Name: Boben, Brittany
Date: Spring 2016
Major(s): Economics
Thesis Committee: S. Martin, S. Onyeiwu
Title: Stock Price Movements: A Case Study of T-Mobile
Abstract: The wireless telecommunications market is extremely competitive in the United States, with the largest providers being Verizon, AT&T, Sprint, and T-Mobile. Despite T-Mobile’s long-standing image as the poorer quality, less expensive carrier, T-Mobile has recently seen a dramatic turnaround. Over the past four years, T-Mobile’s common stock has quadrupled in value from $9.39 on January 3, 2012 to $38.95 on January 4, 2016. One might assume that T-Mobile simply reduced the number of shares in order to boost their share price; however, T-Mobile’s number of shares outstanding has increased from 535.00 million to 816.04 million from January 2012 to January 2016. This value creation of over $26.7 billion raises the question, what factors led to the increase in T-Mobile’s stock price from January 2012 to January 2016? This study is centered on the theory of shareholder wealth maximization and is undertaken as a regression analysis using panel data on the four wireless carriers. The results suggest that the following variables contributed to this stock price movement; market share, debt to equity ratio, and previous operating revenue. Though the results helped to identify variables associated with an increase in stock price, further research must be conducted in order to investigate some unexpected results.
Name: Bolen, Matthew
Date: Spring 2016
Major(s): Economics
Thesis Committee: T. Nonnenmacher, H. Park
Title: A Comparison of Public and Private Electric Distribution Utilities in Pennsylvania
Abstract: Electric distribution utilities can be organized in multiple ways, the two most common are public local government ownership or private investor ownership. This provides a topic of debate in economics: which ownership structure is better? A public owner has an advantage at determining how to benefit the citizens over a third party regulator. A private utility is able to take advantage of economies of scale by growing to a large size. Public firms have denser populations that they service, making the utility need to lay fewer power lines. All of these contribute to which ownership structure is better. Pennsylvania has both of these ownership structures in existence, providing a state to analyze electric distribution utilities in.
Name: Brosius, Cara
Date: Spring 2016
Major(s): Economics
Thesis Committee: J. Streeter, H. Nguyen
Title: Rising Health Care Expenditures in the United States: An Analysis of Contributing Factors and Discussion of the Affordable Care Act
Abstract: The health care system in the United States is the most expensive in the world. With passage of the Affordable Care Act, some analysts project that costs will fall over time. However, there may be many variables that contribute to rising costs that the Affordable Care Act can’t influence, such as cyclical variations in the business cycle and an aging population. This paper seeks to examine available data on health care expenditures using a regression model to determine what factors have affected health care costs historically. Theoretical analysis of the Affordable Care Act legislation examines the potential effects of the policy, looking at what factors the Affordable Care Act can attempt to change and what factors it doesn’t address. The preliminary regression results show that an aging population, increasing numbers of pharmaceutical patents being issued, and a higher child mortality rate are good predictors of rising health care expenditures per capita. Analysis of the Affordable Care Act shows that some policies may be working to control costs and to decrease the number of uninsured Americans, while many flaws or oversights can be hindering the legislation’s effectiveness.
Name: Comiske, David
Date: Spring 2016
Major(s): Economics
Thesis Committee: T. Nonnenmacher, H. Nguyen
Title: Safety in Shipyards: An Exploration of Management Techniques
Abstract: Industrial workplaces are inherently dangerous: shipyards are particularly dangerous given the scale of the projects. Workers are exposed to a range of hazards including falls, toxic fumes, electrocution, burns, and amputation. For the most unfortunate workers, these factors result in death. Over the last 70 years, shipyard hazards and accident rates have remained relatively unchanged. A misalignment of marginal cost and benefits perpetuate the trend. Exploring safety culture, Organizational Behavioral management, and choice architecture, a new perspective on safety programs and performance is possible. Each management strategy has a unique advantage. Safety culture proves to be the most powerful contender influencing safety performance throughout the organization. OBM and Nudges change safety performance at the worker-supervisor level. When synthesized together, these three strategies can revolutionize shipyard safety.
Name: Cuellar, Daniela
Date: Spring 2016
Major(s): Economics
Thesis Committee: A. Baskan, S. Mattiace
Title: Why have Brazil and the United States not pursued a Free Trade Agreement? A Brazilian Perspective
Abstract: Free trade is a topic that is more relevant now than ever. With globalization, the current trend among nations is to engage in free trade discussions and agreements. Brazil and the United States are large trading partners and both countries are major economic and political world leaders. Brazil is the most important economy in Latin America, and the United States is the most important trading partner to the region. Then, why does Brazil not have a free trade agreement (FTA) with the United States? The relationship between Brazil and the United States, two major global powers and Western Hemispheric leaders has consisted of a long history of cooperation and competition. Following a Heckscher–Ohlin trade model, from an economic standpoint, both countries appear to have complementary economies. Also, since they are already major trade partners, removing trade barriers and promoting the free movement of goods would seem beneficial to both. However, the governments of Brazil and the United States in numerous occasions have never been able to agree on trade negations and have not engaged in FTA discussions. The political disagreements between them, as well as both countries’ sense of manifest destiny in the Latin American region, have prevented them from pursuing closer economic ties.
