Name: Allmaras, Jacob
Date: Spring 2011
Major(s): Economics
Thesis Committee: B. Afrasiabi, C. Allison
Title: The Marcellus Shale’s Profitability and Impact on Natural Gas Drilling Companies
Abstract: Over the past 10 years there has been a paradigm shift in the drilling techniques used in the Marcellus Shale. Once considered an unprofitable shale, the giant Marcellus Shale is now at the forefront of the U.S. natural gas industry, with the ability to supply U.S. with natural gas for the next 20 to 40 years. This paper takes an in-depth look at the future profitability of the Marcellus Shale and its impact on the stocks of natural gas drilling companies. To accomplish this, an analysis is taken of the two most active Marcellus drillers, Range Resources and Chesapeake Energy. The paper highlights the firms’ current Marcellus operations, expected returns, and 10 year stock performance.
Name: Barclay, Eric
Date: Spring 2011
Major(s): Economics
Thesis Committee: S. Casler, T. Nonnenmacher
Title: The Determinants of Burglary
Abstract: Throughout history, crime has shown to have an unquestionable impact on society and the citizens who comprise it. The purpose of this paper is to analyze the determinants that cause burglary growth to increase and decrease. I consider nine major determinants of burglary growth over a forty-seven year period. This paper describes how burglary growth has fluctuated over history, including an examination of the societal phenomenon of the Baby Boomers. In addition, a theoretical model is provided as a foundation for my study to understand a rationale within individuals considering engaging in crime. Additionally, the model examines the supply of offenses and demand for protection in a given society. Also, an empirical analysis is developed from a least squared regression model. From the model, I interpret and examine the consistency with theory for each independent variable. Finally, explanations of the results from the regression model are analyzed and how these results can be applicable to real world situations. The major finding in this work is that the unemployment rate, GDP growth, age, and the incarceration rate are responsible for impacting burglary growth in recent years.
Name: Barclay, Matthew
Date: Spring 2011
Major(s): Economics
Thesis Committee: S. Onyeiwu, J. Sickafuse
Title: Team Dominance in the Major League Baseball Free Agent Market
Abstract: Major League Baseball is the only major sport in the United States that has an exemption from antitrust laws, which prohibit actions that can unreasonably restrain competition. Despite several Supreme Court rulings that upheld the antitrust exemption, many fans still believe there is some sort of imbalance within the league. This senior comprehensive project studies free agency as a venue for a potential imbalance within the league. After collecting information on the Type A and B Free agents from 2007 to 2010, this data was analyzed through the creation of several tables such as the Market Transitions of free agents, Financial Summary of the teams, and a Master Table showing each team’s participation in the free agent market. A regression was used to determine the importance of market size and knowledge management in free agency.
The Herfindahl-Hirschman Index, which is commonly accepted to measure market concentration, shows that the free agent market is unconcentrated. Similarly, there is no empirical data that indicates that free agents who leave small markets tend to migrate to large markets. Finally, the regression results suggest that the amount of money spent is the most important variable in the free agent market. Furthermore, the regression implies that knowledge management and market size, in comparison to money spent, is insignificant when attempting to sign players in the free agent market. The fact that there is no restriction on how much money a team can spend in the free agent market is worrisome. The research concludes by proposing policies that would help suppress, or stimulate in some instances, this financial spending within the league.
Name: Blacka, Edward
Date: Spring 2011
Major(s): Economics
Thesis Committee: S. Onyeiwu, J. Sickafuse
Title: An Exploration of Strategy as it Applies to Nonprofit Organizations in the Healthcare Sector: A Case Study of the University of Pittsburgh Medical Center
Abstract: In today’s technologically advanced world, the healthcare industry is particularly complex and interesting. In 2008 the healthcare sector accounted for 16.2% of the United Stated Gross Domestic Product – $2.3 trillion. Of this total, hospitals alone contributed $718 billion. The University of Pittsburgh Medical Center (UPMC) is an $8 billion global health system headquartered in Pittsburgh, Pennsylvania. They have achieved great market and financial success throughout their existence. This paper will first review the relevant literature on nonprofit enterprises in the healthcare sector. The analysis of Chapter 3 will consist of a case study on UPMC. The information presented in this paper will show that in achieving their high level of performance, UPMC has utilized several strategy tactics typical of for-profit firms, though operating under the nonprofit ownership structure.
Name: Brush, Matthew
Date: Spring 2011
Major(s): Economics
Thesis Committee: B. Afrasiabi, T. Nonnenmacher
Title: Standardization of Silicon and the Effects Upon Photovoltaic Cell Efficiency
Abstract: The purpose of this paper is to determine the effects of path dependence in the Photovoltaic (PV) cell manufacturing industry. The cases presented display companies early in the industry’s existence, starting in the mid-twentieth century and becoming more prominent in years to follow. The industry began to evolve and branch out into other markets by developing new products. The PV industry benefitted from synergy with the consumer electronics industry due to the fact that electronics required high-grade semiconducting materials which coincidentally were good materials for PV cells. Path dependence has classically been characterized as a situation in which there is “sensitive dependence on initial conditions” that can lead to suboptimal outcomes. Applying the theory of path dependence to the PV industry reveals that the synergy with the consumer electronics industry has led PV cell manufacturers onto a suboptimal path that may be remediable.
Name: Colkitt, Caitlin
Date: Spring 2011
Major(s): Economics
Thesis Committee: S. Onyeiwu, T. Nonnenmacher
Title: An Examination of the Relationship Between Increased Environmental Performance and Financial Gain
Abstract: he debate over green technology is growing rapidly every day, and firms are faced with one question: Does it really pay to be green? Much literature suggests that an increase in production efficiency or energy efficient technologies reduces operating costs, which leads to lower operating costs that in turn saves the firm money. However, there are many economists that do not believe that green technology actually saves the firm money in the long run. Despite the risk of potentially high investment costs, some economists believe that improved efficiency technologies actually may tend to have long-term negative effects on the firm, as well as the environment.
This paper uses Allegheny College as a case study to show how a not-for-profit firm makes decisions to improve their commitment to sustainability, by examining utility costs before and after energy efficiency improvements.
Name: Cumings, Wiliam
Date: Spring 2011
Major(s): Economics
Thesis Committee: B. Afrasiabi, J. Golden
Title: Retail Gasoline Prices in the United States: An Asymmetric Response?
Abstract: Over the past few decades, the American consumer has fallen victim to the constantly fluctuating and volatile prices of retail gasoline. It has always been a question as to whether or not the price of gasoline is increased at a faster rate than it is decreased, in response to an input’s price change. This paper is intended to examine the potential asymmetric response between gasoline and its inputs, specifically the price of crude oil and stocks of finished motor gasoline.
