Two-stage Analysis Research Articles

Technical Efficiency and Intellectual Capital Islamic Banks in Indonesia

This study explores the impact of intellectual capital on the technical efficiency of Islamic banks in Indonesia, emphasizing the shift from traditional physical assets to intellectual resources like digital systems, technologies, and brand value. It analyzes nine Islamic banks out of fourteen in Indonesia from 2013 to 2022 using a two-stage data analysis method. The first stage involves the Data Envelopment Analysis (DEA) model to measure technical efficiency, while the second stage uses the fractional regression model (FRM) instead of the traditional Ordinary Least Squares (OLS) method. The research introduces the iB-VAIC coefficient as a new intellectual capital metric. DEA results show that the average efficiency score for Indonesian Islamic banks is 0.945, with only two banks achieving a perfect score. The FRM analysis indicates a significant link between intellectual capital (iB-VAIC) and technical efficiency, with different components of intellectual capital having varied impacts. The study finds a negative correlation between bank size and technical efficiency and provides insights for bank management and policy development in Islamic banking.
 Keywords: data envelopment analysis, intellectual capital, technical efficiency

Deep integration of pyrolysis kinetics and pyrolysis mechanism of polyimide aerogels

As novel advanced organic materials, polyimide aerogels (PI-AER) exhibit high porosity and excellent thermal stability. For the general and safe application of PI-AER, it is imperative to clarify their thermal decomposition process. The kinetic parameters of PI-ARE pyrolysis were calculated using different traditional kinetic methods, and the results showed that the PI-AER pyrolysis process conformed to the Fn-like mechanistic function model with an average activation energy of 143.984 kJ/mol. The pyrolysis mechanism function model of the main pyrolysis stages was optimized and reconstructed to obtain the optimal solution f(α). In addition, the concentration changes of pyrolysis products with increasing temperature were monitored by TG-MS and the PI-AER bond breaking mechanism was analyzed. Finally, the TG curves were fitted piecewise to obtain Ea and lnA for the two pyrolysis processes. Combined with the pyrolysis mechanism and two-stage kinetic parameter analysis, the effects of the two pyrolysis stages of PI-AER on the kinetic parameters were elucidated. It was shown that the activation energies of solvent volatilization and desorption and PI-AER main chain were 60.1 kJ/mol and 147.76 kJ/mol, respectively. This study provides fundamental industrial parameters for the application of polyimide aerogels in extreme conditions.

Consumer segments less or more willing to adopt foods with microalgae proteins

The use of microalgae proteins as an alternative protein source in the European food market is becoming increasingly important. Despite their potential, these foods are still relatively unknown to European consumers. Therefore, it is crucial for their successful market introduction to explore consumer awareness, perception and willingness to try them. The objectives of this study were to identify factors shaping willingness to try and consumer segments likely to adopt foods with microalgae proteins. Data were collected via a quantitative online survey (N = 3027) in five European countries: the Netherlands, Germany, Hungary, Spain, and Italy. First, binary logistic regression showed that a flexitarian diet, general health interest, food neophobia, and environmental concern significantly shaped willingness to try foods with microalgae proteins. Second, factor analysis identified two dimensions of consumers’ perceptions about foods with microalgae proteins: credence attributes related and experience attributes related. Third, these perception constructs were used alongside willingness to try in a two-stage segmentation analysis to identify consumer segments willing to adopt foods with microalgae proteins. The analysis yielded four segments, “Enthusiast”, “Cautiously curious”, “Undecided”, and “Uninterested”. Finally, the segments were profiled in terms of sociodemographic characteristics, attitudes and perceptions by means of a multinomial logistic regression (n = 2957). Consumers with a higher general health interest, stronger environmental concern, and greater interest in information about foods with microalgae proteins were more likely to be part of segments with a higher willingness to try and more favorable perceptions. Consumers with higher levels of food (technology) neophobia, were more likely to be part of segments with a lower willingness to try and less favorable perceptions. This study has shown that segmentation proves useful to identify and profile consumers who would be less or more likely to adopt foods with microalgae proteins and enables more effective tailoring of marketing and further research efforts.

