Motherhood in migration: schools as acculturation agents

ABSTRACT

Motherhood roles lie at the intersection of gender, professional, family, and social identities and are highly contextualized in culture, making them particularly relevant for acculturation success. We provide an empirical example of how schools act as acculturation agents, using the experiences of career-oriented migrant mothers whose children attend elite private schools in Santiago, Chile. This study contributes to consumer acculturation research and to research on matricentric feminism, which positions mothers’ concerns as the starting point for theories, politics, and practices of empowerment. We employ Turner's notion of root paradigms to discuss how schools maneuver their unique institutional agentic power, acculturating career-oriented migrant mothers and their families into a cultural framework of female domesticity and intensive mothering.     

(Un)expected retirement and the consumption puzzle

In this work we revisit the retirement consumption puzzle using Italian panel data. As emphasised in the literature, the observed consumption drop might be due to unexpected wealth shocks at retirement which modify optimal consumption plans. Using an Euler equation approach, we test the impact of unexpected retirement on the consumption patterns of individuals around the age of retirement by using the panel component of the Survey of Household Income and Wealth (SHIW). This dataset contains information on the expected age of retirement which can be used to distinguish between expected and unexpected retirement. Furthermore, we investigate the heterogeneous behaviour of individuals with different levels of education and wealth. We find evidence of a consumption drop at retirement especially for low educated people and individuals with little wealth. The consumption drop at retirement, on average, does not seem to be a response to unexpected retirement. Disaggregating our sample, we find that the consumption drop persists among low educated people with little wealth available, irrespective of whether retirement was expected or not. Highly educated people, conversely, do smooth their consumption, unless they have low wealth and are hit by an unexpected shock at retirement in which case they are forced to drop consumption.     

A theory of negotiated equity financing

We examine the sale of equity within the context of a modelof negotiation between a firm and a less well informed purchaser.We introduce a simple form of negotiation by allowing the firmto set the price of the issue and by assuming that the purchaseis a financier-underwriter who acts strategically. This transactionis analyzed as a noncooperative game, and we identify sequentialequilibria that are consistent with observed behavior: namelythat negotiations occasionally fail, that market reactions toequity offers are not uniformly negative, and that equity placementsare often underpriced.     

The resolution of financial distress

Most models of financial structure embody an assumption aboutfinancial distress that causes debt to be costly to the issuingfirm. This approach has been criticized on the grounds thatthe assumed costs could be avoided by a costless financial reorganization.In this article we show that despite the possibility of costlessreorganization, it may be rational for firms to incur significantcosts in the resolution of financial distress. The main assumptionsthat give rise to our results are the existence of asymmetricinformation and of judicial discretion that allows courts toimpose a reorganization on the claimants of a firm.     

Rethinking liquidity creation: Banks,shadow banks and the elasticity of finance

In this article, the authors use the concept of the hierarchy of money found in the works of Minsky (2008 Minsky, H. [1986]2008. Stabilizing an Unstable Economy. New Haven, CT: Yale University Press. [Google Scholar][1986]), Foley (1987 Foley, D. 1987. “Money in Economic Activity.” In The New Palgrave: Money, edited by J. Eatwell, M. Milgate, and P. Newman, 519–525. New York, NY: W.W. Norton.[Crossref] , [Google Scholar]), Wray (1990 Wray, L. R. 1990. Money and Credit in Capitalist Economies: The Endogenous Money Approach. Aldershot, UK: Edward Elgar. [Google Scholar]), and Bell (2001 Bell, S. 2001. “The Role of the State and the Hierarchy of Money.” Cambridge Journal of Economics 25 (2):149–63.[Crossref], [Web of Science ®] , [Google Scholar]) to analyze the process of liquidity creation in modern capitalist economies where shadow banks play an active role. They abandon the narrow focus on banks as the creators of money as well as the idea that nonbank financial institutions are mere intermediaries between savers and borrowers. Instead, the authors demonstrate that, similar to banks, nonbank financial institutions and foreign banks (through their cross-border activities) create liquidity endogenously by leveraging over the liabilities of entities hierarchically above them. The authors further elucidate Kregel’s concept of “fictitious” liquidity in the context of the hierarchy of financial liabilities, distinguishing it from “true” liquidity. By bringing shadow banks and the euro-currency markets into to the pyramid of financial liabilities, they develop a more complete framework of liquidity creation in modern capitalist economies. Their “extended” pyramid is useful for analyzing not only the fragility that may arise from the interactions between firms, households and banks, but also that which may originate through the interactions between banks, shadow banks and foreign banks.     

Collusive Networks in Market‐Sharing Agreements in the Presence of an Antitrust Authority

This paper examines how the presence of an antitrust authority (AA) affects market‐sharing agreements made by firms. These agreements prevent firms from entering each other’s markets. The set of agreements defines a collusive network, which is pursued by antitrust authorities. This paper shows that in the absence of an AA, a network is stable if its alliances are large enough, and in the presence of an AA, more competitive structures can be sustained through bilateral agreements. Antitrust laws may have a procompetitive effect, as they give firms in large alliances more incentives to cut their agreements at once.     

Corporate Decisions,Information and Prices: Do Managers Move Prices or Do Prices Move Managers?

Seasoned equity offerings involve two significant events: registration followed by the decision to complete the issue or withdraw the registration. We present an empirical analysis of the interaction between seasoned equity issues, insider trading and the incorporation of information in prices around these two events. We find that the manager moves prices through corporate decisions but not personal ones. Specifically, the market reacts to the registration and the registration triggers information acquisition by the market, which is shown to influence the manager's final decision. Trading by managers during this interval does not, however, move prices.
(J.E.L.: G14, G23, G32) .     

The Role of a Firm’s Net Cash Payouts in Leland’s (1994) Model

We study the effects of introducing payouts on corporate debt and optimal capital structure in a structural credit risk model à la Leland (1994) . We find that increasing the payout parameter not only affects the endogenous bankruptcy level, which is decreased, but modifies the magnitude of a change on the endogenous failure level as a consequence of an increase in risk‐free rate, corporate tax rate, riskiness of the firm and coupon payments. This simple analytical framework is able to capture realistic insights about optimal leverage, spreads and default probabilities more in line with historical norms (if compared to Leland’s results) and closer to predictions obtained through more sophisticated models.