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How The No Child Left Behind Act Punishes Schools With Disadvantaged Students, John Yinger Dec 2006

How The No Child Left Behind Act Punishes Schools With Disadvantaged Students, John Yinger

Center for Policy Research

It’s Elementary is a series of essays on topics in education and education policy. The main focus is on education finance in New York State, but general research findings in education and education policy issues in several other states are also discussed. John Yinger, Professor of Economics and Public Administration at the Maxwell School, Syracuse University is the author of most of these essays, although a few are written by or co-authored with other scholars.


How The No Child Left Behind Act Undermines Education Standards, John Yinger Nov 2006

How The No Child Left Behind Act Undermines Education Standards, John Yinger

Center for Policy Research

It’s Elementary is a series of essays on topics in education and education policy. The main focus is on education finance in New York State, but general research findings in education and education policy issues in several other states are also discussed. John Yinger, Professor of Economics and Public Administration at the Maxwell School, Syracuse University is the author of most of these essays, although a few are written by or co-authored with other scholars.


Money Matters In Education, John Yinger Oct 2006

Money Matters In Education, John Yinger

Center for Policy Research

It’s Elementary is a series of essays on topics in education and education policy. The main focus is on education finance in New York State, but general research findings in education and education policy issues in several other states are also discussed. John Yinger, Professor of Economics and Public Administration at the Maxwell School, Syracuse University is the author of most of these essays, although a few are written by or co-authored with other scholars.


Labor Supply With Social Interactions: Econometric Estimates And Their Tax Policy Implications, Andrew Grodner, Thomas J. Kniesner Sep 2006

Labor Supply With Social Interactions: Econometric Estimates And Their Tax Policy Implications, Andrew Grodner, Thomas J. Kniesner

Center for Policy Research

Our research fleshes out econometric details of examining possible social interactions in labor supply. We look for a response of a person's hours worked to hours worked in the labor market reference group, which includes those with similar age, family structure, and location. We identify endogenous spillovers by instrumenting average hours worked in the reference group with hours worked in neighboring reference groups. Estimates of the canonical labor supply model indicate positive economically important spillovers for adult men. The estimated total wage elasticity of labor supply is 0.22, where 0.08 is the exogenous wage change effect and 0.14 is the …


Education Policy Should Not Be Based On Programs That Cannot Be Replicated, John Yinger Sep 2006

Education Policy Should Not Be Based On Programs That Cannot Be Replicated, John Yinger

Center for Policy Research

It’s Elementary is a series of essays on topics in education and education policy. The main focus is on education finance in New York State, but general research findings in education and education policy issues in several other states are also discussed. John Yinger, Professor of Economics and Public Administration at the Maxwell School, Syracuse University is the author of most of these essays, although a few are written by or co-authored with other scholars.


Small Education Experiments Do Not Shed Much Light On Large Education Reforms, John Yinger Aug 2006

Small Education Experiments Do Not Shed Much Light On Large Education Reforms, John Yinger

Center for Policy Research

It’s Elementary is a series of essays on topics in education and education policy. The main focus is on education finance in New York State, but general research findings in education and education policy issues in several other states are also discussed. John Yinger, Professor of Economics and Public Administration at the Maxwell School, Syracuse University is the author of most of these essays, although a few are written by or co-authored with other scholars.


Rejecting The 65-Percent Solution, John Yinger Jul 2006

Rejecting The 65-Percent Solution, John Yinger

Center for Policy Research

It’s Elementary is a series of essays on topics in education and education policy. The main focus is on education finance in New York State, but general research findings in education and education policy issues in several other states are also discussed. John Yinger, Professor of Economics and Public Administration at the Maxwell School, Syracuse University is the author of most of these essays, although a few are written by or co-authored with other scholars.


Making Things Worse, John Yinger Jun 2006

Making Things Worse, John Yinger

Center for Policy Research

It’s Elementary is a series of essays on topics in education and education policy. The main focus is on education finance in New York State, but general research findings in education and education policy issues in several other states are also discussed. John Yinger, Professor of Economics and Public Administration at the Maxwell School, Syracuse University is the author of most of these essays, although a few are written by or co-authored with other scholars.


