Economic Policy Commons^™

Stacked Risks, Unequal Returns: Stratified Risk Allocation In Housing And Higher Education, Regina M. Lewis

University of Kentucky Doctoral Dissertations

In the United States, public policy does more than distribute resources. It distributes risk. The same policy can create profoundly different consequences for different people because policies operate on landscapes shaped by generations of unequal investment and opportunity.

To explore this process, I introduce the Stratified Risk Allocation (SRA) Framework to demonstrate how facially neutral policies reproduce inequality by allocating risk across populations with unequal capacity to absorb it. Drawing on risk society theory, historical institutionalism, critical race theory, intersectionality, and stratification economics, the SRA framework distinguishes between Exposure, the likelihood of encountering policy-generated risk, and Capacity, the resources available …

Why Color-Blind Solutions Won't Solve The Racial Wealth Gap: How We Can Overcome The Constitutional Hurdles To Race Conscious Remedies In Addressing The Wealth Gap, Malik Edwards, William A. Darity Jr.

Kentucky Law Journal

No abstract provided.

Interest Convergence And The Racial Wealth Gap: Defusing Racism's Divide-And-Conquer Via Universal Basic Income, Palma Joy Strand, Nicholas A. Mirkay

Kentucky Law Journal

No abstract provided.

Wage Enslavement: How The Tax System Holds Back Historically Disadvantaged Groups Of Americans, Goldburn P. Maynard Jr., David Gamage

Kentucky Law Journal

No abstract provided.

Administering Money: Coinage, Debt Crises, And The Future Of Fiscal Policy, Rohan Grey

Kentucky Law Journal

No abstract provided.

Where Does The Money Go? Three Essays On Intergovernmental Transfers, Spending, And Poverty In Indonesia, Jacobus Cd Rijoly

Theses and Dissertations--Public Policy and Administration

Indonesia allocates substantial intergovernmental transfers to local governments; nonetheless, the decrease in poverty remains limited. This dissertation posits that the binding constraint is institutional, specifically the regulations and incentives that dictate the extent to which funds are allocated from the government to designated programs. Institutional pass-through refers to the fraction of a transfer that is allocated to a program expenditure. The three essays integrate estimation, budget composition evidence, and a formal model to explain both modest average effects and heterogeneity across regions and programs.

The first essay evaluates the impact of transfers on provincial poverty from 2001 to 2022 by …

China In Global Digital Trade Governance: Towards A Development-Oriented Agenda?, Yujia He, Ka Zeng

Patterson School of Diplomacy and International Commerce Faculty Publications

Existing literature on the behaviour of rising powers in global trade governance has yielded inconclusive evidence about their role and impact. This article contributes to this literature by examining China's role in global digital trade governance, an issue area which so far has not received sufficient scholarly attention. Specifically, it addresses the following question: as a self-proclaimed leader of the developing world in digital development, to what extent do its preferences and negotiation approach align with the interests of other developing countries? Analysing China's participation in three sets of negotiations using process tracing, the article argues that China's dual identity …

Essays On The Dynamics Of Subnational Public Finance In Indonesia, Much Rosidi

Theses and Dissertations--Public Policy and Administration

This dissertation comprises three essays that collectively explore the intricacies of subnational public finance in Indonesia: vehicle tax amnesty, property tax competition, and corruption. The research aims to understand the dynamics shaping fiscal policies at the subnational level.

In the first essay, I examine vehicle tax amnesty programs in Indonesia that have been very popular in dealing with high delinquency rates. From 2008 to 2020, provincial amnesties occurred every 2.5 years on average. Using the variation in the timing of the province’s amnesty adoptions, I estimate the effect of vehicle tax amnesty on vehicle tax revenue using difference-in-differences. The short-run …

Essays On Public And Nonprofit Financial Dynamics, Yunjun Kim

Theses and Dissertations--Public Policy and Administration

This dissertation consists of three essays that explore different dimensions of financial dynamics in the public and nonprofit sectors. Each chapter examines how the fiscal behavior of neighboring jurisdictions, policy interventions, and financial practices influence fiscal decision-making and financial performance within these entities.

