Attaching Workers through In-Kind Payments: Theory and Evidence from Russia

External shocks may cause a decline in the productivity of fixedcapital in certain regions of an economy. Exogenous obstaclesto migration make it hard for workers in those regions to reallocateto more prosperous regions. In addition, firms may devise "attachment"strategies to keep workers from moving out of a local labormarket. When workers are compensated in kind, they find it difficultto raise the cash needed for migration. This endogenous obstacleto migration has not yet been considered in the literature.The article shows that the feasibility of attachment dependson the inherited structure of local labor markets: attachmentcan exist in equilibrium only if the labor market is sufficientlyconcentrated. Attachment is beneficial for both employers andemployees but hurts the unemployed and the self-employed. Ananalysis of matched household-firm data from the Russian Federationcorroborates the theory.     

An EC-framework for scientific research and technological innovation

Science and technology have come under the fire of critics over the last ten years or so, but the present situation of mankind will call for more, and not less, human ingenuity. A particular problem for Europe to master is the need to improve the channels for translating scientific achievements into competitive engineering and technology. It is a problem which can best be solved within a coherent policy framework, designed and implemented at Community level.     

Can sustainable consumption be learned? A model of cultural evolution

This paper shows how sustainable consumption patterns can spread within a population via processes of social learning even though a strong individual learning bias may favor environmentally harmful products. We present a model depicting how the biased transmission of different behaviors via individual and social learning influences agents' consumption behavior. The underlying learning biases can be traced back to evolved cognitive dispositions. Challenging the vision of a permanent transition toward sustainability, we argue that “green” consumption patterns are not self-reinforcing and cannot be “locked in” permanently.     

A Comparison of State-of-the-Art Classification Techniques for Expert Automobile Insurance Claim Fraud Detection

Several state‐of‐the‐art binary classification techniques are experimentally evaluated in the context of expert automobile insurance claim fraud detection. The predictive power of logistic regression, C4.5 decision tree, k‐nearest neighbor, Bayesian learning multilayer perceptron neural network, least‐squares support vector machine, naive Bayes, and tree‐augmented naive Bayes classification is contrasted. For most of these algorithm types, we report on several operationalizations using alternative hyperparameter or design choices. We compare these in terms of mean percentage correctly classified (PCC) and mean area under the receiver operating characteristic (AUROC) curve using a stratified, blocked, ten‐fold cross‐validation experiment. We also contrast algorithm type performance visually by means of the convex hull of the receiver operating characteristic (ROC) curves associated with the alternative operationalizations per algorithm type. The study is based on a data set of 1,399 personal injury protection claims from 1993 accidents collected by the Automobile Insurers Bureau of Massachusetts. To stay as close to real‐life operating conditions as possible, we consider only predictors that are known relatively early in the life of a claim. Furthermore, based on the qualification of each available claim by both a verbal expert assessment of suspicion of fraud and a ten‐point‐scale expert suspicion score, we can compare classification for different target/class encoding schemes. Finally, we also investigate the added value of systematically collecting nonflag predictors for suspicion of fraud modeling purposes. From the observed results, we may state that: (1) independent of the target encoding scheme and the algorithm type, the inclusion of nonflag predictors allows us to significantly boost predictive performance; (2) for all the evaluated scenarios, the performance difference in terms of mean PCC and mean AUROC between many algorithm type operationalizations turns out to be rather small; visual comparison of the algorithm type ROC curve convex hulls also shows limited difference in performance over the range of operating conditions; (3) relatively simple and efficient techniques such as linear logistic regression and linear kernel least‐squares support vector machine classification show excellent overall predictive capabilities, and (smoothed) naive Bayes also performs well; and (4) the C4.5 decision tree operationalization results are rather disappointing; none of the tree operationalizations are capable of attaining mean AUROC performance in line with the best. Visual inspection of the evaluated scenarios reveals that the C4.5 algorithm type ROC curve convex hull is often dominated in large part by most of the other algorithm type hulls.