DOMESTIC VIOLENCE,EMPLOYMENT, AND DIVORCE*

Conventional wisdom suggests abused women get caught in a cycle of violence and are unable or unwilling to leave their spouses. We estimate a model of domestic violence to determine who abuses, who is abused, and how women respond to abuse via employment and divorce. In contrast to conventional wisdom, abused women are 1.7–5.7 times more likely to divorce. Employment before abuse occurs is found to be a significant deterrent. For men, witnessing violence as a child is a strong predictor of abusive behavior: re‐socializing men from violent homes lowers abuse rates by 26%–48%.     

ALCOHOL REGULATION AND DOMESTIC VIOLENCE TOWARDS CHILDREN

In recent years, economists have paid much attention to the demand for alcohol and the negative externalities associated with excessive drinking. Largely ignored in the literature is the link between alcohol use and domestic violence. Given the established positive relationship between alcohol consumption and acts of violence, the purpose of this paper is to examine the role that changes in the determinants of the demand for alcohol may play in reducing the incidence of violence aimed at children. Data on violence come from the 1976 Physical Violence in American Families survey. We estimate a model in which violent outcomes are affected by the state excise tax rate on beer; illegal drug prices, and other regulatory variables such as availability measures and laws restricting the advertising of alcohol. Results show that increasing the tax on beer can be an effective policy tool in reducing violence. Laws designed to make obtaining beer more difficult also may be effective in reducing violence, while restrictions on advertising and increases in illegal drug prices have no effects.     

MONETARY–FISCAL INTERACTIONS WITH A CONSERVATIVE CENTRAL BANK

We study macroeconomic stabilization when monetary and fiscal policies interact via their effects on output and inflation and the monetary authority is more conservative than the fiscal. We find that monetary–fiscal interactions result in poor macroeconomic stabilization. With both policies discretionary, the Nash equilibrium is suboptimal with higher output and lower inflation than optimal; the Nash equilibrium may be extreme with output higher and inflation lower than either authority want. Leadership equilibria are not second best. Monetary commitment is completely negated by fiscal discretion and yields the same outcome as discretionary monetary leadership for all realizations of shocks. But fiscal commitment is not similarly negated by monetary discretion. Optimal macroeconomic stabilization requires either commitment of both monetary and fiscal policies, or identical targets for both authorities – output socially optimal and inflation appropriately conservative – or complete separation of tasks.     

TIME‐INCONSISTENCY AND WELFARE PROGRAM PARTICIPATION: EVIDENCE FROM THE NLSY*

We empirically implement a dynamic structural model of labor supply and welfare program participation for agents with potentially time‐inconsistent preferences. Using panel data on the choices of single women with children from the National Longitudinal Surveys (NLSY) 1979, we provide estimates of the degree of time‐inconsistency, and of its influence on the welfare take‐up decision. With these estimates, we conduct counterfactual experiments to quantify a measure of the utility loss stemming from the inability to commit to future decisions, and the potential gains from commitment mechanisms such as welfare time limits and work requirements.     

Domestic Violence Against Rural Women in Colombia: The Role of Labor Income

This paper analyzes the effect of women’s earnings on domestic violence in rural Colombia during the period 2009–2013. To this end, it builds an indicator of domestic violence against women at the municipal level, based on the number of visits of women who attended health facilities where a report on suspected domestic violence was issued by their physician, which overcomes the bias introduced by self-reporting victims. Results indicate that greater income generation by women in rural areas in most economic activities (coffee, fruits, commerce, and industry) decreases domestic violence, while in services, the opposite occurs. The latter could be the result of the mainly menial jobs women perform in this sector, which may be undervalued in their homes, thus making them more vulnerable. The study also finds that improvements in the municipality’s economic activity and access to education contribute to the reduction of domestic violence against women.     

Domestic violence and women's autonomy in developing countries: theory and evidence

Abstract This paper sets out a simple non‐cooperative model of resource allocation within the household in developing countries that incorporates domestic violence as a vehicle for enhancing bargaining power. We demonstrate that the extent of domestic violence faced by women is not necessarily declining in their reservation utilities, or necessarily increasing in their spouses’. Using the National Family Health Survey data of India for 1998–99, we isolate the effect of domestic violence on female autonomy, taking into account the possible endogeneity of domestic violence through the choice of appropriate instruments. We provide some evidence for the evolutionary theory of domestic violence, which argues that such violence stems from the jealousy caused by paternity uncertainty in our evolutionary past. The findings have strong policy implications suggesting that it will take more than an improvement in women’s employment options to address the problem of spousal violence.     

Markov-perfect optimal taxation

In this paper we study optimal taxation in a dynamic game played by a sequence of governments and the private sector. We focus on the Markov-perfect equilibrium of this game under two different assumptions on the extent of government's intra-period commitment, which in turn define two within-period timings of actions. Our results show that the extent of government's intra-period commitment has important quantitative implications for policies, welfare, and macroeconomic variables, and consequently that it must be explicitly stated as one of the givens of the economy, alongside preferences, markets and technology. We see this as an important result, since most of the previous literature on Markovian optimal taxation has assumed, either interchangeably or unnoticeably, different degrees of government's intra-period commitment.     

