LABOR‐MARKET HETEROGENEITY,AGGREGATION, AND POLICY (IN)VARIANCE OF DSGE MODEL PARAMETERS

Data from a heterogeneous‐agents economy with incomplete asset markets and indivisible labor supply are simulated under various fiscal policy regimes and an approximating representative‐agent model is estimated. Preference and technology parameter estimates of the representative‐agent model are not invariant to policy changes and the bias in the representative‐agent model’s policy predictions is large compared to predictive intervals that reflect parameter uncertainty. Since it is not always feasible to account for heterogeneity explicitly, it is important to recognize the possibility that the parameters of a highly aggregated model may not be invariant with respect to policy changes.     

Efficient Competition Through Cheap Talk: The Case of Competing Auctions

We consider a large market where auctioneers with private reservation values compete for bidders by announcing cheap‐talk messages. If auctioneers run efficient first‐price auctions, then there always exists an equilibrium in which each auctioneer truthfully reveals her type. The equilibrium is constrained efficient, assigning more bidders to auctioneers with larger gains from trade. The choice of the trading mechanism is crucial for the result. Most notably, the use of second‐price auctions (equivalently, ex post bidding) leads to the nonexistence of any informative equilibrium. We examine the robustness of our finding in various dimensions, including finite markets and equilibrium selection.     

Optimal Digital Rights Management with Uncertain Piracy

Many firms that sell digital copies of copyrighted materials online face a common dilemma: the use of digital rights management (DRM) to impede pirates can impose restrictions on legitimate use. We introduce a two‐period model in which the use of DRM in the first period affects the probability that a consumer finds a pirated copy in the second period; the threat of legal action reduces consumers’ consumption of pirated copies; and firms choose whether to sell, and at what prices, either strongly or weakly DRM‐protected products, or both. Furthermore, we incorporate the role of uncertainty concerning future levels of piracy. Using a two‐period model with uncertainty, we investigate a firm's optimal DRM strategies and present the optimal pricing strategy as well as product launch strategy under different market conditions. We find that one important characteristic of the optimal strategy is that it is optimal to maintain the same product line configuration strategy for both periods. We also characterize the conditions under which each strategy is optimal.     

On the dynamics of populations with two age groups

By restricting the number of age groups to two and by introducing continued fractions, the dynamics of populations with deterministically changing vital rates are completely specified at all times. Explicit expressions for the sequence of the product of population projection matrices are given. From these, relative age distribution and reproductive values to any desired accuracy are obtained as functions of the vital rates. Thus, the results given in this paper are stronger than any existing weak ergodic theorems.     

Defining Nations in Asia and Europe: A Comparative Analysis of Ethnic Return Migration Policy1

We argue that regional comparison of East Asian and European ethnic return migration policy offers important new perspectives on nationhood, nondiscrimination norms, and trans‐nationality. We find that despite international nondiscrimination norms, preferential ethnic return policy is common in both regions. These policies at least implicitly define the nation as existing across borders. However, there are significant regional differences. East Asian states use co‐ethnic preferences instrumentally for economic goals and also offer preferential treatment of co‐ethnic foreign investors. European states offer preferences to coethnics to protect these populations or express symbolic ties, sometimes at great expense. Thus, in Europe the state has an obligation to assist coethnics abroad, but in Asia, foreign coethnics assist the state.     

Generalizability of Gottman and Colleagues' Affective Process Models of Couples' Relationship Outcomes

The generalizability of Gottman et al's. (1998) affective process models was examined using a community-based sample of 85 married or cohabiting couples with at-risk backgrounds. Predictive associations between affective processes assessed at about age 21 years and relationship status and satisfaction approximately 2.5 years later were examined. The major findings of Gottman et al. failed to replicate. In particular, men's rejection of their partners' influence, the lack of men's deescalation of partners' negative affect, and women's negative start up were not predictive of relationship status. Further, differences in affective processes were found when comparing discussion sessions of the men's versus the women's chosen topics. The findings suggested that the validity and utility of the affective process models need further investigation.     

Factors Associated With Substance Use Disorders Among Traumatized Homeless Youth

This study aimed to identify homeless youths’ lifestyle and trauma-related risk factors as well as protective factors associated with alcohol use disorder or no disorder and drug use disorder or no disorder. Youth receiving homeless services in Denver (n = 201), Austin (n = 200), and Los Angeles (n = 200; N = 601) completed quantitative interviews assessing demographic information, alcohol and drug use, homeless lifestyle risk factors, trauma-related risk factors, and protective factors. Findings showed differences in trauma-related risk factors between alcohol and drug use disorders, but not homeless lifestyle risks. Protective factors predicted substance use disorders beyond risk factors. Understanding trauma-related risk and protective factors associated with substance use disorders could improve interventions.     

Complex Interrelations of Trait Vulnerabilities in Mothers and their Infants

Despite the developmental and clinical relevance of this area of inquiry, no studies have examined the interrelations of trait vulnerabilities in the affective, behavioral, and interpersonal domains between mothers and their infants. Thus, this study examined the interrelations of three trait vulnerabilities (i.e., negative affective intensity, impulsivity, and insecure attachment) between mothers and their 12‐ to 23‐month‐old infants, focusing in particular on the unique and interactive influence of these maternal trait vulnerabilities on the expression of and precursors to these traits in their infants. Mother–infant dyads (N = 101) completed several laboratory procedures, and mothers reported on their own and their infants' expressions of the trait vulnerabilities of interest. Findings from this study provide preliminary evidence for intergenerational relations between these traits and suggest that it is the confluence of trait vulnerabilities in mothers that relates to the early expression of some of these traits in infants.     

Intergenerational Exchanges of Middle‐Aged Adults With Their Parents and Parents‐In‐Law in Korea

The authors investigated patterns of support exchanges between Korean adult children and their parents and parents‐in‐law, gender differences in these patterns, and implications of children's marital quality for exchange patterns. Data were from a nationally representative sample of married adults (N = 920, age 30–59 years) with at least 1 living parent and 1 living parent‐in‐law. Latent class analysis was applied to 12 indicators of exchanges (financial, instrumental, emotional support given to and received from parents and parents‐in‐law). Five classes of exchanges were identified, 3 showing balanced patterns of exchanges with parents and parents‐in‐law across three types of support and 2 classes with unbalanced patterns (e.g., giving instrumental and financial but not emotional support). The findings revealed variability in intergenerational exchange patterns, with a mix of patrilineal traditional and balanced patterns. Significant associations of exchange patterns with adult children's marital quality suggest the importance of balanced exchanges with parents for marriage.