Comparisons of factor structures in separate consumer behavior studies

Three methods of comparing factor structures among separate factor analytic studies are examined. Examples are developed for each of the three methods, illustrating typical uses in different research settings. Major characteristics of the methods are compared and summarized. The article is essentially a non-technical and nonexhaustive overview of comparison methods directed to researchers not fully acquainted with the function and utility of these comparatively new techniques. The examples used are developed from a large-scale consumer study, but applications obviously extend to a much broader group of business research situations.     

Global market effects of alternative European responses to genetically modified organisms

Global Market Effects of Alternative European Responses to Genetically Modified Organisms. — Current debates about genetically modified organisms (GMOs) in agriculture reveal substantial differences in the perception of the associated risks and benefits. Genetically modified crop varieties allegedly provide farmers with agronomic benefits, but environmental, health and ethical concerns are also being raised. This paper discusses the ways in which the emergence of GMOs could lead to trade disputes between Western Europe and the United States. It then uses an empirical model of the global economy to quantify the effects on production, prices, trade patterns and national economic welfare of specific policy and consumer responses to GMOs in Western Europe.     

Economic Integration and the Civilising Commerce Hypothesis

Economic integration lowers one form of trade costs, tariffs and stimulates changes in other trade costs. This paper offers a model in which integration may raise or lower the important trade cost associated with insecurity. The model can help to explain the varied experience with integration and it points to the usefulness of combining enforcement‐policy integration with trade‐policy integration.     

The Wage Premium for Job Seniority During the 1980s and Early 1990s

In this article I use Panel Study of Income Dynamics (PSID) data to study whether the rewards for job tenure have fallen since the early 1980s. An upward-sloping seniority-wage profile is generally thought to be an important dimension of compensation during a career. However, recent interest in the incidence of layoffs and changes in the structure of firms gives rise to the possibility that employment contracts are less often being structured to reward tenure or that such contracts are more difficult to honor. Using a two-stage estimator to attempt to control unmeasured individual and job match effects on wages, I find some evidence that the wage premium paid to senior workers has declined moderately. However, I find that these results are mildly sensitive to alternative methods of handling the relatively noisy PSID tenure data.     

Performance Information, Accountability and Executive Agencies

The growth of executive agencies in the UK has been rapid. The first agency was established in 1988 and, by October 1997, over 75% of civil servants were working in such organizations. They were created to improve the efficiency and effectiveness of the delivery of central government services. Accountability was widened, and an emphasis was placed on the need to develop performance measurement and performance reporting systems. This article discusses the importance of performance information for accountability by agencies, and, through a time-series study of annual reports, examines changes over time. While highlighting the increasing use of performance information in external reporting, the article identifies significant weaknesses.     

The effects of default and call risk on bond duration

This paper examines the effects of default risk, call risk, and their interactions on bond duration. We find that call risk decreases durations of default-free bonds, while default risk alone generally decreases durations for risky bonds with only a few exceptions. The joint effect of default and call risk always results in shorter durations for corporate bonds. Controlling for the effect of default risk, call risk has a negative effect on duration, which diminishes as bond ratings decline. Finally, the effect of call risk on duration depends on bond characteristics. Empirical evidence shows that the effect of call risk is smaller for discount bonds and for deep-discount fallen angels.     

Religion and cooperation in a public goods experiment

We test whether religion affects adult subjects' decisions in a repeated public goods experiment. Contribution levels are not influenced by religious affiliation or participation. However, the decline with repetition is smaller among religious subjects, suggesting that religion may sustain cooperation.     

IT'S ABOUT TIME: EFFECTS OF THE AFFORDABLE CARE ACT DEPENDENT COVERAGE MANDATE ON TIME USE

We examine how the Affordable Care Act's dependent coverage mandate (DCM) affected young adults' time allocation. Exploiting more accurate measures from the American Time Use Surveys, we find that the DCM reduced labor supply. The question then arises, what have these adults done with the extra time? Estimates suggest a reduction in job‐lock, as well as in the duration of the average doctor's visit, including time spent waiting and receiving care. The latter effect is consistent with substitution from emergency‐department utilization toward more routine care. Estimates suggest that the extra time has gone into socializing, and into educational and job‐search activities. (JEL I1, J2, H0)     

The US Housing Market: Asset Pricing Forecasts Using Time Varying Coefficients

The US housing market has experienced significant cyclical volatility over the last twenty-five years due to major structural changes and economic fluctuations. In addition, the housing market is generally considered to be weak form inefficient. Houses are relatively illiquid, exceptionally heterogeneous, and are associated with large transactions costs. As such, past research has shown that it is possible to predict, at least partially, the time path of housing prices. The ability to predict housing prices is important such that investors can make better asset allocation decisions, including the pricing and underwriting of mortgages. Most of the prior studies examining the US housing market have employed constant coefficient approaches to forecast house price movements. However, this approach is not optimal as an examination of data reveals substantial sub-sample parameter instability. To account for the parameter instability, we employ alternative estimation methodologies where the estimated parameters are allowed to vary over time. The results provide strong empirical evidence in favor of utilizing the rolling Generalized Autoregressive Conditional Heteroskedastic (GARCH) Model and the Kalman Filter with an Autoregressive Presentation (KAR) for the parameters time variation. Lastly, we provide out-of-sample forecasts and demonstrate the precision of our approach.