Economics Commons^™

New York Camp Econometrics Vi Program, Center For Policy Research

Camp Econometrics-Programs

No abstract provided.

Policy Relevant Heterogeneity In The Value Of Statistical Life: New Evidence From Panel Data Quantile Regressions, Thomas J. Kniesner, W. Kip Viscusi, James P. Ziliak

Economics - All Scholarship

We examine differences in the value of statistical life (VSL) across potential wage levels in panel data using quantile regressions with intercept heterogeneity. Latent heterogeneity is econometrically important and affects the estimated VSL. Our findings indicate that a reasonable average cost per expected life saved cut-off for health and safety regulations is $7 million to $8 million per life saved, but the VSL varies considerably across the labor force. Our results reconcile the previous discrepancies between hedonic VSL estimates and the values implied by theories linked to the coefficient of relative risk aversion. Because the VSL varies elastically with income, …

April 2011, Syracuse Department Of Economics

Economics - All Scholarship

No abstract provided.

Psychotherapy And Pharmacotherapy In Depression, Thomas J. Kniesner, Regina Powers, Thomas Croghan

Economics - All Scholarship

Depression is a condition with various modes of treatment, including pharmacotherapy, psychotherapy, and some combination of each. The role of psychotherapy in the treatment of depression relative to the role of pharmacotherapy is not well understood, and guidelines for psychotherapy in the primary care setting differ from guidelines for specialty care. There is little evidence about the circumstances in actual practice that affect the use of psychotherapy in conjunction with pharmacotherapy.

We retrospectively identify the most important factors associated with the use of psychotherapy in combination with pharmacotherapy in the treatment of depression. Specifically, we study provider choice, health plan …

Medical Technology And The Production Of Health Care, Badi H. Baltagi, Francesco Moscone, Elisa Tosetti

Center for Policy Research

This paper investigates the factors that determine differences across OECD countries in health outcomes, using data on life expectancy at age 65, over the period 1960 to 2007. We estimate a production function where life expectancy depends on health and social spending, lifestyle variables, and medical innovation. Our first set of regressions includes a set of observed medical technologies by country. Our second set of regressions proxy technology using a spatial process. The paper also tests whether in the long-run countries tend to achieve similar levels of health outcomes. Our results show that health spending has a significant and mild …

Do The Gses Expand The Supply Of Mortgage Credit? New Evidence Of Crowd Out In The Secondary Mortgage Market, Stuart A. Gabriel, Stuart S. Rosenthal

Economics - All Scholarship

The dramatic government takeover of Fannie Mae and Freddie Mac in September, 2008 was motivated in part by a desire to ensure a continued flow of credit to the mortgage market. This study examines a closely related issue: the extent to which GSE activity crowds out mortgage purchases by private secondary market intermediaries. Evidence of substantial crowd out suggests that government support for the GSEs may be less warranted, whereas the absence of crowd out implies that GSE loan purchases enhance liquidity.

Using 1994-2008 HMDA data for conventional, conforming sized loans, three distinct periods with regard to GSE crowd out …

Testing For Breaks In Cointegrated Panels With Common And Idiosyncratic Stochastic Trends, Chihwa Kao, Lorenzo Trapani, Giovanni Urga

Center for Policy Research

In this paper, we develop tests for structural change in cointegrated panel regressions with common and idiosyncratic trends. We consider both the cases of observable and nonobservable common trends, deriving a Functional Central Limit Theorem for the partial sample estimators under the null of no break. We show that tests based on sup-Wald statistics are powerful versus breaks of size , also proving that power is present when the time of change differs across units and when only some units have a break. Our framework is extended to the case of cross correlated regressors and endogeneity. Monte Carlo evidence shows …

Financial Constraints On Corporate Goodness, Jeffrey D. Kubik, Jose A. Scheinkman, Harrison Hong

Economics - All Scholarship

We model the firm's optimal choice of capital and goodness subject to financial constraints. Managers and shareholders derive benefits over profits and social responsibility. Goodness is costly and its marginal benefit is finite; as a result, less-constrained firms spend more on goodness. We verify that less-constrained firms do indeed have higher social responsibility scores. Our empirical analysis addresses identification issues that have long plagued the corporate social responsibility literature, establishing the causality of this relationship using a natural experiment. During the technology bubble, previously constrained firms experienced a temporary relaxation of their constraints and their goodness scores also temporarily increased …