Why Would She? Polygyny and Women's Welfare in Ghana

This study examines whether polygynous marriages are beneficial to women in Ghana. While some scholars claim that women benefit from such marriages in terms of higher consumption or leisure time, others believe that such relationships can be oppressive for women, as compared to monogamous relationships. Using household data from the 2005/6 Ghanaian Living Standards Measurement Survey V and the 2008 Ghanaian Demographic Health Survey, this study finds little evidence to support the view that women experience economic benefits from these unions. Polygynous women in Ghana tend to be more accepting of and experience more domestic violence, and they have less decision-making power within the household than women in monogamous marriages. Thus, there seems to be more evidence to support the view of polygyny as an oppressive institution rather than the outcome of a woman's rational choice.     

Design of reforms with time‐inconsistent voters

Widespread agreement that a political reform is necessary is no guarantee that it is actually undertaken in a timely manner. There is often a delay before action is taken and reform packages that would be most efficient to implement all at once are often done only gradually. We propose a theoretical model explaining this behavior and show that when voters have present‐biased, time‐inconsistent preferences, gradualism can arise in equilibrium and be welfare‐enhancing. This is because without the possibility for gradualism, time‐inconsistent voters would delay implementing the reform even more. Using a citizen candidate model, we allow the agenda setter, who decides which reform schedule to put to vote, to be endogenously determined. We show that voters who are aware of their own time inconsistency can use the election of the agenda setter as a commitment device and appoint an agent who is more patient than the median voter in order to avoid full procrastination and to achieve efficiency‐maximizing gradualism.     

Family policy,intrahousehold bargaining,and child health

This study examines the effects of an exogenous change in family policy in Ethiopia on women empowerment and the allocation of resources toward child health. Empowerment is formalized as an unobserved latent variable based on a large set of questions pertaining to women's autonomy and decision-making power. Exploiting the time and regional variation in the implementation of the law, the study finds that early implementation of the reform increases women's access to information, literacy and education levels, and their assertiveness toward family planning and domestic violence. In addition, more decision power in the hands of women is found to have a positive impact on investments in the health and nutrition of children. The findings suggest that factors that do not enter the individual's preferences may affect outcomes for individuals and emphasize the role of intrahousehold heterogeneity. The results are robust to a battery of validity and specification checks.     

Privatization and the Political Economy of Strategic Trade Policy

This article considers the interdependence between international financial markets, privatization, and strategic trade policies. We describe an economy where portfolio allocations are chosen by risk-averse agents who rationally forecast future trade policies. Assuming a government responsive to the policy preferences of voters, we show that ownership structure affects trade policy through the incentives for lobbying by private agents. Portfolios and trade policy are thus jointly determined in political-economic equilibrium. Privatization of state-owned industry exerts an important influence over the trade policies chosen by domestic and foreign governments by expanding the scope for individual diversification.     

The interaction effect of gender and ethnicity in loan approval: A Bayesian estimation with data from a laboratory field experiment

Microfinance targets women and uses loan provision as a tool for empowerment, which translates into better household nutrition, improved education, and a scale down of domestic violence. However, ethnic discrimination in microfinance may exist in countries with a segregated indigenous population. We assessed this possibility with a field experiment in Bolivia. The controlled laboratory experiment evaluated whether credit officers rejected microloan applications based on the interaction effect of ethnicity and gender of potential borrowers. Point estimates of a Bayesian mixed‐effects logistic regression, estimated with the experimental data, indicate that nonindigenous women have double the chance of loan approval, but indigenous women have only 1.5 times the chance of loan approval when compared with men. While the findings about gender are limited, the evidence for the interaction of gender and ethnicity is more robust and suggests the existence of positive taste‐based discrimination favorable for nonethnic women in Bolivia. We conclude that the affirmative actions towards women promoted by development agencies and microfinance institutions must not overlook ethnicity as an important factor for financial policies of sustainable development. In practice, these policies should be aimed at identifying and reducing both social desirability bias and the structural barriers to financial inclusion that indigenous women may face when trying to obtain access to a loan.     

Human capital consequences of violence in schools: Estimating the impact of violence in schools on education outcomes in Brazil

Implementation of policies to reduce the incidence of violence in schools needs a comprehensive understanding of the phenomenon and its consequences for the victims, perpetrators, and witnesses alike. However, much of the existing literature either focuses on the impact of violence on victim students or studies the specific cases of violent conflicts. Using Brazilian education data, this paper examines the impact of violence in schools on educational outcomes of the schooling system and emphasizes the human capital consequences of recorded violent incidents in schools. First, the paper establishes the psychological stress–threat mechanism by which violent incidents in schools directly impact students' mathematics test scores as well as school level average of these test scores. Thereafter, the paper demonstrates the reduced learning mechanism by which violence further detriments the quality of education, albeit indirectly, by disengaging the teachers and students from their professional responsibilities. The main results are tested for robustness and policy implications are discussed.     

