Matching Items (10)
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- All Subjects: Econometrics
- All Subjects: risk
- Creators: Economics Program in CLAS
Description
This study estimates the capitalization effect of golf courses in Maricopa County using the hedonic pricing method. It draws upon a dataset of 574,989 residential transactions from 2000 to 2006 to examine how the aesthetic, non-golf benefits of golf courses capitalize across a gradient of proximity measures. The measures for amenity value extend beyond home adjacency and include considerations for homes within a range of discrete walkability buffers of golf courses. The models also distinguish between public and private golf courses as a proxy for the level of golf course access perceived by non-golfers. Unobserved spatial characteristics of the neighborhoods around golf courses are controlled for by increasing the extent of spatial fixed effects from city, to census tract, and finally to 2000 meter golf course ‘neighborhoods.’ The estimation results support two primary conclusions. First, golf course proximity is found to be highly valued for adjacent homes and homes up to 50 meters way from a course, still evident but minimal between 50 and 150 meters, and insignificant at all other distance ranges. Second, private golf courses do not command a higher proximity premia compared to public courses with the exception of homes within 25 to 50 meters of a course, indicating that the non-golf benefits of courses capitalize similarly, regardless of course type. The results of this study motivate further investigation into golf course features that signal access or add value to homes in the range of capitalization, particularly for near-adjacent homes between 50 and 150 meters thought previously not to capitalize.
ContributorsJoiner, Emily (Author) / Abbott, Joshua (Thesis director) / Smith, Kerry (Committee member) / Economics Program in CLAS (Contributor) / School of Sustainability (Contributor) / School of Mathematical and Statistical Sciences (Contributor) / Barrett, The Honors College (Contributor)
Created2018-05
Description
According to the Tax Policy Center, a joint project of the Brookings Institution and Urban Institute, the Earned Income Tax Credit (EITC) will provide 26 million households with 60 billion dollars of reduced taxes and refunds in 2015 \u2014 resources that serve to lift millions of families above the federal poverty line. Responding to the popularity of EITC programs and recent discussion of its expansion for childless adults, I select three comparative case studies of state-level EITC reform from 2005 to 2013. Each state represents a different kind of policy reform: the creation of a supplemental credit in Connecticut, credit reduction in New Jersey, and finally credit expansion for childless adults in Maryland. For each case study, I use Current Population Survey panel data from the March Supplement to complete a differences-in-differences (DD) analysis of EITC policy changes. Specifically, I analyze effects of policy reform on total earned income, employment and usual hours worked. For comparison groups, I construct unique counterfactual populations of northeastern U.S. states, using people of color with less than a college degree as my treatment group for their increased sensitivity to EITC policy reform. I find no statistically significant effects of policy creation in Connecticut, significant decreases in employment and hours worked in New Jersey, and finally, significant increases in earnings and hours worked in Maryland. My work supports the findings of other empirical work, suggesting that awareness of new supplemental EITC programs is critical to their effectiveness while demonstrating that these types of programs can affect the labor supply and outcomes of eligible groups.
ContributorsRichard, Katherine Rose (Author) / Dillon, Eleanor Wiske (Thesis director) / Silverman, Daniel (Committee member) / Herbst, Chris (Committee member) / Barrett, The Honors College (Contributor) / School of International Letters and Cultures (Contributor) / School of Mathematical and Statistical Sciences (Contributor) / Economics Program in CLAS (Contributor)
Created2015-05
Description
Did the amount of media attention to the H1N1 flu or the information that the Centers for Disease Control (CDC) disseminates about the H1N1 flu, influence individuals' decisions to avoid public locations during the 2009-2010 H1N1 Influenza pandemic? I investigate this question using weekly-confirmed H1N1 cases from the CDC, the American Time Use Survey (ATUS), and the Google Trends weekly search volume index for certain key terms. I found that individuals did exhibit some avoidance behaviour during the flu pandemic in response to the CDC data, but not the measures of media attention. However, the magnitudes of these adjustments are small in comparison to other measures of avoidance behaviour, such as reduced time in public during extreme weather events.
