The Park Place Economist Copyright (c) 2013 Illinois Wesleyan University All rights reserved. http://digitalcommons.iwu.edu/parkplace Recent documents in The Park Place Economist en-us Mon, 29 Apr 2013 09:53:52 PDT 3600 <em>The Park Place Economist</em> 2013 Cover http://digitalcommons.iwu.edu/parkplace/vol21/iss1/22 http://digitalcommons.iwu.edu/parkplace/vol21/iss1/22 Fri, 26 Apr 2013 16:38:56 PDT Tara Gracer '13 <em>The Park Place Economist</em> http://digitalcommons.iwu.edu/parkplace/vol21/iss1/21 http://digitalcommons.iwu.edu/parkplace/vol21/iss1/21 Fri, 26 Apr 2013 14:13:02 PDT Analysis of the Influences of Inflation, Measured by Percentage Change in CPI, and Other Economic Variables on Stock Performance http://digitalcommons.iwu.edu/parkplace/vol21/iss1/20 http://digitalcommons.iwu.edu/parkplace/vol21/iss1/20 Fri, 26 Apr 2013 14:13:01 PDT This paper aims to explore the correlation between how some macroeconomic and microeconomic variables, especially the Consumer Price Index (CPI), predict stock performance. CPI is an index measuring the price level of goods and services consumers buy, with social security benefits and inflation tied to this index (Little, 2012). This study derives the expected return in the stock market as a result of fluctuations in percentage change in CPI, which is defined as inflation.

]]> Wei Zhang '13 The Comparison of Economic Assimilation Between Indian and Chinese Immigrants in the United States http://digitalcommons.iwu.edu/parkplace/vol21/iss1/19 http://digitalcommons.iwu.edu/parkplace/vol21/iss1/19 Fri, 26 Apr 2013 14:12:58 PDT The purpose of this research is to determine and compare economic assimilation of Indian and Chinese immigrants over time in the United States. On the one hand, because both groups come from fast growing developing countries in Asia, they could follow the same career path and face the same income disparity in the United States with natives. On the other hand, Indian immigrants have a higher level of English proficiency than Chinese immigrants do, so Indians might have an advantage over Chinese immigrants in terms of assimilation with natives. Based on data from IPUMS CPS (1995, 2000, 2005 & 2010), this paper applies the regression methodology, theories of assimilation and human capital, age earnings profile and the theoretical correlation between language proficiency and economic assimilation of immigrants. The study follows cohorts of Indian and Chinese immigrants in 1995, 2000, 2005 and 2010. It is designed to re-examine and expand the conclusions of previous studies and explain similarities and difference in economic assimilation for these two immigrant groups.

]]> Zongda Tu '14 How Do Economic and Political Factors Affect NASA Funding? http://digitalcommons.iwu.edu/parkplace/vol21/iss1/18 http://digitalcommons.iwu.edu/parkplace/vol21/iss1/18 Fri, 26 Apr 2013 14:12:56 PDT The research problem of this study is concerned with the United States’ investment in National Aeronautics and Space Administration (NASA). This funding is important for several reasons. Firstly, NASA’s accomplishments provide benefits not only to America, but to the rest of the world. All of humanity can be proud of landing a man on the moon. NASA’s space expeditions are indeed monumental in their own right, but human pride is not the only benefit of NASA. The technological advancements required to make such explorations possible have impacted our daily lives. NASA’s research is directly responsible for the CAT scan, microceramics used to fight cancer, personal water filters, and 1,300 other advances we use every single day. Some of NASA’s inventions are now used to save lives; while others are used to make life a little easier. It is important to understand that NASA is a significant technological agency and providing funding for it implies that America is committed to advancing technology. Our country is beginning to lose its once vast lead as the world leader in technology due to other competing nations and the decreased amount of available funds for NASA. Investing in NASA is important if we are going to maintain our status as a world leader. The question, therefore, is how much are we willing to sacrifice as a country in order to pursue advancements in this industry?

