Economics Commons^™

Testing For Common Trends In Semiparametric Panel Data Models With Fixed Effects, Yonghui Zhang, Liangjun Su, Peter C.B. Phillips

Cowles Foundation Discussion Papers

This paper proposes a nonparametric test for common trends in semiparametric panel data models with fixed effects based on a measure of nonparametric goodness-of-fit (R²). We first estimate the model under the null hypothesis of common trends by the method of profile least squares, and obtain the augmented residual which consistently estimates the sum of the fixed effect and the disturbance under the null. Then we run a local linear regression of the augmented residuals on a time trend and calculate the nonparametric R² for each cross section unit. The proposed test statistic is obtained by averaging all cross sectional …

Meritocracy Voting: Measuring The Unmeasurable, Peter C.B. Phillips

Cowles Foundation Discussion Papers

Learned societies commonly carry out selection processes to add new fellows to an existing fellowship. Criteria vary across societies but are typically based on subjective judgments concerning the merit of individuals who are nominated for fellowships. These subjective assessments may be made by existing fellows as they vote in elections to determine the new fellows or they may be decided by a selection committee of fellows and officers of the society who determine merit after reviewing nominations and written assessments. Human judgment inevitably plays a central role in these determinations and, notwithstanding its limitations, is usually regarded as being a …

Reducing Our Waste In Bloomington-Normal, Il, Ashley Conrad, Alyssa Curran, Phillip Dawson, Tim Glaza, Lauren Karplus, Greg King, Amber Madden, Dane Myers, Ambuj Neupane, Nancy Ouedraogo, Elizabeth Rardin, Katie Saunders, Robyn Savacool, Carolyn Schulte, Danielle Shtraus,, Kate Slisz, Andrew Smolski,, Luke Tervola,, Jenna Williams

Community Project Design and Management Reports - Sociology

The purpose of this report is to inform public officials, the Ecology Action Center, and Bloomington/Normal residents of current habits, unmet needs and areas for improvement concerning community recycling programs. The findings are based on a survey of 290 Bloomington/Normal households, as well as interviews conducted with key stakeholders in the community. One of the more significant findings was the almost universal support for the expansion of the curbside recycling program in the area. Respondents also reported a general dissatisfaction with the current state of apartment recycling efforts, and support of the implementation of mandatory recycling in school districts. To …

Who Enters The Foreclosure Process?, Eric Doviak, Sean P. Macdonald

Publications and Research

Since February 2010, detailed information on every home mortgage default and foreclosure in New York State must be filed with the New York State Banking Department (NYSBD). The data enables us to identify the financial characteristics that make a defaulted borrower more (or less) likely to enter the foreclosure process. Our analysis of the NYSBD data suggests that borrowers in default who took larger loans are more likely to progress to foreclosure. It also suggests that reducing principal balances may reduce the foreclosure rate, but might have an adverse effect on the mortgage industry. Given the frequent criticism of the …

Regional Differences In Fan Preferences For Minor League Hockey: The Ahl, Rodney Paul, Robert Chatt

Falk College Research Center

Regional differences in fan preferences for minor league hockey in the United States are explored using simple linear regression models. The top-level minor league for the NHL, the American Hockey League (AHL), was studied for the 2008-09 season. Key attributes with respect to attendance are studied for hockey including population, income per capita, promotions, scoring, and winning percentage. In addition, a key socio-economic variable, fighting is also investigated. Major differences are found for fan preferences across geographic regions in relation to population, income per capita, a variety of promotions, and team success. In addition, fan reaction to fighting tends to …

Eerc Economic Impact, University Of North Dakota. Energy And Environmental Research Center

EERC Brochures and Fact Sheets

Brochure summarizing the economic impact of the Energy & Environmental Research Center (EERC). [This item is an outdated or superseded version and retained for historical purposes only. It may no longer reflect current information, policies, or practices.]

