Showing 41 - 50 of 80 Items
Clarifying (Opportunity) Costs
Date: 2015-05-01
Creator: Daniel F. Stone
Access: Open access
- Opportunity cost is widely considered to be a fundamental concept in economics. But the definition of the term continues to be both unclear and controversial. I describe how the term is widely used in two distinct ways, both in academic and non-academic contexts. I propose a practical way for educators to clarify the concept and related terminology.
The Free-Trade Doctrine and Commercial Diplomacy of Condy Raguet
Date: 2011-05-11
Creator: Stephen Meardon
Access: Open access
- Condy Raguet (1784-1842) was the first Chargé d’Affaires from the United States to Brazil and a conspicuous author of political economy from the 1820s to the early 1840s. He contributed to the era’s free-trade doctrine as editor of influential periodicals, most notably The Banner of the Constitution. Before leading the free-trade cause, however, he was poised to negotiate a reciprocity treaty between the United States and Brazil, acting under the authority of Secretary of State and protectionist apostle Henry Clay. Raguet’s career and ideas provide a window into the uncertain relationship of reciprocity to the cause of free trade.
Learning by lending
Date: 2019-01-01
Creator: Matthew Botsch, Victoria Vanasco
Access: Open access
- This paper studies bank learning through repeated interactions with borrowers from a new perspective. To understand learning by lending, we adapt a methodology from labor economics to analyze how loan contract terms evolve as banks acquire new information about borrowers. We construct “proxy” variables for this information using data from borrowers’ out-of-sample, future credit performance. Due to the timing of their construction, banks could not have used these variables directly to price loans. We nonetheless find that these proxies increasingly predict loan prices as relationships progress, even after controlling for possible omitted variable bias. Our methodology provides strong evidence that: (a) bank learning affects loan prices, and (b) relationship benefits are heterogeneous. In particular, higher quality borrowers face differentially lower spreads as their relationship with lenders develop – and banks learn about their quality – while lower quality borrowers see loan prices increase and their loan amounts fall. We further find suggestive evidence that banks incorporate CEO-specific information into loan prices.
On kindleberger and hegemony: From berlin to MIT and back
Date: 2014-01-01
Creator: Stephen Meardon
Access: Open access
- The most conspicuous idea of Charles P. Kindleberger’s later career is the value of a single country acting as stabilizer of an international economy prone to instability. It runs through his widely read books, The World in Depression, 1929-1939 (1973), Manias, Panics, and Crashes (1978), A Financial History of Western Europe (1984), and kindred works. This essay traces Kindleberger’s attachment to the idea of “hegemonic stability” back to his tenure as chief of the State Department’s Division of German and Austrian Economic Affairs from 1945 to 1947 and adviser to the European Recovery Program from 1947 to 1948. In both capacities Kindleberger observed and participated indirectly in the 1948 monetary reform in Western Germany. In the 1990s, during his octogenary decade, he revisited the German monetary reform with a fellow participant, economist, and longtime friend, F. Taylor Ostrander. Their collaborative essay became Kindleberger’s effort to reclaim hegemonic stability theory from the scholars who developed it following his works of the 1970s and 1980s.
Economic Analysis of the Critical Habitat Designation Process for Endangered and Threatened Species Under the Endangered Species Act of 1973
Date: 2022-01-01
Creator: Katherine Fosburgh
Access: Open access
- Habitat destruction is the leading cause of biodiversity loss in the US. Under the Endangered Species Act (ESA), habitat deemed essential to endangered and threatened species recovery is proposed as critical habitat (CH). CH areas are subject to regulations that could alter land development plans or increase costs. The potential economic opportunity cost created by CH regulations may lead to the exclusion of land proposed for CH designation, thereby reducing the conservation benefits of the CH rule. In this paper, I use a unique dataset collected from Federal Register (FR) documents to estimate the reduction in CH acreage from proposed to final ruling, both on the extensive and intensive margin. I find a negative relationship between the level of household income in an area proposed for CH and the probability that a CH gains acreage or maintains acreage during the establishment process. I also find some evidence that higher household income in a CH area is associated with a greater relative loss in acreage between proposal and finalization. I also find that private land proposed for CH designation is less likely to be in the final designation than federal land. Overall, my results suggest that economic considerations influence CH allocation decisions. Whether reducing the amount of private land subject to CH designations is socially efficient depends on the unknown economic benefit of private land exclusions versus the cost of biodiversity and ecosystem service loss that may result from not protecting all land deemed vital to species recovery.
