Economics Commons^™

Race Disparities In Birth Outcomes In The U.S. South And The Rest Of The Nation, Lenna Nepomnyaschy

University of Kentucky Center for Poverty Research Discussion Paper Series

There are well-documented and as yet unexplained disparities in birth outcomes by race in the United States, even after controlling for socioeconomic status. This paper examines the sources of disparities in low birth weight between blacks and whites in the U.S., by focusing on differences in disparities between two very distinct geographic areas, the Deep South and the rest of the country. Two findings from prior research drive the analyses: First, health overall is worse in the Deep South states; Second, race disparities are smaller in the Deep South than in the rest of the nation. A number of potential …

Rhode Island Current Conditions Index — July 2009, Leonard Lardaro

The Rhode Island Current Conditions Index

No abstract provided.

Are Credit Unions In Ecuador Achieving Economies Of Scale?, Nick A. Marchio

Economics Honors Projects

This study tests the assertion that membership growth in credit unions is constrained by their unique structural features, such as their non-profit mission and member-based ownership. Although these features enhance inclusiveness, existing theory suggest that they work against efficiency when membership grows too diffuse. To address this issue, this study uses a model that takes into account existing theory on constrained-optimization in credit unions and theory on the adverse effects of diffuse ownership. Using data on 36 public credit unions in Ecuador, the empirical analysis finds evidence that credit unions can achieve economies of scale despite their problematic structural features. …

Epidemiologic And Economic Research, And The Question Of Smoking Bans, Michael L. Marlow

Economics

Smoking bans in public places are promoted on the dual basis that they protect the public from “secondhand smoke”— environmental tobacco smoke (ETS), and that bans never harm businesses. Evidence shows that ETS does not pose health risks nearly as large as many ban advocates claim, and that bans do harm some businesses. Unintended and adverse consequences of smoking bans include (1) harm to smokers if they compensate by smoking more intensely; (2) an increase in drunk driving when smokers drive longer distances to smoke and drink; and (3) less innovation in air-filtration technology that also slows progress in removing …

The Great Macroeconomic Experiment: Assessing The Effects Of Fiscal Stimulus Spending On Employment Growth, Robert Baumann, Bryan Engelhardt, Victor Matheson

Economics Department Working Papers

As the economics profession is split over the expected impact of the American Recovery and Reinvestment Act of 2009, we analyze the effects as if it were an experiment. Specifically, we analyze the effects of spending on employment using a difference-in-difference approach by state. To date, we find spending has had no significant effect on employment.

Department Of Economics Publication List 2009, Penny Stover

Economics Pamphlet Series (1985-2016)

This compilation lists published works authored by Department of Economics faculty members and other staff working on projects funded through the Department of Economics. Publications resulting from their research and academic activities are indexed by author for easy access by the public. The articles were published between January 1, 2008 and December 31, 2008.

Complexity, Cofactors, And The Failure Of Aids Policy In Africa, Eileen Stillwaggon

Economics Faculty Publications

Global AIDS policy still treats HIV as an exceptional case, abstracting from the context in which infection occurs. Policy is based on a simplistic theory of HIV causation, and evaluated using outdated tools of health economics. Recent calls for a health systems strategy – preventing and treating HIV within a programme of comprehensive health care – have not yet influenced the silo approach of AIDS policy.

Evidence continues to accumulate, showing that multiple factors, such as malnutrition, malaria and helminthes, increase the risk of sexual and vertical transmission of HIV. Moreover, complementary interventions that reduce viral load, improve immune response, …

Credit Cards And Inflation, John Geanakoplos, Pradeep Dubey

Cowles Foundation Discussion Papers

The introduction and widespread use of credit cards increases trading efficiency but, by also increasing the velocity of money, it causes inflation, in the absence of monetary intervention. If the monetary authority attempts to restore pre-credit card price levels by reducing the money supply, it might have to sacrifice the efficiency gains. When there is default on credit cards, there is even more inflation, and less efficiency gains. The monetary authority might then have to accept less than pre-credit card efficiency in order to restore pre-credit card price levels, or else it will have to accept inflation if it is …

Alternative Policies And Sea-Level Rise In The Rice-2009 Model, William D. Nordhaus

Cowles Foundation Discussion Papers

The present study extends earlier research by presenting the results of a new and updated version of the RICE model (Regional Integrated model of Climate and the Economy), labeled the RICE-2009 model. The model is a regionalized, dynamic model that incorporates an end-to-end treatment of economic growth, emissions, climate change, damages, and emissions controls. The model allows projections of what will occur with no policies, with efficient policies be, how nations can undertake policies to limit climate change (in the current runs to 2°C), and the impacts of limited participation. These new estimates indicate that coordinated international policies have a …

Selecting A Unique Competitive Equilibrium With Default Penalties, Cheng-Zhong Qin, Martin Shubik

Cowles Foundation Discussion Papers

The enlargement of the general-equilibrium structure to allow default subject to penalties results in a construction of a simple mechanism for selecting a unique competitive equilibrium. We consider economies for which a common credit money can be applied to uniquely select any competitive equilibrium with suitable default penalties. We identify two classes of such economies. One consists of economies with utility functions being homogeneous of degree 1; the other consists of economies with the number of consumers equal to the number of commodities and traders having quasi-linear utility functions with respect to different commodities.

