Within the context of the fixed-effects model, this study uses a2002-2007state-levelpanel dataset... more Within the context of the fixed-effects model, this study uses a2002-2007state-levelpanel dataset of the United States to investigate the relative effectiveness of real (constantdollar) federal cigarette excise taxation versus real (constant-dollar) state cigarette excise taxation in reducing cigarette smoking in the United States. The empirical estimates in this study find that each of two aggregate measures of the extent of cigarette smoking, namely, the number of packs of cigarettes smoked per capita annually and the percentage of the population classified as smokers, is a decreasing function of both the federal cigarette excise tax and the state cigarette excise tax. However, it is also found that a given percentage increase in there all federal excise tax has a much greater negative impact on both the number of packs of cigarettes smoked per capita annually and the magnitude of the percentage of the population classified as smokers than does an equal percentage increase in the real state cigarette excise tax.
In our paper on the impact of the Electoral College on voter participation rates (Cebu la and Mur... more In our paper on the impact of the Electoral College on voter participation rates (Cebu la and Murphy, 1980), we argue on theoretical grounds that, in states where there is a dominant political party, the Electoral College system acts to reduce the voter participation rate; these arguments are strongly supported by the empirical evidence. Professor Blair argues that our analysis '(.. . ignores the other side of the coin-the greatly magnified probability of influencing the national outcome accorded a voter in a very competitive state when the electoral vote is close.' In point of fact, however, we do to some extent address this issue in our theoretical discussion (see para. 2, p. 186), although not in our empirical analysis. In particular, we argue that, in states with relatively competitive political parties, the small differences in the political power structure will tend to result in a higher voter participation rate. On the other hand, Professor Blair is justified in his criticism of ou r conclusions. We concluded that the Electoral College should be abolished because it reduces voter participation; however, in reality, such a net effect may not be observed in the aggregate. Specifically, although clearly reducing voter participation rates in many states, the Electoral College may also raise the voter participation rate in other states. In terms of sheer statistics, the final net outcome in the aggregate is theoretically unknown. It is a priori conceivable t hat the aggregate voter participation rate may be lowered, unchanged, or even elevated due to the Electoral College system. As illustrated in our paper, however, the fact that 41 states are dominated by one party or the other implies that, in the aggregate, voter participation is most likely to decline. Our basic conclusion should nevertheless be remolded. It should now emphasize that the Electoral College system unequivocally distorts the geographic pattern of voter participation, artificially raising the rate in some states and artificially lowering it in others. This permits an attack on the Electoral College on grounds that this distortion is not likely to yield net social benefits. Given that the Electoral College induces a voter participation rate
The nested logit model has been extensively used in studies focused on transportation. This model... more The nested logit model has been extensively used in studies focused on transportation. This model is based on a choice modeling framework and is also applicable to the study of a proxy contest. In this study, we illustrate how the nested logit model can be effectively used to evaluate a case of a proxy contest. We also present the specific model that can be used to predict the possibility of the occurrence of proxy contests.
This study aims at testing the influence of ethical pressure, professional expectation in stress ... more This study aims at testing the influence of ethical pressure, professional expectation in stress and job quality via moderators of time pressure and self esteem. Accountants in Thailand are the sample. The results show that ethical pressure and professional expectation have positive and significant association with stress. In addition, stress is positively and significantly related to job quality. these findings provide some initial empirical support for suggests need for additional investigation of factors that influence an accountant's stress and for further investigation into the effect of ethical pressure, professional expectation on job quality. Therefore, contributions and suggestion are also provided for further research.
