Name: Benedict, Amanda
Date: Spring 2007
Major(s): Economics
Thesis Committee: A. Baskan, S. Onyeiwu
Title: The Economics of State Healthcare Reform in California, Massachusetts, and Pennsylvania
Abstract: There are several methods of health care reform. These reforms will be described and considered to determine the most efficient method of reform. Currently in the United States, insurance companies offer insurance to individuals to minimize their risks. This market often fails due to asymmetric information and adverse selection. To fix the problem of adverse selection there are two main reform options both causing universal coverage. The first reform idea is a mandated coverage system where all individuals are required to purchase insurance. The second is a single payer system where all residents are covered by a state income and payroll taxes. Both methods will solve the problem of adverse selection. However, persons with income close to the poverty line are those who are affected the most by mandated coverage. Whereas a single payer system addresses all the issues addressed by mandated coverage but goes father and addresses more of the problems while being more equitable to all persons.
Name: Bunch, Robin
Date: Spring 2007
Major(s): Economics
Thesis Committee: S. Casler, S. Martin
Title: A Theoretical and Empirical Examination of the Unemployment Rate Gap between Men and Women in the United States from 1970 to 2005
Abstract: Women have become more present in the US workforce. How has this affected our economy? To explore the economic effects women have had on the economy, this paper focuses on the effects women have had on unemployment rates, which are indicators on the standing of the economy. To locate effects women have had on unemployment, comparisons in the unemployment rates between men and women were observed throughout a time span. Taking the difference in the unemployment rates between men and women allowed for the focus of women to be analyzed. Human Capital Theory is an economic theory that conveys the concepts of skills and knowledge an individual possesses reflects their productivity. This concept can be translated into explaining relationships in the productivity level of an individual and their employment decisions. The theory provides major factors that influence an individual’s decisions in human capital investments and employment. This theory also accounts for differences that men and women have when making these decisions, which lead to suggestions for the reasoning of the existence and changes in the unemployment gap between the sexes. Factors chosen from theory were statistically tested with the unemployment gap to observe any relationships that could help explain the unemployment gap between men and women.
Name: Canzano, Anthony
Date: Spring 2007
Major(s): Economics
Thesis Committee: S. Onyeiwu, J. Sickafuse
Title: Evaluating Michael Porter’s Theories on Strategy and Operational Effectiveness: A Case Study of Kodak and Fuji
Abstract: This paper is an investigation of the importance of strategy and operational effectiveness to firms that are hoping to gain a sustained competitive advantage in the market. This is done through a case study of two well-known companies The Eastman Kodak Co. and Fuji Photo Film Co. By looking at many different aspects that are needed in order to have a strategy, the case study will compare the two firms and show what tasks they are performing differently. The profits, revenues and R&D expenditures are a few of the categories that will be looked at to gain an idea of how Kodak and Fuji are doing in their fields. To be a market leader a firm must be able to do something that sets them apart from the rest of the competition. The importance of strategy in gaining a sustained competitive advantage is something that is often overlooked. Throughout this comp, it will become clear just how important strategy actually is.
Name: Chan, Daphane
Date: Spring 2007
Major(s): Economics
Thesis Committee: S. Onyeiwu, S. Martin
Title: International Competitiveness and the Driving Factors
Abstract: Today, countries are fighting to have the best international competitiveness. The purpose of this study is to investigate the cause of declining country’s ability to complete at the world level. The test of this study, using data from thirty OECD countries for 2003, six independent variables, labor productivity, expenditure of R & D, expenditure of tertiary education, export of high technology, share of GDP and budget deficit will be cross sectional regress with the dependent variable Global Competitive Index. These result provide significant insight of the relationship between international competitiveness to expenditure on R & D and budget deficit. These results are shown to be consistent with what the researcher expectation.
Name: Cholakov, Georgi
Date: Spring 2007
Major(s): Economics
Thesis Committee: S. Casler, A. Moskwa
Title: An Analysis of the Complete Labor Supply Curve
Abstract: The purpose of this study is to present a theoretical and empirical analysis of the labor supply behavior of the low-income class. It focuses on the individuals’ decisions and on how interaction between the income and substitution effects forms an inverted “S” shaped labor supply curve. The theoretical basis for this paper is the work of Yoram Barzel and Richard McDonalds, as well as the ideas developed in the studies by Mohammed Sharif and Maryke Dessing.
A least squares regression analysis is used in the empirical section of this study. In our regression analysis we use the average workweek in different countries as a dependent variable and we determine a significant negative relationship between hours worked and wage rates for low levels of income. This, clearly, contradicts the widespread, “textbook” view of a simple backward-bending labor supply curve and implies the need for expanding the model to an inverted “S” shaped curve. We also evaluate the results from Maryke Dessing’s research and find some reasons to be a little bit skeptical towards her study because of the level of significance of her model. It does, however, once again show a significant negative relationship between real wage and length of the workweek. As a whole, empirical analysis supports our hypothesis of an inverted “S” shaped labor supply curve.
