KyklosPub Date : 2023-06-30DOI: 10.1111/kykl.12342
Joan Costa-Font, Anna Nicińska
{"title":"Comrades in the family? Soviet communism and demand for family insurance","authors":"Joan Costa-Font, Anna Nicińska","doi":"10.1111/kykl.12342","DOIUrl":"https://doi.org/10.1111/kykl.12342","url":null,"abstract":"<p>We study how exposure to (Soviet) communism (EC), a political-economic regime based on collectivist state planning, affected the preferences for family support, which we refer to as informal family insurance. Against the backdrop that ‘communism gave rise to the abolition of the family’, we document that it actually strengthened the preference (the demand) for informal family insurance without depressing individuals' preferences for social insurance. We exploit cross-country and cohort variation in EC on more than 314,000 individuals living in 33 Central and Eastern European countries, among which 14 had been subject to communist regimes. We estimate that EC gave rise to 9.6 percentage point (pp) increase in the preference for family care for older parent and 4.3 pp increase in the support (both financial and nonfinancial) for children. These effects are explained by the strengthening of social and family networks that resulted from the erosion of generalized, interpersonal and institutional trust, rather than by ‘indoctrination effects’ during Soviet communism times.</p>","PeriodicalId":47739,"journal":{"name":"Kyklos","volume":"76 4","pages":"526-612"},"PeriodicalIF":1.9,"publicationDate":"2023-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/kykl.12342","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50148524","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
KyklosPub Date : 2023-06-29DOI: 10.1111/kykl.12348
Li Lai, Zhi Wang, Hanyi Tian, Frank Yu
{"title":"Military managers and earnings management","authors":"Li Lai, Zhi Wang, Hanyi Tian, Frank Yu","doi":"10.1111/kykl.12348","DOIUrl":"https://doi.org/10.1111/kykl.12348","url":null,"abstract":"<p>In a developing market, where the ownership is highly concentrated and the central governance issue is the conflict between majority and minority shareholders, how do managers with previous military experience (military managers) affect the quality of financial reporting? We use a sample of Chinese listed firms over period 2006–2016, with a total of 16,010 firm-year observations. Our results suggest that firms with military managers are associated with higher levels of earnings management, through both accrual-based and real-activities manipulations. Those firms are more susceptible to financial restatements, qualified audit opinions, and penalties for violation. To alleviate endogeneity problems, we use both the instrumental variable regression and propensity score matching, and our results are robust. In addition, the effect of military managers is more pronounced in state-owned firms and firms with weak internal control systems. These findings improve our understanding of the link between managerial traits and financial reporting decisions, in an environment where the major governance issue is the conflict between majority and minority shareholders.</p>","PeriodicalId":47739,"journal":{"name":"Kyklos","volume":"76 4","pages":"724-748"},"PeriodicalIF":1.9,"publicationDate":"2023-06-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50155544","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
KyklosPub Date : 2023-06-29DOI: 10.1111/kykl.12347
Ingemar Bengtsson
{"title":"A market for citizenships: Should citizenship be commodified?","authors":"Ingemar Bengtsson","doi":"10.1111/kykl.12347","DOIUrl":"https://doi.org/10.1111/kykl.12347","url":null,"abstract":"<p>Starting from the assumption that citizenship is property that would be more valuable if it were transferable, the paper explores the idea of commodification of citizenship. The paper provides arguments in favor of commodification and recommendations to how the market for citizenships should be designed. A market for citizenships could result in an improved matching between employer and employee when citizens swap citizenship with each other. Successful States could issue new citizenships and thus make it possible for a greater share of the world population to live and work within the countries with the best institutions. The combined effect would be a higher global productivity. Additionally, market prices on citizenships would provide information on institutional quality and thus provide politicians with information on voters' preferences as well as voters with information on the quality of the work of the government. The market value of a tradable citizenship is also found to be a candidate as tax base for a redistributive tax on a global level that could address some of the inherent inequality with birthright citizenships. Those potential benefits aside, several problems with a market for citizenship are also found and discussed, among those the age-dependent value of citizenships.</p>","PeriodicalId":47739,"journal":{"name":"Kyklos","volume":"76 4","pages":"705-723"},"PeriodicalIF":1.9,"publicationDate":"2023-06-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/kykl.12347","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50155543","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
KyklosPub Date : 2023-06-29DOI: 10.1111/kykl.12344
Simona Rasciute
