Pub Date : 2025-09-01Epub Date: 2025-03-26DOI: 10.1016/j.rie.2025.101059
Ulrik Franke , Albina Orlando
Increasing use of new digital services offers tremendous opportunities for modern society, but also entails new risks. One tool for managing cyber risk is cyber insurance. While cyber insurance has attracted much attention and optimism, interdependent cyber risks and lack of actuarial data have prompted some insurers to adopt a more proactive role, not only insuring losses but also assisting clients with preventive work such as managed detection and response solutions, i.e., investments in their own cybersecurity. The purpose of this paper is to propose and theoretically investigate yet a further extension of this role, where insurers facilitate security investments between interdependent firms, which get the opportunity to invest a share of their insurance premiums to improve the security of each other. It is demonstrated that if insurers can facilitate such investments, then under common theoretical assumptions this can make a positive contribution to overall welfare. The paper is concluded by a discussion of the relevance and applicability of this theoretical contribution in practice.
{"title":"Interdependent cyber risk and the role of insurers","authors":"Ulrik Franke , Albina Orlando","doi":"10.1016/j.rie.2025.101059","DOIUrl":"10.1016/j.rie.2025.101059","url":null,"abstract":"<div><div>Increasing use of new digital services offers tremendous opportunities for modern society, but also entails new risks. One tool for managing cyber risk is cyber insurance. While cyber insurance has attracted much attention and optimism, interdependent cyber risks and lack of actuarial data have prompted some insurers to adopt a more proactive role, not only insuring losses but also assisting clients with preventive work such as managed detection and response solutions, i.e., investments in their own cybersecurity. The purpose of this paper is to propose and theoretically investigate yet a further extension of this role, where insurers facilitate security investments between interdependent firms, which get the opportunity to invest a share of their insurance premiums to improve the security of each other. It is demonstrated that if insurers can facilitate such investments, then under common theoretical assumptions this can make a positive contribution to overall welfare. The paper is concluded by a discussion of the relevance and applicability of this theoretical contribution in practice.</div></div>","PeriodicalId":46094,"journal":{"name":"Research in Economics","volume":"79 3","pages":"Article 101059"},"PeriodicalIF":1.2,"publicationDate":"2025-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143738962","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-06-01Epub Date: 2025-01-27DOI: 10.1016/j.rie.2025.101043
Obaika M. Ohikhuare, Oluwatomisin J. Oyewole
This paper examines how global factors influence the asymmetric connectedness among G7 REITs markets. It hypothesizes that bearish markets may exhibit higher connectedness than bullish markets because people react more to losses than gains. Using the extended TVP-VAR model, the study estimates connectedness indexes under three market conditions across three samples: pre-crisis, crisis, and full sample. The findings reveal that REIT markets are more connected in bearish conditions than in bullish ones, even when connectedness was heightened during crises. Additionally, the study reveals that market conditions can alter risk and opportunity spillover structures among G7 REITs, making assets considered safe in one market risky in another, especially during crises. We further explain how geopolitical risks and climate policy uncertainty drive crude oil returns and how they collectively influence G7 REITs' connectedness. To achieve this, we employed both causality-in-quantile and quantile regression techniques. We found that these factors have a heterogeneous impact on total connectedness across market conditions, samples, and quantiles, offering valuable insights for policymakers and investors.
