Honors Projects in Economics

Gender Discrimination Across U.S. States: What Has Changed Over the Past Thirty Years?

Joshua Ballance — Wed, 27 Mar 2013 18:55:29 PDT

This study examines changes in the gender wage gap and level of gender discrimination in the United States over the period1980-2010 at the national and state levels. Using data from the U.S. Current Population Survey, this study applies the Blinder-Oaxaca Decomposition to separate the explained and unexplained variations in the gender pay gap. The unexplained variation proxies the level of gender discrimination faced by U.S. workers. The wage equation estimated utilizes the Heckman methodology to control for sample selection bias. Results with and without sample selectivity controls are included in this paper.

This study reports the gender pay gap in the United States fell from 0.4357 log points over the period 1980-1984 to 0.2673 log points over the period 2005-2010. The narrowing in the gender pay gap is mainly attributable to a reduction in the level of gender discrimination, which decreased by 0.1539 log points in the United States over the thirty year period. Estimations conducted at the state level show the gender pay gap also narrowed for all states over the period 1980-2010. This study finds wide variations in the gender pay gap and level of discrimination at the state level. However, the variance in the gender pay gap and level of discrimination across U.S. states decreased significantly over the thirty year period, providing evidence that convergence is underway.

The Politics of Economics: A study on the effect of Political Affiliation on Economic Aptitude

Anthony Nader — Wed, 20 Mar 2013 20:58:07 PDT

This research is based on a June 2010 Wall Street Journal article outlining a study conducted on the economic literacy of adults versus their political affiliation (Klein, 2010). Adults were surveyed on eight questions regarding simple economic knowledge and then asked their political affiliation. The study found that people who consider themselves very conservative on average answered 1.3 questions wrong, versus an average of 5.26 questions wrong for people who consider themselves very liberal. This same effect was to be measured in the classroom as to whether or not conservatives tended to fare better in economics classes than liberals. The hypothesis being tested, however, was that the right leaning politically affiliated (very conservative and conservative) would perform the same as the left leaning (very liberal and liberal). The reasons for this hypothesis are outlined below in the compilation of literature review. The variables known to affect success in the classroom have been thoroughly studied. However, none of these studies have analyzed the effect of political affiliation on success in the classroom. Leveraging the student body at Bryant University, the author examined the performance of undergraduate students in micro and macro economics courses, compared to their political affiliation. Data was collected and proved inconclusive; few relationships could be shown with statistical significance. However, the results give reason for further testing to explore if a relationship does exist, using a larger sample size.

What Makes NFL Franchises Successful? A Value-Based Analysis of the NFL Draft

David Niles — Thu, 03 Nov 2011 16:36:14 PDT

The National Football League (NFL) is characterized as a dynamic sports league. The game has continued to evolve over time as rules and skill levels have developed and changed. Consequently, the strategies employed by the league’s teams have evolved and the variety of strategies has increased in number. This paper aims to analyze the NFL draft. It will seek to find an optimal drafting strategy and develop a forecasting formula as a way to predict a college player’s future success in the NFL. It will look at the varying level of value certain positions provide to teams and which positions are most valuable. In addition, it will seek to determine the amount of value a team can expect a player to provide based on the round he was drafted in and the position he plays.

Do Foreign Direct Investment and Trade Openness Accelerate Economic Growth?

Donna Chan Wah Hak — Tue, 01 Nov 2011 19:20:07 PDT

This research investigates the impact of trade openness and foreign direct investment (FDI) on economic growth. Using a framework proposed by Barro (1991), panel data regression analysis is performed on 5-year time periods between 1985 and 2005. A sample of 89 countries is analyzed using data collected from the World Development Indicators (WDI), Penn World Table, Barro and Lee (2010), and Polity IV Project datasets. The empirical analysis shows that conditional convergence occurs among the countries in the sample and that FDI net inflows per worker slightly increases the speed of conditional convergence. This study also finds evidence that FDI has significant effects on economic growth. While international trade does not significantly influence economic growth, human capital does. The presence of a democratic government also brings positive effects to growth in real GDP per capita.

Marriage vs. Cohabitation: Penalty or Premium of Women’s Education on Partner’s earnings

Qian Jiang — Thu, 07 Apr 2011 20:58:20 PDT

Marriage is one of the most important institutions affecting people’s lives and well-being. Using Current Population Survey, this paper will compare the 1979 and 2009 data to examine the effect a woman's education attainment has on her family’s standard of living. This research mainly focuses on the relationship between the wife/partner's education level and her partner's earnings. First, this study investigates whether the IT revolution which has allowed women to have flexible work hours, has increased their household productivity and thus increase their husbands’ earnings. Second, this paper examines whether the current increasing extended family households in the U.S. have a significant effect on female wages and family standard of living. Finally, we will examine whether partners’ education levels in cohabited relationship are the same as in married couples. This paper used a modified version of Behrman (2002) and Mincer's (1974) wage model. New variables such as the number of children in the household, race, existence of extended family, and whether there is a home based worker will be added to the model.

