Measuring risk aversion with lists: a new bias

Various experimental procedures aimed at measuring individual risk aversion involve a list of pairs of alternative prospects. We first study the widely used method by Holt and Laury (Am Econ Rev 92(5):1644–1655, 2002), for which we find that the removal of some items from the lists yields a systematic decrease in risk aversion and scrambles the ranking of individuals by risk aversion. This bias, that we call embedding bias, is quite distinct from other confounds that have been previously observed in the use of the HL method. It may be related to empirical phenomena and theoretical developments where better prospects increase risk aversion. Nevertheless, we also find that the more recent elicitation method due to Abdellaoui et al. (Theory Decis 71:63–80, 2011), also based on lists but using only one and the same probability in the list, does not display any statistically significant bias when the corresponding items of the list are removed. Our results suggest that methods other than the popular HL one may be preferable for the measurement of risk aversion.     

Arrow’s theorem of the deductible: Moral hazard and stop-loss in health insurance

The logic of Arrow’s theorem of the deductible, i.e. that it is optimal to focus insurance coverage on the states with largest expenditures, remains at work in a model with ex post moral hazard. The optimal insurance contract takes the form of a system of “implicit deductibles”, resulting in the same indemnities as a contract with full insurance above a variable deductible positively related to the elasticity of medical expenditures with respect to the insurance rate. In a model with a predefined ceiling on expenses, there is no reimbursement for expenses below the stop-loss amount. One motivation to have some insurance below the deductible arises if regular health care expenditures in a situation of standard health have a negative effect on the probability of getting into a state with large medical expenses.     

Working for Legality: Employment and Migrant Regularization in Europe

Recent programs to regularize undocumented migrants suggest the increasing role of employment as a requirement for foreigners to legally reside in Europe. Taking as illustrations the cases of Spain, France, Austria, Belgium and Germany, this article examines how regularization policies frame work. Employment provisions follow a civic‐performance frame that breaks with the criterion of vulnerability. While secure forms of employment paying standard wages are privileged, the crisis has made such jobs even less accessible to migrants seeking to regularize or maintain their status. Residence permits granted through legalization have become increasingly temporary and conditional, often involving repeated transitions in and out of illegality. A vicious circle of “disintegration” thus threatens to set in where employment precariousness becomes both the source and the consequence of legal precariousness.

Policy Implications

• The article shows how employment provisions are tightly linked to policies of “earned legalization”.
• The article shows that employment can be part of a broader regularization policy emphasizing ties to the host country.
• The article brings attention to potential conflicts between access requirements based on migrant vulnerability, and those based on migrant integration.
• The article warns against the exclusionary workings of employment‐based regularization in times of economic downturn.

     

Is Less More? Number of Siblings and Frequency of Maternal Activities with Preschool Children

ABSTRACT

We use the German Socio-Economic Panel to investigate to what extent the number of siblings has on the frequency of cognitively stimulating activities mothers undertake with their children aged 2 to 3 and 5 to 6. The resource dilution model assumes that this relationship should be negative. We introduce the resource augmentation hypothesis and argue that increasing sibship size can also have a positive effect when efficiency gains, the public good character of maternal activities, reallocation of maternal time, and child care by older siblings are considered. Our results from intraindividual and between family analyses suggest that resource dilution is unavoidable in large families, but that resource-augmenting processes are also at work. The relationship between the number of siblings and activity frequency is not linear and can be reversed from negative to positive in smaller families depending on the presence of younger siblings.     

Satisfacción residencial en un barrio remodelado: Predictores físicos y sociales

Resumen

El trabajo que aquí se presenta consiste en una investigación llevada a cabo en un área de remodelación, con dos objetivos primordiales: Por un lado, comprobar en que medida las categorías de «casa», «barrio» y «vecinos» son dimensiones importantes para el estudio de satisfacción residencial; y en segundo lugar, encontrar predictores físicos y sociales de dicho constructo a través de un instrumento válido a tal fin. Los resultados obtenidos en una muestra de 232 amas de casa, confirman la relevancia de las categorías mencionadas anteriormente. En cuanto al segundo objetivo, un análisis de regresión multiple pone de manifiesto que son cuatro los factores que más explican la satisfacción residencial en este área concreta, siendo el «aislamiento térmico» el más importante de ellos.     

Does Race Matter? Implicit and Explicit Measures of the Effect of the PR Spokesman's Race on Evaluations of Spokesman Source Credibility and Perceptions of a PR Crisis' Severity

One rationale offered for why there are fewer people of color in public relations is that publics would respond less positively if racial minorities represented the public face of an organization. To determine the plausibility of this rationale, this study employed a 2 (race: Black vs. White spokesman) × 2 (performance history: with prior crisis vs. no prior crisis) × 2 (crisis type: sports vs. product recall) within-subjects experiment (N = 64), using both implicit (reaction time) and explicit (self-report) measures. Contrary to expectations, participants rated Black spokesmen as significantly more credible than White spokesmen using explicit measures. Most significantly, implicit tests, using response time measures, revealed that heuristic cues, such as the spokesman's race, have an influence on perceptions in the absence of a performance history, i.e., when no other information must be cognitively processed. But in cases where there is a crisis history, i.e., when there is more pertinent information, racial cues play less of a role.     

Environment,Security, and Terrorism in the Trinational Frontier of the Southern Cone

This article analyzes the transformations of notions of governmentality, security, and sovereignty behind recent processes of securitization in the trinational frontier of the Southern Cone, which encompasses the cities of Puerto Iguaz? (Argentina), Ciudad del Este (Paraguay), and Foz do Igua?? (Brazil). It examines how early concerns with security that were primarily focused on the territorial integrity of nation-states have been replaced with security concerns of a more global nature, which call into question established mechanisms of control, particularly those related to the defense of national borders. It examines how environmental concerns are increasingly becoming conflated with other current forms of securitization such as terrorism, popular unrest, and narcotraffic and it analyzes devastating effects of these processes on peoples of the South, particularly the poor.     

‘If we stop,the world stops’: the 2018 feminist strike in Spain

ABSTRACT

Under the slogan ‘If we stop, the world stops’, the Spanish feminist movement organized a 24-hour labour, education, care and consumption women’s strike on 8 March 2018 that amazed both international and national public opinion. After all, Spain has traditionally been a Catholic country and its feminist movement is barely institutionalized, lacking both structure and funding. The present profile sets out to account for the 8M strike and points to a long organization process within a broad protest cycle as keys to its success.     

Civil society challenges the global food system: the International Monsanto Tribunal

ABSTRACT

The global food system has severe implications for human health, soil quality, biodiversity, and quality of life. This paper provides an analysis on how transnational alliances challenge the global food system. We illustrate this by focusing on the activities and hearings of the International Monsanto Tribunal (IMT), held in the Hague in 2016. The IMT provided a platform for civil society and enabled transnational alliances to demand attention for local struggles and legal disputes in relation to Monsanto’s products. With the involvement of independent and renowned experts, the knowledge exchange between local victims and civil society was enhanced, and the IMT reinforced social movement’s goals towards demanding justice for the negative effects associated with the global food system. The advisory opinion determined that Monsanto’s practices are in violation with human rights standards. The IMT exemplified that there is an immediate need for structural change in the current global food system.