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Economics Faculty Publications

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Full-Text Articles in Economics

What Type Of Central Banker Dampens The Political Business Cycle? The Case Of Africa, Christine Strong Jan 2023

What Type Of Central Banker Dampens The Political Business Cycle? The Case Of Africa, Christine Strong

Economics Faculty Publications

This article investigates the extent to which central bank independence can help to reduce political business cycles in Africa. Like previous studies, we find evidence of political cycles in our sample of 34 African countries for the period 1980–2018, but our findings show that politicians' ability to manipulate both fiscal and monetary policy depends on the degree of alliance between the fiscal authority and the monetary authority. Indeed, our analysis reveals that the political business cycle worsens when the central banker is an ally whereas a non‐ally central banker is associated with a decrease in the ability of the incumbent …


Environmental Regulations And The Environmental Effect Of Fdi, Mingming Pan Jan 2023

Environmental Regulations And The Environmental Effect Of Fdi, Mingming Pan

Economics Faculty Publications

This paper presents the hypothesis that tightening environmental regulation of a country would improve the effect of inward FDI on its environment. Estimations of a sample of 101 countries over the period 2006-2016 confirmed the hypothesis. The results also provide indirect evidence that countries with weak environmental regulations attract polluting FDI and might deter “clean” FDI.


The Choice Of Technology In Economic Development, Lei Wen, Haiwen Zhou Jan 2023

The Choice Of Technology In Economic Development, Lei Wen, Haiwen Zhou

Economics Faculty Publications

The impact of capital accumulation on job creation is an important and interesting issue in economic development. This model provides a general-equilibrium framework for studying technology choice with unemployment in a developing economy based on micro-foundations. Unemployment in the urban sector results from the existence of efficiency wages. Manufacturing firms engage in oligopolistic competition and choose technologies to maximise profits. A more advanced technology uses more capital and less labour. In the steady state, an increase in the amount of capital induces firms to choose more advanced technologies and the wage rate increases. While a higher capital stock always induces …


Do Lawyers Inhibit Economic Growth? New Evidence From The 50 U.S. States, James V. Koch, Richard J. Cebula Jan 2023

Do Lawyers Inhibit Economic Growth? New Evidence From The 50 U.S. States, James V. Koch, Richard J. Cebula

Economics Faculty Publications

Whether the activities of lawyers might hamper economic growth has been hotly contested over the past three decades. Contradictory conclusions have flowed from evidence that typically has focused on the impact of lawyers on the growth rates of countries. Disputes over definitions and samples that vary among countries have colored portions of these debates. We surmount many of these issues by adopting a 50-state panel covering the period 2005-2018 for the United States and by utilizing widely accepted variables regarding economic activity and who is considered a lawyer. Further, we utilize two distinct measures of the activity of lawyers and …


Unification And Division: A Theory Of Institutional Choices In Imperial China, Haiwen Zhou Jan 2023

Unification And Division: A Theory Of Institutional Choices In Imperial China, Haiwen Zhou

Economics Faculty Publications

Ancient China experienced various rounds of division and unification. Unification was maintained through economic and political institutions such as low tax rates to reduce peasant rebellions and the division of authority among government officials to reduce usurpation of power. A ruler’s choice of institutions to maintain unification is studied in a theoretical model. Interactions among external threats, internal rebellions by peasants, and usurpation of power by government officials are established. A higher level of external threats induces the ruler to choose a higher level of autonomy for government officials and a higher tax rate. That is, equilibrium probability of internal …


Using The Lsat As A Labor Market Thermometer For Lawyers, James V. Koch, Barbara Blake-Gonzalez Jan 2023

Using The Lsat As A Labor Market Thermometer For Lawyers, James V. Koch, Barbara Blake-Gonzalez

Economics Faculty Publications

We rely upon a 50-state, 20-year panel to find that the number of Law School Admissions Test (LSAT) takers is only loosely related to economic conditions—although slightly more for men than for women, who in 2020 accounted for 58% of all LSAT takers. The number of test takers rose more than 35% between 2014 and 2020. This wave accentuated an already existing downtrend in the median real income of lawyers, and thus provides support for the hypothesis that most states have more lawyers than they need.


