WIC PARTICIPATION AND MATERNAL BEHAVIOR: BREASTFEEDING AND WORK LEAVE

We examine the effects of the Women, Infants, and Children (WIC) Program on breastfeeding outcomes and maternal employment decisions. This research expands the existing literature using an alternative identification strategy and a broader set of outcomes. Using data from the Infant Feeding Practices Study II, we control for selection bias into WIC using the variation in food prices as an instrumental variable. The results of this study are robust to a number of specification and falsification tests. We find WIC decreases exclusive breastfeeding by nearly 50% and increases work leave duration by over 20%. (JEL I18, I38)     

Economic consequences of implementing and communicating value based management systems

We study the consequences of implementing and communicating Value Based Management (VBM) systems on information asymmetries and the cost of capital. We analyse the firms’ reporting on internal control systems as the source of information for market participants. In addition, literature posits that improving communications with shareholders by providing additional information on value generation (Value Based Reporting, VBR) is an integral part of implementing VBM. We find that the implementation of VBM and the extent of VBR are, both individually and jointly, significantly related to lower information asymmetries and lower cost of capital. We find a slight moderation of the effect of VBM by VBR. For increasing VBR, we find that information asymmetries and cost of capital decrease more strongly for firms without implemented VBM systems. This indicates that VBR can to some extent substitute VBM. Overall, however, firms using a combination of VBM and VBR attain lower levels of information asymmetry and cost of capital. We provide evidence for the real effects of disclosure, suggesting that disclosures on internal control systems serve as a governance mechanism, reducing information asymmetries and the cost of capital by aligning shareholders’ and managers’ interests.     

Targeting interventions to high-risk populations: Benefits and costs

Targeting prevention interventions to high-risk populations may increase intervention benefits, but identifying and/or finding the high-risk populations may increase intervention costs. We explore the costs and benefits of targeting in the context of human immunodeficiency virus (HIV) prevention in high-risk injection drug users (IDUs). Focusing interventions on such a population should maximize the number of HIV infections averted. Recruiting high-risk IDUs for such interventions, however, may be more difficult and costly. We base our analysis on an earlier model that determines the allocation of resources to two interventions, street outreach and methadone maintenance. The model seeks to minimize HIV incidence in a population of heterosexual IDUs and their non-injecting sex partners. We conclude that while targeting an inexpensive intervention like street outreach rarely proves to be cost-effective, even a costly targeting effort can increase cost effectiveness for an expensive, effective, narrowly focused intervention such as methadone maintenance.     

The impact of carbon cap and trade regulation on congested electricity market equilibrium

Greenhouse gas regulation aimed at limiting the carbon emissions from the electric power industry will affect system operations and market outcomes. The impact and the efficacy of the regulatory policy depend on interactions of demand elasticity, transmission network, market structure, and strategic behavior of generators. This paper develops an equilibrium model of an oligopoly electricity market in conjunction with a cap-and-trade policy to study such interactions. We study their potential impacts on market and environmental outcomes which are demonstrated through a small network test case and a reduced WECC 225-bus model with a detailed representation of the California market. The results show that market structure and congestion can have a significant impact on the market performance and the environmental outcomes of the regulation while the interactions of such factors can lead to unintended consequences.     

A blueprint for bouncing back

Most leaders are seeing "perfect storm" conditions that have set their companies back. Oren Harari offers a blueprint of extreme measures that can propel beleaguered companies toward success.     

DOES RELIGIOSITY AFFECT SUPPORT FOR POLITICAL COMPROMISE?

Does religiosity affect adherents' attitude toward political compromise? To address this question and overcome the potential simultaneity of religious activity and political attitudes, we exploit exogenous variation in the start date of the Selichot (“Forgiveness”), a period in which many Jews, including nonadherents, take part in an intense prayer schedule. Using a two‐wave survey, we find that an increase in the salience of religiosity leads to the adoption of more hard‐line positions against a land‐for‐peace compromise. Examining several potential mechanisms for this attitudinal shift, our evidence points to the impact of the intensified prayer period on adherents' tolerance for risk.