Business and Economics

Albinson, Brett

Title: The Economic Impact of Sports Stadiums on Surrounding Local Economies
Date: Spring 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: American taxpayers heavily subsidize professional sports leagues and teams in the construction and renovations of sports stadiums through direct and indirect public funding. Today, in what is being referred to as a, “sports stadium construction boom,” the amount of public funding for stadiums far outweigh the private investments of teams. This study is centered on the idea that is often sold to taxpayers on this issue, “Residential property values in the local community will increase with the construction of a new sports stadium.” Secondly, this study aims to take into account the “civic pride” which could be a byproduct of the construction of a sports stadium. In order to do this, Home Values are examined in Arlington Texas, home of AT&T Stadium where the Dallas Cowboys play. The study concludes that there is little to no evidence to support the notion that there has been an increase in housing value in a close proximity to AT&T stadium. In addition to this, there is little to no evidence to suggest the existence of civic pride caused by an NFL sports stadium in Arlington Texas.

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Barclay, Nicholas

Title: How Total Asset Size Impacts Commercial Bank Financial Performance
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: Commercial banks are crucial pillars of economic and financial stability in a society. This research analyzes the impact American commercial bank asset size has on financial performance. More specifically, this work investigates the variability of firm ROA as it relates to changes in asset size across commercial banks. This information could be useful to both commercial bank leadership when executing management strategy and investors seeking to predict firm profitability. Through multiple regression analysis, it was determined that total asset size within a commercial bank is not a key factor that impacts ROA. The results of the regression analysis suggest that how a firm acquires its revenues is a better indicator of future performance. Specifically, the more non-interest income that a firm generates, the better it will perform. Non-interest income is generated from consumer and account-related fees. The clear implications here are that commercial banks should focus heavily on non-interest revenue generation, and investors seeking returns should put capital into banks that focus less on lending.

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Barrett, Brett

Title: Higher Education: Examining the Long-Term Financial Effects of Student Debt
Date: Spring 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: The objective of this study, with both theoretical and empirical analysis is to inspect the effect of student debt on a household, using the four main indicators of financial health. These indicators are; 1. Asset accumulation, 2. Net worth, 3. Retirement accounts, and 4. Total vehicle and home and values. This study continues work done by the Federal Reserve’s Survey of Consumer Finances, in which they were able to find some correlation between education debt and the aforementioned indicators. Using the data taken form these surveys, the empirical results suggest that any level of student debt will negatively influence all four of these indicators. Across all four regressions conducted, the correlation between student loans and these signals of financial health were all statistically significant. Furthermore, these results can be used to explain a wide variety of demographic variables and there effects on these indicators as well.

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Bauer, Bethany

Title: Foreign Aid in Haiti
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: This senior paper aims to investigate current theories surrounding foreign aid distribution through the lens of the island nation of Haiti. Applying some parts of these theories to the coffee industry in Haiti, I examine how foreign aid has affected the country of Haiti, and whether or not current theories can successfully explain the country’s development. In the French language chapter, I examine the perception of foreign aid practices and native views on non-governmental aid agencies in Haiti through the examination of Haitian newspaper. I looked specifically at the Haitian newspaper, Haïti en Marche, a publication based in Port-au-Prince. The focus is upon the cholera epidemic in Haiti and the U.N. fallout after the disease was linked to camps of U.N. peacekeeping soldiers.

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Blank, Zachary

Title: Policy and the Supply of Transplantable Organs
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: With advances in modern technology, specifically the invention of immunosuppressive therapy, transplanted organs are less likely to be rejected, making the process less dangerous for the patient. In the U.S., the gap between supply and demand is growing, causing economists, policymakers, and doctors to consider different policies in order to increase organ supply. These policies include changes in legislation, educational efforts, and the creation of an organ market. In this paper, I examine what options are out there in order to make a recommendation for the U.S. based on economic theory, data, and surveys. Based on statistical tests, case studies, and economic theory, I recommend that the U.S. approaches organ donation from an educational standpoint because the research shows that preferences toward organ donation greatly affect public opinion on the matter. From here the legislative model must be adjusted in order to make registering as an organ donor easier and more accessible.

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Boarts, Alex

Title: Analysis of the Determinants of FDI: The Case of India
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: This paper examines a multitude of economic factors that could possibly determine the amount of foreign direct investment inflows a country receives. The paper specifically looks at, the gdp growth rate, inflation rate, corporate tax rate, ease of doing business index, corruption perceptions index, total labor force, and percent of labor with tertiary education. The aim of this paper is to find factors that do indeed have a significant effect on FDI inflow, and that could help India further increase their FDI inflow. After the analyzing the regression, it was found that the gdp growth rate, total labor force, and levels of corruption were all statistically significant and had effects on FDI inflow.