Name: Danoff, Jeffrey
Date: Spring 2011
Major(s): Economics
Thesis Committee: B. Afrasiabi, T. Nonnenmacher
Title: Natural Gas: An Industry Analysis
Abstract:
Name: DeFeo, Sarah
Date: Spring 2011
Major(s): Economics
Thesis Committee: S. Onyeiwu, A. Moskwa
Title: The Hidden Costs of a Low-Price Strategy and the Effects of Unethical Behavior on a Firm’s Success: A Case Study of Wal-Mart
Abstract: This senior project examines how, if at all, ethics affect a company through a case study of the Wal-Mart Corporation. The first chapter provides an introduction to ethics as well as a detailed overview of the subsequent chapters. The second chapter provides an introduction to literature relevant to strategy and unethical behavior. The empirical chapter focuses on Wal-Mart‟s unique strategy as well as details on its unethical behavior. Financial data comparing Wal-Mart to its competitors is also provided in an effort to prove Wal-Mart‟s success in the industry. Chapter 4 concludes the argument of if ethics affect a company’s success by showing that Wal-Mart will remain successful regardless of its unethical actions as long as it continues to provide low-cost goods to its consumers.
Name: Deivert, Matthew
Date: Spring 2011
Major(s): Economics
Thesis Committee: S. Casler, A. Moskwa
Title: Recessionary Diffusion and Sectoral Employment Growth
Abstract: A recession can be a trying time for a family, business and even an entire industry. There have been many recessions over the years, some more extreme than others. Just recently we have gone through one of the worst recessions since the Great Depression. My senior thesis topic, recessionary diffusion and sectoral employment growth, refers to how sectors of the economy are affected by recessions. It is important not only because it allows us to see what industry is affected most by a recession but also how employment in an industry is affected by output growth in other industries in a recession. This project will produce regression results that will be examined regarding looked the employment as a function of other industries, which include mining, logging and construction, manufacturing, total services and the output of total government, so one can determine which industry’s employment is affected most by output growth in other industries during a recession.
Name: Doherty, Colin
Date: Spring 2011
Major(s): Economics
Thesis Committee: D. Goldstein, C. Allison
Title: The Ultimate User-Experience: How Apple Formulated a Unique Corporate Strategy that Took Them From the Brink of Collapse to the Top of the Software Industry
Abstract: Apple Inc. is a company that has been marked by both strategic success and strategic failure. A company now synonymous with fortune and fame nearly went bankrupt in the late 1990s. The company changed leadership and directional focus several times, and fluctuated on its financial statements accordingly. The purpose of this project is to examine why Apple achieved success in recent years, and why they did not before. In order to answer this question, a product from both time periods is analyzed. The modern Macintosh line is compared to the Macintosh 128K of the 1980s in order to determine why the modern Mac is successful, and why the 128K was not. It is proposed that both products have the same core competence, which is user-friendliness, but that the modern Macintosh line made better use of complimentary products and activities in order to strengthen the core competence that it possessed. Specific focus is placed on the positive effect that the iPod and iTunes had on the modern Macintosh line. It will be suggested that interconnectedness of these products and activities, in combination with the user-friendly core competence, are the reason the modern Macintosh line is successful, and why the Macintosh 128K was not. Financial data gathered from Apple’s financial statements supports this theory, and allows me to affirm my initial hypothesis.
Name: Dulay, Marc
Date: Spring 2011
Major(s): Economics
Thesis Committee: B. Afrasiabi, J. Liu
Title: Chinese Oil Consumption and Imports:
Abstract: Economists and other scholars believe that as an economy grows, natural resource use grows as well. This observation relies on the idea that natural resources are essential inputs to economic growth. The object of the empirical analysis in this comp is to verify a relationship between natural resource use and economic growth in China. China’s consumption and import of oil is the basis for the empirical analysis. So, the purpose is further specified to verify if China’s use of oil is dependent upon economic growth or output. There is also interest in verifying if China’s population and prices of oil and natural gas have an effect on oil consumption and import.
Furthermore, there is interest in verifying if China’s exchange rate has an effect on oil imports. To verify these relationships, ordinary least squares estimation is performed on two versions of the oil consumption and import models. Generalized least squares estimation was performed as needed to get more efficient equations. After coming up with more efficient equations, forecasts were performed to get an idea of where oil consumption and imports were heading. Through the empirical analysis, it was revealed that China’s oil consumption and imports are dependent upon its output and population while consumption and imports were not dependent on price of oil and natural gas and the exchange rate. Also, it means that China has an inelastic demand for oil. The forecasts further verify that this is the case. The simplicity of the empirical analysis and forecasts reveals some limitations in analyzing certain issues further, but that does not discredit the analysis because there are some interesting and detailed insights that came from even a simple empirical analysis.
Name: Eisner, Seth
Date: Spring 2011
Major(s): Economics
Thesis Committee: S. Casler, A. Moskwa
Title: Determinants of Mortgage Debt: Real Mortgage Debt Growth in America
Abstract: The concept of mortgage debt is one that has been greatly examined in America. Debt is something that most Americans face at some point in their lives. The past fifty years has displayed a large increase in debt on mortgages, and a detailed examination of the independent variables affecting mortgage debt is necessary when considering its recent growth. The increase of mortgage debt resulted in the subprime mortgage crisis, which is why this topic is being studied. A significant aspect of researching this topic is analyzing the business cycle and its relationship with mortgage debt. There have been four significant recessions within this time period, proving that the relationship between debt and the business cycle is pro-cyclical. The independent variables affecting mortgage debt will always be fluctuating with respect to the economy, making this topic one that will always be open for discussion and examination. The rise of mortgage debt is an increase that seems fit to continue doing just that, making it a relevant topic to be researched in this time period and for years to come.
Name: Fetterolf, Ryan
Date: Spring 2011
Major(s): Economics
Thesis Committee: B. Afrasiabi, J. Liu
Title: Investment in Gold: Safe Haven or Hedge?
Abstract: Over the past few decades’ investors have been interested if gold can act as a safe haven or hedge in times of economic distress. If gold return is negatively correlated or uncorrelated with return on other assets, then the investment in gold can diversify risk in a portfolio. As the return on stocks plummets, can the investment inn gold act as a safe haven or hedge? I find that gold is a safe haven in periods of market failure.
Name: Fleming, Grant
Date: Spring 2011
Major(s): Economics
Thesis Committee: D. Goldstein, J. Liu
Title: Different Strategies of Competition:Financial Institutions
Abstract: The 2007 United States recession presents an opportunity to analyze which competitive strategies were being used by financial institutions, and what strategies were most effective. Prior to the recession, financial institutions lost track of what is important to customers. Many financial institutions shifted focus away from personal customer service and focused more on growing profits and cutting costs. This paper aims to test if the competitive strategy of a financial institution is a result of its size. It will explore advantages of having competitive strategies which focus on customer service versus strategies which focus on maximizing profits and lowering costs. By analyzing time periods prior to and after the 2007 recession, it will explore if the economic performance is a factor when deciding which competitive strategy is most effective. The paper will draw from existing scholarly literature and will present an empirical study using company statistics.