ContributorsGunn, Quentin Lee (Author) / Kuminoff, Nicolai (Thesis director) / Abbott, Joshua (Committee member) / Fenichel, Eli (Committee member) / Barrett, The Honors College (Contributor) / School of Mathematical and Statistical Sciences (Contributor) / Economics Program in CLAS (Contributor)
Created2013-12
Description
Economists, political philosophers, and others have often characterized social preferences regarding inequality by imagining a hypothetical choice of distributions behind "a veil of ignorance". Recent behavioral economics work has shown that subjects care about equality of outcomes, and are willing to sacrifice, in experimental contexts, some amount of personal gain in order to achieve greater equality. We review some of this literature and then conduct an experiment of our own, comparing subjects' choices in two risky situations, one being a choice for a purely individualized lottery for themselves, and the other a choice among possible distributions to members of a randomly selected group. We find that choosing in the group situation makes subjects significantly more risk averse than when choosing an individual lottery. This supports the hypothesis that an additional preference for equality exists alongside ordinary risk aversion, and that in a hypothetical "veil of ignorance" scenario, such preferences may make subjects significantly more averse to unequal distributions of rewards than can be explained by risk aversion alone.
ContributorsTheisen, Alexander Scott (Co-author) / McMullin, Caitlin (Co-author) / Li, Marilyn (Co-author) / DeSerpa, Allan (Thesis director) / Schlee, Edward (Committee member) / Baldwin, Marjorie (Committee member) / Barrett, The Honors College (Contributor) / Department of Economics (Contributor) / School of Mathematical and Statistical Sciences (Contributor) / Economics Program in CLAS (Contributor) / School of Historical, Philosophical and Religious Studies (Contributor)
Created2014-05
Description
This paper examines the qualitative and quantitative effects of the 2008 financial crisis on the current landscape of the investment banking industry. We begin by reviewing what occurred during the financial crisis, including which banks took TARP money, which banks became bank holding companies, and significant mergers and acquisitions. We then examine the new regulations that were created in reaction to the crisis, including the Dodd-Frank Act. In particular, we focus on the Volcker Rule, which is a section of the act that prohibits proprietary trading and other risky activities at banks. Then we shift into a quantitative analysis of the changes that banks made from the years 2005-2016. To do this, we chose four banks to be representative of the industry: Goldman Sachs, Morgan Stanley, J.P. Morgan, and Bank of America. We then analyze four metrics for each bank: revenue mix, value at risk, tangible common equity ratio, and debt to equity ratio. These provide methods for analyzing how banks have shifted their revenue centers to accommodate new regulations, as well as how these shifts have affected banks' risk levels and leverage. Our data show that all four banks that we observed shifted their revenue centers to flatter revenue areas, such as investment management, wealth management, and consumer banking operations. This was paired with fairly flat investment banking revenues across the board when controlling for overall market changes in the investment banking sector. Additionally, trading-focused banks significantly shifted their operations away from proprietary trading and higher risk activities. These changes resulted in lower value at risk measures for Goldman Sachs and Morgan Stanley with very minor increases for J.P. Morgan and Bank of America, although these two banks had low levels of absolute value at risk when compared to Goldman Sachs and Morgan Stanley. All banks' tangible common equity ratios increased and debt to equity ratios decreased, indicating a safer investment for shareholders and lower leverage. We conclude by offering a forecast of our expectations for the future, particularly in light of a Trump presidency. We expect less regulation going forward and the potential reversal of the Volcker Rule. We believe that these changes would result in more revenue coming from trading and riskier strategies, increasing value at risk, decreasing tangible common equity ratios, and increasing debt to equity ratios. While we do expect less regulation and higher risk, we do not expect these banks to reach pre-crisis levels due to the significant amount of regulations that would be particularly difficult for the Trump administration to reverse.
ContributorsPatel, Aashay (Co-author) / Goulder, Gregory (Co-author) / Simonson, Mark (Thesis director) / Hertzel, Michael (Committee member) / Department of Finance (Contributor) / Department of Economics (Contributor) / Economics Program in CLAS (Contributor) / Barrett, The Honors College (Contributor)
Created2017-05
Description
A desk provides an interesting forum between two people. The first party sits behind the desk while the second approaches with a question. The desk presents itself as a stage for the drama of that conversation to take place; as all furniture and property do, we naturally make assumptions about the owner based on the things they possess. Just as a Ferrari says one thing while a truck says something different, our furniture conveys a similar sensation. The desk is special because it acts as a stage - it can create a very subtle first impression of the person who owns it. The question then becomes, "what should I try to convey through the desk I sat behind?". If someone walked into my office and looked strictly at my desk, what impression would I want to give them about who I am as an individual? I conjunction with this question about the design of the desk itself comes to another question about the materials used. This thesis goes into the symbolic nature of wood in modern and ancient times across cultures, explores wood in modern construction today and explores the source of the wood used in this specific project through a supplier analysis of Porter Barn Wood. Porter Barn Wood is a local Phoenix company that specializes in reclaimed barn wood delivered from the east coast. Determining the story of how the wood got to Phoenix and to the company that made it possible was just as important to the story of the desk as the wood itself. Overall, this project explored my ability to construct a desk and build a story around that piece of art while maintaining a business mindset throughout. It was eye-opening to me and I would encourage you to read further!
