Economics Commons^™

A Principal-Agent Model Of Sequential Testing, Dino Gerardi, Lucas Maestri

Cowles Foundation Discussion Papers

This paper analyzes the optimal provision of incentives in a sequential testing context. In every period the agent can acquire costly information that is relevant to the principal’s decision. Neither the agent’s effort nor the realizations of his signals are observable. First, we assume that the principal and the agent are symmetrically informed at the time of contracting. We construct the optimal mechanism and show that the agent is indifferent in every period between performing the test and sending an uninformative message which continues the relationship. Furthermore, in the first period the agent is indifferent between carrying out his task …

Copula-Based Nonlinear Quantile Autoregression, Xiaohong Chen, Roger Koenker, Zhijie Xiao

Cowles Foundation Discussion Papers

Parametric copulas are shown to be attractive devices for specifying quantile autoregressive models for nonlinear time-series. Estimation of local, quantile-specific copula-based time series models offers some salient advantages over classical global parametric approaches. Consistency and asymptotic normality of the proposed quantile estimators are established under mild conditions, allowing for global misspecification of parametric copulas and marginals, and without assuming any mixing rate condition. These results lead to a general framework for inference and model specification testing of extreme conditional value-at-risk for financial time series data.

The Evolution Of Decision And Experienced Utilities, Arthur Robson, Larry Samuelson

Cowles Foundation Discussion Papers

Psychologists report that people make choices on the basis of “decision utilities” that routinely overestimate the “experienced utility” consequences of these choices. This paper argues that this dichotomy between decision and experienced utilities may be the solution to an evolutionary design problem. We examine a setting in which evolution designs agents with utility functions that must mediate intertemporal choices, and in which there is an incentive to condition current utilities on the agent’s previous experience. Anticipating future utility adjustments can distort intertemporal incentives, a conflict that is attenuated by separating decision and experienced utilities.

In The Balance: Immigrant Economic Contributions And The Advancement Of Human Rights In Nebraska - Ollas Policy Brief No. 1, Jonathan Benjamin-Alvarado, Lourdes Gouveia

Latino/Latin American Studies Policy Briefs

No abstract provided.

Asymptotic Equivalence Of Probabilistic Serial And Random Priority Mechanisms, Yeon-Koo Che, Fuhito Kojima

Cowles Foundation Discussion Papers

The random priority (random serial dictatorship) mechanism is a common method for assigning objects to individuals. The mechanism is easy to implement and strategy-proof. However this mechanism is inefficient, as the agents may be made all better off by another mechanism that increases their chances of obtaining more preferred objects. Such an inefficiency is eliminated by the recent mechanism called probabilistic serial, but this mechanism is not strategy-proof. Thus, which mechanism to employ in practical applications has been an open question. This paper shows that these mechanisms become equivalent when the market becomes large. More specifically, given a set of …

A Review Of Real Education By Charles Murray, John Yinger

Center for Policy Research

It’s Elementary is a series of essays on topics in education and education policy. The main focus is on education finance in New York State, but general research findings in education and education policy issues in several other states are also discussed. John Yinger, Professor of Economics and Public Administration at the Maxwell School, Syracuse University is the author of most of these essays, although a few are written by or co-authored with other scholars.

The State Of The Region: Hampton Roads 2008, James V. Koch, Vinod Agarwal, John R. Broderick, Grace Chen, Chris Colburn, Vicky Curtis, Steve Daniel, Susan Hughes, Elizabeth Janik, Terry Lindvall, Sharon Lomax, Janet Molinaro, Ken Plum, Gilbert Yochum

Economics Faculty Books

This is Old Dominion University's ninth annual State of the Region report. While it represents the work of many people connected in various ways to the university, the report does not constitute an official viewpoint of Old Dominion or it's president, John R. Broderick. The report maintains the goal of stimulating thought and discussion that ultimately will make Hampton Roads an even better place to live. We are proud of our region's many successes, but realize that it is possible to improve our performance. In order to do so, we must have accurate information about "where we are" and a …

Mobius, Ishrat Still Bullish On Pakistan At Bma Funds' Investor Forum, Ishrat Husain Dr.

