Digital Commons Network^™

Pegxit Pressure: Evidence From The Classical Gold Standard, Kris James Mitchener, Gonçalo Pina

Economics

We develop a simple model that highlights the costs and benefits of fixed exchange rates as they relate to trade, and show that negative export-price shocks reduce fiscal revenue and increase the likelihood of an expected currency devaluation. Using a new high-frequency data set on commodity-price movements from the classical gold standard era, we then show that the model’s main prediction holds even for the canonical example of hard pegs. We identify a negative causal relationship between export-price shocks and currency-risk premia in emerging market economies, indicating that negative export-price shocks increased the probability that countries abandoned their pegs.

Pricing Competition: A New Laboratory Measure Of Gender Differences In The Willingness To Compete, John Ifcher, Homa Zarghamee

Economics

Experiments have demonstrated that men are more willing to compete than women. We develop a new instrument to “price” willingness to compete. We find that men value a $2.00 winner-take-all payment significantly more (about $0.28 more) than women; and that women require a premium (about 40 %) to compete. Our new instrument is more sensitive than the traditional binary-choice instrument, and thus, enables us to identify relationships that are not identifiable using the traditional binary-choice instrument. We find that subjects who are the most willing to compete have high ability, higher GPA’s (men), and take more STEM courses (women).

The Increasing Happiness Of Us Parents, Chris M. Herbst, John Ifcher

Economics

Previous research suggests that parents may be less happy than non-parents. We critically assess the literature and examine parents’ and non-parents’ happiness-trends using the General Social Survey (N = 42,298) and DDB Lifestyle Survey (N = 75,237). We find that parents are becoming happier over time relative to non-parents, that non-parents’ happiness is declining absolutely, and that estimates of the parental happiness gap are sensitive to the time-period analyzed. These results are consistent across two datasets, most subgroups, and various specifications. Finally, we present evidence that suggests children appear to protect parents against social and economic forces that may be …

The Earned Income Tax Credit, Mental Health, And Happiness, Casey Boyd-Swan, Chris M. Herbst, John Ifcher, Homa Zarghamee

Economics

We study the impact of the earned income tax credit (EITC) on various measures of subjective well-being (SWB) using the National Survey of Families and Households (NSFH) to estimate intent-to-treat effects of the EITC expansion embedded in the 1990 Omnibus Budget Reconciliation Act. We use a difference-in-differences framework that compares the pre-and post-expansion SWB-changes of women likely eligible for the EITC (low-skilled mothers of working age) to the SWB-changes of a comparison group that is likely ineligible (low-skilled, childless women of working age). Our results suggest that the EITC expansion generated sizeable SWB-improvements in the three major categories of SWB …

Effectiveness Of Beer Keg Registration Law On Decreasing Underage Binge Drinking, Zana Beck

Economics

Since the prohibition act of 1919, alcohol has always had high economic costs and benefits. While it increases revenues for the Federal Government through taxation and company profits, there are, unfortunately, several costs that impact society. These costs, also known as negative externalities, include a variety of actions like alcohol related traffic accidents, increased crime, and excessive binge drinking. A negative externality is described as “a cost that is suffered by a third party as a result of an economic transaction,” in which the third party is indirectly affected (MaClean, 2013). In the case of alcohol, society is the third …

Do Gender-Variant Preferences For Competition Persist In The Absence Of Performance?, John Ifcher, Homa Zarghamee

Economics

The well-established gender gap in preferences for competition has been attributed to gender-variant feelings about performing in competitive environments. Using a novel task with agency, in which subjects experience competition but cannot perform, we find evidence that performing may be sufficient but not necessary to generate gender-variant preferences for competition. This suggests that the gender-gap cannot be eliminated by correcting beliefs alone; that eliminating performance—for example, routinizing tasks—may not eliminate the gender gap; and that there may be heretofore unidentified determinants of preferences for competition—for example, men may prefer payment schemes that are based on social comparison. (JEL J16, C91, …

Do Immigrants Affect The Profiles Of Us Exporters?, Roger White, Bedassa Tadesse

Economics

We highlight that an increase in the stock of immigrants corresponds with greater numbers of U.S. firms that engage in exporting to foreign markets. Our results are obtained from the estimation of a multi-level mixed effects model. Overall, the effect of immigrants is relatively larger among small- and medium-sized enterprises and is smaller among large-sized enterprises. There are, however, considerable differences, both in the magnitude and in nature of the observed effects of immigrants on manufactured and non-manufactured goods exporters of comparable size categories. Similarly, heterogeneity is found in the effects of immigrants on the numbers of small-, medium-, and …

Inequality Of Happiness: Evidence Of The Compression Of The Subjective-Well-Being Distribution With Economic Growth, John Ifcher, Homa Zarghamee

Economics

The use of Subjective Wellbeing (SWB) measures in economics research has grown markedly (Kahneman and Krueger 2006). This has come about for at least two reasons. First, the measures have been systematically validated as reliable for examining a range of questions. Second, economists have long relied on income as a proxy for wellbeing. However, research shows that there are potentially large slippages between economic indicators and wellbeing (Diener and Seligman 2004). Thus, SWB measures have become an important alternative proxy for wellbeing. Indeed, SWB measures have also caught the attention of policy makers. The OECD launched the Better Life Index …

