Economics Commons^™

A Proposal To Make Grain Storage Financially Feasible, David L. Garrett

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

The United States has a National Oil Reserve but not a food reserve. Just as the oil reserve is designed to buffer unforeseen disruptions in the critical supply, the nation should also have a food reserve for the same purpose.

The United States and other developed nations have little or no food reserve beyond the typical demands between growing seasons. Marvelous production achievements in agriculture beginning in the early 1960s and known as the “Green Revolution” are now leveling off. Food production, suffering from such negative side effects as reduced water tables, is being outstripped by population growth (Bourne, 2009).

Donor-Side Determinants Of Disaggregated Foreign Assistance: A Sur Approach To Understanding U.S. Economic, Military, And Food Aid Commitments, Stephanie Hugie

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

This study addresses whether the absolute and relative impact of economic, political, and humanitarian variables that restrain or boost U.S. foreign assistance varies for different types of aid, from a strictly domestic decision-making framework. Using a SUR analysis for U.S. economic, military, and food aid obligations, the various aid budgets indeed behave differently with respect to the explanatory variables. GDP growth, the military budget, and Congressional orientation are more suitable predictors for economic assistance than for food or military assistance. Food aid is less likely to be correlated with the ideological orientation of the Congress and President, and is not …

Cultural Compatibility: Economic Development In Eastern Europe, Daniel Brilliant

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

The objective of Daniel Brilliant’s research is to explore the relationship between culture and economic prosperity in the former communist countries of Eastern Europe. Learning why some of these countries do better than others is of interest in discovering what causes a country’s economy to grow in general. Knowing the causes of economic growth helps in determining what policies, if any, can be adopted by a country to help promote economic growth. Some have theorized that government policies are at the heart of prosperity. Others have speculated that cultural factors play a large role in determining if such policies will …

Essays On Population Aging And Social Security In The U.S., Shantanu Bagchi

All Graduate Theses and Dissertations, Spring 1920 to Summer 2023

Over the past few decades, falling birth rates and increasing life expectancies have threatened the viability of social security programs all across the Organisation for Economic Co-operation and Development (OECD). In this dissertation, I attempt to shed some light on the extent of the crisis that the social security program in the United States (U.S.) currently faces, and I also recommend one possible reform policy. In the first essay, I provide an alternative estimate of the impact of population aging on the future social security benefits in the U.S., while accounting for the household-level and macroeconomic adjustments to population aging. …

Three Essays On The Economic Impact Of Bovine Spongiform Encephalopathy In The United States, Rachna Gollamudi

All Graduate Theses and Dissertations, Spring 1920 to Summer 2023

The first native-born case of Bovine Spongiform Encephalopathy (BSE or commonly known as Mad Cow Disease) in North American continent was reported on 20 May 2003 in central Alberta, Canada. The first case of BSE in the United States was announced on 23 December 2003.

My dissertation is divided into three essays on the economic impact of the outbreak of Bovine Spongiform Encephalopathy (BSE) in the United States in December 2003. The first essay focuses on quantifying the impact of the outbreak of BSE in the United States and Canada on the stock returns of major publicly traded agribusiness firms …

Gis-Based Estimation Of Housing Amenities: The Case Of High Grounds And Stagnant Streams, Shibashis Mukherjee, Arthur J. Caplan

Applied Economics Faculty Publications

We use GIS and econometric methods to estimate the marginal implicit values of environmental amenities associated with residential land parcels in the mountain town of Logan, Utah. Amenities include proximity to open spaces (such as parks, golf courses and lakes), commercial zones, major roads, streams, and general visibility of surrounding topography in the valley as determined by the elevation of the land parcel. The amenity value estimates are corrected for spatial autocorrelation. We find spatially dependent relationships between (1) a parcel’s value and its elevation, and (2) a parcel’s value and its adjacency to a stagnant stream. To our knowledge, …

Matching Grants, Income Redistribution And Decentralized Leadership, Arthur J. Caplan, C. Emilson, D. Silva

Applied Economics Faculty Publications

We examine the decentralized provision of an impure public good by regional governments in a federation similar in certain respects to both the European Union and the United States. The central authority redistributes income and provides matching grants on a per rate basis after it observes the regions’ contributions to the impure public good. Imperfectly mobile workers react to regional and central governments’ policies by establishing residence in their most preferred region. Despite imperfect labor mobility, we show that the allocation of the impure public good and the interregional income redistribution policy are generally efficient in a federation with decentralized …

Carbon Sequestration And Permit Trading On The Competitive Fringe, Arthur J. Caplan

