Economics Commons^™

On The Properties Of The Weibull-Burr Iii Distribution And Its Application To Uncensored And Censored Survival Data, Aliyu Yakubu, Sani I. Doguwa

CBN Journal of Applied Statistics (JAS)

Twelve different families of cumulative distributions that are used to model real life data were introduced by Burr (1942). Burr III distribution is among these families of cumulative distributions. In this work, a four-parameter distribution is introduced to model real life scenarios called Weibull-Burr III distribution. The limiting behavior of the proposed distribution, hazard function, moments, skewness, kurtosis and quantile function is investigated; order statistics and entropy are also derived. The method of Maximum Likelihood Estimation technique was used in estimating the parameters of the proposed distribution. To prove the flexibility and performance of the distribution and Weibull-G family of …

The Consumption-Oriented Capital Asset Pricing Model In The Nigerian Stock Exchange, Abidemi C. Adegboye

CBN Journal of Applied Statistics (JAS)

In this study, the Consumption-oriented Capital Asset Pricing Model (CCAPM) is tested for Nigeria by considering returns on investments in the Nigerian Stock Exchange market and other financial assets for the period 1993: Q1 to 2016:Q4. Three tests are conducted. The first test examines forecast performance of excess returns for the selected portfolios in predicting future consumption; the second test estimates the consumption betas for the set of assets using two alternative formulations of the CCAPM; and the third test included consumption growth variable in a multifactor risk analysis to compare with the basic CAPM formulations. The empirical results indicates …

An Assessment Of The Impact Of Banking Reforms On Economic Growth And Bank Performance In Nigeria, Matthew O. Gidigbi

CBN Journal of Applied Statistics (JAS)

This study assesses the impact of banking reforms on banks’ performance and economic growth for the period 1981 to 2015 by fitting an ANOVA model into Stepwise Regression. Using dummy variables to isolate reform periods, results show that banking reforms contribute positively to economic growth, especially in the period 1999 to 2004. Also, banking reforms are found to contribute negatively to banks’ performance, following the 1993 reforms. The study confirms that banking system reforms in Nigeria have dual impact on the economy and banks’ performance. The banking reforms are capable of promoting growth in the economy. Thus, the study recommends …

Revenue Sharing And Player Salaries In Major League Baseball, James Richard Hill, Nicholas A. Jolly

Economics Faculty Research and Publications

This article analyzes how changes made to the revenue sharing agreement in the 2007 Major League Baseball collective bargaining agreement influenced the salaries of position players and pitchers. The tax rates associated with revenue sharing decreased following ratification of the 2007 agreement. Theoretically, these changes should increase players’ marginal revenue product and, therefore, salaries. Results indicate that position players experienced an increase in salary following the 2007 agreement. Pitchers’ salaries also increased, but by a smaller amount. The effect of the 2007 agreement was different throughout the salary distribution for position players, but uniform throughout the distribution for pitchers.

The Montana Expression 2017: 2017’S Costly Fire Season, Jeremy L. Sage, Norma P. Nickerson

Institute for Tourism and Recreation Research Publications

Montana, along with many western states, experienced a severe fire season in the summer of 2017. According to the Northern Rockies Coordination Center (NRCC), fires consumed 1,276,456 acres of Montana lands. Nearly half of these lands are U.S. Forest Service owned (Table 1). The severity of the fire season led Montana’s Governor, Steve Bullock, to declare a state of emergency at the beginning of September. At this time, the state had already exceeded the $30 million in its firefighting fund by $14.5 million.1 The NRCC estimates the total costs of fighting Montana’s wildfires topped $390 million.2 The combination of extreme …

Worked To Leisure: The Intersections Of Volunteerism, Work, And Leisure, Denise Nicole Cook

UNLV Theses, Dissertations, Professional Papers, and Capstones

Volunteerism and work are topics which academics in several disciplines research. This study is an examination of the intersection of work and volunteerism via the lens of role theory. According to role theorists, the term role refers to behaviors which are either a result of social position or expectations (Biddle 1986). Cognitive role theorists use vocabulary such as “role conflict” and “role overload” to identify incongruences sometimes found in roles individuals have in their lives (Biddle 1986). These incongruences are primarily examined as they relate to individual level consequences. This research explores volunteerism and work as they relate to role …

Bayesian Analysis Of Bubbles In Asset Prices, Andras Fulop, Jun Yu

Research Collection School Of Economics

We develop a new asset price model where the dynamic structure of the asset price, after the fundamental value is removed, is subject to two different regimes. One regime reflects the normal period where the asset price divided by the dividend is assumed to follow a mean-reverting process around a stochastic long run mean. This latter is allowed to account for possible smooth structural change. The second regime reflects the bubble period with explosive behavior. Stochastic switches between two regimes and non-constant probabilities of exit from the bubble regime are both allowed. A Bayesian learning approach is employed to jointly …

