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Full-Text Articles in Econometrics

Determinants Of Healthcare Expenditure In The Organization For Economic Cooperation (Oecd) Countries, Harry Waterton Jan 2014

Determinants Of Healthcare Expenditure In The Organization For Economic Cooperation (Oecd) Countries, Harry Waterton

Empirical Economic Bulletin, An Undergraduate Journal

This paper investigates the factors that determine the expenditure in healthcare within the Organization for Economic Co-Operation and Development (OECD) countries. The study will contain and be based around a regression model, using healthcare expenditure per capita as the dependent variable, for 10 of the 34 OECD countries. The data that will be analyzed ranges from 2000 to 2010 using the panel data analysis format, and will be extracted from the World Bank and OECD statistics websites.


The Relationship Between Crime And Unemployment In China, Kuan Lu Jan 2014

The Relationship Between Crime And Unemployment In China, Kuan Lu

Empirical Economic Bulletin, An Undergraduate Journal

This paper investigates the relationship between crime and unemployment in China. The study incorporates the information, including data of the current crime rate, unemployment rate, income level, GDP growth, Gini index and urbanization rate, into a linear regression model to examine the influence of the unemployment rate on crime in China. The crime in China is measured by crime rate, which includes six specific types of crimes: homicide, assault, rape, robbery, theft and burglary. The results show that there is a positive relationship between crime and unemployment in China. When there is an increase in the unemployment rate, crime rate …


The Impact Of Fdi And Trade Openness On The Economic Growth Of The Transition Economies, Regina Castro Jan 2014

The Impact Of Fdi And Trade Openness On The Economic Growth Of The Transition Economies, Regina Castro

Empirical Economic Bulletin, An Undergraduate Journal

This paper examines effects of FDI inflows and trade openness on economic growth of three former Soviet Union economies: Kazakhstan, Armenia and Ukraine. The study uses a regression model that incorporates data sets for the period from 1992 to 2011 obtained from the World Bank. The regression result indicates that FDI inflows are positively correlated to the economic growth of the transition economies. However, impact of FDI would vary for each specific country depending on the degree of capacity of the host country to use FDI efficiently. Trade openness has also a positive effect on the real GDP per capita …


The Predictive Power Of Commodity Futures Prices On South American Equity Markets, Aadithyan Manivannan Jan 2014

The Predictive Power Of Commodity Futures Prices On South American Equity Markets, Aadithyan Manivannan

Empirical Economic Bulletin, An Undergraduate Journal

The purpose of this paper is to examine the relationship between the futures United States futures market the returns on the South American stock market. In particular the paper focuses on three key commodities—industrial sugar, copper, and coffee. The study looks into methods to isolate the effect of the United States commodity market from the returns of the equity exchanges in both the United States and South America. Once isolated, the relationship between the selected commodities and South American stock market returns can be estimated through quantitative analysis.


Money Is More Than Memory, Maria Bigoni, Gabriele Camera, Marco Casari Jan 2014

Money Is More Than Memory, Maria Bigoni, Gabriele Camera, Marco Casari

ESI Working Papers

Impersonal exchange is the hallmark of an advanced society. One key institution for impersonal exchange is money, which economic theory considers just a primitive arrangement for monitoring past conduct in society. If so, then a public record of past actions—or memory—supersedes the function performed by money. This intriguing theoretical postulate remains untested. In an experiment, we show that the suggested functional equality between money and memory does not translate into an empirical equivalence. Monetary systems perform a richer set of functions than just revealing past behaviors, which proves to be crucial in promoting large-scale cooperation.


Skill Ontogeny Among Tsimane Forager-Horticulturalists, Eric Schniter, Michael Gurven, Hillard Kaplan, Nathaniel Wilcox, Paul Hooper Jan 2014

Skill Ontogeny Among Tsimane Forager-Horticulturalists, Eric Schniter, Michael Gurven, Hillard Kaplan, Nathaniel Wilcox, Paul Hooper

ESI Working Papers

No abstract provided.