Wheels Of Fortune: The Economic Impacts Of Wheelchair Provision In Ethiopia, Justin L. Grider, Bruce Wydick

Economics

Although approximately 1 billion people in the world live with physical disabilities, there is a lack of rigorous research on the economic impacts of providing assistive devices for persons with disabilities. This study involves 261 people with disabilities in Addis Ababa, Ethiopia, where 121 had received wheelchair donations through nonprofit organisations. Using covariate matching (CVM), seemingly unrelated regressions (SUR) and a series of robustness checks for endogeneity, it is found that those given access to a wheelchair devoted 1.75 more hours per day to work, 1.40 fewer hours per day to street begging and realised a 77.5 per cent increase …

The Impact Of Oil Sector On The Global Competitiveness Of Gcc Countries: Panel Data Approach, Anas Alqudah, Ahmed Badawi, Mostafa Aboelsoud

Economics

This study explores the impact of oil sector on the global competitiveness of the GCC states in a panel data framework for the period from 2006 to 2014. The focus is placed on how the non-traditional factors; oil rents, fuel exports as a percentage of merchandise exports, oil prices, and mining sector production impact on the global competitiveness of the GCC nations.

The study uses panel data techniques to measure the effect of the oil sector’s impact on of global competitiveness of the GCC countries. The results of the regression show that the relation between rent and GCI found to …

Competitive Mothers: Comparing Competitiveness In Spheres That Matter, Alessandra Cassar, F Wordofa, Y J. Zhang

Economics

Recent advances have highlighted the evolutionary significance of female competition, with the sexes pursuing different competitive strategies and females reserving their most intense competitive behaviors for the benefit of offspring (1-3). Influential economic experiments using cash incentives, however, have found evidence suggesting that women have a lower desire to compete than men (4-7). We hypothesize that the estimated gender differences critically depend on how we elicit them, especially on the incentives used. We test this hypothesis through an experiment with adults in China (n=358). Data show that, once the incentives are switched from monetary to childbenefitting, gender differences disappear. This …

A Culture Shaped By Immigrants: Examining The Consequences Of U.S. Immigration Policy, Roger White, Shane Francis

Economics

We examine U.S. immigration history both by recounting the related legislative history and by examining data on immigrant inflows and inflow shares during the period from 1820 through 2013. A descriptive analysis of the cultural differences between the U.S. and several cohorts of countries suggests that U.S. culture has been shaped by the pattern of immigrant arrivals. Broadly stated, American culture has evolved to be similar to those of European societies (predominantly, countries in Northern and Western Europe) and to largely be dissimilar to the cultures of other regions. Following the enactment of the Hart-Celler Act in 1968, the primary …

State Promotion Of Local Public Goods: The Case Of Public Libraries, 1880-1929, Michael J. Kevane, William A. Sundstrom

Economics

The public library movement of the late nineteenth and early twentieth centuries led to a significant expansion of library services across the United States. We study the impact of state-level institutional development on the creation of local public goods. State library commissions were modestly funded state entities charged with helping localities establish libraries. State library associations were voluntary organizations with a similar mission, having as members the librarians of existing public libraries. Library-enabling legislation clarified the legality and taxation possibilities for local government entities such as towns, municipalities and counties to support libraries. Employing panel data drawn from a series …

Public Libraries And Political Participation, 1870-1940, Michael J. Kevane, William A. Sundstrom

Economics

The public library movement of the late 19th and early 20th centuries fostered a rapid increase in the number and quality of public libraries in cities and towns across the United States. One important argument for libraries was that they would enhance American democracy by promoting virtues of citizenship and enabling access to information. This paper examines how voter turnout was affected, in the short-term, by the establishment of public libraries, using a county-by-election year panel. Our empirical strategy exploits the founding dates of public libraries as discrete events that should have influenced subsequent voting behavior. Over the wide range …

Reading Fiction And Economic Preferences Of Rural Youth In Burkina Faso, Michael J. Kevane

Economics

This paper presents results from a reading program for youth living in villages in south-western Burkina Faso. Standard experimental games were used to measure the effects of increased reading of fiction on several attitudes and preferences important for economic development. After six months of access and encouragement to read appropriate young adult fiction, there were few differences in any of four measured outcomes (trust, contribution to public goods, risk, and patience) between those participating in the reading program and the control group. Since the rise of mass-distributed novels in the 1800s, many have hypothesized that fiction would have significant effects …

Altruism, Alexander J. Field

Economics

Altruism is reflected in actions by one individual that benefit another, even when there is no expectation of reward. Altruism is often equated with selflessness and contrasted with selfishness, or alternatively, altruism is seen as other-regarding as opposed to self-regarding behavior. The latter usage is sometimes preferred because of difficulties in classifying behavior for which the individual acting altruistically receives a "warm glow" from helping others. The question raised in this instance is whether such an individual is actually selfish and, if so, whether there is any behavior that, after the fact, could not be interpreted as selfish.

The need …