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Boyer, Chase

Title: More Money on the Table: A Study of Potential Profit Increasing Opportunities during Alternative Sporting Events
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: The object of this research paper is to investigate and analyze advertisements throughout the Super Bowl, World Series, and NBA Finals. Using both statistical and theoretical analysis, I will determine which sporting event offers the largest return on commercial investment (ROCI) for a set number of companies. The data is collected from the years 2009 to 2013 and will primarily focus on each events advertising costs to companies and other important factors that affect ROCI. The analysis will concentrate on the ROCI’s for each event and conclude whether or not the Super Bowl is still the best source for advertising. Although previous studies have indicated there could possibly never be a better event for advertising, this research aims to refute these broad statements.

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Bracken, Tessie

Title: Sorting, Signaling, and Human Capital: An Analysis of Grade Inflation in Higher Education and its Effects on the Millennial Generation
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: “College GPAs in the U.S. substantially increased between the 1960s and the 2000s; a matter referred to as grade inflation. A grade is inflated if a simpleminded student received a grade that is equal to or greater than a bright student because grade inflation tends to award progressively higher academic grades for work that would have received lower grades in the past. Also between the 1960s and the 2000s, study time decreased from 24 hours a week to 14 hours. Foremost, this analysis explores different economic theories that explain the increase in college GPAs, such as the sorting, signaling and
human capital theories. Subsequently, I use multiple datasets from different time periods to document declines in academic time investment by full-time college students in the U.S. Lastly, the analysis ends with a case study to emphasize the main point that high grades are limiting academic work. For example, one of the studies revealed that an anti-grade inflation policy that raises grading standards would lead to incentives for students to dedicate more time to their studies. This information is used to conclude that there have been substantial changes over time in the quantity and quality of human capital production on college campuses, and thus, scholarly work is dis-incentivized for the millennial generation.”

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Bras, Gregory

Title: Should Acutec Adopt Additive Manufacturing for Production Purposes?
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: The aim of this study is to determine if Acutec should adopt additive manufacturing for production purposes in the near future. In order to answer this question, a review of the relevant literature and relevant theories are included. After this, an empirical analysis was performed on data collected for a part that was identified as a potential candidate for early adoption. The empirical analysis includes regressions that analyze the contributing factors of scrap and on-time delivery for the traditional manufacturing method that is currently in use, as well as a brief cost analysis to determine if, economically speaking, such a transition is viable. My overall hypothesis that this study aims to prove is; if Acutec adopts additive manufacturing, then the potential gains in at least one of the three important customer metrics (scrap, on-time delivery, and cost), through integration of the supply chain or minimizing cost, will offset the costs of adoption for a single part, or help to maintain a new competency that will provide a first-mover advantage. I found that the identified part would not be suitable for early adoption. However, this does not disqualify additive manufacturing in general. In fact, it is argued that the adoption of additive manufacturing will be very important for Acutec’s continued success.

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Brookhart, Dashiell

Title: Congestion Pricing and Carmageddon
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: The mathematical model for the Pigou-Knight-Downs paradox and the Downs-Thomson paradox, proposed by the economists Richard Arnott and Kenneth Small, explain why congestion fares in London have had a significant impact on reducing traffic in the city. However, their idea that solving these paradoxes through congestion pricing would lead to an indefinite cycle of increasing demand for public transportation is arguable. While this paper cannot conclude that there does not exist a significant correlation between congestion pricing and demand for public transportation, it will cast doubt on the accepted mathematical model described both in the Pigou-Knight-Downs paradox and the Downs-Thomson paradox. It lays a framework for proving why the mathematical model is wrong and the correct regression framework, which with the publication of more relevant data, can prove that the induced demand is moving somewhere else entirely.

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Campbell, Juwan

Title: Are public post-secondary educational institutions fulfilling all of their responsibilities?
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: As a nation we are always seeking new ways improve our economy and social structures to approve overall living. This study pulls from two completely different discourses and analyzes what the outcomes are when correlated to one another. How would the amount of post-secondary educational institutions in an area effect the crime? Before the completion of this study I would hypothesize, as would most, that more education in any area should be a positive asset on a community and thus lower crime rates. This study uses cross sectional data of demographic statistics across the fifty states of America as well as 63 counties in New York. This study uses these population statistics as well as the number of schools in each corresponding area in a regression against crime which is broken down into three categories: violent crime, property crime, and index which is simply the sum of both violent and property crimes. In conclusion, this regression shows us is an opposing result to my hypothesis. In the end this study’s results show that an increase in the number of schools in a specific area actually increase the crime rates.

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Dias, Nicholas

Title: An Empirical Analysis of the Market Market
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: How do you predict market viability with a product that cannot be tested? This paper seeks to estimate the size of the marijuana market using data from a survey of Allegheny College students. Marijuana is a complex product to study due to its current legislative state in the United States, and in many countries around the world. The estimation of the size of the market allows predictions to be made about the potential for a legal, taxable market for the product. Although these predictions arguably may not be accurate given current market conditions, indicators of market potential should show there is a new arena for competition in the marijuana industry. Existing state medical and recreational markets suggest there is enormous potential with limited costs and valuable benefits. Economic theory is centered around costs, benefits, and preferences, and the following research will show the market has limited costs, valuable benefits, and increasing demand.

