Matching Items (149)
Description
This dissertation consists of three essays that broadly deal with the international economics and development. The first chapter provides empirical evidence of the prevalence and importance of intangible capital transfer within multinational corporations (MNCs). Using a unique data set of Korean multinational foreign affiliates, I find that most of the foreign affiliates have managers transferred from their parent, while almost half are isolated from the parent in terms of physical trade. Furthermore, the transferred managers are positively associated with labor productivity, while physical trade from the parent is less so. I consider two possibilities for this productivity effect: (1) the managers transferred from the parent are simply more efficient than native managers; and (2) they provide knowledge that increases the productivity of all inputs. I find that the latter is consistent with the data. My findings provide evidence that transferring managers from the parent is a main source of benefit from foreign direct investment (FDI) to foreign affiliates because the managers transfer firm-specific knowledge. The second chapter analyzes importance role of service or other sectors for economic growth of manufacturing. Productivity in agriculture or services has long been understood as playing an important role in the growth of manufacturing. In this paper we provide an endogenous growth model in which manufacturing growth is stimulated by the non-manufacturing sector that provides goods used for both research and final consumption. The model permits to evaluatation of two policy options for stimulating manufacturing growth: (1) a country imports more non-manufacturing goods from a foreign country with a higher productivity; or (2) the country increases productivity of domestic non-manufacturing. We find that both policies increase welfare of the economy, but depending on the policy the manufacturing sector responses differently. Specifically, employment and value added in manufacturing rise with policy (1), but contract with policy (2). Therefore, specialization through importing non-manufacturing goods explains how some Asian economies experience fast growth in the manufacturing sector without progress in the other sectors. The third chapter tests for the importance of composition effects in affecting levels and changes of education wage premiums. In this paper I revisit composition effects in the context of Korea. Korea's large and rapid expansion of education makes it an ideal place to look for composition effects. A large, policy-induced increase in attainment in the 1980s offers additional scope for identifying composition effects. I find strong evidence that the policy-induced expansion of education lowered education wage premiums for the affected cohorts, but only weak evidence that the trend expansion of education lowered education wage premiums.
ContributorsCho, Jaehan (Author) / Silverman, Daniel (Thesis advisor) / Prescott, Edward C. (Committee member) / Schoellman, Todd (Committee member) / Arizona State University (Publisher)
Created2014
Description
This dissertation consists of two essays. The first measures the degree to which schooling accounts for differences in industry value added per worker. Using a sample of 107 economies and seven industries, the paper considers the patterns in the education levels of various industries and their relative value added per worker. Agriculture has notably less schooling and is less productive than other sectors, while a group of services including financial services, education and health care has higher rates of schooling and higher value added per worker. The essay finds that in the case of these specific industries education is important in explaining sector differences, and the role of education all other industries are less defined. The second essay provides theory to investigate the relationship between agriculture and schooling. During structural transformation, workers shift from the agriculture sector with relatively low schooling to other sectors which have more schooling. This essay explores to what extent changes in the costs of acquiring schooling drive structural transformation using a multi-sector growth model which includes a schooling choice. The model is disciplined using cross country data on sector of employment and schooling constructed from the IPUM International census collection. Counterfactual exercises are used to determine how much structural transformation is accounted for by changes in the cost of acquiring schooling. These changes account for small shares of structural transformation in all economies with a median near zero.
ContributorsSchreck, Paul (Author) / Herrendorf, Berthold (Committee member) / Lagakos, David (Committee member) / Schoellman, Todd (Committee member) / Arizona State University (Publisher)
Created2011
Description
This dissertation studies two wide ranging phenomena and their socio-economic impacts: urban divergence in terms of geographical skill sorting and fast rising housing prices. The first essay explores the empirical pattern as well as the driving forces behind the American cities’ diverging path over the past forty years. Compared to the rest of the U.S. cities, the top 20 largest cities have been growing faster in several aspects, such as city-average wage, housing price, and measured innovation intensity (e.g., patents, venture capital). In addition, this geographical divergence has contributed substantially to the rising inequality in America. To explore the causes of this divergence, this paper constructs a spatial sorting model where entrepreneurs with different talents can freely move across cities. The key idea is that cities with advantages in innovation attract more productive entrepreneurs and more workers, thereby driving up wages and housing prices. Two things distinguish my models from others: 1. Large cities are having endogenous innovation advantage in equilibrium; 2. I can freely explore the driving forces behind the divergence, with an emphasis on how technology changes can reinforce the spatial sorting mechanism. Specifically, three types of technological changes have increased the benefits of skill clustering in innovative cities: general productivity increases; improvements in communications technologies; and declines in trade costs.