{"title":"Asymmetric connectedness among the G7 REITs market: How important are oil returns, climate policy uncertainty, and geopolitical risks?","authors":"Obaika M. Ohikhuare, Oluwatomisin J. Oyewole","doi":"10.1016/j.rie.2025.101043","DOIUrl":"10.1016/j.rie.2025.101043","url":null,"abstract":"<div><div>This paper examines how global factors influence the asymmetric connectedness among G7 REITs markets. It hypothesizes that bearish markets may exhibit higher connectedness than bullish markets because people react more to losses than gains. Using the extended TVP-VAR model, the study estimates connectedness indexes under three market conditions across three samples: pre-crisis, crisis, and full sample. The findings reveal that REIT markets are more connected in bearish conditions than in bullish ones, even when connectedness was heightened during crises. Additionally, the study reveals that market conditions can alter risk and opportunity spillover structures among G7 REITs, making assets considered safe in one market risky in another, especially during crises. We further explain how geopolitical risks and climate policy uncertainty drive crude oil returns and how they collectively influence G7 REITs' connectedness. To achieve this, we employed both causality-in-quantile and quantile regression techniques. We found that these factors have a heterogeneous impact on total connectedness across market conditions, samples, and quantiles, offering valuable insights for policymakers and investors.</div></div>","PeriodicalId":46094,"journal":{"name":"Research in Economics","volume":"79 2","pages":"Article 101043"},"PeriodicalIF":1.2,"publicationDate":"2025-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143403184","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study evaluates threshold impact of remittances on economic growth based on data for a sample of BRICS countries for the period 1994–2018. In doing so, we employ Panel Smooth Transition Regression (PSTR), which captures both heterogeneity and nonlinearity of smooth transition in estimated coefficients from one extreme to another regime. Based on the PSTR model results, the threshold of remittance ranges between 4.82 and 30.65 % for remittance percentage of GDP (RPG) in BRICS countries. Similarly, threshold estimated value of remittance varies from 27.45 to 30.76 % for the remittances received to paid ratio (RRP). We obtained extreme lower and extreme higher regimes characterized by smooth and sharp transitions in growth-remittances nexus conditional upon control variables for RPG under CG and L-BFGS-B algorithms, respectively. The findings suggest that remittance has a positive impact on economic growth under lower regime and negative impact under higher regime. As per the regression results, remittance has positive impact on economic growth below the estimated threshold whereas above the threshold remittance has negative consequences on economic growth. In addition, investment from abroad becomes growth neutral beyond the threshold. However, below the threshold foreign direct investment improves economic growth. In contrast, gross fixed capital formation substantially accelerates economic growth irrespective of extreme regimes underestimated threshold. Nevertheless, findings of trade balance impact on economic growth is estimated to be negative when it crosses the threshold of remittance. This study offers conspicuous policy suggestions based on the non-linear nexus of remittance and economic growth for BRICS countries.
{"title":"Remittance and economic growth nexus in BRICS countries: Evidence from PSTR with endogeneity","authors":"Kalandi Charan Pradhan , Lingaraj Mallick , Kalu Naik","doi":"10.1016/j.rie.2025.101032","DOIUrl":"10.1016/j.rie.2025.101032","url":null,"abstract":"<div><div>This study evaluates threshold impact of remittances on economic growth based on data for a sample of BRICS countries for the period 1994–2018. In doing so, we employ Panel Smooth Transition Regression (PSTR), which captures both heterogeneity and nonlinearity of smooth transition in estimated coefficients from one extreme to another regime. Based on the PSTR model results, the threshold of remittance ranges between 4.82 and 30.65 % for remittance percentage of GDP (RPG) in BRICS countries. Similarly, threshold estimated value of remittance varies from 27.45 to 30.76 % for the remittances received to paid ratio (RRP). We obtained extreme lower and extreme higher regimes characterized by smooth and sharp transitions in growth-remittances nexus conditional upon control variables for RPG under CG and L-BFGS-B algorithms, respectively. The findings suggest that remittance has a positive impact on economic growth under lower regime and negative impact under higher regime. As per the regression results, remittance has positive impact on economic growth below the estimated threshold whereas above the threshold remittance has negative consequences on economic growth. In addition, investment from abroad becomes growth neutral beyond the threshold. However, below the threshold foreign direct investment improves economic growth. In contrast, gross fixed capital formation substantially accelerates economic growth irrespective of extreme regimes underestimated threshold. Nevertheless, findings of trade balance impact on economic growth is estimated to be negative when it crosses the threshold of remittance. This study offers conspicuous policy suggestions based on the non-linear nexus of remittance and economic growth for BRICS countries.