Economics Commons^™

North Borderplex Retail Gasoline Price Fluctuations: 2000-2013, Thomas M. Fullerton Jr., A. A. Jiménez, Adam G. Walke

Border Region Modeling Project

Previous studies show that a variety of different variables influence retail gasoline price fluctuations. In the case of El Paso, Texas, those variables would include wholesale gasoline prices, local economic conditions, weather, and, more uniquely, cross-border economic variables associated with Ciudad Juarez, Chihuahua, in Mexico. To analyze the contributions of these variables to monthly price movements for gasoline in El Paso, a theoretical model is specified. From the latter construct, a reduced form equation is extracted. That specification is then expressed within an error correction framework to allow accounting for both long-run and short-run behaviors in this metropolitan economy. Results …

A Big Data Approach To Optimal Income Taxation Replicating Mirrlees 1971, Kramer Quist, Dr. Richard Evans

Journal of Undergraduate Research

Optimal labor income taxation research has long relied on simplifying assumptions regarding the convexity of policy maker decisions in order to make the associated calculus of variations optimization problem analytically tractable. Furthermore, researchers have assumed that taxable agents have simplistic distributions of ability few degrees of heterogeneity. We developed a model that removes assumptions of convexity, while allowing the taxable agents to have more realistic distributions of wages as well as higher degrees of heterogeneity. In order to show the functionality of our model, we replicate the optimal taxation problem developed in Mirrlees 1971.

Arousal And Economic Decision Making, Salar Jahedi, Cary Deck, Dan Ariely

ESI Working Papers

Previous experiments have found that subjecting participants to cognitive load leads to poorer decision making, consistent with dual-system models of behavior. Rather than taxing the cognitive system, this paper reports the results of an experiment that takes a complementary approach: arousing the emotional system. The results indicate that exposure to arousing visual stimuli as compared to neutral images has a negligible impact on performance in arithmetic tasks, impatience, risk taking in the domain of losses, and snack choice although we find that arousal modestly increases in risk-taking in the gains domain and increases susceptibility to anchoring effects. We find the …

Firms' Decisions To Enter A Market Of Highly Differentiated Products: Apparel Industry And New York Fashion Week, Yoko Katagiri

Dissertations, Theses, and Capstone Projects

This dissertation deals with economic aspects of the fashion industry. It begins with a discussion of the complex industrial organization aspects of the industry. A wealth of information in this area has been assembled and is presented for the first time. The focus is on the high-end fashion market: how it started, how it works, New York Fashion Week, and its significance for the industry. Then a comprehensive review of the economics literature as it pertains to the industry is presented, also for the first time. The empirical sections of the dissertation contain estimates of demand functions for apparel and …

Madison Vanguard: A Novel, Berni Moestafa

Dissertations, Theses, and Capstone Projects

This capstone project takes the form of a popular fiction novel that introduces parts of the academic discussion on capitalism to a wider audience through storytelling. Using a fictional fiscal crisis in New York as its setting, the novel discusses the relationship between capitalism and democracy. It therefore aims to address the underrepresentation of the debate on capitalism in popular entertainment and raise awareness about some of the debate’s key issues.

Popular culture be that music, film, books, media, videogames or advertisement surround our lives and expose us to a plethora of messages that help shape our understanding of the …

Epistemic Considerations On Extensive-Form Games, Cagil Tasdemir

Dissertations, Theses, and Capstone Projects

In this thesis, we study several topics in extensive-form games. First, we consider perfect information games with belief revision with players who are tolerant of each other’s hypothetical errors. We bound the number of hypothetical non-rational moves of a player that will be tolerated by other players without revising the belief on that player’s rationality on future moves, and investigate which games yield the backward induction solution.

Second, we consider players who have no way of assigning probabilities to various possible outcomes, and define players as conservative, moderate and aggressive depending on the way they choose, and show that all …

Quantity Discounts And Capital Misallocation In Vertical Relationships, Ken Onishi

Research Collection School Of Economics

I study transactions between aircraft manufacturers and airlines as well as airlines' utilization of their fleet. Aircraft production is characterized by economies of scale via learning-by-doing, which creates a trade-off between current profit and future competitive advantage in the aircraft market. The latter consideration makes large buyers more attractive than small buyers and induces quantity discounts. The resulting nonlinear pricing strategy may distort both production and allocation in favor of large buyers. In the data, there is a negative correlation between the size of aircraft orders and the per-unit price, and a positive correlation between the price paid and the …

