Economics Commons^™

Rehab Or Relocation? Estimating The Demand For Cocaine Through An American Port City Analysis, Gustave A. Bartuska

Renée Crown University Honors Thesis Projects - All

Over the past five decades American drug policy can succinctly be classified by two words: expensive and punitive. American drug policy makers have conducted the “war on drugs” largely through supply side intervention. As the theory goes, by attacking drug producers, drug prices will rise due to the increased risk faced by suppliers, this risk will in turn be passed along to consumers in the form of higher prices. In order to critically asses the merits of such an expensive antidrug policy it is essential to estimate the price elasticity of demand for drugs.

The main finding of this paper …

The Preliminary Report Of The New York Commission On Property Tax Relief, John Yinger

Center for Policy Research

It’s Elementary is a series of essays on topics in education and education policy. The main focus is on education finance in New York State, but general research findings in education and education policy issues in several other states are also discussed. John Yinger, Professor of Economics and Public Administration at the Maxwell School, Syracuse University is the author of most of these essays, although a few are written by or co-authored with other scholars.

New York Camp Econometrics Iii Program, Center For Policy Research

Camp Econometrics-Programs

No abstract provided.

Semiparametric Deconvolution With Unknown Error Variance, William C. Horrace, Christopher F. 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 an application to the stochastic frontier model.

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.

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.

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.

Fixed-Effect Estimation Of Highly-Mobile Production Technologies, William C. Horrace, Kurt E. Schnier

Center for Policy Research

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.

Reform In New York State’S Education Aid Formula?, John Yinger

Center for Policy Research

It’s Elementary is a series of essays on topics in education and education policy. The main focus is on education finance in New York State, but general research findings in education and education policy issues in several other states are also discussed. John Yinger, Professor of Economics and Public Administration at the Maxwell School, Syracuse University is the author of most of these essays, although a few are written by or co-authored with other scholars.

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 …

Is A Circuit Breaker The Solution For Property Tax Relief In New York?, John Yinger

Center for Policy Research

It’s Elementary is a series of essays on topics in education and education policy. The main focus is on education finance in New York State, but general research findings in education and education policy issues in several other states are also discussed. John Yinger, Professor of Economics and Public Administration at the Maxwell School, Syracuse University is the author of most of these essays, although a few are written by or co-authored with other scholars.

Property Tax Relief In New York State, John Yinger

Center for Policy Research

It’s Elementary is a series of essays on topics in education and education policy. The main focus is on education finance in New York State, but general research findings in education and education policy issues in several other states are also discussed. John Yinger, Professor of Economics and Public Administration at the Maxwell School, Syracuse University is the author of most of these essays, although a few are written by or co-authored with other scholars.

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

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, …

Binary Economics And The Case For Broader Ownership, Robert Ashford

College of Law - Faculty Scholarship

Binary economics simultaneously offers a paradigm for understanding economic efficiency, growth, and justice that is foundationally distinct from classical, neoclassical, Keynesian, and socialist economics. First proposed by Louis Kelso, binary economics also offers a prescription for establishing a more inclusive, competitive and democratic private property system, one that universalizes the right to acquire capital with the earnings of capital. Focusing on an important anomaly left unexplained or poorly explained classical, neoclassical, and Keynesian economics (i.e., the persistence of unutilized productive capacity in a context in which markets are supposedly becoming more efficient) and left unremedied by any approach yet applied, …

Sozialpolitik Nach Verursacherprinzip : Beispiele Der Anwendung Aus Arbeit, Gesundheit, Sucht, Schule Und Wohnen, Isidor Wallimann

Books

Sozialpolitik nach Verursacherprinzip explores the application of the polluter pays principle to a variety of social policies. It specifically examines possibilities in labor, health, addiction, education, and housing policies.