Name: Davis, Benjamin
Date: Spring 2016
Major(s): Economics
Thesis Committee: T. Nonnenmacher, S. Onyeiwu
Title: Disrupting the Automotive Industry: A Case Study of Tesla Motors
Abstract: This paper aims to explain the actions Tesla is pursuing to disrupt the automotive market and how incumbent automotive manufacturers are responding. By standard economic models, profit-seeking firms will pursue technologies and innovation that is low risk and in line with consumer demands, sustaining innovation. Yet in practice, disruptive innovation, innovation that transforms existing technology and markets, is a recurring phenomenon. In the automobile industry, the effect of disruptive technology can be seen in the aftermath of the electric car. Tesla, an early entrant to the electric vehicle market, counters theoretical predictions by introducing products in a top-down fashion, yet succeeds in forcing incumbent firms to explore new technologies. While Tesla-created EV and AT technologies are only just entering mainstream markets, the pace of innovation hints that they will be a disruptor in the years to come.
Name: Deichler, Nicholas
Date: Spring 2016
Major(s): Economics
Thesis Committee: S. Martin, J. Sickafuse
Title: How Does the Competitiveness of Professional Sports Affect the Economy?
Abstract: Professional sports are considered to be one of the most influential forms of entertainment the world has ever seen. Sports team’s competitiveness tends to shape the way people decide to spend their money on Sundays, whether it is on jerseys, local bars, tickets, etc. This question will investigate with an empirical analysis, the way in which cities are affected by the competitiveness of their local sports teams as measured by their success in the current season. The research may have many possible outcomes, but overall a city’s economy can be affected both positively and negatively at any given time. How does the competitiveness of professional sports teams affect the economy?
Name: Druchniak, Maria
Date: Spring 2016
Major(s): Economics
Thesis Committee: R. Ormiston, A. Baskan
Title: Regional Variations in the Gender Pay Gap Among United States Medical Professionals
Abstract: This study focuses on analyzing the effect of gender on salaries for medical professionals within various regions of the United States. Previous studies have found a significant pay gap between men and women within the medical field. This gap has been declining in recent years, but it still exists today. Possible reasons for this difference in pay were believed to be the result of differences in hours worked, specialty, preferences, negotiations, and discrimination. This study conducted a regression analysis on data from the Census Public Use Microdata Sample (PUMS) to assess regional variations in the gender pay gap among various medical professions in 2014. The results of these regressions concluded with 99% confidence that women within various medical professions earned 17.1% less than men in 2014, ceteris paribus. This pay gap for all medical professionals appears to be the smallest in the Northeast and West and the largest in the Southeast region of the United States. The dental hygienist occupation had the highest gender pay gap with females earning 72.9% less than their male counterparts in the Northeast, whereas gender did not impact the earnings of other healthcare occupations, registered nurses, pharmacists, physician assistants, physical therapists, and occupational therapists. Regional variations fluctuated within each occupation type.
Name: Egan, Mark
Date: Spring 2016
Major(s): Economics
Thesis Committee: S. Martin, J. Golden
Title: Can College Correctional Education Improve Prisoners’ Wellbeing?
Abstract: Recidivism or a released prisoner returning to prison is a major problem in the United States. When an ex-offender is incarcerated, he or she cannot participate in the labor market. However, if he or she has a Bachelor’s degree, that person is more likely to have adequate working skills and not go back to prison. According to the Diamond-Mortensen-Pissarides Model, when more people have advanced college degrees, the economy is more productive because there are more potential employment matches. One way to give prisoners this opportunity is to provide undergraduate correctional education programs.
This study examines the undergraduate correctional education programs in the state of Indiana. The three-year recidivism rates of 41 Indiana counties between 2012 and 2014 were collected. Regression analyses of these recidivism rates showed that Indiana counties tend to reduce recidivism by having more undergraduate correctional education programs. However, African American prisoners appear to be more significantly affected by demographic and economic factors than Caucasian prisoners. Therefore, these programs have a very insignificant effect on African American recidivism. Despite this problem, this study shows that undergraduate correctional education programs tend to lower recidivism rates and presumably increase human capital and participation in the labor market.
Name: Fillippa, Chelsea
Date: Spring 2016
Major(s): Economics
Thesis Committee: R. Ormiston, H. Nguyen
Title: How Super Bowl Advertising Affects Company Stock Prices
Abstract: The objective of this research paper, through both statistical and theoretical analysis, is to analyze how Super Bowl advertising affects company stock prices. The data and analysis will focus on the 2013 through 2015 Super Bowls and the stock prices for the day after, six months after, and twelve months after the Super Bowl date. The data will also take into account the revenue, profit, and return on assets for each company. Although there have been previous studies on Super Bowl productivity, this work will focus on the fluctuation of stock prices to determine the impact that advertising during the Super Bowl creates.