Name: Chorba, Daniel
Date: Spring 2007
Major(s): Economics
Thesis Committee: J. Golden, C. Allison
Title: Do Corporate Insiders Still Trade on Non-Public Information?
Abstract: The purpose of this study is to determine whether or not corporate insiders still use material non-public information to gain above average stock returns. There has been a large body of research previously done on the subject. Some researchers have argued for allowing insider trading while others have continued to argue against it. The main argument for insider trading is that it creates a more efficient marketplace. The argument against insider trading is that it raises the cost of capital and lowers investor confidence in the market. The market model will be employed to determine whether or not insiders are still using nonpublic information to their advantage on a large scale. The market model is a statistical model which allows for the measurement of abnormal returns on a security due to an event. The event in this case is a large insider sell. The data used in this project consisted of 225 days of daily stock returns for eight different securities. This paper gives a broad overview of what insider trading is. In the theory section this project reviews a number of the most popular finance theories of today. The paper also includes interviews with executives from the Pittsburgh area to get their views on insider trading.
Name: Collins, Graham
Date: Spring 2007
Major(s): Economics
Thesis Committee: S. Martin, J. Sickafuse
Title: Gender Discrimination in the Labor Force Amongst Lawyers
Abstract: The thesis for this paper was to investigate gender discrimination in the labor force amongst lawyers. The study was to find if gender discrimination could account for the wage gap that is seen by using data from the 2000 U.S. Census data. The motivation for this paper was to find out what happens with the wage gap between males and females holding constant the years of education. Gary Becker’
s model of discrimination suggests gender is an important variable and the wage gap due to gender may vary across sectors. This study finds that the wage gap is larger for males and females in the private sector than in the public sector.
Name: Cornish, Eric
Date: Spring 2007
Major(s): Economics
Thesis Committee: D. Goldstein, J. Golden
Title: Biodiesel and Its Potential Role as a Substitute for Petroleum-Based Fuel
Abstract: This project focuses on renewable liquid energy, specifically biodiesel. This analysis shows the currents status of biodiesel development and compares it to that of the oil industry. The research is centered around the idea of “peak oil” which states that at some point in the future all oil reserves will run dry. With that being the case, its seems relevant to look into other fields in search for an alternative source of liquid energy. Based on a feasibility already conducted, the information has been used to build a case for the biodiesel industry showing its ability to be competitive with the oil industry as well as how this energy source can function as an additive and what it would take to rely on biodiesel as a total replacement for the needs that oil currently fulfills. What this project shows is that biodiesel’s competitiveness is a function of the price of crude oil. Recent technological advances in the oil industry have increased individual oil well productivity showing that, for that most part, it seems that oil will maintain a competitive advantage for some time. However, if the theory of peak oil holds true, biodiesel would have to meet the requirements shown in chapter three of this project to fulfill our current needs. Because these requirements show to be highly intensive and technological advances change day to day, the project turns to looking at using biodiesel as an additive as the answer and looking at the coexistence of every available alternative energy combined with the use of oil as the key to success.
Name: Coxon, Nicholas
Date: Spring 2007
Major(s): Economics
Thesis Committee: J. Sickafuse, J. Golden
Title: How the Explosive Growth of Google Influenced Internet Advertising
Abstract: The purpose of this project is to show how Google is a driving force of Internet advertising. Since the incorporation of Google in 1998, and particularly the inception of Google’
s Adwords Internet advertising has seen a shift from traditional banner advertisement towards paid placement advertisements. Adwords has enabled advertiser to place their advertisements in front of interested consumers. Additionally, through the use of the Adwords model Google provided a platform for other companies to operate on, essential creating new marketplaces for firms.
Through the use of regression analysis, the effects of Google’s percentage of total searches, the United States online population, the S&P 500, and the Dow Jones are measured on Internet advertising revenue. This was done in an attempt to prove the significance of Google’
s search percentage
Name: Cruea, Devin
Date: Spring 2007
Major(s): Economics
Thesis Committee: S. Casler, J. Golden
Title: The Determinants of Real Investment Growth
Abstract: This project is designed to examine the determinants of real investment growth to determine which variables have the largest effect upon real investment growth. I have taken data from 1959 through 2005 and ran a regression to find out which of the variables that I have chosen had the greatest effect upon real investment growth. The variables that I chose were real GDP growth, the real interest rate and the unemployment rate. I also included dummy variables for recessions and structural change during the years of 1959 and 2005. After discussing the accelerator model as my main model for this project I then run a multiple regression to find out which variables has the largest effect upon real investment growth. After running the regression I find out that real GDP growth has the largest effect along with the dummy variable for recessions on real investment growth. I end the project with possible ways to increase real investment growth if it is not up to par in an economy.
