Economics Commons^™

Structural Inference From Reduced Forms With Many Instruments, Peter C. B. Phillips, Wayne Yuan Gao

Research Collection School Of Economics

This paper develops exact finite sample and asymptotic distributions for structural equation tests based on partially restricted reduced form estimates. Particular attention is given to models with large numbers of instruments, wherein the use of partially restricted reduced form estimates is shown to be especially advantageous in statistical testing even in cases of uniformly weak instruments. Comparisons are made with methods based on unrestricted reduced forms, and numerical computations showing finite sample performance of the tests are reported. Some new results are obtained on inequalities between noncentral chi-squared distributions with different degrees of freedom that assist in analytic power comparisons.

Favorite-Longshot Bias In Pari-Mutuel Betting: An Evolutionary Explanation, Atsushi Kajii, Takahiro Watanabe

Research Collection School Of Economics

Favorite-longshot bias (FLB) refers to an observed tendency whereby “longshots” are overvalued and favorites are undervalued. We offer an evolutionary explanation for FLB in pari-mutuel betting using a simple market model. A bettor is forced to quit with some probability if his total net gain in one day is negative. Because of a positive track take, the expected returns of any strategy are negative, and so every agent must eventually lose and disappear in the long run. Those who favor longshots have a better chance of getting ahead with rare but large gains, enabling them to survive for longer than …

On The Relationship Between Household Wealth And Entrepreneurship, Jungho Lee

Research Collection School Of Economics

Motivated by a substantial number of startup owners with negative household net worth, I present a model that incorporates credit borrowing into Evans and Jovanovic [1989]. The estimated model generates no relationship between household wealth and the propensity for business entry. Ignoring credit borrowing for potential business owners substantially overstates the efficiency loss from financial constraints in business entry. However, the efficiency loss in investments by the entrants is large even if credit borrowing is allowed. Individuals who start a business once credit borrowing is available are those whose business ideas are of a high-enough quality to compensate high financing …

How To Enhance Interdisciplinary Competence—Interdisciplinary Problem-Based Learning Versus Interdisciplinary Project-Based Learning, Mirjam Brassler, Jan Dettmers

Interdisciplinary Journal of Problem-Based Learning

Interdisciplinary competence is important in academia for both employability and sustainable development. However, to date, there are no specific interdisciplinary education models and, naturally, no empirical studies to assess them. Since problem-based learning (PBL) and project-based learning (PjBL) are learning approaches that emphasize students’ collaboration, both pedagogies seem suitable to enhance students’ interdisciplinary competence. Based on the principle of constructive alignment and four instructional principles on interdisciplinary learning, this paper proposes that students profit more from interdisciplinary PBL (iPBL) than interdisciplinary PjBL (iPjBL). A pre-post study was conducted with a sample of 95 students participating in iPBL and 183 students …

The Effect Of Superstar Players On Game Attendance: Evidence From The Nba, Brad R. Humphreys, Candon Johnson

Economics Faculty Working Papers Series

Economic models predict that \superstar" players generate externalities that increase attendance and other revenue sources beyond their individual contributions to team success. We investigate the effect of superstar players on individual game attendance at National Basketball Association games from 1981/82 through 2013/14. Regression models control for censoring due to sellouts, quality of teams, unobservable team/season heterogeneity, and expected game outcomes. The results show higher home and away attendance associated with superstar players. Michael Jordan generated the largest superstar attendance externality, generating an additional 5,021/5,631 fans at home/away games.

Charges For Water And Access: What Explains The Differences In West Virginia Municipalities?, Elham Erfanian, Alan R. Collins

Regional Research Institute Working Papers

Applying linear and log-log functional forms plus spatial econometric analyses to a dataset of 125 municipal water utilities, we investigate the determinants of charges for water use and minimum monthly access to water across West Virginia municipalities in 2014. Water charges models are consistent with the theory of water cost determination as water source, debt, and economies of size plus scale influence what household consumers pay for water. Based on model results, groundwater use by utilities lowers water charges and is estimated to save household customers in West Virginia over $3.6 million annually. West Virginia households typically pay far below …

Sandwiches, Social Capital And Barriers To Mobility, Michael Hemesath

Administration Publications

No abstract provided.

