Senior Project Abstracts 2015

Name:  Aurin, Megan

Date: Spring 2015

Major(s): Economics
Thesis Committee: T. Nonnenmacher, T. Herrera

Title: Zara and Velvet: A Fashion Expansion in the United States and Historical Spanish Style

Abstract:  Zara is a successful Spanish clothing company that has taken over Europe with its fast-fashion model; however, it is still in the early stages of opening stores in the United States. This project provides analysis of the United States and Spanish markets, a statistical study of cities in the U.S. in which Zara operates, analysis of the Spanish culture through the use of the television series Velvet, and predictions for where Zara will increase its presence in the United States.

Name: Bailey, Hunter

Date: Spring 2015

Major(s): Economics
Thesis Committee: R. Ormiston, A. Baskan

Title:  How Does Food Availability Affect Food Selection?

Abstract:  The purpose of this study was to determine if there was a link between the availability of fresh produce in low income areas and the selection of these foods by consumers. Prior research suggests the existence of “food deserts,” areas where fresh produce is not readily available at a reasonable quality and price. It was hypothesized that a combination of firm transportation costs and opportunity costs as well as consumer budgets and ability to secure transportation would result in areas where consumers were willing to purchase fresh food but unable to due to a lack of availability. The data used to conduct this research came from the Center for Disease Control’s Behavioral Risk Factor Surveillance System. The BRFSS is a telephone survey featuring general health-related questions and including geographic information as well as information on income and amount of food consumed. Results show that residents in rural areas consume fewer fruits, vegetables, beans, and legumes even when accounting for income, education, and general demographic information. Results also show that individuals in the highest income bracket consume more fruits and vegetables than those in lower income brackets, and that amount of fruits and vegetables consumed increases with education. The reduced consumption found in rural residents could possibly indicate a food desert area however more detailed study would be required to prove this conclusively.

Name:  Blashford, Bailey

Date: Spring 2015
Major(s): Economics
Thesis Committee: S. Martin, A. Baskan

Title:   The Small School on the World Stage: An Analysis of Online International Recruiting Strategies for Private Liberal Arts Institutions

Abstract:  American higher education is one of the largest industries in the service sector. As the demand for a college education has risen greatly since the 1960s, so has the demand for American higher education by international students. With the pressure to globalize, universities must make strategic plans of action to attract international students to their classrooms. Much of the larger body of research has examined the marketing of higher education systems in the United Kingdom, Australia, and Canada. Furthermore, the institutions in the samples are often large, public research universities. This paper evaluates the marketing strategies for four-year private liberal arts institutions in the United States. Unlike large research universities or Ivy League institutions, the smaller liberal arts institution cannot rely on brand name alone to attract international students. Instead, they must constantly develop and improve their marketing to compete for overseas applicants. This paper evaluates the components of the admissions websites for each of the institutions in the sample and completes a content analysis and series of regressions in order to determine their effectiveness. Finally, this paper seeks to identify the determinants of effective higher education marketing of American four-year private liberal arts colleges to students across the globe.

Name:  Bluedorn, Mackenzie

Date: Spring 2015
Major(s): Economics
Thesis Committee: R. Ormiston, A. Baskan

Title:  The Cost of Community: Do Neighborhoods Affect Disease-Causing Socialization?

Abstract: This project explores a possible relationship between location and flu transmission using socialization as a vehicle. Under the supposition that individuals will interact more frequently with others who share a similar desirable quality, such as race or income, those people who live closely in homogenous areas will have increased daily socialization due to this “like me” preference. As influenza is a communicable disease, increased socialization will also mean higher flu rates. Thus, a variety and control and experimental social variables became the subject of analysis for this project. Ultimately, the results were nebulous and overall inconclusive, though they did provide some potentially interesting insight on the linkages between locational homogeneity, socialization, and flu infection.

Name:  Bober, Thomas

Date: Spring 2015
Major(s): Economics
Thesis Committee: R. Ormiston, D. Frank

Title:   Impact of NFL Team Intelligence on Overall Team Performance

Abstract:  “The goal of this paper is to investigate the impact that and NFL team’s intelligence has on their teams performance. It will first look at how the NFL measures intelligence and what previous works have done with the relationship of intelligence and performance. From the theory aspect, this paper will focus on two area, signaling, and human capital. A regression will be run to see how average college rank affects the winning percentage of a team. Other performance based statistics were added to make a more accurate model. The regression showed that as the average college ranking decreased, the winning percentage increased with statistical significance.”

Name:  Boyd, Jonathan

Date: Spring 2015
Major(s): Economics
Thesis Committee: S. Bilo, J. Golden

Title:  Sinaloa DTO and Los Zetas: Organizational Structure and Violence as Profit Maximizing Strategies

Abstract:  This paper applies a profit maximization formula of drug trafficking organizations as well as applies research done on effective criminal organizational structures in order to determine the similarities and differences the Sinaloa and Los Zetas drug trafficking organizations. The profit maximization model by Castillo (20130 determines that the DTO with control over the most trafficking routes (plazas) earns the largest portion of aggregate profits. This paper explains how the Sinaloa DTO and the Los Zetas use their organizational structure and violence as two ways of maximizing profits, in order to maintain control of new plazas and defend already owned plazas. The Sinaloa DTO organizes in a cell-dominated hierarchical structure with multiple leaders that have full control and power over the organization, but each plaza they control is ran individually falling into the binary cell structure of organization. The Los Zetas began with an individual hierarchy structure, but have adapted as their business has expanded, to a structure that resembles the Sinaloa DTO, with only minor differences. The two organizations have different strategies when it comes to violence. The Sinaloa DTO would much rather bribe and individual the immediately resort to violence, while for the Los Zetas violence is second nature. Mexico, dominated by these two seemingly different DTOs, but their similarities is what allows them to achieve sustained success.

