We study monitoring and enforcement for environmental compliance in the context of a transitional economy. We estimate the factors correlated with inspections carried out by the Chilean Superintendence of Environment, the imposition of fines to detected violators and the compliance behaviour of regulated facilities. The analysis considers 6,670 facilities from different economic sectors between 2013 and 2019. We find evidence of targeted monitoring and enforcement actions based on past facilities’ behaviour and individual specific characteristics. The size of the implemented fines on detected violators correlates positively with the severity and recurrence of the violation and larger fines are imposed on facilities in the energy and mining sector. We also find that the imposition of fines is transmitted as a spillover effect on the compliance behaviour of facilities sharing the same firm owner. We discuss the policy implications for improving monitoring and enforcement strategies under budget constraints.

Conditional risk measures and their associated risk contribution measures are commonly employed in finance and actuarial science for evaluating systemic risk and quantifying the effects of risk interactions. This paper introduces various types of contribution ratio measures based on the multivariate conditional value-at-risk (MCoVaR), multivariate conditional expected shortfall (MCoES), and multivariate marginal mean excess (MMME) studied in [34] (Ortega-Jiménez, P., Sordo, M., & Suárez-Llorens, A. (2021). Stochastic orders and multivariate measures of risk contagion. Insurance: Mathematics and Economics, vol. 96, 199–207) and [11] (Das, B., & Fasen-Hartmann, V. (2018). Risk contagion under regular variation and asymptotic tail independence. Journal of Multivariate Analysis 165(1), 194–215) to assess the relative effects of a single risk when other risks in a group are in distress. The properties of these contribution risk measures are examined, and sufficient conditions for comparing these measures between two sets of random vectors are established using univariate and multivariate stochastic orders and statistically dependent notions. Numerical examples are presented to validate these conditions. Finally, a real dataset from the cryptocurrency market is used to analyze the spillover effects through our proposed contribution measures.

Epistemic paternalism involves interfering with the inquiry of others, without their consent, for their own epistemic good. Recently, such paternalism has been discussed as a method of getting the public to have more accurate views on important policy matters. Here, I discuss a novel problem for such paternalism—epistemic spillovers. The problem arises because what matters for rational belief is one’s total evidence, and further, individual pieces of evidence can have complex interactions. Because of this, justified epistemic paternalism requires the would-be paternalist to be in an unusually strong epistemic position, one that most would-be paternalists are unlikely to meet.

We present results from a pre-registered, well-powered $(N \gt 3,000,000)$ text message get-out-the-vote (GOTV) experiment, conducted during the 2019 European Parliament election in Sweden. Our findings suggest that a simple text message increases the likelihood of voting by 0.3 percentage points. Half of this effect spills over to untreated household members while workplace spillovers are near zero. Subsequent analysis reveals that the direct treatment effect is noticeably stronger among individuals with below-average voting propensities. Interestingly, within this same group, the household spillovers are significantly negative. We speculate and provide some indirect evidence, that these negative spillover effects may stem from the text message reminder influencing the behaviour of voters already motivated to vote. Above all, we propose that an increase in early voting, as opposed to voting on Election Day, among treated individuals may weaken the mechanisms thought to explain spillover effects since voters are less likely to bring their family members with them when voting early.

Showering is one of the most water-intensive behaviours in urban households, accounting for 20–30% of water use. Real-time feedback from smart devices has been proven to significantly reduce water consumption in showers. Still, it is not known whether these devices have spillover effects on other water use behaviours. For the first time, we provide empirical evidence for a significant and negative within-domain spillover effect from the use of such devices, showing an increase in water use in other activities by 2.5% per day per household. Up to one-third of conservation effects are eroded by such spillovers, resulting in a two steps forward, one step back situation. Overall, however, net water use is still reduced by 4.7% in the 385 households that were observed. This study points out an important behavioural limit on the use of such smart shower devices and suggests that such use be accompanied by informational or other campaigns to reduce the large negative spillovers.

In this article, we take a global perspective to assess the impact of the exogenous COVID pandemic shock on business confidence. Through a quantitative analysis of 31 advanced and 12 emerging economies over the period from January 2018 to December 2020, we provide a novel investigation of a unique worldwide event, in contrast to the most frequent exogenous shocks, which typically have a more limited local or regional scope. We proxy business expectations with the business confidence indicator or BCI. First, we find that the containment measures for the COVID pandemic have negatively affected business confidence, with the compulsory policies having a greater negative effect on BCI than the voluntary ones. Second, we find positive spillover effects on the local BCIs from the containment measures implemented in neighboring countries. This suggests that business people are not against compulsory measures per se, but rather that they are less inclined to assume the costs of these. Third, we find that while the severity of containment measures has been greater in emerging countries, the negative impact on BCI of these containment measures has been larger in advanced economies.