The Value Of A Statistical Life: Evidence From Panel Data, Thomas J. Kniesner, W. Kip Viscusi, Christopher Woock, James P. Ziliak

Economics - All Scholarship

This article addresses fundamental long-standing concerns in the compensating wage differentials literature and its public policy implications: the econometric properties of estimates of the value of statistical life (VSL) and the wide range of such estimates. Here we address most of the prominent econometric issues using panel data, a new and more accurate fatality risk measure, and systematic application of panel data estimators. Controlling for measurement error, endogeneity, latent individual heterogeneity that may be correlated with the regressors, state dependence, and sample composition yields estimates of the value of a statistical life in the range of about $6 million to …

Instrumental Variable Estimation Of A Spatial Autoregressive Panel Model With Random Effects, Badi Baltagi, Long Liu

Economics - All Scholarship

This paper extends the instrumental variable estimators of Kelejian and Prucha (1998) and Lee (2003) proposed for the cross-sectional spatial autoregressive model to the random effects spatial autoregressive panel data model. It also suggests an extension of the Baltagi (1981) error component 2SLS estimator to this spatial panel model.

Adam Smith's Essentials: On Trust, Faith, And Free Markets, Jerry M. Evensky

Economics - All Scholarship

When trust is shaken, individuals pull back and the market system contracts. Where trust grows, individual energy and creativity are unleashed and the system grows. In Adam Smith’s vision of humankind’s progress, trust is the central theme. The Great Recession represents a classic case of a crisis of trust. Looking back to the work of Smith offers insight into the role of citizens and the State in creating an fruitful market environment based on trust, and the challenge of this process, given the human frailty of individuals (unfortunately, we are not angels) and the potential for State power to be …

Essays On Foreign Direct Investment, Agglomeration And Productivity, Fariha Kamal

Economics - Dissertations

This dissertation investigates the role of foreign direct investment and agglomeration economies in the process of industrial development, with a focus on the productivity of manufacturing firms. The first chapter analyzes the importance of the source of foreign direct investment on the performance of domestic Chinese firms. The second chapter studies the interaction between foreign and domestic manufacturing firms operating in the same industry and located within the same Chinese city. The third chapter examines the response of multinational companies to changes in domestic institutions. My findings highlight the importance of the source of foreign direct investment, proximity to economic …

Essays On Testing Hypotheses When Non-Stationarity Exists In Panel Data Models, Sang Gon Na

Economics - Dissertations

This dissertation consists of two essays on testing hypotheses in panel data models when non-stationarity exists in the model. This is done under the high-dimensional framework where both n (cross-section dimension) and T (time series dimension) are large. In the first essay, I discuss the limiting distribution of the t-statistic; using different panel data estimators and propose using the t-statistic based on Feasible GLS estimator. In the second essay, I develop the bootstrap F-statistic for cross-sectional independence in a panel data model with factor structure.

The first essay considers the problem of hypotheses testing in a simple panel data regression …

Instrumental Variable Estimation Of A Spatial Autoregressive Panel Model With Random Effects, Badi H. Baltagi, Long Liu

Center for Policy Research

This paper extends the instrumental variable estimators of Kelejian and Prucha (1998) and Lee (2003) proposed for the cross-sectional spatial autoregressive model to the random effects spatial autoregressive panel data model. It also suggests an extension of the Baltagi (1981) error component 2SLS estimator to this spatial panel model.

Tables Of Percentage Points Of The K-Variate Normal Distribution For Large Values Of K, William C. Horrace

Economics - All Scholarship

This paper gives tabulations of the upper a percentage points of the maximum absolute value of the k-variate normal distribution with common correlation p for values of k as high as 500. The tables are useful for performing multiple comparison procedures in experiments with large numbers of treatments.

