Social and Behavioral Sciences Commons^™

Bandwagon, Underdog, And Political Competition: The Uni-Dimensional Case, Woojin Lee

Woojin Lee

The present paper studies the effects of bandwagon and underdog on the political equilibrium of two-party competition models. We adapt the generalized Wittman-Roemer model of political competition for voter conformism, which views political competition as the one between parties with factions of the opportunists and the militants that Nash-bargain one another, and consider three special cases of the general model: the Hotelling-Downs model, the classical Wittman-Roemer model, and what we call the ideological-party model. In the Hotelling-Downs model, where the militants have no bargaining power in both parties, political parties put forth an identical policy at the equilibrium, regardless of …

The Innovative Organisation, Kwanghui Lim

Kwanghui Lim

No abstract provided.

Military Conquest And Sovereign Debt: Chile, Peru And The London Bond Market, 1876–1890, Kirsten Wandschneider, Richard Sicotte, Catalina Vizcarra

Kirsten Wandschneider

As a result of the War of the Pacific (1879–1883), Chile conquered Peruvian and Bolivian territories rich in nitrates and guano. We conduct econometric tests for structural breaks in the time series of the government bonds for Chile and Peru between 1876 and 1890 in order to examine the effects of the changes in resource endowments on the investors’ perceptions of the risk premia of Chilean and Peruvian securities. Our results reveal that investors were extremely pessimistic about the prospects of Chilean, and especially Peruvian debt prior to the war. Early Chilean victories that anticipated the transfer of the richly …

Offshoring And Labor Market Outcomes In The Presence Of Collective Bargaining, Priya Ranjan

Priya Ranjan

This paper studies the implications of offshoring for unemployment and wages in a search unemployment framework when the wage is determined by collective bargaining. It shows that there is a non-monotonic relationship between the cost of offshoring and unemployment but the relationship between the cost of offshoring and wage is monotonic. Starting from a high cost of offshoring, a decrease in the cost of offshoring reduces unemployment first and then increases it. The wage is monotonically increasing in the cost of offshoring. Comparing autarky equilibrium with offshoring equilibrium, it finds that for a large range of the cost of offshoring, …

Are Update Volume 14, Number 1, Richard Sexton, Robert Stavins, David Victor, Matthew Kahn, Christopher Knittel, Dan Sumner, John Rosen-Molina

Matthew E Kahn

California’s Climate Change Policy: The Economic and Environmental Impacts of AB 32

AB 32 and Climate Change: The National Context of State Policies for a Global Commons Problem

The Political Context for California’s Climate Change Policy

The Political Economy of Climate Change Legislation: An Economist’s Perspective

Economic Models of AB 32: An Evaluation

Impacts of AB 32 on Agriculture

The Importance Of Financial Market Development On The Relationship Between Loan Guarantees For Smes And Local Market Employment Rates, Ben Criag, William Jackson, James Thomson, Craig Armstrong

James B Thomson

We empirically examine whether a major government intervention in the small firm credit market yields significantly better results in markets that are less financially developed. The government intervention that we investigate is SBA guaranteed lending. The literature on financing small and medium size enterprises (SMEs) suggests that small firms may be exposed to a particular type of market failure associated with credit rationing. And, SMEs in markets that are less financially developed will likely face a greater degree of this market failure. To test our hypothesis we use the level of bank deposits per capita as our relative measure of …

Effects Of The Financial Crisis And Great Recession On American Households, Michael Hurd, Susann Rohwedder

Susann Rohwedder

In this paper we present evidence from high-frequency data collections dedicated to tracking the effects of the financial crisis and great recession on American households. These data come from surveys that we conducted in the American Life Panel – an Internet survey run by RAND Labor and Population. The first survey was fielded at the beginning of November 2008, immediately following the large declines in the stock market of September and October 2008. The next survey followed three months later in February 2009. Since May 2009 we have collected monthly data on the same households. This paper shows the levels …

The Effects Of The Economic Crisis On The Older Population, Michael Hurd, Susann Rohwedder

Susann Rohwedder

We study the effects of the 2007-2009 recession on the population age 55 and older. Households in and near retirement have suffered sizeable losses in assets as a result of the economic crisis. There are a number of ways in which households might respond: reduce spending and with that increase saving, work longer, and/or bequeath less. Using longitudinal data from the Health and Retirement Study and its supplemental surveys, we find that all of these adjustments have been important.

