Economics Commons^™

An Econometric Analysis Of The Effect Of Monetary Policy On Output, Michael Gould, Dr. David E. Spencer

Journal of Undergraduate Research

In December 1996, Federal Reserve Chairman Alan Greenspan spoke of “irrational exuberance” fueling investment spending to unsustainable levels.¹ The pressure of the investment bubble and an extraordinarily tight labor market required the Fed to intervene to combat inflationary pressures which could have destabilized our economy.

“Borrowing” Constraints: A Panel Study, James Cardon, Dr. Barrett E. Kirwan

Journal of Undergraduate Research

Although the theory of aggregate consumption was first addressed in 1936 by Keynes, the modern theory stems from work done in the mid 1950’s by Modigliani and Brumberg (1954) and Friedman (1957); their theory has been termed the Life Cycle/Permanent Income Hypothesis (LC/PIH). While Keynes proposed that, “the amount of aggregate consumption mainly depends on the amount of aggregate income,” 1 the modern theory proposes that consumption tracks “permanent,” or average lifetime, income rather than current income.

An Economic Analysis Of The Costs Of Air Pollution Abatement, Kevin J. Mumford, Dr. C Arden Pope Iii

Journal of Undergraduate Research

Air pollution policy continues to be a cause of serious debate. Much of the confusion surrounding air pollution policy comes from leaders of industry and environmental groups’ appeals to ultimatums of disaster. Some leaders of industry argue that the entire American economy is at risk if more stringent air quality standards are imposed while some leaders of environmental groups argue that environmental and health disasters are unavoidable at our present level of pollution. Such arguments are not helpful to understanding the optimal level of air pollution abatement¹. The correct way to approach a policy of pollution control is …

Microcredit Replication In Theravada Buddhist Communities, Blaine Johnson, David A. Shuler

Journal of Undergraduate Research

Microenterprise activities have increased significantly in South-East Asia during the past five years. Many non-governmental organizations have now incorporated microcredit and/or microfinance schemes into their developmental agendas. Such projects abound throughout the lower-income regions of South-East Asia. These projects are often styled after the Grameen Bank model and other foreign models and are based on social mechanisms (e.g. peer collateral) that depend on cultural and community values specific to the communities they were developed within. To date, all replication attempts in South-East Asia have been direct imitations of preconstructed models. These foreign systems, although successful within their specific contexts, are …

The Marshall Plan And Recovery: German Coal And Steel, David Peter Jensen, Phillip Bryson, David M. Kennedy

Journal of Undergraduate Research

The European Recovery Program, commonly known as the Marshall Plan, is generally hailed as the greatest success in the history of U.S. foreign aid. From 1948 through 1951, the Marshall Plan supplied $13.3 billion dollars of aid to Western Europe. Over the duration of the Marshall Plan, the economies of Western Europe made significant recovery from post-war chaos and poverty. Most remarkable was the recovery of the West German economy. In recent decades, however, scholars have questioned the significance of the Marshall Plan to the German “Wirtschaftswunder.” Led by German scholar Werner Abelshauser, these revisionists point to other political and …

Order Statistics And Estimation Of Professors’ Salaries, Mark Pocock, Dr. James B. Mcdonald

Journal of Undergraduate Research

A knowledge of income distribution of different professions has many policy implications. Important applications include being able to make competitive salary offers for potential employees and being able to provide appropriate financial incentives which helps to retain valued employees. In some professions salary data are readily available and in others data are limited. In academics the amount of salary data is very diverse. In one case, Oklahoma State University publishes the highest, lowest, and mean salaries by rank and discipline for different Carnegie Research Classifications. Given the estimated distribution, deciles can be estimated which facilitates an analysis of salary structure. …

A Test Of Transitivity, Derek L. Hansen, Dr. Mark Showalter

Journal of Undergraduate Research

A theory is only as good as the assumptions upon which it is based. Because of this, assumptions are constantly held up to the light to see if, in fact, they are genuine. In the field of Economics, several assumptions are made concerning the rationality of humans. One of these presumed rational behaviors is called transitivity. Transitivity simply means that if I prefer A to B, and B to C, it follows that I should also prefer A to C. The purpose of this project was to test whether or not people are transitive, and if so, what factors contribute …

Passion Versus Career?, Michael Hemesath

Administration Publications

No abstract provided.

