Economics Commons^™

Missouri's Economic Future Lies With School Reform, Eric A. Hanushek

Center for Applied Economics

Between 1970 and 2007, Missouri’s growth in income per capita was 41st in the nation. This dismal outcome is largely a function of its educational system. Its schools have not been competitive, either among the U.S. states or internationally. Lifting the quality of schools will by the historical evidence presented here produce large long-run gains for Missouri’s economy. Even though many youth have in the past migrated to other parts of the country, the strength of the Missouri economy will continue to rest mainly on those current students who will become the backbone of the future labor force. Improving the …

Recent Research On The Minimum Wage: Implications For Missouri, Jonathan Meer

Center for Applied Economics

The minimum wage has long been a contentious policy issue, but particularly so in Missouri in recent years. When St. Louis raised its city minimum wage in 2015, with increases planned to $11 per hour by 2018, legal battles held up implementation and a state law eventually overrode the local ordinance. This essay delves into the sources of this policy dispute, first by examining the theoretical issues involved, then focusing on recent research, particularly regarding outcomes other than the traditional focus on employment outcomes. Using minimum wage increases as an anti-poverty policy is not likely to succeed. While the empirical …

Labor Market Freedom And Economic Prosperity: How Does Missouri Compare?, Dean Stansel

Center for Applied Economics

Government restrictions on workers and employers tend to have a dampening effect on their ability to thrive. There have been numerous studies of the relationship between state labor market restrictions and labor market outcomes (as well as economic outcomes in general). As theory would imply, that literature generally has found a positive relationship between labor market freedom and various measures of positive economic outcomes. After a discussion of the concept of economic freedom and how it is measured in labor markets, this paper briefly reviews that literature. It also provides a detailed examination of how Missouri compares to its neighboring …

Measuring Human Capital Across Countries: Iq And The Human Capital Index, Gail Heyne Hafer, R. W. Hafer

Center for Applied Economics

It has been shown that country-level IQ and aggregated performance by school-age children on international assessment tests in math and science are by-in-large capturing analogous indicators of the cognitive human capital. We expand that analysis by comparing country-level IQ to the World Economic Forum’s Human Capital Index (HCI). This index, comprised of several dozen separate indicators, accounts for inputs and outcomes to measure human capital, across age profiles and gender. Two outcomes are of note. First, there is a positive, significant correlation between IQ and the vast majority of the component indicators in the HCI across all age cohorts. Second, …

The State Of The Missouri Economy And Workforce, Timothy J. Gronberg, Dennis W. Jansen, Lori L. Taylor

Center for Applied Economics

This article presents an overview of the state of the Missouri economy. We begin by assessing measures of economic output. Compared to the nation and to neighboring states, Missouri’s economy has hardly grown over the past 20 years. We identify several sources for this lackluster record. Perhaps one of the most important is the observation is that productivity in Missouri—output per worker—is lower than the national average. This poor productivity record quite possibly stems from two sources. One is problematic trends in labor force quality. A key factor here is a lack of commitment by the state to a higher …

City-County Consolidation In St. Louis: An Analysis, Joshua Hall, Josh Matti

Center for Applied Economics

This report provides an analysis and evaluation of the proposed city-county consolidation in St. Louis. The report draws upon theoretical research considering the impact of local government consolidations on efficiency, equity, spillovers, and development. Where possible, we connect the ideas from the academic literature to arguments made regarding the situation in St. Louis. After exploring both the theoretical reasons for and against consolidation, we consider the real-world empirical evidence. Although city-county consolidations sometimes lead to positive outcomes, often they do not. Importantly, the context of consolidation matters. By understanding the importance of context with consolidations, we conclude with five lessons …

Benchmarking The Educational Progress Of African American And Latino Students In Arkansas, Mervin Jebaraj

Urban League of the State of Arkansas

The Urban League of Arkansas partnered with the Center for Business and Economic Research in the Sam M. Walton College of Business at the University of Arkansas to produce a report providing data to identify twelve key areas of need in the African American and Latino communities in Arkansas and to assist in the development of programs and policies to address them. The twelve indicators are enrollment, expenditure per student, fourth grade literacy and math achievement levels, eighth grade literacy and math achievement levels, disciplinary actions, dropout rates, graduation rates, college going rates, educational attainment for the population over the …

Katangale Or Kuba?: Development Assistance And The Experiences And Perceptions Of Local Corruption In Malawi, Sahai Burrowes

There is lively debate concerning the influence of development assistance (‘aid’) on corruption in recipient countries; however, to date, few studies have systematically examined the subject subnationally. This study estimates the association between sub-national aid levels and citizens’ perceptions and experiences of local corruption in Malawi. Overall, we find that individuals in districts receiving high amounts of aid are no more likely to view local leaders as corrupt than those in districts receiving lower amounts of aid. However, higher levels of aid are associated with more experiences of bribe solicitation. We also find evidence that aid channeled through NGOs may …

