Senior Project Abstracts 2006

Name: Carll, Brandon
Date: Spring 2006
Major(s): Economics
Thesis Committee: D. Goldstein, T. Nonnenmacher
Title: Consumption of Credit and Its Role in Marxism Crisis Theory
Abstract: This paper is an investigation of the Marxian ‘crisis theory’ and the specific role that credit plays within that theory. The main focus is a contextual discussion of Marxian theory and the function of credit within that theory, compared to both contemporary neo-Marxian theory and anti-Marxian assertions about consumption of debt. The Marxian/neo-Marxian claim is that increases in debt consumption can result in an economy that is incredibly more ‘rigid’ and frail in the long-run, while anti-Marxists claim that debt only serves to smooth the economic fluctuation and can actually support the economy during times of recession. However, given our capitalist economy that has experienced incredible growth in credit consumption without experiencing a tremendous recession, it seems unlikely that contracting through debt would be the sole cause of crisis.
The empirical study is aimed at investigating the relationship between credit consumption, domestic production, income and employment in order to show whether a system with growing rates of credit usage is indeed more likely to fail. The results were not entirely in support of Marxian theory, and while some general assertions were demonstrated statistically, many finer details were not consistent with greater theory. Ultimately, there are a great deal of connections that exist between one aspect of the economy and the next and to prove that stagnation and crisis are attributed solely to credit consumption was not achieved by this study.

Name: Davitt, Alyssa
Date: Spring 2006
Major(s): Economics
Thesis Committee: T. Nonnenmacher, A. Baskan
Title: The Effects of Public and Private Waterworks on Waterborne Disease Rates
Abstract: American cities in the late nineteenth and early twentieth centuries were plagued with waterborne disease outbreaks resulting from the consumption and contact of contaminate water. Learning from the many epidemics, it became clear that in order to stop the spread of waterborne disease, proper water filtration and distribution needed to be established.
The purpose of this project is to investigate the relationship between publicly owned and privately owned waterworks and the spread of waterborne disease. The goal was to prove that publicly owned waterworks were more effective in stopping the spread of waterborne disease. This is depicted through the examination of typhoid fever death rates in two key journal articles.
A historical examination of waterborne diseases as well as water filtration systems set the background. Through the theories of externalities, public goods, and club goods, it became evident that water supply affects everyone yet can be rejectable and excludable. After analyzing two articles involving typhoid rates and private waterworks, the conclusion was drawn that both private and public waterworks showed significant decreases in waterborne disease rates when using filtration coupled with chlorine use and increased personal hygiene.

Name: Denton, Drew
Date: Spring 2006
Major(s): Economics
Thesis Committee: S. Casler, J. Golden
Title: The Structural Change in the United States’ Economy as Caused by World War II
Abstract: The thesis of this paper is to investigate the structural change of the U.S. economy as caused by World War II. This is done through an examination of the various sectors of the economy, and their relative shares and growth rates, and their relative shares of the growth realized post-1929. After gaining enough knowledge of the various sectors, an analysis is used to estimate the intensity of such structural changes from 1930-1960. The focus of the research is based on the starting rates of growth and shares of the economy, annual growth rates of each sector, and the products of each sector’s rate of growth and share. After the total products of each sector is calculated, descriptions are made to explain the various changes in the economy as to be applied to the post-war growth realized. Finally, the fruits of World War II and its impact on the U.S. economy are discussed to illustrate the changed structure of the economy from an agro-intensive economy to an industry giant.

Name: DeStefano, Lauren
Date: Spring 2006
Major(s): Economics
Thesis Committee: S. Casler, T. Nonnenmacher, W. Hernandez
Title: The Perseverance of the Wage Gap: A Comparative Study Between the United States and Spain
Abstract: The purpose of this thesis is to verify, examine and compare the existence of a wage disparity between men and women within the United States and Spain. Within the following chapters, the concept of the wage gap will be discussed; wage discrimination will be defined, examples will be given, and anti-discriminatory legislation will be examined for both the United States and Spain. A detailed exploration of the economic determinants of the concept of wages in and of itself will be included, and a regression will be analyzed to shed light on the bearing on various independent variables which may affect the wage gap. Due to insufficient data for Spain regarding economic data for the years prior to the mid-1990s, a separate regression will not be included; however, data from a given year will be inserted into the regression which corresponds with the United States to assess how effectively it can predict the Spanish wage gap. Any discrepancy between the generated value in the model and actual data will then be contributed to different cultural and economic factors between the two countries in question within the concluding remarks.