Applied Economics Faculty Publications

This paper makes two contributions to the carbon-sequestration literature. The first is the development of a theoretical framework in which sequestration and permit trading are analyzed jointly in the context of a competitive fringe model. The second is a numerical analysis demonstrating the role market structure, or market power, might play in the determination of an equilibrium sequestration allocation and carbon price. We present three comparative-static cases, the first two of which assess the impact of relative changes in the cost structures of the dominant firm and competitive fringe. For these two cases we find that the equilibrium allocation of …

Foreign Direct Investment, Non-Traded Goods And Real Wages, Reza Oladi, John Gilbert, H. Beladi

Applied Economics Faculty Publications

Using a three‐sector general equilibrium model with non‐traded goods, we investigate the impact of foreign direct investment on the real wages of skilled and unskilled workers. We show that foreign direct investment increases the real wages of skilled and unskilled workers alike, but widens the gap between the two under plausible conditions.

Black-White Differences In Wealth Accumulation Among Americans Nearing Retirement, Eun Hyei Shin

All Graduate Theses and Dissertations, Spring 1920 to Summer 2023

Using data from the 2006 Health and Retirement Study (HRS), this study examines what types of assets and levels of savings are held by Black near-retirees, while comparing how types of assets and levels of savings of Black near-retirees differ from those of White near-retirees. Through the use of multivariate analyses, this study further investigates the effects of being Black on the levels of savings, the likelihood of holding IRAs, and the likelihood of being financially prepared for retirement. The study sample includes 4,077 individuals between the ages of 51 and 64, and the subsamples consist of 680 Black and …

Three Essays On Environmental- And Spatial-Based Valuation Of Urban Land And Housing, Lu Liu

All Graduate Theses and Dissertations, Spring 1920 to Summer 2023

This dissertation attempts to provide a comprehensive examination on the non-market valuation of the effect of open space amenities and local public infrastructure on the value of urban land and housing with both spatial heterogeneity and project heterogeneity. The demand for raw land is a derived demand for housing built on it. Therefore, we need to examine the land market and the housing market together. On the one hand, we estimate the value of urban land in a market that does not satisfy the usual assumptions of a competitive market structure as well as incentive incompatibility issues for transaction participants, …

Three Essays In Forward Rate Unbiasedness Hypothesis, Devalina Chatterjee

All Graduate Theses and Dissertations, Spring 1920 to Summer 2023

The objective of this dissertation is to verify and explain the forward exchange rate unbiasedness hypothesis in the foreign exchange market. Since in most of the cases the unbiasedness hypothesis fails to hold, we try to provide three different explanations of this puzzling behavior in the three essays. The first essay tries to resolve the forward premium puzzle by addressing the model misspecification issue and thereby adding a time-varying risk premium term in the percentage change specification. The risk premium term is modeled using the GARCH-M representation and the model is estimated by applying a GARCH (1, 1) specification. The …

Can Fighting Grade Inflation Help The Bottom Line?, Arthur J. Caplan, John Gilbert

Applied Economics Faculty Publications

This article uses a rich set of student transcript data to estimate the economic cost incurred by a university when it does not adopt a ‘mean-shift grading policy’ to fight grade inflation. We show that even in the face of moral hazard constraints a university can enhance its profitability by fighting grade inflation with a distribution-shifting policy.

Gis-Based Estimation Of Marginal Implicit Prices Of Housing Amenities: The Case Of High Ground And Stagnant Streams, Arthur J. Caplan

Applied Economics Faculty Publications

We use GIS and econometric methods to estimate the marginal implicit values of environmental amenities associated with residential land parcels in the mountain town of Logan, Utah. Amenities include proximity to open spaces (such as parks, golf courses and lakes), commercial zones, major roads, streams, and general visibility of surrounding topography in the valley as determined by the elevation of the land parcel. The amenity value estimates are corrected for spatial autocorrelation. We find spatially dependent relationships between (1) a parcel’s value and its elevation, and (2) a parcel’s value and its adjacency to a stagnant stream. To our knowledge, …

Estimating Hypothetical Bias In Economically Emergent Africa: A Generic Public Good Experiment, Arthur J. Caplan, David Aadland, Anthony Macharia

Applied Economics Faculty Publications

This paper reports results from a contingent valuation based public good experiment conducted in the African nation of Botswana. In a sample of university students, we find evidence that stated willingness to contribute to a public good in a hypothetical setting is higher than actual contribution levels. However, results from regression analysis suggest that this is true only in the second round of the experiment, when participants making actual contributions have learned to significantly lower their contribution levels. As globalization expands markets, and economies such as Botswana's continue to modernize, there is a growing need to understand how hypothetical bias …

Does "Free Sampling" Enhance The Value Of Public Goods?, Arthur J. Caplan, Douglas Jackson-Smith, Sandra Marquart-Pyatt

Applied Economics Faculty Publications

This study investigates whether a ‘free sampling’ marketing strategy induces an enduring WTP premium effect for public goods. Using data from a unique field experiment involving curbside recycling, we find that the premium effect associated with providing non-participating households a brief opportunity to participate in a curbside recycling program for free is relatively small and not enduring. It may therefore not be cost effective to offer a free-sampling participation incentive for this type (or similar types) of local public good(s).

