Other Economics Commons^™

Driven By Change: The Impact Of Macroeconomic Shifts And Covid-19 On New Vehicle Sales, Jackson Aldrich

CMC Senior Theses

This paper examines the impact of macroeconomic factors and the COVID-19 pandemic on new vehicle sales. In order to address these two topics, a two-pronged approach was used with separate regression models. The macroeconomic variables include monthly supply of new homes, CPI for urban public transportation, unemployment rate, disposable personal income, inflation expectation, consumer sentiment, average gas prices, and total vehicle miles traveled which were regressed on total vehicle sales from 1978-2022. The regression results confirmed and supported current literature and highlighted the importance of the housing market and unemployment rate on new vehicle sales. The COVID-19 pandemic model variables …

A Philosophical And Empirical Investigation Into Buddhist Economics, Hannah Doyle

CMC Senior Theses

There is a growing body of literature on Buddhist economics from a philosophical perspective; however, no work to date has sought to empirically validate it as an effective economic theory at a global scale. In my paper, I draw on the long history of Buddhist metaphysics to construct an account of Buddhist ethics and then proceed to derive a set of Buddhist economic principles. I draw on the World Happiness Report’s methodology to quantitatively demonstrate the relationship between Buddhist economic principles and the psychological wellbeing of a country’s citizens, as measured through their own evaluation of their quality of life …

Impact Of Recessions And The Business Cycle On Altruism, Nicolas De Mello

CMC Senior Theses

I examine how recessions and the business cycle impact the time individuals allocate to altruism, using American Time Use Survey data from 2002-2019. The aim of the paper was to create a measure of altruism to explore changes in attitudes towards charity and altruism instead of the financial ability to do so. Additionally, I want to understand how economic shocks, such as recessions, impact behaviors and habits across the US population. Using ordinary least squares and the Tobit model, I created two models to capture both changes during and after recessionary periods. The first model is a regression of individuals’ …

Guns And Fatal Police Shootings: Accuracy Of Firearm Prevalence Proxies In A Panel Data Analysis, Corin Elmore

CMC Senior Theses

This paper explores the relationship between gun prevalence and fatal police shootings in the United States. Specifically, the study assesses the validity of using FSS (Firearm Suicides Per Total Suicides) as a proxy for gun prevalence. It examines whether FBI background check data can be a more reliable alternative. Through a panel data analysis, the study provides moderate evidence that FBI background check data performs better than FSS as a proxy for gun prevalence and that the relationship between firearm prevalence and fatal police shootings is positive. Additionally, the study finds that instrumenting FSS with background check data to account …

Nft-Related Companies: Token Sale Returns, Robert Liu

CMC Senior Theses

Non-fungible tokens (NFTs) have emerged as a new means of digital asset ownership and many companies are building projects that revolve around the technology. These companies are blockchain-based and raise capital for their projects through cryptocurrency token sales, which have become a new mechanism of entrepreneurial finance. In a sample of 62 NFT-related companies, I examine which company, fundraising, and token sale process characteristics are associated with the performance of 7-day and 60-day market returns after a token’s public listing. A multivariate regression analysis finds that the total amount of capital raised before a token launch has a negative relationship …

Impact Of College Extracurricular Involvement On Entrepreneurial Outcomes, Emily Malech

CMC Senior Theses

Despite extensive inquiry, relatively little is understood about the factors which shape entrepreneurs as young adults. This paper examines the impact of college extracurricular involvement on the entrepreneurial outcomes of alumni; it considers which extracurricular activities are most strongly associated with entrepreneurship. Additionally, it explores whether the number of extracurricular activities participated in by students impacts their proclivity for entrepreneurship. It observes 219 alumni of Claremont McKenna College and uses data from the institution’s public records as well as alumni’s LinkedIn profiles. This data contains information on entrepreneurship, indicated by job titles, and five extracurricular activities. Using a probit model …

The Impact Of Production Budgets On Theatrical Vs. Non-Theatrical Revenues In The Movie Industry, Naveen Shastri

CMC Senior Theses

This thesis discusses the impact of movie production budgets on various revenue ratios. An OLS regression equation was created that compares the production budget of a movie to one of three movie revenue ratios. These ratios can be attributed to the relative elasticities of each revenue metric (domestic DVD sales, domestic box office revenues, and foreign box office revenues). Among other results, it seems that the elasticity for domestic DVD sales was relatively greater than the one representing domestic box office revenues. Also, foreign box office elasticities were relatively larger than either domestic revenue variable. These results imply different trends …

