Economics Commons^™

Sin Taxes And Sindustry: Revenue, Paternalism, And Political Interest, Adam J. Hoffer, William F. Shughart Ii, Michael D. Thomas

Economics and Finance Faculty Publications

Revenue shortfalls associated with the Great Recession and the slow recovery that followed have placed the budgets of many U.S. state and local governments under heavy stress. In the past several years, lingering economic troubles have eroded governmental tax bases while voters have remained strongly resistant to proposals for cutting public spending or raising taxes on income, property, or other broad bases. This has left many states searching for new revenue sources. Particularly attractive targets for "revenue enhancement" are goods that policymakes deem to be "sinful" or misguided because they are bad for the user or generate negative externalities or …

Cultural Influences On Women In Leadership: An Extension Of The Hofstede And Globe Dimensions, Andrea Rae Barlow

Undergraduate Honors Capstone Projects

Technology has forever changed the face of business. Although in the past business markets have been limited to local geographic areas, the concept of outsourcing has opened a diverse spectrum of international markets. An increase in supplies and consumers can improve business effectiveness and efficiency, but entering international markets can be detrimental if the business is unaware of the subtle differences the new market has in regard to leadership styles and cultural values. Hofstede's cultural dimension analysis has been the primary research study for many industry and academic professionals (Bond 2002; Hofstede 1997). However, many scholars are questioning whether Hofstede …

Agco Corporation Valuation, Sean Michael Miller

Undergraduate Honors Capstone Projects

This paper will discuss the excellent growth potential that AGCO Corporation faces and the reason that this company's stock is rated as a hold position. AGCO has seen tremendous progress and is in an industry that shows that a growing world population will continue to need food and more efficient ways to create food. However, based on sensitivities of assumptions in the models presented herein and on a current share price that is already close to my assumed fair value I do not issue a buy recommendation.

Benchmarking An Optimal Pattern Of Pollution Trading: The Case Of Cub River, Utah, Arthur Caplan, Yuya Sasaki

Applied Economics Faculty Publications

This paper employs a recently developed, dynamic trading algorithm to establish a benchmark pattern of trade for a potential water quality trading (WQT) market in the Cub River sub-basin of Utah; a market that would ultimately include both point and nonpoint sources. The algorithm accounts for three complications that naturally arise in trading scenarios: (1) combinatorial matching of traders, (2) trader heterogeneity, and (3) discreteness in abatement technology. The algorithm establishes as detailed a reduced-cost benchmark as possible for the sub-basin by distinguishing a specific pattern of trade among would-be market participants. As such, the algorithm provides a benchmark against …

Antitrust Enforcement In The Obama Adminstration's First Term: A Regulatory Approach, William F. Shughart Ii, Diana W. Thomas

Economics and Finance Faculty Publications

During his presidential campaign, Sen. Barack Obama criticized sharply the lax antitrust law enforcement record of the George W. Bush administration. Subsequently, his first assistant attorney general for antitrust even went so far as to suggest that the Great Recession was, at least in part, caused by federal antitrust policy failures during the previous eight years. This paper sets out to investigate how and in what ways antitrust enforcement has changed since President Obama took office in 2009. We review four recent antitrust cases and the behavioral remedies that were imposed on the defendants in those matters in detail. We …

Corporate Lobbying, Political Connections, And The Bailout Of Banks, Diana W. Thomas, Benjamin M. Blau, Tyler Brough

Economics and Finance Faculty Publications

Political involvement has long been shown to be a profitable investment for firms that seek favorable regulatory conditions or support in times of economic distress. But how important are different types of political involvement for the timing and magnitude of political support? To answer this question, we take a comprehensive look at the lobbying expenditures and political connections of banks that were recipients of government support under the 2008 Troubled Asset Relief Program (TARP). We find that politically engaged firms were not only more likely to receive TARP support, but they also received a greater amount of TARP support and …