Risk Management Committee Gender and Likelihood of Financial Distress of Listed Deposit Money Banks in Nigeria

This study explores the effect of risk management committee gender diversity on the likelihood of financial distress among listed deposit money banks in Nigeria. The study utilizes the Nigerian Code of Corporate Governance 2018 as an instrumental variable to address endogeneity concerns related to the self-selection of gender diversity on the risk management committee. The dependent variable is the likelihood of financial distress, while the independent variable is the gender composition of the risk management committee. The sample size consists of 12 listed deposit money banks, and the data covers the period from 2017 to 2021. The analysis employs a two-stage regression analysis technique. The findings of this study reveal a significant positive effect of risk management committee gender on the likelihood of financial distress among listed deposit money banks in Nigeria. This suggests that a higher representation of a particular gender in the risk management committee is associated with an increased likelihood of financial distress. The results have important implications for policymakers, regulators, and banking institutions in Nigeria. The study highlights the need to consider gender diversity in risk management committees as a potential driver of financial distress. The findings call for proactive measures to promote a more balanced gender representation and inclusion in corporate decision-making processes within the banking sector. The findings emphasize the significance of gender diversity in risk management practices and provide valuable insights for stakeholders seeking to enhance risk assessment and mitigate the occurrence of financial distress in the banking sector.

The effect of fuzzy fiber-reinforced composite skin on bending stiffness and debonding growth between skin and polymeric foam core of sandwich structures

Progressive innovations in the field of nanotechnology demonstrate that through the radial growth of aligned carbon nanotubes (CNTs) on the circumferential surfaces of fibers known as fuzzy fibers, the transverse elastic properties of fiber-reinforced composites are notably improved. The main objective of the present work is to numerically examine the effects of using fuzzy fiber-reinforced composite (FFRC) skins on the flexural behavior of sandwich structures. Based on the considered two-stage analysis, in the first instance, the mechanical properties of FFRC are determined by the simplified unit cell (SUC) micromechanical model. Afterward, by simulating the three-point bending test via the finite element method (FEM), major assessments are accomplished to reflect the effects of microstructure-level features, including fiber and CNT volume fractions, CNT/polymer interphase, and CNT diameter, on the bending stiffness and debonding growth between the FFRC skin and polyvinyl chloride (PVC) foam core. The results reveal the satisfactory influence of employing FFRC skins on improving the flexural behavior of sandwich structures.

Measurement and Analysis of Deformation of Underlying Tunnel Induced by Foundation Pit Excavation

The excavation of a foundation pit can exert a notable impact on the underlying tunnel. This research paper aims to analyze and synthesize measured deformation outcomes caused by foundation pit excavation on the underlying tunnel. The paper employs a two-stage analysis approach to derive the calculation formula for additional stress and the deformation control equation of the adjacent tunnel under the influence of foundation pit excavation. Subsequently, the Hermite spectrum method is applied to transform the deformation control equation of the underlying tunnel into a set of linear equations, enabling the determination of the deformation curve. To verify the precision of the theoretical calculation method, a comparative study is conducted between theoretical results and actual measurements. Moreover, a sensitivity analysis of crucial project factors is performed. The research findings reveal minimal disparity between theoretical calculation outcomes and measured deformation of the underlying tunnel, thus affirming the accuracy and rationality of the theoretical calculation formula. The excavation of the foundation pit leads to an uplift deformation in the underlying tunnel, resulting in an “n”-shaped deformation profile. Notably, the stiffness of the foundation soil and the depth at which the tunnel is buried emerge as pivotal factors influencing the deformation of the underlying tunnel. As the stiffness of the foundation soil and the depth of tunnel burial increase, the uplift deformation gradually diminishes, albeit within a restricted range of reduction.

