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Social and Behavioral Sciences Commons

Open Access. Powered by Scholars. Published by Universities.®

2012

Dartmouth College

Economics

Articles 1 - 8 of 8

Full-Text Articles in Social and Behavioral Sciences

Information And Employee Evaluation: Evidence From A Randomized Intervention In Public Schools, Jonah E. Rockoff, Douglas O. Staiger, Thomas J. Kane, Eric S. Taylor Dec 2012

Information And Employee Evaluation: Evidence From A Randomized Intervention In Public Schools, Jonah E. Rockoff, Douglas O. Staiger, Thomas J. Kane, Eric S. Taylor

Open Dartmouth: Faculty Open Access Scholarship

We examine how employers learn about worker productivity in a randomized pilot experiment which provided objective estimates of teacher performance to school principals. We test several hypotheses that support a simple Bayesian learning model with imperfect information. First, the correlation between performance estimates and prior beliefs rises with more precise objective estimates and more precise subjective priors. Second, new information exerts greater influence on posterior beliefs when it is more precise and when priors are less precise. Employer learning affects job separation and productivity in schools, increasing turnover for teachers with low performance estimates and producing small test score improvements ...


Technology Growth And Expenditure Growth In Health Care, Amitabh Chandra, Jonathan Skinner Sep 2012

Technology Growth And Expenditure Growth In Health Care, Amitabh Chandra, Jonathan Skinner

Open Dartmouth: Faculty Open Access Scholarship

In the United States, health care technology has contributed to rising survival rates, yet health care spending relative to GDP has also grown more rapidly than in any other country. We develop a model of patient demand and supplier behavior to explain these parallel trends in technology growth and cost growth. We show that health care productivity depends on the heterogeneity of treatment effects across patients, the shape of the health production function, and the cost structure of procedures such as MRIs with high fixed costs and low marginal costs. The model implies a typology of medical technology productivity: (I ...


Forensic Economics, Eric Zitzewitz Sep 2012

Forensic Economics, Eric Zitzewitz

Open Dartmouth: Faculty Open Access Scholarship

A new meta-field of "forensic economics" has begun to emerge, uncovering evidence of hidden behavior in a variety of domains. Examples include teachers cheating on exams, road builders skimping on materials, violations of U.N. sanctions, unnecessary heart surgeries, and racial biases in employment decisions, traffic stops, auto retailing, and even sports judging. In each case, part of the contribution of economic analysis is in uncovering evidence of wrongdoing. Although research questions differ, forensic economic work shares commonalities in approaches and limitations. This article seeks to draw out the common threads, with the hope of stimulating further research across fields ...


Cracks In The Melting Pot: Immigration, School Choice, And Segregation, Elizabeth U U. Cascio, Ethan G. Lewis Aug 2012

Cracks In The Melting Pot: Immigration, School Choice, And Segregation, Elizabeth U U. Cascio, Ethan G. Lewis

Open Dartmouth: Faculty Open Access Scholarship

We examine whether low-skilled immigration to the United States has contributed to immigrants' residential isolation by reducing native demand for public schools. We address endogeneity in school demographics using established Mexican settlement patterns in California and use a comparison group to account for immigration's broader effects. We estimate that between 1970 and 2000, the average California school district lost more than 14 non-Hispanic households with children to other districts in its metropolitan area for every 10 additional households enrolling low-English Hispanics in its public schools. By disproportionately isolating children, the native reaction to immigration may have longer-run consequences than ...


Sweetening The Deal? Political Connections And Sugar Mills In India, Sandip Sukhtankar Jul 2012

Sweetening The Deal? Political Connections And Sugar Mills In India, Sandip Sukhtankar

Open Dartmouth: Faculty Open Access Scholarship

Political control of firms is prevalent across the world. Evidence suggests that firms profit from political connections, and politicians derive benefit from control over firms. This paper investigates an alternative mechanism through which politicians may benefit electorally from connected firms, examining sugar mills in India. I find evidence of embezzlement in politically controlled mills during election years, reflected in lower prices paid to farmers for cane. This result complements the literature on political cycles by demonstrating how campaign funds are raised rather than used. Politicians may recompense farmers upon getting elected, possibly explaining how they can get away with pilferage ...


Financial Knowledge And Financial Literacy At The Household Level, Alan L. Gustman, Thomas L. Steinmeier, Nahid Tabatabai May 2012

Financial Knowledge And Financial Literacy At The Household Level, Alan L. Gustman, Thomas L. Steinmeier, Nahid Tabatabai

Open Dartmouth: Faculty Open Access Scholarship

There is evidence of a relation between numeracy and wealth held outside of pensions and Social Security. With pensions and Social Security accounting for half of wealth at retirement, and evidence that those with pensions save more in other forms, one would expect to find knowledge of pensions and Social Security influencing retirement saving. Yet we find no evidence that knowledge of pensions and Social Security is related to nonpension, non-Social Security wealth, to numeracy, or that it plays an intermediate role in the numeracy-wealth relation. Our findings raise questions about policies that would enhance numeracy to increase retirement saving.


Global Savings And Global Investment: The Transmission Of Identified Fiscal Shocks, James Feyrer, Jay Shambaugh May 2012

Global Savings And Global Investment: The Transmission Of Identified Fiscal Shocks, James Feyrer, Jay Shambaugh

Open Dartmouth: Faculty Open Access Scholarship

This paper examines the effect of exogenous shocks to savings on world capital markets. Exogenous tax increases in the United States (from Romer and Romer 2010) are only partially offset by changes in domestic private savings, and only a small amount is absorbed by increased domestic investment (contra Feldstein and Horioka 1980). Almost half the change in taxes is transmitted abroad through a change in the US current account. Other countries experience decreases in current accounts and increases in investment in response to exogenous US tax increases. We cannot reject symmetric responses across countries with different currency regimes and levels ...


Globalization And U.S. Wages: Modifying Classic Theory To Explain Recent Facts, Jonathan Haskel, Robert Z. Lawrence, Edward E. Leamer, Matthew J. Slaughter Jan 2012

Globalization And U.S. Wages: Modifying Classic Theory To Explain Recent Facts, Jonathan Haskel, Robert Z. Lawrence, Edward E. Leamer, Matthew J. Slaughter

Open Dartmouth: Faculty Open Access Scholarship

This paper seeks to review how globalization might explain the recent trends in real and relative wages in the United States. We begin with an overview of what is new during the last 10-15 years in globalization, productivity, and patterns of U.S. earnings. To preview our results, we then work through four main findings: First, there is only mixed evidence that trade in goods, intermediates, and services has been raising inequality between more- and less-skilled workers. Second, it is more possible, although far from proven, that globalization has been boosting the real and relative earnings of superstars. The usual ...