Inference In Continuous Systems With Mildly Explosive Regressors, Ye Chen, Peter C. B. Phillips, Jun Yu

Research Collection School Of Economics

New limit theory is developed for co-moving systems with explosive processes, connecting continuous and discrete time formulations. The theory uses double asymptotics with infill (as the sampling interval tends to zero) and large time span asymptotics. The limit theory explicitly involves initial conditions, allows for drift in the system, is provided for single and multiple explosive regressors, and is feasible to implement in practice. Simulations show that double asymptotics deliver a good approximation to the finite sample distribution, with both finite sample and asymptotic distributions showing sensitivity to initial conditions. The methods are implemented in the US real estate market …

Clogged Intermediation: Were Home Buyers Crowded Out?, Hyunsoo Choi, Hyun-Soo Choi, Jung-Eun Kim

Research Collection Lee Kong Chian School Of Business

Post-crisis policy interventions significantly increased the demand for mortgage refinancing, but could this surge in refinancing applications have crowded out the supply of credit to home buyers? In this paper, we examine two frictions that hamper financial intermediation and result in banks' substitution of home purchase loans for refinance loans: The risk capacity channel through which banks with limited risk appetites prefer safer loans over riskier loans, and the operating capacity channel through which banks with limited operating capacities prefer applications that require less screening time. We find that following the recent financial crisis, banks facing these capacity constraints indeed …

Identifying Latent Group Structures In Nonlinear Panels, Wuyi Wang, Liangjun Su

Research Collection School Of Economics

We propose a procedure to identify latent group structures in nonlinear panel data models where some regression coefficients are heterogeneous across groups but homogeneous within a group and the group number and membership are unknown. To identify the group structures, we consider the order statistics for the preliminary unconstrained consistent estimators of the regression coefficients and translate the problem of classification into the problem of break detection. Then we extend the sequential binary segmentation algorithm of Bai (1997) for break detection from the time series setup to the panel data framework. We demonstrate that our method is able to identify …

Business Time Sampling Scheme With Applications To Testing Semi-Martingale Hypothesis And Estimating Integrated Volatility, Yingjie Dong, Yiu Kuen Tse

Research Collection School Of Economics

We propose a new method to implement the Business Time Sampling (BTS) scheme for high-frequency financial data. We compute a time-transformation (TT) function using the intraday integrated volatility estimated by a jump-robust method. The BTS transactions are obtained using the inverse of the TT function. Using our sampled BTS transactions, we test the semi-martingale hypothesis of the stock log-price process and estimate the daily realized volatility. Our method improves the normality approximation of the standardized business-time return distribution. Our Monte Carlo results show that the integrated volatility estimates using our proposed sampling strategy provide smaller root mean-squared error.

Cultural Preferences In International Trade: Evidence From The Globalization Of Korean Pop Culture, Pao-Li Chang, Iona Hyojung Lee

Research Collection School Of Economics

The Korean pop culture (TVdramas and K-pop music) has grown immensely popular across the globe over thepast two decades. This paper analyzes its impacts on international trade. We compilea cross-country panel dataset of South Korea's TV show exports to over 150countries for the period of 1998{2014. These variations in exposure to Koreanpop cultures are used to identify changes in consumer preferences for Koreanmerchandise across time, countries, and products (at the HS 4-digit level).First, we find that more Korean TV show exports significantly increase Koreanexports of goods for women, while the effects are much smaller on men'smerchandise. This strongly supports the …

Clogged Intermediation: Were Home Buyers Crowded Out?, Hyunsoo Choi, Hyun-Soo Choi, Jung-Eun Kim

Research Collection Lee Kong Chian School Of Business

Post-crisis policy interventions significantly increased the demand for mortgage refinancing, but could this surge in refinancing applications have crowded out the supply of credit to home buyers? In this paper, we examine two frictions that hamper financial intermediation and result in banks' substitution of home purchase loans for refinance loans: The risk capacity channel through which banks with limited risk appetites prefer safer loans over riskier loans, and the operating capacity channel through which banks with limited operating capacities prefer applications that require less screening time. We find that following the recent financial crisis, banks facing these capacity constraints indeed …

Inference In Continuous Systems With Mildly Explosive Regressors, Ye Chen, Peter C. B. Phillips, Jun Yu

Research Collection School Of Economics

New limit theory is developed for co-moving systems with explosive processes, connecting continuous and discrete time formulations. The theory uses double asymptotics with infill (as the sampling interval tends to zero) and large time span asymptotics. The limit theory explicitly involves initial conditions, allows for drift in the system, is provided for single and multiple explosive regressors, and is feasible to implement in practice. Simulations show that double asymptotics deliver a good approximation to the finite sample distribution, with both finite sample and asymptotic distributions showing sensitivity to initial conditions. The methods are implemented in the US real estate market …

