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Public resentment toward scientific institutions, scholars, and their expertise challenges the status of science in society in many countries worldwide. It is thus essential to examine the global prevalence of such resentment—and the potential of legacy media to temper it, thanks to their ability to cultivate positive views of science, educate citizens, and connect publics to scientific discourse. However, existing research has mostly surveyed Western populations, focused on pro-science rather than anti-science views, rarely studied the role of media use, and often ignored country characteristics that may interact with media use. This secondary analysis addresses these caveats, drawing on the 2017–2020 wave of the World Values Survey (N = 70,867 in 49 countries) and three relevant country-level indicators (freedom of the press, populism, uncertainty avoidance). Findings indicate that anti-science attitudes vary substantially across countries and are more prevalent in many Latin American nations. Results of Bayesian multilevel regressions show that frequent use of newspapers, TV, and radio indeed alleviates anti-science attitudes in some countries—but fosters them in others, particularly in those where populist rhetoric is more prevalent in public discourse, potentially because such rhetoric often challenges science and academic expertise. These findings call for further comparative research on global reservations against science and reflections about their repercussions on the science-society nexus.

Humans differ in their strategic reasoning abilities and in beliefs about others' strategic reasoning abilities. Studying such cognitive hierarchies has produced new insights regarding equilibrium analysis in economics. This paper investigates the effect of cognitive hierarchies on long run behavior. Despite short run behavior being highly sensitive to variation in strategic reasoning abilities, this variation is not replicated in the long run. In particular, when generalized risk dominant strategy profiles exist, they emerge in the long run independently of the strategic reasoning abilities of players. These abilities may be arbitrarily low or high, heterogeneous across players, and evolving over time.

Anticipating those most at-risk of being acutely malnourished significantly shapes decisions that pertain to resource allocation and intervention in times of food crises. Yet, the assumption that household behavior in times of crisis is homogeneous—that households share the same capacity to adapt to external shocks—ostensibly prevails. This assumption fails to explain why, in a given geographical context, some households remain more vulnerable to acute malnutrition relative to others, and why a given risk factor may have a differential effect across households? In an effort to explore how variation in household behavior influences vulnerability to malnutrition, we use a unique household dataset that spans 23 Kenyan counties from 2016 to 2020 to seed, calibrate, and validate an evidence-driven computational model. We use the model to conduct a series of counterfactual experiments on the relationship between household adaptive capacity and vulnerability to acute malnutrition. Our findings suggest that households are differently impacted by given risk factors, with the most vulnerable households typically being the least adaptive. These findings further underscore the salience of household adaptive capacity, in particular, that adaption is less effective for economic vis-à-vis climate shocks. By making explicit the link between patterns of household behavior and vulnerability in the short- to medium-term, we underscore the need for famine early warning to better account for variation in household-level behavior.

Serial dictatorships have emerged as the canonical simple mechanisms in the literature on the allocation of indivisible goods without transfers. They are the only neutral and group-strategy-proof mechanisms in environments in which agents have no outside options and hence no individual rationality constraints (Svensson in Soc Choice Welfare 16:557–567, 1999). Accounting for outside options and individual rationality constraints, our main result constructs the class of group-strategy-proof, neutral, and non-wasteful mechanisms. These mechanisms are also Pareto efficient and we call them binary serial dictatorships. The abundance of the outside option—anybody who wants can opt out to get it—is crucial for our result.

In Vietnam, a country where religious expression is widespread, many gods and goddesses are commonly worshipped. Among those, Bà Tổ Cô (Family Goddess) is widely worshipped in the North of Vietnam due to her exceptional background as unmarried, young, and having spiritual roots, unlike other national and heroic figures. This article examines the sanctity of the Family Goddess by decoding the terms, worshippers, beliefs and practices, sacred encounters and supports. The research is a final result of decade-long field trips, archival study, and in-depth interviews with various stakeholders. The research findings show that the veneration of the Family Goddess in Northern Vietnam is a continuity of a long-standing tradition of worshipping female deities in Asia and thus emphasising the need to maintain this unique intangible heritage as a crucial part of Vietnamese cultural diversity.