Macroeconomic Determinants of Worker Remittances to Latin American and the Caribbean Countries

Sathiavanee Veeramoothoo — Sun, 10 May 2009 17:15:45 PDT

A regression analysis was performed to identify which macroeconomic factors influence the magnitude to worker remittances to over thirty Latin American and Caribbean countries. Age dependency ratio, land area, net migration, labor force, population and unemployment were found to be significant predictors of remittances. A time series exponential model was developed to forecast the level of remittances for the next ten years. The results suggest that remittances to Latin American and Caribbean countries will reach USD 190,810 million in 2018.

Based on the above findings, this paper will help scholars understand better what drives worker remittances in Latin American and Caribbean countries and provide an insight into unofficial capital flows from developed to developing countries in the global economy, now and in the next ten years. This forecast may be of further benefit to receiving countries in that it may help to develop economic policies that may promote both development and economic sovereignty. A comparison of money received as remittances and money received from foreign direct investment is also provided. The growing amount of remittances flowing from developed to developing countries needs to be properly accounted and budgeted for, to avoid economic loss in the future. The better remittances are understood and the greater the accuracy of official remittance figures, the better policies will be at regulating the situation.

A Cost-Benefit Analysis of the Transition from GAAP to IFRS in the United States

Kenneth Smith — Sun, 10 May 2009 16:55:12 PDT

This research intends to determine the costs and benefits of the transition from Generally Accepted Accounting Principles (GAAP) to International Financial Reporting Standards (IFRS) in the United States. This study targets the costs and benefits of the transition in three areas of accounting: Academia, Corporate and Public. The transition could potentially have large implications on investment in the US and around the world, and therefore, this study aims to see if it is beneficial for the US to adopt IFRS. To ascertain the costs and benefits of the transition, this research used an online survey to obtain knowledge and opinions of professionals from the three areas of accounting. Based on the results, this research shows that the benefits of the conversion far outweigh the costs and therefore the US should adopt IFRS. Transitioning to IFRS will allow the US to regain strength in the global investment market as financial statements will have greater comparability and hopefully this will benefit the economy as a whole. However, with the US being the last major economy to make the conversion, the longer the Securities and Exchange Commission (SEC) takes to agree to go forward with IFRS, the longer it will take for investment in the US to increase and for US investors to prosper in the global market.

How Do Young Workers Prepare for Retirement?

Jenna Greco — Sat, 09 May 2009 14:30:20 PDT

The Millennial Generation is defined as those ages 15-30 in 2009 and is comprised of 80 million individuals (Elswick, 2004). This study explores how a segment of this generation, young workers between the ages of 18-30, is currently saving for retirement given the unprecedented economic challenges they face. These challenges include rising everyday expenses, record amounts of student loan and credit card debt, as well as how they will prepare for retirement given the uncertainty surrounding Social Security. The purpose of this study is to evaluate young workers current financial situation, retirement plans, and retirement expectations. Using data collected from a survey distributed to 149 individuals between the ages of 18 and 30, the study examines how young workers are preparing for retirement and if any variables increase the likelihood of preparation. The results of the study show that age and education play the most significant role in the likelihood that an individual is currently saving for retirement. In addition, young workers seem to have identified the challenges facing the Social Security system and recognize that they need to compensate for these payments to be adequately prepared for retirement.

The Effect of Obesity on State Health Care Expenditures: An Empirical Analysis

Kristen Collins — Wed, 06 May 2009 20:32:07 PDT

The purpose of this study is to examine the effects of obesity rates on per capita state health care expenditures. A two-stage least square regression model is used. In the first stage of the estimation, factors influencing obesity rates are determined. The determinants of obesity rates are outlined throughout the research process. In the second stage, the impact of obesity rates on per capita health expenditures across states is evaluated. The empirical results indicate that obesity rates do indeed have a direct effect on state health care expenditures. After reviewing the project’s results, various solutions are proposed as possible methods to slow and perhaps reverse growing obesity rates with the objective of reducing health care expenditures. The solutions offered may possibly decrease the prevalence of obesity across the nation and in turn lower per capita health care spending.

Japanese Players in Major League Baseball: An Econometric Analysis of Labor Discrimination

Kyle Audet — Wed, 06 May 2009 19:19:20 PDT

In recent years, Major League Baseball (MLB) teams have increasingly drawn talent from the international market. This study employs econometric techniques to test the various labor discrimination issues facing Japanese players playing in America’s MLB. There have been remarkably few studies focusing on Japanese players in MLB. Data from the 1995 to 2007 season has been analyzed. High degrees of discriminatory pay scales are found for Japanese pitchers. The findings suggest that Japanese batters do not face such pay discrimination. Positional discrimination has also been the subject of investigation. Japanese players are found to be disproportionally pitchers. Suggestions for future research topics are presented.