The Effect Of The Risk Of Out-Of-Pocket Spending For Health Care On Economic Preparation For Retirement, Michael Hurd, Susann Rohwedder

Susann Rohwedder

After retirement, the primary sources of uncertainty with respect to an individual’s economic status are longevity, investment outcomes and out-of-pocket spending on health care. In previous work, we estimated economic preparation for retirement, taking into account the risk of living to an advanced old age and the concomitant risk of running out of resources. But while we accounted for the average level out-of-pocket spending for health care, we did not account for the risk of out-of-pocket spending. In this paper we augment our model for this omission. We find that the risk of out-of-pocket health care spending reduces economic preparation …

Institutions Matter: Why The Herder Problem Is Not A Prisoner's Dilemma, Peter Grossman, Daniel Cole

Peter Z. Grossman

In the game theory literature, Garrett Hardin’s famous allegory of the “tragedy of the commons” has been modeled as a variant of the Prisoner’s Dilemma, labeled the Herder Problem (or, sometimes, the Commons Dilemma). This brief paper argues that important differences in the institutional structures of the standard Prisoner’s Dilemma and Herder Problem render the two games different in kind. Specifically, institutional impediments to communication and cooperation that ensure a dominant strategy of defection in the classic Prisoner’s Dilemma are absent in the Herder Problem. Their absence does not ensure that players will achieve a welfare-enhancing, cooperative solution to the …

Derivative Pricing Using Multivariate Affine Generalized Hyperbolic Distributions, José Fajardo, Aquiles Farias

José Fajardo

In this paper we use multivariate affine generalized hyperbolic (MAGH) distributions, introduced by Schmidt et al. (2006), to show how to price multidimensional derivatives when the underlying asset follows a MAGH distribution. We also illustrate the approach using market data from the BOVESPA (São Paulo Stock Exchange) and the exchange rate of the Brazilian Real vs. US Dollar to price some multidimensional derivatives.

Statistical Arbitrage With Default And Collateral, José Fajardo, Ana Lacerda

José Fajardo

This paper studies the implications of the absence of statistical arbitrage opportunities in a two-period incomplete market economy where default is allowed but there are collateral requirements. Modified versions of the fundamental theorem of asset pricing are obtained.

English Skills Raise Wages For Some, Not All, In India, Nishith Prakash, Aimee Chin, Mehtabul Azam

Nishith Prakash

Does it pay to speak English? This column presents evidence from India that being fluent in English increases the hourly wages of men by 34% and of women by 22%. But the effects vary. Returns are higher for older and more educated workers and lower for less educated, younger workers, suggesting that English is becoming a complement to education.

Left Behind By Design: Proficiency Counts And Test-Based Accountability, Derek Neal, Diane Schanzenbach

Diane Whitmore Schanzenbach

We show that within the Chicago Public Schools, both the introduction of NCLB in 2002 and the introduction of similar district-level reforms in 1996 generated noteworthy increases in reading and math scores among students in the middle of the achievement distribution but not among the least academically advantaged students. The stringency of proficiency requirements varied among the programs implemented for different grades in different years, and our results suggest that changes in proficiency requirements induce teachers to shift more attention to students who are near the current proficiency standard.

U.S. Energy Policy And The Presumption Of Market Failure, Peter Grossman

Peter Z. Grossman

The article presents an analysis of U.S. energy policy, focusing on the question of whether it is able to correct market failures in terms of alternative energy sources. The question of whether any such market failures exist is said to be a separate question, and an argument is presented that governments generally are not competent to fix such problems even when they do exist. A discussion of U.S. energy policy from the early 1970s to the 21st century is presented. Programs designed to encourage technological innovations such as biofeuls, nuclear fusion, and electric vehicles are analyzed.

The Jec Revisited: Did Debt Undermine Stability?, Peter Grossman, Kathy Paulson Gjerde

Kathy A. Paulson Gjerde

The Joint Executive Committee (JEC), one of the most studied cartels in all of economics, was at best partially successful at maintaining collusion. The railroad cartel faced frequent breakdowns and re-contracting efforts. This paper considers the effects that large capital debt may have had on the members of the JEC. The JEC is compared to the express cartel of the period in which all firms were creditors. The latter had no breakdowns during the same period. It is shown through a small modification in an oligopolistic supergame that debt-burdened firms are Jess likely to maintain a stable cartel agreement than …

Knowledge, Capabilities And Manufacturing Innovation: A Us-Europe Comparison, Stephen Roper, Jan Youtie, Philip Shapira, Andrea Fernandez-Ribas

Andrea Fernandez-Ribas

This paper presents a comparative analysis of factors contributing to the innovation performance of manufacturing firms in Georgia (USA), Wales (UK), the West Midlands (UK), and Catalonia (Spain). Enabled by comparable survey data, multivariate probit models are developed to estimate how various types of firms’ innovative activities are influenced by links to external knowledge sources, internal resources, absorptive capacity, and public innovation support. The results suggest the potential for mutual learning. For the European study regions there are insights about how universities in Georgia support innovation. For Georgia and Catalonia there are lessons from UK firms about better capturing potential …

Recent Literature On Taxable-Income Elasticities, Seth Giertz

Seth H Giertz

This paper reviews the literature on taxable-income elasticities, focusing primarily on empirical studies examining the U.S. tax changes of 1981, 1986, 1990, and 1993 and the bracket creep of the late 1970s and early 1980s. The paper first provides background on the importance of the elasticity of taxable income both for forecasting income tax revenue and for assessing the efficiency implications of tax rate changes. It then discusses the major methodological issues and obstacles before delving into the literature. The paper emphasizes the different methodologies employed and the sensitivity of estimates to an array of factors, including sample selection, the …

North American Futures: Canadian & U.S. Perspectives, Managing The Arctic, David Caron

David D. Caron

Presentation and discussion of issues relevant to balanced Arctic exploration, multilateral cooperation policy, growth and development and political-economic perspectives.