Volatility Spillovers And Linkages In Asian Stock Markets, Hwee Kwan Chow

Research Collection School Of Economics

Diebold–Yilmaz spillover indexes are computed for weekly return volatilities based on daily benchmark stock indexes of the US, the UK, and 10 Asian countries. We found (i) the strengthening of overall volatility spillovers is not a temporary surge but persisted after the crisis; (ii) the susceptibility of individual Asian stock markets to inward volatility transfers is linked to its degree of openness; and (iii) the Asian bourses are becoming more important emitters of financial shocks since the crisis. Rolling regressions on volatility linkages reveal the relative dominance of the US over the Japanese and Chinese bourses, and the level of …

Dynamic Poverty Decomposition Analysis: An Application To The Philippines, Tomoki Fujii

Research Collection School Of Economics

In this paper, we propose a new method of poverty decomposition. Our method remedies the shortcomings of existing methods and has some desirable properties such as time-revision consistency and subperiod additivity. It integrates the existing methods of growth-redistribution decomposition and sector based decomposition, because it allows us to decompose poverty change into growth and redistribution components for each group (e.g., regions or sectors) in the economy. We extend out method to have six components and provide empirical application to the Philippines for the period of 1985 to 2009.

The Long-Run Performance Of U.S. Firms Pursuing Ipos In Foreign Markets, Robert N. Killins, Peter V. Egly

School of Economics and Finance Faculty Publications

Purpose

The purpose of this paper is to investigate the long-run performance of a unique set of US domiciled firms that have bypassed the US capital markets in pursuit of their initial public offering (IPO) overseas. Additionally, this paper then tests the popular underwriter prestige impact and the window of opportunity hypothesis on this unique subset of IPOs.

Design/methodology/approach

Using a sample of foreign and purely domestic IPOs made by US firms from 2000 to 2011, this study investigates the long-term performance, one-, two- and three-year by using two measures (buy-and-hold return and cumulative abnormal returns) to test the long-run …

Identifying Bubbles In Latin American Equity Markets: Phillips-Perron-Based Tests And Linkages, Diego Escobari, Sergio Garcia, Cristhian Mellado

School of Economics and Finance Faculty Publications

The identification of periods of price exuberance in equity markets is of great interest to policy makers and financial investors. In this paper, we identify financial bubble periods within the major equity markets in Latin America. We use the recently developed recursive Augmented Dickey-Fuller methods and propose similar recursive procedures based on Phillips-Perron. We find that conditional on bubbles in the S&P 500, there are strong links between bubble episodes across equity markets in Latin America. In addition, the financial bubble periods in Latin America begin earlier and last longer than bubble periods in the United States during the 2008 …

Oil Price Shocks And American Depositary Receipt Stock Returns, Shahil Sharma

School of Economics and Finance Faculty Publications

In this paper we examine the impact of oil price shocks on twelve countries American Depositary Receipt (ADR) returns using monthly data from 1999.01 to 2014.12. The results show that oil price shocks have a positive and statistically significant impact on ADR return in all twelve countries. These results are robust to the inclusion of other explanatory variables such as oil price volatility and the spillover of the United States stock market. Further analysis shows that this effect is stronger in the post financial crisis time period compared to the pre-financial crisis time period.

Range-Based Volatility, Expected Stock Returns, And The Low Volatility Anomaly, Benjamin M. Blau, Ryan J. Whitby

Economics and Finance Faculty Publications

One of the foundations of financial economics is the idea that rational investors will discount stocks with more risk (volatility), which will result in a positive relation between risk and future returns. However, the empirical evidence is mixed when determining how volatility is related to future returns. In this paper, we examine this relation using a range-based measure of volatility, which is shown to be theoretically, numerically, and empirically superior to other measures of volatility. In a variety of tests, we find that range-based volatility is negatively associated with expected stock returns. These results are robust to time-series multifactor models …

Why ‘Simple Economics’ Is Often Wrong, And Other Book Recommendations For The Econ Lover In Your Life, Louis D. Johnston

Economics Faculty Publications

No abstract provided.