Is Avocado Toast The Reason I'M Still Living With My Parents?, Brendan Macdonald

CMC Senior Theses

Is avocado toast the reason that I am still living with my parents? In other words, does the consumption of avocado toast, or more specifically eating out in general, have any impact on one’s ability to be a homeowner. In May of 2017, an Australian real estate developer by the name of Tim Gurner was asked to provide advice to young people who could not afford to purchase a home. He responded by saying, “when I was trying to buy my first home, I wasn’t buying smashed avocado for $19 and four coffees at $4 each,” (Victor, 2017). While the …

Determining Factors Of Risk Tolerance: Evidence From Fantasy Football Snake Drafts, Nicholas Obrand

CMC Senior Theses

This paper utilizes fantasy football snake drafts to analyze risk tolerance of individuals who are trying to maximize their present and future utility, but are faced with unknown factors and only have limited resources. Fantasy football provides a unique perspective on risk tolerance, different than the commonly researched fields of auctions, financial portfolios, and lotteries. I examine mock draft data from Fantasy Football Calculator as well as rankings data from Fantasy Pros to gauge the amount of risk associated with each draft pick. I find that the more perceived uncertainty that is connected to an individual selection, the more likely …

Returns To Buying Winners And Selling Losers: A Look At Cryptocurrencies, Daniel Walker

CMC Senior Theses

This paper is, to my knowledge, one of the first ever to examine the effectiveness of price momentum trading strategies applied to cryptocurrencies. Using aggregate OHLCV (Open, High, Low, Close, Volume) data on cryptocurrency pairs from Poloniex, Bittrex, and Bitfinex, I apply Jegadeesh and Titman’s classic -month/-month momentum trading strategy, reporting annual returns with and without incorporating trading fees. Portfolios are resampled daily, weekly, and monthly, testing lookback and holding periods ranging from one day to one year. The results show that trading cryptocurrencies using momentum strategies derives returns that rapidly increase the more often portfolios are resampled, with the …

Revenue Incentives And Referee Propensity To Make Foul Calls In The Nba Finals, Daniel Fallon-Cyr

CMC Senior Theses

In this study I examine foul calls by NBA referees alongside the difference in aggressiveness of twelve NBA basketball teams as they compete for the Championship Title. I aim to identify referee biases that increase the likelihood of the NBA Finals ending in a later game due to league revenue incentives. My data consists of 91 individual NBA Finals games played between the 2001 and 2016 NBA Finals. After controlling for changes in play as well as the difference in aggressiveness, I find that NBA referee’s foul calls are more dependent on a call on the opposing team in situations …

A Problematic Business Model: The Effect Of Private Prisons On Arrests, Claire Donnelly

CMC Senior Theses

Past work related to the private prison system has focused on direct comparisons between private and public facilities, including their respective quality, cost-effectiveness, and influence on recidivism. Using 2005 United States data compiled from a prison facility census, county census, and information on number of arrests by county, I examine the effect that the presence of private prisons has on the number of adult male arrests per county. Across four regression models, I initially find a significant effect of private prisons on arrests, but find that effect becomes insignificant once county and prison controls are accounted for. This suggests that …

Taking Good Works To The Next Level: Increasing Investment In And Support For Higher-Risk Innovation, Jessie Capper

CMC Senior Theses

This thesis explores the possible avenues available to corporations and capital-managing entities seeking to increase their commitment to good works. These organizations have the potential to fill the gap in societal needs by supporting and investing in good works, including environmental protection and highly-innovative energy technologies, beyond the traditional corporate social responsibility (CSR) norm. These means include charitable giving, working with disadvantaged communities, corporate assistance to environmental or other social non-governmental organizations, and more. This thesis discusses the advantages and limitations of various corporate structures (C Corporations, S Corporations, LLCs, B Corps, L³Cs, and benefit corporations) and capital-managing …

The Drivers Of Success In The Nfl: Differences In Factors Affecting The Probability Of Winning Based On First Half Performance, Zach Alleva

CMC Senior Theses

This paper explores how changing various end game statistics effects a given teams probability of winning a game in the National Football League (NFL). Data from the 2000-2016 NFL seasons is split into two subsets, one for teams winning at halftime, another for losing teams. Using this data an empirical model is estimated to study how the determinants of a team’s success differ between the two sets of data. Overall, the factors which determine a team’s outcome are consistent between the two subsets, varying primarily by magnitude of the effect.

