Economics Commons^™

How Much Should You Pay For A Financial Derivative?, Boyan Kostadinov

Publications and Research

We explain some key mathematical ideas behind the no-arbitrage pricing of financial derivatives by replication, starting from a simple coin toss model and ending with the continuous-time limit of a multi-step coin-toss model using a geometric random walk model. In the limit, we obtain the classical Black-Scholes-Merton formula for pricing European call and put options.

Epistemic Considerations On Extensive-Form Games, Cagil Tasdemir

Dissertations, Theses, and Capstone Projects

In this thesis, we study several topics in extensive-form games. First, we consider perfect information games with belief revision with players who are tolerant of each other’s hypothetical errors. We bound the number of hypothetical non-rational moves of a player that will be tolerated by other players without revising the belief on that player’s rationality on future moves, and investigate which games yield the backward induction solution.

Second, we consider players who have no way of assigning probabilities to various possible outcomes, and define players as conservative, moderate and aggressive depending on the way they choose, and show that all …

U.S. Employment Outlook For 2016, Randall W. Eberts

Periodical Articles

No abstract provided.

The Real Footprint Of Electric Vehicles, And What That Could Mean For Our Future, Krista Brown

Journal of Environmental and Resource Economics at Colby

This paper looks at the impact of electric vehicles on CO2 emissions specifically based on the type of electricity used in each New England state analyzed. The research looks at the question of whether or not emissions will in fact be lowered as electric cars start to take the majority of vehicles used instead of the conventional cars that take up a much larger percent of the motor vehicles used today. Taking into account the use of electricity and how many sources of electricity also release a substantial amount of emissions, we see how valid the public opinion of electric …

The Effect Of The Deer Population On The Number Of Car Accidents, Timothy J. Hallock Jr

Journal of Environmental and Resource Economics at Colby

This paper examines the relationship between the deer population and the number of car accidents in New York State from 2002-2012. Data collected includes information on the amount of deer hunted, the number of car accidents, and the number of hunting permits issued. This paper also involves a county level analysis within New York State of 56 counties from 2007 - 2012. An important part of analysis of this paper is the examination of the Buck population vs. the Doe population on the number of car accidents. This is an important study because of its possible policy implications regarding the …

The Effect Of Information On Avoidance Behavior And Bicycle Transportation: A Study Of “Spare The Air” And Bay Area Bikeshare, Paige W. Whistler

Journal of Environmental and Resource Economics at Colby

This paper seeks to address the effect of “Spare the Air” pollution control alerts in the San Francisco Bay Area in California on the use of Bay Area BikeShare as a form of transportation. By observing the daily alerts on the duration of rides using BikeShare, this paper observes if STA ozone alerts are effective in changing human behavior. The results show that only as a subscriber to the BikeShare program and on an alert day does duration decrease whereas customers regardless of if it is an alert day will ride more often and at longer distances. The results contradict …

Socioeconomic Attributes’ Relationship To Green Commercial Office Buildings, Tianyang Zhou

Journal of Environmental and Resource Economics at Colby

This paper examines the relationship between the socioeconomic attributes of a state and its green commercial office space adaptation. I hypothesize that a state with high socioeconomic status will have a high green building adoption. Additionally, the high socioeconomic status states may be more likely to invest in green commercial buildings with higher LEED certification levels, and various types of LEED commericial office projects are affected by the socoeconomic attributes differently.

Who Cares About The Environment? A Study Of Environmental Behavior In Maine, Chandler L. Blake

Journal of Environmental and Resource Economics at Colby

Identifying and targeting environmentally minded people is crucial to making any environmental campaign successful. It allows you to advertise to the people who will be the most helpful and supportive to your cause. The goal of this study is to identify the general demographics of environmentally minded people. To do this I examine voting data through each county in Maine and run a regression to test whether income, education level, and household size have any correlation to how the county votes on environmental issues. I found that the higher a county’s income, the more environmentally friendly their voting. I also …

Analyzing Consumers’ Willingness To Pay For Eco-Labeled Seafood Products In Coastal And Inland Maine Counties, Gaby E. Carpenter