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DiMaggio, Robert

Title: What Types of Teams Win the College World Series?
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: This research paper is the first-known study on the determinants of a teams performance on its road to the College World Series. The paper uses a regression model developed to predict team success in each round of the College World Series between 2012-2016. The study found many significant variables such as: team ERA, OPS, fielding %, and power conference. There were no significant variables when examining team success in the final round of the College World Series due to the lack of observations.

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Donahoe, Aaron

Title: How Hometown Heroes Impact NBA Attendance
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: The objective of this research paper, through both statistical and theoretical analysis is to analyze the effect that hometown heroes have on attendance in the National Basketball Association (NBA). This paper focuses on five different NBA hometown heroes, who also are considered all-stars to determine the impact on both home and road attendance. The data collected for this research is used from the 2002-03 season through the 2015-16 season. Similar research has been conducted previously, however, much of the previous research focused on star players in different sports or didn’t specifically look for the hometown hero impact.

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Donathen, Patrick

Title: An Examination of Banking Consolidation
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: The number of banks in the United States has waxed and waned over the years in response to political and economic factors, reaching a historic high of 14,483 intuitions in 1984. Since then, the banking sector has been dominated by consolidation, in which the number of institutions within the industry has fallen while average firm size has increased. The theoretical section of this paper focuses on three main factors; value creation, value destruction, and government impact, and how they have influenced banking consolidation. These ideas are then tested using logit regression models in the subsequent section. The initial regression results suggest that banks look to acquire efficient banks and that banks with previous acquisition experience will acquire additional firms in the future.

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Edmiston, Stefan

Title: Do Private Prisons Use Unethical Tactics In Order To Create Revenue
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: The private prison industry brings millions of dollars in revenue every year and is continuing to grow at a rapid rate. Private prisons companies cut costs and use unethical tactics that affect the livelihood and well-being of their prisoners, which makes these tactics unethical and inhumane. For example, instead of spending more money towards better living conditions for the prisoners or paying them fair wages towards the labor they do on a daily basis private prisons use their revenue towards aspects they feel will help their company grow, such as expansion and lobbying. This investigation expands upon the existing literature by examining when private prisons spend money towards certain aspects like lobbying contributions to politicians and building a prison in a high population of Black people with the assumption they will receive a high amount of prisons by doing so, and seeing how it effects the average number of prisoners within that year. As a result we look towards seeing what unethical areas private prison companies use in order to create more revenue and increase the prison population.

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Finnell, Dalton

Title: Impact of the Negotiation Process on College Decision: Should Colleges Allow for Bi-Lateral Negotiations for Student Aid
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: College tuition has continuously been increasing over the last many years. However, the college market still finds itself to be a competitive industry. More recently, certain colleges are turning to their financial aid offices as an area of competitive advantage. These colleges have started allowing for an open negotiation over their financial aid packages, differing from typical appeals processes. This study heavily analyzes four economic theories and economic tools in an attempt to explain why colleges would choose to have an open negotiation process. These theories and tools include the human capital theory, law of supply and demand, price discrimination, and bi- lateral contracting. The study then analyzes the data of 61 public and private colleges in Pennsylvania using a regression analysis. The analysis provided shows that the open negotiation process was found to be positive and statistically significantly for retention rates in private colleges. It is suggested that if a private college wishes to increase their retention rates, they should consider an open negotiation process.

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Gervais, Nathaniel

Title: The Effects of Adjacent Land Development on the National Park Service
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: Over recent years, the National Park Service (NPS) has faced a stagnant budget and a lengthy maintenance list. Their ability to increase profits is highly restricted as parks face numerous challenging. The greatest challenge parks currently face is that of declining visitation. National parks have been regularly experiencing a decrease in their annual percentage of visitation since before the turn of the century. There are many possible explanations for this; however, the strongest cause of this decrease is the negative externalities coming from an increase and expansion of mining activity. This study provides evidence that mining activity is having negative effects on the attendance rates of national parks. The results, however, are not strong enough to be expressed as statistically significant.

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Greiff, Rachel E.

