Producing public goods in networks: Some effects of social comparison and endogenous network change

As actors participate in the production of public goods, processes of social comparison may affect the decisions about the individual contributions as well as the endogenously changing structure of an underlying social network. This leads to the transformation of an ordinary n-player Prisoner's Dilemma of collective action into an n-player coordination game. The paper uses agent-based simulations to trace the formation of public goods while varying network characteristics, such as density, segregation, or the strength of relationships. Additionally, the usage of both a forward- and a backward-looking agent model shows possible implications of different assumptions about the actors’ decision making.     

Sex, self-interest and health care priorities

In this questionnaire study, individuals were asked to prioritise publicly provided preventive health care services, one of which would be unavailable to them by virtue of their sex. The aim was to establish whether men and women would exhibit different degrees of self-interest when making a constrained choice. Around 1800 subjects from east-central England prioritised three different types of cancer screening. Most also provided written explanations for their rankings and these were classified into explanatory themes. Logistic regressions using socio-demographic and attitude data predicted the type of screening chosen as first priority. The analysis revealed that many men and women did indeed assign similar priorities to the different types of screening and, even when the priorities differed, these were often justified by similar arguments relating to technical aspects of the interventions and to self-interest. However, women were far more likely than men to prioritise a type of screening from which they themselves would benefit directly and the variations in preferences and explanations between the sexes occurred primarily because of differences in other-regarding attitudes. The bias towards screening of females was driven by women's greater worries about the disease in question and by men's “benevolent sexism” with respect to women's wellbeing.     

Goodness-of-fit test for exponentiality based on spacings for general progressive Type-II censored data

There have been numerous tests proposed to determine whether or not the exponential model is suitable for a given data set. In this article, we propose a new test statistic based on spacings to test whether the general progressive Type-II censored samples are from exponential distribution. The null distribution of the test statistic is discussed and it could be approximated by the standard normal distribution. Meanwhile, we propose an approximate method for calculating the expectation and variance of samples under null hypothesis and corresponding power function is also given. Then, a simulation study is conducted. We calculate the approximation of the power based on normality and compare the results with those obtained by Monte Carlo simulation under different alternatives with distinct types of hazard function. Results of simulation study disclose that the power properties of this statistic by using Monte Carlo simulation are better for the alternatives with monotone increasing hazard function, and otherwise, normal approximation simulation results are relatively better. Finally, two illustrative examples are presented.     

A call for more elaborate and transparent pension data to inform policy‐making: A critical examination of World Bank data for Eastern Europe

This article offers a critical analysis of the methods by means of which data relating to the performance of second pillar pension schemes are collated, compared and reported. This is done with regard to the performance of mandatory private second pillar pension funds in Eastern Europe. By critically examining data published in a number of World Bank studies, and through the identification of data problems and irregularities, the article argues that a much more elaborate and transparent approach to the collation, comparative analysis and reporting of data is needed. Required is the establishment of a consensus regarding what should represent a robust basis for making credible policy recommendations, not least with regard to pension re‐reforms in the countries of Eastern Europe and elsewhere. In the absence of such a consensus, unresolved data problems and irregularities may potentially continue to influence the formulation of incomplete national policy conclusions regarding the performance of second pillar pension funds and, in turn, the ability of policy‐makers to evaluate appropriately the need for, and assess the feasibility of implementing in a sustainable manner, pension re‐reform.     

Extending social security coverage to the rural sector in China

In late 2009 China launched an innovative, voluntary programme that by 2011 had extended pension coverage to 326.4 million people in the rural sector, including contributors and beneficiaries. It requires one contribution per year and provides a flat‐rate benefit and a contributions‐related benefit through a contributory individual account, with a government guarantee that the benefit will continue for life. The programme encourages participation of persons who do not pay income taxes, and thus have no tax incentive to participate, by providing substantial government subsidies. As a further incentive, old‐age benefits are provided to older parents when all their adult children participate in the contributory programme.     

The relationship between conflict events and commodity prices in Sudan

Though recent literature uncovers linkages between commodity prices and conflict, the causal direction of the relationship remains ambiguous. We attempt to contribute to this strand of research by studying the dynamic relationship of commodity prices and the onsets of conflict events in Sudan. Using monthly data ranging from January 2001 through December 2012, we identify a structural breakpoint in the multivariate time series model of prices of the three staple foods (sorghum, millet, and wheat) and conflict measure (number of conflict events) in September of 2011. Applying structural vector autoregression (SVAR) and linear non-Gaussian acyclic model (LiNGAM), we find that wheat price fluctuation is a root cause of conflict events in Sudan. We recommend several policy and programmatic suggestions structured toward production, subsidy, price regulation and support for rural farmers and consumers to stabilize commodity prices.     

The challenge of pension reform in Georgia: Non‐contributory pensions and elderly poverty

Georgia's national social security system offers almost universal non‐contributory basic pension coverage. The basic pension has, to date, proved effective in dealing with old‐age poverty. But Georgia's fiscal constraints and ageing population also highlight the importance of improving the pension system, in order to ensure its sustainability. This article presents policy reform choices, which suggest that, in Georgia, pension reform might include increasing the statutory retirement ages and reducing the generosity of benefits through means testing. The case of the Georgian non‐contributory basic pension might hold value for some low‐ and middle‐income countries that are considering the implementation of, or expanding coverage under, a non‐contributory pension programme.     

Replication: Cheating,loss aversion,and moral attitudes in Vietnam

We use the coin-flip paradigm and a short survey about moral attitudes under three conditions to answer three questions: (i) Do people cheat more when financial incentives are present in comparison with no incentives? (ii) Do they find it more difficult to maintain their ethical standards when they have been given a small amount of money? and (iii) Do moral attitudes predict cheating behavior? Using a sample of Vietnamese college students, we discover that a financial incentive does not matter until people feel that they are facing a loss. In addition, we do not find any evidence that moral attitudes could predict the unethical behavior in our sample. Our findings shed further light on cheating behaviors and loss aversion through an experimental investigation.     

Childhood exposure to the Second World War and financial risk taking in adult life

Adverse childhood experiences might have long-lasting effects on decisions under uncertainty in adult life. Merging the European Survey on Health, Ageing and Retirement with data on conflict events during the Second World War, and relying on region-by-cohort variation in war exposure, we show that warfare exposure during childhood is associated with lower financial risk taking in later life. Individuals who experienced war episodes as children hold less – and are less likely to hold – stocks, but are more likely to hold life insurance, compared to non-exposed individuals. Effects are robust to the inclusion of potential mediating factors, and are tested for nonlinearity and heterogeneity. Moreover, we provide evidence of hedonic adaptation to war, as high and low intensity of war exposure have comparable long-term effects. We also document that war exposure in childhood increases sensitivity to financial uncertainty since exposed-to-war individuals are less likely to hold stocks after periods of high volatility. Finally, we shed light on the most likely mechanism in the relationship between war exposure and financial risk taking – i.e., enhanced sensitivity to uncertainty – and we show that preferences, and not beliefs, channel this relationship.