Journal of Environmental and Resource Economics at Colby

Around the world, green labels are used for a wide range of food products, both in grocery stores and restaurants. Often, the price for these labeled products is higher due to higher production costs associated with the goods. This leads to demand for these goods in the market and consumers that are willing to pay. Here, I will examine the willingness to pay for three different eco-labeled seafood dishes at a Maine restaurant using a consumer choice experiment survey. I will use this survey to conduct a benefits transfer analysis to approximate the willingness to pay of consumers in each …

Do Peers Get Punished: Stock Market Effect Of Bp Oil Spill On Peers, Yuga Koda

Journal of Environmental and Resource Economics at Colby

This paper examines the stock market reaction to the British Petroleum oil spill on April 20, 2010. This event study looks at different sectors that may be affected by the oil spill. It finds that different industries do not have significant abnormal returns, with two exceptions. First, utilities companies have a very small positive abnormal return for a short period of time after the incident. Second, when only looking at BP's direct competitors, there is a statistically significant negative abnormal return, implying that BP's competitors are punished for BP's mishap.

Media Effects On Solar Panel Installations Across 20 States, Casey Romeo

Journal of Environmental and Resource Economics at Colby

This paper looks at the relationship between media coverage of solar power and the solar panel installation at a state level. Specifically, it aims to find if more newspaper articles cause more households to adopt solar energy. Use data from 20 states from 2009 to 2014. I find that there is a modest, yet positive and statistically significant relationship between newspaper articles and installations, which suggests that the media does influence the decision to install solar panels. There is possible endogeneity between these two variables. Disentangling this endogeneity is beyond the scope of this research and would be a topic …

Renewable Energy Consumption: Initiatives In Colorado And Washington, Robin K. Doroff

Journal of Environmental and Resource Economics at Colby

This paper examines the use of policy mechanisms to increase renewable energy consumption within the United States. In order to effectively measure the change of renewable energy consumption, I analyze two initiatives that promote energy consumption from renewable sources and overall increases in energy conservation. Colorado and Washington had approved initiatives in the years 2004 and 2006, respectively. Although the results are not entirely statistically significant, I find that the initiatives lead to increases in total renewable energy consumption and decreases in total energy use.

Stock Market Reactions To The Iarc Announcement Linking Red Meat And Processed Meat To Cancer, Scott B. Lehman

Journal of Environmental and Resource Economics at Colby

This study investigates how food companies were affected by the International Agency for Research on Cancer’s report that linked processed meat and red meat consumption to increased risk of cancer. The results indicate that neither fast food companies nor meat producers were greatly affected by the announcement in the days immediately following the release.

Property Value Changes From Public Transportation: How The Greenbush Commuter Line Affected Property Values, Sarah C. Evans

Journal of Environmental and Resource Economics at Colby

Prior studies have investigated the impact on property values to the proximity of established public transportation stations. Public transportation is thought to increase value of towns and properties, giving residents more options for transportation to and around the city. Both benefits and consequences of public transportation exist, allowing for either a raise or lower of property values in towns with stops. This paper analyzes the Greenbush Commuter line in Massachusetts, seeing if the proximity to the stops has an affect on the property of values in the towns. A difference – in – difference model is used to investigate a …

The Effectiveness Of The Colby College Electricity Competition On Promoting Electricity Conservation To Students, Jeff Vaz

Journal of Environmental and Resource Economics at Colby

This paper examines the effectiveness of the Colby College electricity reduction competition in altering students’ behavior to conserve electricity. The Colby College electricity reduction competition is an information-based policy that Colby implemented to promote the conservation of electricity, which are a major contributor to greenhouse gas (GHG) emissions in the United States. The study analyzes if different residence halls reduce electricity consumption by different amounts during the competition period. Results indicate that only 4 of 22 residence halls reduced electricity usage during competition periods in a statistically significant manner. The study concludes that the electricity competition at Colby College is …

Invited Introduction To Jerec, Matthew Kotchen

Journal of Environmental and Resource Economics at Colby

No abstract provided.

Welcome By The Editor, Nathan W. Chan

Journal of Environmental and Resource Economics at Colby

No abstract provided.

