Social and Behavioral Sciences Commons^™

Labor Market Challenges In Europe With Respect To The Migrant Crisis, Thomas M. Segerstrom

Student Publications

Advocates and opponents of European refugee policy have disagreed often over the economic impact of new asylum seekers. This paper analyzes characteristic qualities of the European labor market and how they relate to the recent changes in migration from the Middle East and Africa. Within is analysis of the impacts to gross domestic product, unemployment, and the welfare state that the arrival of additional persons to the low-wage market will bring. The paper also argues that a plan to distribute asylum seekers across the European Union is an equitable solution to the issue.

Globalization Of Taste And Modernity: Tracing The Development Of Western Fast Food Corporations In Urban China, Anastasia Gonchar

Student Publications

Food globalization has become an important topic in the discourse on globalization. There has been a rapidly rising trend of multinational food corporations integrating and dominating foreign agro-food markets. A clear example of this trend is present in China, whose economy and food industry experienced an influx of foreign direct investment and multinational retail and restaurant branches during the country’s economic opening in the 1980s. The aim of this research is to analyze the development of food globalization through the lens of Western fast food corporations and their successful integration into the Chinese market. The research also assesses the companies’ …

Envisioning A Future For Ethiopian Small Farmer Involvement In Development And Food Security, William H. Cauffman

Student Publications

In this paper I attempt to answer the question of how small-scale Ethiopian farmers can best participate in, contribute to and benefit from the development process. In addition, I seek to clarify the implications and potential nature of local food systems and their ability to achieve greater food security through small farmer involvement. Modern development ideology often focuses on large scale projects and export-led growth, ignoring the importance of smallholder farmers and rural vitality. These farmers are increasingly marginalized through this process. In Ethiopia 85% of the population is employed in the agricultural sector, the majority being small farmers that …

Working Capital Requirement And The Unemployment Volatility Puzzle, Tsu-Ting Tim Lin

Economics Faculty Publications

Shimer (2005) argues that a search and matching model of the labor market in which wage is determined by Nash bargaining cannot generate the observed volatility in unemployment and vacancy in response to reasonable labor productivity shocks. This paper examines how incorporating monopolistically competitive firms with a working capital requirement (in which firms borrow funds to pay their wage bills) improves the ability of the search models to match the empirical fluctuations in unemployment and vacancy without resorting to an alternative wage setting mechanism. The monetary authority follows an interest rate rule in the model. A positive labor productivity shock …

A Way Around The Divided House Majority, Charles L. Weise, Bruce A. Larson

Economics Faculty Publications

For observers of the U.S. Congress, the inability of Republicans to unite behind a candidate for speaker has been by turn fascinating, exasperating, and frightening. When and if a candidate is finally chosen, Republicans will breathe a sigh of relief, as will many commentators. The real crisis, however, will have just begun. [excerpt]

Rush To Judgment: The Sti-Treatment Trials And Hiv In Sub-Saharan Africa, Eileen Stillwaggon, Larry Sawers

Economics Faculty Publications

Introduction: The extraordinarily high incidence of HIV in sub-Saharan Africa led to the search for cofactor infections that could explain the high rates of transmission in the region. Genital inflammation and lesions caused by sexually transmitted infections (STIs) were a probable mechanism, and numerous observational studies indicated several STI cofactors. Nine out of the ten randomized controlled trials (RCTs), however, failed to demonstrate that treating STIs could lower HIV incidence. We evaluate all 10 trials to determine if their design permits the conclusion, widely believed, that STI treatment is ineffective in reducing HIV incidence.

Discussion: Examination of the …

Fealess Friday: Kelsey Chapman, Christina L. Bassler

SURGE

Kelsey Chapman ’15 fearlessly advocates for human rights, peace, and justice, focusing on the Middle East. An economics major and Middle East and Islamic Studies (MEIS) minor, Kelsey is the house leader for the MEIS House, an Arabic PLA, and the founder of Gettysburg’s chapter of J Street U. [excerpt]

Determining The Effect Of The Minimum Wage On Income Inequality, Benjamin S. Litwin

Student Publications

Many recent studies have shown a significant increase to income inequality since the 1980s. One of the proposed methods for fixing this trend is to increase the minimum wage, since this policy would help those at the low end of the income spectrum to see economic growth. To analyze the effectiveness of this policy, we studied data from countries that are part of the Organization for Economic Development and Cooperation. By forming an econometric model to account for many factors that affect income inequality in nations around the world, including the real value of the minimum wage, we can determine …

Women's Social Rights: Untapped Economic Potential, Monae S. Evans

Student Publications

This paper analyzes whether women’s social rights play a role in fostering higher levels of economic development. Prior development initiatives and economic policies failed to account for the productive capacities of women by discriminating against their basic rights to things such as an equitable education, equal inheritance, and marital rights. Applying the CIRI (Cingranelli-Richards Human Rights) dataset for women’s social rights, I found that improvements in these areas of human rights leads to significant increases in real GDP per capita, which highlights the need for development analysts and economists to focus their attention on countries’ most viable productive resource, women.

