Matching Items (23)

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The Effects of Recent Minimum Wage Increases on the Wage Distribution in the State of Arizona

Description

Minimum wage legislation has always been a controversial topic within the fields of politics and economics. There are those who support it under the belief that those affected will be

Minimum wage legislation has always been a controversial topic within the fields of politics and economics. There are those who support it under the belief that those affected will be better off, seeing increased wages, greater efficiency, and overall economic prosperity, whereas its opponents argue against it under the belief that it could lead to negative effects such as decreased employment, higher prices, and loss of productivity. This is something that has recently come up in Arizona after the enactment of Proposition 206 (Prop.206), a law which is set to raise the state minimum wage from $8.05 in 2016 to $12.00 by 2020. In this paper, rather than taking a political stance, however, we seek to find answers about the real effects that this minimum wage law has had on wage earners through the manner in which it has affected the state’s wage distribution, meaning the percentage of earners making a certain hourly rate, or between a certain wage range (i.e. $10.00 to $10.50). We begin this search by looking at May Wage Estimates offered by the Bureau of Labor Statistics (BLS). From that data, we created wage distributions for the state of Arizona for the years 2011-2018. These showed us what percentage of workers in the state are making a certain hourly rate based on the total number of employees in Arizona. By summarizing this through tables and histograms, we can also visually see the way in which AZ wage distributions have changed over time. However, we also sought to visually compare the AZ wage distributions with that of nearby states, so we also used wage distribution data from Nevada, Utah, and New Mexico. Finally, we also wanted to quantify the fixed effects of enacting the legislation in the state of AZ. To do so we ran a difference-in-differences analysis that gave us an actual value measuring how recent minimum wage increases have affected the percentage of total wage earning less than $11.40 per hour. We discovered that our results, although not extremely significant (due to available data), do strongly indicate that the recent minimum wage legislation in AZ has increased the percentage of workers earning more than that amount per hour. Following that, we also give recommendations that could improve the results found in this report.

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Created

Date Created
  • 2019-05

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The Economic Effectiveness of Sanctions Imposed by the US and UN

Description

This study attempts to reconcile the gap in literature between the abundant research in the social consequences of sanctions but a consistent lack of information regarding its economic effectiveness. I

This study attempts to reconcile the gap in literature between the abundant research in the social consequences of sanctions but a consistent lack of information regarding its economic effectiveness. I apply a modified neoclassical growth model to analyze the extent that sanctions imposed by the US and UN impact real per capita GDP growth rate. Using the original data, I modify the model employed in the Neuenkirch and Neumeier (2015) study by replacing a fixed effect model with time trends. The results are more aligned with previous economic research on sanctions where sanctions imposed by the US have a moderate but significant 1.5 percent decline effect on GDP growth rate. On the other hand, sanctions imposed by the UN are similarly negative, imposing about a .9 percent decline in GDP growth, however are not statistically significant. While I cannot reject the conclusion by the original authors, I feel that this model provides a more fitting analysis of the impact sanctions impose on GDP growth.

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Created

Date Created
  • 2019-05

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Expanding the Implicit Social Safety Net: Estimations of Labor Supply Responses to State-Level Earned Income Tax Credit Reform

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

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.

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Created

Date Created
  • 2015-05

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Adverse Selection and Nonlinear Pricing in Competitive Insurance Markets

Description

I conduct a two-fold study on the relationship between adverse selection and nonlinear pricing in competitive insurance markets. First, I reassess empirical evidence of adverse selection in life insurance with

I conduct a two-fold study on the relationship between adverse selection and nonlinear pricing in competitive insurance markets. First, I reassess empirical evidence of adverse selection in life insurance with the Health and Retirement Study (HRS) data used by Cawley and Philipson (1999). Specifically, I evaluate the shape of the premium schedule and present indications of quantity premia beyond a certain coverage level. The observed pricing schedule appears like the "backward-S-shaped" curve described by Chade and Schlee (2012); I discuss why this result cannot be entirely explained by fixed costs of underwriting. Second, I critique the arguments against adverse selection in existing literature by modifying the Rothschild and Stiglitz (1976) model of competitive insurance markets. I present several existing models and a new framework to explain how adverse selection and quantity discounts can coexist in equilibrium. These modifications deviate from the standard models of competitive insurance, but produce plausible hypotheses with conclusions contrary to conventional theoretical results.

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Created

Date Created
  • 2017-05

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An Analysis of Sovereign Debt Restructurings: The Paths to Economic Sustainability

Description

This paper explores the history of sovereign debt default in developing economies and attempts to highlight the mistakes and accomplishments toward achieving debt sustainability. In the past century, developing economies

This paper explores the history of sovereign debt default in developing economies and attempts to highlight the mistakes and accomplishments toward achieving debt sustainability. In the past century, developing economies have received considerable investment due to higher returns and a degree of disregard for the risks accompanying these investments. As the former Citibank chairman, Walter Wriston articulated, "Countries don't go bust" (This Time is Different, 51). Still, unexpected negative externalities have shattered this idea as the majority of developing economies follow a cyclical pattern of default. As coined by Reinhart and Rogoff, sovereign governments that fall into this continuous cycle have become known as serial defaulters. Most developed markets have not defaulted since World War II, thus escaping this persistent trap. Still, there have been developing economies that have been able to transition out of serial defaulting. These economies are able to leverage debt to compound growth without incurring the protracted consequences of a default. Although the cases are few, we argue that developing markets such as Chile, Mexico, Russia, and Uruguay have been able to escape this vicious cycle. Thus, our research indicates that collaborative debt restructurings coupled with long term economic policies are imperative to transitioning out of debt intolerance and into a sustainable debt position. Successful economies are able to leverage debt to create strong foundational growth rather than gambling with debt in the hopes of achieving rapid catch- up growth.