Name: Bronson, Adam

Date: Spring 2015
Major(s): Economics
Thesis Committee: S. Martin, J. Golden

Title:  Foreign Born vs. Native Born Players in the NBA: An Analysis of Wage Discrimination

Abstract: The following paper offers an insight into the evolution of economic literature pertaining to discrimination in the National Basketball Association. Based off changing demographics of the United States and racial composition of the NBA, the topics of racial player salary differentials, customer discrimination, and own-race bias are discussed. Recent economic research evaluates the possibility of player nationality discrimination in the NBA. The NBA has catapulted their television revenues by the rising number of foreign players on NBA rosters and the accumulation of that player’s foreign NBA fan base. Since foreign players have a greater perceived marginal revenue product than native born players, does the NBA exhibit discrimination based upon the nationality of their players? Economic literature pertaining to racial pay discrimination, fan preference of race, discrimination exercised by the team’s owner, and discrimination of player nationality are the theoretical foundation for this paper.

Name: Cooke, Phoenix

Date: Spring 2015
Major(s): Economics
Thesis Committee: S. Martin, Z. Klingensmith

Title:  21st Century Inequality and Property Crime within U.S Neighborhoods: Does Local Inequality Translate into Increased Levels of Property Crime from 2000 to 2010?

Abstract:  “Previous research has only focused on analyzing relationships between inequality and violent crimes. The purpose of this present study is to shed light upon relationships between inequality and property crimes. This study analyzes national neighborhood census data from 2000 to 2010 to see if local inequality translates into increased levels of property crime. Property crime is defined in this study as: robbery, burglary, and auto theft. After a literature review, a theoretical framework is established for each of the three inequalities being studied: income inequality, unemployment, and racial inequality. The major theories discussed in this chapter are: Becker’s Rational Choice Theory of Crime, Social Disorganization theory, and Merton’s Strain theory. Finally, an empirical chapter will be introduced to determine if a relationship exists amongst the inequalities and property crimes. Through OLS regression analysis, it is expected there will be a positive correlation between all three inequalities and property crimes during the recession that occurred from 2007 to 2010. Outside of the recession, it is expected there will be lower levels of both inequality and property crime yielding weaker correlations amongst the variables. “

Name: Cooper, Sarah

Date: Spring 2015
Major(s): Economics
Thesis Committee: T. Nonnenmacher, J. Golden

Title:  A Shift Toward a Cashless Economy: An Empirical Analysis

Abstract:  “This research aims to study four different factors that influence a country’s economy to go cashless. It is important to understand how an economy goes cashless since this development is evolving worldwide. This study will observe thirty-three different countries journey to a cashless economy based on four different factors. The factors include access to financial services, cultural, merchant competition, and technological infrastructure. The application of these four different factors will be applied to three different countries through an observation of case studies. The three different countries observed include Nigeria, Greece, and South Korea. Nigeria shows poor access to financial services, creating a lack of ability to transition to a cashless economy. Greece also showed poor signs of access to financial services due to inflation, debt and high deficit. However, Greece showed how a country is able to change and move toward a cashless economy. Greece adopted the Euro, which had a positive impact on their access to financial services. The thirty-three different countries will be observed through an empirical analysis in order to determine the characteristics that influence the four factors of a cashless economy. South Korea’s strong technological infrastructure makes for a smooth transition to a cashless economy. The empirical evidence showed that if a country shows strong economic consistency in all four factors: access to financial services, macro-economic and cultural factors, economy of scale, and technological infrastructure they are able to successful transition into an effective cashless economy.”

Name: Cseh, Janos

Date: Spring 2015
Major(s): Economics
Thesis Committee: S. Bilo, D. Frank

Title:  Art and Contracts: Bilateral Contracting in the New York Art Gallery Market

Abstract:  In this paper I look at how the contracts made between artists and art galleries are a real world example of Oliver Williamson’s framework for bilateral contracting. The New York art gallery market poses interesting questions about the relationship between galleries and artists. One thing in particular is the reasoning for artists and galleries to go into business with one another in the first place. For an artist to sell work it is much easier to go through a gallery, and without artists galleries would not exist. Williamson discusses the reasoning for market organization such as this to occur in his work on contractual governance. In Williamson’s terms the artist-gallery relationship would fall into the category of bilateral governance. This is due to the variable nature of the way an artist produces work, as well as the specific nature of a gallery’s ability to show that artwork. The contracts formed as well as the actions parties make in transactions reflect his thought process in the terms that form them. Through an investigation of this subject via the lens of Williamson’s framework for contractual governance I will be analyzing the motivations of each party in the relationship, how these partnerships work, and the nature of the contractual relationship between galleries and artists. In doing so I argue why Williamson’s proposal for bilateral governance is present in the real world through the example of the artist/art gallery relationship. I found that the relationship exhibits the key features of a bilateral relationship which are mixed asset specificity and continuous transactions, showing that the artist and art gallery relationship is a real world example which proves Williamson’s framework for bilateral contracting.

Name: Dawida, Joseph

Date: Spring 2015
Major(s): Economics
Thesis Committee: S. Martin, J. Sickafuse

Title:  Evaluating the Choice between Schooling and On-The-Job Training for MLB Prospects

Abstract:  Every year a select few high school baseball players are drafted by a Major League Baseball organization. They are then faced with the decision of either choosing to go to college, or forgo college and sign a contract with the organization which drafted them. The purpose of this research is to analyze all of the necessary factors that go into this decision in order to determine if a player should sign a professional contract or go to college. Looking at human capital, on-the-job training, risk assessment, and general statistics, this research aims to decide when a player should choose what to do based on expected lifetime earnings of both decisions. This research paper hypothesizes that the signing bonus offered to players who are drafted will ultimately dictate which decision they should make.

