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Full-Text Articles in Social and Behavioral Sciences

Allocating In The Presence Of Dominance: A Mean-Variance Portfolio Choice Economic Experiment, Jack Gardner Jan 2019

Allocating In The Presence Of Dominance: A Mean-Variance Portfolio Choice Economic Experiment, Jack Gardner

Gettysburg Economic Review

I conduct a mean-variance portfolio choice economic experiment to evaluate how individuals’ portfolio choices deviate from what modern portfolio theory considers optimal. The experimental framework is comprised of three treatments. In each treatment the portfolio selection task involves choosing between two risky assets with zero correlation among their payoffs and one risk free asset. Participants are tasked with completing thirty choice rounds in which they must allocate a constant experimental capital amount to the available asset options after which they are shown period-by-period state-realizations. I utilize the definition of dominance as described in Neugebauer (2004), and Baltussen and Post (2011), …


The Gettysburg Economic Review, Volume 11, Spring 2019 Jan 2019

The Gettysburg Economic Review, Volume 11, Spring 2019

Gettysburg Economic Review

No abstract provided.


Front Matter Jan 2019

Front Matter

Gettysburg Economic Review

No abstract provided.


Are Price-Earnings Ratios Mean Reverting? An Empirical Study, Kevin Klassen Jan 2019

Are Price-Earnings Ratios Mean Reverting? An Empirical Study, Kevin Klassen

Gettysburg Economic Review

Mean reversion in stock prices is a highly studied area in the financial literature with controversial findings. While some economists have found evidence of mean reverting processes in stock prices, many argue in favor of the Efficient Market Hypothesis which states stock prices are random walk processes. This paper seeks to add to the literature on mean reversion but testing for evidence in price-earnings ratios rather than stock prices. The study employs a robust regression model controlling for company-specific and general market factors that influence price-earnings ratio deviations. After correcting for heteroskedasticity, serial correlation, and unit root processes, the results …


Blockchain Technology - China's Bid To High Long-Run Growth, Tyler J. Mann Jan 2019

Blockchain Technology - China's Bid To High Long-Run Growth, Tyler J. Mann

Gettysburg Economic Review

Despite having the second largest economy at $13 trillion, China has only recently surpassed the World Bank’s definition of the ‘middle-income range’ which is a gross national income per capita between $1,000 to $12,000 (constant 2011 international $). This is a noteworthy accomplishment since many other developing nations have fallen victim to economic stagnation within this range leading to the term “middle-income trap”. This paper will argue that one of the ways in which China escaped the middle-income trap and will continue to grow its economic influence is through the support of blockchain technology. Research and development, early technological adoption …


The Effect Of Fiscal Transparency On Output, Inflation, And Government Debt, Luce Menicali Jan 2019

The Effect Of Fiscal Transparency On Output, Inflation, And Government Debt, Luce Menicali

Gettysburg Economic Review

This theoretical paper studies the issue of fiscal transparency, which we define as asymmetry of information between the households’ perception of fiscal policy and the actual government balance sheet, in the context of a 24-hour news cycle. We model the economy using the New Keynesian three-equation model to study the effect of fiscal transparency on output, inflation, and especially government debt in order to draw conclusions that are relevant in the realm of policy-making in a sovereign debt crisis scenario. We find that a higher degree of fiscal transparency leads to greater levels of output and inflation as well as …


Unsustainable Sustainability: Do Policies That Increase Environmental Quality Exacerbate Income Inequality?, Haley K. Skinner Jan 2019

Unsustainable Sustainability: Do Policies That Increase Environmental Quality Exacerbate Income Inequality?, Haley K. Skinner

Gettysburg Economic Review

International pressure to meet climate and sustainability goals are mounting. Countries attempting to industrialize in the age of sustainability are tasked with industrializing using low-carbon practices. The transition to a “green” economy requires elimination of some jobs and skillsets that may upset social equality. This paper empirically examines the hypothesis that policies aimed at increased environmental performance promote increased income inequality in developing countries. Because existing literature firmly supports the hypothesis that lower income inequality leads to higher environmental performance, this paper develops a simultaneous equations model (SEM) to estimate the hypothesized endogenous relationship using two stage least squares (2SLS) …