Probing The Mechanics Of Environmental Kuznets Curve Theory, Jeremy Lynn Kidd

All Graduate Theses and Dissertations, Spring 1920 to Summer 2023

The theory of the Environmental Kuznets Curve (EKC) proposes to answer important questions regarding the connections between economic growth (development) and the environment. The theory postulates the environment need not always suffer as the economy develops, and it has generated strong support and opposition. Rather than attempting to defend or debunk EKC theory, this research challenges a practice engaged in by proponents and opponents alike. Simplifying assumptions are a necessary part of economic analysis, but this research shows that any assumptions may not be universally applicable. Utilizing, in turn, a simple one-good model and then a more complicated two-good model, …

Estimating The Effectiveness Of A Vehicle Miles Traveled Tax In Reducing Particulate Matter Emissions, Jordan Larsen, Arthur J. Caplan

Applied Economics Faculty Publications

This study estimates the effectiveness of a vehicle miles travelled (VMT) tax in controlling mobile-source emissions of particulate matter (PM2.5) in a non-attainment area located in northern Utah. Using a recently updated household-level dataset, the study finds no evidence of an endogenous relationship between choice of vehicle type and VMT. VMT elasticities are also estimated with respect to cost per mile that are in some cases larger in magnitude than those reported in previous studies. Based on vehicle emissions tests performed by the Houston Advanced Research Center, the study estimates the reduction in particulate emissions that would occur with two …

A Comparison Of The Economic Profitability Of Specified Risk Management Alternatives For Intermountain West Farmers, Cody D. Bingham

All Graduate Theses and Dissertations, Spring 1920 to Summer 2023

The purpose of this research is to provide quantitative and limited qualitative analysis for the United States Intermountain West on the economic effectiveness of risk management alternatives in an agricultural operation. This research is not meant to be an exhaustive comparison of every potential combination of alternatives and risk scenarios. Instead, specific parameters such as farm size, crops grown, risk attitudes and risk management strategies are set to guide the research and offer a basis of comparison.

This research evaluates several levels of coverage using Multiple Peril Crop Insurance, Crop Revenue Coverage Insurance, Adjusted Gross Revenue – Lite Insurance and …

A Critical Analysis Of The Cooperatives Working Together Program, Spencer N. Parkinson

All Graduate Theses and Dissertations, Spring 1920 to Summer 2023

This study analyzes the effectiveness of the Cooperatives Working Together (CWT) program. This program is believed to have improved the farm-level price of milk since it began in July 2003. To date, no publicly available analysis addressing this question has been conducted. Total milk removed by the program was determined and expressed as a percentage of total milk produced nationally during the same time frame. Elasticity measures from prior studies were adapted to determine the impact of the program. This analysis suggests the program has had a significantly positive effect on the price of milk. Issues dealing with future action …

Essays On Investment Fluctuation And Market Volatility, Chaoqun Lai

All Graduate Theses and Dissertations, Spring 1920 to Summer 2023

This dissertation includes two different groups of objects in macroeconomics and financial economics. In macroeconomics, the aggregate investment fluctuation and its relation to an individual firm's behavior have been extensively studied for the past three decades. Most studies on the interdependence behavior of firms' investment focus on the key issue of separating a firm's reaction to others' behavior from reaction to common shocks. However, few researchers have addressed the issue of isolating this endogenous effect from a statistical and econometrical approach. The first essay starts with a comprehensive review of the investment fluctuation and firms' interdependence behavior, followed by an …

Transportation And Quality Adjusted Basis: Does The Law Of One Price Hold For Feeder Cattle?, Chad Harris

All Graduate Theses and Dissertations, Spring 1920 to Summer 2023

Beef cattle and calves are raised in all areas of the United States. Since beef cattle are scattered throughout the US, there are many different types of cattle with numerous different quality characteristics which are valued differently. Many calves raised until weaning age across the US are then sent to cattle feeding areas primarily located in Texas, Kansas, Colorado, and Nebraska. The prices that are offered for beef calves vary considerably based on quality and location. The theory of the law of one price suggests that prices in areas that trade should not differ by more than the cost of …