Education Finance Reform And Property Tax Relief, John Yinger May 2006

Education Finance Reform And Property Tax Relief, John Yinger

Center for Policy Research

It’s Elementary is a series of essays on topics in education and education policy. The main focus is on education finance in New York State, but general research findings in education and education policy issues in several other states are also discussed. John Yinger, Professor of Economics and Public Administration at the Maxwell School, Syracuse University is the author of most of these essays, although a few are written by or co-authored with other scholars.


County Characteristics And Poverty Spell Length, Andrew Grodner, John A. Bishop, Thomas J. Kniesner May 2006

County Characteristics And Poverty Spell Length, Andrew Grodner, John A. Bishop, Thomas J. Kniesner

Center for Policy Research

*In this paper we ask, how do individual and community factors influence the average length of poverty spells? We measure local economic conditions by the county unemployment rate and neighborhood spillover effects by the racial makeup and poverty rate of the county. We find that moving an individual from one standard deviation below the mean poverty rate to one standard deviation above the mean poverty rate (from the inner city to the suburbs) lowers the average poverty spell by 20 to 25 percent. This effect is equal in magnitude to the effect of changing the household head from female to …


Eliminating Star’S Unintended Consequences, John Yinger Mar 2006

Eliminating Star’S Unintended Consequences, John Yinger

Center for Policy Research

It’s Elementary is a series of essays on topics in education and education policy. The main focus is on education finance in New York State, but general research findings in education and education policy issues in several other states are also discussed. John Yinger, Professor of Economics and Public Administration at the Maxwell School, Syracuse University is the author of most of these essays, although a few are written by or co-authored with other scholars.


School Tax Credits, John Yinger Feb 2006

School Tax Credits, John Yinger

Center for Policy Research

It’s Elementary is a series of essays on topics in education and education policy. The main focus is on education finance in New York State, but general research findings in education and education policy issues in several other states are also discussed. John Yinger, Professor of Economics and Public Administration at the Maxwell School, Syracuse University is the author of most of these essays, although a few are written by or co-authored with other scholars.


Pinning Down The Value Of Statistical Life, Thomas J. Kniesner, W. Kip Viscusi, Christopher Woock, James P. Ziliak Jan 2006

Pinning Down The Value Of Statistical Life, Thomas J. Kniesner, W. Kip Viscusi, Christopher Woock, James P. Ziliak

Center for Policy Research

Our research addresses fundamental long-standing concerns in the compensating wage differentials literature and its public policy implications: the econometric properties of estimates of the value of statistical life (VSL) and the wide range of such estimates from about $0.5 million to about $21 million. We address most of the prominent econometric issues by applying panel data, a new and more accurate fatality risk measure, and systematic selection of panel estimator in our research. Controlling for measurement error, endogeneity, individual heterogeneity, and state dependence yields both a reasonable average level and narrow range for the estimated value of a statistical life …


Testing For Cointegrating Rank Via Model Selection: Evidence From 165 Data Sets, Badi H. Baltagi, Zijun Wang Jan 2006

Testing For Cointegrating Rank Via Model Selection: Evidence From 165 Data Sets, Badi H. Baltagi, Zijun Wang

Center for Policy Research

The model selection approach has been proposed as an alternative to the popular tests for cointegration such as the residual-based ADF test and the system-based trace test. Using information criteria, we conduct cointegration tests on 165 data sets used in published studies. The empirical results demonstrate the usefulness of the model selection approach for applied researchers.


Rational Alcohol Addiction: Evidence From The Russian Longitudinal Monitoring Survey, Badi H. Baltagi, Ingo Geishecker Jan 2006

Rational Alcohol Addiction: Evidence From The Russian Longitudinal Monitoring Survey, Badi H. Baltagi, Ingo Geishecker

Center for Policy Research

Alcohol consumption in Russia is legendary and has been reported to be the third leading cause of death in the former Soviet Union after heart disease and cancer. Are Russian alcohol consumers rational addicts? This paper uses eight rounds of a nationally representative Russian survey spanning the period 1994-2003 to estimate a rational addiction (RA) model for alcohol consumption. This is done in a panel data setting as well as on a wave by wave basis. The profile of the Russian drinker finds a huge difference between males and females and the model is estimated by gender. We do not …


Stop Star Ii!, John Yinger Jan 2006

Stop Star Ii!, John Yinger

Center for Policy Research

It’s Elementary is a series of essays on topics in education and education policy. The main focus is on education finance in New York State, but general research findings in education and education policy issues in several other states are also discussed. John Yinger, Professor of Economics and Public Administration at the Maxwell School, Syracuse University is the author of most of these essays, although a few are written by or co-authored with other scholars.


