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Economics Senior Project Abstracts
2002
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Name:Jonathan Bazylak
Date: Spring, 2002
Major:Economics
Thesis Committee: Donald Goldstein, Behrooz Afrasiabi
Title: Estimating the Cost Effects of Implementing ISO
14001 for Small Businesses
The thesis of this paper is to investigate the cost
effects of implementing ISO 14001 on a small business. This is done
through an investigation of ISO 14001, contemporary microeconomic cost
theories, and environmental-management advocates' philosophies. After
gaining significant knowledge of the aforementioned areas, a case
study of DIC Tool/Hytron is used to estimate the costs of implementing
ISO 14001. The focus of the cost research is based on the opportunity
cost of human resources, the sum of explicit and implicit costs. After
the total cost of ISO 14001 implementation for DIC Tool/Hytron is
estimated, generalizations are made to allow the information yielded
from the empirical research to be applied to small businesses.
Finally, the benefits of ISO 14001 certification are discussed to shwo
the balance between the costs and benefits of ISO
14001.
Name: Michael D. Belt
Date: Spring, 2002
Major(s): Economics
Thesis Committee: Janine Sickafuse, Donald Goldstein
Title: Impacts of Misleading Income Management
Strategies on the Economy
2001 was a year full of controversy surrounding the
accounting industry. As misleading income management strategies
achieved through the manipulation of accounting methodology were
discovered, investors, creditors, and other external users began to
lose confidence in the accuracy of financial statements. Initially,
the economy will experience the negative impacts of these misleading
income management strategies. However, in the long run, the accounting
industry will make the appropriate adjustments to accounting
methodology, increasing the overall efficiency of the economy and
allowing the economy to recover from the initial negative
impacts.
I chose to analyze the implementation of FASB
Statement Numbers 141 and 142, which changed the methods of accounting
for business combinations, and the controversy surrounding Enron
Corporation's bankruptcy. In order to gather information regarding the
two controversies, I subscribed to economic periodicals, such as the
Wall Street Journal and Business Week. Information regarding the
implementation of rules was found in the above periodicals as well as
in official releases by the regulating agencies. Through significant
research using the above sources, I was able to find ample information
to support my thesis.
Short term impacts resulting from the misleading
income management strategies analyzed in this paper include,
significant corporate write-offs, lack of investor confidence,
depressed stock prices and the potential bankruptcy of Arthur
Andersen. However, the long term impacts will prove to be beneficial
to the economy. The revising of accounting methodology will increase
the accuracy of financial statements. Therefore, businesses and
investors will make more educated investment decisions, resulting in a
more efficient allocation of capital. The economy will adjust and
eventually benefit as the accounting industry responds to the
misleading income management strategies exemplified in this
paper.
Name: Kimberly Burke
Date: Spring, 2002
Major(s): Economics
Thesis Committee: Behrooz Afrasiabi, Stephen Casler
Title: Investigating the Relationship between the Stock
Market and Business Cycles
There were two major stock market crashes in the
history of the United States' economy in 1929 and 1987. These crashes
had very different effects on real activity of the economy. The crash
of 1929 caused a recession that lasted ten years, referred to as the
Great Depression; however, the crash of 1987 did not have as great
effects on business cycles, and the economy was able to quickly
recover after this crash. Also, the media tends to exaggerate the
effect of the stock market on the economy by only reporting stock
market information when reporting business news. Because of the weak
impact of the second crash on the economy and the media's
intensification of the effect of the stock market, I would like to
further investigate the relationship that exists between the stock
market and business cycles. In order to accomplish this task, I first
research the history of the two stock market crashes and their effects
on the macroeconomy. Next, I theoretically establish the process
through which the stock market affects business cycles and vice-versa.
I then develop a vector autoregression model and use Granger-Causality
tests to examine whether a causal relationship exists between stock
prices and GDP. The results from these tests confirm that a causal
relationship between the stock market and business cycles that is
jointly determined does exist in the economy
today.
Name: Matthew Carman
Date: Spring, 2002
Major(s): Economics
Thesis Committee: Earl Adams, Janine Sickafuse
Title: The Development of Independence for the Federal
Reserve System
This article explores the development of the Federal
Reserve System, since its founding in 1913. It breaks down the Federal
Reserve's existence into four main time periods: 1913-1929, 1930-1949,
1950-1979, and 1980-1987. The main objective of policy as well as the
different tools of monetary policy are thoroughly explained in each
segment. The important events of each time period are summarized and
related to the actions of the Federal Reserve in order to understand
the thought behind each of its decisions. The relationship between the
Treasury and the Federal Reserve is analyzed, providing both the
negative and the positive aspects of a close relation between them.
