Monday, July 10, 2017

More politicians, more corruption: Evidence from Swedish municipalities

More politicians, more corruption: Evidence from Swedish municipalities. By Andreas Bergh, Günther Fink & Richard Öhrvall. Public Choice (2017), https://link.springer.com/article/10.1007/s11127-017-0458-4

Abstract: In the literature on political economy and public choice, it is typically assumed that government size correlates positively with public corruption. The empirical literature, however, is inconclusive, owing to both measurement problems and endogeneity. This paper creates a corruption index based on original data from a survey covering top politicians and civil servants in all Swedish municipalities. The effect of more politicians on corruption problems is analyzed using discontinuities in the required minimum size of local councils. Despite the fact that Sweden consistently has been ranked among the least corrupt countries in the world, the survey suggest that non-trivial corruption problems are present in Sweden. Municipalities with more local council seats have more reported corruption problems, and the regression discontinuity design suggests that the effect is causal.

Deradicalizing Detained Terrorists

Marc-Andre Lafreniere, and Jocelyn J. Belanger. 2017. "Deradicalizing Detained Terrorists." Political Psychology (May). http://onlinelibrary.wiley.com/doi/10.1111/pops.12428/abstract

Abstract: Deradicalization of terrorists constitutes a critical component of the global “war on terror.” Unfortunately, little is known about deradicalization programs, and evidence for their effectiveness is derived solely from expert impressions and potentially flawed recidivism rates. We present the first empirical assessment of one such program: the Sri Lankan rehabilitation program for former members of the Liberation Tigers of Tamil Eelam (a terrorist organization that operated in Sri Lanka until their defeat in 2009). We offer evidence that deradicalization efforts that provided beneficiaries with sustained mechanisms for earning personal significance significantly reduced extremism after 1 year (Study 1). We also found that upon release, beneficiaries expressed lower levels of extremism than their counterparts in the community (Study 2). These findings highlight the critical role of personal significance in deradicalization efforts, offer insights into the workings of deradicalization, and suggest practical methods for improving deradicalization programs worldwide.

Cultural evolution of military camouflage

Cultural evolution of military camouflage. By Laszlo Talas, Roland Baddeley & Innes Cuthill
Philosophical Transactions of the Royal Society: Biological Sciences, July 5, 2017, https://www.ncbi.nlm.nih.gov/pubmed/28533466

Abstract: While one has evolved and the other been consciously created, animal and military camouflage are expected to show many similar design principles. Using a unique database of calibrated photographs of camouflage uniform patterns, processed using texture and colour analysis methods from computer vision, we show that the parallels with biology are deeper than design for effective concealment. Using two case studies we show that, like many animal colour patterns, military camouflage can serve multiple functions. Following the dissolution of the Warsaw Pact, countries that became more Western-facing in political terms converged on NATO patterns in camouflage texture and colour. Following the break-up of the former Yugoslavia, the resulting states diverged in design, becoming more similar to neighbouring countries than the ancestral design. None of these insights would have been obtained using extant military approaches to camouflage design, which focus solely on concealment. Moreover, our computational techniques for quantifying pattern offer new tools for comparative biologists studying animal coloration.

KEYWORDS: cultural evolution; defensive coloration; military camouflage; texture analysis

When Criticism is Ineffective: The Case of Historical Trauma and Unsupportive Allies

Hirschberger, G., Lifshin, U., Seeman, S., Ein-Dor, T., and Pyszczynski, T. (2017) When Criticism is Ineffective: The Case of Historical Trauma and Unsupportive Allies. Eur. J. Soc. Psychol., doi: 10.1002/ejsp.2253, http://onlinelibrary.wiley.com/doi/10.1002/ejsp.2253/abstract

Abstract: Three studies examined the effect of historical trauma reminders and criticism from international allies on attitudes toward current conflicts. In Study 1, Israeli participants (N = 116) were primed with the Holocaust, and read either that US President Obama supports Israel's right to defend itself and attack Iran, or that he opposes such action. Then, support for preemptive violence was assessed. Study 2 (N = 133) replicated this design, comparing inclusive and exclusive framings of the Holocaust. Study 3 (N = 478), examined the effect of Holocaust reminders and criticism from the EU on attitudes toward militant policies against Palestinians. All three studies found that Holocaust primes juxtaposed with international criticism increased support for aggression, especially under exclusive framings of the Holocaust. Study 3, however, found this effect only among left-wing participants. These findings indicate that when historical trauma is salient, international criticism may be ineffective and may even backfire.

Does Competition Reduce Racial Discrimination in Lending?

Does Competition Reduce Racial Discrimination in Lending? By Greg Buchak & Adam Tejs Jørring
University of Chicago Working Paper, April 2017. http://home.uchicago.edu/~buchak/papers/mortgage_discrimination.pdf

Abstract: This paper examines whether increases in bank competition reduce discriminatory practices in mortgage lending. Lenders are significantly less likely to approve black applicants' loan applications despite facing similar credit risk. However, following the relaxation of interstate bank branching laws in the 1990s, increases in local lending competition reduced the approval differential between potential white and black borrowers by roughly one quarter. The reduction was driven both by incumbent lenders altering lending policies to avoid losing market share and by the entry of new banks. The results suggest strong complementaries between direct regulation and the competition mechanism. In particular, direct regulation is effective against large lenders where statistical proof problems are less severe, while competition provides incentives to smaller, harder to regulate lenders.

