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This dissertation comprises three chapters.
In chapter one, using a rich dataset for the United States, I estimate a series of models to document the birth order effects on cognitive outcomes, non-cognitive outcomes, and parental investments. I estimate a model that allows for heterogeneous birth order effects by unobservables to examine how birth order effects varies across households. I find that first-born children score 0.2 of a standard deviation higher on cognitive and non-cognitive outcomes than their later-born siblings. They also receive 10\% more in parental time, which accounts for more than half of the differences in outcomes. I document that birth order effects vary between 0.1 and 0.4 of a standard deviation across households with the effects being smaller in households with certain characteristics such as a high income.
In chapter two, I build a model of intra-household resource allocation that endogenously generates the decreasing birth order effects in household income with the aim of using the model for counterfactual policy experiments. The model has a life-cycle framework in which a household with two children confronts a sequence of time constraints and a lifetime monetary constraint, and divides the available time and monetary resources between consumption and investment. The counterfactual experiment shows that an annual income transfer of 10,000 USD to low-income households decreases the birth order effects on cognitive and non-cognitive skills by one-sixth, which is five times bigger than the effect in high-income household.
In chapter three, with Francesco Agostinelli and Matthew Wiswall, we examine the relative importance of investments at home and at school during an important transition for many children, entering formal schooling at kindergarten. Moreover, our framework allows for complementarities between children's skills and investments from schools. We find that investments from schools are an important determinant of children's skills at the end of kindergarten, whereas parental investments, although strongly correlated with end-of-kindergarten outcomes, have smaller effects. In addition, we document a negative complementarity between children's skills at kindergarten entry and investments from schools, implying that low-skill children benefit the most from an increase in the quality of schools.
In chapter one, using a rich dataset for the United States, I estimate a series of models to document the birth order effects on cognitive outcomes, non-cognitive outcomes, and parental investments. I estimate a model that allows for heterogeneous birth order effects by unobservables to examine how birth order effects varies across households. I find that first-born children score 0.2 of a standard deviation higher on cognitive and non-cognitive outcomes than their later-born siblings. They also receive 10\% more in parental time, which accounts for more than half of the differences in outcomes. I document that birth order effects vary between 0.1 and 0.4 of a standard deviation across households with the effects being smaller in households with certain characteristics such as a high income.
In chapter two, I build a model of intra-household resource allocation that endogenously generates the decreasing birth order effects in household income with the aim of using the model for counterfactual policy experiments. The model has a life-cycle framework in which a household with two children confronts a sequence of time constraints and a lifetime monetary constraint, and divides the available time and monetary resources between consumption and investment. The counterfactual experiment shows that an annual income transfer of 10,000 USD to low-income households decreases the birth order effects on cognitive and non-cognitive skills by one-sixth, which is five times bigger than the effect in high-income household.
In chapter three, with Francesco Agostinelli and Matthew Wiswall, we examine the relative importance of investments at home and at school during an important transition for many children, entering formal schooling at kindergarten. Moreover, our framework allows for complementarities between children's skills and investments from schools. We find that investments from schools are an important determinant of children's skills at the end of kindergarten, whereas parental investments, although strongly correlated with end-of-kindergarten outcomes, have smaller effects. In addition, we document a negative complementarity between children's skills at kindergarten entry and investments from schools, implying that low-skill children benefit the most from an increase in the quality of schools.
ContributorsSaharkhiz, Morteza (Author) / Silverman, Daniel (Thesis advisor) / Wiswall, Matthew (Thesis advisor) / Aucejo, Esteban (Committee member) / Veramendi, Gregory (Committee member) / Arizona State University (Publisher)
Created2018
Description
South Mountain is the largest municipal park in the nation. It is a bundled amenity, providing a series of linked services to the surrounding communities. A dataset of 19,209 homes in 155 neighborhoods within three miles of the park was utilized in order to complete a hedonic estimation for two nearby urban villages, Ahwatukee Foothills and South Mountain Village. Measures of access include proximity to the park, trailhead access, and adjacency to the park. Two regressions were estimated, the first including lot characteristics and subdivision fixed effects and the second using the coefficients for each subdivision as the dependent variable. These estimates describe how the location of a house in a subdivision contributes to its conditional mean price. As a result they offer a direct basis for capturing amenities measured at the neighborhood scale on home values. Park proximity, trailhead access and adjacency were found to significantly influence the price of homes at the 5% confidence level in Ahwatukee, but not in South Mountain Village. The results of this study can be applied to issues of environmental justice and park access in determining which areas and attributes of the park are associated with a high premium. Though South Mountain was preserved some time ago, development and future preservation in the City of Phoenix can be informed by such studies.