</div></div>","PeriodicalId":46094,"journal":{"name":"Research in Economics","volume":"79 2","pages":"Article 101032"},"PeriodicalIF":1.2,"publicationDate":"2025-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143360802","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-06-01Epub Date: 2025-01-25DOI: 10.1016/j.rie.2025.101039
Lingaraj Mallick
I examine the sustainability of CAD by employing both linear and threshold cointegration (Enders and Siklos, 2001) and Engle-Granger (1987) from the period 1960 to 2019. Results of the threshold and Engle-Granger cointegration confirm long-run equilibrium association between exports and imports indicating strong presence of sustainability of CAD in India. This reveals that after certain threshold level of current account deficit i.e., 3%, both export and import have different speed of adjustment towards long-run and their adjustment is asymmetric in nature. These results reveal that after certain threshold level of current account deficit, there should be systematic policy to adjust short-run behaviour of imports to bring back to the long-run for sustainability of current account deficit in India. The policy makers should consider the nonlinear behaviour of current account deficit while formulating any policy prescription towards sustainability of current account deficit in India. The export sector has to be encouraged and the import sector has to be restricted by implementing tight import restricted policies. Further, based on the threshold cointegration and asymmetric error correction mechanism, after estimated threshold, both exports and imports react differently to short-run positive and negative shocks. However, sufficient condition of intertemporal budget constraint is not satisfied by NARDL method. Overall findings conclude that CAD in India is weakly sustainable. Following the empirical results some policy suggestions are suggested.
从1960年到2019年，我通过采用线性和阈值协整（Enders and Siklos, 2001）和Engle-Granger（1987）来检验CAD的可持续性。阈值和恩格尔-格兰杰协整的结果证实了出口和进口之间的长期均衡关联，表明印度CAD的可持续性很强。这表明，在一定的经常账户赤字阈值水平（即3%）之后，出口和进口都有不同的长期调整速度，其调整本质上是不对称的。这些结果表明，在一定的经常账户赤字阈值水平之后，应该有系统的政策来调整进口的短期行为，以使印度的经常账户赤字回到长期的可持续性。政策制定者在制定印度经常账户赤字可持续性政策处方时，应考虑经常账户赤字的非线性行为。必须鼓励出口部门，并通过执行严格的进口限制政策来限制进口部门。此外，基于阈值协整和非对称误差修正机制，在估计阈值后，出口和进口对短期正冲击和负冲击的反应不同。然而，该方法不满足跨期预算约束的充分条件。总体结果表明，印度CAD的可持续性较弱。根据实证结果，提出了政策建议。
{"title":"Re-assessment of sustainability of current account deficit in India: Insights from threshold cointegration and NARDL analysis","authors":"Lingaraj Mallick","doi":"10.1016/j.rie.2025.101039","DOIUrl":"10.1016/j.rie.2025.101039","url":null,"abstract":"<div><div>I examine the sustainability of CAD by employing both linear and threshold cointegration (<span><span>Enders and Siklos, 2001</span></span>) and <span><span>Engle-Granger (1987)</span></span> from the period 1960 to 2019. Results of the threshold and Engle-Granger cointegration confirm long-run equilibrium association between exports and imports indicating strong presence of sustainability of CAD in India. This reveals that after certain threshold level of current account deficit i.e., 3%, both export and import have different speed of adjustment towards long-run and their adjustment is asymmetric in nature. These results reveal that after certain threshold level of current account deficit, there should be systematic policy to adjust short-run behaviour of imports to bring back to the long-run for sustainability of current account deficit in India. The policy makers should consider the nonlinear behaviour of current account deficit while formulating any policy prescription towards sustainability of current account deficit in India. The export sector has to be encouraged and the import sector has to be restricted by implementing tight import restricted policies. Further, based on the threshold cointegration and asymmetric error correction mechanism, after estimated threshold, both exports and imports react differently to short-run positive and negative shocks. However, sufficient condition of intertemporal budget constraint is not satisfied by NARDL method. Overall findings conclude that CAD in India is weakly sustainable. Following the empirical results some policy suggestions are suggested.</div></div>","PeriodicalId":46094,"journal":{"name":"Research in Economics","volume":"79 2","pages":"Article 101039"},"PeriodicalIF":1.2,"publicationDate":"2025-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143264545","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-06-01Epub Date: 2025-02-08DOI: 10.1016/j.rie.2025.101036
