Economics Commons^™

The Pittsburg Micropolitan Area Economic Report, Quarter 3, 2019, Pittsburg State University. Gladys A. Kelce College Of Business

Pittsburg Micropolitan Reports

The Pittsburg Micropolitan Area Economic Report is created by the Business and Economic Research Center (BERC) at Pittsburg State University.

The Pittsburg Micropolitan Area Economic Report, Quarter 2, 2019, Pittsburg State University. Gladys A. Kelce College Of Business

Pittsburg Micropolitan Reports

The Pittsburg Micropolitan Area Economic Report is created by the Business and Economic Research Center (BERC) at Pittsburg State University.

The Pittsburg Micropolitan Area Economic Profile, 2019, Pittsburg State University. Gladys A. Kelce College Of Business

Pittsburg Micropolitan Reports

The Pittsburg Micropolitan Area Economic Profile is created by the Business and Economic Research Center (BERC) at Pittsburg State University.

Estimation Of Multivariate Asset Models With Jumps, Angela Loregian, Laura Ballotta, Gianluca Gianluca Fusai, Marcos Fabricio Perez

Business Faculty Publications

We propose a consistent and computationally efficient two-step methodology for the estimation of multidimensional non-Gaussian asset models built using Levy processes. The proposed framework allows for dependence between assets and different tail behaviors and jump structures for each asset. Our procedure can be applied to portfolios with a large number of assets as it is immune to estimation dimensionality problems. Simulations show good finite sample properties and significant efficiency gains. This method is especially relevant for risk management purposes such as, for example, the computation of portfolio Value at Risk and intra-horizon Value at Risk, as we show in detail …

One Step At A Time: Does Gradualism Build Coordination?, Maoliang Ye, Jie Zheng, Plamen Nikolov, Sam Asher

Economics Faculty Scholarship

This study investigates a potential mechanism to promote coordination. With theoretical guidance using a belief-based learning model, we conduct a multi-period, binary-choice, and weakest-link laboratory coordination experiment to study the effect of gradualism – increasing the required levels (stakes) of contributions slowly over time rather than requiring a high level of contribution immediately – on group coordination performance. We randomly assign subjects to three treatments: starting and continuing at a high stake, starting at a low stake but jumping to a high stake after a few periods, and starting at a low stake while gradually increasing the stakes over time …

Investment In Human Capital And Labor Mobility: Evidence From A Shock To Property Rights, Christopher P. Clifford, William C. Gerken

Institute for the Study of Free Enterprise Working Papers

We show that the assignment of property rights to client relationships affects employee behavior in the industry for financial advice. Our identification comes from staggered firm-level entry into the Protocol for Broker Recruiting. The protocol effectively transfers the ownership of the client relationship from the firm to the employee. We document that entering into the protocol increases employee labor mobility among member firms. Further, we find that upon protocol inclusion, employees are less likely to generate customer complaints and more likely to invest in their own general human capital, but less likely to invest in firm-specific human capital. We use …

50 Years Of Economic Instruction In The Journal Of Economic Education, Gail M. Hoyt, Kimmarie Mcgoldrick

Economics Faculty Publications

With 2019 marking the fiftieth year of publication of the Journal of Economic Education (JEE), it seems fitting to examine the evolution of economic instruction as portrayed in the Journal. Born of the American Economic Association (AEA), and first edited by members of the AEA’s Committee on Economic Education (Saunders 2012), it is not surprising that the Journal’s focus as chronicler, proponent, and outlet for economic education activity reflects the educational component of the American Economic Association’s mission. The creation of the Journal signaled a self-awareness in the discipline that we needed to be more deliberate in …

Small Business Lending And Social Capital: Are Rural Relationships Different?, Robert Deyoung, Dennis Glennon, Peter J. Nigro, Kenneth Spong

The Journal of Entrepreneurial Finance

We test whether rural versus urban location, and the amount of social capital present in those locations, influence the performance of Small Business Administration (SBA) 7(a) loans originated between 1984 and 2012. On average, we find that rural loans are about 11% less likely to default than urban loans, and that a standard deviation increase in social capital reduces default by about 5%. Surprisingly, these two effects are largely independent of each other, even though social capital is substantially higher in rural places than in urban places. Our findings advance the small business lending literature and offer insights for a …

The Effect Of Environmental Change On Gdp, Jackson V. Barliant

Writing Across the Curriculum

Climate change is one of the most debated topics of the 21^st century. Not only has it been detrimental to our eco-system, but it is beginning to redefine and reshape society. Can the U.S. economy continue to flourish while acknowledging the necessary steps that need to be taken in regard to combatting climate change? Yes, the inherent change within our environment due to climate change can not only be withstood by our economy, but it presents an opportunity to revolutionize and expand through innovation.