Measuring Faculty Teaching Effectiveness Using Conditional Fixed Effects, Maia K. Linask, James Monks

Economics Faculty Publications

Using a dataset of 48 faculty members and 88 courses over 26 semesters, the authors estimate Student Evaluation of Teaching (SET) ratings that are conditional on a multitude of course, faculty, and student attributes. They find that ratings are lower for required courses and those where students report a lower prior level of interest. Controlling for these variables substantially alters the SET ratings for many instructors. The average absolute value of the difference between the faculty ratings controlling just for time effects and fully conditional ratings is nearly one-half of a standard deviation in the students’ rating of how much …

In Good Company: In The Future, Every Business Might Be Social, Christian Petroske

Social Space

It sounds like a riddle: why would Coca Cola, one of the biggest soft drinks companies in the world, be investing in a cause to empower fi ve million female entrepreneurs globally by 2020? It’s true:1 the Coca Cola Company’s initiative, called 5by20, is a forerunning example of a trend sweeping the corporate world. This trend is known by many names, the foremost of which are “shared value”, “inclusive business” or “sustainable business”. Their defi nitions can seem murky at fi rst, but these terms share a common thread. They sit at the intersection of economy and society, one that …

The Economic Case For Housing First, Athullya Biju Gopi

Theses - Graduate Programs in Economic Theory and Policy

The federal government’s entry into regulating the US housing sector began with reforms initiated during the New Deal. Given the effects of the Great Depression, the New Deal was the perfect opportunity to implement housing policies that would have ensured a more equitable distribution of housing to all households, especially those which are on the lower end of the income distribution. However, as we shall see, federal housing policy has historically followed a path that focuses purely on demand-side measures. This is not by accident; the housing sector has long been seen as a macro-stabilizer that can be used to …

A Data Analysis Of Fdi Inflows And Poverty Rates In Central America, Scott Jarrett

Empirical Economic Bulletin, An Undergraduate Journal

This paper investigates the impact of Foreign Direct Investment on poverty rates in Central America. The study incorporates a data analysis to discover whether FDI improves (lowers) poverty rates in Central American countries. this paper found that FDI Inflows did have significant and positive impacts on life expectancy and household consumption while having no impact on infant mortality rate.

Time Delay And Investment Decisions: Evidence From An Experiment In Tanzania, Plamen Nikolov

Economics Faculty Scholarship

Attitudes toward risk underlie virtually every important economic decision an individual makes. In this experimental study, I examine how introducing a time delay into the execution of an investment plan influences individuals’ risk preferences. The field experiment proceeded in three stages: a decision stage, an execution stage and a payout stage. At the outset, in the Decision Stage (Stage 1), each subject was asked to make an investment plan by splitting a monetary investment amount between a risky asset and a safe asset. Subjects were informed that the investment plans they made in the Decision Stage are binding and will …

Vocational Training Programs And Youth Labor Market Outcomes: Evidence From Nepal, S Chakravarty, M Lundberg, Plamen Nikolov, J Zenker

Economics Faculty Scholarship

Lack of skills is arguably one of the most important determinants of high levels of unemployment and poverty. In response, policymakers often initiate vocational training programs in efforts to enhance skill formation among the youth. Using a regression-discontinuity design, we examine a large youth training intervention in Nepal. We find, twelve months after the start of the training program, that the intervention generated an increase in non-farm employment of 10 percentage points (ITT estimates) and up to 31 percentage points for program compliers (LATE estimates). We also detect sizable gains in monthly earnings largely driven by women who start self-employment …

Bicycle Infrastructure And Traffic Congestion: Evidence From Dc's Capital Bikeshare, Timothy L. Hamilton, Casey J. Wichman

Economics Faculty Publications

This study explores the impact of bicycle-sharing infrastructure on urban transportation. We estimate a causal effect of the Capital Bikeshare on traffic congestion in the metropolitan Washington, D.C., area. We exploit a unique traffic dataset that is finely defined on a spatial and temporal scale. Our approach examines within-city commuting decisions as opposed to traffic patterns on major thruways. Empirical results suggest that the availability of a bikeshare reduces traffic congestion upwards of 4% within a neighborhood. In addition, we estimate heterogeneous treatment effects using panel quantile regression. Results indicate that the congestion-reducing impact of bikeshares is concentrated in highly …

Evaluating The Supplemental Nutrition Assistance Program: Its Effects On Reducing Poverty, 2012–16, Rhett J. Maiorana