Luiggi Donayre, Lacey Loomer
We relax the assumption that recessions are all alike in studying whether U.S. health care employment is recession-proof. Because health care services are inelastic and largely driven by costs, we argue that economic conditions influence health care employment only to the extent that they significantly affect health care wage growth. Using U.S. monthly data for 1990–2022, we estimate a threshold vector autoregression that allows for regime-dependent negative demand and negative supply shocks in examining the response of health care employment growth in recessionary periods. When wage growth is high as determined by an endogenously-estimated threshold, we find a large and significant reduction in health care employment growth during demand-induced recessions and a smaller decline during supply-induced recessions. Meanwhile, health care employment growth does not respond significantly to negative demand or supply shocks in the low-cost regime. Further, a disaggregated analysis evidences large heterogeneity across sub-sectors. In this way, our findings reveal that both the source of the shock and health care wage growth are important in explaining health care employment dynamics. Thus, health care organizations that are more labor cost efficient will be more insulated from economic disruptions.
{"title":"Regime-dependent health care employment dynamics in recessions","authors":"Luiggi Donayre, Lacey Loomer","doi":"10.1016/j.rie.2025.101036","DOIUrl":"10.1016/j.rie.2025.101036","url":null,"abstract":"<div><div>We relax the assumption that recessions are all alike in studying whether U.S. health care employment is recession-proof. Because health care services are inelastic and largely driven by costs, we argue that economic conditions influence health care employment only to the extent that they significantly affect health care wage growth. Using U.S. monthly data for 1990–2022, we estimate a threshold vector autoregression that allows for regime-dependent negative demand and negative supply shocks in examining the response of health care employment growth in recessionary periods. When wage growth is high as determined by an endogenously-estimated threshold, we find a large and significant reduction in health care employment growth during demand-induced recessions and a smaller decline during supply-induced recessions. Meanwhile, health care employment growth does not respond significantly to negative demand or supply shocks in the low-cost regime. Further, a disaggregated analysis evidences large heterogeneity across sub-sectors. In this way, our findings reveal that both the source of the shock and health care wage growth are important in explaining health care employment dynamics. Thus, health care organizations that are more labor cost efficient will be more insulated from economic disruptions.</div></div>","PeriodicalId":46094,"journal":{"name":"Research in Economics","volume":"79 2","pages":"Article 101036"},"PeriodicalIF":1.2,"publicationDate":"2025-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143378781","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-06-01Epub Date: 2025-02-07DOI: 10.1016/j.rie.2025.101044
Brandon Parsons
This comprehensive study examines the effects of economic freedom on corruption in a panel of 92 developing countries from 1995 to 2021. The study uses two composite measures of economic freedom: the Fraser Institute and the Heritage Foundation. The study also tests individual subcomponents of each composite economic freedom measure (e.g., regulation and government size). The study finds composite economic freedom measures moderate corruption. The results are robustly tested and consistent across three corruption measures (i.e., ICRG, Transparency International, World Bank), model specifications, and econometric frameworks (e.g., OLS, FE, RE, FGLS, GMM). The study uses the Method of Moment quantile econometric framework to test if there is an uneven effect based on the corruption environment (e.g., low corruption versus high corruption). The study finds economic freedom reduces corruption even in countries with the most rampant corruption, which counters findings from other studies. Economic freedom subcomponent analysis reveals property rights protection and deregulation are particularly effective at reducing corruption. One dimension of economic freedom that can exacerbate corruption is smaller governments, as they may lack the capacity to provide adequate oversight and enforcement of laws and regulations.
