The Personal Costs of Subprime Lending and the Foreclosure Crisis: A Matter of Trust,Insecurity, and Institutional Deception*

Objective. Research on widespread loan failures suggests that many of the mortgage loans that were made since 2000 were of a deceptive or predatory nature. This study explores the experiences and sentiments of those who are at risk of foreclosure within a broader framework of trust, individualization, and ontological security. Methods. Interviews examine families' lending experience and how they have coped with their personal troubles that resulted from their housing crisis. Results. As many of these loans were of a deceptive or predatory nature, individuals are likely to reflect on the psychological consequences of their predicament. Although these findings suggest that these individuals have lost trust in the housing market, many have internalized their situation as a personal failure. In addition, feelings of anxiety, stress, insecurity, and uncertainty have come to characterize their experiences. Conclusions. This research calls for policy recommendations that seek to restore confidence and to ensure greater consumer protection in financial markets.     

Assessing Engineering Resilience for Systems with Multiple Performance Measures

Recently, efforts to model and assess a system's resilience to disruptions due to environmental and adversarial threats have increased substantially. Researchers have investigated resilience in many disciplines, including sociology, psychology, computer networks, and engineering systems, to name a few. When assessing engineering system resilience, the resilience assessment typically considers a single performance measure, a disruption, a loss of performance, the time required to recover, or a combination of these elements. We define and use a resilient engineered system definition that separates system resilience into platform and mission resilience. Most complex systems have multiple performance measures; this research proposes using multiple objective decision analysis to assess system resilience for systems with multiple performance measures using two distinct methods. The first method quantifies platform resilience and includes resilience and other “ilities” directly in the value hierarchy, while the second method quantifies mission resilience and uses the “ilities” in the calculation of the expected mission performance for every performance measure in the value hierarchy. We illustrate the mission resilience method using a transportation systems‐of‐systems network with varying levels of resilience due to the level of connectivity and autonomy of the vehicles and platform resilience by using a notional military example. Our analysis found that it is necessary to quantify performance in context with specific mission(s) and scenario(s) under specific threat(s) and then use modeling and simulation to help determine the resilience of a system for a given set of conditions. The example demonstrates how incorporating system mission resilience can improve performance for some performance measures while negatively affecting others.     

Synergy from configuration of global production networks: drivers,mechanisms, and outcomes

Abstract

This paper explores the network synergies available from the configuration of highly dispersed, global production networks (GPNs). Synergy theory from the literature on intra-firm and inter-firm GPNs is examined in terms of drivers, mechanisms and outcomes. An explanatory model is developed and enriched via a series of extended case studies of firms undertaking re-configuration of their GPNs during the period 2003–2014. The primary finding is that firms create synergy in their GPNs by selecting specific configuration mechanisms, in response to a certain set of external drivers, in order to achieve certain synergistic outcomes. The paper classifies the main types of drivers, mechanisms and outcomes in terms of key variables and discusses their inter-connections and relationships.     

Psychopathology in pathological gamblers seeking treatment

High rates of psychiatric symptoms have been reported in pathological gamblers. This study of psychiatric comorbidity in pathological gamblers is the first to use structured psychiatric interviews assessing DSM-III-R Axis I and II disorders. The Structured Clinical Interview for DSM III-R (SCID-P, SCID-II) was administered to 40 (25 male, 15 male) pathological gamblers seeking outpatient treatment in Minnesota for gambling, and 64 (41 male, 23 female) controls. High lifetime rates of Axis I (92%) but not Axis II (25%) psychopathology were found in pathological gamblers as compared to controls. No differences between male and female gamblers were found in rates of affective, substance use or personality disorders. Females had higher rates of anxiety disorders and histories of physical/sexual abuse. Possible associations between psychiatric disorders and pathological gambling are discussed along with gambler typologies and implications for future research.The authors wish to gratefully acknowledge the assistance of: Gary Christenson, M.D., Carol Peterson, Ph.D., William Meller, M.D., Thomas Mackenzie, M.D.     

Reports of childhood sexual abuse by adolescents and young adults: stability over time

The consistency of childhood sexual abuse (CSA) reporting was explored in this study. Two-hundred seventeen adolescents and young adults (ages 14-24) enrolled in urban health care clinics completed self-report questionnaires assessing CSA and other problem behaviors at enrollment and at 7 months. Results indicated that the stability of CSA self-report at two time points was poor (58% consistent nonreporters of CSA, 20% consistent reporters, 22% inconsistent reporters). Consistent and inconsistent reporters were differentiated on risk measures. Adolescents who endorsed more items from the CSA scale were five times more likely to be consistent reporters. In sum, adolescent CSA reporting was quite inconsistent over time. Using multi-item scales and assessing CSA at two time points enhances accuracy of reporting.     

Stages of change among ethnically diverse college students

The authors applied the stage-of-change construct in the transtheoretical model to examine the distribution of Asian (n = 869), African American (n = 373), White (n = 1322), and Hispanic (n = 535) American undergraduate students across the 5 stages of change for exercise. Stage of change varied as a function of ethnicity. Higher percentages of minorities were in the precontemplation and contemplation stages. The likelihood of being in these stages was from 43% to 82% greater for minorities than for White students. Also examined were the congruency between stage of change and self-reported levels of physical activity. Half of the sedentary students and 15.6% of the active students were misclassified by the stage-of-change procedure. Misclassification rates were higher for minority women (27.8%) than for White women (17.8%) and for Asian students (24.6%) compared with all others (20.6%). The results of this study have implications for the design of physical activity interventions based on stage of change.     

Econometric reviews

New approaches to Modeling, Specification Selection and Econometric Inference, edited by W. A. Barnett and A. R. Gallant.     

Deterrence, expected cost, uncertainty and voting: Experimental evidence

We conduct laboratory experiments to investigate the effects of deterrence mechanisms under controlled conditions. The effect of the expected cost of punishment of an individual’s decision to engage in a proscribed activity and the effect of uncertainty on an individual’s decision to commit a violation are very difficult to isolate in field data. We use a roadway speeding framing and find that (a) individuals respond considerably to increases in the expected cost of speeding, (b) uncertainty about the enforcement regime yields a significant reduction in violations committed, and (c) people are much more likely to speed when the punishment regime for which they voted is implemented. Our results have important implications for a behavioral theory of deterrence under uncertainty.