Economics Commons^™

Raising Wisconsin's Minimum Wage: Who Would Be Helped? Who Would Be Hurt?, Andrew R. Hanson, Ike Brannon

Economics Faculty Research and Publications

No abstract provided.

‘Pluralism’ In Economics? A Symposium, John B. Davis

Economics Faculty Research and Publications

No abstract provided.

The Puzzle Of Heterogeneity In Support For Free Trade, Jeffrey Drope, Abdur Chowdhury

Economics Faculty Research and Publications

Over time and across countries, researchers have noted frequent and mostly unexplained gender differences in the levels of support for policies of free or freer trade: according to aggregate results from many surveys, women tend to be less favorable toward policies of liberalizing trade than men. Positing an economic security explanation based largely on a mobile factors approach, we ask if it is women generally who are more negative toward trade or rather women who are more economically vulnerable – i.e., women from the scarce labor factor. We utilize data from two recent surveys on individuals’ attitudes toward different facets …

Housing Market Distortions And The Mortgage Interest Deduction, Andrew R. Hanson, Hal Martin

Economics Faculty Research and Publications

Housing market distortions from the mortgage interest deduction (MID) typically focus on a single choice measure such as home size or self-reported amount of debt on a new mortgage. We estimate the amount of mortgage interest deducted on federal tax returns to capture the full range of housing market distortions from the MID. Our primary results show that for every one percentage point increase in the tax rate that applies to deductibility, the amount of mortgage interest deducted increases by US$303 to US$590. Empirical estimates imply elasticities of mortgage interest deducted with respect to the after-tax cost of housing between …

Field Experiment Tests For Discrimination Against Hispanics In The U.S. Rental Housing Market, Andrew R. Hanson, Michael Santas

Economics Faculty Research and Publications

This article tests for discrimination against Hispanics in the U.S. rental housing market using e-mail correspondence with landlords advertising units online. We divide Hispanics into two groups: those that appear assimilated into American culture and recent immigrants. We find little difference in the treatment of assimilated Hispanics and whites; however, Hispanics we portray as recent immigrants receive less favorable treatment with margins of net discrimination as large as 6.89% of landlords. We also find discrimination varies significantly at the region level and by the ethnic composition of neighborhoods.

The World In The Model And The Model In The World: Review Of The World In The Model By Mary Morgan, John B. Davis

Economics Faculty Research and Publications

No abstract provided.

Social Capital And Social Identity: Trust And Conflict, John B. Davis

Economics Faculty Research and Publications

No abstract provided.

Transportation Costs And U.S. Manufacturing Fdi, Joseph P. Daniels, Marc Von Der Ruhr

Economics Faculty Research and Publications

In empirical models of foreign direct investment (FDI), distance is most often used to proxy for transportation costs and other pure-trade costs. Given that distance is time invariant but transportation costs are not, this approach is less than satisfactory when actual transportation costs rise and fall over time. The contribution of this work is to explicitly control for transportation costs and thereby better understand their impact on FDI. We explore the impact of shipping costs on total US FDI stocks abroad, manufacturing stocks and service stocks using measures of sea-shipping and air-shipping costs in a Hausman–Taylor model that controls for …

Negotiated Settlement Under Mlb Final-Offer Salary Arbitration System, J. Richard Hill, Nicholas A. Jolly

Economics Faculty Research and Publications

This paper provides a detailed analysis of negotiated salaries under Major League Baseball's final-offer arbitration process using data from the 2007–2010 seasons. There is a wage premium of 25% for hitters and 14% for pitchers filing for arbitration. Interestingly, there is an additional premium for exchanging offers for hitters but not for pitchers. The additional premium in salary for hitters who exchange offers with their clubs amounts to 7%.

Homesick: How Housing Tax Breaks Benefit The Wealthy And Create Mcmansions, Andrew R. Hanson, Ike Brannon, Zackary Hawley

Economics Faculty Research and Publications

No abstract provided.

Rethinking Tax Benefits For Home Owners, Andrew R. Hanson, Ike Brannon, Zackary Hawley

Economics Faculty Research and Publications

No abstract provided.

Review Of The Making Of The Economy: A Phenomenology Of Economic Science By Till Duppe, John B. Davis

Economics Faculty Research and Publications

No abstract provided.

Digital Currency And Financial System: The Case Of Bitcoin, Abdur Chowdhury, Barry K. Mendelson

Economics Faculty Research and Publications

No abstract provided.

