Changes in the Distribution of Income Volatility

Recent research has documented a significant rise in the volatility (e.g., expected squared change) of individual incomes in the U.S. since the 1970s. Existing measures of this trend abstract from individual heterogeneity, effectively estimating an increase in average volatility. We decompose this increase in average volatility and find that it is far from representative of the experience of most people: there has been no systematic rise in volatility for the vast majority of individuals. The rise in average volatility has been driven almost entirely by a sharp rise in the income volatility of those expected to have the most volatile incomes, identified ex-ante by large income changes in the past. We document that the self-employed and those who self-identify as risk-tolerant are much more likely to have such volatile incomes; these groups have experienced much larger increases in income volatility than the population at large. These results color the policy implications one might draw from the rise in average volatility. While the basic results are apparent from PSID summary statistics, providing a complete characterization of the dynamics of the volatility distribution is a methodological challenge. We resolve these difficulties with a Markovian hierarchical Dirichlet process that builds on work from the non-parametric Bayesian statistics literature

Markers of automaticity in sleep-associated consolidation of novel words

Two experiments investigated effects of sleep on consolidation and integration of novel form-meaning mappings using size congruity and semantic distance paradigms. Both paradigms have been used in previous studies to measure automatic access to word meanings. When participants compare semantic or physical font size of written word-pairs (e.g. BEE–COW), judgments are typically faster if relative sizes are congruent across both dimensions. Semantic distance effects are also found for wellestablished words, with semantic size judgements faster for pairs that differ substantially on this dimension. English-speaking participants learned novel form-meaning mappings with Mandarin (Experiment 1) or Malay (Experiment 2) words and were tested following overnight sleep or a similar duration awake. Judgements on English words controlled for circadian effects. The sleep group demonstrated selective stronger size congruity and semantic distance effects for novel word-pairs. This benefit occurred in Experiment 1 for semantic size comparisons of novel words, and in Experiment 2 on comparisons where novel pairs had large distances and font differences (for congruity effects) or in congruent trials (for semantic distance effects). Conversely, these effects were equivalent across sleep and wake for English words. Experiment 2 included polysomnography data and revealed that changes in the strength of semantic distance and congruity effects were positively correlated with slow-wave sleep and sleep spindles respectively. These findings support systems consolidation accounts of declarative learning and suggest that sleep plays an active role in integrating new words with existing knowledge, resulting in increased automatic access of the acquired knowledge

Exchange Rates and U.S. Foreign Direct Investment in the Global Processed Food Industry

This paper focuses on estimating the effects of the real FDI-weighted exchange rate on real U.S. foreign direct investment (FDI) in the global processed food industry. We use a straightforward production possibility framework as our theoretical basis to demonstrate the shift of production between countries on the basis of exchange rate fluctuations. The log-log regression model, derived from the theoretical model, gives statistically robust results to show that for the years 1983 to 2002, the exchange rate fluctuations, the level of fixed capital in the U.S. food industry, and the cost of materials in both the United States and abroad were major determinants of the stock of U.S. FDI in the global processed food industry. As the dollar appreciated, U.S. FDI increased. An overall conclusion is that countries with an undervalued exchange rate will experience increased FDI. Countries with overvalued exchange rates incur costs from lost export opportunities for domestic firms as well as discourage FDI.U.S. foreign direct investment (FDI), global processed food industry, FDI-weighted exchange rates, International Relations/Trade,

Servant Leadership: The Change Needed in Law Enforcement

Servant leadership is a moral-based form of leadership in which leaders place the well-being of followers before their own (Canavesi & Minelli, 2022). It is a theory that has gained increased notoriety over the past several decades. Despite this, there remains a limited amount of empirical research on it and its potential benefits. However, several professions have adopted it, and their results have been positive. Leadership change is needed in many professions, and law enforcement is no exception. The policing profession faces many challenges, such as recruiting quality candidates and retaining existing personnel. Furthermore, the challenges plaguing policing also exert a tremendous influence on the level of job satisfaction experienced by existing employees. This study addresses servant leadership, including its origin, characteristics, and potential benefits to law enforcement. It also examines how servant leadership is currently employed in police agencies by utilizing a self-report survey administered to graduates of a nationally recognized police training program. Adopting servant leadership in law enforcement organizations offers an avenue by which identified challenges may be addressed positively