Economics Commons^™

Active Vs. Passive Portfolio Management, Timothy Greenhill

Honors Projects in Mathematics

In the finance community there is a huge debate about whether or not active portfolio managers can provide better returns than passive managers. While active managers often provide excess returns, the costs of running an active fund offset whatever gains were made in the market. The objective of this report is to figure out whether or not active funds provide larger returns than passive funds on a cost adjusted basis. This report will identify which type of fund is a more cost effective investment, as well as identify different properties of funds and how they operate. The goal of doing …

Rhode Island Current Conditions Index -- April 2014, Leonard Lardaro

The Rhode Island Current Conditions Index

No abstract provided.

Cover - Table Of Contents

Major Themes in Economics

No abstract provided.

Moving Ahead By Thinking Backwards, Conner Lewis, Amanda Wiener

Undergraduate Research Symposium 2014

Although some research exists regarding collegiate GPAs, little is known about which individual student characteristics predict college graduation. We study 100 students from the University of Minnesota Morris. Information collected includes demographics, standard personality traits (known in Psychology as the “Big Five”), two economic preferences (risk aversion and patience), and three cognitive skills (numeracy, non-verbal IQ, “Hit15”).“Hit 15” is a game played against the computer in which each player must add 1, 2, or 3 on each turn. Winning is exactly hitting fifteen first; players take turns going first and the starting point total varies (game theory calls solving this …

The Role Of Cps Nonresponse On The Level And Trend In Poverty, Charles Hokayem, Christopher R. Bollinger, James P. Ziliak

University of Kentucky Center for Poverty Research Discussion Paper Series

The Current Population Survey Annual Social and Economic Supplement (ASEC) serves as the data source for official income, poverty, and inequality statistics in the United States. There is a concern that the rise in nonresponse to earnings questions could deteriorate data quality and distort estimates of these important metrics. We use a dataset of internal ASEC records matched to Social Security Detailed Earnings Records (DER) to study the impact of earnings nonresponse on estimates of poverty from 1997-2008. Our analysis does not treat the administrative data as the “truth”; instead, we rely on information from both administrative and survey data. …

What Have You Done For Me Lately?, Kevin F. Hallock

Economics Faculty Publications

The author considers the question of whether some occupations or pay plans can create incentives to strategically time employees' best performance and what problems that might create. There certainly is plenty of evidence across a set of industries that the timing of performance can have real effects on the compensation of employees. To the extent that this gives employees (athletes, salespeople, executives, and others) incentives to shift the timing of effort in ways that may not be in the best interests of the employer, shareholders, and other constituents is certainly something worth thinking about if you want to better curb …

The Post-Industrial And The Urban Village: A Study Of Land And Space In Beijing’S Caochangdi Art District, Ke Li

Independent Study Project (ISP) Collection

Arts districts have traditionally been associated with industrial areas that have been reconstructed to fit post-industrial economies. From Tate Modern in the U.K. to 798 in Beijing, abandoned factories have been refitted into cultural clusters. Yet, there is a research gap when concerning arts district in less traditional spaces. This study examines how this framework applies in Beijing’s Caochangdi art district, aiming to understand how place-specific factors influence the development of an arts district and what Western gentrification theory looks like in a Chinese light. During the month of May 2014, I conducted twenty interviews, including nine with members of …

Explaining And Fixing The 'Weak Governance Curse' In Resource-Rich Least Developed Countries, Patrícia G. Ferreira, Landry Signé

Southern African Journal of Policy and Development

There is a resource boom in the least developed countries, including those in Southern Africa. In order to translate their resource wealth into positive development outcomes in the long run, these countries need to have strong domestic governance systems. Yet, governance indicators in resource-rich LDCs have stagnated or deteriorated in the last decades. We use a new institutional analysis with a focus on path dependence theory to argue that these countries are caught in a “weak governance curse”. Besides having inherited dysfunctional governance paths from past critical junctures, rent-seeking behavior associated with resource rents constitutes a major contemporary political economy …

Determinants Of The Exchange Rate And Policy Implications, Catalina Michelle Tejada

Southern African Journal of Policy and Development

No abstract provided.

