Copyright (c) 2009 Illinois Wesleyan University All rights reserved. http://digitalcommons.iwu.edu/parkplace Recent documents in The Park Place Economist en-us Wed, 18 Nov 2009 09:42:31 PST 3600 http://digitalcommons.iwu.edu/parkplace/vol7/iss1/20 http://digitalcommons.iwu.edu/parkplace/vol7/iss1/20 Wed, 22 Apr 2009 14:14:51 PDT Economics http://digitalcommons.iwu.edu/parkplace/vol7/iss1/19 http://digitalcommons.iwu.edu/parkplace/vol7/iss1/19 Wed, 22 Apr 2009 14:14:49 PDT Derivatives, namely, futures, options and swaps, are off-balance sheet instruments that allow banks to transform the duration of their balance sheets in order to manage market risk without incurring additional capital requirements. Banks' use of derivatives has been growing rapidly in recent years due, in part, to regulatory changes concerning the amount of capital banks are required to hold as well as an increase in market risk exposure. The increasing popularity of financial derivatives has brought about much concern regarding the potential risks and complexities involved in derivative trading. This paper will explore the determinants of the use of such instruments by commercial banks to ascertain whether they increase or decrease banks' exposure to risk. Katie Hundman '98 Economics http://digitalcommons.iwu.edu/parkplace/vol7/iss1/18 http://digitalcommons.iwu.edu/parkplace/vol7/iss1/18 Wed, 22 Apr 2009 14:14:48 PDT Congress has discussed several reform proposals [for the Social Security system], but has failed to agree on a solution that maintains the redistributive structure of the current system while also providing economic advantages. This paper consists of several additional sections that logically demonstrate why a fully funded system with the buildup of a large permanent trust fund is the most advantageous Social Security reform proposal. Nathan Taulbee '00 Economics http://digitalcommons.iwu.edu/parkplace/vol7/iss1/17 http://digitalcommons.iwu.edu/parkplace/vol7/iss1/17 Wed, 22 Apr 2009 14:14:46 PDT The purpose of this paper will be to analyze the significance of the effects current payment technologies have had on money supply and demand, and their determinants (the interest rate and income). Specific attention will be given to M1 and M2 stocks and velocities, the Fed Funds Rate and National Income, and how their interaction with each other has been affected by technology development. Using Electronic Funds Transfer and Automated Teller Machine introduction as a proxy for current technological development in a cointegration test model, it is found that current payment technologies have had mixed effects on money supply and demand, and the interaction between their associated factors within the IS-LM framework. Patrick Holly Jr. '99 Economics http://digitalcommons.iwu.edu/parkplace/vol7/iss1/16 http://digitalcommons.iwu.edu/parkplace/vol7/iss1/16 Wed, 22 Apr 2009 14:14:44 PDT Lawmakers from both parties are proposing sweeping changes in the income tax system, but they achieve this in significantly different ways. The question is, which approach would be best for taxpayers and the economy? In order to answer this question, it is necessary to identify what is wrong with the current system and then determine how each reform plan addresses each of these flaws. The four most popular reform proposals are the Flat Tax, the Value Added Tax, the National Retail Sales Tax, and the USA Tax. In the following discussion, I will test these proposals on the different criteria that are needed to evaluate any tax structure. Obviously, no tax structure can be perfect. Yet, after evaluation, I believe that the Flat Tax is the best choice, followed by the VAT and the Sales Taxes, and the USA Tax. Sunil Jagwani '00 Economics http://digitalcommons.iwu.edu/parkplace/vol7/iss1/15 http://digitalcommons.iwu.edu/parkplace/vol7/iss1/15 Wed, 22 Apr 2009 14:14:43 PDT Through the years, labor economists have been studying the effects of immigrants within different labor markets. This paper attempts to shed light on some of the issues surrounding America's sudden change in heart. Do immigrants suppress the wages of native born workers and increase the income disparity? Do they lead to higher unemployment and labor market crowding? And finally, is there room for improvement, or will immigrants prove to be a drain on America's resources and economic well-being? Kristopher Kaneta '00 Economics http://digitalcommons.iwu.edu/parkplace/vol7/iss1/14 http://digitalcommons.iwu.edu/parkplace/vol7/iss1/14 Wed, 22 Apr 2009 14:14:41 PDT The purpose of this paper is to test family income, race, gender, educational attainment, parental home ownership, age, marital status and family size to determine the factors of home ownership. This paper differs from past research in that it applies human capital investment theory to the home ownership decision. In Section II, I explore the human capital investment theory and adapt it to the home ownership model. Section III develops the empirical model while section IV interprets the results. Section V summarizes the paper and provides concluding remarks. Jaclyn K. Hood '99 Economics http://digitalcommons.iwu.edu/parkplace/vol7/iss1/13 http://digitalcommons.iwu.edu/parkplace/vol7/iss1/13 Wed, 22 Apr 2009 14:14:39 PDT The United Auto Workers (UAW) strike at General Motors in the summer of 1998 had a large impact on both the microeconomy and the macroeconomy of the United States. GM's total sales, profits, and market share all have declined because of the strike. Not only did the strike have an adverse effect on GM's financial status, but the nation's total output, sales, price level, consumer spending, trade deficit, and employment were all affected. Many satellite businesses depend on GM for sales, service, products, and supplies. The combination of the losses GM incurred, the losses of satellite businesses, along with other adverse ripple effects accounts for a significant part of the decline in U.S. GDP growth. Korey Harlyn Coon '00 Economics http://digitalcommons.iwu.edu/parkplace/vol7/iss1/12 http://digitalcommons.iwu.edu/parkplace/vol7/iss1/12 Wed, 22 Apr 2009 14:14:37 PDT Melissa Arms '99 Economics http://digitalcommons.iwu.edu/parkplace/vol7/iss1/11 http://digitalcommons.iwu.edu/parkplace/vol7/iss1/11 Wed, 22 Apr 2009 14:14:36 PDT Patrick Holly Jr. '99 Economics