Despite the importance of Christian democracy for economic and social policies throughout the 20th century, we know very little about the incorporation of labor interests into Catholic parties. Existing accounts claim that the formation of Catholic worker organizations is rooted in the process of industrialization and reforms of Catholic social teachings. In contrast, I argue that the integration of the workers’ wing was dependent on the position of farmers’ and business associations within Catholic parties and the integrative capacities of local religious institutions. The migration of Catholics from peripheral to industrialized areas put pressure on Catholic elites in urban centers to integrate workers via class-based associations. In contrast, entrenched interest groups of farmers and businesses, as well as clerical associations, fend off the creation of workers’ associations in rural regions in which industrialization took place. My argument is supported by newly collected district-level and survey data.

We investigate the compensation of counterparty exposure in the prices of structured products. Our analysis reveals that product issuers did not compensate retail investors for counterparty exposure before the Lehman default. Post‐Lehman, retail prices have no longer neglected this risk. We also measure retail investor attention towards issuer credit risk. For a given level of issuer credit risk, counterparty exposure is compensated more when attention is higher. Furthermore, issuers tend to construct products with larger counterparty exposure. Overall, our results shed light on the conditions under which financial engineering generates neglected risk.

The purpose of this work is to develop an evolutionary finance model with a risk-free asset playing the role of a numeraire. The model describes a market where one risk-free and several “short-lived” risky assets (securities) are traded in discrete time. The risky securities live one period, yield random payoffs at the end of it, and then are re-born at the beginning of the next period. The main goal of the study is to identify investment strategies that make it possible for an investor to “survive” in the market selection process. It is shown that a strategy of this kind exists, is in a sense asymptotically unique and can be described by a simple explicit formula amenable for quantitative investment analysis.

Multi-group Bayesian structural equation modeling (MG-BSEM) gained considerable attention among substantive researchers investigating cross-group differences and methodologists exploring challenges...

Unemployment varies across space and in time. Can attitudes toward work explain some of these differences? We study job search durations along the Swiss language border, sharply separating Romance language speakers from German speakers. According to surveys and voting results, the language border separates two social groups with different cultural background and attitudes toward work. Despite similar local labor markets and identical institutions, Romance language speakers search for work almost seven weeks (or 22%) longer than their German speaking neighbors. This is a quantitatively large effect, comparable to a large change in unemployment insurance generosity. (JEL: J21, J64, Z10)

We address the electoral consequences of profound welfare state reforms taking the German Agenda 2010 as an exemplary case. The Agenda is usually perceived as having developed into an electoral disaster for the German Social Democrats (SPD). In this article, we focus on the electoral reactions of directly affected labor market groups in four elections from 1998 to 2009. We combine detailed meso-level information on the regional socioeconomic structure with official elections results. Our findings indicate that the electoral effects of the reform on the group of ‘Agenda losers' were limited, while the effect on the German party system and its coalition dynamics are more permanent as the reform helped to entrench a party left to the SPD in the German party system.

This article addresses the historical emergence of business cooperation. We resort to Höpner's (2007) concepts of organization and coordination in order to analyze how firms progressively engaged in Business Interest Associations (BIAs) and interlocking directorates during the first part of the 20th century. Our inquiry is based on a network analysis on large firms of the Swiss machine, electrotechnical and metallurgy (MEM) sector. Our results show that before the First World War, only major firms were promoting coordination and organization through, respectively, interlocking directorates and BIAs. Although many firms were reluctant to cooperate in the first place, interests beyond the firm level (organization) and the economic needs of firms (coordination) had cumulative effects, and most firms progressively engaged in both mechanisms of cooperation from the interwar period. We argue that differentiating between organization and coordination contributes to a more nuanced understanding of the emergence of non-liberal capitalism.

