Economics Commons^™

The Economic Impact Of The 2018 Conference Usa Baseball Tournament On The Mississippi Gulf Coast, Jonathan Brent

Honors Theses

This study aims to measure the economic impact of the 2018 Conference USA Baseball Tournament on the Mississippi Gulf Coast compared to holding the college sporting event at the University of Southern Mississippi in Hattiesburg, Mississippi. Visitor spending and demographic data was collected through random intercept surveys outside MGM Park in Biloxi, Mississippi. The Economic Modeling LLC (EMSI) Input-Output model was used to determine the economic and fiscal impact of visitor spending during the sporting event. The impact to the six-county coastal region and the state of Mississippi as a whole was analyzed. The EMSI model projected an increase of …

Does Simple Information Provision Lead To More Diverse Classrooms? Evidence From A Field Experiment On Undergraduate Economics, Amanda Bayer, Syon Bhanot, F. Lozano

Economics Faculty Works

This paper reports the results of a field experiment involving 2,710 students across nine US colleges, in which faculty provided incoming women and URM students with information about economics. We randomly assign students to one of three conditions: a control (no email messaging), a Welcome treatment (two emails encouraging students to consider enrolling in economics courses), and a Welcome+Info treatment (which added information showcasing the diversity of research and researchers within economics). The Welcome+Info treatment increases the likelihood of completing an economics course in the first semester of college by 3.0 percentage points, nearly 20 percent of the base rate.

The Impact Of Immigration On Financial Markets, Jesse Baker

All Graduate Plan B and other Reports, Spring 1920 to Spring 2023

This paper studies the impact of immigration policy on financial markets. I estimate the cumulative abnormal returns surrounding two events the effective start date of the Immigration Act of 1990 and the implementation of the Temporary Protected Status (TPS) of Nicaragua and Honduras in 1999. Focusing on agriculture, construction, and manufacturing firms, I find that the CARs surrounding the events are indeed positive and significant, suggesting that the market anticipated growth among industries that are likely to hire Central American immigrants.

Firm Leverage And Performance, Zongbin Li

All Graduate Plan B and other Reports, Spring 1920 to Spring 2023

This paper examines the relationship between deviations from firm leverage and firm performance over time. Our results indicate that overlevered and underlevered firms both adversely affect corporate profitability. We use the 1987 tax cut as an event study, to reduce endogeneity concerns.

Economic Base In Emerging Economies: Estimating Regional Multipliers In Ecuador, Justin Perry

All Graduate Plan B and other Reports, Spring 1920 to Spring 2023

When a subnational input-output matrix is unavailable, a non-governmental organization (NGO) may turn to a shortcut method in order to project its indirect economic impact in a region. The location quotient is the most common choice in developed nations, but has serious theoretical flaws in a developing-nation context. We explore the minimum requirements method as a cost-effective yet robust method to project the impact of an NGO in the Imbabura province of Ecuador. We find that every $1 of exogenous local spending stimulates between $1.32 and $1.62 of indirect economic impact in the region.

Objectively-Measured And Subjectively-Perceived Financial Literacy, Wenyi Lu

Dissertations, Theses, and Capstone Projects

This dissertation consists of three chapters on financial literacy. The chapters examine the impact of financial literacy on households’ risk tolerance and financial planning behavior. Financial literacy was assessed in two dimensions: an objectively-measured financial literacy score, and a subjectively-perceived financial literacy level.

The first chapter reviews the literature measuring financial literacy, and raises concerns about the prevalent state of financial-literacy overconfidence, which can lead to underprepared financial planning and irrational financial behavior. This chapter uses the survey data from the Financial Regulatory Authority’s (FINRAs) 2009, 2012 and 2015 National Financial Capability Study (NFCS) to explore how individual and regional …

Essays On Paid Family Leave In The United States, Beila R. Leboeuf

Dissertations, Theses, and Capstone Projects

Chapter 1: The first chapter is a literature survey that reviews the empirical research conducted on paid family leave in the United States. This chapter summarizes the documented benefits of paid family leave on women's labor force participation, leave usage, and children's health. Also, evidence that suggests potentially harmful effects of paid family leave is discussed. Possible directions for future research are explored, and the chapter concludes by considering the implementation of a national paid family leave program in the United States.