Faculty Research - Newspaper and Magazine Articles

Dr Mark Mobius, Executive Chairman of Templeton Asset Management, indicated he would recommend buying Pakistani stocks if regional valuations remained high. Former State Bank Governor Dr Ishrat Husain gave the keynote address at the event, expressing confidence in Pakistan's economic resilience.

Impacts Of Information And Communication Technologies On Country Development: Accounting For Area Interrelationships, Robert J. Kauffman, Ajay Kumar

Research Collection School Of Computing and Information Systems

Single-item composite indices gauge ICT readiness at the country level but do not represent the direct impact of ICTs on a country's development. This paper describes a new approach to measuring the macrolevel impacts of ICTs across a range of development areas. The indirect effects of one area on others is taken into consideration by a simultaneous equation model that permits the inclusion of multiple development areas. The model is applied to data pertaining to four development areas in 64 countries: trade flows, agricultural productivity, R&D, and quality of life. ICT readiness is found to have a positive association with …

Smarter Mothers, Healthy Children, Smaller Families: A Look At The Impact Of Women’S Education On Family Planning Decisions In The Sultanate Of Oman, Kerala Hise

Independent Study Project (ISP) Collection

Is there a single, perfect, cure-all policy that a government can enact to achieve sustained development? This is a question international organizations and individual leaders ask themselves every day. There will always be ‘less-developed’ nations, this is a reality of having ‘developed’ nations, but there is no reason that humanity should allow there to be ‘under-developed’ nations, not when we have at hand the tools and knowledge to enact immediate, sweeping changes now. However, because different people, different groups feel that their idea or proposal is of the utmost importance, that change is often never realized. Often, too much value …

La Mondialisation Et Les Croyants: Des Effets De La Mondialisation Sur Les Communautés Chrétiennes = Globalization And Believers: Globalization’S Effects On Christian Communities, Carrie Lee Tallichet

Independent Study Project (ISP) Collection

This research aimed to explore the different manifestations of globalization’s impact on Catholic and Protestant student movements in Toulouse, France. To accomplish this investigation, the researcher sought the opinions of students who participate regularly in religious groups regarding the cultural diversity of their group and their concept of a global Christian community. Based on information gathered in interviews, the researcher concluded, though not definitively, that Catholic and Protestant student groups both experience the effects of globalization, but each in a manner in relation with their faith’s organizational structure: Catholic students felt close ties with other Catholic groups worldwide despite the …

Development In Morocco: Re-Examining The Effect Of Remittance Flows, Tom Lochery

Independent Study Project (ISP) Collection

Migration statistics reveal Morocco as one of the world’s leading emigration countries. Migration is bound to Morocco’s social, political, and economic spheres. However, empirical data related to migration and its subsequent effects on development within Morocco is poorly lacking. Specifically, there is a significant lack of information concerning remittances and their effect on development in Morocco. The impact of migration on Moroccan society and economic development is addressed here through discussion of previously attained empirical data and new research gathered in accordance with this paper. This paper is by no means comprehensive but instead offers an analysis of recent research …

The Flavor Of Money: The Vanilla Industry And The Economy Of Antalaha, Elizabeth Packer

Independent Study Project (ISP) Collection

The objectives of my research were to understand how the vanilla exporting business has changed in Antalaha in recent years, to assess the impact of cash crops on people’s livelihoods, to examine the benefits and drawbacks associated with vanilla cultivation, and to explore the economic impact of the vanilla industry on the town of Antalaha and its inhabitants. Through my research, I wanted to understand how the fruit of an orchid becomes the flavoring of ice cream, to look at the many processes and people involved in the vanilla supply chain. I was also interested in getting to know how …

Paying Teachers To Earn Advanced Degrees: Evidence On Student Performance In Georgia, Noel D. Campbell, Edward J. Lopez

Faculty Publications

No abstract provided.

