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Economics

Selected Works

Selected Works

2018

Articles 1 - 11 of 11

Full-Text Articles in Business

Toward A Theory Of Entry In Moral Markets: The Role Of Social Movements And Organizational Identity, Brandon Lee, Panikos Georgallis Jul 2018

Toward A Theory Of Entry In Moral Markets: The Role Of Social Movements And Organizational Identity, Brandon Lee, Panikos Georgallis

Brandon Lee

A growing body of research on moral markets—sectors whose raison d’être is to offer market solutions to social and environmental issues—has offered critical insights into the emergence and growth of these sectors. Less is known, however, about why some firms enter moral markets while others do not. Drawing from research on market entry, organizational identity, and social movements, we develop a theory that highlights the potential of organizational identity to explain variation in entry into moral markets. We then expand our framework by theorizing about contingencies that alter the shape of the relationship between organizational identity and market entry: the …

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The Causal Effects Of Short-Selling Bans: Evidence From Eligibility Thresholds, Alan D. Crane, Kevin Crotty, Sebastien Michenaud, Patricia L. Naranjo Jun 2018

The Causal Effects Of Short-Selling Bans: Evidence From Eligibility Thresholds, Alan D. Crane, Kevin Crotty, Sebastien Michenaud, Patricia L. Naranjo

Sébastien Michenaud

We identify the causal effects of short-selling bans on stock prices using regression discontinuity (RD). We exploit three threshold-based rules that determine a stock’s short-selling eligibility on the Hong Kong Stock Exchange. Short-selling bans have a large effect on short-selling volume at all thresholds. Despite this, bans do not affect stock prices. Stock returns, volatility, and crash risk are not different for banned versus unrestricted stocks when appropriate counterfactual stocks are used to measure a ban’s effects. Our findings suggest that short-selling bans are not as costly as previously argued, but are ineffective at reducing volatility or buttressing prices.

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Re-Conceptualizing The Economic Incorporation Of Immigrants: A Comparison Of The Mexican And Vietnamese, Shannon Gleeson Feb 2018

Re-Conceptualizing The Economic Incorporation Of Immigrants: A Comparison Of The Mexican And Vietnamese, Shannon Gleeson

Shannon Gleeson

Using data from the 2000 5 per cent Integrated Public Use Microdata Series, this article advocates three shifts in our theoretical and empirical approaches to understanding immigrant economic incorporation. First, through a comparison of Mexican and Vietnamese immigrants, these findings highlight the importance of an immigrant population’s relationship to the state for economic outcomes, and cautions against analyses that aggregate the foreign-born population. Second, through a joint analysis of unemployment and poverty outcomes, these findings call for researchers to be specific about the varied aspects of ‘‘economic incorporation’’ and distinguish between factors that drive labor market access, and those that …

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Do Deterrents Prevent Undeclared Work? An Evaluation Of The Rational Economic Actor Approach, Ioana Horodnic, Colin C. Williams Jan 2018

Do Deterrents Prevent Undeclared Work? An Evaluation Of The Rational Economic Actor Approach, Ioana Horodnic, Colin C. Williams

Colin C Williams

Across the member states of the European Union and beyond, paid transactions occur that are not declared to the state for tax, social security and/or labour law purposes when they should be declared. This is not a minority practice. The undeclared economy is estimated to be equivalent to 17.9 per cent of the EU28 GDP in 2016. Similarly, it is estimated that 9.3 per cent of total labour input in the private sector in the EU28 is undeclared and that undeclared work constitutes on average 14.3 per cent of gross value added in the private sector. Furthermore, in 2013, 4 …

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'They Come Here To Work': An Evaluation Of The Economic Argument In Favor Of Immigrant Rights, Shannon Gleeson Jan 2018

'They Come Here To Work': An Evaluation Of The Economic Argument In Favor Of Immigrant Rights, Shannon Gleeson

Shannon Gleeson

Advocates commonly highlight the exploitation that hard-working undocumented immigrants commonly suffer at the hands of employers, the important contribution they make to the US economy, and the fiscal folly of border militarization and enhanced immigration enforcement policies. In this paper, I unpack these economic rationales for expanding immigrant rights, and examine the nuanced ways in which advocates deploy this frame. To do so, I rely on statements issued by publicly present immigrant rights groups in six places: California, Florida, Illinois, New York, Texas, and Washington, DC. I also draw on interviews with immigrant advocates in San Jose, CA and Houston, …

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International Migration In Macro-Perspective: Bringing Power Back In, Marcel Paret, Shannon Gleeson Jan 2018

International Migration In Macro-Perspective: Bringing Power Back In, Marcel Paret, Shannon Gleeson