Theories of expectations-based reference-dependent preferences have provided a critical modeling innovation, incorporating a structured theory of the formation of reference points. An important prediction of these models is a monotone response in behavior to changes in expectations. To test such models we conduct a real-effort experiment manipulating expectations and examining consequences on effort provision. In contrast to the theory, we document substantial nonmonotonicities in the effort response to changing expectations. Our results provide some evidence on the limitations of expectations-based reference dependence. (JEL: D81, D84, D12, D03)

This paper analyzes fiscal policy from a growth model perspective, with a particular focus on taxation. It argues that tax policies channel resources into specific sectors of the economy and thereb...

In this article, we propose a nonlinear dynamic latent class structural equation modeling (NDLC-SEM). It can be used to examine intra-individual processes of observed or latent variables. These pro...

In this short paper we briefly introduce some of the works presented during the conference “Network models and stress testing for financial stability” which was held in Mexico City hosted by Banco de Mexico on September 26-27, 2017. The papers ranged from new applications of network models for financial stability analysis to stress testing at central banks and common assets contagion. The novelty and originality of most of the works make this special issue a good read for the specialists in the Financial Stability field, including academics as well as practitioners and obviously financial authorities. We hope that you find this short introduction to the special issue and the special issue itself, interesting and useful for your everyday work.

Purpose This study aims to present a brief overview of developments in management accounting research and practice in German-speaking countries, locate the contributions of this special issue in historical trajectories and provide an outlook of expected future developments in this area. Design/methodology/approach This study reviews the literature and draws a critically reflective approach. Findings A century after Schmalenbach, Germanic management and cost accounting have significantly changed, even though the roots of the cost accounting tradition of the late 19th and early 20th centuries are still visible in practice and teaching, which is true for both organisational practice and research. In both cases, an encroachment of the global on the local can be seen but, paradoxically, as Hopwood (1999) noted, the seemingly globally standardised accounting systems allow for local idiosyncrasies to specifically stand out. The anchoring of management accounting in financial accounting, the country-specific ownership and financing models, the importance of capital and labour markets (e.g. strong codetermination) for companies, regulations on corporate governance and the determination of the tax base are examples of institutions that can shape the behaviour of management and, thus, also idiosyncrasies of management accounting in a country. Originality/value The contributions of this special issue provide insight into developments in management accounting research and practice in German-speaking countries and, thus, enhance our understanding of the different historical trajectories and traditions in management accounting. The papers by Weber and Wiegmann and by Gisch et al. demonstrate how specific idiosyncratic practices and understandings of management accounting in German-speaking countries mediate global influences on management accounting in private- and public-sector organisations. The papers by Endenich et al. and by Kreilkamp et al. show that the influence of international developments in management accounting research has become stronger in German-speaking management accounting academia.

A special gilding material called Zwischgold has been frequently observed in medieval gilded artefacts. As a bilayer metal leaf made from gold and silver, it exhibits similar but slightly paler golden colour tone compared to pure gold. Zwischgold surface can be darkened quickly due to the corrosion of its silver base. Despite its frequent mentions in medieval guild statutes, the production of Zwischgold and its important technological parameters have been under a veil of secrecy since the Middle Ages. Here, we examine the thicknesses and materials proportions of medieval Zwischgold, through high-resolution scanning electron microscopy coupled with energy dispersive X-ray analysis (SEM-EDX) on a large number of samples taken from late medieval gilded sculptures. We observe that medieval Zwischgold contains ultra-thin gold layers in a thickness range of ca. 20–50 nm, indicating the employment of high-precision technologies in manufacturing of delicate art materials in the late medieval period. It further clarifies some ambiguity in gilding history, regarding the colour appearance of medieval Zwischgold. As supportive data, Rutherford backscattering spectrometry (RBS) and scanning transmission electron microscopy (STEM) were applied, in order to confirm the precision and accuracy of the sample preparation and the SEM analysis., Journal of Cultural Heritage, 49

Societies are increasingly multicultural and diverse, consisting of members who migrated from various other countries. However, immigrants and ethnic minorities often face discrimination in the form of fewer opportunities for labor and housing, as well as limitations on interactions in other social domains. Using mock email accounts with typical native-sounding and foreign-sounding names, we contacted 23,020 amateur football clubs in 22 European countries, asking to participate in a training session. Response rates differed across countries and were, on average, about 10% lower for foreign-sounding names. The present field experiment reveals discrimination against ethnic minority groups, uncovering organizational deficiencies in a system trusted to foster social interactions.