Common Threshold In Quantile Regressions With An Application To Pricing For Reputation, Liangjun Su, Pai Xu, Heng Ju

Research Collection School Of Economics

The paper develops a systematic estimation and inference procedure for quantile regression models where there may exist a common threshold effect across different quantile indices. We first propose a sup-Wald test for the existence of a threshold effect, and then study the asymptotic properties of the estimators in a threshold quantile regression model under the shrinking-threshold-effect framework. We consider several tests for the presence of a common threshold value across different quantile indices and obtain their limiting distributions. We apply our methodology to study the pricing strategy for reputation via the use of a dataset from Taobao.com. In our economic …

Testing For Monotonicity In Unobservables Under Unconfoundedness, Stefan Hoderlein, Liangjun Su, Halbert White, Thomas Tao Yang

Research Collection School Of Economics

Monotonicity in a scalar unobservable is a common assumption when modeling heterogeneity in structural models. Among other things, it allows one to recover the underlying structural function from certain conditional quantiles of observables. Nevertheless, monotonicity is a strong assumption and in some economic applications unlikely to hold, e.g., random coefficient models. Its failure can have substantive adverse consequences, in particular inconsistency of any estimator that is based on it. Having a test for this hypothesis is hence desirable. This paper provides such a test for cross-section data. We show how to exploit an exclusion restriction together with a conditional independence …

Granger Causality And Structural Causality In Cross-Section And Panel Data, Xun Lu, Liangjun Su, Halbert White

Research Collection School Of Economics

Granger non-causality in distribution is fundamentally a probabilistic conditional independence notion that can be applied not only to time series data but also to cross-section and panel data. In this paper, we provide a natural definition of structural causality in cross-section and panel data and forge a direct link between Granger (G-) causality and structural causality under a key conditional exogeneity assumption. To put it simply, when structural effects are well defined and identifiable, G- non-causality follows from structural non-causality, and with suitable conditions (e.g., separability or monotonicity), structural causality also implies G-causality. This justifies using tests of G- non-causality …

Are House Prices Driven By Capital Flows? Evidence From Singapore, Hwee Kwan Chow, Taojun Xie

Research Collection School Of Economics

This paper investigates whether real house price appreciations can be attributed to the surge in real capital inflows into Singapore. We proxy capital flows by using the amount of foreign direct investments (FDI) to real estate capturing the foreign purchases of property in Singapore which we deflate by the private residential property price index. Notwithstanding the absence of a cointegrating relationship, our results support the hypothesis that lagged short term fluctuations in capital inflows are positively associated with the growth rates of house prices over the last decade. We also provide evidence that macroprudential measures implemented by Singapore reduced the …

Is Urban Food Demand In The Philippines Different From China?, Tomoki Fujii

Research Collection School Of Economics

Food is an essential good, and thus understanding its demand is important for the formulation of sound agricultural policies and developing sustainable agricultural business. A timely analysis of food demand is important because it can change over time not only because prices and incomes change but also because people’s taste itself also change. However, even in countries where food accounts for a sizable share of expenditure or where the agricultural sector accounts for a large share of output, careful analysis of food demand is often not readily available. In this study, we analyze the food demand in urban Philippines and …

Constrained Inefficiency And Optimal Taxation With Uninsurable Risks, Piero Gottardi, Atsushi Kajii, Tomoyuki Nakajima

Research Collection School Of Economics

When individuals' labor and capital income are subject to uninsurable idiosyncratic risks, should capital and labor be taxed, and if so how? In a two-period general equilibrium model with production, we derive a decomposition formula of the welfare effects of these taxes into insurance and distribution effects. This allows us to determine how the sign of the optimal taxes on capital and labor depend on the nature of the shocks and the degree of heterogeneity among consumers' income, as well as on the way in which the tax revenue is used to provide lump-sum transfers to consumers. When shocks affect …

Examining The Link Between College Gender Ratios And Assortative Marriage, Bryan Seegmiller, David Sims

Journal of Undergraduate Research

It has been well-documented that the latter half of the 20th century and the early 21st century has seen vast upheavals in the societal roles of males and females in Western society. One noted result of this gender revolution is the striking change in college gender ratios—in the US, for example, the male-to-female college gender ratio changed from 1.6 in 1960 to .74 in 2003 (see also Figure 1). These changes in college gender ratios can have profound impacts on marriage and family patterns seen in society. For example, a recent Time Magazine Article examined the effects of a lowered …

Calpoly 2015 Transportation Survey Report, William Riggs

City and Regional Planning Studios and Projects

In the spring of 2015, City & Regional Planning faculty conducted a campus-wide transportation survey as part of work on the campus Climate Action Plan. The survey represented spring 2014 commutes and was issued to a sample of full and part-time CalPoly faculty, staff, students and auxiliaries with assistance from Facilities Services and the Vice President for Administration and Finance.

