A Test of the Economic Strain Model on Adolescents' Prosocial Behaviors

The present study was designed to examine the links between economic strain, parental depression, parent–child connectedness, and adolescents' prosocial behaviors. The sample consisted of 478 participants (M age at Time 1=11.29 years, 51% male) recruited from the community who were mostly of European American descent (69%) and from mostly middle to upper SES families. At Time 1 parents completed measures of their own income and economic stress, depression, and connectedness with their child. At Time 1 adolescents reported on connectedness with both their mother and father. At Time 2 (1 year later) adolescents reported on their own prosocial behavior toward strangers, friends, and family. Structural equation model tests showed that economic strain was related positively to parental depressive symptoms, which in turn predicted lower levels of parent–child connectedness, which in turn positively predicted adolescents' prosocial behaviors. Discussion focuses on the family context of adolescents' positive behavioral outcomes.     

Effectiveness of potent antiretroviral therapy on progression of human immunodeficiency virus: Bayesian modelling and model checking via counterfactual replicates

Summary.  We analyse data from a seroincident cohort of 457 homosexual men who were infected with the human immunodeficiency virus, followed within the multicentre Italian Seroconversion Study. These data include onset times to acquired immune deficiency syndrome (AIDS), longitudinal measurements of CD4⁺ T-cell counts taken on each subject during the AIDS-free period of observation and the period of administration of a highly active antiretro- viral therapy (HAART), for the subset of individuals who received it. The aim of the study is to assess the effect of HAART on the course of the disease. We analyse the data by a Bayesian model in which the sequence of longitudinal CD4⁺ cell count observations and the associated time to AIDS are jointly modelled at an individual subject's level as depending on the treatment. We discuss the inferences obtained about the efficacy of HAART, as well as modelling and computation difficulties that were encountered in the analysis. These latter motivate a model criticism stage of the analysis, in which the model specification of CD4⁺ cell count progression and of the effect of treatment are checked. Our approach to model criticism is based on the notion of a counterfactual replicate data set Z ^c . This is a data set with the same shape and size as the observed data, which we might have observed by rerunning the study in exactly the same conditions as the actual study if the treated patients had not been treated at all. We draw samples of Z ^c from a null model M ₀, which assumes absence of treatment effect, conditioning on data collected in each subject before initiation of treatment. Model checking is performed by comparing the observed data with a set of samples of Z ^c drawn from M ₀.     

Adolescent Perceptions of Appropriate Parental Reactions in Moral and Conventional Social Domains

Research suggests that adolescents' ratings of the appropriateness of parental reactions are influenced by several constructs, including adolescents' perceptions of the type of parental reaction, the emotions felt by the adolescent and parental intentions. However, little is known regarding how these constructs are differentially predictive of appropriateness in different socialization contexts. One hundred and twenty‐two adolescents (mean age = 16.87 years) answered questions regarding past situations in antisocial and prosocial contexts, and in moral and conventional domains. Different parental reactions were reported across moral and conventional domains. In addition, the appropriateness of parental responses varied across domain. Namely, in antisocial contexts, parental responses of yelling and punishing were seen as more appropriate in moral than conventional domains. In prosocial contexts, no action from the parent was seen as less appropriate in conventional than moral domains. In addition, adolescents' perceptions were more strongly associated with adolescents' ratings of appropriateness in conventional than moral social domains. These findings highlight the importance of considering both moral context and social domain when examining adolescents' perceptions of appropriate parental reactions and internalization of values.     

Social Capital or Social Cohesion: What Matters For Subjective Well-Being?

The theoretical analysis of the concepts of social capital and of social cohesion shows that social capital should be considered as a micro concept whereas social cohesion, being a broader concept than social capital, is a more appropriate concept for macro analysis. Therefore, we suggest that data on the individual level should only be used to analyze the relationship between social capital, social cohesion indicators and subjective well-being and that they do not allow commenting on the level of social cohesion in a society. For this last type of analyses aggregated indicators of social cohesion have to be computed which is not the issue of this paper. Our empirical analysis is based on individual data for Luxembourg in 2008. In general, our results suggest that investments in social capital generate monetary returns (increased income) and psychic returns (increased subjective well-being) even in a highly developed and multicultural country like Luxembourg. When we are adding on the micro level variables representing the economic domain of social cohesion following Bernard (1999), then we observe that this domain also has an effect on income and on subjective well-being. Therefore, we recommend including the economic domain in any future analysis using the concept of social cohesion.     

Testing the lucas critique: A review

Claims that the parameters of an econometric model are invariant under changes in either policy rules or expectations processes entail super exogeneity and encompassing implications. Super exogeneity is always potentially refutable, and when both implications are involved, the Lucas critique is also refutable. We review the methodological background; the applicability of the Lucas critique; super exogeneity tests; the encompassing implications of feedback and feedforward models; and the role of incomplete information. The approach is applied to money demand in the u.S.A. to examine constancy, exogeneity, and encompassing, and reveals the Lucas critique to be inapplicable to the model under analysis.     

Copulas Constructed from Horizontal Sections

In analogy with the study of copulas whose diagonal sections have been fixed, we study the set _h of copulas for which a horizontal section h has been given. We first show that this set is not empty, by explicitly writing one such copula, which we call horizontal copula. Then we find the copulas that bound both below and above the set _h. Finally, we determine the expressions for Kendall's tau and Spearman's rho for the horizontal and the bounding copulas.     

DIVIDEND POLICY IN REGULATED NETWORK INDUSTRIES: EVIDENCE FROM THE EU

We study the dividend policy of firms in regulated network industries, focusing on the impact of different regulatory regimes and government control. We link payout and smoothing decisions to different regulatory mechanisms (cost‐based vs. incentive regulation) and state versus private ownership. We test our predictions on a panel of listed European electric utilities, accounting for potential endogeneity of the choice of regulatory and ownership patterns. We find that incentive‐regulated firms smooth their dividends less than cost‐based regulated firms and that they report higher target payout ratios. Consistent with the interest group theory of regulation, we find that incentive regulation schemes are less likely when the state is still an important shareholder in the sector. Additionally, our results show that government control undermines the efficiency‐enhancing effects of incentive regulation on dividend policy, for example, lower smoothing is only due to private firms. (JEL G35, L51, L32, L9)     

On Decomposing Net Final Values: Eva,Sva and Shadow Project

A decomposition model of Net Final Values (NFV), named Systemic Value Added (SVA), is proposed for decision-making purposes, based on a systemic approach introduced in Magni [Magni, C. A. (2003), Bulletin of Economic Research 55(2), 149–176; Magni, C. A. (2004) Economic Modelling 21, 595–617]. The model translates the notion of excess profit giving formal expression to a counterfactual alternative available to the decision maker. Relations with other decomposition models are studied, among which Stewart’s [Stewart, G.B. (1991), The Quest for Value: The EVA™ Management Guide, Harper Collins, Publishers Inc]. The index here introduced differs from Stewart’s Economic Value Added (EVA) in that it rests on a different interpretation of the notion of excess profit and is formally connected with the EVA model by means of a shadow project. The SVA is formally and conceptually threefold, in that it is economic, financial, accounting-flavoured. Some results are offered, providing sufficient and necessary conditions for decomposing NFV. Relations between a project’s SVA and its shadow project’s EVA are shown, all results of Pressacco and Stucchi [Pressacco, F. and Stucchi, P. (1997), Rivista di Matematica per le Scienze Economiche e Sociali 20, 165–185] are proved by making use of the systemic approach and the shadow counterparts of those results are also shown.