{"title":"Unpacking corruption: The role of economic freedom in developing countries","authors":"Brandon Parsons","doi":"10.1016/j.rie.2025.101044","DOIUrl":"10.1016/j.rie.2025.101044","url":null,"abstract":"<div><div>This comprehensive study examines the effects of economic freedom on corruption in a panel of 92 developing countries from 1995 to 2021. The study uses two composite measures of economic freedom: the Fraser Institute and the Heritage Foundation. The study also tests individual subcomponents of each composite economic freedom measure (e.g., regulation and government size). The study finds composite economic freedom measures moderate corruption. The results are robustly tested and consistent across three corruption measures (i.e., ICRG, Transparency International, World Bank), model specifications, and econometric frameworks (e.g., OLS, FE, RE, FGLS, GMM). The study uses the Method of Moment quantile econometric framework to test if there is an uneven effect based on the corruption environment (e.g., low corruption versus high corruption). The study finds economic freedom reduces corruption even in countries with the most rampant corruption, which counters findings from other studies. Economic freedom subcomponent analysis reveals property rights protection and deregulation are particularly effective at reducing corruption. One dimension of economic freedom that can exacerbate corruption is smaller governments, as they may lack the capacity to provide adequate oversight and enforcement of laws and regulations.</div></div>","PeriodicalId":46094,"journal":{"name":"Research in Economics","volume":"79 2","pages":"Article 101044"},"PeriodicalIF":1.2,"publicationDate":"2025-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143387363","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-06-01Epub Date: 2025-01-27DOI: 10.1016/j.rie.2025.101029
Kunz Modeste Mbenga Bindop, Benjamin Fomba Kamga
Health during childhood is a key determinant of future outcomes. However, some children start life in an unfavourable situation just because of their family inheritance. This study analyses mother's health effect on their offspring's health aged 0–12 years, and the interaction between mothers’ health and education in the child's health production. By using an original instrument and applying an endogenous multivariate probit to the last two “Enquêtes Camerounaises Auprès des Ménages” (ECAM 3 and 4), the study reveals an intergenerational transmission of health during childhood life and the complementarity of mothers' health and educational capital in the production of health for their children. Although inequalities in health decrease with the mother's educational level, there are thresholds beyond which this effect fade due to the potential excessive participation of women in the labour market. The fall in this phenomenon in the older cohort (6 to 12 years) reveals the importance for the most educated mothers to make a more altruistic trade-off between economic work and childcare in the first five years of their offspring's lives. However, the self-assessed use of healthcare by children reported by parents could be a limitation inherent to the quality of the data used in the Cameroonian context.
{"title":"The intergenerational transmission of health during childhood","authors":"Kunz Modeste Mbenga Bindop, Benjamin Fomba Kamga","doi":"10.1016/j.rie.2025.101029","DOIUrl":"10.1016/j.rie.2025.101029","url":null,"abstract":"<div><div>Health during childhood is a key determinant of future outcomes. However, some children start life in an unfavourable situation just because of their family inheritance. This study analyses mother's health effect on their offspring's health aged 0–12 years, and the interaction between mothers’ health and education in the child's health production. By using an original instrument and applying an endogenous multivariate probit to the last two “Enquêtes Camerounaises Auprès des Ménages” (ECAM 3 and 4), the study reveals an intergenerational transmission of health during childhood life and the complementarity of mothers' health and educational capital in the production of health for their children. Although inequalities in health decrease with the mother's educational level, there are thresholds beyond which this effect fade due to the potential excessive participation of women in the labour market. The fall in this phenomenon in the older cohort (6 to 12 years) reveals the importance for the most educated mothers to make a more altruistic trade-off between economic work and childcare in the first five years of their offspring's lives. However, the self-assessed use of healthcare by children reported by parents could be a limitation inherent to the quality of the data used in the Cameroonian context.</div></div>","PeriodicalId":46094,"journal":{"name":"Research in Economics","volume":"79 2","pages":"Article 101029"},"PeriodicalIF":1.2,"publicationDate":"2025-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143387362","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-06-01Epub Date: 2025-02-03DOI: 10.1016/j.rie.2025.101037
P. Wesley Routon , Jay K. Walker
School starting age policies typically result in academic cohorts where the oldest students are approximately a full year older than their youngest peers. A student’s relative age in their cohort has been shown to have significant effects on a growing list of outcomes, academic and non-academic. On average, relatively older students have been found to perform better in school, particularly during early education. Some evidence exists they continue to fare better in post-college labor markets. Soft skills, satisfaction with education, and collegiate differentials, generally, have received less attention. Using a sample of students from hundreds of U.S. colleges and universities, we estimate the effects of relative age on student satisfaction with higher education and their perceived gains in 13 knowledge and skill categories during undergraduate tenure. College GPAs are also examined. Controlling for other factors, relatively older students report smaller gains in a large number of skill and knowledge categories. In none of the categories available for analysis do they report higher average gains. This does not appear due to academic achievement or involvement, as they also earn similar grades, on average, and report feeling similarly satisfied with their overall collegiate experience and instruction specifically. Thus, while relatively older students earn similar grades and leave college no less satisfied, they perceive to have benefited less from higher education in terms of skill and knowledge gains.
