The drivers of household indebtedness reconsidered: An empirical evaluation of competing arguments on the macroeconomic determinants of household indebtedness in OECD countries

Abstract

Household debt is at a record high in most Organisation for Economic Co-operation and Development (OECD) countries and it played a crucial role in the recent financial crisis. Several arguments on the macroeconomic drivers of household debt have been put forward, and most have been empirically tested, albeit in isolation of each other. This article empirically tests 7 competing hypotheses on the macroeconomic determinants of household indebtedness together in one econometric study. Existing arguments suggest that residential house prices, upward movements in the prices of assets demanded by households, the income share of the top 1%, falling wages, the rolling back of the welfare state, the age structure of the population, and the short-term interest rate drive household indebtedness. We formulate these arguments as hypotheses and test them for a panel of 13 OECD countries over the period 1993–2011 using error correction models. We also investigate whether effects differ in boom and bust phases of the debt and house price cycles. The results show that the most robust macroeconomic determinant of household debt is real residential house prices, and that the phase of the debt and house price cycles plays a role in household debt accumulation.     

The insight-value-perception (iVP) model for user-centered design

Through an inductive, multi-case analysis of eight medical device firms, this paper maps user-centered design and development practices to product performance outcomes. First, the data highlight that designing products under variable use conditions enabled firms to optimize products for widespread use and to increase the predictability of product outcomes. Second, the study shows that product adoption relied on maximizing benefits for multiple product stakeholders with often-conflicting needs, while minimizing required changes in end user behavior. Third, the paper highlights that managing perceptions toward product use through performance data positively influenced product adoption among the cases studied to a greater degree than did market demand or regulatory clearance. Fourth, rival explanations for outcomes involving limited user involvement, indicate that competitive advantages were achieved through maintaining dominant financial and intellectual property positions. From these findings, the insight-value-perception (iVP) model for user-centered design was constructed. This model links design and development practices to outcomes, from a combination of consumer-oriented, technical, and financial perspectives. Although rooted in the experiences of device developers within early stage medical device companies, the iVP Model may be used as a theoretical framework to examine a range of complex systems involving an embedded network of product users and stakeholders.     

Food for thought: the birth-order effect and resource allocation in Indonesia

Despite the large literature linking birth order to socio-economic outcomes, research uncovering the mechanisms that drive these effects has been rare. We construct a unique measure of nutritional variety to examine whether differential resource allocation among siblings explains the birth-order effect on cognitive ability. We document birth-order differences among children and young adults, showing that second and third borns perform worse on cognitive assessments compared to their firstborn siblings. We find further evidence suggesting that second- and third-born children frequently eat a smaller variety of food than their first-born counterparts. However, this differentiation in food allocation does not appear to drive the differences in cognitive ability in our sample. To our knowledge, this article is the first both to confirm the presence of a birth-order effect on cognition in a developing country and to test empirically whether a difference in food allocation contributes to this effect.     

A sociological investigation of the U.S.A. mandate for replacement cost disclosures

A sociological framework is used to assess the role of corporate management in the process of establishing accounting policy. The mandate by the SEC in the U.S.A. for replacement cost disclosures is considered from this perspective. A content analysis of the general comments section of a sample of replacement cost footnotes is used to study empirically management's reaction to the disclosure requirement. Interpretation of the findings are made within the context of the sociological framework to gain insight into the process of obtaining acceptance of change in financial reporting practices.     

“There is no time for rest”: Gendered CSR,sustainable development and the unpaid care work governance gap

Unpaid care work, including child care, elder care, and housework, is unremunerated work essential to human survival and flourishing. Worldwide, women disproportionally carry out this work, impacting upon their ability to engage in other activities, such as education, employment, or leisure. Despite a growing number of businesses engaging in “gendered CSR,” in the form of women's empowerment projects, attention to unpaid care work remains little discussed in the literature, despite its importance to sustainable development. Applying Diane Elson's feminist economic framework for alleviating unpaid care work inequality to a case study of gendered CSR in Ghana, I find that at present unpaid care work is (a) unrecognised in business’ CSR, (b) may be both reduced or exacerbated by CSR efforts, and (c) remains conceptualised as relevant only to the private sphere, therefore, missing a unique opportunity for business to contribute to gender equality and sustainable development. Connecting unpaid care work and business responsibility contributes to a more expansive understanding of what CSR may be.     

