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Articles 1 - 14 of 14
Full-Text Articles in Social and Behavioral Sciences
Public Long-Term Care Insurance And The Housing And Living Arrangements Of The Elderly: Evidence From Medicare Home Health Benefits, Gary V. Engelhardt, Nadia Greenhalgh-Stanley
Public Long-Term Care Insurance And The Housing And Living Arrangements Of The Elderly: Evidence From Medicare Home Health Benefits, Gary V. Engelhardt, Nadia Greenhalgh-Stanley
Economics - All Scholarship
We provide empirical evidence on the extent to which long-term care insurance affects the housing and living arrangements of the elderly by examining plausibly exogenous changes in the supply of long-term care insurance through the Medicare program that occurred in the late 1990s. Prior to 1997, Medicare reimbursed home health care agencies on a retrospective-cost basis. Then, starting in October, 1997, as a result of the Balanced Budget Act of 1997 (BBA97), Medicare switched to a system of prospective payments for home health care, which induced state-by-calendar-year variation in the supply of this type of public long-term care insurance. We …
Interest On Bank Reserves And Optimal Sweeping, David D. Vanhoose, Donald H. Dutkowsky
Interest On Bank Reserves And Optimal Sweeping, David D. Vanhoose, Donald H. Dutkowsky
Economics - All Scholarship
This paper utilizes a profit maximizing banking model to analyze sweeping behavior. Comparative statics results indicate that sweeping responds positively to increases in bank loan rates and reserve ratios and negatively to increases in the interest rate on reserves or to exogenous increases in bank deposits or equity. Sweeping generates greater responsiveness in lending to changes in loan rates or the interest rate on reserves and lower responsiveness to exogenous changes in reserve ratios or equity. Empirical analysis of an explicit condition that we derive relating sweeping to the interest rate on reserves suggests with an unchanged reserve requirement, the …
Household Wealth And Heterogeneous Impacts Of A Market-Based Training Program: The Case Of Projoven In Peru, Jose Galdo, Miguel Jaramillo, Veronica S. Montalva, Sonia Moreau
Household Wealth And Heterogeneous Impacts Of A Market-Based Training Program: The Case Of Projoven In Peru, Jose Galdo, Miguel Jaramillo, Veronica S. Montalva, Sonia Moreau
Economics - All Scholarship
This paper analyzes the relationship between households' wealth and heterogeneous treatment impacts for a market-based training program that has benefited more than 40,000 disadvantaged individuals in Peru since 1996. We proxy long-run wealth by a linear index based on 21 household assets, and three main findings emerge. First, we find that voluntary choices among eligibles, rather than administrative choices, play a bigger role in explaining demographic disparities in program participation. Second, quantile treatment effects on the treated suggest important differences in program impacts at different quantiles of earnings, and strong differences in distributional impacts for men and women. Third, both …
Distribution Of Wealth And Interdependent Preferences, Andrew Grodner, Thomas J. Kniesner
Distribution Of Wealth And Interdependent Preferences, Andrew Grodner, Thomas J. Kniesner
Economics - All Scholarship
We examine the socially optimal wealth distribution in a two-person two-good model with heterogeneous workers and asymmetric social interactions where only one (social) individual derives positive or negative utility from the leisure of the other (non-social) individual. We show that the interdependence can effectively counter-act the need to transfer wealth to low-wage individuals and may require them to be poorer by all objective measures. We demonstrate that in the presence of social interactions it can be socially desirable to keep substantial wealth inequality.
The Incidence Of Tobacco Taxation: Evidence From Geographic Micro-Level Data, Andrew Hanson, Ryan S. Sullivan
The Incidence Of Tobacco Taxation: Evidence From Geographic Micro-Level Data, Andrew Hanson, Ryan S. Sullivan
Economics - All Scholarship
This paper uses a recent increase in the state of Wisconsin's tobacco tax as a natural experiment to measure the economic incidence of tobacco taxation. We estimate the economic incidence of tobacco taxation using micro level data on cigarette prices collected from retail locations in Wisconsin and states that share its border. We find that Wisconsin's $1.00 increase in tobacco tax was over-shifted to consumers; they pay the entire amount of the tax as well as a premium of between $0.08 and $0.17 per pack of cigarettes. We use geo-coded data to test if the incidence of the tobacco tax …
Social Interactions In Demand, Andrew Grodner, Thomas J. Kniesner
Social Interactions In Demand, Andrew Grodner, Thomas J. Kniesner
Economics - All Scholarship
We examine theoretically demand in a two-good economy where the demand of one good is influenced by either a spillover effect in the form of an externality from other consumers' choices and or a conformity effect representing a need for making similar choices as others. A positive spillover effect increases the demand for the good with interactions, and a conformity effect makes the demand curve pivot around the average market demand to make demand less price sensitive. The collateral implication is that spillover in consumption increases the associated derived demand for labor and conformity in consumption makes the associated derived …
Can Offshoring Reduce Unemployment?, Devashish Mitra, Priya Ranjan
Can Offshoring Reduce Unemployment?, Devashish Mitra, Priya Ranjan
Economics - All Scholarship
In this paper, in order to study the impact offshoring on sectoral and economywide rates of unemployment, we construct a two-sector, general-equilibrium model in which labor is mobile across the two sectors, and unemployment is caused by search frictions. We find that, contrary to general perception, wage increases and sectoral unemployment decreases due to offshoring. This result can be understood to arise from the productivity enhancing (cost reducing) effect of offshoring. If the search cost is identical in the two sectors, or is higher in the sector which experiences offshoring, the economywide rate of unemployment decreases. When we modify the …
Understanding Declining Mobility And Interhousehold Transfers Among East African Pastoralists, Marieke Huysentruyt, Christopher B. Barrett, John G. Mcpeak
Understanding Declining Mobility And Interhousehold Transfers Among East African Pastoralists, Marieke Huysentruyt, Christopher B. Barrett, John G. Mcpeak
Economics - All Scholarship
We model interhousehold transfers between nomadic livestock herders as the state-dependent consequence of individuals' strategic interdependence resulting from the existence of multiple, opposing externalities. A public good security externality among individuals sharing a social (e.g., ethnic) identity in a potentially hostile environment creates incentives to band together. Self-interested interhousehold wealth transfers from wealthier herders to poorer ones may emerge endogenously within a limited wealth space as a means to motivate accompanying migration by the recipient. The distributional reach and size of the transfer are limited, however, by a resource appropriation externality related to the use of common property grazing lands. …
Fixed-Effect Estimation Of Highly-Mobile Production Technologies, William C. Horrace, Kurt E. Schnier
Fixed-Effect Estimation Of Highly-Mobile Production Technologies, William C. Horrace, Kurt E. Schnier
Economics - All Scholarship
We consider fixed-effect estimation of a production function where inputs and outputs vary over time, space, and cross-sectional unit. Variability in the spatial dimension allows for time-varying individual effects, without parametric assumptions on the effects. Asymptotics along the spatial dimension provide consistency and normality of the marginal products. A finite-sample example is provided: a production function for bottom-trawler fishing vessels in the flatfish fisheries of the Bering Sea. We find significant spatial variability of output (catch) which we exploit in estimation of a harvesting function.