Name: Deniro, Justin
Date: Spring 2007
Major(s): Economics
Thesis Committee: S. Onyeiwu, A. Baskan
Title: What is General Motor’s Strategy
Abstract: This paper will reconnoiter the strategy of General Motors Corporation. This paper will provide an introductive synopsis of General Motors corporate history. In this paper I hypothesize that General Motors strategy is operational effectiveness at best and not strategy. Operational effectiveness has slowly taken the place of GM’s strategy, moving the company further away from viable competitive positions and diminishing performance. General Motors became so big and so successful that it has become complacent in its strategy. I will provide present and future strategic plans of actions for General Motors. I also make observations using empirical data to support my hypothesis.
Name: DeSalvo, Jennifer
Date: Spring 2007
Major(s): Economics
Thesis Committee: S. Casler, I. Roy
Title: Unlocking Victoria’s Secret: A Brand Identity Analysis and Determinants of Net Sales Growth in Victoria’s Secret Stores
Abstract: The purpose of this paper is to understand exactly how Victoria’s Secret has become the intimate apparel industry leader. Since purchased by Limited Brands in 1982, Victoria’s Secret has seen unprecedented growth in net sales, expansion, and client base. This study focuses on the brand identity and unique selling preposition of Victoria’s Secret, and determinants of the net sales growth in
Victoria’s Secret stores.
A brand identity analysis was performed, focusing on the history of branding, lingerie, and Victoria’s Secret, the definition of a brand, and the unique selling preposition of Victoria’s Secret, as well as the company’s positioning statement.
Nest, a theoretical analysis was performed using an economic model that maximized profit within a monopolistically competitive market. Once I was able to understand the way in which Victoria’s Secret functions 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 net sales growth in Victoria’s Secret stores: the growth rate of Victoria’s Secret stores, the growth rate of GDP per capita, the population growth rate, and recession. Because I only had 12 observations after adjusting endpoints, my model will serve as a prototype, meaning that it could serve as the basis for a later study that may include more observations. From this analysis, I concluded that my model, a a whole, explained an insignificant portion of changes in the net sales growth rate of Victoria’s Secret stores. However, if more data were available, the model may have been significant and more accurate.
Name: Fedele, Christopher
Date: Spring 2007
Major: Economics
Thesis Committee: S. Casler, J. Sickafuse
Title: The Demand for Housing in the United States
Abstract: With a struggling housing market at the current time in the United States, many have questioned what particular factors are responsible for the downward trends of the market. This uncertainty surrounding the housing market prompted me to analyze and summarize the determinants of the demand for housing, including the effects of real GDP, the real price of housing, the real interest rate, and the real price of transportation. In order to analyze these particular determinants, I used theoretical and empirical analysis as the basis of my study. An in-depth analysis of different components of the theory of the consumer and a regression analysis were used in order to quantify a relationship between the demand for housing and the independent variables. My regression analysis was based on a time frame ranging from 1970 to 2006, in order to ensure ample data analysis. Ultimately, after examination of the theory of the consumer and my empirical model, I can conclude that the real GDP and the real interest rate are significantly related to the decrease in the demand for housing at our current time.
Name: Fish, Michael
Date: Spring 2007
Major(s): Economics
Thesis Committee: D. Goldstein, S. Martin
Title: The Living Wage: Impact and Analysis
Abstract: This article explores the effects of living wages on both median household income and unemployment. The article gives background of living wages regarding their nature, their current campaigns, and their opponents. Economic models and theories from previous advocates of living wages are presented. Standard labor market theory and efficiency wage theory present the most concrete economic models for living wages. The main economists are Adam Scott and David Neumark, Robert Pollin, Michael Reich and colleagues, and Oren Levin Weldman. Analysis is done using regressions from data retrieved from CPS reports. In testing median household income and unemployment, control and independent variables are used. The independent variable includes the living wage, and the control variables are immigration levels, and education attainment.
Name: Gillen, David
Date: Spring 2007
Major(s): Economics
Thesis Committee: D. Goldstein, S. Martin
Title: The Effects of Outsourcing on the US Economy
Abstract: The world around us is shrinking everyday. In the year 2007, our world has never been more connected through advances in technology. Through Globalization, collaboration is at an all time high and will continue as the way the business world interacts changes. As technological advances continue “outsourcing” business has increase exponentially over the past three decades. The purpose of this project is to see how this has affected the US Economy. My goal is for this study to take an unbiased approach to gauging whether outsourcing can be viewed as a positive or negative. To do this study, I will run a regression analysis and make necessary changes to any problems that arise.