Title: Success on the Silver Screen: an Analytical Study of Total Revenue Determinants for the Top-300 Grossing Movies of 2016
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: The purpose of this study is to analyze specific determinants of box office revenue to discover variables that can lead to movie success through theoretical and empirical analysis. Success is defined by the amount of revenue a movie generates, with higher profits equaling higher success. There has been a significant amount of literature that has previously studied the effects that many variables (such as MPAA ratings, marketing and advertising, distribution and production, star power, word-of-blog advertisement, and the competitiveness of the movie market) have on a movie’s total revenue. However, much of this information is starting to become dated, so this project provides a more relevant analysis for the current movie industry. This study also incorporates the theories behind indifference curves and budget constraints and uses them to contextualize consumer’s tastes and preferences for movies. The results of the multiple regression model used in this study found seven variables that significantly impact a movie’s total gross, with two additional variables that come very close to statistical significance. It was found that the total number of theaters a movie is shown in, Rotten Tomatoes audience ratings, PG-13 MPAA ratings, action and animation genres, summer releases, productions by Buena Vista Studios and Warner Brothers Studio, and continued theater showings are all variables that cause increases in motion picture revenue. Therefore, it can be suggested that all of these variables contribute to making highly successful movies.

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Guernsey, Nicholas

Title: The Returns of Active, Passive, and Quantitative Funds
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: “This paper will show that active and quantitative fund returns do not outperform passive fund returns consistent with the efficient market hypothesis which states that prices reflect all available stock information to investors. This means active managers cannot determine which stocks will go up or down in price any more than anyone else, and therefore, active and quantitative funds do not outperform passive funds.
There has long been debate over whether active or passive management produces better returns. Evidence has supported the side of passive investing with many studies showing that passive fund returns outperform active fund returns. However, investment advisors continue to argue the case for active management. Until this study, none have related quantitative fund returns to active and passive fund returns. This paper studies the returns of 20 large value United States actively managed funds, three exchange traded funds, and six quantitative funds. It finds that the hypothesis that active and quantitative funds do not outperform passive funds is not rejected.”

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Haines, Evan

Title: Wealth Management and the Department of Labor’s Fiduciary Law
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: “In this Senior Comprehensive Project, I discuss the Department of Labor’s new Fiduciary Law for the Wealth Management Industry. The new Law can be beneficial for the market, but needs to be rewritten to be beneficial. I propose amendments that can improve its functionality particularly in areas of costs on the fiduciary definition middle class and contract structure.
The Theoretical Chapter emphasizes the Department of Labor’s thought process and the theories that the organization used to develop the rule. The Background in Theory Chapter, I use the theories from the previous chapter to explain how the Wealth Management market came to be and why the Department of Labor has taken action. I use the Empirical Chapter to examine the concerns of industry actors and find trends that have begun to surface for these companies.
The purpose of my Senior Comprehensive Project is to understand the changing marketplace for Wealth Management. The Fiduciary Law will play an important role in altering the industry and cannot be overlooked. I use my project to explain that the Law can help the industry and protect investors, but without restructuring, the Law may do more harm than good.”

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Hanna, Landon

Title: Valuation of Ecosystem Services vs. Economic Development in the Riparian zone of French Creek, Crawford County, Pennsylvania
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: The purpose of this study was to estimate of the value of ecosystem services of French Creek and its riparian zone in Crawford County, Pennsylvania and compare that to the value of developing the land into residential houses. This study used two spatially focused value transfer methodologies by means of ArcMap geographic information systems (GIS) technology by ESRI. The results of this study provide useful information to conservation groups and decision makers focusing on development of natural landscapes in the area. The ecosystem service values of French Creek and its riparian zone contain valuable information for future conservation in a region where similar studies have not yet been performed. This transdisciplinary study integrated ecology, GIS, and ecological economics to make information available for more beneficial land use decisions in the future. The theory of externalities, theory of consumer choice, and theory of public welfare acted as the economic foundation for this study. Because of the limitations of this developing science, the resulting monetary values must be considered a minimum estimate. The results from this study suggest that under the currently depressed state of the housing market, there are negative net benefits of developing naturally vegetated riparian land into residential housing. In this context, I used two approaches to compare the net benefits of development to the net benefits of conservation for the 60-meter riparian zone of French Creek in Crawford County, Pennsylvania. The meta-analysis approach to value transfer based on multiple studies, indicated that it would take 8.3 years for the net benefits of conservation to outweigh development compared to 2.1 years for the single study method. Based on these estimations, it is in the best interest for land use decision makers to conserve the riparian zone in the long-run as it is the more economically beneficial land use decision.

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Hesch, Phillip

Title: The Establishment of Bitcoin
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: Bitcoin originated as a decentralized currency-meaning there is a lack of government regulations and/or central power that has control over Bitcoin. Bitcoin’s popularity soared as major retailers such as Overstock.com and Microsoft began accepting them as a form of payment. The rise and overall success of Bitcoin is unique due to its popularity despite previously established transaction programs, such as PayPal or Google Wallet. In this essay I will examine the underlying incentives for the establishment of a currency such as Bitcoin. Using Karl Menger’s work on the Origin of Money, the establishment of Bitcoin can be explained through the saleableness to the Silk Road community. Saleableness is a term used to describe the amount of demand by a certain group or person. The Silk Road was an online marketplace primarily used for buying and selling of illegal drugs. Bitcoin was used in a majority of Silk Road transactions due to its anonymous nature, thus making the currency very saleable to the Silk Road Community. Not only is Bitcoin anonymous, but it also prevents Menger’s double spend problem, which is using the same units of currency for two separate transactions. Bitcoin does this through a validation process from the users of the Bitcoin community. In order to understand how Bitcoin came to be thing one must first be aware of how Bitcoin and Blockchain technology actually work. This paper will take an in depth look at the Blockchain technology along with the Silk Road to further understand how Bitcoin became established.

