Social and Behavioral Sciences Commons^™

The Personal Saving Rate: Data Revisions And Forecasts, Dean Croushore, Pedro Del Monaco Santos

Economics Faculty Publications

Revisions to the U.S. personal saving rate are very large and may be predictable. We decompose the revisions of the personal saving rate into those caused by revisions to income and those caused by revisions to household outlays. We use our findings to explore the forecastability of future revisions of the personal saving rate.

Monopsony And Salary Suppression: The Case Of Major League Soccer In The United States, John Twomey, James Monks

Economics Faculty Publications

Top tier professional soccer in the United States is operated by Major League Soccer (MLS). The MLS was established and operates under a single entity structure, such that all players negotiate and sign contracts with the league rather than with individual teams. This monopsonistic structure was designed to eliminate competition for players across teams within the league and thus allow the league to suppress player salaries. This paper investigates how effective the MLS has been in achieving this goal and finds that the MLS devotes only about 25 percent of its revenues to player salaries, compared to 50 to 60 …

Using Real World Applications To Policy And Everyday Life To Teach Money And Banking, Dean D. Croushore

Economics Faculty Publications

Teaching a course in money and banking can be simultaneously challenging and easy. It is challenging because teaching the course well often requires a fair amount of institutional knowledge, which an instructor may not have acquired in graduate school. However, it is easy because the course can be geared to the coverage of current events, so economic data releases and the state of the economy help the instructor develop a new course every semester and produce an interesting lecture every day.

There are many different ways to teach a course on money and banking. At most schools, the only prerequisite …

An Empirical Examination Of The Impact Of College Financial Aid On Family Savings, James Monks

Economics Faculty Publications

The system of distributing financial aid dollars using needs analysis formulae implicitly imposes a financial aid tax on assets. Existing studies provide mixed evidence of the influence of this implicit tax on assets on wealth accumulation. This paper attempts to contribute to the literature on this topic by examining the sensitivity of results to various assumptions, specifications, and categories of assets, using more recent data that allows for the incorporation of recent developments in financial aid and college costs. I find much weaker evidence than existing studies that college financial aid has a significant impact on family savings.

Government Financial Policy And Capital, Dean D. Croushore

Economics Faculty Publications

Economists have long been concerned about the best way to finance government deficits. Finding the proper fiscal policy and monetary policy mix is a crucial decision. When government debt grows too fast, interest rates rise and capital is crowded out. If the money growth rate is excessive, inflation occurs.

The study of this issue at the theoretical level requires a model which incorporates the following features: (1) modeling money and bonds as endogenous financial assets, whose rates of return are determined in general equilibrium, (2) examination of the utility maxi mization decisions of individuals, so that welfare analysis of alternative …