Currently, outsourcing is a hot topic in the political world. Trade laws and other policy implications will be determined by the research done on outsourcing. My hope is that through this analysis of outsourcing, I may shed more light on this controversial topic.
Name: Glamuzina, Thomas
Date: Spring 2007
Major(s): Economics
Thesis Committee: J. Sickafuse, A. Moskwa
Title: Are the Perceived Health Benefits of Wine Linked to the Increased Consumption of Wine in America
Abstract: The wine industry in America has experienced tremendous growth over the past few decades. Wine consumption in America is at an all time high. Coincidentally there have been numerous studies released from institutions about the life prolonging affects wine consumption may offer people. Some of the benefits include an improved cardiovascular system and a reduction in the death rate of cancer. The perceived health benefits wine may offer could be the cause for increased consumption in America. These perceived benefits could have influenced Americans preferences enough for Americans to have new preferences. These new preferences could be the reason for the increase in wine consumption. A regression analysis showed a correlation between the release of these studies and the consumption of wine. Since the release of these health studies, wine consumption in America has increased. So it can be concluded that the perceived health benefits wine may offer have influenced consumption of wine in America.
Name: Holtzman, Jennifer
Date: Spring 2007
Major(s): Economics
Thesis Committee: S. Martin, J. Golden
Title: Accountability Systems; The Effects on Teacher Quality
Abstract: Accountability systems are designed to enhance and improve the academic achievement of all students, close achievement gaps, and provide guidance for teachers and administrators to lead young minds into the future. The United States is entering a period in which the demand for teachers is high, and with education playing such an integral role of the future, it is imperative that the quality of teachers is considered as, if not more, important than the quantity. President Bush implemented the No Child Left Behind Act to ensure that each and every child in America is presented with an education that is equal in quality. Using data from the Consortium for Policy Research in Education, the 1999-2000 Schools and Staffing Survey, and the 2000 US Census School District Tabulation, the relationship between variables that are indicators of teacher quality and variables that are indicators of accountability components were determined empirically. The results from the data of accountability systems in general were analyzed at the 10% significance level and were applied to the accountability system currently in place, The No Child left Behind Act. The results of the data suggest that accountability systems are negatively associated with qualified teachers staying in the same classroom for a longer period of time, qualified teachers are interested in teaching in school districts that encourage and monitor the results of teaching multiple subjects, teachers with less experience and advanced degrees are more likely to be in a school where an assistance program is necessary and these teachers will spend additional time outside of the classroom on school related work, and teachers with experience stay in schools for a longer period of time when monetary rewards are used.
Name: Kelly, Ryan
Date: Spring 2007
Major(s): Economics
Thesis Committee: D. Goldstein, J. Sickafuse
Title: Long-term Effects vs. Short-term Effects of Organizational Downsizing: A Case Study of PNC Bank Financial Corporation
Abstract: Organizational downsizing has generally been proven to have a negative effect on a corporation’s short-run financial performance, but given the corporation’s economic strategy, downsizing can indeed increase the company’
s financial performance in the short-run. The economic perspective of downsizing stated by McKinley, Zhao and Rust justifies that downsizing is a strategy set forth to increase productivity and improve financial performance. Downsizing is a tactic that is popular and withstanding, but it is not always productive. Many times the basis for which a company will downsize has to do with the economic competition in its respective market or industry. PNC Bank Financial Corporation decided to implement a downsizing strategy in July 2005 to cut over 3,000 jobs in order to become more competitive within the banking and finance industry. A seven-year, quarterly breakdown of five different PNC financial categories illustrates how a company can be successful in the short-run after a downsizing strategy was implemented. The comparison between the actual data and the forecasted data after the downsizing strategy proves my hypothesis and illustrates an instance where a corporation experienced an increase in short-run financial performance.
Name: Kukucka, Graham
Date: Spring 2007
Major(s): Economics
Thesis Committee: S. Onyeiwu, A. Baskan
Title: The Monopolistically Competitive Model: A Comparative Look at the Commercial Real Estate Market in Allegheny County
Abstract: In a global economy such as that enjoyed today, one has difficulty imagining gaps existing within its seemingly endless supply of products and services. One such gap, in the self-storage service industry, provides a niche for an innovative business to thrive. Highlighting vital components of the business plan, this paper looks at the business model, management team, operations, and financials of a new start-up venture, C.J. Kunick Home Storage. Additionally, this paper examines the background of the Amish religion and characteristics, as Amish carpenters will serve as the venture’
s suppliers. Through applied strategy theory by Michael Porter, cost analysis, revenue and profit maximization theory, along with regression analysis, this paper shows the potential success of C.J. Kunick Home Storage.