We are the first to empirically analyze whether the "Guidance on Accessing Capital for Minority, ... more We are the first to empirically analyze whether the "Guidance on Accessing Capital for Minority, Underserved, Veteran and Women-Owned Business Concerns" (Guidance) program was successful. The program was implemented to promote the Paycheck Protection Program (PPP) loans provided by Minority Depository Institutions (MDIs) in the second round compared to the first round of PPP. Using both loan-level data from the Small Business Administration (SBA) and balance-sheet-level data from the Federal Deposit Insurance Corporation (FDIC), we obtain compelling empirical evidence indicating that MDIs issued relatively more PPP loans (scaled by institution assets) than non-MDIs in the second round. This finding is evidence that the goal of dedicated access for MDIs under the Guidance program was successful. It also enhances the understanding of the PPP lending program and the impact of the Federal Reserve PPP Liquidity Facility (PPPLF) in terms of the role played by MDIs.
This study utilizes logistic regression to identify annual financial statement and performance ra... more This study utilizes logistic regression to identify annual financial statement and performance ratio factors that influenced the failure rate of U.S. small banks before and after the Financial Crisis identified during December 2007 through June, 2009. The study includes rates of small bank failure before and Financial Crisis spanning the years 2001 through 2014. The aim of the paper is to describe in large increase in U.S. small bank failure after the Financial Crisis. The Financial Crisis created drastic sustained changes of the financial system that were designed for large financial institutions. These changes may have created undue hardship for small banks and elevated the rate of small bank failures in the post-Financial Crisis period. Post-Financial Crisis bank failures had lower capital ratios and increased loan portfolio risk relative to the prior period. The combined effect of expansionist monetary policy, increased regulatory costs, and possession of illiquid real estate assets contributed to the higher rate of failure. The identification of factors that contribute to the increase in small bank failures after the Financial Crisis should assist bank managers, policy analysts, and scholars in developing alternative solutions for the future.
'Deaths of despair' is the most commonly cited explanation for the 151% increase in drug-overdose... more 'Deaths of despair' is the most commonly cited explanation for the 151% increase in drug-overdose deaths that occurred in the USA between 2010 and 2018. We use panel data describing 84 Virginia cities and counties to assess the validity of the deaths of despair hypothesis and alternate explanations that focus on disability rates, travel time to work, urban vs. rural location, educational attainment, racial and ethnic characteristics, the influence of other health conditions such as obesity, and supply-side factors that include pill availability and pharmacy market shares. We find deaths of despair to be only a partial explanation for the upsurge in drug-overdose deaths and conclude that a much broader view of the causes of drug-overdose deaths is merited.
Following this Introduction, there are five distinct studies that constitute this Special Section... more Following this Introduction, there are five distinct studies that constitute this Special Section of the Atlantic Economic Journal, where the emphasis is on financial economics and public policy. For purposes of the studies provided here, financial economics is broadly defined to include not only purely mainstream financial economics issues, such as banking, lending, and interest rate yields, but also market responses to tax policies and certain financial market and other public policies. Each of the studies provided here endeavors to provide new empirical insights that can be of use both to researchers and within the classroom as well. The study by Alm et al. (2020) is intended to help disentangle individual taxpayers' responses to audit rate changes undertaken by Internal Revenue Service (IRS) personnel. In pursuit of this goal, the authors collected individual-level data from a series of identical laboratory experiments in which only audit rates were changed, a de facto ceteris paribus-embracing procedure. The authors stress that the measures of income tax compliance are accurate and unambiguous measures that reflect individual choices. These measures were also derived in a setting that controlled explicitly for extraneous influences on individual behavior, which thereby can clearly permit identification of the impact of a change in a single policy variable (i.e., the audit rate) on the behavioral outcome of interest (e.g., individual income compliance). Although there are obvious reasons for caution in using and interpreting data collected from laboratory experiments, the laboratory offers an opportunity to investigate, in a controlled environment, individual responses to audit rate changes, and, importantly, to distinguish individual responses from average responses. Consistent with most of the previous related empirical research, the results obtained in this study imply that the average response across all taxpayers is to increase income
Using the Heteroskedastic-TOBIT model to deal with both censored data and a heteroskedasticity pr... more Using the Heteroskedastic-TOBIT model to deal with both censored data and a heteroskedasticity problem, this study address determinants of interstate differentials in bank closing rates over the 1982-91 period. It is found that the bank closing rate in a state is an increasing function of the cost of deposits, the percentage of state employment derived from oil and natural gas extraction, and the existence of unit banking regulations, while being a decreasing function of housing price inflation in the state, the average percentage growth rate of the GSP in the estate, and the percentage of banks in the state having federal charters.