Chapter 2: The second chapter replicates and extends the results of Rossin-Slater et al. (2013). The purpose of …

Empirical Analysis Of China’S Exchange Rate And Macroeconomic Policy, Jia Ji

Dissertations, Theses, and Capstone Projects

This dissertation examines the effects of exchange rate and macroeconomic policy in China. It consists of three chapters. Chapter 1 explores the dynamics of monetary transmission mechanism. As China’s domestic financial markets deepen and develop further toward a market-based system, the country’s monetary policy transmission should continue to improve in the sense that the policy instrument’s influence on economic conditions increases in magnitude and stabilized across time. Using a short-term key interest rate as a standard monetary policy tool and time-varying parameter techniques, this study empirically demonstrates that China’s monetary policy framework is in the midst of transitioning to a …

Cultural Heritage Preservation In The Context Of Climate Change Adaptation Or Relocation: Barbuda As A Case Study, Martha B. Lerski

Dissertations, Theses, and Capstone Projects

This case study introduces an arts camp methodology of engaging communities in identifying their key cultural heritage features, thus serving as a meta study. It presents original research based on field studies on the climate-vulnerable Caribbean island of Barbuda during 2017 and 2018. Its Valued Cultural Elements survey, enabling precise identification of key tangible and intangible art forms and biocultural practices, may serve as a basis for further studies. Such approaches may facilitate future research or planning as climate-vulnerable communities harness Local or Indigenous Knowledge for purposes of biocultural heritage preservation, or towards adaptation or relocation. I report on findings …

Return Predictability: The Dual Signaling Hypothesis Of Stock Splits, Ahmed Elnahas, Lei Gao, Ghada Ismail

School of Economics and Finance Faculty Publications

This paper aims to differentiate between optimistic splits and overoptimistic/opportunistic splits. Although markets do not distinguish between these two groups at the split announcement time, optimistic (over-optimistic/opportunistic) splits precede positive (negative) long-term buy-and-hold abnormal returns. Using the calendar month portfolio approach, we show that the zero-investment, ex-ante identifiable, and fully implementable trading strategy proposed in this paper can generate economically and statistically significant positive abnormal returns. Our findings indicate that pre-split earnings management and how it relates to managers’ incentives, is an omitted variable in the studies of post-split long-term abnormal returns.

Deception: The Role Of Uncertain Consequences, Subhasish Dugar, Arnab Mitra, Quazi Shahriar

Economics Faculty Publications and Presentations

We study how decisions to lie extend to risky environments. We provide experimental evidence from a sender-receiver game where there is uncertainty over the amount by which a sender's lie reduces its receiver's payoff, which is known only to potential liar. Even though all reduction amounts are equiprobable, ex-post beliefs elicited from senders suggest that, unlike truth-tellers, most liars underestimate the extent of the actual reduction in the receiver's payoff and appear to exploit this self-serving bias, resulting in substantially more lying relative to a baseline treatment without the uncertainty. Subsequent treatments confirm the bias by either providing additional evidence …

A Better Economy By "Design", Lawrence Chong

Asian Management Insights

The air was still, and I was going nowhere with the session until I asked the participants about their kids instead of talking more about the bank. The conversations soon turned chirpy as the mothers in the group spoke over one another, sharing their hearts out about their children and their hopes for them. I felt I had unlocked something new, even though this should have been obvious as this is a very family-oriented country. This experience was part of our transformation project for a Southeast Asian bank that would reshape its digital, brand and customer engagement strategy through a …

A Systematic Assessment Of Socio-Economic Impacts Of Prolonged Episodic Volcano Crises, Justin Peers

Electronic Theses and Dissertations

Uncertainty surrounding volcanic activity can lead to socio-economic crises with or without an eruption as demonstrated by the post-1978 response to unrest of Long Valley Caldera (LVC), CA. Extensive research in physical sciences provides a foundation on which to assess direct impacts of hazards, but fewer resources have been dedicated towards understanding human responses to volcanic risk. To evaluate natural hazard risk issues at LVC, a multi-hazard, mail-based, household survey was conducted to compare perceptions of volcanic, seismic, and wildfire hazards. Impacts of volcanic activity on housing prices and businesses were examined at the county-level for three volcanoes with a …

Essays In Health Economics, Chiao-Han Lin

Dissertations, Theses, and Capstone Projects

This dissertation consists of three essays that examine health care and behavioral issues among young adults in the United States.

