Search

Loneliness contributes to mortality risk, comparable to the risks associated with smoking and obesity, although the causal determinants of loneliness remain less clear. This paper leverages mandatory stay-at-home orders in Australia as a natural experiment and employs data from a panel study to investigate the causal link between physical isolation and loneliness. By analyzing variations in the number of lockdown days experienced by respondents up until their interview dates, and utilizing difference-in-differences analyses with individual, region, and year fixed-effects estimations, we find, contrary to expectations, that the number of days in lockdown does not significantly impact loneliness. Our study examines cumulative, concurrent, and non-linear effects, and assesses external validity through community morale and peer effects during lockdowns using spatial analysis. Additionally, we delve into heterogeneous effects across various factors, such as income, age, personality, living arrangements, and remoteness, finding statistically and empirically insignificant effects. However, for extroverts and young people, we observe weak statistical significance. We investigate exclusion restrictions by analyzing factors including social contacts, internet access, job industry, and household characteristics in relation to loneliness; as well as time use and relationship satisfaction to better understand the underlying mechanism. Our study challenges the notion that 'being alone' and 'being lonely' are interchangeable concepts, providing the first empirical causal evidence of no links between the two. Furthermore, our findings refine earlier understandings of social isolation, highlighting that it likely encompasses factors beyond physical isolation. [ABSTRACT FROM AUTHOR]

This paper examines the role of socioeconomic status (SES) in affecting access to care and the survival of acute myocardial infarction (AMI) patients in Australia's universal health care system. We jointly model the probabilities of patients being admitted to a catheterisation-capable hospital, receiving invasive coronary angiography (ICA), and surviving 30 days post discharge as a recursive system of probit equations. We further investigate the role of capacity and whether the access gap between SES groups widens when capacity becomes limited. Our study shows that SES plays a significant role in affecting the survival of AMI patients, both directly and indirectly through healthcare access. We find that socioeconomically disadvantaged patients are less likely to gain access to crucial services like catheterisation hospitals and ICA, which indirectly affects their survival probability in addition to the adverse direct impact of SES. While healthcare capacity showed no overall effect on access, its interplay with SES exacerbates the access disparity in situations of limited capacity. Our findings suggest that, to reduce inequality in health outcomes, public health strategy needs to focus not only on enhancing access but also addressing the direct consequences of SES. [ABSTRACT FROM AUTHOR]

This paper examines the relationship between locus of control (LOC) and the demand for supplementary health insurance (SUPP). Drawing on longitudinal data from Germany, we document robust evidence that individuals internal LOC increases the take up of supplementary private health insurance (SUPP). We find that the effect of one standard deviation increase in the measure of internal LOC on the probability of SUPP purchase is equivalent to a 14 percent increase in household income. Second, we find that the positive association between self-reported health and SUPP becomes small and insignificant when we control for LOC. These results suggest that LOC might be an unobserved individual trait that can partly explain previously documented evidence of advantageous selection into SUPP. Third, we find comparable results using data from Australia, which enhances the external validity of our results. [ABSTRACT FROM AUTHOR]

• This paper studies the effect of varying the timing of reminder letters on the tax payment behavior of small businesses. • We provide an overview of the theoretical and empirical literature on tax compliance and reminders. • A field experiment reveals that a simple reminder letter increases the probability of payment by about 25 percentage points. • Variation over a three-week period in the timing of the reminder letter has no effect on the probability of payment. • Sending reminders early results in faster payment of debts with no effect on the ultimate probability of payment. This paper provides empirical evidence on the implications of the timing of reminders by studying the effect of varying the timing of reminder letters to taxpayers on their payment behavior. The collection of unpaid tax debts constitutes a considerable challenge for tax authorities. We discuss potential mechanisms through which reminders may affect taxpayers' behavior and study the payment behavior of business taxpayers in a field experiment in Australia. We find that a simple reminder letter increases the probability of payment by about 25 percentage points relative to a control group that does not receive a letter from the tax authority. However, variation over a three-week period in the timing of the reminder letter has no effect on the probability of payment within seven weeks of the due date. Our findings indicate that sending reminders early results in faster payment of debts with no effect on the ultimate probability of payment. [ABSTRACT FROM AUTHOR]