We conduct a standardized survey on risk preferences in 53 countries worldwide and estimate cumulative prospect theory parameters from the data. The parameter estimates show that significant differences on the cross-country level are to some extent robust and related to economic and cultural differences. In particular, a closer look on probability weighting underlines gender differences, economic effects, and cultural impact on probability weighting. The data set is a useful starting point for future research that investigates the impact of risk preferences on the market level.

Criteria are an essential component of any procedure for assessing merit. Yet, little is known about the criteria peers use in assessing grant applications. In this systematic review we therefore identify and synthesize studies that examine grant peer review criteria in an empirical and inductive manner. To facilitate the synthesis, we introduce a framework that classifies what is generally referred to as 'criterion' into an evaluated entity (i.e. the object of evaluation) and an evaluation criterion (i.e. the dimension along which an entity is evaluated). In total, this synthesis includes 12 studies. Two-thirds of these studies examine criteria in the medical and health sciences, while studies in other fields are scarce. Few studies compare criteria across different fields, and none focus on criteria for interdisciplinary research. We conducted a qualitative content analysis of the 12 studies and thereby identified 15 evaluation criteria and 30 evaluated entities as well as the relations between them. Based on a network analysis, we propose a conceptualization that groups the identified evaluation criteria and evaluated entities into aims, means, and outcomes. We compare our results to criteria found in studies on research quality and guidelines of funding agencies. Since peer review is often approached from a normative perspective, we discuss our findings in relation to two normative positions, the fairness doctrine and the ideal of impartiality. Our findings suggest that future studies on criteria in grant peer review should focus on the applicant, include data from non-Western countries, and examine fields other than the medical and health sciences., Comment: Final version

In this paper, we gauge the degree of interconnectedness and quantify the linkages between global and other systemically important institutions, and the global financial system. We document that the two groups and the financial system become more interconnected during the global financial crisis when linkages across groups grow. In contrast, during tranquil times linkages within groups prevail. Global systemically important banks (G-SIBs) contribute most to system-wide distress but are also most exposed. There are more links coming from G-SIBs to other systemically important institutions (O-SIIs) than the other way around, confirming the role of G-SIBs as major risk transmitters in the financial system. The two groups and the global financial system tend to co-vary for periods up to 60 days Prior to their official designation as G-SIBs or O-SIIs, the prevalent news sentiment about these institutions (we measure with a textual analysis) was negative. Importantly, the systemic importance and exposure of G-SIBs and O-SIIs is perceived differently by the Financial Stability Board (FSB) and the European Banking Authority (EBA).

We study optimal incentive contracts with multiple agents when performance evaluation is delegated to a reviewer. The reviewer may be biased in favor of the agents, but the degree of the bias is unknown to the principal. We show that a contest, which is a contract in which the principal determines a set of prizes to be allocated to the agents, is optimal. By using a contest, the principal can commit to sustaining incentives despite the reviewer's potential leniency bias. The optimal effort profile can be uniquely implemented by an all-pay auction with a cap, and it can also be implemented by a nested Tullock contest. Our analysis has implications for applications as diverse as the design of worker compensation, the awarding of research grants, and the allocation of foreign aid.