Chapter 1 Health Care Issues in the United States

This chapter provides an overview of health care issues in the United States. There are three major problems: high cost of health care, gaps in access, and inadequate health levels. The cost and growth of health care at a rapid rate may due to the complex nature of the U.S. health care system and consumer-driven technology improvement. As health care costs soar, many individuals have been priced out of the health …

Functional Coefficient Panel Modeling With Communal Smoothing Covariates, Peter C.B. Phillips, Ying Wang

Cowles Foundation Discussion Papers

Behavior at the individual level in panels or at the station level in spatial models is often influenced by aspects of the system in aggregate. In particular, the nature of the interaction between individual-specific explanatory variables and an individual dependent variable may be affected by `global’ variables that are relevant in decision making and shared communally by all individuals in the sample. To capture such behavioral features, we employ a functional coefficient panel model in which certain communal covariates may jointly influence panel interactions by means of their impact on the model coefficients. Two classes of estimation procedures are proposed, …

Boosting The Hodrick-Prescott Filter, Peter C.B. Phillips, Zhentao Shi

Cowles Foundation Discussion Papers

The Hodrick-Prescott (HP) filter is one of the most widely used econometric methods in applied macroeconomic research. The technique is nonparametric and seeks to decompose a time series into a trend and a cyclical component unaided by economic theory or prior trend specification. Like all nonparametric methods, the HP filter depends critically on a tuning parameter that controls the degree of smoothing. Yet in contrast to modern nonparametric methods and applied work with these procedures, empirical practice with the HP filter almost universally relies on standard settings for the tuning parameter that have been suggested largely by experimentation with macroeconomic …

The Causal Effect Of Service Satisfaction On Customer Loyalty, Guofang Huang, K. Sudhir

Cowles Foundation Discussion Papers

We propose an instrumental-variable (IV) approach to estimate the causal effect of service satisfaction on customer loyalty, by exploiting a common source of randomness in the assignment of service employees to customers in service queues. Our approach can be applied at no incremental cost by using routine repeated cross-sectional customer survey data collected by firms. The IV approach addresses multiple sources of biases that pose challenges in estimating the causal effect using cross-sectional data: (i) the upward bias from common-method variance due to the joint measurement of service satisfaction and loyalty intent in surveys; (ii) the attenuation bias caused by …

Attribute Sentiment Scoring With Online Text Reviews : Accounting For Language Structure And Attribute Self-Selection, Ishita Chakraborty, Minkyung Kim, K. Sudhir

Cowles Foundation Discussion Papers

The authors address two novel and significant challenges in using online text reviews to obtain attribute level ratings. First, they introduce the problem of inferring attribute level sentiment from text data to the marketing literature and develop a deep learning model to address it. While extant bag of words based topic models are fairly good at attribute discovery based on frequency of word or phrase occurrences, associating sentiments to attributes requires exploiting the spatial and sequential structure of language. Second, they illustrate how to correct for attribute self-selection—reviewers choose the subset of attributes to write about—in metrics of attribute level …

Necessary And Sufficient Conditions For Determinacy Of Asymptotically Stationary Equilibria In Olg Models, Alexander Gorokhovsky, Anna Rubinchik

Cowles Foundation Discussion Papers

We propose a criterion for determining whether a local policy analysis can be made in a given equilibrium in an overlapping generations model. The criterion can be applied to models with infinite past and future as well as those with a truncated past. The equilibrium is not necessarily a steady state; for example, demographic and type composition of the population or individuals’ endowments can change over time. However, asymptotically, the equilibrium should be stationary. The two limiting stationary paths at either end of the timeline do not have to be the same. If they are, conditions for local uniqueness are …

Borderplex Business Barometer, Volume 3, Number 5, Thomas M. Fullerton Jr., Aaron Nazarian, Steven L. Fullerton, Sergio Olivas

Border Region Modeling Project

No abstract provided.

Three Essays On Information Diffusion And Market Friction, Li Guo

Dissertations and Theses Collection (Open Access)

How markets impound information into asset prices is one of the most important concerns of financial economics. Due to behavioural bias and transaction friction, information could be mispriced in the real world, thus driving market anomalies and return predictability of behavioural factors. My dissertation contributes to the literature by investigating how information can be quantified, acquired, disseminated and priced in the financial market with the existence of market frictions.

In Chapter 2, we propose an efficient method based on machine learning and textual analysis to quantify cross industry news and shed light on how news travels across different industries. The …

Three Essays On Nonstationary Time-Series Analysis And Network Dynamics, Yubo Tao

Dissertations and Theses Collection (Open Access)

My dissertation consists of three essays which contribute new theoretical results to nonstationary time-series analysis and network dynamics.