The Interaction Of Metropolitan Area Costs And The Federal Earned Income Tax Credit: One Size Fits All?, Katie Fitzpatrick, Jeffrey P. Thompson

Center for Policy Research

The Federal Earned Income Tax Credoit (EITC) contributed to increasing employment rates for single women during the 1990s. This paper expands on what is known about the labor supply response to the EITC by exploiting differences in the cost-of-living faced by potentially eligible recipients in different geographic areas. Using the 1993 EITC expansion, we demonstrate that the labor supply response varies considerably with metropolitan area cost-of-living. We identify an increase in labor force participation among single mothers of as much as 10 percentage points in the lowest cost metropolitan areas. There is no discernable participation response in metropolitan areas with …

Testing For Heteroskedasticity And Spatial Correlation In A Random Effects Panel Data Model, Badi H. Baltagi, Seuck Heun Song, Jae Hyeok Kwon

Center for Policy Research

A panel data regression model with heteroskedastic as well as spatially correlated disturbance is considered, and a joint LM test for homoskedasticity and no spatial correlation is derived. In addition, a conditional LM test for no spatial correlation given heteroskedasticity, as well as a conditional LM test for homoskedasticity given spatial correlation, are also derived. These LM tests are compared with marginal LM tests that ignore heteroskedasticity in testing for spatial correlation, or spatial correlation in testing for homoskedasticity. Monte Carlo results show that these LM tests as well as their LR counterparts perform well even for small N and …

New Evidence On The Dynamic Wage Curve For Western Germany: 1980-2004, Badi H. Baltagi, Uwe Blien, Katja Wolf

Center for Policy Research

Blanchflower and Oswald (1994) reported that they have found an 'empirical law of economics'--the Wage Curve. Our paper reconsiders the western German Wage Curve using disaggregated regional data and is based on almost one million employees drawn from the Federal Employment Services of Germany over the period 1980-2004. We find that the wage equation is highly autoregressive but far from unit root. The unemployment elasticity is significant but relatively small: only between -0.02 and -0.04. We also check the sensitivity of this elasticity for different population groups (young versus old, men versus women, less educated versus highly educated, German native …

Testing For Heteroskedasticity And Serial Correlation In A Random Effects Panel Data Model, Badi H. Baltagi, Byoung Cheol Jung, Seuck Heun Song

Center for Policy Research

This paper considers a panel data regression model with heteroskedastic as well as serially correlated disturbances, and derives a joint LM test for homoskedasticity and no first order serial correlation. The restricted model is the standard random individual error component model. It also derives a conditional LM test for homoskedasticity given serial correlation, as well as a conditional LM test for no first order serial correlation given heteroskedasticity, all in the context of a random effects panel data model. Monte Carlo results show that these tests, along with their likelihood ratio alternatives, have good size and power under various forms …

Financial Development And Openness: Evidence From Panel Data, Badi H. Baltagi, Panicos O. Demetriades, Siong Hook Law

Center for Policy Research

This paper addresses the empirical question of whether trade and financial openness can help explain the recent pace in financial development, as well as its variation across countries in recent years. Utilizing annual data from developing and industrialized countries and dynamic panel estimation techniques, we provide evidence which suggests that both types of openness are statistically significant determinants of banking sector development. Our findings reveal that the marginal effects of trade (financial) openness are negatively related to the degree of financial (trade) openness, indicating that relatively closed economies stand to benefit most from opening up their trade and/or capital accounts. …

Public School Choice And Integration: Evidence From Durham, North Carolina, Robert Bifulco, Helen F. Ladd, Stephen Ross

Center for Policy Research

Using evidence from Durham, North Carolina, we examine the impact of school choice programs on racial and class-based segregation across schools. Theoretical considerations suggest that how choice programs affect segregation will depend not only on the family preferences emphasized in the sociology literature but also on the linkages between student composition, school quality and student achievement emphasized in the economics literature. Reasonable assumptions about the distribution of preferences over race, class, and school characteristics suggest that the segregating choices of students from advantaged backgrounds are likely to outweigh any integrating choices by disadvantaged students. The results of our empirical analysis …

Don’T Gamble With New York’S Lottery, John Yinger

Center for Policy Research

It’s Elementary is a series of essays on topics in education and education policy. The main focus is on education finance in New York State, but general research findings in education and education policy issues in several other states are also discussed. John Yinger, Professor of Economics and Public Administration at the Maxwell School, Syracuse University is the author of most of these essays, although a few are written by or co-authored with other scholars.