The second essay studies how heterogeneous households respond to the fast rising housing prices through their life-cycle behaviors. Chinese housing market has been undergoing a rapid booming period since 1998, causing the house prices increasing significantly. As a result, households endured severe financial burdens to buy homes at price-to-income ratios of around six. Along with the rising house prices, household savings rate has been increasing consistently since 1998. Can the rising house prices be an important factor to explain the increase in household saving rate? This paper develops a life cycle dynastic model with endogenous choice on housing, coresidence and intergenerational transfer, then quantitatively analyze the effect of housing price on household saving. It shows that housing is an important motive for saving, and it accounts for about 35% of the increase in household savings rate. The housing situation affects households’ saving behavior through three channels. First, households are financially constrained due to the down payment requirement and they choose to limit their consumption in order to buy houses. Second, young adults live in their parents’ houses for a long time and save more intensively, since they get to pay less for the housing expenses under coresidence. Thirdly, older parents make large sum of intergeneration transfer in aid of the children’s housing purchase, indicating the housing affordability issue also has influence on old parents’ saving decisions.
The second essay studies how heterogeneous households respond to the fast rising housing prices through their life-cycle behaviors. Chinese housing market has been undergoing a rapid booming period since 1998, causing the house prices increasing significantly. As a result, households endured severe financial burdens to buy homes at price-to-income ratios of around six. Along with the rising house prices, household savings rate has been increasing consistently since 1998. Can the rising house prices be an important factor to explain the increase in household saving rate? This paper develops a life cycle dynastic model with endogenous choice on housing, coresidence and intergenerational transfer, then quantitatively analyze the effect of housing price on household saving. It shows that housing is an important motive for saving, and it accounts for about 35% of the increase in household savings rate. The housing situation affects households’ saving behavior through three channels. First, households are financially constrained due to the down payment requirement and they choose to limit their consumption in order to buy houses. Second, young adults live in their parents’ houses for a long time and save more intensively, since they get to pay less for the housing expenses under coresidence. Thirdly, older parents make large sum of intergeneration transfer in aid of the children’s housing purchase, indicating the housing affordability issue also has influence on old parents’ saving decisions.
ContributorsSun, Minjuan (Author) / Schoellman, Todd (Thesis advisor) / Ventura, Gustavo (Committee member) / Vereshchagina, Galina (Committee member) / Arizona State University (Publisher)
Created2018
Description
This dissertation consists in two chapters. In the first chapter I collected and digitized historical tax records from the Spanish colonial regime in Ecuador to estimate the long-run effects of a forced labor institution called concertaje on today’s economic performance. This institution allowed landlords to retain indigenous workers due to unpaid debts, and forced them to work as peasants in rural estates known as haciendas. In order to identify the causal effects of concertaje, I exploit variation in its intensity caused by differences in labor requirements from the crops a region could grow. I first report that an increase in 10 percentage points in concertaje rates is associated with a 6 percentage points increase in contemporary poverty. I then explore several channels of persistence. Districts with higher concertaje rates have been historically associated with higher illiteracy rates, lower school enrollment, and populations with fewer years of education. I also report that concertaje is associated with a higher fraction of people working nowadays in the agricultural sector.
In the second chapter I use administrative data on the ownership, management, and taxes for the universe of all firms in Ecuador to study the role of family management in firm dynamics and its implications for aggregate productivity. A novel finding I document is that family-managed firms grow half as quickly as externally-managed firms. This growth differential implies that family-managed firms account for half of employment, despite comprising 80% of firms. I construct a general equilibrium model of firm dynamics that is consistent with these facts. Entrepreneurs choose whether to utilize family members as managers or hire external managers. External managers allow firms to scale up production, but their efficiency is a affected due to contractual frictions. Changes in the contractual environment that lead to a drop in the presence of family-managed firms by half could increase output on the order of 6%, as firms that abandon family management enjoy rapid growth.
In the second chapter I use administrative data on the ownership, management, and taxes for the universe of all firms in Ecuador to study the role of family management in firm dynamics and its implications for aggregate productivity. A novel finding I document is that family-managed firms grow half as quickly as externally-managed firms. This growth differential implies that family-managed firms account for half of employment, despite comprising 80% of firms. I construct a general equilibrium model of firm dynamics that is consistent with these facts. Entrepreneurs choose whether to utilize family members as managers or hire external managers. External managers allow firms to scale up production, but their efficiency is a affected due to contractual frictions. Changes in the contractual environment that lead to a drop in the presence of family-managed firms by half could increase output on the order of 6%, as firms that abandon family management enjoy rapid growth.
