Name: Abinosa, Jessica
Date: Spring 2008
Major(s): Economics
Thesis Committee: S. Casler, J. Wang
Title: The Structure of the Chinese Economy
Abstract: The comprehensive project begins with a Chinese translation of Chapter I and Chapter 5, which are the introduction and the conclusion of the paper. The project’s main objective is analyzing China’s current growth rates and trying to forecast whether or not the country’s high level of economic growth is sustainable. First, I will review China’s political and economic history in order to provide a deeper understanding of current conditions. Then, I will present key economic data for China, as well as a brief comparison between the data for China and the United States. I will also provide the theoretical model for determining potential GDP, and the various factors affecting changes in potential GDP. Using the data found in Chapter 2 and the theory provided in i! Chapter 3, I will formulate my own regression model for finding China’s potential GDP in Chapter 4. Finally, I will analyze the results of my regression model and make my predictions regarding China’s future economic growth.
Name: Ackerman, Dale
Date: Spring 2008
Major(s): Economics
Thesis Committee: J. Sickafuse, S. Martin
Title: An Analysis of the Household Demand for Variable
Abstract: Even though there is limited demand within the annuity market, some argue that demand is on the rise especially in regards to variable annuities. According to the American Council of Life Insurers, variable annuity gross sales increased from $3.5 billion to nearly $63 billion between the years of 1990 and 1999. With this considerable growth, this study serves as an analysis of the demand for variable annuities between the years of 2001 and 2004 using data from the Survey of Consumer Finances. The objective of this analysis is to determine whether or not there is still an increasing trend in demand for variable annuities. The study explores several important motives for households to purchase variable annuities and presents summary statistics on ownership patterns as well as support from logit regression analysis. On average, variable annuity ownership is discovered to be decreasing. Other findings confirm the prediction that variable annuity ownership is highly correlated with greater amounts of income and net worth. The study also discovers instabilities with marginal tax rate and risk aversion due to their negative effects on variable annuity demand. Although this study hypothesized that variable annuity demand was increasing and later found it to be decreasing, this analysis serves as a continuation into the efforts to explain trends in demand for variable annuities.
Name: Alper, Alexander
Date: Spring 2008
Major(s): Economics
Thesis Committee: S. Martin, A. Moskwa
Title: The Mortgage-Backed Security Crisis: Theory, Interpretation and Recommendations Based on Prior Relevance)
Abstract: The discovery of devalued mortgages-backed securities as forced the United States government and Federal Reserve to seek alternative options when securitizing mortgage payments. For many years, mortgage payments have been securitized and purchased on Wall Street to gain an expected interest. Around the same time, the burst of the housing bubble in the United States gave a shock to the global economy. Appropriate action and policy making decisions are crucial to revive our economy. Research in the historical context of previous financial crisis’s have allowed me to provide my own policy recommendations and what the United States government and Federal Reserve could have done differently based on prior situations such as the Great Depression and Japan’s stagnation.
Name: Astry, David
Date: Spring 2008
Major(s): Economics
Thesis Committee:
Title: Unionization and the Racial Wage Gap
Abstract: This paper examines unionization and how it affects the racial wage gap across black and white worker groups. Previous research and economic theory lead to the prediction that unionization will decrease but not eliminate the racial wage gap. A data set was obtained via integrated data and documentation from the March 2007 Current Population Survey, which contains additional exploration of earnings in the previous year in order to estimate income and work experience. Worker race and unionization presence were measured by dummy variables defined to suit the requirements of this study. Regression analysis was performed using variables of interest representing black workers and unionization, controlling for other relevant explanatory variables. Black workers were found to have a negative impact on wage level, while unionization increased worker earnings. Wage gap calculations revealed that unionization does result in the formation of a wage divergence between union and nonunion workers, though it does little to decrease the racial wage gap across black and white worker groups. Results were interpreted to suggest that either discrimination is still a significant source of racial wage disparity in our economy or that there may be distinct differences of skill level and human capital in workers by race.
Name: Astry, Kevin
Date: Spring 2008
Major(s): Economics
Thesis Committee: T. Nonnenmacher, B. Afrasiabi
Title: Poison Pills: Effects On Takeover Deterrence And Takeover Premiums
Abstract: The purpose of my study is to determine when poison pill defenses have deterrence effects on takeover and whether they have any effect on premiums offered in takeovers. I focus on flip-in / flip-over type poison pills in this study. To model a control contest with a poison pill present I create a game theoretic model. The backward- induction outcome of the model explains that poison pills have no deterrence effects on takeovers, while simultaneously increasing premium offers by increasing bargaining power. I explain these results and find that they are supported by some more recent studies. Since data on poison pill defenses and the adopting firms is not readily available I suffice my study with a review of past empirical research. I conclude that it appears poison pills offer little deterrence to takeovers and increase premiums paid in a takeover with the note that further more in depth research is necessary.
Name: Bailey, Christian
Date: Spring 2008
Major(s): Economics
Thesis Committee: A. Moskwa, B. Afrasiabi
Title: Global Outlooks and Economic Goals: Could Globalization Be an Effective Means to Attain Economic Goals?
Abstract: Starting with its newest wave in the 1980’s, globalization has been one of the most debated of modern topics. This paper takes a deeper look into the concept of globalization and the effects it has had and could have on important economic conditions of nations. Much detail is put into the process of explicitly defining both globalization and the goals of economics. Within this paper, emphasis is placed on theories of international economics and correlational relationships between a substantial number of variables.
Name: Baldauff, Natalie
Date: Spring 2008
Major(s): Economics
Thesis Committee:
Title: Made in China: An Examination of Foreign Direct Investment in the People’s Republic of China
Abstract: What draws foreign firms to China? Within the last quarter of a century, foreign direct investment (FDI) in the People’s Republic of China has increased considerably. Since its economy became more and more transparent to the rest of the world, large multinational corporations have flocked to China. The objective of this paper is to examine the determinants of foreign direct investment by foreign enterprises in China. While implementing the use of foreign direct investment theories and data obtained from previous studies, this paper concludes that foreign investment in China is influenced by government policies and regulations, exchange rates, inflation rates, natural resources, and geographical location.
Name: Ball, Craig
Date: Spring 2008
Major: Economics
Thesis Committee: T. Nonnenmacher, D. Goldstein
Title: A Case Study of the Effects of Vertical Integration in the Oil Industry
Abstract: The purpose of this paper is focused on analyzing the effects of vertical integration in the oil industry. The case study’s intentions seek out how the companies in the oil industry vertically integrate and how the theory of vertical integration compares to their integration. Standard Oil is one company that is analyzed. Its rise to the top and shear dominance over the industry was due to the company integrating along the lines of oil production, such as obtaining oil fields, refining, transportation, and marketing, in order to create an efficient system that would surpass all competition. After the break up of Standard Oil, the company was broken up along the lines of production to create many new companies that specialized in one area of production. The newly formed companies needed to integrate in order to maintain market share in the industry. As the industry grew in the 20th century, oil companies integrated abroad to tap into new markets in order to meet worldwide demand. Results find that Standard Oil, along with the oil companies in the 1920’s desired to decrease transaction costs in order to increase overall profit. Other results find that refineries sought out to assure themselves of a constant supply of crude oil in order to maintain production levels. Results like these are compared to the economic theory of integration in order to reach the conclusion in determining the effects of vertical integration in the oil industry.
Name: Baumbach, Kathryn
Date: Spring 2008
Major(s): Economics
Thesis Committee: D. Goldstein, S. Martin
Title: Corporate Social Responsibility’s Role In Creating A Positive Reputation Of The Firm
Abstract: Today’s advertising and marketing campaigns have seen an exponential influx in the amount of socially responsible concepts used to market corporations. From the Gap’s major partnership with the (Product) Red campaign for the Global Aids Fund to company’s such as General Electric working to reduce environmental impact through better products and business practices as expressed through their Ecomagination campaign, it has become evident that companies see these types of advertising as beneficial for the firm. This paper explores how the business theories of fit, core competencies, and competitive strategy work to incorporate corporate social responsibility into the framework of the company. The paper goes on to explore how once these building blocks are in place, it is easy to market the firm in a socially responsible manner in order to influence the image of the firm in a positive light. Through the research presented in the paper, it is evident that corporate social responsibility built into the structure of the company through these concepts is a better practice than a cover-up campaign of superficial social efforts. Statistical evidence of these theories are explored through three separate studies on the effect of CSR on the image of the firm.