Name: Dicello, David
Date: Spring 2006
Major(s): Economics
Thesis Committee: S. Casler, J. Sickafuse
Title: Brewing Up Success in America: An Industry Analysis of Coors Brewing Company
Abstract: Coors Brewing Company has been at the top of the brewing industry for close to a century now, but it is a vastly different market now than when they first broke into the industry. Light beers, advertising and powerful competitors have changed the face of the brewing industry, and breweries must now rely on analysis of economic and industry data to make managerial decisions. This has been a key area for Coors, as they are extremely dynamic when it comes to the beer market. The purpose of this study is to examine the affect that different factors have on the consumption of beer as a whole across the nation, but also with regards to Coors specifically. Economic as well as industry variables will be used to show the factors that most affect beer consumption among American consumers. Through regression analysis, I will illustrate how there variables affect Coors and beer consumption in general.

Name: Foley, Sean
Date: Spring 2006
Major(s): Economics
Thesis Committee: J. Sickafuse, S. Onyeiwu
Title: The Economic Impact of Work Stoppages in Professional Sports
Abstract: The first part of this thesis examines the considerable impact that professional sports have on the economy, as well as the economic repercussions of work stoppages in professional sports. The direct and indirect effects that a sports franchise has on industries such as bars and restaurants, hotels, public transportation, and merchandising retailers are studied. Following an examination of the general impact that sports franchises have on their local economies, specific scenarios involving the 1999 bankruptcy of the Pittsburgh Penguins and 2001 playoff-run of the St. Louis Cardinals are observed. Issues involved in the negotiations between the players and owners on the collective bargaining agreement (CBA) will also be studied. Economic terminology discussed in this thesis includes export sales, import substitution, the multiplier effect, elasticity, and the principal-agent problem. The second segment of this paper focuses on the economic tool of regression analysis, which is used to forecast NHL team payrolls for the 2005-06 season. These forecasted payrolls, when compared with payrolls from the 2003-04 season, help identify the effects that the new CBA had on player wages. Various statistical tests are run on the resulting data to verify that the model and its variables are reliable. The comparison of these payrolls produces a decrease of over $11.5 million in average team payroll from the season before the lockout to the 2005-06 season.

Name: Fonzi, Marko
Date: Spring 2006
Major(s): Economics
Thesis Committee: J. Sickafuse, B. Afrasiabi
Title: What is the True Economic Impact of Hosting the Super Bowl?
Abstract: The Super Bowl is a spectacle that combines athletics and entertainment to make one of the most watched events of the year. With such a large audience, the ability to profit makes hosting the game extremely appealing. The question remains as to exactly how much the host city will benefit economically from hosting the NFL Championship game. While the NFL believes that all Super Bowls inject between $300-400 million into a city’s economy, many economists believe that number to be very much inflated. The purpose of this project is to explore various studies as well as statistics that are pertinent to the economic impact of the Super Bowl. Through the use of this information, case studies will be done on select cities to determine why or why not they were profitable hosts. Using case studies as well as other information, it becomes clear that one cannot present a general figure when regarding Super Bowl profitability. The cities that are chosen to host the game are so different that to assume similar economic benefits is foolish. Ideally it is explained that cities with low winter tourism as well as a small land area provide the best chance for large profit. Conversely, cities that have a high level of winter tourism coupled with being larger and tougher to navigate have a less chance for high profit.

Name: Fryman, Paul
Date: Spring 2006
Major(s): Economics
Thesis Committee: T. Nonnenmacher, A. Baskan
Title: The Craft Brewing Niche: Economic and Cultural Significance of a Budding Industry
Abstract: The United States brewing industry has undergone many transformations since the end of prohibition in 1933. Following the post-prohibition transition, the brewing industry became highly concentrated and three market-leading brewers emerged. They currently account for approximately 85 percent of the industry’s market share. These leading macro brewers have successfully shaped domestic consumer tastes, through massive marketing and advertising campaigns, to beer that is lightly flavored and relatively homogenous throughout the macro sector. In hopes of offering the American consumer a bold and differentiated beer, the specialty/craft brewing niche was born. The specialty brewing sector, more commonly known as microbreweries, exploded through the 1990s by offering consumers unique beer styles not typically found in the United States. Currently, there are approximately 1,400 specialty brewers in the United States, and the niche market is experiencing dynamic growth unparalleled to any other brewing sector. This work is an industry study of the United States brewing industry, with special attention to the specialty brewing sector. The Structure, Conduct, and Performance Paradigm is also applied to the industry.