{"title":"Relative age, college satisfaction, and student perceptions of skills gained","authors":"P. Wesley Routon , Jay K. Walker","doi":"10.1016/j.rie.2025.101037","DOIUrl":"10.1016/j.rie.2025.101037","url":null,"abstract":"<div><div>School starting age policies typically result in academic cohorts where the oldest students are approximately a full year older than their youngest peers. A student’s relative age in their cohort has been shown to have significant effects on a growing list of outcomes, academic and non-academic. On average, relatively older students have been found to perform better in school, particularly during early education. Some evidence exists they continue to fare better in post-college labor markets. Soft skills, satisfaction with education, and collegiate differentials, generally, have received less attention. Using a sample of students from hundreds of U.S. colleges and universities, we estimate the effects of relative age on student satisfaction with higher education and their perceived gains in 13 knowledge and skill categories during undergraduate tenure. College GPAs are also examined. Controlling for other factors, relatively older students report smaller gains in a large number of skill and knowledge categories. In none of the categories available for analysis do they report higher average gains. This does not appear due to academic achievement or involvement, as they also earn similar grades, on average, and report feeling similarly satisfied with their overall collegiate experience and instruction specifically. Thus, while relatively older students earn similar grades and leave college no less satisfied, they perceive to have benefited less from higher education in terms of skill and knowledge gains.</div></div>","PeriodicalId":46094,"journal":{"name":"Research in Economics","volume":"79 2","pages":"Article 101037"},"PeriodicalIF":1.2,"publicationDate":"2025-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143350670","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-06-01Epub Date: 2025-01-30DOI: 10.1016/j.rie.2025.101038
Roni Frish
This study examines the impact of the Government Mandatory Pension Order (GMPO) on household consumption. The GMPO, which came into force in Israel in 2008, required contributing to a pension fund at a gradually increasing rate, up to 17.5 percent of wages in 2014 and afterwards. The study uses a diff-in-diff method to compare the development of household consumption expenditure where the household heads did not contribute to a pension fund before 2008 (“Treated”), with that of a group doing so willingly before 2008 ("Control"). The data sources are Israel's Central Bureau of Statistics’ annual Household Expenditure Surveys for the period 2004 through 2016 and Israel Tax Authority data on personal pension contributions. The study rejects the null hypothesis that the treatment has null effect on the consumption of the treated group in the treatment period. However, since the p-value is between 0.05–0.10 the study could not reject the null hypothesis for the conventional p-value threshold of 0.05.