]]> Austin Smiley '13 The Effects of Temporary Immigrant Labor on the Information Technology Industry http://digitalcommons.iwu.edu/parkplace/vol21/iss1/17 http://digitalcommons.iwu.edu/parkplace/vol21/iss1/17 Fri, 26 Apr 2013 14:12:55 PDT There are a significant number of H-1B immigrants who are employed through specific outsourcing companies upon which United States’ companies then contract with for contract labor. According to Thibodeau & Machlis (2012), the top United States companies that employ H-1B immigrants are “offshore outsourcing companies”, including Cognizant and Infosys, which each employ approximately 5000 H-1B immigrants who are then contracted out to other United States companies for specific jobs. The fact that most H-1B immigrants are not employed directly by the United States companies for which they are working, implies that there will be some discrepancy between the temporary immigrant workers and the native workers in terms of: types of jobs, wage rate, and job security. Therefore, this paper aims to study how the recession of 2008 affected the market for workers in the IT industry, specifically focusing on the number of jobs lost or retained by temporary immigrant workers compared with those of native workers.

]]> Katelyn Rowley '13 An Analysis of the Relationship Between Employment and Crime http://digitalcommons.iwu.edu/parkplace/vol21/iss1/16 http://digitalcommons.iwu.edu/parkplace/vol21/iss1/16 Fri, 26 Apr 2013 14:12:54 PDT The relationship between aggregate unemployment rates and the incidence of crime has been frequently analyzed (Cantor and Land, 1985; Bennett, 1991; Bushway, 2011). However, the result of this analysis has been inconsistent. This discrepancy could be related to the inconsistent application of both economic and sociological theory, as well as several methodological issues with previous research and literature (Bennett, 1991). Becker’s 1968 paper describes crime as an individual decision made based on potential loss and gain. However, many prior analyses examine aggregate data, masking changes in individuals’ situations behind aggregate numbers.

The importance of predicting crime for law enforcement and public policy can have a large significance and magnitude on informed decisions. This can both reduce the cost of law enforcement and increase the efficiency of anti-crime measures.

]]> Deepak Mallubhotla '13 Does Gentrification Lower Crime: A Look at Granger-Casuality in Washington, D.C. http://digitalcommons.iwu.edu/parkplace/vol21/iss1/15 http://digitalcommons.iwu.edu/parkplace/vol21/iss1/15 Fri, 26 Apr 2013 14:12:51 PDT This project looks at the relationship between gentrification and violent crime rates, specifically in Washington, DC. Gentrification is a social phenomenon that involves middle and upper class residents moving into the city center where violent crime had previously acted as a barrier for keeping unwanted demographics out. An increase in demand for housing by the higher income residents drives up the cost of housing which, in turn, forces out the lower income residents. Higher income residents generally have lower crime rates, so the crime rate falls as the lower income residents with higher crime rates move. This, however, is all theory. This study explores whether crime rates fall as a result of these upper income families moving in or if the drop in crime is one more reason the upper income residents want to move.

]]> Will Lawrence '13 Improving Water Quality and Sanitation Through Growth and Aid: The Case of Africa http://digitalcommons.iwu.edu/parkplace/vol21/iss1/14 http://digitalcommons.iwu.edu/parkplace/vol21/iss1/14 Fri, 26 Apr 2013 14:12:49 PDT Poor water quality in the region is also a result of untreated waste water, such as industrial and domestic waste, entering water sources. The combination of dangerous waste and naturally existing chemicals in the bed rock allow for disease and contamination to spread. Water, therefore, has an extremely high level of toxic pollutants such as heavy metals, persistent organic pollutants, and biological contaminants. It is difficult for African countries to implement water management programs because many African governments do not establish water quality monitoring programs. Data on water pollution in present day is also as a result very limited, as are analytic laboratories where water quality can be studied. Without a structured framework for water governance, it has become apparent that African governments are finding it hard to manage their own water sources efficiently.

]]> Zahra Lalani '13 The Effects of the Great Recession on the Unemployment Rates of Minorities in the United States http://digitalcommons.iwu.edu/parkplace/vol21/iss1/13 http://digitalcommons.iwu.edu/parkplace/vol21/iss1/13 Fri, 26 Apr 2013 14:12:47 PDT While it is evident that the recession has affected a diversity of people in different ways of life, there is a unique connection between industries and ethnic groups. “Many of the demographic groups that exhibit larger cyclical variation such as those with lower education, minorities, and males, are more likely to be employed in the industries with greater exposure to cycles (Hoynes et. al, 2012). Construction and manufacturing have experienced the largest declines in employment rate of the post-WWII era, with a 13.7 percent decline in construction employment and a 10.0 percent decline in manufacturing employment (BLS, February 2012). Despite government programs to level the playing field such as affirmative action laws and other aid that is available to those seeking employment, there is a continuous disparity among different ethnic groups. With regard to “The Great Recession,” there is a disparity among the unemployment rates of Hispanics and other ethnic groups. This paper intends to explain why there is a disparity. Specifically, it addresses reasons that the unemployment rates of Hispanics are more adversely affected by the Great Recession when compared to the unemployment rates of other minority groups. Also, did concentrations of Hispanics in adversely affected industries contribute to higher unemployment levels during the Great Recession?

