560 research outputs found
Age-dependent Skill Formation and Returns to Education
No full textIn this study, we try to connect the economic literature on human capital formation with findings from neurobiology and psychology on early childhood development and self-regulation. Our basic framework for assessing the distribution of agespecific returns to investment in skills is an elaboration of the model of skill formation from Cunha, Heckman et al. (2006) over the life cycle. Our simulation based evidence illustrates the cumulative and synergetic nature of skill formation, the skill multiplier and the shaping role early childhood has for human capital formation, growth and inequality. --Intelligence,self-regulation,human capital,returns to education,life span
Household Use of Financial Planners: Measurement Considerations for Researchers
No full textCitation: Heckman, Stuart J. and Seay, Martin C and Kim, Kyoung Tae and Letkiewicz, Jodi, Household Use of Financial Planners: Measurement Considerations for Researchers (November 2, 2016). Financial Services Review, Vol. 25, p. 427-446, 2016.Using the Certified Financial Planner (CFP) Board’s definition of financial planning, this paper evaluates the validity of the measures of financial planner use in publicly available datasets. A review of Financial Services Review, Journal of Personal Finance, Journal of Financial Planning, Journal of Family and Economic Issues, Journal of Consumer Affairs, and Journal of Financial Counseling and Planning identified seven datasets that were commonly used to investigate financial planner use. Of these, the two most promising measures were found in the Survey of Consumer Finances and the National Longitudinal Study of Youth (1979). However, an evaluation of these measures raises significant concerns related to their validity. This article critically evaluates these measures and provides insights into the development of better measures of financial planner use for the future
Three Essays on Regulatory Policy and Investor Protection
No full textRegulation and investor protection within the financial services industry ensure financial systems' stability, integrity, and fairness for households, businesses, and the overall economic system. Those three studies examine the effectiveness of government and regulatory policy and investor protection on firms, investment advisors, and household levels. The first study uses hierarchical linear models and hand-collect datasets of over 3,600 individuals and 207 publicly traded financial services firms to examine the effectiveness of the California CB 826 mandate on gender board representation and the possible pay gap in the financial services sector. The findings reveal that the gender gap in the financial services sector's board representation has reduced over time, particularly following the California CB 826 mandate for board diversity. However, despite increased female representation on boards, the pay disparities between male and female board members still persist in the financial services sector.
The second essay uses the multivariate probit model and SEC’s Investment Adviser Public Disclosure dataset to explore the connection between the SEC’s Marketing Rule and investment advisers and their firms' advisory services and the possible association between disciplinary records and advertisement usage. The findings show the complex interplay among marketing activities, advisory services, and regulatory compliance within the financial services landscape. The third article uses canonical correlation analysis and the 2021 National Financial Capability Study (NFCS) to discover the potential relationship between investment product types and 1) information sources, 2) market regulation, and 3) financial and investment knowledge when investors make investment decisions. The results show that investors rely on various information sources and social media platforms for their investment choices. The findings also reveal financial and investment knowledge is important in navigating information sources and selecting investment products.Embargo status: Restricted until 06/2027. To request the author grant access, click on the PDF link to the left
Orville and Wilbur Wright at Fort Myer
No full textWilbur Wright (center with Orville Wright (right and a third person walking at Fort Myer, July 1909. Note verso, Given to Mabel Beck by Mrs. Stuart (Miss Heckman April, 1937.https://corescholar.libraries.wright.edu/special_ms1_photographs/1839/thumbnail.jp
A cost-benefit approach to labor market reform
No full textLabor reforms in Latin America have been scarce compared with the pace of structural reforms aimed at liberalizing product and capital markets. Some analysts contend that without continued liberalization labor market performance will fail to improve, hindering Latin American economies’ ability to compete in international markets. ; This article assesses labor market regulations in Latin America, documents their recent history, and assesses their costs and benefits. The author argues that existing regulatory systems, while generating costs in terms of labor market performance, constitute the base (albeit imperfect) of social protection policies in Latin America. ; Compared with industrialized countries, Latin American countries have more protective labor regulations governing working conditions and job security but lower social security benefits. Evidence from the existing literature points to sizable negative effects of mandatory benefits, particularly social security contributions, on employment. Job security provisions tend to bias employment toward prime-age workers and away from younger and less skilled workers. ; Since the demand for social protection in Latin America appears to be large, the author argues that reforms that seek only labor market deregulation do not address this demand. It is tempting to conclude that the solution lies in designing and implementing less costly social protection mechanisms, but the alternatives are not exempt from costs and are not warranted to improve upon existing systems. In these circumstances, the author recommends a mix of research, policy experimentation, and policy evaluation to find solutions that maximize benefits while minimizing costs.Economic stabilization ; Labor market
Determinants for Use of Certified Maize Seed and the Relative Importance of Transaction Costs