Changing Economic Incentives In Long-Term Care, R. Tamara Konetzka Jan 2006

Changing Economic Incentives In Long-Term Care, R. Tamara Konetzka

Center for Policy Research

Just as managed care has changed utilization and incentives in other parts of health care, there is a whole set of incentives built around long-term care that really matter. For example, if nursing homes have a financial incentive to hospitalize people with certain health conditions, then in the long run they are not going to develop the programs and invest in the resources to treat those people in the facility. Instead they're going to use those resources to stay in business or to provide other types of care. And while we can assume that policymakers do not create regulations that …


Random Effects And Spatial Autocorrelations With Equal Weights, Badi H. Baltagi Jan 2006

Random Effects And Spatial Autocorrelations With Equal Weights, Badi H. Baltagi

Center for Policy Research

This note considers a panel data regression model with spatial autoregressive disturbances and random effects where the weight matrix is normalized and has equal elements. This is motivated by Kelejian et al. (2005), who argue that such a weighting matrix, having blocks of equal elements, might be considered when units are equally distant within certain neighborhoods but unrelated between neighborhoods. We derive a simple weighted least squares transformation that obtains GLS on this model as a simple OLS. For the special case of a spatial panel model with no random effects, we obtain two sufficient conditions where GLS on this …


Prediction In The Panel Data Model With Spatial Correlation: The Case Of Liquor, Badi H. Baltagi, Dong Li Jan 2006

Prediction In The Panel Data Model With Spatial Correlation: The Case Of Liquor, Badi H. Baltagi, Dong Li

Center for Policy Research

This paper considers the problem of prediction in a panel data regression model with spatial autocorrelation in the context of a simple demand equation for liquor. This is based on a panel of 43 states over the period 1965-1994. The spatial autocorrelation due to neighboring states and the individual heterogeneity across states is taken explicitly into account. We compare the performance of several predictors of the states demand for liquor for one year and five years ahead. The estimators whose predictions are compared include OLS, fixed effects ignoring spatial correlation, fixed effects with spatial correlation, random effects GLS estimator ignoring …


Estimating Heterogeneous Production In Fisheries, Kurt E. Schnier, Christopher M. Anderson, William Clinton Horrace Jan 2006

Estimating Heterogeneous Production In Fisheries, Kurt E. Schnier, Christopher M. Anderson, William Clinton Horrace

Center for Policy Research

Stochastic production frontier models are used extensively in the agricultural and resource economics literature to estimate production functions and technical efficiency, as well as to guide policy. Traditionally these models assume that each agent's production can be specified as a representative, homogeneous function. This paper proposes the synthesis of a latent class regression and an agricultural production frontier model to estimate technical efficiency while allowing for the possibility of production heterogeneity. We use this model to estimate a latent class production function and efficiency measures for vessels in the Northeast Atlantic herring fishery. Our results suggest that traditional measures of …


Inter-Industry Gender Wage Gaps By Knowledge Intensity: Discrimination And Technology In Korea, William C. Horrace, Beyza P. Ural, Jin Hwa Jung Jan 2006

Inter-Industry Gender Wage Gaps By Knowledge Intensity: Discrimination And Technology In Korea, William C. Horrace, Beyza P. Ural, Jin Hwa Jung

Center for Policy Research

A new gender wage gap decomposition methodology is introduced that does not suffer from the identification problem caused by unobserved non-discriminatory wage structure. The methodology is used to measure the relative size of Korean gender wage gaps from 1994 to 2000 across industries, differentiated by industrial knowledge intensity, where knowledge intensity is the extent to which industries produce or employ high-technology products. Korea represents an important case study, since it possesses one of the fast growing knowledge-intensive economies, among industrialized countries. Empirical results indicate that over this period, discrimination (the unexplained portion of the gender wage gaps) in Korea was …


Estimating Heterogeneous Capacity And Capacity Utilization In A Multi-Species Fishery, Ronald G. Felthoven, William C. Horrace, Kurt E. Schnier Jan 2006

Estimating Heterogeneous Capacity And Capacity Utilization In A Multi-Species Fishery, Ronald G. Felthoven, William C. Horrace, Kurt E. Schnier

