Economics Commons^™

Creating Knowledge, Volume 9, 2016

Creating Knowledge

Dear Students, Colleagues, Alumni and Friends,

Throughout my career as faculty and administrator in higher education I have been honored with the opportunity to introduce and celebrate the publication of scholarly work by colleagues and graduate students in many disciplines and institutions around the world. After more than three decades of doing so, this is the first time that I have the pleasure of introducing a formal publication of work created by a talented group of undergraduate scholars. This honor is further magnified by the fact that beyond its formal format, this is a reviewed publication of extraordinary rigor and …

Open Questions In Open Source: Exploring Incentives, Licensing And Competition, Vidya Atal, Kameshwari Shankar

Department of Economics Faculty Scholarship and Creative Works

Open Source Software (OSS) has grown in importance over the last few decades and now constitutes an important part of the software market particularly in mobile and web technology. In this paper, we provide a preliminary theoretical framework for analyzing currently unexamined issues regarding developer participation in OSS and competition between open source and proprietary software. We start by looking at the upstream market where developers voluntarily contribute effort into the development of OSS without claiming any copyright for their contributions. We explore the relationship between open source licensing and developers' effort provision and suggest an empirical test of developer …

Did Large Institutional Investors Flock Into The Technology Herd? An Empirical Investigation Using A Vector Markov-Switching Model, Aram Balagyozyan, Esin Cakan

Economics & Business Analytics Faculty Publications

This article investigates whether large non-bank institutional investors herded during the dot-com bubble of the 1990s. We use the vector Markov-switching model of Hamilton and Lin (1996) to analyse the technology stockholdings of 115 large institutional investors from 1980 to 2012. By imposing different restrictions on the elements of the transition probability matrix, we are able to test for various lead/lag scenarios that might have existed between the technology stockholding of each investor and that of the residual market. We find that only 17.4% of the investors in our sample herded during the dot-com bubble. Thus, during the dot-com bubble, …

The Developmental Effect Of State Alcohol Prohibitions At The Turn Of The 20th Century, Mary F. Evans, Eric Helland, Jonathan Klick, Ashwin Patel

CMC Faculty Publications and Research

We examine the quasi-randomization of alcohol consumption created by state-level alcohol prohibition laws passed in the United States in the early part of the twentieth century. Using a large dataset of World War II enlistees, we exploit the differential timing of these laws to examine their effects on adult educational attainment, obesity, and height. We find statistically significant effects for education and obesity that do not appear to be the result of pre-existing trends. Our findings add to the growing body of economic studies that examine the long-run impacts of in utero and childhood environmental conditions.

Impact Of Pension System Structure On International Financial Capital Allocation, Olena M. Staveley-O'Carroll, James Stavely-O'Carroll

Economics Department Working Papers

Government pension systems vary widely from country to country. Evidence from a cross-section of 110 countries indicates that structural differences in public pension programs are related to reallocation of financial capital around the world. More specifically, we find that greater amounts of pension spending are associated with overall net international indebtedness and a net portfolio characterized by equity assets and debt liabilities. We present a two-country overlapping-generations model that can replicate these empirical regularities and elucidate the link between the structure of pension benefits and the resulting portfolio choices of economic agents. In the country with state-guaranteed pension benefits, workers …

Impact Of A Higher Minimum Wage On Enrollment Of Snap, Victoria Perez-Zetune

Gettysburg Economic Review

This paper investigates the effect that minimum wage policy has on enrollment in public assistance programs, specifically the Supplemental Nutritional Assistance Program, SNAP. If raising the minimum wage decreases enrollment in SNAP, this could uncover a method to reduce spending without eliminating programs. Using a time-demeaned model to account for fixed effects, I take advantage of the variation in the minimum wage in the 50 states between 1998 and 2014. I estimated that on average an increase in minimum wage in a prior year results in a decrease in SNAP participation by 3.95%.

