Economics Commons^™

Application Of Regime-Switching And Structural Break Models In Financial Economics, Chengping Zhang

Faculty Publications - College of Business

This dissertation consists of two manuscripts. In the first manuscript, we use multivariate regime-switching models to investigate the portfolio performance benefits associated with the addition of emerging market and developed market mutual funds to a global investor. Our approach admits time-varying risk and returns in a regime-switching model with both global equity market and foreign exchange risk factors. Conditional performance, as measured by a state dependent Jensen’s alpha, varies by economic regimes. Emerging market mutual funds provide strongly positive and significant state dependent alphas when the idiosyncratic volatility of emerging markets is small. Ignoring the existence of regimes could potentially …

So2 Policy And Input Substitution Under Spatial Monopoly, Shelby Gerking, Stephen F. Hamilton

Economics

Following the U.S. Clean Air Act Amendments of 1990, electric utilities dramatically increased their utilization of low-sulfur coal from the Powder River Basin (PRB). Recent studies indicate that railroads hauling PRB coal exercise a substantial degree of market power and that relative price changes in the mining and transportation sectors were contributing factors to the observed pattern of input substitution. This paper asks the related question: To what extent does more stringent SO2 policy stimulate input substitution from high-sulfur coal to low-sulfur coal when railroads hauling low-sulfur coal exercise spatial monopoly power? The question underpins the effectiveness of incentive-based environmental …

Economic Impact Of Arts And Culture In St. Petersburg, Maling Ebrahimpour, John Collins, Maria Luisa Corton

USF St. Petersburg Campus Faculty Publications

This report presents an analysis based on the input-output method to estimate the economic impact of the arts and culture business cluster in the Saint Petersburg area. The method consists of considering the economic linkages between the various sectors which cause every dollar of expenditures to "ripple through" the local economy resulting in every dollar of expenditures being multiplied to various degrees. The outcome is a larger economic effect than the initial expenditure. These "multiplier" effects continue to contribute to the economic impact of the expenditure until the effects "leave" the area of study or become too small to measure. …

Efficiency Gains From Transferable Water Rights, Joseph Ziska

All Theses

In times of drought, mandatory water restrictions are a popular option for local governments to prevent water shortages. The state of South Carolina has had mandatory water restrictions in various counties for nearly a third of the past decade. If there are heterogeneous consumers with varying marginal valuations for water, these mandatory restrictions may be economically inefficient. I calculate what welfare gains could be achieved for the state by allowing prices to fluctuate instead of imposing mandatory restrictions.
To perform this calculation, I assume a basic quadratic demand function for water with constant income elasticity. The water restrictions force all …

History-Disappointment Risk Attitude, David Dillenberger, Kareen Rozen

Cowles Foundation Discussion Papers

We propose a model of history-dependent risk attitude, allowing a decision maker’s risk attitude to be affected by his history of disappointments and elations. The decision maker recursively evaluates compound risks, classifying realizations as disappointing or elating using a threshold rule. We establish equivalence between the model and two cognitive biases: risk attitudes are reinforced by experiences (one is more risk averse after disappointment than after elation) and there is a primacy effect (early outcomes have the greatest impact on risk attitude). In dynamic asset pricing, the model yields volatile, path-dependent prices.

Should Auctions Be Transparent?, Dirk Bergemann, Johannes Hörner

Cowles Foundation Discussion Papers

We investigate the role of market transparency in repeated first-price auctions. We consider a setting with independent private and persistent values. We analyze three distinct disclosure regimes regarding the bid and award history. In the minimal disclosure regime each bidder only learns privately whether he won or lost the auction. In equilibrium the allocation is efficient and the minimal disclosure regime does not give rise to pooling equilibria. In contrast, in disclosure settings where either all or only the winner’s bids are public, an inefficient pooling equilibrium with low revenues exists.

Mediation And Peace, Johannes Hörner, Massimo Morelli, Francesco Squintani

Cowles Foundation Discussion Papers

This paper brings mechanism design to the study of conflict resolution in international relations. We determine when and how unmediated communication and mediation reduce the ex ante probability of conflict, in a simple game where conflict is due to asymmetric information. Unmediated communication helps reducing the chance of conflict as it allows conflicting parties to reveal their types and establish type-dependent transfers to avoid conflict. Mediation improves upon unmediated communication when the intensity of conflict is high, or when asymmetric information is large. The mediator improves upon unmediated communication by not precisely reporting information to conflicting parties, and precisely, by …

The Value Of Luminosity Data As A Proxy For Economic Statistics, Xi Chen, William D. Nordhaus

Cowles Foundation Discussion Papers

One of the pervasive issues in social and environmental research has been to improve the quality of socioeconomic data in developing countries. Because of the shortcoming of standard data sources, the present study examines luminosity (measures of nighttime lights) as a proxy for standard measures of output. The paper compares output and luminosity at the country levels and at the 1° x 1° grid-cell levels for the period 1992-2008. The results are that luminosity has very little value added for countries with high-quality statistical systems. However, it may be useful for countries with the lowest statistical grades, particularly for war-torn …

Measurement Issues Arising From The Growth Of Globalization: Conference Summary, Susan N. Houseman, Kenneth F. Ryder Jr.

External Papers and Reports

No abstract provided.