Classifications of States 23 2-2 Means and Standard Deviations by State Grouping 6 2-3 Change in ... more Classifications of States 23 2-2 Means and Standard Deviations by State Grouping 6 2-3 Change in R 2 , Attributable to Selected Variables 6 5-1
This empirical study investigates determinants of interstate real median home price differentials... more This empirical study investigates determinants of interstate real median home price differentials for the year 2005. While the literature on geographic cost-of-living differentials is well developed, the literature on geographic housing price differentials is much less so. Given the relatively large impact of housing prices on overall living costs, this research seeks to address this issue and shed light on specific factors influencing the real median price of housing across states. The OLS results imply that the real median price of a single-family home in a state is positively a function of the state’s population growth rate, its per capita income, and its relative amount of shoreline on major bodies of water, and negatively a function of toxic waste releases in the state, the state’s geographic area, and the presence of right-towork laws in the state.
Background: The age-adjusted death rate from drug overdoses in the United States per 100,000 indi... more Background: The age-adjusted death rate from drug overdoses in the United States per 100,000 individuals rose from 6.8 in 2010 to 17.1 in 2018. The most common explanation offered is the “deaths of despair†hypothesis. We identify additional factors that have contributed to the rise in drug overdose deaths in cities and counties. Methods: We utilize a period fixed effects model with a multi-variate panel data set for 94 independent cities and counties in Virginia for the period 2008 through 2017. Results: The drug overdose mortality rate is: (a) an increasing function (prob. <.05) of the percentages of the population that smoke, are obese, are White, are incarcerated, are receiving SNAP payments, have earned a high diploma, and are employed in mining, as well as the average minutes workers must travel to their jobs and the number of prescriptions written; and, (b) a decreasing function (prob. < .05) of median household income, population density, and the degree of market co...
Income expectations have been examined at considerable length as a result of their central role i... more Income expectations have been examined at considerable length as a result of their central role in the “permanent income” hypothesis formulated initially by Friedman and in the “life cycle” hypothesis formulated by Ando and Modighani. Income expectations have also been investigated in terms of their impact on a number of other issues, including investment in human capital, the efficacy of economic stabilization policies, and migration. This paper seeks to extend the latter body of literature by investigating how and to what extent certain income expectations proxies may influence human migration decisions in the United States.
This study seeks to identify key factors influencing the geographic settlement pattern of undocum... more This study seeks to identify key factors influencing the geographic settlement pattern of undocumented immigrants in the U.S., with a particular emphasis on the impact of economic freedom, and to extend the OLS findings in previous related studies. Indeed, this study adds to the literature in several ways. First, it provides current insights into the link between the settlement patterns of undocumented immigrants in the U.S. and economic freedom. Second, the study adopts a panel data-set and provides estimates using cross-section fixed-effects. Third, this study also endeavors to provide further insights into the impacts on the settlement patterns of undocumented immigrants of non-economic-freedom economic conditions, as well as the quality of life and spending on primary and secondary public education. The various state fixed-effects estimates provided in the present study yield several conclusions. In particular, according to these estimations, the settlement pattern of undocumented immigrants in the U.S is inversely a function of colder climates, higher crime rates, higher population density, and a higher cost of living. In addition, the interstate distribution of undocumented immigrants to the U.S. is positively a function of the annual per pupil outlays on public primary and secondary education; it is also positively a function of the degree of economic freedom, the principal focus of this study.