]]> Jarrod Hill '13 Allocating Scarce Water Resources:Examining if Price Differentials Exist in a Prior Appropriations Setting http://digitalcommons.iwu.edu/parkplace/vol21/iss1/12 http://digitalcommons.iwu.edu/parkplace/vol21/iss1/12 Fri, 26 Apr 2013 14:12:45 PDT This study examines the potential for a water leasing market within one singular basin in Southwestern, New Mexico. The goal of this research is to test the feasibility of a water market in the river basin and determine if price differentials are found in a prior appropriations setting. This was done through a laboratory experiment to test if participants would simulate an effective water leasing market in a basin within New Mexico. In order to assess the potential for a water leasing market, a water leasing market was designed to incorporate the hydrologic, engineering, institutional, and economic market of the Upper Mimbres Basin (Broadbent et. al., 2009). Using experimental economics, which uses computer programs and simulation to test an economic theory, the market value of water was induced through the set up of the experiment. The set up involved double auction where all bids and offers are presented publically and each bid and offer is presented simultaneously. The advantages of conducting a laboratory experiment is predominantly time, data that would usually take a year to collect can be done in a short amount of time. By simulating the water leasing market we can test participants’ reactions to drought conditions, which could take years to occur in the real setting of New Mexico.

]]> Hayley Harroun '13 Assessing Happiness: How Economic Factors Measure Up http://digitalcommons.iwu.edu/parkplace/vol21/iss1/11 http://digitalcommons.iwu.edu/parkplace/vol21/iss1/11 Fri, 26 Apr 2013 14:12:43 PDT The perception of economics as a dismal science for killjoys is challenged with the development of happiness economics. The economics of happiness refers to the study of subjective well being compared to income, unemployment, and other economic factors. In addition, the field expands the notions of happiness and welfare past basic measures of utility simultaneously posing serious policy implications. For example, if an economic policy is not contributing to the happiness of its constituents then what is its purpose? Furthermore, are policy makers catering to the needs of individuals or larger entities like corporations? The development of the economics of happiness is important when addressing the true well-being of people relative to the economy.

This study will assess the relationship between happiness and economic factors. The project will have a microeconomic framework and focus on individual well being. Specifically, it questions if one’s standard of living has a meaningful impact on their happiness level given the scarcity of time. The study will also explore the possible non-pecuniary factors that are important in relation to happiness. It is expected that non-pecuniary factors will have significant effect on happiness levels along with economic factors.

]]> Elizabeth Hancock '13 The Obstacles Facing India on Its Journey to Becoming a Developed Country http://digitalcommons.iwu.edu/parkplace/vol21/iss1/10 http://digitalcommons.iwu.edu/parkplace/vol21/iss1/10 Fri, 26 Apr 2013 14:12:41 PDT Among the developing countries in the world, India marks itself as being one of the fastest growing economies. India, the seventh-largest country in the world, borders the Indian Ocean to the south, the Arabian Sea to the south-west, the Bay of Bengal to the south-east, and shares borders with Pakistan, China, Bhutan, Burma, and Bangladesh. India is recognized by a long history of commercial and cultural wealth. India’s political and economic history has led it to become one of the fastest developing countries in the world. Despite being a newly industrializing nation, India continues to face challenges of over population, poor water and sanitation, and low adult literacy rates. These problems are addressed in this report along with the policy recommendations for India to overcome these challenges.

]]> Tara Gracer '13 et al. The Determinants of Economic Growth in the Transitional Economies of the Former Yugoslavia http://digitalcommons.iwu.edu/parkplace/vol21/iss1/9 http://digitalcommons.iwu.edu/parkplace/vol21/iss1/9 Fri, 26 Apr 2013 14:12:39 PDT Transitioning economies are special occurrences, which often contribute to their significance and need for analysis. The purpose of this study is to assess the determinants of economic growth in the recently independent transitional economies of the former Yugoslavia while using Slovenia as the main comparison country. Slovenia is deemed throughout the literature as the most successful state after transition, which is why it is used as the main comparison state. The countries included in this study are Slovenia, Croatia, Serbia, Bosnia and Herzegovina, Macedonia, and Montenegro. Kosovo has been excluded due to the instability created by its recent independence and its involvement in the Kosovo War. The time range of this study is from 2000 to 2011 due to the limited availability of data for all the countries since they are recently independent and the data is from the World Bank Database.