Name: Goguelet, Bernard
Date: Spring 2011
Major(s): Economics
Thesis Committee: B. Afrasiabi, J. Liu
Title: Scarcity Rent in Resource Economics: An Explanatory Survey of Literature
Abstract: In the competitive setting for natural resources, it is agreed upon in the body of literature that a resource commands a market price that is higher than its marginal extraction cost; this difference is commonly referred to as the scarcity rent. Through substantial examination of the body of the literature on the subject the reader will see that this scarcity rent is a complicated phenomenon, and arises from the fact that natural resources are finite in availability – that which has been extracted today is unavailable for extraction at future times. The increasing scarcity of the resource, controlling for the effect of technological improvement in the industry, raises future extraction costs, and the scarcity rent is a surcharge placed on society to pay for the fact that the decision to consume today’s resource raises all future extraction costs.
Name: Golembiewski, Laura
Date: Spring 2011
Major(s): Economics
Thesis Committee: S. Casler, J. Golden
Title: The Determinants of the Labor Force Participation Rate: Men versus Women
Abstract:
Name: Gottlieb, Andrew
Date: Spring 2011
Major(s): Economics
Thesis Committee: S. Onyeiwu, J. Sickafuse
Title: Applying Managerial Concepts to the Pittsburgh Pirates Strategy since 1992
Abstract: I have been a passionate Pittsburgh Pirates fan for my entire life. Initially, I was only concerned with the Pirate failure to win games. However, when the Pirates financial statements for the 2007 and 2008 season were released to the public, I became outraged on how the team has been able to make money but loose. In essence, why have the Pirates been able to make money but seemingly never attempt to field a winning team? This paper is an examination of the Pittsburgh Pirates baseball and management strategy. Through this paper, I have been able to prove that a baseball team can execute a poor.
Name: Green, Catherine
Date: Spring 2011
Major(s): Economics
Thesis Committee: S. Casler, T. Nonnenmacher
Title: The Apparel Industry: An Analysis of Clothing Consumption Growth from 1960-2008
Abstract: The inception of the fashion industry is tied to the early creations of haute couture, which revolutionized the perception of dressmaking in 19th century France. Clothing makers, who were once regarded as mere seamstresses, soon evolved into privately employed couturiers who designed wearable art for their clients. While only the wealthy could afford couture, the creation of ready-to-wear collections and mass-market sales in the latter part of the century made the products of the fashion industry more accessible to consumers of all social classes.
Currently a $300 billion industry, the fashion industry achieved astronomical growth throughout the 20th century, and it continues to grow in conjunction with the rise in clothing expenditures. The purpose of this study is to examine how and why U.S. expenditures on apparel have grown over time. Specifically, this paper examines the opening of trade markets with China as a reason for increased import growth and clothing consumption. The counterfeit clothing industry is also discussed as a contributor to the increase in apparel expenditures.
Using consumer theory as a foundation, this paper introduces several independent variables that determine clothing demand, the most important of which is import growth. The rise in apparel imports not only results in less costly clothing for consumers, but foreign-produced apparel is also directly associated with consumer tastes. Ultimately, it is a combination of these factors that explains why U.S. apparel consumption has experienced such significant growth over time.
Name: Hartford, Terrence
Date: Spring 2011
Major(s): Economics
Thesis Committee: S. Onyeiwu, J. Sickafuse
Title: Determining National Football League Success: An Exploration of the Importance of Organizational Structure on the Success of NFL Teams.
Abstract: This paper is an investigation of the effect of organizational structure and other variables on National Football League (NFL) team success. This is done through both regression analysis of 30 NFL teams and a case study comparing the Pittsburgh Steelers and Oakland Raiders. Results of the study provide significant insight into which variables are correlated with wins and operating income for NFL teams.
Name: Hartnett, William
Date: Spring 2011
Major(s): Economics
Thesis Committee: S. Casler, T. Nonnenmacher
Title: The Effects of Recessions on Educational Spending
Abstract:
In the United States, more than forty states are predicting budget short falls of billions of dollars for the upcoming year, 2012. The deficit is attributed largely to the recession that ended in 2009. Many of these states are now proposing budget cuts in key sectors including education. Education is the single largest expenditure for state and local governments, with spending estimated at thirty percent of their budget on this government service.
The purpose of this paper is to examine the changes in educational spending between 1962 and 2006 and examine how educational spending has been affected during recessions and in the years directly following. In addition, the paper will examine the general theory of intergovernmental grant programs closely associated with the educational spending system in the United States and the theory of whether education is viewed as human capital or a screening device. Finally, through the use of the statistical analysis program, STATA, I will examine how educational spending has been affected by real GDP, property taxes, sale taxes, population between the ages of 5 and 19, times during and two years after a recession, the Great Moderation, and when a Republican is president.
Name: Hopkin, Joshua
Date: Spring 2011
Major(s): Economics
Thesis Committee: B. Afrasiabi, A. Moskwa
Title: Optimal Resource Depletion and Renewable Energy Technologies in African Nations
Abstract: This senior project is designed to show the connection between optimal resource depletion and the need for African nations to invest in renewable energy technologies. By using Harold Hotelling’s optimal resource depletion a mathematical and graphical presentation will show how user costs will rise in subsequent time periods. Then an analysis of several African case studies will be presented to express the need for a transition into renewable energy technologies for the future energy sustainment of the world.
Name: Hritz, Kathryn
Date: Spring 2011
Major(s): Economics
Thesis Committee: S. Onyeiwu, R. Ormiston
Title: The Effect of Corporate Coherence on Overall Economic Performance: Case of the Walt Disney Company
Abstract: In the world we live in today, there is a mentality that “bigger is better.” A lot of the large corporations we are familiar with are global and continuously expanding. There is a lingering question of whether or not expanding into related businesses and being coherent makes a difference in the success of these corporations. The main purpose of this paper is to determine whether or not the economic theory of corporate coherence plays a role in the overall economic performance of corporations. Studies testing the theory of corporate coherence have yielded conflicting results with some studies suggesting that companies must be coherent to perform well, while others have found that coherence does not make a difference at all. Most of the literature suggests that companies must be coherent in order to perform well, but due to the conflicting results, have not been able to explicitly prove that. Using a framework laid out by Lucia Piscitello, I have analyzed The Walt Disney Company and determined them to be an incoherent company. After performing a case study which analyzed the financial records of The Walt Disney Company from the past 15 years, I have come to the conclusion that their performance has been exceptional. Various reasons are presented for their performance and ultimately conclude that the corporate coherence theory affects industries differently.
