REPUTATION EFFECTS IN THE MARKET OF CERTIFIERS: EVIDENCE FROM THE AUDIT INDUSTRY

Certifiers verify unobserved product characteristics for buyers and thereby alleviate informational asymmetries and facilitate trade. When sellers pay for the certification, however, certifiers can be tempted to bias their opinion to favor sellers. Indeed, accounting scandals and inflated credit ratings suggest sellers may prefer to select dishonest certifiers. I test this proposition by estimating the effect of adverse quality signals on audit demand. Exploiting the natural experiment of Arthur Andersen's demise, I find that auditors with worse quality signals experience a fall in demand. This suggests that reputation effects are at work even in the presence of conflicts of interest. (JEL L15, L8, M4)     

Ní cothram na Féinne é sin: Cricket,Lexicography and Cultural Purity in Ireland1

This article explores the relationship between the game of cricket and the Irish language in Ireland. In our analysis, dictionaries are invoked as indices of formations of cultural purity and political power, documents of defiance, tools of codification, assertions of confidence, representations of linguistic identity. By examining the treatment of the term “cricket” in Irish language dictionaries from the eighteenth-century to the present day, we find an index of cultural values, responding and adapting to ongoing changing cultural power and capital. This demonstrates how the game, and its translated presence in the lexicography of the native language, functions as a form of cultural hybridity in the nineteenth-century, yet is cleansed in the twentieth as part of the process of Irish cultural purity (as it fights for an established postcolonial nationhood). The article offers a new way of understanding social and linguistic conventions, in the context of the colonial/postcolonial, and how such conventions function in the field of sport. Given the dominance (with the exception of India) of English as the lingua franca of sport's colonial and ludic diffusion, the article's ability to access and interrogate the processes of inclusion/exclusion in the linguistic and sporting Irish setting marks it out as an original and innovative way of understanding how cultural transfers occurred and were later annulled.     

Anarchy in Iceland? The global left,pirates and socialists in post-crash Icelandic politics

ABSTRACT

The historically stable Icelandic political party system has been uprooted since the 2008 financial crisis. In this paper, we explore to what extent the global left movement of anarchists and socialists has manifested in Icelandic politics in this period. We provide a historical overview, starting with the 2008 financial crisis which brought to power the first entirely left-wing government in the country's history, but also gave birth to numerous new political parties that alternately united and divided socialists, anarchists and reformers. The Pirate Party spearheaded this movement from the 2013 elections, but internal disputes have plagued the party in recent years, and both they and the Left Greens now have a fresh challenge from the left: the Socialist Party. We conclude that the current prospects for a united uprising of these movements are dim, although history suggests that they can work together when focusing on common goals of political reform.     

Forgone labor participation and earning due to childbearing among Norwegian women

Individual-level retrospective data from the Family and Occupation Survey of 1988 are used to assess the time diverted from gainful employment because of the presence of children in two Norwegian birth cohorts. We find that a two-child mother born in 1950, whose births occurred in her early twenties, lost 6.6 women-years up to age 37, compared to a childless woman. By matching information on registered income with the survey data, we estimate that her lost income amounts to $151,000 at 1990 prices. After taxation the loss is $98,000. Women with fewer than 12 years of schooling seem to forgo more labor market activity by reason of childbearing than do their better-educated counterparts. The pattern is less clear with respect to the loss of income.     

Lévy‐based Modelling in Brain Imaging

Abstract. A substantive problem in neuroscience is the lack of valid statistical methods for non‐Gaussian random fields. In the present study, we develop a flexible, yet tractable model for a random field based on kernel smoothing of a so‐called Lévy basis. The resulting field may be Gaussian, but there are many other possibilities, including random fields based on Gamma, inverse Gaussian and normal inverse Gaussian (NIG) Lévy bases. It is easy to estimate the parameters of the model and accordingly to assess by simulation the quantiles of test statistics commonly used in neuroscience. We give a concrete example of magnetic resonance imaging scans that are non‐Gaussian. For these data, simulations under the fitted models show that traditional methods based on Gaussian random field theory may leave small, but significant changes in signal level undetected, while these changes are detectable under a non‐Gaussian Lévy model.     

COSTLY INTERMEDIATION AND CONSUMPTION SMOOTHING

This paper studies quantitatively how intermediation costs affect household consumption loans and welfare. Agents face uninsurable idiosyncratic shocks to labor productivity in a production economy with costly financial intermediation and a borrowing limit. Reducing intermediation costs has two effects: (1) For a given decrease in the interest rate on borrowing, agents' ability to smooth consumption over time improves. (2) The demand for loans increases, which increases the interest rate. The net welfare gain of reducing intermediation costs from 3.927% (U.S. level) to 1% is about 1.14% of equivalent consumption in the baseline economy for an endogenous interest rate and 1.90% for an exogenous interest rate. The gains are distributed unevenly: households at the bottom wealth decile improve welfare by 3.96% and 5.86% of equivalent consumption, while those at the top decile have welfare gains of 0.35% and 0.2%, respectively. Sufficiently high intermediation costs eliminate borrowing and hence the welfare gain of reducing costs is not substantial. The welfare analysis includes transitional dynamics between steady states. (JEL D91, E60, G38)     

Language educators’ regard for variation in late modernity: Perceptions of linguistic variation in minority contexts

This article investigates language educators’ regard for linguistic variation in a minority language context. It argues that teachers function as language norm authorities who may influence the linguistic practices and ideologies of students, and that this role takes on added significance in minority language contexts where access to the target language may be limited. Data are presented from a study on the linguistic ideologies of Irish language educators – ‘new speakers’ who acquired the language mainly thorough the education system. Participants’ ideologies on variation in modern spoken Irish were explored using semi‐structured interviews incorporating a speaker evaluation design. Although participants valorise traditional dialectal varieties of Irish, in line with established hierarchies, ideological frameworks are contested so that new ways of using Irish are beginning to gain overt acceptance. The results reveal the manner in which hierarchies of language variation in the Irish language are in flux in our contemporary late‐modern period.     

Armed activism as the enactment of a collective identity: the case of the Provisional IRA between 1969 and 1972

This paper argues that micro-mobilization into armed activism is strongly motivated by the enactment of an identity that people already have prior to their mobilization as a way to strongly assert and emphasize individual agency in the face of major changes in the political context. Empirically, it advocates that those who joined the Provisional IRA between 1969 and 1972 did so in order to respond to a need for action by a northern nationalist community that stemmed from a perceived, alleged or actual, sense of second-class citizenship. We suggest that the importance of identity rather than ideology can also help us to explain why IRA members and former members overwhelmingly accepted the compromise peace settlement of the 1990s despite the fact that core ideological goals had not been realized. We conclude by suggesting avenues for future research outside the Irish context.