Should Auctions Be Transparent?, Dirk Bergemann, Johannes Hörner

Cowles Foundation Discussion Papers

We investigate the role of market transparency in repeated first-price auctions. We consider a setting with private and independent values across bidders. The values are assumed to be perfectly persistent over time. We analyze the first-price auction under three distinct disclosure regimes regarding the bid and award history. Of particular interest is the minimal disclosure regime, in which each bidder only learns privately whether he won or lost the auction at the end of each round. In equilibrium, the winner of the initial auction lowers his bids over time, while losers keep their bids constant, in anticipation of the winner’s …

Should Auctions Be Transparent?, Dirk Bergemann, Johannes Hörner

Cowles Foundation Discussion Papers

We investigate the role of market transparency in repeated first-price auctions. We consider a setting with independent private and persistent values. We analyze three distinct disclosure regimes regarding the bid and award history. In the minimal disclosure regime each bidder only learns privately whether he won or lost the auction. In equilibrium the allocation is efficient and the minimal disclosure regime does not give rise to pooling equilibria. In contrast, in disclosure settings where either all or only the winner’s bids are public, an inefficient pooling equilibrium with low revenues exists.

Trade Restrictiveness And Deadweight Losses From Us Tariffs, Douglas A. Irwin

Dartmouth Scholarship

This paper calculates a trade restrictiveness index, i.e., the uniform tariff that yields the same welfare loss as an existing tariff structure, for nearly a century of US data. The results show that the average tariff understates the TRI by about 75 percent. The static deadweight loss from US tariffs is about 1 percent of GDP after the Civil War, but falls almost continuously thereafter to less than one-tenth of 1 percent of GDP. Import duties produced an average welfare loss of 40 cents for every dollar of revenue, slightly higher than contemporary estimates of the marginal cost of taxation. …

Review Of Brooks, Stephen, Ed., Montgomery And The Battle Of Normandy: A Selection From The Diaries, Correspondence And Other Papers Of Field Marshal The Viscount Montgomery Of Alamein, January To August 1944, James V. Koch

Economics Faculty Publications

(First Paragraph) The stated goal of Montgomery and the Battle of Normandy is to "bring together the most important Bernard Montgomery documents for the period 1 January to 20 August 1944, reproduce each of the chosen documents in full and arrange them in a straightforward chronological order" (p. x). It is fair to say this volume achieves this goal, even though a batch of Montgomery documents already reproduced in full in other volumes was not included here.

Hotel Feasibility In The Recessionary Economy Of 2010: A Case Study In Reno, Nevada, Sang-Mun Cho

UNLV Theses, Dissertations, Professional Papers, and Capstones

In the aftermath of the economic crisis of 2008, it became evident that Nevada’s economy felt pains greater than that of the rest of the country. With sinking property values, opportunities may exist for the hotel investor. The purpose of this paper is to analyze the risks and benefits of acquiring a hotel property through the instrumentality of a hotel feasibility report. The literature review includes an evaluation of hotel feasibility analysis, its historical context, criticisms, and recommendations for performing effective studies. The case study part of this paper investigates the broader implications of hotel acquisition in the current recessionary …

Recovery, Leadership Efforts, And The Casino Industry In The Mississippi Gulf Coast Region After Hurricane Katrina, Ethan Jon Joella

Dissertations

The purpose of this study is to examine the following three interlocking areas of theory: a) casinos as economic engines; b) tourism recovery following a disaster or negative event; and, c) economic/social characteristics that facilitate recovery after disasters generally. This study examines the necessary ingredients for a speedy disaster recovery (typified in the casino industry on the Mississippi Gulf Coast).

This study employs a qualitative interview design with elite interviewing to test the theory and provide evidence and context to it. With interview questions informed by Rubin’s three elements that influence the recovery process within a community (Rubin as cited …

General Assistance Recipients And Welfare-To-Work Programs: Evidence From New York City, John Ifcher

Economics

General Assistance (GA) programs are virtually unstudied. Yet, GA programs serve an economically vulnerable, non-trivial population that should be of interest. To begin to address this shortcoming, two welfare-to-work programs, in which GA recipients participated, are studied. Using a quasi-experimental approach, the effect of each program on welfare use and employment is estimated. The results indicate that each program significantly increased welfare exits and that the second program significantly increased employment (employment data was unavailable for the first program).

Metropolitan Report - August 2010, Division Of Business And Economic Research, College Of Business Administration, University Of New Orleans

UNO Metropolitan Report (1986-2017)

No abstract provided.

The Ohio Energy Industry: Analysis Of The Ohio Energy Business Inventory Survey, Merissa C. Piazza

All Maxine Goodman Levin School of Urban Affairs Publications

No abstract provided.

Comparison Of Implied Volatility Approximations Using 'Nearest-To-The-Money' Option Premiums, Joseph Ewing

All Theses

Implied volatility provides information which is useful for not only investors, but farmers, producers, manufacturers and corporations. These market participants use implied volatility as a measure of price risk for hedging and speculation decisions. Because volatility is a constantly changing variable, there needs to be a simple and quick way to extract its value from the Black-Scholes model. Unfortunately, there is no closed form solution for the extraction of the implied volatility variable; therefore its value must be approximated. This study investigated the relative accuracy of six methods for approximating Black-Scholes implied volatility developed by Curtis and Carriker, Brenner and …

Revisiting The Impact Of The Designated Hitter On Major League Baseball, Andrew Cooley

All Theses

In 1973, team owners in Major League Baseball's American League voted in favor of introducing the designated hitter into their offensive lineups. The National League owners voted against such a rule change that year and since on several different occurrences. Baseball fans, sportswriters, players, owners, economists and others have weighed in on the impact of the designated hitter rule change on Major League Baseball. Chapter One of this paper reviews recent published writings by economists on the impact of the designated hitter. Team owners gave several reasons for advocating the dramatic designated rule change in the American League. Chapter Two …