The main focus is on the Federal Reserve's obtaining independence from
the Federal government, explaining in full the events leading up to
the "accord." The conclusion will offer the author's opinion of the
significance of the Federal Reserve's independence and whether it is
necessary that such an important branch of the Federal government have
as much leniency in its decisions as the Federal Reserve does.
Name: Ed Casciato
Date: Spring, 2002
Major(s): Economics
Thesis Committee: Antoni Moskwa, Steve Casler
Title: The Automobile Shock
This project is composed of a detailed explanation of
what happened during the automobile shock in the 1970's. This was the
period when the United States economy slipped into a recession and the
Japanese automobile industry began to take over. The automobile shock
was a result of many economic factors that occurred. In my project I
explore each of these economic factors and describe the adverse effect
it had on the auto industry. One of the main economic factors that I
described in detail was the oil crisis. This crisis set the stage for
the automobile shock, in which gasoline prices rose and the U.S. gas
guzzlers could not compete with the more efficient Japanese vehicles.
The final part of this study is the most interesting and focuses on
how the U.S. auto industry regained its stature. This portion of the
project focuses on CEO's such as Lee Iacocca and Roger Smith, and
shows how they have had both positive and negative effects on the
industry. Overall, this study is both historical and analytical;
historical inthe way it describes the events in detail and analytical
by showing why the events occurred.
Name: Elizabeth Cipolla
Date:
Spring, 2002
Major(s): Economics
Thesis Committee: Tomas
Nonnenmacher, Stephen Casler
Title: The Agricultural Adjustment Administration during
the Great Depression: The way in which it intervened in the agricultural
sector of the American economy
This paper focuses on a significant time in American
economic history, the Great Depression. It is an analysis of the
Agricultural Adjustment Administration (AAA), and the way in which it
intervened in the agricultural market economy to increase the price of
farm commodities. The interesting question at hand is was this
intervention a necessary and wise decision?
Farmers encountered financial distress beginning in
the early 1920's which worsened after the depression had set in. The
AAA was given the power to intervene in a variety of ways in the
agricultural market. The goal of these efforts was to control the
overproduction problem in a way that would lead to higher prices and
incomes for farmers. The various methods such as production quotas,
acreage restrictions, taxation and price support programs are
evaluated in the context of the supply and demand model. The immediate
and long-term effects of the AAA are evaluated and discussed, and the
conclusion is reached that yes, government intervention was a
necessary and wise decision.
Name: Mike Colbert
Date:
Spring, 2002
Major: Economics
Thesis Committee: Janine Sickafuse,
Don Goldstein
Title: An investigation of Division I college athletes:
Do they deserve to be paid to play?
The National Collegiate Athletic Association,
or NCAA, is an organization that is in complete control of college
athletics. They face many difficult decisions when it comes to the
student-athletes involved in the association. One major problem that
seems to become more and more popular is whether or not the NCAA
should pay these players for their service. This senior comprehensive
project explores the NCAA from the standpoint of how it works, who
makes major decisions within the organization, and how these decisions
are enforced. The NCAA faces many underlying problems that may make
the decisions on pay to play easier to make. Another topic discussed
in this paper is the concept of these athletes being considered
amateurs. The NCAA argues that under amateur status, a cash payment is
not allowed. In the end, it will be concluded that the NCAA should pay
these athletes. A proposal for payment is given that is fair to the
athletes, as well as the NCAA. In any job, the people at the workplace
deserve to be treated fairly. Why should anyone have the right to take
advantage of another person? In the NCAA's case, they are taking
advantage of college kids and not rewarding them like they deserve. If
the NCAA pays the athletes, they will not only make the athletes
happy, they will see that their organization will avoid a lot of the
problems they face today.