ContributorsRivadeneira Acosta, Alex Pierre (Author) / Ventura, Gustavo (Thesis advisor) / Vereshchagina, Galina (Committee member) / Schoellman, Todd (Committee member) / Arizona State University (Publisher)
Created2019
Description
An ethical dilemma is not a matter of “right” versus “wrong,” but rather it is a situation of conflicting values. A common ethical dilemma is that of honesty versus loyalty—is it better to tell the truth, or remain loyal to the company? In the Japanese culture, truth is circumstantial and can vary with different situations. In a way, the Japanese idea of honesty reflects how highly they value loyalty. This overlap of values results in the lack of an ethical dilemma for the Japanese, which creates a new risk for fraud. Without this struggle, a Japanese employee does not have strong justification against committing fraud if it aligns with his values of honesty and loyalty.
This paper looks at the Japanese values relating to honesty and loyalty to show how much these ideas overlap. The lack of a conflict of values creates a risk for fraud, which will be shown through an analysis of the scandals of two Japanese companies, Toshiba and Olympus. These scandals shine light on the complexity of the ethical dilemma for the Japanese employees; since their sense of circumstantial honesty encourages them to lie if it maintains the harmony of the group, there is little stopping them from committing the fraud that their superiors asked them to commit.
In a global economy, understanding the ways that values impact business and decisions is important for both interacting with others and anticipating potential conflicts, including those that may result in or indicate potential red flags for fraud.
This paper looks at the Japanese values relating to honesty and loyalty to show how much these ideas overlap. The lack of a conflict of values creates a risk for fraud, which will be shown through an analysis of the scandals of two Japanese companies, Toshiba and Olympus. These scandals shine light on the complexity of the ethical dilemma for the Japanese employees; since their sense of circumstantial honesty encourages them to lie if it maintains the harmony of the group, there is little stopping them from committing the fraud that their superiors asked them to commit.
In a global economy, understanding the ways that values impact business and decisions is important for both interacting with others and anticipating potential conflicts, including those that may result in or indicate potential red flags for fraud.
ContributorsTabar, Kelly Ann (Author) / Samuelson, Melissa (Thesis director) / Goldman, Alan (Committee member) / WPC Graduate Programs (Contributor) / W.P. Carey School of Business (Contributor) / School of Accountancy (Contributor) / Barrett, The Honors College (Contributor)
Created2018-05
Description
The purpose of this study was to create a screening tool specifically for the identification of sex trafficking victims in the medical setting through the analysis of existing human trafficking screening tool studies geared towards use in the medical setting. Screening questions from these studies were compiled and modified into a survey that was distributed to healthcare professionals through the nationwide HEAL (Health Professional Education, Advocacy, Linkage) Trafficking listserv. Each screening tool study demonstrated benefits and disadvantages that were helpful in the sampling and selection of screening tool questions. The small sample size and a lack of data on the attitudes of medical professionals on sex trafficked victims were noted as limitations to this study. Further implications for this study would include validating the screening tool questions in a medical setting to determine the sensitivity of the survey in identifying patients as possible sex trafficking victims.
ContributorsCatano, Karen Samantha (Co-author) / Byun, Jiwon (Co-author) / Roe-Sepowitz, Dominique (Thesis director) / Lee, Maurice (Committee member) / School for the Science of Health Care Delivery (Contributor) / College of Integrative Sciences and Arts (Contributor) / W.P. Carey School of Business (Contributor) / Barrett, The Honors College (Contributor)
Created2018-05
Description
Amidst transition are the citizens living and forging identity. This thesis is divided into three portions including Scotland, the Czech Republic, and Taiwan. Each section includes a history, literature, and interview investigation.
The analysis of Scotland includes the examination of identity as a consequence of Scottish history, the Scottish Referendum, and the Brexit Referendum. National identity is explored through literature and through the analysis of Dr. Neal McGarvey, a Scottish Economic Councilman, and Arizona State University exchange student Scott Fyfe. Scotland expressed strong political activism realized through their political participation and open discussions. Yet, their ability to demand change is hindered by the United Kingdom and will continue to be unless drastic changes occur.
The analysis of the Czech Republic includes Czech history from World War II through the Prague Spring, the Velvet Revolution, the split of Czechoslovakia, and the current Communist party. National identity defined by literature is observed in conjunction with interviews of Lukáš Rumian, an Arizona State University exchange student, the Čižmár family with a unique military background and split support for Communism, an anonymous family with multigenerational viewpoints, and lastly, a former refugee with strong opinions on immigration and cultural preservation. The findings of the Czech Republic are of an apathetic country with few avenues for political discussion or education. The generations face massive difference in their mindsets as they continue to be influenced by their Communist past.