Theses - Graduate Programs in Economic Theory and Policy

This study is based on the continuing effort to broaden and improve our understanding of the antipoverty effects of SNAP. The purpose of has been to provide estimates of the lower and upper bound effects of accounting for SNAP benefits on the poverty headcount, gap, and severity indices from 2012 to 2016, thereby (1) extending previous research by Tiehen, Jolliffe, and Smeeding (2016), providing the most recent update to their work, and (2) contributing to the growing literature on the impact of SNAP on poverty under full participation, illustrating the full range of the program’s potential to reduce poverty. At …

Reforming Educator Compensation, Michael Podgursky

Center for Applied Economics

While compensation accounts for roughly 90 percent of K-12 instructional costs, there is little evidence of efficient or strategic design in these systems. Rigid salary schedules reward factors generally unrelated to effectiveness, induce field shortages, and encourage inequitable allocation of professional staff. Deferred compensation systems impose sharp penalties on mobility, promote early retirement and generate large unfunded liabilities. Serious attempts to bring greater efficiencies to K-12 spending and raising teacher quality must confront the dysfunctional compensation system.

Crafting Local Food Narratives With Immigrant Voices: Participatory Ethnography Among Somali Bantu Farmers In West Denver, Raymond Alexander Pang

Electronic Theses and Dissertations

In 2013, a non-profit, Re:Vision, established the Ubuntu Farm to work with the local Somali Bantu refugee population. It was supposed to improve access to fresh produce, offer educational opportunities, skill training and more. Early on in 2014, it became clear Re:Vision was not delivering on its promises, and by 2015 the farm had ceased to exist. Using participant observation, interviews with farm participants and staff and a review of publicly accessible financial documents, I argue that Re:Vision maintained a conflict of mission, which contributed to their farms' failings, despite their ability to grow plenty of vegetables. From there, I …

Great Powers Have Great Currencies: Popular Nationalist Discourse And China's Campaign To Internationalize The Renminbi, Michael Stephen Bartee

Electronic Theses and Dissertations

Why did the Chinese government begin promoting the internationalization of its currency, the renminbi, after the 2008 global financial crisis? Only a few years earlier, Beijing balked at U.S. demands to reform its currency regime, which would require dismantling many of the country's long-preferred tools for promoting growth and maintaining domestic stability. Similar concerns about the dilution of monetary policy independence motivated previous rising economies Germany and Japan to proactively discourage the internationalization of their currencies. While China's central bank had long explored promoting greater international use of the renminbi, and such a policy would generate some benefits for China, …

Higher Education Student Debt & Tuition Costs, K. Harrison Maloy Jr

Electronic Theses and Dissertations

U.S. higher education tuition costs have risen at nearly double the rate of inflation over the past forty years. In 2012, student loan delinquency rose to 12% and surpassed credit card delinquency rates as the top category of consumer debt delinquency. Meanwhile, recently enacted federal policies advocate for increased higher education accessibility, affordability and attainability, but simultaneously promote educational institutions to increase spending with funds fueled by student debt. The growth of $136.8 billion in student loan delinquency has triggered decreasing participation in non-student debt markets by people with student loan debt. Fortunately, Americans continue to enroll in colleges at …

Tides Of Cooperation: The Ebb And Flow Of Regional Cooperation In Latin America, Amaleia E. Kolovos

Electronic Theses and Dissertations

Regional organizations have developed into important global actors as they negotiate inter-regional trade agreements, regulate economic policies, and develop international security communities. States have much to gain from such regional cooperation efforts particularly in emerging regions such as Latin America. Such gains can include increased trade and economic relations, enhanced security, attracting external investment, and increasing bargaining power at the international level. With such gains to be had, one might expect states in these regions to regularly cooperate in order to achieve their common interests. However, this is clearly not always the case. Latin America has struggled for decades with …

On The Consequences Of Having A Central Bank With An Open Market-Policy Transmission Mechanism When A Financial Crisis Hits. The Case Of The Federal Reserve And A Minskian Call For A Return To The Discount Window As The Primary Tool Of Monetary Policy, Domenico Viola

Theses - Graduate Programs in Economic Theory and Policy

This thesis analyzes the case of the Federal Reserve and highlights the negative consequences of having a Central Bank that normally prefers the open market rather than the discount window as the primary tool for the provisions of legal reserves to member financial institutions when usual private short-term credit markets get frozen. The two main negative consequences identified are from both a financial-economic efficiency point of view of the Central Bank’s lender of last resort primary responsibilities, and from a juridical-legal point of view with respect to the interpretative problems concerning the emergency liquidity Section 13(3) of the Federal Reserve …