Name: Jarrod Essey
Date: Spring,
2002
Major(s): Economics
Thesis Committee: Earl Adams, Janine
Sickafuse
Title: The Economic Effects of Losing the World Trade
Center
This composition contains three chapters: one
on the history of the World Trade Center, one on the outlook of the
global economy and one of the outlook of New York City's economy. The
chapter dealing with the World Trade Center gives a history of the
Trade Center, as well as statistics such as office space and costs
that are associated with building the Trade Center. The chapter
dealing with the global outlook examines the effects that losing the
Trade Center have had on other areas of the world. This includes an
examination of areas that are dependent upon travel or exporting goods
to make a profit, as well as other ways that the rest o the world has
been affected by the loss of the Trade Center. The chapter dealing
with the outlook of New York City's economy contains information on
the amount of money that was lost due to the loss of the Trade
Centers. It also examines other costs, such as cleanup, loss of human
capital and many other costs. The conclusion summarizes all of the
chapters, and it also contains personal input as to what the future
holds for the Trade Center and the global economy, as well as New York
City's economy.
Name: Jill J. Fuduric
Date: Fall, 2001
Major(s): Economics
Thesis Committee: Donald Goldstein, Janine Sickafuse
Title: Why did the ABL fail and why is theWNBA still in
existence?
This study is going to be an economic analysis of the
Women's National Basketball Association in comparison with the once
existing American Basketball League. It will try to answer why the
ABL failed and the WNBA seems to be doing quite well. It will also
try to find if the difference in each league's ownership has forced
the ABL to fail and the WNBA to succeed. The NBA owns the WNBA and
the NBA has much monetary support behind the WNBA, while the ABL was
owned privately and operated as a more traditional league. This argument
will be contrasted with the idea of Quirk and Fort that professional
sports leagues operate as monopolies naturally. This study is also
going to explore Quirk and Fort's argument as to when and where rival
leagues may or may not succeed.
Name: Metasabia Hailemichael
Date: Spring, 2002
Major(s): Economics
Thesis
Committee: Behrooz Afrasiabi, Antoni Moskwa
Title: Oil Price Shocks and the Stock Market
Oil price shocks have an impact on a firm's
productivity. Since changes in the stock market are due to changes in
corporate profitability, oil proce shocks can affect the stock market
causing firms' stocks to adjust according to the shocks. This paper
attempts to determine the link between stock prices and fluctuation in
oil prices as a whole. These implications of oil prices are tested via
Granger's causality. The Granger's causality test provides evidence
for a symmetrical link between the oil price shocks and the stock
market for the period of 1950-2001. Overall, the evidence suggests
that the oil price shocks do cause the stock market to adjust with the
shock.
Name: Clifford Hein
Date: Spring,
2002
Major(s): Economics
Thesis Committee: Earl Adams, Behrooz
Afrasiabi
Title: As a result of September 11 it has been more
risky to invest in the airline market, in fact a lot riskier than before
the happenings of September 11
On September 11, 2001 a great tragedy struck the
United States of America. Two airplanes went crashing into the World
Trade Center Towers, costing thousands of people their lives. Because
of this event the airline industry has suffered an enormous downturn.
My thesis is that because of September 11 it has become more risky to
invest in the airline market, in fact a lot riskier than before the
happenings of September 11. There have been many new rules and
regulations that have altered the industry. The economy and government
are pressing for better airline security. In spite of the lack of
consumer confidence and the rules and regulations that are being
instilled across the nation, the airline market has not beomcing any
riskier to invest in today. The industry has been working feverishly
to try and remedy the September 11 losses.
Name: Robert Jacobs
Date: Spring,
2002
Major(s): Economics
Thesis Committee: Earl Adams, Antoni
Moskwa
Title: Economic Crime Units of the FBI
This paper allows you as a reader to get more of an
understanding of how the Federal Bureau of Investigation and its
Economic Crimes Unit operates. After reading this paper you will
understand not only how the Federal Bureau of Investigation is
organized, but also what types of crimes the FBI's Economic Crimes
Unit investigates and even some inside tips from the perpetrator's
perspective in regards to how the crime can be accomplished
successfully. You will also be made aware of prior investigations and
the outcomes of those investigations. This is a very informative and
interesting paper and will only allow you to gain a better
understanding of the bureau that continues their everyday by
maintaining a safe atmosphere for you to conduct
business.
Name: Chad Kaldor
Date: Spring, 2002
Major(s): Political Science and Economics
Thesis Committee: Robert Seddig, Dan Shea, Tomas Nonnenmacher, Behrooz
Afrasiabi
Title: The Original Intent of the Sherman Act: Populists,
Chicagoans, and the Microsoft Case
Name: Joshua Konesni
Date: Spring, 2002
Major(s): Economics
Thesis Committee: Don Goldstein, Steve Casler
Title: The Capital Asset Pricing Model: how accurate is
it in ranking portfolios by risk and return?