In the first essay, I investigate yardstick competition in local government spending in South Korea by leveraging the exogenous variation introduced by by-elections. This approach allows me to estimate the influence of neighboring jurisdictions on local expenditures. Contrary to previous empirical studies from other countries, my findings reveal no significant interdependence in spending among South Korean municipalities, …

Policy Brief, Zachary Owen

Libraries Award for Undergraduate Scholarship

The US grapples with a housing crisis, exacerbated in part by a shortage of conventional mortgage loans. Data from 2020 reveals a severe racial disparity, with 27.1% of Black mortgage applicants denied compared to only 13.6% of White mortgage applicants. These denial trends are highly correlated with homeownership rates. Current trends in homeownership by race mirror or exceed those present during the discriminatory practices of the 1960s. Lenders often cite low credit scores and high debt-to-income ratios as grounds for denial. Therefore, proposed solutions include mandating the inclusion of rental payment history in credit scores, offering free homebuying education, and …

Three Essays On Consumption Taxation In Indonesia, Partomuan Transparenter Juniult

Theses and Dissertations--Public Policy and Administration

Consumption taxes play a major role in revenue generation for many developing countries. They are also used to encourage or discourage certain consumption behaviors. However, the administrative aspects of implementing these taxes can create challenges for the tax authorities, and lead to distortions in taxpayer behavior. To overcome these challenges, efforts have been made to simplify policies and utilize technology to improve administration and compliance. My dissertation aims to provide empirical evidence on the effects of three consumption or commodity tax policy reforms in Indonesia. The dissertation consists of three essays as follows.

In my first essay, titled “The effect …

Three Essays On Tax Compliance In Indonesia, Himawan Saputro

Theses and Dissertations--Public Policy and Administration

This dissertation studies the impacts of major tax reforms designed to improve tax compliance, particularly in the context of developing countries with limited enforcement capacity due to informality and lack of third-party data using the Indonesian tax administrative data as well as relevant empirical research methods. In order to describe this dissertation, I discuss each essay as the following.

The first essay is titled "How Do Small Taxpayers Respond to Tax Simplification? Evidence from the Indonesian Turnover Tax Reform." This essay studies the firms' behavioral responses to tax simplification in Indonesia by exploiting the implementation of turnover tax in 2013 …

Economic Impact Of Ethanol Biorefineries In The U.S. Midwest From 2001 To 2015: A Quasi-Experimental Approach, Scott W. Hall

Theses and Dissertations--Agricultural Economics

The objective of this dissertation is to analyze the economic impact of newly operational ethanol biorefineries on rural counties in the U.S. Midwest region for the period 2001 to 2015 using a quasi-experimental approach. Rapid growth in the ethanol industry expanded the number of ethanol plants located in the U.S. Midwest from 54 in 2001 to 173 in 2015. Out of the counties with 119 new ethanol biorefineries, 97 counties met the general treatment criteria defined in this dissertation, but only 56 of those counties qualified for the rural treatment criteria. Counties with ethanol biorefineries that qualified for treatment were …

Three Essays On Public Finance And Public Policy: Financial Disclosure And Policy Reinvention In U.S. State And Local Governments, Jinhai Yu

Theses and Dissertations--Public Policy and Administration

This dissertation consists of three essays. The first essay, or Chapter 2, advances the literature by examining the conditional effects of lobbying on the relationship between policy learning and policy reinvention. Scholars have consistently shown that learning of successful policies in other states leads to higher likelihood of policy adoption. This essay extends this finding two ways. First, policy learning can also lead to more comprehensive adoption of successful policies. Second, the effect of policy learning on policy comprehensiveness is conditional on lobbying by interest groups, an alternative source of information about policy success. To test these hypotheses, I conduct …

Three Essays On Local Public Finance, Thomas Daniel Woodbury

Theses and Dissertations--Public Policy and Administration

This dissertation seeks to develop the subject of local public finance in a manner consistent with the political economy of local governments. For ease of description, each essay will be discussed briefly.

The first essay is titled "The Provision of Generalized Local Public Goods Financed by Distortionary Taxation." This essay models the provision of a local public good that is simultaneously utilized as a public consumption good and a public intermediate good. Since the public good can simultaneously enter both utility and production functions, it is considered a "generalized public good." This is done to model the provision of infrastructure …

Ginning Up Economic Growth? Evaluating The Effects Of County-Level Alcohol Sales, Nathan Smith

MPA/MPP/MPFM Capstone Projects

The academic literature on the topic of legal alcohol sales is vast; from the effects on crime to population health outcomes. The economic development impact of alcohol sales, however, remains relatively unexplored. This research examines county-level data from the State of Arkansas between the years 2009 and 2014 in a cross-sectional time-series regression analysis to determine whether economic development benefits exist that can be attributed either directly or indirectly to legal alcohol sales. Ultimately, this study finds that alcohol sales are positively and significantly related with food service and accommodation employment as well as higher per capita personal income.