Reduction in acute coronary events without excess out of hospital cardiac arrest during the COVID-19 lockdown of 2020 in new South Wales, Australia

Abstract Background The COVID-19 pandemic has seen a significant reduction in reported ACS cases, raising concerns of avoidance behaviour contributing to increased OHCA incidence; exploring this phenomenon can help identify potential mediating factors for these changes and better understand its impact on cardiovascular health. Purpose Australia's successful COVID-19 lockdown provides a unique opportunity to study whether it affected the incidence of ACS and OHCAs, shedding light on the impact of pandemic-related behavioural modifications on cardiovascular health. Method Using data from the NSW Government database for ACS and NSW Ambulance dispatch data for OHCA, along with climate, traffic, and air quality data, we estimated the excess number of cases using an interrupted time-series analysis that adjusted for seasonal variations, day of the week and temperature. As a sensitivity analysis, we also conducted a two-stage time series analysis for the excess OHCA. Results During COVID-19’s first lockdown period (15th March to 1st July 2020), there were reductions in both ACS (-1259 [95% CI -1530, -989]) and OHCA (-69[-235, -92]) (Fig1). In this period there was a clear changes in anthropogenic activities with reductions in traffic (5670±1380 in 2020 versus 9150±1220 in 2018 and 8640±2370 in 2019) and flights (207±169 versus 884±152 and 902±103).These reductions were accompanied with improvement in PM2.5 (5.1±2.1μg/m3 versus 9.0±3.2 in 2018 and 8.2±3.2 in 2019), PM10 (13.3±5.4μg/m3 versus 20.9±8.6 and 17.7±6.0), and NO2 (7.4±2.7 ppb versus 8.4±3.3 and 9.0±2.8) (Fig2). Conclusion During the first COVID-19 lockdown in NSW, there was a significant reduction in the number of ACS cases without any associated excess in OHCA. This may be caused, at least partly, by the improved air quality from the behavioural changes.Excess ACS (STEMI & NSTEMI) and OHCAChanges in Traffic and Flights Activitie

Do Indian banks perform better in corporate governance than other SAARC nations? An empirical analysis

Purpose This paper aims to investigate the role of corporate governance on the bank profitability of Indian banks vis-à-vis South Asian Association for Regional Cooperation (SAARC) nations. Design/methodology/approach For the Corporate Governance Index, the authors examined board accountability, transparency and disclosure and audit committee, while Tobin’s Q, return on equity and return on assets are used to measure the bank’s profitability. The study used a two-stage analysis based on balanced panel data for robust findings. Sample of this study consists of 60 commercial banks from India and 60 banks from SAARC nations for the period of 2009–2021. This study used panel regression and a generalized method of moment approach using the CAMELS framework on banking industry-specific variables to determine their respective impacts. Findings The findings of this study suggest that board accountability is positive and significantly affects the profitability of banks as indicated by return on assets, return on equity and Tobin’s Q. In contrast, the audit committee has a positive and insignificant impact on return on assets, return on equity and Tobin’s Q, while transparency and disclosure have a negative and significant impact on these metrics. Furthermore, the country dummy result shows a significant positive impact on all the bank performance parameters, implying that Indian banks have the highest degree of convergence with corporate governance as compared to other SAARC nations. Research limitations/implications This study provides insight to the regulators, policymakers and financial institutions to evaluate the role of corporate governance in emerging economies. However, the findings of the study should be interpreted with caution, as the results are sensitive to the disparity between India and other SAARC nations' government policies, climatic circumstances and cultural or religious traditions. Originality/value To the best of the authors’ knowledge, this is the first attempt to gauge the performance of Indian banks vis-à-vis SAARC nations using the CAMELS framework approach. Further, findings of this study suggest some novel evidence tying corporate governance quality with the profitability of banks among SAARC nations.