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Julian, Robert

Title: The Effect of Work Stoppages on Professional Sports
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: The objective of this research paper, through both statistical and theoretical analysis, is to analyze the effects that work stoppages play on professional sports. This paper will look into the effects that work stoppages play based on yearly team attendance. The data will vary in time periods with the NBA and NHL data starting with the 2000-2001 season and ending with the 2015-2016 season, while the MLB data starts with the 1969 season and ends with the 2015 season. Although there have been prior studies performed pertaining to this topic, this paper will look deeper into reasons why these effects happen and what other factors play a role in them.

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Jurich, Elizabeth

Title: How Does Higher Dance Education Affect the Demand For Dance Performances
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: No abstract provided

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Kamalpour, Vaffa

Title: Net Neutrality Regulations in the United States of America
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: Net neutrality principles have become integral to the current debate on consumer rights and freedom of speech through the Internet. From the first usage of the word in 2003, net neutrality has become associated with the debate and conflict between Internet Service Providers and content providers fighting over content discrimination. In the United States, net neutrality laws have been in effect for two years to the dismay of the telecommunications industries who argued that the costs of enacting these regulations would be too much to handle. But there has been a recent presidential election in the United States and policy is about to change, especially regulatory policy. The purpose of this paper is to explain the net neutrality debate, discuss its economic implications, and argue for its necessity in the United States. Specifically, I will argue for the continued implementation of net neutrality policies and minor adjustments to improve it.

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Lagnese, Marco

Title: How the adidas Group’s Corporate Strategy Has Resulted In Growth and Increased Profitability Within the Sportswear Industry
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: The adidas Group has been one of the worldwide leaders in the sports and leisurewear industry since its inception in 1949. Only recently has the firm been able to completely change its brand image and has seen an increase in consumer desirability. The goal of this paper is to determine how its corporate strategy has led to a source of competitive advantage. My research suggests that adidas has seen firm growth, increased net income, revenue, and sales through their differentiating and unique competitive advantage, operational effectiveness, and strategies it has implemented. My research also suggests that the partnership with Kanye West and Pharrell Williams is an inimitable ability and can be considered a sustainable source of competitive advantage.

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Lindstrom, Kellie

Title: FDIC and the 1980s bank crisis: Samaritan’s dilemma leads to emergence of soft budget constraint in the banking industry
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: “Throughout the first forty years of the FDIC’s existence, bank failures occurred at a low and steady rate. Although the FDIC insured the deposits of failed banks during these years, the FDIC never engaged in an assistance transaction until 1971. The FDIC began assistance transactions to prevent banks from failing in instances where failures threatened to result in greater spillover costs into the economy. In the 1980s, banks began failing at increasing rates each year until they peaked with 531 failures in 1989. The rate of assistance transactions by the FDIC also increased over this period, however, they peaked the prior year in 1988 with 238 assistance transactions and dropped to just three assistance transactions in 1989. In many cases, banks that received assistance went on to fail in the years shortly after.

Applying the game theoretical framework of the Samaritan’s dilemma explains how banks exploited the assistance provided by the FDIC and the decision of the FDIC to provide assistance as they both pursued utility maximization. As the FDIC engaged in Samaritan-like behavior through assistance transactions, banks began to operate with the expectation that the FDIC would provide assistance in the case of failure signifying a moral hazard problem. The changing expectations of banks due to the new possibility of receiving assistance from the FDIC is the mechanism which led banks to revert their behavior from being risk averse to risk seeking, resulting in the emergence of the soft budget constraint and the ensuing bank failures during the 1980s.”

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Martinelli, Patrick

Title: The Economic Impact of Professional Sports Teams: A Case Study of the Oklahoma City Thunder
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: The overall objective of this research is to identify whether or not professional sports franchises have an impact on their local economy. Specifically, the research focuses on the Oklahoma City metropolitan area the Thunder, the city’s professional basketball team. A member of the National Basketball Association (NBA), the Thunder is Oklahoma City’s only professional franchise in the four major sports: basketball, baseball, football and hockey. Oklahoma City was chosen as the subject of the case study because it is possible the economic impact of the Thunder is different because it is the only franchise present in the city. The data analyzed throughout the paper span from 2001 to 2015, giving a seven-year time period prior to the organization’s arrival in 2008 and an equal time frame after their arrival. The variables taken into account in the study show the economic climate of Oklahoma City from 2001 to 2015. Furthermore, statistics were also taken into account to highlight the popularity of the organization. While it is difficult to put an exact number on the size of the impact the Thunder makes on Oklahoma City’s economy, the data suggest that it is reasonable to suggest that the organization does have a positive, but slight, impact on the local economy.

