Economics Commons^™

Basel Iii And Credit Risk Measurement: Variations Among G20 Countries, Matt Schlickenmaier

San Diego International Law Journal

Most countries require banks to hold extra capital to protect against unforeseen financial calamities; banks with riskier loans must hold more capital than those with safer loans. Basel II, a set of international banking standards, allows banks to measure a loan’s risk in different ways: some banks make their own judgments; others use outside agencies. The recent mortgage crisis prompted banks to reevaluate these methods, in part due to banks having failed to perceive the high level of risk inherent in securitized mortgages. The international community’s response was Basel III, an updated version of its previous standards. This Comment will …

Estimating Dynamic Discrete Choice Models Of Product Differentiation: An Application To Medicare Part D With Switching Costs, Daniel P. Miller, Jungwon Yeo

Research Collection School Of Economics

This paper proposes an algorithm to estimate dynamic discrete choice models using aggregate market share data. The algorithm achieves a computational advantage by decomposing the complicated mapping between market shares and utility flows into two simpler ones. The first maps observed market shares to mean choice specific values, and the second then maps to mean utility flows. In the application, we estimate switching costs in the Medicare Part D market. Our results indicate a large switching cost of around $1,700, which implies an average welfare loss of $480 as enrollees choose to remain in sub-optimal plans to avoid switching costs.

Trade, Firm Selection, And Industrial Agglomeration, Wen-Tai Hsu, Ping Wang

Research Collection School Of Economics

We develop a model of trade and agglomeration that incorporates trade in both intermediate goods and final goods and allows all firms to choose their locations. There are two types of labor: skilled labor, which is mobile, and unskilled labor, which is immobile. Upon choosing its factory site, a final goods firm that is managed by skilled labor can produce these goods using local unskilled labor and a variety of intermediate goods produced by productivity-heterogeneous producers. We characterize world equilibrium and establish the conditions under which industrial agglomeration arises as a stable equilibrium outcome. We show that when the unskilled …

The Coevolution Of Economic And Political Development From Monarchy To Democracy, Fali Huang

Research Collection School Of Economics

This paper establishes a simple model of long run economic and political development, which is driven by the inherent technical features of different factors in production, and political conflicts among factor owners on how to divide the outputs. The main capital form in economy evolves from land to physical capital and then to human capital, which enables the respective factor owners (landlords, capitalists, and workers) to gain political powers in the same sequence, shaping the political development path from monarchy to elite ruling and finally to full suffrage. When it is too costly for any group of factor owners to …

Can Us Economic Variables Predict Chinese Stock Market?, Jeremy Goh, Fuwei Jiang, Jun Tu, Yuchen Wang

Research Collection Lee Kong Chian School Of Business

In the last few decades, we observed a significant increase in global economic activities and these activities may have an impact on both China's economy and stock market. Given the potential impact, we empirically examine whether US economic variables are leading indicators of the Chinese stock market. Prior to China joining the World Trade Organization (WTO) in the end of 2001, we find no statistical relationship between US economic variables and the Chinese stock market returns. However, we find US economic variables have statistically significant predictive power for periods after China's admission into the WTO. In addition, we show that …

Gulf Arab Financial Flows And Investment, 2000-2010: Promises, Process And Prospects In The Mena Region, Karen Pfeifer

Economics: Faculty Publications

The Gulf Arab countries were promoted as dynamic, rapidly growing and self-transforming economies in the boom years of the 2000s, and were praised for their purported leadership of the MENA regional economy. As of 2010, despite the severity of the financial crisis and recession of 2008-2009 in the Gulf and consequent impact on the rest of the region, the GCC countries were still promoted as potential leaders of both the recovery and future regional development. An examination of the evidence regarding the direction, magnitude and uses of GCC financial flows both domestically and internationally from 2000 to 2010 finds that …

Estimating Scale And Scope Effects In Public Health Delivery: Implications For Regionalization, Glen P. Mays, Rachel A. Hogg, Rick Ingram, Kristina Rabarison

Health Management and Policy Presentations

OBJECTIVES: The nation's public health delivery system comprises nearly 3000 local public health agencies that vary widely in capabilities. Economic pressures, workforce shortages, and new national accreditation standards are leading these agencies to explore mechanisms for pooling resources to enhance delivery and improve population health.

METHODS: A longitudinal cohort design is used to analyze changes in the availability and perceived effectiveness of services delivered by local public health providers. A stratified random sample of the nation's 3000 local public health agencies (n=497) were surveyed in 1998 and again in 2006 and 2011 (70% response) to measure the availability of 20 …

Why Not Some Fiscal Therapy And Go Over The Cliff?, Louis D. Johnston

Economics Faculty Publications

No abstract provided.

Food Insecurity Across The First Five Years: Triggers Of Onset And Exit, Alison Jacknowitz, Taryn W. Morrissey

University of Kentucky Center for Poverty Research Discussion Paper Series

Very low food security among young children is associated with developmental deficiencies. However, little is known about the factors that predict entry into or exit from very low food security during early childhood. This study seeks to: (1) Understand the triggers that explain movements into or out of very low food security among children from birth to age five; (2) Examine the first aim using different definitions of food insecurity. The analysis relies on the Early Childhood Longitudinal Study-Birth Cohort (ECLS-B), a longitudinal, nationally representative dataset of approximately 10,700 children, to estimate linear probability models. Results suggest that residential moves …

Estimation Of Spatial Models With Endogenous Weighting Matrices And An Application To A Demand Model For Cigarettes, Harry H. Kelejian, Gianfranco Piras