Name: Delzer, Victoria

Date: Spring 2015
Major(s): Economics
Thesis Committee: S. Onyeiwu, J. Sickafuse

Title:  The Link between Workplace Wellness and Strategy: A Case Study of Johnson & Johnson

Abstract:  The modern obsession of health and fitness is becoming integrated in all aspects of life, including the business world, yet little is known about the relationship between the two. This study examines the rationale for employee wellness programs and how they may fit into corporate strategy. Johnson & Johnson’s established wellness program has provided an example for other companies since its foundation in 1979. By analyzing Johnson & Johnson’s employee health initiatives and how it fits into their strategy, this study aims to shed light on how employee wellness can be a sustainable source of competitive advantage, whether it is operational effectiveness or strategy. As a company dedicated to health, Johnson & Johnson was able to incorporate employee wellness into a core aspect of their strategy. While other companies may not be comparable to Johnson & Johnson, this study proves that wellness can be an essential part of a corporate strategy if positioned appropriately.

Name: Donatelli, Erik

Date: Spring 2015
Major(s): Economics
Thesis Committee: S. Bilo, D. Frank

Title:  The Effects of UEFA’s Financial Fair Play Regulations on Team Finances and               Competitive Balance in the English Premier League

Abstract:  The governing body of European Soccer, UEFA (Union of European Football Associations), implemented a Financial Fair Play policy, which disallows teams from running deficits. The goal of the regulation is to restore the competitive balance across leagues as well as to secure the long-term financial stability of European Soccer clubs. A theoretical model was developed where the top teams operate at a softer budget constraint and are therefore more affected by the reduction of deficit spending. Analysis of financial ratios, from empirical data on the English Premier League, imply that big clubs continue to dominate the Premier League, but Financial Fair Play has caused a short-term shock in the leagues competitive balance.

Name: Emigh, Derick

Date: Spring 2015
Major(s): Economics
Thesis Committee: R. Ormiston, Z. Klingensmith

Title: The Marcellus Shale Industry: Impact on Single-Family Home Prices in Clearfield County, Pennsylvania

Abstract: The Marcellus Shale industry is a rapidly growing industry in Pennsylvania.  Well companies are seeing large profits as they extract the natural gas from underground.  Areas where gas drilling is prevalent are starting to see economic costs and benefits associated with the activity.  One area that the industry has affected in the state is the housing market.  Prices of rental units rising are a result of increasing housing demand due to the influx of well workers to drilling regions, but little research has been completed on how housing prices have reacted to drilling in close proximity to a well.  Pollution from a well, lighting, and noise may have a negative effect on the price of a nearby home.  This paper will try to capture if the distance relative to an active Marcellus Shale well will have an effect on the price of a single-family home in Clearfield County, Pa.  By estimating a model that with the sale price of a home as the dependent variable and distance as an independent variable, no statistically significant evidence shows that the distance relative to an active Marcellus Shale well will have an effect on the price of a single-family home in Clearfield County, even though distance would have a negative effect on the price in close proximity.

Name: Fajardo, Neil

Date: Spring 2015
Major(s): Economics
Thesis Committee: R. Ormiston, A. Baskan

Title: “Has Labor Parity Been Achieved?: Asian Women and White Women”

Abstract: The purpose of this study is to see if labor parity between Asian women and native born white women has been achieved. To achieve this, a multivariable linear regression model is used to estimate the wage differentials between these two groups. The dependent variable in the analysis is wage and salary income. The independent variables include race, birthplace (nativity), education (level of attainment), family status, occupation, and English proficiency. Age is used as a control variable. The study found native born Asian women earn more than native born white women. Foreign born Filipino and Southeast Asian women earn more than native born white women. Foreign born Japanese and Asian Indian women earn less than native born white women.

Name: Fey, Steven

Date: Spring 2015
Major(s): Economics
Thesis Committee: T. Nonnenmacher, Z. Klingensmith

Title: The Social and Economic Determinants of Gentrification

Abstract: The goal of this study is to identify and analyze the process of gentrification within the neighborhoods of Pittsburgh, PA. Gentrification is the process of urban renewal through which wealthy residents displace low-income residents, resulting in the economic, social, and physical transformation of the area. Discussion of this process through production-side and consumption side theories set the scene for quantitative analysis within Pittsburgh. The data collected for this analysis came from the Census Bureau’s 5-year American Community Surveys in 2005-2009 and 2009-2013. Benchmark criteria were set to ultimately identify 10 gentrifying Pittsburgh census tracts. Characteristics of these gentrifying neighborhoods were compared to averaged values within rich and poor areas of the city to elucidate unique occupational, residential, and demographic trends. In addition, regression analysis was performed to further explore relationships considered in comparative analysis. Overall, the results of this empirical work did not provide conclusive evidence that favored any one of the established theories. Instead, closer observation of individual tracts showed that determinants of gentrification were often individual to each tract. To further examine determining forces of gentrification, a case study was performed on East Liberty. Together, insights gained from empirical analysis and the case study help to create a broadened perspective of gentrification as a highly varied and dynamic process.

Name:  Fox, Allison

Date: Spring 2015
Major(s): Economics
Thesis Committee: T. Nonnenmacher, Z. Klingensmith

Title:  The Function of Congestion Tax Revenue Recycling

Abstract: Congestion taxes have long been a controversial subject, with some largely in support of them and others vehemently against. Despite the dissenting opinions on the subject, there are multiple instances where these taxes have been put in place and been successful. There are specific factors that contribute to each case’s success or failure, like the severity of the congestion problem or the intended location of the charge zone. One of the factors that holds significant influence over the result is the intended use of the revenues brought in by the tax. There are various methods of revenue recycling that have been suggested and they all have their own advantages and disadvantages. This paper aims to show the key role that revenue recycling plays in the success of a congestion tax and to examine the different methods that have been suggested. It will also examine the specific cases of Singapore and London to see actual examples of the results achieved.

