Economic Theory Commons^™

Social Dimension Of Inclusive Growth In Ecowas: Implication For Poverty Reduction, Toriola K. Anu, Goerge O. Emmanuel, Ajayi O. Felix

CBN Journal of Applied Statistics (JAS)

This study investigates the implication of the social dimension of inclusive growth on poverty reduction in Economic Community of West African States (ECOWAS) countries. It specifically examines how social indices of inclusive growth comprising of income inequality, education, and health outcomes affect poverty reduction. The study uses a panel dataset of the six (6) lower-middle income countries in ECOWAS which was analysed via panel Difference Generalised Method of Moment (D-GMM). The results show that GDP per capita exerts significant negative effect on poverty while inequality, education and health outcomes do not show significant effect on poverty. Although, the estimates of …

Effect Of Fdi Inflows On Employment Generation In Selected Ecowas Countries: Heterogeneous Panel Analysis, Timothy A. Aderemi, Olawunmi Omitogun, Bukonla G. Osisanwo

CBN Journal of Applied Statistics (JAS)

The aim of this study is to examine the effect of FDI on employment in ECOWAS sub region between 1990 and 2019. The study utilizes a panel autoregressive distributed lag model to analyse the short run and long run relationship between FDI and employment across ECOWAS sub region. In the short run, the impact of FDI on employment is negative and statistically not significant. Meanwhile, in the long run FDI has a positive and statistically significant impact on employment rate. This implies that FDI has the capacity to generate employment in countries in ECOWAS sub region. Therefore, this study recommends …

Essays On Social Choice And Implementation Theory, Paulo Daniel Salles Ramos

Dissertations and Theses Collection (Open Access)

We present here three essays. The first two are about Social Choice Theory and explore under what domain restrictions is possible to obtain a Social Choice Function that is Well Behaved as well as Monotonic, and what other characteristics can be inferred about such functions on that domain. The last essay is about Implementation Theory and explore how to obtain a more compelling form of implementation than pure Nash Equilibrium for finite environments using finite mechanisms.

Weak Identification Of Long Memory With Implications For Inference, Jia Li, Peter C. B. Phillips, Shuping Shi, Jun Yu

Research Collection School Of Economics

This paper explores weak identification issues arising in commonly used models of economic and financial time series. Two highly popular configurations are shown to be asymptotically observationally equivalent: one with long memory and weak autoregressive dynamics, the other with antipersistent shocks and a near-unit autoregressive root. We develop a data-driven semiparametric and identification-robust approach to inference that reveals such ambiguities and documents the prevalence of weak identification in many realized volatility and trading volume series. The identification-robust empirical evidence generally favors long memory dynamics in volatility and volume, a conclusion that is corroborated using social-media news flow data.

300 Anniversary Of Smith’ Birth, Vernon L. Smith

ESI Working Papers

Thousand-word brief on key quotes from Adam Smith’s two books (TMS, WN) modelling Society and Economy.

Political Legitimacy In Historical Political Economy, Avner Greif, Jared Rubin

ESI Working Papers

Political legitimacy has long been recognized in the social sciences as an integral component of governance. It encourages obedience without the threat of force, thus lowering governing costs and improving the efficacy of policies. This chapter begins by overviewing the extensive literature on political legitimacy, classifying studies by whether they are based on the beliefs (regarding the legitimacy of the authority) or effectiveness (good governance is legitimate governance). Among the studies focusing on beliefs, most take legitimacy as an exogenous element of political authority. We develop a conceptual framework to study how beliefs regarding political legitimacy form endogenously and impact …

Inaccessible Interpolated Imagery: How Coffee Farmers In The State Of Chiapas Might Access Political Economic Opportunity Through Representation, Paolo Fiann Bicchieri

Master's Theses

Here is a useful parable to boil down the idea of this project and set the tone: when one goes to the bar to tell a story about a fight at the bar, they would never venture to place themselves as the hero of the brawl, taking out three drunkards in a single punch, unless they were really in the bar, at that time, fighting a good fight. One would never do this as the bartender, locals, and regulars would all know if this were the case or not. Yet transnational corporations, governments, and even consumers do this all the …

Essays In Advertising, Regulation And Consumer Naivety, Aastha Gupta

Economics Theses and Dissertations

This dissertation consists of three essays that focus on the theoretical analysis of regulation of firm’s communication regarding the quality of its product and the impact of such regulation on market outcome.

