Cross‐Section Regression with Common Shocks

This paper considers regression models for cross‐section data that exhibit cross‐section dependence due to common shocks, such as macroeconomic shocks. The paper analyzes the properties of least squares (LS) estimators in this context. The results of the paper allow for any form of cross‐section dependence and heterogeneity across population units. The probability limits of the LS estimators are determined, and necessary and sufficient conditions are given for consistency. The asymptotic distributions of the estimators are found to be mixed normal after recentering and scaling. The t, Wald, and F statistics are found to have asymptotic standard normal, χ², and scaled χ² distributions, respectively, under the null hypothesis when the conditions required for consistency of the parameter under test hold. However, the absolute values of t, Wald, and F statistics are found to diverge to infinity under the null hypothesis when these conditions fail. Confidence intervals exhibit similarly dichotomous behavior. Hence, common shocks are found to be innocuous in some circumstances, but quite problematic in others. Models with factor structures for errors and regressors are considered. Using the general results, conditions are determined under which consistency of the LS estimators holds and fails in models with factor structures. The results are extended to cover heterogeneous and functional factor structures in which common factors have different impacts on different population units.     

Risk preferences and changes in background risk

We present two theorems that yield necessary and sufficient conditions for first- and second-degree stochastic dominance deteriorations of background risk to increase risk aversion with respect to foreground risk. We require that any change in a foreground risk that is undesirable remains so after a background risk changes in a way that is either unfair, undesirable in the sense of reducing expected utility, or undesirable in the sense of increasing expected marginal utility. Our results thus characterize utility functions that are, respectively, vulnerable, proper, or standard with respect to changes in background risk.

The Role of Distrust in Offshore Safety Performance

Trust is recognized as a potentially important factor in safety within high-risk industries. However, little detailed empirical research has explored how trust operates in these contexts to influence worker safety performance. The present study addresses this by (i) identifying the target (occupational group) in which trust is most important for good safety, and (ii) establishing the "type" of trust (trust or distrust) with the greatest impact on safety performance. A questionnaire survey of 203 UK offshore gas workers' attitudes of trust and distrust toward four occupational groups (workmates, supervisors, offshore managers, and contractors) and an operating company was conducted. Logistic regression analysis identified attitudes toward offshore management as the strongest predictor of safety performance at an industry level. At an installation level, safety performance was best predicted by attitudes toward contractors and workmates. Further analysis revealed attitudes of distrust as better predictors of safety performance compared to attitudes of trust. These findings suggest that safety professionals should pay more attention to the role of distrust in safety performance. They also suggest that safety initiatives should target attitudes toward specific groups for optimal effectiveness.     

A cross-cultural comparison of death anxiety: a brief note

Data are reported from samples of undergraduates around the world who have been administered Templer's Death Anxiety Scale. Data from 24 American samples and from 16 nations were identified. Strong sex differences were found and an association between the scores of men and women.     

A Periodic Inventory Model for Stocking Modular Components

We study the benefit obtained by exploiting modular product design in fulfilling exogenous demand for both a complete assembly and its components in a service parts inventory system. Our goal is to reduce overall service system costs by allowing assembly and/or disassembly (A/D) to occur at some unit cost per A/D action. In an extensive set of computational experiments, we compare a naïve stocking and operating policy that treats all items independently and ignores the modular product structure and related A/D capability to the optimal base stock policy, and to a policy that allows A/D from the naïve stocking levels. While extensive computational analysis shows that the optimal base stock policy improves the system cost between 3 to 26% over the naïve approach, simply allowing A/D from the naïve stocking levels captures a significant portion (an average of 67%) of the naïve–optimal gap. Our computational results demonstrate that the optimization shifts the component‐assembly mix from the naïve levels and that limiting A/D capacity affects this mix. Limiting A/D capacity can actually increase the expected number of A/D actions (versus the uncapacitated case), since the optimization shifts stocking levels to reduce the probability that “too many” actions will be required.     