Experimenting With Behavior Based Pricing, Zuzana Brokesova, Cary Deck, Jana Peliova Jan 2014

Experimenting With Behavior Based Pricing, Zuzana Brokesova, Cary Deck, Jana Peliova

ESI Working Papers

Many purchases of differentiated goods are repeated, giving sellers the opportunity to engage in price discrimination based upon the shopper’s previous behavior by either offering loyalty discounts to repeat buyers or introductory rates to new customers. Recent theoretical work suggests that loyalty discounts are likely to be implemented when customer preferences are not stationary and sellers can pre-commit to prices for repeat buyers, but otherwise repeat buyers can be expected to pay the same or more than new buyers. This paper reports the results of a series of controlled laboratory experiments designed to empirically test the impact of these factors …


People Do Not Discount Heavily In Strategic Settings, But They Believe Others Do, Cary Deck, Salar Jahedi Jan 2014

People Do Not Discount Heavily In Strategic Settings, But They Believe Others Do, Cary Deck, Salar Jahedi

ESI Working Papers

Several studies have shown that people greatly discount future bene ts and costs. However, most of the direct laboratory evidence of this phenomenon has focused on individual choice experiments. This paper investigates the degree to which the timing of payments a ects behavior in four commonly studies strategic settings: a Prisoner's Dilemma game, a Stag-Hunt game, a First Price Auction and a Second Price Auction. In all four settings, a two week delay in payo s has a comparable e ect to a 20% reduc- tion in current payo s. A follow-up study suggests that it is an individual's strategic …


Single- And Double-Elimination All-Pay Tournaments, Cary Deck, Erik O. Kimbrough Jan 2014

Single- And Double-Elimination All-Pay Tournaments, Cary Deck, Erik O. Kimbrough

ESI Working Papers

Tournaments consisting of iterative matches are a common mechanism for determining how to allocate a prize. While participants are focused on their own outcomes, tournament organizers often have objectives such as maximizing the total investment or effort by the participants over the course of the tournament. For this reason it is important for organizers to understand the behavioral as well as the theoretical properties of different tournament structures. Given that laboratory experiments have consistently found high levels of overbidding in contests, one might suspect that double-elimination tournaments would generate substantially more total investment than single-elimination tournaments despite the two types …


Accounting Standards And Financial Market Stability: An Experimental Examination, Shengle Lin, Glenn Pfeiffer, David Porter Jan 2014

Accounting Standards And Financial Market Stability: An Experimental Examination, Shengle Lin, Glenn Pfeiffer, David Porter

ESI Working Papers

We examine the effect on asset mispricing of different accounting methods in an experimental asset market characterized by bubbles and crashes. In particular, we study three alternative asset value reporting treatments: (1) Fair Value (also known as Mark-to-Market – M2M), (2) Historical Cost (HC) and (3) Marked to Fundamental Value (M2F). In addition, each of these treatments is replicated in two different financial leverage conditions. In the first condition (No Loan) traders must purchase assets from their available cash balances without the option of borrowing. In the second condition, (Loan), traders are given the option of taking out loans based …


Application Of Sgt Family Distributions In Quasi Maximum Likelihood Estimation, Samuel Dodini Oct 2013

Application Of Sgt Family Distributions In Quasi Maximum Likelihood Estimation, Samuel Dodini

Undergraduate Economic Review

In the classical normal linear regression model, ordinary least squares estimators (OLS) will be consistent and achieve the Cramer-Rao lower bound for any unbiased estimators. This paper examines the impact of several other error distributions on the properties of the OLS estimators. Several different types of example data commonly available to students and researchers in economics are used to illustrate the impact of nonnormality, because, in application, the assumption of normality may not hold in empirical testing. Using maximum likelihood, I demonstrate that flexible probability density functions better model the residual distribution of different types of data, which suggests improvements …


Different Uses Of Microfinance Among Conventional And Islamic Borrowers: Evidence From Jordan, Ngan Bui May 2013

Different Uses Of Microfinance Among Conventional And Islamic Borrowers: Evidence From Jordan, Ngan Bui

Master's Theses

The paper focuses on investment decisions made by microfinance borrowers in Jordan. While there has been a lot of literature concentrating on the level of investment after credit access was made available, there has been very limited research on the impact of Islamic microfinance. The amount of literature comparing Islamic financing and its conventional counterpart is even more uncommon. This study will look at how conventional and Islamic borrowers differ in their decisions pertaining to business investments, home improvement projects and consumer durable goods. Results show that microfinance loan take-ups do lead to a higher probability of business investments. In …


The Existence Of State Dependence And Switching Costs In The Transition From Myspace To Facebook, Taryn M. Ohashi Apr 2013

The Existence Of State Dependence And Switching Costs In The Transition From Myspace To Facebook, Taryn M. Ohashi