{"title":"Parental education and child health: The exploration of the cross-gender intergenerational transmission mechanism","authors":"Simona Rasciute","doi":"10.1111/kykl.12344","DOIUrl":"https://doi.org/10.1111/kykl.12344","url":null,"abstract":"<p>This paper analyses the causal effects of different levels of mother's and father's education on child general and mental health, by applying a fixed effects instrumental variable panel data estimator with selection to nationally represented longitudinal data of over 13,000 observations in the United Kingdom from 2008 to 2019. The results reveal a negative association between mother's education and boys' mental health, potentially driven by relative rather than absolute levels of education between parents. Differences in educational attainment between parents signal unequal power and different values, which inhibits conflict resolution and commitment, leading to higher likelihood of breaking up, which in turn may negatively affect child mental health. On the contrary, no evidence is found of causal links between different levels of mother's and father's education on child health, indicating the relevance of potential environmental factors in the intergenerational transmission mechanism. This calls for more co-ordination of educational interventions with other economic policies, also taking economic cycle into account.</p>","PeriodicalId":47739,"journal":{"name":"Kyklos","volume":"76 4","pages":"642-658"},"PeriodicalIF":1.9,"publicationDate":"2023-06-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/kykl.12344","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50155545","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
KyklosPub Date : 2023-06-24DOI: 10.1111/kykl.12345
Darcy W. E. Allen, Chris Berg, Aaron M. Lane, Trent MacDonald, Jason Potts
{"title":"The exchange theory of web3 governance","authors":"Darcy W. E. Allen, Chris Berg, Aaron M. Lane, Trent MacDonald, Jason Potts","doi":"10.1111/kykl.12345","DOIUrl":"https://doi.org/10.1111/kykl.12345","url":null,"abstract":"<p>Blockchains have enabled innovation in distributed economic institutions, such as money (e.g., cryptocurrencies) and markets (e.g., decentralised exchanges), but also innovations in distributed governance, such as decentralised autonomous organisations. These innovations have generated academic interest in studying web3 governance, but as yet there is no general theory of web3 governance. In this paper, we draw on the contrast between a ‘romantic view’ of governance (characterised by consensus through community voting) and the ‘exchange view’ of governance from public choice theory (characterised by an entrepreneurial process of bargaining and exchange of voters under uncertainty). Our analysis is the first to argue that the latter ‘exchange view’ of governance is best to understand the dynamics of governance innovation in web3, providing the foundations for a new general theory of governance in this frontier field. We apply the ‘exchange view’ of governance to three case studies (Curve, Lido and Metagov), exploring how these projects enable pseudonymous, composable and permissionless governance processes to reveal value. Our approach helps illuminate how this emergent polycentric governance process can generate robustness in decentralised systems.</p>","PeriodicalId":47739,"journal":{"name":"Kyklos","volume":"76 4","pages":"659-675"},"PeriodicalIF":1.9,"publicationDate":"2023-06-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/kykl.12345","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50142771","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
KyklosPub Date : 2023-06-09DOI: 10.1111/kykl.12341
Anders Kärnä, Patrik Öhberg
{"title":"Misrepresentation and migration","authors":"Anders Kärnä, Patrik Öhberg","doi":"10.1111/kykl.12341","DOIUrl":"https://doi.org/10.1111/kykl.12341","url":null,"abstract":"<p>In a representative democracy, politicians should either implement policies that voters want or policies that politicians believe are in voters long-term interest, even if voters currently oppose them. The exact balance between these goals is debatable and politicians' policy engagement can tempt them to dismiss voters' preferences and resist information counter to their own policy position. In this paper, we discuss Sweden's generous migration policy and how it can serve as an example where politicians' policy engagement led them to a overly optimistic view of the implications of welcoming a large influx of refugees. Using detailed, repeated, survey data on members of parliament, we show that Swedish politicians favored a much more generous policy toward accepting refugees than voters for a long period of time. Neither observable factors nor expert knowledge can explain this difference between voters and politicians. A more likely explanations is wishful thinking and policy engagement from politicians that continued until political competition increased.</p>","PeriodicalId":47739,"journal":{"name":"Kyklos","volume":"76 4","pages":"503-525"},"PeriodicalIF":1.9,"publicationDate":"2023-06-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/kykl.12341","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50126410","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
KyklosPub Date : 2023-05-05DOI: 10.1111/kykl.12334
Mustafa Özer, Jan Fidrmuc, Mehmet Ali Eryurt
{"title":"Education and domestic violence: Evidence from a natural experiment in Turkey","authors":"Mustafa Özer, Jan Fidrmuc, Mehmet Ali Eryurt","doi":"10.1111/kykl.12334","DOIUrl":"https://doi.org/10.1111/kykl.12334","url":null,"abstract":"<p>We utilize a natural experiment, an education reform increasing compulsory schooling from 5 to 8 years in Turkey, to obtain endogeneity-robust estimates of the effect of male education on the incidence of domestic violence against women. We find that husband's education lowers the probability of physical, emotional, and economic violence. Schooling lowers also the likelihood of having an arranged marriage and makes men less inclined to engage in various socially unacceptable behaviors. We show that these findings are very robust to alternative regression specifications and restricted sample estimation. Finally, we argue that assortative mating implies that the educational outcomes of the two spouses are correlated. Our findings are robust to accounting for the husbands' and wives' education jointly. Moreover, when we separate the two effects, we show that the favorable effect of education can be attributed causally to men's education rather than to the education of their wives.</p>","PeriodicalId":47739,"journal":{"name":"Kyklos","volume":"76 3","pages":"436-460"},"PeriodicalIF":1.9,"publicationDate":"2023-05-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/kykl.12334","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50131625","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