The first essay, “Advertising Through Influencers and Disclosure Regulation”, focuses on the recent FTC regulations which require mandatory disclosure of all paid advertising content through social media influencers. This chapter investigates the impact of this disclosure policy on market outcomes when the influencer has the expertise to evaluate product quality and influence the beliefs of both potential buyers as well as the firm. In markets where the influencers …

How Do Reward Versus Penalty Framed Incentives Affect Diagnostic Performance In Auditing?, Bright (Yue) Hong, Timothy W. Shields

ESI Working Papers

Prior research examines how rewards versus economically equivalent penalties affect effort. However, accountants perform various diagnostic analyses that involve more than exerting effort. For example, auditors often need to identify whether a material misstatement is the underlying cause of a phenomenon among the possible causes. Testing helps identify the cause, but testing is costly. When participants are incentivized to test accurately (rather than test more) and objectively (unbiased between testing and not testing), we find that framing the incentives as rewards versus equivalent penalties increases testing by lowering the subjective testing criterion and by increasing the assessed risk of material …

Motives For Cooperation In The One-Shot Prisoner’S Dilemma, Mark Schneider, Timothy W. Shields

ESI Working Papers

We investigate the motives for cooperation in the one-shot Prisoner’s Dilemma (PD). A prior study finds that cooperation rates in one-shot PD games can be ranked empirically by the social surplus from cooperation. That study employs symmetric payoffs from cooperation in simultaneous PD games. Hence, in that setting, it is not possible to discern the motives for cooperation since three prominent social welfare criteria, social surplus (efficiency) preferences, Rawlsian maximin preferences, and inequity aversion make the same predictions. In the present paper, we conduct an experiment to identify which of these social preferences best explains differences in cooperation rates and …

Assessing The Impact Of Inequality On Political Activity And Class Consciousness, Matthew Prouty

Thinking Matters Symposium

Since 1980, the United States has experienced stagnating wages, higher levels of inequality, and intensifying political polarization. Despite this, U.S. domestic economic policy has not undergone the fundamental transformation needed to combat these systemic challenges. Why have these policies remained in place when they have a negative impact on the aggregate working class, and why has the working class not used American Democracy to change these policies? Could it be that the rising inequality has led to reduced political engagement with the remaining voters being more devout participants to their ideology than effective policy? Although there is an abundance of …

Sustainable Rural Development: Is It Possible To Boost Rural Economies While Protecting The Environment?, Jack M. Hempleman

Undergraduate Theses, Capstones, and Recitals

Amidst rapid depletion of our carbon budget, the need to change our practices to be more in line with Earth’s limits has become important in every sector of our economy. From advances in renewable energy generation to the growth of urban gardening, people around the world are taking action to change the way they interact with our planet. However, growing concerns have been raised that protections for the environment will disproportionately harm struggling communities. For instance, rural communities in the United States already exhibit disproportionately high poverty rates, income inequality, and unemployment, as well as lower quality healthcare and public …

Modern Monetary Theory: Merits, Critiques, And Contemporary Implications, Rebecca Singleton, Thomas Herndon

Honors Thesis

The study of macroeconomics is a diverse field, with conflicting opinions and numerous camps of thought. The election of 2016 brought this to the public attention, as the appointment of Stephanie Kelton as Senator Bernie Sanders’s campaign economic advisor brought Dr. Kelton’s heterodox school of macroeconomic policy to the attention of mass media. In particular, Modern Monetary Theory became a public discussion, particularly in the wake of stimulus spending during the COVID-19 pandemic. Modern Monetary Theory (MMT), a heterodox macroeconomic theory most discussed in far-left and post-Keynesian academic circles, has faced backlash from a centrist mass media. I investigate the …

The Elusive And Complex Parabolic Relationship Between Terrorism And Gdp Per-Capita, Kianna Becker