Grading Exams: 100, 99, 98,...Or A, B, C?, Pradeep Dubey, John Geanakoplos

Cowles Foundation Discussion Papers

No abstract provided.

Market Valuation Of Accrued Social Security Benefits, John Geanakoplos, Stephen P. Zeldes

Cowles Foundation Discussion Papers

One measure of the health of the Social Security system is the difference between the market value of the trust fund and the present value of benefits accrued to date. How should present values be computed for this calculation in light of future uncertainties? We think it is important to use market value. Since claims on accrued benefits are not currently traded in financial markets, we cannot directly observe a market value. In this paper, we use a model to estimate what the market price for these claims would be if they were traded. In valuing such claims, the key …

An Improved Bootstrap Test Of Stochastic Dominance, Oliver B. Linton, Kyungchul Song, Yoon-Jae Whang

Cowles Foundation Discussion Papers

We propose a new method of testing stochastic dominance that improves on existing tests based on the standard bootstrap or subsampling. The method admits prospects involving infinite as well as finite dimensional unknown parameters, so that the variables are allowed to be residuals from nonparametric and semiparametric models. The proposed bootstrap tests have asymptotic sizes that are less than or equal to the nominal level uniformly over probabilities in the null hypothesis under regularity conditions. This paper also characterizes the set of probabilities that the asymptotic size is exactly equal to the nominal level uniformly. As our simulation results show, …

Nonparametric Estimation Of A Polarization Measure, Gordon J. Anderson, Oliver B. Linton, Yoon-Jae Whang

Cowles Foundation Discussion Papers

This paper develops methodology for nonparametric estimation of a polarization measure due to Anderson (2004) and Anderson, Ge, and Leo (2006) based on kernel estimation techniques. We give the asymptotic distribution theory of our estimator, which in some cases is nonstandard due to a boundary value problem. We also propose a method for conducting inference based on estimation of unknown quantities in the limiting distribution and show that our method yields consistent inference in all cases we consider. We investigate the finite sample properties of our methods by simulation methods. We give an application to the study of polarization within …

The Leverage Cycle, John Geanakoplos

Cowles Foundation Discussion Papers

Equilibrium determines leverage, not just interest rates. Variations in leverage cause fluctuations in asset prices. This leverage cycle can be damaging to the economy, and should be regulated.

The Leverage Cycle, John Geanakoplos

Cowles Foundation Discussion Papers

Equilibrium determines leverage, not just interest rates. Variations in leverage cause fluctuations in asset prices. This leverage cycle can be damaging to the economy, and should be regulated.

The Great Depression, The New Deal, And The Current Crisis, Alexander J. Field

Economics

In the past year, a rising tide of antagonism to the New Deal has formed among some economists and writers, claiming that the New Deal policies made the Great Depression worse. Is there any basis in fact to New Deal denialism? The noted economic historian Alexander Field has closely studied the period. He shows the central weaknesses of these arguments and makes a strong case that the New Deal made a remarkable contribution to the U.S. economy and the American way of life.

Unaffordable “Affordable” Housing: Challenging The U.S. Department Of Housing And Urban Development Area Median Income, Michael E. Stone

Center for Social Policy Publications

There is no such thing as “affordable” housing. Affordability is not a characteristic of housing: It is a relationship between housing and people. For some people, all housing is affordable, no matter how expensive. For others, no housing is affordable, no matter how cheap.

Teaching Ecological And Feminist Economics In The Principles Course, Julie A. Nelson, Neva Goodwin

Economics Faculty Publication Series

It can be difficult to incorporate ecological and feminist concerns into introductory courses, when one is also obliged to teach neoclassical analysis. In this essay we briefly describe how one might extend existing “multi-paradigmatic” approaches to feminist and ecological concerns, and then present an new alternative approach that may be more suitable for some students. This “broader questions and bigger toolbox” approach can be applied in both microeconomics and macroeconomics introductory classrooms.