Market Symmetry In Time Changed Brownian Models, José Fajardo, Ernesto Mordecki

José Fajardo

In this paper we examine which Brownian subordination with drift exhibits the symmetry property introduced by Fajardo and Mordecki [2006. Quantitative Finance 6, 219–227]. We find that when the subordination results in a Lévy process, a necessary and sufficient condition for the symmetry to hold is that the drift must be equal to-1/2. Also, we derive explicit conditions to test whether the NIG, CGMY and Meixner processes are symmetric or not. Finally, we perform some tests with real financial data.

The Effect Of Place Of Origin On The Relative Earnings Of Immigrant Women, Michael C. Seeborg, Mahi Garg

Michael Seeborg

This paper explores the earnings differentials between female immigrants from 14 places of origin when compared to each other and a number of other groups. The very large differences in average earnings between female immigrant groups are found to be largely due to human capital and family characteristic differences. The study employs OLS regression to make earnings comparisons between immigrant women from each of the 14 places of origin to three reference groups. We find that although female immigrants from most countries are doing well relative to female natives, they fall significantly behind native males and male immigrants, even after …

Preliminary Findings From The New Leaders For New Schools Evaluation, Paul Heaton

Paul Heaton

Effective school leadership is widely seen as a key determinant of student achievement, yet it remains unclear what constitutes an effective principal. To address the need to develop new principals to lead urban schools, the New Leaders for New Schools organization was established with the goal of ensuring high academic achievement for all students by attracting, preparing, and supporting leaders for urban public schools. This working paper presents preliminary findings on the impact of attending a school led by a K-8 school led by a New Leader. Using longitudinal student-level data collected from the six cities in which New Leaders …

The Effects Of The Affordable Care Act On Workers' Health Insurance Coverage, Christine Eibner, Peter Hussey, Federico Girosi

Christine Eibner

No abstract provided.

Not Enough Fruit And Vegetables Or Too Many Cookies, Candies, Salty Snacks, And Soft Drinks?, Roland Sturm, Deborah Cohen, Tom Farley, Molly Scott, R Bluthenthal

Roland Sturm

No abstract provided.

What Do We Know About Contracting Out In The United States? Evidence From Household And Establishment Surveys, Matthew Dey, Susan Houseman, Anne Polivka

Susan N. Houseman

No abstract provided.

Modeling Health Care Policy Alternatives, Jeanne Ringel, Christine Eibner, Federico Girosi, Amado Cordova, Elizabeth Mcglynn

Christine Eibner

No abstract provided.

Review Of Economics Of Forest Resources, Sorada Tapsuwan

Sorada Tapsuwan

No abstract provided.

On The Intergenerational Persistence Of Work Hours, Manuel Toledo

Manuel E Toledo

This paper studies the intergenerational persistence of work hours. In particular, I look at the correlation of hours between fathers and sons in the U.S. Using data from the Panel Study of Income Dynamics, I find a strong persistence in the permanent component of hours worked. I investigate the extent this correlation is explained by (i) persistence in wages, (ii) correlation in leisure preferences, and (iii) intergenerational wealth transfers. I also examine the role of work effort on the transmission of earnings across generations. To this end I provide a quantitative model of intergenerational transmission of human capital and wealth.

Bees In America: How The Honey Bee Shaped A Nation, Tammy Horn

Tammy Horn

" Honey bees--and the qualities associated with them--have quietly influenced American values for four centuries. During every major period in the country's history, bees and beekeepers have represented order and stability in a country without a national religion, political party, or language. Bees in America is an enlightening cultural history of bees and beekeeping in the United States. Tammy Horn, herself a beekeeper, offers a varied social and technological history from the colonial period, when the British first introduced bees to the New World, to the present, when bees are being used by the American military to detect bombs. Early …

Tort Law And Probabilistic Litigation: How To Apply Multipliers To Address The Problem Of Negative Value Suits, Ben Depoorter

Ben Depoorter

This Article advances a proposal that brings to life valuable lawsuits that litigation costs currently discourage. Our proposal converts claims with negative expected values into positive expected value claims by implementing a novel system involving flexible conditional multipliers. Our proposal has two components. First, under the proposed system a plaintiff is allowed to select a damage multiplier that determines the amount of damages the plaintiff will receive if the litigation is successful. Second, courts select cases for litigation randomly with a probability inverse to the multiplier the plaintiff selected.