Gender Equality in Mortgage Lending

Fang, L. and Munneke, H. J. (2017), Gender Equality in Mortgage Lending. Real Estate Economics. doi:10.1111/1540-6229.12198

Abstract: Using a sample of 30-year fixed-rate subprime mortgage loans, this paper empirically examines whether gender inequality exists in the mortgage market, specifically, whether a borrower's gender affects the loan contract rate charged, beyond the impact of the borrower's probability of default and prepayment. The results, based on a competing-risks loan hazard model, reveal that borrowers of different gender have different loan termination patterns. After controlling for the probability of a borrower defaulting or prepaying, female borrowers pay higher contract rates in the subprime mortgage market over the study period.




Remember too: When Beauty Doesn't Pay: Gender and Beauty Biases in a Peer-to-Peer Loan Market. By Ko Kuwabara & Sarah Thébaud
Social Forces, June 2017, Pages 1371-1398. https://doi.org/10.1093/sf/sox020

Offspring of parents who were separated and not speaking to one another have reduced resistance to the common cold as adults

Offspring of parents who were separated and not speaking to one another have reduced resistance to the common cold as adults. By Michael L. M. Murphy, Sheldon Cohen, Denise Janicki-Deverts, and William J. Doyle
Proceedings of the National Academy of Sciences, http://www.pnas.org/content/114/25/6515.abstract

Significance: Adults whose parents separated during childhood are at increased risk for poorer health, although the underlying mechanisms remain unclear. Furthermore, increasing evidence suggests that aspects of the family environment following parental separation better predict a child’s adjustment than the separation itself. Using a viral challenge study, we found that adults whose parents separated but remained on speaking terms during childhood were no more likely to develop a cold when exposed to a cold-causing virus than adults from intact childhood families. However, adults whose parents separated and did not speak to each other during childhood were more than three times as likely to develop a cold following viral exposure. This increased risk was attributed to heightened inflammation in response to infection.

Abstract: Exposure to parental separation or divorce during childhood has been associated with an increased risk for physical morbidity during adulthood. Here we tested the hypothesis that this association is primarily attributable to separated parents who do not communicate with each other. We also examined whether early exposure to separated parents in conflict is associated with greater viral-induced inflammatory response in adulthood and in turn with increased susceptibility to viral-induced upper respiratory disease. After assessment of their parents’ relationship during their childhood, 201 healthy volunteers, age 18–55 y, were quarantined, experimentally exposed to a virus that causes a common cold, and monitored for 5 d for the development of a respiratory illness. Monitoring included daily assessments of viral-specific infection, objective markers of illness, and local production of proinflammatory cytokines. Adults whose parents lived apart and never spoke during their childhood were more than three times as likely to develop a cold when exposed to the upper respiratory virus than adults from intact families. Conversely, individuals whose parents were separated but communicated with each other showed no increase in risk compared with those from intact families. These differences persisted in analyses adjusted for potentially confounding variables (demographics, current socioeconomic status, body mass index, season, baseline immunity to the challenge virus, affectivity, and childhood socioeconomic status). Mediation analyses were consistent with the hypothesis that greater susceptibility to respiratory infectious illness among the offspring of noncommunicating parents was attributable to a greater local proinflammatory response to infection.

The Acquisitive Nature of Extraverted CEOs

The Acquisitive Nature of Extraverted CEOs. By Shavin Malhotra et al.
Administrative Science Quarterly, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2973018

Abstract: This study examines how extraversion, a personality trait that signifies more or less positive affect, assertive behavior, decisive thinking, and desires for social engagement, influences chief executive officers’ (CEOs’) decisions and the ensuing strategic behavior of firms. Using a novel linguistic technique to assess personality from unscripted text spoken by 2,381 CEOs of S&P 1500 firms over ten years, we show that CEOs’ extraversion influences the merger and acquisition (M&A) behavior of firms above and beyond other well-established personality traits. We find that extraverted CEOs are more likely to engage in acquisitions, and to conduct larger ones, than other CEOs and that these effects are partially explained by their higher representation on boards of other firms. Moreover, we find that the acquisitive nature of extraverted CEOs reveals itself particularly in so-called “weaker” situations, in which CEOs enjoy considerable discretion to behave in ways akin to their personality traits. Subsequent analyses show that extraverted CEOs are also more likely than other CEOs to succeed in M&As, as reflected by stronger abnormal returns following acquisition announcements.

Keywords: personality, chief executive officers, mergers and acquisitions, extraversion
JEL Classification: G02, G34, M12

Pupillary Responses to Words That Convey a Sense of Brightness or Darkness

Pupillary Responses to Words That Convey a Sense of Brightness or Darkness. By Sebastiaan Mathôt, Jonathan Grainger & Kristof Strijkers
Psychological Science, https://www.ncbi.nlm.nih.gov/pubmed/28613135

Abstract: Theories about embodiment of language hold that when you process a word’s meaning, you automatically simulate associated sensory input (e.g., perception of brightness when you process lamp) and prepare associated actions (e.g., finger movements when you process typing). To test this latter prediction, we measured pupillary responses to single words that conveyed a sense of brightness (e.g., day) or darkness (e.g., night) or were neutral (e.g., house). We found that pupils were largest for words conveying darkness, of intermediate size for neutral words, and smallest for words conveying brightness. This pattern was found for both visually presented and spoken words, which suggests that it was due to the words’ meanings, rather than to visual or auditory properties of the stimuli. Our findings suggest that word meaning is sufficient to trigger a pupillary response, even when this response is not imposed by the experimental task, and even when this response is beyond voluntary control.