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Economic Impact Of Downstream Gas Development In West Virginia, Eric Bowen

Bureau of Business & Economic Research

Downstream gas development has the potential to provide significant economic value if West Virginia can capture this development within its borders. In this report, we explore the potential impact of downstream natural gas industries on the West Virginia economy. To estimate the economic impact of downstream natural gas development, we take a two-pronged approach. First, we identify those industries nationally that require large amounts of natural gas in their production process. We then choose three of these industries that have the greatest potential for development within West Virginia. Second, we estimate the economic impact of a typical establishment in each …

Predictably (Boundedly) Rational: Examples Of Seemingly Irrational Behavior Can Be Quantitatively Explained By Bounded Rationality, Laxman Bokati, Olga Kosheleva, Vladik Kreinovich

Departmental Technical Reports (CS)

Traditional economics is based on the simplifying assumption that people behave perfectly rationally, that before making any decision, a person thoroughly analyzes all possible situations. In reality, we often do not have enough time to thoroughly analyze all the available information, as a result of which we make decisions of bounded rationality -- bounded by our inability to perform a thorough analysis of the situation. So, to predict human behavior, it is desirable to study how people actually make decisions. The corresponding area of economics is known as behavioral economics. It is known that many examples of seemingly irrational behavior …

Off-Label Use Of Recreational Cannabis: Acid Reflux In Colorado, Jacqueline M. Doremus, Sarah S. Stith, Jacob M. Vigil

Economics

Medical cannabis access has been shown to affect clinical health outcomes and health care spending. Unlike medical access, which requires a doctor's recommendation for treatment and only applies to the limited conditions approved under the state's medical cannabis program, recreational access makes cannabis available over-the-counter (OTC). This may create additional benefits through off-label cannabis use to treat unlisted conditions, such as acid reflux, which affects two out of three Americans. Using the roll out of recreational dispensaries in Colorado in 2014, we estimate the change in retailers' market share of antacid medications using a difference-in-differences design. Antacid market share decreases …

Kentucky Annual Economic Report 2020, Michael W. Clark, William H. Hoyt, Simon Sheather, Michael T. Childress

Kentucky Annual Economic Report

This report is one of the important ways that the Center for Business and Economic Research fulfills its mission to examine various aspects of the Kentucky economy. The analysis and data presented here cover a variety of topics that range from an economic forecast for Kentucky in 2020 to a broad presentation of factors affecting the economy.

Value Added Fed And Feeder Cattle Practices: Are They Paying?, Elliott James Dennis

Extension Farm and Ranch Management News

Summary

Some value added management programs clearly pay more than others and some do not pay at all. However, just like with a breeding or forage management strategy where not every year the cow gets bred back or the grass has sufficient protein, a value added program strategies premiums vary year to year. Switching the way cattle are managed and raised, handled, and fed requires planning and an understanding of labor and management capabilities. Not every cattle producer could or even should switch management practices an animal health protocol – even if premiums do exist. Thus, careful planning and consideration …

A New Materials And Design Approach For Roads, Bridges, Pavement, And Concrete, Alan Fuchs, Tathagata Acharya, Luis Cabrales, Jesse Bergkamp, Nyakundi Michieka

Mineta Transportation Institute

Increased understanding of demand for transport energy and how to improve road pavement materials would enable decision makers to make environmental, financial, and other positive changes in future planning and design of roads, bridges, and other important transportation structures. This research comprises three studies focused on pavement materials and a fourth study that examines energy demand within the road transportation sector. These studies are as follows:

1. A techno-economic study of ground tire rubber as an asphalt modifier;

2. A computational fluid dynamics analysis comparing the urban heat island effect of two different pavement materials – asphalt and Portland Cement …

Borderplex Business Barometer, Volume 4, Number 2, Thomas M. Fullerton Jr., Steven L. Fullerton, Ana Gutierrez Zubiate, Ignacio Santana

Border Region Modeling Project

No abstract provided.