Within the context of the fixed-effects model, this study uses a2002-2007state-levelpanel dataset... more Within the context of the fixed-effects model, this study uses a2002-2007state-levelpanel dataset of the United States to investigate the relative effectiveness of real (constantdollar) federal cigarette excise taxation versus real (constant-dollar) state cigarette excise taxation in reducing cigarette smoking in the United States. The empirical estimates in this study find that each of two aggregate measures of the extent of cigarette smoking, namely, the number of packs of cigarettes smoked per capita annually and the percentage of the population classified as smokers, is a decreasing function of both the federal cigarette excise tax and the state cigarette excise tax. However, it is also found that a given percentage increase in there all federal excise tax has a much greater negative impact on both the number of packs of cigarettes smoked per capita annually and the magnitude of the percentage of the population classified as smokers than does an equal percentage increase in the real state cigarette excise tax.
In our paper on the impact of the Electoral College on voter participation rates (Cebu la and Mur... more In our paper on the impact of the Electoral College on voter participation rates (Cebu la and Murphy, 1980), we argue on theoretical grounds that, in states where there is a dominant political party, the Electoral College system acts to reduce the voter participation rate; these arguments are strongly supported by the empirical evidence. Professor Blair argues that our analysis '(.. . ignores the other side of the coin-the greatly magnified probability of influencing the national outcome accorded a voter in a very competitive state when the electoral vote is close.' In point of fact, however, we do to some extent address this issue in our theoretical discussion (see para. 2, p. 186), although not in our empirical analysis. In particular, we argue that, in states with relatively competitive political parties, the small differences in the political power structure will tend to result in a higher voter participation rate. On the other hand, Professor Blair is justified in his criticism of ou r conclusions. We concluded that the Electoral College should be abolished because it reduces voter participation; however, in reality, such a net effect may not be observed in the aggregate. Specifically, although clearly reducing voter participation rates in many states, the Electoral College may also raise the voter participation rate in other states. In terms of sheer statistics, the final net outcome in the aggregate is theoretically unknown. It is a priori conceivable t hat the aggregate voter participation rate may be lowered, unchanged, or even elevated due to the Electoral College system. As illustrated in our paper, however, the fact that 41 states are dominated by one party or the other implies that, in the aggregate, voter participation is most likely to decline. Our basic conclusion should nevertheless be remolded. It should now emphasize that the Electoral College system unequivocally distorts the geographic pattern of voter participation, artificially raising the rate in some states and artificially lowering it in others. This permits an attack on the Electoral College on grounds that this distortion is not likely to yield net social benefits. Given that the Electoral College induces a voter participation rate
The nested logit model has been extensively used in studies focused on transportation. This model... more The nested logit model has been extensively used in studies focused on transportation. This model is based on a choice modeling framework and is also applicable to the study of a proxy contest. In this study, we illustrate how the nested logit model can be effectively used to evaluate a case of a proxy contest. We also present the specific model that can be used to predict the possibility of the occurrence of proxy contests.
This study aims at testing the influence of ethical pressure, professional expectation in stress ... more This study aims at testing the influence of ethical pressure, professional expectation in stress and job quality via moderators of time pressure and self esteem. Accountants in Thailand are the sample. The results show that ethical pressure and professional expectation have positive and significant association with stress. In addition, stress is positively and significantly related to job quality. these findings provide some initial empirical support for suggests need for additional investigation of factors that influence an accountant's stress and for further investigation into the effect of ethical pressure, professional expectation on job quality. Therefore, contributions and suggestion are also provided for further research.
