Economics Commons^™

Effective Modeling Of The Distribution Of Wealth, Justin Gardiner, Richard Evans

Journal of Undergraduate Research

Many macroeconomic models have trouble matching the high end of the distribution of wealth in the economy. To correct this problem, we set out to build a model that includes individual agents experiencing stochastic changes to their income levels. These stochastic changes thus model real life risk and encourage precautionary saving. We built the theoretical framework for a large scale macroeconomic model in which individuals take into consideration the possible variability of their future income and alter their saving behaviors accordingly. We have made significant progress in creating a computer program that will allow us to calibrate our model to …

International Trade Simulation, Jeff Clawson, Kerk Phillips

Journal of Undergraduate Research

For the past year, this project has involved taking a trade simulation model, recreating it in a modern programming language and making it freely available through the Open Source Policy Center (OSPC). The program takes real world population data provided by the user and then simulates trade between countries. Unlike the natural sciences, Economists cannot always study their subjects in a controlled environment. Models like this project allow us to get an idea of what would happen, for example, in trade between the US and EU if there were to be a change in China’s taxes. Our project is still …

Bondholder Reorganization Of Systemically Important Financial Institutions, Steven Gjerstad

ESI Working Papers

This paper describes a resolution process for faltering financial firms that quickly allocates losses to bondholders and transfers ownership of the firm to them. This process overcomes the most serious flaws in resolution plans submitted by banks under Dodd-Frank Title I and in the FDIC receivership procedure in Dodd-Frank Title II by restoring the balance sheet of a failing financial institution and immediately replacing the management and board of directors who allowed its demise. In almost all bank failures, this process would eliminate the need for government involvement beyond court certification of the reorganization. The procedure overcomes the serious incentive …

Exact Nonparametric Inference For A Binary Endogenous Regressor, Joseph Cooprider, Brigham Frandsen

Journal of Undergraduate Research

When there is endogeneity in an economic model, basic ordinary least squares regression analysis breaks down. Our assumptions for the model collapse so we cannot infer causality without bias in our estimations. Therefore, use of an instrumental variable is necessary. However, if instruments are weak, sample sizes are small, or assumptions about error terms are invalid, then our analysis is biased as well. We developed an exact, finite-sample approach to instrumental variables estimation and inference that remains valid for weak instruments, small samples, and other settings where large-sample approximations are poor. This approach imposed no parametric model for causal effects …

Nebraska Monthly Economic Indicators: June 21, 2017, Eric Thompson

Leading Economic Indicator Reports

The Leading Economic Indicator – Nebraska (LEI-N) 1 fell by 0.51% during May of 2017. This is the second consecutive monthly decline in the LEI-N. The declines followed three months of rapid increase from January through March of 2017. Taken together, the LEI-N values imply a moderation in economic growth in Nebraska in late 2017 after strong growth midyear. Among the components of the indicator, business expectations were strong during May while the value of the U.S. dollar fell, which is a positive sign for Nebraska’s export-oriented businesses. However, manufacturing hours, building permits and airline passen

The Effect Of Public Pension Wealth On Saving And Expenditure, Marta Lachowska, Michał Myck

Upjohn Institute Working Papers

This paper examines the degree of substitution between public pension wealth and private saving by studying Poland’s 1999 pension reform. The analysis identifies the effect of pension wealth on private saving using cohort-by-time variation in pension wealth induced by the reform. The estimates, which are based on the 1997–2003 Polish Household Budget Surveys, show that 1 Polish zloty (PLN) less of pension wealth increases household saving by 0.3 PLN. Among highly-educated households, pension wealth and private saving appear to be close substitutes.