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McNamee, Liam

Title: Trade Protection: Protecting Domestic Firms or Harming Innovation?
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: With much emphasis recently being placed on the adoption of steeper tariffs in the United States, the goal of this paper is to examine the effect of trade protection on the level of innovation a country as a whole engages in. The empirical model is estimated using a dataset of fifty-eight randomly selected countries for a single year ranging from 2010 to 2014. Data were obtained from the World Bank Group and the U.S. Patent and Trademark Office. Economic theories and literature are presented to illustrate the connection between tariffs and innovation. Even with few dependent variables, the regression model accounts for a sizeable portion of variation in country innovation. The results of the empirical analysis suggest that the tariff rate in a country is indirectly related to that country’s level of innovation, as measured by U.S. patents. The findings of this study are consistent with conclusions drawn from the literature. The main contribution of this study is that it is an analysis of many countries from all parts of the world while previously literature has focused on comparing the relationship on a country-to-country basis or in a specific region.

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Miller, Gary

Title: The Impact of Corporate Stadium Naming Rights Agreements in Professional Sports on Short-Run Stock Returns
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: The purpose of this project is to outline the historical events surrounding the inception of corporate sponsorship of professional sports stadiums through the purchasing of naming rights. Some of the costs and benefits experienced by corporations when entering naming rights agreements is also taken into consideration. An analysis and explanation of some prominent economic theories regarding asset pricing of securities is given, namely Eugene Fama’s Efficient Market Hypothesis, investor sentiment and how an investor’s future expectations can affect asset prices, as well as Andrew Lo’s modernized adaptation of the Efficient Market Hypothesis which he calls the Adaptive Market Hypothesis. Finally, given the content outlined in the first two chapters, I report my empirical analysis of the initial announcement of the sponsorship on short-run stock returns. Considering the difficulties associated with identifying the impact an event had on the return of a stock, it is necessary to calculate the abnormal return for a given stock. These calculations were made using an implementation of the Market Model by predicting expected prices based off an individual stock’s reactiveness to the market in a recent reference period. The results of the empirical analysis found that companies typically experience positive abnormal stock returns in the four trading days prior to and following the sponsorship announcement. These findings are consistent with the Efficient Market Hypothesis in both its semi-strong and weak forms.

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Moyer, Hayden

Title: Assessing the Impact of the Inclusion of Waste Coal on the Alternative Energy Portfolio Standards Act of 2004
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: Pennsylvania has been one of the five largest carbon dioxide producing states for as long as the data has been recorded. In 2004, the Pennsylvania Senate passed a bill which requires that 18% of the energy sold in the state be from alternative sources (Solar, Wind, Hydroelectric, Nuclear) by 2021 as an attempt by policy makers to reduce these emissions. However, the polluting sources of energy also make Pennsylvania the third largest energy producer in the nation with a net export of 41% of which about 60% of total energy production in Pennsylvania comes from coal and natural gas. This paper will argue that waste coal, a byproduct of traditional coal generation, has hindered the production of other types of alternative energy included in the Alternative Energy Portfolio Standards Act. Being the cheapest available option for producers to meet the requirements of the act, waste coal hinders the growth of renewable Pennsylvania energy by reducing the amount of market share available to the other included technologies. By analysing nationwide historical data of renewable energy production and comparing it to Pennsylvania’s progress over the same time period this paper will show that the Alternative Energy Portfolio Standards Act has not been successful in promoting renewable energy growth in Pennsylvania, due to its inclusion of waste coal as an alternative resource.

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Mulvay, Nicholas

Title: Comoros and Mauritius: Analyzing the Economic Impact of Colonial Development and Initial Endowment Factors
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: This research studies the colonial history of two African island nations, Comoros and Mauritius, in order to determine the root cause for the heterogeneity of growth rates between these countries. Both Comoros and Mauritius, during colonial times, were dependent on their agricultural sector for growth. Laborers in these countries were primarily slaves and/or low-cost laborers. Their colonial rulers, France and Britain, respectively, utilized the islands for sugar production as well as exporting other natural resources. The British used revenue from sugar production and aid form the mother country to develop Mauritius’ economy in order to meet the developing world’s growing demand for sugar. This led to the development of banks, insurance agencies, and research to increase production. Conversely, France repatriated the majority of profits generated from Comoros exports, resulting in poor infrastructure development both physical and institutional. The differences in development can be explained by natural factor endowments. Comoros, with an existing native population, fostered the development of small special interest groups comprised of French elite that faced little incentive to develop the economy and society. Mauritius lacked a large native population, thus fostering the development of homogeneous, encompassing special interest groups. These encompassing groups faced a different set of incentives that spurred growth and development in the Mauritian economy and society.