Semiparametric Deconvolution With Unknown Error Variance, William C. Horrace, Chris Parmeter
Semiparametric Deconvolution With Unknown Error Variance, William C. Horrace, Chris Parmeter
Economics - All Scholarship
Deconvolution is a useful statistical technique for recovering an unknown density in the presence of measurement error. Typically, the method hinges on stringent assumptions about the nature of the measurement error, more specifically, that the distribution is entirely known. We relax this assumption in the context of a regression error component model and develop an estimator for the unknown density. We show semi-uniform consistency of the estimator and provide Monte Carlo evidence that demonstrates the merits of the method.
Perspectives On Development In Arid And Semi-Arid East Africa: Results Of A Ranking Exercise, John G. Mcpeak, Cheryl R. Doss, Christopher B. Barrett, Patti Kristjanson
Perspectives On Development In Arid And Semi-Arid East Africa: Results Of A Ranking Exercise, John G. Mcpeak, Cheryl R. Doss, Christopher B. Barrett, Patti Kristjanson
Economics - All Scholarship
This study investigates perspectives on development held by individuals living in arid and semi-arid areas of northern Kenya and southern Ethiopia. Overall, we find that interventions to meet basic human needs (access to water, health care and education) are the most highly desired. Projects supporting pastoral livelihoods (livestock health and marketing-oriented, restocking and conflict resolution) are second most important, followed by those that support alternatives to pastoralism (cropping, other income generating activities). Econometric analysis indicates that variation in rankings is mostly driven by variation across communities rather than across households within communities, lending support to community-based approaches to priority setting.
Testing For Random Effects And Spatial Lag Dependence In Panel Data Models, Badi Baltagi, Long Liu
Testing For Random Effects And Spatial Lag Dependence In Panel Data Models, Badi Baltagi, Long Liu
Economics - All Scholarship
This paper derives a joint Lagrange Multiplier (LM) test which simultaneously tests for the absence of spatial lag dependence and random individual effects in a panel data regression model. It turns out that this LM statistic is the sum of two standard LM statistics. The first one tests for the absence of spatial lag dependence ignoring the random individual effects, and the second one tests for the absence of random individual effects ignoring the spatial lag dependence. This paper also derives two conditional LM tests. The first one tests for the absence of random individual effects without ignoring the possible …
International Trade And Unemployment: Theory And Cross-National Evidence, Pushan Dutt, Devashish Mitra, Priya Ranjan
International Trade And Unemployment: Theory And Cross-National Evidence, Pushan Dutt, Devashish Mitra, Priya Ranjan
Economics - All Scholarship
In this paper, we present two alternative models of trade and unemployment, in which unemployment is generated through a search mechanism. The basic framework of the first model is Ricardian in that the only factor of production is labor and trade is based on relative technological differences. The second model has a Heckscher-Ohlin (H-O) framework with two factors of production, namely labor and capital that are intersectorally mobile. Using cross-country data on various measures of trade policy, unemployment and a variety of controls, we find strong evidence for the Ricardian prediction that unemployment and trade openness are negatively related (protection …
Entrepreneurship And Urban Success: Toward A Policy Consensus, Zoltan J. Acs, Edward L. Glaeser, Robert E. Litan, Lee Fleming, Stephan J. Goetz, William R. Kerr, Steven Klepper, Stuart S. Rosenthal, Olav Sorenson, William C. Strange
Entrepreneurship And Urban Success: Toward A Policy Consensus, Zoltan J. Acs, Edward L. Glaeser, Robert E. Litan, Lee Fleming, Stephan J. Goetz, William R. Kerr, Steven Klepper, Stuart S. Rosenthal, Olav Sorenson, William C. Strange
Economics - All Scholarship
Like all politics, all entrepreneurship is local. Individuals launch firms and, if successful, expand their enterprises to other locations. But new firms must start somewhere, even if their businesses are conducted largely or exclusively on the Internet. Likewise, policymakers at local and state levels increasingly recognize that entrepreneurship is the key to building and sustaining their economies' growth. Although this is a seemingly obvious proposition, it represents something of a departure from past thinking about how local, state, or regional economies grow. Historically, state and local policymakers have put their energies into trying to attract existing firms from somewhere else, …