The total number of responses was 3,961, roughly 17% of the entire campus population of roughly 23,000. Unsurprisingly, the majority of respondents were students, totaling 68.6%, while the rest were made up of faculty, staff, and visitors. Results are significant …

Barriers To Health Care Access For Cache County Refugees, Michael Hoggard, Julie Gast

Research on Capitol Hill

There are over 300 refugees resettled in Cache County, Utah (figure 2). Despite coming from different cultural and ethnic backgrounds, the Cache County refugee population shares similar circumstances in regards to access to health care:

(a)96% of working adults are employed at the same job
(b)Refugees have access to the same social services
(c)None of the refugee populations speak English as a native language.

The purpose of this study is to understand key physical, structural and cultural barriers that prevent Cache Valley refugees from

(a)Utilizing work-provided health insurance or Medicaid when seeking medical treatment and
(b)Seeking necessary medical procedures.

U.S. Employment Outlook For 2016, Randall W. Eberts

Periodical Articles

No abstract provided.

The Real Footprint Of Electric Vehicles, And What That Could Mean For Our Future, Krista Brown

Journal of Environmental and Resource Economics at Colby

This paper looks at the impact of electric vehicles on CO2 emissions specifically based on the type of electricity used in each New England state analyzed. The research looks at the question of whether or not emissions will in fact be lowered as electric cars start to take the majority of vehicles used instead of the conventional cars that take up a much larger percent of the motor vehicles used today. Taking into account the use of electricity and how many sources of electricity also release a substantial amount of emissions, we see how valid the public opinion of electric …

The Effect Of The Deer Population On The Number Of Car Accidents, Timothy J. Hallock Jr

Journal of Environmental and Resource Economics at Colby

This paper examines the relationship between the deer population and the number of car accidents in New York State from 2002-2012. Data collected includes information on the amount of deer hunted, the number of car accidents, and the number of hunting permits issued. This paper also involves a county level analysis within New York State of 56 counties from 2007 - 2012. An important part of analysis of this paper is the examination of the Buck population vs. the Doe population on the number of car accidents. This is an important study because of its possible policy implications regarding the …

The Effect Of Information On Avoidance Behavior And Bicycle Transportation: A Study Of “Spare The Air” And Bay Area Bikeshare, Paige W. Whistler

Journal of Environmental and Resource Economics at Colby

This paper seeks to address the effect of “Spare the Air” pollution control alerts in the San Francisco Bay Area in California on the use of Bay Area BikeShare as a form of transportation. By observing the daily alerts on the duration of rides using BikeShare, this paper observes if STA ozone alerts are effective in changing human behavior. The results show that only as a subscriber to the BikeShare program and on an alert day does duration decrease whereas customers regardless of if it is an alert day will ride more often and at longer distances. The results contradict …

Socioeconomic Attributes’ Relationship To Green Commercial Office Buildings, Tianyang Zhou

Journal of Environmental and Resource Economics at Colby

This paper examines the relationship between the socioeconomic attributes of a state and its green commercial office space adaptation. I hypothesize that a state with high socioeconomic status will have a high green building adoption. Additionally, the high socioeconomic status states may be more likely to invest in green commercial buildings with higher LEED certification levels, and various types of LEED commericial office projects are affected by the socoeconomic attributes differently.

Who Cares About The Environment? A Study Of Environmental Behavior In Maine, Chandler L. Blake

Journal of Environmental and Resource Economics at Colby

Identifying and targeting environmentally minded people is crucial to making any environmental campaign successful. It allows you to advertise to the people who will be the most helpful and supportive to your cause. The goal of this study is to identify the general demographics of environmentally minded people. To do this I examine voting data through each county in Maine and run a regression to test whether income, education level, and household size have any correlation to how the county votes on environmental issues. I found that the higher a county’s income, the more environmentally friendly their voting. I also …

Analyzing Consumers’ Willingness To Pay For Eco-Labeled Seafood Products In Coastal And Inland Maine Counties, Gaby E. Carpenter

