Economics Commons^™

The Optimal Degree Of Reciprocity In Tariff Reduction, Pao Li Chang

Research Collection School Of Economics

This article clari.es the roles played by trade policy, in contrast with iceberg transport cost, in the popular setting of Melitz (2003), and characterizes the optimal reciprocal trade policy in such a setting. I show that import tariffs and iceberg transport cost are not equivalent in the strength of their trade-restricting e¤ects and their welfare implications. With all the con.icting effectsof import tari¤s on welfare considered, the optimal degree of reciprocity in multilateral tari¤ reduction turns out to be free trade.

Risk, Learning, And The Technology Content Of Fdi: A Dynamic Model, Pao Li Chang, Chia-Hui Lu

Research Collection School Of Economics

This paper builds a dynamic model of catching up to examine the policy stance of developing countries in attracting inward FDI. We show that the observably evident risk of FDI failure sets a minimum threshold on the South's technology capacity and furthermore creates a limit on the technology content of inward FDI. We provide economic foundations for the determinants of the FDI risk and formalize how the risk factor evolves over time as the South moves up its technology ladder. The model offers an insightful and tractable framework for empirical studies with a dynamic content, and reconciles many relevant empirical …

Innovation And Patentability Requirement In A Globalized World, Davin Chor, Edwin L. C. Lai

Research Collection School Of Economics

One important element of a patent regime is the non-obviousness requirement, which captures the minimum improvement to the best patented technology a new invention is required to make in order for it to be patentable. We call it the required inventive step. We explore the implications of a patenting regime based on required inventive step, by incorporating such intellectual property protection considerations in the quality-improvement model of technology, trade and growth developed by Eaton and Kortum (European Economic Review 2001). In considering whether to increase the inventive step, policy-makers trade off the benefits of a higher rate of innovation against …

Can Market Failure Cause Political Failure, Madhav S. Aney, Maitreesh Ghatak, Massimo Morelli

Research Collection School Of Economics

How can market failure interact with choice of institutional reform made by an electorate? We study this question in the framework of occupational choice where agents are endowed heterogeneously with wealth and talent. In our model, market failure due to unobservability of talent endogenously creates a class structure that affects vote on institutional reform. We find that the preferences of these classes may be highly nonmonotonic in wealth and are often aligned in ways that creates a tension between institutional reforms that are growth maximising and those that are politically feasible. This is in contrast to the world without market …

Decoupling And Recoupling: Global Links To The Business Cycle; Cattle Market Fundamentals, John A. Sodney, Matthew Diersen

Economics Commentator (1972- 2016)

No abstract provided.

Notes On Poverty Traps And Appalachia, Steven Durlauf

University of Kentucky Center for Poverty Research Discussion Paper Series

In these notes, I provide some general ideas on how to conceptualize poverty traps and speculate on their applicability to understanding Appalachian poverty. My goal is to stimulate thinking on Appalachia that exploits contemporary perspectives in economics on the sources of persistent poverty and inequality. To do this, I focus on both the theory of poverty traps as well as issues in the econometric assessment of their empirical salience.

Intergovernmental Fiscal Relations In The Czech Republic: A Survey Of Municipality Expenditure Patterns, Phillip J. Bryson, Scott M. Smith, Gary C. Cornia

Faculty Publications

A survey of Czech local officials probes perceptions of intergovernmental relations. Perceived autonomy and municipality size are tested as autonomy indicators. The impact of the city size on municipal expenditures from different funding sources is evaluated. Cross-tabulations of city size identify revenue sources for various expenditures and activities. For all expenditures, use of funds is more effectively explained by city size than by the fiscal choices of high- and low-autonomy groups. A graphic analysis of relationships between expenditures and revenue sources complements the statistical analysis. Radar charts reveal sources for small versus large and low- versus high-autonomy cities.

The Next Las Vegas Boom, Robert E. Lang

Brookings Scholar Lecture Series

The Great Recession—Where are We Now?

