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This paper advances the specification and estimation of econometric models of retirement and saving in two earner families. The complications introduced by the interaction of retirement decisions by husbands and wives have led researchers to adopt a number of simplifications. Our analysis relaxes these restrictions. The model includes three labor market states, full-time work, partial retirement, and full retirement; reverse flows from states of lesser to greater work; an extended choice set created when spouses make independent retirement decisions; heterogeneity in time preference; varying taste parameters for full-time and part-time work; and the possibility of changes in preferences after retirement.

To what extent do couples expect to retire together? What distinguishes “atypical congruent” couples who expect to retire separately? What distinguishes “non-congruent” couples who disagree on retirement plans? Using U.S. Health and Retirement Study (HRS) data, we find that “Atypical Congruent” (separate retirement) couples have shorter marriages, larger age differences, unequal decision-making, dependent children, and pension plans for both husband and wife. They are also more frequently interracial or minority couples. “Non-Congruent” couples (who disagree on retirement plans) are distinguished by wife's earnings and husband's occupational status and work schedule.

It is widely believed that contrary to standard asset allocation theory, employees irrationally hold concentrated investments in company stock in their 401(k) plans thus bearing firm-specific risk that could otherwise have been diversified away (see e.g., Benartzi, 2001). However, in measuring any such lack of diversification costs, a unique tax benefit associated with such investments (available to those who choose the Net Unrealized Appreciation (NUA) strategy) has been hitherto ignored. We analyze an employee's optimal allocation of retirement assets among alternative investments, including company stock, in the presence of the NUA tax benefit. The employee has a standard power utility function and seeks to maximize expected utility from her after-tax wealth upon retirement. Based on simulations, we find that, even when company stock is stochastically dominated by investments in the market index, the employee will allocate a non-trivial part of her retirement funds to company stock for a wide range of parameter values. Consistent with empirical evidence, the allocation to company stock is greater for employees closer to retirement and when the company's stock has experienced substantial gain in value.

This project requires students to analyze and make a client recommendation for the most tax-effective saving option, comparing a traditional individual retirement account (IRA) versus Roth IRA. Students analyze the two alternatives and track growth as well as projected tax liability over the life of the client to determine the strategy that generates the best outcome for the client. The project emphasizes principles of tax planning to illustrate that the solution with the smallest tax liability in the short term is not necessarily the most beneficial option over the long term, as well as how this often is in conflict with a client’s expectations and tax preparer tactics utilized to attract new clients. Students will demonstrate critical thinking skills through the analysis of two options for a client, and the communication of the findings with a recommendation through a client letter.

Personal political connections with politicians have positive contribution to the abnormal returns of firms (Hillman, Zardkoohi, & Bierman, 1999; Chung, 2006; Dinc, 2005; Faccio, 2006; Morck, Wolfenzon, & Yeung, 2005; Imai, 2006). Business owners and executives have incentives to invest in political connections because such relationship may enable their firms to gain access to key information not available to the competitors. However, the impact of political connections on the behaviors of firms has only received scant interest in the literature (Hillman, Withers, & Collins, 2009).

The objective of this research is to examine the impact of formal and informal political connections on the scope of family business diversification. We focus on family business because of their unique access to family ties or family social capital to achieve business objectives (Sharma, 2004; Steier, 2003). We test our hypotheses using panel data from 35 Taiwan-based family business groups from 1988 to 2002. Our analysis shows that the informal political connections possessed by the parent generation owners of family business groups are better predictors of family business diversification than the informal political connections established by the children generations owners. This result complements the resource dependence theory by suggesting that durable and non-transferable political connections possessed by family leaders have a unique effect in the corporate decision to diversify. Additionally, the personal ties between politicians and parent generation family leaders are “sticky.” They cannot be easily succeeded by the younger generations.

The Marquis de Sade wrote that people behave differently in separate spaces and that, in different environments, they more easily reveal their true predilections. Throughout de Sade's writings, he reveals ways that hidden rooms, closets, castles, brothels, and monasteries can be used as spaces to unleash inner evil. Conveyed within de Sade's writings are ways in which characters actively change their settings in order to create these heterotopias – or spaces that are separate from normal routines. The role that separate spaces play in maintaining alternative behaviors has not been adequately examined in either de Sade's writings or in heterotopia literature. The purpose of this chapter is to explore the inner workings of a heterotopia frozen in time and space – a small town family business. This query merits exploration because the incestuous, atemporal behaviors that de Sade enacted can manifest themselves in family businesses. To examine this facet of family business, a customized methodology will be introduced – the Sadean duography. This manuscript is beneficial to practitioners in family businesses who seek to understand the hazards of inherting or purchasing new businesses, and to scholars in entrepreneurship and organizational studies seeking a deeper understanding of the role of heterotopias, also known as third spaces.

This chapter focuses on Norwegian farm families by analysing succession patterns across generations and genders in “beanpole” families, i.e. those with several living generations (Brannen, Moss, & Mooney, 2004). The focus is on transfer of property in the case of farm families and its importance for gender relations. Succession here refers to the transfer of farm management control, which may be seen as a continuous, multi-phase process in farm families which begins when the successor is young with gradual assumption of specific responsibilities within the farm business (Symes, 1990). One aim of the chapter is to connect changes in succession praxis in the case of farm families in Norway with the societal changes of three-four generations over the twentieth century. The dynamics of families and households are regarded as key elements of issues such as farm structure (Bengtson, 2001; Bokemeier, 1997; Hareven, 1996; Willson, Shuey, & Elder, 2003), and farm families offer an interesting case for examining intergenerational relations (Brandth, 2002; Elder, Rudkin, & Conger, 1995; Elder, Robertson, & Rudkin, 1996; Lee & Cassidy, 1981; Melberg, 2003).

This chapter focuses on military couples and factors that affect their experiences of work, stress, and health using a life course perspective. An introduction to the definition of military couples is provided followed by a brief review of previous research on marital quality and divorce among military couples. The core of the chapter describes the advantages of using a life course perspective to examine the military life course for couples, and two critical transitions of military life are more fully examined. Specifically, periodic relocation and deployment and their impacts on military couples are reviewed in detail. Future directions for research on military couples are provided, and the use of the Convoy Model of Social Relations as an integrative approach to examine military personnel and family members’ stress and health across the military life course is introduced.

In this chapter, we aim to make the following contributions to the perceived overqualification literature. First, we provide an opportunity-based fairness conceptualization of perceived overqualification, and differentiate it from other justice constructs. Second, we present a multilevel model of perceived overqualification, which enumerates the antecedents and consequences, and explicates the mediators and moderators of the effect of perceived overqualification. Third, we emphasize the importance of considering methodological issues in future research on overqualification. Finally, we offer specific suggestions in studying applicant overqualification and recruiter perceptions.