Review Of Morten Jerven, Poor Numbers: How We Are Misled By African Development Statistics And What To Do About It, Marja Hinfelaar, Caesar Cheelo

Southern African Journal of Policy and Development

No abstract provided.

Improving Asset Price Prediction When All Models Are False, Garland Durham, John Geweke

Finance

This study considers three alternative sources of information about volatility potentially useful in predicting daily asset returns: daily returns, intraday returns, and option prices. For each source of information the study begins with several alternative models, and then works from the premise that all of these models are false to construct a single improved predictive distribution for daily S&P 500 index returns. The prediction probabilities of the optimal pool exceed those of the conventional models by as much as 5.29%. The optimal pools place substantial weight on models using each of the three sources of information about volatility.

Ce Spring 2014, Coyote Economist

Coyote Economist

Inside this Issue:

We’re on Facebook ................2

Staying Informed ..................4

Economics Honor Society ......5

Fall Schedule ...........................5

Winter & Spring Schedules ....6

Introduction, Ken Mccormick

Major Themes in Economics

No abstract provided.

Environmental Impacts Of The Battery Cage Industry Depicted Through Sculpture, Amber Kraus

Independent Study Project (ISP) Collection

As the planet’s population increases, so does the demand for mass-produced food products. The result of the increase in demand has been the rapid development of the factory farming industry. A prominent component of the factory farmed by-product industry is the battery cage egg-farming scheme, which has cultivated immense amounts of ecological damage to the hens and environment involved. The damage studied includes: air and water pollution, deforestation, biodiversity loss, and fossil fuel use. The environmental damage is prevalent throughout the Australian state of New South Wales, and the public must be informed.

The visual arts were utilized as the …

Analyzing The Dynamics Of The Artisan Fishing Industry And Lapsset Port In Lamu, Kenya, Valerie Rodden

Independent Study Project (ISP) Collection

The LAPSSET project has the potential to severely impact the artisan fishing industry in Lamu. Through the provision of a perception focused survey and a few one on one interviews with artisan fishermen and key stakeholders in the industry, this study creates a more comprehensive understanding of the relationship between the fishing industry and the LAPSSET project. The fishermen of Lamu are most concerned about the lack of communication concerning the port’s activities and the blocking of fishing areas during port construction and operation. In general, there is a great sense of fear surrounding the port and the future of …

Population, Progeny And Power: Analyzing Population Growth, Family Planning And The Factors That Contribute To High Child Bearing Rates In Kizanda Village, Tanzania, Jade Enright

Independent Study Project (ISP) Collection

The population growth rate is reaching an astounding level in Tanzania and Eastern Africa. It is applying increasing pressure on things like social services, land availability, job opportunities, conservation and localized resources. This study looks at the perceptions of both men and women surrounding social and environmental factors contributing to the high population growth rate. It looks more specifically at factors including childbearing, birth control methods and their effectiveness, and how the birth rate correlates with changing quality of life. This study was conducted in Kizanda Village in the West Usambara Mountains of Northern Tanzania, a region following the trend …

Powering Rural Transformation: Solar Pv In Rural Uganda., Matt Piggins

Independent Study Project (ISP) Collection

The intent of this study was to understand the role that solar PV plays in the process of rural electrification, what barriers exist in the PV market, and how the Rural Electrification Agency is bringing down those barriers. Moreover, I sought to understand solar PV’s development impact in rural areas and how people in rural regions of Uganda are using the technology, especially those at the bottom of the economic pyramid. Additionally, I sought to understand if PV is a financially viable option for the rural poor or if it is only obtainable by the rural upper and middle class. …

Not Just A Formality: How Inefficient Bureaucracy And Government Distrust Fuel Nepal’S Informal Economy, Anders Karl Lindgren