Name: Harvey, Zach
Date: Spring 2016
Major(s): Economics
Thesis Committee: S. Martin, J. Sickafuse
Title: Effect of the Highest Paid Player’s Age on Team Success in the NFL
Abstract: The National Football League’s salary cap was 143 million dollars in 2015. Thus, the total amount spent on the players’ salaries cannot exceed 143 million dollars. But what does it take to succeed in the NFL? Some might say spending money on the right players. Some might say age due to experience, while others say youth. This project aims to take a look to see if one of these theories is correct or if none of them are, or if there is a combination of all three. This project will research the highest paid players per each team and try to find a correlation between the highest paid players and the success of the teams that they were on relative to how old the team is. Success will be determined by if the team made the playoffs.
Name: Herlitzka, Alison
Date: Spring 2016
Major(s): Economics
Thesis Committee: J. Streeter, S. Onyeiwu
Title: Why Is the Price of Higher Education Increasing?
Abstract: The rising cost of higher education is a topic of large concern today. College is becoming increasingly less affordable, and because financial aid has not been keeping pace with tuition hikes, the average price families pay for college is rising out of control. What factors have been driving this large rise in tuition prices? This paper aims to look at factors that have driven up the price of higher education in the past and the forces that continue to raise prices today. It will explore independent variables from the years 2010 and 2013 and will analyze the tuition price increases through a supply and demand framework. It will study how a supply and demand imbalance can lead to increased tuition. Overall, the analysis will show that the independent variable forces do, in fact, have an effect on the rise in prices of college tuition. After looking at multiple regressions, it is apparent that financial aid has a positive association with tuition. In order to curb the rising prices, this paper will offer a few policy implications and recommendations. Namely, empowering consumers with better information about college costs and student outcomes, and considering a high benefit, high tax system of free higher education in the United States. With these proposals, policymakers may help lighten the burden for future consumers looking to receive a college degree.
Name: Hodgens, Keith
Date: Spring 2016
Major(s): Economics
Thesis Committee: R. Ormiston, J. Sickafuse
Title: The Impact of Right-to-Carry Laws on Violent Crime Rates
Abstract: Gun control in the United States remains a very controversial topic. As part of that debate, the purpose of this study is to examine the relationship between right-to-carry laws and violent crime rates. After using time-series data at the state level for the years between 1985 and 2012, it was concluded that right-to-carry laws have a positive and statistically significant correlation with violent crime rates. Upon enacting right-to-carry laws, states can expect about forty more violent crimes to be committed per 100,000 people. However, the models of this study, which used variables to account for economic, political, and other possible deterrent effects, tended to be rather sensitive and represented a small percentage of the relationship between right-to-carry laws and violent crime. Until more data can be obtained to fix these problems, the evidence of this study suggests that right-to-carry laws do indeed increase rates of violent crime.
Name: Holland, Brian
Date: Spring 2016
Major(s): Economics
Thesis Committee: J. Streeter, J. Sickafuse
Title: The Efficiency of Sports Gambling Markets: A Case Study of College Football
Abstract: The objective of this study, through both theoretical and statistical analysis, is to examine the efficiency of the college football point-spread betting market. Using a dataset that includes college football games from 1992-2015, different characteristics of games will be analyzed through a probit model in the attempt to find an inefficiency within the market that can lead to a profitable betting strategy. Specifically, it will be explored whether bettors seem to inherently prefer teams from power conferences due to the increased exposure relative to non-power conference teams. And if this preference exists, could informed bettors use this knowledge to exploit the inefficiency? The variables in the study will reflect different kinds of game characteristics (type of teams, location, spread). The probit model will demonstrate what variables have a positive or negative impact on the probability of winning a given bet and will predict the outcomes of games to test for its accuracy. The test of accuracy will be done in an in-sample and out-of-sample manner, as out-of-sample testing provides more insight to the model’s true accuracy in predicting outcomes. While the model shows that as a whole the market is efficient, the results also showed that games involving power conference underdogs and non-power conference favorites are easier to predict than other types of games. This could be because bookmakers are not as skilled at predicting the outcomes of these games because of their relative infrequency.
Name: Hudac, Zachary
Date: Spring 2016
Major(s): Economics
Thesis Committee: S. Martin, J. Golden
Title: The Effects of Professional Sports on Alcohol Sales and Crime Rates
Abstract: Sports have a large influence the daily activities of society and are continuing to grow with new technological advances. The goal of this paper was to discover if the presence of sports has an effect on the two highly correlated variables, alcohol and crime. This question was investigated empirically using three separate regressions with the presence and success rate of sporting events as the independent variables. Presence was measured by having an NBA, NFL, MLB, or NHL team within the city, while success was measured by having an overall winning record, reaching playoffs, and reaching a finals appearance within a range of years. Alcohol, violent crime, and property crime were used as dependent variables in their own regressions. The results determine that the presence and success of sports within a city has significant impacts on the factors of alcohol and crime rates.
