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Source: Department of Sociology, Johns Hopkins University

Resulting in 2 citations.

1.	Hao, Lingxin
1.	Nested Heterogeneity and Difference in Differences Working Paper, Department of Sociology, Johns Hopkins University, August 1999. Also: http://www.soc.jhu.edu/people/hao/nest1all.pdf Cohort(s): Children of the NLSY79 Publisher: Department of Sociology, Johns Hopkins University Keyword(s): Armed Forces Qualifications Test (AFQT); Behavior Problems Index (BPI); Behavioral Problems; Heterogeneity; Home Observation for Measurement of Environment (HOME); Methods/Methodology; Parenting Skills/Styles Permission to reprint the abstract has not been received from the publisher. An earlier version was presented at the ASA Methodology Section, Winter Meetings, Durham, NC, March 1999. Many social phenomena are observed repeatedly for an individual or unit nested within a contextual level. The problem of modeling unobserved unit heterogeneity, which is nested in unobserved context heterogeneity, is referred to as a nested heterogeneity problem. To address this problem, this article develops a systematic method, where the problem is formally specified and issues such as correct model specifications, appropriate estimators, tests and recovery of each level of heterogeneity, and assessment of the relative importance of each level of hetergeneity are discussed. We proceed from a simple case where there exists no context-specific and unit-specific observed variables to a more inclusive case with both context-specific and unit-specific variables. We then extend the nested heterogeneity model to allow the context-specific variables to vary across time, where we develop a new estimator using the difference-in-differences method. We illustrate our methods using an empirical example of child and family heterogeneity in a study of children's behavior problems.
	Bibliography Citation Hao, Lingxin. "Nested Heterogeneity and Difference in Differences." Working Paper, Department of Sociology, Johns Hopkins University, August 1999.

2.	Hao, Lingxin Hotz, V. Joseph Jin, Ginger Zhe
2.	Games Parents and Adolescents Play: Risky Behaviors, Parental Reputation, and Strategic Transfers Working Paper, Department of Sociology, Johns Hopkins University, January 2005 Cohort(s): NLSY79 Publisher: Department of Sociology, Johns Hopkins University Keyword(s): Adolescent Fertility; Childbearing, Adolescent; Family Resources; School Dropouts; Siblings; Transfers, Family; Transfers, Parental Permission to reprint the abstract has not been received from the publisher. This paper examines reputation formation in intra-familial interactions. We consider parental reputation in a repeated two-stage game in which adolescents decide whether to give a teen birth or drop out of high school, and given adolescent decisions, the parent decides whether to house and support his children beyond age 18. Drawing on the work of Milgrom and Roberts (1982) and Kreps and Wilson (1982), we show that the parent has, under certain conditions, the incentive to penalize older children for their teenage risky behaviors in order to dissuade the younger children from the same risky behaviors. The model generates two empirical implications: the likelihood of teen risky behaviors and parental transfers to a child who engaged in teen risky behaviors will decrease with the number of remaining children at risk. We test these two implications, using data from the National Longitudinal Survey of Youth, 1979 Cohort (NLSY79). Exploiting the availability of repeated observations on individual respondents and of observations on multiple siblings, we find evidence in favor of both predictions.
	Bibliography Citation Hao, Lingxin, V. Joseph Hotz and Ginger Zhe Jin. "Games Parents and Adolescents Play: Risky Behaviors, Parental Reputation, and Strategic Transfers." Working Paper, Department of Sociology, Johns Hopkins University, January 2005.

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