Unobserved Traits Research Articles

Livin' La Vida Sola: Network Diversity and Well-Being in Middle-Aged Adults Living Alone.

For individuals living alone, having a diverse personal network is considered crucial for mitigating the risk of social isolation and enhancing well-being. Although a reciprocal dynamic between network diversity and well-being is likely, longitudinal evidence supporting reciprocal effects is limited. This study investigates dynamic transactions between network diversity and well-being (life satisfaction, loneliness, and depressiveness) in a community-based sample of middle-aged adults from Germany. It also explores moderations by the duration of living alone. Data were drawn from the three-wave RIKSCHA (Risks and Chances of Living Alone) project, which includes N = 389 middle-aged adults living alone. Cross-lagged panel models revealed high rank-order stabilities and correlated changes in network diversity and well-being. Random-intercept cross-lagged panel models and dynamic panel models indicated that unobserved traits accounted for these high stabilities. Correlated changes disappeared when accounting for the trait-like stability of variables. Across all models, no evidence of reciprocal associations between network diversity and well-being was found. All results remained consistent regardless of the duration of living alone. The study discusses trait factors accounting for the high stabilities observed in network diversity and well-being among middle-aged adults living alone. Future research should further explore the traits impacting successful adaptation to living alone within the context of personal networks.

Migration from developing countries: Selection, income elasticity, and Simpson’s paradox

The economic causes and effects of migration from developing countries depend on patterns of self-selection that are difficult to observe. We estimate the degree of migrant self-selection—on both observed and unobserved determinants of income—for 99 developing countries using nationally representative survey data on 653,613 people. In low-income countries, people actively preparing to emigrate have 14 percent higher incomes explained by observed traits such as schooling, and 12 percent higher incomes explained by unobserved traits. The simulated income elasticity of emigration is positive in the aggregate (+0.23) despite being negative in subpopulations, an instance of Simpson’s paradox.

Fee Variation in Private Equity

ABSTRACTWe study how investment fees vary within private equity funds. Net‐of‐fee return clustering suggests that most funds have two tiers of fees, and we decompose differences across tiers into both management‐ and performance‐based fees. Managers of venture capital funds and those in high demand are less likely to use multiple fee schedules. Some investors consistently pay lower fees relative to others within their funds. Investor size, experience, and past performance explain some but not all of this effect, suggesting that unobserved traits like negotiation skill or bargaining power materially impact the fees that investors pay to access private markets.

CHIEF EXECUTIVE OFFICER (CEO) ATTRIBUTES AND TAX AVOIDANCE INSIGHT FROM LISTED NON-FINANCIAL FIRMS IN NIGERIA

The study mainly examined the effect of chief executive officers’ attribute on tax avoidance of listed non-financial firms in Nigeria. To achieve this objective, this study specifically tests the hypothesis that chief executive officers’ attributes in the context of chief executive officers’ tenure, chief executive officers’ ownership, chief executive officers’ gender and chief executive officers’ nationality significantly affects tax avoidance over a 10year time frame (2012 – 2021) for non-financial listed firms in Nigeria. This study is anchored on the Upper Echelon Theory noting that the key concept of the upper echelon theory is that the company reflects its chief executive officer. Robust regression analysis technique was employed to test the formulated hypotheses after fulfilling the necessary conditions for obtaining non-spurious regression estimates. Specifically, the result reveals mixed evidence suggesting that the effect of chief executive officers’ attribute on tax avoidance depends on the observed or unobserved traits. Particularly, the result suggests that higher ownership rights owned by the chief executive officer reduces the level of tax avoidance of listed non-finance firms in Nigeria. Therefore, this study recommends among others that to optimize the non-debt tax saving strategy, management must develop a culture within the organization that values responsible tax planning and encourages chief executive officers’ to actively consider the non-debt tax shield as a strategic tool. Further, management team should promote transparency and open communication about tax strategies, ensuring that tax planning is integrated into overall business decision-making processes.
 Keywords: Chief Executive Officer Attribute, Tax Avoidance, Robust Regression, Upper Echelon Theory.

Ultrafast Dynamics of Extraordinary Optical Transmission through Two-Slit Plasmonic Antenna.

