Economics Commons^™

Predicting The Divorce Decisions Of Young Women Using The National Longitudinal Survey Of Youth, Angela A. Smith '96

Honors Projects

Over recent decades, we have witnessed drastic changes in American family structure. Previous studies, such as those performed by Gary Becker (1991) and Manser and Brown (1980) have applied economic models to divorce and other family structure decisions. Building on the utility maximization analysis of Manser and Brown, as adapted by John Ermisch (1993), this study uses a logit regression analysis to predict divorce decisions for an all female sample of respondents, ages 28 to 36. Data are extracted from the National Longitudinal Survey of Youth for this analysis. Economic theory predicts that the probability of divorce is directly related …

Automobile Leasing Versus Installment Loan Credit: A Comparative Analysis, Susan E. Brown '96

Honors Projects

The Shortino family has done what many other consumers are doing--Ieasing an automobile. As a result, leasing is becoming an increasingly popular method of automobile financing. But why is leasing advantageous for the Shortino family? Johanna Shortino stated that the principle advantage of leasing was the savings on the down payment. While this may be true, there are also other factors to consider. For example, consider the contrast in the Shortinos' vehicles: an "aging" Datsun versus a new Cadillac. This shift is a significant trade upward among automobile classes and suggests another advantage to leasing: leasing can make expensive cars …

Exchange Rate Variability And Its Effect On Trade: A Case Study Of The Cfa Free Trade Zone, Gwendolyn M. Alexander '96

Honors Projects

Since the fall of the Bretton Woods agreement and the rise of a floating exchange rate regime, there has been a marked increase in the volatility of exchange rates. The movement of exchange rates relative to other currencies, or exchange rate variability is seen as a risk by importers and exporters. The uncertainty surrounding exchange rate movements affects importers and exporters who must determine domestic prices of traded goods without knowing how the exchange rate will move between the time an order is placed and the time payment is due. Theory supports that as exchange rate variability increases, ceteris paribus, …

Cultural Wage Differentials Among United States Immigrants, William J. Takahashi '96

Honors Projects

One ofthe most debated political and social issues in contemporary America is that of immigration. As a nation ofimmigrants and descendants ofimmigrants, the United States is grappling with the conflict over whether or not continued immigration will prove to be beneficial or detrimental to the economy and society. Immigration is an issue as old as the United States itself, yet it seems as though this generation of leaders is more determined than ever to make lasting changes in the policy concerning immigration. Some argue that a consistent inflow ofdiverse and talented human beings will advance the nation's economy as it …

An Empirical Analysis Of Dutch Disease: Developing And Developed Countries, David Rudd '96

Honors Projects

Dutch Disease occurs when a country discovers a substantial natural resource deposit and begins a large-scale exportation of it. As a result, the country's currency appreciates, thereby reducing the competitiveness of the country's traditional export sector. Therefore, this tradable goods sector should contract, leading to structural changes and unemployment in the economy. Neary and Van Wijnbergen (1986) develop the theoretical underpinnings by identifying the two components of Dutch Disease: the spending effect and the resource-movement effect. Using these theoretical components, the paper attempts to account for the decline in the Netherlands' manufacturing sector and Nigeria's and Indonesia's agriculture sectors. The …

Teen Mothers And Their Educational Attainment: Some Evidence From The National Longitudinal Survey Of Youth, Michael Seeborg, Risa Kumazawa

Scholarly Publications

This study uses the National Longitudinal Survey of Youth to estimate the effects of teenage motherhood on the educational attainment of young women. The results of an OLS regression with interaction terms demonstrate that the effects of teenage motherhood on education depends on the socio-economic background of the mother. Estimations show that young women from economically advantaged backgrounds sacrifice more than one year of education as a result of teenage motherhood while those from disadvantaged backgrounds sacrifice little, if any, education. Statistically significant interactions are found between teenage motherhood and several background characteristics. (J13, J24)

The Stock Market As A Leading Indicator: An Application Of Granger Causality, Brad Comincioli

University Avenue Undergraduate Journal of Economics

The purpose of this paper, then, is to evaluate stock prices as a leading indicator of economic activity. Time-series analysis and the notion of "Granger causality" are used in this project to estimate relationships between stock prices and the economy, and to see if they are consistent with theory. In this paper, we will explore the following questions. First, does the stock market lead the real economy, in the sense that variation in its past values explains some of the variation in the real economy? Second, does the stock market "Granger-cause" the real economy, in which case past values of …

An Economic Analysis Of The Death Penalty, Martin Kasten

University Avenue Undergraduate Journal of Economics

From an economic perspective, society should only use capital punishment if the marginal benefits outweigh the marginal costs. In the course of analyzing the economic efficiency of capital punishment, and before providing any recommendations, both the benefits and costs of the death penalty must be evaluated. Since the death penalty has been implemented for centuries, many people believe its benefits outweigh its costs. The evaluation of benefits in Part II will be compared to the costs assessed in Part III to determine if this long held assertion is correct.

Cultural Wage Differentials Among United States Immigrants, Bill Takahashi

University Avenue Undergraduate Journal of Economics

This project will attempt to take a modern snapshot of the ongoing process of immigration and cultural diversification, examine the problem of immigrant adaptation into the American way of life and explore which groups, if any, have an advantage when it comes to integrating into American society. More specifically this paper will address the question: What is the role of cultural factors in determining the standard of living of immigrants.

Editor's Note: Figures are missing from this article. We apologize for the inconvenience.

Environmental Injustice: Evidence And Economic Implications, Heidi Y. Willers

University Avenue Undergraduate Journal of Economics

Some economic analyses find evidence of environmental injustice--minorities and/or low-income persons are exposed to environmental dangers (locally undesirable land uses, or LULUs) more than their non-minority or more affluent counterparts. Such inefficient allocations result from a violation of perfect property rights. This paper does not determine efficient levels of various environmental dangers, but rather examines and compares several studies in an effort to find a consensus among researchers. No consensus emerges, as differences in research techniques prevent consistent results from being found. Future research must have well-defined methodologies before it can be effectively used by policy makers.