Digital Commons Network^™

Beyond Guns And Butter: Structural Fiscal Priorities And The Politics Of Welfare In Oecd Economies, 2000-2023, Nyassa Garg

CMC Senior Theses

The “guns vs. butter” debate has long framed the tension between military and welfare spending, but this thesis reveals that the tradeoff is far more complex than traditionally assumed. This study re-examines the tradeoff in OECD economies from 2000 to 2023, using fixed-effects and within-between Mundlak models to distinguish between short-run adjustments and long-run structural patterns. My results show no clear evidence of year-to-year substitution; instead, welfare commitments in advanced OECD countries are institutionally rigid and insulated from contemporaneous military spending pressures. Crowding out primarily presents itself as a structural pattern—countries with consistently higher military burdens allocate a smaller share …

Esg And Misvaluation In U.S. Equity Markets, Rohaan Bhojwani

CMC Senior Theses

Existing research has produced conflicting conclusions on whether environmental, social, and governance (ESG) characteristics are efficiently priced in equity markets. While some studies argue that ESG performance improves firm value through lower risk and stronger fundamentals, others suggest that investor demand has inflated valuations in the past beyond intrinsic worth. This thesis examines whether ESG-driven valuation gaps represent justified pricing through firm fundamentals or systematic mispricing using Bartram and Grinblatt’s Agnostic Fundamental Analysis Framework (2018).

For this paper, I analyze the top 1000 U.S public firms by market value. I regress the market value on 19 accounting fundamentals for these …

Federal Credit And Post-Disaster Economic Recovery: A County-Level Study Of Sba Lending From 2002 - 2022, Tanveer Singh Chabba

CMC Senior Theses

The United States Small Business Administration (SBA) is a government organization founded in 1953 that plays a central role in disaster response by providing capital contracts and low-interest loans to affected firms and households. This thesis will examine whether the SBA’s disaster lending program supports county-level economic recovery in the aftermath of a disaster period. My initial hypothesis is that after a natural disaster, an increase in SBA loan activity should help mitigate income losses and support economic recovery, leading to a consistent level of county-level Adjusted Gross Income (AGI) growth in future years. Using a constructed dataset that links …

Loan-Heavy Aid: Consequences On Academic And Early-Career Outcomes, April Zhang

CMC Senior Theses

This study examines how the composition of financial aid, specifically the balance between loans and grants, shapes students’ academic performance, major selection, and early career outcomes. Using administrative data from the University of California system (2007-2019) and post-graduation records from UC Irvine, I analyze how loan reliance influences both educational trajectories and labor-market results. The key measure, loanshare, captures the fraction of total aid financed through loans rather than grants. This allows for comparisons among students with similar financial need, expected family contribution, and total aid levels. Results show that students with more loan-heavy aid packages earn significantly lower …

Estimating Risk In Early-Stage Venture Capital: A Real Options Approach, Luke H. Jacobson

CMC Senior Theses

This study uses a Real Options analysis model to measure the implied volatility of early-stage startup firms in the United States since 2005. This model is used to examine the effect of Venture Capital firms’ investments in the early stages of startup life, along with the effects of startup-specific characteristics on implied volatility. While previous research has created a foundation for Real Options theory in Venture Capital investing, there have only been case studies on applying Real Options analysis to startup firms. Existing research has also provided evidence that Venture Capital firms “de-risk” startups when they invest in early stages …