Name: Gallagher, Eileen
Date: Spring 2006
Major(s): Economics
Thesis Committee: S. Casler, B. Afrasiabi
Title: An Analysis of the Determinants of Consumer Debt: Is There a Consumer Debt Crisis?
Abstract: The purpose of this study is to analyze the growth rate of consumer debt as a function of income, age, home prices, taxes, interest rates and the business cycle and also to test whether there is currently a consumer debt crisis occurring. The empirical analysis was conducted using a least squares regression model. The theory underlying this study is Franco Modigliani’s Life-Cycle Theory of Consumption, which explains consumer spending behaviors over a lifetime and is predicated on the idea that consumers are forward-looking thinkers. Recent news and scholarly publications proposing that the rising levels of consumer debt are extraordinary and may be due to a crisis rather than the traditional theoretical determinants motivated this study.

Additionally, two variations on the regression model were performed using only revolving debt as the dependent variable and then using only home mortgage debt as the dependent variable. The results of the regression analyses show that the independent variables jointly influence the growth rate of consumer debt, as well as the growth rate of mortgage debt. The growth rate of revolving debt, the type of debt most closely related to credit card debt, is not significantly influenced by any of the independent variables individually nor is the model as a whole significant.

Name: Gallek, Jessica
Date: Spring 2006
Major(s): Economics
Thesis Committee: S. Casler, B. Afrasiabi
Title: Determinants of the Output Growth of the U.S. Steel Industry
Abstract: The purpose of this paper is to understand the factors that may influence output growth based on demand in the United States steel industry. The U.S. steel industry is examined from the 1950s until present, throughout the decline in the industry. Examining the history of the steel industry allowed me to determine which factors would be further investigated. I was especially interested in examining the effects that steel tariffs on imports have on output growth in the industry.

A theoretical analysis was performed using an economic model that minimizes cost subject to an output constraint. Once I was able to understand the U.S. steel industry in terms of an underlying economic theory, I proceeded to use a least squares regression analysis to examine the relationship that the following variables had on the output growth in the U.S. steel industry: the growth rate of the price of U.S. steel, the growth rate of the price of U.S. plastic, which I assumed to be a substitute for steel, real GDP growth, output growth in the U.S. construction and U.S. Plastic industries (a complement and substitute, respectively), tariffs, business cycles, and structural changes.
From this analysis I concluded that my model, as a whole, explained a significant portion of changes in the growth rate of U.S. Steel demanded. Although several variables proved to be insignificant on their own, this model does help explain some of the underlying issues. I have also concluded from my model that tariffs on imported steel do not play a significant role in increasing steel output growth in America. Therefore, internal factors, rather than external competition, seem to be more significant in determining the output growth in the U.S. Steel industry.

Name: Gelles, Matthew
Date: Spring 2006
Major(s): Economics
Thesis Committee: J. Sickafuse, J. Golden
Title: Fluctuating Money Supply
Abstract: The stock market and money supply are two of the United States’ most important economic variables. The purpose of this thesis is to examine the fluctuations and relationships of several economic variables specifically the impact of these variables on the stock market and money supply. The second direction that this thesis will take is to study the relationship between the stock market and money supply more exclusively. After these topics are introduced, the paper begins to more thoroughly examine several economic variables that are essential to the economy. Along with with the stock market and money supply, corporate profits, dividends, oil prices, the Federal Funds Rate, and the inflation rate are scrutinized. Following this description, the variables are each related to each other and specifically, to the stock market and money supply.
The actual experiment takes place in the third chapter in which a variety of regressions are executed to find their economic impact on the stock market. These variables include the several mentioned previously and also a series of dummy variables including the impact of a changing Federal Reserve Chair, the impact of business cycles, the impact of a structural change, the impact of September 11, and finally the impact of the Tech Bubble of the 1990′s. To conclude, a-priori expectations and ex-ante results are studied to see if suitable predictions were made in the underlying theory chapter.

Name: George, M. Elliott
Date: Spring 2006
Major(s): Economics
Thesis Committee: J. Sickafuse, D. Goldstein
Title: Competitive Balance in Sports
Abstract: The National Hockey League and the FA Premier League contrast in almost every known way as two professional sports leagues. Hockey is considered the fourth for even fifth most watched sport in the United States, behind football, baseball, and NASCAR. Meanwhile, soccer is the most popular sport throughout the rest of the world, and the FA Premier League has the most talented players participating in their matches. Yet, the NHL has rebounded after missing an entire season to boost ticket sales and overall league revenue to a stability level that has never been reached before. The FA Premier League, while considered somewhat successful, has not reached their optimality levels to become a long-standing organization. This begs the question, if soccer is more marketable throughout the world, why has hockey, an unpopular sport in America’s standards, flourished after their strike season.
The major change that the NHL has implemented an introduction to competitive balance throughout their league. They introduced a salary cap and revenue sharing from team to team. This created a high level of uncertainty of who would win each individual game, which in turn, creates an uncertainty for the league championship. This boosted the interest in the NHL across Unites States. On the other hand, the FA Premier League’s gap between the best and worst teams has reached an all time high, and the competitive balance is continuously getting worse. Their attendance and league revenue is suffering because of this. Also, the discrepancy between the teams increases the chance of the better teams breaking away from the league, and the less talented teams from being forced into bankruptcy. The instability of the league is evident in this case. The need for competitive balance is a must for all sports leagues.