The Relative Value Of Aer P&P Economic Education Papers, J. R. Clark, Joshua C. Hall, Ashley S. Harrison

Economics Faculty Working Papers Series

The CEE had been allocated one session in the AER Papers and Proceedings (P&P) since 1964. In 2008, the American Economic Association evaluated the allocation of AER Papers and Proceedings sessions to various AEA Commit- tees. In response, the CEE was asked to prepare a one-page rationale for keeping that session. Their response (Committee on Economic Education, 2008) made several important defenses of the session, including that the quality of the papers published in these sessions must speak for itself. In this paper, we propose to evaluate the relative quality of AER P&P papers through citation analysis. Using the Social …

Nebraska Monthly Economic Indicators: July 26, 2017, Eric Thompson

Leading Economic Indicator Reports

The Leading Economic Indicator – Nebraska (LEI-N) 1 rose by 2.75% during June of 2017. The rapid increase in the LEI-N indicates that the Nebraska economy will grow quickly at the end of 2017. All components of the indicator rose during June. Business expectations were strong while the value of the U.S. dollar fell, a positive sign for Nebraska’s export-oriented businesses. There also was a sharp increase in building permits for single-family homes during the month.

Economic Shocks And Crime: Evidence From The Brazilian Trade Liberalization, Rafael Dix-Carneiro, Rodrigo R. Soares, Gabriel Ulyssea

Upjohn Institute Working Papers

This paper studies the effect of changes in economic conditions on crime. We exploit the 1990s trade liberalization in Brazil as a natural experiment generating exogenous shocks to local economies. We document that regions exposed to larger tariff reductions experienced a temporary increase in crime following liberalization. Next, we investigate through what channels the trade-induced economic shocks may have affected crime. We show that the shocks had significant effects on potential determinants of crime, such as labor market conditions, public goods provision, and income inequality. We propose a novel framework exploiting the distinct dynamic responses of these variables to obtain …

Jan-Werner Müller, What Is Populism? (2016), Özgür Gökmen

Markets, Globalization & Development Review

No abstract provided.

Turkey At A Crossroads: The Political Economy Of Turkey’S Transformation, Turan Subaşat

Markets, Globalization & Development Review

Economics and politics are inextricably linked in all countries. This is particularly true for Turkey, which is at a crossroads where politics overwhelmingly dominates economics. An accurate understanding of the way in which the Turkish economy integrates into the global markets, therefore, will not be possible unless the broader political context is understood. This paper argues that Turkey is geared up for a regime change, which is likely to be more authoritarian and less secular. It first emphasizes the Islamist-oriented Justice and Development Party’s (AKP) radical policy discrepancies, which appear as inconsistencies at first glance but in effect complement each …

The Paramountcy Of Context: Introduction To Special Issue On Popular Culture And Markets In Turkey, Güliz Ger

Markets, Globalization & Development Review

No abstract provided.

Lessons From The Five Data Breaches: Analyzing Framed Crisis Response Strategies And Crisis Severity, Bokyung Kim, Kristine Johnson, Sun-Young Park

College of Communication & Creative Arts Departmental Research

To fill a gap of research that explores cyber crisis management, this study analyzed news stories of the five largest data breaches experienced in 2014 by retailers (i.e. Target, Michaels, Neiman Marcus, Home Depot, and Staples). Corporate crisis communication and its news coverage (n = 64) were evaluated for crisis communication strategies and framed situational factors. Despite companies’ use of multiple strategies, newspapers reported their use of advocate strategies more often. Massmediated crisis response strategies were even different among the five companies. Newspapers also reframed crisis severity and crisis controllability. Finally, our findings addressed the key to dealing with the …

A House Of Cards: Free Banking In Antebellum Chicago, Miles J. Holtzman

Business and Economics Summer Fellows

The Chicago free banking market of the antebellum period has more than once aroused the interest of historians and economists alike. Implemented in the state of Illinois in 1851, free banking was a common, though not universal occurrence in the United States at the time. The city of Chicago’s experience with free banking was anything but common, however. Within the first 18 months after the Illinois legislature enacted the Illinois Free Banking Law, 9 free banks had begun operation in Chicago and between them had an aggregate note issue of over $800,000. But by 1860, Chicago was home to but …

Corporate Income Taxes And Labor: An Investigation Of Empirical Evidence, Andrew R. Hanson, Ike Brannon