We study how network structure affects the dynamics of collateral in presence of rehypothecation. We build a simple model wherein banks interact via chains of repo contracts and use their proprietary collateral or re-use the collateral obtained by other banks via reverse repos. In this framework, we show that total collateral volume and its velocity are affected by characteristics of the network like the length of rehypothecation chains, the presence or not of chains having a cyclic structure, the direction of collateral flows, the density of the network. In addition, we show that structures where collateral flows are concentrated among few nodes (like in core-periphery networks) allow large increases in collateral volumes already with small network density. Furthermore, we introduce in the model collateral hoarding rates determined according to a Value-at-Risk (VaR) criterion, and we then study the emergence of collateral hoarding cascades in different networks. Our results highlight that network structures with highly concentrated collateral flows are also more exposed to large collateral hoarding cascades following local shocks. These networks are therefore characterized by a trade-off between liquidity and systemic risk., Comment: 39 pages, 7 figures

The discussion of the social, political and economic consequences of the lockdown during the COVID-19 pandemic mainly revolves around negative effects. This study exploits a unique opportunity and analyses data from a survey (N = 13,316) that happened to be in the field in the months of the development and eventual manifestation of the COVID-19 pandemic. It documents slightly higher levels of average general life satisfaction as well as of satisfaction with various specific aspects of life (health, work, work-life balance and leisure) during the lockdown among scientists in Austria, Germany and Switzerland. It is argued that the lockdown can be regarded as a large-scale social experiment of a very sudden and abrupt change of work and social life, which is unique in history. Daily survey data elicited before and after the lockdown allows the construction of a quasi-experimental design for analysing how this abrupt change of social reality has affected satisfaction. For scientists, the lockdown mainly entailed the transition to work from home, leading to a reduced speed of life and allowing for more flexibility in incorporating family and leisure into the work day. It is discussed how some of these mechanisms might apply to the general population., Humanities and Social Sciences Communications, 7 (1), ISSN:2662-9992

The role of development finance institutions in low‐income and emerging countries is fundamental to provide long‐term capital for investments in climate mitigation and adaptation. Nevertheless, development finance institutions still lack sound and transparent metrics to assess their projects' exposure to climate risks and their impact on global climate action. To attempt to fill this gap, we develop a novel climate stress‐test methodology for portfolios of loans to energy infrastructure projects. We apply the methodology to the portfolios of overseas energy projects of two main Chinese policy banks. We estimate their exposure to economic and financial shocks that would result in government inability to introduce timely 2°C‐aligned climate policies and from investors' inability to adapt their business to the changing climate and policy environment. We find that the negative shocks are mostly concentrated on coal and oil projects and vary across regions from 4.2 to 22 percent of the total loan value. Given the current leverage of Chinese policy banks, these losses could induce severe financial distress, with implications on macroeconomic and financial stability.

Do wealth shocks affect the health of the elderly in developed countries? The economic literature is skeptical about such effects which have so far only been found for poor retirees in poor countries. In this paper I show that wealth shocks also matter for the health of wealthy retirees in the US. I exploit the booms and busts in the US stock market as a natural experiment that generated considerable gains and losses in the wealth of stock-holding retirees. Using data from the Health and Retirement Study I construct wealth shocks as the interaction of stock holdings with stock market changes. These constructed wealth shocks are highly predictive of changes in reported wealth. And they strongly affect health outcomes. A 10% wealth shock leads to an improvement of 2-3% of a standard deviation in physical health, mental health and survival rates. Effects are heterogeneous across physical health conditions, with most pronounced effects for the incidence of high blood pressure, smaller effects for heart problems and no effects for arthritis, diabetes, lung diseases and cancer. The comparison with the cross-sectional relationship of wealth and health suggests that the estimated effects of wealth shocks are larger than the long-run wealth elasticity of health.