Chapter 2 examines the limit properties of information criteria (such as AIC, BIC, HQIC) for distinguishing between the unit root model and the various kinds of explosive models. The explosive models include the local-to-unit-root model, the mildly explosive model and the regular explosive model. Initial conditions with different orders of magnitude are considered. Both the OLS estimator and the indirect inference estimator are studied. It is found that BIC and HQIC, but not AIC, consistently select the unit root model when data …

The Impact Of Immigrants’ Entries On Destination Countries’ Economies, Qingyu Zhu

Economics Honors Projects

Whether immigration brings benefit or harm has always been controversial. In this paper, I develop a Real Business Cycle model with a search-based labor market to examine how an unexpected influx of immigrants impacts destination economies. I divide households and firms into two types, namely natives and immigrants, and conduct a general equilibrium analysis. The simulated results suggest that even though natives face a temporary rise in unemployment after the shock, recovery occurs quickly, and levels of aggregate output and consumption become higher.

The Gretzky Externality: An Analysis Of The Superstar Effect And Age Curves In The National Hockey League, Jed P. Buchholz

Economics Honors Projects

No abstract provided.

Model-Free Implied Volatility Under Jump-Diffusion Models, Seungmook Choi, Hongtao Yang

Department of Finance Faculty Research

The model-free implied volatility (MFIVol) is intended to measure the variability of underlying asset price on which options are written. Analytically, however, it does not measure exactly the variability under jump diffusion. Our extensive empirical study suggests that the approximation error can be as much as about 3%--5% although most samples over the data period exhibit less than 1% errors. Even with the non-negligible errors, the MFIVol may be still considered a valid volatility measure from the perspective of risk-neutral return density, in the sense that it is bounded by the two variability measures as well as reflecting the shape …

“Because I Care I Risk”: How Ceo Free Market Orientation Affects The Extent And Type Of Income Smoothing, Mirzokhidjon S. Abdurakhmonov

Graduate Theses and Dissertations

The executive political ideology literature suffers from a lack of conceptual clarity because social and economic issues are conflated. This has created an inconsistency in empirical findings with the theoretical predictions of the political ideology construct. In this dissertation, I identify a distinct economic component, free market orientation, based on support for economic individualism, competition, and property rights to reconcile these inconsistencies. Specifically, I argue that these indicators of free market orientation will have a unique impact on the way executives run their organizations. I develop a novel scale that measures CEO economic values that I term free market orientation …

Have Academic Libraries Overcome The Gender Wage Gap? An Analysis Of Gender Pay Inequality, Quinn Galbraith, Adam Callister, Heather Kelley

Faculty Publications

This report draws upon two data sets to examine the gender wage gap among member institutions of the Association of Research Libraries (ARL). The first data set consists of 35 years of salary survey data collected by ARL and is used to provide trend data on the gender wage gap from 1980 to 2014 as well as present an in-depth look at the wage gap in 2014. After controlling for variables such as years of experience, position, and type of library in the 2014 ARL Salary Survey data, results revealed that women on average made approximately 2 percent less than …

How Can Occupational Licensing Reforms Improve Access To Dental Care?, Jacob M. Caldwell, Brian Isom

Undergraduate Honors Capstone Projects

Occupational licensing laws have a large effect on the American economy and requirements affect all levels of professional work, from hairdressers and plumbers to doctors and lawyers.Those laws vary by state and exist to protect consumers from asymmetric information problems. Yet a growing body of literature finds that occupational licensing raises costs for consumers without necessarily raising the quality of service.

The dental field is one such sector of employment that commonly is licensed. Oral health is an important indicator of overall individual health and general wellbeing. Unfortunately, consumers lack access to dental care in many parts of the United …

Essays On The Equity Premium Puzzle, Oren Shmuel

Dissertations, Theses, and Capstone Projects

The equity premium puzzle emanates from the inability of the theoretical models to explain the empirically observed high equity premium (when the average stock returns so much higher than the average bond returns). The puzzle is that in order to reconcile the much higher return on stock compared to the return on government bonds in the United States, individuals must have very high (unrealistic) risk aversion according to standard economics models.

Mehra and Prescott (1985) [35] found that for high values of relative risk aversion coefficients (=RRA), and a given small variance of the growth rate in the per capita …

Off The Farm: An Evaluation Of Non-Farm Earnings And Employment On Poverty Alleviation In Rural Nicaragua, Magaly Vanessa Saenz Somarriba

Graduate Masters Theses

In Nicaragua, poverty disproportionately affects the rural population. Over the last two decades, rural inhabitants have increased their participation in the Rural Non-Farm (RNF) sector. This study uses four waves of data from the Living Standard Measurement Survey (LSMS) between 2001 and 2014 to test whether the transition to the RNF sector decreases poverty rates and increases consumption. To account for the endogeneity of RNF participation and measures of well-being like consumption, I use an instrumental variables approach. I use a policy enacted in 2006 that induced plausibly exogenous variation in electrification rates over the same period to instrument for …