Economics Commons^™

The United States Credit Rating Downgrade: European Reaction, Brian Scott Roseman

All Graduate Plan B and other Reports, Spring 1920 to Spring 2023

The purpose of this paper is to answer the important question of how investors viewed the debt obligations from European countries in reaction to the United States credit rating downgrade by Standard and Poor’s on August 5 2011. During this period there were a handful of countries in Europe that still had AAA ratings. This paper looks at the reaction of investors towards Europe, through the medium of Credit Default Swaps (CDSs). By analyzing the changes in CDS spreads, I am able to determine the perceptions of investors regarding the risk of European Sovereigns during the timeframe surrounding the U.S …

Estimation Of Beta In A Simple Functional Capital Asset Pricing Model For High Frequency Us Stock Data, Yuzhe (Yan) Zhang

All Graduate Plan B and other Reports, Spring 1920 to Spring 2023

This project applies the methods of functional data analysis (FDA) to intra-daily returns of US corporations. It focuses on an extension of the Capital Asset Pricing Model (CAPM) to such returns. The CAPM is essentially a linear regression with the slope coefficient β. Returns of an asset are regressed on index return. We compare the estimates of β obtained for the daily and intra-daily returns. The variability of these estimates is assessed by two bootstrap methods. All computations are performed using statistical software R. Customized functions are developed to process the raw data, estimate the parameters and assess their variability. …

Is Analyst Over Optimism Creating Price Inefficiency In The Stock Market?, Juan Mauricio Guiliani

All Graduate Plan B and other Reports, Spring 1920 to Spring 2023

This study aims to uncover the relationship between market frictions, measured by price delay, and consensus analyst recommendations on stocks. Analyst recommendations are publicly available to investors, and under the framework of the Efficient Market Hypothesis, should contribute to the efficiency of a stock’s pricing mechanism by providing information to the market that would otherwise not be available. We find evidence that the more favorable recommended stocks in our sample command a higher price delay than less favorably recommended stocks. In other words, the most optimistically recommended stocks are priced less efficiently than other less favorably recommended stocks. We also …

The Role Of Family Ties In Mitigating Moral Hazard: Firm-Level Evidence From Tamil Nadu, India, Goldie Chow

Master's Theses

Drawing on firm-level data from the district of Coimbatore in Tamil Nadu, India, this study explores the role of family ties as a means to counteract potential moral hazard concerns. It is shown that firms will be more likely to employ family relations when faced with a higher hidden context for moral hazard. Specifically, the analysis finds that the presence of family members within the firm is higher when the firm provides general training and that firms that are more likely to do external business with family relations when it is believed that the legal system is not effective. Additionally, …

Opaqueness Of Financial Institutions, Todd G. Griffith

All Graduate Plan B and other Reports, Spring 1920 to Spring 2023

Spectators and professionals have targeted financial institutions as being at the epicenter of recent markets crises The opaqueness of bank holding companies' assets has been assumed to have created additional volatility and inefficiency within the market. It appears that the capital structure of a bank is the actual driving force behind the inefficiency. I conduct multiple empirical analyses to measure whether the lack to financial institutions asset transparency negatively impacts the ability of the firms price to respond to informational innovations in a timely manner. Through additional econometric tests, I explore several economic theories to narrow in on the root …

How Are Interest Rates Affecting Household Consumption And Savings?, Lacy Christensen

All Graduate Plan B and other Reports, Spring 1920 to Spring 2023

This paper explores the optimal interest rates that could potentially maximize overall consumption and savings. I attempt to determine whether artificially low interest rates are positively or negatively affecting consumption. There has been speculation on whether the United States needs to raise the effective federal funds rate to provide financial institutions the incentive to lend money and increase household consumption. The Federal Reserve is currently keeping the effective funds rate between 0 and .25 in hopes of increasing consumption levels. This paper uses fifty years of interest rate data to narrow in on an optimal interest rate that leads to …

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 …

The Human Opportunity Index And Income Inequality In Brazil, Joseph Van Matre

Economics Undergraduate Honors Theses

This study calculates the Human Opportunity Index (HOI) proposed by de Barros et al. (2009) and a Gini Index of household income using nationally representative data from Brazil for the years 2001 to 2008. Macroregional HOIs and Gini Indexes were also calculated for the years 2001, 2005, and 2008. No statistically significant, linear trends were found over the eight year period for national HOIs. A statistically significant, linear, downward trend was found for the Gini Index of household incomes. Also, there was a statistically significant decrease in the macroregional variance of HOI scores, indicating a convergence of opportunity equity among …

The Economic Impact Of Right-To-Work Laws On Employment And Living Standards In The State Of Arkansas, Brinkley Cook-Campbell

Economics Undergraduate Honors Theses

This reaseach paper looks at the effect that right-to-work laws have had on the economy of Arkansas. Analysis reveals that RTW laws have no effect on unemployment, labor force participation, and wage growth. However, RTW laws do have an economic impact on population growth in certain periods, as well as increased rates of GDP growth. This paper concludes that RTW has been good for Arkansas.

Sports Economics - The Economic Impact Of The Nba's Thunder On Oklahoma City, David Noudaranouvong

Economics Undergraduate Honors Theses

What kind of significance do sports serve? This research project will investigate further into one of the many different answers to this broad question, specifically in the economic sense. Exactly what kind of impact can a single sports team have on a single city’s economy? I will investigate just what a sports team can mean for a city’s financial status as a result of its sports-stimulated economy. What is the best way to analyze this impact? For the purpose of this research project, I will take into account the economic state before and after the National Basketball Association’s incorporation into …

A Brighter Future: The Impact Of Charter School Attendance On Student Achievement In Little Rock, Karen Brown

Economics Undergraduate Honors Theses

This thesis analyzes what affects charter school attendance has on standardized test scores of public and charters in Little Rock, Arkansas. Policy implications and avenues for further research are also discussed.