In the commercial sector, which is of crucial importance to the Swiss economy among other countries, a large number of apprentices are trained on a vocational education and training programme every year. Besides other subjects, the subject Economics and Society forms an integral part of the vocational education and training curriculum and serves to prepare apprentices for professional, economic and civic participation. Although content knowledge is widely considered necessary to both teaching quality and student achievement, little is known about the subject-specific content knowledge of Swiss Economics and Society teachers. As previous research has shown a gender gap in the content knowledge of (pre-service) teachers in economics, we focus on the question as to whether Swiss Economics and Society teachers’ economics content knowledge differs, including in relation to gender. As additional influencing factors, our study included teaching experience and teaching load. We measured the economics content knowledge of 153 Economics and Society teachers with a shortened German version of the Test of Understanding College Economics in the German-speaking part of Switzerland. Multivariate analyses indicated a gender effect that manifested itself in higher test scores among male Economics and Society teachers. These findings are relevant to the training of vocational education and training teachers.

Studies indicate that male students outperform female students in economic literacy and that a specific item format (selected-response, constructed-response) favours either males or females. This study analyses the relationship between item format and gender in economic-civic competence using the WBK-T2 test (“revidierter Test zur wirtschaftsbürgerlichen Kompetenz”). The WBK-T2 encompasses 32 items, of which 53% have a selected-response format and 47% a constructed-response format. To answer the research questions, we used a sample of 375 Swiss high school students and ran T-tests and multiple regression analyses. Male students significantly outperformed female students in the overall test score, in the selected-response test score and in the constructed-response test score, but effect sizes are rather small. Interest in socio-economic issues predicted but did not moderate the test scores; however, prior knowledge in economics did. Our results indicate that the balanced test form of the WBK-T2 regarding selected-response and constructed-response items does overcome the gender gap in overall test scores and format-related test scores for students with prior economic knowledge. However, this does not apply for students without prior knowledge in economics. Thus, there must be other test-external variables, such as prior knowledge in economics that cause the gender gap in economic-civic competence.

This chapter addresses the challenge of motivating employees regarding energy conservation, by providing a socio-motivational and micro-interactional perspective on energy conservations in the workplace. Building on change management research, we highlight the socio-relational and motivational dynamics between energy managers and employees in conversations about energy-related behaviour change. Further, we introduce Motivational Interviewing (MI) as a socio-relational approach that offers potential to help energy managers in discussing energy savings with employees. In this regard, we outline how introductory training in MI for energy managers can be designed, can provide detailed information on procedures, and present methodological approaches to evaluate these types of interventions. Finally, we provide a detailed analysis of conversational dynamics between an energy manager and an employee who we evaluated as part of a training evaluation study.

In this paper, we examine the role of political connections in mitigating the detrimental impact of policy uncertainty on banks. Our estimates show that banks are more cautious when facing policy uncertainty, but that the effect is partially alleviated when banks are politically connected. For an increase of one standard deviation in policy uncertainty, connected banks maintain a loss provision to loan volume ratio that is almost seven percent lower compared to their unconnected peers. These findings are robust to a geographical regression discontinuity setting, as well as to a placebo test. Lastly, the mitigating role of political connections is driven mainly by smaller banks and periods of stricter banking regulations.

We develop a method to analyze the effects on financial stability of the interplay between climate policy shocks and market conditions. We combine the frameworks of the Climate Stress-test with the framework of the network valuation of financial assets, in which the valuation of interbank claims accounts for market volatility as well as for endogenous recovery rates consistent with the network of obligations. We also include the dynamics of common asset contagion involving not only banks but also investment funds, which are key players in the low carbon transition. We then apply the model to a unique supervisory data-set of banks and investment funds at the firm level in order to assess the impact for financial stability of shocks deriving from the disorderly alignment of energy and utility sectors in a range of climate policy scenarios. While under mild shock scenarios systemic losses are contained, we identify the climate policy scenarios and market conditions under which systemic losses can pose a threat to financial stability.

We study the difference between the returns to the integrated approach to investing and those to the mixed approach to investing. Unlike the mixed approach, the integrated approach aggregates factor characteristics at the security level. Recent literature finds that the integrated approach dominates the mixed approach. Using statistical tools for robust performance testing, we demystify these findings as a statistical fluke. We do not find any evidence in favor of the integrated approach. What we do find is that the integrated approach exhibits a higher sensitivity to the low-risk anomaly. However, this reduction in risk does not lead to an improvement in performance.