Name: Johnson, Erik
Date: Spring 2006
Major: Economics
Thesis Committee: T. Nonnenmacher, A. Moskwa
Title: Public Interest vs. Special Interest: The Underlying Factors of the Sherman Antitrust Act
Abstract: Regulation is imperative for maintaining a competitive market. One major event in American history was the industrial revolution, which occurred in the late 19th Century. This occurrence created technological advancements and many new business practices. As a result, more businesses emerged in the economy, especially monopolies. Monopolies like the railroad and oil cartels were forming, creating a stranglehold on the market. Thus, the United States government took action by implementing the Sherman Antitrust Act in order to stop these monopolies.
It is the intention of this paper to demonstrate the differing views of the Sherman Antitrust Act. Two major arguments of antitrust pertain to the public interest and special interest ideas. The public interest theory attempts regulate business to improve social surplus in the economy, where as the special interest idea uses a more individual approach when issuing antitrust. East chapter uses two economist’s articles for explaining each idea. The first chapter analyzes public interest, and the second interprets special interest. The paper concludes with a case study of the Brown-Kinney Shoe merger by analyzing two author’s interpretation of how Congress regulated this combination.

Name: Kosanovic, Dejan
Date: Spring 2006
Major(s): Economics
Thesis Committee: T. Nonnenmacher, J. Golden
Title: Standard Oil’s Use of Predatory Pricing and Raising Rival Costs
Abstract: This senior project investigates the Standard Oil Company’s use of predatory pricing and raising rival costs. It gives insight into the company itself, discussing how it was operated and how it grew into such a powerhouse in the oil industry. Here predatory pricing and raising rival costs are defined thoroughly, and case studies that complement these definitions are presented where we see other firms using these anti-competitive practices. Finally Standard Oil is looked at specifically and it is found that they did use predatory pricing and raising rival costs to its advantage in its rise to success.

Name: Lasser, Brian Matthew
Date: Spring 2006
Major(s): Economics
Thesis Committee: T. Nonnenmacher, D. Miller
Title: A Critical Examination of the Late Nineteenth Century Meat-Packing Industry
Abstract: The late nineteenth century was a period marked by great corruption in the meatpacking industry. Muckrakers like Upton Sinclair recognized this corruption in very public ways, all in an effort to obtain government regulation of the industry. Yet, what was the government’s reasoning for regulating the industry? Two arguments are commonly made for government regulation of the meatpacking industry. One possible argument is that a public health threat existed in the industry as a result of disease and unsanitary conditions. Another potential argument is that the industry sought control of the market in order to eliminate substitutes. Sinclair’s The Jungle is a novel that supports the public health argument. His harsh, detailed account of the poor working conditions in the meatpacking industry was intended to make readers aware of the health and disease threats that were a result of these conditions. His novel even helped lead to important regulation of the industry. Ultimately, after examination of the Economics and English literatures, I favor the public health argument as the primary reason for regulation of the meatpacking industry during the late nineteenth century.

Name: Lyzen, Kristen
Date: Spring 2006
Major(s): Economics
Thesis Committee: B. Afrasiabi, D. Goldstein
Title: Price Gouging Due to Hurricane Katrina: A Study of the Exxon Mobil Corporation
Abstract: The purpose of this study is to find out whether Exxon Mobil used priced gouging in order to profit from the events of Hurricane Katrina. There have been allegations against many major oil companies accusing them of price gouging. The way to find out whether there has been price gouging is to calculate abnormal returns for Exxon Mobil during the time period during and after the hurricane. Using an event analysis, I will be able to calculate stock values that would have been expected if Hurricane Katrina had never existed, by performing a regression. These numbers will be compared to the actual values, and this will show abnormal profits. After interpreting the data from the regression, a t-test is performed in order to test the hypothesis that cumulative abnormal returns is equal to zero. The results show that there was no cumulative abnormal return received by Exxon Mobil, and therefore proves that Exxon Mobil was not price gouging.