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Myers, Griffin

Title: The Economic Effect of Sports Stadiums on Local Economies
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: In general, research on the economic effect of sports franchises on their respective cities has shown a neutral to negative impact. In the majority of cases, teams’ host cities are asked to provide significant subsidies to assist in the funding of stadium construction. These cities have little bargaining power because sports franchises are in high demand, and they will choose to relocate or establish in cities that are willing to pay the highest percentage of the costs and it is common for cities to dole out hundreds of millions of dollars in subsidies to help franchises build their stadiums. Most of the research on this topic is a bit dated, analyzing the economic effect of stadiums and franchises pre-2000. In this paper, an analysis of new sports stadiums from 2001-2015 will be undertaken in order to see if these newer generation stadiums have any economic impact. Also, the paper looks to find any differences in economic impact between NFL and MLB stadiums compared to NBA and NHL arenas.

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Palmer, Jordan

Title: The Effect of Dead Money on Winning Percentage in the NFL
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: The objective of this research paper is to analyze the implications of the National Football League (NFL) salary cap on the winning percentage and overall team success of organizations. Through a combination of statistical, historical and theoretical analysis, the research paper will investigate how “dead money” on team salary caps, positional allocation of salary and the efficiency of NFL organizations can influence team success. The positional allocation of salary portion of the paper will not be present in the empirical section but instead will be a helpful tool in the theoretical framework section. The empirical section will be specifically investigating the impact of dead money on winning percentage in the NFL. The paper will provide a historical overlook at the salary cap in the NFL, while referencing previous literature on the topic that can offer important implications across the entire scope of professional sports. The data and analysis will begin with the (2011) NFL season and ends with the most recent NFL regular season that took place in 2016. In this paper, dead money was found to have a negative impact on winning percentage in the NFL and controlling this is something that organizations should consider when attempting to build a championship caliber roster.

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Paris, Dante

Title: Sporting Success and College Application Rates
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: “In an era full of different forms of entertainment, college sports a distinct and powerful market niche. This study examines the effects of successful collegiate football and men’s basketball programs on the number of applications received for their respective university. The application data shown in this study are based on the number of applications received in the 2013-2014 and 2014-2015 academic years with the athletic data based on the 2012-2013 and 2013-2014 academic years. This list of schools includes 67 of the top Football Bowl Subdivision (FBS) schools in Division 1 athletics.
The analysis uses multiple variables based on success in each sport to determine whether they have an effect on the change of application rates during a two-year span. A case study of two schools (University of California, Los Angeles and Boston College) illustrates how successful and unsuccessful sports programs can change the number of applications each school received.”

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Pollock, Jared

Title: The Effect of the Seattle Minimum Wage Hike on Employment in King County
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: In 2014 Seattle became one of the first major cities to raise the minimum wage to $15 an hour; it will be incrementally raised to this number by January 2017 for some businesses and as late as 2021 for others. Classical economic theory suggests that raising the wage above the equilibrium rate will distort the market and create unemployment. However, this is not always the case, as noted by economists David Card and Alan Krueger, who studied the effects of raising the minimum wage on employment in New Jersey, while using Pennsylvania as a control. Ultimately, they concluded that the minimum wage hike had no discernable effect on unemployment. This paper will examine if this will be the case in Seattle by comparing employment data in low wage sectors in King County, the county Seattle is in, and its neighboring counties. The results from this comparison will be used to support past regressions that reached similar conclusions as Card and Krueger. Finally, through the use of a regression that analyzes data in King County, it will be argued that the county may not face a rise in unemployment, as classical theory suggests, but instead the minimum wage hike may have little to no adverse effects, or even a possible positive effect.

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Robertson, Marina

Title: Pharmaceutical Pricing: The Effects of Patent Expiration and Generic Competition
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: The pharmaceutical industry consistently prices branded drug well in excess of generic drugs. Generic drugs are produced as perfect substitutes for the branded drug counterparts, yet additional factors are in place that allow these branded and generic drug prices to diverge. The use of patents to protect a branded drug provide monopoly power to that manufacturing firm for the given time period. Adopting a theory of an imperfectly segmented market, it is the case that consumers have varying levels of price sensitivity allowing for branded prices to continue to maintain prices even with generic competition. Branded firms are price makers following patent expiration because they retain price insensitive consumers who perceive the branded drug as being different and superior to the generic substitutes. This paper examines data on pharmaceutical prices of branded and generic drugs following patent expiration and generic entry using a regression model to analyze these effects. The case study of three drug markets show real life examples of how drug prices change with generic competition. While some drugs follow the trend found in the regression analysis, others differ based on strategies embraced by their manufacturers. The results of this study, like others in this academic area, lead to a question of whether pharmaceutical pricing policies require reform.

