Economics Commons^™

Alleviating Poverty In Sub-Saharan Africa, Owen Dubeck

CMC Senior Theses

While most of the world has been able to dramatically reduce extreme poverty rates, Sub-Saharan Africa has failed to do so and is the only region in the world with more people living in extreme poverty than thirty years ago. This thesis will develop a policy framework for alleviating poverty by drawing from countries that are performing surprisingly well and poorly in the region. The thesis concludes with an analysis of whether education, health, or agricultural sectors should be receiving more or less funding based on expected rates of return and the feasibility of policy successes.

A Nuanced Look At Gender Interactions On Informal Employment And Income In Argentina And Uruguay, Teagan Knight

CMC Senior Theses

There are many existing studies characterizing the informal sector in Latin America, but the literature fails to fully examine the interactions between gender and disadvantaging factors on the probability of informal employment and its returns to wage. This analysis uses survey data from Argentina (2001) and Uruguay (2006) to examine the heterogeneous effects of number of children under 5, education, minority status, and migrant status on male and female informal employment and income. Being female interacts with number of children under 5 to create no effect on probability of informal employment, in contrast to a significant negative effect for men. …

The Impact Of Regional Return On Education On The Self-Selection Of Mexican Immigrants, Warren Chen

CMC Senior Theses

This paper uses the 2010 Mexican Population and Housing Survey to examine the role of regional return to education on migrant selection. The study uses a standard linear regression model to predict the educational attainment of migrants and compares it to the educational attainment of non-migrants in each Mexican State. It finds evidence of negative selection, that less educated Mexican citizens are more likely to migrate to the United States. It also finds little evidence of the impact of regional return to education on migrant selection. The study offers potential explanations for the lack of impact and suggests avenues for …

Trump, 2018 Trade War Edition: An Analysis Through The Political And Economic Perspectives, Yue Shen

CMC Senior Theses

President Trump’s presidency can be characterized as unpredictable, controversial, and unconventional. One such instance is America’s departure from decades of free-trade advocacy under his administration and engagement in trade disputes with numerous nations. By viewing the 2018 trade dispute through the political and economic perspectives, this thesis aims to understand what the motivating factors are for Trump and his administration to pursue such extensive protectionist policies. The author analyzes the tariffs through two main categories: those that target an adversarial power, China, and those that target traditional allies like Canada, Mexico, and the European Union. The thesis finds that, politically …

Leveraged Buyouts: The Predictive Power Of Target Firm Characteristics, Yutao (James) Jiang

CMC Senior Theses

This paper utilizes a hazard model to predict the probability of leveraged buyout transactions for public firms. Rather than testing specific hypotheses, this paper incorporates all plausible predictors identified in existing literature to better delineate the effects of different characteristics. Largely confirming past results, I find that LBO transactions are more likely to occur for companies with more stable cash flows, less market visibility, lower market valuation, lower ownership concentration and lower costs of financial distress. By including LBO transactions from 1980 to September 2018, I find preliminary evidence that since the financial crisis of 2008 – 2009, private equity …

The Changing Nature Of Work, Leadership, And Organizational Culture In Future Ready Organizations, Saloni Dhir

CMC Senior Theses

Abstract

The relationship between individual and organizational performance is a key challenge for leaders in modern organizations, especially with the current disruption in technology and innovation. This thesis is a literature review and compilation of the relevant empirical evidence on various processes of industrial groups and organizational characteristics such as the changing nature of work, leadership, and company culture in detail. I investigate the complex challenges that millennials and organizations are facing in the current VUCA work environment as well as their potential responses to these changes. I map out the evolution of the concept of work and compare changes …

The Effectiveness Of Collaboration Within Supply Chain Management: A Case Study Of Adidas Group, Daniel Carr

CMC Senior Theses

For a multi-national company like Adidas, supply chain management is one of the most crucial aspects of business operations. Products cannot be sold unless Adidas’s supply chain is well-managed and efficient, and public perception of a brand/company is critical to success.

This case study analyzes the effectiveness of Adidas's distinct “collaborative approach” to supply chain management, which is characterized by not only monitoring and auditing suppliers, but also training them to make Adidas’s standards their own and approaching suppliers with the intention of building long-term relationships where the suppliers can become self-sufficient.