A Qualitative Analysis Of Service Delivery Of Potable Water Through Cooperatives: The Case Of Talaga Barangay Water Service Cooperative, Philippines, Arminga B. Oeria

Journal of Economics, Management and Agricultural Development

This paper aims to demonstrate the important role of cooperatives in the provision and delivery of potable water to a community of households based on evidence from a case study of Talaga Barangay Water Service Cooperative (TBWSC) in Tanauan, Batangas. TBWSC is a water service type of cooperative that successfully provides its members with access to potable water. The case shows how social capital works in addressing a common need. Particularly, it presents the collaborative partnership between the government and the cooperative in implementing a waterworks project. The factors contributing to the success of water service delivery are the felt …

Causal Relationship Between Terrorism And Economic Indicators, Jenna Labarre

Empirical Economic Bulletin, An Undergraduate Journal

This study aims to understand the causal linkage between terrorism and various economic indicators such as Gross Domestic Product, Tourism, and Foreign Direct Investment by running a Granger Causality regression. The expected results will show that terrorism does indeed decrease or increase as a result of changes in these economic indicators. In order to test for Granger Causality a unit-root test will first be performed, followed by a cointegration test. The results show that each nation experiences a different causal relationship with each of these indicators. Inflation is the most significant causal indicators in terms of percentage of countries tested …

Werner Sichel Lecture Series History 1963-2016, Department Of Economics

Werner Sichel Lecture Series

Overview of the Werner Sichel Lecture Series Speakers from 1963-2016.

2016-1 Ageing And The Skill Portfolio: Evidence From Job Based Skill Measures, Audra J. Bowlus, Hiroaki Mori, Chris Robinson

Centre for Human Capital and Productivity. CHCP Working Papers

No abstract provided.

2016-4 Demand And Supply Effects And Returns To College Education - Evidence From A Natural Experiment With Engineers In Denmark, Hans-Peter Y. Qvist, Anders Holm, Martin D. Munk

Centre for Human Capital and Productivity. CHCP Working Papers

No abstract provided.

2016-3 The Effect Of Education And School Quality On Female Crime, Javier Cano-Urbina, Lance Lochner

Centre for Human Capital and Productivity. CHCP Working Papers

No abstract provided.

2016-2 Occupational Choice, Human Capital, And Financial Constraints, Rui Castro, Pavel Ševčík

Centre for Human Capital and Productivity. CHCP Working Papers

No abstract provided.

2016-6 Managing Risk Taking With Interest Rate Policy And Macroprudential Regulations, Simona E. Cociuba, Malik Shukayev, Alexander Ueberfeldt

Department of Economics Research Reports

No abstract provided.

2016-5 The Category Of Node-And-Choice Forms For Extensive-Form Games, Peter A. Streufert

Department of Economics Research Reports

No abstract provided.

2016-4 Economic Ideas, The Monetary Order And The Uneasy Case For Policy Rules, David Laidler

Department of Economics Research Reports

No abstract provided.

2016-3 Random Categorization And Bounded Rationality, Victor H. Aguiar

Department of Economics Research Reports

No abstract provided.

2016-2 The Category Of Node-And-Choice Preforms For Extensive-Form Games, Peter A. Streufert

Department of Economics Research Reports

No abstract provided.

2016-1 The Gini Coefficient And Personal Inequality Measurement, James B. Davies

Department of Economics Research Reports

No abstract provided.

Robust Determinants Of Intergenerational Mobility In The Land Of Opportunity, Andros Kourtellos, Christa Marr, Chih Ming Tan

Economics & Finance Faculty Publications

This paper revisits the influential work by Chetty, Hendren, Kline, and Saez (2014) who attempt to explain the variation in intergenerational mobility across commuter zones in the US (i.e., spatial mobility) using nine classes of variables. We employ Bayesian model averaging methods that allow for model uncertainty to identify robust predictors of spatial mobility. In doing so we pay special attention to the specification of model and parameter priors. We also investigate the heterogeneous effects of these predictors on spatial mobility across commuter zones in different average income quintiles. Our findings suggest a more nuance and complex characterization of the …

No. 73: Informal Entrepreneurship And Cross-Border Trade In Maputo, Mozambique, Inês Raimundo, Abel Chikanda

Southern African Migration Programme

Cross-border trading is an essential part of Mozambique’s informal economy, with the traders playing a key role in supplying commodities that are in scarce supply nationwide. This report presents the results of a SAMP survey of informal entrepreneurs connected to cross-border trade between Johannesburg and Maputo. The study sought to enhance the evidence base on the links between migration and informal entrepreneurship in Southern African cities and to examine the implications for municipal, national and regional policy. In Mozambique, cross-border trading is primarily done by women with men mainly involved in the sale of the products brought back from South …