Using Field-Level Characteristics As Proxy Measures To Test For The Presence Of Economies Of Scale In Nonpoint Pollution Control, Arthur J. Caplan, John Gilbert, Devalina Chatterjee

Applied Economics Faculty Publications

We use parametric and nonparametric methods to estimate correlations between average control cost and three field-level characteristics—field size and delivered phosphorous per field and per acre—as proxies for economies of scale in controlling nonpoint pollution. We combine load and delivery-ratio estimates for more than 12,000 fields in the Bear River Basin, Utah, with estimates of control costs and effectiveness of management practices from the literature. Results suggest a negative relationship between control cost and delivered phosphorous per field and per acre. Ranking fields by phosphorous load therefore prioritizes management-practice subsidies by economies of scale.

The Effects Of Financing Unfunded Social Security With Consumption Taxation When Consumers Are Shortsighted, Michael P. Clagg

All Graduate Plan B and other Reports, Spring 1920 to Spring 2023

Using a representative-agent life-cycle model with consumer shortsightedness, I study an unfunded social security program financed via consumption taxation. Compared to financing an unfunded program with payroll taxation, I find that there is only a slight increase in well-being across planning horizons that is generated by a program with a consumption tax.

We suggest that both our data and the available time-series evidence are consistent with Milton Friedman's view that people save to smooth consumption over several years but, because of liquidity constraints, caution, or shortsighted-ness do not seek to smooth consumption over longer horizons. . . . Indeed, Milton …

China And The Northeast Region: Agricultural Machinery, Kelsey White

Undergraduate Honors Capstone Projects

Using Chinese government statistical data, relevant laws and policy regulations, and current market projections, this report aims to help new-to-market U.S. exporters understand the development of the agricultural machinery market in China and the Northeast region, identifying both challenges and opportunities.

With a vast land area and diverse topography, China is one of the world's top agricultural producers. Agriculture accounts for about 11% of China's GDP and more than 40% of China's employment. Over the past several years, China has been increasing its agricultural mechanization in an effort to move from traditional to modern farming. The central government has been …

Measuring The Environmental Cost Of Hypocrisy, Elliot Jordan Anderson

All Graduate Theses and Dissertations, Spring 1920 to Summer 2023

This thesis proposes a method for quantifying hypocrisy's environmental costs. The question naturally arises, why attempt to measure people's hypocrisy? The answer is that the possible spillover effects associated with educating people about their quantified hypocritical choices in life likely far outweigh those that would be obtained through standard price incentives. Hopefully the business adage “that which gets measured gets managed”, holds true in this case. Through deeper introspection, we would be taking personal ownership of the externalities to which we contribute, perhaps with a longer-lasting effect on our consumptive behaviors.

The survey will be administered at four different coffee …

Pricing And Hedging Asian Options, Vineet B. Lakhlani

All Graduate Plan B and other Reports, Spring 1920 to Spring 2023

This paper will mainly focus on a path-dependent option—Asian options. The value of a path-dependent option is affected by how the price of the underlying asset was reached at the time of maturity. Unlike a vanilla European option, the pay-off of an Asian option is a function of multiple points up to and including the price at expiry. Asian options are some of the most common exotic options traded. As P. Wilmott (2006) and E. G. Haug (2007) both point out, Asian options are popular in the OTC energy markets and in other commodity markets lacking liquidity. [9]

Business Aviation: Utilization, Benefits, And Value, Tony Roberts

All Graduate Plan B and other Reports, Spring 1920 to Spring 2023

In this study, I compare the performance of U.S. companies that use their own aviation transportation for business purposes (users) and those that use commercial transportation (non-users). I conduct qualitative analysis by interviewing CEOs and CFOs of various companies that are both users and non-users. Interviews of CEO’s and CFO’s coupled with numerical evidence are considered to determine advantages or disadvantages of business aviation. Data from the S&P 500 is used to calculate and provide explanation of how using business aviation affects the firms value, profitability, and asset utilization. Using both CAPM and Fama-French Three Factor model, I assess the …