ContributorsRamakrishna, Saritha Kambhampati (Author) / Abbott, Joshua (Thesis director) / Smith, V. Kerry (Committee member) / Schoon, Michael (Committee member) / Barrett, The Honors College (Contributor) / School of Sustainability (Contributor) / Economics Program in CLAS (Contributor) / Department of English (Contributor)
Created2015-05
Description
Is nuclear power sustainable when compared to other energy sources? A truly sustainable energy source provides an environmental benefit, minimizes costs to consumers both socially and economically, and continues to do so in both the short and the long term. Taking the zero-carbon nature of nuclear generation as its net environmental benefit, this paper the evaluates the economic and social costs of nuclear power to determine if nuclear power's reputation as "unsustainable" is warranted. The sustainability of nuclear power is evaluated in two main categories. The first part focuses on the economics of nuclear power. There are many preconceived notions regarding nuclear power and its associated industry. This section addresses those notions to determine their validity given recent data. The prevalent types of nuclear plants across the U.S., the economics of the stages of nuclear energy production, and its competitiveness relative to other energy sources are addressed, culminating in an evaluation of its modern economic attractiveness as well as its future economic viability. A sustainability assessment would not be complete without addressing the social costs of an energy source, as a sustainable source must be both economically and socially viable. If it can be established that nuclear power can provide energy at lower rates and at a lower cost in terms of externalities, then it would be considered truly sustainable. To investigate those externalities, the second part of the analysis focuses on the human costs associated with the various stages of nuclear energy production. Those costs are then compared to those of alternatives sources of power, and selected case studies are examined to illustrate the ultimate risks associated with nuclear power operations. By quantifying these aspects and comparing the results to alternatives in the field, a better understanding of nuclear energy technology and its potential is achieved. The reader can then ascertain whether nuclear power's reputation as being "unsustainable" is, or is not, a reputation it deserves.
ContributorsRudolph, Alexander James (Author) / Miller, Clark (Thesis director) / Richter, Jennifer (Committee member) / School of Sustainability (Contributor) / School of Politics and Global Studies (Contributor) / Barrett, The Honors College (Contributor)
Created2018-05
Description
Yearly changes in the consumer price index are used to adjust social security benefits in order to keep the purchasing power of social security beneficiaries the same. Currently, social security benefits are adjusted using a fixed-weighted price index that reflects the purchasing patterns of workers. However, some believe that a price index that captures the spending habits of the elderly should adjust monthly social security benefits, while others argue that a chain-weighted price index is a more accurate indexation technique. This report finds that if an elderly or chain-weighted price index were implemented this year, there would not be a significant change in the projected insolvency of the social security trust fund, but there could be a substantial decrease in the social security trust fund's yearly cash-flow deficit. Therefore, changing the indexation of social security benefits should not be seen as a short-term solvency fix. Instead, adjusting monthly social security benefits should be about keeping the purchasing power of beneficiaries relatively the same.
ContributorsScobas, Peter Jonathan (Author) / Hobijn, Bart (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)
Created2017-05
Description
Existing research into the health benefits of insurance fall into two major categories \u2014 observational and experimental. Observational studies have centered on data sets from before 2000 and focus on the mortality differences between the privately insured and the uninsured. Experimental studies began with Massachusetts' 2006 health reform and continued after the passage of the Affordable Care Act. These studies measure the effects of public insurance among the coverage expansion populations. These two bodies of literature come to ambiguous and contradictory conclusions to the mortality effects and health value of insurance. This study extends the observational methodologies to the publicly insured in samples from the National Health and Nutrition Examination Survey in both the 1988-1994 survey and the 2001-2002 survey. Using the Cox Proportional Hazard model, this study estimates the hazard ratios faced by the privately and publicly insured compared to the uninsured. This study finds the publicly insured face hazards 1.5 times those of the uninsured (p<.001), while the privately insured do not face hazards significantly different from those of the uninsured. Literature suggests that some unobserved characteristic of the publicly insured are influencing their mortality. Interacting with participants health reveals that these differences across groups shrink as health declines. Experimental literature suggests that public insurance lowers the uninsured risk from "healthcare amenable" conditions. Treatment of these conditions may explain the hazard reductions among the uninsured in non-excellent health. The high risk of the publicly insured in excellent health defies explanation.