We have theoretically investigated the spatial-temporal dynamics of extraordinary optical transmission (EOT) through a two-slit plasmonic antenna under femtosecond laser dual-beam irradiation. The dynamic interference of the crossed femtosecond laser dual-beam with the transiently excited surface plasmon polariton waves are proposed to characterize the particular spatial-temporal evolutions of EOT. It is revealed that the dynamic EOT can be flexibly switched with tunable symmetry through the respective slit of a two-slit plasmonic antenna by manipulating the phase correlation of the crossed femtosecond laser dual-beam. This is explained as tunable interference dynamics by phase control of surface plasmon polariton waves, allowing the dynamic modulation of EOT at optimized oblique incidences of dual-beams. Furthermore, we have obtained the unobserved traits of symmetry-broken transient spectra of EOT from the respective up- and down-slit of the antenna under crossed femtosecond laser dual-beam irradiation. This study can provide fundamental insights into the ultrafast dynamics of EOT in two-slit plasmonic antennas, which can be helpful to advance a wide range of applications, such as ultrafast plasmonic switch, ultrahigh resolution imaging, the transient amplification of non-linear effects, etc.

Managerial human capital and corporate R&D investment

In this study, we employ firm-level panel data from China to study how the human capital characteristics of a firm's leadership affect R&D investment. One novel feature of this study is that we include human capital traits of both the CEO and the Board of Directors, as well as their interplay. Human capital is measured with various experiences to capture observed and unobserved traits. Using various econometric techniques, we find that both CEO's and BOD's human capital characteristics have a significant impact on R&D investment. CEOs’ innovation experience and overseas experiences promote innovation, while their production experience hinders it. The education and government experiences of board directors show different impacts on R&D investment. Moreover, the human capital traits of CEO and BOD influence each other and thus jointly affect innovation. The effects of leadership human capital on R&D investment are more profound in tech-intensive and smaller firms than in traditional or larger firms.

Gender gap variation across assessment types: Explanations and implications

Using Swedish population data, we document that girls outperform boys by a third of a standard deviation in school grades, whereas a gap of similar magnitude but opposite sign persists in SAT scores in the sample of non-randomly selected test takers. We establish that grades capture different attributes than SAT scores, which accounts for much of the variation in gender gaps. A model of SAT participation illustrates how women’s greater participation—driven by traits not rewarded by higher scores—leads to their negative selection on observed and unobserved traits. We explore the quantitative importance of this mechanism and conclude that while selection is important, it fails to account for a substantial fraction of the gender gap in SAT scores, suggesting the possibility that the SAT penalizes women.

Using genomic prediction with crop growth models enables the prediction of associated traits in wheat.

Crop growth models (CGM) can predict the performance of a cultivar in untested environments by sampling genotype-specific parameters. As they cannot predict the performance of new cultivars, it has been proposed to integrate CGMs with whole genome prediction (WGP) to combine the benefits of both models. Here, we used a CGM-WGP model to predict the performance of new wheat (Triticum aestivum) genotypes. The CGM was designed to predict phenology, nitrogen, and biomass traits. The CGM-WGP model simulated more heritable GSPs compared with the CGM and gave smaller errors for the observed phenotypes. The WGP model performed better when predicting yield, grain number, and grain protein content, but showed comparable performance to the CGM-WGP model for heading and physiological maturity dates. However, the CGM-WGP model was able to predict unobserved traits (for which there were no phenotypic records in the reference population). The CGM-WGP model also showed superior performance when predicting unrelated individuals that clustered separately from the reference population. Our results demonstrate new advantages for CGM-WGP modelling and suggest future efforts should focus on calibrating CGM-WGP models using high-throughput phenotypic measures that are cheaper and less laborious to collect.

Multi-Trait Genomic Prediction Models Enhance the Predictive Ability of Grain Trace Elements in Rice.