Economics Faculty Research and Publications

With the highest top marginal corporate tax rate among OECD nations and the third-highest in the world at 35 percent, it is not surprising that policymakers have long evinced a desire to lower the U.S. federal corporate income tax rate. Reducing the corporate income tax rate has implications for a wide-range of outcomes – from federal revenues to foreign direct investment, but the effects of such a change on workers is less understood. This paper examines the empirical literature on the effect of corporate income taxes on labor, specifically on employment and worker incomes. In general, empirical work with the …

Economic Impact Of World Bank Aviation Investment In Pacific Island Countries, Cindy Greenman, Javad Gorjidooz

Publications

The World Bank Group (WBG) has provided grant and credits to support projects related to aviation and air transport including capacity building, policy and regulation, safety and security, infrastructure rehabilitation, and institutional strengthening for over 60 years. Today, the WBG remains actively engaged on aviation related project in every region of the world including the Pacific Island Countries. The purpose of this paper is to investigate the economic impact of WBG investments in aviation infrastructures in Pacific Island Countries. The preliminary results of this study show a serious deficiency in the areas of aviation infrastructure, safety and security, management efficiency, …

Socioeconomic Status, Air Quality And Geographic Variation In Emergency Room Visits For Acute Bronchitis On The California Central Coast, Sean Lang-Brown, Heather W. Starnes, Gary B. Hughes

Symposium

IMPORTANCE: Analysis of geospatial variation in acute bronchitis due to socioeconomic and environmental factors can allow the efficient delivery of resources to populations most at risk.

OBJECTIVE: We sought to determine if small scale variation in socioeconomic factors and emergency room (ER) visits for acute bronchitis are associated in small cities or rural communities. We also modeled the effects of air quality on daily rates of ER visits for acute bronchitis in the context of socioeconomic factors to investigate modifying relationships.

DESIGN, SETTING, AND PARTICIPANTS: We examined ER visits for acute bronchitis in San Luis Obispo and Santa Barbara counties …

Immigration And Demographics: Can High Immigrant Fertility Explain Voter Support For Immigration?, Henning Bohn, Armando R. Lopez-Velasco

School of Economics and Finance Faculty Publications

First generation immigrants to the United States have higher fertility rates than natives. This paper analyzes to what extent this factor provides political support for immigration, using an overlapping generation model with production and capital accumulation. In this setting, immigration represents a dynamic trade-off for native workers as more immigrants decrease current wages but increase the future return on their savings. We find that immigrant fertility has surprisingly strong effects on voter incentives, especially when there is persistence in the political process. If fertility rates are sufficiently high, native workers support immigration. Persistence, either due to inertia induced by frictions …

Sustainability At Saint John’S*, Michael Hemesath

Administration Publications

No abstract provided.

Un Nouveau Miracle Économique Ivoirien?, Vincent Hiribarren, Abou B. Bamba

History Faculty Publications

Questions à Abou Bamba, associate professor d’Histoire et d’Etudes Africaines à Gettysburg College (Etats-Unis). Il est l’auteur de African Miracle, African Mirage: Transnational Politics and the Paradox of Modernization in Ivory Coast (Ohio University Press, 2016).

Equilibrium Play In Voluntary Ultimatum Games: Beneficence Cannot Be Extorted, Vernon L. Smith, Bart J. Wilson

ESI Working Papers

One robust result in experimental economics is the failure to observe equilibrium play in the ultimatum game. A heretofore unnoticed feature of the game is that neither player voluntarily chooses to play the game. Motivated by Adam Smith’s proposition that beneficence—like that of non‐ equilibrium play in the ultimatum game—cannot be extorted by force, we offer the responder the opportunity to opt out of the game for a mere $1 payoff for both players. We observe high rates of equilibrium play with highly unequal splits when responders choose to play such ultimatum games with both fixed and variable sums.

War And Conflict In Economics: Theories, Applications, And Recent Trends, Erik O. Kimbrough, Kevin Laughren, Roman M. Sheremeta

ESI Working Papers

We review the main economic models of war and conflict. These models vary in details, but their implications are qualitatively consistent, highlighting key commonalities across a variety of conflict settings. Recent empirical literature, employing both laboratory and field data, in many cases confirms the basic implications of conflict theory. However, this literature also presents important challenges to the way economists traditionally model conflict. We finish our review by suggesting ways to address these challenges.

