Understanding Ethnic Small Business: A Case Study of Marrickville

Ethnic small businesses are an increasingly important feature of economic life in Australian cities. Which groups are most likely to go into this sector, and what are the factors which make for ‘success’? What is the price for survival in terms of working conditions and family life, and what are the fruits of success? These are some of the questions being investigated in a two-year study of ethnic small business in the Sydney region. This paper provides the first report from the study, examining the development of Greek and Vietnamese businesses in the inner suburb of Marrickville.     

Language Matching Among Mother‐child Dyads: Associations with Child Attachment and Emotion Reactivity

Links between mother‐infant affective matching and attachment security are well‐documented, but research on other types of behavioral matching and attachment security are lacking, as are studies that examine these constructs later in children's development. We examine language style matching (LSM) between mothers and their school‐aged children (N = 68), using interviews with each dyad member. As predicted, regressions revealed that higher mother‐child relational LSM was associated with greater child attachment security (operationalized as high security, low dismissal), and that higher LSM predicted smaller increases in children's electrodermal response to a relational probe 1.5 years later. Further, mother‐child relational LSM was a mediator in the indirect path between children's attachment security and children's reactivity. We discuss the potential utility of LSM as a measure of relationship quality and future studies that could refine our understanding of parent‐child language matching.     

Indiscriminate,Irrelevant, and Sometimes Wrong: Causal Misconceptions about Climate Change

Prior research demonstrates widespread persistence of beliefs about climate change causes and risks that are arguably misconceptions. They include believing pollution causes climate change, believing ozone depletion causes climate change, the combination of these two “green beliefs,” referred to as environmental problems, and believing natural climate variation significantly contributes to current climate trends. Each of these causal beliefs has the potential to weaken or divert support away from effective climate change risk mitigation policies. To assess this potential, we explore the nature and prevalence of these beliefs in the United States with a national sample of interviews (N = 77) and two national surveys (N = 1,013, N = 1,820), and apply regression and mediation analyses to explore whether they explain any of the variation in individuals’ concern or support for policy to mitigate climate change. Adherence to these beliefs—which reflect a variety of misconceptions illustrated in the interviews—differs by political ideology but is common, with over a third of interviewees mentioning one or more. Controlling for general knowledge, political ideology, and other factors, misconceptions about environmental problems are still associated directly with support for climate change policies. On average adherence to the belief that environmental problems cause climate change is associated with a 25% higher probability of policy support. In contrast, believing natural climate variability is a major recent cause of climate change is associated with a 7% lower probability of supporting climate policy, even after controlling for political ideology and other knowledge about climate change.     

HUMAN CAPITAL IN GROWTH REGRESSIONS: HOW MUCH DIFFERENCE DOES DATA QUALITY MAKE?

We construct estimates of educational attainment for a sample of 21 OECD countries. Our series incorporate previously unexploited information and remove sharp breaks in the data that can only reflect changes in classification criteria. We then construct indicators of the information content of our estimates and a number of previously available data sets and examine their performance in several growth specifications. We find a clear positive correlation between data quality and the size and significance of human capital coefficients in growth regressions. Using an extension of the classical errors in variables model to correct for measurement error bias, we construct a set of meta‐estimates of the coefficient of years of schooling in an aggregate Cobb‐Douglas production function. Our results suggest that the value of this parameter is likely to be above 0.60. (JEL: O40, I20, O30, C19)     

A Dynamic Equilibrium Model of International Portfolio Holdings

This paper develops a continuous‐time equilibrium model of a two‐country exchange economy with heterogeneous agents and nontraded goods. Nontraded goods play the role of state variables that shift the marginal utility of traded goods. This affects prices and generates dynamic hedging demands that explain the well documented home bias puzzle in international equity portfolios. When calibrated to both consumption and production data, the model is able to generate significative home bias in equity portfolios. A new methodology, based on Malliavin calculus, is presented to solve for the portfolio policies along the equilibrium path. This methodology allows one to reduce the determination of equilibrium portfolio holdings to the solution of a linear algebraic system, rather than a partial differential equation.