Name: Ludewig, Matthew
Date: Spring 2006
Major(s): Economics
Thesis Committee: J. Sickafuse, D. Goldstein
Title: The NHL Lockout of 2004-05: Positive Results on Employment
Abstract: The goal of this study is to prove that the NHL lockout of 2004-05 will prove to be good for employment in the long run. To show this, information is given providing a description of different areas of employment throughout the NHL. Next, a background of the lockout is given to provide knowledge of what occurred during the lockout and why it happened. Then, information and graphs on labor economics are given to show some characteristics of employment. Finally, information regarding the economics of strikes is given, which gives the final information needed to analyze the lockout and show that it will have a positive effect on employment.
The effects that the lockout had on employment are shown through various tables. These tables show the effects the lockout had on different areas of employment such as player salaries and team payrolls, the loss and creation of jobs, and how teams handled their employees differently, before and after the strike.
After examining all of the information and using the tables to help predict what will come about from the lockout, it is shown that all forms of employment including the players, coaches, trainers, owners, and front office personnel will all benefit from the lockout in the long run.

Name: Marshall, April
Date: Spring 2006
Major(s): Economics
Thesis Committee: S. Casler, S. Martin
Title: Workless Women: Factors Underlying the Unemployment Gap Between Men and Women in the United States
Abstract: Unemployment can be a considerable burden for any economy. The purpose of this study is to examine the unemployment gap, to determine and test several factors that may influence the differing unemployment rates observed between men and women in the United States for the past forty five years. Using women’s history in the work force in the U.S. and the labor market as the fundamental model of unemployment, six variables were extracted and tested using regression analysis. The variables accounted for women’s wages as a percentage of men’s, services as a percentage of GDP, women’s labor force participation rate relative to men’s, and women’s educational attainment of Bachelor’s Degrees as a percentage of Bachelor’s Degrees earned by men. The other two were dummy variables representing recessions and the women’s movement. Results suggested that the model provided a good overall fit for the data provided. However, the results also implied that the only variable significant in explaining variation in the unemployment gap was the women’s movement. Therefore, the results of the study are unsatisfactory and suggest that economists must keep researching in order to better understand the more significant and influential reasons underlying the variation in unemployment rates between men and women in the United States.

Name: Meili, Michael
Date: Spring 2006
Major(s): Economics
Thesis Committee: B. Afrasiabi, D. Goldstein
Title: The Effects of Demographics on Savings and Investment: Will the Market P
Abstract: There have not been many empirical studies done regarding demographics and capital markets. In this study I attempt to predict the savings and investment of different age cohorts, particularly the baby boom generation. The savings and investment models were created using Keynes’ General Theory, and Modigliani’s Life Cycle Hypothesis. There have only been a few empirical studies in the past that have found demographics to have an effect on capital markets. This study also found age demographic to have an effect on capital markets. With regards to the stock market it was predicted that there will not be a “market meltdown” once the baby boom generation retires. Abel (2001) states that people do not spend all of their assets when retired, they pass them to younger generations in the form of living will. Also, people do not spend all of their assets at once during retirement. Modigliani (1966) only predicts people to live only 10 years after retirement. Today people are living much longer, so the selling of assets will be over a longer period of time. When the boomer generation begins to retire the demand for capital will remain high without causing the market to crash.

Name: Modzelewski, Emily
Date: Spring 2006
Major(s): Economics
Thesis Committee: A. Baskan, S. Onyeiwu
Title: The Impact of Cross B Order Outsourcing on Employment in the Manufacturing and Service Sector
Abstract: No Abstract written.

Name: Monarko, Daniel
Date: Spring 2006
Major(s): Economics
Thesis Committee: S. Onyeiwu, D. Goldstein
Title: Creating a New Market Space: The End of Competition Based Strategy
Abstract: In 2005 W. Chan Kim and Renee Mauborgne published their book Blue Ocean Strategy. They claim in their studies that too many firms are caught up in the cutthroat competition of their commoditizing industry, when they should be focused on creating a new market space outside of the industry. It is believed that a company can make its competition irrelevant by simply creating a new market space. The creation of this new market is what Kim and Mauborgne refer to as creating a blue ocean. Companies including Wal-Mart, IKEA, Starbucks, and Southwest Airlines are just a few companies that challenged the conventional wisdom of their industries and were able to create a unique product and service through a blue ocean strategy. This report takes a deeper look at the theory of blue ocean creation and steps necessary for its creation. It also provides an in depth look at two companies that have created a blue ocean of their own; Southwest Airlines and [yellow-tail] wine.

Name: Moore, Andrew
Date: Spring 2006
Major(s): Economics
Thesis Committee: S. Casler, B. Afrasiabi
Title: A Different Look at Government Spending: A Study of the Effects of Discretionary Government Spending on the Economy
Abstract: The Great Depression, one of the most catastrophic events in our country’s history has brought about many changes in the way that the economy is controlled and regulated. The policies and economic precautions that the government has established since The Great Depression have allowed for a dramatic increase in the power that the government has over the economy. Unfortunately it seems that this power is a tool that is overlooked and underutilized to a great extent. In this study, I present an argument that discretionary government spending can be used as a valuable tool to create a stable and prosperous economy by allocating money to different programs during cyclical fluctuations. Through the use of the aggregate expenditure equation, the multiplier, and a regression analysis my results show that it is possible to alter discretionary spending in order to achieve desirable results in the economy. By utilizing this powerful tool, the government could increase wealth and prosperity throughout our society.