Independent Study Project (ISP) Collection

Currently the Nepali government and the International Labour Organization (ILO) are involved in a campaign to increase rates of government registration among small businesses, which are technically illegal to operate unregistered. The program incentivizes and facilitates registration, attempting to change the cost-benefit analysis that shopkeepers make when deciding whether to register. Using interviews with small business owners in the Kathmandu area, this study provides qualitative data about what information these shopkeepers have, how they perceive the registration process, whether the government has traditionally followed through on its promises, and how all of these factors affect their registration cost-benefit analyses. Additionally, …

Cultivating Rice In Import Dependent Cameroon: A Case Study Of The Successes And Challenges Facing Rice Farmers In Santchou, Cameroon, Kim Horwitz

Independent Study Project (ISP) Collection

Cameroon is qualified as an import dependent country, meaning it relies on imported food to feed its population. Specifically, Cameroon imports over 80% of its rice consumption, spending 145 billion French CFA on rice imports yearly. But, Cameroon has sufficient untapped arable land and a large enough agriculturally centered population to produce adequate rice quantities to meet demand without relying on imports. This paper examines the challenges facing rice farmers in Cameroon in the context of import dependence and why local farmers cannot currently produce enough rice to meet local demand, focusing on the experience of the rice farming community …

Tabasará Libre: A Case Study Of Development And Indigenous Rights, Katharine Evans

Independent Study Project (ISP) Collection

Since the 1960s, indigenous groups in Panama have been fighting to maintain their land and ways of life against the growing threat and reality of national development. This study uses the Barro Blanco Hydroelectric Power Project as a case study to examine the consequences of development and the ultimate role that development plays in indigenous marginalization and assimilation. Data was collected through interview, participatory observation, and outside research over the course of a three week period. Findings include the role the government, legislation, and the public have played in this fight.

The Impact Of European Elections On Their Stock Markets, Andrew Lafortune

Honors Projects in Finance

This paper seeks to provide insight on changes in the European political landscape and how these changes may affect the financial markets in Europe. By analyzing market trends in eight different European countries—Belgium, Austria, France, Germany, Netherlands, Great Britain, Switzerland and Greece—since 1990, this paper attempts to identify any significant relationships between the results of an election and the performances of the major stock indices of these countries. By comparing country index returns starting one hundred days before and ending one hundred days after each election date to a global index, this paper explores the amount of risk in each …

Beyond Income: What Else Predicts Very Low Food Security Among Children?, Patricia M. Anderson, Kristin F. Butcher, Hilary W. Hoynes, Diane Whitmore Schanzenbach

University of Kentucky Center for Poverty Research Discussion Paper Series

We examine characteristics and correlates of households in the United States that are most likely to have children at risk of inadequate nutrition – those that report very low food security (VLFS) among their children. Using 11 years of the Current Population Survey, plus data from the National Health and Nutrition Examination Survey and American Time Use Survey, we describe these households in great detail with the goal of trying to understand how these households differ from households without such severe food insecurity. While household income certainly plays an important role in determining VLFS among children, we find that even …

Window To The Unbanked: The Potential Of Mobile Money As A Means Of Saving In Uganda, Allison Ryder

Independent Study Project (ISP) Collection

The meaning of poverty is more than just merely the shortage of money. It is the lack of access to the instruments and means through which the poor could improve their lives. Many people lack appropriate means to manage their finances, which limits their economic potential and renders them vulnerable to exogenous shocks. Increasing financial inclusion to those without access contributes to poverty reduction by providing people with means to manage their finances. This study was conducted through a month long internship at the Bank of Uganda following with a short trip to Gulu, northern Uganda. The objective of this …

The Economics Of Suicide: An Empirical Study, Andrea J. Bergeron

Honors Projects in Economics

This study uses economic theory to investigate the impact of socioeconomic factors on the

suicide rate in the United States. Using a utility maximization framework based on

Hamermesh and Soss’ 1974 model, a panel data set from 2000-2010 is constructed for the 50

states and District of Columbia. This research adds to the literature in the field by focusing on

the more recent past and providing additional variables consistent with today’s challenges.

