Macroeconomics Commons^™

Manipulation Or Monetization?: The Rise Of Stock Buybacks And Their Effects On Firm Valuation And Investment, Thomas H. Serrano

Economics Undergraduate Honors Theses

Abstract:

This thesis uses basic econometrics to examine the relationship between stock buybacks, firm valuation, and investment among publicly traded firms from 2000-2024. Using firm-level data pulled from Compustat North America and a fixed-effect multivariate regression, it evaluates whether buybacks are associated with higher valuation and stronger productive investment as defined in the paper. The results show that buybacks are positively associated with firm valuation the first year that they occur, but the relationship disappears when they are lagged for a year. Furthermore, the analysis does not find strong statistical evidence that repurchases are associated with changes in investment, or …

Sustainable Agricultural Practices And Societal Impacts: A Case Study In Central Belize, Lily Hunt

Economics Undergraduate Honors Theses

This thesis examines the relationship between climate change, sustainable agriculture, and rural development through a case study in Central Belize. Built from observations, interviews, and academic research gathered during a summer internship with the Belize Ministry of Agriculture, the research explores the challenges small farmers face as they navigate worsening climate threats - including drought, wildfire, and resource scarcity. With climate change accelerating at a faster rate in Belize than in many other countries, agricultural resilience has become a national priority. This internship focused on collecting applications for the Sustainable and Inclusive Belize Program, a government initiative that provides financial …

Supply Chains Shocks, Network Linkages, And Economic Outcomes, Romeo Eric Neuyou Nana

Graduate Theses and Dissertations

One prominent consequence of the Covid-19 pandemic was the disruption of critical parts of the global supply chain. In the U.S., delays at ports and shortages of critical inputs such as semiconductors have negative ripple effects across the economy. This situation prompts a surge of interests from academics, business leaders, and policy makers alike. However, the evidence of the quantification of supply chain disruptions’ impact and its drivers on economic variables are still scant. In this essay, I investigate the extent of the impact of supply chain shocks on the U.S. economy and the mechanisms through which they affect economic …

What Impact Did The Tcja Tax Cuts Have On The Manufacturing Sector?, Ryan Parker

Accounting Undergraduate Honors Theses

Throughout this paper I will examine positive effects the Tax Cuts and Jobs Act of 2017 had on the manufacturing sector. To do this I begin by outlining the key provisions in the TCJA that directly benefit the manufacturing sector. This includes the corporate tax rate reduction from 35 percent to 21 percent, the changes to the repatriation tax for foreign funds, and the treatment for capital assets. I then analyze key metrics including pre-tax income, income tax provision, dividends, changes in retained earnings, and spending on property plant and equipment. I will show the interactions between the increase in …

How Did The Tax Cuts And Jobs Act Of 2017 Effect Small Businesses?, Jackson Pittman

Accounting Undergraduate Honors Theses

The Tax Cuts and Jobs Act (TCJA) of 2017 marked a significant overhaul of the United States tax system, promising to stimulate economic growth and enhance the competitiveness of American businesses. Amidst its broad-reaching reforms, the TCJA introduced several provisions directly impacting small businesses, aiming to alleviate their tax burdens and foster entrepreneurial activity. This thesis endeavors to evaluate the multifaceted effects of the TCJA on small businesses, examining its implications for their financial performance, investment behavior, and overall economic contribution.

Preliminary findings suggest that the TCJA has produced a generally positive result for small businesses. On one hand, reduced …

The Economics Behind The Legalization Of Sports Gambling And Financial Market Relations, John Bassham

Finance Undergraduate Honors Theses

With the recent legalization of sports gambling, it has become a popular spectacle among sports fans and financial analysts pursuing an understanding of it. This thesis dives into the meticulous relationship between sports gambling and economic factors/financial market relations using academic literature to understand the relationship.

The thesis explores sports gambling from an economic standpoint using incentives to understand the market participants and economic advantages and disadvantages. It also uses academic literature and analytics to make a case for market efficiency while also delving into particular inefficiencies.

Furthermore, this thesis uses characteristics of the stock market in comparison of the …

Economic Anomalies Following The Handover Of Hong Kong, Nathan Martin

Economics Undergraduate Honors Theses

This paper seeks to examine and provide a possible explanation for economic anomalies in Hong Kong following its handover to China. Hong Kong was on a 99-year lease to the United Kingdom from China before being handed back over July 1^st, 1997. Due to the “one country, two systems” policy espoused in the handover agreement that was to be implemented for fifty years, this event marks a rare natural experiment of a peaceful regime change without a significant change in governance. This paper seeks to understand the impact of the act of regime change on selected key macroeconomic …

Income Inequality And Economic Growth: An Analysis, Nicholas Martin

Economics Undergraduate Honors Theses

Income inequality and its relationship with economic growth has been a subject of debate in academia for decades. This paper examines the relationship the Gini index of five selected countries and four macroeconomic variables (GDP growth, unemployment rate, lending interest rate, and savings rate) for each country with two developed nations being represented (United States and Italy) and three developing nations being represented (Peru, Belarus, and Indonesia). After reviewing the literature on the relationship between income inequality and economic growth, a multivariate regression analysis of each country is presented; first with GDP growth as the dependent variable, followed by a …

An Anomaly In Unemployment Rates: A Comparative Analysis Of Federal Governments’ Responses To The Covid-19 Pandemic, Trent Arney