Common-Value Procurement Auctions With Renegotiation, Rimvydas Baltaduonis, Lucas Rentschler

Economics Faculty Publications

This note contains the equilibrium bid functions for two types of common-value procurement auctions: 1) a procurement auction in which bids represent an enforceable contract; 2) a procurement auction in which, upon learning the true cost of supplying the good, the winning bidder can renegotiate the contract with the buyer, and each bidder must submit a bond with their bid, which is returned at the end of the auction unless they are the low bidder and renegotiate the contract.

El Mal De Chagas Y Su Potencial De Eliminación, Eileen Stillwaggon

Economics Faculty Publications

La Asamblea Mundial de la Salud ha elegido algunas enfermedades como blancos para la eliminación. Hay mucha esperanza y una alta probabilidad de que varias enfermedades, recientemente llamadas desatendidas, sean eliminadas en las próximas décadas. Vamos a presenciar el fin de la transmisión de la dracunculiasis, la filariosis linfática, la poliomielitis, y en las Américas por lo menos, la oncocercosis. Ya se ven éxitos significativos como la cuasi erradicación de la dracunculiasis y paso importantes en contra de otras aflicciones. [Original Spanish version]

The World Health Assembly has chosen some diseases as targets for elimination. There is much …

Risk Preferences And Prenatal Exposure To Sex Hormones For Ladinos, Diego Aycinena, Rimvydas Baltaduonis, Lucas Rentschler

Economics Faculty Publications

Risk preferences drive much of human decision making including investment, career and health choices and many more. Thus, understanding the determinants of risk preferences refines our understanding of choice in a broad array of environments. We assess the relationship between risk preferences, prenatal exposure to sex hormones and gender for a sample of Ladinos, which is an ethnic group comprising 62.86% of the population of Guatemala. Prenatal exposure to sex hormones has organizational effects on brain development, and has been shown to partially explain risk preferences for Caucasians. We measure prenatal exposure to sex hormones using the ratio of the …

An Experimental Study Of Complex-Offer Auctions From Wholesale Energy Markets, Rimvydas Baltaduonis

Economics Faculty Publications

A Payment Cost Minimization auction has been proposed as an alternative to the Offer Cost Minimization auction for use in wholesale electric power markets with an intention to lower procurement cost of electricity. Efficiency concerns have been raised for this proposal while assuming that the true production costs would be revealed to the auctioneer in a competitive market. Using an experimental approach, the study compares the performance of these two complex-offer auctions, controlling for the level of unilateral market power. The analysis finds that neither auction results in allocations that correspond to the true cost revelation. Two auctions perform similarly …

Putting A Human Face On The Minimum Wage, Christopher R. Fee

English Faculty Publications

What is a “livable wage,” and should we strive to raise wages for American workers?

There are lots of conflicting studies and reports. The Congressional Budget Office projects that an increase in the minimum wage from $7.25 an hour to $10.10 an hour would eliminate 500,000 jobs while raising the incomes of nearly 17 million Americans.

Even prominent economists like David Card and David Neumark diametrically disagree on the likely consequences of raising the minimum wage, and their studies of results in New Jersey have consistently yielded conflicting results for decades. [excerpt]

Bootstrap Blues, Hannah M. Frantz

SURGE

Meet David*. In mid-January, he came to the small town Iowa elementary school where I work. David has attended more schools in the two years since he started school than I have in my lifetime. In fact, the school he just moved from only has four days of attendance listed on his record. David moves so often because he’s homeless. His situation is not what we may stereotypically think of as “homeless”—you wouldn’t see him on the streets or even in soup kitchens. Instead, David stays with his mother, and they couch surf from one home to another from week …

Valuation Structure In First-Price And Least-Revenue Auctions: An Experimental Investigation, Diego Aycinena, Rimvydas Baltaduonis, Lucas Rentschler

