Economics Commons^™

Review Of Identity Economics By Akerlof And Kranton, John B. Davis

Economics Faculty Research and Publications

No abstract provided.

The Incidence Of The Mortgage Interest Deduction: Evidence From The Market For Home Purchase Loans, Andrew R. Hanson

Economics Faculty Research and Publications

This article examines the incidence of the largest housing-related subsidy in the federal budget, the home mortgage interest deduction (MID). The author uses the difference in interest rates for loans made around the MID limit to identify the incidence of the subsidy. Using data on individual mortgages originated in 2004, the author estimates that for every $1,000 borrowed without the MID, the interest rate on the entire loan decreases by between 3.3 and 4.4 percent. Results suggest that lenders capture between 9 and 17 percent of the subsidy created by the home MID through higher mortgage interest rates.

Winning In Ncaa Womens Soccer: Does The Gender Of The Coach Matter?, Brian Brush, Gregory Naples

Economics Faculty Research and Publications

While women’s intercollegiate soccer has grown rapidly over the past three decades, men still hold nearly two-thirds of all head coaching positions in NCAA Division I women’s soccer programs. This paper explores whether the gender of the head coach affects success in winning games. After considering various reasons why gender might matter, we undertake a multiple regression analysis using data from the 2001-2002 season to answer this question empirically. Controlling for other factors that would be expected to influence a team’s success, including the quality of the head coach, the level of institutional support and the tradition of the program, …

Predictive Duty Cycle Adaptation For Wireless Camera Networks, Paul J. Shin, Henry Medeiros, Johnny Park, Avinash Kak

Economics Faculty Research and Publications

Wireless sensor networks (WSN) typically employ dynamic duty cycle schemes to efficiently handle different patterns of communication traffic in the network. However, existing duty cycling approaches are not suitable for event-driven WSN, in particular, camera-based networks designed to track humans and objects. A characteristic feature of such networks is the spatially-correlated bursty traffic that occurs in the vicinity of potentially highly mobile objects. In this paper, we propose a concept of indirect sensing in the MAC layer of a wireless camera network and an active duty cycle adaptation scheme based on Kalman filter that continuously predicts and updates the location …

In High School And Pregnant: The Importance Of Educational And Fertility Expectations For Subsequent Outcomes, Olga Yakusheva

Economics Faculty Research and Publications

This study uses the High School and Beyond data (1980–1992) to examine the importance of educational and fertility expectations in explaining the achievement gap of adolescent mothers for over 5,500 young women from different socioeconomic backgrounds. Using a non-parametric local propensity score regression, the study finds that the economic disadvantage associated with having a child in high school is particularly large in poor socioeconomic environments; however, this disadvantage is a result of preexisting differences in the educational and fertility expectations and is not because of a diminished capacity of the socioeconomic environment to mediate the effect of an unplanned childbirth. …

Fdi, Education, And Economic Growth: Quality Matters!, Miao Wang, M. C. Sunny Wong

Economics Faculty Research and Publications

In this paper, we revisit the results from the influential study by Borensztein et al. (Journal of International Economics 45:115–135, 1998), which argues that inward foreign direct investment (FDI) promotes the economic growth in a less developed host country only when the host country obtains a threshold level of secondary schooling. Borensztein et al. (Journal of International Economics 45:115–135, 1998) only focus on the quantity of education. We take into consideration both the quantity and the quality of education. We adjust the original schooling data in Borensztein et al. (Journal of International Economics 45:115–135, 1998) by two quality of education …

Using Historical Simulation To Compare The Accuracy Of Nine Alternative Methods Of Estimating The Present Value Of Future Lost Earnings, Brian Brush

Economics Faculty Research and Publications

To estimate the present value of future lost earnings, forensic economists must employ some method to determine the interest rate and the earnings growth rate, or the net discount rate derived from them, to use in that estimation. Historical simulation can be used to determine how accurate any such method would have been had it been used in the past. In this paper, historical simulation is used to compare the accuracy of nine different methods of choosing the net discount rate to estimate present value for numerous 30-, 20- and 10-year loss periods. These methods include historical averages, current rates, …