The Replacement Of The Brent Spence Bridge: Tolls, Commuting Patterns And Economic Activity In Northern Kentucky, Christopher R. Bollinger, Derrick Jenniges

CBER Research Report

Executive Summary:

In this report, we investigate the impact of proposed tolls levied on users of the replacement for the Brent Spence Bridge, including impacts on commuting patterns and overall economic activity in Northern Kentucky. Overall, consistent with economic literature, the economic impact of the improved bridge will be positive and the toll, while slightly mitigating that impact, is likely to have only small effects on commuting patterns, trucking and retail and food service industries.

• We estimate that the net impact of the new bridge and the toll under our estimated likely scenarios would reduce commuter traffic by less than …

Stylized Facts Of The Option Market, Karl N. Snow, Dr. Karl Diether

Journal of Undergraduate Research

Introduction Exchanged-based option trading began on the Chicago Board Options Exchange (CBOE) in 1973. The American Stock Exchange (AMEX) and the Philadelphia Stock Exchange started trading exchange-based options in 1975, and the Pacific Stock Exchange (PSE) and the Midwest Stock Exchange (MSE) in 1976. Exchanged-based option trading has experienced tremendous growth in both the number of options trading and the total trading volume. By 1997 there was over 2,000 underlying stocks with exchange-traded options. In 1980 the number was below 300. In 1996 the trading volume was close to 200 million contracts. This is double the volume of 1980 1. …

Negotiating For Curriculum & Class Size, 2011-13: One Faculty Union’S Perspective, Steve Hicks, Amy L. Rosenberger

Journal of Collective Bargaining in the Academy

The article walks the reader through the process of proposing, revising, and finally accepting by both sides of a new clause in the APSCUF-PASSHE collective bargaining agreement covering curriculum and class size. The clause took multiple forms over the course of over two years of negotiations and reveals the evolving priorities of the two sides over time.

Bargaining Market Equity Adjustments By Rank And Discipline, Jonathan P. Blitz, Jeffrey F. Cross

Journal of Collective Bargaining in the Academy

Faculty contract negotiations generally include wages, hours, and other conditions of employment as well as mutually agreed non-mandatory subjects of bargaining. Negotiators typically address wages in terms of across-the-board increases, promotion in rank, merit increases, and one-time signing bonuses. Less typically, faculty salary negotiations include various forms of equity adjustments and salary increases linked to the underlying market and social forces and to salary compression that may, or may not, be related to these forces. The authors describe how they negotiated differential discipline-specific target salaries based in part on College and University Personnel Association faculty salary data.

Modeling Non-Normality In Econometric Regression, Robert Turley, Dr. James B. Mcdonald

Journal of Undergraduate Research

Traditional methods for estimating economic relationships assume the error between their predictions and their observations to be normally distributed. In other words, the random variable representing the error term is expected to follow the Gaussian distribution popularly known as the bell curve. In the case of a linear model, this is one of the justifications for the regression technique known as ordinary least squares (OLS). However, in many cases it appears the distribution of the error in economic models is peaked or skewed, suggesting that it may be inappropriate to assume normality.

How To Replenish Both Social Capital And Good Will Toward Mn Orchestra, Target, Louis D. Johnston

Economics Faculty Publications

No abstract provided.

Youth Aptitude As A Predictor Of Adulthood Income, Jaret Kanarek

Undergraduate Economic Review

I examine the relationship between youth aptitude and adulthood income. Using the National Longitudinal Survey of the Youth 1979 cohort and OLS regression analysis, I test the hypothesis that a higher 1981 Armed Forces Qualifications Test (AFQT) score is directly related to a higher income in 2010, ceteris paribus. First, a single regression equation is run for educational attainment subgroups at the time of taking the AFQT. Second, a regression equation including total lifetime educational attainment, and one that excludes it, are run to examine potential co-linearity between AFQT score and educational attainment. The results show that AFQT is significant …

Snap And Food Consumption, Hilary W. Hoynes, Leslie Mcgranahan, Diane W. Schanzenbach