The Impact Of Intellectual Property On Provincial Unemployment Rates In South Korea, Soon Ho Shin

MPA/MPP/MPFM Capstone Projects

Intellectual property is drawing attention as an important policy tool to lower the unemployment rate in low-growth economies. The Korean Intellectual Property Office (KIPO) provides services that facilitate companies to effectively create intellectual property by operating local intellectual property support centers in connection with local governments. In this context, this research examine how the differences of intellectual property registration affect provincial unemployment rates by analyzing 10 years (2006-2015) of panel data with a fixed-effects regression model. According to my estimation results, intellectual property registrations have a statistically significant impact on provincial unemployment rates in South Korea. Since the reduction of …

Did Municipal Stabilization Funds Effectively Smooth Expenditures During The Great Recession?, Lauren Kesselring

MPA/MPP/MPFM Capstone Projects

Budget stabilization fund (BSF) is a general term for rainy day funds, contingency funds, and reserves. Historically, researchers have studies BSFs at the state level. However, after the Great Recession municipalities have increasingly adopted BSFs. So far, there are several unknowns surrounding municipal BSFs. The intent of this paper is to start addressing some of these unknowns. The paper seeks to answer the question, did municipal BSFs smooth expenditures over the Great Recession? This study uses data from Lexington-Fayette Urban County Government and eleven comparable municipalities.

The municipality BSF literature is in its infancy. Previous research has focused on state …

Conduit Bond Financing Of Local Governments—Perspective From The U.S. And China, Zihe Guo

Theses and Dissertations--Public Policy and Administration

As an alternative way to issue bonds, conduit financing has been widely used by local governments and nonprofit organizations. Conduit financing allows one entity to issue debt on behalf of single or multiple borrowers. In the state of California in the U.S., a local agency is allowed to issue municipal bonds in compliance with law, but can also borrow through a joint powers agency (JPA). In this case, the JPA serves as a conduit. Conduit financing is preferred by local agencies in certain circumstances because it is more convenient or fixed issuance costs can be split between several conduit borrowers …

The Sleeping Giant Wants A Veto, Elizabeth Suparmanto

Ex-Patt Magazine

The sleeping giant wants a veto. Will Brazil be able to convince the world it deserves a permanent seat?

Impact Of Welfare Participation During Childhood On Adult Income, Curran A. Prettyman

Lewis Honors College Capstone Collection

This paper analyzes the impact of welfare participation during childhood on adult income. In the United States, welfare programs have a long history originating from the 1800s, and over $20 billion are currently allocated to various anti-poverty programs, such as Aid to Families with Dependent Children and Supplemental Security Income. Many people believe that these programs effectively eradicate childhood poverty. However, ordinary least squares and instrumental variables regression models suggest welfare programs are counterproductive. On average, holding all else constant, with 95% confidence, the total dollar amount of funding received from welfare programs during childhood is statistically significant to a …

State Spending And Economic Growth: An Exploratory Analysis, Eli Levine

MPA/MPP/MPFM Capstone Projects

No executive summary.

Distributional Effects Of Welfare Reform Experiments: A Panel Quantile Regression Examination, Carlos Lamarche, Robert Paul Hartley

University of Kentucky Center for Poverty Research Discussion Paper Series

In an influential article, Bitler, Gelbach and Hoynes (American Economic Re- view, 2006; 96, 988-1012) illustrate the importance of estimating heterogeneous impacts of welfare reform experiments. They find that the mean treatment effect offers an uninfor- mative summary of opposing effects, while the treatment effects are significantly different across quantiles. We replicate their results and evaluate the robustness of their findings to accounting for individual-specific heterogeneity possibly associated with welfare program participation. We find results that are in general similar to Bitler’s et al. findings, although the interpretation of labor supply effects in the upper tail is revised. We find …

The Modern Streetcar In The United States: Do Cities Have The Information Needed To Make Informed Choices?, Elle Hull

MPA/MPP/MPFM Capstone Projects

Streetcars have made a comeback in cities in North American in the last several decades; there are now over 45 cities operating, building, or planning streetcars. The majority of these streetcars are viewed primarily as catalysts for economic development, rather than as a means of public transportation. However, the streetcar’s claim of promoting development is backed by surprisingly little evidence.

