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  • Educational Reforms, Incentive Schemes, and Their Impact on Academic Achievement

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  • von Dawans, Bernadette; Trueg, Amalie; Kirschbaum, Clemens; Fischbacher, Urs; Heinrichs, Markus (2018): Acute social and physical stress interact to influence social behavior : The role of social anxiety PloS one. 2018, 13(10), e0204665. eISSN 1932-6203. Available under: doi: 10.1371/journal.pone.0204665

    Acute social and physical stress interact to influence social behavior : The role of social anxiety

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    Stress is proven to have detrimental effects on physical and mental health. Due to different tasks and study designs, the direct consequences of acute stress have been found to be wide-reaching: while some studies report prosocial effects, others report increases in antisocial behavior, still others report no effect. To control for specific effects of different stressors and to consider the role of social anxiety in stress-related social behavior, we investigated the effects of social versus physical stress on behavior in male participants possessing different levels of social anxiety. In a randomized, controlled two by two design we investigated the impact of social and physical stress on behavior in healthy young men. We found significant influences on various subjective increases in stress by physical and social stress, but no interaction effect. Cortisol was significantly increased by physical stress, and the heart rate was modulated by physical and social stress as well as their combination. Social anxiety modulated the subjective stress response but not the cortisol or heart rate response. With respect to behavior, our results show that social and physical stress interacted to modulate trust, trustworthiness, and sharing. While social stress and physical stress alone reduced prosocial behavior, a combination of the two stressor modalities could restore prosociality. Social stress alone reduced nonsocial risk behavior regardless of physical stress. Social anxiety was associated with higher subjective stress responses and higher levels of trust. As a consequence, future studies will need to investigate further various stressors and clarify their effects on social behavior in health and social anxiety disorders.

  • Schumann, Stephan; Kaufmann, Esther; Eberle, Franz; Jüttler, Andreas; Ackermann, Nicole (2017): Being an economic-civic competent citizen : a technology-based assessment of commercial apprentices in Germany and Switzerland Empirical Research in Vocational Education and Training. 2017, 9, 13. ISSN 1877-6337. eISSN 1877-6345. Available under: doi: 10.1186/s40461-017-0056-1

    Being an economic-civic competent citizen : a technology-based assessment of commercial apprentices in Germany and Switzerland

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    Background: Citizens in modern democratic societies are confronted with complex demands, challenges, and economic problems, and they typically act as consumers, savers, voters, and employees. It is highly desirable for citizens to be able to competently manage these various demands. This ability we call economic-civic competence. Given the lack of empirical findings and adequate instruments on this issue, we analyze the economic-civic competence of commercial apprentices in Germany and Switzerland. In Swiss commercial apprenticeships, the fostering of this competence is explicitly anchored in the curricula of vocational schools. In Germany, the curricula coverage is not as broad as in Switzerland, which leads to an assumption of country differences in civic-economic competence.

    Methods: A total of 1255 apprentices in the commercial occupations/branches of industrial clerk and logistic clerk were assessed at the end of their second or third training year. Our newly developed, reliable and valid technology-based assessment on economic-civic competence includes issues such as the Euro crisis and public debt.

    Results and conclusions: An advantage among the male trainees, which was expected from previous research, was confirmed only among the German logistic clerks. The expected gender effect was not observed among the German industrial clerks or the Swiss clerks. Furthermore, the results confirm the hypothesized higher scores among German trainees with a university entrance degree. In both countries, the industrial clerks scored significantly higher than the logistic clerks did, and the Swiss trainees scored higher than did their German counterparts in a comparable occupation. This difference becomes markedly stronger if only learners without a university entrance degree are considered. One possible explanation for the country difference may be that the promotion of economic-civic competence has a more prominent role in Swiss vocational schools during commercial apprenticeship. Considering the methodological restrictions, the findings should be interpreted primarily as explorative depictions of the characteristics and group differences of economic-civic competence. However, our study can also be seen in the broader context of contemporary interest and challenges in developing technology-based assessment within the field of education. Thus, our study contributes to further research on the characteristics and genesis of economic-civic competences as well as on technology-based assessments.

  • Kärner, Tobias (2017): A mixed-methods study of physiological reactivity to domain-specific problem solving : methodological perspectives for process-accompanying research in VET Empirical Research in Vocational Education and Training. 2017, 9, 10. ISSN 1877-6337. eISSN 1877-6345. Available under: doi: 10.1186/s40461-017-0054-3

    A mixed-methods study of physiological reactivity to domain-specific problem solving : methodological perspectives for process-accompanying research in VET

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    Background
    The study aims to investigate stress-inducing potentials of problem-solving activities (e.g., goal elaboration, decision making, and information seeking) within an authentic problem-solving task from the business administration domain. Furthermore, the study aims to investigate stress-reducing potentials of personal characteristics (e.g., self-efficacy beliefs, vocational experience).