Name: Ituze, Agrippine
Date: Spring 2011
Major(s): Economics
Thesis Committee: S. Martin, T. Nonnenmacher
Title: Determinants of Child Labor Across Indian States
Abstract: In the world we live in today, there is a mentality that “bigger is better.” A lot of the large corporations we are familiar with are global and continuously expanding. There is a lingering question of whether or not expanding into related businesses and being coherent makes a difference in the success of these corporations. The main purpose of this paper is to determine whether or not the economic theory of corporate coherence plays a role in the overall economic performance of corporations. Studies testing the theory of corporate coherence have yielded conflicting results with some studies suggesting that companies must be coherent to perform well, while others have found that coherence does not make a difference at all. Most of the literature suggests that companies must be coherent in order to perform well, but due to the conflicting results, have not been able to explicitly prove that. Using a framework laid out by Lucia Piscitello, I have analyzed The Walt Disney Company and determined them to be an incoherent company. After performing a case study which analyzed the financial records of The Walt Disney Company from the past 15 years, I have come to the conclusion that their performance has been exceptional. Various reasons are presented for their performance and ultimately conclude that the corporate coherence theory affects industries differently.
Name: Jacobs, Benjamin
Date: Spring 2011
Major(s): Economics
Thesis Committee: B. Afrasiabi, J. Liu
Title: Thorium Resources and Hotelling’s Rule
Abstract: This paper seeks to explore whether the use of thorium, a fissile material which is currently used in newer nuclear reactors, will provide a long term solution for energy production or is merely a stopgap. Since thorium is an exhaustible resource, Hotelling‘s model of resource depletion should apply to it. This paper was designed to look into the price of thorium over the past sixty years in order to see if there is a graphical adherence to the model. This paper seeks to determine whether thorium as a fissile material follows the same pattern as other common resources. If this turns out to be the case, we can assume that thorium will be subject to the same price influences described in Hotelling‘s model. These influences will affect the feasibility of thorium use as a solution to our energy crisis.
Name: Johnson, Nicole
Date: Spring 2011
Major(s): Economics
Thesis Committee: S. Onyeiwu, A. Moskwa
Title: Kenya’s Tea Exports and Their Impact on Economic Growth
Abstract: This study examines the impact of Kenya’s tea exports on the nation’s economic growth. Theories of international trade and diversification are presented and applied to the case of tea in Kenya. This review of literature sets the stage for examining the concentrated approach Kenya has taken with respect to tea exports, as they make up 20% of the country’s total exports.
Regression analysis is used to determine that there is no direct linear relationship between the real value of tea exported in Kenya from 1979-2008, and the growth rate of real GDP per capita during the same period. The absence of a linear relationship is shown to mean that even though Kenya has devoted a large portion of its economy to growing and exporting tea, it is not an influencing factor in the fluctuations of economic growth, a conclusion which might seem contrary to popular thought, but is supported and explained by data, theory, and experience.
Name: Keep, Britten
Date: Spring 2011
Major(s): Economics
Thesis Committee: S. Martin, T. Nonnenmacher
Title: The Effect of Military Service on Earnings
Abstract: The true costs and benefits of military service are still under debate, with the effects still unknown. However, some economists argue that there is a positive effect on veteran’s earnings in the civilian market, due to a phenomenon called the “veteran’s premium”. With common investments in human capital such as completing high school, attending college, or further technical training, there is assumed to be an increase in earnings. This paper discusses military trainings as an alternative source of human capital investment. By controlling for common human capital variables such as age, labor market experience, education, etc.; we can examine the effects of military service on the earnings of veterans in comparison to non-veterans in the civilian labor market. Through analysis and regression of data from the past century on veterans; we can attempt to confirm the existence of a “Veteran’s Premium” in which veterans earn more than non-veterans in the civilian labor market. I will also attempt to measure other factors on earnings such as era of service, the effects of specific military training, and race in order to further determine the factors that contribute to the “veteran’s premium.” I anticipate that that a “veteran’s premium” will exist although it will be greatly reduced when taking into account factors outside of military training.
Name: Kotecki, Nathan
Date: Spring 2011
Major(s): Economics
Thesis Committee: S. Onyeiwu, J. Sickafuse
Title: Theories of Strategy and How It Helps Develop Competitive Advantage: A Case Study of Northwestern Mutual
Abstract: Strategy of the simplest form would read something like this: A plan or method for obtaining a specific goal or result. In a way this is very correct, but when dealing with the strategy of a large financial services company, as with Northwestern Mutual, much more in depth material needs to be discussed before implementation occurs. In order for firms to establish competitive advantage, a strong strategy mandated by a strong leader must be
implemented. All of the different elements that make up a strategy as a whole are elaborated on and an explanation of why they are essential for success is also included. Everything from the mission statement to ethics programs can be associated with the corporations overall strategy. Everything inside of a strategy needs to compliment each other, which will end up meshing the strategies components into one. This will further strengthen the company and differentiate the
products/services. Rival companies will also have a much more difficult time trying to mirror and copy your plan. In depth research was done in order to uncover what all went into Northwestern Mutual’s strategy implementation in order to show that they are one of the best companies in the financial services industry, very strong financially, and have established a competitive advantage over most of their competitors.
Name: Loyacona, Samantha
Date: Spring 2011
Major(s): Economics
Thesis Committee: S. Onyeiwu, J. Sickafuse
Title: The Implications of Strategy and Sustainability: A Case Study of General Motors
Abstract: Because General Motors began business in a manufacturing-driven industry, a focus on short-term profitability outweighed the necessity of long-term strategy and ultimately resulted in GM‟s declaration of bankruptcy in 2009. This paper explores and supports Michael Porter’s definition of strategy by demonstrating how GM‟s short-term focus led to consistently inefficient operations as well as a mismanaged organizational structure arising from reactive tendencies. These inefficiencies resulted in poor performance measures over time, and therefore, GM‟s subsequent decline in performance can be attributed to a lack of competitive strategy and sustainability as acquired through the implementation of strategy. In the case of General Motors, a failure to implement a consistent pattern of decision-making, regarding proper interpretation of market segments and subsequently proper methods of operations, that defines competitive strategy resulted.
Name: Luvara,Vincent
Date: Spring 2011
Major(s): Economics
Thesis Committee: S. Casler, J. Golden
Title: The Determinants of the Information Industry Growth Rate in the United States
Abstract: Currently the market for information technology is in a moment of rapid growth. We are seeing new products pop up every day ranging from tablets, to 3D TV, to Satellite Radio. As numerous companies are competing with each other to make their own better version of each product, the competition in this market is at an all time high. The following comprehensive study analyzes determinants of the Information sectors growth rate in the United States from the years 1979-2008. The focus is on the consumer’s effect the information market as a whole, but using the example of Sirius-XM satellite radio and the iPod as the main comparisons of the study. Considering the model of consumer choice, this study examines the changing effects of factors that explain the growth of the industry from the last twenty-nine years. An empirical analysis conducted using the least squared regression model evaluates changes in the stability of the dependent variable. I present and explain which changes in the independent variables from their trends led to the largest changes in information growth from it trend and how these relationships change over time. Considering the theory and the empirical results presented in this study, the consumer’s wealth regarding income and the price of substitutes seem to have the greatest affect the growth rate of the Information industry over the recent years in the United States.
