Financial literacy and mortgage equity withdrawals

The recent U.S. consumption boom and the subsequent surge in mortgage defaults have been linked to mortgage equity withdrawals (MEWs). MEWs are correlated with covariates consistent with a permanent income framework augmented for credit-constraints. Nevertheless, many households are financially illiterate. We assess the unexplored linkages between “active MEW” and measures of financial literacy using panel data from the Health and Retirement Study (HRS). Findings indicate that declines in mortgage interest rates encouraged MEWs. Nevertheless, financially illiterate households were significantly more likely to withdraw housing equity via traditional first or second mortgages (including cash-out mortgage refinancings but not home equity loans).> ; We find that the financially less savvy are 3–5 percentage points more likely to engage in this type of MEW relative to those who answered financial literacy questions correctly. Also significant were state differences in debtor versus creditor interests in bankruptcy, with loan demand effects outweighing loan supply effects across states.Consumption (Economics) - United States ; Credit control

Incremental redocumentation using literate programming

The primary aim of this research is to investigate means of improving program comprehension through redocumentation. In particular it will concentrate on using Literate Programming as a method for program redocumentation. Documentation is crucially important as an aid to understanding software systems. The Incremental Redocumentation Using Literate Programming System analyses the existing source code and merges in a range of other information, in order to create a complete documentation package. This may include not only traditional paper documents, but also hypertext facilities, animated specifications and output from other analysis tools. The status of the documentation is implicitly elevated to that of an integral part of the system, rather than an optional extra. Where a configuration management system is used to manage different versions of a system, the documentation can also be brought under its control. The literate programming paradigm provides the encouragement and capability to produce high quality code and documentation simultaneously. Conceptually, literate programming systems are document preparation systems. The primary goal of a literate program is to be understandable to the programmers who are going to have to read it at some later date - often while involved in maintenance, or perhaps when trying to determine the possibility of reusing parts of the code for later projects. This thesis presents a structures of C programs and literate C programs, and describes the features of captured literate C programs. A method of the capture process and also the functions of the redocumentation process are described. In addition, this thesis outlines how the individual stages in the capture process and the edit process are used to redocument a C program. The results of application of the process are highlighted by way of example programs. The evaluation process is performed by comparing the results of an existing literate program with those resulting from the application of the method described within this thesis. The results have shown that the captured redocumented literate C program is more readable and understandable than source code only, and that it provides a basis for subsequent maintenance and further redocumentation

Freed from Illiteracy? A Closer Look at Venezuela’s Robinson Literacy Campaign

We evaluate the success of the Venezuelan government’s latest nationwide literacy program, Misión Robinson, using official Venezuelan government survey data. Controlling for existing trends in literacy rates by age groups over the period 1975 to 2005, we find at most a small positive effect of Robinson on literacy rates, and in many specifications the program impact is statistically indistinguishable from zero. This main result is robust to time series analysis by birth cohort, and to state-level difference-in-differences estimation. The results appear to be inconsistent with recent official claims of the complete eradication of illiteracy in Venezuela, but resonate with existing research on other adult literacy programs, which have usually been expensive failures.

Gender Bias Among Children in India in their Diet and Immunisation Against Disease

This paper conducts an econometric analysis of data for a sample of over 4000 children in India, between the ages of 1-2 years of age, with a view to studying two aspects of the neglect of children: their likelihood of being immunised against disease and their likelihood of receiving a nutritious diet. The starting hypothesis, consistent with an universal interest in gender issues, was that girls were more likely to be neglected than boys. The analysis confirmed this hypothesis. In respect of vaccinations, the likelihood of girls being fully vaccinated, after controlling for other variables, was five percentage points lower than that for boys. In respect of receiving a nutritious diet, the treatment of girls depended very much on whether or not their mothers were literate: there was no gender discrimination between children of literate mothers; on the other hand, when the mother was illiterate, girls were five percentage points less likely to be well-fed relative to their brothers and the presence of a literate father did little to dent this gender gap. But the analysis also pointed to a broader conclusion which was that all children in India suffered from sharper, but less publicised, forms of disadvantage than that engendered solely by gender. These were the consequences which stemmed from children being born to illiterate mothers and being brought up in the more impoverished parts of India.Children, gender, diet, vaccination, India

Conflict Experiences and Household Expectations on Recovery: Survey Evidence from Northern Uganda

We analyse the role of mass violent conflict in influencing individual expectations. We hypothesise that individuals are likely to report negative expectations if they were exposed to conflict events in the past. We combine individual and household level data from the Northern Uganda Livelihood Survey of 2007 with a disaggregated conflict exposure index based on the Armed Conflict Locations Events Data (ACLED). We run logistic regression models to study the strength of the association between conflict and expectations. Results indicate that conflict intensity is correlated with a decrease in the probability of expecting economic recovery. The effect of conflict on general welfare however is less robust.Conflict, expectations, war, welfare

Effects of Prenatal and Early Life Malnutrition: Evidence from the Greek Famine

This paper examines the long run education and labor market effects from early-life exposure to the Greek 1941-42 famine. Given the short duration of the famine, we can separately identify the famine effects for cohorts exposed in utero, during infancy and at one year of age. We find that adverse outcomes due to the famine are largest for infants. Further, in our regression analysis we exploit the fact that the famine was more severe in urban than in rural areas. Consistent with our prediction, we find that urban-born cohorts show larger negative impacts on educational outcomes than the rural-born cohorts.famine, health, regression discontinuity, Greece