Agent Intermediation And Racial Price Differentials, Adam D. Nowak, Patrick S. Smith

Economics Faculty Working Papers Series

In most housing transactions the home buyer and seller do not meet, in which case the buyer's race is not revealed and the seller cannot discriminate against them. Despite this fact, previous studies estimate racial price differentials based on the race of the home buyer. In this study we identify the dimensions along which differential treatment occurs in housing markets. We show that home buyers disproportionately hire real estate agents of the same race and that the race of the agent, not the home buyer, is the primary mechanism of discrimination. The results of this study have important implications for …

A Review On Literature Of Waqf For Poverty Alleviation Between 2006-2016, Nur Atikah Atan, Fuadah Johari

Library Philosophy and Practice (e-journal)

Background - The success of Waqf as a source of socio-economic financing in Islamic history in developing a country by providing the social and public goods to the society have been a major factor for Waqf practices to be retrieved back today. In order to exterminate the poverty, depending in Zakat alone is not enough. Waqf can be an alternative in solving the socio-economic problem of the Ummah which covers the issues such as poverty, inequality and rising cost of living as well in promoting the social well-being in the society. Purpose - The purpose of this article is to …

The Socioeconomic And Ecological Impact Of Cool Season Forage Production: A Case Of Black Belt Counties, Alabama, Lila B. Karki, Uma Karki

Professional Agricultural Workers Journal

Abstract

Raising livestock during the lean season of forage production has become a great challenge for small and limited resource farmers because of a high cost involved in procuring supplementary feed. This study was conducted to assess the impact of cultivating cool-season forages on the feeding costs for meat goats and cattle. Three case studies were conducted in three Black Belt Counties of Alabama, Russell, Dallas, and Bullock. The socioeconomic and ecological impacts of developing cool-season pastures were evaluated using the before versus after assessment approach. The findings revealed that all three cooperator farmers reduced costs of procuring hay and …

Sentiments, Conduct, And Trust In The Laboratory, Vernon Smith, Bart J. Wilson

ESI Publications

In this essay we provide a brief account and interpretation of The Theory of Moral Sentiments showing that it departs fundamentally from contemporary patterns of thought in economics that are believed to govern individual behavior in small groups, and contains strong testable propositions governing the expression of that behavior. We also state a formal representation of the model for individual choice of action, apply the propositions to the prediction of actions in trust games, report two experiments testing these predictions, and interpret the results in terms directly related to the model. In short, we argue that the system of sociability …

A Brief History Of Tsetse Control Methods In Zimbabwe And Possible Effects Of Climate Change On Their Distribution, Rory Pilossof

International Journal of African Development

African trypanosomiasis, which affects wildlife, domesticated animals and humans, remains widespread across Africa. Approximately 8 million km², covering 37 African counties, are infested with tsetse flies (Glossina) that carry the disease (Allsopp 2001). The first part of this paper looks at the history of tsetse control on the northern fly-belt in Zimbabwe, affecting the Mashonaland East, Mashonaland Central and Mashonaland West provinces. In Zimbabwe, tsetse control has shifted and evolved in the twentieth century, ranging from the initial methods of game destruction and bush-clearing, to ground and aerial spraying of insecticides, the sterile insect technique (SIT), …

Rural Women And The Land Question In Zimbabwe. The Case Of The Mutasa District, Bigboy Toro

International Journal of African Development

Zimbabwean rural women make significant contribution to agriculture and are the mainstay of farm labor. Although they do the majority of agricultural work, men, for the most part, continue to own the land, control women’s labor and make agricultural decisions supported by patriarchal social systems. Women’s access to land is usually through their fathers, husbands, brothers or sons. This has made it difficult for women to gain equal access to land under the Fast Track Land Reform Programme (FTLRP). Findings indicate that there are a number of challenges and constraints that are experienced by rural women under the FTLRP, which …

Asymmetric Benefits: The Ethio-Eritrea Common Market (1991 To 1998), Worku Aberra

International Journal of African Development

Economic theory suggests that a common market between two or more countries improves overall well-being, but it creates winners and losers in each country. Recent empirical findings also show that the overall impact of a common market on per capita income depends on the similarity of economic development between member countries. A common market among developed countries results in the convergence of per capita income while a common market among developing countries results in the divergence of per capita income. The difference in outcome, some economists suggest, is due to variations in comparative advantage between member states and the rest …

China And Post-Millennium African Economic Development Strategy As A Non-Zero-Sum-Game, Paul Milkias

International Journal of African Development

This paper will probe Africa's and China’s historical trajectory regarding economic development. It analyzes China's and Africa's creative leap, particularly since the millennium, into a new paradigm, a new way of economic relationship totally different from that with the West. The focus is on analyzing China’s heavy economic investment in Africa based on the assumption that the relationship is mutually beneficial rather than being exploitative as some scholars suggest. The hypothesis draws from Decision Theory’s concept of a Zero-Sum Game. It is understood that in a two partnered non-zero sum game theory, one partner’s gain or loss does not necessarily …