Name: Koryak, Christopher
Date: Spring 2016
Major(s): Economics
Thesis Committee: R. Ormiston, T. Nonnenmacher
Title: The Attendance Effect of Rookie Position Players in Major League Baseball
Abstract: The object of this study, through the use of theoretical and empirical analysis, is to examine the effect of rookie position player debuts on Major League Baseball attendance. While there has been a significant amount of previous literature on the determinants of MLB attendance, no studies have examined the effect of rookie hitters. This study extends the work of Professor Ormiston, who has written articles on pitcher star power and attendance, homegrown pitchers and attendance, as well as rookie pitchers and attendance. Using Professor Ormiston’s models as a base, this study uses data from the 1990-2013 seasons to account for in-season fluctuations in attendance in addition to the impact of rookie position player debuts. The results indicate that top 5 hitting prospect debuts positively impact attendance and that fans on winning teams are more responsive to the debuts of these prospects. Additionally, the results show that former number one draft picks that debut on the road have a statistically significant impact on attendance. The results suggest that fans are only concerned with very elite prospects, which is due to the hype and hope that surrounds them.
Name: Lasher, James
Date: Spring 2016
Major(s): Economics
Thesis Committee: T. Nonnenmacher, P. Ensberg
Title: Managerial Constraint and Gross Profit Volatility in Automobile Manufacturing: An Analysis of the United States, Germany, and Japan
Abstract: United States automotive manufacturers operate in vastly different ways compared to those in Germany and Japan. One explanation for the differences is that executives in the United States face far fewer constraints that influence their behavior based on national values and national systems (Crossland and Hambrick, 2007). This framework is used in this analysis to categorize these differences and to explain the relationship between the degree of managerial constraint and firm performance, measured by gross profit volatility. My hypothesis is that United States automotive firms experience a greater degree of gross profit volatility due to a lesser degree of constraint placed upon managers in the United States. In order to test this hypothesis, gross profit of nine firms (three from each country) is examined over ten years. The results of this analysis make it possible to conclude that U.S. automotive firms are much more volatile than their counterparts. A relationship exists between the level of managerial constraint and gross profit volatility. Whether a lesser degree of managerial constraint directly causes greater gross profit volatility cannot be directly concluded, however. A German case study serves to supplement these findings and investigate the respective roles of managers of General Motors in the Global Recession of 2008-2009 and Volkswagen in the recent emissions scandal. While it cannot be concluded that a system with greater managerial constraint is better or worse, the Japanese automotive firms remain the most consistent in terms of behavior and performance in comparison to the competition in Germany and the United States.
Name: Li, Tianzhu
Date: Spring 2016
Major(s): Economics
Thesis Committee: R. Ormiston, J. Golden
Title: How do different college majors affect earnings after graduation in U.S.?
Abstract: Choosing a major is a big decision to make when people attend college. This paper aims to discover if there is a correlation between different college majors and people’s future earnings. A regression comprised from 2013 Scientists and Engineers Statistical Data System (SESTAT) data will be created to determine the effects of salary with relation to different majors. Demographics, job and other factors for salary are also examined. The relationship between college majors and salary is found to be significant. It is important to know that choosing a high earning major could lead to over 60% more salaries than low earning majors.
Name: Macomber, Conor
Date: Spring 2016
Major(s): Economics
Thesis Committee: J. Streeter, J. Sickafuse
Title: AN EXAMINATION OF INEFFICIENCY IN NCAA POLICY: STUDENT-ATHLETE COMPENSATION & RENT-SEEKING
Abstract: The increased commercial appeal in college sports today challenges the NCAA to maintain its regulatory effectiveness. The NCAA advocates for the student-athletes’ advancement in both academics and athletics; however, the athletic portion has attracted national attention which has boosted revenues in the upwards of billions, specifically men’s basketball and football. In this paper, we will focus on men’s basketball in the Power Five Conferences (SEC, Pac 12, ACC, Big 12, Big 10). The NCAA has a distinct “amateur” model that places restraints on student-athletes that many deem unrealistic in today’s world. The consequences of its model have led to scrutiny of how the NCAA uses student-athletes for economic benefit, in addition to potential rent-seeking behavior. The NCAA’s model will be explained in detail and a new amateurism model will be offered in following. The discussion of an athlete’s marginal revenue as a function of the value of their scholarships and the revenue they generate is essential to our argument, along with the student-athletes hours of labor. Legalities surrounding a free market and individual rights give way to the consideration of reforming the NCAA’s current model for student-athletes; thus finding ways to compensate student-athletes for their efforts and creating a more beneficial environment for all parties.
Name: Malone, Devin
Date: Spring 2016
Major(s): Economics
Thesis Committee: R. Ormiston, W. Hernández
Title: The Economic and Cultural Impact of the Recreational Marijuana Market in Colorado, Washington, and Uruguay
Abstract: The market for legalized recreational cannabis is a growing controversial topic. Now legalized in four states in the U.S. and the country of Uruguay, the market is growing and becoming a household conversation. This thesis intends to discuss the growing topic by analyzing Colorado and Washington, as well as including a cultural analysis of Uruguay. Total sales for a 12-month period of recreational marijuana in 54 counties in Colorado and Washington were analyzed using a regression analysis. The analysis showed how the sales differed in the two states, as well as how certain variables and demographics affected overall total sales for a 12-month period. Although Uruguay legalized its market in 2013, cannabis has had a large presence in the country, which is discussed through an analysis of the novel, Parir. Overall, this thesis aims to further the conversation on this developing topic, both in the U.S. and globally in Uruguay.
