Social and Behavioral Sciences Commons^™

Introduction: The History Of Economics As A History Of Practice, Harro Maas, Tiago Mata, John B. Davis

Economics Faculty Research and Publications

No abstract provided.

Subtle Discrimination In The Rental Housing Market: Evidence From E-Mail Correspondence Of Landlords, Andrew Hanson, Zackary Hawley, Aryn Taylor

Economics Faculty Research and Publications

We find that landlords practice subtle discrimination in the rental housing market through the use of language associated with describing and viewing a unit, inviting further correspondence, making a formal greeting, and using polite language when replying to e-mail inquiries from a white name more often than to an African American name, they also send longer e-mails and respond quicker to white names.

(Wp 2011-10) Obituary: Warren J. Samuels (1933-2011), John Davis

Economics Working Papers

This paper examines the research and career of the late Warren J. Samuels (1933-2011), an influential institutionalist economist in the Wisconsin John Commons tradition and well-known historian and methodologist of economics. It discusses four main positions Samuels developed and held regarding the history of economic thought as intellectual history, the theory of economic policy, methodological pluralism, and the invisible hand doctrine. Among the views considered are: his matrix approach to meaningfulness, his characterization of intellectual systems, his emphasis on the centrality of the social order, his theory of economic policy as a neglected subject, his discourse analysis of language, his …

The Incidence Of The Mortgage Interest Deduction: Evidence From The Market For Home Purchase Loans, Andrew Hanson

Economics Faculty Research and Publications

This article examines the incidence of the largest housing-related subsidy in the federal budget, the home mortgage interest deduction (MID). The author uses the difference in interest rates for loans made around the MID limit to identify the incidence of the subsidy. Using data on individual mortgages originated in 2004, the author estimates that for every $1,000 borrowed without the MID, the interest rate on the entire loan decreases by between 3.3 and 4.4 percent. Results suggest that lenders capture between 9 and 17 percent of the subsidy created by the home MID through higher mortgage interest rates.

Review Of Identity Economics By Akerlof And Kranton, John B. Davis

Economics Faculty Research and Publications

No abstract provided.

(Wp 2011-09) The Development Effects Of Natural Resources: A Geographical Dimension, Fabrizio Carmignani, Abdur Chowdhury

Economics Working Papers

Despite the recent growth resurgence, Sub-Saharan Africa (SSA) remains the poorest region in the world. At the same time, it is a region that heavily relies on natural resources. In this paper we investigate the extent to which the second fact helps explain the first one. The distinctive feature of our study is that we take a geographical perspective and allow the effect of natural resources to differ across regions of the world. Our findings suggest that (i) the effect of natural resource intensity on per-capita income is positive and significant in general, but almost negligible and possibly negative in …

(Wp 2011-08) Identity, John Davis

Economics Working Papers

This chapter introduces the economics and identity literature, and discusses the relationship between social identity and personal identity. It distinguishes categorical and relational types of social identities, and argues that the former are more readily associated with instrumentally rational behavior, while the latter, which involve close contact with others in roles and social positions, are more readily associated with behavior in which individuals unilaterally reciprocate the actions of others – what Bruni terms unilateral altruism, which involves a non-instrumental or deontological type of motivation. The chapter also distinguishes two views of personal identity as relational in nature, Bachrach's game-theoretic approach …

Winning In Ncaa Womens Soccer: Does The Gender Of The Coach Matter?, Brian Brush, Gregory Naples

Economics Faculty Research and Publications

While women’s intercollegiate soccer has grown rapidly over the past three decades, men still hold nearly two-thirds of all head coaching positions in NCAA Division I women’s soccer programs. This paper explores whether the gender of the head coach affects success in winning games. After considering various reasons why gender might matter, we undertake a multiple regression analysis using data from the 2001-2002 season to answer this question empirically. Controlling for other factors that would be expected to influence a team’s success, including the quality of the head coach, the level of institutional support and the tradition of the program, …

(Wp 2011-06) Do Stock Market Risk Premium Respond To Consumer Confidence?, Abdur Chowdhury

Economics Working Papers

During the 2007-9 Great Recession, the risk premium associated with U.S. stocks sharply increased and has since remained significantly higher compared to its range during the last 40 years. The increase in the equity risk premium has led many analysts to believe that risk aversion among stock investors has moved to a permanently higher range in recent years. Our empirical findings show that the recent increase in the equity risk premium primarily reflects a temporary collapse in consumer confidence. As long as the consumer confidence in the sustainability of economic recovery remains low, today's elevated risk premium would persist. Once …