- U.S. Employment

- U.S. GDP by Type

- U.S. Household Net Worth

- U.S Retail Sales

Assessing The Impact Of A Modernized Application Process On Florida’S Food Stamp Caseload, Colleen Heflin, Peter Mueser

University of Kentucky Center for Poverty Research Discussion Paper Series

In 2005, Florida implemented an internet-based service delivery system for eligibility determination in public assistance programs, including the Food Stamp, Temporary Assistance for Needy Families (TANF), and the Medicaid programs. At the same time, Florida switched from a caseworker model to a technology-driven model and decreased staffing levels of employees involved in social service delivery. We conduct an evaluative case study of the effects of these policy changes on the Food Stamp caseload. In particular, we consider the impact on applications and the flows onto and off of the program. To answer these questions, we use administrative data from the …

5th Annual Economic Outlook Conference 2010, University Of New Mexico Bureau Of Business And Economic Research

BBER Publications

This paper published the outlook for the New Mexico Economy in 2010; data series for non-farm employment, personal income, and employment growth for New Mexico in previous quarters as well as population projections are available in the report's summary and following diagrams.

Michigan Budget Reform: Why Reform Is Needed, And Key Ideas For Reform, Timothy J. Bartik

Testimonies

No abstract provided.

Financial Analysis With Microsoft Excel, Todd M. Shank, Timothy R. Mayes

Faculty Books

FAME explores the use of Excel as THE calculating tool for finance professionals. As students enter College with basic skills for using Excel and other software packages they need for their business courses, the materials they read must be ramped up. The book as it stands covers the main topics that students would see in a typical corporate finance course: financial statements, budgets, TVM, capital budgeting, the Market Security Line, some options materials, pro forma statements, cost of capital, equities, and debt. In the final chapter of this revision, we include a section on how students can build their own …

United-Continental Merger, Robert J. Carbaugh, Koushik Ghosh

All Faculty Scholarship for the College of Business

This case study discusses the nature and likely effects of the proposed merger between United Airlines and Continental Airlines. It is intended as a lecture for instructors teaching undergraduate courses in Industrial Organization or Antitrust Economics.

Shin-Gate: Misunderstanding The Power Of Shame In South Korea, Koushik Ghosh

All Faculty Scholarship for the College of Business

Shame is not perceived the same way in different cultures, nor is it used the same way. How does that difference across cultures influence our interactions in public space? How does it affect our business interactions? It has been argued, especially in the wake of Asia’s financial crisis in 1997, that there was a lack of shame in Asian cultures aft er the economic crash. The same kind of argument has been presented in the United States following the financial crisis which began in 2008. President Obama has tried to shame the Wall Street crowd. Economic commentators have spoken of …

Credit Risk Models: An Analysis Of Default Correlation, Howard Qi, Yan Alice Xie, Sheen Liu

College of Business Publications

This paper examines one of the major problems in credit risk models widely used in the financial industry to forecast future defaults and bankruptcies. We find that even after proper calibration, a representative credit risk model can severely underestimate default correlation. We further find that a likely reason for the underestimation of default correlation is the problematic common practice in the financial industry of using observable equity correlation as a proxy for unobservable asset correlation when the model is applied to predict default correlation. However, our results show that this proxy in common practice is not valid.

Analyzing The Relationship Between Dependent And Independent Variables In Marketing: A Comparison Of Multiple Regression With Path Analysis, Junhong Min, Debi P. Mishra

College of Business Publications

Multiple regression models continue to be widely used in marketing. Within the regression framework, researchers have to grapple with and resolve several contentious issues. For example, multicollinearity, nonsimultaneous estimation of parameters, inherent measurement error in independent variables, absence of overall goodness of fit indices, and lack of compelling guidelines for adding and deleting model variables are some common estimation problems associated with this method. In the absence of universally acceptable guidelines, researchers often use judgment calls to deal with these issues. Such ad-hoc approaches, in turn, compromise the potential usefulness of multiple regression models. In this paper, we position path …

State Employment Protection Statutes For Victims Of Domestic Violence As An Employment Matter, Jennifer E. Swanberg, Mamta U. Ojha