Name: Mahaffey, Robert
Date: Spring 2011
Major(s): Economics
Thesis Committee: S. Martin, J. Golden
Title: Economic Globalization’s Effect on Conflict
Abstract:
This study focuses on whether or not there is any causality between economic globalization and conflict. Chapter 1 takes a look at previous research to develop a basis of knowledge on the topic and the research looked at consists of topics such as how globalization effects inequality, how different trade exports as well as levels of trade openness versus protectionism effects the likelihood of trade, and the findings that previous research has brought to light on how they had found globalization to effect the likelihood of conflict.
Chapter 2 takes a theoretical approach to develop hypotheses on how different proxies of globalization will affect the likelihood of conflict. The proxies I employ within this study to measure globalization are FDI as a % of GDP, trade as a % of GDP, international tourism arrivals within a country, internet usage, and mobile cellphone usage. In order to control for exogenous effects on conflict I use level of democracy, GDP per capita, and % of rural population as control variables. Chapter 2 also describes how we can expect these variables to affect the likelihood of conflict and why they may have this effect.
In chapter 3, I empirically test 5 separate models, each using a separate proxy for globalization in order to see what effect they exhibit on the likelihood of conflict. Data for these tests was retrieved from various sources. The correlate of war (COW) project was used to find out if there were any intrastate conflicts in a given year. To find the level of democracy within a country, I used to Polity IV data set which is a 21-point scale of the level of democracy versus autocracy within a country. The rest of the data was gathered from the world data bank. This study looks at 25 countries during the year 1998 and employs a cross-sectional approach to test for statistical significance of the variables.
The findings of this study are that high trade levels, FDI, and international tourism lead to an increase in the likelihood of conflict. Internet usage and mobile cell phone usage lead to a decrease in the likelihood of conflict. None of these tests show statistical significance but that was expected going into the study due to an extremely small sample size. The study concludes by suggesting certain policy implications and analyzing how this study relates to the current issues taking place in Egypt and Libya.
Name: Majkowski, Brandon
Date: Spring 2011
Major(s): Economics
Thesis Committee: J. Sickafuse, C. Allison
Title: Entrepreneurial Theories Applied to a New Venture Creation
Abstract: The failure rate of new venture creations started every day is astronomical. Success as a business owner in the entrepreneurial world is hard to achieve. The mismanagement, lack of planning, and non-existent or poor strategy are a couple key
factors contributing to the rate of failure. Economic theorists Jeffry Timmons, Michael
Porter, and Peter Drucker address necessary entrepreneurial principles and practices they believe are needed to keep a business competitive and viable in an industry. With a new venture creation in mind, the analysis of these economic principles, theories, and models will be made applicable to a new business model through theoretical and empirical data and analysis, potentially proving success or failure.
Name: Mitchell, Jeramine
Date: Spring 2011
Major(s): Economics
Thesis Committee: S. Martin, J. Sickafuse
Title: We Make It Rain: Salary Discrimination in Major League Baseball and the Associated Wage Gap
Abstract: For a strong, consumer-based labor market like professional baseball, the demand for young, talented athletes has consistently remained high. But even with this high demand, there are still statistical discrepancies that emerge between player’s salaries. The recent wave of non-white players into Major League Baseball has caused the materialization of a wage gap between not only white and Hispanic players, but white and black players as well. The objective of this analysis is to determine whether there are signs of salary discrimination within Major League Baseball. This study analyzes many different factors such as statistical productivity, expectations, and the population of ethnic groups within the region and how these factors play a part in determining wage differences between ethnic groups. This is supported by an in-depth regression analysis that will help to explain whether our variables are significant and what effect they have on player’s salary. This paper found that there was no strong evidence of salary discrimination between ethnic groups. In recent decades, more talented baseball players have come from Latin countries such as Puerto Rico, The Dominican Republic, Cuba and Mexico. The talents brought up from within the United States are athletes from predominantly urban backgrounds. Although the primary hypothesis was shown to be the contrary by the results, the hope is that this study can serve as a foundation for more research and analysis for any trends in wage discrimination within the MLB.
Name: Mohney, Britni
Date: Spring 2011
Major(s): Economics
Thesis Committee: S. Onyeiwu, J. Sickafuse
Title: The Significance of Ethical Policies in the NFL: A Study of NFL Teams and Their Impact on the Sports Industry over the Last Decade
Abstract: As of recent, the sport industry has been recognized as a business industry that is continuously growing. Because of the recent explosive growth and development, the sport industry has gained substantial media coverage for both on and off field activity. As the industry grows, sport teams begin to encounter ethical issues that show to be unique compared to the corporate industry. This study examines the differences in ethics between the corporate industry and the sport industry in regards to their decision-making processes and ethical values. Taking a closer look at how the National Football League has handled player violations over the past ten years.
The study will further explore ethical issues by running a regression to find the relationships between the dependent variable, winning percentage (of all thirty-two NFL teams) compared to the independent variables: crime rate in NFL stadium locations, number of player arrests, number of coaches with tenure, players with ten or more years of experience, how many teams have pro-bowl players on their rosters, and the number of fans attending the games over the last decade. Leading to an outcome that suggests the sport industry is a diverse and distinctive industry.
Name: Mudrick, Adam
Date: Spring 2011
Major(s): Economics
Thesis Committee: D. Goldstein, J. Golden
Title: A Case Study Examining Harley-Davidson’s Current Strategic Decisions
Abstract: Harley-Davidson (H-D) has been built on a foundation of American pride. Executives have framed its image to play on the red, white and blue in its consumers. In the 1980’s, management made fascinating decisions that turned Harley around in its worst of times. Later, case studies dove deep into these decisions, and dubbed
H-D a prime example of fundamental managerial principles. In the years after, H-D would continue their intensive branding strategies to reap the full reward of their executives’ bold moves. They implemented a vision and stuck to it for almost two decades. More recently, Harley-Davidson has made controversial strategic plans that have shifted them into a new transitional period. One example would be how their expansion to overseas markets put 3,500 Americans out of work. This research sheds light on Harley’s current business strategies and how they are deviating from their original vision. Those deviations from the original vision have changed and will continue to change the company’s brand image, but the extent to which is uncertain. I will use previous marketing and branding literature, as well as strategic management literature to complete the analysis. I will also use case the Honda Motor Company as a means for a comparative study. Specifically, the question I hope to answer is, “How will Harley-Davidson’s shifting focuses change their current brand?”