Endogenous Transaction Cost, Specialization, And Strategic Alliance, Juyuan Zhang, Yi Zhang

Research Collection School Of Economics

In property rights theory, firm is an organizational response to reduce transaction cost associated with hold-up of using market mechanism. We claim that strategic alliance { without changing firm boundaries or asset ownership { is another type of organizational response. We construct a model to investigate individual firms' strategic choice on specialization or diversification when producing intermediate products and their further choice of organizational form: autarchy or forming strategic alliance. We introduce fixed learning costs as an indicator of scales of economy and show that only if fixed learning costs are large enough, will firms have incentive to be specialization …

The More Kids, The Less Mom's Divvy: Impact Of Childbirth On Intrahousehold Resource Allocation, Tomoki Fujii, Ryuichiro Ishikawa

Research Collection School Of Economics

We investigate how the impact of childbirth on intrahousehold allocation for married Japanese couples. We developed reduced‐form and structural‐form specifications from a unified theoretical framework. Under a weak set of assumptions, we can focus on private goods to track the changes in intrahousehold resource allocation. Our estimation results show that that allocation of resources within household tend to move to the disadvantage of women after a childbirth. One additional child is associated with a reduction in the wife's private expenditure share. Our estimation results reject the income-pooling hypothesis, and show that women are more risk averse than men.

How Well Can We Target Aid With Rapidly Collected Data? Empirical Results For Poverty Mapping From Cambodia, Tomoki Fujii

Research Collection School Of Economics

We compare commune-level poverty rankings in Cambodia based on three different methods: small-area estimation, principal component analysis using aggregate data, and interviews with local leaders. While they provide reasonably consistent rankings, the choice of the ranking method matters. In order to assess the potential losses from moving away from census-based poverty mapping, we used the concentration curve. Our calculation shows that about three-quarters of the potential gains from geographic targeting may be lost by using aggregate data. The usefulness of aggregate data in general would depend on the cost of data collection.

Unpacking Sources Of Comparative Advantage: A Quantitative Approach, Davin Chor

Research Collection School Of Economics

This paper develops an approach for quantifying the relative importance of different sources of comparative advantage for country welfare in a global trade equilibrium. To explain the pattern of specialization, I present a multi-country, perfectly-competitive Ricardian model that extends Eaton and Kortum (2002) to predict industry trade flows. In this framework, comparative advantage is determined by the interaction of country and industry characteristics, with countries specializing in industries whose specific production needs they are best able to meet with their factor endowments, institutional environment, and technological strengths. I estimate the model parameters using a large dataset of bilateral trade flows, …

Schooling And Political Participation Revisited, Davin Chor, Filipe R. Campante

Research Collection School Of Economics

We investigate how the link between individual schooling and political participation is a ected by country characteristics which determine the relative productivity of human capital in political versus production activities. In our model, individuals face an e ort-allocation decision over the use of their human capital. Focusing on the role played by country factor endowments, we show that the abundance of a factor that is used in the least (respectively most) human capital-intensive sector will increase (respectively decrease) both: (i) the level of individual political participation; and (ii) the responsiveness of individual political participation to increases in human capital. We …

Utility Functions, Future Consumption Targets And Subsistence Thresholds, Ashok Guha, Brishti Guha

Research Collection School Of Economics

If the consumer’s risk aversion behavior varies intertemporally and if the risk aversion coefficient on future consumption becomes very large, the consumer tends to aim at a fixed future consumption target. A by-product is a reinterpretation of subsistence theories of consumption.

The Labor Market Of Italian Politicians, Antonio Merlo, Vincenzo Galasso, Massimiliano Landi, Andrea Mattozzi

Research Collection School Of Economics

We analyze the career profiles of Italian legislators in the post-war period. Using a unique, newly collected dataset that contains detailed information on all the politicians who have been elected to the Italian Parliament between 1948 and 2008, we address a number of important issues that pertain to their career paths prior to election to Parliament, their parliamentary careers, and their post-Parliament employment. Our data span two institutional regimes: Italy's First Republic (1948-1994) and the Second Republic (1994-present), characterized by different electoral rules and party structures. We first present a brief overview of the Italian political system. We then provide …

New Mexico Labor Market Review 09-30-2008, New Mexico Department Of Workforce Solutions

Historic Publications

The New Mexico Labor Market Review is a monthly publication presenting statistical data and analysis on labor market conditions throughout New Mexico. Issues examine statewide and regional trends in employment, unemployment, labor force estimates, industry activity, wages, occupational demand, and related economic conditions, often accompanied by feature articles on topics affecting the state’s economy. This issue covers August 2008.