    Methods
    A mixed-methods design was chosen to investigate in-depth processes during domain-specific problem solving, using a computer-based office simulation. Personal characteristics were assessed by questionnaires and tests before the task. Cardiovascular and electrodermal reactivity were measured continuously during the task. Problem-solving activities were coded on the basis of screencasts and think-aloud recordings. Changes in physiological reactivity were estimated on the basis of problem-solving activities and personal characteristics via multilevel regression analyses.

    Results
    The problem-solving task in general was associated with stress reactions. There were no significant main effects of self-efficacy beliefs, vocational experience, and general intelligence. However, changes in heart rate depended on an interaction between vocational experience and activities including goal elaboration and definition. Furthermore, problem-solving activities including decision making were significantly associated with an increase of amplitudes of detected skin conductance responses. A negative correlation found between the problem-solving score and the LF/HF ratio indicates that higher physiological arousal during the problem-solving task was accompanied by lower problem-solving performance.

    Conclusion
    It seems to be worthwhile to integrate physiological methods in domain-specific research practice to a greater extent. An essential advantage of such methods can be seen in the measurements’ relative independence from self-reported biases that seems to be especially important for high-frequency measurements within the scope of process-accompanying surveys and/or when investigating implicit aspects of action processes: from this, some new methodological perspectives for empirical research in VET could be developed. However, one has to consider that physiological measures alone are not objective or meaningful in this context, but rather have to be interpreted in their interplay with psychological parameters (e.g., experiences, behaviors) or with particular situational stimuli.

  • Jahanshahi, Babak; Naghavi, Arash (2017): Education reform and education gaps Applied Economics Letters. 2017, 24(19), pp. 1385-1388. ISSN 1350-4851. eISSN 1466-4291. Available under: doi: 10.1080/13504851.2017.1282110

    Education reform and education gaps

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    We estimate the causal effect of the Italian 2009 “Gelmini” education reform on four academic performance gaps relating to immigration status, gender, parental social status, and parental education. The reform led to a reduction in the number of teachers and an increase in class size. Lags in implementing the reform for different grades is used to specify a difference-in-difference identification strategy. We find that the reform had a statistically and economically significant effect on the immigrant-native gap and on the gender gap, but not on the gap between students with more and less favourable family background. Particularly, our findings show that students with an immigration background were the main losers from the Gelmini reform.

  • Cyron, Laura; Schwerdt, Guido; Viarengo, Martina (2017): The effect of opposite sex siblings on cognitive and noncognitive skills in early childhood Applied Economics Letters. 2017, 24(19), pp. 1369-1373. ISSN 1350-4851. eISSN 1466-4291. Available under: doi: 10.1080/13504851.2017.1279263

    The effect of opposite sex siblings on cognitive and noncognitive skills in early childhood

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    We investigate the effect of having opposite sex siblings on cognitive and noncognitive skills of children in the United States at the onset of formal education. Our identification strategy rests on the assumption that, conditional on covariates, the sibling sex composition of the two firstborn children in a family is arguably exogenous. With regard to cognitive skills, learning skills and self-control measured in kindergarten, we find that boys benefit from having a sister, while there is no effect for girls. We also find evidence for the effect fading out as early as first grade.

  • Baskaran, Thushyanthan; Hessami, Zohal (2017): Monetary integration, soft budget constraints, and the EMU sovereign debt crises Economics & Politics. 2017, 29(3), pp. 252-275. ISSN 0954-1985. eISSN 1468-0343. Available under: doi: 10.1111/ecpo.12093

    Monetary integration, soft budget constraints, and the EMU sovereign debt crises

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    One possible explanation for the European sovereign debt crises is that the European Economic and Monetary Union (EMU) gave rise to consolidation fatigue or even deliberate over-borrowing. This paper explores the validity of this explanation by studying how three decisive stages in the history of the EMU affected public borrowing in EU member states: the signing of the Maastricht Treaty, the introduction of the Euro, and the suspension of the Stability and Growth Pact (SGP). The methodology relies on difference-in-difference regressions for 26 OECD countries over the 1975–2009 period. The findings indicate that the Maastricht treaty reduced deficits especially in traditionally high-deficit countries. In contrast, the introduction of the Euro and the watering down of the original SGP led on average to higher borrowing. These results indicate that the introduction of the Euro and the suspension of the SGP led to soft budget constraints in the EMU.