Name: Odotei, Alan Sowah
Date: Spring 2006
Major(s): Economics
Thesis Committee: S. Onyeiwu, D. Goldstein
Title: Analysis of Venture Capitalism and Entrepreneurship: A Case Study of Tollgrade Communications, Inc.
Abstract: The relationship between the venture capital market and entrepreneurs is a rather simple one. Entrepreneurs need capital to fund their ventures and the venture capital market has just that. However, the venture capital market does not have an unlimited supply of capital to invest; therefore, they have to determine which projects they want to invest in and hope that they get a large return on their investment. This is where the problem arises: the method with which they evaluate the deals is inefficient. Venture capitalists are turning down deals that have the potential to be great, like the Tollgrade Communications, Inc. This company is studied in great detail and shows just how inefficient the venture capital market is.

Name: Panteleimonitis, Spyros
Date: Spring 2006
Major(s): Economics
Thesis Committee: T. Nonnenmacher, E. Palmer
Title: Freedom, Responsibility, and Monopolies
Abstract: This project examines both the economic and philosophical nature of monopolies. It discusses the rights and responsibilities of individuals, corporations, and the community focusing on the views of Libertarians and Communitarians. The thesis of this comp is to establish the fundamental differences between two schools of thought focusing around their stance on monopolies and antitrust regulation, specifically the Sherman Antitrust Act as interpreted by Judge Bork in his article Legislative Intent and the Policy of the Sherman Act. In this article, Bork emphasizes the significance of original intent behind legislation. With this in mind this project also aims to evaluate Bork’s argument from the libertarian and communitarian perspective.
The project begins with an introduction to the economic concepts behind monopolies and then continues with the exploration of libertarian ideas, followed with the communitarian. This project will prove that although the two groups differ drastically in their opinion on monopolies both of them are likely to approve the Sherman Act without necessarily agreeing with Bork’s argument on original intent.

Name: Pugliese, Andrew
Date: Spring 2006
Major(s): Economics
Thesis Committee: M. Maniates, D. Goldstein
Title: Surpassing the Bar: Eco-Effectiveness and the Triple Bottom Line
Abstract: The sustainability of the modern economy and the society of which it is a part has been placed in jeopardy. Many social, political, and economic tools have attempted to turn the tide of unsustainability and secure a prosperous tomorrow. These tools have shifted the responsibility from the politician to the consumer, and onto corporations. Previous tools centered on command-and-control strategies and restrictions to growth. As such, those upon whom they were used poorly received these attempts. Two contemporary tools that attempt to create sustainability are triple bottom line business practices and eco-effective design principles. This paper explores what makes these two tools the best solution to an unsustainable economy. In addition the paper incorporates much of the written literature on the topics of eco-effectiveness, the triple bottom line and the ways in which they impact the economy. Patagonia, Inc. is used as a case study to investigate how these tools have already been implemented. The assessment and recommendations are based on the findings as described in the paper and are intended to bring clarity to the topic.

Name: Robine, Danielle
Date: Spring 2006
Major(s): Economics
Thesis Committee: J. Golden, S. Martin
Title: An Analysis of the Determinants of
Abstract: The purpose of this study is to demonstrate the relationship between women’s labor force participation rates and the factors that affect them while focusing on the affects of business cycles and structural changes. I will begin with a brief history of working women from the early nineteenth century to the present. I will discuss the theory behind the increased and/or decreases in these rates. I will then run a regression analysis to estimate the relationship between women’s labor force participation rates and women’s wage growth, GDP growth, unemployment rates, manufacturing sector employment, and service sector employment. This estimate can help to predict future values. I will then conclude with the results of my study and determine if they are significant.

Name: Rodgers, Aaron
Date: Spring 2006
Major(s): Economics
Thesis Committee: S. Casler, B. Afrasiabi
Title: Is the United States Currently Experiencing a Housing Bubble? A Study of the Existence and Effects of a Housing Bubble on the United States’ Economy
Abstract: The purpose of this study is to determine whether a sample of United States cities are currently experiencing inflated prices in housing. The five cities chosen to represent the overall population of large cities are San Diego, Boston, Miami, Kansas City, and Seattle. A theoretical model discussing utility theory, the substitution and income effects, and the supply and demand factors within the housing market provide information as to what factors potential homeowners take into consideration when purchasing a home. The factors determined to have an impact on the price of housing are average household income, the unemployment rate, the real interest rate, the rental consumer price index (CPI), the number of housing starts, and the population per square mile. In the empirical analysis chapter five regressions were run, one for each city, to determine if a housing bubble could be the cause for inflated housing prices for the years 2001-2004. This study found strong evidence that in several cities across the United States a housing bubble may exist, although many areas across the country also are not currently experiencing a housing bubble, which makes this phenomenon a regional occurrence.