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Created

Date Created
  • 2015-12

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The Price of Electric Power Emissions

Description

The Clean Power Plan seeks to reduce CO2 emissions in the energy industry, which is the largest source of CO2 emissions in the United States. In order to comply with

The Clean Power Plan seeks to reduce CO2 emissions in the energy industry, which is the largest source of CO2 emissions in the United States. In order to comply with the Clean Power Plan, electric utilities in Arizona will need to meet the electricity demand while reducing the use of fossil fuel sources in generation. The study first outlines the organization of the power sector in the United States and the structural and price changes attempted in the industry during the period of restructuring. The recent final rule of the Clean Power Plan is then described in detail with a narrowed focus on Arizona. Data from APS, a representative utility of Arizona, is used for the remainder of the analysis to determine the price increase necessary to cut Arizona's CO2 emissions in order to meet the federal goal. The first regression models the variables which affect total demand and thus generation load, from which we estimate the marginal effect of price on demand. The second regression models CO2 emissions as a function of different levels of generation. This allows the effect of generation on emissions to fluctuate with ranges of load, following the logic of the merit order of plants and changing rates of emissions for different sources. Two methods are used to find the necessary percentage increase in price to meet the CPP goals: one based on the mass-based goal for Arizona and the other based on the percentage reduction for Arizona. Then a price increase is calculated for a projection into the future using known changes in energy supply.

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Created

Date Created
  • 2016-05

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The Impossible Survey: The Effect of Information Provision on Sustainable Food Choice

Description

Amid the fast-growing market of plant-based alternatives to conventional meat, there still lies uncertainty about consumers’ preferences for these new products. Through an online survey using a Becker-DeGroot-Marschak mechanism, I

Amid the fast-growing market of plant-based alternatives to conventional meat, there still lies uncertainty about consumers’ preferences for these new products. Through an online survey using a Becker-DeGroot-Marschak mechanism, I test the effect that environmental information provision has on consumers’ immediate and long-term willingness- to-pay for the Whopper and Impossible Whopper from Burger King. Respondents were randomly assigned to either a control group or a treatment group, and both received information on taste in an attempt to isolate the effect of environmental information. Results show that certain groups respond to the information differently. Specifically, consumers who care about climate change are affected greatly by environmental in- formation suggesting these “climate advocates” are not fully informed despite the efforts of Impossible Foods. Vegetarians and highly educated individuals have relatively stronger preferences for the plant-based burger, in line with previous studies. Results also show a lasting effect of information on WTP, suggesting little need for repeated interventions.

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Created

Date Created
  • 2021-05

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Privacy Valuation Experiment

Description

This survey takes information on a participant’s beliefs on privacy security, the general digital knowledge, demographics, and willingness-to-pay points on if they would delete information on their social media, to

This survey takes information on a participant’s beliefs on privacy security, the general digital knowledge, demographics, and willingness-to-pay points on if they would delete information on their social media, to see how an information treatment affects those payment points. This information treatment is meant to make half of the participants think about the deeper ramifications of the information they reveal. The initial hypothesis is that this information will make people want to pay more to remove their information from the web, but the results find a surprising negative correlation with the treatment.

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Created

Date Created
  • 2021-05

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The Role of the Pharmaceutical Industry in America's Current Opioid Crisis

Description

The current American opioid crisis is seeing an exponential number of fatalities. The opioid epidemic is a problem with massive scope, and while no clear reason has been identified, many

The current American opioid crisis is seeing an exponential number of fatalities. The opioid epidemic is a problem with massive scope, and while no clear reason has been identified, many causal relationships have been linked to its genesis. This thesis examines the role of the pharmaceutical industry in perpetuating the abuse rates we see today. Topics of sociological norms and values, economic incentives that benefitted private business practices, and political-legal means of restitution and market completion are examined to make sense of specific mechanisms that the pharmaceutical industry took advantage of, and the future trajectory of what is to come from the industry as well. Combined with policies (or, lack thereof) that do not provide adequate checks against opioid marketing strategies and incentives, governmental interferences come too little, too late in attempting to solve the issue.

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Created

Date Created
  • 2018-05

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An Analysis of Bias in Competitive Academic Debate

Description

Through collection of survey data on the characteristics of college debaters, disparities in participation and success for women and racial and ethnic minorities are measured. This study then uses econometric

Through collection of survey data on the characteristics of college debaters, disparities in participation and success for women and racial and ethnic minorities are measured. This study then uses econometric tools to assess whether there is an in-group judging bias in college debate that systematically disadvantages female and minority participants. Debate is used as a testing ground for competing economic theories of taste-based and statistical discrimination, applied to a higher education context. The study finds persistent disparities in participation and success for female participants. Judges are more likely to vote for debaters who share their gender. There is also a significant disparity in the participation of racial and ethnic minority debaters and judges, as well as female judges.

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Created

Date Created
  • 2014-12