Economic Impact Of Businesses Assisted By Southwest Michigan First, George A. Erickcek, Randall W. Eberts

Reports

This report estimates the contribution to the Kalamazoo-Portage MSA's economy by businesses that have received substantial assistance from Southwest Michigan First (SMF), a private, not-for-profit economic development agency serving the greater Kalamazoo region. The report examines the trends in employment, gross regional product, and wages and salaries generated by the 105 firms that SMF staff identified as receiving substantial assistance from SMF between 2000 and 2008. The estimates extend through the year 2012 in order to capture the employment projections offered by some of the assisted firms. The study also provides upper bound estimates of the benefit-cost ratio of the …

The Likely Impact Of Mandated Paid Sick And Family-Care Leave On The Economy And Economic Development Prospects Of The State Of Ohio, Edward W. Hill, Spence Christopher, Daila Shimek, Ziona Austrian

All Maxine Goodman Levin School of Urban Affairs Publications

This report analyzes the potential impact of a proposed paid sick and family care leave legislation on the economy of the state of Ohio, the economic development prospects of the state and on the management of production processes that depend on highly integrate teams. The report also reviews the literature on the effect of mandated paid sick and family care leave on the industrial relations system—workplace performance and worker retention. Our analysis concludes that there would have been a net cost associated with the paid sick leave and family-care initiative proposed in Ohio with a lower bound estimate of $63.84 …

Changing The Paradigm Of Stock Ownership From Concentrated Towards Dispersed Ownership? Evidence From Brazil And Consequences For Emerging Countries, Erica Gorga

Cornell Law Faculty Working Papers

This paper analyzes micro-level dynamics of changes in ownership structures. It investigates a unique event: changes in ownership patterns currently taking place in Brazil. It builds upon empirical evidence to advance theoretical understanding of how and why concentrated ownership structures can change towards dispersed ownership.

Commentators argue that the Brazilian capital markets are finally taking off. The number of listed companies and IPOs in the Sao Paulo Stock Exchange (Bovespa) has greatly increased. Firms are migrating to Bovespa’s special listing segments, which require higher standards of corporate governance. Companies have sold control in the market, and the stock market has …

A Sovereign Wealth Turn, Anna Gelpern

Georgetown Law Faculty Publications and Other Works

On September 2, 2008, a group of leading sovereign wealth funds (SWFs) agreed on generally accepted principles and practices. The process that created the so-called Santiago Principles is important in its own right, as a milestone on the way to what might become international financial architecture. Since SWFs rose to prominence two years ago, they have been trapped in sterile domestic arguments between national security and open investment. These have obscured SWFs' significance and the governance challenge they present. The challenge reflects the power shifts and culture clashes of financial integration, which, thanks to capital flow reversals, no longer looks …

Management And Marketing 2009 Winter Wheat, Alan May, Jack Davis, Matthew Diersen

Economics Commentator (1972- 2016)

No abstract provided.

Toward A Global Shareholder Society, Robert C. Hockett

Cornell Law Faculty Publications

With the American economy seemingly stalling, the global economy thereby imperiled, and another electoral campaign season well underway in the U.S., the "outsourcing" of jobs from the developed to the developing world is again on the public agenda. Latest figures indicate not only that layoffs and claims for joblessness benefits are up in the U.S., but also that the rate of American job-exportation has more than doubled since the last electoral cycle. This year's American political candidates have been quick to take note. In consequence, more than at any time since the early 1990s, continued American, and with it other …

Household Wealth And Heterogeneous Impacts Of A Market-Based Training Program: The Case Of Projoven In Peru, Jose Galdo, Miguel Jaramillo, Veronica S. Montalva, Sonia Moreau

Economics - All Scholarship

This paper analyzes the relationship between households' wealth and heterogeneous treatment impacts for a market-based training program that has benefited more than 40,000 disadvantaged individuals in Peru since 1996. We proxy long-run wealth by a linear index based on 21 household assets, and three main findings emerge. First, we find that voluntary choices among eligibles, rather than administrative choices, play a bigger role in explaining demographic disparities in program participation. Second, quantile treatment effects on the treated suggest important differences in program impacts at different quantiles of earnings, and strong differences in distributional impacts for men and women. Third, both …

Albion College Study: Exploring Economic Development Opportunities, George A. Erickcek, Ben Copeland, W.E. Upjohn Institute For Employment Research

Reports

No abstract provided.