Name: Manning, Thomas
Date: Spring 2016
Major(s): Economics
Thesis Committee: J. Streeter, A. Baskan
Title: Does International Trade Affect Economic Growth?
Abstract: The goal of this paper is to examine the effect of international trade on economic growth at the country level. The empirical model is estimated using a panel dataset of all countries during the period of 1960-2014. All country data is obtained from the World Bank Group. The dependent variable is GDP growth, while trade volume (exports + imports) is the main independent variable among other covariates. The regression results show that trade volume is positively associated with economic growth, and this result is statistically significant. Following the general regression model, a case study is used to closely examine how trade openness has positively impacted China’s economy in the past several decades. From the historical data, it appears that China’s GDP growth skyrocketed shortly following the government’s effort to open the economy for trade and foreign investment.
Name: Marks, Alexander
Date: Spring 2016
Major(s): Economics
Thesis Committee: J. Streeter, S. Onyeiwu
Title: Socio-Economic Determinants of FIFA Rankings
Abstract: The aim of this paper is to identify social and economic factors that determine a nation’s FIFA ranking. An OLS regression was used to predict the ranking of 195 national football teams. The results reveal football related variables are very important, the number of clubs, number of total players are statistically significant at a 99% confidence interval and positively correlated with a nation’s FIFA ranking. The percentage of a nation’s urban population is positively correlated with a nation’s FIFA ranking and significant at a 10% confidence interval. Population is statistically significant and negatively correlated with a nation’s FIFA ranking. Results indicate that many of the determinants that factor into a nation’s footballing success cannot be directly manipulated. However, policy makers could invest in football related infrastructure such as Belgium did in the 1980’s.
Name: McGowan, Anne
Date: Spring 2016
Major(s): Economics
Thesis Committee: S. Martin, H. Nguyen
Title: Does Admission Selectivity Impact U.S. Colleges’ Federal Student Loan Default Rates?
Abstract: Although United States federal student loan default rates have declined recently, they are still relatively high. Furthermore, many postsecondary institutions—including Allegheny College—are altering their admissions selectivity, predominantly in the form of making submission of test scores optional. With the current state of higher education in mind, this paper investigates whether admission selectivity is correlated to institutions’ federal student loan default rates. A review of literature on the subject exhibits that existing studies on student loans have only analyzed default rates at the student-borrower level. This investigation expands upon the existing literature by examining default rates at the institution-level. The theories of ability to pay, human capital, supply and demand of loans, and behavior of the firm establish the hypothesis that higher admission selectivity translates to a lower default rate. A data set based on three-year 2012 cohort default rates and various 2012 institution-level characteristics is used in an OLS regression to test the proposed hypothesis. The results of the empirical analysis suggest that admission selectivity has a statistically significant inverse relationship with an institution’s student loan default rate, but the magnitude of its impact is not great enough to be economically significant.
Name: McMillan, Matthew
Date: Spring 2016
Major(s): Economics
Thesis Committee: R. Ormiston, A. Baskan
Title: The Impact of the Federal Assault Weapons Ban on Minority and Low-Income Gun Ownership
Abstract: The Federal Assault Weapons Ban implemented between 1994 and 2004 was one of the most significant gun control laws enacted in recent years. The law sought to reduce the rate of crime and homicides by prohibiting a sub-class of military style semiautomatic firearms. Most research and debate surrounding the law has focused on its effectiveness on reducing crime and reducing the availability of assault weapons but largely ignores other consequences. The goal of this paper is to evaluate how the law has affected firearm ownership among minority and low-income individuals. This paper reviews the demographics of firearm ownership, the assault weapon ban itself, and pertinent economic theories. This was done in order to provide necessary information to the reader. Finally, the paper concludes that the assault weapons ban may have widened the gap in firearm ownership between minority and white individuals compared to before the ban.
Name: Meiran, Michael
Date: Spring 2016
Major(s): Economics
Thesis Committee: S. Martin, H. Nguyen
Title: The Economic Sustainability of United States Fisheries
Abstract: The goal of this study will be to look at the economics of efficient sustainable fisheries management to determine the best practice of increasing sustainability in both the recreational and commercial fishing sectors. Over the past 30 years, global fish populations and ecosystems have been on a decline. This has been attributed to pollution, habitat destruction and unsustainable fishing methods. These resources do not only have ecological implications for many different species of wildlife but economic implications for many different governments, societies and private institutions. By looking at ecosystem approaches and incentive based approaches, the goal is to conclude a strategy to reverse the effects of unsustainable fishing practices and to provide policy implications to introduce a change into way the fishing industry and fishing practices operate as a whole in the United States.