The State Of The Region: Hampton Roads 2011, James V. Koch, Vinod Agarwal, Christopher B. Colburn, Vicky Curtis, Steve Daniel, Susan Hughes, Elizabeth Janik, Feng Lian, Sharon Lomax, Janet Molinaro, Ken Plum, Jim Sylvester, Ayush Toolsidass, Shara Weber, Gilbert Yochum

Economics Faculty Books

This is Old Dominion University's 12th 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 …

European Welfare Regimes: Political Orientations Versus Poverty, Kosta Josifidis, John B. Hall Professor, Novica Supic, Olgica Ivancev

Economics Faculty Publications and Presentations

This inquiry analyzes how political orientations shape welfare states and labour market institutions when seeking to reduce poverty. In order to identify effects of these two key variables, we conduct a panel regression analysis that includes two poverty measures: poverty rates before and after social spending. This inquiry considers 14 EU countries, and in the period from 1995 to 2008, which are grouped according to welfare state regimes. We consider Social Democratic, Corporatist, Mediterranean and Liberal welfare state regimes. Panel regression results indicate that political orientation engenders no significant statistically measurable effects on poverty rates before social spending. Effects register, …

A Forensic Analysis Of Global Imbalances, Menzie David Chinn, Barry Eichengreen, Hiro Ito

Economics Faculty Publications and Presentations

We examine whether the behavior of current account balances changed in the years preceding the global crisis of 2008-09, and assess the prospects for global imbalances in the post-crisis period. Changes in the budget balance are an important factor affecting current account balances for deficit countries such as the U.S. and the U.K. The effect of the “saving glut variables” on current account balances has been relatively stable for emerging market countries, suggesting that those factors cannot explain the bulk of their recent current account movements. We also find the 2006-08 period to constitute a structural break for emerging market …

Financing Of Public Goods Through Taxation In A General Equilibrium Economy: Experimental Evidence, Juergen Huber, Martin Shubik, Shyam Sunder

Cowles Foundation Discussion Papers

We use a laboratory experiment to compare general equilibrium economies in which agents individually allocate their private goods among consumption, investment in production, and replenishing/ refurbishing a depreciating public facility in a dynamic game with long-term investment opportunities. The public facility is financed either by voluntary anonymous contributions (VAC) or taxes. We find that rates of taxation chosen by majority vote remain at an intermediate level (far from zero or 100%), and the experimental economies sustain public goods at levels between the finite- and infinite-horizon optima. This contrasts with a rapid decline of public goods under VAC. Both the payoff …

Remix Cleveland- The Cleveland Music Sector And Its Economic Impact - Executive Summary, Iryna Lendel, Sharon Bliss, Candice Clouse, Merissa Piazza, Ziona Austrian, Kathryn W. Hexter, Renee Constantino, Matthew Hrubey

All Maxine Goodman Levin School of Urban Affairs Publications

This study was commissioned by the Community Partnership for Arts and Culture (CPAC)as a starting point for gaining a deeper understanding of the different sectors of the Cleveland arts scene in Cuyahoga county. Its objective is to understand the Cleveland Music Sector, delineate its components, learn its dynamics, and assess the economic impact of music events and venues in Cuyahoga county.

Remix Cleveland: The Cleveland Music Sector And Its Economic Impact - Full Report, Iryna Lendel, Sharon Bliss, Candice Clouse, Merissa Piazza, Ziona Austrian, Kathryn W. Hexter, Renee Constantino, Matthew Hrubey

All Maxine Goodman Levin School of Urban Affairs Publications

No abstract provided.

The Hui Migrant Laborers’ Urban Experience And Implications For The Development Of Civil Society In China, Billy Yates

Independent Study Project (ISP) Collection

Recent unrest in China by migrant laborers’ increasing labor militancy, as well as unrest caused by Islamic groups in China ranging from separatist movements to backlash from discrimination have been the focus of the Chinese government’ attempts to main stability within the PRC. In the largest country in the world, rapid changes as the result of economic liberalization and the introduction of global capitalism have had drastic impacts on society, from increasing inequality to the introduction of Western media and ideas. Unrest has been accompanied by developments in civil society as Islamic institutions chafing under Chinese regulations become places of …

Constructing Cidadania: Shifting Visions Of Citizenship In The Mst Settlement Assentamento 25 De Maio In Ceará, Brazil, Alexis Victoria Cruzzavala

Independent Study Project (ISP) Collection

The social movement known as Movimento dos Trabalhadores Rurais Sem Terra (MST) was founded in 1984 with the intent of agrarian reform in a newly democratic Brazil. The movement arrived in Northeastern Brazil in the late 1980s and successfully organized a group of landless workers in the interior of Ceará on May 25, 1989 to create the first settlement the state had seen. The citizens of Assentamento 25 de Maio, as the settlement was later named, have undergone a unique social transition from circumstances closely resembling forced servitude and latifúndio to liberation. This transition affected the men and women who …