The Interaction Between Fdi And Infrastructure Capital In The Development Process, Farrokh Nourzad, David N. Greenwold, Rui Yang

Economics Faculty Research and Publications

This paper focuses on the possible interaction between foreign direct investment (FDI) and the host country’s infrastructure base. Its central hypothesis is that the effect of FDI on per capita real income depends, at least in part, on the size of the recipient country’s infrastructure. This hypothesis is tested in a panel of 46 countries and 5-year averages over the 1980–2000 period using the size of three types of infrastructure capital: telecommunication, power generation, and network of roads or highways. The results indicate that the size of the host country’s infrastructure base helps to improve the marginal effect of FDI …

Where Does Racial Discrimination Occur? An Experimental Analysis Across Neighborhood And Housing Unit Characteristics, Andrew R. Hanson, Zackary Hawley

Economics Faculty Research and Publications

This paper examines racial discrimination across several neighborhood and housing unit characteristics including racial composition, rent, and distance from the urban core. We find that African Americans face higher rates of discrimination than whites in a wide range of racially mixed neighborhoods, in higher rent areas, closer to central cities, and in low vacancy areas. These results are robust to various parameterizations of the local smoothing empirical specification and within a multivariate nonlinear parametric estimation technique. The location of discrimination supports the current/future customer prejudice and perceived preference hypotheses as a cause of discrimination in housing markets but not the …

Obesogenic Environmental Influences On Young Adults: Evidence From Randomized Dormitory Assignment, Kandice A. Kapinos, Olga Yakusheva, Daniel Eisenberg

Economics Faculty Research and Publications

This study utilizes a natural experiment—conditionally random dormitory assignments of first-year US college students—to investigate the influence of obesogenic environmental factors in explaining changes in weight and exercise behavior during the 2009–2010 academic year. The design addresses potential selection biases resulting from the likelihood that individuals sort into built environments that match their preferences for exercise and healthy eating. We find some evidence that the food environment, specifically access to campus dining, significantly affected the weight of female students in our study. Females assigned to dormitories where the nearest campus dining hall was closed on the weekends gained about 1 …

Leisure And Happiness: Evidence From International Survey Data, Miao Wang, M. C. Sunny Wong

Economics Faculty Research and Publications

We study the statistical link between leisure and happiness. Using survey data from 33 countries in 2007, we find that (1) certain leisure activities, leisure’s role in self-fulfillment and social interaction, and leisure’s relation to work and other spheres of life are significantly linked to individual happiness; (2) the effect of leisure quantity is not as important as other aspects of leisure; and (3) some leisure activities can be negatively associated with happiness. Consistent with findings in previous studies, family income and individual demographic variables such as age and health condition are significantly associated with happiness. National unemployment and political …

Mark Blaug On The Historiography Of Economics, John B. Davis

Economics Faculty Research and Publications

No abstract provided.

Inflation And Inflation-Uncertainty In India: The Policy Implications Of The Relationship, Abdur Chowdhury

Economics Faculty Research and Publications

Purpose – Inflation and its related uncertainty can impose costs on real economic output in any economy. This paper aims to analyze the relationship between inflation and inflation uncertainty in India.

Design/methodology/approach – The methodology uses a generalized autoregressive conditional heteroscedasticity (GARCH) model and Granger Causality test.

Findings – Initial estimates show the inflation rate to be a stationary process. The maximum likelihood estimates from the GARCH model reveal strong support for the presence of a positive relationship between the level of inflation and its uncertainty. The Granger causality results indicate a feedback between inflation and uncertainty.

Research limitations/implications – …

Limiting The Mortgage Interest Deduction By Size Of Home: Effects On The User Cost And Price Of Housing Across Metropolitan Areas, Andrew R. Hanson

Economics Faculty Research and Publications

In this paper, I examine the user cost and home price implications of limiting the federal mortgage interest deduction (MID) based on the square footage of a home. I extend the standard user cost model to include a square footage-based cap on the tax-favored status of mortgage interest. I compare two policy alternatives: one that limits the marginal deduction based on home size, and another that removes the deduction on the home based on home size. There is substantial variation across metropolitan areas in both the number of homes exposed to each type of cap, the user cost increase, and …

Are Houses Too Big Or In The Wrong Place? Tax Benefits To Housing And Inefficiencies In Location And Consumption, David Albouy, Andrew R. Hanson

Economics Faculty Research and Publications

Tax benefits to owner-occupied housing provide incentives to consume housing, offsetting weaker disincentives of the property tax. These benefits also help counter the penalty federal taxes impose on households who work in productive high-wage areas, but reinforce incentives to consume local amenities. We simulate the effects of these benefits in a parameterized model, and determine the consequences of various tax reforms. Reductions in housing tax benefits generally increase efficiency in consumption, but reduce efficiency in location decisions, unless they are accompanied by tax rate reductions. The most efficient policy would eliminate most tax benefits to housing and index taxes to …