Economic Freedom And One-Way Truck Rental Prices: An Empirical Note, Alexander Cardazzi, Robert A. Lawson Jan 2023

Economic Freedom And One-Way Truck Rental Prices: An Empirical Note, Alexander Cardazzi, Robert A. Lawson

Economics Faculty Publications

This study examines the one-way truck rental prices for 378 cities. There are large price differentials in one-way rental prices between city pairs. The pull of people toward higher economic freedom locales and push away from lower economic freedom locales is found to be an important determinant of the city-pair price differentials.


Growth And Distribution: Revisting Solow’S Growth Models From The Perspective Of The Marxian Circuit Of Capital, Hee-Young Shin Dec 2022

Growth And Distribution: Revisting Solow’S Growth Models From The Perspective Of The Marxian Circuit Of Capital, Hee-Young Shin

Economics Faculty Publications

The aggregate production function used in Solow’s growth models assumes the constancy in relative income distribution between owners of capital and labor input. The paper discusses the validity of this fundamental assumption and attempts to identify the necessary condition for the balanced and equi-proportional growth of relative incomes from the perspective of the Marxian circuit of capital model. The analysis in this paper shows that the constancy and proportionality in the growth of two social class incomes are not consistent with real-world patterns of the capital accumulation process, in which the decision over capitalization of realized surplus value that determines …


The Affordable Care Act And Women’S Self-Employment In The United States, Margaret Blume-Kohout Oct 2022

The Affordable Care Act And Women’S Self-Employment In The United States, Margaret Blume-Kohout

Economics Faculty Publications

The United States’ Affordable Care Act (ACA) of 2010 improved and expanded availability of non-group health insurance. Previous studies have shown that women in the US workforce value health insurance more highly than men do. Because prior to the ACA self-employed individuals did not have guaranteed access to affordable health insurance coverage, women’s relatively lower rate of self-employment may partly have reflected their greater “job lock” due to employer-based health insurance. This article employs nationally representative survey data for 2009–18 and a quasi-experimental difference-in-difference modeling approach and finds that unmarried women’s probability of self-employment increased by 1.2 percentage points in …


The Personal Saving Rate: Data Revisions And Forecasts, Dean Croushore, Pedro Del Monaco Santos Oct 2022

The Personal Saving Rate: Data Revisions And Forecasts, Dean Croushore, Pedro Del Monaco Santos

Economics Faculty Publications

Revisions to the U.S. personal saving rate are very large and may be predictable. We decompose the revisions of the personal saving rate into those caused by revisions to income and those caused by revisions to household outlays. We use our findings to explore the forecastability of future revisions of the personal saving rate.


A Computational Approach To Ricardo’S And Marx’S Business Cycle Models, Hee-Young Shin Aug 2022

A Computational Approach To Ricardo’S And Marx’S Business Cycle Models, Hee-Young Shin

Economics Faculty Publications

The goal of this paper is to reconstruct both Ricardo's and Marx's nonlinear dynamic models of business cycle, utilizing computational power of Wolfram Mathematica. The paper aims to replicate Ricardo's and Marx's business cycle models and attempts to extend their original ideas to account for some new stylized facts of contemporary capitalist market economies such as financialization and increasing rentiers' income and corporate offshoring phenomenon.


Why Has The Median Real Income Of Lawyers Been Declining?, James V. Koch, Barbara Blake-Gonzalez Jul 2022

Why Has The Median Real Income Of Lawyers Been Declining?, James V. Koch, Barbara Blake-Gonzalez

Economics Faculty Publications

The median real incomes of lawyers have been declining. In 2001, the median real income of lawyers in the 50 states plus the District of Columbia was $129,389 (July 2020 prices). Almost two decades later, in 2020, this number had fallen to $126,930, 1.90% less than in 2001. By contrast, the median real income of workers in all occupations together rose 3.93% between 2001 and 2020, while the median real income of the average family practice physician rose 20.15% and the median real income of a typical economist rose 10.9%. We examine both supply and demand influences to explain the …


Care, Job Guarantee, And Revisiting “Socialization Of Investment”: Insights From Institutional Economics, Zdravka Todorova May 2022