Teaching Courses In Macroeconomics And Monetary Policy With Bloomberg Analytics, Dean D. Croushore, Hossein S. Kazemi

Economics Faculty Publications

In this article, the authors illustrate the use of Bloomberg for analyzing topics in macroeconomics and monetary policy in economics and finance courses. The hands-on experience that students gain from such a course has many benefits, including deeper learning and clearer understanding of data. The authors describe goals and learning objectives, then compare Bloomberg with Federal Reserve Economic Data (FRED). In addition, they provide examples of how to use Bloomberg in the classroom, describe how to have students perform sector analysis, show how Bloomberg tools are useful for analyzing monetary policy, discuss how to use Bloomberg to analyze the financial …

Currency Unions And Trade: A Ppml Re-Assessment With High-Dimensional Fixed Effects, Mario Larch, Joschka Wanner, Yoto V. Yotov, Thomas Zylkin

Economics Faculty Publications

Recent work on the effects of currency unions (CUs) on trade stresses the importance of using many countries and years in order to obtain reliable estimates. However, for large samples, computational issues associated with the three-way (exporter-time, importer-time, and country-pair) fixed effects currently recommended in the gravity literature have heretofore limited the choice of estimator, leaving an important methodological gap. To address this gap, we introduce an iterative Poisson Pseudo-Maximum Likelihood (PPML) estimation procedure that facilitates the inclusion of these fixed effects for large data sets and also allows for correlated errors across countries and time. When applied to a …

Student Loans: The Risk Of Defaulting By School Type, Lexi Meanor

Whittier Scholars Program

This project is an in depth report of the student loan crisis in America. Their project talks about how the loan process is, connections between types of schools and their rates, datya between public, provite, and non profit schools and how the growth of student loan debt is in United States.

Earnings Response Coefficient As A Determinant Of Dividend Policy: Testing Free Cash Flow Theory On Non-Financial Dividend Paying Firms In The Pakistan Stock Exchange, Hamid Ullah, Anjum Ihsan

Business Review

This study tests Jensen’s free cash flow theory which states that managers overinvest retained earnings in negative NPV projects. A data set of 238 firms listed on the Pakistan Stock Exchange for the period 1999 to 2016 is used. The results of the panel regression model show a significant positive association of the earnings response coefficient and dividend payout ratio, which supports the free cash flow theory in listed Pakistani firms. Moreover, the imposition of the capital gains tax and the financial crisis has further strengthened the positive relationship between ERC and dividend payout ratio.

Globalization Tropes In Films: A Focus On Crazy Rich Asians, Nikhilesh Dholakia, Deniz Atik

Marketing Faculty Publications

Learning from and encouraged by the impacts of film film-based windows into globalization phenomena, in this issue of MGDR, we have focused on the film Crazy Rich Asians. In the popular press, the movie has been hailed as a major cultural point of departure for Hollywood as well as panned as just an Asian Asian-themed romantic comedy that celebrates the super-rich of Asia. The buzz around this movie does, however, indicate a slight bend in the curve of the geopolitics of the globalization discourse – and hence our decision to feature a number of academically insightful reviews of this movie …

Mitigating High-Skill Brain Drain In Low-Growth Economies: An Examination Of Existing Brain-Drain Threats In New Mexico And Strategy And Policy Alternative To Address Them, Aaron T. Cowan, Kelly R. Cowan, Steven T. Walsh

Engineering and Technology Management Faculty Publications and Presentations

This study analyzes the challenges faced by struggling or low-growth economies when they lose highly skilled human capital via the process of "brain drain" or "ability drain." Such losses pose severe potential hazards to technology-based economic development. Factors related to these phenomena are characterized and examined via literature review and mixed methodology analysis to compare and contrast potential ways to manage brain drain and even achieve positive "brain gain" through individual and business-oriented strategies and policy alternatives.

Nebraska Farm Real Estate Market Highlights 2018-2019, Jim Jansen, Jeffrey Stokes

Extension Farm and Ranch Management News

Introduction

The Nebraska Farm Real Estate Market Highlights 2018-2019 report represents the 41st edition to the annual series. These reports provide an important insight on agricultural land market dynamics for stakeholders across Nebraska. In today’s market, where market transactions exceeding a million dollars are the norm, objective market information and analysis is more critical than ever. The focus of the report continues to provide unbiased information on agricultural land values and rental rates so industry participants can make educated and informed decisions.