Name: Moller, Sarah
Date: Spring 2016
Major(s): Economics
Thesis Committee: J. Streeter, H. Park
Title: What Affects Declining Voter Turnout in the United States and Will Policies Help to Increase Turnout?
Abstract: Low voter turnout is a problem that has been affecting America for more than a century. Without a large percentage of the population participating in the election process, there is not a proportional representative democracy because many voices are not being heard. This study looks at what variables play the most significant role in the declining voter turnout using presidential and general election data from the United States by state during the period of 1980 to 2014. By comparing two regressions, one consisting of independent variables that could possibly affect voter turnout that have been left out of the second regression and the other that uses independent variables that show an overall decrease over time just as voter turnout has shown a decrease over time, insight is given as to what variables should be used for the third regression. A third regression uses independent variables that are able to change due to policies and are analyzed and interpreted to show which policies, if any, are able to make a significant difference to increase voter turnout. Several findings emerge from the empirical analysis. First, that the first regression explains more of the variation in voter turnout than the second regression. Second, that the third regression also explains much of the variation in turnout and almost all variables are statistically significant. Last, that the implementation of policies concerning incarceration rates, citizenship eligibility, unemployment rate, public education funding, and voter ID laws are able to make a difference in how many people vote and should undergo reform with the goal of increasing voter turnout in mind.
Name: Morton, Lucas
Date: Spring 2016
Major(s): Economics
Thesis Committee: J. Streeter, J. Sickafuse
Title: Factors of NHL Attendance: Relocation and Expansion
Abstract: The goal of this paper is to examine the determinant factors of the National Hockey League’s attendance and find potential landing spots for teams running deficits. Important factors considered include team’s performance, location, age of arena, and hosting city’s economic and demographic characteristics. After determining which characteristics can lead to successful attendance rates, then we can possibly determine these potential landing spots for future and current NHL teams. With 8 teams in the NHL currently running deficits and with attendance being one of the main factors, relocation may help the prosperity of these teams as well as the NHL. This paper provides empirical evidence supporting certain changes that have the potential of resolving NHL teams’ financial challenges.
Name: Nero, James
Date: Spring 2016
Major(s): Economics
Thesis Committee: R. Ormiston, S. Farrelly-Jackson
Title: The Economic Cost and Ethics of Tommy John Surgery in Major League Baseball
Abstract: While there is significant research on the return to success rates for Major League Baseball Pitchers recovering Tommy John Surgery, there has been relatively little research into the economic costs associated with the injury. This study attempts to uncover that cost in terms of the monetary value that players lose throughout their career if they have previously had Tommy John surgery. By analyzing free-agent signings and measures of players’ performances, this study demonstrates that a player who has had Tommy John surgery may ultimately receive significantly less compensation in their career. These results as well as conventional thinking suggest that MLB teams are risk-averse and will pay a risk-premium for healthier players. With this prior information in mind, this study will also provide a moral examination of how MLB contracts are structured, as well as how MLB players and pitchers are treated by their respective teams.
Name: Pickett, Robert
Date: Spring 2016
Major(s): Economics
Thesis Committee: T. Nonnenmacher, J. Golden
Title: What is the Economic Value of Tiger Woods?
Abstract: After Tiger Woods burst onto the PGA Tour in late-1996, there was a boom across the whole golf industry. There was an increase in television viewers and rating, and increase in golf equipment sales, and an increase in purses for PGA Tour events. Between his sex scandal in November of 2009 and his recent decline in the Official World Golf Rankings, there has been the start of a bust in the golf industry. This paper examines what is the economic value of Tiger Woods to the golf industry. I used television ratings of final-round television broadcasts of PGA Tour events between 1997-present, which allowed me to determine if there was a statistically significant correlation between Tiger Woods playing in an event and an increase in television ratings. The results indicated that Tiger Woods does have a significant effect on the golf industry, and while his value is difficult to determine, is around $17 billion per year in revenue.
Name: Ramos, Eduardo
Date: Spring 2016
Major(s): Economics
Thesis Committee: T. Nonnenmacher, B. Riess
Title: First-Generation College Students And the correlation of the Human Capital Theory
Abstract: This project explains and connects the human capital theory to first generation college students. It starts with an explanation of first-generation college students and the individuals who fall in this group. Then in the following chapter there is an explication of what human capital is and the categories necessary to increase human capital. Furthermore, the data used in this projects comes from the National Center for Education Statistics to see whether or not human capital correlates to the success of first generation college students. This is done by using the variables necessary to run the regression and analyzing the results. Afterwards, the results will be analyzed with a story, an autobiography, and a movie written in Spanish to see if there is a connection between the theory and the empirical analysis. The study’s results show that human capital is essential to the success of first-generation students and without the necessary human capital these students have a disadvantage when it comes to enrolling and receiving a bachelor’s degree compared to non-first generation college students.