Name: Pappas, George
Date: Spring 2011
Major(s): Economics
Thesis Committee: S. Casler, A. Moskwa
Title: United States Industrial Sector Oil Consumption
Abstract:
Name: Powell, Hallie
Date: Spring 2011
Major(s): Economics
Thesis Committee: B. Afrasiabi, S. Onyeiwu
Title: Nigerian Economic Development: A Case of Resource Curse?
Abstract:
Name: Prehn, Maxwell
Date: Spring 2011
Major(s): Economics
Thesis Committee: S. Martin, T. Nonnenmacher
Title: Fair or Foul: Salary Arbitration in Major League Baseball
Abstract: Resource curse is problem which prevents economic development in many underdeveloped countries with a rich natural resource base. Although not every underdeveloped country faces every aspect of the curse, there are many different reasons for its existence. This paper will look at the phenomenon of resource curse from three dimensions. The economic dimension will look at some economic theories that indicate the possibility of resource curse. The political dimension will discuss the problems within the leadership of cursed countries. The historical dimension will look at the roots of the resource curse in colonial history. After reviewing the case of Nigeria, an attempt is made to see if the Nigerian path of economic development can be explained by the theory of resource curse.
Name: Romutis, Matthew
Date: Spring 2011
Major(s): Economics
Thesis Committee: S. Onyeiwu, J. Golden
Title: Firm Strategy and How It Relates to Competitive Advantage: A Case Study on Harley-Davidson
Abstract: In today’s ever changing environment, competition among firms is fiercer than ever before. It is more important now than ever before that firms develop a strategy that will enable them to achieve sustainability. This research looks at Michael Porter’s notion of strategy and how it compares to the Resource Based View of the Firm and the Transaction Cost Theory. At the onset of this research I was unaware of what type of strategy Harley-Davidson has utilized to achieve the level of success they are currently experiencing. My research leads me to conclude that Harley-Davidson utilized a combination of both Michael Porter’s notion of strategy as well as the Resource Based View of the Firm. Moreover, Harley placed a large emphasis on quality control and based many of their manufacturing decisions around quality control. It is evident in my financial analysis that Harley-Davidson is a major player in the heavyweight (851+ cc) motorcycle market. In addition to that we also learn that a United States manufacturing firm can compete with the Japanese given the right circumstances.
Name: Ross, Samuel
Date: Spring 2011
Major(s): Economics
Thesis Committee: B. Afrasiabi, T. Nonnenmacher
Title: Dependency Without Contracts: The Battle over Rents Between Firms and Unions
Abstract: Companies have investments in the labor force which can come from needing laborers to utilize physical capital and from training employees. Without binding contracts prior to the firm’s investment unions are able to create a monopolistic affect on the companies and can extract profits and quasi-rents in the form with higher wages. The question that is discussed is how much rent can unions extract from companies and how much control do companies have to prevent this. Carliss Baldwin has a paper that sets up a formula on how to have unionized labor with no contracts and remain profitable. He assumes that unions have full control over their wages and from that builds an argument that companies need to purposely build inefficient plants to protect profits. This paper will show that his assumptions are incorrect and rent-sharing should occur between firms and unions, which changes and weakens Baldwin’s equation.
Name: Saratowski, Matthew
Date: Spring 2011
Major(s): Economics
Thesis Committee: D. Goldstein, J. Sickafuse
Title: Nike: Innovations in Technology: The Key to Success
Abstract: Over the years Nike has produced products that have caught on with the general public and sports figures alike. I looked at the question “How has managing innovation and technology, along with product diversification and corporate coherence, helped Nike to stay competitive in the footwear/apparel industry?” In watching Nike over the years as a spectator and consumer I predicted that the management of technology was a key part of their success. In answering this question I examined several products that they have developed over the years. I concluded that the management of technology for Nike was not only part of their success but rather the single most important aspect of how they conduct their business.
Name: Slosar, Ashley
Date: Spring 2011
Major(s): Economics
Thesis Committee: S. Martin, R. Ormiston
Title: Unemployment and Mental Health: An Analysis of the Relationship Between Job Loss and Psychological Consequences as Measured Through Psychotropic Drug Use
Abstract: Unemployment is inevitable as well as the consequences it produces. The purpose of this study is to examine the mental health effects associated with unemployment, with psychotropic drug as the measure for mental health. Unemployment is hypothesized to negatively affect an individual’s mental state, possibly resulting in depression and increased anxiety. Such factors believed to influence an individual’s likelihood to suffer a mental health disorder and require psychotropic medication following unemployment include employment status, income, age, gender, race, educational attainment, marital status, and number of household children. These variables were analyzed through a logit regression, and the hypothesis that unemployment produces adverse mental health effects was not rejected. The results of this study have significant policy and health implications, and future extensions should specifically target possible solutions to prevent these consequences from affecting unemployed workers.
Name: Stahl, Matthew
Date: Spring 2011
Major(s): Economics
Thesis Committee: B. Afrasiabi, a. Moskwa
Title: The Effect of Mineral Right Inclusion in Agricultural Land Transactions
Abstract: This purpose of this study is to examine how inclusion of mineral rights in agricultural land transactions affects sale price in Crawford County. The motivation for this empirical exploration is a consequence of the dramatic increase in natural gas extraction that has occurred in Pennsylvania due to widespread drilling targeting the vast Marcellus Shale Formation in recent years. The valuable gas rich shale is found in heavily concentrated underground pockets throughout the state. As a result, property owners possessing ownership rights to these shale deposits are reaping financial gain as gas companies compete in what is becoming a land grab in these gas rich regions. Because of this revenue potential resulting from mineral right ownership, the hypothesis that the inclusion of mineral rights in a land transaction positively affects the price is formed. To test this hypothesis, regression analysis is implemented. The equation used in the regression model consists of seven independent variables that, based on prior studies, are known to be characteristics affecting the price of land. The results of the regression are mixed. The conclusion of this study provides a discussion shedding light on possible trends in land ownership emerging in Crawford County based on the potential for natural gas extraction in the coming years.
Name: Stamm, Craig
Date: Spring 2011
Major(s): Economics
Thesis Committee: D. Goldstein, J. Golden
Title:
Abstract: The inherent principal of this paper is to exploit the industries and their subsequent firms that operate under the capitalistic radar, which exists to govern free enterprise and private business. Industries like the automobile industry have maneuvered business operations in such a way that they have been able to slip through the cracks that subsist within the natural laws that preside over capitalistic ideals. As such, the automotive industry has become an arena dominated by a few huge firms who hold considerable market power. By analyzing specific firms inside the industry, it becomes clear that there is in fact firms that are too big for the government to let fail.
