Economic Theory Commons^™

The Two-Way Mundlak Estimator, Badi H. Baltagi

Center for Policy Research

Mundlak (1978) shows that the fixed effects estimator is equivalent to the random effects estimator in the one-way error component model once the random individual effects are modeled as a linear function of all the averaged regressors over time. In the spirit of Mundlak, this paper shows that this result also holds for the two-way error component model once this individual and time effects are modeled as linear functions of all the averaged regressors across time and across individuals. Woolridge (2021) also shows that the two-way fixed effects estimator can be obtained as a pooled OLS with the regressors augmented …

Prediction In A Generalized Spatial Panel Data Model With Serial Correlation, Badi H. Baltagi, Long Liu

Center for Policy Research

This paper considers the generalized spatial panel data model with serial correlation proposed by Lee and Yu (2012) which encompasses a lot of the spatial panel data models considered in the literature, and derives the best linear unbiased predictor (BLUP) for that model. This in turn provides valuable BLUP for several spatial panel models as special cases.

Cointegration Of Matched Home Purchases And Rental Price Indexes –Evidence From Singapore, Badi Baltagi, Jing Li

Center for Policy Research

This paper exploits the homogeneity feature of the Singapore private residential condominium market and constructs matched home purchase price and rental price series using the repeated sales method. These matched series allow us to conduct time series analysis to examine the long-term present value relationship in the housing market. Three key findings are obtained. First, we fail to establish a cointegrating relationship between the home purchase price and rental price based on nationally estimated indexes. Second, area-specific indexes demonstrate strong cross-correlations, invalidating the use of first generation panel unit root tests that ignore these cross-correlations. Third, Pesaran’s CIPS test indicates …

Random Effects, Fixed Effects And Hausman’S Test For The Generalized Mixed Regressive Spatial Autoregressive Panel, Badi Baltagi, Long Liu

Center for Policy Research

This paper suggests random and fixed effects spatial two-stage least squares estimators for the generalized mixed regressive spatial autoregressive panel data model. This extends the generalized spatial panel model of Baltagi, Egger and Pfaffermayr (2013) by the inclusion of a spatial lag dependent variable. The estimation method utilizes the Generalized Moments method suggested by Kapoor, Kelejian, and Prucha (2007) for a spatial autoregressive panel data model. We derive the asymptotic distributions of these estimators and suggest a Hausman test a la Mutl and Pfaffermayr (2011) based on the difference between these estimators. Monte Carlo experiments are performed to investigate the …

Unrecognized States: A Theory Of Self-Determination And Foreign Influence, Kristina Buzard, Benjamin A.T. Graham, Ben Horne

Economics - All Scholarship

Unrecognized states are characterized by stagnant or crumbling economies and political instability, often serve as havens for illicit trade, and challenge the territorial sovereignty of recognized states. Their persistence is both intellectually puzzling and normatively problematic, but unrecognized statehood can be a remarkably stable outcome, persisting for decades. Our four-player model reveals that unrecognized statehood emerges as an equilibrium outcome when a patron state is willing and able to persistently invest resources to sustain it. We assess options available to actors in the international community who seek to impose their preferred outcomes in these disputes and find that, although sanctions …

The Effect Of Macroeconomic Conditions On Applications To Supplemental Security Income, Ke Xu

Renée Crown University Honors Thesis Projects - All

This study examines whether macroeconomic conditions affect applications to the Supplemental Security Income program. Specifically, we focus on the impact of unemployment rate on under age 18 applications. Using data from 2002 through 2012, we found that a higher unemployment rate is associated with an increased intention to apply for Supplemental Security Income benefits for both disabled adults and children. However, the effect is much higher for adults. These findings suggest that under age 18 applications of Supplemental Security Income is sensitive to the macroeconomic conditions.

Too Hot To Handle: Managing America’S Ecosystems In A Changing Climate, Riley Morin

Renée Crown University Honors Thesis Projects - All

For over 140 years, Americans and have enjoyed their national parks. In the national parks, nature and history come together to form uniquely public as well as enormously valuable landscapes. Today, America’s national parks are in danger of undergoing serious changes. Climate change is going to alter the physical characteristics of the national parks. Many of the parks have changed before, but this change will be the most dramatic. In this report I examine the historical and current mission of the National Park Service. I also examine the past and current valuation of the national parks by the American people. …