Efficient Labor Force Participation With Search And Bargaining, Bryan Engelhardt, David L. Fuller

Economics Department Working Papers

A fixed wage is inefficient in a standard search model when workers endogenously separate from employment. We derive an efficient employment contract that involves agents paying a hiring fee (or bond) upon the formation of a match. We estimate the fixed wage and efficient contract assuming the hiring fee is unobservable, and find evidence to reject the efficient contract in favor of the fixed wage rule. A counterfactual experiment reveals the current level of labor force participation to be 9% below the efficient level, and a structural shift to the efficient contract improves welfare by nearly 4%.

Luck Or Skill? An Examination Of The Ehrlich - Simon Bet, Katherine A. Kiel, Victor Matheson, Kevin Golembiewski

Economics Department Working Papers

In 1980, Paul Ehrlich and Julian Simon placed a famous bet on whether the prices of a bundle of natural resources would rise or fall over the ensuing decade. Simon won the bet as the real price of the bundle fell significantly, and the result of this bet has been taken as proof that technological progress is likely overcome any Neo-Malthusian concerns about natural resource scarcity. Contrary to the popular perception, however, an examination of the price history of the identical bundle of goods from 1900-2007 shows that Ehrlich and not Simon would have won a majority of the bets …

Local Food Systems In Central Illinois: An Economic Impact Analysis, Joseph Lauchlan, Viktor Schrader

Master's Theses - Economics

Local food movements nationwide have gained traction in their popularity and relevance as an alternative to the more dominant industrial, specialized system. The primary focus of this paper is the analysis of food systems in a five county region of Central Illinois. Statistical analysis as well as theoretical perspective is used to present the current status of the industry and develop a framework for assessing the economic impact of an increase in local food production for local consumption. We use the IMPLAN Modeling System to measure the financial and employment impacts of an increase in vegetable and fruit production in …

Justice And Fairness In The Dictator Game, Karl Schurter, Bart J. Wilson

Economics Faculty Articles and Research

This article uses a laboratory experiment to examine the question of whether justice and fairness are different motivational forces in the dictator game. "Justice" and "fairness" are often used interchangeably because their meanings and usages are so closely linked, despite their distinct connotations. Using four different treatments, our experimental design investigates the subtle differences between the two social concepts to explicate generosity in the dictator game. The results indicate that justice, not fairness, legitimizes property rights in the dictator game.

Is The Cdc Blowing Smoke?, Michael L. Marlow

Economics

In 2007, the Centers for Disease Control and Prevention (CDC) released a report detailing "best practice" spending recommendations for state tobacco control programs. According to the report, "Research shows that the more states spend on comprehensive tobacco control programs, the greater the reductions in smoking-- and the longer states invest in such programs, the greater and faster the impact.

Estimasi Efisiensi Bank-Bank Umum Di Sumatera Barat Melalui Metode Stochastic Frontier Approach (Sfa), Gaffari Ramadhan

Jurnal Ekonomi dan Pembangunan Indonesia

This study estimates the banking efficiency in the Province of West Sumatera for the years of 2007-2008. Using 19 samples of commercial banks, the estimation applies the Stochastic Frontier Approach (SFA) model in order to analyze the cost efficiency of commercial banks. This study finds that the bank's cost function is significantly affected by price of labors, price of funds, and loans. The results of the banking efficiency estimation show that in annually almost banks have more than 80 percent of the efficiency level. In the average estimation, it also shows the same result. By dividing banks into groups, the …

Improving Performance Measures For The Nation's Workforce Development System, Randall W. Eberts

Employment Research Newsletter

No abstract provided.

Boosting The Economy Through Career And Technical Education, Kevin Hollenbeck

Employment Research Newsletter

No abstract provided.

Landfill Closure And Housing Values, Thomas C. Kinnaman

Faculty Journal Articles

The United States disposes roughly 60% of the municipal solid waste it generates each year in solid waste disposal facilities, commonly known as landfills. Hedonic pricing studies have estimated the external costs of landfills on neighboring housing markets, but the literature is silent on what happens to property values after the landfill closes. Original housing price data collected both before and after a landfill closure are used to estimate how a landfill closure affects neighboring property values. Results of both a hedonic pricing model and repeat-sales estimator are used in the analysis.

How Can A Community Respond To The Economic Downturn?, George A. Erickcek, Brad R. Watts

Employment Research Newsletter

No abstract provided.

Habitudes De Lecture Et Performances Scolaires, Félix Compaoré, Michael Kevane, Alain Joseph Sissao

Economics

La problématique de la lecture se pose de nos jours en raison de l’envahissement à tous les niveaux et dans tous les espaces de l’audiovisuel et des technologies de l’information et de la communication. La pratique de la lecture n’est plus courante de nos jours parmi les jeunes. Et pour cause, il y a une foule de distractions et d’évasions qui captent mieux leur attention que la lecture. De surcroît, la rareté des livres et leur coût relativement élevé les rendent inaccessibles à ceux qui, d’aventure, sont tentés de pratiquer la lecture.