Exploring the relationship between extreme weather events, urbanization, and food insecurity: Institutional quality perspective

This study examines the potential for institutional quality to address Africa's trilemma of food insecurity, rapid urbanization, and extreme weather events.Using a two-stage least squares regression analysis of 28 African countries between 2012Q1 and 2021Q4, our results suggest that extreme weather events have a significant negative impact on food security, particularly in urban areas.We found that institutional quality can have a significant positive impact on food security and can mitigate the negative effects of extreme weather events on food security. Our study also decomposed the food security index into its four components and found that extreme weather events negatively affect the affordability, availability, quality, and natural resource resilience of food. The findings are robust to the use of the feasible generalized least squares and panel-corrected standard errors estimation techniques.The policy implications of our study are significant, as our findings suggest that central governments can take practical steps to minimize the impact of extreme weather events on food security. Specifically, investing in disaster preparedness, improving infrastructure, and promoting agricultural development can all help improve food security. Additionally, improving institutional quality can be an effective way to mitigate the negative impact of extreme weather events on food security.

Seismic behaviour of post-earthquake composite frame structures with different damage levels

Since earthquakes pose a huge threat to buildings, the post-earthquake safety assessment is quite important, especially in earthquake-prone areas. This paper investigates the seismic performance of post-earthquake composite frame structures with different damage levels. Two-stage nonlinear time history analysis is carried out for a ten-story steel–concrete composite frame and the peak ground acceleration (PGA) of the seismic waves is used as the main parameter characterizing the seismic intensity and damage level. In the first stage, the seismic waves with the PGAs of 0.20 g, 0.30 g and 0.40 g are applied to the frame to result in three different damage levels. The peak inter-story drift ratios, residual inter-story drift ratios and plastic hinge ratios of the structure in the first-stage earthquakes are analysed, which presents a uniform distribution pattern for the three damage levels. The composite frame is evaluated as structurally safe at all three damage levels based on the limits of residual inter-story drift ratios given in current standards. In the second stage, the seismic waves with the PGA of 0.40 g are used to explore the residual capacity of the structure subjected to strong earthquakes. The dynamic responses of the intact structure and the structure with different damage levels are compared. The results indicate that despite the recognised structural safety, pre-existing seismic damage can enlarge the lateral deformation, reduce the internal forces and resistance capacity and increase the plastic hinges when the composite frame is exposed to the second-stage earthquakes. Generally, the damage caused by earthquakes with the PGA of 0.40 g will have an obvious influence on the seismic behaviour of the post-earthquake structure, in which situation further safety assessment and structural repairs are necessary.

Efficiency and performance of Islamic banks amid COVID-19

Purpose This paper aims to investigate the efficiency and performance of the Islamic banking industry amid the COVID-19 pandemic. Design/methodology/approach The authors used a two-stage data envelopment analysis to first estimate the efficiency of 78 Islamic banks (IBs) across 15 countries for the 2005–2020 period (a total of 782 bank-year observations) and then to examine their determinants, including the COVID-19 pandemic. Findings The authors found that the Islamic banking industry performed at a moderate level during the 2005–2020 period, providing evidence that IBs are resilient to the financial shocks created by COVID-19. The authors also found that bank-level characteristics (such as bank size) and country-level characteristics (such as inflation) can contribute to the bank’s operational efficiency. Research limitations/implications The results of this study suggested that banking management and government macroeconomic policy, especially in terms of precautions and continuous support, are important for IBs to improve their performance. Originality/value To the best of the authors’ knowledge, this is the first study to examine the efficiency and performance of IBs amid COVID-19.