This paper analyzes the relationship between interest rates, inflation expectations and inflation rates in Australia using the approach suggested by Toda and Yamamoto (1995) to test for Granger causality. The empirical evidence reported here suggests that uni-directional Granger causality is running from medium- and long-term government bond yields to short-term inflation expectations as measured by a survey among consumers. Moreover, there is bidirectional Granger causality among short-term interest rates and short-term inflation expectations among consumers. Additionally, interest rates and the sentiment data measuring inflation expectations can help to predict inflation rates. These findings are supportive for the Fisher effect and also seem to indicate that the bond market is quite efficient predicting inflation rates. Furthermore, some problems of more traditional tests of the Fisher hypothesis are discussed. In this context the role of financial deregulation in Australia is examined. Thus, the Lucas critique seems to be of some relevance testing the Fisher effect (see Lucas, 1976). [ABSTRACT FROM AUTHOR]

Using long panels of industry-specific offshoring information and subjectively reported well-being datasets mainly from Germany, which is also supported by datasets from the UK and Australia, this paper aims to investigate the relationship between offshoring and workers' subjective well-being in the source country. We employ panel data fixed-effects models with time-variant personality measures and industry-specific measures to alleviate the bias stemming from the non-random sorting of individuals in industries. Our findings suggest that offshoring negatively relates to workers' subjective well-being. The result is unexceptionally consistent across Germany, the UK, and Australia, and the effect is larger in business services and among high-skilled workers. We extensively discuss how contextual "fear-factors" prevailing in the source countries interact with the angst generated by the negative framing of offshoring. To single out such angst, we first show that objective and subjective job security concerns, job characteristics, and labor market conditions only marginally relate to the well-being effect of offshoring. Then, we investigate how the effect of offshoring on well-being is amplified by a larger set of contextual factors pertaining to temporary economic shocks, negative narratives about offshoring during electoral cycles, partisan political preferences, and high immigration rates. Finally, we show that a recent skill upgrade significantly diminishes the negative effect of offshoring on well-being. [ABSTRACT FROM AUTHOR]

• Asymmetric and nonlinear effects of consumer sentiments on industry stock returns and volatility in Australia is examined. • We use the consumer sentiments of rural Australia and different age groups. • We apply the nonparametric causality-in-quantile model. • Asymmetric and unidirectional causality-in-returns from consumer sentiments to industry stock returns is found. • The causality-in-variance result indicates a transfer of risk from sentiments to industry stock returns. This paper investigates the empirical evidence of the effects of public sentiments on industry stock returns and volatility dynamics in Australia based on the states of the market that relates to the conditional quantiles of public sentiments and sectoral stocks, using the robust nonparametric causality-in -quantile test. We adopt the monthly overall consumer sentiments index and four of its components including the sentiments for rural Australia and the age groups 18–24, 25–44, and 45 and above. Our nine industry stocks include Health Care, Consumer Discretionary, Consumer Staples, Utilities Financials, Real Estate, Industrials, Basic Materials and Energy, with data spanning from October 1974 to October 2020. The results from the nonlinear causality test show a directional and bidirectional causality between measures of consumer sentiments and returns of industry stocks. Interestingly, we note that the sentiments of individuals aged 45 and above cause the returns of all the nine sectors. Next, we explore the predictive power of sentiments on industry stock returns, using the nonparametric causality-in-quantile test. We find that the predictability between sentiments and industry stock returns is high in the normal market state but drops when the consumers' perceptions enter into the extreme bearish and bullish states. Additionally, the findings show a risk (volatility) transfer from sentiments to the industry stock returns in some cases under different market conditions. We offer some implications based on our findings for the stakeholders and market participants who develop their strategies depending on market conditions and sentiments. [ABSTRACT FROM AUTHOR]

This paper estimates the wellbeing effects of the 2009 Black Saturday Bushfires, the deadliest wildfire event in Australia's known history. Using subjective wellbeing data from a nationally representative longitudinal study and adopting an individual fixed-effects approach, our results identify a significant reduction in life satisfaction for individuals residing in close proximity of the wildfires. The negative wellbeing effect is valued at A$52,300. This corresponds to 80% of the average annual income of a full-time employed adult in the state of Victoria. The satisfaction domain most negatively affected is how safe the person feels, and the group most affected are people with low social support. A delayed adverse mental health effect is also identified. [ABSTRACT FROM AUTHOR]