ContributorsMorita, Aidan James Donnelly (Author) / Veramendi, Gregory (Thesis director) / Zafar, Basit (Committee member) / School of Mathematical and Statistical Sciences (Contributor) / Economics Program in CLAS (Contributor) / School of Sustainability (Contributor) / Barrett, The Honors College (Contributor)
Created2018-05
Description
In this paper I seek to understand how consumers value music today by investigating what consumers are willing to pay for digitally downloaded songs (such as the ones available on the iTunes or Amazon music stores) and the variety of factors that influence their willingness to pay. I conducted a survey and received over 500 responses regarding willingness to pay for single-song downloads, consumer sentiment on whether music should be free, streaming service use, and other information pertaining to music consumption behavior. Through this research I found that paid-streamers are willing to pay more for songs than those who do not pay to stream, all else being equal. Further, Free-streamers are not willing to pay significantly more or less than non-streamers. This finding is additional information to other research that suggests streaming acts as a substitute for sales. I also found that most consumers are in the middle when it comes to the debate for whether music should always be free or always be purchased. Where someone aligns on the spectrum is a statistically significant contributing factor to what that person is willing to pay for a song. My findings also suggest that consumer preferences distinguish between benefit derived from music ownership and benefit derived from the ability to listen to music. This information sheds more light on the reason behind the declining digital download market.
ContributorsRodriguez, Stefan Daniel (Author) / Mandel, Naomi (Thesis director) / Veramendi, Gregory (Committee member) / Department of Economics (Contributor) / Department of Finance (Contributor) / Department of Information Systems (Contributor) / Barrett, The Honors College (Contributor)
Created2018-05
Description
Family economics uses economic concepts such as productions and decision making to understand family behavior. Economists place emphasis on the rule of families on labor supply, human capital investment, and consumption. In a household, the members choose the optimal time allocations between working, housework and leisure, and money between consumption of different members and savings. One-Child policy and strong inter-generational connections cause unique family structure in China. Households of different generations provide income transfer and labor support to each other. Households consider these connections in their savings, labor supply, human capital investment, fertility and marriage decisions. Especially, strong intergenerational relationships in China are one cause of the high level of young female labor supply and high saving rate. I will investigate the rules of intergenerational relationships on household economic behavior.
Affirmative Action allocates college seats to a separate group. To evaluate the distribution effects of AA on discrete groups, we need to study household's strategic reactions on the rule of college seats allocation. The admission system of National College Entrance Examination in China is a type of AA. That distributes college seats by regions. I will use the rapid expansion of Chinese college enrollment as a natural experiment to check the households' reaction on AA and college expansion.
Media economics utilizes economic empirical and theoretical tools to figure out the social, cultural, and economic issues in media industries. The impact of online piracy on genuine products sales is under debate, because people cannot find representing proxies to evaluate piracy levels. I will use Chinese data to study the effects of online piracy on theater revenue.
Affirmative Action allocates college seats to a separate group. To evaluate the distribution effects of AA on discrete groups, we need to study household's strategic reactions on the rule of college seats allocation. The admission system of National College Entrance Examination in China is a type of AA. That distributes college seats by regions. I will use the rapid expansion of Chinese college enrollment as a natural experiment to check the households' reaction on AA and college expansion.
Media economics utilizes economic empirical and theoretical tools to figure out the social, cultural, and economic issues in media industries. The impact of online piracy on genuine products sales is under debate, because people cannot find representing proxies to evaluate piracy levels. I will use Chinese data to study the effects of online piracy on theater revenue.
