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Social and Behavioral Sciences Commons

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Economics

2001

Economics

California Polytechnic State University, San Luis Obispo

Articles 1 - 6 of 6

Full-Text Articles in Social and Behavioral Sciences

Purchasing Power Parity And Interest Parity In The Laboratory, Eric O'N. Fisher Nov 2001

Purchasing Power Parity And Interest Parity In The Laboratory, Eric O'N. Fisher

Economics

This paper analyses purchasing power parity and uncovered interest parity in the laboratory. It finds strong evidence that purchasing power parity, covered interest parity, and uncovered interest parity hold. Subjects are endowed with an intrinsically useless (green) currency that can be used to purchase another useless (red) currency. Green goods can be bought only with green currency, and red goods can be bought only with red currency. The foreign exchange markets are organized as call markets. In the treatment analysing purchasing power parity, the price of the red good varies. In a second treatment, the interest rate on red currency …


Do Crime-Related Expenditures Crowd Out Higher Education Expenditures?, Michael L. Marlow, Alden F. Shiers Sep 2001

Do Crime-Related Expenditures Crowd Out Higher Education Expenditures?, Michael L. Marlow, Alden F. Shiers

Economics

Fears about insufficient public education spending are often expressed in the area of higher education, whereby it is often argued that increases in expenditures on crime-related programs crowd out expenditures on higher education. This view suggests that higher education and crime-related programs directly compete for government expenditures so that what one program gains the other must lose as in a zero-sum game. A competing hypothesis is that higher crime-related spending leads to higher taxes or public debt issuance or to lower spending on programs other than higher education. We estimate a three-equation model of spending on crime-related programs, spending on …


Bureaucracy And Student Performance In Us Public Schools, Michael L. Marlow Aug 2001

Bureaucracy And Student Performance In Us Public Schools, Michael L. Marlow

Economics

This paper tests the hypothesis that monopoly power of school districts allows bureaucratic expansion and fosters poor academic performance in the public school system in California. Evidence indicates that monopoly power is positively associated with employment of administrators and teachers, and therefore supports the bureaucratic expansion hypothesis. While numbers of teachers do not influence performance measures, numbers of administrators are shown to positively affect performance - results that suggest that too many teachers, but too few administrators, are employed. While bureaucracy theory may explain the resource misallocation, other reasons might include rising public pressures on hiring teachers over administrators, spending …


Dollarization And The Mexican Labor Market, George J. Borjas, Eric O'N. Fisher May 2001

Dollarization And The Mexican Labor Market, George J. Borjas, Eric O'N. Fisher

Economics

This paper examines how dollarization affects the internal wage structure in the Mexican labor market, and alters the incentives of Mexican nationals to emigrate to the United States. A simple model shows that by adopting a fixed rate regime tied directly to the U.S. dollar, Mexican policy makers are in effect giving up “a degree of freedom” in their toolkit of policy remedies. If there are imperfections in the Mexican economy, such as downward wage rigidity, an adverse economic shock would generate more unemployment in a dollarized economy, further increasing the propensity of Mexican workers to migrate to the United …


An Analysis Of Second Time Around Bankruptcies Using A Split-Population Duration Model, Arindam Bandopadhyaya, Sanjiv Jaggia May 2001

An Analysis Of Second Time Around Bankruptcies Using A Split-Population Duration Model, Arindam Bandopadhyaya, Sanjiv Jaggia

Economics

A significant proportion of firms that reorganize under Chapter 11 file for a second Chapter 11 protection or liquidate. We use a "split-population" duration model that provides useful information regarding factors that could lead to a second bankruptcy. We find that the probability (hazard) of a firm re-entering bankruptcy is lower for firms that take a long time to reorganize, reduce their debt-to-assets ratio, do not divest, belong to an industry that has low capacity utilization and low demand growth. We also find that the probability of an average firm re-entering bankruptcy increases for about 4 years before declining.


Authority, Social Theories Of, Eduardo Zambrano Jan 2001

Authority, Social Theories Of, Eduardo Zambrano

Economics

Authority is a relation that exists between individuals, in which one does as indicated by another what he or she would not do in the absence of such indication. With this as background, the article presents the ‘premodern’ notions of authority developed by Plato, Aristotle, Machiavelli, and Weber; and then the perspective given by Arendt, according to which these notions are grounded in an ontological tradition whose time has passed. This leads to the point of view of Lukes, according to which it is unavoidable that multiple perspectives exist in the understanding of authority. These perspectives are associated with the …