ContributorsDuran, Alejandro Michael (Author) / Vitikas, Stanely (Thesis director) / Fleming, David (Committee member) / Economics Program in CLAS (Contributor) / Department of Supply Chain Management (Contributor) / Barrett, The Honors College (Contributor)
Created2018-05
Description
We examine the bias resulting from temporal and spatial aggregation of weather variables in environmental economics. In order to include temporally and/or spatially continuous environmental variables (such as temperature and precipitation), many studies discritize them. The finer the scale of discrization chosen, the more difficult it can be to obtain a complete and reliable data set. Studies performed at very fine scales often find tighter and more dramatic relationships between variables such as temperature and income per capita. We examine this question by repeating the same empirical study at various temporal and spatial scales and comparing the resulting parameter estimates.
ContributorsOber-Reynolds, Daniel Steven (Author) / Hanemann, Michael W. (Thesis director) / Kuminoff, Nicolai V. (Committee member) / School of Historical, Philosophical and Religious Studies (Contributor) / Economics Program in CLAS (Contributor) / School of Mathematical and Statistical Sciences (Contributor) / Barrett, The Honors College (Contributor)
Created2016-05
Description
This study estimates the effect of district wealth on Arizona Empowerment Scholarship Account program participation using data from the Arizona Department of Education. We find that students from poor districts are not more likely to participate as school performance decreases.Conversely, those from wealthy districts do increase participation as school performance decreases. We briefly try to explain the observed heterogeneity through survey results and commenting on the program design.
ContributorsAngel, Joseph Michael (Author) / Kostol, Andreas (Thesis director) / Kuminoff, Nicolai (Committee member) / Economics Program in CLAS (Contributor) / School of Mathematical and Statistical Sciences (Contributor) / Barrett, The Honors College (Contributor)
Created2021-05
Description
This paper examines infrastructure spending in a model economy. Infrastructure is subdivided into two types: one that makes future production more efficient, and another that decreases the risk of devastation to the future economy. We call the first type base infrastructure, and the second type risk-reducing infrastructure. Our model assumes that a single representative individual makes all the decisions within a society and optimizes their own total utility over the present and future. We then calibrate an aggregate economic, two-period model to identify the optimal allocation of today’s output into consumption, base infrastructure, and risk-reducing infrastructure. This model finds that many governments can make substantive improvements to the happiness of their citizens by investing significantly more into risk-reducing infrastructure.
ContributorsFink, Justin (Co-author) / Fuller, John "Jack" (Co-author) / Prescott, Edward (Thesis director) / Millington, Matthew (Committee member) / School of Mathematical and Statistical Sciences (Contributor, Contributor) / Economics Program in CLAS (Contributor) / Barrett, The Honors College (Contributor)
Created2021-05
Description
This paper seeks to highlight the strong correlation and potential causation between the presence of physical community bank branches in rural communities and local economic outcomes like payroll, employment, and establishments in a given region. To do this, I conduct a two-part analysis involving a fixed effects model with data from across the US and a regression discontinuity model of a subset of the data in parts of Delaware and Maryland. Overall, my results show a significant strong correlation between the number of bank branches in a region and the expected percent changes in economic outcomes, but I lack the results to claim causality between the opening or closure of a bank branch and changes in the local economy. This has relevance in understanding the need for physical bank branches as changes in the financial industry since the 2008 Financial Crisis, like online banking, have continued to accelerate.
ContributorsRodriguez, Luke (Author) / McDaniel, Cara (Thesis director) / Kuminoff, Nicolai (Committee member) / Barrett, The Honors College (Contributor) / School of Human Evolution & Social Change (Contributor) / School of International Letters and Cultures (Contributor) / Economics Program in CLAS (Contributor)
Created2022-12