Economics Commons^™

How To Measure Well-Being At Work And Why It Matters, Singapore Management University

Perspectives@SMU

Supported staff are key drivers of high performing workplaces

Rhode Island Current Conditions Index -- May 2017, Leonard Lardaro

The Rhode Island Current Conditions Index

No abstract provided.

The Latina Women & The Informal Microenterprise, Ivette Olmeda

Sustainability and Social Justice

ABSTRACT

THE LATINA WOMEN & THE INFORMAL MICROENTERPRISE

Ivette Olmeda

The informal economy refers to economic transactions that are not generally recorded through formal business compliance systems such as licensing, taxes, permitting and others. Informal economic activities are primarily completed through cash transactions.

This research explores the perceptions, intentions, and motivations of Latina women to operate informal microenterprises in an open market. The research consisted of interviews with five Latina women from Worcester, Massachusetts to gather information and ultimately understand why they are not entering formal entrepreneurship systems. The interviews supported existing research in which women state that they operate …

In Pawn: Kurdish Economic Development In The Context Of Conflict, Stephen E. Mcavene Iii

Sustainability and Social Justice

In this paper the author examines the struggle of the Kurdish people for self-determined social, political, and economic development in the whirlwind of conflict in the Middle East. It uses a case study of how a Kurdish minority in Iraq interact with multiple stakeholders in their struggle for nationhood, and implications of these interactions for overall Kurdish social and economic development. Studies on economic development while interested in social, economic and political aspect of development, are less concerned with the implications of right to self-determination on development; the unique case of the Kurdish struggle provides an opportunity to expand the …

A Tanzanian Woman's Place Is On Top: An Exploration Of Women's Participation In Kilimanjaro's Trekking Tourism Industry, Margeaux Prinster

Sustainability and Social Justice

While high poverty rates persist for women in Tanzania, the growing trekking tourism industry surrounding Mount Kilimanjaro and its resulting demand for labor presents these impoverished women with a potential avenue for economic empowerment. This paper examines the national and local realities of women’s work in Tanzania, analyzing culturally informed gendered patterns of employment against the colonial and sexist histories of tourism and commercial mountaineering on Mount Kilimanjaro to identify barriers to women’s economic participation in Kilimanjaro’s trekking tourism industry. This analysis is followed by a cross-cultural comparison with Nepal, focusing specifically on women’s barriers to participation in commercial mountaineering, …

Optimized Forecasting Of Dominant U.S. Stock Market Equities Using Univariate And Multivariate Time Series Analysis Methods, Michael Schwartz

Computational and Data Sciences Theses

This dissertation documents an investigation into forecasting U.S. stock market equities via two very different time series analysis techniques: 1) autoregressive integrated moving average (ARIMA), and 2) singular spectrum analysis (SSA). Approximately 40% of the S&P 500 stocks are analyzed. Forecasts are generated for one and five days ahead using daily closing prices. Univariate and multivariate structures are applied and results are compared. One objective is to explore the hypothesis that a multivariate model produces superior performance over a univariate configuration. Another objective is to compare the forecasting performance of ARIMA to SSA, as SSA is a relatively recent development …

The Simple Economics Of Conservation Clubs, Arthur J. Caplan

Applied Economics Faculty Publications

This paper examines how a regulatory authority might ideally promote the formation of “conservation clubs” among households in order to initiate and empower voluntary household-level water and energy conservation efforts. We characterize a socially optimal conservation benchmark and derive the conditions necessary for a club to effectively attain this benchmark on behalf of the wider community. Both theoretical and numerical analyses are used to demonstrate ways in which households choose to become club members and are subsequently empowered to undertake conservation efforts. The avenues through which club membership might empower households include (1) information provision/education that is assumed to alter …

Beyond Moneyball: Changing Compensation In Mlb, Joshua Congdon-Hohman, Jonathan A. Lanning

Economics Department Working Papers

This study examines the changes in player compensation in Major League Baseball during the last three decades. Specifically, we examine the extent to which recently documented changes in players’ compensation structure based on certain types of productivity fits in with the longer term trends in compensation, and identify the value of specific output activities in different time periods. We examine free agent contracts in three-year periods across three decades and find changes to which players’ performance measures are significantly rewarded in free agency. We find evidence that the compensation strategies of baseball teams increased the rewards to “power” statistics like …