Name: Ramsdell, Steven
Date: Spring 2016
Major(s): Economics
Thesis Committee: S. Martin, H. Park
Title: Nationality Discrimination in the Labor Market of Major League Soccer: A Market Test
Abstract: The issue of discrimination is still widespread in everyday life, including professional sports. Such unequal labor market treatment can take various forms, including wage differentials or differing requirements for same position and skill. There are numerous empirical studies that examine these discrimination issues in North American professional sports teams such as in MLB, NBA and NFL. Furthermore, the problem of discrimination is not just an issue in the top tiered North American sports, but the less popular as well, such as soccer. Since foreign players have a greater perceived marginal revenue product than national players, does the MLS display discrimination based upon the players’ nationality? This paper will empirically test for the existence of nationality discrimination in Major League Soccer through the use of a market model.
Name: Russell, Hannah
Date: Spring 2016
Major(s): Economics
Thesis Committee: J. Streeter, S. Onyeiwu
Title: The Latin American Oil Industry: An Analysis of Economic and Social Growth
Abstract: Despite recent movements toward renewable energy, oil remains an essential source of energy for consumers and a significant aspect of many oil-producing countries, including some in Latin America. There has been much debate over the benefits and consequences of the oil industry through economic analysis of top global producers; however, there is limited research on Latin America and the diversity of oil-dependence. The purpose of this paper is to examine the impact of oil on economic growth and social development in oil producing countries in Latin America. Three regression models are used to study the economic and social growth using GDP per capita, unemployment rate, and the GINI index, to measure equality, as the dependent variables. The results suggest that countries need to caution too high of oil production and should diversify their investments to avoid a concentration in only one or few industries. Additionally, countries should avoid too much freedom for investors but promote trade within the global market. These suggestions have validity through the recent oil price crisis that is plaguing oil-dependent countries that are not able to maintain economic security given the significant decrease in oil revenue.
Name: Samuel, Taylor
Date: Spring 2016
Major(s): Economics
Thesis Committee: S. Martin, H. Park
Title: Can the Samaritan’s Dilemma help predict outcomes in natural disasters?
Abstract: A natural disaster is a major adverse event resulting from natural processes of the Earth; examples include floods, volcanic eruptions, earthquakes, tsunamis, and other geologic processes. A natural disaster can cause loss of life or property damage, and typically leaves some economic damage in its wake, the severity of which depends on the affected population’s resilience, or ability to recover. The purpose of this study was to analyze the different factors that affect losses incurred by the damaged region through three different case studies using the Samaritan’s Dilemma, a form of game theory. Previous research has shown that the factors affecting damaged regions are the bail-out affect, moral hazard and government aid whether international or domestic, pre-risk management, market insurance, death toll, if the country is a democracy, and whether or not the country has a rich or poor government. In each case study, each of the aspects mentioned affected the magnitude to which the damage a region was subjected to. The results indicate the dependence of aid, the crowding out effect, and pre-risk management policy and its efficiency are all issues that need debate, both on theory and practice.
Name: Schweitzer, Evan
Date: Spring 2016
Major(s): Economics
Thesis Committee: T. Nonnenmacher, H. Park
Title: Interest Rate Swaps: A Hedge or Bet? A Case of American Colleges
Abstract: During the first decade of the 2000s, the usage of financial derivatives increased by six-fold. Banks were issuing and trading massive amounts of derivatives, which were in extremely high demand by investors. As the Financial Crisis of 2008 began, firms that had invested in derivatives suffered, losing huge amounts of money on their investments. The purpose of this research is to focus on one particular type of derivative called an interest rate swap and its usage by colleges leading up to and during the Financial Crisis. Many colleges entered swap contracts intending to hedge interest rate risk that was created by some type of variable rate debt, such as a loan or bond. The main question that this paper explores is “Did colleges have swaps that were functioning as hedging instruments or speculative tools?” In order to investigate this question, the 2011 financial statements of 18 sample colleges are examined to determine each school’s financial position. The data pulled from the financial statements is used to calculate items such as debt structure, credit rating, and liquidity. The main portion of the analysis looks at the ratio of cash and equivalents to outstanding swap value, which determines if swaps were functioning as a hedging tool or speculative instrument. Based on this analysis, about half of the sample had swaps that were functioning as hedges and the other half had swaps that were functioning as speculative instruments. Although the results are inconclusive, this paper makes suggestions for entering interest rate swaps on an individual basis.
Name: Stolar, Cody
Date: Spring 2016
Major(s): Economics
Thesis Committee: S. Martin, J. Sickafuse
Title: NFL Player Trade and Acquisition Effects on Jersey Sales
Abstract: At around $9 billion, The National Football League (NFL) makes more revenue than any other professional sports league in the world. A large portion of the NFL’s merchandising revenue, which was valued at over $2.1 billion in 2010, is made up from jersey sales. These jersey sales also account for the revenues of many different sporting good and apparel stores nationwide. Economically speaking, the league plays a role in local, state, national, and world economies through their business operations. Without athletes, games cannot be played and profits cannot be made. This would undoubtedly hold true in the world of jersey sales. In order to understand this relationship between NFL athlete’s and merchandising revenues, I analyze how the trading and signing of players in the NFL and their subsequent impacts on jersey sales through various qualitative and quantitative variables attributed to the players, their teams, their fans, and the league as a whole.