Name: Fleming, Todd

Date: Spring 2015
Major(s): Economics S. Onyeiwu, J. Sickafuse

Title:  Understanding the Economic & Managerial Dynamics of New Industries: A Case Study of Tesla

Abstract:  Over the past century, the automobile market worldwide has been dominated by vehicles utilizing the internal combustion engine.  Many of these vehicles are produced by incumbent firms in the market, creating barriers to entry for new firms.  In 2003, Tesla Motors was founded and has been an innovator in the industry by creating electric cars that are viable for everyday use.  This study aims to discover whether Tesla Motors has relied on cooperation with rival incumbent firms in order to stay open, as well as what strategies Tesla has utilized to create its own place in the market.  Lastly, this study will analyze sales trends of electric vehicles in the United States, as well as recent gas prices, to determine the rate at which the market will grow, and how sales are expected to increase for Tesla Motors.

Name: Glenn, Raysean

Date: Spring 2015
Major(s): Economics
Thesis Committee: R. Ormiston, Z. Klingensmith

Title: The Effect of Education on Crime: A Look at State Recidivism Rates

Abstract: There has always been a relationship between education and crime. People who have less education tend to find themselves in some type of incarceration system. In the United States the main goal of the prison systems is not to punish criminals, it is to reform them so they can be reintroduced to the public. One of the most important ways prisoners become reformed, during their incarceration, is through correctional education programs. In order to check how released prisoners are, the recidivism rates are usually examined. Recidivism is the process of an individual committing another crime, being re-arrested and reconvicted, and then returned back to prison. The purpose of this analysis is to examine and compare the recidivism rates of each state, while seeing if participating in a correctional education program helps keep the recidivism rates low. The major theories that will be used in this paper are the signaling theory and human capital approach theory. The data was collected from various databases from two separate ranges of years; the first being from 1999-2002 and the second being from 2004-2007.  According to this study, we found the number of releases to be statistically significant.

Name: Hebert, Hanna

Date: Spring 2015
Major(s): Economics
Thesis Committee: S. Onyeiwu, E. Pallant

Title: The Relationship between Corporate Environmental Performance and Corporate Financial Performance: An Empirical Analysis of 50 U.S. Corporations

Abstract: This study examines whether there is a bidirectional relationship between corporate environmental performance (CEP) and corporate financial performance (CFP). Recently, this relationship has gained more attention by both researchers and managers of firms. However, empirical results concerning this relationship remain inconclusive. Through a regression analysis of fifty U.S. corporations, I found there is no significant relationship between CEP and CFP. I also found improved CFP may actually hurt CEP. Furthermore, the results indicate there are specific factors that can improve firms’ CEP. My findings suggest firms that are smaller and newer have better CEP. However, these are factors firms cannot readily change through routine corporate actions. The implications of these findings are important for managers to consider when crafting their strategic plans.

Name: Hollinger, Nicholas

Date: Spring 2015
Major(s): Economics
Thesis Committee: S. Martin, J. Golden

Title: The Effects of the Natural Gas Boom in PA in Regards to Wage and Labor

Abstract: Previous research has briefly covered the natural gas boom in Pennsylvania.  However, there are numerous articles that talk about the possibilities of labor increases and economic growth.  This study is going to analyze the counties of Pennsylvania and see if there are actual employment gains as gas production increases.  The wages of the counties will also be tested to see if gas production increases wages.  The research will analyze the county labor markets and decipher whether the labor is transferred or new jobs are created.  There is going to be a sector employment analysis of Washington County in Pennsylvania. The study is going to cover when the horizontal drilling (Hydraulic Fracturing) began to take off.  The time frame of the study will be from 2009 to 2013.

Name: Hurtuk, Alexander

Date: Spring 2015
Major(s): Economics
Thesis Committee: T. Nonnenmacher, J. Sickafuse

Title: Competitive Balance in the National Basketball Association

Abstract:  In an attempt to increase league-wide competitive balance and aid the championship pursuits of small market teams, the National Basketball Association (NBA) instituted a salary cap prior to the 1984-1985 NBA season.  This paper seeks to answer the question of what, if any, effect the NBA salary cap and changes made therein have had on the level of competitive balance in the NBA.  This study calculates the level of competitive balance in the NBA from the 1976-1977 NBA season through the 2013-2014 season, using three methods of measurement: the year-to-year standard deviation of winning percentages within the league, the Competitive Balance Ratio (CBR) and the Herfindahl-Hirschman Index (HHI).  These calculations allow for the analysis of how the salary cap and its extensive rules have impacted the competitive balance in the league.  The salary cap has not led to a significant increase in the competitive balance in the NBA, with one measure suggesting that the competitive balance has fallen since the salary cap was instituted.  However, different aspects of the salary cap, including maximum player salaries, a mid-level exception, a luxury tax, and unrestricted free agency, have helped increase the NBA’s competitive balance.  Furthermore, as displayed by the Cleveland Cavaliers, the salary cap has become a strategic tool for NBA teams.  While the NBA witnesses a divide between competitive teams focused on short-term success and rebuilding teams focused on success in the long run, the salary cap gives all NBA teams, including small market teams, a chance to enter the upper tier of NBA teams and compete for an NBA championship.

Name: Jamerson, Leslie-Paul

Date: Spring 2015
Major(s): Economics
Thesis Committee: R. Ormiston, D. Frank

Title: Determinants of Success within the Fashion Industry: A Case Study of Buscemi & American Apparel

Abstract: This study examines determinants of success in the fashion industry. It first explores the development of the industry and how it expanded into the market it is today. Then it examines two fashion companies, Buscemi and American Apparel. The case studies look to reveal how these companies were able establish themselves in a market saturated with brands of all different tastes and styles. The sources are used to analyze each of the brands founders and how their specific backgrounds and visions lead to success of their brands.