(Wp 2011-07) Factoring Emerging Markets Into The Relationship Between Global Liquidity And Commodities, Steven Landgraf, Abdur Chowdhury

Economics Working Papers

What caused the mid-2000s world commodity price “bubble” and the recent commodity price growth during the economic recovery after the 2007-2009 recession? The classical “supply and demand” interpretation offered by some observers suggests that rapid global industrial growth over the past decade – the so-called “demand channel” – is the key driver of price growth. Others have argued that recent bouts of commodity price growth were directly related to central banks, especially the U.S. Federal Reserve, injecting too much money or “liquidity” into the financial system. They assert that high commodity prices are a result of excessively loose monetary policy. …

Predictive Duty Cycle Adaptation For Wireless Camera Networks, Paul J. Shin, Henry Medeiros, Johnny Park, Avinash Kak

Economics Faculty Research and Publications

Wireless sensor networks (WSN) typically employ dynamic duty cycle schemes to efficiently handle different patterns of communication traffic in the network. However, existing duty cycling approaches are not suitable for event-driven WSN, in particular, camera-based networks designed to track humans and objects. A characteristic feature of such networks is the spatially-correlated bursty traffic that occurs in the vicinity of potentially highly mobile objects. In this paper, we propose a concept of indirect sensing in the MAC layer of a wireless camera network and an active duty cycle adaptation scheme based on Kalman filter that continuously predicts and updates the location …

(Wp 2011-05) 'Til Recession Do Us Part: Booms, Busts, And Divorce In The United States, Abdur Chowdhury

Economics Working Papers

A general hypothesis regarding the impact of permanent income levels and business cycle fluctuations on divorce rate at the state level in the United States is analyzed in the paper. Using data for 45 states over the 1978-2009 sample period, the paper shows that the higher the level of transitory income, the higher is the incidence of divorce. In other words, divorce is pro-cyclical. Why do divorce decrease during recession and increase during expansion? When an economy is in crisis and people’s incomes are low, the cost of divorce will prevent a couple from divorcing irrespective of the quality of …

In High School And Pregnant: The Importance Of Educational And Fertility Expectations For Subsequent Outcomes, Olga Yakusheva

Economics Faculty Research and Publications

This study uses the High School and Beyond data (1980–1992) to examine the importance of educational and fertility expectations in explaining the achievement gap of adolescent mothers for over 5,500 young women from different socioeconomic backgrounds. Using a non-parametric local propensity score regression, the study finds that the economic disadvantage associated with having a child in high school is particularly large in poor socioeconomic environments; however, this disadvantage is a result of preexisting differences in the educational and fertility expectations and is not because of a diminished capacity of the socioeconomic environment to mediate the effect of an unplanned childbirth. …

(Wp 2011-04) Inflation And Inflation-Uncertainty In India: The Policy Implications Of The Relationship, Abdur Chowdhury

Economics Working Papers

Inflation and its related uncertainty can impose costs on real economic output in any economy. This paper analyzes the relationship between inflation and inflation uncertainty in India. Initial estimates show the inflation rate to be a stationary process. The maximum likelihood estimates from the GARCH model reveal strong support for the presence of a positive relationship between the level of inflation and its uncertainty. The Granger causality results indicate a feedback between inflation and uncertainty. With Granger causality running both ways, the Friedman-Ball and Cukierman-Meltzer hypotheses hold simultaneously in India. It provides strong support to the notion of an opportunistic …

Using Historical Simulation To Compare The Accuracy Of Nine Alternative Methods Of Estimating The Present Value Of Future Lost Earnings, Brian Brush

Economics Faculty Research and Publications

To estimate the present value of future lost earnings, forensic economists must employ some method to determine the interest rate and the earnings growth rate, or the net discount rate derived from them, to use in that estimation. Historical simulation can be used to determine how accurate any such method would have been had it been used in the past. In this paper, historical simulation is used to compare the accuracy of nine different methods of choosing the net discount rate to estimate present value for numerous 30-, 20- and 10-year loss periods. These methods include historical averages, current rates, …