Care, Job Guarantee, And Revisiting “Socialization Of Investment”: Insights From Institutional Economics, Zdravka Todorova

Economics Faculty Publications

The paper discusses commitment to full employment in light of institutional theory and offers a renewed examination of Keynes’s "socialization of investment" concept. The discussion builds on Veblen's theory of human development, predation, and capitalism. It highlights contemporary institutional inquiry in a discussion of ongoing issues of care and social disparities. Based on this, the article formulates problems for a broader inquiry about socialization of investment. The article provides insights about Job Guarantee based on original institutional economics concepts.


Promoting Sustainable Responses To The Us Opioid Epidemic With Community-Academic Partnerships: Qualitative Outcomes From A Statewide Program, David L. Driscoll, Alison Evans Cuellar, Vinod Agarwal, Debra Jones, Kathy Hosig, Mary Beth Dunkenberger Apr 2022

Promoting Sustainable Responses To The Us Opioid Epidemic With Community-Academic Partnerships: Qualitative Outcomes From A Statewide Program, David L. Driscoll, Alison Evans Cuellar, Vinod Agarwal, Debra Jones, Kathy Hosig, Mary Beth Dunkenberger

Economics Faculty Publications

Background: Drug overdose deaths in the United States have continued to increase at an alarming rate. The United States is facing two devastating public health crises– the opioid epidemic and the COVID-19 pandemic. Within this context, one of the most ambitious implementation studies in addiction research is moving forward. Launched in May 2019, the HEALing Communities Study (HCS) was developed by the National Institutes of Health (NIH) and the Substance Abuse and Mental Health Services Administration (SAMHSA) as part of the Helping to End Addiction Long-termSM Initiative (National Institutes of Health, 2020). The goal for this research was to reduce …


Pulling Back The Veil: What Determines Hbcu Campus Enrollments, James V. Koch, Omari H. Swinton Jan 2022

Pulling Back The Veil: What Determines Hbcu Campus Enrollments, James V. Koch, Omari H. Swinton

Economics Faculty Publications

Historically black colleges and universities (HBCUs) are among the least researched sectors of American higher education. This article addresses a portion of this knowledge deficit by focusing on the determinants of the full-time equivalent enrollments of 50 HBCUs between fiscal year FY 2005 and FY 2018 and then comparing them to a broad sample of 182 non-HBCUs. The most noteworthy specific results generated by our analyses are: (1) increased recruitment of white students by HBCUs may not hold the key to HBCU enrollment success; (2) the incomes of the households from which students emanate have a major positive influence on …


Search, Technology Choice, And Unemployment, Constantine Angyridis, Haiwen Zhou Jan 2022

Search, Technology Choice, And Unemployment, Constantine Angyridis, Haiwen Zhou

Economics Faculty Publications

Technology variations among countries account for a significant part of their income differences. In this paper, a firm's technology choice is embedded in a search theoretic framework for unemployment. More advanced technology is assumed to have a higher setup cost, but it is more productive. The model is tractable and the following results are derived analytically. An increase in the unemployment benefit leads to an increase in the equilibrium wage rate, giving an incentive to firms to choose a more advanced technology. Thus, this result regarding unemployment insurance in models with wage posting carries through with Nash bargaining as well. …


The Partition Of Production Between Households And Markets, Christopher Colburn, Haiwen Zhou Jan 2022

The Partition Of Production Between Households And Markets, Christopher Colburn, Haiwen Zhou

Economics Faculty Publications

The process of industrialization was accompanied by the switch from household production to firm production. The industrialization process was also a process of population growth, the appearance of general-purpose technologies, and the expansion of international trade. This paper studies the partition of production between households and firms in an analytically tractable general equilibrium model with a continuum of goods. We show that population growth, development of general-purpose technologies, and the opening of international trade increase the percentage of goods produced by firms. However, with the appearance of a technology biased toward home production, the percentage of goods produced by households …


Introduction To The Political Economy And Feasibility Of Bitcoin And Cryptocurrencies, Spencer J. Pack Jan 2022

Introduction To The Political Economy And Feasibility Of Bitcoin And Cryptocurrencies, Spencer J. Pack

Economics Faculty Publications

No abstract provided.