Working Too Much For Too Little: Stochastic Rewards Cause Work Addiction, Brice Corgnet, Simon Gaechter, Roberto Hernán González

ESI Working Papers

People are generally assumed to shy away from activities generating stochastic rewards, thus re-quiring extra compensation for handling any additional risk. In contrast with this view, neurosci-ence research with animals has shown that stochastic rewards may act as a powerful motivator. Applying these ideas to the study of work addiction in humans, and using a new experimental paradigm, we demonstrate how stochastic rewards may lead people to continue working on a re-petitive and effortful task even after monetary compensation becomes saliently negligible. In line with our hypotheses, we show that persistence on the work task is especially pronounced when the …

Harnessing The Power Of Social Incentives To Curb Shirking In Teams, Brice Corgnet, Brian C. Gunia, Roberto Hernán González

ESI Working Papers

We study several solutions to shirking in teams that trigger social incentives by reshaping the workplace social context. Using an experimental design, we manipulate social pressure at work by varying the type of workplace monitoring and the extent to which employees engage in social interaction. This design allows us to assess the effectiveness as well as the popularity of each solution. Despite similar effectiveness in boosting productivity across solutions, only organizational systems involving social interaction (via chat) were at least as popular as a baseline treatment. This suggests that any solution based on promoting social interaction is more likely to …

Credibility Of Crime Allegations, Frances Xu Lee, Wing Suen

School of Business: Faculty Publications and Other Works

The lack of hard evidence in allegations about sexual misconduct makes it difficult to separate true allegations from false ones. We provide a model in which victims and potential libelers face the same costs and benefits from making an allegation, but the tendency for perpetrators of sexual misconduct to engage in repeat offenses allows semiseparation to occur, which lends credibility to such allegations. Our model also explains why reports about sexual misconduct are often delayed, and why the public rationally assigns less credibility to these delayed reports.

Air Pollution And Mental Health Of Older Adults In China, Yishu Zhou, Jingyi Liu

Economics Faculty Research & Creative Works

In this paper, we explore the association between air pollution and the mental health and depression of older adults in China. Along with the rapid economic development, concerns about air pollution and recognition of the importance of mental health have risen remarkably in China. Although no firm evidence of an association between air pollution and overall mental health has been found, the results show significant evidence of a positive relationship between air pollution and depression. Moreover, we observe the presence of concerns about environmental inequality, as people are more sensitive to contaminations caused by pollutants with high variation in densities …

The Relative Price Of Capital And Economic Structure, Roberto Samaniego, Juliana Yu Sun

Research Collection School Of Economics

Are trends in the price of capital technological in nature? First, we find that trends in the relative price of capital vary significantly across countries. We then show that a multi-industry growth model, calibrated to match differences in economic structure around the world and productivity growth rates across industries, accounts for this variation – mainly due to variation in the composition of capital. The finding indicates that the rate of change in the relative price of capital can be interpreted as investment-specific technical change – the extent to which productivity growth is relatively more rapid in the capital-producing sector. The …

Latinos In The Labor Force, Phillip Granberry

Gastón Institute Publications

In 2018 a financial news and commentary website, 24/7 Wall St., ranked Massachusetts as the state with the largest economic and social disparities between Latinos and non-Latino whites. For example, median household income was shown to be slightly above $80,000 for whites and just under $40,000 for Latinos. Even more starkly, the rates of homeownership were shown as 69.3% and 26.0%, respectively.

The present report offers an in-depth look at one aspect of the disparity, namely, the difference between the median wage income of Latinos and non-Latinos (a great majority of whom in Massachusetts are non-Latino white). In 2017 …

Treatments For Cancer Given Orally: Patients' Perceptions Of Distress Due To Financial Toxicity, Ellen Carr

Dissertations

Purpose/Aims: For adult participants who have received or are receiving treatment for hematologic and solid tumor malignancies given orally, this study describes the relationship between participants’ experience of financial toxicity (FT), the participants’ perception of distress associated with FT, and participants’ self-identified adherence to prescribed treatments in the context of FT.

Background: FT has emerged as an additional source of distress for cancer patients. The costs of treatments given orally can be prohibitively expensive for patients. Therefore, these patients may experience considerable distress and may not adhere to treatments as prescribed.

Method: Descriptive cross-sectional correlational design study of a sample …

The Future Of Work In The Mountain West, Ember Smith, Caitlin Saladino, William E. Brown

Economic Development & Workforce

This Fact Sheet highlights the potential net job growth in the Mountain West states (Nevada, Utah, Arizona, New Mexico, and Colorado) and automation employment implications in each county in the region as detailed in The future of work in America: People and places, today and tomorrow, a report by the McKinsey Global Institute.