Shannon Gleeson

This paper challenges the inward looking perspective of recent immigration research by situating migration to the United States within a global and historical context. This macro-stratification perspective breaks out of the confines of national contexts to explore how international migration is shaped by global power divides. We argue that in order to fully understand international migration, it is necessary to account for both the emergence of global power structures and the historical domination of Europe. We develop our argument by first outlining the significance of global power divides, with a particular focus on the United States. We then demonstrate how …

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Precarious Paradise: The Financial Well-Being Of Hispanic Immigrant Day Laborers In Malibu, Luisa Blanco, Lila M. Carlsen, Daniel R. Morrison, George Carlsen, Ashley Chaparro, Erick Molina Dec 2017

Precarious Paradise: The Financial Well-Being Of Hispanic Immigrant Day Laborers In Malibu, Luisa Blanco, Lila M. Carlsen, Daniel R. Morrison, George Carlsen, Ashley Chaparro, Erick Molina

Lila McDowell Carlsen

Using a mixed method approach we conducted a study consisting of written surveys, focus groups, and individual interviews with 58 men and women who were seeking employment through the Malibu Community Labor Exchange (MCLE) at the time of the study and were predominantly Hispanic immigrants. A central aim of this study is to develop an understanding of how Spanish-speaking Hispanic immigrant day laborers have fared financially in the aftermath of the economic crisis of 2007-2008. We find in our study that weak labor market conditions and intersecting inequities have led to job insecurity, job scarcity, and wage stagnation among workers …

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Investor Valuations Of Japan's Adoption Of A Territorial Tax Regime: Quantifying The Direct And Competitive Effects Of International Tax Reform, Sebastien J. Bradley, Estelle Dauchy, Makoto Hasegawa Dec 2017

Investor Valuations Of Japan's Adoption Of A Territorial Tax Regime: Quantifying The Direct And Competitive Effects Of International Tax Reform, Sebastien J. Bradley, Estelle Dauchy, Makoto Hasegawa

Sebastien J Bradley

Despite an extensive literature on the normative implications of different international tax regimes and an empirical literature addressing individual specific predictions, there exists little evidence encompassing the broad range of effects of taxing corporations' foreign-source income on a worldwide or territorial basis. This paper takes a more comprehensive quantitative approach by examining stock market reactions surrounding four events over the course of which Japan's 2009 adoption of a dividend exemption system was developed into proposed law. Using an event study methodology which leverages individual firm characteristics and accounts for contemporaneous financial market developments, we find that Japanese firms with less …

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Liquidity Policies And Financial Fragility, Danilo Lopomo Beteto Wegner Dec 2017

Liquidity Policies And Financial Fragility, Danilo Lopomo Beteto Wegner

Danilo Lopomo Beteto Wegner

This paper proposes an endogenous model of the formation of financial networks, where government and central bank policies that aim at enhancing market liquidity play a key role. Under these policies, large and less liquid investments become more profitable, but to finance them banks need to resort to the interbank market. This makes the structure of the financial network - and its associated exposure to shocks, i.e., fragility - to be dependent on liquidity policies chosen by the government and central bank. It is shown that, despite increasing the capitalization of the banking system, policies that enhance liquidity can make …

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Competing By Restricting Choice: The Case Of Search Platforms, Hanna Halaburda, Mikolaj Jan Piskorski, Pinar Yildirim Dec 2017

Competing By Restricting Choice: The Case Of Search Platforms, Hanna Halaburda, Mikolaj Jan Piskorski, Pinar Yildirim

Hanna Halaburda

We show that a two-sided platform can successfully compete by limiting the choice of potential matches it offers to its customers while charging higher prices than platforms with unrestricted choice. Starting from micro-foundations, we derive the strength and direction of network effect, and find that increasing the number of potential matches not only has a positive effect due to larger choice, but also a negative effect due to competition between agents on the same side. Agents with heterogeneous outside options resolve the trade-off between the two effects differently. For agents with a lower outside option, the competitive effect is stronger …

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Econometric Modeling Of Regional Electricity Spot Prices In The Australian Market, Michael S. Smith, Thomas S. Shively Dec 2017

Econometric Modeling Of Regional Electricity Spot Prices In The Australian Market, Michael S. Smith, Thomas S. Shively

Michael Stanley Smith

Wholesale electricity markets are increasingly integrated via high voltage interconnectors, and inter-regional
trade in electricity is growing. To model this, we consider a spatial equilibrium model of price formation, where constraints on inter-regional flows result in three distinct equilibria in prices. We use this to motivate an econometric model for the distribution of observed electricity spot prices that captures many of their unique empirical characteristics. The econometric model features supply and inter-regional trade cost functions, which are estimated using Bayesian monotonic regression smoothing methodology. A copula multivariate time series model is employed to capture additional dependence --- both cross-sectional and serial --- in …

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