Name: Kunick, Cale
Date: Spring 2007
Major(s): Economics
Thesis Committee: J. Golden, C. Allison
Title: Starting a Business in the Service Industry-Portable Storage Rentals
Abstract: In a global economy such as that enjoyed today, one has difficulty imagining gaps existing within its seemingly endless supply of products and services. One such gap, in the self-storage service industry, provides a niche for an innovative business to thrive. Highlighting vital components of the business plan, this paper looks at the business model, management team, operations, and financials of a new start-up venture, C.J. Kunick Home Storage. Additionally, this paper examines the background of the Amish religion and characteristics, as Amish carpenters will serve as the venture’
s suppliers. Through applied strategy theory by Michael Porter, cost analysis, revenue and profit maximization theory, along with regression analysis, this paper shows the potential success of C.J. Kunick Home Storage.
Name: Locklin, Sean
Date: Spring 2007
Major(s): Economics
Thesis Committee: J. Sickafuse, J. Golden
Title: The Effects of the Baby Boomer Generation on the Insurance Industry’s Assets
Abstract: The topic of this paper is to show the effects of the baby boom generation on insurance companies. Essentially, evaluating if insurance companies are ready to deal with the huge number of baby boomers getting ready to retire. This means the paper will evaluate if insurance companies will be able to bear the costs associated with retirement. For example, Long Term Care Insurance will be a huge factor, because Long Term Care is an insurance product that provides benefits in the event of a long-term illness or injury. Therefore, insurance companies will have to dish out a lot of money when the retired baby boomers, who own the product, begin to require care. And it is not only LTC, but an array of products that most insurance companies sell. Moreover, will insurance companies have the proper amount of assets to compensate for the huge influx of retired people? Some companies, such as Mutual companies who have billions of dollars in assets, will be able to sustain the costs, but other companies, such as public companies who struggle to make a profit, will not be able handle the costs and ultimately go out business.
Name: Malie, Patrick
Date: Spring 2007
Major(s): Economics
Thesis Committee: S.Casler, Moskwa
Title: Effects of Economic Induced Stress On Individual Health
Abstract: The purpose of this study is to discuss the connections between economic variables and stress levels of individuals and to measure the degree to which changes in certain economic variables affect certain medical conditions related to stress. Regression analysis is used to determine empirically whether or not certain economic variables affect stress levels of individuals enough to result in adverse health effects. The unemployment rate, GDP growth rate, inflation, and the fraction of the population of people 65 years old and older were used as the independent variables. The ischemic heart disease growth rate, hypertension growth rate, homicide growth rate, suicide growth rate, and ulcer growth rate were used as the dependent variables.
Three of the independent variables were significantly related to the homicide growth rate while two of the independent variables were significantly related to the suicide growth rate. Only one of the independent variables was significantly related to the hypertension growth rate and ulcer growth rate, while none of the variables were significantly related to the ischemic heart disease growth rate. The R-squared values were relatively small for all of the models, indicating bad fits for the models. However, many of the coefficient signs were consistent with my theory.
Name: Mangini, John
Date: Spring 2007
Major(s): Economics
Thesis Committee: S. Martin, A. Moskwa
Title: Undergraduate Student Employment and the Effects on Academic Achievement in a Public University
Abstract: The purpose of this study is to examine the effects of student employment on academic achievement. Data was used from a survey conducted by Sarath A. Nonis and Gail Hudson at Arkansas State University. The sample consisted of 264 students. Tests were done to analyze the effects of student employment, differences between gender, and the effects of motivation.
Name: McNeill, Justin
Date: Spring 2007
Major(s): Economics
Thesis Committee: S. Martin, D. Goldstein
Title: The Determinants of the Black-White Wage Gap
Abstract: This senior thesis explores the black-white wage gap in order to find if there exists a wage gap between black and white workers. This senior thesis uses past research and recent information in order to accurately calculate and determine the wage gap that might exist between black and white workers. Using different theories such as labor supply, labor demand, competitive equilibrium, compensating wage differentials, human capital and discrimination creates a better understanding of the material that could explain if there is a black-white wage gap. The data that was used in analyzing this test of the black-white wage gap came from the US census in the year 2000. Throughout this senior thesis I will explore the determinants, if any, that causes a black-white wage gap. The variables that I have concentrated on for my analysis include education, race, location, occupation and other variables that could help in determining the wage gap. After analyzing these independent variables and my dependent variable I will reach a conclusion on whether or not there is indeed a wage gap between black and white workers.
