Who Chooses Defined Contribution Plans?

This paper provides new evidence on what types of individuals are most likely to choose a defined contribution (DC) plan over a defined benefit (DB) plan. Making use of administrative data from the State Universities Retirement System (SURS) of Illinois, we study the decisions of nearly 50,000 new employees who make a one-time, irrevocable choice between a traditional DB plan, a portable DB plan, and an entirely self-managed DC plan. Because the SURS-covered earnings of these employees are not covered under the Social Security system, their choices provides insight into the DB vs. DC preferences of individuals with regard to a primary source of their retirement income. We find that a majority of participants fail to make an active decision and are thus defaulted into the traditional DB plan after 6 months. We also find that those individuals who are most likely to be financially sophisticated are most likely to choose the self-managed DC plan, despite the fact that, given plan parameters, the DC plan is inferior to the portable DB plan under reasonable assumptions about future financial market returns. We discuss both rational and behavioral reasons that might explain this finding.

Is a Bird in Hand Worth More than a Bird in the Bush? Intergenerational Transfers and Savings Behavior

This paper provides new evidence on the decomposition of aggregate household wealth into life-cycle and transfer wealth. Using the 1998 Survey of Consumer Finances, it finds that transfer wealth accounts for approximately one-fifth to one-quarter of aggregate wealth, suggesting a larger role for life-cycle savings than some previous estimates. Despite the smaller aggregate size of transfer wealth, its concentration among a small number of households suggests that it can still have an important effect on the savings decisions of recipients. Estimates suggest that past receipts of transfer wealth reduce life-cycle savings by as much as dollar-for-dollar, while expected future transfers do not produce such a crowd-out effect.

An instinct for detection: psychological perspectives on CCTV surveillance

The aim of this article is to inform and stimulate a proactive, multidisciplinary approach to research and development in surveillance-based detective work. In this article we review some of the key psychological issues and phenomena that practitioners should be aware of. We look at how human performance can be explained with reference to our biological and evolutionary legacy. We show how critical viewing conditions can be in determining whether observers detect or overlook criminal activity in video material. We examine situations where performance can be surprisingly poor, and cover situations where, even once confronted with evidence of these detection deficits, observers still underestimate their susceptibility to them. Finally we explain why the emergence of these relatively recent research themes presents an opportunity for police and law enforcement agencies to set a new, multidisciplinary research agenda focused on relevant and pressing issues of national and international importance

Detect the unexpected: a science for surveillance

Purpose – The purpose of this paper is to outline a strategy for research development focused on addressing the neglected role of visual perception in real life tasks such as policing surveillance and command and control settings. Approach – The scale of surveillance task in modern control room is expanding as technology increases input capacity at an accelerating rate. The authors review recent literature highlighting the difficulties that apply to modern surveillance and give examples of how poor detection of the unexpected can be, and how surprising this deficit can be. Perceptual phenomena such as change blindness are linked to the perceptual processes undertaken by law-enforcement personnel. Findings – A scientific programme is outlined for how detection deficits can best be addressed in the context of a multidisciplinary collaborative agenda between researchers and practitioners. The development of a cognitive research field specifically examining the occurrence of perceptual “failures” provides an opportunity for policing agencies to relate laboratory findings in psychology to their own fields of day-to-day enquiry. Originality/value – The paper shows, with examples, where interdisciplinary research may best be focussed on evaluating practical solutions and on generating useable guidelines on procedure and practice. It also argues that these processes should be investigated in real and simulated context-specific studies to confirm the validity of the findings in these new applied scenarios

Behavioral biases when viewing multiplexed scenes:scene structure and frames of reference for inspection

