On human capital formation with exit options

We explore the relationship between economic volatility and human capital formation within a context of migration. We show that increased variability may raise the average educational level of the population even after netting out expected migration. In particular, we demonstrate that this is the case when individuals' abilities and the economy-wide shock are uniformly distributed. We thank Frédéric Docquier, Pascal Lévy-Garboua, Abraham Lioui, and two anonymous referees for their comments. Responsible editor: Alessandro Cigno.     

Tacit Coordination in Choice Between Certain Outcomes in Endogenously Determined Lotteries

Tacit coordination is studied in a class of games in which each of n = 20 players is required to choose between two courses of actions. The first action offers each player a fixed outcome whereas the second presents her the opportunity of participating in a lottery with probabilities that are determined endogenously. Across multiple iterations of the game and trial-to-trial changes in the composition of the lottery, we observe a remarkably good coordination on the aggregate but not individual level. We further observe systematic deviations from the Nash equilibrium solution that are accounted for quite well by a simple adaptive learning model.     

Route vs. Segment: An Experiment on Real‐Time Travel Information in Congestible Networks

We report the results of an experimental study of route choice in congestible networks with a common origin and common destination. In one condition, in each round of play network users independently committed themselves at the origin to a three‐segment route; in the other condition, they chose route segments sequentially at each network junction upon receiving en route information. At the end of each round, players received ex‐post complete information about the distribution of the route choices. Although the complexity of the network defies analysis by common users, traffic patterns in both conditions converged rapidly to the equilibrium solution. We account for the observed results by a Markov adaptive learning model postulating regret minimization and inertia. We find that subjects' learning behavior was similar across conditions, except that they exhibited more inertia in the condition with en route information.     

Informal Socialization Agencies and Role Development*

The article hypothesizes that informal youth organizations influence processes of transition to adulthood by facilitating role development, that is, the conversion of child-oriented roles into adult-oriented ones. In an attempt to test the hypothesis, two variables were specified. Informality was defined in terms of seven organizational components: moratorium, symmetry, dualism, multiplexity, expressive instrumentalism, voluntarism, and pragmatical symbolism. The impact of these components on role development was measured by three indicators: Role Scope, Role Types and Role Aspects. Residential summer camps served as a quasi-experimental laboratory for the research. A positive significant relationship was found between the level of informality and level of role development, especially in the long run. Findings are explained by the particular experiences youth undergo in informal socialization contexts, in which trial and error behavior, balanced reciprocity, and normative ambivalencies are institutionalized.     

Experiments with cooperative 2 × 2 games

Nash's solution of a two-person cooperative game prescribes a coordinated mixed strategy solution involving Pareto-optimal outcomes of the game. Testing this normative solution experimentally presents problems in as much as rather detailed explanations must be given to the subjects of the meaning of threat strategy, strategy mixture, expected payoff, etc. To the extent that it is desired to test the solution using naive subjects, the problem arises of imparting to them a minimal level of understanding about the issue involved in the game without actually suggesting the solution.Experiments were performed to test the properties of the solution of a cooperative two-person game as these are embodied in three of Nash's four axioms: Symmetry, Pareto-optimality, and Invariance with respect to positive linear transformations. Of these, the last was definitely discorroborated, suggesting that interpersonal comparison of utilities plays an important part in the negotiations.Some evidence was also found for a conjecture generated by previous experiments, namely that an externally imposed threat (penalty for non-cooperation) tends to bring the players closer together than the threats generated by the subjects themselves in the process of negotiation.     

Parental time and working schedules

This paper investigates the effects of working schedules and of other characteristics (including family composition) on the time devoted by mothers and fathers to different activities with children in Canadian households, by using 1992 and 1998 Canadian Time Use Surveys. Switching regression models and models with selection allow us to simultaneously model labour market participation, type of work schedules and allocation of parental time. Working time has a negative and very significant effect on parental time. Hours worked during the day or at night exert a similar effect on parental time, but the impact of hours worked in the evening is by far larger. Time worked in the evening mainly decreases leisure and social activities with children.

Household production in a collective model: some new results

Household models estimated on labour supplies alone generally assume non-market time to be pure leisure. Previous work on collective household decision-making is extended here by taking domestic work into account in the Chiappori et al. (J Polit Econ 110(1):37–72, 2002) model. Derivatives of the household “sharing rule” can then be estimated in a similar way. Using the 1998 French Time-Use Survey, we compare estimates of labour supply functions assuming first that non-market time is pure leisure and then taking household production into account. The results are similar but more robust when household production is included. Collective rationality is rejected when domestic work is omitted.     

DUALISM AND DESIRE IN THE LANDSCAPE OF THE DIVINE

Through depictions of the landscape in the literary works of contemporary Jewish national-religious poets and writers, ambivalence in their relationship towards their natural and man-made surroundings is laid bare. The implementation of the Israeli occupation on the West Bank has rendered a profound impact on the landscape; yet for religious Jewish settlers who subscribe to the promise of redemption that will mark the unification of Jews, God and the land – such unity is desired yet unattainable. In the reading of these texts, the landscape takes on many of the qualities of Jacques Lacan's ‘objet a’ that is both a surplus of the Real and testimony to its absence. Coveted and resented, pure and profane, inclusive and alienating – the portrayed spaces and places of the Israeli occupation allude to binary poles that can be read through Bruno Latour's investigation on the nature of ‘factishes’; these render the depiction of the landscape a unison between what its dwellers are, and what they desire. Through the prism of these two approaches, the depicted landscape of the Israeli occupation that emerges from these texts is one that borrows from Zionist ideology, and yet carves for itself its own niche. In its relationship with the land and the landscape, religious-national sentiment is not yet another manifestation of a national ideology (though it both feeds from and is fed by it), but is propelled by the desire to lay claim to the Lacanian notion of a longed-for Real. In these as yet relatively unstudied texts, the landscape of occupation maps the landscape of its writers’ pleasures and pains, and that of continuous desire.     

Why Do African Households Give Hospitality to Relatives?

This empirical article describes a widespread African phenomenon—hospitality given to relatives—and explains why African households often provide long-term hospitality. A budget and consumption survey carried out in Gabon in 1994 is used to compare the characteristics of households that provide hospitality and the characteristics of guests and the members of nuclear households. A two-step procedure is proposed to determine whether hospitality decisions are made mainly by heads of household or by the extended family. The data suggest that hospitality decisions are made partly by the extended family.     

Effects of information on assessment of probabilities

In re-assessing probabilities of events on the basis of new information, it is important to keep in mind the question to which the information provided the answer.