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Rusert, Austin

Title: The Effects of Commercial Development on Residential Property Values
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: This analysis serves to discover the effects of commercial construction development on the residential housing market. These effects are accounted for at the zip code level across the United States. It does so by taking into account the positive and negative externalities imposed on the residential housing market resulting from commercial construction projects. For the purpose of this study, commercial construction projects include any major additions of power plants, pharmaceutical & biotechnology plants, food and beverage centers, manufacturing plants, oil and gas pipelines, and alternative fuel projects with respect to various zip codes within twelve states. These twelve states include: District of Columbia, Delaware, Maryland, Virginia, West Virginia, Georgia, South Carolina, North Carolina, Tennessee, Kentucky, Florida, and Alabama. In order to answer this research question, a relevant review of existing literature was carried out, and several relatable economic theories are included. An empirical analysis was then performed using time series data from four main sources including: Industrial Information Resources, Zillow Group, the American Community Survey, and the United States Decennial Census. The overall hypothesis that this study aims to address is: Commercial construction development has the ability to either positively or negatively impact the surrounding residential property values within a particular zip code. Using this data, three main regression models were able to be created by including several relevant housing characteristic variables, and a variable to represent major commercial development projects. It was found that major commercial development projects do indeed influence the value of surrounding residential properties.

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Ryan, Alexis

Title: Regulating the Consumption of Plastic Bags in the Cases of South Africa and Ireland
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: Within the last decade and a half, the anti-plastic movement has gained momentum in its efforts to reduce the global usage of plastic. This paper takes a case study approach to evaluate the effectiveness in using policy tools such as a tax and other forms of regulation in order to reduce consumption of plastic bags. South Africa and Ireland are the subjects of the study, as the results are evaluated while considering outside factors such as strength of the plastic industry within each country, poverty and unemployment levels. This work concludes that Ireland is more successful in getting the desired reduction in usage both in the short term as well as long term. This success is based around three main factors, the size of the existing plastics industry within the country, the strength in an advertisement campaign surrounding the new regulation, and the poverty and unemployment rates of the county. In these three factors, Ireland surpassed South Africa thus having more success with their regulation.

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Santos, Daniel

Title: Ideal Bankruptcy Law and the 2005 BAPCPA
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: In 2005, the U.S. legislature passed the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), generating the most significant changes to the U.S. bankruptcy code in decades. In this essay, I find that a decade after its passage into law, the evidence still supports that the BAPCPA was only able to decrease filing rates and did not deal with factors, especially credit card debt, that lead to the increased rates of bankruptcy filing. Instead, the BAPCPA increased the cost of filing for bankruptcy and decreased its availability as an option for people in debt. The changes to the bankruptcy code directly benefited credit card companies while it hurt debtors. Thus, it is important that, in the future, the U.S. affords more protection to debtors that file for bankruptcy protection out of necessity.

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Schowalter, Jonathan

Title: Determining the Effectiveness of Tesla’s Strategy
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: The purpose of my Senior Comprehensive project is to determine the effectiveness of Tesla’s strategy. The United States automobile industry is notorious for its extremely high barriers to entry and oligopolistic competition that has historically made it very difficult for new companies to succeed in the market. Tesla Motors, however, is the one exception to this, because since 2004, it has been a legitimate player in the U.S. auto industry with a market cap of $39.4 billion. Using the case study methodology, I applied the existing literature on business strategy and management, along with historically relevant information regarding new entrant firms in the U.S. auto industry to analyze Tesla’s strategy and performance thus far. I conclude that Tesla’s strategy provides the organization with a clear identity that gives the company a distinct competitive advantage that helps the firm leverage its core competencies, and allows the company’s stockholders to effectively make intelligent tradeoff and helps to link activities within the company.

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Stover, Walter

Title: China’s Fiscal and Monetary Reform Effects on Intranational Capital Market Integration
Date: Spring 2017 2017
Major(s): Economics
Thesis Committee: Econ faculty

Abstract: “This paper examines the effects of fiscal and monetary policy reforms in recent Chinese economic history on capital market conditions. Specifically, I argue that China has moved towards conditions of fiscal decentralization and monetary centralization that are conducive to intranational capital flow. Fiscal decentralization increases capital market integration by incentivizing local governments to increase cross-regional investment and discouraging them from bailing out loss-making, inefficient state-owned enterprises, while monetary centralization reduces the ability of local governments to obtain easy credit through political connections and increases banking autonomy, incentivizing banks to lend based on profit maximization rather than investing locally based on political variables and increasing capital flow across regions.

To make this argument, I first adopt a game theoretic approach to understanding provincial government behavior to explain why fiscal decentralization and monetary centralization promote capital market integration. I then examine recent fiscal and monetary reforms as well as additional banking reforms in a historical narrative to argue that China is experiencing those fiscal and monetary conditions. Finally, this theoretical framework and historical narrative support empirical findings from a Feldstein-Horioka test of the relationship between local savings and investment that suggest China is indeed experiencing increased capital market integration.”

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