This study reviews the structure of Adidas's supply …

Farm To Label: A Critique Of Consumer Activism In The Sustainable Food Movement, Olivia Whitener

Pomona Senior Theses

“Local,” “organic,” “natural,” and “Fairtrade” are just several of the many claims adorning the food products that line grocery store shelves. These promises of environmental sustainability and social responsibility are pillars of the “good food revolution” sweeping the nation as consumers demand alternatives to the products of the industrial food system. Green consumerism, the premise that consumer demand for environmentally sustainable goods will bring about ecologically beneficial outcomes, is at the heart of the sustainable food movement. This thesis takes a critical look at the operation of green consumerism in the food system. It explores the ideology and shortcomings of …

Find, Process, And Share: An Optimal Control In The Vidale-Wolfe Marketing Model, Michael C. Barg

CODEE Journal

The Vidale-Wolfe marketing model is a first-order, linear, non-homogeneous ordinary differential equation (ODE) where the forcing term is proportional to advertising expenditure. With an initial response in sales as the initial condition, the solution of the initial value problem is straightforward for a first undergraduate ODE course. The model serves as an excellent example of many relevant topics for those students whose interests lie in economics, finance, or marketing. Its inclusion in the curriculum is particularly rewarding at an institution without a physics program. The model is not new, but it was novel to us when a group of students …

The Principal Problem With Principal Components Regression, Heidi Margaret Artigue, Gary Smith

Pomona Faculty Publications and Research

Principal components regression (PCR) reduces a large number of explanatory variables down to a small number of principal components. PCR is thought to be more useful, the more numerous the potential explanatory variables. The reality is that a large number of candidate explanatory variables does not make PCR more valuable; instead, it magnifies the failings of PCR.

Another Look At Dollar Cost Averaging, Gary N. Smith, Heidi Margaret Artigue

Pomona Economics

Dollar cost averaging—spreading an investor’s stock purchases evenly over time—is widely touted in the popular press because of the mathematical fact that the average cost per share is less than the average price. The academic press has generally been skeptical, and attributes dollar cost averaging’s popularity to investor naiveté and cognitive errors. Yet, dollar cost averaging continues to be recommended by knowledgeable investors as a sensible way to avoid ill-timed purchases. We argue that dollar cost averaging is, in fact, an imperfect, but helpful strategy for diversifying investment decisions across time.

A Lesson In Learning: Improving Learning Outcomes In India Via Pedagogical Innovation, Rhea Handa

Scripps Senior Theses

When delivered well, education is key to addressing a host of individual and societal ills, from poverty and disease to crime and poor voter engagement. India has demonstrated considerable progress in improving various aspects of its primary education system, including infrastructure and buildings, teacher-student ratios, and school enrollment. However, student learning outcomes remain consistently low across the country. A review of the literature surrounding learning outcomes has highlighted gaps in school instruction and has shown the dire need for innovations in pedagogy and curriculum to improve student learning. This paper assesses the long-term impact of one such pedagogy, called Teaching …

Does The H-1b Visa Program Impact Quality Of Healthcare?, Sarah Yaghmaee

Scripps Senior Theses

Recently, the H-1B visa program has been a target of reform under the Trump administration. This study explores whether the employment of H-1B physicians in U.S. hospitals has any effect on the quality of healthcare provided. As indicators of quality, I use patient survey scores as well as mortality and readmission rates. This new econometric evidence suggests that patient perception of quality is not influenced by prejudice toward nonimmigrant physicians, but provides inconclusive results for the rate-based measures of healthcare quality.

Why Do Underrepresented Minorities Leave Science And Engineering?, Cindy Onyekwelu

Pitzer Senior Theses

This paper extends upon Jennifer Hunt’s research on “Why do women leave science and engineering?”, that contributes to existing literature that overlooks underrepresented minorities level of commitment to STEM fields based on their STEM educational backgrounds and additional contributing factors that relates to women engineer’s leaving their felid to another felid that does not have any relation to their STEM degree. The following independent factors are the respondents’ gender, reasons for leaving the felid of major, how much does their highest degree relate to their current principle/ primary job, parents’ level of education, current citizenship status, level of highest degrees …

Going Undrafted: Survival Of Undrafted Free Agents And Seventh Round Draft Picks In The Nfl, Trey Smith

CMC Senior Theses

Over the years there have been a lot of undrafted free agents that have had successful careers in the NFL. The monopsony structure for rookies entering the NFL and the fact that undrafted free agents get to pick what team they play for suggests that there is an advantage in not getting picked in the draft. To explore this possibility, this paper compares the probabilities of remaining in the NFL for undrafted free agents and seventh round draft picks through logit regressions and survival analysis. In doing so, this paper describes the processes the NFL takes in order to find …