Economics Undergraduate Honors Theses

During the COVID-19 pandemic, the United Kingdom experienced extremely low unemployment rates compared to similarly developed nations. As a result of the ensuing national recessions, the United States’ and Canada’s Phillip’s Curves shifted, while the United Kingdom’s remained steady. Each of these three nations pursued relatively similar monetary and fiscal policies; however, the United Kingdom’s government-supported wage policy had different requirements and specifications than that of the United States’ and Canada’s. The United Kingdom’s government-supported wage policy prioritized saving jobs while the United States’ and Canada’s policies prioritized saving firms, leading to the disparity in national unemployment rates observed during …

Three Essays On Consumption Smoothing, Logan James Miller

Graduate Theses and Dissertations

Macroeconomic theory has established that consumption smoothing leads to higher standards of living. A stable consumption path can lead to more stability and less uncertainty between periods of high and low income. However, there is a wide body of literature that shows people do not consistently smooth their consumption when exposed to adverse income shocks. This dissertation uses experimental and empirical methods to better understand the obstacles people face when trying to smooth their consumption over time. It looks to understand the differences in pairs and individuals’ ability to smooth consumption. It also explores how the household’s level of income …

An Exploration Of The Impact Of Economic Recessions On The S&P 500 And Its Sectors, Weston Sizemore

Finance Undergraduate Honors Theses

The Capital Asset Pricing Model (CAPM) is a method of predicting future stock prices based on past returns. Specific areas of CAPM analysis utilize regression analysis to accomplish this goal. Historic prices and returns for a specific stock in a company, or even whole sectors of the economy, are compared with the corresponding returns for the market. There have been several historical recessions in United States history, as well as a current, ongoing recession. These recessions, along with their causes and effects, will be discussed extensively in this paper. This paper utilizes an analysis of the Capital Asset Pricing Model …

Addressing Urban Income Inequality Through Education: A Case Study In Atlanta, Garrett Bronn

Finance Undergraduate Honors Theses

For decades, the income inequality gap between the rich and poor has continued to expand dramatically, with criticism of existing education systems often at the heart of the issue. Large urban cities are commonly at the forefront of the issue, given the plethora of teacher strikes in recent years. Events such as the 11-day Chicago teacher’s strike in October of 2019 that idled academics and college prep for 350,000 students, have highlighted many current education issues (Hauck, 2019). With underfunded and poorly equipped middle and high schools, students in poor and minority neighborhoods in cities are less prepared academically, ill …

Three Essays On Macroeconomics And Laboratory Experiments, Justin Leblanc

Graduate Theses and Dissertations

This dissertation examines two prominent macroeconomic models and their behavioral underpinnings in a laboratory setting. The first is that of state-dependent pricing models (i.e., “menu cost” models). Comparisons were made between laboratory results and a computer- simulated optimal behavior, and results indicate that subjects update prices too frequently resulting in statistically suboptimal profits due to subjects’ inability to clearly ascertain the optimal threshold at which to update prices. Second, the consumption predictions made under rational inattention theory were examined via a laboratory experiment. Results indicate that subjects’ behavior aligns well with predictions in that they consume stochastically, yet adjust their …

Literacy Rates Analysis: An International Comparison, Macarena Arce

Economics Undergraduate Honors Theses

This paper attempts to provide a more complete reckoning of the economics of literacy rates around the world. It consists on a literature review about the economic benefits and costs of literacy rates and then it shows two econometrics models that attempt to predict literacy rates based on GDP, government expenditure, and several other independent variables.

Essays On Monetary Policy Rules And Inflation Dynamics, Saad Ahmad

Graduate Theses and Dissertations

There has been a growing trend to utilize nonlinear models to analyze key issues in monetary policy and international macroeconomics. Using traditional linear models to understand nonlinear relationships can often lead to inaccurate inference and erroneous policy recommendations. The three essays in this dissertation explore nonlinearity in the Federal Reserve’s policy response as well as between a country’s inflation dynamics and integration in the global economy. My aim in accounting for potential nonlinearity is to get a better understanding of the policy makers’ opportunistic approach to monetary policy and evaluate the inflation globalization hypothesis, which basically predicts that global factors …

Essays On The Changing Nature Of Business Cycle Fluctuations: A State-Level Study Of Jobless Recoveries And The Great Moderation, Jared David Reber

Graduate Theses and Dissertations

The behavior of several important macroeconomic variables has changed dramatically over the past several business cycles in the U.S. These changes, which began around the mid-1980s, have been viewed as somewhat puzzling given the stark contrast they exhibit to earlier post-war data. The movement of output and employment has historically been highly correlated throughout the different phases of the business cycle. However, this changed with the economic recovery of 1991. Since then, periods of output recovery have been accompanied by periods of prolonged job loss. These periods have come to be known as "jobless recoveries". Several competing explanations for this …

Essays On International Trade And Finance, Amat Adarov

Graduate Theses and Dissertations

The dissertation consists of three papers exploring the macroeconomic implications of heterogeneity of countries in financial development, economic interconnectedness via trade and financial linkages.

Chapter 1 examines whether countries which are more centrally located in the global trade network have more synchronized stock markets. Global trade data is used to construct a novel measure of random walk betweenness centrality (RWBC), measuring the extent to which a country lies on random pathways in-between other countries and is therefore likely to be a conduit in the transmission of a shock across global markets. Based on a panel dataset of 58 countries over …