The First Struggles Of The Capitalistic Peace And Its Detractors: An Analysis Of Greek Trade And Its Effects On Foreign Policy In The Athenian State, Joshua Blume

Undergraduate Honors Capstone Projects

Although, a ubiquitous number of articles has arisen recently debating the validity of the so-called "Capitalist Peace," there has been little exploration of the theory from an ancient historical perspective, primarily due to the lack of trade data between countries or city-states. As the primordial birthplace of trade and democracy, there is perhaps no better example than ancient Greece to shed insight into the possible validity of the capitalist peace theory. Utilizing new research involving trade in ancient Greece, this paper seeks to explore the relative validity of the "Capitalist Peace" in ancient Greece by conducting a qualitative analysis of …

American Debtors' Prison: The Rise Of The New York Citizen As A Commercial Participant During The Early American Republic, 1800-1836, Ryan M. Braeger

All Graduate Theses and Dissertations, Spring 1920 to Summer 2023

The following research explores the development of financial culture in the early American republic through the examination of New York's use of debtors' prisons. Beginning with the construction of the historical context surrounding the passage and abolition of the National Bankruptcy Act of 1800, the project takes use of a series of archival sources that exemplify the character of credit in early American economic practices. The emergence of republican financial culture was often at odds with federal judicial and legislative action, the result of which was the creation of state policy and third party organizations dedicated to solving the plight …

Foreign Direct Investment, Foreign Aid, And Socioeconomic Infrastructure In Developing Countries, Amrita Ghosh Dastidar

All Graduate Theses and Dissertations, Spring 1920 to Summer 2023

During the 1970s and 1980s, developing countries, skeptical of foreign investment, imposed several barriers on entry of foreign capital. However, the late 1980s and 1990s marked the onset of globalization, which integrated the whole world into a single global economy. The once-conservative developing nations, realizing the multifarious benefits of foreign direct investment (FDI), began encouraging entry of foreign firms, using various incentives, such as tax holidays, production subsidies, cash grants, labor training grants, and import duty exemptions. Gradually, FDI and foreign aid became two very important sources of foreign capital for these capital-constrained economies. This dissertation is focused on studying …

Feasibility And Co-Benefits Of Biomass Co-Firing: Case In Utah, Bibek Paudel

All Graduate Theses and Dissertations, Spring 1920 to Summer 2023

This research examines the physical and economic feasibility of 5% biomass co-firing in the coal-fired power plants of Utah. Transportation models is used to find out the physical feasibility of 5% biomass co-firing, as well as locate the supply zone for each power plant that would minimize the transportation cost. Additional cost required for 5% biomass co-firing and the economic benefits associated with biomass co-firing are calculated. The additional cost required for 5% biomass co-firing is estimated to be $34.84 million. Previous studies on CO₂ emission reduction are used to compute the economic benefit attain from CO₂ reduction …

Estimating Willingness To Pay For Continued Use Of Plastic Grocery Bags And Willingness To Accept For Switching Completely To Reusable Bags, Jarod Dunn

All Graduate Theses and Dissertations, Spring 1920 to Summer 2023

This thesis demonstrates a surveying method to collect data to obtain tax levels for plastic grocery bag usage. This data was collected through asking respondents about a hypothetical situation in which they were required to pay a tax for using plastic bags or whether they would instead switch to using reusable bags that could be purchased at the grocery store. The respondents were also asked if they already were using reusable bags, how much would the store have to pay them for them to use reusable bags for all grocery shopping trips. From our analysis, people who use reusable bags …

Microfinance As An Effective Development Solution: The Case Of Mongolia, Kjersten Adams

Undergraduate Honors Capstone Projects

Microfinance is increasingly looked at as a development solution for countries around the world. Its development and practice in former communist countries, however, has been relatively unexplored. This study seeks to fill this gap by asking how the practice and operation of microfinance in Mongolia compare to global best practices. Using global best practice frameworks regarding regulatory and organizational environments for microfinance, data gathered from surveys and onsite training observations at Xacbank is used to assess Mongolia's financial sector and its relative compliance to said practices. The analysis helps address the question of whether microfinance has helped or hindered Mongolian …