Net impact of air conditioning on heat-related mortality in Japanese cities

BackgroundAir conditioning (AC) presents a viable means of tackling the ill-effects of heat on human health. However, AC releases additional anthropogenic heat outdoors, and this could be detrimental to human health, especially in urban communities. This study determined the excess heat-related mortality attributable to anthropogenic heat from AC use under various projected global warming scenarios in seven Japanese cities. The overall protection from AC use was also measured. MethodsDaily average 2-meter temperatures in the hottest month of August from 2000 to 2010 were modeled using the Weather Research and Forecasting (WRF) model with BEP+BEM (building effect parameterization and building energy model). Risk functions for heat–mortality associations were generated with and without AC use from a two-stage time series analysis. We coupled simulated August temperatures and heat–mortality risk functions to estimate averted deaths and unavoidable deaths from AC use. ResultsAnthropogenic heat from AC use slightly augmented the daily urban temperatures by 0.046 °C in Augusts of 2000–2010 and up to 0.181 °C in a future with 3 °C urban warming. This temperature rise was attributable to 3.1–3.5 % of heat-related deaths in Augusts of 2000–2010 under various urban warming scenarios. About 36–47 % of heat-related deaths could be averted by air conditioning use under various urban warming scenarios. DiscussionAC has a valuable protective effect from heat despite some unavoidable mortality from anthropogenic heat release. Overall, the use of AC as a major adaptive strategy requires careful consideration.

Economic burden of premature deaths attributable to different heatwaves in China: A multi-site study, 2014–2019

It has been well documented that heatwaves are linked to elevated mortality and morbidity. However, the selection of optimal heatwave definitions for subsequent risk assessment has been inconsistent and there is no full picture of the effects of heatwaves with different intensities on economic losses due to mortality, which can provide important insights for public health considerations. Hence, we used a two-stage time series analysis, combined with values of statistical life (VSL) based on the value of a statistical life year to assess the economic burden of deaths associated with heatwaves of different intensities and durations and to identify the vulnerable populations and regions. We further conducted stratified analyses by age, sex, and region. We found 2.9% (95%CI: 0.0%, 6.5%)‒20.0% (95%CI: 2.9%, 34.2%) of VSL were attributable to heatwaves, corresponding to attributable economic losses (AELs) of 2.20 (95%CI: 0.32, 3.77)‒4.77 (95%CI: 1.53, 7.63) billion CNY. The economic burden of death was most sensitive to heatwave H99P_2D (99th percentile, at last 2 consecutive days), while H97·5P_2D (97.5th percentile, at last 2 consecutive days) caused the highest attributable economic losses. Females and elderly people aged ≥ 65 years were more sensitive. The AELs in the temperate zone and northern regions were larger than those in subtropical zone and southern regions during relatively low-intensity heatwaves, respectively. By contrast, the AELs in subtropical zone and southern regions were relatively higher than those in temperate zone and northern regions during relatively high-intensity heatwaves, respectively. The AELs were larger in urban areas than in rural areas. Tailored intervention strategies, primarily focusing on vulnerable populations and regions, should be formulated to reduce the economic loss due to heatwaves in the context of climate change.

Can industrial transfer improve urban innovation efficiency?

Investigating whether industry transfers to different cities and regions contribute to innovative efficiency improvement is a critical issue in addressing the development of urban innovation. Using the implementation of national industrial relocation demonstration zones (NIRDZ) in China as a quasi-natural experiment, this study empirically assesses the impact of industrial relocation upon urban innovation efficiency. This study first measures the urban innovation efficiency of 194 prefectural cities during 2005–2019 using a two-stage data envelopment analysis model. Then, a multiperiod difference-in-differences model is used to evaluate the innovation effects of national-level demonstration zones for undertaking industrial transfers. The results are as follows. First, industrial relocation does contribute to urban innovation efficiency. This conclusion is supported by a series of robustness tests confirming that the NIRDZ pilot policy indeed contributes to this efficiency, including a placebo test, propensity score matching, shortened time window, winsorized outliers, and lag treatment. Secondly, a regional heterogeneity analysis shows that the pilot policy significantly promotes innovation efficiency of cities located in the central region, but there is an insignificant effect in western region cities. The analysis of city size heterogeneity shows that the pilot policy promotes innovation efficiency more significantly in small cities. In contrast, the promotion effect on big cities is not significant. Third, when considering the potential impact mechanisms, the NIRDZ policy positively affects urban innovation efficiency by enhancing the informatization level and improving economic development. Based on the analysis above, this study recommends establishing an effective mechanism for industrial transfer, realizing the transfer between different regions and cities according to local conditions, and deepening the NIRDZ policy implementation. Policymakers should also increase investment in the construction of an informatization platform, plan resource usage rationally, promote regional integration development, change the philosophy of education, and recognize how the NIRDZ policy influences urban innovation through economic development and informatization.