On The Relative Accuracy Of Discounting Based On Risk-Free And Risky Portfolios, Brian Brush

Economics Faculty Research and Publications

The degree of risk that should be incorporated into the net discount rate that is used to estimate the present value of future lost earnings has been the subject of controversy. While some forensic economists insist that a risk-free discount rate must be used, others have offered economic arguments that support use of a risk-adjusted rate. Historical simulation studies have found that, when the discount rate is based on risk-free or low-risk securities, the historical averages method of estimating present value is subject to large forecast errors due to significant changes in net discount rates over time. This study explores …

Utilization Of Employment Tax Credits: An Analysis Of The Empowerment Zone Wage Tax Credit, Andrew R. Hanson

Economics Faculty Research and Publications

This paper provides estimates of utilization for the Empowerment Zone (EZ) wage tax credit, a subsidy claimed by employers who operate in and hire residents of federally designated areas experiencing economic distress. The EZ credit is currently the largest employer-based wage tax credit in the federal tax code in terms of dollars claimed, with almost $250 million claimed in 2002. I show that about 6.4 percent (and at least 3.5 percent) of the working age population was claimed under the EZ wage credit in 1999. In addition, I estimate that 24.2 percent (and at least 13.1 percent) of those employed …

Inward Fdi, Remittances, And Out-Migration, Miao Grace Wang, M. C. Sunny Wong

Economics Faculty Research and Publications

In this study, we look at the relationship between remittances received at home, inward Foreign Direct Investment (FDI) and out-migration of individuals with different levels of education. Using the bilateral international migration data in 1990 and 2000, we find that inward FDI tends to deter the out-migration of individuals with secondary and tertiary education, but has no significant impact on the out-migration of individuals with primary education. In addition, remittances received at home induce the out-migration of individuals with primary education, but not the out-migration of individuals with secondary and tertiary education. The stock of existing migrants in a foreign …

Four Scenarios Of Development And The Role Of Economic Policy, Fabrizio Carmignani, Abdur Chowdhury

Economics Faculty Research and Publications

We ask which economic policies can help a country create the most favourable conditions for development. We observe that the dynamics of several development indicators can be grouped into four clusters, each cluster corresponding to a different combination of growth and changes in inequality. Based on this observation, we define four different development scenarios and use limited dependent variable regressions to study how structural and policy factors affect a country's probability to achieve the most (or the least) favourable of these scenarios. Our results point to a comforting picture: through the choice of appropriate policies countries can effectively increase their …

The Atlanta Empowerment Zone: Description, Impact, And Lessons For Evaluation, Rachana Bhatt, Andrew R. Hanson

Economics Faculty Research and Publications

No abstract provided.

Do Landlords Discriminate In The Rental Housing Market? Evidence From An Internent Field Experiment In U.S. Cities, Andrew R. Hanson, Zackary Hawley

Economics Faculty Research and Publications

This paper tests for racial discrimination in the rental housing market using matched-pair audits conducted via e-mail for rental units advertised on-line. We reveal home-seekers’ race to landlords by sending e-mails from names with a high likelihood of association with either whites or African Americans. Generally, discrimination occurs against African American names; however, when the content of the e-mail messages insinuates home-seekers with high social class, discrimination is non-existent. Racial discrimination is more severe in neighborhoods that are near “tipping points” in racial composition, and for units that are part of a larger building.

The Effect Of Location Based Tax Incentives On Establishment Location And Employment Across Industry Sectors, Andrew R. Hanson, Shawn Rohlin

Economics Faculty Research and Publications

This article examines the potential for location-based employment tax incentives to have a differential effect on establishment location and employment across industry sectors. The authors model the differential effect of the location-based federal Empowerment Zone (EZ) wage tax credit on equilibrium labor and total cost savings across industry sectors. The model guides the empirical work, as the authors test the effect of the program across industry sectors. The empirical analysis shows that location-based tax incentives have a positive effect on firm location in some of the industries their model predicts and a negative effect in industries that could be crowded …

Leisure And Happiness In The U.S.: Evidence From Survey Data, Miao Wang, M. C. Sunny Wong

Economics Faculty Research and Publications

We study the relationship between leisure and happiness, controlling for income and other determinants. Using survey data for the United States in 2007, our results show that certain aspects of leisure, such as leisure activity satisfaction, have a significant impact on individual well-being whereas the amount of leisure time may not play an important role in affecting happiness.