Accounting For Disability Insurance In The Dynamic Relationship Between Disability Onset And Earnings, Perry Singleton

Economics - All Scholarship

The onset of a work-limiting disability coincides with an immediate decline in earnings with little recovery. This study examines whether this relationship is attributable to the labor disincentives of disability insurance. The data come from the Survey of Income and Program Participation linked to administrative data from the Social Security Administration. The analysis suggests that disability insurance accounts for little of the initial drop in earnings at the time of disability onset, but its effect may increase as time since disability onset elapses. The results highlight the advantages of immediate, though temporary disability benefits.

November 2010, Syracuse Department Of Economics

Economics - All Scholarship

No abstract provided.

Using Actual Betting Percentages To Analyze Sportsbook Behavior: The Canadian And Arena Football Leagues, Rodney Paul, Andrew P. Weinbach, Kristin K. Paul

Falk College Research Center

Sportsbook behavior is tested for the Canadian and Arena Football Leagues using real sportsbook betting percentages from on-line sportsbooks. The balanced book hypothesis of the traditional sportsbook models does not appear to hold for these leagues, as favorites and overs attract more than 50 percent of the betting dollars. Although there is some slight evidence toward shading the line in these directions, there is also no overwhelming evidence supporting the Levitt (2004) hypothesis, as sportsbooks do not appear to be actively pricing to maximize profits. In general, the results seem more consistent with the sportsbook pricing as a forecast, content …

New York Camp Econometrics V Program, Center For Policy Research

Camp Econometrics-Programs

No abstract provided.

Seemingly Unrelated Regressions With Spatial Error Components, Badi H. Baltagi, Alain Pirotte

Center for Policy Research

This paper considers various estimators using panel data seemingly unrelated regressions (SUR) with spatial error correlation. The true data generating process is assumed to be SUR with spatial error of the autoregressive or moving average type. Moreover, the remainder term of the spatial process is assumed to follow an error component structure. Both maximum likelihood and generalized moments (GM) methods of estimation are used. Using Monte Carlo experiments, we check the performance of these estimators and their forecasts under misspecification of the spatial error process, various spatial weight matrices, and heterogeneous versus homogeneous panel data models.

A Dynamic Spatial Panel Data Approach To The German Wage Curve, Badi H. Baltagi, Uwe Blien, Katja Wolf

Center for Policy Research

A wage curve is a decreasing function of wages on the regional unemployment rate. Most empirical studies on the wage curve ignore possible spatial interaction effects between the regions which are the primary units of research. This paper reconsiders the western German wage curve with a special focus on the geography of labour markets. Spillovers between regions are taken into account. The paper tests whether the unemployment rate in the larger surrounding region also affects wages. In addition, agglomeration effects and effects of local monopsony are assessed. The main data base is a random sample of 974,179 employees observed over …

Hedonic Wage Equilibrium: Theory, Evidence And Policy, Thomas J. Kniesner, John D. Leeth

Economics - All Scholarship

We examine theoretically and empirically the properties of the equilibrium wage function and its implications for policy. Our emphasis is on how the researcher approaches economic and policy questions when there is labor market heterogeneity leading to a set of wages. We focus on the application where hedonic models have been most successful at clarifying policy relevant outcomes and policy effects, that of the wage premia for fatal injury risk. Estimates of the overall hedonic locus we discuss imply the so-called value of a statistical life (VSL) that is useful as the benefit value in a cost-effectiveness calculation of government …

Alternative Technical Efficiency Measures: Skew, Bias And Scale, Qu Feng, William C. Horrace

Economics - All Scholarship

In the fixed-effects stochastic frontier model an efficiency measure relative to the best firm in the sample is universally employed. This paper considers a new measure relative to the worst firm in the sample. We find that estimates of this measure have smaller bias than those of the traditional measure when the sample consists of many firms near the efficient frontier. Moreover, a two-sided measure relative to both the best and the worst firms is proposed. Simulations suggest that the new measures may be preferred depending on the skewness of the inefficiency distribution and the scale of efficiency differences.

