Christian Raschke

Highway improvement project selection by the joint consideration of cost-benefit and risk criteria

Since highway improvement project selection requires screening thousands of road segments with respect to crashes for further analysis and final project selection, we provide a two-step project selection methodology and describe an application case to demonstrate its advantages. In the first step of the proposed methodology, we will use odds against observing a given crash count, injury count, run-off road count and so on as measures of risk and a multi-criteria pre-selection technique with the objective to decrease the number of prospective improvement locations. In the second step, the final project selection is accomplished based on a composite efficiency measure of estimated cost, benefit and hazard assessment (odds) under budget constraints. To demonstrate the two-step methodology, we will analyze 4 years of accident data at 23 000 locations where the final projects are selected out of several hundred of potential locations.

Unexpected windfalls, education, and mental health: evidence from lottery winners in Germany

ABSTRACT This paper investigates the causal impact of large unexpected windfalls on individual mental health, physical health, as well as health behaviors. I use a large individual-level panel data set of lottery winners from Germany between the years 2000 and 2011 and observe lottery winners before and after winning a large lottery prize. Mental health declines immediately after winning a large lottery prize for individuals with low education and low levels of financial literacy. While these individuals report being happier after winning the lottery, evidence from commonly used SF-12 measures of mental health indicates that winners with low education experience increased role limitations due to emotional problems, are more anxious, and have less energy after their win. The impact on various measures of mental health is highly robust, statistically significant, economically significant, and persists for up to two years after the win. Unexpected windfalls have no impact on the mental health of individuals with high education or high financial literacy. Winning the lottery has no impact on individuals’ health behaviors such as smoking or alcohol consumption, and it has no impact on doctor visits, hospital stays, or illness-related work absences regardless of education level.

The Impact of the German Child Benefit on Household Expenditures and Consumption

Abstract The German Child Benefit (‘Kindergeld’) is paid to legal guardians of children as a cash benefit. The benefit does not depend on household income or other household characteristics. I use exogenous variations in the amount of child benefit received by households in the German Socio-Economic Panel to estimate the impact of a given change in the child benefit on food expenditures of households, the probability of owning a home, rent per square meter, measures of the size of the home, as well as parents’ smoking behavior and parents’ alcohol consumption. Households primarily increase per capita food expenditures in response to increases in child benefit, and they also improve housing conditions. The effect of child benefit on per capita food expenditures is larger for low-income households compared to high-income households. I do not find a significant effect of child benefit on parents’ smoking or drinking.