Do contractual frictions matter when firms are engaged in repeated interactions? This paper argues that long-term relationships, which allow firms to (partly) overcome the static costs associated with low contractibility, will under certain circumstances create dynamic inefficiencies. We consider the repeated interaction between final good producers and intermediate input suppliers, where the provision of the intermediate input is noncontractible. A producer/supplier pair can be a good match or a bad match, with bad matches featuring lower productivity. This allows us to build a cooperative equilibrium where producers can switch suppliers and start cooperation immediately with new suppliers. Every period, one supplier has the opportunity to innovate, and in the baseline model, innovations are imitated after one period. We show that (i) innovations need to be larger to break up existing relationships in the cooperative equilibrium than in either a set-up where the input is contractible or when we preclude cooperation in long-term relationships, (ii) the rate of innovation in the cooperative equilibrium is lower than in the contractible case, and may even be lower than in the non-cooperative equilibrium and (iii) cooperation may reduce welfare. Next, we assume that the frontier technology diffuses slowly to suppliers (instead of after one period). In that case, for sufficiently slow diffusion, the innovation rate in the cooperative equilibrium may be higher than even in the contractible case. Finally, we show that cooperation may also increase relationship specific innovations.

This article is based on the presidential address delivered at the EEA Annual Congress 2016. It discusses China’s institutional and economic transformation through the lens of the model of growth and convergence developed in Acemoglu, Aghion, and Zilibotti (JEEA 2006), which emphasizes the dichotomy between investment- and innovation-led growth. The economic reforms introduced in the 1980s and 1990s have enabled the Chinese economy to grow at historically unprecedented rates through fostering investment, reallocation, and technology adoption from abroad. The Chinese stimulus package introduced in 2008 appears to have prolonged the longevity of China’s investment-driven growth beyond its optimal point. Over the last decade, China has activated the engine of innovation-led growth. The article discusses the virtues and limits of such ongoing transition, based on research in progress using firm-level data on R&D and productivity growth. Finally, it provides an appraisal of the institutional and policy reforms that are necessary for China to continue on its path of rapid convergence.

Does the presence of immigrants in one's neighborhood affect voting for far right-wing parties? We study the case of the Freedom Party of Austria (FPÖ) that, under the leadership of Jörg Haider, increased its vote share from less than 5% in the early 1980s to 27% by the end of the 1990s and continued to attract more than 20% of voters in the 2013 national election. We find that the inflow of immigrants into a community has a significant impact on the increase in the community's voting share for the FPÖ, explaining roughly a tenth of the regional variation in vote changes. Our results suggest that voters worry about adverse labor market effects of immigration, as well as about the quality of their neighborhood. In fact, we find evidence of a negative impact of immigration on "compositional amenities”. In communities with larger immigration influx, Austrian children commute longer distances to school, and fewer daycare resources are provided. We do not find evidence that Austrians move out of communities with increasing immigrant presence.

We study whether employment history provides information about a worker’s “work attitude”, that is, the tendency to act cooperatively and reliably in the workplace. We conjecture that, holding all else equal, frequent job changes can indicate poor work attitude and that this information is transmitted through employment histories. We find support for this hypothesis across three studies that employ complementary laboratory, field, and survey experiments, as well as in labor market panel data. First, a tightly controlled laboratory labor market experiment demonstrates that prior employment information allows employers to screen for reliable and cooperative workers and that these workers obtain better employment outcomes. Secondly, we conduct a field experiment that varies the frequency of job changes in applicants’ resumes and find that those with fewer job changes receive substantially more callbacks from prospective employers. Thirdly, a survey experiment with human resources professionals confirms that the resume manipulations in the field study create different perceptions of work attitude and that these largely account for the callback differences. Finally, we find evidence consistent with our hypothesized relationships in empirical labor market data. Our work highlights the potential importance of job history as a signal of work attitude in labor markets, and points to a potential cost of frequent job changes.