KyklosPub Date : 2023-05-02DOI: 10.1111/kykl.12336
Simon Varaine
{"title":"Dying to die: New micro and macro evidence that suicide terrorists are suicidal","authors":"Simon Varaine","doi":"10.1111/kykl.12336","DOIUrl":"https://doi.org/10.1111/kykl.12336","url":null,"abstract":"<p>The self-sacrifice of suicide terrorists is subject to sophisticated models of altruistic sacrifice. Yet, a simpler account is that it reflects common suicidal tendencies. This paper offers new micro and macro evidence supportive of this hypothesis. At the micro level, the paper compares a sample of suicide and non-suicide terrorists in the United States from 1948 to 2017. Results indicate that suicide terrorists are more likely to display various established suicidal risk factors including history of child abuse, absent parent/s, and relationship troubles. Results from Bayesian Model Averaging indicate that suicide risk factors outperform other individual factors (e.g., ideology and lone-actor terrorism) in explaining suicide terrorism. At the macro level, the paper takes advantage of the cross-national variations in suicidal tendencies to explain the incidence of suicide and non-suicide terrorist attacks worldwide from 1991 to 2014. Results reveal that countries with higher share of deaths from suicide display higher incidences of suicide attacks but similar incidences of non-suicide attacks. However, other contextual factors such as the share of Muslims also predict the incidence of suicide terrorism. The decision of some terrorists to sacrifice their life may well have been subject to over-theorization.</p>","PeriodicalId":47739,"journal":{"name":"Kyklos","volume":"76 3","pages":"478-500"},"PeriodicalIF":1.9,"publicationDate":"2023-05-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50118073","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
KyklosPub Date : 2023-04-27DOI: 10.1111/kykl.12330
Rémi Bazillier, Francesco Magris, Daniel Mirza
{"title":"Labor mobility agreements and exit of migrants: Evidence from Europe","authors":"Rémi Bazillier, Francesco Magris, Daniel Mirza","doi":"10.1111/kykl.12330","DOIUrl":"https://doi.org/10.1111/kykl.12330","url":null,"abstract":"<p>In this paper, we study how free labor mobility agreements in Europe, usually thought to favor <i>inward</i> migration, might actually create good incentives for already settled migrants to <i>exit</i> their host country. Using outmigration data between 1990 and 2011, a period of observation where some countries entered the EU and especially a period during which Schengen agreements have been progressively implemented by a large number of European countries, we could test this conjecture. While the evidence for EU is mixed, we find very strong evidence that Schengen did increase migrations outflows by 40 to 53%. The effect appears to be even higher for outmigrants originating from Eastern Europe after their countries' accession to Schengen. Also, and consistent with the hypothesis of preferences for living at home or in a country with a close culture to home, the effect of Schengen on outmigration happens to be smaller when the countries of origin and of residence of the outmigrants are close in terms of their cultural traits. Also, we document that the Schengen effect is significantly higher for outmigration flows than for immigration flows by almost 20 percentage points.</p>","PeriodicalId":47739,"journal":{"name":"Kyklos","volume":"76 3","pages":"319-350"},"PeriodicalIF":1.9,"publicationDate":"2023-04-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/kykl.12330","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50144785","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
KyklosPub Date : 2023-04-17DOI: 10.1111/kykl.12333
Aziz N. Berdiev, James W. Saunoris
{"title":"The case for independence: Does central bank independence curb the spread of the underground economy?","authors":"Aziz N. Berdiev, James W. Saunoris","doi":"10.1111/kykl.12333","DOIUrl":"https://doi.org/10.1111/kykl.12333","url":null,"abstract":"<p>This paper considers an alternate dimension of government institutions associated with the separation of powers between government and its central bank. A more independent central bank is consistent with greater institutional quality and constraints on government. We propose that central bank independence influences the prevalence of the shadow, or underground, economy. Using cross-country panel data for over 100 nations over the period 1991 to 2012, the results from instrumental variables techniques show that central bank independence curbs underground economic activity. Furthermore, considering different dimensions of independence, we find that independence related to central bank CEO, policy formation, and central bank lending are effective at checking the shadow sector. Overall, these findings are robust to a different measure of the underground economy, correcting for the potential influence of outliers, controlling for the impact of additional factors, accounting for heterogeneity related to the level of development, and considering the heterogeneity related to the prevalence of the shadow sector. The main implication of the results is that nations seeking to reduce the prevalence of the underground economy would benefit from policies that promote central bank independence.</p>","PeriodicalId":47739,"journal":{"name":"Kyklos","volume":"76 3","pages":"407-435"},"PeriodicalIF":1.9,"publicationDate":"2023-04-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50151553","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}