Spillover effects are considered important in evaluating the impacts of food, energy and water (FEW) conservation behaviors for limiting global greenhouse gas emissions and climate change. Failure to account for all possible spillovers, or indirect and unintended results of an intervention, not only obscures valuable information pertaining to the dynamic interactions across domains but also results in biased estimates. In this study, we first systematically reviewed articles that investigate the idea that the performance of one pro-environmental behavior influences the conduct of subsequent behaviors(s) from the FEW domains. From our review of 48 studies in the last decade, we note that a big part of the discussion on spillover concerns the nature and direction of causal relationships between individual FEW conservation behaviors. We identify a critical gap in the literature regarding the distinction between spillover effects caused by the interventions as distinct from those caused by the primary behaviors. Next, we conducted a quantitative meta-analysis of the reviewed empirical studies to find a modest but overall positive spillover effect. Finally, we reviewed the theoretical and methodological plurality in the FEW spillover literature using a systemic thinking lens to summarize what is already known and identify future challenges and research opportunities with significant policy implications.

The international community often seeks to promote political reforms in recalcitrant states. Recently, some scholars have argued that, rather than helping, international law and advocacy create new problems because they have negative spillovers that increase rights violations. We review three mechanisms for such spillovers: backlash, trade-offs, and counteraction and concentrate on the last of these. Some researchers assert that governments sometimes “counteract” international human rights pressures by strategically substituting violations in adjacent areas that are either not targeted or are harder to monitor. However, most such research shows only that both outcomes correlate with an intervention—the targeted positively and the spillover negatively. The burden of proof, however, should be as rigorous as those for studies of first-order policy consequences. We show that these correlations by themselves are insufficient to demonstrate counteraction outside of the narrow case where the intervention is assumed to have no direct effect on the spillover, a situation akin to having a valid instrumental variable design. We revisit two prominent findings and show that the evidence for the counteraction claim is weak in both cases. The article contributes methodologically to the study of negative spillovers in general by proposing mediation and sensitivity analysis within an instrumental variables framework for assessing such arguments. It revisits important prior findings that claim negative consequences to human rights law and/or advocacy, and raises critical normative questions regarding how we empirically evaluate hypotheses about causal mechanisms.

Distinguishing substantively meaningful spillover effects from correlated residuals is of great importance in cross-sectional studies. Both forms of spatial dependence not only hold different implications for the choice of an unbiased estimator but also for the validity of inferences. To guide model specification, different empirical strategies involve the estimation of an unrestricted spatial Durbin model and subsequently use the Wald test to scrutinize the nonlinear restriction of common factors implied by pure error dependence. However, the Wald test’s sensitivity to algebraically equivalent formulations of the null hypothesis receives scant attention in the context of cross-sectional analyses. This article shows analytically that the noninvariance of the Wald test to such reparameterizations stems from the application of a Taylor series expansion to approximate the restriction’s sampling distribution. While asymptotically valid, Monte Carlo simulations reveal that alternative formulations of the common factor restriction frequently produce conflicting conclusions in finite samples. An empirical example illustrates the substantive implications of this problem. Consequently, researchers should either base inferences on bootstrap critical values for the Wald statistic or use the likelihood ratio test which is invariant to such reparameterizations when deciding on the model specification that adequately reflects the spatial process generating the data.

The effect of negative publicity on consumer demand for brands is examined in the context of recall of a peanut butter brand as a result of pathogen contamination. The recall was associated with negative impacts for the implicated brand and positive effects on the leading competitor brand. Consumers responded to the foodborne illness outbreak within three weeks. The case demonstrates that consumer response is an incentive for companies to prevent safety lapses and that the problems of one brand do not necessarily harm rivals within the category.

In recent years, consumer boycotts are increasingly being used by various activist groups to punish targeted countries. This paper develops an analytic framework to help managers formulate strategies to cope with country-of-origin-related consumer boycotts. Based on the two dimensions of brand–country association and boycott intensity, we propose four possible strategies. We discuss spillover effects wherein certain firms become unintended victims of boycotts due to misperceptions about their nationality. Also discussed are economic opportunities that boycotts present to potential new entrants.