We are the first to empirically analyze whether the "Guidance on Accessing Capital for Minority, ... more We are the first to empirically analyze whether the "Guidance on Accessing Capital for Minority, Underserved, Veteran and Women-Owned Business Concerns" (Guidance) program was successful. The program was implemented to promote the Paycheck Protection Program (PPP) loans provided by Minority Depository Institutions (MDIs) in the second round compared to the first round of PPP. Using both loan-level data from the Small Business Administration (SBA) and balance-sheet-level data from the Federal Deposit Insurance Corporation (FDIC), we obtain compelling empirical evidence indicating that MDIs issued relatively more PPP loans (scaled by institution assets) than non-MDIs in the second round. This finding is evidence that the goal of dedicated access for MDIs under the Guidance program was successful. It also enhances the understanding of the PPP lending program and the impact of the Federal Reserve PPP Liquidity Facility (PPPLF) in terms of the role played by MDIs.
This study utilizes logistic regression to identify annual financial statement and performance ra... more This study utilizes logistic regression to identify annual financial statement and performance ratio factors that influenced the failure rate of U.S. small banks before and after the Financial Crisis identified during December 2007 through June, 2009. The study includes rates of small bank failure before and Financial Crisis spanning the years 2001 through 2014. The aim of the paper is to describe in large increase in U.S. small bank failure after the Financial Crisis. The Financial Crisis created drastic sustained changes of the financial system that were designed for large financial institutions. These changes may have created undue hardship for small banks and elevated the rate of small bank failures in the post-Financial Crisis period. Post-Financial Crisis bank failures had lower capital ratios and increased loan portfolio risk relative to the prior period. The combined effect of expansionist monetary policy, increased regulatory costs, and possession of illiquid real estate assets contributed to the higher rate of failure. The identification of factors that contribute to the increase in small bank failures after the Financial Crisis should assist bank managers, policy analysts, and scholars in developing alternative solutions for the future.
'Deaths of despair' is the most commonly cited explanation for the 151% increase in drug-overdose... more 'Deaths of despair' is the most commonly cited explanation for the 151% increase in drug-overdose deaths that occurred in the USA between 2010 and 2018. We use panel data describing 84 Virginia cities and counties to assess the validity of the deaths of despair hypothesis and alternate explanations that focus on disability rates, travel time to work, urban vs. rural location, educational attainment, racial and ethnic characteristics, the influence of other health conditions such as obesity, and supply-side factors that include pill availability and pharmacy market shares. We find deaths of despair to be only a partial explanation for the upsurge in drug-overdose deaths and conclude that a much broader view of the causes of drug-overdose deaths is merited.
Following this Introduction, there are five distinct studies that constitute this Special Section... more Following this Introduction, there are five distinct studies that constitute this Special Section of the Atlantic Economic Journal, where the emphasis is on financial economics and public policy. For purposes of the studies provided here, financial economics is broadly defined to include not only purely mainstream financial economics issues, such as banking, lending, and interest rate yields, but also market responses to tax policies and certain financial market and other public policies. Each of the studies provided here endeavors to provide new empirical insights that can be of use both to researchers and within the classroom as well. The study by Alm et al. (2020) is intended to help disentangle individual taxpayers' responses to audit rate changes undertaken by Internal Revenue Service (IRS) personnel. In pursuit of this goal, the authors collected individual-level data from a series of identical laboratory experiments in which only audit rates were changed, a de facto ceteris paribus-embracing procedure. The authors stress that the measures of income tax compliance are accurate and unambiguous measures that reflect individual choices. These measures were also derived in a setting that controlled explicitly for extraneous influences on individual behavior, which thereby can clearly permit identification of the impact of a change in a single policy variable (i.e., the audit rate) on the behavioral outcome of interest (e.g., individual income compliance). Although there are obvious reasons for caution in using and interpreting data collected from laboratory experiments, the laboratory offers an opportunity to investigate, in a controlled environment, individual responses to audit rate changes, and, importantly, to distinguish individual responses from average responses. Consistent with most of the previous related empirical research, the results obtained in this study imply that the average response across all taxpayers is to increase income
Using the Heteroskedastic-TOBIT model to deal with both censored data and a heteroskedasticity pr... more Using the Heteroskedastic-TOBIT model to deal with both censored data and a heteroskedasticity problem, this study address determinants of interstate differentials in bank closing rates over the 1982-91 period. It is found that the bank closing rate in a state is an increasing function of the cost of deposits, the percentage of state employment derived from oil and natural gas extraction, and the existence of unit banking regulations, while being a decreasing function of housing price inflation in the state, the average percentage growth rate of the GSP in the estate, and the percentage of banks in the state having federal charters.
