Matching Items (5)
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- All Subjects: risk
- Creators: Economics Program in CLAS
- Member of: Barrett, The Honors College Thesis/Creative Project Collection
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
In Memory of an Emily is a piece of creative nonfiction and a short film that together detail the author’s experience with mental illness in the collegiate environment. In its 45 pages, Jackman begins to detail the realities of living with depression, anxiety, and anorexia nervosa. The piece includes five sections of writing, including a preface and four portions describing freshman to senior year. Each section endeavors to explore simplistic and purposefully cliché events common in young adult/collegiate life and juxtapose the banal nature of these events with the experience of the mentally ill. Her story endeavors to explore the emotional truths of pain and suffering, revealing that beneath her tender façade lies a very different existence, one tangled in eating disorders, panic attacks, and overwhelming sadness. While maintaining a story-like quality traditional to creative non-fiction, Jackman ventures to warn with a cautionary tale of pathologizing abnormality and exploring the long lasting effects of childhood trauma. Weaving careful storytelling into an exploration of the mentally ill mind, Jackman keeps the reader both terrifyingly close and far away, whispering painful secrets and then desperately running away with the truth. She speaks frankly of all aspects of life, ranging from far more mundane events, such as break ups and college rejection letters, to complicated issues, such as the suicide of her grandfather and her admission into an eating disorder facility. The author attempts to establish a balanced rapport with the reader, recognizing the need to maintain distance and elicit emotion simultaneously. Jackman writes In Memory of an Emily as a heartbreaking but authentic tale, playing with stream of consciousness and paralyzing emotional description. She opens the door and invites the reader into her mind so as to share in the physical and emotional discomfort of the storyteller, but then promptly slams the door once inside.
ContributorsJackman, Emily Deprey (Author) / Soares, Rebecca (Thesis director) / Barca, Lisa (Committee member) / Economics Program in CLAS (Contributor) / Department of Psychology (Contributor) / School of Mathematical and Statistical Sciences (Contributor) / Barrett, The Honors College (Contributor)
Created2018-05
Description
The following creative project defends that, whether intentionally or not, mental illness and substance abuse are inevitably romanticized in young adult media and discusses the dangers of this romanticization. This project is divided into three parts. The first part consists of psychological evaluations of the main characters of two popular, contemporary forms of young adult media, Catcher in the Rye by J.D Salinger and Euphoria by Sam Levinson. These evaluations use textual evidence and the Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition (DSM-5) to determine what symptoms of psychopathology the characters appear to display. The second part consists of a self-written short story that is meant to accurately depict the life of a young adult struggling with mental illness and substance abuse. This story contains various aesthetic techniques borrowed from the two young adult media forms. The final part consists of an aesthetic statement which discusses in depth the aesthetic techniques employed within the short story, Quicksand by Anisha Mehra.
ContributorsMehra, Anisha (Author) / Cryer, Michael (Thesis director) / Cavanaugh Toft, Carolyn (Committee member) / Department of Psychology (Contributor) / Dean, The College of Liberal Arts and 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