Analysis indicates that a key determinant of a fashion label’s success in today’s industry is product differentiation. It shows that with the development of the market, a label founder with a unique vision could gain market share even without any formal industry training. This displays a transition in the industry from its inception and calls for further research on what it takes to succeed in the fashion industry, on the individual and firm level.

Name: Jones, Patrick

Date: Spring 2015
Major(s): Economics
Thesis Committee: R. Ormiston, Z. Klingensmith

Title: How the Natural Gas Industry Affects Income and Employment in Pennsylvania Counties

Abstract: This study will examine the effects that the natural gas industry, specifically Marcellus Shale, has on Pennsylvania counties’ employment and income levels. Unconventional gas drilling, also known as fracking, is a new process in which Shale rock deposits are drilled and natural gas is extracted. The process of fracking has raised much discussion when it comes to benefits and consequences. It is believed that fracking can boost the economies of the areas in which the process occurs, as well as the overall economy of the United States. The arguments against fracking include environmental damage and the creation of “Boomtowns”. Either way, the natural gas industry is found in abundance throughout Pennsylvania. Two different multiple-linear regressions comprised mostly of data from the United States Census Bureau, the Bureau of Labor Statistics, and the Bureau of Economic Analysis will be created to measure exactly how much employment and income are effected by natural gas drilling. The study will be conducted in all 67 Pennsylvania counties from the year 2006 to 2013. In both cases, the results indicated that there is a positively significant correlation between natural gas drilling and Pennsylvania county level employment and income.

Name: Jorgensen, Eric

Date: Spring 2015
Major(s): Economics
Thesis Committee: S. Martin, E. Palmer

Title: An Investigation on Farmer Suicide Rates in India

Abstract: The problem of suicide within India’s farming community has received an abundance of attention over the years. This has ranged from documentaries to articles in world-renowned newspapers. However, sources of data differ greatly on the amount of farmer suicide that is occurring within the country of India. We look at both the NCRB (National Crime Records Bureau) and the WHO (World Health Organization) published data to show the contrasting of quantities. We then follow this line to give a full picture of why scholars and journalists have given this topic such notoriety. This ranges from Bt cotton as a catalyst to farmer suicides to globalization of markets making farming unprofitable. We find that the Bt cotton debate is not so much central to Bt cotton as a product, but more so the global market factors that surround its value. We continue to look at other factors that may make farming in specific more uncertain and unpredictable, which could contribute to the vulnerability of the farmers’ state of mind: climate change, market pricing of goods, and microfinance lending. We continue to see that certain states are more vulnerable to these factors and use this information to test whether these factors impact suicide rates. Factors that are theoretically conceived of as relevant include: marginal farmers, cash crops, and indebtedness. These allow us to find that these three factors are closely correlated with suicide rates. Marginal farming can be seen as the inability to bare a bad crop yield or falling market prices. Cash crops can be seen as being volatile to their going market prices. Indebtedness can be seen as connected through the discussion on microfinance lending and their harsh interest rates that they incur, and if unable to pay the loans back, the farmer faces a variety of scrutiny and punishment. This paper’s goal is to provide an overarching viewpoint on the issue, while providing a key scope of where to look for answers.

Name: Jozwiak, Raymond

Date: Spring 2015
Major(s): Economics
Thesis Committee: T. Nonnenmacher, J. Golden

Title: Identifying the Causal Factors that Affect the Industrial Organization of Primary Aluminum Smelters Across the Globe: An In-Depth Analysis

Abstract:  This study provides an in-depth analysis of the causal factors that influence organization in the primary aluminum industry. It presents a literature overview, theoretical framework, empirical analysis, and case study. The empirical analysis applies a set of cross sectional data for the year 2011 to evaluate the impact of electricity costs, infrastructure and institutional quality, and legacy of past investment on the location of primary aluminum smelters across the globe. Empirical work is performed using multiple regression analysis, which allows for estimation and evaluation of the average linear relationship between multiple variables. Estimation results show electricity costs and institutional quality as the leading causes of locational factors for primary aluminum smelters worldwide. The study also incorporates a case study that examines how the imposition of the load-in, load-out (LILO) rule on warehouses registered with the London Metal Exchange (LME) has affected the organization of the US aluminum industry. Aluminum producers are responding to the LILO rule by vertically integrating downstream in order to deliver final products directly to the economy, rather than the traditional practice of selling unwrought aluminum ingot to warehouses in the LME system

Name: Keenen, Ashley

Date: Spring 2015
Major(s): Economics
Thesis Committee: S. Martin, A. Baskan

Title: The Effects of Tariffs on the Economy of the United States

Abstract: The important question this paper aims to answer is whether or not tariffs, as a form of trade policy, can be beneficial to the United States economy? The United States has chosen to keep tariff and non-tariff trade barriers low, since they have become reliant on  a vast amount of  imports. Multiple theoretical models discussed in this paper demonstrate the benefits of international trade, but do not account for the need of trade policy, which has benefited countries in the past. The relationship and use of tariffs, specifically in the steel industry, between China, one of the United States biggest trading partners, and the United States are addressed through the use of data of net exports, steel imports, and trade deficit levels in the years of 2000 through 2014. The results obtained from the empirical analysis demonstrate a high level of significance but determines that tariffs may not be beneficial. Increased tariffs have a negative impact on net exports, indicating a decline in Gross Domestic Product of the United States. It is inferred from these results that the higher tariffs become, the worse the effect on the United States economy. Further research can be done that analyses the use of how and when the United States implements tariffs, or other viable trade policies.