Despite significant improvements in health and longevity, the gender gap in health persists. Using longitudinal data from 15 waves of the HILDA survey for the period from 2005 to 2019, this paper examines the impacts of risky addictive behaviors given by smoking, drinking and gambling on health outcomes and the gender gap in general and mental health in Australia. To identify the causal effects of cigarette and alcohol consumption, we utilize exogeneous policy changes in the Australian Wine Equalization Tax (WET) and cigarette excise taxes to instrument alcohol and cigarette consumption, respectively. For gambling, we utilize state-level number of gambling machines to instrument the problem gambling severity index. We find that Australian females tend to have better general health but worse mental health outcomes than their male counterparts. More importantly, our instrumental variable estimates reveal the role of risky addictive behaviors in influencing the gender gap in health. Specifically, smoking and gambling widen the gender gap in general health, whereas alcohol consumption plays no role in affecting the gender gap in general health. For mental health, our results show that smoking and gambling reduce the gender gap in mental health, whereas alcohol consumption tends to increase the gender gap in mental health. We find that social support, neighborhood trust, dietary choice and life satisfaction are important channels through which risky addictive behaviors influence general and mental health outcomes. Our results have important policy implications as health quality in general, and gender health equality in particular, are important determinants of standards of living, productivity, and economic development. [ABSTRACT FROM AUTHOR]

This paper examines the empirical link between retirement and the supply of volunteer labor, using panel data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey. To identify the causal impact, we exploit a major reform of the Australian Age Pension which has significantly changed the retirement incentives of older people. We find positive and significant effects of retirement status on the voluntary work provision of older men and women. Longer time spent in retirement increases the unpaid labor supply of women, while there is no such evidence for men. We further find evidence of intra-household retirement externalities: older people's retirement impacts positively on the volunteer behavior of their family members. Our findings suggest that the Australian Age Pension reform aiming at working life prolongation has led to an unintended shrinkage of the volunteer workforce. [ABSTRACT FROM AUTHOR]

This paper examines the effects of cognitive abilities and non-cognitive skills on gambling behaviors in Australia. We use the scores for three cognitive functioning tasks as measures of cognitive abilities. Locus of control and the Big Five personality traits are used as measures of non-cognitive skills. We find that cognitive abilities affect both gambling participation and problem gambling. While locus of control does not affect people's participation in gambling, gambling participants with strong internal locus of control are less likely to become a problem gambler than those with external locus of control. We also show that personality traits are important factors for both gambling participation and problem gambling. There is also evidence that both cognitive and non-cognitive skills affect gamblers' choice between skill-and-chance gambling and pure-chance gambling. Our findings seem to support the view that market imperfection could at least explain some individuals' participation in gambling. [ABSTRACT FROM AUTHOR]

The Australian Government launched the My School website in 2010 to provide standardised information about the quality of schools to the Australian public. This paper combines data from this website with home sales data for the state of Victoria to estimate the effect of the publication of school quality information on property prices. We use a difference-in-difference approach to estimate the causal effect of the release of information about high-quality and low-quality schools relative to medium-quality schools in the neighborhood and find that the release of information about high-quality schools increases property prices by 3.6 percent, whereas the release of information about low-quality schools has no significant effect. The findings indicate that many buyers are unaware of the relevance of school quality information and that real estate agents pursue a strategy of disclosing information about high-quality schools to increase the sales price. Results from a survey of Victorian real estate agents provide evidence in favor of this strategy. [ABSTRACT FROM AUTHOR]

Why do legal permanent migrants return to their home countries? How do home country conditions influence such a decision? This paper uses exogenous exchange rate shocks arising from the 1997 Asian Financial Crisis to distinguish between the motivations of Australian immigrants to return to their home country. A 10 percent favorable shock (a depreciation in a migrant’s home country currency) leads to an almost 10 percent reduced likelihood of return in a two year period. The effect is stronger for those with pre-existing intentions to return, weaker for those undecided, and zero for those who initially desired to stay. These results favor a life-cycle explanation for migrant behavior and reject the theory that migrants are target earners who seek to invest upon return home. [ABSTRACT FROM AUTHOR]

Recent High Court decisions in Australia relating to Aboriginal native title have the potential to provide insights to the origins of property rights and the possible costs of changes to those rights. This paper investigates these issues by analyzing the court judgements and by means of a stock market event study. It seems that neither the naïve view nor the legal centralist view of property rights can adequately explain Australian native title. Further we do not find significant costs resulting from the change in property rights. [Copyright &y& Elsevier]