Economics Faculty Publications

In many auctions the valuation structure involves both private and common value elements. Existing experimental evidence (e.g. Goeree and Offerman in Am. Econ. Rev. 92(3):625–643, 2002) demonstrates that first-price auctions with this valuation structure tend to be inefficient, and inexperienced subjects tend to bid above the break-even bidding threshold. In this paper, we compare first-price auctions with an alternative auction mechanism: the least-revenue auction. This auction mechanism shifts the risk regarding the common value of the good to the auctioneer. Such a shift is desirable when ex post negative payoffs for the winning bidder results in unfulfilled contracts, as is …

The Presumption Of Payment, Christopher J. Dellana

SURGE

At Gettysburg College, students invest a considerable amount of money to make their experiences rewarding for future aspirations. Enrollment at this school, like others, I am sure, seems to breed a special type of student: the students who view themselves as paying and therefore deserving consumers. [excerpt]

Livelihood Security Among Refugees In Uganda: Opportunities, Obstacles, And Physical Security Implications, Karen J. Norris

Student Publications

This research project was designed to investigate the challenges refugees face in securing a livelihood, to understand the extent to which the United Nations, the government of Uganda, and various aid groups are able to assist refugees in achieving self-reliance, and the capacity that refugees have to empower themselves. It also endeavors to expose any disparities between nationality groups, and the impact of these differences. Furthermore, this project aims to explore the impact of refugee livelihood security on regional physical security and community stability.

The study found that despite international and national policies, and efforts by both non-governmental organizations and …

Milking The System: Do Poor People Deserve Fresh Food?, Melanie M. Meisenheimer

SURGE

Poor Americans are all lazy, selfish people who must first prove their worth as human beings if they want to be able to feed their children.

It sounds harsh, stereotypical, and judgmental when you put it like that, and few people would feel comfortable saying that exact phrase. However, it’s a perception of poverty in America that I’ve found still has a strong grip on our way of thinking. [excerpt]

Exploring Relationships Between Global, National And Local Actors: A Case Study Approach To Ingos In Post-Reform Vietnam, Alyssa L. Bosold

Student Publications

In 1986, the Vietnamese government undertook a series of reforms known as doi moi. These reforms were mainly economic adjustments that encouraged globalization through capitalism, international trade, and foreign investment. They restructured Vietnam’s economy from a centrally-planned system to a market economy with a socialist orientation. This study focuses on the political and cultural aspects of globalization after doi moi, and analyzes the development of international non-governmental organizations (INGOs) in Vietnam. Specifically, it seeks to address the following research question: How has the INGO sector changed with increasing globalization in Vietnam after the 1986 doi moi reforms, and what are …

The Minimum Wage, Decent Wages, And Time Sovereignty In The European Union, Kathleen A. Ragon

Student Publications

The minimum wage is a legally mandated relationship between money and time. Traditionally, studies of the minimum wage have focused on the money side of this relationship (e.g. how much do minimum wage workers earn) while ignoring its temporal aspects (e.g. how long someone has to work to receive a particular income). This is a significant oversight because it overlooks the temporal investments that minimum wage workers must make in order to achieve a specific sum of money (e.g. there is a significant temporal difference if a minimum wage worker can achieve an income above a poverty threshold by working …

Political Globalization And Civil War In Former British Colonies, Luke O. Feltz

Student Publications

The purpose of this paper to determine why civil war onset reduces political globalization in former British colonies. I set out by testing the relationship between being a former British colony and civil war presence, demonstrating a positive, though not statistically significant, relationship. I also examine the history of British colonialism. Through setting up specific system of indirect rule, British colonizers created conditions that contributed to intra-state conflict. Furthermore, through constructing a unique institutional system and maintaining ties to its former colonies, the British have created an atmosphere conducive to international political engagement after the onset of civil war. Yet, …

Japan As A Clean Energy Leader, Stefan N. Norbom

Student Publications

Over the past several decades, Japan’s energy strategy had positioned it as the world’s leader in clean and efficient electricity production and usage. This strategy, heavily dependent on nuclear energy, was essentially destroyed by one of history’s largest earthquakes, followed by a tsunami which overwhelmed five nuclear reactors on March 11, 2011. As of April 2012, all of Japan’s 54 nuclear reactors have been shut down and it is uncertain when and how many may be restarted. This paper examines Japan’s options for crafting a new way forward with an energy policy to power the world’s third largest economy while …