Conflicting Perspectives, Contentious Problems A Case Study Of Kwale International Sugar Co. Ltd. In Msambweni District, Jayme Tsutsuse

Independent Study Project (ISP) Collection

This paper presents a report of the findings from a four-week study on the varying perspectives towards Kwale International Sugar Co. Ltd. which have brought about problems concerning land, development, and politics. It discusses findings fromliterary sources and field work, including correspondence, interviews, forums, and focus group discussions with government representatives, company managers, and community members. It highlights where recorded information is inconsistent, making it difficult for the people and company to coexist. Additionally, it describes how the community’s grievances developed and critiques the various actors and actions that are responsible. Lastly, it provides recommendations to a way forward towards …

(Wp 2011-08) Identity, John B. Davis

Economics Working Papers

This chapter introduces the economics and identity literature, and discusses the relationship between social identity and personal identity. It distinguishes categorical and relational types of social identities, and argues that the former are more readily associated with instrumentally rational behavior, while the latter, which involve close contact with others in roles and social positions, are more readily associated with behavior in which individuals unilaterally reciprocate the actions of others – what Bruni terms unilateral altruism, which involves a non-instrumental or deontological type of motivation. The chapter also distinguishes two views of personal identity as relational in nature, Bachrach's game-theoretic approach …

Pension Reform: How Have Workers Fared?, Edward N. Wolff

Employment Research Newsletter

No abstract provided.

The Secular Rise In Unemployment Insurance Exhaustions And What Can Be Done About It, Ralph E. Smith

Upjohn Institute Working Papers

Over the past several decades, the rate at which regular unemployment insurance recipients run out of benefits before they have found jobs, even in a strong labor market, has been gradually rising. For example, in 1973, 27.4 percent of UI recipients exhausted their benefits; in 2007 (with a similar unemployment rate) 35.6 percent exhausted. This paper documents the increase in the exhaustion rate, along with the parallel rise in long-term unemployment; examines the consequences; and reviews what has been learned about the efficacy of various approaches for reversing, or at least halting, the trend.

The research on the rise in …

Intangible Investments And The Pricing Of Corporate Sga Expenses, Rongbing Huang, Gim S. Seow, Joe S. Shangguan

Faculty Articles

This study examined whether the market fully prices the reported Selling, General, and Administrative (SGA) expenses when this item includes an intangible investment component. For a sample of intangible investment-intensive firms, we showed that their SGA expenses benefit future operating performances. Evidence suggests some degree of market inefficiency in the pricing of SGA expenses and the intangible investment component. Furthermore, the financial analysts do not appear to appreciate fully the future benefits of the component in their earnings forecasts. Finally, the pertinent disclosures in firms’ annual reports are so inadequate as to attenuate the market mispricing, suggesting a significant room …

Optimal Jackknife For Discrete Time And Continuous Time Unit Root Models, Ye Chen, Jun Yu

Research Collection School Of Economics

Maximum likelihood estimation of the persistence parameter in the discrete time unit root model is known for su§ering from a downward bias. The bias is more pronounced in the continuous time unit root model. Recently Chambers and Kyriacou (2010) introduced a new jackknife method to remove the Örst order bias in the estimator of the persistence parameter in a discrete time unit root model. This paper proposes an improved jackknife estimator of the persistence parameter that works for both the discrete time unit root model and the continuous time unit root model. The proposed jackknife estimator is optimal in the …

Non-Parametric Regression Under Location Shifts, Peter C. B. Phillips, Liangjun Su

Research Collection School Of Economics

Recent work by Wang and Phillips (2009b, 2011) has shown that ill-posed inverse problems do not arise in non-stationary non-parametric regression and there is no need for non-parametric instrumental variable estimation. Instead, simple Nadaraya–Watson non-parametric estimation of a cointegrating regression equation is consistent irrespective of the endogeneity in the regressor. The present paper shows that some closely related results apply in the case of structural non-parametric regression with independent data when there are continuous location shifts in the regressor. Some interesting cases are discovered where non-parametric regression is consistent, whereas parametric regression is inconsistent even when the true regression functional …

Tilted Nonparametric Estimation Of Volatility Functions With Empirical Applications, Ke-Li Xu, Peter C. B. Phillips

