Digital Commons Network^™

On The Political Substitutability Between Tariffs And Subsidies, Daniel Brou, Michele Ruta

Daniel Brou

This paper provides a simple model that highlights the political substitutability between import tariffs and production subsidies.1 When taxes are distortionary, political pressures by domestic interest groups representing the import competing sector induce the government to set inefficiently high tariffs and subsidies. If the government commits the tariff to a lower level - for instance by signing a binding commitment in a trade agreement - interest groups demand (and in the political equilibrium obtain) a larger production subsidy. This political substitutability between tariffs and subsidies is shown to reduce social welfare.

Necessary Conditions For Valid Benefit Transfers, Kevin Boyle, Nicolai Kuminoff, Christopher Parmeter, Jaren Pope

Christopher F. Parmeter

No abstract provided.

Inflation Dynamics: A Structural Estimation, Safdar Khan

Safdar Khan

No abstract provided.

The Apollo Fallacy And Its Effect On U.S. Energy Policy, Peter Grossman

Peter Z. Grossman

US Policy makers have made continual references to the Apollo Program as a model for development of alternative energy technologies. This model, however, is inappropriate for energy policy, and its use is termed the Apollo fallacy. The goal of the Apollo Program was the demonstration of engineering prowess while any alternative energy technology must succeed in the marketplace. Several Apollo-like energy programs have been tried and all have failed at high cost. It is argued that the use of Apollo has political benefits but that it is detrimental to the adoption of potentially effective energy policies. Note: Link is to …

Platform Competition With ‘Must-Have’ Components, Christiaan Hogendorn

Christiaan Hogendorn

No abstract provided.

A Small Open Economy Dsge Model For Pakistan, Safdar Khan

Safdar Khan

No abstract provided.

Trading Volume, Volatility, And The Serial Correlation Of Stock Market Returns, Leon Zolotoy, Bertrand Melenberg

Leon Zolotoy

In this paper we study the dynamic relationship between trading volume, volatility, and stock returns at international stock markets. We test a number of theoretical models which suggest that the trading volume and volatility can predict future behavior of stock returns. Our analysis uses both semi-nonparametric (Flexible Fourier Form) and parametric techniques. Our findings suggest that the main factor driving the magnitude of the return reversals is stock market volatility and not trading volume. First, apart from a direct effect on expected returns with mixed signs, we find no evidence of the trading volume affecting the serial correlation of stock …

Should Genes Be Patented - Introduction To The Ipria&Cite Public Event, Kwanghui Lim

Kwanghui Lim

No abstract provided.

Recruiting Minorities: What Explains Recent Trends In The Army And Navy?, Paul Heaton

Paul Heaton

Click to Read Online Since 2000, black representation among high-quality recruits in the Army has decreased, while Hispanic representation has increased; in the Navy, black representation has remained stable and Hispanic representation has increased. (Recruits are considered to be high-quality if they have graduated high school and score above average on the Armed Forces Qualification Test.) The decline in black enlistments is of concern both because black youth have traditionally been a key market segment for the Army and because Congress has expressed concern about the degree to which military enlistments proportionately reflect the population that the U.S. military defends. …

Child Disadvantage And Obesity: Is Nurture Trumping Nature?, Patricia Anderson, Kristin Butcher, Diane Schanzenbach

Diane Whitmore Schanzenbach

No abstract provided.

Spillovers Across Labor Markets In Search Models: Effects Of "Animal Spirits" And Offshoring, Devashish Mitra, Priya Ranjan

Priya Ranjan

We study the effects of additional distortions or shocks, such as a fair-wage constraint and/or the possibility of offshoring unskilled jobs, in a two-factor general equilibrium model of unemployment with search frictions. While the direct point of impact of such shocks is on unskilled workers, we also find interesting indirect spillover effects on skilled workers. A binding fair-wage constraint increases the unskilled unemployment rate and can at the same time lead to a higher unemployment rate and a lower wage for skilled workers, as compared to an equilibrium where fairness considerations are absent or non-binding. Introducing offshoring of unskilled jobs …

Exchange Rate Of Japan, Singapore And Hong Kong: A Time Series Analysis, Safdar Khan

Safdar Khan

No abstract provided.

Zoning For Health? The Year-Old Ban On New Fast-Food Restaurants In South La, Roland Sturm, Deborah Cohen

Roland Sturm

No abstract provided.

Financial Reforms And Efficiency Of Banking Sector Of Pakistan: A Survey Of Empirical Literature, Safdar Khan

Safdar Khan

No abstract provided.

Entrepreneurship Theory And The Poverty Of Historicism., Patrick Murphy

Patrick J. Murphy

Purpose – The author applies methodological concepts from The Poverty of Historicism to contemporary research in the area of entrepreneurship. This paper aims to explain why current theoretic models do not adequately explain entrepreneurial phenomena and to present outlines of a

distinct entrepreneurship research paradigm.

Design/methodology/approach – The author examines the essay from the perspective of a historian and then summarizes its concepts. Next, the author reviews the current state of entrepreneurship research and theory and applies concepts from the essay to its contemporary

challenges. Finally, the author presents five implications.

Findings – The five implications are that entrepreneurship research …

Misselling Through Agents, Marco Ottaviani, Roman Inderst

Marco Ottaviani

How to incentivize sales agents to sell, but not to “missell” to customers for whom the product is unsuitable? Analysis of the internal organization of the sales process, the commitment effect of transparency of commissions, and the role for self regulation and policy intervention.

Affordability And Obesity: Issues In The Multifunctionality Of Agricultural/Food Systems, Roland Sturm

Roland Sturm

No abstract provided.

Is Marketing Research The Cure For Norton Healthcare Kosair Children’S Hospital’S Ailments?, Safdar Khan

Safdar Khan

No abstract provided.