The examination of Taiwanese independence includes a look at centuries of domination, the Chinese Kuomintang party, and the Sunflower Revolution. National identity highlighted through literature is paired with the interviews of Kun Baba, a Taiwanese orchard owner, an anonymous set of a college student, his girlfriend, and his father, and a Taiwanese aboriginal who openly explores the “bullying” of China. Findings of Taiwan establish a growing sense of Taiwanese identity and an outward-looking approach to preserving their independence from China.
These three countries each shared a desire to forge their futures yet took different approaches. Scotland being vocal but limited by government. The Czech Republic apathetic, yet citizens take advantage of democratic freedoms. Taiwan is creating political stances through elections, yet is finding these stances to be inadequate in securing a future of continued independence. Thus they search for international assistance. In each country, I realized the importance global citizenship has in promoting political discussions in a quest to understand the needs and desires of citizens internationally. With a deepened understanding of a nation’s political climate, global citizens can help citizens voice their opinion, increase literature of citizen opinion, receive government recognition, and secure the change they desire.
Note: The interview participants range from college students to retirees, ages 17-78. Many asked for anonymous reporting to protect their identity and employment status.
The analysis of Scotland includes the examination of identity as a consequence of Scottish history, the Scottish Referendum, and the Brexit Referendum. National identity is explored through literature and through the analysis of Dr. Neal McGarvey, a Scottish Economic Councilman, and Arizona State University exchange student Scott Fyfe. Scotland expressed strong political activism realized through their political participation and open discussions. Yet, their ability to demand change is hindered by the United Kingdom and will continue to be unless drastic changes occur.
The analysis of the Czech Republic includes Czech history from World War II through the Prague Spring, the Velvet Revolution, the split of Czechoslovakia, and the current Communist party. National identity defined by literature is observed in conjunction with interviews of Lukáš Rumian, an Arizona State University exchange student, the Čižmár family with a unique military background and split support for Communism, an anonymous family with multigenerational viewpoints, and lastly, a former refugee with strong opinions on immigration and cultural preservation. The findings of the Czech Republic are of an apathetic country with few avenues for political discussion or education. The generations face massive difference in their mindsets as they continue to be influenced by their Communist past.
The examination of Taiwanese independence includes a look at centuries of domination, the Chinese Kuomintang party, and the Sunflower Revolution. National identity highlighted through literature is paired with the interviews of Kun Baba, a Taiwanese orchard owner, an anonymous set of a college student, his girlfriend, and his father, and a Taiwanese aboriginal who openly explores the “bullying” of China. Findings of Taiwan establish a growing sense of Taiwanese identity and an outward-looking approach to preserving their independence from China.
These three countries each shared a desire to forge their futures yet took different approaches. Scotland being vocal but limited by government. The Czech Republic apathetic, yet citizens take advantage of democratic freedoms. Taiwan is creating political stances through elections, yet is finding these stances to be inadequate in securing a future of continued independence. Thus they search for international assistance. In each country, I realized the importance global citizenship has in promoting political discussions in a quest to understand the needs and desires of citizens internationally. With a deepened understanding of a nation’s political climate, global citizens can help citizens voice their opinion, increase literature of citizen opinion, receive government recognition, and secure the change they desire.
Note: The interview participants range from college students to retirees, ages 17-78. Many asked for anonymous reporting to protect their identity and employment status.
ContributorsCrynes, Victoria Elianna Navarette (Author) / Eaton, John (Thesis director) / Brashears, William (Committee member) / Monson, Angela (Committee member) / W.P. Carey School of Business (Contributor) / Barrett, The Honors College (Contributor)
Created2018-05
Description
Nuclear weapons possess enormous potential to inflict damage on our world. The majority of countries in the world denounce the proliferation of these weapons, but a minority of countries have a desire to proliferate. This essay analyzes the impact of regime type and alliance strength to a nuclear state on protégé proliferation decisions. Prior research focuses on single factors in proliferation decisions and fails to take in to account the multi-faceted factors that influence the international system that states operate in. The analysis finds that regime type gives an indication about a state’s likelihood to proliferate, but does not explain proliferation choices comprehensively. Alliance strength plays a large role in a state’s security calculations and must be analyzed in conjunction to regime type to understand proliferation decisions.
