The effects of adoption disclosure on the adaptation of Korean adoptive families

The main goal of this study is to examine the effects of adoption disclosure on the adaptation of Korean adoptive families using a two stage equation model. The results of this study indicate that there is a self-selection bias between disclosed and closed adoptive families. Yet, even after considering this selection bias, adoption disclosure was associated with the positive outcomes of adoptive families. Also, the estimates in the treatment effect model were found to be very similar to those of the regression model, indicating that the degree of self-selection bias between these groups was not so strong as to distort the effects of adoption disclosure and other predictors.     

Simple Estimators for Invertible Index Models

This article considers estimation of the unknown linear index coefficients of a model in which a number of nonparametrically identified reduced form parameters are assumed to be smooth and invertible function of one or more linear indices. The results extend the previous literature by allowing the number of reduced form parameters to exceed the number of indices (i.e., the indices are “overdetermined” by the reduced form parameters. The estimator of the unknown index coefficients (up to scale) is the eigenvector of a matrix (defined in terms of a first-step nonparametric estimator of the reduced form parameters) corresponding to its smallest (in magnitude) eigenvalue. Under suitable conditions, the proposed estimator is shown to be root-n-consistent and asymptotically normal, and under additional restrictions an efficient choice of a “weight matrix” is derived in the overdetermined case.     

SOVEREIGN DEBT CRISIS IN A MONETARY UNION: ACCOUNTING FOR EXCESSIVE DEBT,HOUSING BUBBLES,AND THE TRANSMISSION OF CRISES

Despite vast empirical documentation of the recent sovereign debt crisis in southern Europe, there is little research accounting for the following stylized facts in a single coherent framework: continuous borrowing, high growth, housing bubbles, and current account deficits since the beginning of the European Monetary Union ending with a sudden crisis and subsequent contagion of crisis. We fill this gap by proposing a model and fitting it to the data. Using a growth model with collateral constraints of small peripheral economies in the institution of a monetary union, we analyze the multilayer moral hazards underlying excessive borrowing. Since housing bubbles can support a constant loan‐to‐value (LTV) ratio lower than LTV limits, peripheral economies can lock into a steady‐state Ponzi growth equilibrium with high growth and current account deficits, but these economies become vulnerable to crises. We identify the “self‐fulfilling crisis region” (SFCR), in which the economy grows fast with a seemingly safe LTV ratio, but with a vulnerability to crises. Moreover, a crisis in one sector propagates to other sectors by endogenously expanding their SFCRs. We derive some policy implications on LTV regulations and market psychology. Finally, our calibration exercise presents how bubbles develop and burst along with contagion across sectors, accounting for the data. (JEL E44, F34, O16)     

Transforming Korea into a multicultural society: reception of multiculturalism discourse and its discursive disposition in Korea

Since 2005, multicultural-based words such as multicultural society, multicultural family, and multicultural education have grown explosively in Korean society. Due to this social trend, adoption of the term multiculturalism has become a trend within the government and press to explain current social changes in Korea. Nevertheless, there have been few efforts to tackle multiculturalism as a crucial political project or a considerable academic theme of discussion. Thus, this study aims to examine how multiculturalism discourse in Korea has been received and draws its discursive disposition. It argues how the media, especially the press, incorporate other crucial issues such as ‘diversity’, ‘human rights’, and ‘minority politics’ in terms of multiculturalism. To analyse, a total of 275 journal articles were selected and scrutinised. This study contextualises Korean multiculturalism and suggests a meta-picture of the discursive economy of multiculturalism in Korea.     

CAPACITY CONSTRAINED EXPORTERS: IDENTIFYING INCREASING MARGINAL COST

This study revisits a central assumption of standard trade models: constant marginal cost technology. The presence of increasing marginal costs for exporters introduces significant market interdependence across borders missing from traditional models of international trade that rely on constant marginal cost technology. Such market interdependence represents an additional channel through which local shocks are transmitted globally. To identify increasing marginal cost at the level of the firm, we build in flexible production assumptions that nest increasing, decreasing, and constant marginal cost technology to an otherwise standard international trade model. We derive an estimating equation that can be taken directly to the data. Our structural equation explicitly guides our inference on the shape of the marginal cost curve from estimated coefficients. The results suggest that increasing marginal cost is predominant at the firm level. Moreover, utilizing plant‐level information on physical and financial capacity constraints, we find that the degree of increasing marginal cost is significantly exacerbated by both types of constraints. The evidence suggests that access to larger markets through greater international integration may not have the expected welfare gains typically predicted in standard models. (JEL F12, F14)     

Social investment,social service and the economic performance of welfare states

This article begins with an examination of the role of social services as the key instrument of social investment strategy, presenting an empirical analysis of its impact on economic performance. A pooled time series, cross‐section analysis was conducted with the data of 15 welfare states from 1990 to 2007 under the ‘social investment hypothesis’ that more social service orientedness brings about a greater positive effect on the economy. The results show that a larger share of social service spending in the total social expenditure – more social service orientedness – contributes to economic growth and labour market performance, whereas a larger aggregate size of the welfare state may have a negative effect on employment. In conclusion, this study suggests that the relatively ambiguous welfare strategy of social investment could be clarified as a ‘transition from income security to livelihood security’ in which emphasis is placed on social service. Key Practitioner Message: ● This study suggests that the key instrument of social investment strategy is social service; ● The results show that more social service orientedness contributes to economic growth and labour market performance.