Teaching An Old Profession New Tricks: An Analysis On The Effects Of The Flipped Classroom Model On Student Performance, Theresa K. Lomneth

CMC Senior Theses

Abstract

When traditional lecture methods prove ineffective, some professors turn to alternative teaching styles. In particular, a flipped or inverted classroom, where students watch conceptual videos before coming to class and use class time for application and fine tuning of these concepts has become popular in recent years. However, little consensus exists on the efficacy of these strategies. The purpose of this study is to determine whether a flipped classroom structure implemented in a medical school course successfully improved student performance. To do so, I analyzed exam data from the University of Nebraska Medical Center before and after implementation of …

A Look Into The Industry Of Video Games Past, Present, And Yet To Come, Chad Hadzinsky

CMC Senior Theses

Since its inception, the video game industry has been both a new medium for art and innovation as well as a major driving force in the advancements of many technologies. The often overlooked video game industry has turned from a hobby to a multi-billion dollar industry in its short, forty year life. People of all ages and genders across the world are playing video games at a higher clip than ever before. With so many new gamers and emerging technologies, it is an exciting time for the industry. The landscape is constantly changing and successful business models of the past …

Los Bancos Del Tiempo En España: Combatiendo La Recesión Con La Moneda Social, Marco Martellini

CMC Senior Theses

Un banco del tiempo (BDT) es el nombre formal que se le da a unas instituciones comunitarias que operan con horas de tiempo personal y laboral como moneda oficial. Son sistemas organizados de moneda social que permiten a sus usuarios intercambiar su propio tiempo y destreza en forma de créditos de servicio. La unidad de moneda es una hora de trabajo. Los BDT son parte de la categoría de moneda alternativa social y representan una evolución moderna de entidades clásicas como los trueques.

Los BDT valoran conceptos como compartir, igualdad y mutualismo. Así, funcionan como un sistema alternativo a los …

Bitcoin: Is Cryptocurrency Viable?, Austin Hill

CMC Senior Theses

Bitcoin, a virtual currency invented in 2009, was created as a peer-to-peer currency that eliminated the need for a third party authority, such as banks or government, to be involved in monetary transactions. Having no intrinsic value but carrying no government guarantees relegates bitcoin and its competitors to the perpetual role of investment opportunity, deriving value not from a practical use, but from a nominal, dollar value. This will continue to be the case until the U.S. Government sanctions virtual currency as a viable store of value. Because the dollar plays such a large role in the world’s economy, other …

Portfolio Company Selection Criteria: Accelerators Vs Venture Capitalists, Cody Chang

CMC Senior Theses

The explosive growth of ‘accelerators’ in the United States has given entrepreneurs and their startups the opportunity to pursue seed-stage financing. While the specific economic role of accelerators remains unclear, a study comparing the selection of portfolio companies between accelerators and venture capitalists was performed. A difference of means was performed on the responses per question between the collected 19 accelerators’ response and the 100 venture capitalists’ response, recorded from a prior study. It is found that venture capitalists place significantly more weight, than accelerators, on the potential of the startup’s product or service to be proprietary, to enter a …

An Empirical Analysis Of Differences In Environmental Transparency Across Firms, Sean Robert Smith

CMC Senior Theses

In recent years, many firms have voluntarily taken actions to gradually increase the transparency of their corporate social responsibility (CSR) efforts. Using data on a sample of U.S. firms, this paper empirically examines the factors that encourage firms to choose different levels of CSR transparency. This adds to the previous literature that has focused only on the binary decision to engage or not to engage in CSR, as opposed to the extent and comprehensiveness of voluntary CSR reporting. Environmental transparency data are collected from the Roberts Environmental Center (REC) at Claremont McKenna College, while data for firm characteristics and toxic …

Conditional Cash Transfers And Child Health: The Case Of Malawi, Ryan F. Boone

CMC Senior Theses

This paper analyzes the impacts of the Malawi Social Cash Transfer Scheme. The goal of this paper is to help improve the design of cash transfers. First of all, I analyze whether the cash transfer positively affects child health variables despite occurring in a region with poor supply side health institutions. I find significant results for many child level variables, such as frequency of illnesses, but insignificant improvements in anthropometric measurements. Secondly, I examine whether female-headed households invest more in child health than male-headed households. The results show that the impacts of the cash transfer did not depend on the …

The Evolution Of The Music Industry In The Post-Internet Era, Ashraf El Gamal

CMC Senior Theses

The rise in the prevalence of the Internet has had a wide range of implications in nearly every industry. Within the music business, the turn of the millennium came with a unique, and difficult, set of challenges. While the majority of academic literature in the area focuses specifically on the aspect of file sharing within the Internet as it negatively impacts sales within the recording sector, this study aims to assess the Internet’s wider impacts on the broader music industry. In the same time that record sales have plummeted, the live music sector has thrived, potentially presenting alternative business models …

Examining The Role Of Immigration In Crime Decline Across United States Cities, Brianna J. Losoya