Measuring Fiscal Interactions In Local Federalism: Evidence From Florida, Kevin Willardsen Aug 2021

Measuring Fiscal Interactions In Local Federalism: Evidence From Florida, Kevin Willardsen

Economics Faculty Publications

Local governments react to one another in expenditure. However, the existing literature concerning these reactions suffer from one of three problems: timing dynamics, county behaviour, or over aggregation. City‐to‐city interaction estimates are shown to shrink up to 50% when appropriately dealing with dynamics and county behaviour using a dynamic spatial Durbin model with a maximum likelihood estimator. Expenditure disaggregation shows that the majority of categories have no spillover. One category, general government expenditure, is responsible for nearly all of the variation. This finding does not fit well with the existing theories for spatial interaction.


On Guessing: An Alternative Adjusted Positive Learning Estimator And Comparing Probability Misspecification With Monte Carlo Simulations, Ben O. Smith, Dustin R. White Jul 2021

On Guessing: An Alternative Adjusted Positive Learning Estimator And Comparing Probability Misspecification With Monte Carlo Simulations, Ben O. Smith, Dustin R. White

Economics Faculty Publications

Practitioners in the sciences have used the “flow” of knowledge (post-test score minus pre-test score) to measure learning in the classroom for the past 50 years. Walstad and Wagner, and Smith and Wagner moved this practice forward by disaggregating the flow of knowledge and accounting for student guessing. These estimates are sensitive to misspecification of the probability of guessing correct. This work provides guidance to practitioners and researchers facing this problem. We introduce a transformed measure of true positive learning that under some knowable conditions performs better when students’ ability to guess correctly is misspecified and converges to Hake’s normalized …


A Multi-Stage Seir(D) Model Of The Covid-19 Epidemic In Korea, Hee-Young Shin Jul 2021

A Multi-Stage Seir(D) Model Of The Covid-19 Epidemic In Korea, Hee-Young Shin

Economics Faculty Publications

Background: This paper uses a SEIR(D) model to analyse the time-varying transmission dynamics of the COVID-19 epidemic in Korea throughout its multiple stages of development. This multi-stage estimation of the model parameters offers a better model fit compared to the whole period analysis and shows how the COVID-19's infection patterns change over time, primarily depending on the effectiveness of the public health authority's non-pharmaceutical interventions (NPIs). Methods: This paper uses the SEIR(D) compartment model to simulate and estimate the parameters for three distinctive stages of the COVID-19 epidemic in Korea, using a manually compiled COVID-19 epidemic dataset for the period …


Chance Elections, Social Distancing Restrictions, And Kentucky's Early Covid-19 Experience, Charles J. Courtemanche, Joseph Garuccio, Anh Le, Joshua C. Pinkston, Aaron Yelowitz Jul 2021

Chance Elections, Social Distancing Restrictions, And Kentucky's Early Covid-19 Experience, Charles J. Courtemanche, Joseph Garuccio, Anh Le, Joshua C. Pinkston, Aaron Yelowitz

Economics Faculty Publications

Early in the pandemic, slowing the spread of novel coronavirus disease 2019 (COVID-19) relied on non-pharmaceutical interventions. All U.S. states adopted social-distancing restrictions in March and April of 2020, though policies varied both in timing and scope. Compared to states with Democratic governors, those with Republican governors often adopted measures for shorter durations and with greater resistance from their residents. In Kentucky, an extremely close gubernatorial election immediately prior to the discovery of SARS-CoV-2 replaced a Republican incumbent with a Democrat, despite Republicans easily winning all other statewide races. This chance election result offers a unique opportunity to examine the …


Enslaved Financing Of Southern Industry: The Nesbitt Manufacturing Company Of South Carolina, 1836–1850, Sharon Ann Murphy Feb 2021

Enslaved Financing Of Southern Industry: The Nesbitt Manufacturing Company Of South Carolina, 1836–1850, Sharon Ann Murphy