Although carrying out an analysis of the impact of streetcars on economic development is beyond the scope of this paper due to problems with data availability, methods of performing such an analysis are discussed. This includes a list of cities …

The Socioeconomic Impact Of Coal In The Appalachian Region Of Kentucky, Laura Oxley

MPA/MPP/MPFM Capstone Projects

The coal debate seems to be in a state of inertia. Proponents of coal claim the industry brings economic benefit to Kentucky. Environmentalists claim the industry creates irreparable harm to the Appalachian Mountain region. While these opinions are not unfounded, seldom do stakeholders explore the impact incurred directly in the Appalachian communities that mine coal. Moving the debate to a discussion about coal’s direct impact in the communities that support the industry may broaden stakeholders’ perspective. Determining whether the industry helps or harms the Appalachian community may be the break in the debate’s stalemate. Thus, this paper explores the socioeconomic …

Does Tax Revenue Diversification Help States Weather Economic Downturns? Evidence From The Great Recession, Nick Kilby

MPA/MPP/MPFM Capstone Projects

This capstone seeks to build on previous research to assess the validity of the claim that revenue diversification is an effective policy tool for states to use during recessions in order to stabilize their revenue flow. Revenue diversification is defined as the degree to which states take advantage of various tax sources, rather than reliance on a few or one in particular. Previous research, especially by Carroll (2005) and Suyderhound (1994), has shown that states with higher revenue diversification rates experience lower revenue shortfalls during recessions and other economic downturns on average.

This paper will reassess these claims in terms …

The Effect Of Direct Payments To Rice Farming Households In Korea, Jaehyung Kim

MPA/MPP/MPFM Capstone Projects

1) Background

Rice farming is a very important agricultural policy issue for the Korean government not only because rice is a staple food for the Korean population but because rice production is also an important source of income for those involved in rice farming. The importance of rice production to the agricultural sector of Korea is indicated by the fact that 49% of Korea’s agricultural land is devoted to rice production. Therefore, Korean agricultural policy has focused on rice production issues as well as the income of farmers involved in rice production.

To support rice farming income, the Korean government …

Letting Teams Walk: Exploring The Economic Impact Of Professional Sports Franchises Leaving Cities, Jesse Stephenson

MPA/MPP/MPFM Capstone Projects

Cities often use public funding to help construct and renovate the facilities of large, private sports franchises. As the major sports leagues grow in popularity and revenue, cities have had to offer increasingly competitive incentive packages to owners in order to keep their team from relocating to more profitable markets or cities willing to issue public funding for new facilities. Much literature has been conducted on the economic impact of sports teams with a general consensus that there is usually no positive economic effect for cities that serve as homes for these teams from the largest leagues (NFL, MLB, and …

Deep And Chronic Poverty In The P.S.I.D. - Assessing The Panel Survey Of Income Dynamics Using Pα And Kα Indices, Paul G. Metzler

MPA/MPP/MPFM Capstone Projects

Poverty, while an intuitive concept, proves harder to specify and measure, especially over time. Foster, Greer and Thorebecke (1984) introduced an axiomatically sound, and commonly used poverty index Pα that is later developed by Foster (2009) to include time spent in poverty. I use their dual-cutoff spells approach to determine the occurrence, depth, and severity of poverty in a longitudinal dataset.

Using the Panel Survey of Income Dynamics over the timeframe 1990-2010, high-risk populations are explored further, especially African Americans, unmarried females, and those without a high school diploma. I explore the proportions of poverty incidence to find head of …

The Federal Minimum Wage: The Effects Of The Minimum Wage On The Youth Employment And School Enrollment, Nurlan Kussainov

MPA/MPP/MPFM Capstone Projects

The minimum wage has been a prominent topic of discussion among labor economists. According to Neumark and Wascher, the minimum wage has been a core element of public policy for several decades. The effects of minimum wage were brought back to light during the State of the Union address by President Obama, in which he proposed increasing the minimum wage to $9.00, a 24% increase.

This capstone project contributes to the discussion in determining the effects of the change in minimum wage on the youth population. The study uses aggregate data spanning nineteen years, from 1985 and 1990 to 2007. …