Is Analyst Over Optimism Creating Price Inefficiency In The Stock Market?, Juan Mauricio Guiliani

All Graduate Plan B and other Reports, Spring 1920 to Spring 2023

This study aims to uncover the relationship between market frictions, measured by price delay, and consensus analyst recommendations on stocks. Analyst recommendations are publicly available to investors, and under the framework of the Efficient Market Hypothesis, should contribute to the efficiency of a stock’s pricing mechanism by providing information to the market that would otherwise not be available. We find evidence that the more favorable recommended stocks in our sample command a higher price delay than less favorably recommended stocks. In other words, the most optimistically recommended stocks are priced less efficiently than other less favorably recommended stocks. We also …

Leveraged Etfs And Intraday Volatility, Adam Welker

All Graduate Plan B and other Reports, Spring 1920 to Spring 2023

This study provides an empirical analysis to determine whether leveraged exchange-traded funds are contributing to excess intraday volatility. The study, which is centered aroudn the introduction dates of six leveraged ETFs, uses high-frequency TAQ data for the S&P 500 constituent stocks to compare volatility before and after the introduction dates. Realized volatility is calculated for the morning, afternoon, and entire trading day during the twenty trading days before, and twenty trading days after each date of interest. There has been a lot of debate recently about whether leveraged ETFs could be increasing swings in intraday volatility. Up until now, this …

The United States Credit Rating Downgrade: European Reaction, Brian Scott Roseman

All Graduate Plan B and other Reports, Spring 1920 to Spring 2023

The purpose of this paper is to answer the important question of how investors viewed the debt obligations from European countries in reaction to the United States credit rating downgrade by Standard and Poor’s on August 5 2011. During this period there were a handful of countries in Europe that still had AAA ratings. This paper looks at the reaction of investors towards Europe, through the medium of Credit Default Swaps (CDSs). By analyzing the changes in CDS spreads, I am able to determine the perceptions of investors regarding the risk of European Sovereigns during the timeframe surrounding the U.S …

Opaqueness Of Financial Institutions, Todd G. Griffith

All Graduate Plan B and other Reports, Spring 1920 to Spring 2023

Spectators and professionals have targeted financial institutions as being at the epicenter of recent markets crises The opaqueness of bank holding companies' assets has been assumed to have created additional volatility and inefficiency within the market. It appears that the capital structure of a bank is the actual driving force behind the inefficiency. I conduct multiple empirical analyses to measure whether the lack to financial institutions asset transparency negatively impacts the ability of the firms price to respond to informational innovations in a timely manner. Through additional econometric tests, I explore several economic theories to narrow in on the root …

Estimation Of Beta In A Simple Functional Capital Asset Pricing Model For High Frequency Us Stock Data, Yuzhe (Yan) Zhang

All Graduate Plan B and other Reports, Spring 1920 to Spring 2023

This project applies the methods of functional data analysis (FDA) to intra-daily returns of US corporations. It focuses on an extension of the Capital Asset Pricing Model (CAPM) to such returns. The CAPM is essentially a linear regression with the slope coefficient β. Returns of an asset are regressed on index return. We compare the estimates of β obtained for the daily and intra-daily returns. The variability of these estimates is assessed by two bootstrap methods. All computations are performed using statistical software R. Customized functions are developed to process the raw data, estimate the parameters and assess their variability. …

Options Vs. Futures: Which On Average Will Have The Greater Payoff?, Ryan Silvester

All Graduate Plan B and other Reports, Spring 1920 to Spring 2023

The use and idea of futures contracts has been around for almost as long as humans have existed. Many of these contracts can be as simple as the shaking of someone’s hand with the agreement to trade an asset for an agreed upon price in the future. These contracts have often been used by farmers to ensure a needed price for an asset, or for a store owner to ensure a needed asset for a given price. The idea of a futures contract is to either buy or sell an asset later on at a specified price. In this paper …