{"title":"The effect of mandated savings on private consumption: Evidence from Israel's pension reform","authors":"Roni Frish","doi":"10.1016/j.rie.2025.101038","DOIUrl":"10.1016/j.rie.2025.101038","url":null,"abstract":"<div><div>This study examines the impact of the Government Mandatory Pension Order (GMPO) on household consumption. The GMPO, which came into force in Israel in 2008, required contributing to a pension fund at a gradually increasing rate, up to 17.5 percent of wages in 2014 and afterwards. The study uses a diff-in-diff method to compare the development of household consumption expenditure where the household heads did not contribute to a pension fund before 2008 (“Treated”), with that of a group doing so willingly before 2008 (\"Control\"). The data sources are Israel's Central Bureau of Statistics’ annual Household Expenditure Surveys for the period 2004 through 2016 and Israel Tax Authority data on personal pension contributions. The study rejects the null hypothesis that the treatment has null effect on the consumption of the treated group in the treatment period. However, since the p-value is between 0.05–0.10 the study could not reject the null hypothesis for the conventional p-value threshold of 0.05.</div></div>","PeriodicalId":46094,"journal":{"name":"Research in Economics","volume":"79 2","pages":"Article 101038"},"PeriodicalIF":1.2,"publicationDate":"2025-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143205102","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-06-01Epub Date: 2025-01-31DOI: 10.1016/j.rie.2025.101025
Joan E. Madia , Francesco Moscone , Asieh Hosseini Tabaghdehi , Jong-Chol An , Changkeun Lee
This study investigates the link between taxation and fertility in South Korea, focusing on the historical period surrounding the mid-70s tax reforms. The longstanding decline in fertility rates has been widely discussed in relation to factors such as increasing human capital, women’s employment, and rising housing costs, leading couples to postpone or forego childbearing decisions. However, less attention has been paid to how tax policies that influence disposable income and economic planning horizons could indirectly affect fertility choices. While taxation is crucial for funding social security systems, policies that reduce household resources without considering demographic impacts may have unintended consequences on population dynamics. Using a time-series of country-year from the World Bank, we exploit South Korea’s major mid-1970s tax reforms as a natural experiment to test the hypothesis that higher tax burdens also contributed to reducing fertility over the subsequent decades. The results suggest considerable negative effect of the mid-1970s tax reforms on fertility in South Korea. This macro-analysis shows tax policies can influence population dynamics, but lacks insight into how tax changes affected childbearing decisions at the household level. Future micro-level studies could reveal mechanisms linking tax policies and fertility behavior. Still, this study highlights potential demographic impacts of taxation policies. Policymakers should consider such consequences when modifying tax systems, especially policies related to family resources and child affordability.
{"title":"Fertility decline and tax revenues in South Korea","authors":"Joan E. Madia , Francesco Moscone , Asieh Hosseini Tabaghdehi , Jong-Chol An , Changkeun Lee","doi":"10.1016/j.rie.2025.101025","DOIUrl":"10.1016/j.rie.2025.101025","url":null,"abstract":"<div><div>This study investigates the link between taxation and fertility in South Korea, focusing on the historical period surrounding the mid-70s tax reforms. The longstanding decline in fertility rates has been widely discussed in relation to factors such as increasing human capital, women’s employment, and rising housing costs, leading couples to postpone or forego childbearing decisions. However, less attention has been paid to how tax policies that influence disposable income and economic planning horizons could indirectly affect fertility choices. While taxation is crucial for funding social security systems, policies that reduce household resources without considering demographic impacts may have unintended consequences on population dynamics. Using a time-series of country-year from the World Bank, we exploit South Korea’s major mid-1970s tax reforms as a natural experiment to test the hypothesis that higher tax burdens also contributed to reducing fertility over the subsequent decades. The results suggest considerable negative effect of the mid-1970s tax reforms on fertility in South Korea. This macro-analysis shows tax policies can influence population dynamics, but lacks insight into how tax changes affected childbearing decisions at the household level. Future micro-level studies could reveal mechanisms linking tax policies and fertility behavior. Still, this study highlights potential demographic impacts of taxation policies. Policymakers should consider such consequences when modifying tax systems, especially policies related to family resources and child affordability.</div></div>","PeriodicalId":46094,"journal":{"name":"Research in Economics","volume":"79 2","pages":"Article 101025"},"PeriodicalIF":1.2,"publicationDate":"2025-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143135590","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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