The Impact Of Interstate Highways On Land Use Conversion, Chris Mothorpe, Andrew R. Hanson, Kurt Schnier

Economics Faculty Research and Publications

Between 1945 and 2007, the United States lost 19.3 % of its agricultural land. Over the same time period, the construction of the 42,500 mile interstate highway system lowered transportation costs and opened large tracts of land for development. This paper assesses the impact of the interstate highway system on agricultural land loss in Georgia and uses the empirical estimates to simulate agricultural land loss resulting from the construction of additional interstate highways. Using a historical data set of agricultural land and interstate highway mileage, empirical estimates indicate that each additional mile of interstate highway reduces agricultural land by 468 …

Soros’S Reflexivity Concept In A Complex World: Cauchy Distributions, Rational Expectations, And Rational Addiction, John B. Davis

Economics Faculty Research and Publications

George Soros makes an important analytical contribution to understanding the concept of reflexivity in social science by explaining reflexivity in terms of how his cognitive and manipulative causal functions are connected to one another by a pair of feedback loops (Soros, 2013). Fallibility, reflexivity and the human uncertainty principle. Here I put aside the issue of how the natural sciences and social sciences are related, an issue he discusses, and focus on how his thinking applies in economics. I argue that standard economics assumes a ‘classical’ view of the world in which knowledge and action are independent, but that we …

Introduction To The Economics Of Social Institutions, John B. Davis, Asimina Christoforou

Economics Faculty Research and Publications

This volume includes thirty-six important contributions to the economics of social institutions by leading figures in the history of the field. Its nine Parts are: Early Contributions, Methodological and Conceptual Issues, Old Institutionalism, New Institutionalism, Social Costs, Growth and Development, Institutions and Change, Institutions and Organizations, and The Third Sphere of the Economy and Institutions. This set of topics provides a comprehensive review of the origins and development of the economics of social institutions. It addresses the main theoretical and policy concerns that have occupied contributors to the approach. The economics of social institutions has a been well-established research program …

A Note On War And Fiscal Capacity In Developing Countries, Abdur Chowdhury, Syed M. Murshed

Economics Faculty Research and Publications

We examine the effect of war on state fiscal capacity in developing countries, measured by tax revenue to GDP ratios. In divided or factionalised societies, patronage may substitute for common interest public goods, with the possibility of violent contestation over a rent. Our dynamic panel empirical estimates of the determinants of fiscal capacity are applied to 79 developing countries, during 1980–2010. Results indicate that war, especially civil war, retards fiscal capacity, along with poor governance, oil dependence and macroeconomic mismanagement.

Learning From Teen Childbearing Experiences Of Close Friends: Evidence Using Miscarriages As A Natural Experiment, Olga Yakusheva, Jason Fletcher

Economics Faculty Research and Publications

We examine peer effects in teen childbearing among close friends, using miscarriages as a natural experiment. We use 775 women from the core sample of Add Health who had a friend with a teen pregnancy. We find a sizable negative treatment effect – a close friend's teen birth is associated with a 6 percentage point reduction in the likelihood of own teen pregnancy and childbearing. There is evidence that this effect operates through a learning mechanism by changing beliefs regarding early childbearing. Effects of teen pregnancy prevention policies may be partially offset by reductions in the opportunities for social learning.

Exchange-Rate Pass Through, Openness, And The Sacrifice Ratio, Joseph P. Daniels, David D. Vanhoose

Economics Faculty Research and Publications

Considerable recent work has reached mixed conclusions about whether and how globalization affects the inflation–output trade-off and suggests that the ultimate effect of openness on the output–inflation relationship is influenced by a variety of factors. In this paper, we consider the impact of exchange-rate pass through and examine how pass through conditions the effect of openness on the sacrifice ratio. We develop a simple theoretical model showing how the extent of both pass through and openness can interact to influence the output–inflation relationship. Next we empirically explore the nature of these two variables and their interaction. Results indicate that greater …

The Political Investment Cycle Within China: The Next Transition And Its Investment Implications, Abdur Chowdhury, Barry K. Mendelson

Economics Faculty Research and Publications

No abstract provided.

Person-Centered Heath Care: Capabilities And Identity, John B. Davis

Economics Faculty Research and Publications

No abstract provided.

Will Dr. Robot Open New Doors For Nurses?, Olga Yakusheva, Richard C. Lindrooth

Economics Faculty Research and Publications

No abstract provided.