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An Evaluation of Missouri's A+ Schools' Program
(Department of Economics, 2004)
The A+ Schools Program was initiated to offer financial incentives to students to attend Missouri's public 2-year post-secondary schools. Under the program, the state government provides eligible students with college ...
Income and Substitution Effects of Increases in Risk when Payoffs are Linear in the Random Variable
(Department of Economics, 2000)
attention in the literature. This paper provides a Hicks-Slutsky decomposition of the effect of Rothschild-Stiglitz increases in risk on the optimal decision. Two measures of aversion to additional risk are introduced. Their behavior is shown to control...
The Precautionary Premium and the Risk-Downside Risk Tradeoff
(Department of Economics, 2002)
This paper shows that the precautionary premium embodies a tradeoff between risk and downside risk. It is the size of a mean-preserving spread for thish the strength of aversion to risk just offsets the strength of aversion to downside risk. Using...
Low-Income and Welfare Client Priorities: Patterns of Earnings and Welfare Receipt for Workforce Investment Act Participants
(Department of Economics, 2003)
This paper examines labor market and welfare experiences of participants in Workforce Investment Act (WIA) programs who exited in July 2000-June 2001. Administrative data from six states on earnings and welfare receipt are used to trace...
Exact FGLS Asymptotics for MA Errors
(Department of Economics, 2004)
We show under very parsimonious assumptions that FGLS and GLS are asymptotically equivalent when errors follow an invertible MA(1) process. Although the linear regression model with MA errors has been studied for many ...
Testing the Bounds: Empirical Behavior of Target Zone Fundamentals
(Department of Economics, 2009)
Standard target zone exchange rate models are based on nonlinear functions of an unobserved economic fundamental, which is assumed to be bounded, similarly to the target zone exchange rates themselves. A violation of this key assumption is a basic...
Information Variability Impacts in Auctions
(Department of Economics, 2009)
A wide variety of auction models exhibit close relationships between the winner's expected profit and the expected difference between the highest and second-highest order statistics of bidders' information, and between ...
Increasing Outer Risk
(Department of Economics, 2004)
Recent empirical research has established that the distributions of a wide range of economic variables are kurtotic in that they have higher peak(s) in the neighborhood of the mean and greater elongation in the tails than the normal distribution...
Ex-Post Full Surplus Extraction, Straightforwardly
(Department of Economics, 2005)
Consider an estimate of the common value of an auctioned asset that is symmetric in the bidders' types. Such an estimate can be represented solely in terms of the order statistics of those types. This representation forms ...
Behavioral Foundations for Conditional Markov Models of Aggregate Data
(Department of Economics, 2007)
Conditional Markov chain models of observed aggregate share-type data have been
used by economic researchers for several years, but the classes of models commonly
used in practice are often criticized as being purely ad ...
Estimating the Impact of State Policies and Institutions with Mixed-Level Data
(Department of Economics, 2006)
clustered standard errors as a more straightforward, feasible approach, especially when working with large datasets or many cross-level interactions, our purpose in this Practical Researcher piece is to draw attention to the issue of clustering in state...
Optimality of the Friedman rule in overlapping generations model with spatial separation
(Department of Economics, 2003)
Recent papers suggest that when intermediation is analyzed seriously, the Friedman rule does not maximize social welfare in overlapping generations model in which money is valued because of spatial separation and limited communication. These papers...
Money, output and the payment system: Optimal monetary policy in a model with hidden effort
(Department of Economics, 2007)
We propose a new explanation for the observed difference in the cost of intraday and overnight liquidity. We argue that the low cost of intraday liquidity is an application of the Friedman rule in an environment where a ...
When Do Input Prices Matter For Make-Or-Buy Decisions?
(Department of Economics, 2007)
informationally-demanding way to ensure efficient make-or-buy decisions is to price inputs at marginal cost. The extent to which input prices can depart from marginal cost while still inducing efficient make-or-buy decisions depends on the relative efficiency...
How Do States Formulate Medicaid and SCHIP Policy? Economic and Political Determinants of State Eligibility Levels
(Department of Economics, 2009)
We exploit the existence of substantial variation in state policies toward public health insurance for children between 1990 and 2002 to estimate the economic and political determinants of state eligibility levels. Controlling for state and year...
An Experimental Study of the Effects of Inequality and Relative Deprivation on Trusting Behavior
(Department of Economics, 2005)
Several non-experimental studies report that income inequality and other forms of population-based heterogeneity reduce levels of trust in society. However, recent work by Glaeser et al. (2000) calls into question the reliability of widely used...
The Effect of Monetary Policy on Economic Output
(Department of Economics, 2003)
There is substantial research effort devoted to identifying a sufficient statistic for monetary policy. The purpose of this paper is to broaden the scope of the on-going investigation along three dimensions. First, we follow up the Rudebusch...
Did the Devil Make Them Do It? The Effects of Religion in Public Goods and Trust Games*
(Department of Economics, 2008)
We test whether religious affiliation and participation in religious services are associated with behavior in public goods and trust games. Overall, religious affiliation is unrelated to individual behavior. However, we ...
Estate and Capital Gains Taxation: Efficiency and Political Economy Considerations
(Department of Economics, 2004)
In this paper a simple dynastic overlapping-generations model with homogeneous agents is used to analyze the optimal use of capital income tax, labor income tax and estate tax. The results of this analysis add to the conventional wisdom about...
Mass Customization with Vertically Differentiated Products
(Department of Economics, 2008)
We analyze a duopoly game in which products are initially differentiated in variety and quality. Each consumer has a most preferred variety and a quality valuation. Customization provides ideal varieties but has no effect ...