This study will first establish background knowledge of the Yugoslav region in order to set the stage and explain where economic growth was apparent before independence. Then, literature on the most successful state, Slovenia, will be discussed as well as the relevant information on the statuses of each country prior to the transitioning period. This study adds to the overall literature about the former Yugoslavian countries by examining the components of economic growth to Gross Domestic Product (GDP) per capita growth. After the theory section, the data and methodology sections state the two methodologies used: descriptive statistics and means hypothesis testing to determine what factors are simliar to Slovenia’s means. Results and discussion will conclude the study where Slovenia is ranked highest in terms of future success with Croatia and Serbia following in second and third.

]]> Tara Gracer '13 Brazil: The Impact of Business Conditions and Hyper-Urbanization on Development in the Country of the Future http://digitalcommons.iwu.edu/parkplace/vol21/iss1/8 http://digitalcommons.iwu.edu/parkplace/vol21/iss1/8 Fri, 26 Apr 2013 14:12:37 PDT In recent history, Brazil’s economy has featured the typical boom and bust cycle. In the “boom” phases of this cycle the nation has been deemed “The Country of the Future.” Unfortunately, Brazil has never been called “The Country of Now” because its booms are inhibited by culprits such as the bust in the cycle, a global downturn, or a lack of sufficient systems and infrastructure to continually support growth.

Brazil is situated in the northern part of South America, and covers 47.3 percent of the continent (United Nations, 2013). It ranks fifth in the world both in terms of area and population with 196,655,014 people (World Bank, 2011). Careful examination of Brazil’s economic data indicates that it is moving towards a service-based economy, an indication that the economy is becoming similar to those of high-income nations. However, high inequality remains a problem as evidenced by its high GINI coefficient.

]]> Nick Desideri '13 et al. Class of 2013 Senior Biographies http://digitalcommons.iwu.edu/parkplace/vol21/iss1/7 http://digitalcommons.iwu.edu/parkplace/vol21/iss1/7 Fri, 26 Apr 2013 14:12:35 PDT Matt Bishop '14 et al. Professor Ilaria Ossella-Durbal’s Sabbatical Adventures http://digitalcommons.iwu.edu/parkplace/vol21/iss1/6 http://digitalcommons.iwu.edu/parkplace/vol21/iss1/6 Fri, 26 Apr 2013 14:12:33 PDT Melissa Seeborg provides a brief overview of Professor Durbal-Ossella's sabbatical research, which focus on developing content for her "Economics of Developing Countries" course.

]]> Melissa Seeborg '13 Experimental Economics Comes to Life – Prior Appropriations in the Mimbres River Basin http://digitalcommons.iwu.edu/parkplace/vol21/iss1/5 http://digitalcommons.iwu.edu/parkplace/vol21/iss1/5 Fri, 26 Apr 2013 14:12:31 PDT In this short piece, Melissa Seeborg describes a study to explore price differentials in the water leasing market, led by Professor Craig Broadbent.

]]> Melissa Seeborg '13 Letter from the Editor http://digitalcommons.iwu.edu/parkplace/vol21/iss1/26 http://digitalcommons.iwu.edu/parkplace/vol21/iss1/26 Fri, 26 Apr 2013 14:12:29 PDT Tara Gracer '13 Editorial Board http://digitalcommons.iwu.edu/parkplace/vol21/iss1/25 http://digitalcommons.iwu.edu/parkplace/vol21/iss1/25 Fri, 26 Apr 2013 14:12:28 PDT Table of Contents http://digitalcommons.iwu.edu/parkplace/vol21/iss1/24 http://digitalcommons.iwu.edu/parkplace/vol21/iss1/24 Fri, 26 Apr 2013 14:12:26 PDT Title Page http://digitalcommons.iwu.edu/parkplace/vol21/iss1/23 http://digitalcommons.iwu.edu/parkplace/vol21/iss1/23 Fri, 26 Apr 2013 14:12:24 PDT