Environmental Influences On Young Adult Weight Gain: Evidence From A Natural Experiment, Kandice A. Kapinos, Olga Yakusheva

Economics Faculty Research and Publications

Objectives: This study investigated the importance of environmental influences in explaining weight gain and related behaviors among freshman college students.

Methods: We exploited a natural experiment that takes place on most college campuses in the United States - randomized dormitory assignments. We estimated the effects of living in dormitories with varying physical environment characteristics on weight gain and related behaviors (daily number of meals and snacks, weekly frequency of exercise) among randomly assigned freshman students.

Results: We found strong evidence linking weight and related behaviors to individual dormitories, as well as to specific characteristics of the dormitories. On average, students …

Fdi And Human Capital In The Usa: Is Fdi In Different Industries Created Equal?, Miao Wang

Economics Faculty Research and Publications

We use data in the USA to study the effect of inward Foreign Direct Investment (FDI) in different sectors/industries on the state-level human capital, measured by the average years of tertiary schooling. We find that inward manufacturing FDI tends to lower the tertiary schooling in a host state while information FDI increases the tertiary schooling in a host state.

Neuroeconomics: Constructing Identity, John B. Davis

Economics Faculty Research and Publications

The paper asks whether neuroeconomics will make instrumental use of neuroscience to adjudicate existing disputes in economics or be more seriously transformed by neuroscience in ways that might transform economics. The paper pursues the question by asking how neuroscience constructs an understanding of individuals as whole persons. The body of the paper is devoted to examining two approaches: Don Ross's neurocellular approach to neuroeconomics and Joseph Dumit's cultural anthropological science organization approach. The accounts are used to identify boundaries on single individual explanations. Within that space Andy Clark's external scaffolding view and Nathaniel Wilcox's socially distributed cognition view are employed.

Return To College Education Revisited: Is Relevance Relevant?, Olga Yakusheva

Economics Faculty Research and Publications

This study examines whether the size of the college earnings premium varies depending on the quality of the match between an individual’s degree field and his/her occupation. The study uses the Occupational Information Network (O*NET) to obtain a new measure of the quality of occupational match for a sample of 2268 young adults with post-secondary degrees from the restricted use High School and Beyond (1980/92) data. The study finds that people whose occupations better match their degree fields earn significantly higher returns to post-secondary schooling. This result is robust to controlling for an extensive set of pre-existing differences among individuals, …

A Spatial Analysis Of Aggregate And Industry-Level Fdi In China, Shalendra Sharma, Miao Grace Wang, M. C. Sunny Wong

Economics Faculty Research and Publications

No abstract provided.

Valuing Environmental Quality: A Space-Based Strategy, John I. Carruthers, David E. Clark

Economics Faculty Research and Publications

This paper develops and applies a space-based strategy for overcoming the general problem of deriving the implicit demand for nonmarket goods. It focuses specifically on evaluating one form of environmental quality, distance from Environmental Protection Agency designated environmental hazards, via the single-family housing market in the Puget Sound region of Washington State. A spatial two-stage hedonic price analysis is used to: (i) estimate the marginal implicit price of distance from air release sites, hazardous waste generators, hazardous waste handlers, superfund sites, and toxic release sites; and (ii) estimate a series of implicit demand functions describing the …

Review Of Economics, Culture And Social Theory, John B. Davis

Economics Faculty Research and Publications

No abstract provided.