Testing For Random Effects And Spatial Lag Dependence In Panel Data Models, Badi H. Baltagi, Long Liu

Center for Policy Research

This paper derives a joint Lagrande 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 …

Fitting Event-History Models To Uneventful Data, Douglas A. Wolf, Thomas M. Gill

Center for Policy Research

Data with which to study disability dynamics usually take the form of successive current-status measures of disability rather than a record of events or spell durations. One recent paper presented a semi-Markov model of disability dynamics in which spell durations were inferred from sequences of current-status measures taken at 12-month intervals. In that analysis, it was assumed that no unobserved disablement transitions occurred between annual interviews. We use data from a longitudinal survey in which participants' disability was measured at monthly intervals, and simulate the survival curves for remaining disabled that would be obtained with 1- and 12-month follow-up intervals. …

Homeownership Gaps Among Low-Income And Minority Households, Donald R. Haurin, Christopher E. Herbert, Stuart S. Rosenthal

Economics - All Scholarship

Although homeownership rates currently stand at historically high levels for all segments of the U.S. population, large gaps in homeownership rates remain when comparing various groups of the population. As of the third quarter of 2006, the non-Hispanic White (hereafter, White) homeownership rate was 76 percent while African-American and Hispanic homeownership rates were below 50 percent and the Asian homeownership rate was 60 percent. The homeownership gap between African-American and White households was larger in 2006 than it was in 1990, while the homeownership gap between Hispanics and Whites was only slightly smaller in 2006 than it was in 1990. …

November 2007, Syracuse Department Of Economics

Economics - All Scholarship

No abstract provided.

Measurement Error In Earnings Data In The Health And Retirement Study, Jessie Bricker, Gary V. Engelhardt

Economics - All Scholarship

We provide new evidence on the extent of measurement error in respondent-reported earnings data by exploiting detailed W-2 records matched to older workers in the Health and Retirement Study (HRS). Our empirical findings are qualitatively consistent with the findings of previous studies. Mean measurement error in the 1991 HRS earnings data for men is somewhat larger than what has been found in other validation studies, but is still modest, averaging about 0.059 log points, approximately 5.9 percent, or $1,500. For women in 1991, it is 0.067 log points, approximately 6.7 percent, or $916. We find a negative correlation between the …

Bandwidth Selection And The Estimation Of Treatment Effects With Unbalanced Data, Jose Galdo, Jeffrey A. Smith, Dan Black

Economics - All Scholarship

This paper addresses the selection of smoothing parameters for estimating the average treatment effect on the treated using matching methods. Because precise estimation of the expected counterfactual is particularly important in regions containing the mass of the treated units, we define and implement weighted cross-validation approaches that improve over conventional methods by considering the location of the treated units in the selection of the smoothing parameters. We also implement a locally varying bandwidth method that uses larger bandwidths in areas where the mass of the treated units is located. A Monte Carlo study compares our proposed methods to the conventional …

Pinning Down The Value Of Statistical Life, Thomas J. Kniesner, W. Kip Viscusi, Christopher Woock, James P. Ziliak

Economics - All Scholarship

Our research 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 from about $0.5 million to about $21 million. We address most of the prominent econometric issues by applying panel data, a new and more accurate fatality risk measure, and systematic selection of panel estimator in our research. Controlling for measurement error, endogeneity, individual heterogeneity, and state dependence yields both a reasonable average level and narrow range for the estimated value of a …