Africa In Global Climate Change Governance: Analyzing Its Position And Challenges, Anwar Hassen Tsega

International Journal of African Development

Climate change has emerged as a major global issue that affects all nations and has become a phenomena requiring global governance in the modern globalized world. Though the African contribution to the increase Greenhouse Gas (GHG) is very small, climate change is a concern of African countries. This paper is aimed to analyze the African position and challenges in the governance of climate change. Nonetheless, there are opportunities created for adaptation and mitigation, the implementation of these measures is constrained by lack of financial, institutional and human capacities. Accordingly, the Africans position in the international system and lack of the …

Editorial Note, Sisay Asefa

International Journal of African Development

No abstract provided.

International Journal Of African Development, Vol. 4, Issue 1

International Journal of African Development

Complete issue of International Journal of African Development, Volume 4, Issue 1 - Fall 2016.

Veterans In Workforce Development: Participation And Labor Market Outcomes, Colleen Chrisinger

Upjohn Institute Working Papers

This paper compares the employment status and earnings of veterans and nonveterans following their receipt of public workforce development services in Washington State during the years 2002–2012. It also describes workforce program participation patterns for veterans and nonveterans to determine if veterans have equal or prioritized access to key programs, where prioritization is required by law. Based on tabulations and propensity score weighted regressions using administrative data, the results indicate slightly lower levels of participation by veterans than nonveterans in two major workforce programs (Wagner-Peyser and the Workforce Investment Act Adult program), and high participation in veteran-specific programs (Disabled Veterans …

Overcoming Under-Reporting: Known Measurement Error, Adam Shumway, Dr. Joseph Price

Journal of Undergraduate Research

This project evaluates the feasibility of overcoming measurement error by using predictors for participation. Several national surveys under-represent actual program participation; some actual participants in government welfare programs, for example, fail to truthfully report participation when asked. Using data from these surveys to evaluate these programs’ effectiveness is inherently problematic due to the bias caused by misclassification of these participants.

The Economics Of Thought, S. Marie Johnson

Best Integrated Writing

Johnson takes an economic perspective on the First Amendment. Johnson argues that freedom of speech encourages the competition and flow of ideas which, in turn, allows for an increase of knowledge about competing ideologies.

In Latest Jobs Numbers, A Vindication For Minnesota’S Policy Choices, Louis D. Johnston

Economics Faculty Publications

No abstract provided.

Investigating A Modern Midwestern Crisis: The Economy And Opioid Overdose Death In Ohio, Anna M. Gagliardo

Undergraduate Economic Review

This paper examines the effect of local economic factors on the amount of opioid overdose deaths across counties in Ohio. Ohio leads the nation in opioid overdose deaths. The data examined spans all 88 counties of Ohio and compares 2009 and 2013 data, relying predominantly on Ohio Department of Health and US Census American Community Survey data. Using two linear regression models, I demonstrate that there is a significant correlation between insured rates and opioid overdose deaths in 2009 as well as a significant correlation between poverty rates and opioid overdose death rates in Ohio in 2013. Additionally, I show …

Integration Of Microsimulation Model Into Dynamic Scoring Model, Christ Rytting, Richard Evans

Journal of Undergraduate Research

We integrated individual tax rates produced by a microsimulation tax policy model with a dynamic general equilibrium tax policy model. We can use this to conduct macroeconomic analysis or score hypothetical tax policies. This approach captures the rich heterogeneity, realistic demographics, and tax-code nuance of the microsimulation model and includes this nuance to increase the accuracy of a general equilibrium model with an elevated level of heterogeneity. Furthermore, we derive a functional form which suggests that tax rates depend both on capital income and labor income. Applying this approach to a canonical example of tax policy change—a cut of 10% …

Advancing Rationality With Sustainability: An Analysis Of Agent-Based Simulation, Osman Goktug Tanrikulu