Exploring Investor Attention In Financial Models, Anna Rodier

Honors Projects in Finance

The purpose of this study is to investigate whether stock prices are influenced by investor attention and how this, in turn, can be used to better advise the financial decisions of the everyday investor. Using weekly adjusted close data, weekly traded volumes, and weekly company searches using Google Trends, I tested my hypothesis that including the frequency of company searches, found through consumers using Google, in financial models will help better predict stock returns. Using S&P 500 company data from February 2012 to February 2017, frequency is a better predictor of price in comparison to trading volumes. But, to maximize …

The Impact Of Commercial Banking Development On Economic Growth: A Principal Component Analysis Of Association Between Banking Industry And Economic Growth In Europe, Hugh L. Davis Iii

Dissertations

There are significant differences in the economic growth trajectories of Western, Central and Eastern Europe since the beginning of the democratic movements of the early 1990s. It may be observed that the more developed the region, the lower the growth rate. There are a number of explanations for this growth rate variance, e.g. cultural, resources, institutional and/or political. An explanation this research is pursuing is institutional - the correlation between banking development and economic growth. More specifically, does banking development have a greater impact on growth where economic development begins at a lower level?

Very little research has been directed …

Subcontracting And The Survival Of Plants In The Road Construction Industry: A Panel Quantile Regression Analysis, Dakshina G. De Silva, Georgia Kosmopoulou, Carlos Lamarche

Economics Faculty Publications

This paper investigates how subcontracting parts of contracted work shapes entrants’ success and survival. We find that newly developed quantile regression approaches can be adapted to study survival of firms competing for government contracts in road construction. The method is applied on a data set that includes patterns of firm entry, exit and auction related information. We find an apparent increase in the business life of firms who subcontract out part of their projects. In Texas, these subcontracting effects appear to be more pronounced for firms with few or no options outside the industry, and among firms who contract out …

Single Bidders And Tacit Collusion In Highway Procurement Auctions, David R. Barrus, Frank A. Scott Jr.

Institute for the Study of Free Enterprise Working Papers

Collusion in auctions can take different forms, one of which is refraining from bidding. Such behavior may be overt or tacit.Certain aspects of highway procurement auctions facilitate collusive outcomes. We collect data on asphalt paving auctions conducted by the Kentucky Transportation Cabinet from 2005 to 2007. We analyze both the bid participation decision and the pricing decision. We include variables that affect firm’s’ costs as well as variables that capture competitive and strategic effects. Most importantly, we determine the potential service area of each asphalt plant and use that information to determine the potential bidders for each paving project. We …

In Life Choose What Is Beautiful, But Choose Wisely: Quinnipiac Graduation Speech, May 20, 2017, John Geanakoplos

Cowles Foundation Discussion Papers

No abstract provided.

Information And Interaction, Dirk Bergemann, Tibor Heumann, Stephen Morris

Cowles Foundation Discussion Papers

We study a linear interaction model with asymmetric information. We first characterize the linear Bayes Nash equilibrium for a class of one dimensional signals. It is then shown that this class of one dimensional signals provide a comprehensive description of the first and second moments of the distribution of outcomes for any Bayes Nash equilibrium and any information structure. We use our results in a variety of applications: (i) we study the connections between incomplete information and strategic interaction, (ii) we explain to what extent payoff environment and information structure of a economy are distinguishable through the equilibrium outcomes of …

Revealed Price Preference: Theory And Stochastic Testing, Rahul Deb, Yuichi Kitamura, John K.-H. Quah, Jörg Stoye

Cowles Foundation Discussion Papers

We develop a model of demand where consumers trade-off the utility of consumption against the disutility of expenditure. This model is appropriate whenever a consumer’s demand over a strict subset of all available goods is being analyzed. Data sets consistent with this model are characterized by the absence of revealed preference cycles over prices. The model is readily generalized to the random utility setting, for which we develop nonparametric statistical tests. Our application on national household consumption data provides support for the model.

