Multiple Testing Techniques in Growth Econometrics

This paper discusses two longstanding questions in growth econometrics which involve multiple hypothesis testing. In cross sectional GDP growth regressions many variables are simultaneously tested for significance. Similarly, when investigating pairwise convergence of output for $n$ countries, $n(n-1)/2$ tests are performed. We propose to control the false discovery rate (FDR) so as not to erroneously declare variables significant in these multiple testing situations only because of the large number of tests performed. Doing so, we provide a simple new way to robustly select variables in economic growth models. We find that few other variables beyond the initial GDP level are needed to explain growth. We also show that convergence of per capita output using a time series definition with the necessary condition of no unit root in the log per-capita output gap of two economies does not appear to holdGrowth Empirics; Multiple Testing; Convergence; Bootstrap

Essays in Applied Econometrics and Behavioral Economics

This thesis is divided into four parts. This abstract provides separate previews for each of those four parts. Cross-section regressions often examine many candidate regressors. We use multiple testing procedures (MTPs) controlling the false discovery rate (FDR) - the expected ratio of false to all rejections - so as not to erroneously select variables because many tests were performed, yielding a simple model selection procedure. Simulations comparing the MTPs with other common model selection criteria demonstrate that, for conventional tuning parameters of the selection procedures, only MTPs consistently control the FDR, but have slightly lower power. In an empirical application to growth, MTPs and PcGets/Autometrics identify similar growth determinants, which differ somewhat from those obtained by Bayesian Model Averaging. While both economists and psychologists seek to identify determinants of heterogeneity in behavior, scholars from the two disciplines use different concepts to capture them. In this paper we first analyze the extent to which economic preferences and psychological concepts of personality - such as Big Five and Locus of Control - are related. We analyze data from incentivized laboratory experiments and representative samples and find only low degrees of association between economic preferences and personality. In a second step we regress life outcomes - such as labor market success, health status or life satisfaction - simultaneously on preference and personality measures. The analysis reveals that the two concepts are rather complementary when it comes to explaining heterogeneity in important life outcomes and behavior. According to economic theory real income, i.e., nominal income adjusted for purchasing power, should be the relevant source of life satisfaction. Previous work, however, has only studied the impact of inflation adjusted nominal income. Therefore, we study how regional price levels affect satisfaction with live using a novel data set. The data set comprises about 7 million data points that are used to construct a price level for each of the about 400 administrative districts in Germany. In our model we explicitly model individual time-invariant characteristics and also include a rich set of control variables to cpature district heterogeneity other than the price level. Our results show that higher price levels significantly reduce life satisfaction. Furthermore, our findings point in the direction of a slight overreaction to prices compared to nominal income, i.e., the loss in life satisfaction caused by a higher price level is larger than the loss in life satisfaction induced by a corresponding decrease in nominal income. Our results provide an argument in favor of regional indexation of government transfer payments such as social welfare benefits. We show that socioeconomic status (SES) is a powerful predictor of many facets of a child's personality. The facets of personality we investigate encompass time preferences, risk preferences, and altruism that are important noncognitive skills, as well as crystallized and fluid IQ that represent cognitive skills. We measure a family's SES by the mother's and father's average years of education and household income. Our results show that children from families with higher SES are more patient, less likely to be risk seeking, and score higher on IQ tests. About 20 to 40 percent of this relationship can be explained by dimensions of a child's environment that are shown to differ by SES: parenting style, quantity and quality of time parents spend with their children, the mother's IQ and economic preferences, a child's initial conditions at birth, and family structure. Personality profiles that vary systematically with SES offer an explanation for social immobility

Between Two Places : Archaeology and Metal Detecting in Europe

Since the Valletta Convention (1992), the debate concerning non-professional archaeological metal-detecting in Europe has been conducted largely at the level of individual legislations. Papers in this Topical Issue take stock of current knowledge of and attitudes towards metal-detecting across Europe; its nature and impact as well as the policies and approaches that arise from it within professional archaeology and heritage management. With this collection of papers, the editors aim to stimulate a more unified debate and, ultimately, a common understanding of ethics and best practices in relation to metal-detecting that transcends national and jurisdictional boundaries in Europe.Non peer reviewe

Homo moralis: Personal characteristics, institutions, and moral decision-making

This paper studies how individual characteristics, institutions, and their interaction influence moral decisions. We validate a moral paradigm focusing on the willingness to accept harming third parties. Consequences of moral decisions are real. We explore how moral behavior varies with individual characteristics and how these characteristics interact with market institutions compared to situations of individual decision-making. Intelligence, female gender, and the existence of siblings positively influence moral decisions, in individual and in market environments. Yet in markets, most personalities tend to follow overall much lower moral standards. Only fluid intelligence specifically counteracts moraleroding effects of markets

Homo moralis: Personal characteristics, institutions, and moral decision-making

This paper studies how individual characteristics, institutions, and their interaction influence moral decisions. We validate a moral paradigm focusing on the willingness to accept harming third parties. Consequences of moral decisions are real. We explore how moral behavior varies with individual characteristics and how these characteristics interact with market institutions compared to situations of individual decision-making. Intelligence, female gender, and the existence of siblings positively influence moral decisions, in individual and in market environments. Yet in markets, most personalities tend to follow overall much lower moral standards. Only fluid intelligence specifically counteracts moral-eroding effects of markets

How Does Socio-Economic Status Shape a Child's Personality?

We show that socio-economic status (SES) is a powerful predictor of many facets of a child's personality. The facets of personality we investigate encompass time preferences, risk preferences, and altruism, as well as crystallized and fluid IQ. We measure a family's SES by the mother's and father's average years of education and household income. Our results show that children from families with higher SES are more patient, tend to be more altruistic and less likely to be risk seeking, and score higher on IQ tests. We also discuss potential pathways through which SES could affect the formation of a child's personality by documenting that many dimensions of a child's environment differ systematically by SES: parenting style, quantity and quality of time parents spend with their children, the mother's IQ and economic preferences, a child's initial conditions at birth, and family structure. Finally, we use panel data to show that the relationship between SES and personality is fairly stable over time at age 7 to 10. Personality profiles that vary systematically with SES might offer an explanation for social immobility

How Does Socio-Economic Status Shape a Child's Personality?

We show that socio-economic status (SES) is a powerful predictor of many facets of a child's personality. The facets of personality we investigate encompass time preferences, risk preferences, and altruism, as well as crystallized and fluid IQ. We measure a family's SES by the mother's and father's average years of education and household income. Our results show that children from families with higher SES are more patient, tend to be more altruistic and less likely to be risk seeking, and score higher on IQ tests. We also discuss potential pathways through which SES could affect the formation of a child's personality by documenting that many dimensions of a child's environment differ systematically by SES: parenting style, quantity and quality of time parents spend with their children, the mother's IQ and economic preferences, a child's initial conditions at birth, and family structure. Finally, we use panel data to show that the relationship between SES and personality is fairly stable over time at age 7 to 10. Personality profiles that vary systematically with SES might offer an explanation for social immobility