Name: Talerico, Sam
Date: Spring 2016
Major(s): Economics
Thesis Committee: R. Ormiston, I. Sinha Roy
Title: How Technology Affects Work-Life Balance
Abstract: The objective of this research paper, through both statistical and theoretical analysis, is to analyze the effects of technology on work-life balance (WLB). This paper will not only focus on the economic side of WLB, but also a communications discussion on how technology is making our lives easier, but also more complex at the same time. This paper also defines third spaces and discusses the need for these in corporate environments. The data and analysis shows technologies’ effects on employees’ flexibility in hours and hours worked, as well as how tech increases stress. Ultimately the goal of this paper is to understand technologies’ impact on WLB more clearly, look at it from various angles and viewpoints, and come to conclusions about how we can balance our professional and personal lives within this technological world.
Keywords: work-life balance, technology, third space
Name: Thomas, Rachel
Date: Spring 2016
Major(s): Economics
Thesis Committee: R. Ormiston, H. Park
Title: The Effects of Increased Minimum Wage on Income Inequality
Abstract: With the current national attention surrounding the movement, “Fight for 15!” the objective of this research paper, through statistical and theoretical analysis, is to analyze the effects of increased minimum wage on income inequality. This paper looks at state minimum wage laws and uses data from the 2015 Current Population Survey as well as basic economic theory to explain the effects of an increased minimum wage on income inequality. Based on the two regressions run in this paper, the results found that increasing the minimum wage led to greater income inequality. The inequality was measured through the disparity of individual wages and state average wages which was used as the measurement to determine income inequality. The logged form of the regression yielded the most accurate results showing that a $1 increase in a state’s minimum wage led to a 6.7% increase in inequality. Based on the supply and demand of labor covered in Chapter 3, this leap in inequality can potentially be explained by an increase in unemployment due to the elasticity of labor in the supply and demand market.
Name: Wallace, Rachel
Date: Spring 2016
Major(s): Economics
Thesis Committee: R. Ormiston, S. Onyeiwu
Title: Effects of Corporate Social Responsibility on Company Performance
Abstract: The purpose of this paper is to analyze the effects that corporate social responsibility (CSR) has on company performance. This paper will provide research conducted through previous literatures as well as display a theoretical and empirical analysis. There has been previous studies and literatures on this topic but in this paper the data and analysis is collected and performed specifically on a group of companies who were selected as the 2016 World’s Most Admired Companies.
Name: Webber, Nathaniel
Date: Spring 2016
Major(s): Economics
Thesis Committee: J. Streeter, J. Golden
Title: Determinants of Military Spending
Abstract: This paper examines the contributing factors for defense spending, using data from Italy, France, the US, Israel, and Canada during the period of 1994-2014. Empirical results show that GDP and the number of armed personnel are both positively associated with the defense spending level, while the Department of Defense deficits put a downward pressure on defense spending. After the general regression analysis, a case study chapter is offered to focus on the defense spending situation and its implications for the economy in the United States.
Name: Weltner, Casey
Date: Spring 2016
Major(s): Economics
Thesis Committee: T. Nonnenmacher, W. Hernández
Title: The Effects of Poverty and Unemployment on Colombian Crime Rates Due to Illegal Job Alternatives
Abstract: The objective of this research paper, through theoretical analysis and the use of statistical data, is to analyze how poverty and unemployment affect crime rates in Colombia due to illegal job alternatives within the drug, assassination, and prostitution industries. The data from the years 2001-2005 is provided mainly by Alcaldía Municipal de Cali, Secretaria de Gobierno, Convivencia y Seguridad (2009) and Instituto Nacional de Medicina Legal y Ciencias Forenses (2011). Although other articles pertaining to this topic exist, they provide alternate theories for rising crime rates in Colombia and focus on property crime rather than violent crime. After considering the proposed economic theories and statistical analysis, a further examination on the subject will be conducted using references written in Spanish. Finally, an analysis of the television series Sin tetas no hay paraíso (2006) will take a deeper look into the lives of these underprivileged citizens and the reasons why they choose to lead a life of crime.
Name: Wolf, Everett
Date: Spring 2016
Major(s): Economics
Thesis Committee: T. Nonnenmacher, S. Onyeiwu
Title: Economic Viability of Water Desalination in the California Water Market
Abstract: The purpose of this paper is to discuss the economic viability of water desalination in the California marketplace. While the California water market continues to rely on traditional groundwater and surface water supplies to meet the needs of California’s population, these two traditional sources have been stressed by droughts for the past several decades. Policymakers have been searching for alternative water sources to deal with the ongoing periods of water shortages. The desalination of water is one such source. Historically, the economic and environmental cost of desalination has often been too high for desalination to become a feasible source of potable water. This senior project provides the reader with an overview of the desalination process, the benefits and risks, and the possible future use of desalination plants across the California coastline.