Research Collection School Of Economics

This article proposes a novel positive nonparametric estimator of the conditional variance function without reliance on logarithmic or other transformations. The estimator is based on an empirical likelihood modification of conventional local-level nonparametric regression applied to squared residuals of the mean regression. The estimator is shown to be asymptotically equivalent to the local linear estimator in the case of unbounded support but, unlike that estimator, is restricted to be nonnegative in finite samples. It is fully adaptive to the unknown conditional mean function. Simulations are conducted to evaluate the finite-sample performance of the estimator. Two empirical applications are reported. One …

The Informal Economy And Bribery In North Korea, Byung-Yeon Kim, Yumi Koh

Research Collection School Of Economics

This paper uses the data of 227 North Korean refugees who have settled in South Korea to investigate the relationship between working in the informal economy (market component of the economy) and bribe-giving, and between bribe-giving and the number of hours worked in the formal sector (planned component of the economy). The first relationship is positive, and the second relationship is negative. These results imply that widespread informal economy activities in North Korea have been undermining the socialist regime through bribery.

Family Background And Economic Outcomes In Japan, Ken Yamada

Research Collection School Of Economics

There has been increasing concern about the influence of elements of family background on children’s future outcomes in Japan. This paper empirically examines the long-term impact of family background, including sibling composition and parental attributes, and reveals how these elements of Japanese women’s family backgrounds affect their educational attainment and investment, labor market outcomes, family formation, and spousal characteristics.

Immigrant Economic Experiences: A Canada-Us Comparison, Lucia Lo

Migration and Ethnic Relations Colloquium Series

No abstract provided.

Subsidizing The Rich, Ishrat Husain Dr.

Faculty Research - Newspaper and Magazine Articles

A progressive state caters to the needs of those, who are unable to generate adequate incomes and forced to live in subhuman conditions. Targeted subsidies to the poor are seen as an integral part of the state policy for promoting equity within a society. To finance these subsidies, the rich pay taxes. What is ironical in Pakistan is the role reversal — as those who should be financing subsidy to the needy, are its beneficiaries. First, they evade taxes on their income and then, they also receive bulk of subsidies and concessions to which they are least entitled. The only …

Strategic Substitutes Or Complements? The Game Of Where To Fish, Robert L. Hicks, William C. Horrace, Kurt E. Schnier

Economics - All Scholarship

The ‘‘global game with strategic substitutes and complements’’ of Karp et al. (2007) is used to model the decision of where to fish. A complete information game is assumed, but the model is generalized to S > 1 sites. In this game, a fisherman’s payoff depends on fish density in each site and the actions of other fishermen which can lead to congestion or agglomeration effects. Stable and unstable equilibria are characterized, as well as notions of equilibrium dominance. The model is applied to the Alaskan flatfish fishery by specifying a strategic interaction function (response to congestion) that is a non-linear …

Do Tax Havens Really Flourish? Accounting For Endogeneity In Growth Regressions, Luisa Blanco, Cynthia Rogers

School of Public Policy Working Papers

That tax haven policies contribute to favorable economic growth in tax haven countries is commonly accepted. There is, however, minimal empirical evidence to substantiate this assertion and empirical investigations are subject to endogeneity bias. Using a sample of 155 countries from 1982 to 2003, we find that the standard tax haven variable is endogenous to the error term in a typical growth regression. We offer land area measures as valid instruments for tax haven status. Results based on two-stage least squares estimation with heteroskedastic standard errors and controls for initial conditions provide support for the claim that tax havens “flourish” …

Hay Supply And Demand Balance Sheet, Tosha L. Opheim, Matthew Diersen

Economics Commentator (1972- 2016)

No abstract provided.

Social Interactions In The Labor Market, Andrew Grodner, Thomas J. Kniesner, John A. Bishop

Economics - All Scholarship

We examine theoretically and empirically social interactions in labor markets and how policy prescriptions can change dramatically when there are social interactions present. Spillover effects increase labor supply and conformity effects make labor supply perfectly inelastic at a reference group average. The demand for a good may also be influenced by either a spillover effect or a conformity effect. Positive spillover increases the demand for the good with interactions, and a conformity effect makes the demand curve pivot to become less price sensitive. Similar social interactions effects appear in the associated derived demands for labor. Individual and community factors may …