Bubbles & Bought-Ins: Reevaluating Price Movements in the Art Market
Date: 2020-01-01
Creator: Silas Wuerth
Access: Open access
- Employs two tests for bubbles in the art market. First, a right-hand forward recursive augmented Dickey-Fuller test to identify explosive price movements. Second, a test for the statistical significance of hedonic regression price index coefficients after controlling for equity market performance. Finds strong evidence for a speculative bubble in the pre-Great Recession "Post-War & Contemporary" market. Evidence for this bubble diminishes but does not dissipate after accounting for the effect of failed sales on index returns.
Using landscape metrics to characterize towns along an urban-rural gradient
Date: 2021-10-01
Creator: Abigail Kaminski, Dana Marie Bauer, Kathleen P. Bell, Cynthia S. Loftin, Erik J., Nelson
Access: Open access
- Context: Urban-rural gradients are useful tools when examining the influence of human disturbances on ecological, social and coupled systems, yet the most commonly used gradient definitions are based on single broad measures such as housing density or percent forest cover that fail to capture landscape patterns important for conservation. Objectives: We present an approach to defining urban–rural gradients that integrates multiple landscape pattern metrics related to ecosystem processes important for natural resources and wildlife sustainability. Methods: We develop a set of land cover composition and configuration metrics and then use them as inputs to a cluster analysis process that, in addition to grouping towns with similar attributes, identifies exemplar towns for each group. We compare the outcome of the cluster-based urban-rural gradient typology to outcomes for four commonly-used rule-based typologies and discuss implications for resource management and conservation. Results: The resulting cluster-based typology defines five town types (urban, suburban, exurban, rural, and agricultural) and notably identifies a bifurcation along the gradient distinguishing among rural forested and agricultural towns. Landscape patterns (e.g., core and islet forests) influence where individual towns fall along the gradient. Designations of town type differ substantially among the five different typologies, particularly along the middle of the gradient. Conclusions: Understanding where a town occurs along the urban-rural gradient could aid local decision-makers in prioritizing and balancing between development and conservation scenarios. Variations in outcomes among the different urban-rural gradient typologies raise concerns that broad-measure classifications do not adequately account for important landscape patterns. We suggest future urban-rural gradient studies utilize more robust classification approaches.
Giving on the Margin: The Power of Donor Recognition
Date: 2016-05-01
Creator: Jordan W Richmond
Access: Open access
- This study develops a controlled laboratory experiment to examine the effects of personal recognition on charitable giving. I find evidence that both the possibility of acquiring prestige and the desire to avoid shame motivate individuals to give in recognition situations. Furthermore, I show that the possibility of being recognized is more important than the distinguishing value of that recognition, suggesting that an offer of recognition has greater power to increase charitable contributions when a larger proportion of donors will be recognized.
Are People Blaming Artificial Intelligence More or Less for Incorrect Advice? Access to this record is restricted to members of the Bowdoin community. Log in here to view.
- Restriction End Date: 2029-06-01
Date: 2024-01-01
Creator: Anh Nguyen
Access: Access restricted to the Bowdoin Community
The Impact of Armed Conflict on Maternal Health in Colombia
Date: 2020-01-01
Creator: Madeleine Squibb
Access: Open access
- This study combines data from the 2010 Demographic and Health Survey and the Conflict Analysis Resource Center (CERAC) to examine the impact of conflict on maternal health service utilization and outcomes in Colombia. The primary results indicate a significant, negative relationship between conflict level and antenatal and postnatal care utilization. Conflict is insignificant in determining the use of professional assistance at delivery. Although rural women are, overall, less likely to access maternal health services, further analysis along rural-urban lines reveals that the negative effect of violence on prenatal and postnatal care is stronger among urban women. Secondary estimation of the occurrence of complications during or after delivery employs a Two-Stage Residuals Inclusion model to address potential endogeneity in service use. Estimated results show that conflict levels are insignificant, but that Indigenous women and women in lower wealth quintiles are significantly more likely to experience complications, even after controlling for service use. The conclusions of this paper suggest that Colombia’s universal healthcare system has been successful in reducing economic barriers to prenatal care and professional delivery, but that significant wealth-related inequalities remain in maternal health outcomes. Additionally, Indigenous and women with lower levels of education are less likely to access services and more likely to experience complications. The primary contribution of this paper is the inclusion of a conflict measure. The significant, negative impact on prenatal and postnatal care utilization, especially for urban women, warrants further study to better inform policy to increase service use and reduce maternal mortality and morbidity.