Name: O’Brien, William
Date: Spring 2007
Major(s): Economics
Thesis Committee: S. Casler, S. Martin
Title: The Decline of Employment within the US Steel Industry
Abstract: This project explores the determinants of the decline in employment within the United States’ steel industry. Chapter 1 simply presents the purpose of the project by providing some background information and explaining an example of how the loss of jobs could destroy a city. In addition, Chapter 1 provides an example of a former steelworker and their opinions and feelings concerning their job. Chapter 2 presents the underlying economic theory that will be used as the framework and analysis portion of the project. The Theory of the Firm is the economic theory to be used and it will prove to be most useful in the analysis. Chapter 3 is devoted to the empirical analysis of the decline in steel industry employment. This Chapter will use the underlying economic theory presented and try to identify the determinants of the decline in steel industry employment using a multiple regression model. Chapter 4 will conclude the project and summarize the previous three chapters.
Name: Pappas, John
Date: Spring 2007
Major(s): Economics
Thesis Committee: J. Golden, D. Goldstein
Title: Corporate Coherence and Its Effects on Economic Performance
Abstract: This project investigates the contemporary theory of corporate coherence. Corporate coherence is the theory that firms that use a number of technologies will perform better economically if they increase their product range by attaching these technologies to several products. This involves exploring technological synergies. The firms that do this will in theory exhibit the four elements of corporate coherence which are: learning within the firm, path dependencies, core competencies/complementary assets and the selection environment. In order to explore this phenomenon, an empirical analysis using patents, return on assets and total assets has been proposed. This data is analyzed for coherent and non-coherent companies. A non-coherent company is a company that I believe diversifies into unrelated units of business, such as a conglomerate. The paper does not provide evidence of coherent firms performing better than non-coherent firms in a regression model. However, evidence of this phenomenon is explored using the difference of means test. This paper paves the way for future analysis on the theory of corporate coherence.
Name: Plantz, Anton
Date: Spring 2007
Major(s): Economics
Thesis Committee: J. Sickafuse, D. Goldstein
Title: The Technology Bubble: A Study in Overvaluation
Abstract: This purpose of this paper is to take a closer look at the most recent major economic bubble to hit the world’s financial markets, the Technology Bubble. The goal in performing such an analysis being to ascertain what, if anything was the underlying cause behind abnormally large stock valuations for technology companies in the mid to late 1990’s. To help set the stage historically for the existence of modern economic bubbles, past examples of bubble phenomena such as the South Sea Bubble and the 1929 Stock Market Bubble are examined. Once the stage has been set historically, this paper then transitions into some of the plausible theories aimed at explaining the underlying causes behind the formation of these bubbles, with the idea of speculative mania being the centerpiece. Following the explanation of some of the plausible underlying theories, the paper then moves to an empirical analysis aimed at establishing irrefutable proof that technology stocks were in fact overvalued. After such empirical results are rendered, the paper draws to a close with the economic interpretation of those results in reference to the underlying theory that these technology stocks are indeed overvalued
Name: Poulton, Stephen
Date: Spring 2007
Major(s): Economics
Thesis Committee: S. Onyeiwu, D. Goldstein
Title: Technology as a Competitive Tool: A Study on How Technology Affects Competitiveness in the Auto Industry
Abstract: This senior project provides an insight into the role technology in the United States Automotive industry. During the 1990′s, the US auto industry has been losing a significant amount of market share. Through cases studies and regression analysis it has been determined that technology plays a key role in the automotive industry. As a result Toyota has been able to steal market share away from automotive giants Ford and GM. Through the regression analysis, this paper predicts that if Ford and GM are to regain their market share, they need to increase the amount they invest in research and development.
Name: Savage, James Travis
Date: Spring 2007
Major(s): Economics
Thesis Committee: D. Goldstein, S. Onyeiwu
Title: Warning: Cigarette Consumption May Increase Your Chance to Lose Your Job
Abstract: This paper explores the history of the anti-tobacco movement over the last four decades and its impact on the health care and insurance industries. Additionally it analyzes the managerial decision made by Scotts Miracle-Gro to fire its employees who smoke cigarettes in order to receive lower health insurance rates, thus combating the rising costs of medical care and health insurance. The economic theory surrounding the Scotts decision is analyzed and, finally, and in-depth look at the financial results of the managerial decision is carried out. While this decision greatly benefits Scotts Miracle-Gro financially, it also serves as another step in the contemporary anti-tobacco movement in America. At the end of this paper, it will also be clear how both historical context and financial issues complement on another in making this controversial decision possible and successful.
Name: Scheler, Joseph
Date: Spring 2007
Major(s): Economics
Thesis Committee: S. Martin, J. Golden
Title: Civilian vs. Military Wage
Abstract: This article explores the civilian-military labor markets in order to find if there exists a wage gap between the two labor markets. This article uses past research and recent information in order to accurately calculate and determine the wage gap that may exist between the civilian and military wage. Also, using different theories such as entry barriers, labor demand, and others that we have discuss will help us better explain not only the test, but create a better understanding of the material at hand.. The data that we use comes from 2000 Census, The Marines, and other various articles that has related information and testing on the same subject as this one. This article will be exploring wages in different professions and areas in the US in order to have a more accurate test on the wage gap. This article is for the student who is graduating college and wants to know all the job options that are existing in the labor market. This is not to sway their decision, but to help realize all the potential jobs that exist in the labor market.