No full textThe rising world prices for major tradable staples such as maize have been a concern for sub- Saharan countries such as Kenya which are maize deficit countries. Maize is a major staple food for over 80 percent of Kenya’s population. Kenya relies on maize for up to 40 percent of its dietary energy supply and is accordingly searching for ways to increase maize productivity. Maize productivity has been rising in the last decade manly as a result of the use of improved germplasm and fertilizer. However, the proportion of farmers using these technologies is low and the aggregate productivity in maize is low compared to other countries and its potential. Previous studies on input adoption have often assumed the existence of perfect supply and product markets, tending to ignore the important but significant role played by institutions as well as the role of transaction costs associated with market exchange. This study makes use of qualitative information from institutions and actors in seed input value chains as well as quantitative information collected from a sample of 150 farmers, in the Moist Transitional Maize Zones of Kenya. A two stage regression model was applied to analyze determinants of adoption and factors affecting degree of adoption of certified improved maize seed. The results show that as farmers adopt certified seeds, they incur higher transaction costs than non adopters, rural infrastructure, social capital such as membership in groups and trust play an important role in the decision of whether or not to use certified seed.Crop Production/Industries,
Three Essays on U.S. Households Investment and Economic Behavior: Crypto Investments, Green Financial Advisory and Alternative Investment Decisions
No full textThis dissertation aims to expand our understanding of how innovative financial products, including cryptocurrencies, sustainable investments (ESG), and alternative investments, drive U.S. household financial decisions and how these decisions are associated with financial well-being, financial advisory fees, and economic and inflationary expectations of households. The findings of these papers provide new insights and policy implications for household investment behaviors if they invest in cryptos, ESG-related products, and alternative investments.
Each essay in the dissertation uses the theoretical framework to analyze the U.S. household’s investment behavior. The first essay employs the Salience theory of Choice under uncertainty (Bordalo et al., 2012) to explore the connection between household financial well-being and cryptocurrency investments using UAS data from 2015 to 2018. The Pooled regression model based on the Chow test determined the appropriate alternative models, which found that financial well-being lowers the probability of cryptocurrency investment decisions. The heteroskedasticity problem was addressed with the help of Bootstrapping, Feasible Generalised Least square (FGLS), and Robust HCCM. However, results were consistent after solving the heteroskedasticity problem, and households’ financial well-being was negatively associated with crypto asset ownership in their portfolios.
Further, the interaction of crypto investment and financial advice did not moderate the association between crypto ownership and households’ financial well-being. This indicates that financial advice gives general advantages but does not create significant changes between crypto ownership and financial well-being. Bitcoin literacy failed to demonstrate any difference in its positive relationship between crypto ownership and households' financial well-being regardless of crypto ownership status.
The second essay employs the Value-Belief-Norm (VBN) theory (Stern et al., 1999) to study financial advice, social preferences, and financial literacy on U.S. households' decisions to pay higher investment fees for sustainable investments. The analysis includes data from the 2021 National Financial Capability Study (NFCS) Investor Survey across 1,840 households, demonstrating that particular investors will accept premium fees supporting ESG initiatives. Individuals who explained that their social preferences describe their investment behaviors towards sustainable investing were statistically positively associated with high investment fees. Both investors with high objective and subjective financial literacy did not demonstrate significant relationships with their investment fees. However, a negative relationship existed between fees above 0.5% and 4% among participants who scored well on objective financial literacy measures. Implementing financial advisors as advisory investment fee providers showed a negative statistical connection to investment fees exceeding 0.5% to 4%. This research shows that understanding finances affects sustainable investment decisions through challenges to classical risk-return financial models.
The third essay employs prospect theory (Tversky & Kahneman, 1979). Household choices regarding alternative investments are explained by their economic and inflation expectations as measured in the United States. Households invest in high-risk opportunities such as private equity or hedge funds when they show optimistic economic expectations. Real estate and commodities have become favored investments by investors worried about inflation. Also, financial advisors can affect these decisions when households experience uncertainty about their expectations. This study employs Survey of Consumer Finance (SCF) data from 2010-2020 cross-sectional waves to examine household expectations and determine how economic and inflation expectations impact households’ alternative investment decisions.
These three essays and their theoretical views create future research potential by expanding the household financial decision literature through a complete understanding of U.S. household investment choices related to crypto, ESG, and alternative investments
Three essays exploring financial wellness and financial health
No full textFinancial wellness and health are crucial in today’s society as they influence an individual’s overall well-being daily. Policymakers, financial planners, financial educators, and researchers are paying ongoing attention to financial wellness and health topics. As many individuals face financial difficulties, understanding the factors influencing financial wellness and health can help develop better-targeted interventions. Three essays in this dissertation attempted to examine the underlying factors that can impact different aspects of financial health and wellness in different contexts and cultures, in the hope of contributing some recommendations for better individual health and wellness
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