The Long-Run Labor-Market Consequences Of Civil War: Evidence From The Shining Path In Peru, Jose Galdo

Economics - All Scholarship

This study exploits district-level variation in the timing and intensity of civil war violence to investigate whether early-life exposure to civil wars affects labor-market outcomes later in life. In particular, we examine the impacts of armed conflict in Peru, a country that experienced the actions of a tenacious, brutally effective war machine, the Shining Path, between 1980 and 1995. This study finds that the most sensitive period to early-life exposure to civil war violence is the first 36 months of life. A one standard deviation increase in civil war exposure leads to a four percent fall in adult monthly earnings. …

Insuring Against Drought‐Related Livestock Mortality: Piloting Index Based Livestock Insurance In Northern Kenya, Andrew G. Mude, Sommarat Chantarat, Christopher B. Barrett, Michael R. Carter, Munenobu Ikegami, John G. Mcpeak

Economics - All Scholarship

Climate related shocks are among the leading cause of production and efficiency losses in smallholder crop and livestock production in rural Africa. Consequently, the identification of tools to help manage the risks associated with climactic extremities is increasingly considered to be amongst the key pillars of any agenda to enhance agricultural growth and welfare in rural Africa. This paper describes the application of a promising innovation in insurance design – index‐based insurance – that seeks to bring the benefits of formal insurance to help manage the weather‐related risks faced by rural crop and livestock producers in low‐income countries. In particular, …

Economic Implications Of Anti-Americanism, Brenda Jennifer Bee

Renée Crown University Honors Thesis Projects - All

This capstone project is a multidisciplinary investigation into a problem that has surfaced with the rise of globalization. It explores the negative sentiments in Europe towards Americans, their recent history, and future implications. It was designed to be multidisciplinary because of the complexity of the issue at hand. It stretches from political to anthropological, both in the context of communications and economics and finally their synergistic affect in fostering certain feelings in different European nations about the American way of life. I show how certain negative feelings can change behavior and preferences for American goods and services and how it …

The Influence Of New Medications On Prescribing Behavior By Practice Type: A Regression Analysis, Rita M. Pattarini

Renée Crown University Honors Thesis Projects - All

Objective: To determine whether the type of practice to which physicians belong influences the types of medications they prescribe

Methods: The study used data from the National Ambulatory Medical Care Survey (NAMCS) to conduct a series of regressions for two pairs of medications. The first pair was for the treatment of high cholesterol. Advicor was the new medication and Lovastatin was the competitor. The second pair was for the treatment of arthritis. Humira was the new medication and Remicade was the competitor. For each pair, there were two sets of regressions that consisted of an unrestricted regression with all patients …

Chinese Job Growth And Workers’ Injury Compensation In China, Ann O'Neill

Renée Crown University Honors Thesis Projects - All

Over the past decade, the PRC has made dramatic changes to its labor contract laws, corporate laws, and social welfare system in an effort to improve workers' wellbeing and decrease the impact of rights violations on the public healthcare system and national budget. This paper seeks to determine the effect of changes in social welfare policy made in 2003 on workplace injuries and illness in light of the domestic job growth that took place at that time. In 2003, changes in marketplace behavior, corporate law, and enterprise management policy led to a trend break in employment, wages, and insurance coverage …

Do Ct Scans Help Prevent Cancer-Related Deaths?, Auyon J. Ghosh

Renée Crown University Honors Thesis Projects - All

This paper uses a region-level estimation approach associated with medical procedures to identify the effectiveness of X-ray Computed Axial Tomography (CT) scans as a diagnostic tool in preventing cancer-related deaths. In order to measure the effects of the CT scan on cancer-related deaths, I use data from both the National Health Interview Survey and the Vital Statistics of the United States. For all four regions, we observe an increase in CT scan use after 1979 or, as illustrated specifically in the figure, from 1975 to 1980. All four regions exhibit marked increases in lung cancer-related deaths, very little fluctuation in …

America In Recovery: Tracking And Analyzing The Obama Stimulus During 2009, Gregory Cassel

Renée Crown University Honors Thesis Projects - All

This paper tracks and analyzes the American Recovery and Reinvestment Act (ARRA) of 2009, better known as the Obama stimulus plan during the 2009 year. As one of the most expensive public policies in history, the ARRA was designed to turn around an ailing economy by creating and preserving jobs, investing in key areas, providing relief to States and individuals, and tax cuts. Thus, it is important and useful to track the policy in order to see if it is doing what it is supposed to. Using federal agency Financial and Activity Reports, I create detailed graphs showing where the …