Name: Krason, Kassandra

Date: Spring 2015
Major(s): Economics
Thesis Committee: S. Onyeiwu, D. Frank

Title: Technological Strategies of High-Tech Firms: A Case Study of General Electric and Siemens AG

Abstract:  This study examines technological strategies of high-tech firms, covering the years 2010 through 2013. The analysis focuses on a case study of two industry leaders, General Electric and Siemens AG, and examines how their strategic choices have affected their performance and competitive positioning within the power generation sector. The sources used to determine each firm’s strategy include their annual, environmental and sustainability reports, financial data, and historical milestones. Technology and financial performance indicators are utilized to determine the firms’ strategic success.
The analysis indicates that both firms have prospered by committing to technology-leadership strategies. Through analysis, General Electric proved superior by investing more intensely in research and development, and keeping decentralization and globalization in sync with home base headquarters by limiting the number of global R&D locations to create a more holistic corporate governance structure.

Name: Kukunas, Stephen

Date: Spring 2015
Major(s): Economics
Thesis Committee: S. Martin, A. Baskan

Title: The Effects of Insurance as an Employer Provided Fringe Benefit on Wages

Abstract: This paper analyzes whether the inclusion of dental, health and/or life insurance negatively affects the monetary wages of an individual. Economic theory suggests that because an employer is offering fringe benefits like insurance, then they can pay less to employees as they are technically paying them with that benefits. However, results from similar studies have shown that things are not clear cut and many other factors like race, gender, age and company size can affect the actual effect insurance has on wages. Insurance is more likely to be offered to employees who make more because it is often associated with better jobs. Thus I investigate the effect of employer given insurance on income with respect to gender, race, age, and company size using longitudinal data from the Longitudinal Survey of Youth. Two different models were used, one which was a static regression of the data in 2012 and another which used first differencing between different years in the data. While there were issues with missing data in the data set and multicolinearity, we did arrive at a reasonable result. For the most part, we found fringe benefits were either negatively correlated to income or not statistically significant.

Name: Laurune, Lauren

Date: Spring 2015
Major(s): Economics
Thesis Committee: S. Onyeiwu, J. Golden

Title: The Effects of Market Structure and Business Strategy on the Performance of Regional Banks

Abstract: In today’s society, most consumers are in some way involved or affiliated with a retail bank. Therefore, it is important for the efficiency of the economy that banks remain healthy and well-performing institutions. Most retail banks are regional (i.e., operate in a geographically small market) and maintain a steady market share, although a handful of regional banks have seen immense success and growth. Many studies related to the retail banking industry rely on market structure– and more specifically, market concentration– as a reliable indicator of how well a bank performs. This study evaluates the performance of regional banks in regards to market concentration and market share. A regression model is developed to explain the significance of market concentration in explaining high net income of a bank using the four-firm concentration ratio. The regression analysis shows that the concentration variable is not significant in predicting the net income of a bank. A case study of PNC Bank is used to illustrate a way in which a bank can gain market share by means of an effective strategy.

Name: Lemmon, Audra

Date: Spring 2015
Major(s): Economics
Thesis Committee: T. Nonnenmacher, D. Frank

Title: E-commerce Retail Market Structure and Price Dispersion

Abstract: While it may be believed that Internet retail markets are frictionless and efficient, past studies have shown that this is not the case. In this paper, I expand on previous literature to explore the effects on price dispersion, a key characteristic of the e-commerce retail market. I include a discussion of the structure, conduct, and performance of various market structures and apply these factors to the Internet retail markets for books, shoes, and groceries. I use recent data to examine the changes that have occurred in pricing strategies of firms as the world of e-commerce retail has expanded since its beginnings in the early 2000s. I include similar predictions as those presented in Latcovich and Smith’s article (2001) to conclude if price dispersion and market share concentration trends are still relevant in today’s Internet retail market. Lastly, I conclude that e-commerce retail follows a monopolistic competition structure, as firms use price and non-price strategies, such as advertising, to increase their profits and obtain larger market shares.

Name: Lindberg, Jillian

Date: Spring 2015
Major(s): Economics
Thesis Committee: T. Nonnenmacher, T. Herrera

Title: An Analysis of Gender Discrimination in Spain

Abstract: The objective of this research paper, through statistical and theoretical analysis, is to analyze how gender affects salary in Spain, determining whether or not discrimination exists in the Spanish labor market.  The data used is from the 2010 Wage Structure Survey provided by the Instituto Nacional Estadístico.  Although other studies exist that pertain to this topic, much of the previous work has focused on how factors other than gender can create discrimination in the labor market.  Following the conclusion to the economical analysis of gender discrimination in Spain, a second analysis will commence that looks at how the role of gender is affected by the traditions and economic crisis in Spain through the use of the films ¿Qué he hecho yo para merecer esto? (1984) and Carmina o revienta (2012).

Name: Marino, Romulus

Date: Spring 2015
Major(s): Economics
Thesis Committee: S. Martin, S. Bilo

Title: Sabermetrics, Salary Arbitration, and Possible Wage Discrimination in the MLB

Abstract: This research conducts an empirical analysis of possible wage discrimination in the MLB from an employer standpoint. Also, this research aims to shed light on the importance of the sabermetric statistic WAR as teams attempt to monetize player productivity. The foundation of this research is based on MLB arbitration and how players’ ethnicities may affect the ‘value’ at which certain teams may perceive them. In order to account for certain natural biases, the arbitration data is sorted into many different classifications. Player statistics from their adjacent arbitration years are used as a measure of productivity. Since the 1970’s there has been a plethora of research carried out not only in the MLB, but in other major American sports to detect wage discrimination amongst minorities. It is the goal of this research to determine whether or not MLB organizations undervalue minority players, particularly players from Hispanic origins, as well as determine whether or not teams may be utilizing sabermetric statistics when valuing players.

