Early life conditions and financial risk–taking in older age

Using life-history survey data from eleven European countries, we investigate whether childhood conditions, such as socioeconomic status, cognitive abilities and health problems influence portfolio choice and risk attitudes later in life. After controlling for the corresponding conditions in adulthood, we find that superior cognitive skills in childhood (especially mathematical abilities) are positively associated with stock and mutual fund ownership. Childhood socioeconomic status, as indicated by the number of rooms and by having at least some books in the house during childhood, is also positively associated with the ownership of stocks, mutual funds and individual retirement accounts, as well as with the willingness to take financial risks. On the other hand, less risky assets like bonds are not affected by early childhood conditions. We find only weak effects of childhood health problems on portfolio choice in adulthood. Finally, favorable childhood conditions affect the transition in and out of risky asset ownership, both by making divesting less likely and by facilitating investing (i.e., transitioning from non-ownership to ownership)

Early Life Conditions and Financial Risk–Taking in Older Age

Using life-history survey data from eleven European countries, we investigate whether childhood conditions, such as socioeconomic status, cognitive abilities and health problems influence portfolio choice and risk attitudes later in life. After controlling for the corresponding conditions in adulthood, we find that superior cognitive skills in childhood (especially mathematical abilities) are positively associated with stock and mutual fund ownership. Childhood socioeconomic status, as indicated by the number of rooms and by having at least some books in the house during childhood, is also positively associated with the ownership of stocks, mutual funds and individual retirement accounts, as well as with the willingness to take financial risks. On the other hand, less risky assets like bonds are not affected by early childhood conditions. We find only weak effects of childhood health problems on portfolio choice in adulthood. Finally, favorable childhood conditions affect the transition in and out of risky asset ownership, both by making divesting less likely and by facilitating investing (i.e., transitioning from non-ownership to ownership).Portfolio Choice, Childhood Socio-economic Status, Cognition, Health, Financial Risk

Romanian 14 GHz ECR Ion Source RECRIS: main features and first operation

RECRIS, the romanian 14 GHz ECR ion source, designed to be used as a facility for atomic physics and material studies with highly charged ion beams, have been recently completed. The general design [1], the main characteristics and the detailed measurements of the radial [2] and axial magnetic fields are presented. A maximum axial magnetic field of 1.4 T and a mirror ratio of up to 4 were obtained. The dependence of the mirror ratio and of the ECR plasma zone volume on the configuration of the axial magnetic system configuration was studied. The first operation of this source is described, showing a good stability

Identifying the importance of competences and acquiring them as far as students are concerned – Research Romania Spain

The all-round development of human resource, human capital and increasing the latter’s competitiveness by connecting life-long education and learning with the labor market as well as the assurance of an increased participation in a modern, flexible and inclusive labor market must represent a priority for all higher education institutions. By studying these aspects, work sociology and psychology can establish strategies for the development of human capital helping thus the labor market. Anticipating tendencies about the way in which individuals relate to the importance of competences is crucial for developing an efficient strategy concerning the labor market. This paper presents the results of research whose aim was to identify the opinions of Romanian and Spanish students regarding the importance and level of competences upon graduation in order to enter the labor market

Why Aren't Developed Countries Saving?

National saving rates differ enormously across developed countries. But these differences obscure a common trend, namely a dramatic decline over time. France and Italy, for example, saved over 17 percent of national income in 1970, but less than 7 percent in 2006. Japan saved 30 percent in 1970, but only 8 percent in 2006. And the U.S. saved 9 percent in 1970, but only 2 percent in 2006. What explains these international and intertemporal differences? Is it demographics, government spending, productivity growth or preferences? Our answer is preferences. Developed societies are placing increasing weight on the welfare of those currently alive, particularly contemporaneous older generations. This conclusion emerges from estimating two models in which society makes consumption and labor supply decisions in light of uncertainty over future government spending, productivity, and social preferences. The two models differ in terms of the nature of preference uncertainty and the extent to which current society can control future societies' spending and labor supply decisions.

The causal effect of social activities on cognition: evidence from 20 European countries

Using harmonized data from 20 European countries, we examine the causal effect of being socially active on old age cognition. To address the endogeneity of social participation, we employ nonparametric partial identification methods that bound the average treatment effect for the population under fairly plausible, and thus credible, assumptions. We find strong evidence that social activities have a positive impact on all cognitive dimensions we analyze. At their upper bound these effects are quite large, while at their lower bound they are more modest but still salient. Additionally, we show that ignoring the endogeneity of social activities severely underestimates the uncertainty about their causal effect on cognition

Defaults, disclosures, advice and calculators: One size does not fit all

The effect of regulatory standards regarding the presentation of investment products on financial behavior is poorly understood. In two incentivized online experiments (N = 2,221) we examine the impact of information-based and tool-based guidance on the selection of retirement plan investment funds. Participants chose between funds that followed identical investment strategies but charged different fees. Over multiple trials, participants were instructed to identify the fund which charged the lowest fees given their hypothetical plan balance. Defaults and disclosures were found to be situationally helpful, but highlighted participants’ naivete with regard to the calculations underlying the fee structure. Advice tended to be underutilized but was beneficial when sought. Tool-based guidance in the form of a smart calculator had a moderate impact on accuracy but benefits did not persist. Together the results highlight the danger of taking a homogeneous approach to financial guidance and emphasize the need to build consumer competency

Metal-dielectric structures for high charge state ion production in ECR plasma

Metal-dielectric (MD) structures of pure (99.999%) aluminum foils were previously studied [1, 2] in the National Institute for Physics and Nuclear Engineering (NIPNE), Bucharest, Romania showing high secondary electron emission properties. Consequently, 26 mm diameter disks of such structures (Al-Al2O3) were tested in the ECR ion source of the Institut fuer Kernphysik (IKF) der J. W. Goethe Universitat, Frankfurt/Main, Germany, allowing to demonstrate their ability to significantly increase the ECRIS performances in what concerns the production of high charge state ions [3]. New experiments carried on in Bucharest on a special facility [2] stressed out the possibility to develop high emissive MD structures starting from lower purity (99%) aluminum foils. This result allowed us to make a special cylinder of 1 mm wall thickness electrolytically treated so that only the inner face had a MD structure layer while the external surface remained metallic. Such a cylinder introduced in the plasma chamber of an ECR ion source provides a high rate of secondary electrons that enhance the ECR plasma electron density while its metallic external surface provides a good electric and thermal contact with the plasma chamber. The tests performed with such a MD aluminum cylinder in the IKF 14 GHz ECR ion source, successfully demonstrated the possibility to shift the ECRIS output toward very high charge states (Ar16+) due to the strong secondary electron emission of the MD inner surface of the cylinder

Dynamical Symmetry Breaking in Warped Compactifications

We study dynamical electroweak symmetry breaking in the Randall-Sundrum scenario. We show that one extra dimension is enough to give the correct pattern of electroweak symmetry breaking in a simple model with gauge bosons and the right-handed top quark in the bulk. The top quark mass is also in agreement with experiment. Furthermore, we propose an extended scenario with all Standard Model gauge bosons and fermions propagating in the bulk, which naturally accommodates the fermion mass hierarchies. No new fields or interactions beyond the observed in the Standard Model are required.Comment: 16 pages, no figures. v3 : Final version, to be published in Phys. Rev.