Reviewer Acknowledgments For 2019, F. Douglas Scutchfield Md, Erin N. Haynes, Erin Bouldin, Robert M. Shapiro Ii, Tim Marema, Charlotte S. Seidman

Journal of Appalachian Health

The Editorial Team extends a heart-felt “thank you” to those who have given their time and expertise in the past year to participate in this process with the Journal of Appalachian Health. We know that you have many competing pressures on your time, and that you are not financially compensated for the time you spend reviewing manuscripts. We hope that there are other forms of compensation that make the sacrifice worth the effort.

A Healthy Attitude: Rural Leaders In Tn County Organize To Address Well-Being In Appalachia, Tim Marema, Erin Bouldin

Journal of Appalachian Health

When it came to formal philanthropy, Grundy County was not on the map. That changed with the 2012 establishment of South Cumberland Community Fund, which serves the plateau portions of Grundy, Franklin, and Marion counties.

Development And Early Outcomes Of The Watauga Compassionate Community Initiative, North Carolina, Tim Marema, Erin Bouldin

Journal of Appalachian Health

Addressing adverse childhood experiences has become a public health imperative, and communities across the United States are working to develop and implement programs and policies to both prevent childhood trauma and support adults who experienced trauma as children. Here we describe the development of the Watauga Compassionate Community Initiative (WCCI) in Watauga, County, North Carolina.

Introduction To The New “Early Reports Of Innovation” Section, Erin Bouldin, Tim Marema

Journal of Appalachian Health

The Journal of Appalachian Health is introducing a new section this issue. While the journal is centralizing some of the best research and commentary on Appalachian health, the editorial team felt that practice-focused groups, organizations, and agencies may not be fully represented in the publication.

Introducing The L.A.U.N.C.H. Collaborative, F. Douglas Scutchfield Md, Kevin Patrick

Journal of Appalachian Health

The L.A.U.N.C.H. Collaborative: Linking & Amplifying User-Centered Networks through Connected Health: A Demonstration of Broadband-Enabled Connected Health and Community-Based Co-Design brings together a group of organizations that are eager to use Appalachian Kentucky as a site for the development of a project aimed at creating an environment that addresses two of the nation’s major concerns about cancer. First, individuals who live in rural and remote areas are more likely to die of cancer than those who live in urban or suburban settings. And second, geographic obstacles hinder their ability to access evidence-based strategies that can prevent cancer or treat it …

The Quonset Economic Impact, Edinaldo Tebaldi

Economics Faculty Journal Articles

This report provides a data-driven and comprehensive assessment of the economic impact and tax incidence implications of economic activities at the Quonset Business Park.

Basel Iii G: Shadow Banking And Project Finance, Christian M. Mcnamara, Andrew Metrick

Journal of Financial Crises

The Net Stable Funding Ratio (NSFR), a liquidity standard introduced by Basel III, seeks to promote a better match between the liquidity of a bank’s assets and the manner in which the bank funds those assets. The NSFR requires banks to maintain a minimum amount of funding deemed “stable” by the Basel framework based on the liquidity of the banks’ assets and activities over a one-year timeframe. One of the areas seen as most affected by this development may be bank participation in project finance for infrastructure development. Since the global demand for infrastructure development remains robust, the shadow banking …

Basel Iii A: Regulatory History, Christian M. Mcnamara, Thomas Piontek, Andrew Metrick

Journal of Financial Crises

From the earliest efforts to mandate the amount of capital banks must maintain, regulators have grappled with how best to accomplish this task. Until the 1980s, regulation had been based largely on discretion and judgment. In the wake of two bank failures, the central bank governors of the G10 countries established the Basel Committee on Banking Supervision (BCBS) and in 1988, the BCBS introduced a capital measurement system, Basel I. The system represented a triumph of the fixed numerical approach, however, critics worried that it was too blunt an instrument. In 1999, the BCBS issued Basel II, a proposal to …

Incorporating Macroprudential Financial Regulation Into Monetary Policy, Aaron Klein

Journal of Financial Crises

This paper proposes two insights into financial regulation and monetary policy. The first enhances understanding the relationship between them, building on the automobile metaphor that describes monetary policy: when to accelerate or brake for curves miles ahead. Enhancing the metaphor, financial markets are the transmission. In a financial crisis, markets cease to function, equivalent to a transmission shifting into neutral. This explains both monetary policy’s diminished effectiveness in stimulating the economy and why the financial crisis shock to real economic output greatly exceeded central bank forecasts.