Name: Ross, Justin
Date: Spring 2006
Major(s): Economics
Thesis Committee: J. Sickafuse, S. Onyeiwu
Title: Determinants of Salaries for NFL Athletes: An In-Depth Analysis of the Wage Determination Model, Efficiency Wages, and the Human Capital Model
Abstract: The National Football League has become one of the most dominant forms of entertainment in modern society. One of the biggest concerns that each team owner faces each year is the allocation of individual player contracts. The purpose of this study is to examine the economic model of wage determination, the human capital model, and the efficiency wage model to develop and in-depth study of determination of wages for professional athletes in the National Football League. The paper will begin by thoroughly discussing each of these three economic models, using charts and graphs when necessary to better explain certain concepts. Several other similar studies are examined that set out to explain the extent to which some of the same variables affect a player’s salary. Also, the ways in which the NFL uses the wage determination model, the human capital model, and the efficiency wage model in relation to the signing of these professional athletes will be examined. Regression analysis using data of eighty-four NFL running backs is utilized to statistically investigate the extent to which certain variables affect players’ salaries. This study also takes into account the differences noticed between certain factors that affect the salaries of superstar athletes and non-superstar athletes.

Name: Sarkodee, Pamela
Date: Spring 2006
Major(s): Economics
Thesis Committee: S. Onyeiwu, A. Moskwa
Title: The Implications of Globalization in a Developing Nation: An Evaluation of the Impacts of Global Integration Experienced in Sub-Saharan Africa from 1983 to 2004
Abstract: Globalization and its impact on developing countries have generated a number of controversies. This study takes an in-depth look into what it means to be globalized in Sub-Saharan Africa, and explores the various arguments surrounding the globalization process. These arguments include those of pro-globalists, and those who believe that globalization has both a positive and negative effect.

Having presented these arguments, I use macro data to explore the effects of globalization on Sub-Saharan Africa as a region, as well as the individual economies within the region. Vital to this study is Trade (which is measured as the net difference between imports and exports expressed as a percentage of GDP) which is used in measuring the degree of openness. The impact of globalization on Africa is analyzed on the basis of the following indicators: Life Expectancy, Poverty, Child Mortality, and Gross National Product Per Capita. The study is based on 1983 and 2003 data on the assumption that the globalization process picked steam after 1983. The ultimate goal of the study is then to ascertain which of the three views on globalization is more persuasive.

Name: Schaefer, Joseph
Date: Spring 2006
Major(s): Economics
Thesis Committee: S. Onyeiwu, B. Afrasiabi
Title: The Economic Impact of Allegheny College on the Meadville Area
Abstract: This project is an economic impact study of Allegheny College on the community of Meadville, Pennsylvania. The study identifies many areas in which the presence of Allegheny College contributes to the economy of the Meadville area. These areas include student, parent and alumni spending, employees’ net salaries, and taxes paid by the college. The study estimates Allegheny’s impact on the Meadville community to be between $44,638,197.57 and $57,256,518.63 per year. The study was conducted through the use of surveys and economic multipliers. Students, parents, and alumni were surveyed for this study and a multiplier was applied to the estimate of direct impact to determine the indirect effect on the area. The study has concluded that Allegheny College has a significant impact on the Meadville economy.

Name: Schlosser, Benjamin
Date: Spring 2006
Major(s): Economics
Thesis Committee: A. Baskan, S. Onyeiwu
Title: Fact or Fiction: The North American Free Trade Agreement (NAFTA) and its Effects on the United States
Abstract: In the years leading up to the implementation of the North American Free Trade Agreement (NAFTA), heated debates raged across the United States over its potential impact on the U.S. economy. The promoters and opponents of this agreement where severely split over the impact on such economic variables as the job market, wage and salary disbursements, and productivity. The purpose of this study is to specifically examine whether there is significant evidence to support the initial concerns regarding NAFTA’s effect on the U.S., or whether these concerns were overstated.
In order to perform this study, I looked at trade and investment flows between the U.S. and Mexico, U.S. unemployment levels, and U.S. wage and salary disbursements. This data was looked at over a time period that included a number of years before NAFTA up until 2005. Using graphs and trend lines, it was possible to take a before and after look at what has happened in the U.S. economy. The conclusion that I reached from this study was that NAFTA has affected the factors listed above in the U.S., but the actual effects of NAFTA were not nearly as radical as those predicted by its promoters and opponents.

