Privatizing Federal Credit Programs: Why Sallie Mae?

The federal government subsidizes lending to a number of borrowers—notably students, farmers, and homeowners. Government‐sponsored enterprises issue the securities that channel capital to many of these privileged borrowers. One of the largest of these enterprises, the Student Loan Marketing Association (Sallie Mae), is scheduled to be wholly privatized by September 30, 2008. What explains the privatization of this enterprise? To identify distinctive features of Sallie Mae that permitted or abetted privatization, we investigate the structure, related capital market innovations, and growth of three government‐sponsored enterprises. We conclude that a unique structural feature of Sallie Mae may explain the pace of privatization. The core asset of Sallie Mae, the student loan, is guaranteed and subsidized by the government. The case of Sallie Mae is an instructive yet poorly understood example of how the federal government can leverage private‐sector assets and incentives to achieve public policy missions.     

Gender Differences in Peer and Parental Influences: Body Image Disturbance,Self-Worth,and Psychological Functioning in Preadolescent Children

The connections between body image disturbance and psychological functioning have been well established in samples of older adolescent girls and young women. Little is known, however, about body image in younger children. In particular, little is known about possible gender differences in preadolescent children. The current study explored self-reported body image disturbance and psychological functioning in relation to peer and parental influences in 141 elementary school-aged girls and boys aged 8–11. Results suggest that girls are more concerned about dieting and are more preoccupied with their weight than are boys. Girls also reported a greater drive for thinness and a higher level of family history of eating concerns than did boys. Correlations suggested that girls' experiences of body image concerns (body dissatisfaction, bulimia, and drive for thinness) were related to a number of factors (such as family history of eating concerns, peer influences, teasing, depression, and global self-worth) whereas boys' experiences of body image concerns were related to fewer factors. On the basis of these findings, the assessment and treatment of body image concerns in preadolescent children (especially girls) are of great importance. Implications for intervention and prevention programs are discussed.     

On the (mis)measurement of legislator ideology and shirking

In this paper, we show that current statistical measures of legislator's shirking are implicitly based on the electoral concept of a unique majority rule equilibrium point in the policy space where elections are contested. We note that such equilibria do not exist generically and present statistical results showing that cross-sectional regressions where legislators' voting indices are predicted by district average demograhic and economic data are mis-specified. We also discuss a weaker equilibrium construct, the uncovered set, and present statistical evidence showing that differences in voting behavior between Senators from the same state are positively related to the heterogeneity of the electorate. We argue that current evidence alleged to show shirking by Senators is equally consistent with Senators who perfectly represent an idiosyncratic constituency that cannot be represented by district average data.     

The Triumph of the Non‐Idealist Intellectuals? An Investigation of Fiji's 1999 Election Results

This paper examines the results of Fiji's 1999 elections. It looks at the reasons for the overwhelming victory of the Fiji Labour Party and the extent of voting across Fiji's racial divide. The paper argues that there was, in fact, very small indigenous Fijian support for the FLP. The victory of the Fiji Labour Party instead owed its origins to (i) the collapse in the vote for the major rival Indo-Fijian party, the National Federation Party, (ii) the rise of the newly-formed Christian Democratic Alliance and the associated fall in the vote for the former Prime Minister Sitiveni Rabuka's SVT and (iii) the introduction of the preferential voting system. The paper concludes with a critical examination of the new voting system, arguing that proportional representation might be better suited for Fiji's specific political situation.     

Comprehending disclosure: must patients understand the risks they run?

It is well known that competent patients must be told about the risks of proposed medical procedures. This paper argues that recent professional guidelines and the law of negligence now take matters further by requiring doctors to take reasonable steps in an attempt to ensure that patients understand the risks they are being invited to run, so facilitating meaningful choices and the opportunity to give a properly informed consent.     

Parent–Adolescent Interaction and Optimal Experience

Thirty adolescents and their parents participated in a study of family interaction and optimal experience. Family members completed questionnaires, and discussed 7 topics for approximately 30 minutes while being videotaped. The audio portion of the tape was replayed after the discussion, with pauses after each topic segment to allow family members an opportunity to complete a modified form of the Experience Sampling Method. Family interaction was coded by independent observers, and compared to family members' experiential reports. Results showed that family communication complexity (i.e., interaction characterized jointly by integrating and differentiating responses) was associated with family members' reports of more optimal experience (i.e., feelings of interest and/or flow experience). Segment-to-segment analyses added that increases and descreases in family members' interest were associated with upward and downward changes in communication complexity, respectively. These findings, and the novel methodological approach, are discussed in terms of their relevance for studying adolescent development in the family.     

Book Reviews

Mac and Supermac

Alistair Horne, Macmillan, 1894–1956 : Volume I of the Official Biography. (London: Macmillan, 1988. £16.95. ISBN 0 333 27691)

Paul Kennedy, The Rise and Fall of the Great Powers: Economic Change and Military Conflict from 1500–2000 (London and Sydney, 1988)

Edward N. Luttwak, Strategy: The Logic of War and Peace (Harvard University Press, 1987)

Henry Butterfield Ryan, The Vision of Anglo‐America: The US‐UK Alliance and the Emerging Cold War, 1943–1946 (Cambridge University Press, 1987)