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Social and Behavioral Sciences Commons™

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Economics

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Claremont Colleges

2009

Articles 1 - 6 of 6

Full-Text Articles in Social and Behavioral Sciences

Estimating The Macroeconomic Consequence Of 9/11, S. Brock Blomberg, Gregory Hess May 2009

Estimating The Macroeconomic Consequence Of 9/11, S. Brock Blomberg, Gregory Hess

CMC Faculty Publications and Research

We perform an empirical investigation to estimate the macroeconomic cost of September 11 attacks on the United States economy. We estimate the impact of the attacks to be approximately a 0.50 percentage point decrease in GDP growth or $60 billion. Our upper bound estimate of the impact of September 11 is approximately twice that or $125 billion.

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Do Bank Bailouts Work? The Effect Of Reconstruction Finance Corporation Aid During The Crisis Of 1933, Katherine Bobroff Apr 2009

Do Bank Bailouts Work? The Effect Of Reconstruction Finance Corporation Aid During The Crisis Of 1933, Katherine Bobroff

Scripps Senior Theses

Do bank bailouts work? Government aid initiatives implemented to stem the current crisis raise important questions about the role of monetary policy in preventing bank failures. The scale of this bailout program defies comparison with any other aid package implemented in the post-World War II period. Fortunately, the operations of the Reconstruction Finance Corporation (RFC) during the Great Depression provide a historical experiment to examine the effects of government rescue programs on financial institutions. This paper examines the effects of the RFC's loan and preferred stock programs on bank failure rates during the crisis of 1933. Using a new database …

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Bridging The Gap Between The Field And The Lab: Environmental Goods, Policy Maker Input, And Consequentiality, Christian A. Vossler, Mary F. Evans Jan 2009

Bridging The Gap Between The Field And The Lab: Environmental Goods, Policy Maker Input, And Consequentiality, Christian A. Vossler, Mary F. Evans

CMC Faculty Publications and Research

This paper explores the criterion validity of stated preference methods through experimental referenda that capture key characteristics of a stated preference survey for a proposed environmental program. In particular, we investigate whether advisory referenda, where participant votes have either known or unknown weight in the policy decision, can elicit values comparable to that of a standard, incentive-compatible referendum. When participants regard their votes as consequential, our results suggest there is no elicitation bias with advisory referenda. For advisory referenda where participants view their votes as inconsequential, and for purely hypothetical referenda, we observe elicitation bias.

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Regulation With Direct Benefits Of Information Disclosure And Imperfect Monitoring, Mary F. Evans, Scott M. Gilpatric, Lirong Liu Jan 2009

Regulation With Direct Benefits Of Information Disclosure And Imperfect Monitoring, Mary F. Evans, Scott M. Gilpatric, Lirong Liu

CMC Faculty Publications and Research

We model the optimal design of programs requiring heterogeneous firms to disclose harmful emissions when disclosure yields both direct and indirect benefits. The indirect benefit arises from the internalization of social costs and resulting reduction in emissions. The direct benefit results from the disclosure of previously private information which is valuable to potentially harmed parties. Previous theoretical and empirical analyses of such programs restrict attention to the former benefit while the stated motivation for such programs highlights the latter benefit. When disclosure yields both direct and indirect benefits, policymakers face a tradeoff between inducing truthful self-reporting and deterring emissions. Internalizing …

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Hybrid Allocation Mechanisms For Publicly Provided Goods, Mary F. Evans, Christian A. Vossler, Nicholas E. Flores Jan 2009

Hybrid Allocation Mechanisms For Publicly Provided Goods, Mary F. Evans, Christian A. Vossler, Nicholas E. Flores

CMC Faculty Publications and Research

Motivated by efficiency and equity concerns, public resource managers have increasingly utilized hybrid allocation mechanisms that combine features of commonly used price (e.g., auction) and non-price (e.g., lottery) mechanisms. This study serves as an initial investigation of these hybrid mechanisms, exploring theoretically and experimentally how the opportunity to obtain a homogeneous good in a subsequent lottery affects Nash equilibrium bids in discriminative and uniform price auctions. The lottery imposes an opportunity cost to winning the auction, systematically reducing equilibrium auction bids. In contrast to the uniform price auction, equilibrium bids in the uniform price hybrid mechanism vary with bidder risk …

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Financial Liberalization And International Capital Flows, Nancy Neiman Auerbach, Yoonmin Kim, Thana Sompornserm Jan 2009

Financial Liberalization And International Capital Flows, Nancy Neiman Auerbach, Yoonmin Kim, Thana Sompornserm

Scripps Faculty Publications and Research

It is interesting that domestic and international financial liberalization are among the most often cited causes of the 1997–98 crisis. Liberalization in the Asian crisis countries took place prior to the crisis as did large capital inflows, many of which reversed during the crisis in the classic pattern of capital flow bonanzas ending in sudden stops (Calvo, Izquierdo, and Mejía 2008; Reinhart and Reinhart 2008; Sula and Willett 2009). Furthermore, China and India, with much less general financial liberalization and a continuing array of capital controls, were little hit by the crisis. Malaysia’s experiment with increasing capital controls during the …

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