Scripps Senior Theses

In this paper, I examine the existence and roles of state dependence and switching costs in the mass transition from MySpace to Facebook during the 2007-2008 time period. Using a dataset that compiles individual browsing behavior and a discrete multinomial logit model, I find precise, yet extremely small amounts of state dependence for users of only MySpace, of only Facebook, and users of both MySpace and Facebook. Positive state dependence directly implies the existence of switching costs for each firm. While there is an abundance of literature regarding switching costs in the brick and mortar setting with tangible products and …


The Relationship Between Inequality And Economic Growth: Evidence From Latin America, Amanda Gallagher Jan 2013

The Relationship Between Inequality And Economic Growth: Evidence From Latin America, Amanda Gallagher

Empirical Economic Bulletin, An Undergraduate Journal

This paper investigates the complex relationship between income inequality and economic growth in the Latin American region. This study conducts an empirical analysis using economic growth as the dependent variable, to determine the impact inequality has on economic growth. This study uses panel data from countries in Latin America over the time period of 1994-2009. The empirical results show a negative relationship between inequality and economic growth in the Latin American region. In addition, the level of government expenditure and taxation in the countries impact economic growth.


Carbon Emissions And Economic Growth: A Granger Causality Analysis Across 18 Countries, Rohan Vakil Jan 2013

Carbon Emissions And Economic Growth: A Granger Causality Analysis Across 18 Countries, Rohan Vakil

Empirical Economic Bulletin, An Undergraduate Journal

In this paper, an analysis of the relationship between Economic Growth and Carbon Emissions will be done using data from 9 Developed Countries, and 9 Less Developed Countries, as determined by the World Bank and United Nations. The countries analyzed will be Canada, France, Germany, Italy, Japan, Korea (South), Spain, United Kingdom, United States of America (9 Developed Countries); and India, Indonesia, Iran, Malaysia, Mexico, Brazil, Russian Federation, Saudi Arabia, and South Africa (9 Less Developed Countries). This research expands on the research done by Barassi and Spagnolo (2012), and Coondoo and Dinda (2003).


Determinants Of Fdi Inflows Into South America, Dario Castro Jan 2013

Determinants Of Fdi Inflows Into South America, Dario Castro

Empirical Economic Bulletin, An Undergraduate Journal

This study provides a panel data analysis of the key determinants of FDI as determined by the market such as market size, economic stability, trade liberalization, population, growth prospects, and exchange rates. Additionally, other variables such as physical infrastructure, quality of institutions and central bank exchange rate regimes. This paper seeks to show the major policy implications of variables that can be influenced through government intervention. The empirical research is conducted with focus on South American FDI inflows over the last three decades, due to the great presence of natural resources and cheap labor in the region which have contributed …


State Government Revenue: The Effects Of Legalized Gambling, Nicholas S. Malz Jan 2013

State Government Revenue: The Effects Of Legalized Gambling, Nicholas S. Malz

Empirical Economic Bulletin, An Undergraduate Journal

When facing financial constrictions, legalized gambling is an attractive alternative for state governments. Most empirical evidence on this topic only examines a single industry in a particular state. This study involves a general analysis of three different forms of gambling across all 50 states. The data is comprised of the gambling volume and state government revenues for all 50 states from 2000 to 2010. From the research, lotteries and horse racing typically increase state revenues, while casinos tend to decrease state revenues.


The Causality Between Budget Deficits And Interest Rates In Asean Countries, Janhavi Nerurkar Jan 2013

The Causality Between Budget Deficits And Interest Rates In Asean Countries, Janhavi Nerurkar

Empirical Economic Bulletin, An Undergraduate Journal

This paper investigates the correlation between budget deficits and interest rates across countries of varying income levels across Southeast Asia using the Granger-causality econometric model. It consists of a time series analysis of budget deficits (local currency unit) and real interest rates in Indonesia, Malaysia, Thailand, the Philippines and Singapore from 1990 to 2011.This analysis concludes that budget deficits and interest rates do not cause one another in the countries under consideration.


The Effect Of Macroeconomic Variables On Domestic Homeownership Rates, Patrick Graydon Jan 2013

The Effect Of Macroeconomic Variables On Domestic Homeownership Rates, Patrick Graydon

Empirical Economic Bulletin, An Undergraduate Journal

This paper investigates how various macroeconomic variables affect homeownership rates in the United States. Some of the variables explored in this study include interest rates, unemployment rate, average household income, inflation rate, GDP, population, and residential construction. The paper uses quarterly data from quarter one of 2000 to quarter three of 2012. The results show the economic indicators that are closely correlated with the rate of homeownership.