Multi-trait (MT) genomic prediction models enable breeders to save phenotyping resources and increase the prediction accuracy of unobserved target traits by exploiting available information from non-target or auxiliary traits. Our study evaluated different MT models using 250 rice accessions from Asian countries genotyped and phenotyped for grain content of zinc (Zn), iron (Fe), copper (Cu), manganese (Mn), and cadmium (Cd). The predictive performance of MT models compared to a traditional single trait (ST) model was assessed by 1) applying different cross-validation strategies (CV1, CV2, and CV3) inferring varied phenotyping patterns and budgets; 2) accounting for local epistatic effects along with the main additive effect in MT models; and 3) using a selective marker panel composed of trait-associated SNPs in MT models. MT models were not statistically significantly (p < 0.05) superior to ST model under CV1, where no phenotypic information was available for the accessions in the test set. After including phenotypes from auxiliary traits in both training and test sets (MT-CV2) or simply in the test set (MT-CV3), MT models significantly (p < 0.05) outperformed ST model for all the traits. The highest increases in the predictive ability of MT models relative to ST models were 11.1% (Mn), 11.5 (Cd), 33.3% (Fe), 95.2% (Cu) and 126% (Zn). Accounting for the local epistatic effects using a haplotype-based model further improved the predictive ability of MT models by 4.6% (Cu), 3.8% (Zn), and 3.5% (Cd) relative to MT models with only additive effects. The predictive ability of the haplotype-based model was not improved after optimizing the marker panel by only considering the markers associated with the traits. This study first assessed the local epistatic effects and marker optimization strategies in the MT genomic prediction framework and then illustrated the power of the MT model in predicting trace element traits in rice for the effective use of genetic resources to improve the nutritional quality of rice grain.

Homicide Deaths Among Adult Cohabitants of Handgun Owners in California, 2004 to 2016 : A Cohort Study.

Although personal protection is a major motivation for purchasing firearms, existing studies suggest that people living in homes with firearms have higher risks for dying by homicide. Distribution of those risks among household members is poorly understood. To estimate the association between living with a lawful handgun owner and risk for homicide victimization. This retrospective cohort study followed 17.6 million adult residents of California for up to 12 years 2 months (18 October 2004 through 31 December 2016). Cohort members did not own handguns, but some started residing with lawful handgun owners during follow-up. California. 17569096 voter registrants aged 21 years or older. Homicide (overall, by firearm, and by other methods) and homicide occurring in the victim's home. Of 595448 cohort members who commenced residing with handgun owners, two thirds were women. A total of 737012 cohort members died; 2293 died by homicide. Overall rates of homicide were more than twice as high among cohabitants of handgun owners than among cohabitants of nonowners (adjusted hazard ratio, 2.33 [95% CI, 1.78 to 3.05]). These elevated rates were driven largely by higher rates of homicide by firearm (adjusted hazard ratio, 2.83 [CI, 2.05 to 3.91]). Among homicides occurring at home, cohabitants of owners had sevenfold higher rates of being fatally shot by a spouse or intimate partner (adjusted hazard ratio, 7.16 [CI, 4.04 to 12.69]); 84% of these victims were female. Some cohort members classified as unexposed may have lived in homes with handguns. Residents of homes with and without handguns may have differed on unobserved traits associated with homicide risk. Living with a handgun owner is associated with substantially elevated risk for dying by homicide. Women are disproportionately affected. The National Collaborative on Gun Violence Research, the Fund for a Safer Future, the Joyce Foundation, Stanford Law School, and the Stanford University School of Medicine.

How Do Private Equity Fees Vary Across Public Pensions?

We provide evidence that investment fees vary within private equity funds. Net-of-fee return clustering suggests that 70% of funds group investors into two fee-tiers that vary along both fixed and variable components. Managers of venture capital funds and those with high past performance are less likely to tier their investors. Some investors consistently earn higher net-of-fee returns relative to others within their funds. Investor size, experience, and past performance explain some but not all of this effect, suggesting that unobserved traits like negotiation skill or bargaining power materially impact the fees investors pay in private equity.

Why some people are not as happy as they could be: the role of unobservable subjective factors

This paper investigates the relative importance of unobservable subjective factors (i.e., genetic, personality, cognitive traits) on happiness. We apply a residual-based approach to distinguish between the direct and indirect effects of unobservable subjective traits on happiness. We refer to the “indirect” effects as the effects of unobservable variables on happiness mediated by social, economic and family factors. We find that these “indirect” effects only explain approximately 25% of the happiness variation at the individual level, while unobserved (i.e. genetic and personality) traits may explain up to 75% of the differences in happiness. We also find that socioeconomic, demographical and institutional factors better explain the variance of happy versus unhappy people. The empirical analysis is based on the European Quality of Life Survey dataset.

Macroevolutionary pattern of Saussurea (Asteraceae) provides insights into the drivers of radiating diversification.