An Analysis of Current Healthcare Proposals: Obama and McCain

Dan Terrell — Sat, 17 Jan 2009 09:11:00 PST

The healthcare system of the U.S. is broken. The next opportunity for overwhelming healthcare system reform will be when the next president takes office. This paper analyzes the 2008 presidential election candidates McCain and Obama healthcare proposals through a look at key players in the current healthcare system (government, pharmaceuticals, doctors, hospitals, and health insurance companies) and the affects of implementing such a plan. The presidential plans are presented side by side. Projected outcomes of the changes offered by Obama will be an increased role of the government and decreased power of the health insurance companies while increasing coverage. The McCain plan would have more choice for individuals with a transparent system, and less governmental bureaucracy while embracing the free market competition of the health insurance industry. There will be obstacles and/or resistance to any reform passed by the presidential elect, no matter which man had won.

The Economic Effects of a Corporate Tax Reform

Kevin Levinson — Wed, 08 Oct 2008 16:23:35 PDT

This thesis points out the inefficiencies associated with the corporate income tax system in the United States. After reviewing alternatives, I suggest adapting a consumed income tax to form a new ‘progressive consumed income tax’ to take us into the 21st century.

Using current data from international tax system changes, international tax rate comparisons, economic theory, and economists’ views I will provide evidence to support my argument that the progressive consumed-income tax is the best possible plan for economic growth in America. With the implementation of a consumption-based tax, the corporate income tax is completely eliminated. I will demonstrate the economic effects of this change as well as provide a model for a progressive consumed-income tax system. The simplicity, efficiency, administrative ease, and economic incentives provided by a consumption-based tax are overwhelmingly positive. This economic analysis will prove that the move to the progressive consumed-income tax is the best option when looking at tax reform.

Not-for-Profit Organizations: Community Benefits, Efficiency and Quality

Daniel Keough — Tue, 07 Oct 2008 18:53:13 PDT

This study addresses the effect of hospital ownership on the delivery of medical services to patients with financial difficulties in the southern New England community, using two alternative definitions of community benefits. Also, this study examines the impact of government subsidies on the efficiency and quality of care provided by nonprofit hospitals versus for-profit in Connecticut, and Rhode Island.

Previous research demonstrates that there are no differences when it comes to efficiency and quality when dealing with nonprofit organization or a for-profit company. Using data from hospitals in Connecticut and Rhode Island, these findings on efficiency and quality have been reinforced. In addition, the study finds that nonprofit hospitals may not provide enough community benefits to cover the subsidies provided by the United States government on a national average. These results are sensitive to the definition of community benefits, thus indicating need for a more explicit identification of both the amount of benefits provided, and what is considered a community benefit.

The Accounting Industry in the Age of Globalization and Offshore Outsourcing

Ryan Daley — Sun, 05 Oct 2008 15:28:16 PDT

The phenomenon of outsourcing has engulfed the accounting industry and offers a wide range of services from bookkeeping, accounts payable, debt collection, invoicing, to tax return preparation. As companies become more comfortable with the services provided by outsourcing facilitators, the level of outsourcing in the accounting industry will increase to allow U.S. firms to focus on higher margin services and meet client demands in more technical areas of tax, estate, and retirement planning. This research uses a survey to collect primary data focusing on three areas, namely outsourcing drivers, concerns stakeholders have about outsourcing, and the perspectives about the offshorability of specific functions. The study concludes that firms that are engaging in outsourcing activities realize benefits in and ease their perceptions about doing so. Firms who outsource have been able to cut costs and increase staff. These same firms also are less concerned about most of the issues (privacy, client relationships, etc.) which may be as a result of their positive experience with outsourcing activities. Furthermore, these firms also have a higher confidence about the outsourecability of most of the functions in the accounting industry. The study further presents policy implications to all stakeholders in the accounting industry: students, professors, accounting professionals and firms, regulatory bodies, and politicians.

Can Increased Trade Prevent Conflict with China?

Stephen Rush — Fri, 05 Oct 2007 12:45:02 PDT

In the early 1990s, the United States began to run a significant trade deficit with China due to the dual forces of greater trade liberalization and China’s transition from a command economy towards a market economy. Proponents of free trade with China argue that greater integration will lead to a convergence of interests that reaches beyond economics. Despite growing economic and cultural ties with China, the U.S. still maintains military assets to defend Taiwan. Large scale conflicts on the order of cold war expectations are unlikely due to the growing importance of multinational entities such as international institutions, corporations, and nonprofits. This means that developed nations must contend with world opinion or forego the assistance of these groups in pursuing national interests. Situations such as Taiwan could limit economic integration and potentially introduce long term political risk with an impact on the U.S. economy similar to the Middle East effect on oil price. While the Chinese government presents itself as a monolithic entity to foreigners, the ability of the central government to enforce policy differs greatly throughout the country. The potential for political instability will likely increase as China becomes more integrated with the rest of the world. Western nations have already experienced the challenges of applying World Trade Organization regulations on market driven economies. The effects will be even more difficult to manage in China’s hybrid economy. The Chinese government’s primary concern is to govern the entire nation with diverse cultures, languages, and economic interests despite a lack of infrastructure and strong institutional development. To do this without some form of participatory government requires a population which is not critical of government policies. This is achieved through the promise of economic growth.