The Financial Crisis Viewed From The Perspective Of The Social Cost Theory, L. Randall Wray

Social Cost Workshop

The talk examines the causes and consequences of the current global financial crisis. K.W. Kapp’s “social costs” theory is contrasted with the recently dominant “efficient markets” hypothesis to provide the context for analyzing the functioning of financial institutions. Rather than operating “efficiently,” the financial sector has been imposing huge costs on the economy—costs that no one can deny in the aftermath of the economy’s collapse. While orthodox approaches lead to the conclusion that money and finance should not matter much, the alternative tradition—from Veblen and Keynes to Galbraith and Minsky—provides the basis for developing an approach that puts money and …

The Social Cost Of Labor And Its Importance For Labor Economics, Robert E. Prasch

Social Cost Workshop

The starting point and core notion of neoclassical or mainstream economics is a reductionist vision of the exchange of commodities. Missing is the historical, social, and legal environments within which exchanges occur. A parallel and equally problematic notion is that labor exists as something of a “found object.” By contrast, the classical school of economists understood that laborers must earn a wage equal to or greater than “subsistence” if society was to be an ongoing enterprise. Laborers must be fed, sheltered, socialized, and educated before they arrive in the labor market. This, in a phrase, is the Social Cost of …

Environmental Sustainability From A Social Cost Perspective, James Swaney

Social Cost Workshop

Over a quarter century, efforts to build global environmental governance institutions have been thwarted by ideology and vested interests, while ecological degradation has accelerated and disparities in wealth, living standards and economic opportunities have grown. Nonetheless, the sustainability idea remains appealing and valid: Future generations can be protected from debilitating ecological degradation only if we, the present generation, redirect development to begin restoring ecological balance to key earth systems (e.g., oceans, climate, biodiversity). The social cost perspective (SCP) of institutional economics, rooted in the contributions of Karl Polanyi (1944) and K. William Kapp (1950), provides a framework for thinking about, …

The Discourse On Social Costs: Heterodox Vs. Neoliberal Economics, Sebastian Berger

Social Cost Workshop

This presentation analyzes the discourse on social costs, focusing on how neoliberal economists in the 1950s and 1960s embarked on the successful project to marginalize the heterodox view that social controls of the economy are a good thing because markets otherwise cause too many social damages. The paper mainly looks at the intellectual project of the institutional economists John M. Clark and K. William Kapp. Both collaborated in the 1940s in crafting the institutional theory of social costs as a critique of the neoclassical theory of costs and externalities (Arthur C. Pigou), as well as the rising post WWII neoliberalism …

Investing In A Healthier Future: Iom Dissemination Workshop, Glen P. Mays

Health Management and Policy Presentations

This session discusses strategies for implementing new financing strategies and funding mechanisms for public health services.

The Effects Of Interstate Speed Limit Increases: Fatality Rates And Traffic Diversion Versus Speed Spillover, Daniel L. Dillon

Honors Theses

This thesis examines two panel data sets of 48 states from 1981 to 2009 and utilizes ordinary least squares (OLS) and fixed effects models to explore the relationship between rural Interstate speed limits and fatality rates and whether rural Interstate speed limits affect non-Interstate safety. Models provide evidence that rural Interstate speed limits higher than 55 MPH lead to higher fatality rates on rural Interstates though this effect is somewhat tempered by reductions in fatality rates for roads other than rural Interstates. These results provide some but not unanimous support for the traffic diversion hypothesis that rural Interstate speed limit …

The Health Care Debate And Health Care Coverage In The U.S. A. Today, Antonio Giraldi

Honors Theses

The health care system in the United State has struggled during the past few decades. This has been accompanied by many controversies and debates among U.S. policy makers and health insurance providers. Dissatisfaction with health care in the United States today can be divided into three main aspects of health care; coverage, cost, and quality. The first problem, coverage, is a major issue because about 15 percent of the population of the U.S. (45 million) is uninsured today. The first and second problems, coverage and cost, are somewhat related since the rising cost of obtaining health services is one of …

Work Hours In Retail: Room For Improvement, Françoise J. Carré, Chris Tilly

Upjohn Institute Policy Papers

With full-time jobs, hourly wages are appropriate primary indicators of job quality. However, in sectors where full-time schedules do not dominate, total hours matter for job quality and worker outcomes. We explored hour levels and trends in retail trade and its largest subsector, grocery stores. Retail is known for part-time and short shifts. With a comparison of retail hours in three countries—the United States, Canada, and Mexico—we contribute insights into aspects of the U.S. policy and regulatory systems that could be altered in order to improve retail jobs.

The Look Of The Line: An Empirical Investigation Of The Impacts Of Facial Symmetry On Salary Levels Of Offensive Linemen In The Nfl, Kristen Wampole

Business and Economics Honors Papers

Evaluation of a professional athlete's performance for the purposes of compensation determination is difficult, especially when decision making may not follow the expected "instrumental rationality." This paper will look to examine the factors, both productive and non-productive, impacting an Offensive Lineman's salary in the NFL. The purpose of this study is to determine whether an offensive lineman's salary is based on productive characteristics adhering to instrumental rationality, or whether the influence of non-productive characteristics influence salary as ultimately determined by team management. Results indicate that players within the tackle position with earning salaries in the seventy-fifth percentile gain additional benefits …