We propose a method to infer lead-lag networks of traders from the observation of their trade record as well as to reconstruct their state of supply and demand when they do not trade. The method relies on the Kinetic Ising model to describe how information propagates among traders, assigning a positive or negative "opinion" to all agents about whether the traded asset price will go up or down. This opinion is reflected by their trading behavior, but whenever the trader is not active in a given time window, a missing value will arise. Using a recently developed inference algorithm, we are able to reconstruct a lead-lag network and to estimate the unobserved opinions, giving a clearer picture about the state of supply and demand in the market at all times. We apply our method to a dataset of clients of a major dealer in the Foreign Exchange market at the 5 minutes time scale. We identify leading players in the market and define a herding measure based on the observed and inferred opinions. We show the causal link between herding and liquidity in the inter-dealer market used by dealers to rebalance their inventories.

There is vast heterogeneity in the human willingness to weigh others' interests in decision making. This heterogeneity concerns the motivational intricacies as well as the strength of other-regarding behaviors, and raises the question how one can parsimoniously model and characterize heterogeneity across several dimensions of social preferences while still being able to predict behavior over time and across situations. We tackle this task with an experiment and a structural model of preferences that allows us to simultaneously estimate outcome-based and reciprocity-based social preferences. We find that non-selfish preferences are the rule rather than the exception. Neither at the level of the representative agent nor when we allow for several preference types do purely selfish types emerge. Instead, three temporally stable and qualitatively different other-regarding types emerge endogenously, i.e., without pre-specifying assumptions about the characteristics of types. When ahead, all three types value others' payoffs significantly more than when behind. The first type, which we denote as strongly altruistic type, is characterized by a relatively large weight on others' payoffs - even when behind - and moderate levels of reciprocity. The second type, denoted as moderately altruistic type, also puts positive weight on others' payoff, yet at a considerable lower level, and displays no positive reciprocity while the third type is behindness averse, i.e., puts a large negative weight on others' payoffs when behind and behaves selfishly otherwise. We also find that there is an unambiguous and temporally stable assignment of individuals to types. Moreover, the three-type model substantially improves the (out-of-sample) predictions of individuals' behavior across additional games while the information contained in subject-specific parameter estimates leads to no or only minor additional predictive power. This suggests that a parsimonious model with three types captures the bulk of the predictive power contained in the preference estimates.

We assess the effect of securitization activity on relative credit quality employing a uniquely detailed dataset from the euro-denominated syndicated loan market. We find that at issuance, based on observable characteristics, banks do not seem to select and securitize loans of lower credit quality. Following securitization, the credit quality of borrowers whose loans are securitized deteriorates more than those in the control group. We find that poorer performance by borrowers of securitized loans seems to be connected to banks’ reduced monitoring incentives. Our results are supported by two additional methodologies and robust to controlling for predetermined borrower-lender matching.

Several structural equation modeling (SEM) strategies were developed for assessing measurement invariance (MI) across groups relaxing the assumptions of strict MI to partial, approximate, and partial approximate MI. Nonetheless, applied researchers still do not know if and under what conditions these strategies might provide results that allow for valid comparisons across groups in large-scale comparative surveys. We perform a comprehensive Monte Carlo simulation study to assess the conditions under which various SEM methods are appropriate to estimate latent means and path coefficients and their differences across groups. We find that while SEM path coefficients are relatively robust to violations of full MI and can be rather effectively recovered, recovering latent means and their group rankings might be difficult. Our results suggest that, contrary to some previous recommendations, partial invariance may rather effectively recover both path coefficients and latent means even when the majority of items are noninvariant. Although it is more difficult to recover latent means using approximate and partial approximate MI methods, it is possible under specific conditions and using appropriate models. These models also have the advantage of providing accurate standard errors. Alignment is recommended for recovering latent means in cases where there are only a few noninvariant parameters across groups.