Showing 61 - 70 of 80 Items
Estimating the Impact of Ride-Hailing App Company Entry on Public Transportation Use in Major US Urban Areas
Date: 2019-01-01
Creator: Erik Nelson, Nicole Sadowsky
Access: Open access
- Since 2011, the private ride-hailing (RH) app companies Uber and Lyft have expanded into more and more US urban areas. We use a dynamic entry event study to examine the impact of Uber and Lyft's entry on public transportation (PT) use in the United States' largest urban areas. In most cases, entry into urban areas was staggered: Uber entered first, followed several months later by Lyft. We generally find that PT use increased in the representative urban area, all else equal, immediately following first RH app company entry. However, this spike in PT use largely disappeared following the entry of the second RH app company. Slightly different RH app company-PT use relationships emerge when we estimate the PT use model over various subsets of urban areas and PT modes.
Accounting for creativity: Lessons from the economic history of intellectual property and innovation
Date: 2020-01-01
Creator: B. Zorina Khan
Access: Open access
- Social progress depends on the realization of inventive ideas, and economic history provides valuable lessons about creativity in technology and culture. The empirical study of over one hundred thousand innovative individuals who obtained patents, copyrights, and prizes, sheds light on the relationship between institutions, incentives, and transformative ideas and expression, over the past two centuries. The European growth model assumed useful knowledge was scarce, and top-down administered innovation systems offered rights and rewards to “exclusive” groups. By contrast, American policies regarded creativity as widely distributed in the general population, and further promoted “inclusive” market-oriented mechanisms that fostered diversity in ideas and outcomes. The evidence suggests that property rights in patents facilitated markets in ideas, and ensured that returns were aligned with productivity and market demand. Whereas, such administered systems as innovation prizes and publisher’s copyrights in the “creative industries” benefited the few rather than overall social welfare.
The Effects of Exchange Rates on Employment in Canada
Date: 2013-06-05
Creator: Yao Tang, Haifang Huang, Ke Pang
Access: Open access
- Under the flexible exchange rate regime, the Canadian economy is constantly affected by fluctuations in exchange rates. This paper focuses on employment in Canada. We find that appreciations of the Canadian dollar have significant effects on employment in manufacturing industries; such effects are mostly associated with the export-weighted exchange rate and not the import-weighted exchange rate. The export-weighted exchange rate elasticity of employment is -0.52. However, we also find that exchange rate fluctuations have little impact on Canada’s nonmanufacturing employment. Because the manufacturing sector accounts for only about 10% of the employment in Canada, the overall employment effect of exchange rates is small. In addition, we assess the potential employment impact of a boom in the global commodity market, which often leads to appreciations of the Canadian dollar. We find that a 12.21% increase in commodity prices (one standard deviation in the 1994-2007 data) reduces Canada’s manufacturing employment by 0.98%, less than 0.1% of the total industrial employment.
Investigating the Effects of Student Debt on Career Outcomes: An Empirical Approach
Date: 2019-05-01
Creator: Gideon Moore
Access: Open access
- High student debt has been hypothesized to affect career choice, causing students to desire stable, high paying jobs. To test this hypothesis, I rely on plausibly exogenous variation in debt due to a federal policy shift. In the summer of 2007, the Higher Education Reconciliation Act (or HERA) expanded the cap for federally subsidized student loans. I examine how variation in debt affects career choice and eventual salary of students using data from the National Longitudinal Survey of Youth 1979 Child and Young Adult Cohort of students who were of college age during the implementation of the policy. I find that student debt has no impact on salary two years after graduation; however, it does seem to shift students’ career choices, leading some to avoid careers in public service industries such as teaching and social work.
New Institutional Economics: Political Institutions and Divergent Development in Costa Rica and Honduras
Date: 2022-01-01
Creator: Maynor Alberto Loaisiga Bojorge
Access: Open access
- For most of their histories, Costa Rica and Honduras were primarily agricultural societies with little economic diversification. However, around 1990, after the implementation of Washington Consensus reforms, the economies of both nations began to diverge. Costa Rica’s economy rapidly expanded for the following 30 years, while Honduras remained stagnant. Through a New Institutional Economics approach, I argue that institutional differences between Costa Rica and Honduras are responsible for the impressive economic growth Costa Rica has been able to achieve in the past few decades. Specifically, early political developments in Costa Rica have deeply imbedded relatively egalitarian values into the population, helping shape formal and informal inclusive political institutions. Meanwhile, Honduras experienced the development of extractive political institutions, as political and economic power was heavily concentrated in the hands of a select few. These political institutions were crucial during the implementation stages of Washington Consensus reforms, as strong and inclusive political institutions attracted Foreign Direct Investment that helped propel the Costa Rican economy and materialize its position as an outlier in the region. In contrast, lack of institutional guarantees discouraged foreign investors from investing money into the Honduran economy. Through a deep dive into the political histories of both nations, from European discovery to modernity, I conclude that the political institutions of these Central American nations have determined their economic growth paths.