Name: Black, Jason
Date: Spring 2008
Major(s): Economics
Thesis Committee: D. Goldstein, J. Sickafuse
Title: The Use of Performance Incentives in NFL Player Contracts
Abstract: Today’s sports fans perceive the salaries of professionals in popular team sports as being outrageous. I am interested in studying how and why performance incentives are negotiated into players’ contracts in the NFL. It is interesting to analyze the principal-agency theory to investigate how contracts have to be designed in order to provide the agent with incentives that make him act in the best interest of the principal.
Next, I will explore the relationship between the National Football League Players Association (NFLPA), team management, and players in relation to the Collective Bargaining Agreement (CBA) that governs negotiation of individual player contracts for all of the League’s players. I will continue to review studies and articles published in management and business academic journals such as the Harvard Business Review and Journal of Sport and Social Issues.
Finally, I plan on running a regression analysis to measure the change of one variable to see if it changes the results in the other variables. I am going to use the number of NFL teams (32) as my dependent variable in my regression and use the amount of incentives and base pay that is paid to the players as the independent variables. I will use the principal-agent theory and regression analysis to express why I feel performance incentives should have a stronger presence in today’s NFL player contracts. I believe that this will help increase not only player performance, but also the performance of the team, helping them win more games and earn a higher overall profit.
Name: Brannigan, Patrick
Date: Spring 2008
Major(s): Economics
Thesis Committee: T. Nonnenmacher, B. Afrasiabi
Title: Economic Effects of Airline Deregulation
Abstract: This paper examines the economic effects of the deregulation of the air transportation industry. Was deregulating the airline industry economically the right choice of the federal government with the signing of the Airline Deregulation Act (ADA) in 1978? This paper will address this question. Deregulation, among other things, has led to shorter routes and lower average fares for passengers. Market economics is driven by consumers (passengers). There has also been a remarkable increase in airline service and safety with deregulation. I will start by describing the history of the commercial airline industry and the Civil Aeronautics Act of 1938. In 1940, the Commerce Department’s federal civil aviation responsibilities were transferred to the Civil Aeronautics Board (CAB). Since the inception of the airline industry the government for decades imposed regulation. By regulating the airline industry it created a government-enforced airline cartel in an oligopolistic industry. Some 40 years later, on October paper is prepared in segmented chronological order of how the commercial airline aviation evolved, developed and progressed. The airline industry is radically different than it was prior to deregulation. Deregulation enabled liberalization of airline service and thus opening up new and better air service, traffic growth, economic growth and job growth for the world.
Name: Bouchard, Brandon
Date: Spring 2008
Major(s): Economics
Thesis Committee: J. Sickafuse, J. Golden
Title: Extensible Business Reporting Language and its Future in US Financial Reporting
Abstract: Several well-known corporate scandals have occurred throughout the last decade, and in response, the Sarbanes-Oxley Act of 2002 was created. Along with it came increased financial reporting costs for public corporations. Around the same time, a new financial reporting language was created, eXtensible Business Reporting Language. Its popularity has grown exponentially because of its increased efficiency and cost savings. Research will be presented to show these benefits, and a case study will be done using United Technologies and PepsiCo. The goal of this study will be to determine if the savings of XBRL can recoup the costs of Sarbanes- Oxley. Net Present Value, Cost of Capital, and the Capital Asset Pricing Model will constitute the methods used to prove the benefits of XBRL with large corporations.
Name: Brungo, Luke
Date: Spring 2008
Major(s): Economics
Thesis Committee: J. Sickafuse, A. Moskwa
Title: The Problem with Major League Baseball: A Study of What Causes Large Market Teams to Win and Small Market Teams to Lose
Abstract: The purpose of this study is to explore the economics of Major League Baseball and the problems it has with staying competitive. The study wishes to establish that being a larger market team gives an unfair advantage on the playing field. The use of player costs and total revenue for the teams that were active from 1990 through 206 are compiled and studied to see if there is truth to this statement.
Other factors of sports economics and decision making will be discussed throughout the paper. The study hopes to show a strong connection between player costs and winning percentage, and total revenue and winning percentage.
The results of the empirical study will be analyzed and interpreted in the conclusion.
Name: Byers, Lauren
Date: Spring 2008
Major(s): Economics
Thesis Committee: S. Casler, S. Martin
Title: The Determinants of Private Inventory Growth: An Empirical Analysis
Abstract: Since the mid 1980’s, increasing attention has been paid to the role of inventory management in stabilizing our economy. If stabilizing inventory investment can act as a stabilizer for our economy, then it would be useful to understand what economic variables influence the stability of inventory. The purpose of this project is to examine the role of inventory in our economy, and attempt to better understand the interactions of various economic variables and inventory investment. Using the Acceleration Principle, Theory of Investment, The Great Moderation argument and the advent of Just-in-Time inventory management I attempted to find areas where inventory investment was being influenced. With real inventory investment growth as my dependent variable and GDP growth, the unemployment rate, the interest rate, capacity utilization rate and personal consumption of goods and services as my independent variables, I ran a least-squares regression. The most significant result from this regression was the strong correlation between GDP growth and growth in inventory investment. These results were consistent with my predictions that fluctuations in GDP and inventory are closely linked with each other.
Name: Caplan, Derek
Date: Spring 2008
Major(s): Economics
Thesis Committee: T. Nonnenmacher, B. Afrasiabi
Title: Café Gelatohhhh! A Practical Application of Market Structure, Regulatory and Contract Theories in a Small Business
Abstract: In late spring 2002, a small business opened in Savannah, Georgia named Café Gelatohhh!. The firm’s chief good is the production and sale of gelato, fine Italian ice cream, with revenues further supported by the sale of cafes and espressos, paninis and salads. Through the years, the store has had cases of good luck and bad luck, a series of vignettes that, when strung together, form the history of the business. It is the purpose of this paper to take several of these vignettes and more directly tie them to economic principles and thoughts, with applications to industry and market structure, regulatory and contract theories.
Name: Cervone, Andrew
Date: Spring 2008
Major(s): Economics
Thesis Committee: S. Casler, J. Sickafuse
Title: The Determinants of Output Variations in the Dairy Industry
Abstract: The agricultural industry has played a very important role in the development of our history. A strong agricultural sector is not only necessary to supply food availability and raise nutrition levels, it is essential to our development process. The purpose of this study is to explore the agriculture sector in our economy, specifically the diary industry, by studying how the price changes in farm production affect total milk production. Since the 1970s, both input prices and milk output have been increasing. The empirical analysis was conducted using least square regression model to see how much correlation there is between these two occurrences. The model underlying this study is the economic model of perfect competition. Through this study, I show how price levels and other factors positively or negatively affect milk production in the agricultural industry.
Name: Coyle, Ian
Date: Spring 2008
Major(s): Economics
Thesis Committee: S. Casler, J. Sickafuse
Title: At a Glance: The United States Steel Industry Decline
Abstract: Through the years, American steel has endured remarkable change. The important role played by steel in the United States and the larger interdependent global economy makes the domestic industry’s decline a political economic event of great magnitude. This project proves the positive correlation between steel employment and steel output and argues that steel laborer’s demands for increased pay ultimately caused the industry’s collapse. Thus, the study’s dependent variable is steel labor input. Chapter One simply serves as an introduction. It discusses the motivation and structure for the study, briefly overviews the United States steel industry history, and justifies the procyclical nature of steel employment with the current economic condition. The introduction also raises several pertinent questions to be answered in later chapters. Chapter Two is devoted to discussing the study’s underlying economic theory, the theory of the firm/cost minimization, which serves as a means to explain the interactions amongst variables included in the study. This chapter also proves the positive correlation between steel employment and steel output and introduces factors such as gross domestic product, the current economic condition, the price of aluminum, the price of steel, the cost to employ steel labor input, the price of capital, steel output, and steel imports, which influence the demand for steel labor input. Chapter Three utilizes a multiple regression analysis and examines variables discussed in Chapter Two to show that a relationship exists between them. According to the regression model, gross domestic product, the price of aluminum, the price of steel, the price of steel labor, the amount of steel imports, and steel output conform to the predicted relationships discussed in Chapter Two. However, the dummy recession variable and the real interest rate stray from the presumed tradeoffs such that further discussion reveals exceptions to the economic rationale. The empirical results offer evidence in justifying the study’s hypothesis.