The Staffing Of Presidential Assistants: Their Effects On Presidential Success In The House Of Representatives, Nicholas R. Jesteadt

Student Publications

This paper examines the Congressional success of United States Presidents based on the reported Congressional Quarterly Presidential Box Scores. Their individual success is examined as an effect of the senior staff member a President chooses and whether they are chosen from the campaign, personal experience, or previous administrations. It is important for a President to consider the origins of these staffers as these Assistants to the President act as the body of the President’s administration. The econometric analysis presented reveals several interesting results. First, the predominance of a President to choose staff members from his campaign shows no significant impact …

An Attempt To Reshape Capitalism’S Image, Ross A. Nichols

Student Publications

John Stuart Mill is an extremely interesting figure in the history of economics. He was known for his eclecticism and his views on economic theory can best be described as self-contradictory. In this vein was his attempt to formulate a theory of value. Claiming to be a disciple of both Bentham (utility theory of value) and Ricardo (labor theory of value), he sought to combine two rivalry theories of value. While Mill’s attempt ultimately proved futile, it was not because he could not make up his mind. Mill wanted to reshape capitalism’s image. He wanted to reform capitalism, to show …

Power, Race, And The Neglect Of Science: The Hiv Epidemics In Sub-Saharan Africa, Eileen Stillwaggon, Larry Sawers

Economics Faculty Publications

This work addresses racial stereotyping and the effect it has in distorting AIDS policy for sub-Saharan Africa.

Hiv And Concurrent Sexual Partnerships: Modelling The Role Of Coital Dilution, Larry Sawers, Alan G. Isaac, Eileen Stillwaggon

Economics Faculty Publications

Background: The concurrency hypothesis asserts that high prevalence of overlapping sexual partnerships explains extraordinarily high HIV levels in sub-Saharan Africa. Earlier simulation models show that the network effect of concurrency can increase HIV incidence, but those models do not account for the coital dilution effect (nonprimary partnerships have lower coital frequency than primary partnerships).

Methods: We modify the model of Eaton et al (AIDS and Behavior, September 2010) to incorporate coital dilution by assigning lower coital frequencies to non-primary partnerships. We parameterize coital dilution based on the empirical work of Morris et al (PLoS ONE, December …

Concurrent Sexual Partnerships Do Not Explain The Hiv Epidemics In Africa: A Systematic Review Of The Evidence, Larry Sawers, Eileen Stillwaggon

Economics Faculty Publications

The notion that concurrent sexual partnerships are especially common in sub-Saharan Africa and explain the region’s high HIV prevalence is accepted by many as conventional wisdom. In this paper, we evaluate the quantitative and qualitative evidence offered by the principal proponents of the concurrency hypothesis and analyze the mathematical model they use to establish the plausibility of the hypothesis.

We find that research seeking to establish a statistical correlation between concurrency and HIV prevalence either finds no correlation or has important limitations. Furthermore, in order to simulate rapid spread of HIV, mathematical models require unrealistic assumptions about frequency of sexual …

Human Capital, Education, And Entrepreneurs: Evidence From The Yangtze River Delta, Zhining Hu, Jianghuai Zheng, Jialing Wang

Economics Faculty Publications

This paper seeks to examine the relationship between education demand and entrepreneurs in the process of enhancing the growth of human capital in China. We develop a theoretical model that incorporates the important roles played by human capital, education and entrepreneurs. Then, we derive an immigration condition under which the demand for education depends on the existence of entrepreneurs. Finally, we test whether this condition holds true in China, using a panel data set from the Yangtze River Delta which is considered a key barometer of Chinese economy. The empirical results reveal a significant positive relationship between entrepreneurs and education …

An Experimental Study Of The Holdout Problem In A Multilateral Bargaining Game, John J. Cadigan, Pamela Schmitt, Robert Shupp, Kurtis Swope

Economics Faculty Publications

When an economic exchange requires agreement by multiple independent parties, the potential exists for an individual to strategically delay agreement in an attempt to capture a greater share of the surplus created by the exchange. This "holdout problem" is a common feature of the land-assembly literature because development frequently requires the assembly of multiple parcels of land. We use experimental methods to examine holdout behavior in a laboratory bargaining game that involves multi-person groups, complementary exchanges, and holdout externalities. The results of six treatments that vary the bargaining institution, number of bargaining periods, and cost of delay demonstrate that holdout …