The second insight is that both excess leverage and fundamental mispricing of asset values …

Does The Source Of Remittance Matter? Differentiated Effects Of Earned And Unearned Remittances On Agricultural Productivity, Shankar Ghimire, Kul Kapri

College of Humanities and Social Sciences Departmental Research

This paper analyzes the effect of earned and unearned remittances on agricultural productivity in Nepal. This approach differs from the existing practice of studying the impact of total remittances on socio-economic outcomes. In particular, we disaggregate total remittances into earned and unearned remittances, and isolate their impacts on productivity—an individual household’s per labor-hour production of all agricultural output at the market value. Methodologically, we follow a three-stage least squares (3-SLS) approach to overcome the potential endogeneity concerns. We provide evidence that unearned remittances are more effective than earned remittances in increasing agricultural productivity. These results can be useful in understanding …

Optimal Long-Term Health Insurance Contracts: Characterization, Computation, And Welfare Effects, Soheil Ghili, Ben Handel, Igal Hendel, Michael D. Whinston

Cowles Foundation Discussion Papers

Reclassification risk is a major concern in health insurance where contracts are typically one year in length but health shocks often persist for much longer. While most health systems with private insurers emphasize short-run contracts paired with substantial pricing regulations to reduce reclassification risk, long-term contracts with one-sided insurer commitment have significant potential to reduce reclassification risk without the negative side effects of price regulation, such as adverse selection. In this paper, we theoretically characterize optimal long-term insurance contracts with one-sided commitment, extending prior models of this form in several key directions that are important for studying health insurance markets. …

Optimal Long-Term Health Insurance Contracts: Characterization, Computation, And Welfare Effects, Soheil Ghili, Ben Handel, Igal Hendel, Michael D. Whinston

Cowles Foundation Discussion Papers

Reclassification risk is a major concern in health insurance where contracts are typically one year in length but health shocks often persist for much longer. We theoretically characterize optimal long-term insurance contracts with one-sided commitment, and use our characterization to provide a simple computation algorithm for computing optimal contracts from primitives. We apply this method to derive empirically-based optimal long-term health insurance contracts using all-payers claims data from Utah, and then evaluate the potential welfare performance of these contracts. We find that optimal long-term health insurance contracts that start at age 25 can eliminate over 94% of the welfare loss …

Shift-Share Analysis, Appalachian Counties, Randall Jackson, Péter Járosi

Shift Share Analyses

In County-level CIE Supply Chain Analysis, the second of five p a rts o f A n E c onomic A n alysis of the Appalachian Coal Industry Ecosystem posted to the Commission’s website in January of 2018, we developed a set of metrics that were used to provide insights on the past and future supply chain implications of long-term coal industry decline in Appalachia. These metrics were used to identify counties that have been heavily impacted by the decline of the coal industry, those that remain dependent on the coal industry ecosystem (CIE), and among the dependent counties, those …

Mildly Explosive Dynamics In U.S. Fixed Income Markets, Silvio Contessi, Pierangelo De Pace, Massimo Guidolin

Pomona Economics

We use a recently developed right-tail variation of the Augmented Dickey-Fuller unit root test to identify and date-stamp periods of mildly explosive behavior in the weekly time series of eight U.S. fixed income yield spreads between September 2002 and April 2018. We find statistically significant evidence of mildly explosive dynamics in six of these spreads, two of which are short/medium-term mortgage- related spreads. We show that the time intervals characterized by instability that we estimate from these yield spreads capture known episodes of financial and economic distress in the U.S. economy. Mild explosiveness migrates from short-term funding markets to medium- …

Celebrating 25 Years Of The Nebraska Rural Poll, Rebecca J. Vogt

Cornhusker Economics

In 2020, the 25th annual Nebraska Rural Poll will arrive in mailboxes across the state. For 25 years, the Poll has examined many topics of concern to rural Nebraskans and accumulated a rich dataset for state and community leaders.

The Nebraska Rural Poll was first conducted by the University of Nebraska-Lincoln Department of Agricultural Economics in 1996 under the leadership of Dr. John Allen and Dr. Sam Cordes. Each year since, 7,000 surveys are mailed to randomly selected households located in the nonmetropolitan counties of the state. The goal of the poll is to give rural Nebraskans and their leaders …