Name: Culleton, Annie
Date: Spring 2008
Major(s): Economics
Thesis Committee: B. Afrasiabi, T. Nonnenmacher
Title: Tobacco Regulation Policy and Its Effects on Consumer Demand
Abstract: Tobacco is one of the most heavily regulated substances in the United States. Since the 1950s, there have been a wide variety of regulatory policies put in place to help decrease the consumption of tobacco products. This paper takes a closer at the effectiveness of these policies in reducing consumer demand, focusing mainly on the Cigarette Labeling and Advertising Act of 1965, the Public Health Smoking Act, the effect of when the FDA gained jurisdiction over cigarette marketing and regulations were aimed at limiting youth cigarette access, the effects of the Indoor Clean Air Acts, and the use of excise taxation.
Building on the theory of consumer choice, a model was constructed and a least squares regression analysis was used in the empirical part of this study. The results of the least squares regression indicate that many of the regulatory policies in place do have the desired effect of lowering consumer demand, with youth policies, taxation, and indoor smoking bans being among the most effective. However, there are still some data and modeling problems which are briefly addressed, and suggestions included as to how these problems can be avoided in future studies.
Name: DelGreco, Robert
Date: Spring 2008
Major(s): Economics
Thesis Committee: T. Nonnenmacher, A. Moskwa
Title: Not Available
Abstract: The currently rapid growth of the Estonian, Latvian, and Lithuanian economies has garnered them international recognition as the “Baltic Tiger Economies”. This title is often associated with substantial economic expansion in developing countries over a significant time period. The Baltic countries’ position as newly independent and post-Soviet states makes their considerable economic development and “Tiger Economy” status interesting. While the Baltic region is enjoying a prosperous economic situation, other post-Soviet states throughout Eurasia have not been as fortunate. The objective of my project is to identify why the Baltic countries have been able to successfully create thriving economies post-Soviet occupation when this has not been universally standard throughout all of post-Soviet Eurasia, and what path the Baltic countries took post-Soviet occupation that resulted in their current economic situation.
To obtain these answers, I researched the history of the Baltic region, studied relevant economic theory regarding institutional and organizational change, and determined a specific industry to focus on that significantly influences the Baltic economy. The theoretical framework of New Institutional Economics (NIE) and modern theories on the role of nationalism in post- imperial nation building supplies a foundation for my theoretical framework. A study of the Baltic banking industries provides a specific organization to help outline the economic path of the region. The conclusion that I reached was that the common histories of the Baltic countries has provided them with similar notions of nationalism and national identity. These sentiments have influenced the Baltic people and their governments to strive for ascension into the Western economic community, rather than with their former Soviet neighbors. Ultimately, this Western inclination has provided the Baltic economies with vital sources of modern business knowledge and foreign investment, which is best illustrated through their banking industries.
Name: Fiscus, Whitt
Date: Spring 2008
Major(s): Economics
Thesis Committee: S. Casler, S. Martin
Title: The Effect of Income Inequality on the Poverty Rate
Abstract: Income inequality is a notable phenomenon in the United States economy of the late 20th and early 21st centuries. Does growing income inequality cause the rich to become wealthier and the poor to fall further beneath the poverty line? What other economic factors lead to higher poverty rates? Understanding the causes of poverty can help our society develop strategies to ebb this issue in the American economy. To further understand the causes of poverty, an overview of the theoretical determinants of poverty are reviewed. These include the labor market for skilled and unskilled workers, unemployment, social capital, human capital, and the labor-leisure model. Next, an empirical analysis is completed by using data gathered from the Economic Report of the President and the Statistical Abstract of the Census Bureau. The use of statistical techniques including a multiple regression allows this study to find how explanatory variables (inflation, Gini coefficient, manufacturing sector, service sector, school achievement, unemployment rate, presidencies, and recessions) influence the poverty rate. The conclusions made from the regression mirror that of the theoretical expectations, and it is found that poverty may not be a curable part of a society, but certain practices, such as non-discrimination and improved education, can help curb its growth.
Name: Frye, Erin
Date: Spring 2008
Major(s): Economics
Thesis Committee: S. Martin, J. Sickafuse
Title: The Effect of Welfare Reform and TANF options on Rates of Domestic Violence in Crawford County, Pennsylvania
Abstract: Research has shown that a significant amount of welfare recipients also encounter domestic abuse. In 1996 Congress passed the Personal Responsibility and Work Opportunity Reconciliation Act (PROWRA) which enacted Temporary Assistance to Needy Families (TANF). This effectively replaced the Aid to Families with Dependent Children (AFDC) program, originally part of the Social Security Act of 1935. This paper investigates through research, models, and empirical evidence whether the welfare reforms had an impact on the rates of domestic violence in Crawford County, PA. In Crawford County, PA the poverty rate is higher than the national average and although Pennsylvania has not kept record of domestic violence rates, Crawford County had a limited amount available making no conclusive evidence found to support the hypothesis.
Name: Garbutt, Jeremy
Date: Spring 2008
Major(s): Economics
Thesis Committee: T. Nonnenmacher, A. Moskwa
Title: The Existence and Advantages of Brand Communities: A Case Study of Apple Inc.
Abstract: Little research exists in determining the effects of a brand community. It has been shown that a brand name is a financial asset to a company, and that communities can form around a specific brand. This paper serves to combine the two ideas and examine the determinants and benefits of a brand community. Using Apple as a case study, the existence of a brand community proves to be a very powerful asset to a corporation, though a mysterious one. It is difficult to determine what causes a brand community to develop. There is yet to be an effective study to display or recreate the determining factors of a brand community. The paper takes the existing studies on the existence of brand communities and pairs them with real world information on Apple Inc. in an attempt to discover the existence and benefits of a brand community.
Name: Gaul, Jacob
Date: Spring 2008
Major(s): Economics
Thesis Committee: D. Goldstein, B. Afrasiabi
Title: The Profitability of Environmentally Friendly Technologies: The Energy Efficient Case
Abstract: The design of this thesis was to determine the profitability of environmentally friendly technologies in today’s economic world, with a particular focus on the companies that are producing energy efficient products. With the rising awareness in our world about energy efficiency, I believe companies who are already producing energy efficient technologies will be more profitable. In order to choose the companies I first examined standard economic strategy in comparison to newer energy efficient strategies. After examining and comparing classical and new age environmentally friendly business strategies I selected a group of 12 energy efficient companies from a Citigroup Study. I then selected 12 companies from the same sector for comparison. My hypothesis was that companies would have a higher EBITD Margin if they were producers of energy efficient technologies. I ran a least squares regression comparing company’s EBITD Margins to their total assets, year, and if they were producers of energy efficient technologies. I also did a nonparametric correlation to control for some of the extreme variables that I found in the model. My results showed that while a company’s total assets were a large determinant of a company’s profitability the production of energy efficient technologies were not.