No. 72: Food Remittances: Migration And Food Security In Africa, Jonathan Crush, Mary Caesar

Southern African Migration Programme

By drawing attention to the importance of food remittances for urban and rural food security and identifying the current knowledge gaps, this report contributes to the study of the relationship between migration and food security and creates a platform for the design of a new research agenda. Across Africa, there is considerable evidence of a massive informal trade in food, including staples, fresh and processed products. While most cross-border trade in foodstuffs is a result of commercial transactions by small-scale traders who buy in one country and sell in another, an unknown proportion is actually food remittances on their way …

No. 71: International Migrants In Johannesburg’S Informal Economy, Sally Pederby

Southern African Migration Programme

This report provides a rich view of the activities of migrant entrepreneurs in the informal economy of Johannesburg. It is hoped that the information will facilitate understanding of the informal sector and its potential, and not just in the context of migrant entrepreneurs. The informal economy plays a significant role in the entrepreneurial landscape of the City of Johannesburg and is patronized by most of the city’s residents. The research presented here challenges commonly held opinions about migrant entrepreneurs in the City of Johannesburg and shows that they do not dominate the informal economy, which remains largely in the hands …

Gender In Jeopardy!: The Role Of Opponent Gender In High-Stakes Competition, Michael Jetter, Jay K. Walker

Economics Faculty Publications

Using 4,279 episodes of the popular US game show Jeopardy!, we analyze whether the opponents' gender is able to explain the gender gap in competitive behavior. Our findings indicate that gender differences disappear when women compete against men. This result is surprising, but emerges with remarkable consistency for the probability to (i) respond, (ii) respond correctly, and (iii) respond correctly in high-stakes situations. Even risk preferences in wagering decisions, where gender differences are especially pronounced, do not differ across gender once a woman competes against males. Using a fixed-effects framework, and therefore exploiting within-player …

Essays In Health Economics, Nayan Krishna Joshi

Wayne State University Dissertations

My dissertation consists of three essays in health economics. In the first essay, I use the matched data set constructed from the Consumer Expenditure Survey and the Survey of Consumer Finances for period 1989-2010 to investigate the impacts of housing and financial wealth on healthcare spending. The results indicate significant housing and financial wealth effects and relatively large housing wealth effects for the pooled sample. Results for each survey years of the Survey of Consumer Finances further suggest that housing wealth effects are significant for all years and relatively large, but financial wealth effects are insignificant in most cases. Analysis …

Govt 301 - Ancient Political And Economic Ideas (2015), Steven Samson

Faculty Publications and Presentations

Political and economic thought of pagan antiquity, contrasting the ideas of Greece and Rome with religious precepts. The political and economic organization of European feudalism will also be examined.

Part 5: Broadband In Virginia: Vital For Economic Development, Center For Economic Analysis And Policy, Old Dominion University

State of the Commonwealth Reports

Up to 70 percent of the world’s internet traffic flows through Northern Virginia, but some areas of the Commonwealth still do not enjoy broadband internet connections. Robust broadband access now is as important as roads, bridges and airports in terms of economic development and population growth.

Part 3: The Hotel Industry In The Commonwealth, Center For Economic Analysis And Policy, Old Dominion University

State of the Commonwealth Reports

Over the past quarter-century, the hotel industry has become a relatively less important part of the Virginia economy. Occupancy rates have yet to recover to prerecession levels and price-adjusted hotel revenue and revenue per available room in 2015 similarly were below their previous peaks.

Part 4: Will Robots Take Your Job? A Look At Virginia's Opportunities And Vulnerabilities, Center For Economic Analysis And Policy, Old Dominion University

State of the Commonwealth Reports

A recent study found that 47 percent of all current jobs are susceptible to loss because of automation and the use of artificial intelligence. The key to a worker’s job vulnerability relates primarily to whether that worker is engaged in repetitive work that can be replicated by a machine or software using artificial intelligence.

Part 6: Stock Car Racing In Virginia: The Sport And The Business, Center For Economic Analysis And Policy, Old Dominion University

State of the Commonwealth Reports

In addition to its nationally prominent Bristol Motor Speedway and Richmond International Speedway, the Commonwealth hosts nine other racetracks, five dirt tracks and eight drag racing strips. While still a very important economic phenomenon, attendance and revenue data suggest that stock car racing has passed its peak of popularity.