  • Sturm, Jan-Egbert; Ursprung, Heinrich (2017): The Handelsblatt Rankings 2.0 : Research Rankings for the Economics Profession in Austria, Germany, and Switzerland German Economic Review. 2017, 18(4), pp. 492-515. ISSN 1465-6485. eISSN 1468-0475. Available under: doi: 10.1111/geer.12145

    The Handelsblatt Rankings 2.0 : Research Rankings for the Economics Profession in Austria, Germany, and Switzerland

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    The distinguishing feature of all Handelsblatt rankings published over the last ten years is that they could draw on premium quality bibliometric data. We present here the new method used by KOF and DICE to compile the 2017 Handelsblatt Rankings of university departments and individual economists. As in previous years, the rankings are based on quality weighted journal publications. We show that the benchmark results are robust to various changes in the employed method, in particular to changes in the convexity of the journal quality weighting scheme. In conclusion, we show how the collected data can be used to provide customized evaluations of entire academic careers of individual economists.

  • Probst, Fabian; Fischbacher, Urs; Lobmaier, Janek S.; Wirthmüller, Urs; Knoch, Daria (2017): Men's preferences for women's body odours are not associated with human leucocyte antigen Proceedings of the Royal Society of London / B : Biological sciences. 2017, 284(1864), 20171830. ISSN 0962-8452. eISSN 1471-2954. Available under: doi: 10.1098/rspb.2017.1830

    Men's preferences for women's body odours are not associated with human leucocyte antigen

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    Body odours reportedly portray information about an individual's genotype at the major histocompatibility complex (MHC, called human leucocyte antigen, HLA, in humans). While there is strong experimental support for MHC-associated mating behaviour in animals, the situation in humans is more complex. A lot of effort has been spent on testing HLA-associated odour preferences of women. To date, only very few studies have looked at HLA-linked olfactory preferences in men and these studies have revealed inconsistent results. Here, we investigate men's HLA-associated preferences for women's body odours. Importantly, and in contrast to previous studies, these odours were gathered at peak fertility (i.e. just before ovulation) when any HLA-associated odour preferences should be strongest. We scrutinized whether men's preference for women's body odours is influenced by (i) the number of shared HLA alleles between men and women, (ii) HLA heterozygosity, and (iii) the frequency of rare HLA alleles. We found that men could readily differentiate between odours they found attractive and odours they found less attractive, but that these preferences were not associated with HLA. Specifically, men did not prefer odours from women who are HLA dissimilar, HLA heterozygous, or who have rare HLA alleles. Together, these findings suggest that HLA has no effect on men's odour preferences.

  • Chadi, Adrian; Krapf, Matthias (2017): The Protestant Fiscal Ethic : Religious Confession and Euro Skepticism in Germany Economic Inquiry. 2017, 55(4), pp. 1813-1832. ISSN 0095-2583. eISSN 1465-7295. Available under: doi: 10.1111/ecin.12474

    The Protestant Fiscal Ethic : Religious Confession and Euro Skepticism in Germany

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    During the European sovereign debt crisis, most countries that ran into fiscal trouble had Catholic majorities, whereas countries with Protestant majorities were able to avoid fiscal problems. We find that Christian‐conservative members of the German parliament from constituencies with higher shares of Protestants were more likely to vote against a third bailout for Greece. Survey data show that views on the euro differ between German Protestants and non‐Protestants at the individual level, too. Among Protestants, concerns about the euro have, compared to non‐Protestants, increased during the crisis. We show that this increase in concern is linked to a reduction of Protestants' subjective well‐being. We use the timing of survey interviews and news events in 2011 to account for the endogeneity of euro concerns. Emphasis on moral hazard concerns in Protestant theology may, thus, still shape economic preferences.

  • Fischbacher, Urs; Kairies-Schwarz, Nadja; Stefani, Ulrike (2017): Non-additivity and the Salience of Marginal Productivities : Experimental Evidence on Distributive Fairness Economica. 2017, 84(336), pp. 587-610. ISSN 0013-0427. eISSN 1468-0335. Available under: doi: 10.1111/ecca.12234

    Non-additivity and the Salience of Marginal Productivities : Experimental Evidence on Distributive Fairness

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    We investigate the relevance of different distributive fairness norms in a team production process in which the team members’ contributions to the joint output are not necessarily additive. In some of the cases of non-additivity, the individual marginal contributions to the output are not salient. We vary the salience and investigate how third parties allocate the joint output to the team members. We find that the prevalent norm is to hold others responsible only for their inputs rather than for the incremental increase in the output. The marginal productivities are taken into account only when they are made readily apparent.