Evolutionary radiations have intrigued biologists for more than a century, yet our understanding of the drivers of radiating diversification is still limited. We investigate the roles of environmental and species-intrinsic factors in driving the rapid radiation of Saussurea (Asteraceae) by deploying a number of palaeoenvironment-, diversity- and trait-dependent models, as well as ecological distribution data. We show that three main clades of Saussurea began to diversify in the Miocene almost simultaneously, with increasing diversification rates (DRs) negatively dependent on palaeotemperature but not dependent on species diversity. Our trait-dependent models detect some adaptive morphological innovations associated with DR shifts, while indicating additional unobserved traits are also likely driving diversification. Accounting for ecological niche data, we further reveal that accelerations in DRs are correlated with niche breadth and the size of species' range. Our results point out a macroevolutionary scenario where both adaptive morphological evolution and ecological opportunities provided by palaeoenvironmental fluctuations triggered an exceptionally radiating diversification. Our study highlights the importance of integrating phylogenomic, morphological, ecological and model-based approaches to illustrate evolutionary dynamics of lineages in biodiversity hotspots.

A Novel Estimation of Unobserved Pig Growth Traits for the Purposes of Precision Feeding Methods.

Recent technological advances make it possible to deliver feeding strategies that can be tailored to the needs of individual pigs in order to optimise the allocation of nutrient resources and contribute toward reducing excess nutrient excretion. However, these efforts are currently hampered by the challenges associated with: (1) estimation of unobserved traits from the available data on bodyweight and feed consumption; and (2) characterisation of the distributions and correlations of these unobserved traits to generate accurate estimates of individual level variation among pigs. Here, alternative quantitative approaches to these challenges, based on the principles of inverse modelling and separately inferring individual level distributions within a Bayesian context were developed and incorporated in a proposed precision feeding modelling framework. The objectives were to: (i) determine the average and distribution of individual traits characterising growth potential and body composition in an empirical population of growing-finishing barrows and gilts; (ii) simulate the growth and excretion of nitrogen and phosphorus of the average pig offered either a commercial two-phase feeding plan, or a precision feeding plan with daily adjustments; and (iii) simulate the growth and excretion of nitrogen and phosphorus across the pig population under two scenarios: a two-phase feeding plan formulated to meet the nutrient requirements of the average pig or a precision feeding plan with daily adjustments for each and every animal in the population. The distributions of mature bodyweight and ratio of lipid to protein weights at maturity had median (IQR) values of 203 (47.8) kg and 2.23 (0.814) kg/kg, respectively; these estimates were obtained without any prior assumptions concerning correlations between the traits. Overall, it was found that a proposed precision feeding strategy could result in considerable reductions in excretion of nitrogen and phosphorus (average pig: 8.07 and 9.17% reduction, respectively; heterogenous pig population: 22.5 and 22.9% reduction, respectively) during the growing-finishing period from 35 to 120 kg bodyweight. This precision feeding modelling framework is anticipated to be a starting point toward more accurate estimation of individual level nutrient requirements, with the general aim of improving the economic and environmental sustainability of future pig production systems.

Is Meta-Accuracy Consistent Across Levels of Acquaintanceship?

Some people tend to be especially accurate about the personality impressions they make, but is meta-accuracy a consistent tendency that spans levels of acquaintanceship, or is it only observed within levels of acquaintanceship? Three studies suggested that meta-accuracy is consistent among close others but not across new acquaintances and close others. This pattern was observed for observable and unobservable traits and when accounting for people who made more consistent impressions on others (i.e., high consensus). Overall, meta-accuracy seems to be circumscribed within levels of acquaintanceship. The major implication of these results is that the mechanisms for meta-accuracy and the attributes of good meta-perceivers likely differ across levels of acquaintanceship.

Religiosity and life satisfaction: evidence from the Russian data

ABSTRACT Does religiosity make people happy? Many studies document positive associations between religiosity and various forms of subjective well-being. This holds true for general life satisfaction as well, both under normal economic conditions and in the case of economic shocks. However, both life satisfaction and religiosity may be correlated with unobserved individual and household traits or unobserved life shocks, which can relate to reverse causality. These facts result in endogeneity problems and make ordinary least square estimates biased. Endogeneity problems refer to situations in which an explanatory variable is correlated with the error term. They usually happen when an unobserved or omitted variable affects both independent and dependent variables. In this study, we employed two methods to avoid possible endogeneity issues: fixed effects and instrumental variable estimations. Using data from the Russian Longitudinal Monitoring Survey (RLMS-HSE) and different econometric models, we document positive associations between religiosity and life satisfaction. In particular, fixed effect and instrumental variable regressions provide evidence for a positive effect of religiosity.

