The response of aggregate labor supply to various changes in the economic environment is central to many economic issues, especially the optimal design of tax policies. This paper surveys recent work that uses structural models and micro data to evaluate the size of this response. Whereas the earlier literature on this issue often concluded that aggregate labor supply elasticities were small, recent work has identified three key reasons that the aggregate elasticity may be quite large. First, earlier estimates abstracted from several key features, including human capital accumulation, leading to estimates that are dramatically negatively biased. Second, failure to understand that aggregate labor supply adjustments can occur along both the hours per worker and employment margins has led economists to misinterpret the implications of previous estimates for aggregate labor supply. Third, structural estimation of responses along the extensive (i.e., employment) margin are typically quite large.
The current threat of global terrorism has sparked a renewed interest in the development of more effective methods for the detection of deception. In the United States, the American Psychological Association (APA)-spurred by torture allegations involving terrorist suspects-established guidelines for professional practice regarding investigative methods that could be conceptualized as coercive. As affirmed by APA, psychological research can play an active and ethical role in the development of standardized methods for the detection of deception. Instead of focusing on external sources of terrorism, this conceptual paper argues for programmatic research on insider threats, specifically risks to national security posed by government and other employees. In briefly reviewing deception research, recent investigations of cognitive loads and deceptions hold particular promise, especially studies that systematically manipulate levels of cognitive load. These methods can be extended to collateral sources, further minimizing ethical concerns while broadening the scope of deception investigation.
The ability of mental health experts to consult on insanity cases is highly dependent on their accurate understanding of the current Canadian standard. The study surveyed experienced forensic psychiatrists and psychologists and found the majority (88%) had erroneous beliefs regarding the insanity standard. Results of a discriminant analysis suggest that experience with insanity evaluations and courtroom testimony may improve experts' understanding. Implications of these results are discussed with respect to professional training and public policy.
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