On The Relative Accuracy Of Discounting Based On Risk-Free And Risky Portfolios, Brian Brush

Economics Faculty Research and Publications

The degree of risk that should be incorporated into the net discount rate that is used to estimate the present value of future lost earnings has been the subject of controversy. While some forensic economists insist that a risk-free discount rate must be used, others have offered economic arguments that support use of a risk-adjusted rate. Historical simulation studies have found that, when the discount rate is based on risk-free or low-risk securities, the historical averages method of estimating present value is subject to large forecast errors due to significant changes in net discount rates over time. This study explores …

Fdi, Education, And Economic Growth: Quality Matters!, Miao Wang, M. C. Sunny Wong

Economics Faculty Research and Publications

In this paper, we revisit the results from the influential study by Borensztein et al. (Journal of International Economics 45:115–135, 1998), which argues that inward foreign direct investment (FDI) promotes the economic growth in a less developed host country only when the host country obtains a threshold level of secondary schooling. Borensztein et al. (Journal of International Economics 45:115–135, 1998) only focus on the quantity of education. We take into consideration both the quantity and the quality of education. We adjust the original schooling data in Borensztein et al. (Journal of International Economics 45:115–135, 1998) by two quality of education …

(Wp 2011-03) State Government Revenue And Expenditures: A Bootstrap Panel Analysis, Abdur Chowdhury

Economics Working Papers

The current fiscal crises that most states in the United States are facing are generally the result of a severe macroeconomic downturn combined with a limited ability of the states to respond to such shocks. States are facing increased demand for public services at the same time revenue is falling. In this context, this paper explores the issue of temporal priority between government expenditures and revenue at the state and local levels. The results show that there is no uniform relationship between government revenue and spending across different states in the US. In fact, about 40% of the states show …

The Poverty Of Wealth And Income In The United States, Luke E. G. Feudner

Professional Projects

An alternative poverty rate was calculated using poverty thresholds from the U.S. Census Bureau to assess income poverty and a similar set of thresholds at four months’ of the poverty threshold for annual income to assess wealth (i.e. net worth) poverty. Using point estimates derived from the multiple imputations of the Survey of Consumer Finances (SCF) between the years of 1989 and 2007, the findings revealed the percentage of households in poverty by both measures was 6% in 2007 compared to 11.1% of households experiencing poverty of income only and 22.4% experiencing a poverty of at least one of the …

Utilization Of Employment Tax Credits: An Analysis Of The Empowerment Zone Wage Tax Credit, Andrew Hanson

Economics Faculty Research and Publications

This paper provides estimates of utilization for the Empowerment Zone (EZ) wage tax credit, a subsidy claimed by employers who operate in and hire residents of federally designated areas experiencing economic distress. The EZ credit is currently the largest employer-based wage tax credit in the federal tax code in terms of dollars claimed, with almost $250 million claimed in 2002. I show that about 6.4 percent (and at least 3.5 percent) of the working age population was claimed under the EZ wage credit in 1999. In addition, I estimate that 24.2 percent (and at least 13.1 percent) of those employed …

An Exploration Of Alternative Means Of Financial Sustainability For The Church In Tanzania, East Africa: A Donor And Donee Perspective, Juvenalis Baltazar Asantemungu

Dissertations (1934 -)

This academic enterprise is a result of careful research and detailed work that was done for the benefit of the Church in Tanzania in particular but with general implications to the Church in Africa and the Church Universal. According to Kalilombe (2002), "Self-reliance of the local Church in Africa remains a crucial subject matter" (p.2). The Catholic Church in Tanzania, as is true in most of other Churches in Sub-Saharan Africa, has traditionally been dependent to some extent on financial gifts and foreign aid (donations). However, as the financial needs of the rapidly growing dioceses are increasing, subsidies and donations …

Inward Fdi, Remittances, And Out-Migration, Miao Grace Wang, M. C. Sunny Wong

Economics Faculty Research and Publications

In this study, we look at the relationship between remittances received at home, inward Foreign Direct Investment (FDI) and out-migration of individuals with different levels of education. Using the bilateral international migration data in 1990 and 2000, we find that inward FDI tends to deter the out-migration of individuals with secondary and tertiary education, but has no significant impact on the out-migration of individuals with primary education. In addition, remittances received at home induce the out-migration of individuals with primary education, but not the out-migration of individuals with secondary and tertiary education. The stock of existing migrants in a foreign …