Temporary employment and work‐life balance in Australia

While it is often believed that temporary forms of employment, such as fixed-term contracts, casual work and temporary agency work, provide workers with more flexibility to balance work and private commitments, convincing empirical evidence on this issue is still scarce. This paper investigates the association between temporary employment and work-life balance in Australia, using longitudinal data from the Household, Income and Labour Dynamics in Australia Survey for the period 2001 to 2017. In contrast to previous studies, we compare results from pooled cross-sectional and fixed-effects regressions to investigate the role of time-constant unobserved worker characteristics in linking temporary employment and work-life outcomes. The results show that, after accounting for job characteristics and person-specific fixed-effects, among women only casual employment is unequivocally associated with better work-life outcomes than permanent employment. For men, we mostly find negative associations between all forms of temporary employment and work-life outcomes, but the magnitudes of these associations are much smaller and mostly insignificant in fixed-effects models. This result suggests that male temporary employees have stable unobserved traits that are connected to poorer work-life balance.

Does a Career in Entrepreneurship Affect Executive Compensation? Evidence from Denmark

Prior research has documented different aspects of the relationship between managers’ past careers and their subsequent executive pay. The literature revolves around the distinction between general and specific experience and their impact on CEO compensation. By contrast, this paper focuses on whether and how a history of entrepreneurial experience influences executive pay. By means of highly detailed register data from Denmark, this paper compares the pay of managers with and without entrepreneurial experience. Simple descriptive statistics indicate that former entrepreneurs tend to have a higher compensation despite sorting into smaller and younger firms. In more sophisticated analyses accounting for individual- and firm-level heterogeneity, I find that this premium holds even after alleviating concerns from unobserved traits. Yet, the presence of a premium for managers with an entrepreneurial career is sensitive to several contingencies, such as the level of success, the time since the last entrepreneurial venture, and the degree of industry relatedness. Theoretical interpretations and potential implications are discussed.

Daily grandchild care and grandparents' employment: a comparison of four European child-care policy regimes

AbstractHaving grandchildren is known to reduce individuals’ labour supply. However, it is unclear whether there is a negative association between grandchild care provision and employment among grandparents. Moreover, we do not know how the magnitude of any association between the two activities may vary across countries characterised by different child-care policy regimes. Using data from the Survey of Health, Ageing and Retirement in Europe, this paper investigates the association between daily grandchild care provision and two employment outcomes for grandmothers and grandfathers aged 50–69: the probability of being employed and the average weekly working hours. Recursive bivariate models are used to account for the potential selection of grandparents with different unobserved traits into work and family care. Estimates are compared across four country groups characterised by different child-care policy orientations: optional de-familisation, service de-familisation, supported familism and familism by default. On average, across 20 European countries, grandparents looking after grandchildren daily are no less likely to work than grandparents who do not; however, employed grandfathers work eight hours less per week if providing daily child care. Evidence of a negative association between daily grandchild care and employment is strongest in countries with familistic approaches to child care, with no association in countries characterised by optional de-familisation. This suggests that public support to child care may help retain grandparents in the labour force.

Do Audit Fees Reflect Unique Characteristics of Individual Executives?

SYNOPSIS We examine whether audit fees reflect characteristics of individual executives incremental to known determinants of fees. Using a novel executive effects approach, we find that unexplained audit fees exhibit a statistically and economically significant association with executive effects after controlling for factors related to the firm and environment. Specifically, executive effects represent between 20 and 39 percent of the total variation in unexplained audit fees. Our tests also show only limited evidence that observable proxies are associated with the auditor's perception of an executive's style, which suggests that our analysis identifies unobservable traits that cannot be captured by typical measures in archival research (e.g., gender, age, educational background, and board membership). Collectively, our study highlights the importance of executive characteristics in the determination of audit fees and suggests that future research may benefit from additional consideration of individual executives' influence on the pricing of audit services. Data Availability: Data used in this study are available from public sources identified in the document.