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How Do Changes In Gasoline Prices Affect Bus Ridership In The Twin Cities?, Kim Eng Ky 2016 Macalester College

How Do Changes In Gasoline Prices Affect Bus Ridership In The Twin Cities?, Kim Eng Ky

Economics Honors Projects

What determines the likelihood a resident will take public transit? To understand the relative effects of various determinants of ridership, this study focuses on the effects of gasoline prices, controlling for other determinants such as number of workdays in a given month, traffic, unemployment rate, and service quality. As gasoline prices increase, it becomes more expensive to drive a car. Thus, customers would likely shy away from driving and substitute towards the alternatives; one of which is public transportation. This study aims to find the relationship between gasoline prices and bus ridership at a disaggregated level (route type level) in …


Disentangling Greenhouse Warming And Aerosol Cooling To Reveal Earth's Climate Sensitivity, T. Storelvmo, T. Leirvik, U. Lohmann, Peter C. B. PHILLIPS, M. Wild 2016 Yale University

Disentangling Greenhouse Warming And Aerosol Cooling To Reveal Earth's Climate Sensitivity, T. Storelvmo, T. Leirvik, U. Lohmann, Peter C. B. Phillips, M. Wild

Research Collection School Of Economics

Earth's climate sensitivity has long been subject to heated debate and has spurred renewed interest after the latest IPCC assessment report suggested a downward adjustment of its most likely range(1). Recent observational studies have produced estimates of transient climate sensitivity, that is, the global mean surface temperature increase at the time of CO2 doubling, as low as 1.3 K (refs 2,3), well below the best estimate produced by global climate models (1.8 K). Here, we present an observation-based study of the time period 1964 to 2010, which does not rely on climate models. The method incorporates observations of greenhouse gas …


Rhode Island Current Conditions Index -- March 2016, Leonard Lardaro 2016 University of Rhode Island

Rhode Island Current Conditions Index -- March 2016, Leonard Lardaro

The Rhode Island Current Conditions Index

No abstract provided.


Asymptotic Power Of The Sphericity Test Under Weak And Strong Factors In A Fixed Effects Panel Data Model, Badi H. Baltagi, Chihwa Kao, Fa Wang 2016 Syracuse University

Asymptotic Power Of The Sphericity Test Under Weak And Strong Factors In A Fixed Effects Panel Data Model, Badi H. Baltagi, Chihwa Kao, Fa Wang

Center for Policy Research

This paper studies the asymptotic power for the sphericity test in a fixed effect panel data model proposed by Baltagi, Feng and Kao (2011), (JBFK). This is done under the alternative hypotheses of weak and strong factors. By weak factors, we mean that the Euclidean norm of the vector of the factor loadings is O(1). By strong factors, we mean that the Euclidean norm of the vector of factor loadings is O(pn), where n is the number of individuals in the panel. To derive the limiting distribution of JBFK under the alternative, we first derive the limiting distribution of its …


The Impact Of Lending Rate On The Manufacturing Sector In Nigeria, D. B. Akpan, D. J. Yilkudi, D. C. Opiah 2016 Central Bank of Nigeria

The Impact Of Lending Rate On The Manufacturing Sector In Nigeria, D. B. Akpan, D. J. Yilkudi, D. C. Opiah

Economic and Financial Review

The study investigates the impact of lending rate on output of the manufacturing subsector using the Vector Error Correction Model (VECM) and annual data from 1981- 2014. The empirical results indicated that high lending rate had negative impact on manufacturing output in the long-run. This suggests that increase in lending rate undermines manufacturing output, thus retarding growth in the real sector. Specifically, the estimates revealed that a 1.0 per cent increase in lending rate reduces manufacturing output by 0.03 per cent. The study, therefore, recommends the implementation of investment friendly policies that narrows the lending rate by the deposit money …


Shrinkage Estimation Of Common Breaks In Panel Data Models Via Adaptive Group Fused Lasso, Junhui QIAN, Liangjun SU 2016 Shanghai Jiaotong University

Shrinkage Estimation Of Common Breaks In Panel Data Models Via Adaptive Group Fused Lasso, Junhui Qian, Liangjun Su

Research Collection School Of Economics

In this paper we consider estimation and inference of common breaks in panel data models via adaptive group fused Lasso. We consider two approaches—penalized least squares (PLS) for first-differenced models without endogenous regressors, and penalized GMM (PGMM) for first-differenced models with endogeneity. We show that with probability tending to one, both methods can correctly determine the unknown number of breaks and estimate the common break dates consistently. We establish the asymptotic distributions of the Lasso estimators of the regression coefficients and their post Lasso versions. We also propose and validate a data-driven method to determine the tuning parameter used in …


Prices, Markups, And Trade Reform, Jan De Loecker, Pinelopi K. Goldberg, Amit K. Khandelwal, Nina Pavcnik 2016 Princeton University