Analysis based on object detection algorithms

With the increasing demand for intelligent systems capable of comprehending visual information, the discipline of image object detection has experienced rapid expansion. Despite the fact that numerous methods have been proposed, the existing literature lacks exhaustive analyses and summaries of these methods. This paper seeks to address this deficiency by providing a thorough overview and analysis of image object detection techniques. This paper analyzes and discusses traditional methods and deep learning-based methods, with a focus on analyzing the current state and shortcomings of traditional methods. Further discussion is given to deep network-based object detection methods, mainly through a comparative analysis of two-stage and one-stage methods. The basic performance of the You Look Only Once (YOLO) series methods is highlighted. The contribution of large-scale datasets and evaluation metrics to the advancement of the state of the art is also examined. This comprehensive analysis is a useful reference for researchers who aim to contribute to the continual progress of image object detection.

Virtues in Competency-Based Assessment Frameworks: A Text Analysis.

Official documentation of specialty training provides comprehensive and elaborate criteria to assess residents. These criteria are commonly described in terms of competency roles and entrustable professional activities (EPA's), but they may also implicitly encompass virtues. Virtues are desirable personal qualities that enable a person, in this case, a medical specialist, to make and act on the right decisions. We articulate these virtues and explore the resulting implied ideal of a medical professional. We applied a two-staged virtue ethical content analysis to analyze documents, specific to the Dutch training program of the Ear, Nose, and Throat (ENT) specialty. First, we identified explicit references to virtues. Next, we articulated implicit virtues through interpretation. The results were categorized into cardinal, intellectual, moral, and professional virtues. Thirty virtues were identified in the ENT- training program. Amongst them, practical wisdom, temperance, and commitment. Furthermore, integrity, curiosity, flexibility, attentiveness, trustworthiness and calmness are often implicitly assumed. Notable findings are the emphasis on efficiency and effectiveness. Together, these virtues depict an ideal of a future medical specialist. Our findings suggest that competency-frameworks and EPA's implicitly appeal to virtues and articulate a specific ideal surgeon. Explicit attention for virtue development and discussion of the role and relevance of implied ideal professionals in terms of virtues could further improve specialty training.

Effects of healthcare financing policy tools on health system efficiency: Evidence from sub-Saharan Africa

BackgroundEvidence shows high levels of catastrophic and impoverishing healthcare expenditure among households in sub-Saharan Africa (SSA). The way healthcare is financed has an impact on how well a health system performs its functions and achieves its objectives. This study aims to examine the effect of healthcare financing policy tools on health system efficiency. MethodThe study classifies 46 sub-Saharan African (SSA) countries into four groups of health systems sharing similar healthcare financing strategies. A two-stage and one-stage stochastic frontier analysis (SFA) and Tobit regression techniques were employed to assess the impact of healthcare financing policy variables on health system efficiency. Data from the selected 46 SSA countries from 2000 to 2019 was investigated. ResultsThe results revealed that prepayment healthcare financing arrangements, social health insurance, mixed- and external-financing healthcare systems significantly enhance health system efficiency. Reliance on a single source for financing healthcare, particularly private out-of-pocket payment reduces health system efficiency. ConclusionFor policy-making purposes, health care systems financed through a mix of financing arrangements comprising social health insurance, private, and public funding improve health system efficiency in delivering better health outcomes as opposed to depending on one major source of financing, particularly, private out-of-pocket payments.