CMC Senior Theses

Despite previous research in this area, the relationship between immigration and crime in the United States remains ambiguous and surrounded by misconceptions. However, recently, scholars have suggested that, despite the claims of policy-makers and popularized sociological theories, large immigrant concentrations may be linked with lower as opposed to higher crime rates. In the past, research in this area has been imprecise due to it its implementation of cross-sectional analyses for a limited selection of geographic regions. However, through the implementation of time-series procedures and the use of annual data for metropolitan statistical areas during the 2005–2010 periods, the present study …

Blood Money: A Study Of The Effect Of Fighting On Player Salaries In The National Hockey League, Matthew G. Morton

CMC Senior Theses

Fighting has been a centerpiece of the National Hockey League since it was formed in 1917. Although rules have been introduced regulating the physicality of play in the NHL, fighting is demanded—and encouraged—by fans and players alike. Fans have long been attracted to the violence of professional hockey; previous studies have documented that professional hockey is a “blood sport” that generates revenues with violence. This research investigates the effect of fighting on player salaries in the NHL, examining the way in which fighting has become a strategic element of the game, describing the way players enforce their own “Code” of …

Do Nba Fans Discriminate Against Race Or Nationality?, Peter Meyer

CMC Senior Theses

Previous work found evidence that the racial composition of NBA teams was positively correlated with the racial composition of their metropolitan market areas during the 1990s. This paper finds continued evidence of this relationship in the 2000s, with an accompanying attendance boost from the incorporation of white players on teams located in whiter areas. There is also evidence that white players receive a salary premium relative to black players of equal performance quality. An examination of player performance indicates that demand for foreign players with the skill set of a forward or center is higher than demand for players of …

Winning Off The Field: The Determinants Of Mlb Franchise Value, David F. Ulrich

CMC Senior Theses

This paper examines the underlying drivers of MLB franchise value. Using panel data for MLB teams from 2000-2010, I find that a team’s ballpark and metro-area market are significant determinants, yet revenues truly drive value. Further, I find that incremental increases in winning percentage by a particular team has an insignificant effect on total revenues and has no marginal impact on the value of the team, particularly if the team recognizes consistent revenue streams every year. Finally, I show that the modern sabermetric approach to player management negatively impacts firm value, suggesting that although small market teams have been successful …

Public Dollar Private Owners; Tax Subsidies For New Stadiums In Professional Sports, Grant J. Bunnage

CMC Senior Theses

The growing popularity of North American professional sports over the last twenty years directly coincides with the recent trend of urban communities using tax dollars to publically subsidize professional football, baseball, and basketball stadiums. Communities across North America invest substantial amount of public tax dollars in private facilities in light of a consensus among policy analysts that the economic impact of the new stadium is greatly exaggerated. The economic impact of new stadiums has been extensively researched, the focus of this paper rather, is to examine the impact publically subsidized facilities built in the last twenty years have on the …

Energy Efficiency Technologies For Buildings: Potential For Energy, Cost, And Carbon Emission Savings, Bukola S. Jimoh

CMC Senior Theses

Buildings are a significant energy consumer and are responsible for an increasingly large percent of worldwide greenhouse gas emissions, currently between 30 and 40 percent. Energy efficiency presents unique opportunities for building owners to reduce their environmental footprint and add value through cost savings, tax deductions, and increased market value. An analysis of 183 samples of efficiency measures in seven technology categories found that 74% of efficiency investments had a positive net present value. Building automation system and chiller plant improvements had the highest mean energy and carbon dioxide savings per square foot. Additionally, building automation systems had, on average …

Tie The Knot Or You Tighten The Noose? The Current Effect Of Pre-Marital Cohabitation On Marriage Survival Rates, Matthew D. Beienburg

CMC Senior Theses

Pre-marital cohabitation has become a mainstream practice among couples in the United States, yet initial empirical evidence demonstrated significant correlations between cohabitation and subsequent marital instability. Later studies disputed a causal relation and have attempted to show a weakened connection over time, but have themselves suffered from the use of exclusively older and/or unreliable data. This paper uses figures from the National Longitudinal Survey of Youth (1997-08) and the National Survey of Family Growth (2006-08) to provide an updated analysis of cohabitation’s effect on marriage over the past decade. Using proportional hazard and competing risk models, this paper confirms a …

Some Professionals Play Minimax: A Reexamination Of The Minimax Theory In Major League Baseball, Jeffrey Park

CMC Senior Theses

This paper explores the behavior of Major League Baseball pitchers. We analyze the pitching data from 2007-2010 in order to determine whether their actions follow minimax play. We also examine what the OPS statistic tells us about a pitcher's value.