The results from the multiple regression analysis can be used to advocate policies that may

reduce the suicide rate in the future.

Capital Markets For Community Development Lenders: Q & A., Michael E. Swack

Economics

No abstract provided.

Banking Sector Reform In Ethiopia, Admassu Bezabeh, Asayehgn Desta

Collected Faculty Scholarship

The fragile and inefficient state-dominated banking sector that existed in Ethiopia during the military government (1974-1991) was a major hindrance to economic growth. Since it took power in 1991, the current government has implemented a number of reforms. For instance, in 1994, the government legalized domestic private investment in the banking industry. In addition, it restructured the two development banks as commercial banks, and introduced a new Banking and Monetary Proclamation that gave more autonomy and further clarified the National Bank of Ethiopia’s activities as the regulator and supervisor of the banking sector. Although these measures have led to marginal …

Arizona's Vulnerable Populations, Jonathan G.S. Koppell, Warren Prostollo, Jay Kittle, Arlan Colton, Kim Demarchi, Darryl Dobras, Susan Goldsmith, Billie Fidlin, Jim Holoway, Tara Jackson, Rita Maguire, Elizabeth Mcnamee, Patrick Mcwhortor, Ray Newton, Pat Norris, Steve Pedigo, Scott Rhodes, Fred Rosenfed, Chad Sampson, David Snider, Bob Strain, Marissa Theisen, Devan Wastchak, Terri Wogan, Larry Woods, Antonia Adams-Clement, Nina Babich, Andrea Banks, Eric Bjorklund, Luke Black, Luis De La Cruz-Parra, Richard Fabes, Felicia Ganther, Joseph Garcia, Maria Harper-Marinick, Kevin Hengehold, Lane Kenworthy, Julie Knapp, Kelly Mcgowan, Ray Ostos, Kathleen Perales, Suzanne Pfister, Michael S. Shafer, Julia Grace Smith, Ed Strong, Cynthia Zwick

Publications from President Jonathan G.S. Koppell

Arizona’s vulnerable populations are struggling on a daily basis but usually do so in silence, undetected by traditional radar and rankings, often unaware themselves of their high risk for being pushed or pulled into a full crisis. Ineligible for financial assistance under strict eligibility guidelines, they don’t qualify as poor because vulnerable populations are not yet in full crisis. To be clear, this report is not about the “poor,” at least not in the limited sense of the word. It is about our underemployed wage earners, our single-parent households, our deployed or returning military members, our under-educated and unskilled workforce, …

Issue Brief: Asset Management For Stormwater, New England Environmental Finance Center, Sustainable Communities Learning Network

Sustainable Communities Capacity Building

Asset management is a strategic approach to maintaining and sustaining infrastructure in order to meet the needs of the community at the lowest overall life cycle cost. This approach helps communities know how and where to prioritize limited funds in order to achieve the greatest benefit. Often applied to drinking water and wastewater infrastructure, this method is well suited to managing any assets, including stormwater systems.

This issue brief is intended to introduce local governments to the asset management process and to show how it can be applied in managing stormwater assets. It was adapted from an appendix written by …

Mexico Consensus Economic Forecast, Volume 17, Number 2, Thomas M. Fullerton Jr., Adam G. Walke

Departmental Papers (E & F)

No abstract provided.

Design And Use Of Rubrics In Undergraduate Economics Courses, Sebastien Buttet, Veronika Dolar

Publications and Research

The purpose of this paper is threefold; first we explain how rubrics can be used in undergraduate economics courses not only as an assessment tool, but also as an effective teaching and learning tool. Next, we show how to design a rubric, using a simple production possibilities frontier (PPF) example with a four-step method that can be applied to any short- answer assignment or exam question. Finally, we provide three additional examples of short- answer questions with accompanying answers and rubrics that instructors can study and use, in order to develop and improve their own rubric-writing skills.