Prices, Markups, And Trade Reform, Jan De Loecker, Pinelopi K. Goldberg, Amit K. Khandelwal, Nina Pavcnik

Dartmouth Scholarship

This paper examines how prices, markups, and marginal costs respond to trade liberalization. We develop a framework to estimate markups from production data with multi‐product firms. This approach does not require assumptions on the market structure or demand curves faced by firms, nor assumptions on how firms allocate their inputs across products. We exploit quantity and price information to disentangle markups from quantity‐based productivity, and then compute marginal costs by dividing observed prices by the estimated markups. We use India's trade liberalization episode to examine how firms adjust these performance measures. Not surprisingly, we find that trade liberalization lowers factory‐gate …


Estimation Of Large Dimensional Factor Models With An Unknown Number Of Breaks, Shujie MA, Liangjun SU 2016 University of California, Riverside

Estimation Of Large Dimensional Factor Models With An Unknown Number Of Breaks, Shujie Ma, Liangjun Su

Research Collection School Of Economics

In this paper we study the estimation of a large dimensional factor model when the factor loadings exhibit an unknown number of changes over time. We propose a novel three-step procedure to detect the breaks if any and then identify their locations. In the first step, we divide the whole time span into subintervals and fit a conventional factor model on each interval. In the second step, we apply the adaptive fused group Lasso to identify intervals containing a break. In the third step, we devise a grid search method to estimate the location of the break on each identified …


Model Selection For Explosive Models, Yubo TAO, Jun YU 2016 Singapore Management University

Model Selection For Explosive Models, Yubo Tao, Jun Yu

Research Collection School Of Economics

This paper examines the limit properties of information criteria for distinguishing between the unit root model and the various kinds of explosive models. The information criteria include AIC, BIC, HQIC. The explosive models include the local-to-unit-root model, the mildly explosive model and the regular explosive model. Initial conditions with different order 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 come from the unit root model. When data come from the local-to-unit-root model, both BIC and …


Sieve Instrumental Variable Quantile Regression Estimation Of Functional Coefficient Models, Liangjun SU, Tadao HOSHINO 2016 Singapore Management University

Sieve Instrumental Variable Quantile Regression Estimation Of Functional Coefficient Models, Liangjun Su, Tadao Hoshino

Research Collection School Of Economics

In this paper we consider sieve instrumental variable quantile regression (IVQR) estimation of functional coefficient models where the coefficients of endogenous regressors are unknown functions of some exogenous covariates. We estimate the functional coefficients by the sieve-IVQR technique and establish the uniform consistency and asymptotic normality of the estimators. Based on the sieve estimates, we propose a nonparametric specification test for the constancy of the functional coefficients and study its asymptotic. We conduct simulations to evaluate the finite sample behavior of our estimator and test statistic, and apply our method to study the estimation of quantile Engel curves.


The Effects Of Alcohol Use On Economic Decision Making, Klajdi Bregu, Cary Deck, Lindsay Ham, Salar Jahedi 2016 University of Arkansas

The Effects Of Alcohol Use On Economic Decision Making, Klajdi Bregu, Cary Deck, Lindsay Ham, Salar Jahedi

ESI Working Papers

It is notoriously hard to study the effect of alcohol on decision making, given the selection that takes place in who drinks alcohol and when they choose to do so. In a controlled laboratory experiment, we study the causal effect of alcohol on economic decision making. We examine the impact of alcohol on the following types of tasks: math and logic, uncertainty, overconfidence, strategic games, food choices, anchoring, and altruism. Our results indicate that alcohol consumption, as measured by the blood alcohol concentration (BAC), increases cooperation in strategic settings and altruism in Dictator games. We do not find any effects …


Optimal Tilts, Malcom Baker, Terence C. Burnham, Ryan Taliaferro 2016 Harvard Business School

Optimal Tilts, Malcom Baker, Terence C. Burnham, Ryan Taliaferro

ESI Working Papers

We examine the optimal weighting of four characteristic tilts in US equity markets over the period from 1968 through 2014. We define a “tilt” as a positive-Sharpe-ratio, characteristicbased portfolio strategy that requires relatively low annual turnover and a “trade” as a characteristic-based portfolio strategy that requires relatively high annual turnover and liquidity demands. Size is a tilt, because of its very low turnover; high frequency reversal is a trade. This dichotomy is necessary to make practical use of Fama-French style factor regressions. Unlike low-turnover tilts, a full history of transaction costs and an estimate of capacity is critical to determine …


Rhode Island Current Conditions Index -- February 2016, Leonard Lardaro 2016 University of Rhode Island

Rhode Island Current Conditions Index -- February 2016, Leonard Lardaro

The Rhode Island Current Conditions Index

No abstract provided.


Prediction In A Generalized Spatial Panel Data Model With Serial Correlation, Badi H. Baltagi, Long Liu 2016 Syracuse University

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.