The Effect Of Soil Erosion On Children’S Calorie Intake Among Corn-Producing Households, Davao Region, Philippines, Pedro A. Alviola Iv, Jon Marx P. Sarmiento, Nikko L. Laorden, Nilo B. Oponda

Journal of Economics, Management and Agricultural Development

Soil erosion is a constant challenge to farm productivity and profitability. However, extending the effect to food expenditure and children’s nutrition is yet to be explored. In this research, an attempt was made to establish the path linking soil erosion to children’s calorie intake levels. Using the geo-coordinates of Mindanao soil erosion areas from the Department of Agriculture-Bureau of Agricultural Research (DA-BAR), Geographic Information System (GIS) was used to identify the research sites for corn producing households in Davao region. A total of 125 samples were analyzed. A 24-hour food-frequency recall survey was conducted and conversion of food consumption to …

The Effect Of Soil Erosion On Children’S Calorie Intake Among Corn-Producing Households, Davao Region, Philippines, Jon Marx P. Sarmiento, Nikko L. Laorden, Nilo B. Oponda

Journal of Economics, Management and Agricultural Development

Soil erosion is a constant challenge to farm productivity and profitability. However, extending the effect to food expenditure and children’s nutrition is yet to be explored. In this research, an attempt was made to establish the path linking soil erosion to children’s calorie intake levels. Using the geo-coordinates of Mindanao soil erosion areas from the Department of Agriculture-Bureau of Agricultural Research (DA-BAR), Geographic Information System (GIS) was used to identify the research sites for corn producing households in Davao region. A total of 125 samples were analyzed. A 24-hour foodfrequency recall survey was conducted and conversion of food consumption to …

A Qualitative Analysis Of Service Delivery Of Potable Water Through Cooperatives: The Case Of Talaga Barangay Water Service Cooperative, Philippines, Arminga B. Oeria

Journal of Economics, Management and Agricultural Development

This paper aims to demonstrate the important role of cooperatives in the provision and delivery of potable water to a community of households based on evidence from a case study of Talaga Barangay Water Service Cooperative (TBWSC) in Tanauan, Batangas. TBWSC is a water service type of cooperative that successfully provides its members with access to potable water. The case shows how social capital works in addressing a common need. Particularly, it presents the collaborative partnership between the government and the cooperative in implementing a waterworks project. The factors contributing to the success of water service delivery are the felt …

Electric Power And The Global Economy: Advances In Database Construction And Sector Representation, Jeffrey C. Peters

Open Access Dissertations

The electricity sector plays a crucial role in the global economy. The sector is a major consumer of fossil fuel resources, producer of greenhouse gas emissions, and an important indicator and correlate of economic development. As such, the sector is a primary target for policy-makers seeking to address these issues. The sector is also experiencing rapid technological change in generation (e.g. renewables), primary inputs (e.g. horizontal drilling and hydraulic fracturing), and end-use efficiency. This dissertation seeks to further our understanding of the role of the electricity sector as part of the dynamic global energy-economy, which requires significant research advances in …

Collective Action And Decision Making: An Analysis Of Economic Modeling And Environmental Free-Riding, Thomas Miller 16

Honor Scholar Theses

No abstract provided.

Uses Of Sampling Techniques & Inventory Control With Capacity Constraints, Florentin Smarandache, Sachin Malik, Neeraj Kumar

Branch Mathematics and Statistics Faculty and Staff Publications

The main aim of the present book is to suggest some improved estimators using auxiliary and attribute information in case of simple random sampling and stratified random sampling and some inventory models related to capacity constraints. This volume is a collection of five papers, written by six co-authors (listed in the order of the papers): Dr. Rajesh Singh, Dr. Sachin Malik, Dr. Florentin Smarandache, Dr. Neeraj Kumar, Mr. Sanjey Kumar & Pallavi Agarwal. In the first chapter authors suggest an estimator using two auxiliary variables in stratified random sampling for estimating population mean. In second chapter they proposed a family …

Price Signaling In A Two-Market Duopoly, Matthew Hughes

Williams Honors College, Honors Research Projects

Within any industry, firms typically produce related products over multiple subsequent periods in an attempt to build consumer loyalty and achieve continued sales. Apple releases new iPhones and car companies produce new models every year, relying on consumers believing each new product is of high quality. Firms rely on the spillover effects from previous markets, where firms are able to more easily demonstrate their product's quality to the consumers before purchase. The goal is to find a range of prices which allows the high quality firm to distinguish its type to consumers via the price pH and if spillover effects …

