Some implications of a quartic loss function

Motivated by a central banker with a symmetric but non-quadratic loss function, we show in this note that the approximations of two plausible loss functions of this type will include a quartic term. For skewed distributions, we establish that such a loss function implies a systematic inflation bias even when the bank targets the natural rate. Moreover, we show that the weights in an optimal combination of forecasts will differ from that under quadratic loss. We illustrate these differences using simulated data and data from the Livingston Surveys of Professional Forecasters.

Choosing your object of benevolence: a field experiment on donation options

In a large natural field experiment, we explore the effect of providing donors with the opportunity to choose the target country for their donations. We find that only a small fraction of donors use the option, which might reflect a reluctance to consider tradeoffs when those concern important, 'protected', values. However, those donors who choose their object of benevolence give significantly more, even when controlling for their donation history. In view of the latest research on identifable-victim effects, our findings underline that less inclusive targets can evoke more intense feelings than more inclusive ones stressing that altruistic motivation seems to be mediated by aroused empathetic emotions. --charitable giving,identifiable victim,field experiment,altruism,contingent valuation

Small is beautiful: Experimental evidence of donors' preferences for charities

This paper studies the effect of information about a charity's size on individuals' donations to that charity. We conducted a framed field experiment with a non-student sample, in which subjects had the opportunity to donate for various charitable purposes. The results show that if subjects are to choose between large organizations with high annual revenues and small organizations with low revenues, they prefer the small organizations. We also provide insights why donors prefer the small organizations and discriminate between different theoretical approaches. --charitable contributions,information,framed field experiment,fundraising

Gender differences in German wage mobility

This paper analyzes the evolution of wage inequality and wage mobility separately for men and women in West and East Germany over the last four decades. Using a large administrative data set which covers the years 1975 to 2008, I find that wage inequality increased and wage mobility decreased for male and female workers in East and West Germany. Women faced a higher level of wage inequality and a lower level of wage mobility than men in both parts of the country throughout the entire observation period. The mobility decline was sharper in East Germany so that the level of wage mobility has fallen below that of West Germany over time. Looking at long-term mobility, a slowly closing gap between men and women is observed

Health consequences of exposure to environmental living conditions:Pathways and spatial patterns in Europe

This dissertation delves into the health consequences of environmental living conditions in Europe, considering both physical and mental health aspects. By adopting a holistic multilevel approach and an interdisciplinary perspective, the research focuses on exploring spatial patterns and temporal pathways between the environment and health outcomes. It specifically investigates various dimensions of the living environment and their influence on physical and mental health. By analyzing data using advanced statistical techniques, this thesis underscores the complex relationship between environmental factors and health.Several key findings emerge from this research, including the association between food accessibility and obesity, the impact of environmental pollution on physical health, the link between air pollution and cognitive functioning, and the role of living in deprived areas in the onset depression during a macro-level financial crisis. This dissertation underscores the significance of both spatial variations and temporal factors in understanding the impact of environmental living conditions on health outcomes.The results hold implications for policy formulation, suggesting the need for tailored interventions based on specific spatial and temporal contexts. The findings emphasize the importance of public awareness regarding the global interplay between the environment, human behavior, and health. Furthermore, the research highlights the relevance of considering both physical and mental health in addressing environmental health concerns

The short- and long-term effects of the Great Recession on late-life depression in Europe:The role of area deprivation

Introduction: The prevalence of depression increases in times of economic crises. Less is known about whether people living in advantaged or disadvantaged areas suffer equally from negative effects of crisis. Objective: To explore the role of area deprivation on the short- and long-term effects of the Great Recession in Europe on late-life depression. Methods: Individual panel data from Austria, Belgium, Denmark, France, Germany, Italy, Spain, Sweden, Switzerland of the SHARE (age 50+, n = 6866) between 2004 and 2017 were used. Late-life depression (LLD) was measured by the EURO-D scale (4+ symptoms). Area deprivation was assessed by a country-specific z-standardized scale measuring perceived access to various services and quality of the social and built environment. Quarterly country-level GDP and yearly unemployment data were explored to define country-specific durations of the Great Recession. Individual fixed effects panel regressions were estimated controlling for time-varying socioeconomic and health-related confounders. Results: Prevalence and incidence of late-life depression was generally higher in deprived than in non-deprived areas, and these differences in prevalence and incidence increased during the Great Recession. Regressions showed that the Great Recession was related to a 23% higher long-term risk of late-life depression (OR: 1.23, CI: 1.05–1.44) for all study participants. In the short-term of the Great Recession, people from deprived areas had a 22% higher risk of late-life depression (OR: 1.22, CI: 1.02–1.46) than people from non-deprived areas. Conclusion: The findings suggest that older adults exposed to adverse area determinants suffer more from the negative short-term effects of a severe economic crisis on depression and mental health inequalities may have increased between people living in deprived versus non-deprived areas. This potential increase in mental health inequalities warrants particular attention for those people living in deprived areas