This year, the February 2019 survey of nearly 125 expert-panel members from across the state provided current information …

Can Credit Rating Agencies Affect Election Outcomes?, Igor Cunha, Miguel A. Ferreira, Rui C. Silva

Institute for the Study of Free Enterprise Working Papers

We show that credit rating agencies can have a significant effect on election outcomes. We identify these effects by exploiting exogenous variation in municipal bond ratings due to Moody’s recalibration of its scale in 2010. We find that incumbent politicians in upgraded municipalities experience an increase in their likelihood of reelection and their vote shares. These rating upgrades improve voters’ opinions about the incumbent and produce positive wealth effects through voters’ holdings of local municipal bonds. In addition, rating upgrades cause an expansion of local governments’ debt capacity that allows the incumbent to increase spending and improve local economic conditions.

Political Connectedness, Firm Performance And Corporate Risk Taking: Are Emerging Markets Different?, Augustine Tarkom

Electronic Theses and Dissertations

Existing literature exploring the effect of politically connected firms on their performance and risk-taking seems to offer decisive results for the emerging and the developed market. However, from professionals and anecdotal evidence, both markets do not exhibit similar characteristics. Considering these characteristics, instability of the government, lack thereof of adequate governance structure, I revisit the topic. This study comprises 27 advanced and 20 emerging economies for the years 1992 through 2016. I find that sound political environment drives risk-taking in advanced markets, while political connections drive corporate risk-taking in emerging markets. I also find that political institutions and political connections …

Strategies To Reduce Risks Associated With Corporate Social Responsibility Lending, Victor Johnson

Walden Dissertations and Doctoral Studies

Bank managers have transacted six trillion dollars of new loans in low and moderate income (LMI) communities because of the Community Reinvestment Act (CRA) mandate. CRA originated mortgages accounted for over 42% of the defaulted loans because of limited risk strategies. Based on the Aguilera conceptual framework, the purpose of this exploratory single case study was to explore the strategies CSR bank managers used to reduce the risks associated with lending in LMI communities. Data were collected and analyzed from semistructured interviews of five bank managers working in one financial organization located within the U.S. Northeast. Data also included the …

Do Socially Conscious Etfs Match Their Active Counterparts?, Ryan Cultice

Undergraduate Honors Thesis Collection

Over the past decade, Socially Responsible Investing (SRI) has grown at a rapid pace and, by some estimates, now represents a quarter of the $48 trillion in assets under professional management in the United States. At the same time, investors have broadly shifted from active to passive investing strategies. While there is significant research in each of these respective areas, we believe that we are the first to examine whether a socially conscious investor can employ a passive approach or if the constrained nature of SRI necessitates active management. As such, we examine the performance of socially conscious ETFs versus …

Prenatal Stress And Birth Weight: Evidence From The Egyptian Revolution, Ronia A. Hawash

Scholarship and Professional Work - Business

The Egyptian Revolution that ignited in January 2011 resulted in intense violent conflict between protestors and former regime allies. This generated a significant amount of fear and stress among people who lived in proximity to such events. We use this exogenous shock as a natural experiment to test the causal relationship between prenatal stress and birth weight. Governorate-level fatalities resulting from this conflict will be used as an exogenous indicator for prenatal stress. Using fixed effects and difference-in-difference analysis, results show that higher prenatal stress resulting from political conflict during the first and second trimesters of pregnancy has a …

Coordination Costs, Market Size, And The Choice Of Technology, Haiwen Zhou

Economics Faculty Publications

Impact of coordination costs and market size on a firm’s choice of technology is studied in a general equilibrium model in which firms engage in oligopolistic competition. A firm establishes an organizational hierarchy to coordinate its production. First, it is shown that an increase in market size leads a firm to choose a more specialized technology. Second, surprisingly, a robust result is that an increase in the level of coordination efficiency leads a firm to choose a less specialized technology.