Honors Capstones

The 21st century saw a dramatic focus on terrorism after the events of September 11, 2001. The search for an explanation for the causes of terrorism have led economists to turn to the role of GDP on terrorism. This research aims to search for a pattern in the relationship between GDP per-capita and acts of terrorism. Previous research has pointed towards both a positive and negative trend. The stark different findings in previous research attests to the various ways terrorism is measured and analyzed. Encapsulating the previous research, this research merges the two theories and aims to show there is …

Antitrust Philosophy And Its Impact On Rural Industry, Logan Gary Johnson

Honors Thesis

The United States is a nation steeped in values, and tradition. One of these values has always been the preservation of competition in the pursuit of liberty. The philosophical backing of America’s founding can be traced back to a handful of European thinkers, most notably John Locke. The connection between Locke, America’s founding, and continued struggles with antitrust enforcement are worthy of exploration. Though likely unintentional, rural communities have been left to deal with the impacts of weak antitrust enforcement in a number of key sectors. Chief of which is Agriculture. Consolidation is the new norm, with each stage of …

On The Generalizability Of Using Mobile Devices To Conduct Economic Experiments, Yiting Guo, Jason Shachat, Matthew J. Walker, Lijia Wei

ESI Working Papers

Recent technological advances enable the implementation of online, field and hybrid experiments using mobile devices. Mobile devices enable sampling of incentivized decisions in more representative samples, consequently increasing the generalizability of results. Generalizability might be compromised, however, if the device is a relevant behavioural confound. This paper reports on a battery of common economic games and decision-making tasks in which we systematically randomize the decision-making device (computer versus mobile phone) and the laboratory setup (physical versus online). The results offer broad support for conducting decision experiments using mobile devices. For six out of eight tasks, we find robust null results …

The Coronavirus Pandemic And Participation In The Influencer Economy, Emma Grace Richbourg

Honors Theses

The 2019 coronavirus pandemic, also referred to as the COVID-19 pandemic, altered day-to-day life and has effected the economy quite notably. The aim of this paper is to determine to what extent the COVID-19 pandemic altered consumer behavior and whether these alterations encouraged participation in the influencer economy, which represents social media influencers who create and monetize online content. In order to do so, I administered a survey to 250 respondents to evaluate the reach of influencers during the pandemic and whether social media users felt the presence of influencers was an effective marketing technique. I also conducted an analysis …

Game Theory, John Thrasher Iv

Philosophy Faculty Books and Book Chapters

The formal study of strategic interaction known as game theory is one of the most important elements in the PPE toolbox. It is no exaggeration to say that game theory is the fundamental logic at the heart of the social and behavioral sciences, and it is crucial for understanding social and political life. Game theory is the core of modern economic theory, formal models in political science, and the most sophisticated and rigorous approaches to moral and political philosophy. Game theory is also important in many of the natural sciences, especially in theoretical biology. As Herbert Gintis (2009, xiii) puts …

Essays On Delegation And Voter Preferences, Cory Simpkins

All Dissertations

Chapter 1 examines delegation and communication as strategies in coordination games with uncertainty and social preferences. I construct a model where other-regarding partners attempt to coordinate over a binary choice with privately known utilities. Players can choose to either communicate by signaling their preferences or delegate the choice entirely to their partner. I characterize equilibrium behavior under various assumptions on information transmission and coordination risk. If coordination is risky, there is a type of "first mover advantage" where the first player to communicate her own-preference guarantees her ideal outcome when communication is honest revelation. When preference signals are cheap talk, …

A Garch Approach To Modeling Chilean Long-Term Swap Yields, Tanweer Akram, Khawaja Mamun

WCBT Working Papers

This paper econometrically models the dynamics of the Chilean interbank swap yields based on macroeconomic factors. It examines whether the month-over-month change in the short-term interest rate has a decisive influence on the long-term swap yield after controlling for other factors, such as the change in inflation, change in the growth of industrial production, change in the log of the equity price index, and change in the log of the exchange rate. It applies the generalized autoregressive conditional heteroskedasticity (GARCH) approach to model the dynamics of the long-term swap yield. The change in the short-term interest rate has an economically …