Trust In Others: Does Religion Matter?, Joseph P. Daniels, Marc Von Der Ruhr

Economics Faculty Research and Publications

Though the recent literature offers intuitively appealing bases for, and evidence of, a linkage among religious beliefs, religious participation and economic outcomes, evidence on a relationship between religion and trust is mixed. By allowing for an attendance effect, disaggregating Protestant denominations, and using a more extensive data set, probit models of the General Social Survey (GSS), 1975 through 2000, show that black Protestants, Pentecostals, fundamentalist Protestants, and Catholics, trust others less than individuals who do not claim a preference for a particular denomination. For conservative denominations the effect of religion is through affiliation, not attendance. In contrast, liberal Protestants trust …

Uncertainty And Identity: A Post Keynesian Approach, John B. Davis

Economics Faculty Research and Publications

Marshall’s asset equilibrium model provides a way of
explaining the identity of entrepreneurs. Keynes adopted this model but
transformed it when he emphasized the short-period and volatile
character of long-term expectations. This entails a view of entrepreneur
identity in which radical uncertainty plays a central role. This in turn
deepens the post Keynesian view of uncertainty as ontological in that
entrepreneurs’ survival plays into their behavior. This paper explores
this role-based view of individual identity and uses the analysis to
comment on Keynes’s ideas for the socialization of investment and
euthanasia of the rentier in the last chapter of The …

Review Of Keynes And Macroeconomics After 70 Years: Critical Assessments Of The General Theory, John B. Davis

Economics Faculty Research and Publications

No abstract provided.

Foreign Direct Investment And Domestic Investment In The Host Country: Evidence From Panel Study, Miao Wang

Economics Faculty Research and Publications

This article examines the impact of inward Foreign Direct Investment (FDI) on host countries’ domestic investment. Utilizing data from 50 countries over the period of 1970 to 2004, we find that inward FDI has a negative contemporaneous effect on domestic investment, while the cumulative effect of FDI over time tends to be positive. In addition, we separately study FDI in Developed Countries (DCs) and Less Developed Countries (LDCs). The effect of contemporaneous FDI on domestic investment is negative in DCs, and the cumulative effect of FDI is neutral. Strong evidence suggests that the contemporaneous effect of FDI on domestic investment …

The Capabilities Conception Of The Individual, John B. Davis

Economics Faculty Research and Publications

This paper advances a capabilities conception of the individual, and considers some of the problems involved in developing such a conception. It also makes claims about the nature of the capability space as a whole, frames personal development in terms of the idea of moving though the capability space, and argues that people are alike in being increasingly heterogeneous. A key problem for a capabilities conception of the individual is that some capabilities, such as belonging to social groups and having social identities, can undermine individuality. The paper discusses an example in which people can have social identities but can …

Identity And Democracy: Linking Individual And Social Reasoning, John B. Davis, Solange Regina Marin

Economics Faculty Research and Publications

Following Amartya Sen's approach, John Davis and Solange Regina Marin look at individual and social reasoning when examining the complex relationship between identity and democracy. They characterize democracy as a process of social or public reasoning that combines the individual reasoning of all citizens. Identity is explained in terms of personal identity, social identity, and individual identity. They argue that democracy in combining the individual reasoning of all citizens responds to individuals’ different personal identity concerns and needs, reflects their shared social identity interests and goals, and accords them rights and responsibilities associated with their many different individual identities.

The Incidence Of Tobacco Taxation: Evidence From Geographic Micro-Level Data, Andrew R. Hanson, Ryan Sullivan

Economics Faculty Research and Publications

This paper uses a recent increase in Wisconsin’s tobacco tax as a natural experiment to measure the economic incidence of tobacco taxation, using micro-level data on cigarette prices from retail locations in Wisconsin and states that share its border. We find that Wisconsin’s $1 tobacco tax increase was over-shifted to consumers; they pay the entire amount of the tax as well as a premium of between 8–17 cents per pack of cigarettes. We also use geo-coded data to test if the incidence of the tobacco tax is different for locations near the border of states with different tobacco taxation.

Trade Openness, Capital Mobility, And The Sacrifice Ratio, Joseph P. Daniels, David D. Vanhoose

Economics Faculty Research and Publications

This paper develops and evaluates empirically the implications of a theoretical model of an open economy in which variations in both trade openness and capital mobility can influence the sacrifice ratio. Key predictions forthcoming from the model are that both forms of globalization can independently affect the sacrifice ratio, once the influences of the level of central bank independence and the degree of wage stickiness in nations’ economies are taken into account. Examination of cross-country data encompassing 58 disinflations for 16 countries yields evidence consistent with these essential predictions of the theoretical framework.