Are Cds Auctions The Tail Wagging The Dog? An Empirical Study Of Corporate Bond Return Volatility At The Time Of Default, Jennifer Mace

CMC Senior Theses

Over the past decade, numerous engineered credit events and cases of market participants manipulating bond prices to influence Credit Default Swap (CDS) auction payouts have occurred. These cases have become increasingly common, and the CFTC has stated they may constitute market manipulation and undermine not only the CDS market but also the credit derivative and default markets. Although there is a plethora of news and media coverage on publicized cases, there is no previous empirical research on evidence of these practices. This paper is motivated by the desire to determine if there is indirect evidence of bond price manipulation around …

The Impacts Of Supra-Regional Multi-Resort Season Passes: A Hedonic Pricing Model Of Single-Day Lift Tickets For Us Ski Areas, Sijia Lai

CMC Senior Theses

Numerous media analyses claim that supra-regional multi-resort season passes (mega passes) are negatively impacting skiing, snowboarding, and winter-sport communities. In particular, media claims that ski areas on these season passes are charging higher single-day lift ticket prices to nudge people to buy their season pass products. To test this claim, I use a hedonic pricing model to estimate the impact of season passes on adult single-day lift ticket prices. By applying OLS regressions to a dataset of 302 US ski areas for the winter of 2018-19, I find that the ski areas on the leading season passes (Ikon and Epic …

The Fall Of The 10-K Report: Measuring The Impact Of Accounting Ratios On Financial Performance, Matthew Daruty

CMC Senior Theses

The annual 10-K report has historically been the most important aspect in assessing the position of a publicly held company. However, as the flow of information has increased with the dawn of new technologies, less and less attention has been paid to these audited financial statements. In order to assess if investors are still reacting to the information contained in the annual report, this paper examines the relationship between accounting ratios and stock price in banks traded on United States stock exchanges. By examining accounting ratios instead of simply looking at Earnings Per Share, new information was revealed regarding what …

Data Disparity: Tiered Pricing As An Alternative To Consumer Iot Data Privacy Regulations, Matthew Lostocco

Honors Theses and Capstones

In recent years, Internet of Things (IoT) devices have exploded on the consumer scene. These emerging products bring new technological capabilities into our everyday lives. IoT is projected to contribute anywhere from $4-11 trillion to the global economy and companies are investing billions of dollars into the technology. However, with the vast amount of data that IoT devices collect, consumers are burdening the risk of having their personal data breached or sold to third parties. This paper first identifies why consumers may be weary or willing towards providing their personal data and how unconscious biases in the purchasing process cause …

Investment Ramifications Of Distortionary Tax Subsidies, James R. Hines Jr., Jongsang Park

Articles

This paper examines the investment effects of tax subsidies for which some assets and not others are eligible. Distortionary tax subsidies concentrate investments in tax-favored assets, thereby reducing the expected pre-tax profitability of investment and reducing payoffs to bondholders in the event of default. Anticipation of asset substitution encourages lenders to require covenants in debt contracts, which only imperfectly address asset substitution and distort investment. The result is that borrowing is made more expensive, which in turn discourages investment. Borrowing rates can react so strongly that aggregate investment may rise very little, or even fall, in response to higher tax …

Investment Treaties, Investor-State Dispute Settlement, And Inequality: How International Investment Treaties Exacerbate Domestic Disparities, Lise Johnson, Lisa E. Sachs

Columbia Center on Sustainable Investment Staff Publications

Over roughly the past four decades, government officials from around the world have been erecting a framework of economic governance with major – but under-appreciated – implications for intra-national inequality. The components of this framework are thousands of bilateral and multilateral treaties designed to protect international investment. In many jurisdictions, the treaties have been concluded without public awareness or scrutiny or even much discussion or analysis by government officials – including those officials responsible for negotiating the agreements(Poulsen 2015) – and without an adequate understanding of how these agreements could affect intra-national inequality. Long imperceptible, the size and power of …

Securities Disclosure As Soundbite: The Case Of Ceo Pay Ratios, Steven A. Bank, George S. Georgiev

Faculty Articles

This Article analyzes the history, design, and effectiveness of the highly controversial CEO pay ratio disclosure rule, which went into effect in 2018. Based on a regulatory mandate contained in the Dodd-Frank Act of 2010, the rule requires public companies to disclose the ratio between CEO pay and median worker pay as part of their annual filings with the Securities and Exchange Commission (SEC). The seven-year rulemaking process was politically contentious and generated a level of public engagement that was virtually unprecedented in the long history of the SEC disclosure regime. The SEC sought to minimize compliance costs by providing …

Statement From The Indiana Academy Of The Social Sciences And Board Of Directors, Mssj Staff

Midwest Social Sciences Journal

No abstract provided.