Four Scenarios Of Development And The Role Of Economic Policy, Fabrizio Carmignani, Abdur Chowdhury

Economics Faculty Research and Publications

We ask which economic policies can help a country create the most favourable conditions for development. We observe that the dynamics of several development indicators can be grouped into four clusters, each cluster corresponding to a different combination of growth and changes in inequality. Based on this observation, we define four different development scenarios and use limited dependent variable regressions to study how structural and policy factors affect a country's probability to achieve the most (or the least) favourable of these scenarios. Our results point to a comforting picture: through the choice of appropriate policies countries can effectively increase their …

The Atlanta Empowerment Zone: Description, Impact, And Lessons For Evaluation, Rachana Bhatt, Andrew Hanson

Economics Faculty Research and Publications

No abstract provided.

Do Landlords Discriminate In The Rental Housing Market? Evidence From An Internent Field Experiment In U.S. Cities, Andrew Hanson, Zackary Hawley

Economics Faculty Research and Publications

This paper tests for racial discrimination in the rental housing market using matched-pair audits conducted via e-mail for rental units advertised on-line. We reveal home-seekers’ race to landlords by sending e-mails from names with a high likelihood of association with either whites or African Americans. Generally, discrimination occurs against African American names; however, when the content of the e-mail messages insinuates home-seekers with high social class, discrimination is non-existent. Racial discrimination is more severe in neighborhoods that are near “tipping points” in racial composition, and for units that are part of a larger building.

(Wp 2011-02) The Change In Sraffa's Philosophical Thinking, John Davis

Economics Working Papers

The availability of Piero Sraffa’s unpublished manuscripts and correspondence at Trinity College Library, Cambridge, has made it possible to begin to set out a more complete account of Sraffa’s philosophical thinking than previously could be done with only his published materials and the few comments and suggestions made by others about his ideas, especially in connection with their possible impact on Ludwig Wittgenstein’s later thinking. This makes a direct rather than indirect examination of Sraffa’s philosophical thinking possible, and also shifts the focus from his relationship to Wittgenstein to his own thinking per se. I suggest that the previous focus, …

The Effect Of Location Based Tax Incentives On Establishment Location And Employment Across Industry Sectors, Andrew Hanson, Shawn Rohlin

Economics Faculty Research and Publications

This article examines the potential for location-based employment tax incentives to have a differential effect on establishment location and employment across industry sectors. The authors model the differential effect of the location-based federal Empowerment Zone (EZ) wage tax credit on equilibrium labor and total cost savings across industry sectors. The model guides the empirical work, as the authors test the effect of the program across industry sectors. The empirical analysis shows that location-based tax incentives have a positive effect on firm location in some of the industries their model predicts and a negative effect in industries that could be crowded …

Leisure And Happiness In The U.S.: Evidence From Survey Data, Miao Wang, M. C. Sunny Wong

Economics Faculty Research and Publications

We study the relationship between leisure and happiness, controlling for income and other determinants. Using survey data for the United States in 2007, our results show that certain aspects of leisure, such as leisure activity satisfaction, have a significant impact on individual well-being whereas the amount of leisure time may not play an important role in affecting happiness.

Environmental Influences On Young Adult Weight Gain: Evidence From A Natural Experiment, Kandice A. Kapinos, Olga Yakusheva

Economics Faculty Research and Publications

Objectives: This study investigated the importance of environmental influences in explaining weight gain and related behaviors among freshman college students.

Methods: We exploited a natural experiment that takes place on most college campuses in the United States - randomized dormitory assignments. We estimated the effects of living in dormitories with varying physical environment characteristics on weight gain and related behaviors (daily number of meals and snacks, weekly frequency of exercise) among randomly assigned freshman students.

Results: We found strong evidence linking weight and related behaviors to individual dormitories, as well as to specific characteristics of the dormitories. On average, students …

Fdi And Human Capital In The Usa: Is Fdi In Different Industries Created Equal?, Miao Wang

Economics Faculty Research and Publications

We use data in the USA to study the effect of inward Foreign Direct Investment (FDI) in different sectors/industries on the state-level human capital, measured by the average years of tertiary schooling. We find that inward manufacturing FDI tends to lower the tertiary schooling in a host state while information FDI increases the tertiary schooling in a host state.