Name: Geiger, David
Date: Spring 2008
Major(s): Economics
Thesis Committee: J. Golden, A. Moskwa
Title: Factors Affecting the Market Share of the Big Three and The Impact of Regulations on the Automobile Industry and Incoming Foreign Direct Investment
Abstract: This project examines the variables that affect the market share of the Big Three in relation to foreign competition. The project also looks closely at some of the regulatory history of the automobile industry, especially in the area of incoming foreign direct investment and the Voluntary Restraint Agreements with Japan, which affected the Big Three’s market share. This is first done by examining the history of the industry and regulations regarding foreign competition, especially that from Japan. Then a case study regarding the impact of incoming foreign direct investment (IFDI) from Japan on the Big Three’s market share and what brought this about. This study is interesting, as it turns out that the Big Three had a great deal of involvement in encouraging IFDI in the U.S. as a means of protecting themselves from competition from imports. The project also examines a theoretical model involving the effects of an import quota on the U.S. automobile market. A regression is done on four equations to determine the explanatory variables which affected the share of import sales to total sales in the U.S. The dependent variables considered are: import cars to total cars sales share, import trucks to total trucks sales share, and two represent import sales to total U.S. sales share, but the latter has an extra explanatory variable. The explanatory variables, which turn out to be significant, are: real GDP, real crude oil price per barrel, incoming foreign direct investment from Japan, and the dummy variable, which is a quota imposed on imports. These regressions all result in the variables being significant and all have acceptable R² values. It can be concluded that these variables all affected the Big Three market share in some way. The project gives a thorough analysis of the reasons for a drop in domestic market share, as well as presents models to help explain these effects. After examining this project, the reader should gain a better understanding of incoming foreign direct investments effects on the Big Three’s market share and the other variables which contributed to the declines in domestic market share.
Name: Gibson, Philip
Date: Spring 2008
Major(s): Economics
Thesis Committee: D. Goldstein, J. Golden
Title: Increasing Competitiveness in the Healthcare Industry by Integration of a Middleman
Abstract: The purpose of my senior thesis paper was to determine the feasibility of an incumbent, middleman company entering the health insurance and prescription drug markets and increasing the overall competitiveness of the industry. I have analyzed both of these sectors to determine if an increase in competition will result in decreased prices for the end users. My study covers industry backgrounds for both sectors along with the growing problems each of those sectors is facing. I use a literature review to support my findings and present credibility for my business plan. Finally, I have developed a business plan for my start-up company, InsuringUS.com. This business plan combines the theories from the literature review and puts them into a new incumbent firm that will strive to provide many of the 47 million uninsured Americans a chance for affordable and reliable health insurance.
Name: Ginsburg, Joanna
Date: Spring 2008
Major(s): Economics
Thesis Committee: S. Martin, T. Nonnenmacher
Title: Is it worth it? An Economic Analysis of the Wage Gap between Attendees of a Private College vs. Public College
Abstract: The decision to attend college has become almost second nature for many high school graduates. Furthermore, the question of whether to choose a private or public college is growing in importance. Some people believe that private schools offer greater benefits and are better than public schools, while others believe that paying the higher price to attend private school is not worth it. This study statistically analyzes the wage gap between those who attend private vs. public colleges in order to see if attending a private school increases future wages. From this, it also looks at whether or not that wage gap is enough to outweigh the higher price of private school. I hypothesized that those who attend private school would earn a higher wage and that the higher wage would be enough to outweigh the higher cost of the school. Using the human capital theory and other economic models I developed a regression model and ran a weighted least squares regression. The regression analyzed the effect of the independent variables for student characteristics, demographics, and costs, and studied their effect on the dependent variable, which was job salary. I focused on the effects of three key variables, which were SAT score, selectivity of the institution, and private or public. I found that while many of the variables did affect job salary in the direction that I hypothesized, many were not significant. So my findings were opposite of my hypothesis. However, though I found that there was not a significant increase in salary from attending a private school, I feel that there may be other reasons that one might choose a private school outside of wages. Overall, based on my results I feel that a student should choose a school where they feel they can succeed and increase their human capital, and this will be what increases their wages, not whether the school is private or public.
Name: Glauser, Garett
Date: Spring 2008
Major: Economics
Thesis Committee: J. Golden, A. Moskwa
Title:
Abstract: In 1995, the industry for early stage internet based companies began to grow exponentially. Venture Capital firms began investing heavily in companies with no profits with the hopes of a quick initial public offering (IPO) onto the stock market. An IPO for an early stage company almost guaranteed a high rate of return for investors because of the stock market’s unprecedented performance from 1995 until the peak of the NASDAQ Composite index on March 10th, 2000. Though the public equity market has witnessed many transformations on a daily basis, rarely have such drastic changes occurred in such a short period of time. Included is a detailed background regarding the ways in which the venture capital industry operates, taking into consideration the most pertinent aspects of investment strategy utilized by prominent venture capital firms. Following this inquiry, microeconomic models and regression analysis are used to identify the relationship between venture capital investment, the dependent variable, and various explanatory variables that affected the investment climate throughout the dot com era in the United States.
Name: Goetz, Adam
Date: Spring 2008
Major: Economics
Thesis Committee: S. Casler, B. Afrasiabi
Title:
Abstract: The purpose of this paper is to discuss Wesley Clair Mitchell’s cost-price theory of profit determination as a means of explaining business cycles in the United States and then put it to a test of accuracy with a least squared regression. This paper will lay a foundation of business cycles, and then it will move on to discuss Mitchell’s cost-price theory of business cycles in detail. In Mitchell’s theory, profits are the key component. For the experiment, the profits were converted in to real dollars and then into a growth rate. Then, a number of other variables that affect the profit margin will be chosen. All of the data of these variables will be gathered from The Economic Report of the President. After this, the variables will be put to test in a least-squared regression. The computer program that will be used to perform the least-squared regression is Eviews. The results of the least squared regression showed some promise. The majority of the independent variables affected profits in the way that they were expected to. Only one of the individual variables was shown to be statistically significant in explaining the changes in the dependent variable. However, we can conclude that the regression model as a whole was not statistically insignificant in explaining the changes in the dependent variable.
Name: Haque, Amal
Date: Spring 2008
Major(s): Economics
Thesis Committee: S. Casler, B. Afrasiabi
Title: Factors Affecting the Market Share of the Big Three and The Impact of Regulations on the Automobile Industry and Incoming Foreign Direct Investment
Abstract: The purpose of this study is to present a theoretical and empirical analysis of the wealth effect of stock market fluctuations. Traditional macroeconomic models estimate that a dollar’s increase in stock market wealth boosts consumer spending by 3-7 cents per year. Due to the stock market boom of the 1990s, the nature and magnitude of this wealth effect have been scrutinized by economists such as Sydney Ludvigson, Martha Starr-McCluer and James Poterba. This study focuses on the extent to which the stock market influences the consumption behavior of households. The theoretical basis for this paper is developed from the extensive work done by Milton Friedman and Franco Modigliani in association with Albert Ando and Richard Brumburg.
Additionally, three least squares regression models were used in the empirical section incorporating the life-cycle, permanent income and the intertemporal budget constraint models. In our regression analysis we designated consumption as the dependent variable, while using interest rates, household wealth, stock market index, housing price, disposable income, and population demographic as the independent variables. The results from the empirical analysis were generally consistent with previous work done in this realm of economics; however, one of the models suggested that consumption is not significantly influenced by certain independent variables.
Name: Heckman, Brandon
Date: Spring 2008
Major(s): Economics
Thesis Committee: S. Martin, J. Sickafuse
Title: Teacher Incentive Pay and the Effects on Student Achievement
Abstract: This study examines the effects of teacher incentive pay on student achievement gains. To test the effects of the incentive system, data was gathered from two similar Colorado school districts. One district implemented an incentive program that rewarded teachers for increasing reading scores on the Colorado Student Assessment Program (CSAP) and another neighboring district kept a consistent pay structure all throughout the study. A difference-in-difference estimator was run comparing both districts’ CSAP scores before and after the implementation of the incentive system. The estimator found that the incentive system in the treatment school increased CSAP reading scores by 0.048 points or a gain of 3.0% but was not statistically significant. Due to the inability to find two perfectly comparable school districts which could be used in the difference-in-difference estimator, an immeasurable source of error may have occurred.
Name: Horvath, Stephen
Date: Spring 2008
Major(s): Economics
Thesis Committee: D. Goldstein, B. Afrasiabi
Title: The Effects of Environmental Practices in Corporate America: An Investigation of the U.S. Chemical Industry
Abstract: The research for my project will focus on the importance of environmental practices in the business world. More specifically, do companies with better environmental commitment out perform rivals with a lesser commitment? Does pollution prevention methods align with company characteristics and expertise? This research investigates the environmental impact on twelve major U.S. chemical companies in order to study this phenomenon. The research was limited to the chemical industry due to its vast energy consumption (being the second largest industrial energy consumer) as well as their intensive efforts in pollution abatement.