Alternative Economic Indicators 2018-2019, Department Of Economics

Werner Sichel Lecture Series

The 2018-19 Sichel Lecture Series is directed by Professor James Hueng and is co-sponsored by the Department of Economics, College of Arts and Sciences, WMU, and the W.E. Upjohn Institute for Employment Research. All the lectures are free and open to the public. A light lunch reception will be available following each lecture. Speakers: Professor William Barnett “Getting it Wrong: How Faulty Monetary Statistics Undermine the Fed, the Financial System, and the Economy,” Asst. Professor Adam Storeygard “Measuring Economies from Space,” Scott Brave “A Closer Look at the Chicago Fed Activity Indexes and their Forecasting Applications," Dr. Chiara Scotti "Real …

Sdsu Compared To Other Thirteen Universities In Research Expenditures, Abdalnaser Hesaien

Economics Graduate Students Plan B Research Projects

Research in SDSU is defined by the zeal to stay up to date with all necessary information that one would need to cope with day- to- day activities in different scopes of life. In any given moment SDSU offer a research-intensive environment that is not only possible to uphold but also able to provide a better way to adhere to information multiplication professionally. All efforts that are invested in the institution tries to give insights about the best ways to improve livelihood in South Dakota as the starting point that will impact the entire world. The most important plan that …

State Of The Northwest Arkansas Region 2018 Report, Mervin Jebaraj

State of the Northwest Arkansas Region Report

The State of the Northwest Arkansas Region Report is an annual publication, commissioned by the Northwest Arkansas Council, that serves as a tool for evaluating economic performance. In July 2018, the Northwest Arkansas Council created a new blueprint for development that outlines the peer regions and a strategic action agenda for 2018-2021. In this plan, the performance of Northwest Arkansas is benchmarked with other contemporary, high-performing regions, namely Austin, Des Moines, Madison, Durham-Chapel Hill, Raleigh and Provo-Orem. The 2018 State of the Region Report compares Northwest Arkansas with these geographies in the areas of gross domestic product, employment, unemployment, establishment …

Willingness-To-Pay For Attributes Of Health Care Facilities In Rural Kentucky, Emmanuel Owusu-Amankwah

Theses and Dissertations--Agricultural Economics

Background: As rural hospitals in Kentucky face insolvency, stakeholders must assess the value of rural hospitals as well as alternatives such as rural clinics and private physician offices.

Objective: To identify the value of attributes of healthcare facilities based on Kentucky’s rural residents’ willingness-to-pay (WTP).

Methods: A survey instrument was created and distributed to ten counties in rural Kentucky. A conditional logit model was used to obtain baseline values and then a mixed logit model was used to address heterogeneity among consumers in estimating WTP. WTP values incorporated respondents’ demographic characteristics and their health status from self-reported frequency of use …

Capitalization Of Green Space And Water Quality Into Residential Housing Values, Willie B. Bedell

Theses and Dissertations--Agricultural Economics

This thesis investigates how proximity to parks, historic district designations, and water quality are valued at residential housing prices. The first essay argues that the negative influences of parks and historic districts, if not noticed, could promote negative externalities and unincentivized investments. I find a negative impact on housing values for a close proximity to a park, suggesting disamenities in park features. When the boundary discontinuity and park amenities are considered, I find a positive valuation for a park. Overall, these results imply a mixed influence of parks on homeowners. From the historic district standpoint, I find a positive valuation …

Effect Of Climate Change On Economic Growth In At Risk African Nations, Bryan Gilbert

Empirical Economic Bulletin, An Undergraduate Journal

This paper looks at the possible negative effects climate change could create on the growth of at risk African Nations. This study takes known climate change metrics and puts them into an economic growth model to shine light on environmental issues becoming more prevalent in our world today. Climate change indicators will be modelled alongside economic growth indicators to paint a picture of the positive or negative effect that could slow African Nations’ Economies now and into the future. The results of this regression are predicted to be that the climate change indicators will have a negative effect on economic …

Official Development Assistance And Social Capitals Impact On Economic Growth, Thomas D. Hanley

Empirical Economic Bulletin, An Undergraduate Journal

This study intends to increase the understanding of the impact social capital has on economic growth in countries that receive official development assistance. By analyzing these relationships further, it may be possible to develop strategies to increase economic growth and prosperity in these regions. The results show that economic growth is not contingent upon high levels of trust but trust rich environments conditions the effectiveness of oda in stimulating growth.

What Contributes To Winning Gold? A Cross-Section Analysis Of Olympic Success, Shannon Gay

Empirical Economic Bulletin, An Undergraduate Journal

This paper investigates the relationship between Olympic success and economic factors, does it take more than just athleticism to win a medal at the Summer Olympic Games? This study is a cross-section analysis of eighty-three countries at the 2016 Rio Summer Olympics who won at least one medal, using share of medals won at the 2016 Summer Olympic Games as the dependent variable and factors including gross domestic product, country population, life expectancy, HDI, host country status, political environment, and past Olympic performance as the independent variables. The results show that there is a positive and statistically significant relationship between …