Child Wellbeing in Two-Parent Families: How Do Characteristics and Relationships Matter?

We use data from the Fragile Families and Child Wellbeing Study to examine the role of individual and family characteristics, as well as mother-father and parent-child relationships, with regard to differences in wellbeing for children living with their biological mother and either their biological father or a social father. We find that accounting for these factors produces a large decrease in the association between two-parent family type and cognitive skills, but does little to explain the association between family type and externalizing behavior problems, given suppressor effects of several of the father characteristics and relationship measures. Furthermore, results from Blinder-Oaxaca decompositions suggest that differences in cognitive skills can largely be explained by differences in the characteristics and behaviors of the individuals comprising biological- and social-father families, whereas differences in externalizing behavior problems predominantly reflect differences in returns to (effects of) these characteristics and behaviors for children in the two family types.parents, children, relationships, welfare, wellbeing, martial status

Do Consumers Pay for One-Stop Banking?

The authors use a specialized revenue function to estimate the revenue economies of scope and determine whether banks providing a broad mix of services are able to capitalize on the potential savings in transaction costs afforded their customers. Bank production costs and consumer consumption expenses are thought to be reduced through relationship banking strategies that cultivate one stop shopping for financial services. Much work has been done on estimates of production synergies that correspond to cost economies of scope. The complementarities in the consumption of bank services is potentially as important for bank profitability but it has yet to be examined in detail. Complementarities arise from reductions in user transaction and search costs associated with consuming financial services jointly from the same bank provider, often at the same location, rather than consuming these services separately from different providers at different locations. If benefits from joint consumption are strong, consumers should be willing to pay for them through higher prices at banks that provide services jointly rather than separately. The authors find no evidence of statistically significant revenue complementarities or fixed revenue effects among banks over 1978-1990. Revenues are no larger when deposits and loans are provided jointly rather than separately, and consumers do not pay for one stop banking. This holds for the average small or large bank as well as those on and off the revenue-efficient frontier. Combining revenue scope results with earlier cost scope findings suggests that synergies between bank deposits and loans are small and concentrated in joint production, rather than joint consumption. Consumers may or may not value one stop banking, but they apparently do not have to pay for it.

The General Power of Appointment as an Interest in Property

The commentators in the field of future interests have, for the most part, agreed there is a trend in the law toward piercing the fictional veil that a general power is a mere mandate or authority to dispose of property. The purpose of this article is to explore, in summary, the historical basis for the general power and the reasons for the current prevalence of its use. The question of whether the general power does have peculiar characteristics and advantages in intent effectuation is evaluated in more detail. In addition, the law as it relates to the rights of third parties claiming through or against the donee of the power (creditors, spouse, and heirs) is critically examined with a view to determining to what extent the donee\u27s power is and should be treated as a property interest. Suggestions as to recommended changes in the law are advanced. Such changes of necessity would have to be by statute because of the properly strong judicial predisposition toward the doctrine of stare decisis in the property area. In traversing all these problems, the distinctions between a testamentary power and a power presently exercisable as well as between powers simply collateral, in gross, and appendant are of some convenience and should be kept in mind

Income and Child Development

We examine how income influences pre-school children’s cognitive and behavioral development, using new data from a birth cohort study of children born at the end of the 20th century. On average, low income children have lower PPVT scores, more mother-reported aggressive, withdrawn, and anxious behavior problems, and also more interviewer-reported problems with behavior, than more affluent children. For most outcomes, differences in the home environments are sufficient to explain the link between low income and poorer child outcomes. Policy simulations indicate that income transfers can potentially play an important role in reducing gaps in development between poorer and richer children.

The Diffraction of Polarized Light from a Laser by a Straight Edge

The purpose of this experiment was to determine the effect of the polarized light from a highly coherent light source on the diffraction pattern of a metallic straight edge

Prenatal Cocaine Exposure: Long‐Run Effects and Policy Implications

In this article, we review the literature regarding prenatal cocaine exposure and child development. We then reexamine current child welfare policies in light of that literature, paying particular attention to laws that mandate reporting substance‐exposed newborns and substance use during pregnancy as well as policies that view such reports as prima facie evidence of child maltreatment. Finally, we reassess the utility of such policies, given our current knowledge of the long‐term effects of prenatal exposure, and consider alternative approaches to protecting children who are born to parents who are using crack cocaine

The Effects of Dynamic Changes in Bank Competition on the Supply of Small Business Credit

We study the effects of structural changes in banking markets on the supply of credit to small businesses. Specifically, we examine whether bank mergers and acquisitions (M&As) and entry have "external" effects on small business loans by other banks in the same local markets. The results suggest modest positive external effects from these dynamic changes in competition, except that large banks may reduce small business lending in reaction to entry. We confirm bank size and age as important determinants of this lending, and show that the measured age effect does not appear to be driven by local market M&A activity