University of Kentucky Center for Poverty Research Discussion Paper Series

In this paper we describe the relationship between SNAP and food consumption. We first present the neoclassical framework for analyzing in-kind transfers, which unambiguously predicts that SNAP will increase food consumption, and then describe the SNAP benefit formula. We then present new evidence from the Consumer Expenditure Survey on food spending patterns among households overall, SNAP recipients, and other subgroups of interest. We find that a substantial fraction of SNAP-eligible households spend an amount that is above the program’s needs standard. We also show that the relationship between family size and food spending is steeper than the slope of the …

The Shipping Container: So Simple Yet So Powerful, Michael Hemesath

Administration Publications

No abstract provided.

Contingent Valuation Methodology: Evaluation Of Benefits Of Improving Water Quality In The Lake Tai Region, Zongda Tu

Undergraduate Economic Review

Environmental economics is a relatively new field in the subject of economics. While the developing countries are growing and developing rapidly, the conflict between economic development and environmental preservation is becoming more and more irreconcilable. This methodology paper addresses the relationship between the water quality in the Lake Tai Region in China and economic benefits, and presents the contingent valuation methdology (CVM) to evaluate benefits.

Economic Impact Of The Commercial Fisheries On Local County Economies From Catch In All California National Marine Sanctuaries 2010, 2011 And 2012, Vernon R. Leeworthy, Desiree Jerome, Kelsey Schueler

Working Papers

This report estimates the economic impact of commercial fishing within all California National Marine Sanctuaries (CA NMS) according to the California Ocean Fish Harvester Economic Model (COFHE). The methodology applies county multipliers to estimates of harvest revenue from CA NMS in order to calculate output, income, value added and employment. This report also describes a profile of the commercial fish industry in the CA NMS. CA NMS includes all existing National Marine Sanctuary sites in California: Channel Islands (CINMS), Monterey Bay (MBNMS), Cordell Bank (CBNMS) and Gulf of the Farallones (GFNMS).

The three-year average for 2010 to 2012 finds that …

The Road Through The Rust Belt: From Preeminence To Decline To Prosperity, William M. Bowen Editor

Upjohn Press

The chapters in this book explore reasons for the decline of "Rust Belt" cities and the often innovative responses of local leaders and entrepreneurs that are helping to revive these areas.

The Effect Of Crossing The $100 Million Jackpot Threshold On Ticket Sales, Stanton Hudja

Undergraduate Economic Review

There has been little research done on how consumers react to jackpots that first cross the $100 million threshold. Using two sets of time series data, I measure the effect on demand of being the first jackpot in a series of jackpots to cross the $100 million threshold. In both datasets, there is an additional increase in the growth of lottery ticket sales based solely on being the first jackpot to equal or surpass $100 million. These findings are not consistent with the principle of diminishing marginal utility and suggest a psychological significance of the number 100.

Overpaid Presidents And Administrative Bloat?, Michael Hemesath

Administration Publications

No abstract provided.

Urbanization In Pakistan, Ishrat Husain Dr.

Faculty Research - Talks, Speeches, & Discourse

Economic theory suggests that Structural transformation usually takes place when resources are reallocated from low productivity agriculture to high productivity industry and services sectors. Cities and urban areas are the magnets for location of these sectors which benefit from migration of the surplus and underemployed labour. Rapid economic growth is therefore associated with urbanization. The pace of urbanization is, in turn, accelerated with a larger response of migration. Empirical evidence shows that no country has grown to middle income status without industrializing and urbanizing. None has grown to high income without vibrant cities. Between 1980 and 1998, 86 percent of …

Multiple Program Participation And The Snap Program, Robert A. Moffitt

University of Kentucky Center for Poverty Research Discussion Paper Series

Receipt of benefits from other traditional transfer programs by SNAP families is common, with 76 percent of those families receiving at least one other major benefit of that type, excluding Medicaid, in 2008. However, over half of these only received one other benefit and only a very small fraction received more than two others. Over the long-term, multiple benefit receipt among SNAP families has been falling, a result of declines in the TANF caseload offsetting rises in the SSI, SSDI, and WIC caseloads. Finally, the analysis shows that high marginal tax rates generated by multiple program receipt are relevant for …

