MODELING THE INCIDENCE OF SELF‐EMPLOYMENT: INDIVIDUAL AND EMPLOYMENT TYPE HETEROGENEITY

Modeling the incidence of self‐employment has traditionally proved problematic. Although the supply‐side characteristics of the self‐employed are well documented, we argue that the literature has neglected demand‐side aspects. We explore the determinants of self‐employment using the U.S. Survey of Consumer Finances. We present results from an econometric framework that allows us to model, separately and simultaneously, the influences of individual heterogeneity (i.e., supply‐side factors) and employment type heterogeneity (i.e., demand‐side factors) on the probability of self‐employment. Our findings suggest that while individual characteristics are important determinants of self‐employment, there are factors specific to the type of employment that influence self‐employment. (JEL J23, J33, C25, C10)     

Taking Advantage of a Vulnerable Group? Emotional Cues in Ads Targeting Parents

Parents of small children regularly face challenges that are new to them, creating uncertainties and stress that complicate their decision‐making processes. In this vulnerable state, parents may be susceptible to emotional appeals in advertisements in ways that influence their knowledge formation, food choices, and perceptions of self. In this study, we use a combination of content analysis and interviews to examine the use of emotional appeals, particularly guilt and fear, in food ads and how parents respond to them. We find that guilt is more frequently used in ads that target parents than has been shown for other audiences, and that parents often express negative self‐images and coping strategies when viewing them.     

COSTS AND BENEFITS OF REDUCING AIR POLLUTANTS RELATED TO ACID RAIN

The 1990 Clean Air Act Amendments initiated a dramatic reduction in emissions of sulfur dioxide and nitrogen oxides by electric power plants. This paper presents the results of an integrated assessment of the benefits and costs of the program. Dramatic uncertainties characterize the estimates especially with respect to the benefits of the program, many of which were modeled explicitly. The lion's share of benefits results from reduced risk of premature mortality, especially through reduced exposure to sulfates, and these expected benefits measure several times the expected costs of the program. Significant benefits also are estimated for improvements in health morbidity, recreational visibility, and residential visibility, each of which measures approximately equal to costs. Areas that were the focus of attention in the 1980s—including effects to soils, forests, and aquatic systems—still have not been modeled comprehensively, but evidence suggests that benefits in these areas are relatively small, at least with respect to "use values" for the environmental assets that are affected.