Soccer and national culture: estimating the impact of violence on 22 lads after a ball

Sports have been recently conceptualized as an effective tool for development. Questioning that argument, recent evidence suggests that the practice of soccer reveals national cultures of violence prevailing in players’ countries of origin. We model violent behaviour in the soccer pitch as a function of game specific controls as well as socioeconomic, political, cultural and conflict variables characterizing players’ home countries. We construct a database for the Latin American 2008 Libertadores Cup Competition and find that across multiple specifications and estimating techniques, only game specific variables determine sanctions to violent actions. There are three compatible explanations for this result: highly skilled soccer players may not be representative average citizens; violent conflicts may not necessarily cause a violent culture affecting all corners of society; and even when violent cultures are transmitted to individual players, those values do not condition significantly their behaviour during games. After all, sports may not be a pernicious activity that intrinsically transmits violent values to youths.     

Does Women’s Labor Force Participation Reduce Domestic Violence? Evidence from Jordan

Enhancing women’s labor force participation is seen as a way to promote their empowerment and improve their well-being and that of their children. The empirical literature on the relationship between women’s employment status and domestic violence is less clear-cut. Using quantitative data from Jordan in 2007, this study explores the effect of women’s employment, as measured by their participation in paid work outside the home, on reported domestic violence, controlling for the potential endogeneity of women’s employment, which might bias the relationship between employment and domestic violence. Without taking endogeneity into account, the regression results suggest that a woman’s participation in paid work enhances violence by her husband. After controlling for endogeneity, these results turn out to be insignificant, which suggests that women’s work status has no causal influence on marital violence. Differentiating between various types of domestic violence provides weak evidence that women’s employment lowers sexual violence.     

Conditional Policies in General Equilibrium

Obtaining lower generalized system of preferences (GSP) tariffs requires meeting costly Rules of Origin (ROOs). Growing coffee in the shade is more costly, but yields a price premium. This paper analyzes the effects of such restrictions in a general equilibrium setting and shows that such policies may have unanticipated effects. It is shown that in a world with capital mobility, the GSP could result in capital outflows rather than inflows and consumer preferences for shade grown coffee end up hurting labor in developing countries. Even small subsidies that are contingent on the use of domestic intermediates can result in specialization in the targeted good. Value added contingent policies can easily lead to multiple equilibria despite the absence of externalities or market imperfections.     

On Impatience, Economic Growth and the Environmental Kuznets Curve: A Dynamic Analysis of Resource Management

The paper presents a dynamic analysis of natural resource management and investigates some key factors that affect optimal management and resource conservation.Using a recursive specification of time preferences, we show how endogenous discounting and impatience can affect the motivation for both capital investments and environmental preservation. We examine the relationships between economic growth and environmental quality. Endogenous discounting provides new insights in the economic dynamics underlying the environmental Kuznets curve. By treating growth as endogenous, we examine how externalities and economic growth interact with each other. We investigate how economic development can contribute to an increased demand for environmental preservation. As an important new result, we also show how poverty can contribute to environmental degradation.     

The structure of consumer preferences,Federal Republic of Germany, 1950–1973

Summary The objective of this paper is to analyze the structure of consumer preferences and changes in preferences over time. Consumer preferences are represented by an indirect translog utility function with time-varying preferences that is quadratic in the logarithms of its arguments. We consider a system of demand functions associated with parameter restrictions consistent with the theory. We characterize groupwise separability and groupwise homotheticity of preferences and derive for each set of restrictions on preferences parametric restrictions on the corresponding system of demand functions. Empirical results of the tests, based on time series data for FRG consumption expenditures on three commodity groups — durables, non-durables, and energy — are presented.     

Harmful Addiction

We construct an infinite horizon model of harmful addiction. Consumption is compulsive if it differs from what the individual would have chosen had commitment been available. A good is addictive if its consumption leads to more compulsive consumption of the same good. We analyse the welfare implications of drug policies and find that taxes on drugs decrease welfare while prohibitive policies may increase welfare. We also analyse the agent's demand for voluntary commitment ("rehab"). For appropriate parameters, the model predicts a cycle of addiction where the agent periodically checks into rehab. Between these visits his drug consumption increases each period.     

Violence against nurses and its impact on stress and productivity

The purpose of this study was to examine how violence from patients and visitors is related to emergency department (ED) nurses' work productivity and symptoms of post-traumatic stress disorder (PTSD). Researchers have found ED nurses experience a high prevalence of physical assaults from patients and visitors. Yet, there is little research which examines the effect violent events have on nurses' productivity, particularly their ability to provide safe and compassionate patient care. A cross-sectional design was used to gather data from ED nurses who are members of the Emergency Nurses Association in the United States. Participants were asked to complete the Impact of Events Scale-Revised and Healthcare Productivity Survey in relation to a stressful violent event. Ninety-four percent of nurses experienced at least one posttraumatic stress disorder symptom after a violent event, with 17% having scores high enough to be considered probable for PTSD. In addition, there were significant indirect relationships between stress symptoms and work productivity. Workplace violence is a significant stressor for ED nurses. Results also indicate violence has an impact on the care ED nurses provide. Interventions are needed to prevent the violence and to provide care to the ED nurse after an event.