Dispersion Of Beliefs, Stock Prices And The Earnings Surprise Measures-A Generalized Approach, Leon Zolotoy

Leon Zolotoy

In this paper we address the issue of modelling the relation between the stock prices and accounting earnings in the presence of potential divergence of opinions regarding the earnings data generating process. In our model the market's earnings expectation is defined as the weighted average of both the time-series and analysts' forecasts, with weights being estimated directly from stock returns. No assumptions are made on functional form of the earnings surprise-stock returns relation, which makes our model flexible enough to incorporate a variety of models discussed in the previous literature. The model is estimated semiparametrically following Hardle et al. [Annals …

Technology & Uncertainty: The Shaping Effect On Copyright Law, Ben Depoorter

Ben Depoorter

This Article examines the symbiotic relationship between copyright law and technology. I describe how an environment characterized by rapid technological change creates two conditions that determine the direction and evolution of copyright law: legal delay and legal uncertainty. I explain how uncertainty over the application of existing copyright law to newly emerging technology catalyzes the actions of copyright owners and users. I argue that uncertainty and delay (1) have an enabling effect on anticopyright sentiments, (2) lead to a greater reliance on self-help efforts by content providers and users, and (3) induce legislative involvement in copyright law. In the final …

Existence Of Equilibrium In General Bertrand Games, José Fajardo, Guilherme Carmona

José Fajardo

No abstract provided.

The Impact Of Employment Quotas On The Economic Lives Of Disadvantaged Minorities In India, Nishith Prakash

Nishith Prakash

Using nationally representative household data from India, I estimate the effects of the world’s biggest and arguably most aggressive employment-based affirmative action policy for minorities on their labor market and children’s outcomes. In India, public sector jobs are set aside for scheduled castes (SCs) and scheduled tribes (STs), the two principal disadvantaged minority groups in India. To identify the causal effect of these job reservations, I take advantage of the fact that the share of jobs set aside is based on a strict policy rule stipulated by the Indian Constitution. The policy rule requires that the shares of public sector …

Do Means-Tested School Lunch Subsidies Change Children's Weekly Consumption Patterns?, Nishith Prakash, Larry Howard

Nishith Prakash

This article examines whether participation in the means-tested component of the National School Lunch Program changes the dietary patterns of children. Endogeneity bias arising from the incentive effects of lunch subsidies on program take-up is addressed using an identification trategy that relies on variation across school districts in the financing of and demand for school meal programs. Analyzing data on 5th grade public elementary school children observed in spring 2004, we find significant changes in the weekly consumption patterns of subsidized children relative to children that do not receive a means-test subsidy. Our estimates indicate increases in consumption for items …

Bee Pollination In Agricultural Ecosystems, Tammy Horn

Tammy Horn

In her endorsement of this landmark study of pollinators’ role in Industrial Agriculture and wildlife management, May Berenbaum writes that this book should be ‘‘required reading for practitioners and policymakers alike.’’ Although at times, the book’s structure feels like a forced march, I concur with Berenbaum for the most part. It is a powerful expression from fifteen of the more important voices shaping discussions ranging from genetically-modified organisms to alfalfaleafcutting bees to biocontrols. To have them collected in one collection is a testament to pollination management being taken seriously as a profession. The writers included in this book are impressive …

Controlling Us Healthcare Spending: Separating Promising From Unpromising Approaches, Peter Hussey, Christine Eibner, M. Ridgely, Elizabeth Mcglynn

Christine Eibner

No abstract provided.

Graduate Labor Economics I (Econ 7420/Ilrle 7450), Matthew Freedman

Matthew Freedman

This course is one-fourth of a two-semester sequence in graduate labor economics. This segment will focus on theories of human capital and labor supply. In addition to covering the basic theory behind these subjects, we will discuss the major empirical challenges surrounding each topic. We will go on to develop and apply different econometric approaches to dealing with such challenges, including difference-in-differences, instrumental variable estimation, and regression discontinuity.

See also the Labor Economics Seminar Series.

Course materials are posted on Blackboard.

Taught Fall 2008 and Fall 2009.

Ecosystem Service Trade-Offs, Edward Barbier

Edward B Barbier

No abstract provided.

Do Citizens Know Whether Their State Has Decriminalized Marijuana? Assessing The Perceptual Component Of Deterrence Theory, Robert Maccoun, Rosalie Pacula, Jamie Chriqui, Katherine Harris, Peter Reuter

Rosalie Liccardo Pacula

Deterrence theory proposes that legal compliance is influenced by the anticipated risk of legal sanctions. This implies that changes in law will produce corresponding changes in behavior, but the marijuana decriminalization literature finds only fragmentary support for this prediction. But few studies have directly assessed the accuracy of citizens’ perceptions of legal sanctions. The heterogeneity in state statutory penalties for marijuana possession across the United States provides an opportunity to examine this issue. Using national survey data, we find that the percentages who believe they could be jailed for marijuana possession are quite similar in both states that have removed …

Racing To Success By Identifying Key Performance Drivers, Kathy Paulson Gjerde, S. Hughes

Kathy A. Paulson Gjerde

The Human Resource Economics Of Vernon Briggs

Vernon M Briggs Jr

This essay examines the conception of human resource economics (HRE) that shaped the career of Vernon M. Briggs Jr. It probes the history of economic thought to describe the intellectual roots of HRE. It explores how HRE emerged to address the issues of economic growth, stabilization, and efficiency, as well as how it contributes to the public discourse on matters of social equity, economic opportunity, and government regulation. It explains the clash between human capital theory and HRE. And it outlines Briggs’s five dimensions of human resource development (HRD), which is his term for HRE that manifests itself in public …