Accordingly, the introductory chapter of this paper will begin to explore capitalism as well as the natural laws that control free enterprise. The chapter will explore the relationship between technological innovation and social evolution and begin to construct a case against private businesses that have constrained innovative thinking in the industry.
Name: Stancik, Katherine
Date: Spring 2011
Major(s): Economics
Thesis Committee: D. Goldstein, R. Ormiston
Title: Best Buy’s Success and Circuit City’s Failure: A Result of the Level of Ethical Treatment Each Company Displayed Towards Its Stakeholders While Making Managerial Decisions Regarding Strategy and “Fit” Management?
Abstract: Best Buy and Circuit City were the #1 and #2 industry-leading consumer electronics retailers, respectively, as of 2008. They sold virtually the same products, provided similar services, and operated stores in the same local markets. So why did Circuit City file for bankruptcy and go out of business in 2008 while Best Buy continued to be the industry leader? This paper strives to understand how these two very similar companies experienced such different outcomes, via an in-depth case study. Conclusively, this paper highlights the importance of displaying ethical treatment towards stakeholders while making sound managerial decisions linked to a company‘s competitive strategy.
Name:Stasa, Robert
Date: Spring 2011
Major(s): Economics
Thesis Committee: S. Martin, R. Ormiston
Title: The Role of Legislation on the Prevention of Faulty Mortgages: Moral Hazard and Asymmetric Information in the Mortgage Market
Abstract: Many factors contributed to the economic recession of 2008. This paper examines the mortgage market and how the changing mortgage standards influenced the mortgage foreclosure rate. The mortgage foreclosure rate acts a proxy for the amount of faulty mortgages and suggests areas in the mortgage market that are in need of additional regulation.
The paper begins by examining the historical causes and effects of the Glass-
Steagall Act of 1933. The diminishing mortgage standards over the years are then
observed and examined as structural changes within the mortgage market. The theory of moral hazard is applied to the removal of risk that pass-through mortgages allowed.
Theoretical implications of asymmetric information are applied to the market resulting
from using subprime mortgages in collateralized debt obligations.
The foreclosure rate regression accounts for other economic influences over the
foreclosure rate and allows examination of the years after the structural changes in the
mortgage market. The results of this study suggest important aspects to consider when deciding upon the adequate levels of regulations in the mortgage market.
Name: Strawser, David
Date: Spring 2011
Major(s): Economics
Thesis Committee: D. Goldstein, C. Allison
Title: Baseball Core Competencies: Player Retention and Stadium “Technology”
Abstract: This project explores core competencies in Major League Baseball. Using new stadiums as new technology, does one model or core competency produce better performance than another? Also this project explores whether or not these new stadiums have the same impact on a franchise independent of its core competency. Performance is measured using three variables. The first of these is winning percentage. The higher an organization‘s winning percentage the better there on field performance. The second performance variable being measured is revenue. Used to measure economic performance, higher revenues coincide with better performance independent of results on the field. The third and final performance variable that is measured in this study is profit. In this study profit is defined strictly as revenue less player payroll. Thus, a measure of high profit will demonstrate an organization that is able to succeed economically by maximizing revenue and/or minimizing costs. After collecting data to measure wins, standings, attendance, revenue, payroll, and two star-player retention variables, multiple regression models are used to determine organization success. The theoretical argument is that using a new technology, in the form of a new stadium, impacts team‘s core competencies, in the form of player development. There are different and distinctive strategic fits between a given stadium (technology) and player development (core competencies). A new stadium may be used to support either a Develop and Sell or a Develop and Retain strategy. Either of these can be profitable as long as there is good fit with the organization. However, even though both strategies can be profitable, there are very different implications for baseball competitiveness.
Name: Subasic, Peter
Date: Spring 2011
Major(s): Economics
Thesis Committee: B. Afrasiabi, A. Moskwa
Title: The Effects of Oil Volatility on the Stock Prices for Southwest Airlines and American Airlines
Abstract: This Paper will investigate the affects that oil price fluctuation has on the stock prices of Southwest Airlines and American Airlines. Oil prices are volatile by nature, and I will examine the impact this volatility has on the two airline companies. In order to see this relationship vector auto-regression will be used, allowing us to test for Granger Causality. It is also important to keep in mind the current standing of the two companies; Southwest Airlines is a thriving company, while American Airlines has seen a recent decline in profitability. The theoretical portion of this paper takes a look at the pricing of individual securities and the variables that influence prices. The results produced rather intriguing revelations. Southwest Airlines stocks were not heavily dependent on oil prices. Oil price shocks, either up or down, ended up not affecting the stocks rate of return. On the other hand, American Airlines stock price did show signs strong causality in respect to oil prices. There was correlation shared between oil prices and Americans stock price. It can be concluded that the more profitable an airline industry is, the stronger the correlation shown between stock prices and oil prices.
Name: Susi, Michael
Date: Spring 2011
Major(s): Economics
Thesis Committee: S. Martin, J. Sickafuse
Title: Revenue Sharing Impact on the Competitive Balance of Major League Baseball
Abstract: Baseball is one of the longest running and most respected sports in a thriving entertainment industry. Prior to 1998 there has been much dispute over whether a competitive imbalance in Major League Baseball exists, but in attempt to prevent this from being an issue, Major League Baseball developed a revenue sharing system in 1998. How has revenue sharing in Major League Baseball affected the competitive nature of the league since it was implemented in 1998? Considering how the revenue sharing system works, competitive balance should continue to increase over time, but winning percentages in the league suggest otherwise. In this study, I empirically examine trends caused by revenue sharing that have a direct relationship to the competitive balance of the league. Upon my results, I suggest policy implications to remedy the possible flaws resulting in the lack of improved balance, or possible incentive plans for owners.
Name: tenPas, Eric
Date: Spring 2011
Major(s): Economics
Thesis Committee: S. Martin, R. Ormiston
Title: The Effects of Marijuana on the Labor Market Outcomes
Abstract: For years, Marijuana has been a hot topic in the news. The push for legalization is becoming more and more evident. Just this November, California voted on Proposition 19 to be passed which would legalize marijuana in the state of California for recreational use, however it did not pass. In this paper I’m going to look at the effects of marijuana, alcohol, and cocaine on income. The data I will be using for this will come from the National Survey on Drug Use and Health (NSDUH). If the results show that marijuana has more similar effects to tobacco/alcohol then this would imply that the legalization of marijuana is a viable option. If the effects are more similar to harder drugs, then this would imply that marijuana should not be legalized.