An Empirical Study Of Salary Discrimination In Professional Basketball, Joshua Reynolds Jan 2013

An Empirical Study Of Salary Discrimination In Professional Basketball, Joshua Reynolds

Empirical Economic Bulletin, An Undergraduate Journal

This paper investigates the racial differences in salaries amongst professional basketball players during the 2011-2012 season. Prior studies from the 1980s and 1990s show that white and black players have earned a comparable mean salary, based on performance variables and other player characteristics. However these studies have shown, that taking race in as a factor when running regressions of the data, preference exists towards white player salaries. This paper looks to see if the recent shift in demographic makeup of the NBA prevalent during the late 1990s and 2000s has led to a more equitable distribution of salaries based on …


Education And Wellbeing Of A Country, Michael Arons Jan 2013

Education And Wellbeing Of A Country, Michael Arons

Empirical Economic Bulletin, An Undergraduate Journal

This paper examines education, employment sectors and GDP per capita. The study examines which aspects of education math, reading, or science is more important to an economy, and how they affect different employment sectors. The model will attempt to show if educational subject scores have an impact in different sectors of the economy. The main function of this model is to decipher how education affects the wellbeing of a country. The results will attempt to discern whether education impacts employment in various sectors, and conversely GDP per capita.


The Relationship Between The Stock Market And Economic Indicators: Evidence From Singapore And Hong Kong, Kahini Dalal Jan 2013

The Relationship Between The Stock Market And Economic Indicators: Evidence From Singapore And Hong Kong, Kahini Dalal

Empirical Economic Bulletin, An Undergraduate Journal

This paper examines the relationship between the stock markets and economic variables of the selected countries: Singapore and Hong Kong. The quarterly data collected for Gross Domestic Product, Foreign Exchange Rates, Inflation and Current Account Balance, as well as Stock Prices ranges from January 2002 to December 2012. The analysis is focused on the results of the Cointegration and Granger Causality tests to estimate the relationship of the various economic indicators and the stock market indices. This estimation enables to assess whether the stock market index of the respective country is a good representation of the economic health of the …


Institutional Quality, Income Inequality, And Economic Growth In Latin American Countries, Courtney Pomer Jan 2013

Institutional Quality, Income Inequality, And Economic Growth In Latin American Countries, Courtney Pomer

Empirical Economic Bulletin, An Undergraduate Journal

This paper investigates the possibility of the institutional quality of a country having an effect on income inequality and economic growth in Latin American Countries. The study incorporates the gini variable and growth rates of GDP in each country to examine the influence of corruption on the various countries throughout Latin America. Looking at previous research it has been found that corruption is positively correlated with income inequality and negatively correlated with economic growth. The variable for corruption in this study however measures the control of corruption in each country, so we will be looking at the institutional quality and …


When Parity Promotes Peace: Resolving Conflict Between Asymmetric Agents, Erik O. Kimbrough, Roman M. Sheremeta, Timothy W. Shields Jan 2013

When Parity Promotes Peace: Resolving Conflict Between Asymmetric Agents, Erik O. Kimbrough, Roman M. Sheremeta, Timothy W. Shields

ESI Working Papers

Due to the high costs of conflict both in theory and practice, we examine and experimentally test the conditions under which conflict between asymmetric agents can be resolved. We model conflict as a two-agent rent-seeking contest for an indivisible prize. Before conflict arises, both agents may agree to allocate the prize by fair coin flip to avoid the costs of conflict. The model predicts that “parity promotes peace”: in the pure-strategy equilibrium, agents with relatively symmetric conflict capabilities agree to resolve the conflict by using a random device; however, with sufficiently asymmetric capabilities, conflicts are unavoidable because the stronger agent …


Cheap Talk With Two Audiences: An Experiment, Mikhail Drugov, Roberto Hérnan-Gonzalez, Praveen Kujal, Marta Troya Martinez Jan 2013

Cheap Talk With Two Audiences: An Experiment, Mikhail Drugov, Roberto Hérnan-Gonzalez, Praveen Kujal, Marta Troya Martinez

ESI Working Papers

In this paper we experimentally test strategic information transmission between one informed and two uninformed agents in a cheap-talk game. We find evidence of the "disciplining" effect of public communication as compared to private; however, it is much weaker than predicted by the theory. Adding a second receiver naturally increases the complexity of strategic thinking when communication is public. Using the level-k model, we exploit the within subject design to show how individuals decrease their level-k in public communication. Surprisingly, we find that individuals become more sophisticated when they communicate privately with two receivers rather than one.