You Can Run But You Can’T Hide: The Advance Of Shareholder Activism, Kendall Greenberg

CMC Senior Theses

Shareholder activism has exploded in popularity since the turn of the century, due in large part to impressive relative returns generated by its major participants. The result has thus been a surge in assets invested in the category, to in excess of $170 billion today up from less than $3 billion in 2000 (Inglis 2015; Romito 2015). This influx of capital, in absolute dollars and pace of growth, has caused many to wonder whether activists truly create shareholder value and, if so, if the value generated is sustainable. Numerous studies of activist interventions prior to 2009 reveal significant stock price …

Voices Of Women: The Impact Of Women's Political Reservations On Female Child Mortality In India, Kohsheen Sharma

Scripps Senior Theses

This paper uses state-level variation in the implementation of the 73rd amendment in India to observe the relationship between political reservations for women in local government and female child mortality. Nationally, reservations for women are not associated with a statistically significant difference in female child mortality. However, a state by state analysis shows variations in the level of impact of reservations on the topic of female child mortality. This paper examines the constraints on female representatives and their level of effectiveness in executing pro-female policies given the political and social environment. The two case studies on Kerala and Haryana explore …

Gigs And Grub: How The Gig Economy Impacts Restaurant Industry Performance, Laura Broderick

Scripps Senior Theses

In the last ten years, the gig economy has become a significant part of the labor market. Consumers depend on the services provided by people performing gig work, particularly as on-demand services are increasingly desired. Another trend that has developed is the rise of fast casual restaurants due to their relatively inexpensive and quick service while simultaneously providing unique and interesting cuisine options. I examined if there was a relationship between the rise of these emerging sectors of the economy through looking at the performance of limited service eating place establishments using a panel data regression model at the Metropolitan …

Unveil The Mysterious Reality Of Management Healthcare In China: A Case Study On Institutional Arrangement, Yasha Zhang

Scripps Senior Theses

This thesis identifies and analyzes current problems in the healthcare market in China. Although many health indicators of China such as life expectancy and child mortality rates have improved significantly and suggest that the healthcare reform in China is successful, there have been many more reports of patient's violent attack towards the doctor, the sudden death of doctors, and decreasing doctor supplies that suggest otherwise. I observed that the relationship between doctors and patients are intense, doctors experience enormous working pressure, and many doctors are leaving the market. It makes me wonder how did government fail to improve its healthcare …

Coal-To-Liquid Technology: A Look At The Geopolitical Tension Behind China's Energy Strategy, Kaela Cote-Stemmermann

Scripps Senior Theses

As interest in renewable energy development continues to rise around the globe, the alignment of China’s capabilities and incentive to invest in the green energy sector position the country in a leading role. However, China’s recent investment in coal-to-liquid (CTL) technology raises questions as to the direction of China’s energy policy and reflects broader geopolitical tensions within the Chinese government. Although CTL technology has been widely criticized as being environmentally unfriendly and economically unsustainable, China continues to invest in it at an astounding pace. Research proposes several possible explanations, such as corruption or local conflicts of interest, however, a critical …

An Assessment Of The Sharing Economy And Its Policy Solutions Through The Lens Of Sustainability, Chloe An

Pomona Senior Theses

This senior thesis in environmental analysis explores the promise of sustainability of the sharing economy, its shortcomings from this positive potential, and possible policy solutions to help it reach its fullest, positive potential. At its core, the sharing economy enables shared access to goods and services that would otherwise sit in idle or underutilized capacity – popular platforms such as Uber, Lyft, Airbnb, and craigslist all fall within the sharing economy. By enabling affordable and convenient access to goods that would otherwise sit idle, the sharing economy encourages maximal use of a good that already exists rather than seeking out …

The Mall Ain’T Dead Yet! An Aristotelian Argument For The Continuation Of Physical Retail Space With The Rise Of Modern Technology, Tarah Gilbreth

CMC Senior Theses

According to Aristotle, for a human being to live their best life, that is a life that flourishes, is to live a political life. A political life is lived best in a polis , or a self - sufficient community, so therefore, the most flourishing human life is one lived in a polis . Also, for a polis to be self - sufficient, its citizens must be flourishing, so there exists a special sort of constitutive relationship between the polis and its citizens. There are certain capacities available to human beings in the polis that promote their flourishing (namely loyalty …