Blockholders and Their Effect on Project Value: An Empirical Approach of Understanding Ownership Concentration and Firm Value Using an Event Study Framework
Date: 2017-05-01
Creator: Xuanming Guo
Access: Open access
- This study uses an event study framework to find the relationship between ownership concentration and project value. I find that project value first increases with ownership concentration when block size, the percentage ownership of the largest blockholder, is smaller than 10%, then declines with ownership concentration when block size gets larger, and finally rises again when block size exceeds 30%. However, my research only suggests an ambiguous relationship between ownership concentration and firm value. Additionally, ownership concentration seems to affect both the timing of market responses and the market’s interpretation of large investment projects.
Climate change and health costs of air emissions from biofuels and gasoline
Date: 2009-02-10
Creator: Jason Hill, Stephen Polasky, Erik Nelson, David Tilman, Hong, Huo, Lindsay Ludwig, James Neumann, Haochi Zheng, Diego Bonta
Access: Open access
- Environmental impacts of energy use can impose large costs on society. We quantify and monetize the life-cycle climate-change and health effects of greenhouse gas (GHG) and fine particulate matter (PM2.5) emissions from gasoline, corn ethanol, and cellulosic ethanol. For each billion ethanol-equivalent gallons of fuel produced and combusted in the US, the combined climate-change and health costs are $469 million for gasoline, $472-952 million for corn ethanol depending on biorefinery heat source (natural gas, corn stover, or coal) and technology, but only $123-208 million for cellulosic ethanol depending on feedstock (prairie biomass, Miscanthus, corn stover, or switchgrass). Moreover, a geographically explicit life-cycle analysis that tracks PM2.5 emissions and exposure relative to U.S. population shows regional shifts in health costs dependent on fuel production systems. Because cellulosic ethanol can offer health benefits from PM2.5 reduction that are of comparable importance to its climate-change benefits from GHG reduction, a shift from gasoline to cellulosic ethanol has greater advantages than previously recognized. These advantages are critically dependent on the source of land used to produce biomass for biofuels, on the magnitude of any indirect land use that may result, and on other as yet unmeasured environmental impacts of biofuels. © 2009 by The National Academy of Sciences of the USA.
Efficiency of incentives to jointly increase carbon sequestration and species conservation on a landscape
Date: 2008-07-15
Creator: Erik Nelson, Stephen Polasky, David J. Lewis, Andrew J. Plantinga, Eric, Lonsdorf, Denis White, David Bael, Joshua J. Lawler
Access: Open access
- We develop an integrated model to predict private land-use decisions in response to policy incentives designed to increase the provision of carbon sequestration and species conservation across heterogeneous landscapes. Using data from the Willamette Basin, Oregon, we compare the provision of carbon sequestration and species conservation under five simple policies that offer payments for conservation. We evaluate policy performance compared with the maximum feasible combinations of carbon sequestration and species conservation on the landscape for various conservation budgets. None of the conservation payment policies produce increases in carbon sequestration and species conservation that approach the maximum potential gains on the landscape. Our results show that policies aimed at increasing the provision of carbon sequestration do not necessarily increase species conservation and that highly targeted policies do not necessarily do as well as more general policies. © 2008 by The National Academy of Sciences of the USA.
Implementing the optimal provision of ecosystem services
Date: 2014-04-29
Creator: Stephen Polasky, David J. Lewis, Andrew J. Plantinga, Erik Nelson
Access: Open access
- Many ecosystem services are public goods whose provision depends on the spatial pattern of land use. The pattern of land use is often determined by the decisions of multiple private landowners. Increasing the provision of ecosystem services, though beneficial for society as a whole, may be costly to private landowners. A regulator interested in providing incentives to landowners for increased provision of ecosystem services often lacks complete information on landowners' costs. The combination of spatially dependent benefits and asymmetric cost information means that the optimal provision of ecosystem services cannot be achieved using standard regulatory or payment for ecosystem services approaches. Here we show that an auction that sets payments between landowners and the regulator for the increased value of ecosystem services with conservation provides incentives for landowners to truthfully reveal cost information, and allows the regulator to implement the optimal provision of ecosystem services, even in the case with spatially dependent benefits and asymmetric information.
Carbon credits compete poorly with agricultural commodities in an optimized model of land use in Northern California
Date: 2016-11-01
Creator: Erik Nelson, Virginia Matzek
Access: Open access
- Nascent US carbon markets reward farmers for reforesting agricultural land, with consequent ecological co-benefits. We use a dynamic optimization model to determine the likelihood of an orchard farmer in northern California converting to forest under 90 plausible future scenarios. We find reforestation to be a highly unlikely outcome, occurring only 4.0% of the time under current economic, biophysical, and policy conditions, and only 18.5% of the time under a set of assumptions that make carbon offset production more economically viable. Conversion to "carbon farming" was more sensitive to changes in orchard production costs and yields than to carbon offset policy changes. In the absence of other changes, the price of a carbon offset would have to increase nearly a hundredfold to make reforestation compete economically with orchard agriculture. Our results partly explain low participation in the reforestation sector of US carbon markets. We conclude that farmers will not be interested in forest conversion unless their land has limited agricultural potential or they are motivated by social, rather than economic, rewards.