Hatfield Graduate Journal of Public Affairs

Today, falling trends of species and ecosystem in the world due to overconsumption and destruction of natural resources are at critical levels. It is vital for humanity to operate with sustainable and resilient modes of production and consumption. In this regard, this paper examines the basic premise of rationality and introduces sustainability as an advancement to the theoretical concept of rationality. Thus, a rational mindset and a sustainable mindset are compared under depletion of environmental resources. The understanding of rationality in the analysis is based on Garett Hardin’s (1968) ‘the tragedy of the commons’ model, in which actors are self-interested …

Economies Of Scale And Governance Of Library Systems: Evidence From West Virginia, Amir B. Ferreira Neto, Joshua Hall

Economics Faculty Working Papers Series

Public libraries are a billion dollar industry in the United States. We explore the institutional determinants of public library technical efficiency using data from West Virginia. We first document considerable cross-district variation in library efficiency. While the average library district in our sample is between 81% and 90% efficient depending upon the year and measure, there are many district years that are under 50%. We then explain our technical efficiency measures as a function of institutional variables reflecting the type of district and sources of funding. We find consistent evidence that urban libraries are more inefficient, perhaps because they are …

Local Union Strength’S Effects On Individual Employment Outcomes, Brianna J. Rippin

Undergraduate Economic Review

This cross-sectional analysis of employment in the 50 U.S. States during the years 2003-2012 provides evidence that increased local union strength does significantly diminish an individual’s hours worked. The multivariate OLS regression estimation reveals that the negative effect of union strength is dwarfed by the effects of proxies for worker quality such as one’s age, sex, and education level. However, union strength effects are found to be stronger than local economic trends. This research indicates that individual factors are the most important determinant of one’s employment outcomes as they are most indicative of productivity.

Economic Evaluation Of Coastal Land Loss In Louisiana, Stephen R. Barnes, Craig Bond, Nicholas Burger, Kate Anania, Aaron Strong, Sarah Weilant, Stephanie Virgets

Journal of Ocean and Coastal Economics

Louisiana has lost approximately 1,880 square miles of land over the past eighty years. Projections suggest that in a future without action, the next fifty years could result in the loss of 1,750 additional square miles of land area. As land loss continues, a large portion of the natural and man-made capital stocks of coastal Louisiana will be at greater risk of damage, either from land loss or from the associated increase in storm damage. We estimate the replacement cost of capital stock directly at risk from land loss ranges from approximately $2.1 billion to $3.5 billion with economic activity …

The Market Transfer Effect In The Hawaiian Longline Fishery: Why Correlation Does Not Imply Causation, Jason D. Scorse, Shaun Richards, Philip King

Journal of Ocean and Coastal Economics

A lot of discussion and controversy has surrounded whether the “market transfer” effect in the Hawaii longline swordfish fishery occurred during the swordfish closure of 2001-2004, because of its potential impacts on sea turtle mortality. The primary academic work in support of the market transfer effect during the closure is a paper by Rausser et al. (2009): “Unintended Consequences: The Spillover Effects of Common Property Regulations.” In this paper, the authors claim to find evidence in support of the market transfer hypothesis.To our knowledge, no analysis has yet been undertaken to assess whether this analysis is sound, and yet it …

Considerations Of Socio-Economic Input, Related Challenges And Recommendations For Ecosystem-Based Maritime Spatial Planning: A Review, Mavra Stithou

Journal of Ocean and Coastal Economics

Socio-economics in an ecosystem-based Marine Spatial Planning (MSP) process cover a wide range from specifying socio-economic objectives, respective indicators, organising stakeholder engagement, to data, methods and tools (e.g., environmental valuation and cost-benefit analysis) for example to identify issues, assess ecosystem services, provide an insight on human behaviour and compare alternative marine plans with potentially competing goals. In addition, social principles such as that of social equity have an important role to play in achieving sustainability in marine management. However, the use of socio-economics in making the ecosystem-based MSP framework operational, poses certain challenges to researchers, regulators and policy-makers. The purpose …

More Balanced Economic Growth, Eric Thompson

Business in Nebraska

There has been a re-balancing of both global and domestic economic growth during 2017. Globally, growth is improving in Europe and China, yielding more balanced international growth. Within the United States, growth also has become more balanced across industries. As in past years, the service sector, supported by growth in employment and real wages, has grown steadily with increases in retail trade, business services, personal services and construction activity. However, in recent months, there also has been improved growth in the industrial sector, with a rebound in the energy sector, and more business investment in capital equipment. The result is …