Name: Terpin, Brian
Date: Spring 2011
Major(s): Economics
Thesis Committee: S. Onyeiwu, R. Ormiston
Title: The Importance of Strategy and Management: A Case Study of Ford
Abstract: The Great Recession was extremely difficult on everybody. Many businesses went under, and many people lost their jobs as almost every type of businesses were forced to cut cost. The hardship was especially seen in the American automotive industry’s Big Three. However while Ford struggled during the recession, they were able to come out of the recession stronger than ever thanks to the decision making of their new CEO, Alan Mulally. This paper reviews what strategy and strategic positioning is, before exploring what changes were made by Mulally when he became CEO, and finishes with how his decisions affected Ford financial statements. This paper argues that a company with good leadership and a good strategy can succeed in even the worst economic times, as Ford was able to do during and after the Great Recession under the leadership of Alan Mulally.
Name: Traynor, James
Date: Spring 2011
Major(s): Economics
Thesis Committee: D. Goldstein, c. Allison
Title: An Investigation of the Relationship Between Social Media and Marketing Techniques in the 21st Century
Abstract: The following comprehensive study analyzes the importance of the use of social media in present day marketing techniques. During this process, the significance of social media will be made apparent by demonstrating how a company can convert social media marketing efforts into tangible results. With the use of scholarly literature, I will showcase how Groupon’s marketing strategy has used social media and marketing techniques to become one of the fastest revenue grossing companies in the history of the Internet. The social media relationship between Groupon, Facebook and the benefits of companies that use social media will be specifically analyzed.
Name: Trembulak, Joel
Date: Spring 2011
Major(s): Economics
Thesis Committee: S. Casler, J. Sickafuse
Title: The Determinants of Labor Force Participation: Black vs. White
Abstract:
Name: Wagg, Justin
Date: Spring 2011
Major(s): Economics
Thesis Committee: S. Casler, J. Liu
Title: Fluctuations in the U.S. Emissions/GDP Ratio: Structural Shifts and Import
Substitution
Abstract: Climate change is an ever increasingly important and hotly debated topic worldwide. Because of its global ramifications, policy aimed at mitigating its effects need to be comprehensive, fair and effective.
One of the most important contributors to such comprehensive, fair and effective policy is research. This paper investigates the relationship between US carbon emissions as they relate to US manufacturing activity, specifically manufacturing imports and service sector growth. I hypothesize that the United States’ increasing reliance on foreign countries for manufactured goods has shifted polluting emissions to developing nations, where besides their contribution to climate change, also have implications for the welfare of their citizens. I believe that this increasing reliance on foreign trade has
structurally shifted our emissions elsewhere, while we have enjoyed the benefit of a
flourishing service economy.
Through the use of multivariate regression analysis, I conclude that
manufacturing imports and service sector growth do contribute to changes in US
emissions, though my test results were statistically insignificant.
My findings indicate that the US should not underestimate its effects on
world carbon emissions. Our dedication to climate change mitigation should be far reaching
and diverse.
Name: Wendaur, Taylor
Date: Spring 2011
Major(s): Economics
Thesis Committee: S. Casler, J. Sickafuse
Title: The Growth of Real Stock Prices: Profit Maximization and Investor Utility
Abstract: In the United States economy, the stock market is highly indicative of the country’s economic welfare. The amount of market investment or participation as well as stock prices both influence and reveal the activity and prosperity of the nation’s economy at a given time. The goal of this research is to identify the variables that act as determinants of stock prices and to evaluate their correlation with growth in share prices. Both objectives of the issuing firm and of the shareholder contribute to the price determination of shares. The influences these two parties have on growth in the stock market are important to understanding and utilizing this high-profile indicator.
Having identified the theoretical determinants of price from current theories, including profit maximization in a perfectly competitive market, fluctuations in the New York Stock Exchange’s Dow Jones Industrial Average are compared to movements in selected U.S. economic variables. An empirical analysis is undertaken to examine whether current economic theories fully describe historical market data. The model exploring influences on share price growth yields mixed results. The theoretically significant variables were found to only marginally explain actual data, demonstrating price variations likely from inefficient assessment of future cash flows due to market noise and participant irrational investment resulting from subjective, emotional factors. The conclusions demonstrate a divergence from efficient market hypotheses due to deviance from rational investor behavior indicating investor utility, monetary return, is not always maximized in stock market investments.
Name: Wilhelm, Daniel
Date: Spring 2011
Major(s): Economics
Thesis Committee: D. Goldstein, a. Moskwa
Title: Beyond Petroleum? An Inside Look at BP Solar and the Rise of the Solar Industry
Abstract: The solar industry has been a rising industry over the past decade and is trying to make its mark in the alternative and renewable energy markets. With the growing concern over the supply of oil, renewable energy is becoming increasingly important for the public to invest in. Solar only has a minute share of the total output of renewable energy. Solar energy is the cleanest of all forms of renewable energy and with the proper approaches solar energy can gain the market share necessary to be profitable. BP has a solar division, BP Solar, which can benefit from BP’s assets and distribution channels. By examining Michael Porter’s teachings, along with Peter Drucker’
Name: Wilson, Kyle
Date: Spring 2011
Major(s): Economics
Thesis Committee: D. Goldstein, a. Moskwa
Title: Innovative Technology in the Auto Industry: A Comparison of United States and Japanese Firms
Abstract: This paper investigates how innovative technology was used to cope with rising fuel prices, and how innovative technology was used to gain a competitive advantage. The recent rise in the price of gasoline has impacted innovative technology in the auto industry because firms need to innovate in order to influence or satisfy consumer demands. Now more than ever, consumers are in search of a much more fuel efficient model. The Literature framework of this research is focused around different strategies and theories of utilizing innovation, and managing innovation as a resource. A comparison of United States and Japanese firms will be used to further explain differences in strategy and how these differences impacted the use of innovation to accommodate rising fuel prices. The empirical analysis relies on historical statistics designed to show a relationship between the rising prices and innovative technologies, and how each firm adapted to meet market demands. The results show not only that there is a connection between innovation and rising fuel prices, but also that a difference in strategy between the Japanese and US firms exists.
Name: Zelanko, Caleb
Date: Spring 2011
Major(s): Economics
Thesis Committee: S. Martin, S. Casler
Title: No Child Left Behind and Special Education: Effects on Pennsylvania Funding Allocations
Abstract: In 2001, the federal government implemented large scale education reforms under the title No Child Left Behind (NCLB). NCLB legislation strives to enhance state and teacher accountability by measurement of student progress through standardized testing. Studies have shown that since 2003, the average annual increase of state funding for special education programs has remained significantly lower than annual inflation rates. This study presents empirical evidence on the effects that the NCLB Act has had on the allocation of budgetary funds toward special education programs in Pennsylvania school districts. It uses a panel regression model to estimate these effects, holding constant variables such as special education student to teacher ratio, student to school ratio, etc. It also examines school district incentives to focus on the enhancement of specific segments of high school populations, and it provides implications as to the consequences of the NCLB Act on the growth and development of special education programs in Pennsylvania.