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Nicolas Salamanca

Bio: Nicolas Salamanca is an academic researcher from University of Melbourne. The author has contributed to research in topics: Equity (finance) & Payment. The author has an hindex of 8, co-authored 25 publications receiving 218 citations. Previous affiliations of Nicolas Salamanca include Melbourne Institute of Applied Economic and Social Research & Victoria University of Wellington.

Papers
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Journal ArticleDOI
TL;DR: The authors proposed a household production function approach to human development that explicitly considers the role of parenting style in child rearing, and found that effective parenting styles are negatively correlated with disadvantage, and that disadvantage places on cognitive capacity.
Abstract: We propose a household production function approach to human development that explicitly considers the role of parenting style in child rearing. Specifically, parenting style is modeled as an investment that depends not only on inputs of time and market goods, but also on attention. Our model relates socioeconomic disadvantage to parenting style and human development through the constraints that disadvantage places on cognitive capacity. We find empirical support for key features of our model. Parenting style is a construct that is distinctive to standard parental investments and is important for young-adult outcomes. Effective parenting styles are negatively correlated with disadvantage.

50 citations

Journal ArticleDOI
TL;DR: This paper proposed a household production function approach to human development in which the role of parenting style in child rearing is explicitly considered and showed that effective parenting styles are negatively correlated with socioeconomic disadvantage.
Abstract: We propose a household production function approach to human development in which the role of parenting style in child rearing is explicitly considered. Specifically, we model parenting style as an investment in human development that depends not only on inputs of time and market goods, but also on attention, i.e. cognitive effort. Socioeconomic disadvantage is linked to parenting style and human development through the constraints that it places on cognitive capacity. Our model finds empirical support. We demonstrate that parenting style is a construct that is distinct from standard goods- and time-intensive parental investments and that effective parenting styles are negatively correlated with socioeconomic disadvantage. Moreover, parenting style is an important determinant of young adult's human capital net of other parental investments.

46 citations

Journal ArticleDOI
TL;DR: In this article, the authors show that a changing correlation between endophilia and exophobia can generate perverse predictions for observed market discrimination, and observe heterogeneity in both discrimination and favoritism by nationality and by gender in the distributions of graders' preferences.
Abstract: The immense literature on discrimination treats outcomes as relative: One group suffers compared to another. But does a difference arise because agents discriminate against others – are exophobic – or because they favor their own kind – are endophilic? This difference matters, as the relative importance of the types of discrimination and their inter-relation affect market outcomes. Using a field experiment in which graders at one university were randomly assigned students' exams that did or did not contain the students' names, on average we find favoritism but no discrimination by nationality, and neither favoritism nor discrimination by gender, findings that are robust to a wide variety of potential concerns. We observe heterogeneity in both discrimination and favoritism by nationality and by gender in the distributions of graders' preferences. We show that a changing correlation between endophilia and exophobia can generate perverse predictions for observed market discrimination.

38 citations

Journal ArticleDOI
TL;DR: This paper showed that household heads with a strong internal economic locus of control are more likely to hold equity and hold a larger share of equity in their investment portfolio than other personality traits.
Abstract: We show that household heads with a strong internal economic locus of control are more likely to hold equity and hold a larger share of equity in their investment portfolio. This relation holds when we control for economic preferences and possible confounders such as financial literacy, overconfidence, optimism, trust, and other personality traits. We argue that this relation is driven by a link between internal economic locus of control and a lower perception of the risk of investing inequity. Those with a strong internal economic locus of control perceive less variance in equity, making these investments more attractive.

35 citations

Journal ArticleDOI
TL;DR: This article found that experiencing a labour market shock during the COVID-19 pandemic is associated with a 29% lower level of perceived financial wellbeing, on average, and distribution analyses indicate that the labour market shocks are also associated with higher levels of inequality in financial wellbeing.
Abstract: Australia's economy abruptly entered into a recession due to the COVID-19 pandemic of 2020. Related labour market shocks on Australian residents have been substantial due to business closures and social distancing restrictions. Government measures are in place to reduce flow-on effects to people's financial situations, but the extent to which Australian residents suffering these shocks experience lower levels of financial wellbeing, including associated implications for inequality, is unknown. Using novel data we collected from 2078 Australian residents during April to July 2020, we show that experiencing a labour market shock during the pandemic is associated with a 29% lower level of perceived financial wellbeing, on average. Unconditional quantile regressions indicate that lower levels of financial wellbeing are present across the entire distribution, except at the very top. Distribution analyses indicate that the labour market shocks are also associated with higher levels of inequality in financial wellbeing. Financial counselling and support targeted at people who experience labour market shocks could help them to manage financial commitments and regain financial control during periods of economic uncertainty.

33 citations


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Posted Content
TL;DR: The Arrow-Pratt theory of risk aversion was shown to be isomorphic to the theory of optimal choice under risk in this paper, making possible the application of a large body of knowledge about risk aversion to precautionary saving.
Abstract: The theory of precautionary saving is shown in this paper to be isomorphic to the Arrow-Pratt theory of risk aversion, making possible the application of a large body of knowledge about risk aversion to precautionary saving, and more generally, to the theory of optimal choice under risk In particular, a measure of the strength of precautionary saving motive analogous to the Arrow-Pratt measure of risk aversion is used to establish a number of new propositions about precautionary saving, and to give a new interpretation of the Oreze-Modigliani substitution effect

1,944 citations

01 Jan 2016

1,631 citations

12 Dec 2016
TL;DR: This work integrated multiple nationwide administrative databases and electronic medical records with the four-decade-long Dunedin birth cohort study to test child-to-adult prediction in a different way, using a population-segmentation approach.
Abstract: This study integrated multiple nationwide administrative databases and electronic medical records with the four-decade-long Dunedin birth cohort study to test child-to-adult prediction in a different way, using a population-segmentation approach.

176 citations