The Effect Of Fast Food Restaurants On Type 2 Diabetes Rates, Grace Bailey

CMC Senior Theses

This paper conducts an analysis of county level data to determine the effect of fast food restaurants on type 2 diabetes rates. Due to endogeneity concerns with respect to the location of fast food restaurants, this paper follows the work of Dunn (2010) and uses the number of interstate exits in a given county to serve as an instrument for fast food restaurants. The strength of the instrument, which is theoretically and empirically tested in this paper, imposes some restraints on the interpretation of the findings. Using the Two-Stage Least Squares estimation method, I find that the presence of fast …

Ipo Underpricing And Insider Wealth Maximization In Internet Firms, Bhavika Booragadda

CMC Senior Theses

This paper empirically tests the theoretical model developed by Aggarwal, Krigman and Womack (2001), which argues that insiders of a firm strategically underprice its initial public offering to maximize personal wealth by selling shares at lockup expiration. First day underpricing generates information momentum for the stock in terms of increased research coverage and recommendations by analysts. Increased research coverage is positively correlated with stock returns and insider selling at the end of the lockup period. Although the value of the stock should be typically based on discounted expected future cash flows, several empirical papers suggest a downward sloping demand curves …

Human Development And Subnationalism: A Disaggregated Analysis Of Indian States: Kerala And Uttar Pradesh, Manika Garg

CMC Senior Theses

This thesis investigates achievements in human development outcomes on health, education, and poverty indicators across Indian states, in order to discern what factors might influence a state’s better orientation toward social policies. After conducting data analysis, the study explains differences in outcomes, as achieved by Kerala and Uttar Pradesh, by building an argument of subnational solidarity and its impact on determining the state’s policy agendas.

Returns To Buying Winners And Selling Losers: A Look At Cryptocurrencies, Daniel Walker

CMC Senior Theses

This paper is, to my knowledge, one of the first ever to examine the effectiveness of price momentum trading strategies applied to cryptocurrencies. Using aggregate OHLCV (Open, High, Low, Close, Volume) data on cryptocurrency pairs from Poloniex, Bittrex, and Bitfinex, I apply Jegadeesh and Titman’s classic -month/-month momentum trading strategy, reporting annual returns with and without incorporating trading fees. Portfolios are resampled daily, weekly, and monthly, testing lookback and holding periods ranging from one day to one year. The results show that trading cryptocurrencies using momentum strategies derives returns that rapidly increase the more often portfolios are resampled, with the …

Reaching The Unreached: The Role Of Information Communication Technologies On Agency Of Women In India, Suvena Yerneni

CMC Senior Theses

In this paper, I analyze the impact of Information Communication Technologies (ICTs) on female empowerment in India. In defining female empowerment, I consider the three dimensions of agency: social autonomy, economic autonomy, and mobility. Using nationally-representative data of 2012 from the Indian Human Development Survey (IHDS), I find that these information communication technologies, measured by ownership and use, have positive and significant impacts on female agency and decision-making abilities. I extend my analysis to two types of media: computers and mobile phones. These results persist even after accounting for the effects of education, income, and age of women.

The Effect Of The Change In Call Loan Rates And Volatility On Stock Returns In 1929: An Empirical Study Into A Determinant Of The Great Depression, Amberish Chitre

CMC Senior Theses

I investigate the effect of the change in call loan rates on stock returns during 1929. Call loan rates are the interest rates on borrowed funds to trade equity on a given exchange. It is estimated that 40% of stocks during this period were bought on margin. After a price decline comes a margin call, followed by a forced sales of securities, which leads to additional margin calls and future price declines. I regress daily excess returns on the change in daily call loan rates during 1929. In addition, I estimate volatility using an ARCH model and observe the previously …

Fifa World Cup: Factors That Explain The Performances Of National Football Teams, Shivaan Seth

CMC Senior Theses

This paper examines the determinants of FIFA World Cup performances of nations. The study incorporates socioeconomic, cultural, demographic and football-specific factors to investigate how World Cup results can be explained. A linear regression is used to study the last five tournaments, and the model finds that being seeded for the draw, and the host country effect are statistically significant variables. Additionally, I discover two new variables – namely, having a star player and having become a member of FIFA before 1924, as being statistically significant in my analysis.

Climate And Crime: Examining The Relationship Between Extreme Weather Events And Crime Rates In The United States, Erin Tully

CMC Senior Theses

This study attempts to determine whether there is a relationship between extreme weather events and crime rates. Due to the increasing effects of climate change, it is critical we understand the societal effects of extreme weather. Here, a panel data fixed effects regression was used to analyze state and year level data. It was hypothesized that there would be a relationship between crime and extreme events, but the results did not show a statistically significant relationship. Further research with increased geographic and temporal controls is encouraged.