Do Prediction Markets Aid Defenders In A Weak‐Link Contest?, Cary Deck, Li Hao, David Porter Jan 2013

Do Prediction Markets Aid Defenders In A Weak‐Link Contest?, Cary Deck, Li Hao, David Porter

ESI Working Papers

Laboratory experiments have demonstrated that prediction market prices weakly aggregate the disparate information of the traders about states (moves) of nature. However, in many practical applications one might want to predict the move of a strategic participant. This is particularly important in aggressor‐defender contests. This paper reports a set of such experiments where the defender may have the advantage of observing a prediction market on the aggressor’s action. The results of the experiments indicate that: the use of prediction markets does not increase the defender’s win rate; prediction markets contain reliable information regarding aggressors’ decisions, namely excess bid information, that …


Recalibrational Emotions And The Regulation Of Trust-Based Behaviors, Eric Schniter, Timothy W. Shields Jan 2013

Recalibrational Emotions And The Regulation Of Trust-Based Behaviors, Eric Schniter, Timothy W. Shields

ESI Working Papers

Though individuals differ in the degree to which they are predisposed to trust or act trustworthy, we theorize that trust-based behaviors are universally determined by the calibration of conflicting short- and long-sighted behavior regulation programs, and that these programs are calibrated by emotions experienced personally and interpersonally. In this chapter we review both the main-stream and evolutionary theories of emotions that philosophers, psychologists, and behavioral economists have based their work on and which can inform our understanding of trust-based behavior regulation. The standard paradigm for understanding emotions is based on mapping their positive and negative affect valence. While Valence Models …


Religious Identity And The Provision Of Public Goods: Evidence From The Indian Princely States, Latika Chaudhary, Jared Rubin Jan 2013

Religious Identity And The Provision Of Public Goods: Evidence From The Indian Princely States, Latika Chaudhary, Jared Rubin

ESI Working Papers

Religious identity affects preferences and can consequently affect policy. We propose two mechanisms through which a ruler's religious identity can affect public good provision: i) greater provision of goods in regions where more subjects are the ruler's co-religionists, and ii) lower provision of goods where private markets provide a substitute to the ruler's co-religionists. Empirically, identifying the causal effect of religious identity on policy is often impossible, since the religious identity of rulers rarely changes over time and place. We address this problem by exploiting the variation in the religion of rulers in the Indian Princely States in the early …


Commitment Problems In Conflict Resolution, Erik O. Kimbrough, Jared Rubin, Roman M. Sheremeta, Timothy W. Shields Jan 2013

Commitment Problems In Conflict Resolution, Erik O. Kimbrough, Jared Rubin, Roman M. Sheremeta, Timothy W. Shields

ESI Working Papers

Commitment problems are inherent to non-binding conflict resolution mechanisms, since an unsatisfied party can ignore the resolution and initiate conflict. We provide experimental evidence suggesting that even in the absence of binding contractual agreements individuals often avoid conflict by committing to the outcome of a conflict resolution mechanism. Commitment problems are mitigated to a greater extent for groups who opt-in to the conflict resolution mechanism, but only when opting-in is costly. Although conflict rates are higher when opting-in is costly than when it is free or exogenously imposed, commitment problems are greatly reduced amongst those groups who choose to opt-in.


Prediction Markets In The Laboratory, Cary Deck, David Porter Jan 2013

Prediction Markets In The Laboratory, Cary Deck, David Porter

ESI Working Papers

"The idea that there is wisdom from the collective has been forcefully described in “The Wisdom of the Crowds” by James Surowiecki, who argues that the aggregation of information in groups results in better decisions than those that are afforded by any single member of the group. Markets, like opinion polls, are one mechanism for aggregating disparate pieces of information. The aggregation properties of prices were first noted by Hayek (1945) and were formally examined by Muth (1961). In particular, Hayek argues that market prices serve the purpose of sharing and coordinating local and personal knowledge, while Muth shows that …