Name: McGeehan, Adam

Date: Spring 2015
Major(s): Economics
Thesis Committee: S. Bilo, J. Golden

Title: Does Prison Management Type Have an Effect on Recidivism?

Abstract: In the early 1970’s the United States government began the War on Drugs.  With this drug prohibition campaign, the United States prison system saw a huge increase in its prison population.  As a result of this influx of prisoners, a new type of prison was born, the private, for-profit prison.  The benefits of this new management style of prison are debatable, with the general consensus being that private prisons, while having lower operating costs, provide significantly less resources to inmates and as a result cause higher rates of recidivism (the likelihood that a prisoners will turn back to crime after release).  For my paper I will look at data from the state of Florida, examining the correlation between prison management type and effectiveness of the prison institution.  While I had hoped to have more accurate data on recidivism in Florida, a proxy has been created to fix the problem of scarcity of data on recidivism.  From my regression, it would appear that the private prisons actually are less effective at rehabilitating criminals than public facilities, though further investigation is certainly required.

Name: Meltzer, Scott

Date: Spring 2015
Major(s): Economics
Thesis Committee: R. Ormiston, D. Frank

Title:  Do Profit Sharing Plans affect Productivity?

Abstract: Existing works seem to show that profit sharing are associated with higher levels of productivity but there is an unclear causation.  This study explores profit sharing and its effects on productivity using employee survey data collected from the National Longitudinal Survey of Youth. Using this data set hours worked per day and employee tenure are used to measure worker productivity, Previous studies are examined to gain a better understanding of profit-sharing programs and, to establish how previous models of the question have been built.  Agency theory is discussed to explain the reasoning behind the hypothesis that this paper is structured on. Using two multiple regression models, productivity is found to be positively effected in the presence of profit sharing.

Name: Miley, Patrick

Date: Spring 2015
Major(s): Economics
Thesis Committee: S. Bilo, D. Frank

Title: Ascending From the Deep: The Emergence of Bitcoin from Obscurity

Abstract: New advancements in technology have allowed for the growth of a new alternative investment and currency. The emergence of this new cryptocurrency began in 2009 and continues its growth today. Research on the cryptocurrency thus far has been aimed at understanding the mechanism by which it works and determining the extent of its future success. Little research has been done on how a zero-value currency gained enough value to increase its use and user base. This paper aims to fill such a void and determine the process by which this cryptocurrency emerged, from its creation to where it stands today. Despite its technical and intangible nature, Bitcoins emergence follows a similar process in which all currency is thought to have originated; gaining non-monetary value from its use by small online anti-government communities and then increasing its user base and demand by meeting specific requirements crucial to a successful currency.

Name: Morris, Clayton

Date: Spring 2015
Major(s): Economics
Thesis Committee: T. Nonnenmacher, Z. Klingensmith

Title: Determents of First Time Total Traffic of Monroeville Apartment Communities

Abstract: Having an in-depth understanding of the residential rental market is crucial to managing multiple residential communities in a challenging, detail oriented, and specialized industry. Some of the management tasks can be streamlined with the use of forecasting programs. The forecasting programs are glorified forecasting regressions. The Monroeville Apartments were chosen to assist with the understanding and forecasting of the Pittsburgh rental market. From the Monroeville Apartments, four communities with comparable amenities and locations were selected to reduce the number of variables in the communities and simplify the regression. The primary variable of interest in the regression is the first time total traffic, this variable is the measure of the interest in the communities and is a good estimate of the demand for the community. First time total traffic is a useful tool for property managers to understand and to be able to forecast.

The regression and the forecasting equation is built on variables that range from community specific variables, to weather, and regional economic data. Once regressed these variables form a picture of the local apartment market. The picture of the local market can then be reformatted into a forecasting model that can account for minor rent changes, as well as significant cyclical changes. The forecasting equation will become more accurate as more information from future regressions is added into the equation. This equation will highlight the factors of first time total traffic and contribute to the successful management of Monroeville Apartments.

Name: Niklaus, Andrew

Date: Spring 2015
Major(s): Economics
Thesis Committee: T. Nonnenmacher, J. Golden

Title: The Efficient Market Hypothesis and Equity Returns: A Contrast Between Active and Passive Management

Abstract: A data set comprised of ten large cap growth and ten large cap value mutual funds is used to evaluate the performance of actively managed funds when compared to a passively managed index fund, the Vanguard 500. Three, two proportional Z tests fail to provide statistical evidence to support the claim that actively managed large cap mutual funds outperform the Vanguard 500. The data set finds that the Vanguard 500 outperforms the average of all 20 actively managed funds by 1.4% on average in the past 15 years and outperforms the actively managed fund by 5.81% with respect to an initial $10,000 investment over the same time period.  The evidence supports the claim that actively managed large cap mutual funds do not outperform passively managed index funds during the time series. Four Breusch Godfrey tests examine the existence of autocorrelation in the data set and confirm the notion that the market is operating efficiently, such that pricing patterns do not exist in large cap mutual funds or the Vanguard 500 during the time series.

Name: Novak, Rebecca

Date: Spring 2015
Major(s): Economics
Thesis Committee: S. Onyeiwu, J. Sickafuse

Title: Is it Profitable to be Ethical?

Abstract: The relationship between business ethics and financial performance has been studied extensively. However, there has been little consensus amongst previous researchers. This paper examines the relationship between business ethics and financial performance to explore whether or not business ethics are a profitable endeavor for a firm. The paper explores whether business ethics will promote stronger financial performance. Using two models, one representing the relationship between certain variables and net income, and the other representing the relationship between those variables and ethical ranking, this study analyzes how business ethics affect financial performance and vice versa. The analysis suggests that the presence of an ethics program and the ethical ranking of a firm do not have a significant relationship with the net income of a firm. Likewise, net income and the presence of an ethics program do not have a significant effect on the ethical ranking of a firm. A more conclusive result would require further research on the relationship between business ethics and financial performance.