Environmental performance will use various data including the Environmental Protection Agency’s Toxic Release Inventory. To normalize data, environmental performance will be presented as a ratio of pounds of toxic release per one dollar of sales. Company size will also be utilized as variable of interest. Financial performance will be as a ratio of Earnings Before Interest Depreciation and Amortization per total assets. The project will report on companies through a case study format regression analysis data.
Name: Jones, Amanda
Date: Spring 2008
Major(s): Economics
Thesis Committee: T. Nonnenmacher, A. Baskan
Title: Boeing vs. Airbus: A Theoretical and Empirical Analysis of Government Involvement in the Aircraft Manufacturing Industry
Abstract: Competition within the commercial aircraft manufacturing industry has evolved drastically over the past few decades. The consolidation of the industry into a duopoly leaves the American Boeing and European Airbus to compete viciously for market share in order to become the dominant firm. As a result of this rigorous competition, the impact, if any, of government involvement on the success of both firms has been publicly criticized in a subsidy dispute. The industry, as a strategic industry, is subject to government trade policy and industrial protection. Although the effect of government involvement is subject to much debate, this paper seeks to determine the role government plays in shaping the competitive nature of the aircraft manufacturing industry. By examining theoretical propositions in context of Bertrand, Cournot, and Strategic Trade Policy models, I explain the success of aircraft manufacturing firms in terms of economic and developmental factors, and demonstrate how government participation serves as subsidization in the promotion of these factors, and thus affects the success and competition within the industry. I find that Airbus and Boeing have been the recipient of large amounts of government aid that serve as subsidies in reducing fixed and variable costs, as well as production and financial risks. The multi-period models, such as strategic game theory, seem the most appropriate given the long run nature of the industry and product lines. Given that both firms are subsidized, the competition is most likely reduced to a prisoners’ dilemma, leaving both the U.S. and Europe with decreased welfare because of taxes, but increased welfare for consumers and a higher producer surplus.
Name: Kessler, Andrea
Date: Spring 2008
Major(s): Economics
Thesis Committee: T. Nonnenmacher, S. Martin
Title: The Subprime American Dream: An Analysis of the Subprime Mortgage Market and Regulatory Approaches to Curb Predatory Lending
Abstract: Over the past two decades, the rise in subprime lending has increased home ownership levels across the nation and has enabled many individuals to acquire the so-called American Dream. This social welfare gain has recently been overshadowed as the meltdown reveals the amount of predatory lending prevalent in the mortgage industry. As the market continues to unravel under increasing foreclosure and delinquency rates, society is demanding regulatory action. Economists and policymakers are currently attempting to devise a policy prescription that will aid those facing the short term effects of the meltdown and find a regulatory equilibrium that will deter future crises. How do predatory lending laws affect the supply of credit, especially to low-income and minority consumers? Is anti-predatory lending legislation achieving its goal of curbing predatory lending, or is it merely reversing the recent welfare generating benefits? Understanding the evolution of the subprime market can enable our society to develop strategies to curb the predatory lending flaw in the mortgage industry. To further comprehend the function of subprime lending and the cause of predatory lending, an outline of the theoretical determinants of predation is reviewed. Such factors include the changing structure of mortgage delivery, uneven distribution of information, signaling and the Lemons Effect. Following the theoretical assessment, empirical analyses using data from North Carolina’s subprime mortgage market and a law strength index are reviewed in order determine possible regulatory impacts on credit supply, borrower groups and non-bank versus traditional lending. Conclusions taken from the regression analyses are then used to evaluate current policy proposals of leading presidential candidates Senator Barack Obama and Senator John McCain. The overall conclusion suggests that predatory lending thrives through the existence of an asymmetry of information in the market and the unique construction of policy proposals can cause countervailing effects on the market. One effect is the increase in demand for subprime loans due to improved consumer confidence, while the other result is a reduction in credit supply to low-income and minority consumers due to tightened lending standards. Political initiatives must strike a balance between loan coverage/bailout, and regulatory restrictions in order to tackle the meltdown’s negative short-term effects, correct long-term market inefficiencies and prevent future crisis.
Name: Kouadio, Herman
Date: Spring 2008
Major(s): Economics
Thesis Committee: A. Moskwa, a. Baskan
Title: France and Unemployment: a case study
Abstract: This thesis is a case study about France and their struggle with unemployment in recent years. In this thesis, you will find information about France’s unemployment history from 1960 to 2007. You will also find the pattern of unemployment in the country. In addition, you will find the definition of unemployment and the different types of unemployment and also how unemployment is calculated in France.
In order to answer the question of why high unemployment has been such a struggle for France, I will discuss two ways the French government tried to reduce unemployment. The two ways are the 35 hour work week and the first employment contract. I will also discuss how effective or ineffective those two labor law reforms were. Moreover, I will talk about the French president, Nicholas Sarkozy and what he has done to make the French economy better.
I will also discuss France’s economic freedom, define the 10 economic freedoms and discuss the relationship between labor freedom and unemployment after running a regression. I will then discuss immigration and its effect on the unemployment rate in France and conclude this thesis.
The result of this study demonstrates that strict labor laws are the reason for France’s long struggle with unemployment.
Name: Laub, Walter
Date: Spring 2008
Major(s): Economics
Thesis Committee: A. Baskan, D. Goldstein
Title: Evaluating Hedge Funds As Viable Portfolio Diversifiers As Per Harry M. Markowitz’s ‘Modern Portfolio Theory’
Abstract: Harry M. Markowitz’s 1952 “Modern Portfolio Theory” laid the groundwork that would later become the standard in investment management, promoting sensible asset allocation and adequate portfolio diversification through portfolio inclusion of multiple imperfectly correlated asset classes. However, it is becoming increasingly difficult to find sufficient diversification opportunities as globalization continues and prices are dictated within an increasingly global marketplace.
In this time of decreasing suitable investment opportunities, alternative investments (this paper will deal with hedge funds in particular) are garnering allure because their returns are supposedly noncorrelated with those of the broader capital markets, making them ideal diversifiers. Hedge funds are thus increasingly represented as an essential allocation in one’s portfolio. However, with trillions of dollars worldwide flowing into these funds following the huge loss of capital from the technology equity market crash in the early 2000s and the dearth of safe havens at the time, the question must be asked: do hedge funds live up to their hype and truly exhibit performance independent of the stock market?
This paper will strive to identity which hedge fund strategies, if any, offer returns noncorrelated from those of the broader equity markets and how they achieve this feat, be it through derivatives, arbitrage, hedging, the ability to sell stocks short, use of leverage, or some combination of these techniques. Modern Portfolio Theory will also be visited in detail to appreciate the full role diversifiers play within a portfolio.
Name: Letizia, Alexander
Date: Spring 2008
Major(s): Economics
Thesis Committee: T. Nonnenmacher, D. Goldstein
Title: An Analysis of the Relationship Between Aggressive Growth and Diversification Strategies and the Subprime Losses of American Banks
Abstract: This paper examines the relationship between aggressive growth and diversification and the subprime losses experienced by some of America’s largest banks. Since the 1960’s mergers and acquisitions have led to consolidation in the banking industry. The stated rationale for these mergers was to achieve higher levels of cost efficiency through economies of scale and scope. However, the waves of mergers and acquisitions over the past half century may have led to diseconomies of scale. During 2007, the banks that grew and altered their business segments the most quickly through frequent mergers and acquisitions also experienced the greatest subprime losses. This study reveals evidence supporting positive relationships between rapid growth and diversification strategies and subprime losses. To further examine the reasons for subprime losses, this study also considers the possibility of the subprime mortgage crisis, being an unforeseen, industry-wide phenomenon. The paper concludes by identifying other possible causes for the crisis, as well as the actions to be taken to minimize further damaging effects.