Center for Policy Research

We use a stochastic production frontier model to investigate the presence of heterogeneous production and its impact on fleet capacity and capacity utilization in a multi-species fishery. Furthermore, we propose a new fleet capacity estimate that incorporates complete information on the stochastic differences between each vessel-specific technical efficiency distribution. Results indicate that ignoring heterogeneity in production technologies within a multi-species fishery, as well as the complete distribution of a vessel's technical efficiency score, may yield erroneous fleet-wide production profiles and estimates of capacity. Furthermore, our new estimate of capacity enables out-of-sample production predictions predicated on either homogeneity or heterogeneity modeling …


The Asymptotics For Panel Models With Common Shocks, Chihwa Kao, Lorenzo Trapani, Giovanni Urga Jan 2006

The Asymptotics For Panel Models With Common Shocks, Chihwa Kao, Lorenzo Trapani, Giovanni Urga

Center for Policy Research

This paper develops a novel asymptotic theory for panel models with common shocks. We assume that contemporaneous correlation can be generated by both the presence of common regressors among units and weak spatial dependence among the error terms. Several characteristics of the panel are considered: cross sectional and time series dimensions can either be fixed or large; factors can either be observable or unobservable; the factor model can describe either cointegration relationship or a spurious regression, and we also consider the stationary case. We derive the rate of convergence and the distribution limits for the ordinary least squares (OLS) estimates …


Identifying Technically Efficient Fishing Vessels: A Non-Empty, Minimal Subset Approach, Alfonso Flores-Lagunes, William Clinton Horrace, Kurt E. Schnier Jan 2006

Identifying Technically Efficient Fishing Vessels: A Non-Empty, Minimal Subset Approach, Alfonso Flores-Lagunes, William Clinton Horrace, Kurt E. Schnier

Center for Policy Research

There is a growing resource economics literature, concerning the estimation of the technical efficiency of fishing vessels utilizing the stochastic frontier model. In these models, vessel output is regressed on a linear function of vessel inputs and a random composed error. Using parametric assumptions on the regression residual, estimates of vessel technical efficiency are calculated as the mean of a truncated normal distribution and are often reported in a rank statistic as a measure of a captain's skill and used to estimate excess capacity within fisheries. We demonstrate analytically that these measures are potentially flawed, and extend the results of …


Panel Unit Root Tests And Spatial Dependence, Badi H. Baltagi, Georges Bresson, Alain Pirotte Jan 2006

Panel Unit Root Tests And Spatial Dependence, Badi H. Baltagi, Georges Bresson, Alain Pirotte

Center for Policy Research

This paper studies the performance of panel unit root tests when spatial effects are present that account for cross-section correlation. Monte Carlo simulations show that there can be considerable size distortions in panel unit root tests when the true specification exhibits spatial error correlation. These tests are applied to a panel data set on net real income from the 1000 largest French communes observed over the period 1985-1998.


Variations Among Regions And Hospitals In Managing Chronic Illness: How Much Care Is Enough?, John E. Wennberg Jan 2006

Variations Among Regions And Hospitals In Managing Chronic Illness: How Much Care Is Enough?, John E. Wennberg

Center for Policy Research

Classic epidemiology looks at what happens to people who live in a defined region over time. For example, birth rate, the number of births that occur among populations over a year, is a common statistics that we're all familiar with. Since the early 1990s we have conducted research at Dartmouth Medical School to convert that classic epidemiologic perspective into looking at what is happening in terms of the health care system itself. We ask how much care people are getting in different regions of the country. We want to know the patterns of that care. And we want to get …


How Will Declining Rates Of Marriage Reshape Eligibility For Social Security?, Madonna Harrington Meyer, Douglas A. Wolf, Christine L. Himes Jan 2006

How Will Declining Rates Of Marriage Reshape Eligibility For Social Security?, Madonna Harrington Meyer, Douglas A. Wolf, Christine L. Himes

Center for Policy Research

For most older people in the United States, Social Security is the major source of income: nine out of ten people age 65 or older receive benefits, which represent an average of 41 percent of their income. Largely as a result of Social Security, poverty rates for the elderly are at an all-time low, just 10 percent. But pockets of poverty persist: older unmarried persons, blacks, and Hispanics experience poverty rates in excess of 20 percent, and over 40 percent of all older single black women live in poverty. People quality for Social Security based either on their work record …