Improved Grade Outcomes With An E-Mailed “Grade Nudge”, Ben O. Smith, Dustin R. White, Patricia C. Kuzyk, James E. Tierney

Economics Faculty Publications

Information provided at the moment a person makes a decision can influence behavior in predictable ways. The United Kingdom's Behavioural Insights Team have used this idea to help improve the insulation of lofts, collect taxes, and even reduce litter. The authors of this article developed software that appends a personalized message to each assignment in the class regarding the student's current grade. This “grade nudge” explains precisely how the assignment will impact the student's final grade given their current standing in the class. Through a randomized trial, the authors show that the nudge improves student homework performance by about four …

Thinking Outside The Park - National Park Fee Increase Effects On Gateway Communities, Jeremy L. Sage, Norma P. Nickerson, Zachary D. Miller, Alex Ocanas, Jennifer Thomsen

Institute for Tourism and Recreation Research Publications

In 2017, the National Park Service proposed an entrance fee increase across 17 park units, including Yellowstone National Park. The fee increase is proposed to help offset substantial deferred maintenance costs currently experienced across park units. This paper assesses the potential effects felt by gateway communities surrounding the parks. We identify, using Yellowstone as a case study, that even though revenue to the park may increase, spending in local communities can be expected to decrease, all else being equal.

Nebraska Monthly Economic Indicators: November 22, 2017, Eric Thompson

Leading Economic Indicator Reports

The Leading Economic Indicator – Nebraska (LEI-N) 1 fell by 0.24% during October of 2017. The decrease in the LEI-N, which is designed to predict economic activity six months into the future, suggests that economic growth will slow in Nebraska during the second quarter of 2018. The fall in the indicator was due to an decline in building permits for single-family homes and manufacturing hours-worked. There also was an increase in the value of the U.S. dollar in October. The increase in the value of the dollar is challenging for Nebraska exporters. In terms of positive components, there was a …

The Perceived Return On College Investment In Relation To Economic Expectations Of Students At The University Of Maryland, Joshua S. Roston

Undergraduate Economic Review

This paper presents the results of a survey conducted in the spring semester of 2017 of University of Maryland students. The results illustrate how University of Maryland students weigh the decision to attend college in terms of their perceived current economic situation and future expectations as well as predicted return on investment. A body of economic literature on the perception of return on investment from attending college exists already and this study hopes to add to the discussion as its results are unexpected. The results imply that the current generation of college students feels uncertain over the worthwhileness of higher …

Professional Sports Events, Concerts, And Urban Place Based Policy: Evidence From The Staples Center, Iuliia Chikish, Brad R. Humphreys, Crocker H. Liu, Adam D. Nowak

Economics Faculty Working Papers Series

We analyze the relationship between sports events and concerts, important hospitality demand drivers and key components of many urban renewal projects, in the Staples Center in Los Angeles, an arena home to three pro teams, and nearby hotel performance, exploiting exogenous daily variation in the timing of games and concerts from 2002 to 2017. Results show a small positive impact on revenue per available room at hotels within one mile of the arena and an osetting decrease at hotels located one to four miles away. Granting nearby hotels exemptions from Los Angeles hotel taxes reduces potential tourism-generated hotel tax revenue …

Producer Services: A Hub For Stem And An Engine For Job Growth, Eric Thompson, Kalana Jayanetti

Business in Nebraska

No abstract provided.

Social Disadvantage And Child Health Among China's Rural-Urban Migrant Households, Yana Vander Meulen Rogers

Seminars in Local and Global Regional Economies

This talk examines how social disadvantage among rural-urban migrant households in China is associated with the nutritional status of children. The measures of social disadvantage are based on China’s hukou system of household registration – designed to limit domestic migration flows by denying public services in cities to migrants with rural registrations – and on gender bias that may harm women and girls.

Disaster And Recovery: The Effects Of Post-Disaster Aid On Economic Development, Joshua M. Drouin

Steeplechase: An ORCA Student Journal

The effects of aid on economic development is topic typically studied from the perspective of corruption and allocative efficiency. We examine aid to less developed nations from a different viewpoint; assuming aid reaches the intended recipients, does it actually benefit them? We utilize Indonesia and the 2004 earthquake and tsunami as a natural experiment to observe the influx of aid, and compare the regions development before and after the disaster. By establishing a baseline before the disaster, and utilizing a new start point after the destruction, we can gauge the reconstruction efforts and observe whether aid is beneficial or harmful. …

What Drives Economic Growth? A Look Into Structural Transformation And Export Diversification, Dany Bahar

Brookings Scholar Lecture Series

As part of the Brookings Scholar Lecture Series, Brookings Mountain West invites you to a lecture titled "What drives economic growth? A look into structural transformation and export diversification" by Brookings Fellow in Global Economy and Development, Dany Bahar.

About 60 percent of cross-country income differences can be explained by productivity differences. In the long-run, productivity is what best explains economic growth and welfare. This lecture seeks to understand the drivers of economic and productivity growth for countries, and in particular, the role of structural transformation and diversification. The lecture will draw on work by other scholars as well as …