ContributorsYue, Yang (Author) / Silverman, Daniel (Thesis advisor) / Kovrijnykh, Natalia (Committee member) / Veramendi, Gregory (Committee member) / Arizona State University (Publisher)
Created2017
Description
This thesis looks at the theory and empirical evidence that surrounds the debate between environmentalists and economists regarding the link between trade liberalization and environmental degradation. The main points of the theory are the scale, composition, and technique effects which, when aggregated, are ambiguous as the harm or benefit of trade's effect on the environment. The empirical evidence studied ranges in time periods from the early 1990s to 2011 and mainly focuses on the existence or absence of an environmental Kuznets curve for certain pollutant. However, the data still proves to be inconclusive. The debate about the possible link between trade and the environment is as important as ever, especially in regards to carbon dioxide emissions. Going forward, it is extremely important that international cooperation regarding emissions targets and abatement goals increases. Trade will prove to be an invaluable tool in this endeavor as it provides a mechanism for the spread of green technology as well as can be used as a method of environmental policy enforcement.
ContributorsCotterell, Emily Claire (Author) / Mendez, Jose (Thesis director) / McDaniel, Cara (Committee member) / School of Sustainability (Contributor) / Department of Economics (Contributor) / Department of Supply Chain Management (Contributor) / W. P. Carey School of Business (Contributor) / Barrett, The Honors College (Contributor)
Created2016-05
Description
Upon hiring a new college graduate, employers are left with limited information about the true productivity of the individual, mainly based on the information provided via resume and other related documents. Based on the information, which may include (and is not limited to) education years, grade point average(s), the institution one attended, majors, etc., employers attempt to differentiate between the candidates. Existing employer learning literature, such as Altonji and Pierret (2001) and Peter Arcidiacono, Patrick Bayer, and Aurel Hizmo (2010), have found that employers statistically discriminate upon hiring and estimate wages based on expected productivity conditional to observable characteristics--specifically education. As one's work experience accumulates, the wages are adjusted to the newly learned characteristics correlated with productivity. Thus, college graduates are more appealing as job candidates than high school graduates, with little learning done with experience in the labor market as employers have a more accurate depiction on productivity with more education years. With rising demands for high-skilled labor, there is a growing interest on what employers learn about from the name of the college listed on one's resume, as varying ability students sort into varying quality colleges. I include a one-dimensional index of college quality, as similarly constructed by Eleanor Dillon and Jeffrey Smith (2015), to measure the effects of attending a highly-selective institution in predicting individual ability. This paper provides additional support for the employer learning model on college graduates, with an emphasis on the direct role that college quality has at the start of one's career. Although college quality appears to be influential in providing employers additional information on one's productivity, unlike education, the weight placed on it by employers does not change with experience in the labor market. I further investigate within the college market and provide possible explanations behind learning on the basis of college quality, including: the possibility of information explained by quality unrelated to one's ability and the effects of attending a highly selective college.
ContributorsNam, Jimin (Author) / Veramendi, Gregory (Thesis director) / Dillon, Eleanor (Committee member) / School of Mathematical and Statistical Sciences (Contributor) / Department of Economics (Contributor) / Barrett, The Honors College (Contributor)
Created2016-05
Description
Agent based models allow for complex results from simple parameters. The mobile agents in my model, the firms, are allocated an amount of capital, while the static agents, the workers, are allocated a range of wages. The firms are then allowed to move around and compete until they match with a worker that maximizes their production. It was found from the simulation that as competition increases so do wages. It was also found that when firms stay in the environment for longer that a higher wage is possible as a result of a larger window for drawn out competition. The different parameters result in a range of equilibriums that take variable amounts of time to reach. These results are interesting because they demonstrate that the mean wage is strongly dependent upon the window of time that firms are able to compete within. This type of model was useful because it demonstrated that there is a variation in the time dependence of the equilibrium. It also demonstrated that when there is very little entry and exiting of the market, that wage levels out at an equilibrium that is the same, regardless of the ratio between the number of firms and the number of workers. Further work to be done on this model includes the addition of a Matching Function so that firms and workers have a more fair agreement. I will also be adding parameters that allow for firms to see the workers around them so that firms are able to interact with multiple workers at the same time. Both of these alteration should improve the overall accuracy of the model.
ContributorsElledge, Jacob Morris (Author) / Veramendi, Gregory (Thesis director) / Murphy, Alvin (Committee member) / Department of Economics (Contributor) / Department of Physics (Contributor) / Barrett, The Honors College (Contributor)
Created2015-12