How Are Interest Rates Affecting Household Consumption And Savings?, Lacy Christensen

All Graduate Plan B and other Reports, Spring 1920 to Spring 2023

This paper explores the optimal interest rates that could potentially maximize overall consumption and savings. I attempt to determine whether artificially low interest rates are positively or negatively affecting consumption. There has been speculation on whether the United States needs to raise the effective federal funds rate to provide financial institutions the incentive to lend money and increase household consumption. The Federal Reserve is currently keeping the effective funds rate between 0 and .25 in hopes of increasing consumption levels. This paper uses fifty years of interest rate data to narrow in on an optimal interest rate that leads to …

The Application Of Instructional Design Principles In The Development Of Sportsmanship Education Software And Its Impact On Children’S Acquisition Of Sportsmanlike Attitudes And Behaviors, Michael J. Petersen

All Graduate Theses and Dissertations, Spring 1920 to Summer 2023

Millions of people participate in sporting events as either athletes or spectators, or both. The presence or absence of sportsmanship they experience can affect them in both negative and positive ways. The purpose of this study was to determine whether schoolchildren who use a computer-based sportsmanship education program would learn and exhibit more sportsmanship than those who did not use the software. It was determined that younger children were more affected by the software than the older children were.

The Potential For Growth In Foreign Direct Investment In The Horticultural Sector Of Armenia, Mikayel Khachatryan

All Graduate Theses and Dissertations, Spring 1920 to Summer 2023

This study examines why foreign investors choose to invest in companies in Armenia and is specifically attempting to understand how to attract more investment into the fruit and vegetable companies of Armenia. Investment by foreigners in domestic companies is referred to as foreign direct investment of FDI. The research was completed by gathering information from foreign firms that are already investing in companies in Armenia. This was done by conducting a face-to-face questionnaire with business managers of these companies in Yerevan, Armenia during August and December of 2010. The information gathered from these interviews was used in a statistical analysis …

Structural And Reduced-Form Models: An Evaluation Of Current Modeling Criteria In Econometric Methods, Ashley M. Funk

All Graduate Plan B and other Reports, Spring 1920 to Spring 2023

This paper evaluates the structural form model of John Rust's 1987 paper, Optimal Replacement of GMC Bus Engines: An Empirical Model of Harold Zurcher, by using reduced-form models to evaluate the same data and interpret the results. The question is whether reduced-form modeling such as probit and logit models can be as useful as structural models for prediction.

Ncaa Division I Football Bowl Subdivision: The Importance Of Recruiting And Its Relationship With Team Performance, Nathan S. Lloyd

All Graduate Plan B and other Reports, Spring 1920 to Spring 2023

Talent wins college football games. Wins bring in money. Colleges, fans and media hype up the recruiting season as the key to success in the college football season. Is it though? Athletic programs spend large sums of capital and resources to recruit the most talented players possible. This paper explores the relationship between recruited talent and team performance using a simultaneous equations model. Higher players’ talent leads to better team performance and a recruiting class has its biggest impact immediately following signing. A team’s performance, especially of the most recent season, impacts its ability to recruit. Talent and success experience …

Natural Resource Curse In Nepal With Emphasis On Deforestation And Violence, Abhinav Pathak

All Graduate Plan B and other Reports, Spring 1920 to Spring 2023

For many decades, economists have discussed the role of agricultural productivity and natural resources in economic development. By the late 20th century, various studies showed the poor growth experience of resource-rich countries in the post- world war-II period. Doppellhofer (2000) concluded that none of the countries with extremely abundant natural resources in 1970 grew rapidly for the next 20 years, with the exception of Malaysia, Mauritius and Iceland. Other studies that yielded similar conclusions include Auty (1990), Gelb (1988), Sachs and Warner (1995, 1999), and Gylfason et al. (1999). This phenomenon of lower economic growth among resource abundant countries is …