Homeowner Preferences After September 11th, A Microdata Approach, Adam D. Nowak, Juan Sayago-Gomez

Economics Faculty Working Papers Series

The existence of homeowner preferences - specifically homeowner preferences for neighbors - is fundamental to economic models of sorting. This paper investigates whether or not the terrorist attacks of September 11, 2001 (9/11) impacted local preferences for Arab neighbors. We test for changes in preferences using a differences-in-differences approach in a hedonic pricing model. Relative to sales before 9/11, we find properties within 0.1 miles of an Arab homeowner sold at a 1.4% discount in the 180 days after 9/11. The results are robust to a number of specifications including time horizon, event date, distance, time, alternative ethnic groups, and …

Spatial And Temporal Intricacies Of Natural Resource Use: Studies In Water, Forests, And Hydrocarbons, Dadhi Adhikari

Economics ETDs

This dissertation examines spatial and temporal impacts of natural resource use. The second chapter integrates hydrological and economic systems to examine the impact of drought on these two systems and explores the spatial impact of policies aimed to mitigate the drought impact. The systems dynamics model developed for this chapter simultaneously considers the physical hydrology in the Middle Rio Grande water basin in New Mexico, the engineered water management system, and a behavioral model of residential water demand for three cities: Albuquerque, Rio Rancho, and Santa Fe, New Mexico. The simulation results showed that droughts that occur in later periods, …

Reactions To Market Failure And Approaches To Reduce Market Failure, Yingzhe Cheng

Economics ETDs

Market failure can have serious negative consequences on human welfare, including various health risks to people. How to best correct market failure becomes an important question. Different approaches may reduce market failure, such as direct government regulation, or market based approaches. This research explores consumers’ or societies’ reactions to market failure and approaches to reduce market failure.

The first study uses a random utility model and a choice experiment method to estimate Chinese parents’ marginal willingness-to-pay for potential policy changes that target overall food safety. Results suggest that a policy that provides both direct government regulation and information to create …

Passing It Along: Experiments On Creating The Negative Externalities Of Climate Change, Alessandro Del Ponte, Andrew W. Delton, Reuben Kline, Nicholas A. Seltzer

Political Science Faculty Articles and Research

Climate change is a global social dilemma. Mitigating it is partly a political problem created by inequitable distributions of the benefits of carbon emissions and the costs of climate change; that is, the people who benefit the most are not the same set of people who pay the most costs. Here we use an experimental economic approach to political science to study these inequities. In two experiments, we show that people willingly create climate problems when those problems are passed along to others. Surprisingly, this is not further exacerbated if those others are from another country. We also show that, …

Burden Of Atopic Dermatitis In The United States: Analysis Of Healthcare Claims Data In The Commercial, Medicare, And Medi-Cal Databases, Sulena Shrestha, Raymond Miao, Li Wang, Jingdong Chao, Huseyin Yuce, Wenhui Wei

Publications and Research

Comparative data on the burden of atopic dermatitis (AD) in adults relative to the general population are limited. We performed a large-scale evaluation of the burden of disease among US adults with AD relative to matched non-AD controls, encompassing comorbidities, healthcare resource utilization (HCRU), and costs, using healthcare claims data. The impact of AD disease severity on these outcomes was also evaluated.

Informed Entry In Auctions, Diego Aycinena, Hernán Bejarano, Lucas Rentschler

ESI Publications

We examine entry decisions in first-price and English clock auctions with participation costs. Potential bidders observe their value and report maximum willingness to pay (WTP) to participate. Entry occurs if revealed WTP (weakly) exceeds the randomly drawn participation cost. We find no difference in WTP between auction formats, although males have a higher WTP for first-price auctions. WTP is decreasing in the number of potential bidders, but this reduction is less than predicted and small in magnitude.

Economic Model Of Information, Information Society, And Information Literacy: A View From Russia, Dmitry M. Kochetkov

Library Philosophy and Practice (e-journal)

The article reveals the theoretical model of information as an economic resource. The emphasis is put on the role of information in social and economic evolution, development of information society in Russia in the context of global trends. Further, the author proceeds to the concept of 'information literacy' and a new educational role of university libraries. The service model itself is changing: from satisfying information needs to an advanced model of want formation. Besides, in the 21st century, research libraries find new users: in addition to students and faculty, their services increasingly attract the attention of business. The article is …