Two-Stage Sentiment Analysis on Indonesian Online News Using Lexicon-Based

The image of a supplier company is often associated with the well-known brand it supplies, and its reputation can be influenced by online news circulation. To maintain a positive image, it is crucial for the company to monitor and manage online news to rectify any false information. Failure to maintain a good company image can lead to customer order loss and even company shutdown. This paper aims to conduct a two-stage sentiment analysis on Indonesian news articles regarding unilateral layoffs by company XYZ. The first stage will analyze sentiment in the circulating news about the layoffs, while the second stage will assess sentiment after the company releases a press release to provide accurate information. The VADER lexicon-based method, utilizing the InSet and SentiStrength_ID Indonesian dictionaries, will be employed to analyze sentiment before and after the press release. This will enable us to compare sentiment and evaluate the effectiveness of the press release and the Indonesian dictionaries in analyzing sentiment in the news. The research findings indicate that the company's press release, aimed at correcting false information, had a positive impact by reducing negative sentiment and generating a more positive sentiment in the second stage. Moreover, the selection of the sentiment analysis dictionary also plays a critical role in determining the sentiment analysis results.

UNDERSTANDING THE CARBON INTENSITY OF SOUTH KOREA’S EXPORTS: A MULTIPLICATIVE STRUCTURAL DECOMPOSITION ANALYSIS

Despite the large and growing role of exports in Korea’s carbon emissions, they have been largely overlooked in Korea’s carbon neutrality strategy. With this in mind, we analyze Korea’s aggregate emission intensity of exports (AEIE), an indicator of the environmental efficiency of exports, which decreased from 1.37[Formula: see text]Kt/$M to 0.74[Formula: see text]Kt/$M during 2000–2014. Using the multi-regional input-output model and two-stage multiplicative structural decomposition analysis (MSDA), we uncover drivers of changes in the AEIE. Analysis of bilateral AEIE shows that exports to developed countries had a large impact on the decline while exports to developing countries have risen in importance. MSDA shows that the carbon intensity effect contributed most to the decline but that trade in intermediate goods and trade in final goods were also important. At the sectoral level, manufacturers of basic metals, electricity, gas, steam and air conditioning supply and transportation sectors were shown to be important drivers of the decline in the AEIE. As the first study to analyze the drivers of Korea’s AEIE, this paper suggests various abatement policies to help achieve the goal of carbon neutrality by 2050.

The effect of intergenerational mobility on family education investment: evidence from China

The discussion of inequality has been an enduring topic in sociology and economics. With the intensification of inequality, an increasing amount of research has begun to focus on the impact of inequality on various aspects of the economy and society. However, research on how inequality affects families’ education investment behavior currently remains relatively scarce. This study contributes to filling this gap by presenting one of the first analyses of the effect of intergenerational mobility-based opportunity inequality on family education investment. Specifically, based on a Chinese population sample survey conducted in 2015 and the China Family Panel Studies survey conducted in 2018, this paper measures the intergenerational mobility of regions using an index of intergenerational educational rank correlation, and it uses extracurricular tutoring expenses to measure families’ investment in their children’s education. The benchmark regression results show that intergenerational mobility significantly negatively impacts family education investment, with the average family education investment decreasing by 25.75 percent for every 0.1-unit increase in intergenerational mobility. This negative effect remains significant after robustness tests, such as replacing the explanatory variables and dependent variables, considering the influence of important omitted variables, evaluating the impact of unobservable factors, and introducing an instrumental variable for two-stage least squares regression analysis. In addition, this negative impact is more prevalent among families with high socioeconomic status, while it is not significant in families with low socioeconomic status. The reason is that families with low socioeconomic status face greater credit constraints and intergenerational mobility incentives. Furthermore, an examination of the mechanisms involved reveals that although the improvement in intergenerational mobility may increase people’s confidence in investing, it ultimately reduces family education investment by lowering excessive anxiety and the extent of status-seeking behavior among families. According to the analysis, promoting equality of opportunity could mitigate China’s negative educational competition and facilitate the realization of the “Double Reduction” policy.