Information and access to United Nations diplomatic missions

United Nations (UN) diplomats play an important role in international policy, yet there is a scarcity of evidence and theory on their preferences and behaviour. We report the results of an online field experiment designed to identify the revealed preferences of diplomats. In particular, we investigate whether and how diplomats will provide access to outside organizations based on offers of information. We contacted diplomats by email and randomized offers of information on either peer missions or world affairs. While offers of information on peers garnered nearly 45% more responses indicating interest than offers of information on world affairs, response rates across both treatments were low, and the difference is only 3.3 percentage points. Our estimated treatment effects of assignment to the peer as compared to world affairs treatment are not statistically significant. Our experiment failed to provide evidence that these types of informational offers facilitate differential access to UN diplomats.     

Successful Scientific Replication and Extension of Levitt (2008): Child Seats are Still No Safer Than Seat Belts

Using US fatality data from 1975 to 2003, Levitt (Evidence that seat belts are as effective as child safety seats in preventing death for children aged two and up, Review of Economics and Statistics 2008; 90 (1): 158–163) shows that child safety seats do not significantly reduce fatalities for children aged 2–6 years as compared to standard seat belts. Although we were unable to gain access to the original programs and dataset used, we were able to replicate Levitt's ( 2008 ) findings almost exactly. We extend Levitt ( 2008 ) by showing that the findings also hold for the years 2004–2011 despite changing driver characteristics and restraint use patterns. We fail to find evidence that SUVs provide additional safety for children. Copyright © 2015 John Wiley & Sons, Ltd.     

Color research in marketing: Theoretical and technical considerations for conducting rigorous and impactful color research

Since the beginning of the 21st century, there has been a surge in interest in color research (and in sensory marketing in general). In addition to discussing emerging color research contained in this special issue, this article also provides a discussion of theoretical frameworks for understanding color and provides technical guidelines for creating color stimuli. These guidelines include a discussion of the three dimensions of color (hue, saturation, and value) and provide researchers with guidance for controlling these dimensions when creating color stimuli. Additionally, this article discusses additive (red, green, blue) versus subtractive (cyan, magenta, yellow, and key) color models, gamut, and other considerations, such as screening participants for colorblindness, that future researchers may find useful for conducting rigorous color research.     

The future of social media in marketing

Social media allows people to freely interact with others and offers multiple ways for marketers to reach and engage with consumers. Considering the numerous ways social media affects individuals and businesses alike, in this article, the authors focus on where they believe the future of social media lies when considering marketing-related topics and issues. Drawing on academic research, discussions with industry leaders, and popular discourse, the authors identify nine themes, organized by predicted imminence (i.e., the immediate, near, and far futures), that they believe will meaningfully shape the future of social media through three lenses: consumer, industry, and public policy. Within each theme, the authors describe the digital landscape, present and discuss their predictions, and identify relevant future research directions for academics and practitioners.

     

Healthcare resource utilization among commercially insured patients with cold agglutinin disease in the United States

Abstract

Aims: Cold agglutinin disease (CAD) is a rare subtype of autoimmune hemolytic anemia associated with increased thromboembolism risk and early mortality. Healthcare resource utilization (HRU) in CAD has not been reported. We aimed to compare HRU of patients with CAD with a matched non-CAD cohort in the United States.

Materials and methods: Patients with CAD were identified from 2006 to 2016 in the Optum-Humedica database using CAD terms in clinical notes and hematologist review. Patients were required to have Integrated Delivery Network records and ≥6 months’ follow-up before and after the first CAD mention date (index date). Patients with CAD were matched to a non-CAD cohort based on demographics. Multivariate analyses assessed inpatient hospitalizations, outpatient visits, emergency room visits, and transfusion use between cohorts 6 months before and 12 months after the index date.

Results: Of 814 patients with CAD, 410 met inclusion criteria and were matched to 3,390 patients without CAD. Mean age of patients with CAD was 68.0 years; approximately 62% were female. In the 12 months after the index date, mean inpatient hospitalizations (0.83 vs. 0.25), outpatient visits (17.26 vs. 6.77), emergency room visits (0.55 vs. 0.32), and transfusion days (1.05 vs. 0.05) were higher for patients with CAD than the matched non-CAD cohort (all p?<?.0001). Similarly, in the 6 months before the index date, patients with CAD had higher HRU than matched patients without CAD for all measures evaluated.

Limitations: Results of this study are based on patient information from the Optum-Humedica database, which is limited to commercially insured patients and may not represent the overall CAD population.

Conclusions: CAD places a substantial burden on patients and healthcare systems. In addition, the high HRU for patients with CAD observed in the 6 months before diagnosis indicates that disease awareness and better diagnostic practices may be needed.