Name: Sefscik, Michael
Date: Spring 2007
Major(s): Economics
Thesis Committee: S. Onyeiwu, J. Sickafuse
Title: Business Ethics as a Strategy for Competitive Advantage
Abstract: In business today there has been a growing attention to social responsibility of firms. In our society of mixed opinions and ideas, ethical versus unethical becomes debatable. Although ethics is defined, as doing what is right, society tends to have different opinions on what right is. Companies who realize that trust, commitment, and effort are just as important as the strategy and competitive advantages will be those that will succeed in the long run. Some companies see ethics as a burden while others see it as a pay off because it creates win-win situations. Ethics and corporate social responsibility should be used as a competitive strategy for companies to improve their overall performance.
Name: Shriver, Jesse
Date: Spring 2007
Major(s): Economics
Thesis Committee: S. Casler, A. Moskwa
Title: Theory of the Firm as Applied to Producer Behavior in Natural Gas Markets
Abstract: This study is an industry specific study on the behaviors of producers in the natural gas industry of the United States. This will be done by examining economic data from generally accepted government sources to create a model that will study the changes in production of natural gas. After gaining insight on how firms behave, this study will take selected data that is relevant and perform an analysis in an attempt to discover what factors influence and cause change in the amount of natural gas produced by firms in the industry. Data will be analyzed using regression analysis to show each variables effect on production of natural gas. Finally the results of this analysis will be discussed on what each variable’s significance is for the level of production in this industry.
Name: Skinner, Travis
Date: Spring 2007
Major(s): Economics
Thesis Committee: D. Goldstein, S. Onyeiwu
Title: The Changing Nature of Measuring Progression
Abstract: None.
Name: Solomon, Marcus
Date: Spring 2007
Major(s): Economics
Thesis Committee: S. Onyeiwu, A. Moskwa
Title: Small Firms and Niche Markets as a Competitive Strategy
Abstract: The purpose of this paper is to show how small firms created their success by finding a niche in the market. In order to compete with big businesses small firms have to follow certain procedures in order to be successful. The best way for these small firms to do that is to find a niche in the market that separates them from the competition, giving the consumer a reason buy their product or service over a larger company’s.
A niche market is defined as targeting a specific need for a product or service not already available to consumers. This paper explores the various specific elements of the niche market strategy and how the strategy should be applied. In finding their niche, small businesses can either alter and improve an existing product, or create an innovative new product that sets them apart from established companies. To demonstrate this concept, this paper presents three case studies: Acutec, Dr. Pepper and Splenda. These companies demonstrate how small companies have used the nice market strategy to become profitable, allowing them to grow into the larger businesses they are today. Managerial strategies, competitive advantage and product differentiation are discussed, as well as the dangers of the niche market strategy if not used correctly.
From the examination of these strategies and how they have led to the success of various firms, I concluded that small firms and niche markets are the key success of a small business.
Name: Sligh, Dravon
Date: Spring 2007
Major(s): Economics
Thesis Committee: S. Onyeiwu, A. Moskwa
Title: The Diversity Challenge: Model and Case Study of a Diverse Firm
Abstract: This comp addresses the managerial issue of diversity for American business. Diversity is an area of growing concern because of the changing demographics of the country. There are benefits to promoting the ideal of diversity if it is managed correctly. By constructing a theoretical model of the ideal firm for diversity one can evaluate the diversity initiatives of a firm, which through the use of a case study this project attempts to do.
Name: Sondej, Erin
Date: Spring 2007
Major(s): Economics
Thesis Committee: S. Casler, J. Golden
Title: The Battle of the Bulge: A Statistical Analysis of the contributing Factors to Obesity in America
Abstract: The purpose of this study is to determine the leading factors in the rising obesity rate, and what influences a consumer’s choices on food consumption. Since the mid-1970′s the prevalence of obesity has increased drastically in the United States, and today, nearly two out of three adult Americans are either overweight or obese. Americans consume more calories than they burn, leading to over-consumption and excessive weight gain. By using calories consumed as a proxy for the obesity rate, this study will analyze the effects of price and income changes on daily caloric intake. Consumer theory will be applied to a regression analysis using the price indices for chicken, beef, food away from home, and food at home. The prices of chicken and beef are included to represent healthy and unhealthy food options. The regression analysis also included real GDP and a recessionary dummy to measure changes in caloric intake during times of recessions.