Name: Parke, Jamie

Date: Spring 2015
Major(s): Economics
Thesis Committee: S. Martin, D. Frank

Title: Non-Governmental Organizations’ and Social Media Or:( How To Make The Most Of What You Post)

Abstract: Non-Governmental Organizations (NGOs) have one of the hardest experiences with accruing capital and raising awareness of their projects. An exploration of research can determine how detrimental altruism is in today’s society in that it keeps afloat these types of businesses. Donations to these organizations serve as capital to the NGO who then use it to provide for their cause and spark research or marketing techniques to carry on that altruism to a wider audience, creating again another cycle just as prior. By focusing in on how these organizations are active in a social media setting, we can see how they accrue donations on a platform that is growing every day.

The technological advances in the last twenty years has opened up a large amount of unused resources an NGO could use to further their production of altruism. With this comes the conflict of what an NGO should be putting into the social media realm to spark donations and add credibility to their name. Specifically focusing in on human rights-and environmental protection NGOs brings in a relevant aspect to this research as the human consciousness paradigm shifts to more altruistic behavior and the public gains a sense of enlightenment. These subjects were previously thought of in a sense that although troubling aspects arose from these fields, humans did not have the power to change them. The ability to create a unified effort through social media brings promise of a brighter future for human-rights and the protection of the Earth. By exploring this, a new understanding will surface of what NGOs can publish in social media to maximize utility.

Name: Persaud, Abishai

Date: Spring 2015
Major(s): Economics
Thesis Committee: S. Bilo, A. Baskan

Title: South Korea’s Departure from Corporate Welfare Interventionism and the Recovery of Chaebols

Abstract: What are the effects of corporate welfare interventionism on the efficiency and stability of the economic and financial system? How do these policies affect the success and ability of firms to compete in international markets? The Asian Financial Crisis and regulatory treatment of chaebol firms during the industrial development of South Korea serves as ideal case study to answer these questions. The thesis of the study is that the departure from corporate welfare interventionism, has increased the efficiency and stability of the South Korean economic and financial system, by deterring moral hazard and encouraging efficient financial capital management, which also enabled the recovery and ability of chaebol firms to compete internationally. This study derives a theoretical model that applies the soft budget constraint, transitional gains trap, and “portfolio of core competencies” theories. Empirically, we analyze the effects of structural reforms and evaluate the financial and market statistics of the firm Samsung to show that its competitive performance has been favorable following the reforms. We are able to conclude from these results that corporate welfare interventionism creates an inefficient economic system, the IMF is an effective external disruptor able to break the transitional gains trap, and that regulation the promotes the adaption of the hard budget constraint pushes firms to develop core competencies that strengthen their competitive capabilities in the international market.

Name: Valentic, Josh

Date: Spring 2015
Major(s): Economics
Thesis Committee: R. Ormiston, J. Sickafuse

Title: Identifying Inefficiencies in the Fantasy Football Labor Market

Abstract: The objective of this research paper, through both statistical and theoretical analysis, is to identify inefficiencies within the fantasy football labor market, specifically in fantasy football drafts.  This paper will focus on the strategy behind when and where specific players were drafted in standard, ten team, fantasy football drafts.  The data and analysis will begin with the 2000 National Football League (NFL) season and conclude with the 2014 season, focusing on the top 50 picks in each of those years.  Lastly, there has not been much research done in the fantasy sports realm, but there have been many studies on the National Football League, specifically NFL draft.

Name: Vallano, Gregory

Date: Spring 2015
Major(s): Economics
Thesis Committee: S. Onyeiwu, A. Baskan

Title: An Exploration of the Competitive Advantage of Integrated Delivery Systems in the Healthcare Industry

Abstract: The healthcare industry is one of uncertainty, asymmetric information, and rising costs. The integrated delivery system (IDS) has developed as a way to ease the escalating healthcare expenditures and to increase the quality of patient care. The University of Pittsburgh Medical Center (UPMC) has structured itself as an integrated healthcare network called an integrated delivery and finance system (IDFS), and the system has had a significant community and economic impact while maintaining its financial performance. The strategic framework of the company combines an unwavering nonprofit mission and entrepreneurial business practices. UPMC has maintained a financially competitive position in the market, while providing higher quality patient-centered care compared to its competitors. The model that UPMC follows has the potential to rein in rising healthcare costs and to increase the quality of healthcare.

Name: Wach, Sefano

Date: Spring 2015
Major(s): Economics
Thesis Committee: T. Nonnenmacher, A. Baskan

Title: The Effects of the UEFA Champions League Upon the Competitive Balance of the Barclay’s Premier League

Abstract: This study will examine the effects of the UEFA Champions League upon the competitive balance of the Barclay’s Premier League. Specifically, it will test the ramifications of the 1999/2000 revenue changes associated with participation in the UEFA Champions League upon the Barclay’s Premier League. This analysis will mainly rely upon the theory of the uncertainty of outcome, which roughly summarized is, if the outcome of a sporting event is known prior to competition, then fan demand for said event will decline. The uncertainty of outcomes notion can thus be extended towards an entire sports league. If the outcomes of the league’s games are known prior to competition then theoretically league demand should fall.

This paper will use five competitive balance measurements and three multiple regressions to display the competitive balance ramifications from the 1999/2000 revenue changes associated with participation in the UEFA Champions League. A case study will be performed on Chelsea from the Barclay’s Premier League to show how the Champions League revenues have positively impacted said their competitive success.
The entire study will show that the UEFA Champions League revenue changes of the 1999/2000 season have indeed negatively impacted the competitive balance of the Barclay’s Premier League. This paper will end with possible policy changes that could be instituted to try and retroact these competitive imbalance ramifications.