A Process For Field Studies In Behavioral Economics, Victoria Ferraro

Senior Honors Projects

Field experiments enable economists to test whether theory adequately captures behavior in natural settings, or whether evidence supports reevaluating the reasoned abstractions comprising the theory. Economics, and social science more generally, has increasingly valued the evidence provided by field studies. These studies typically require a relationship with an external partner site providing the environment for the study, but existent research offers little guidance for developing these relationships and designing procedures for effective collaboration. The purpose of this paper is to provide greater insight into what is necessary to conduct field experiments in economics, particularly behavioral economics in private market settings. …

Democracy Ends Here: U.S. Collective Bargaining Decline And An Alternative Policy Approach To Business Ownership, Sara Estep

Senior Honors Projects

In the United States, it seems that we cannot talk about democracy without discussing capitalism and vice versa. However, as soon as we step into work these ideals are simply thrown out the door. If we seek to govern our country democratically, should we also not have a democratic governance structure in our day to day workplaces? Unions have existed in the United States for over 150 years, but as the types of jobs that make up our economy and the demographics of the labor force have changed dramatically, the basic concept of the union has remained static. In turn, …

The Effects Of Gentrification: Inhabitants, Education, And Displacement, Marilyn Pineda

Honors College Theses

Locally and internationally, cities that face decades of disinvestment and neglect at one point experience a resurgence and revival in that location. A city’s resurgence and revival is seen in the form of new houses, businesses, and the migration of middle to upper middle class individuals is known as gentrification. Subjectively, gentrification is beneficial to those who are home owners because they can sell their houses for a higher price than what they bought it for; it is beneficial to the landlord who is able to increase the rents of units (Atkinson 2002). In light of all this, while the …

An Analysis Of Brexit’S Consequences On The United Kingdom’S Economy, Brigid Cruise

Renée Crown University Honors Thesis Projects - All

Following the Brexit referendum decision made on June 23, 2016, much uncertainty surrounds the United Kingdom (UK) leaving the European Union (EU), particularly how that decision will impact its future economy. Due to high levels of globalization, genuine concern exists for the UK’s decision producing a global economic crash, similar to the financial crisis of 2008. Ultimately, the result of Brexit will depend largely on the policy created and implemented once the UK officially leaves the EU. If the UK is able to successfully navigate exiting the EU with little economic consequences, it is conceivable that other EU members could …

Unconventional Wisdom: Estimating The Economic Impact Of The Democratic And Republican National Political Conventions, Victor Matheson, Lauren R. Heller, E. Frank Stephenson

Economics Department Working Papers

We use daily hotel occupancy, price, and revenue data to analyze the economic impact of the 2008 and 2012 Democratic and Republican National Conventions. We find that political conventions generate approximately 29,000 room nights of lodging, though this figure is offset by lower hotel occupancy during the week before and, to a lesser extent, after conventions. Conventions increase hotel revenue by approximately $20 million on average, a figure which suggests that host cities’ claims of economic impacts of $150 million or more may be implausible.

Consequences Of Information Asymmetry On Corporate Risk Management, Howard J. Merrill Iii

Applied Economics Theses

This paper will demonstrate the impact information asymmetry has on risk management. There is a noticeable impact within the context of consumer credit risk. If a firm is able to recognize this, they can make improved credit decisions that will reduce the consequences. The theoretical impact will be presented while depicting areas of risk management that are susceptible to information asymmetry. We find a direct impact on the development of scoring models, credit policies, and origination volume. These results hold for banks with portfolios consisting of consumer credit products and small business loans. Once known, banks can better tailor their …

The Impact Of Money Supply And Electronic Money: Empirical Evidence From Central Bank In China, Rui Qin

Applied Economics Theses

The purpose of this paper is to study the electronic money's influence on the money supply as well as the power of the central bank. We show in an illustrative theoretical model that electronic money will impact on money supply, especially affect M0 and M1. Using data of central bank in China during 1990 to 2010 and applying ordinary least squares (OLS) regression models, we find robust evidence that electronic money has a negative impact on M0, but a positive impact on M1. In addition, the central bank's abilities to control money supply can be affected by the wide application …

Stock Market Wealth Impact On Consumption Expenditure, Ramberto Jr. Sosa Cueto

Applied Economics Theses

The purpose of this thesis is to explain the role of the stock market in determining aggregate consumer behavior. Theoretically, the life-cycle hypothesis is the main link between consumption and wealth. Additionally, a household’s corporate equities holdings form part of that wealth (a small proportion). However, stock market fluctuations account for a significant part of the variation in household wealth, because of the stock prices’ volatility.