  • Niemann, Stefan; Pichler, Paul (2017): Collateral, Liquidity and Debt Sustainability The Economic Journal. Oxford University Press. 2017, 127(604), pp. 2093-2126. ISSN 0013-0133. eISSN 1468-0297. Available under: doi: 10.1111/ecoj.12384

    Collateral, Liquidity and Debt Sustainability

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    We study Markov‐perfect optimal fiscal policy in an economy with financial frictions and sovereign default in the form endogenously determined haircuts on outstanding debt. Government bonds facilitate tax smoothing but also provide collateral and liquidity services that mitigate financial frictions. A debt Laffer curve exists, which induces the government to issue bonds to a point where marginal debt has negative welfare effects. Debt positions in the order of magnitude of annual output remain sustainable despite the option to default. When default happens, liquidity on the bond market is impaired, which can trigger extended periods of recurrent haircuts.

  • Le Blanc, Julia; Scholl, Almuth (2017): Optimal Savings for Retirement : The Role of Individual Accounts Macroeconomic Dynamics. 2017, 21(06), pp. 1361-1388. ISSN 1365-1005. eISSN 1469-8056. Available under: doi: 10.1017/S1365100515000899

    Optimal Savings for Retirement : The Role of Individual Accounts

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    We employ a life-cycle model with income risk to analyze how tax-deferred individual accounts affect households' savings for retirement. We consider voluntary accounts as opposed to mandatory accounts with minimum contribution rates. We contrast add-on accounts with carve-out accounts that partly replace social security contributions. Quantitative results suggest that making add-on accounts mandatory has adverse welfare effects across income groups. Carve-out accounts generate positive welfare effects across all income groups, but gains are lower for low income earners. Default investment rules in individual accounts have a modest impact on welfare.

  • Breyer, Friedrich; Kliemt, Hartmut (2017): Ist die "Rule of Rescue" noch zu retten? : Eine Antwort auf Weyma Lübbes "Rule of Rescue vs. Rettung statistischer Leben" Das Gesundheitswesen. 2017, 79(07), pp. 560-564. ISSN 0941-3790. eISSN 1439-4421. Available under: doi: 10.1055/s-0043-107236

    Ist die "Rule of Rescue" noch zu retten? : Eine Antwort auf Weyma Lübbes "Rule of Rescue vs. Rettung statistischer Leben"

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    Weyma Lübbe adelt in ihrem Aufsatz „Rule of Rescue vs. Rettung statistischer Leben“ [1] die der „Rule of Rescue“ entsprechenden spontanen Wünsche zu „bürgerschaftlichen Urteilen“. Die Urteile und Wünsche der Bürger müssen zweifelsohne im demokratischen Rechtsstaat letztlich ausschlaggebend sein. Insbesondere in der Gesundheitspolitik bedarf die Voreingenommenheit für nahe- gegenüber fernliegenden, für konkrete gegenüber abstrakten Folgen aber eher der Korrektur als der Affirmation. Der „Rule of Rescue“ ist der durch ihre Verwirklichung im Gesundheitswesen entgehende Nutzen gegenüberzustellen. Eine gesundheitsökonomische Information über ihre „Opportunitätskosten“ ist Teil der „gesundheitsethischen Aufklärung“ der Bürger und nicht Teil eines Kampfes gegen die „Rule of Rescue“.

  • Schwerdt, Guido; West, Martin R.; Winters, Marcus A. (2017): The effects of test-based retention on student outcomes over time : Regression discontinuity evidence from Florida Journal of Public Economics. 2017, 152, pp. 154-169. ISSN 0047-2727. eISSN 1879-2316. Available under: doi: 10.1016/j.jpubeco.2017.06.004

    The effects of test-based retention on student outcomes over time : Regression discontinuity evidence from Florida

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    Many American states require that students lacking basic reading proficiency after third grade be retained and remediated. We exploit a discontinuity in retention probabilities under Florida's test-based promotion policy to study its effects on student outcomes through high school. We find large positive effects on achievement that fade out entirely when retained students are compared to their same-age peers, but remain substantial through grade 10 when compared to students in the same grade. Being retained in third grade due to missing the promotion standard increases students' grade point averages and leads them to take fewer remedial courses in high school but has no effect on their probability of graduating.