Economics Faculty Publications

Incorporated on the eve of the Panic of 1837, the Nesbitt Manufacturing Company of South Carolina owned and hired enslaved individuals to labor in their ironworks, but they also leveraged the market value of this enslaved property by exchanging them for shares of company stock and offering them as collateral in loan contracts. These slaveholders actively experimented with increasingly sophisticated financial tools and institutions in order to facilitate investment, market exchange, and profit maximization within the system of enslavement. Although historians have examined the role of enslaved labor in industrial concerns, they have largely ignored their role in the financing …


Let Them Tweet Cake: Estimating Public Dissent Using Twitter, Ben O. Smith, Ethan Spangler Jan 2021

Let Them Tweet Cake: Estimating Public Dissent Using Twitter, Ben O. Smith, Ethan Spangler

Economics Faculty Publications

This paper establishes a new method of estimating public dissent that is both cost-effective and adaptable. Twitter allows users to post short messages that can be viewed and shared by other users, creating a network of freely and easily observable information. Drawing data directly from Twitter, we collect tweets containing specified words and phrases from citizens voicing dissatisfaction with their government. The collected tweets are processed using a regular expression based algorithm to estimate individual dissent; which is aggregated to an overall measure of public dissent. A comparative case study of Canada and Kenya during the summer of 2016 provides …


"Letters", James V. Koch, Seth Forman Jan 2021

"Letters", James V. Koch, Seth Forman

Economics Faculty Publications

No abstract provided.


In The Shadow Of Freedom Of Religion And Press, Hee-Young Shin Jan 2021

In The Shadow Of Freedom Of Religion And Press, Hee-Young Shin

Economics Faculty Publications

The Korean government’s public health responses to the COVID-19 epidemic have achieveda remarkable outcome in terms of the measured number of infected patients and theoverall mortality rate. Nonetheless, the public health authority’s various mitigationstrategies and vaccination efforts have faced several challenges primarily posed bypolitically motivated Christian fundamentalists and ultraconservative media’s distortednews framing in Korea. This paper examines how these conservative forces – both religiousand political – have undermined the Korean public health authority’s various mitigationefforts and discusses how to address the problems from a public policy point of view. Thepaper argues that a comprehensive legal reform including the introduction of …


Fixed Costs And The Division Of Labor, Haiwen Zhou Jan 2021

Fixed Costs And The Division Of Labor, Haiwen Zhou

Economics Faculty Publications

How market size and the level of coordination costs determine the degree of specialization is studied in an infinite horizon model with the amount of capital determined endogenously. Firms producing the same intermediate good engage in oligopolistic competition and choose the degree of specialization of their technologies to maximize profits. A more specialized technology is a technology with a lower marginal cost, but a higher fixed cost. Interestingly, the relationship between the level of coordination costs and a firm’s degree of specialization is ambiguous. A firm in a country with a larger market size, more patient citizens, or a higher …


Local Fiscal Adjustments From Depopulation: Evidence From The Post–Cold War Defense Contraction, Timothy M. Komarek, Gary A. Wagner Jan 2021

Local Fiscal Adjustments From Depopulation: Evidence From The Post–Cold War Defense Contraction, Timothy M. Komarek, Gary A. Wagner

Economics Faculty Publications

In this paper, we estimate the long-term causal effect of population losses on local government revenue, expenditure, and debt by exploiting a quasi-exogenous change that reduced the number of US military personnel by about 40 percent between the late 1980s and 2000. Aggregating across governmental units within commuting zones, we find that real per capita total revenues and expenditures remained unchanged for remaining citizens. At the same time, however, we note several important compositional effects. First, local governments appear to have offset reductions in state intergovernmental aid by increasing property tax revenues. Second, they significantly shifted the composition of expenditures …


Economics Of Covid-19 Reading List, Sara Gundersen Dec 2020

Economics Of Covid-19 Reading List, Sara Gundersen

Economics Faculty Publications

Reading list for The Economics of COVID-19, taught in Fall 2020


Economics Of Covid-19 Reading List, Sara Gundersen Dec 2020

Economics Of Covid-19 Reading List, Sara Gundersen

Economics Faculty Publications

Reading list for The Economics of COVID-19, taught in Fall 2020