Essays On Oil Price Volatility And Irreversible Investment, Daniel Joseph Pastor

Wayne State University Dissertations

In chapter 1, we provide an extensive and systematic evaluation of the relative

forecasting performance of several models for the volatility of daily spot

crude oil prices. Empirical research over the past decades has uncovered

significant gains in forecasting performance of Markov Switching GARCH

models over GARCH models for the volatility of financial assets and crude

oil futures. We find that, for spot oil price returns, non-switching models

perform better in the short run, whereas switching models tend to do better

at longer horizons.

In chapter 2, I investigate the impact of volatility on firms' irreversible investment decisions using real …

How Can We Have A Better Public Transportation System? –An Exploratory Agent Based Model, Boyu Liu

Pomona Senior Theses

Public transportation plays an integral part in a city's development, but transportation professionals disagree about whether it is feasible to increase the capacity of public transportation systems at a reasonable cost; and if it is, how. This study develops an agent based model that aims to answer this question and provide a framework to compare the effects of improvements in different aspects of the public transportation service. The results of this study show that it is possible to increase ridership enough to compensate for the increased operational cost, but only in certain circumstances. Interesting phenomenon that might have showed up …

Macroconstants Of Development: A New Benchmark For The Strategic Development Of Advanced Countries And Firms, Andrey V. Bystrov, Vyacheslav N. Yusim, Tamilla Curtis

Publications

This research proposed a new indicator of countries’ development called “macroconstants of development”. The literature review indicates that the concept of "macroconstants of development" is not used at the moment in neither the theory nor the practice of industrial policy. Research of longitudinal data of total GDP, GDP per capita and their derivatives for most countries of the world was conducted. An analysis of statistical information has been done by employing econometric analyses.

Based on the analysis of the statistical data, which characterizes the development of large, technologically advanced countries in ordinary conditions, it was identified that the average acceleration …

Nemo's Plight: Political Economy, Green-Cultural Criminology, And Fish Abuse, Jordan Edward Mazurek

Online Theses and Dissertations

Using the Marine Aquarium Fish Trade as a case study, I propose an integrated theoretical framework in green criminology that strengthens the political economic "treadmill of production" theory (see Lynch et al., 2013) by incorporating an analysis of the "cultural grease" that ensures the treadmill’s smooth operation. Choosing fish as a subject matter, though, requires challenging the "thoroughgoing speciesism" (Beirne, 1999) inherent in the mammalian-centric animal abuse literature. To do this I draw from research in marine biology and animal cognition to philosophically establish that fish are moral agents, "subjects-of-a-life" (Regan, 1983) on par with mammals and thus worthy of …

Managing Risks Of Market Price Uncertainty For A Microgrid Operation, Sriram Raghavan

Masters Theses

"After deregulation of electricity in the United States, the day-ahead and real-time markets allow load serving entities and generation companies to bid and purchase/sell energy under the supervision of the independent system operator (ISO). The electricity market prices are inherently uncertain, and can be highly volatile. The main objective of this thesis is to hedge against the risk from the uncertainty of the market prices when purchasing/selling energy from/to the market. The energy manager can also schedule distributed generators (DGs) and storage of the microgrid to meet the demand, in addition to energy transactions from the market. The risk measure …

The Role Of The State, Multinational Oil Companies, International Law & The International Community: Intersection Of Human Rights & Environmental Degradation Climate Change In The 21st Century Caused By Traditional Extractive Practices, The Amazon Rainforest, Indigenous People And Universal Jurisdiction To Resolve The Accountability Issue, Marcela Cabrera Luna

Master's Theses

Local, national and international conventions that protect indigenous sovereignty and their territories, where many of the resources are extracted from by multinational corporations (MNCs) particularly oil, the number one commodity of the world and cause of climate change, continue to be jeopardized because of the lack of a clear international legal framework that can protect them and potentially hold multinationals accountable for their actions. These practices are causing not only environmental issues to the indigenous and surrounding communities, but climate change is in fact, the real human rights issue of the 21^st century and it affects everyone. By using …