Measuring The Value Of Plastic And Reusable Grocery Bags, Jarod Dunn, Arthur J. Caplan, Ryan Bosworth

Applied Economics Faculty Publications

Using data from an online survey of grocery store customers in Logan, Utah, we estimate willingness to pay (WTP) for continued use of plastic grocery bags, and willingness to accept (WTA) for switching to reusable grocery bags. We find evidence to suggest that, on average, individuals have a greater aversion to plastic-bag taxes than an affinity for reusable-bag subsidies. All else equal, older and lower-to-middle-income individuals, as well as larger-sized households, are more likely to switch to using reusable bags exclusively when faced with a tax on plastic bags. Lower-to-middle-income individuals, as well as women in general, are more likely …

Marketing Strategy For Unusual Brand Differentiation: Trivial Attribute Effect, M. Deniz Dalman, Junhong Min

College of Business Publications

This research investigates that brand differentiation creating superior values can be achieved not only by adding meaningful attributes but also meaningless attributes, which is called “trivial attribute effect.” Two studies provided empirical evidences as following; first, trivial attribute effect creates a strong brand differentiation even after subjects realize that trivial attribute has no value. Second, trivial attribute effect is more pronounced in hedonic service category compared to the utilitarian category. Last, the amount of willingness to pay is higher when trivial attribute is presented and evaluated in joint evaluation mode than separate evaluation mode. Finally, we conclude with discussion and …

Do Increases In Oil Prices Precede U.S. Recessions?, Thanyalak Suthijindawong

Dissertations, Master's Theses and Master's Reports - Open

This thesis examines the relationship between oil prices and economic activity, and it attempts to address the question: do increases in oil prices (oil shocks) precede U.S. recessions? This paper also applied macroeconomics, either through the direct use of a macroeconomic point of view or using a combination of mathematical and statistical models. Two mathematical and statistical models are used to determine the ability of oil prices to predict recessions in the United States. First, using the binary cyclical (Bry-Boschan method) indicator procedure to test the turning point of oil prices compared with turning points in GDP finds that oil …

Foreign Direct Investment And Total Factor Productivity In The Mining Sector: The Case Of Chile, Prince Stanislas Ilboudo

Economics Honors Papers

This thesis investigates the impact of Foreign Direct Investment (FDI) on the Total Factor Productivity (TFP) in the Mining Sector of Chile. We use the Solow model and developed a Cobb-Douglas production function to estimate total output as a function of labor, capital and productivity. Hence, TFP is the portion of output that is not attributed to labor or capital and it is derived as the Solow ‘residual’. We estimate the capital variable as a function of capital stock corrected for depreciation and utilization rate. We derive the labor variable as a function of hours worked corrected for quality (education …

Dialogues With The Informal City: Latin America And The Caribbean, Ariel C. Armony, Adib Cure, Carie Penabad

Center for Latin American Studies Publications

This publication, based on the symposium Dialogues with the Informal City: Latin America and the Caribbean, connects a range of fundamental themes affecting the current conditions and future of Latin America’s growing informal cities and, by extension, the rising global urban population. Informal cities can be described as settlements frequently characterized by organic physical patterns built incrementally over time as the needs and circumstances of a community change. While undeniably precarious in construction, informal cities exhibit underlying urban and architectural patterns of remarkable resilience; moreover, they reflect their inhabitants’ enduring cultural values. While seriously affected by poverty and violence, …

Crossroads Rhode Island: Proposed Social Enterprise Business Plan, Joel Cooper, Joe Brookes, Darci Lake, Victoria Fernandez, Matt Rosenfield, Arnold Robinson

Business

Crossroads Rhode Island provides their clients with a continuum of care that includes basic emergency needs, shelter, housing, case management and vocational services for individuals and families. In order to provide these services they rely on the generosity of their donors and supporters who have helped Crossroads to become the largest homeless services organization in Rhode Island. It is important to Crossroads that they stick to their core values of safety, respect, and effectiveness when helping the homeless or at-risk individuals and families secure stable homes.