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Economics

School of Business: Faculty Publications and Other Works

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Full-Text Articles in Business

House Bubbles, Global Imbalances And Monetary Policy In The Us, Anastasios Evgenidis, A. (Tassos) G. Malliaris Nov 2023

House Bubbles, Global Imbalances And Monetary Policy In The Us, Anastasios Evgenidis, A. (Tassos) G. Malliaris

School of Business: Faculty Publications and Other Works

This paper examines the factors driving housing price exuberance in the United States, specifically the influence of expansionary monetary policies and the global saving glut. We employ medium scale Bayesian VAR and time-varying VAR models to estimate the effects of monetary policy and global saving glut shocks on US housing bubbles. We find that, prior to the Global Financial Crisis, the impact of the saving glut shock is more enduring, powerful, and rapid in generating housing bubbles compared to monetary policy shocks. However, the recent housing boom that commenced in 2019 demonstrates a different pattern. Our results suggest that both …

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How The Past Of Outsourcing And Offshoring Is The Future Of Post-Pandemic Remote Work: A Typology, A Model, And A Review, Chris Erickson, Peter Norlander Jan 2022

How The Past Of Outsourcing And Offshoring Is The Future Of Post-Pandemic Remote Work: A Typology, A Model, And A Review, Chris Erickson, Peter Norlander

School of Business: Faculty Publications and Other Works

Information and communication technology (ICT) challenges traditional assumptions about the capacity to manage workers beyond organizational and physical boundaries. A typology connects a variety of non-traditional work organizations made possible by ICT, including offshoring, outsourcing, remote work, virtual companies, and platforms. A model illustrates how new technology serves as a proximate cause for a revision of social contracts between capital, labor and government reached through bargaining, and how external shocks such as the COVID-19 pandemic, the institutional environment, and limitations in practice influence how technology changes the organization of work. An historical case illustrates the general features of the model, …

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Wage Theft, Economic Conditions, And Market Power: The Case Of H-1b Workers, Peter Norlander, Jed Devaro May 2021

Wage Theft, Economic Conditions, And Market Power: The Case Of H-1b Workers, Peter Norlander, Jed Devaro

School of Business: Faculty Publications and Other Works

This study explores what determines employers’ violations of the wage contracts of workers on H-1B temporary work visas, which occur when firms pay those workers below the promised prevailing or “market” wage. A theoretical framework is proposed that predicts more violations during economic downturns, fewer violations when firms have more labor-market power, and more violations by subcontractor firms. Empirical analysis is based on a firm-level matched dataset of wage and hour violations and the firms that sponsor H-1Bs. Higher labor market power, measured by the Herfindahl-Hirschman Index, is associated with fewer violations. Higher unemployment rates and subcontractor firms are associated …

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Credibility Of Crime Allegations, Frances Xu Lee, Wing Suen Feb 2020

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.

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Are There Rational Bubbles In The Us Stock Market? Overview And A New Test, A. (Tassos) G. Malliaris, Ramaprasad Bhar Jan 2001

Are There Rational Bubbles In The Us Stock Market? Overview And A New Test, A. (Tassos) G. Malliaris, Ramaprasad Bhar

School of Business: Faculty Publications and Other Works

A speculative bubble is usually defined as the difference between the market value of a security and its fundamental value. Although there are several important theoretical issues surrounding the topic of asset bubbles, the existence of bubbles is inherently an empirical issue that has not been settled yet. This paper reviews several important tests and offers one more methodology that improves upon the existing ones. The new test is applied to the annual US stock market data spanning over a century and at the monthly frequency covering the post-war period. Although we find evidence of stock price bubble in both …

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Is The Federal Reserve Bank Stock Market Bubble-Neutral?, A. (Tassos) G. Malliaris, Marc D. Hayford Jan 2001

Is The Federal Reserve Bank Stock Market Bubble-Neutral?, A. (Tassos) G. Malliaris, Marc D. Hayford

School of Business: Faculty Publications and Other Works

This paper argues that the Fed was not stock market bubble-neutral during the last several years. This nonneutrality implies two options: first, the Fed has used monetary policies to prevent the building of the stock market bubble or, second, the Fed has contributed to its development and subsequent deflation. We supply representative quotes from the FOMC transcripts to establish that the Fed has paid significant attention to the valuation of the stock market. These quotes confirm that the stock market’s valuation was an important variable in the Fed’s decision-making and its conduct of monetary policy. We also conduct econometric modeling, …

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