University of Kentucky Center for Poverty Research Discussion Paper Series

Evidence indicates that domestic violence has negative consequences on victims’ employment; yet employers lag in recognizing this as a workplace issue. To address the problem, some states have established several policy solutions. To understand the scope of the public sector’s response to domestic violence as a workplace issue, a content analysis of state-level employment protection policies for domestic violence victims (N=369) was conducted. Results indicate three broad policy categories: 1) policies that offer work leave for victims; 2) policies that aim to reduce employment discrimination of domestic violence victims; and 3) policies that aim to increase awareness and safety in …

What About These Children? Assessing Poverty Among The ‘Hidden Population’ Of Multiracial Children In Single-Mother Families, Jenifer Bratter, Sarah Damaske

University of Kentucky Center for Poverty Research Discussion Paper Series

Capturing the conditions of children of color living in single-parent families has become more complex due to the growing presence of interracial households. This analysis assesses the size and poverty status of single-female headed families housing multiracial children. Using data from the 2000 Census, we find that 9 percent of female-headed families house either children who are classified with more than one race or are classified as a single race different than their mother’s compared to only 3 percent of married couple families. Logistic regression analyses assessing the odds of poverty status for families finds that being a multiracial family …

The Trend Of The Gender Wage Gap Over The Business Cycle, Nicholas J. Finio

Gettysburg Economic Review

Even after the close of the first decade of the 21st century, there is still significant gender bias in labor market composition and compensation. As the events of the last two years have proven, even drastic efforts of monetary and fiscal policy have not tamed the business cycle. Previous research has reached no definite conclusions on the effect of business cycle trends on the gender wage gap. Over the period from 1979:1 to 2009:3, it is found that increases in the growth rate of GDP yield decreases in women‘s earnings relative to men‘s, and it is also found that increases …

The Gettysburg Economic Review, Volume 4, Spring 2010

Gettysburg Economic Review

No abstract provided.

Developing A Convention And Event Management Curriculum In Asia: Using Blue Ocean Strategy And Co-Creation With Industry, David L. Jones

Hospitality Management

In this article the author discusses the development of a convention and event management curriculum in Asia through blue ocean strategy and co-creation with the industry. He emphasizes the necessity to differentiate the product from the competition, which is a concept that applies to an academic degree programs in order to create a niche in the market. The author also discusses the approach being used and the development of the curriculum.

Foreign Produced Content And Japanese Price Disinflation: An Empirical Study, Peggy Takahashi, Daniel Blakley, Joel Oberstone, Yasuhiro Akiyama

Economics, Law, and International Business

This research investigates the role non-macroeconomic factors have played in subduing inflationary pressures in Japan. We investigate the hypothesis that the under-recognized presence of goods with high foreign produced content (FPC) in the consumer market basket has coincided with reduced price-level increases over the time period 1991-2004. An empirical examination and descriptive comparison of CPI market basket items and import data categories suggest the negative relationship between FPC and the CPI inflation rate over this time period is significant. Our conclusions suggest the extent to which measures of inflation are considered to be an accurate gauge of macroeconomic conditions or …

Shaping Economic Practices In China’S Post-Command Economy Period: The Interaction Of Politics, Economics And Institutional Constraints, Tonia Warnecke, Alain Blanchard

Student-Faculty Collaborative Research Publications

Although much has been published on China's economic transition, less research has focused on how Chinese culture and the Communist political system have interacted to shape the new Chinese economy. In this paper, we argue that China's post-command economy period reflects not only the 'new' infusion of neo-liberal ideology into the country, but also the consistent filtering of economic practices through a historical and complex institutional arrangement of cultural and political norms. The tensions between neo-classical free market principles and the overarching authority of the Communist state explain the variety of institutional constraints on actual economic practices in China. While …

Cultural Diversity, Immigration And Trade: A Study Of Nine Oecd Host Countries, Roger White, Bedassa Tadesse