Name: Lieb, James
Date: Spring 2008
Major(s): Economics
Thesis Committee: S. Casler, J.Golden
Title: The Determinants of Coal Demand in the United States
Abstract: Throughout this composition paper, the main topic will be on how the determinants of coal affect the demand for coal in the United States. With oil prices being one of the main issues in the U.S., along with the war in Iraq, and environmental issues, coal consumption get overlooked. What many people may not know is that coal is the leading fossil fuel in the United States when is come to the creation of electricity throughout America. The variables used in this model which have an affect on coal consumption consist of the prices of coal, the prices of two substitutes such as oil and natural gas, and also gross domestic product. The consumption of coal is not going to slow down over the next thirty years according to the Energy Information Administration; therefore it is important to understand what has an affect on coal regarding its demand after a change in one of its determinants. This study is not the only way to study how coal is consumed in America with respect to the related variables in this composition. However these variables give a close representation of coal consumption in the United States during this current time in history.
Name: Lytle, Barbara
Date: Spring 2008
Major(s): Economics
Thesis Committee: A. Baskan, S. Martin
Title: An Overmedicated Nation: The Examination of Certain Socioeconomic Factors and their Relationship to the Overuse of Psychotropic Drugs
Abstract: Mental health in the United States is showing alarming trends that if continued to go unaddressed, could result in a nation dependent on medication. The drastic increase in the diagnoses of mental disorders in the United States is troubling at best, and is begging for attention. From an economics perspective, this paper will analyze the socioeconomic conditions of today’s world and their relationship with the increased demands for psychotropic medication. Economics is the study of the allocation of scarce resources in a world with unlimited wants. Human labor capital is one such resource that is in continual demand. Our economy’s desire to efficiently use this resource is causing humans to go to great lengths to become more productive, and more efficient. This paper will show several correlations between medication and the need to achieve this insatiable desire for increased productivity.
Name: Mahan, Michael
Date: Spring 2008
Major(s): Economics
Thesis Committee: D. Goldstein, B. Afrasiabi
Title: The Profit-maximization Approach of the Wal-Mart Corporation in its Ethical Practices Among its Employee Stakeholders Stakeholders
Abstract: The piece examines the Wal-Mart Corporation and their ethical practices regarding its employees over the past forty years. The argument set forth is addressing the ethical approach the company should take to maximize their profitability. In recent years, the company has been the target of heavy public scrutiny based on its poor ethical stances, in particularly its treatment of its employees. The article will address where and how the company went astray and what can be done to right the ship. Supporting my argument will be such managerial ideologists as Larue Tone Hosmer, Lynn Sharp Paine and Michael Freidman, to name a few. Economic theories such as the theory of the firm, consumer theory and stakeholder theory will accompany the aforementioned economists’ views. The object of the piece is to examine the vitality of business ethics in the managerial world. The reader will uncover the costs a firm undergoes when ethics are overlooked, and on the contrary, the rewards when they are brought to the fore. Throughout the article, one will discover that the prevalence of Wal-Mart lacking on its ethical behavior is directly correlated with the financial falter of the company among its competitors in the industry.
Name: Marburger, Sara
Date: Spring 2008
Major(s): Economics
Thesis Committee:
Title: The Evolution of Exchange In Pre-Coinage Greece
Abstract: Even from very early times the institution of money has been an essential component in organized economies. This idea of exchange practices in Classical Greece was represented by coinage as part of the monetary system. This system is the result of many stages of economic development throughout the ages. This evolution finally brings us into the Classical Period of Greek history, where a more detailed examination of coins can be made.
This study intends to determine the origins and development of coin usage in ancient Greece. Coinage as a monetary system is an idea that has been evolving in Greece since pre-historic times. This evolution of exchange is the progression of pre-coinage monetary practices. These practices progressed throughout ancient Greek history, each stage improving upon its predecessors. Each of these stages had its own set of contributing factors, all within its specific period. These factors are derived from the social and environmental conditions of Greece during its stage. Because money is a social institution, it was connected to these conditions, making them very influential. Money is the product of this evolution of methods of exchange which were each products of the conditions belonging to their time period.
From the examination of this information, we can see underlying details behind Greek adoption of coinage. Each evolutionary stage provides a historical account of the emergence of coins. The conditions of each period in Greek history tell a story of why this progression
towards coins occurred and sets the stage for this new monetary system. To determine the details of these issues would be to understand the origin and development of Greek coinage.
Name: Matz, Nicolas
Date: Spring 2008
Major(s): Economics
Thesis Committee: S. Martin, J. Sickafuse
Title: Determinants of Salaries for MLB Athletes: An In-Depth Analysis of Variables that Affect the Value of MLB Salaries
Abstract: Major League Baseball produces some of the highest paying contracts in sports history. During the process of this study, Alex Rodriguez signed a record-breaking 275 million dollar contract over a ten-year period. The purpose of this study was to explore the salary determinates of MLB players, specifically find which variables that most affect the value of salaries in MLB. A least squares regression is used in the empirical section of this study to answer the research question. The data consisted of 254 observations from MLB. Many different independent variables were used in the regression equation, including direct productivity variables, market variables, award variables, and player specific variables such as age. The dependent variable in the regression was salary. Two regressions were formed from the data; the second specification includes a runs created productivity measurement created by Bill James. After the results were analyzed, there were many independent variables that significantly affected salary, but it was found that all star game appearances had the largest positive impact on salary, increasing salary $581,509 for every additional all star game appearance in the second specification. The second specification overall was a better model and nearly all the independent variables had their expected signs. In conclusion, there are many different variables that help determine salary, and not one single variable can be pinpointed when examining the value of MLB player’s contracts.
Name: Maytum, Kristopher
Date: Spring 2008
Major(s): Economics
Thesis Committee: S. Casler, B. Afrasiabi
Title: Consumer Preferences, Utility Maximization, and the Demand for U.S. Automobiles
Abstract: The purpose of this paper is to analyze the U.S. Automotive Industry as it has developed and changed since 1972, and look at how automobile demand is affected by the prices of other goods, real GDP growth, and population growth while accounting for recessions. The consumer side of the industry is explained in terms of microeconomic consumer preference and utility maximization theory. Today, the automobile industry faces new challenges because of increased prices of other goods and increased competition from foreign competitors.
The following major points are made. First, the theory of the consumer is discussed to show how it affects the demand side of the automobile industry. The focus here is on consumer preference and utility maximization. Utility maximization theory is presented to the reader in a mathematical approach.
Regression analysis is used to determine what influence the independent variables like the real price growth of other goods, real Gross Domestic Product growth, U.S population growth, and real automobile import growth, have on the dependent variable, U.S. motor vehicle growth. Data from the regression is presented in table form from Eviews, and is also presented in growth plots.
Finally this paper then concludes by explaining the effects that income, price of automobiles, and the prices of other goods have on consumer’s choice. Specific goods that are examined include food, housing, and transportation. All of theses good’s prices have important roles in the consumer’s demand of automobiles and motor vehicle growth.
Name: Meyers, Lee
Date: Spring 2008
Major(s): Economics
Thesis Committee: S. Onyeiwu, C. Allison
Title: When You Build It, Why Do They Come? A look at the developmental process of successful technological innovation
Abstract: New and successful product and system innovations are being developed everyday. One only needs to think for a few seconds before coming up with an everyday necessity that no one could have imagined 5 years ago, but where are these new products and ways of doing things coming from? This paper intends to explore the key elements behind successful innovations and look at a more accurate model that can help to understand the pathway of innovation. Many have argued over whether the market demand or new scientific knowledge is the root to innovation. A review of these current theories and others will be discussed in chapter two. Following this discussion, a new theory will be presented and further examined in a case study on the innovation we all know of as the microwave oven. Finally, the concluding chapter will look at possible implications that the proposed theory could have for a business-world that is constantly seeking the next ‘big thing’ in innovation.
Name: Pegher, David
Date: Spring 2008
Major(s): Economics
Thesis Committee: D. Goldstein, J. Sickafuse
Title: Strategic Performance Management and the Case of the Giant Eagle Business System
Abstract: Giant Eagle is a privately owned retail supermarket chain prominent in the North Atlantic region of the United States. In 2003 the company adopted the Toyota Production System (TPS) and began applying its principles throughout various lines of business within the company. This study examines the effect(s) of the transition Giant Eagle has made from a former command and control style of management to the decentralized management style of the Giant Eagle Business System, or GEBS, and the impact this change has had on the attitudes, behaviors, and capabilities of employees within the firm. Furthermore, it explores the connection between employee attitudes, behaviors, capabilities and organizational performance through the capabilities and behavioral theories of the firm. The relationships are subsequently tested through a series of hypotheses that are analyzed according to the results of employee surveys. Statistical analysis of survey results will aid in explaining how attitudes, behaviors, and capabilities are influenced by firm specific management strategies and are important predictors of organizational performance. The extent to which such management systems can positively affect these variables will determine the degree of individual firm competitive advantage and the ability to sustain that advantage.