  • Krapf, Matthias; Ursprung, Heinrich; Zimmermann, Christian (2017): Parenthood and productivity of highly skilled labor : Evidence from the groves of academe Journal of Economic Behavior & Organization. 2017, 140, pp. 147-175. ISSN 0167-2681. eISSN 1879-1751. Available under: doi: 10.1016/j.jebo.2017.05.010

    Parenthood and productivity of highly skilled labor : Evidence from the groves of academe

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    We examine the effect of parenthood on the research productivity of academic economists. Combining the survey responses of nearly 10,000 economists with their publication records as documented in their RePEc accounts, we do not find that motherhood is associated with low research productivity. Nor do we find a statistically significant unconditional effect of a first child on research productivity. Conditional difference-in-differences estimates, however, suggest that the effect of parenthood on research productivity is negative for unmarried women and positive for untenured men. Moreover, becoming a mother before 30 years of age appears to have a detrimental effect on research productivity.

  • Fabella, Vigile Marie (2017): Political-economic determinants of education reform : Evidence on interest groups and student outcomes European Journal of Political Economy. 2017, 48, pp. 144-161. ISSN 0176-2680. eISSN 1873-5703. Available under: doi: 10.1016/j.ejpoleco.2016.07.005

    Political-economic determinants of education reform : Evidence on interest groups and student outcomes

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    Education reforms come in two general types: access and quality reforms. Access reforms provide more educational opportunities, while quality reforms improve educational effectiveness. This paper investigates empirically the factors affecting the enactment of these two kinds of reforms in public primary and secondary education. By using a novel dataset of U.S. state legislation from 2008 to 2013, we find that both access and quality reforms are more likely in times of bad educational outcomes. Moreover, this is the first study documenting that teachers' union strength correlates positively with access reforms and negatively with quality reforms. Our results also shed light on the way teachers' unions promote their political interests: both lobbying and contributions are effective at opposing undesired reforms, but contributions have an extra effect of influencing the enactment of desired reforms.

  • Chadi, Adrian; Jeworrek, Sabrina; Mertins, Vanessa (2017): When the Meaning of Work Has Disappeared : Experimental Evidence on Employees’ Performance and Emotions Management Science. 2017, 63(6), pp. 1696-1707. ISSN 0025-1909. eISSN 1526-5501. Available under: doi: 10.1287/mnsc.2016.2426

    When the Meaning of Work Has Disappeared : Experimental Evidence on Employees’ Performance and Emotions

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    This experiment tests for a causal relationship between the meaning of work and employees’ motivation to perform well. The study builds on an existing employer– employee relationship, adding realism to the ongoing research of task meaning. Owing to an unexpected project cancelation, we are able to study how varying the information provided about the meaning of previously conducted work—without the use of deception, but still maintaining a high level of control—affects subsequent performance. We observe a strong decline in exerted effort when we inform workers about the meaninglessness of a job already done. Our data also suggests that providing a supplemental alternative meaning perfectly compensates for this negative performance effect. Individual characteristics such as reciprocal inclinations and trust prompt different reactions. The data also show that the meaning of work affects workers’ emotions, but we cannot establish a clear relationship between emotional responses and performance.

  • Fischer, Mira; Kauder, Björn; Potrafke, Niklas; Ursprung, Heinrich (2017): Support for free-market policies and reforms : Does the field of study influence students' political attitudes? European Journal of Political Economy. 2017, 48, pp. 180-197. ISSN 0176-2680. eISSN 1873-5703. Available under: doi: 10.1016/j.ejpoleco.2016.07.002

    Support for free-market policies and reforms : Does the field of study influence students' political attitudes?

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    Since opinion leaders are usually university graduates, the field of study has an influence on public support for economic policies and policy reforms intended to enhance efficiency because advocating such policies often requires appreciation of the beneficial roles of markets and economic freedom. We investigate whether the field of study influences German university students' political attitudes. We disentangle self-selection from learning effects and reveal systematic differences between incoming students' political attitudes across eight fields of study. In a second step we explore how the students' political attitudes change as they progress in their academic training. Only studying economics has an unambiguous pro-market influence on political attitudes: by the time of graduation, economics students are some 6.2 percentage points more likely than they were in their initial year of study to agree with free-market policy positions. Studying humanities and natural sciences has a pro-leftist influence.

  • Ichino, Andrea; Schwerdt, Guido; Winter-Ebmer, Rudolf; Zweimüller, Josef (2017): Too old to work, too young to retire? The Journal of the Economics of Ageing. 2017, 9, pp. 14-29. ISSN 2212-828X. Available under: doi: 10.1016/j.jeoa.2016.07.001

    Too old to work, too young to retire?

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    We study whether employment prospects of old and young workers differ after a plant closure. Using Austrian administrative data and a combination of exact matching and fixed effects, we show that old and young workers face similarly large displacement costs in terms of employment in the long-run, but old workers lose considerably more initially and gain later. Effects on wages of displaced workers are not age-dependent. We interpret these findings in the light of a standard job search model augmented to allow for an absorbing state capturing the option of “early retirement”.

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