions cross. To test the overall homogeneity of hazard rate functions, we propose a group of partitioned log-rank tests. By partitioning the time axis and taking the supremum of the sum of two partitioned log-rank statistics over different partitioning points, the proposed test gains enormous power for cases with crossing hazards. On the other hand, when the hazards are indeed proportional, our test still maintains high power close to that of the optimal log-rank test. Extensive simulation studies are conducted to compare the proposed test with existing methods, and three real data examples are used to illustrate the commonality of crossing hazards and the advantages of the partitioned log-rank tests.     

The effect of fast and slow decisions on risk taking

We experimentally compare fast and slow decisions in a series of experiments on financial risk taking in three countries involving over 1700 subjects. To manipulate fast and slow decisions, subjects were randomly allocated to responding within 7 seconds (time pressure) or waiting for at least 7 or 20 seconds (time delay) before responding. To control for different effects of time pressure and time delay on measurement noise, we estimate separate parameters for noise and risk preferences within a random utility framework. We find that time pressure increases risk aversion for gains and risk taking for losses compared to time delay, implying that time pressure increases the reflection effect of Prospect Theory. The results for gains are weaker and less robust than the results for losses. We find no significant difference between time pressure and time delay for loss aversion (tested in only one of the experiments). Time delay also leads to less measurement noise than time pressure and unconstrained decisions, and appears to be an effective way of decreasing noise in experiments.