Classifications of States 23 2-2 Means and Standard Deviations by State Grouping 6 2-3 Change in ... more Classifications of States 23 2-2 Means and Standard Deviations by State Grouping 6 2-3 Change in R 2 , Attributable to Selected Variables 6 5-1
This empirical study investigates determinants of interstate real median home price differentials... more This empirical study investigates determinants of interstate real median home price differentials for the year 2005. While the literature on geographic cost-of-living differentials is well developed, the literature on geographic housing price differentials is much less so. Given the relatively large impact of housing prices on overall living costs, this research seeks to address this issue and shed light on specific factors influencing the real median price of housing across states. The OLS results imply that the real median price of a single-family home in a state is positively a function of the state’s population growth rate, its per capita income, and its relative amount of shoreline on major bodies of water, and negatively a function of toxic waste releases in the state, the state’s geographic area, and the presence of right-towork laws in the state.
Background: The age-adjusted death rate from drug overdoses in the United States per 100,000 indi... more Background: The age-adjusted death rate from drug overdoses in the United States per 100,000 individuals rose from 6.8 in 2010 to 17.1 in 2018. The most common explanation offered is the “deaths of despair†hypothesis. We identify additional factors that have contributed to the rise in drug overdose deaths in cities and counties. Methods: We utilize a period fixed effects model with a multi-variate panel data set for 94 independent cities and counties in Virginia for the period 2008 through 2017. Results: The drug overdose mortality rate is: (a) an increasing function (prob. <.05) of the percentages of the population that smoke, are obese, are White, are incarcerated, are receiving SNAP payments, have earned a high diploma, and are employed in mining, as well as the average minutes workers must travel to their jobs and the number of prescriptions written; and, (b) a decreasing function (prob. < .05) of median household income, population density, and the degree of market co...
Income expectations have been examined at considerable length as a result of their central role i... more Income expectations have been examined at considerable length as a result of their central role in the “permanent income” hypothesis formulated initially by Friedman and in the “life cycle” hypothesis formulated by Ando and Modighani. Income expectations have also been investigated in terms of their impact on a number of other issues, including investment in human capital, the efficacy of economic stabilization policies, and migration. This paper seeks to extend the latter body of literature by investigating how and to what extent certain income expectations proxies may influence human migration decisions in the United States.
This study seeks to identify key factors influencing the geographic settlement pattern of undocum... more This study seeks to identify key factors influencing the geographic settlement pattern of undocumented immigrants in the U.S., with a particular emphasis on the impact of economic freedom, and to extend the OLS findings in previous related studies. Indeed, this study adds to the literature in several ways. First, it provides current insights into the link between the settlement patterns of undocumented immigrants in the U.S. and economic freedom. Second, the study adopts a panel data-set and provides estimates using cross-section fixed-effects. Third, this study also endeavors to provide further insights into the impacts on the settlement patterns of undocumented immigrants of non-economic-freedom economic conditions, as well as the quality of life and spending on primary and secondary public education. The various state fixed-effects estimates provided in the present study yield several conclusions. In particular, according to these estimations, the settlement pattern of undocumented immigrants in the U.S is inversely a function of colder climates, higher crime rates, higher population density, and a higher cost of living. In addition, the interstate distribution of undocumented immigrants to the U.S. is positively a function of the annual per pupil outlays on public primary and secondary education; it is also positively a function of the degree of economic freedom, the principal focus of this study.
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Papers by Richard Cebula