Where people look when viewing a scene has been a much explored avenue of vision research (e.g., see Tatler, 2009). Current understanding of eye guidance suggests that a combination of high and low-level factors influence fixation selection (e.g., Torralba et al., 2006), but that there are also strong biases toward the center of an image (Tatler, 2007). However, situations where we view multiplexed scenes are becoming increasingly common, and it is unclear how visual inspection might be arranged when content lacks normal semantic or spatial structure. Here we use the central bias to examine how gaze behavior is organized in scenes that are presented in their normal format, or disrupted by scrambling the quadrants and separating them by space. In Experiment 1, scrambling scenes had the strongest influence on gaze allocation. Observers were highly biased by the quadrant center, although physical space did not enhance this bias. However, the center of the display still contributed to fixation selection above chance, and was most influential early in scene viewing. When the top left quadrant was held constant across all conditions in Experiment 2, fixation behavior was significantly influenced by the overall arrangement of the display, with fixations being biased toward the quadrant center when the other three quadrants were scrambled (despite the visual information in this quadrant being identical in all conditions). When scenes are scrambled into four quadrants and semantic contiguity is disrupted, observers no longer appear to view the content as a single scene (despite it consisting of the same visual information overall), but rather anchor visual inspection around the four separate “sub-scenes.” Moreover, the frame of reference that observers use when viewing the multiplex seems to change across viewing time: from an early bias toward the display center to a later bias toward quadrant centers

The Nature of Hypervelocity Stars and the Time between Their Formation and Ejection

We obtain Keck HIRES spectroscopy of HVS5, one of the fastest unbound stars in the Milky Way halo. We show that HVS5 is a 3.62 ± 0.11 M_☉ main-sequence B star at a distance of 50 ± 5 kpc. The difference between its age and its flight time from the Galactic center is 105 ± 18 (stat) ±30 (sys) Myr; flight times from locations elsewhere in the Galactic disk are similar. This 10^8 yr "arrival time" between formation and ejection is difficult to reconcile with any ejection scenario involving massive stars that live for only 10^7 yr. For comparison, we derive arrival times of 10^7 yr for two unbound runaway B stars, consistent with their disk origin where ejection results from a supernova in a binary system or dynamical interactions between massive stars in a dense star cluster. For HVS5, ejection during the first 10^7 yr of its lifetime is ruled out at the 3σ level. Together with the 10^8 yr arrival times inferred for three other well-studied hypervelocity stars (HVSs), these results are consistent with a Galactic center origin for the HVSs. If the HVSs were indeed ejected by the central black hole, then the Galactic center was forming stars ≃200 Myr ago, and the progenitors of the HVSs took ≃100 Myr to enter the black hole's loss cone

Helping Hand or Grabbing Hand? State Bureaucracy and Privatization Effectiveness

Why have economic reforms aimed at reducing the role of the state been successful in some cases but not others? Are reform failures the consequence of leviathan states that hinder private economic activity, or of weak states unable to implement policies effectively and provide a supportive institutional environment? We explore these questions in a study of privatization in postcommunist Russia. Taking advantage of large regional variation in the size of public administrations, and employing a multilevel re-search design that controls for pre-privatization selection in the estimation of regional privatization effects, we examine the relationship between state bureaucracy and the impact of privatization on firm productivity. We find that privatization is more effective in regions with relatively large bureaucracies. Our analysis suggests that this effect is driven by the impact of bureaucracy on the post-privatization business environment, with better institutional support and less corruption when bueaucracies are large.privatization, bureaucracy, economic reform, Russia

On the factors causing processing difficulty of multiple-scene displays

Multiplex viewing of static or dynamic scenes is an increasing feature of screen media. Most existing multiplex experiments have examined detection across increasing scene numbers, but currently no systematic evaluation of the factors that might produce difficulty in processing multiplexes exists. Across five experiments we provide such an evaluation. Experiment 1 characterises difficulty in change detection when the number of scenes is increased. Experiment 2 reveals that the increased difficulty across multiple-scene displays is caused by the total amount of visual information accounts for differences in change detection times, regardless of whether this information is presented across multiple scenes, or contained in one scene. Experiment 3 shows that whether quadrants of a display were drawn from the same, or different scenes did not affect change detection performance. Experiment 4 demonstrates that knowing which scene the change will occur in means participants can perform at monoplex level. Finally, Experiment 5 finds that changes of central interest in multiplexed scenes are detected far easier than marginal interest changes to such an extent that a centrally interesting object removal in nine screens is detected more rapidly than a marginally interesting object removal in four screens. Processing multiple-screen displays therefore seems dependent on the amount of information, and the importance of that information to the task, rather than simply the number of scenes in the display. We discuss the theoretical and applied implications of these findings