Regional Research Institute Working Papers

Weighting matrices are typically assumed to be exogenous. However, in many cases this exogeneity assumption may not be reasonable. In these cases, typical model specifications and corresponding estimation procedures will no longer be valid. In this paper we specify a spatial panel data model which contains a spatially lagged dependent variable in terms of an endogenous weighting matrix. We suggest an estimator for the regression parameters, and demonstrate its consistency and asymptotic normality. We also suggest an estimator for the large sample variance-covariance matrix of that distribution. We then apply our results to an interstate panel data cigarette demand model …

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Long Memory Regressors And Predictive Regressions: A Two-Stage Rebalancing Approach, Alex Maynard, Aaron Smallwood, Mark E. Wohar

Economics Faculty Publications

Predictability tests with long memory regressors may entail both size distortion and incompatibility between the orders of integration of the dependent and independent variables. Addressing both problems simultaneously, this paper proposes a two-step procedure that rebalances the predictive regression by fractionally differencing the predictor based on a first-stage estimation of the memory parameter. Extensive simulations indicate that our procedure has good size, is robust to estimation error in the first stage, and can yield improved power over cases in which an integer order is assumed for the regressor. We also extend our approach beyond the standard predictive regression context to …

Clean Energy: The Economics Of Why And How, Adele C. Morris

Brookings Scholar Lecture Series

One rationale for large public investments in clean energy technology points to concerns that have not been addressed by other policies, most notably greenhouse gas emissions and energy security. Another inspiration for clean energy policy suggests that strategic government investments would increase domestic firms' market share of a growing industry and thus help domestic firms and workers. This lecture examines the economic case for clean energy policy in the United States and addresses the issues state and local governments confront in building a clean energy industry.

Politics Versus Economics, Ishrat Husain Dr.

Faculty Research - Newspaper and Magazine Articles

A question often asked is that when current economic ills have been diagnosed and we know what needs to be done, why doesn’t it happen? The reason is the inherent disjuncture between the political risks a ruling party is willing to take and the economic rewards accruing through prudent economic management that will take care of these economic ills.

This asymmetry between the incurrence of the costs and the appropriation of benefits lies at the heart of the non-reformist stance of democratically elected governments. India – the largest democracy in the world – has recently been faced with a similar …

Interpretation And Construction In Altering Rules, Gregory Klass

Georgetown Law Faculty Publications and Other Works

This essay is a response to Ian Ayres's, "Regulating Opt-Out: An Economic Theory of Altering Rules," 121 Yale L.J. 2032 (2012). Ayres identifies an important question: How does the law decide when parties have opted-out of a contractual default? Unfortunately, his article tells only half of the story about such altering rules. Ayres cares about rules designed to instruct parties on how to get the terms that they want. By focusing on such rules he ignores altering rules designed instead to interpret the nonlegal meaning of the parties' acts or agreement. This limited vision is characteristic of economic approaches to …

Government Documents On Rare Earth Minerals, Bert Chapman

Libraries Faculty and Staff Presentations

Rare earth minerals contain unique chemical and physical properties such as lanthanum, are found in small concentrations, need extensive precise processes to separate, and are critical components of modern technologies such as laser guidance systems, personal electronics such as Blackberries, and satellites. The U.S. has some rare earth resources, but is heavily dependent on access to them from from Afghanistan, Bolivia, and China. Losing access to these resources would have significant economic, military, and political implications. This presentation will highlight government information resources on rare earth minerals from agencies such as the Department of Energy (DOE), Department of Defense (DOD), …

Education And Just Development, Ishrat Husain Dr.

Faculty Research - Talks, Speeches, & Discourse

I wish to commend the TCF Chapter of Seattle for organizing this Fund raising event and for the past efforts they have made in sponsoring several TCF schools in various parts of the country. Overseas Pakistanis have proved to be a big supporter of TCF in its operations and expansion. Both the attendance at today's event and your enthusiastic response have inspired me.

Could Us-Syrian Strategies Lead To Genocide?, David J. Keeling

Earth, Environmental, and Atmospheric Sciences Faculty Publications

No abstract provided.

Blood, Organs And Other Tissues For Sale: Diamela Eltit's Impuesto A La Carne And The Afterwards Of The Neoliberal Development In Latin America., Wanda I. Ocasio- Rivera

Hispanic Studies Publications

Abstract

Blood, organs and other tissues for sale: Diamela Eltit's Impuesto a la carne and the afterwards of the neoliberal development in Latin America.

As Marx elaborated in Capital: Volume I at the moment human labour is sold, the subject participates in an ominous plot where she/he becomes a commodity. In a capitalist mode of production, the subject’s alienation from his/her humanity occurs because the individuals can only express labor through a privately-owned system of production in which he/she is an instrument, an object. This dehumanization process submits the subject under the exchange transactions of the market, where labor value …

Brains Over Brawn: Are There Lower Levels Of Wage Discrimination Between The Sexes In Industries That Require Less Physical Strength And More Cognitive Skill?, Jessica Baier

Award Winning Economics Papers

With the advent of technological innovations, cognitive abilities have become increasingly valued in the workplace, while physical strength, an important requirement for manual labor, has become less important. One might expect, therefore, the gender wage gap to be lower in occupations that require more cognitive skills, as men’s comparative advantage should be lower in those industries. Using 2010 individual data from the PUMS, I test whether the gender wage gap varies by industry or occupation, grouped according to skill level. I decompose the gaps using the Oaxaca decomposition, and find that, while there is not a clear pattern of wage …

Cookin’ Jobs Numbers? Crazy Talk From Jack Welch, Louis D. Johnston

Economics Faculty Publications

No abstract provided.