Valuing equity-indexed annuities with icicled barrier options

Inspired by the recent popularity of autocallable structured products, this paper intends to enhance equity-indexed annuities (EIAs) by introducing a new class of barrier options, termed icicled barrier options. The new class of options has a vertical (icicled) barrier along with the horizontal one of the ordinary barrier options, which may act as an additional knock-in or knock-out trigger. To improve the crediting method of EIAs, we propose a new EIA design, termed autocallable EIA, with payoff structure similar to the autocallable products except for the minimum guarantee, and further investigate the possibility of embedding various icicled barrier options into the plain point-to-point or the ratchet EIAs. Explicit pricing formulas for the proposed EIAs and the icicled barrier options are obtained under the Black–Scholes model. To the purpose, we derive the joint distribution of the logarithmic returns at the icicled time and the maturity, and their running maximum. As an application of the well-known reflection principle, the derivation itself is an interesting probability problem and the joint distribution plays a key role in the subsequent pricing stage. Our option pricing result can be easily transferred to EIAs or other equity-linked products. The pricing formulas for the EIAs and the options are illustrated through numerical examples.     

Mildly explosive autoregression with mixing innovations

In this paper, the limit distribution of the least squares estimator for mildly explosive autoregressive models with strong mixing innovations is established, which is shown to be Cauchy as in the iid case. The result is applied to identify the onset and the end of an explosive period of an econometric time series. Simulations and data analysis are also conducted to demonstrate the usefulness of the result.     

What factors influence comfort with same-sex sexuality among undergraduate social work students? Evidence from Taiwan

Abstract

This study examined bachelor of social work students’ attitudes and multiple variables to explore what factors affect students’ attitudes towards gay people in Taiwan. Generally, students felt comfortable with gay people. Heterosexual and male students showed a consistent tendency to feel less comfortable with gay people. Close referents who were same-sex-oriented or accepted gay people had positive influences on students’ comfort with gay people. Importantly, performing well in college-level education on gay and lesbian issues significantly affected students’ attitudes. The new findings have implications for social work educators in terms of designing educational environments and course activities.     

Housing needs of grandparent caregivers: grandparent,youth, and professional perspectives

ABSTRACT

This qualitative study examined the housing needs of grandparent caregivers and the youth in their care in New York State. Nine focus groups were conducted separately with grandparent caregivers (n = 46) and youth (n = 34), and interviews were conducted with key informants (n = 17) knowledgeable about housing and issues. Housing needs of greatest priority, contextual differences, and potential barriers to securing housing and social services were identified. Key themes indicated that housing challenges stem from four problem domains: the experience of poverty, which creates affordability challenges that trap grandparent caregivers and their grandchildren in unsuitable homes and unsafe neighborhoods; physical challenges of aging grandparents, which require specific housing accommodations; changes in family composition when taking in grandchildren, which necessitate moving out of prior accommodations or changing housing plans due to regulatory issues; and obstacles to obtaining needed benefits, including a lack of information, burdensome application processes, ineligibility, and a shortage of resources. These issues are discussed with implications for policy and practice.     

Missing ingredients in political advertising: The right formula for political sophistication and candidate credibility

An increase in usage of political advertising has become a global phenomenon. Previous research on political advertising has found both intended and backlash effects, indicating that the advertising effects are likely to be moderated by message and audience factors. In this study, advertising tones (i.e., positive or negative advertising) are examined. The experimental research also examines two contingent variables—the level of voters’ political sophistication and the degree of candidate credibility. The results indicate that a voter's political sophistication may result in bidirectional effects on the impact of advertising tone. Candidate credibility determines the direction of these effects. When voters face a candidate with high credibility, the influences of negative advertising and comparative advertising decrease but the effects of positive advertising are accentuated as a voter's political sophistication increases. The outcomes are reversed when voters face a candidate with low credibility. The paper concludes by discussing the implications of advertising tactics in election campaigns.     

Korean Survivors of the Japanese “Comfort Women” System: Understanding the Lifelong Consequences of Early Life Trauma

Prior to and during World War II, thousands of girls and young women were abducted from Korea and forced into sexual slavery by the Japanese government. Termed comfort women, these girls and young women suffered extreme sexual, physical, and emotional abuse and trauma. Research on this group is not well-developed and people know little of the impact of this early life trauma on the lives of these women who are now in later life. Using snowball sampling, 16 older adult survivors of the comfort women system participated in semistructured qualitative interviews. Thematic analysis was conducted to gain an understanding of the trauma that these women suffered and how it impacted their lives. Results revealed the depths of the abuse these women suffered, including repeated rapes, physical beatings, humiliation, forced surgery and sterilization, and social exclusion. These early traumatic experiences appeared to reverberate throughout their lives in their family relations, their inability to marry and to conceive children, and their emotional and physical well-being throughout the life course and into later life. The experiences of these survivors illustrate the lasting impact of early-life trauma and can guide interventions with current survivors of sexual abuse or trafficking.     

Material hardship and depression among low‐income households in South Korea: Differences by household type

With the recent trend of growing poverty in South Korea, low‐income households, particularly elderly‐ and single‐headed households, are at high risk of experiencing material hardship and depression. However, less is known about the association between material hardship and depression by household type in Korea. Using data (N = 2,913) from the Korean Welfare Panel Study and employing several methodological approaches to address the omitted variables bias, this study examined: (i) the association between material hardship and depression among low‐income households, and (ii) whether the association differed by household type. We found that experiencing material hardship was associated with a higher likelihood of being depressed. In addition, we also found that the association between material hardship and depression differed by household type. The magnitude of the association was most pronounced in single‐ and elderly‐headed households. Policy implications to improve well‐being among low‐income households were discussed.