Name: Quinn, Stephen
Date: Spring 2008
Major(s): Economics
Thesis Committee: S. Casler, T. Nonnenmacher
Title: The Determinants of Supply and Demand Model Affecting the Dow Jones Industrial Average
Abstract: The following study examines variables of the supply and demand functions that may affect the Dow Jones Industrial Average. There are five major factors in the demand curve and three major factors in the supply curve that cause these curves to shift. It is anticipated that these shifts could influence the Dow Jones Industrial Average. If these factors shift the Dow Jones then anticipating problems in the economy potentially avoid the lag in fiscal and monetary policy.
Name: Rich, Eric
Date: Spring 2008
Major(s): Economics
Thesis Committee: S. Casler, J. Sickafuse
Title: A Theoretical and Empirical Examination of the Determinants of Growth in the Residential Constr
Abstract: In 2006, the high expectations for the housing market deteriorated and a downward trend of residential investment was initiated. By determining the significant economic factors that influence the growth of residential investment, insight would be granted into possible remedies to the crisis. The purpose of this study is to display how elementary economic theories can be applied to indicate the significant economic factors that influence the residential construction industry by using multiple regression analysis. The theories presented include the theory of profit maximization, the supply function and optimal supply and constrained utility maximization. The mathematical groundwork of each theory is presented to illustrate the theoretical relationships that are used to predict the effect of variances in certain economic factors on the growth rate of residential investment. Through regression analysis, it was determined that the growth rate of real GDP, the growth rate of the price of labor, the growth rate of the price of rent of a primary residence, adult population growth and the real interest rate are economic factors that have a significant influence on the growth rate of residential investment. By determining the economic factors that wield significant influence over the economy’s level of residential investment, monetary and fiscal policies based on altering these economic factors to increase residential investment can be proposed. Decreasing the interest rate, tax cuts for consumers, guarantees of loans for low income individuals, and government wage subsidies paid to residential construction firms are the study’s policy recommendations to alter the significant economic factors of the model in order to stimulate growth in residential investment.
Name: Rodgers, Robert
Date: Spring 2008
Major(s): Economics
Thesis Committee: S. Casler, B. Afrasiabi
Title: The Determinants of Real Investment Growth
Abstract: The purpose of this paper is to examine the determinants of investment, specifically in fixed non-residential durable equipment, in the United States. Using data from the years 1959-2005, a regression has been executed to determine which variables have the largest impact on investment fluctuations in the economy. The variables used in this regression study are the real interest rate, real GDP growth net of investment, investor confidence growth, real technological growth, real wage growth, and the growth of the price of capital. Various theories explaining these variables are discussed, with a primary focus on the accelerator model. A multiple regression incorporating all of the variables was then run to measure the effects of the determinants on investment. After analyzing the results of the regression, it is clear that real GDP growth net of investment is the strongest factor in determining investment growth. The study concludes by discussing the implications of the findings and recommendations to increase investment growth, including increasing output and lowering interest rates.
Name: Rotoloni, Rebecca
Date: Spring 2008
Major(s): Economics
Thesis Committee: S. Martin, J. Sickafuse
Title: Women in the Economy: An Analysis of the Influencing Factors on Women’s Labor Force Participation Rates
Abstract: As women have begun to integrate themselves into the U.S workforce over the past decades, their participation rates and the influencing factors have sparked interest in the economic world. Many factors play a significant role in influencing whether a woman enters into the labor force or not. A large issue that affects women more directly than men when making labor force decisions is fertility decisions. The purpose of this paper is to examine what factors influence women’s participation rates, particularly how children affect a woman’s decision to work or not.
In order to perform this study I collected data from the Integrated Public Use Microdata Series (IPUMS) website, which collects and preserves data from the U.S. Current Population Survey. This data set was used to run multiple regressions to analyze how variables, such as marital status, wage rates and children influence women’s participation rates. This paper concludes with a discussion of childcare policy and a brief comparison of policy across countries.
Name: Salera, Matthew
Date: Spring 2008
Major(s): Economics
Thesis Committee: D. Goldstein, J. Sickafuse
Title: The Stakeholder Model of Corporate Governance as the Solution to Pressure from the Principal-Agent Dilemma in the Form of Stock Options
Abstract: The shareholder and stakeholder models of management became two different styles that evolved in business, and tried to achieve the same goals of firm success. Stock options presented a very quick way to align the interests of the owners with the managers, regardless of management styles. As the economy hit boom periods at the latter end of the 20th century, many corporate scandals began to emerge. The scandals gave way to information dealing with executive compensation and the excessive amounts of stock options that were being received.
For this study, ethical and fraudulent companies were examined to determine if excessive stock option use was more prevalent in the fraudulent companies, and ultimately to understand if stakeholder management is better suited to handle pressures from the principal-agent dilemma in the form of stock options. Two variables, salary as a percentage of options, and remaining dollar value of firm ownership, were used in a logit model to determine the significance towards corporate fraud. The results lead to further questions about the different styles of compensation and how they affect corporate performance.
Name: Sloan, Eric
Date: Spring 2008
Major(s): Economics, Modern Languages
Thesis Committee: T. Nonnenmacher, N. Smith
Title: The Cultural and Economic Effects of Spanish Football, Past and Present
Abstract: For my Senior Project, I had to combine my two majors, Economics and Spanish. There are two parts to this project. First there are three chapters written in English about the current economics of football in Spain. The lack of regulations in the league is also presented and this results in a system representative of a monopoly. Also, the European system of football is presented and the league in Spain is compared to the rest of the leagues around Europe.
There is one chapter in Spanish that investigates Franco’s rise to power and the effects on the economy and football throughout his reign. This chapter is more cultural and the chapters written in English have more empirical data. The two parts, however, connect in various ways and give a full understanding of how football has affected the economy and culture of Spain the past and present.
Name: Smith, Eric
Date: Spring 2008
Major(s): Economics
Thesis Committee: S. Martin, A. Moskwa
Title: A Study of the Effects of the Implementation of Technology in the Manufacturing Industry on Unskilled Workers from the late 1970’s to the Early 2000’s
Abstract: This paper uses data from the manufacturing industry to identify the effects of technical implementation on the unskilled labor sector within the industry. Past research finds that skilled workers and technology are more complementary than unskilled workers and technology. Previous studies also suggest that the integration of technology leads to a decline in positions available for unskilled/production workers. Despite the preceding research, this study finds that variables used to indicate technology have positive effects on the employment of unskilled workers. The results, however, must be interpreted with caution because there is likely to be unaccounted for errors such as multicollinearity.
Name: Stutzman, Andrew
Date: Spring 2008
Major(s): Economics
Thesis Committee: T. Nonnenmacher, A. Moskwa
Title: Valuation of On-Field Baseball Performance: A Sabermetric Approach
Abstract: Not Available
Name: Sullivan, Shane
Date: Spring 2008
Major(s): Economics
Thesis Committee: S. Casler, J. Golden
Title: Medical Care Consumption in the United States Macro Economy
Abstract: This paper explores the increasing medical care consumption in the United States macro economy. Over the past 50 years in the United States consumption and prices of medical care have continued to rise. This paper looks at the many factors that have enabled this to happen. The theory of the consumer and regression analysis, allow one to gain a better understanding of his growing problem. Through different economic studies it becomes apparent that there are possible solutions. To address this issue public officials and policy makers must continue to work with economists to construct a possible plan to stabilize the increasing medical care prices. As the upcoming election approaches, candidates need address this problem wholeheartedly and continue to apply pressure to make the necessary changes.