Journal of Environmental and Resource Economics at Colby

Around the world, green labels are used for a wide range of food products, both in grocery stores and restaurants. Often, the price for these labeled products is higher due to higher production costs associated with the goods. This leads to demand for these goods in the market and consumers that are willing to pay. Here, I will examine the willingness to pay for three different eco-labeled seafood dishes at a Maine restaurant using a consumer choice experiment survey. I will use this survey to conduct a benefits transfer analysis to approximate the willingness to pay of consumers in each …

Do Peers Get Punished: Stock Market Effect Of Bp Oil Spill On Peers, Yuga Koda

Journal of Environmental and Resource Economics at Colby

This paper examines the stock market reaction to the British Petroleum oil spill on April 20, 2010. This event study looks at different sectors that may be affected by the oil spill. It finds that different industries do not have significant abnormal returns, with two exceptions. First, utilities companies have a very small positive abnormal return for a short period of time after the incident. Second, when only looking at BP's direct competitors, there is a statistically significant negative abnormal return, implying that BP's competitors are punished for BP's mishap.

Media Effects On Solar Panel Installations Across 20 States, Casey Romeo

Journal of Environmental and Resource Economics at Colby

This paper looks at the relationship between media coverage of solar power and the solar panel installation at a state level. Specifically, it aims to find if more newspaper articles cause more households to adopt solar energy. Use data from 20 states from 2009 to 2014. I find that there is a modest, yet positive and statistically significant relationship between newspaper articles and installations, which suggests that the media does influence the decision to install solar panels. There is possible endogeneity between these two variables. Disentangling this endogeneity is beyond the scope of this research and would be a topic …

Renewable Energy Consumption: Initiatives In Colorado And Washington, Robin K. Doroff

Journal of Environmental and Resource Economics at Colby

This paper examines the use of policy mechanisms to increase renewable energy consumption within the United States. In order to effectively measure the change of renewable energy consumption, I analyze two initiatives that promote energy consumption from renewable sources and overall increases in energy conservation. Colorado and Washington had approved initiatives in the years 2004 and 2006, respectively. Although the results are not entirely statistically significant, I find that the initiatives lead to increases in total renewable energy consumption and decreases in total energy use.

Stock Market Reactions To The Iarc Announcement Linking Red Meat And Processed Meat To Cancer, Scott B. Lehman

Journal of Environmental and Resource Economics at Colby

This study investigates how food companies were affected by the International Agency for Research on Cancer’s report that linked processed meat and red meat consumption to increased risk of cancer. The results indicate that neither fast food companies nor meat producers were greatly affected by the announcement in the days immediately following the release.

Who Wants The Right To Know? An Analysis Of Gmo-Labeling In California, Sylvia M. Xu

Journal of Environmental and Resource Economics at Colby

There are many studies that have been done to examine what types of voting behavior or patterns are present when voting for environmental ballot measures. This paper examines what characteristics of people are likely to cause them to support Proposition 37 in California, an initiative that, if passed, would require GMO-labeling on all genetically modified foods. Using voting data at a zip code level, I use OLS regression to identify specifically what type of political party, education, occupation, household status, and income levels are more likely to support the bill. I also run weighted regressions by population and number of …

Property Value Changes From Public Transportation: How The Greenbush Commuter Line Affected Property Values, Sarah C. Evans

Journal of Environmental and Resource Economics at Colby

Prior studies have investigated the impact on property values to the proximity of established public transportation stations. Public transportation is thought to increase value of towns and properties, giving residents more options for transportation to and around the city. Both benefits and consequences of public transportation exist, allowing for either a raise or lower of property values in towns with stops. This paper analyzes the Greenbush Commuter line in Massachusetts, seeing if the proximity to the stops has an affect on the property of values in the towns. A difference – in – difference model is used to investigate a …

The Effectiveness Of The Colby College Electricity Competition On Promoting Electricity Conservation To Students, Jeff Vaz

Journal of Environmental and Resource Economics at Colby

This paper examines the effectiveness of the Colby College electricity reduction competition in altering students’ behavior to conserve electricity. The Colby College electricity reduction competition is an information-based policy that Colby implemented to promote the conservation of electricity, which are a major contributor to greenhouse gas (GHG) emissions in the United States. The study analyzes if different residence halls reduce electricity consumption by different amounts during the competition period. Results indicate that only 4 of 22 residence halls reduced electricity usage during competition periods in a statistically significant manner. The study concludes that the electricity competition at Colby College is …