Economics

Employing data from nine OECD countries and 67 trading partners for the years 1996-2001, we examine the inter-relationships between immigration, cultural diversity and trade. We find greater cultural differences between immigrants’ host and home countries inhibit trade flows. However, immigrants exert pro-trade influences that partially offset the effect of cultural distance. We also find that greater cultural diversity within the immigrants’ host countries is associated with the creation of trade between immigrants’ host and home countries. The findings suggest that the ability of immigrants to influence their host’s trade with their home countries depends, in part, on the characteristics of …

Determinants Of Rental Rates In Major Cities In The United States, Roy Ruivo

Empirical Economic Bulletin, An Undergraduate Journal

The focus of this paper is to determine variables that contribute to rental rate pricing. Using U.S. Census data pertaining to all cities in the United States with populations over 100,000 in 2005, this paper furthers a study of inter-city rent determinants within New York City provided by Marco (2008) using additional variables provided by Gilderbloom and Pan (2002) in their inter-city study. This report studies the impact of variables, including vacancy rates, median family income, population growth rate, and average housing costs. The population variable will be manipulated so that it represents density, which provides an accurate representation of …

Determinants Of Hyperinflation: An Analysis Of Argentina, Eric Fudge

Empirical Economic Bulletin, An Undergraduate Journal

This paper examines the history of inflation rates in Argentina compared to other economic factors, including: GDP, national budget, money supply, exchange rate, and unemployment levels. Using data from the World Bank and Centre of International Economics this paper will give insight into some of the causes of high inflation levels that were evident in Argentina throughout the 1980s, peaking with hyperinflation in 1989 and 1990. Results from analyzing statistics pertaining to Argentina’s economy from 1980 to present suggest that perpetual budget deficits led the government to print money more rapidly, causing a significant decrease in currency valuation and thus …

Economic Growth And Emissions In China And India: A Comparison With The Other G5 Emerging Nations, David Niles

Empirical Economic Bulletin, An Undergraduate Journal

This paper investigates the possibility of different modes of production affecting the emission levels of developing nations. China and India have experienced substantial economic growth of the past few decades. Past economists have found emission levels positively correlated with GDP growth. Nonetheless, China has significantly higher emission levels than India, given their respective growth in GDP. Whether a country bases their growth on agriculture, industry, manufacturing or services has an effect on their subsequent emission levels. Comparing these results with the other G5 nations indicate the relative importance of GDP level in comparison with economic structure. This paper finds that …

2009 Workforce Solutions Customer Survey, Mario E. Caire, Elizabeth K. Gibson, Melissa Gonzalez

IPED Technical Reports

The Institute for Policy and Economic Development (IPED) at the University of Texas at El Paso (UTEP) was contracted by Workforce Solutions - Upper Rio Grande (WSURG) Workforce Development Board (WDB) to conduct a customer satisfaction survey. For purposes of this survey, “customer” refers to individuals who have received WS-URG services (such as job search, resume writing, etc.) or have attended a WS-URG sponsored training program. The goals of the survey were to assess customer satisfaction with and the quality of services offered by WS-URG and to evaluate satisfaction with training programs. The survey was also designed to collect information …

Mapping Energy Poverty In Huntington, West Virginia, Elizabeth Anne Callicoat

Theses, Dissertations and Capstones

Energy poverty is a growing phenomenon culminating from the combination of low to mid household income, deteriorating housing structures and rising household energy costs. Energy prices are increasing for all households, but the burden is proportionally larger for those with low to mid income. These groups must sacrifice to afford energy and are often unable or do not have the autonomy to make structural improvements, especially if they rent their home. Data on residential dwellings from the Cabell County Tax Assessor? Office were used within a geographic information system to map where energy poverty likely exists within the city limits …

Binary Economics - An Overview, Robert Ashford

College of Law - Faculty Scholarship

Based on binary economic principles, this paper asserts that one widely overlooked way to empower economically poor and working people in market economy is to universalize the right to acquire capital with the earnings of capital. This right is presently largely concentrated, as a practical matter, in less than 5 % of the population. The concentration of the right to acquire capital with the earnings of capital helps to explain how people either remain poor or end up poor no matter how hard they work or are willing to work. Binary Economics offers a conception of economics that is foundationally …