DIALOGUES OF THE NATIONS: Revisiting Visions and Its Critics

Critics of Visions in this symposium raise three general questions. The question of inclusiveness is addressed by linking pertinent criteria to the book's aims; that of justifying national traditions by reviewing pertinent evidence; and that of the viability of dialogue by arguing that responsive communication does not entail full agreement. A number of particular issues the critics raise are addressed by the book's arguments regarding the relation of the discipline of sociology to its philosophical background, the international setting of early sociology, Durkheim's individualism, Weber's distinction between naturalism and interpretability, Marx's treatment of Feuerbach and of nationalism, and the relation between power and knowledge. This response concludes by explicating the proposal that the time may be ripe to rejoin a number of the elements of Aristotelian social science that had been delegated to various national traditions of social theory in the modern era.     

Cost/quality tradeoffs for control procedures in information systems

An analytical framework is presented to study the cost/benefit tradeoffs of alternative internal control scenarios designed to ensure quality of outputs from information systems. A mathematical model is used to evaluate the impact that various alternatives have on system performance and cost. The model can be used to compare the benefits gained from enhanced processing with those arising from more effective internal control procedures. Model variables under the control of system designers include placement and effectiveness of internal control procedures, cost and quality of processing activities, both manual and computerized, and cost and quality of correction procedures. The model incorporates a penalty cost incurred by failure to detect and correct errors. The analytical process is illustrated through application to a specific information system.     

Feelings About Fracking: Using the Affect Heuristic to Understand Opposition to Coal Seam Gas Production

The rapid expansion of coal seam gas (CSG) extraction across Australia has polarized public opinion about the risks, benefits, and the future of the industry. We conducted a randomized controlled experiment to assess the impact of CSG messaging on opposition to the CSG industry. Residents of a major Australian city (N = 549), aged between 21 and 87 years, were randomly assigned to view one of three brief video messages (pro‐CSG, anti‐CSG, or a neutral control) sourced from the Internet. They then completed measures assessing CSG affective associations, perceived risks and benefits of CSG, and degree of opposition to the CSG industry. A subsample of 317 participants also completed the measures of affect, risks, benefits, and opposition two weeks following the initial message presentation. Message type significantly predicted message effects in a pattern consistent with the affect heuristic model, although overall, the message effects were modest in magnitude. Respondents who viewed the anti‐CSG video (relative to the control) reported more negative affective responses to CSG, perceived higher risks, fewer benefits, and greater opposition to the CSG industry. Those who viewed the pro‐CSG video (relative to the control) reported stronger positive affective responses to CSG, perceived more CSG benefits and fewer risks, and expressed less opposition to the industry. The effects persisted over a two‐week interval for the anti‐CSG message, but not for the pro‐CSG message. Our findings suggest that people's risk perceptions and views about the acceptability of CSG are malleable by messaging that targets affective pathways.     

What does empathy sound like in social work communication? A mixed‐methods study of empathy in child protection social work practice

It is widely accepted that empathy is important for social work practice, yet there are multiple dimensions of empathy and comparatively few studies of empathy as a component of social work skill. To date, published studies have been quantitative, and as a result, we know little about how social workers demonstrate empathy in practice or what skilled empathic practice in child and family social work might sound like. This study contributes to the development of understanding of empathy as a social work skill through a mixed‐methods analysis of 110 audio recordings of meetings in a child protection service between workers and parents, applying a coding framework for analysis. Findings indicate that workers who demonstrate higher levels of empathy skill use more open questions and reflections in their communication with parents. Further, they demonstrate curiosity about and make efforts to understand parents' often difficult experiences, including a focus on emotions. That the majority of workers were found not to demonstrate a high level of empathy skill presents concerns to be considered by the social work profession. A deeper understanding of empathy presents an opportunity for an increased focus in organizations to enable workers to demonstrate empathy towards families they work with.