In regression models, the estimated relationship between consumption and wealth is commonly positive and statistically significant. The empirical evidence in this paper suggests that the relationship between consumption and wealth is positive and statistically …

Behavioral Economics And The Effects Of Psychology On The Stock Market, Justin L. Nagy

Applied Economics Theses

The purpose of this thesis is to study the contributions behavioral economics and finance have had on the understanding on how the stock market works. The idea that psychology plays a role in influencing the stock market can be dated back to Adam Smith who wrote about individual’s behavior in his work Theory of Moral Sentiments. It wasn’t until the latter half of the 20th century that behavioral economics became accepted as a counter to Eugene Fama’s widely accepted theory of Efficient Market Hypothesis. This paper will analyze the development of behavioral economics, review the main contributors to the field …

Does A Better Running Back Mean More Rushing? Game Theory And The Nfl, Eric Lofquist

Honors Scholar Theses

In this paper I attempt to answer the question of whether or not teams in the National Football League (NFL) rush less with a better running back. This seems counterintuitive, but game theory supposes that this is true. Defenses facing a better running back will generally expect the offense to rush more and therefore defend the run more often. The offense, foreseeing the defense’s actions, will choose to pass more to counteract the run defense. This is the basis of the difference between the strategic effect and the direct effect in mixed strategies. The direct effect is when a player …

The Gender Wage Gap In The Film Industry: A Review Of Literature, Christine Pires

Senior Theses

The gender wage gap is defined as the difference between the amounts of money paid to women and men, often for doing the same work (Cambridge, 2017). The gender wage gap is a reoccurring financial issue in all aspects of the business world. Most all career paths have had a wage gap between men and women. Having equal pay for equal work should be a thing of the past. However, women today are still fighting to close the wage gap and work equally in all fields. The film industry is one of the largest entertainment industries in America and still, …

The Revival Of The Philippine Economy, Cesar V. Purisima, Philip Charles Zerrillo

Asian Management Insights

The former Secretary of Finance for the Philippines and Chair of the Economic Development Cluster from 2010 to 2016, Cesar V. Purisima, talks about the turning around of the Philippine economy and restoring investor confidence, in this interview with Philip Zerrillo.

Harnessing The Youth Bulge, Sarah Harper

Asian Management Insights

How Asia can take advantage of its changing age composition.

Upward Pricing Pressure As A Predictor Of Merger Price Effects, N. H. Miller, Marc Remer, C. Ryan, G. Sheu

Economics Faculty Works

We use Monte Carlo experiments to evaluate whether “upward pricing pressure” (UPP) accurately predicts the price effects of mergers, motivated by the observation that UPP is a restricted form of the first order approximation derived in Jaffe and Weyl (2013). Results indicate that UPP is quite accurate with standard log-concave demand systems, but understates price effects if demand exhibits greater convexity. Prediction error does not systematically exceed that of misspecified simulation models, nor is it much greater than that of correctly-specified models simulated with imprecise demand elasticities. The results also support that UPP provides accurate screens for anticompetitive mergers.

Can Hiring Quotas Work? The Effect Of The Nitaqat Program On The Saudi Private Sector, Jennifer R. Peck

Economics Faculty Works

This paper studies the effects of quota-based labor regulations on firms in the context of Saudi Arabia's Nitaqat program, which imposed quotas for Saudi hiring at private firms. I use a comprehensive firm-level administrative dataset and exploit kinks in hiring incentives generated by the quotas to estimate the effects of this policy. I find that the program increased native employment at substantial cost to firms, as demonstrated by increasing exit rates and decreasing total employment at surviving firms. Firms without any Saudi employees at the onset of the program appear to bear most of these costs.