Name: Shirley, Josh
Date: Spring 2006
Major(s): Economics
Thesis Committee: B. Afrasiabi, D. Goldstein
Title: Stop the Evil Empire: The Need for a Salary Cap in Major League Baseball
Abstract: The purpose of this paper is to examine the growing competitive balance issue faced with Major League Baseball. Since the strike shortened season of 1994, MLB has seen growing disparities among talent between large and small market teams. The solution to these disparities was a Luxury Tax, however since it was implemented it has done little to create an even playing field in Major League Baseball. The need for a salary cap has been suggested as a new solution to the growing competitive imbalance problem. MLB’s counterparts, the NFL and NBA, have enjoyed substantial revenue gains among all teams within their league through the use of a salary cap.
In this model I examine the effects total revenue, payroll and market size have on a teams winning percentage in Major League Baseball. These numbers suggest that the large market teams have developed a sort of oligopoly on the market. They have found a way to obtain the majority of revenues and keep the smaller market teams from being a factor. The large market teams do this through the lack of restrictions on hyperactivity among players. This benefits the large market because they are the only ones that can afford the contracts of the superstar athletes. My suggestion to correct this problem is the same path the NFL and NBA have taken to correct their competitive balance issues they faced in the past through the use of a salary cap.

Name: Wentz, Jeffrey
Date: Spring 2006
Major(s): Economics
Thesis Committee: J. Sickafuse, B. Afrasiabi
Title: Examination of the National Football League as a Cartel through Territorial Relocations
Abstract: The National Football League is a dominant form of sports entertainment. Millions watch during the season in expectations of viewing their favorite team perform well. The purpose of this study is to examine how the National Football League is constructed and how it operates as a cartel. This paper will begin explaining the current situation of the National Football League. It will then document other studies completed by economists. This study will show how the National Football League operates as a cartel. Its prices are set according to monopolist policies. Parts of the Sherman Antitrust Act is explained and then later examined. A case study involving the Houston Oilers is examined in Chapter 3 in great detail. Franchise relocation in the National Football League has serious implications.

Name: Wheeler, Katie
Date: Spring 2006
Major(s): Economics
Thesis Committee: T. Nonnenmacher, S. Martin
Title: The Federal Communications Commission (FCC) and Auction Theory with a Case Study on FCC Auction No. 61
Abstract: There are a multitude of auction formats for various commodities, and every auction may be run slightly differently. It is important to understand basic auction theory and economic theory in order to discuss how a specific auction functions. The Federal Communications Commission (FCC) utilizes a simultaneous multiple round (SMR) auction format to delegate licenses of spectrum space. As a tool of the government, the FCC manages the system so that it generates maximum revenues.
The purpose of this project is to utilize auction theory and related economic theorems to explore various auction formats based on the combination of bidding style, setting, sequencing, pricing, and valuations. Putting all of these together in terms of the FCC Auction format, this project further explores a case study of FCC Auction No. 61 – Automated Maritime Telecommunications Systems (AMTS). It reveals the auction process from pre-auction procedures, during the actual bidding process, and through the concluding post-auction processes. Through an analysis of the characteristics of the FCC Auction System format, I find that the design of it is consistent with the economic theories discussed throughout this project.

Name: Witucki, Brad
Date: Spring 2006
Major(s): Economics
Thesis Committee: J. Sickafuse, D. Goldstein
Title: Examining the Relationship Between Team Salaries and Winning Percentage in “America’s Past Time” and “America’s Most Popular Sport”
Abstract: The purpose of this project is to examine the relationship between the team salaries and team winning percentages in the NFL and MLB. The existence of the salary cap and free agency in professional football lead many people to believe that the NFL is the best run professional sports league in the world. Professional baseball, on the other hand, has no salary cap, leading people to believe that teams who can economically afford the high profile players, are the teams that are most likely to have success. Therefore the objective of this project is to give background information on each league’s respective Collective Bargaining Agreements. The way in which these CBA’s have been negotiated in past years has had a major impact on the popularity of these respective leagues. In addition, I will look at each teams salary, from both leagues, in the previous year, and examine the possible reasons why some teams were able to have success, while other teams struggled. Furthermore, I will examine the average salary for each team from the last 5 years, as well as each team’s respective average winning percentage from that same 5 year span, therefore giving the reader a better understanding of how salary effects a team’s success over a period of time. Lastly, a Chi-Squared Distribution will be used to show that team salary and winning are dependent on each other, specifically looking at Major League Baseball.