Testing For Monotonicity In Unobservables Under Unconfoundedness, Stefan HODERLEIN, Liangjun SU, Halbert WHITE, Thomas Tao YANG 2016 Boston College

Testing For Monotonicity In Unobservables Under Unconfoundedness, Stefan Hoderlein, Liangjun Su, Halbert White, Thomas Tao Yang

Research Collection School Of Economics

Monotonicity in a scalar unobservable is a common assumption when modeling heterogeneity in structural models. Among other things, it allows one to recover the underlying structural function from certain conditional quantiles of observables. Nevertheless, monotonicity is a strong assumption and in some economic applications unlikely to hold, e.g., random coefficient models. Its failure can have substantive adverse consequences, in particular inconsistency of any estimator that is based on it. Having a test for this hypothesis is hence desirable. This paper provides such a test for cross-section data. We show how to exploit an exclusion restriction together with a conditional independence …


Firms' Decisions To Enter A Market Of Highly Differentiated Products: Apparel Industry And New York Fashion Week, Yoko Katagiri 2016 CUNY Graduate Center

Firms' Decisions To Enter A Market Of Highly Differentiated Products: Apparel Industry And New York Fashion Week, Yoko Katagiri

Dissertations, Theses, and Capstone Projects

This dissertation deals with economic aspects of the fashion industry. It begins with a discussion of the complex industrial organization aspects of the industry. A wealth of information in this area has been assembled and is presented for the first time. The focus is on the high-end fashion market: how it started, how it works, New York Fashion Week, and its significance for the industry. Then a comprehensive review of the economics literature as it pertains to the industry is presented, also for the first time. The empirical sections of the dissertation contain estimates of demand functions for apparel and …


Granger Causality And Structural Causality In Cross-Section And Panel Data, Xun LU, Liangjun SU, Halbert WHITE 2016 Hong Kong University of Science and Technology

Granger Causality And Structural Causality In Cross-Section And Panel Data, Xun Lu, Liangjun Su, Halbert White

Research Collection School Of Economics

Granger non-causality in distribution is fundamentally a probabilistic conditional independence notion that can be applied not only to time series data but also to cross-section and panel data. In this paper, we provide a natural definition of structural causality in cross-section and panel data and forge a direct link between Granger (G-) causality and structural causality under a key conditional exogeneity assumption. To put it simply, when structural effects are well defined and identifiable, G- non-causality follows from structural non-causality, and with suitable conditions (e.g., separability or monotonicity), structural causality also implies G-causality. This justifies using tests of G- non-causality …


Common Threshold In Quantile Regressions With An Application To Pricing For Reputation, Liangjun SU, Pai XU, Heng JU 2016 Singapore Management University

Common Threshold In Quantile Regressions With An Application To Pricing For Reputation, Liangjun Su, Pai Xu, Heng Ju

Research Collection School Of Economics

The paper develops a systematic estimation and inference procedure for quantile regression models where there may exist a common threshold effect across different quantile indices. We first propose a sup-Wald test for the existence of a threshold effect, and then study the asymptotic properties of the estimators in a threshold quantile regression model under the shrinking-threshold-effect framework. We consider several tests for the presence of a common threshold value across different quantile indices and obtain their limiting distributions. We apply our methodology to study the pricing strategy for reputation via the use of a dataset from Taobao.com. In our economic …


Arousal And Economic Decision Making, Salar Jahedi, Cary Deck, Dan Ariely 2016 RAND Corporation

Arousal And Economic Decision Making, Salar Jahedi, Cary Deck, Dan Ariely

ESI Working Papers

Previous experiments have found that subjecting participants to cognitive load leads to poorer decision making, consistent with dual-system models of behavior. Rather than taxing the cognitive system, this paper reports the results of an experiment that takes a complementary approach: arousing the emotional system. The results indicate that exposure to arousing visual stimuli as compared to neutral images has a negligible impact on performance in arithmetic tasks, impatience, risk taking in the domain of losses, and snack choice although we find that arousal modestly increases in risk-taking in the gains domain and increases susceptibility to anchoring effects. We find the …


Who Wants The Right To Know? An Analysis Of Gmo-Labeling In California, Sylvia M. Xu 2016 Colby College

Who Wants The Right To Know? An Analysis Of Gmo-Labeling In California, Sylvia M. Xu

Journal of Environmental and Resource Economics at Colby

There are many studies that have been done to examine what types of voting behavior or patterns are present when voting for environmental ballot measures. This paper examines what characteristics of people are likely to cause them to support Proposition 37 in California, an initiative that, if passed, would require GMO-labeling on all genetically modified foods. Using voting data at a zip code level, I use OLS regression to identify specifically what type of political party, education, occupation, household status, and income levels are more likely to support the bill. I also run weighted regressions by population and number of …


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