An Assessment Of Housing Affordability In Cache County, Utah, Melanie Jewkes

All Graduate Theses and Dissertations, Spring 1920 to Summer 2023

Multiple housing affordability indexes are used to measure and assess housing affordability. Each index has its own definition of affordability, causing varying viewpoints on what is to be considered affordable or unaffordable. Four indexes were used in this study: two from the Department of Housing and Urban Development (HUD), one from the National Association of Realtors (NAR), and the last from the National Low Income Housing Coalition. The indexes were applied to Census data to assess the housing affordability situation of both homeowners and renters in the census tracts of Cache County, Utah. The measures together show distinct differences in …

D Is For Dillydally?, Arthur J. Caplan, John Gilbert

Applied Economics Faculty Publications

Evidence from online assignments in an intermediate microeconomics course suggests that nonprocrastinators (both early-starters and front-loaders) score higher than their dilly-dallying counterparts. Students who are busier in school tend to start their assignments earlier.

Incremental And Average Control Costs In A Model Of Water Quality Trading With Discrete Abatement Units, Arthur J. Caplan

Applied Economics Faculty Publications

This paper answers three questions related to the discrete nature of pollution abatement: (i) does a source's incremental control cost (as defined by the U.S. Environmental Protection Agency) necessarily exceed its average control cost, (ii) is incremental control cost a better approximation of a source's willingness to pay for abatement credits than average control cost, and (iii) exactly how does trading in discrete and continuous abatement markets differ? We find that the answer to the first two questions are both "no", suggesting that the U.S. Environmental Protection Agency needs to refine its reliance on incremental control cost as the sole …

Common Nutritional Deficiencies In The Three Richest Versus The Poorest Countries In The World: Why Are They Similar Or Different?, Ginger Ann Bailey

Undergraduate Honors Capstone Projects

Over one billion people suffer from nutritional deficiencies, and they reside in both the poorest and the richest countries in the world. What needs to be determined is if the deficiencies are similar or different, and most importantly why. By learning what nutritional deficits exist in these countries and why they occur, we are then able to create appropriate interventions in order to improve the nutritional status of populations worldwide.

Consumption, Time Preference, And The Life Cycle, Michael Charles Bailey

Undergraduate Honors Capstone Projects

This paper presents two life-cycle models of consumption implementing novel assumptions about time preference and subjective time. The goal of this paper is to investigate implications of the existence of subjective time to consumption decisions over the life cycle. The first model is a model of 'systematic impatience' and implements the assumption of increasing subjective time by specifying a time dependent rate of time preference upon which the rational consumers in this model maximize lifetime utility. The second model investigates consumer behavior in subjective time, or the subjective sense of the actual passage of time. Consumers in this model maximize …

An Equitable, Efficient, And Implementable Scheme To Control Global Carbon Dioxide Emissions, Arthur J. Caplan, Emilson C.D. Silva

Applied Economics Faculty Publications

We design an international scheme to control global externalities in which autonomous regions choose their own emissions levels in anticipation of interregional resource transfers implemented by an international agency. This agency follows a proportional equity principle, which preserves the status-quo ratio of regional welfare levels. We show that it is individually rational for each region to participate in the proposed international scheme and that regional environmental authorities choose policies that fully internalize the global externality. Although based on an admittedly ideal scheme, these results are especially noteworthy in light of the call for various forms of transfers in international agreements …

Using Choice Question Formats To Determine Compensable Values: The Case Of A Landfill Sitting Process, Arthur J. Caplan, Therese Grijalva, Douglas Jackson-Smith

Applied Economics Faculty Publications

Siting noxious facilities, such as community landfills, is a challenging problem for local planners who recognize the importance of economic efficiency and equity, political acceptance, and meeting federal regulatory standards. Meeting these criteria requires technical and socio-economic analyses in conjunction with public input. Planners may also recognize that political acceptance requires compensation for the host community, either in the form of monetary or in-kind transfers. Following Breffle and Rowe (2002), we use a “resource-toresource” paired-comparison survey method to estimate compensatory values associated with an in-county landfill for both the host and non-host communities. Our results indicate that while a host-community …

A Bayesian Examination Of Information And Uncertainty In Contingent Valuation, David M. Aadland, Arthur J. Caplan, Owen R. Phillips

Applied Economics Faculty Publications

A theoretical framework is presented to explain how agents respond to information under uncertainty in contingent valuation surveys. Agents are provided with information signals and referendum prices as part of the elicitation process. Agents use Bayesian updating to revise prior distributions. An information prompt is presented to reduce hypothetical bias. However, we show the interaction between anchoring and the information prompt creates a systematic bias in willingness to pay. We test our hypotheses in an experimental setting where agents are asked to make a hypothetical, voluntary contribution to a public good. Experimental results are consistent with the model.