Name: Taormina, Anthony
Date: Spring 2008
Major(s): Economics
Thesis Committee:
Title: Green Tier Solutions Starting a Business in the Sustainable Construction Industry
Abstract:
Name: Toner, Andrew
Date: Spring 2008
Major(s): Economics
Thesis Committee: D. Goldstein, J. Golden
Title: Consolidation in the Steel Industry
Abstract: The purpose of my paper will be to take an in-depth look at the forces that drive steel firms to consolidate with one another in United States. I will test that there are three main forces: lowering cost structure, improving technological advantage, and decreasing the number of firms in the industry. I will be analyzing two scholarly articles, one by Michael Porter and one by Lucia Piscitello, to back up my hypothesis. To test my hypothesis, I will examine five different steel companies from the U.S. and see what factors affected them. After testing my hypothesis, I will know what factors are affecting the steel industry as well as see how consolidation will affect the industry in the future.
Name: Trembulak, Joshua
Date: Spring 2008
Major(s): Economics
Thesis Committee: D. Goldstein, A. Moskwa
Title: Ethics and the Environment in Small and Medium Size Corporations
Abstract: The Purpose of this research paper was to see if Small and Medium size enterprises (SMEs) are more ethical than large firms in dealing with the environment. Longnecker’s theory of small firms was used to create the hypotheses and Hosmer’s definition of moral problems was used in deciding what would be used as ethical and unethical. Chapter 1, introduces the research question and relates this question to a larger issue today which is the presidential election. Chapter two, is a literature review of what economists have done pertaining to SMEs and their use of ethics in dealing with the environment and other issues. Chapter 3, includes my empirical evidence that shows that neither employee number nor industry that the firm is in correlates with the number of violations a firm has incurred. Chapter 4, brings all of the information gathered together and relates it to the larger issue at hand. Also this chapter gives ways to further advance this study.
Name: Villa, Mateo
Date: Spring 2008
Major(s): Economics
Thesis Committee: D. Goldstein, J. Sickafuse
Title: A case study in the application of industrial ecology: Woodcraft Industries Inc. CHP feasibility study
Abstract: Manufacturers in the United States are being forced to look for solutions to problems stemming from increasing international competition, rising energy and raw material costs, and growing environmental concerns. This study examines a specific application of industrial ecology as a partial solution to these problems and a source of competitive advantage. The study will thoroughly outline the concept of material and energy exchange that is the foundation of industrial ecology. The tools necessary for making a determination of the economic feasibility of an industrial ecology project will be discussed. Using a calculation of project net present value, the study will determine the economic feasibility of a specific case of combined heat and power generation using a biomass waste stream as a fuel source. The case study will outline and discuss the project feasibility of three power generation installations of varying size at a local manufacturing firm. Conclusions about the application of industrial ecology in the manufacturing and other sectors will be drawn and discussed.
Name: White, Melissa
Date: Spring 2008
Major(s): Economics
Thesis Committee: J. Sickafuse, J. Golden
Title: One Hot Cup Of Coffee: Explanation For The Trends In Starbucks Stock 1992 – 2008
Abstract: Starbucks Corporation is the leader in providing specialty coffee drinks and whole bean coffee to customers the United States. The company’s stock price climbed over 5000% from its Initial Public Offering in June 1992 to about the middle of 2006. This was due to an increased number of stores opening and higher Earnings per Share in each consecutive year. By mid-2006 Starbucks had oversaturated the market and started seeing heightened competition from places such as McDonald’s and Dunkin Donuts. Starbucks’ stock price has continued to drop further and further since about August 2006. To examine why, the economic theory of Supply and Demand was brought into play, as were two regressions involving Number of Stores and Earnings per Share. Theory explained the simple aspects such as quantity demanded and quantity supplied in relation to price of stock, while the regressions served to further Stores/Earnings per Share and stock price. A strong relationship was found between Number of Stores and stock price, while a very weak relationship was found between Earnings per Share and stock price. From the regressions, the only variable that strongly explains the trend in stock price is the Number of Stores. Starbucks’ stock price should therefore implementation of the initiatives Howard Schultz outlined at the shareholders’ meeting on March 19, 2008.
Name: Whiteside, Joshua
Date: Spring 2008
Major(s): Economics
Thesis Committee: A. Moskwa, J. Golden
Title: Globalization And The Environment: The Roles Of Foreign Direct Investment And Trade On Global Levels Of Nitrous Oxides, Sulfur Dioxide And Methane Gas
Abstract: One of the most heated debates in both the business and environment worlds is the topic of globalization. What are the causes and effects of globalization’s economic forces on the environment? How can humans gain control of these forces to shape our environment? And most importantly, are the effects of globalization positive or negative with regard to the environment? By studying the history of globalization, past causes and effects, and the theory of the environmental Kuznets curve, it is possible to make predictions about the outcome of the relationship between globalization and the environment. In this study, I seek to determine the effects of foreign direct investment and trade on global air pollution levels of nitrous oxides, sulfur dioxide, and methane gas via regression analysis. I find that foreign direct investment has no significant impact on global levels of the three gases, suggesting that there are more powerful forces of globalization shaping the environment. I also find that trade lies just on the border of significance, leading me to conclude that while it may be acting negatively on the environment, there are simultaneous forces acting in opposition.
Name: Wilcox, D.
Date: Spring 2008
Major(s): Economics
Thesis Committee:
Title: Renewable Energy: Wind is the Wave of the Future
Abstract: Throughout this composition, the wind energy industry is studied in comparison with traditional forms of energy. The historic beginning of wind energy is analyzed as the installed capacity has grown immensely, particularly over the last couple of decades. The installed
capacity was essentially zero megawatts in 1980 and recently surpassed the 20,000 megawatt mark in the third quarter on 2008. The United States, and the world, are facing an energy crisis and must be proactive in the transformation to renewable energy in order to decrease foreign oil
dependence and global warming. As a modern renewable energy source, the cost of wind energy is still higher than the traditional forms of energy. Therefore, taxation and subsidization have a major effect on the real cost of wind energy. In order to promote the development of wind energy, there must be subsidization to reduce the high initial construction costs associated with the equipment. In addition, to reduce the use of traditional forms of energy, taxation must be used to increase these costs for fossil fuel plants and even the playing field for renewable energy. Pennsylvania has played an important part in the transformation to wind energy, despite having a limited resource of wind potential. The state has been very proactive in the goals set by the Renewable Portfolio Standards and the numerous subsidies, lump sum and per unit, to really push for the use of wind energy. The conclusions developed have shown that subsidization, taxation and especially government involvement are together integral in developing wind energy as a viable energy source.
Name: Wilkie, Christopher
Date: Spring 2008
Major(s): Economics
Thesis Committee: S. Casler, S. Martin
Title: A Study of the Male Labor Force Participation Rate
Abstract: Since the beginning of the American Economy, the labor force has been one of its most researched aspects. The purpose of this paper is to explore carious changes in the labor force participation rate of men and see how an assorted number of variables affected it. More specifically, I seek to examine the significant changes to the labor force participation rate of working aged males over the last fifty years. I used a least squares regression model for the empirical analysis. The underlying theory for this study is the theory of how the labor market operates, and how decisions are made in the work world. Male labor force participation has been an interesting topic of discussion over the last half century because of the women’s rights movement. Scholars have debated how this willingness to work has affected men, and what it will do to the future of out labor force.
>Name: Woodward, Charles
Date: Spring 2008
Major(s): Economics
Thesis Committee: T. Nonnenmacher, S. Martin
Title: Unions and Minority Workers: Do Unions Discriminate
Abstract: A union is an organization of workers joined to protect their common interests and improve their working conditions. Different unions protect their workers in various ways. Unions have throughout history gained a reputation of discriminating against minority workers. This senior comprehensive project shows many of the most popular unions throughout history and how they did or did not discriminate against minority workers. Furthermore I talk about how unions today no longer have any evidence of discriminating. Additionally this paper uses Gary Becker’s model of labor market discrimination to analyze discrimination in the general workforce. After taking a close look at Gary Becker’s model of labor market discrimination I will examine research done by James Peoples Jr. which builds onto Becker’s model of labor market discrimination. Peoples’ research investigates the effects of unionizing monopolies and explores how this would affect Becker’s model. Finally conclusions are developed in which the results of Peoples’ research are discussed along with why unions are no longer discriminatory.