The Economic Theory Of Deregulation, Samuel D. Gass

Renée Crown University Honors Thesis Projects - All

One of the consequences of the financial crisis of 2008 was a renewed focus on the issue of deregulation. The broadly recognized connection between the greatest economic downturn since the Great Depression and the systematic deregulation of our financial markets dating back over three decades reinvigorated the economic and political debate around the appropriate balance between market freedom and government regulation. This paper explores this theme historically, analyzing several economic markets that were highly regulated prior to the late 20^th century. Through this analysis it establishes a foundational framework for the study of the widespread deregulation of the late …

The 1999 Repeal Of Glass-Steagall: The Effect On U.S. Commercial Banks, Ryan Michael Daddi

Renée Crown University Honors Thesis Projects - All

The Great Recession of 2008-2009 was one of the most devastating financial crises of our history. The extent with which the recession plagued our financial system and affected everyday citizens created an immediate search for answers as to what had happened. Many experts pointed at the 1999 repeal of the Banking Act of 1933 (commonly referred to as Glass-Steagall) as a possible cause of increased risk-taking in the financial system. After the Great Depression, Glass-Steagall was enacted to separate commercial banking from investment banking, the combination being seen as a cause for the worst financial crises in history.

With the …

The Effects Of Walmart On Healthcare And Unionization: Is America Really Saving Money And Living Better?, Leyla Ziad

Renée Crown University Honors Thesis Projects - All

As the largest private sector employer in the United States, corporate retail giant Walmart continues to make waves in United States culture and the economy since launching its first store in 1962. As Walmart seeks to expand, the validity of its consumer guarantee to “save money, live better” has been increasingly scrutinized, given Walmart’s use of controversial business practices, most notably its employee benefit policies and anti-unionization efforts. With over 1.4 million employees in the United States, there is much talk surrounding the potential costs of Walmart’s low prices. This study analyzes selected healthcare and unionization impacts of Walmart in …

Do Ct Scans Help Prevent Cancer-Related Deaths?, Auyon J. Ghosh

Renée Crown University Honors Thesis Projects - All

This paper uses a region-level estimation approach associated with medical procedures to identify the effectiveness of X-ray Computed Axial Tomography (CT) scans as a diagnostic tool in preventing cancer-related deaths. In order to measure the effects of the CT scan on cancer-related deaths, I use data from both the National Health Interview Survey and the Vital Statistics of the United States. For all four regions, we observe an increase in CT scan use after 1979 or, as illustrated specifically in the figure, from 1975 to 1980. All four regions exhibit marked increases in lung cancer-related deaths, very little fluctuation in …

Homo Economicus: Alive And Diversified In The Economic Research Program, Bradley R. Turner

Renée Crown University Honors Thesis Projects - All

This paper seeks to (1) offer a conceptual overview of the methodology of science research programs (MSRP) of Imre Lakatos; (2) apply the framework of that methodology to the neoclassical theory of Gary S. Becker; and (3) explore a quantitative-driven, atheoretical alternative, which challenges the view that there can be or should be any body of theoretical economics. The MSRP framework is used in an instrumental manner in the pursuit of a lucid and interesting historical analysis. The pros and cons of Becker’s approach are presented in the tradition of instrumentalism, and in light of recent discussion of economics imperialism. …

Do Children's Hospitals Have Lower Mortality Rates? Evidence From The 2003 Kids' Inpatient Database, Christiane Labonte

Renée Crown University Honors Thesis Projects - All

Objective: To compare mortality rates at children’s hospitals and non-children’s hospitals.

Data Source: I used the Healthcare Cost and Utilization Project Kids’ Inpatient Database (KID) released by the Agency for Healthcare Research and Quality in 2003. Thirty-six states participated in the HCUP in 2003, which included 3,438 hospitals, and 2,984,129 pediatric discharges.

Study Design: I hypothesized that mortality rates at children’s hospitals would be lower than mortality rates at non-children’s hospital because children’s hospitals have more specialized inputs, from the clinical training of sub-specialists and nurses to advanced machines and diagnostic tools, and may use these inputs more productively. To …

Movement Of Economics Professors Among Top Research Universities In The Us, Benjamin E. Resnick

Renée Crown University Honors Thesis Projects - All

Abstract not Included

The College Football Gambling Market An Empirical Approach, Brian Mcneil

Renée Crown University Honors Thesis Projects - All

This study tests the efficiency of the college football gambling market and whether the market allows for profitable wagering. Operating upon the theoretical framework that, at any given time, prices fully reflect all information available in a particular market, I test for the existence of residual information that is not currently incorporated into the market, thus rendering it inefficient. This project expands upon several previous studies performed on sports betting – most notably that of Zuber, Gandar, and Bowers (1985), which examined the gambling market efficiency for National Football League games. The findings prove to be consistent with the conclusions …