Sovereign bond holdings and monetary policy operations in the euro area

This paper investigates the relationship between sovereign bond holdings of banks and refinancing operations by the ECB for countries in the euro area. We use data collected by Bruegel as well as a new dataset compiled from the annual statements of national central banks to estimate panel regression models. Our findings support the hypothesis that the ECB’s refinancing operations have increased resident banks’ exposure to domestic sovereign bonds. This is in line with the moral suasion theory advanced in the literature. These results strengthen the case for regulatory changes aimed at reducing the sensitivity of banks to sovereign risk.     

Connectivity‐informed adaptive regularization for generalized outcomes

One of the challenging problems in neuroimaging is the principled incorporation of information from different imaging modalities. Data from each modality are frequently analyzed separately using, for instance, dimensionality reduction techniques, which result in a loss of mutual information. We propose a novel regularization method, generalized ridgified Partially Empirical Eigenvectors for Regression (griPEER), to estimate associations between the brain structure features and a scalar outcome within the generalized linear regression framework. griPEER improves the regression coefficient estimation by providing a principled approach to use external information from the structural brain connectivity. Specifically, we incorporate a penalty term, derived from the structural connectivity Laplacian matrix, in the penalized generalized linear regression. In this work, we address both theoretical and computational issues and demonstrate the robustness of our method despite incomplete information about the structural brain connectivity. In addition, we also provide a significance testing procedure for performing inference on the estimated coefficients. Finally, griPEER is evaluated both in extensive simulation studies and using clinical data to classify HIV+ and HIV? individuals.     

Halo and association effects: Cognitive biases in teacher attunement to peer‐nominated bullies,victims, and prosocial students

This study examined whether teachers’ perceptions of students’ behavior (referring to halo effects) and the behavior of teacher‐perceived friends (referring to association effects) influenced teachers’ ability to recognize students identified as bullies, victims, and prosocial by their peers. Data came from 1,458 children (M_age = 10.5, 47.5% girls) and 56 teachers (M_age = 40.8, 66.1% females). Perceived likeability was associated with decreased odds and teachers’ perceptions of popularity and externalizing behavior were associated with increased odds for teacher attunement to bullying. Perceived likeability and affiliation were associated with decreased odds for teacher attunement to victimized students. Teachers’ perceptions of externalizing behavior were associated with decreased odds, whereas teachers’ perceptions of affiliation and academic competence were associated with increased odds for attunement to prosociality. Finally, a positive association was found between teacher attunement and the average behavior of teacher‐perceived friends for bullying, victimization, and prosociality.