ContributorsHsu, Kai Nalu (Author) / Wright, Thorin (Thesis director) / Thies, Cameron (Committee member) / W.P. Carey School of Business (Contributor) / Department of Finance (Contributor) / Barrett, The Honors College (Contributor)
Created2018-05
Description
An in-depth analysis on the effects vortex generators cause to the boundary layer separation that occurs when an internal flow passes through a diffuser is presented. By understanding the effects vortex generators demonstrate on the boundary layer, they can be utilized to improve the performance and efficiencies of diffusers and other internal flow applications. An experiment was constructed to acquire physical data that could assess the change in performance of the diffusers once vortex generators were applied. The experiment consisted of pushing air through rectangular diffusers with half angles of 10, 20, and 30 degrees. A velocity distribution model was created for each diffuser without the application of vortex generators before modeling the velocity distribution with the application of vortex generators. This allowed the two results to be directly compared to one another and the improvements to be quantified. This was completed by using the velocity distribution model to find the partial mass flow rate through the outer portion of the diffuser's cross-sectional area. The analysis concluded that the vortex generators noticeably increased the performance of the diffusers. This was best seen in the performance of the 30-degree diffuser. Initially the diffuser experienced airflow velocities near zero towards the edges. This led to 0.18% of the mass flow rate occurring in the outer one-fourth portion of the cross-sectional area. With the application of vortex generators, this percentage increased to 5.7%. The 20-degree diffuser improved from 2.5% to 7.9% of the total mass flow rate in the outer portion and the 10-degree diffuser improved from 11.9% to 19.2%. These results demonstrate an increase in performance by the addition of vortex generators while allowing the possibility for further investigation on improvement through the design and configuration of these vortex generators.
ContributorsSanchez, Zachary Daniel (Author) / Takahashi, Timothy (Thesis director) / Herrmann, Marcus (Committee member) / Mechanical and Aerospace Engineering Program (Contributor) / W.P. Carey School of Business (Contributor) / Barrett, The Honors College (Contributor)
Created2018-05
Description
In which industry that has ever been profit generating, does a firm profit from their failure? The United States has a mass incarceration problem. With 25% of the world prison population residing in the US, spending on detention costs the US government $80 billion annually. Over 50% of the individuals incarcerated in America are of black or Latino descent. This massive growth in the incarcerated population of America began in the 1970s and with the passive support of American citizens has created an industry whose players profit from the detention of people. Currently, the privately run detention facilities in the United States hold 7% of state prisoners, 18% of federal prisoners, and nearly 75% of ICE's undocumented detainee population. The detention of people for profit is an idea rooted in the same profit motive that allowed the institution of slavery to flourish. However even after the 13th Amendment abolished slavery in the U.S., the oppressive forces behind slave-era economics have been perpetuated through legislation and policies that continued the stratification of society and reinforcement of the social order. With the help of corporate lobbyists, political action committees, and organizations such as the American Legislative Exchange Council, the corporate shareholders of private prisons, such as CoreCivic and The GEO Group, are able to directly align their profit-driven interests with those of federal and state legislators. By the incorporation of legislation and policy into state and federal law, the shareholders of private prisons are able to directly affect legislation as well as their own potential for profit. The justification for the usage of private prisons is thought to be seen in the price savings and flexibility that it provides for federal and state governments. However, due to the law enforcement contractor's exemption from public record laws, there is no clear evidence of where the cost savings occur, or even if there are cost savings at all. Is it ethical for a for-profit-prison corporation to be responsible for the care, security, and rehabilitation of an individual, when if they fail to rehabilitate the individual, it will add to the number of inmates under their control? The measure of a prison's failure to rehabilitate an inmate is considered the recidivism rate, and is affected when an inmate leaves a detention facility, commits another crime, then is arrested. This profit motive is causing our society to incarcerate increasing numbers of people in private prisons. For-profit prisons financially benefit from long-term incarceration and recidivism. The passive investments from public and private employees and institutions through investment corporations are the legs that allow the private prison industry to stand. Twenty-nine investment firms, such as The Vanguard Group and Fidelity Investments, own nearly two-thirds of the two largest players in the private prison industry. This includes the passive investments by public institutions such as the Arizona State University Foundation's $600 million endowment fund as well as the $500 million directly invested into CoreCivic and GEO Group from the University of Texas/ Texas A&M Investment Management Company. The goal of abolishing private prisons will require years of litigation against the giants of the industry as well as the governmental entities supporting them. However, we can start today by demanding divestiture by our school and similar institutions as well continuing to share the knowledge of the oppressive forces associated with the detention of individuals for profit.
ContributorsBayham, Michael (Author) / Gomez, Alan (Thesis director) / Dacey, John (Committee member) / W.P. Carey School of Business (Contributor) / Department of Supply Chain Management (Contributor) / Barrett, The Honors College (Contributor)
Created2018-05