From the regression analysis results, I had two significant variables, the price of food away from home and real GDP. Based on previous research, the consumption of food away from home has been increasing, and restaurants tend to serve food in large portions. Therefore, consumers are increasing their caloric intake, and in theory, are causing the obesity rate to rise. Furthermore, the overall fit of my model was good, and showed that the independent variables were significant in explaining changes in daily caloric intake. From the results, I can conclude that changes in prices and income directly affect a consumer’s choices on food consumption, therefore leading to a direct impact on caloric intake and the obesity rate.
Name: Stetson, Christopher
Date: Spring 2007
Major(s): Economics
Thesis Committee: S. Casler, A. Moskwa
Title: The United States Federal Budget Deficit: Driving Forces Behind the Deficit and the Impact of the Bush Tax Cuts on Future Deficits
Abstract: The purpose of this paper is to determine the independent variables that affect the budget deficit and to determine if the George W. Bush tax cuts have changed those driving forces. The level of the deficit and the ensuing Federal Debt is a frequent topic of political debate. In order to better understand what drives the budget deficit, we will first form a hypothesis, using macroeconomic theory. From there we can test that hypothesis, using economic data to prove which economic variables determine the deficit and will lead us to understand the driving forces behind the United States Federal Budget Deficit. Once the forces are determined, we will interpret the results and decide if the George Bush tax cuts have left a lasting impact on the Federal Deficits in years to come.
Name: Tarquinio, Mario
Date: Spring 2007
Major(s): Economics
Thesis Committee: J. Sickafuse, A. Moskwa
Title: Case Study of Non-Profits verses For-Profits: An In-depth Analysis of Efficiency Levels and Structural Management
Abstract: This project is a case study of non-profit and for-profit firms in the juvenile childcare industry that will show the differences and similarities in all aspects of operations. The main focus will be on the efficiency levels that each organization will operate on due to the constraint that they follow. The purpose of this study is to find out why firms are differentiated into non-profits and for-profits. What or who makes the decisions to become nonprofit or for-profit and for what reasons. First is an outlaying of the history of non-profits which gives a background on how, when, and why they were created. In chapter two the theory of Janos Kornai’s hard and soft budget constraint is introduced. Background information is provided on the theory and then elaborated on throughout the chapter. In the case study the two organizations, Bethesda Children’s Home and Vision Quest are described and information on their programming and funding are presented. With this information conclusions are made on what constraint they operate on, how efficiently they operate, and how they are managed.
Name: Voithoffer, James
Date: Spring 2007
Major(s): Economics
Thesis Committee: S. Casler, A. Moskwa
Title: Energy Production in the US: Why Not More Coal?
Abstract: This project explores the relationship between the amount of coal consumed in the United States and several factors which are thought to be responsible for fluctuations in the amount of coal consumed. Ultimately, the goal is to make an inference as to whether or not coal can be responsible for the small percentage of electricity produced by oil in the United States, freeing up the oil as well as available technologies to find ways to reduce our dependence on foreign crude. The first chapter is simply an introduction to this issue. It presents the evidence that coal can, in fact, support our domestic energy needs if we chose to employ it. It also presents the environmental concerns people have about the use of coal burning, and the steps the coal industry has taken and continues to take to ensure the procedure is as clean as possible for the production process. The second chapter presents expectations of the model used in the project. It uses economic theory of the firm to predict what the outcome of the empirical analysis will be, and to illustrate the choice firms make about the combinations of inputs in the production process. This theory is then quantified in Chapter Three through a regression model using data dating back to 1960. The regression model is presented and analyzed in the given context of what will happen to coal consumption given changes in each of the respective independent variables. Finally, the fourth chapter is simply a conclusion of the project, making inferences and suggestions about what should happen in electricity production firms within the United States.
Name: Weinberg, Jonathan
Date: Spring 2007
Major(s): Economics
Thesis Committee: D. Goldstein, S. Martin
Title: A Case Study of the Microsoft Antitrust Case: Did the United States Department of Justice Get It Wrong?
Abstract: This case study examines the collision between the Sherman Antitrust Act of 1892 and a modern American corporate giant in Microsoft Corporation. Microsoft, investigated by the Department of Justice, was accused of violating acts one and two of the Sherman Antitrust Act. They violated these acts by possessing monopoly power and tying their Windows product to their Internet Explorer. At the close of the trial, Judge Penfield Jackson ordered that Microsoft be broken up into two separate companies. After appeal and before reaching the Supreme Court, the case was settled. The thesis of this case study is that the settlement of the case was not a harsh enough punishment for their crimes. The question of whether Microsoft was fairly punished for their violations will be explored. Other cases in antitrust history that have built a basis for antitrust will be looked at. This case study will also look at the two structures of thought regarding antitrust, being the Chicago School of Economics and the structuralist view. The opinions of economists on the Microsoft trial will then be explored.