Name: John Paul Marcantonio
Date: Fall 2001
Major(s): Economics
Thesis Committee: Stephen Casler, Tomas Nonnenmacher
Title: The Effect of Increased Social Security Benefits
on the Saving Rate: A study of the Life Cycle Hypothesis
Name: James Marks
Date: Spring, 2002
Major(s): Economics
Thesis Committee: Tomas Nonnenmacher, Asuman Baskan
Title: Agency Relationship: The Contractual Benefits of
being a Network Marketing Representative
In any firm there is an employment relationship
between the employer and the employees because of employee contracts.
The contracts offered in the network marketing industry create a
unique agency relationship. These contracts define the rights and
responsibilities of the representatives. The paper begins with an
historical account of the network marketing industry since the 1920s.
The next chapter examines agency theory and applies it to the network
marketing industry. Finally, a case study of Ideal Health
International, a network marketing company that currently markets
customized nutritional products, sent a survey to representatives and
a regression is run testing hypotheses generated in the theory
chapters.
Name: Jeff Miller
Date: Spring,
2002
Major(s): Economics
Thesis Committee: Tomas Nonnenmacher,
Asuman Baskan
Title: The Erie Canal: Its Economic Impact in the
Creation of a Socially Aware Middle Class
This Senior Project examines the creation of the
middle class in New York in the early 1800s. This was a period of
revivalism and social action at an intensity previously unseen in the
United States. Prior to the nineteenth century, American society in a
two-class system. The project follows the economic development of the
United States as it pertains to a new class, the middle class, in New
York and attributes the formation of the middle class and the social
movements that followed to the construction of the Erie Canal. Because
the Erie Canal was the first true transportation link to the West, the
Project can analyze its impact on middle class formation of upstate
New York in the absence of many factors, allowing for a more accurate
representation of how this component led to the creation of a middle
class. Data was collected from historical reports, books, and essays
to detail the beginnings of a social revolution as the end effect of
an economic revolution. The Senior Project concludes that the Erie
Canal was the most influential factor in the formation of a middle
class society in upstate New York.
Name: Mark J. Minadeo
Date: Spring,
2002
Major(s): Economics
Thesis Committee: Janine Sickafuse,
Behrooz Afrasiabi
Title: Are Financial Ratios a Reliable Source of
Information when Forecasting Stock Prices?
Financial statements are the means in which analysts
use when evaluating a company and determining the recommendations of a
stock whether it be buy, hold, or sell. With advancements in
technology, individuals can now retrieve the same informations as the
analysts. This gives the individual investor the capability of
breaking down the financial statements and evaluating companies
themselves. This newly acquired knowledge can safeguard the individual
from making irrational decisions when investing and relying on
untrustworthy institutions to invest their money for them. He can do
this by dissecting the financial statements and placing the numbers in
a simple ratio analysis format. This allows the investor to be able to
look for company trends and gives him the option of comparing a
company's ratios to those of industry leaders. However, in the current
business atmosphere, much pressure has been placed to show corporate
earnings, and many companies have achieved these results unethically.
Ironically, in today's setting the individual is more informed, but is
continually at a disadvantage due to the widespread corporate ability
to mislead investors with falsified financial
statements.
Name: Jeremy Noonan
Date:
Spring, 2002
Major(s): Economics
Thesis Committee: Don Goldstein,
Janine Sickafuse
Title: Should Full Scholarship Division I Athletes
Deserve a Monetary Stipend?
This comprehensive project investigates the National
Collegiate Athletic Association (NCAA) and the student athletes that
participate in the NCAA in order to determine if full scholarship
Division I athletes deserve a monetary stipend based upon the NCAA
acting as a monopsony. It was determined that the NCAA has a monopsony
over collegiate athletics as a whole, but it can be seen that the
monopsony is actually over college athletic programs. The NCAA invests
in collegiate athletics by giving each member's athletic program
money. The return on these investments are the revenues produced by
the production of athletic competitions. In return for these
investments the institutions agree to follow the rules and regulations
set forth by the NCAA. Therefore, the NCAA controls its constituents,
but through them controls the athletes. In response to this, it was
concluded that based upon the substantial revenues generated by the
NCAA it is necessary to allow full scholarship Division I athletes to
receivea monetary stipend based upon the NCAA acting as a
monopsony.
Name: Pieter J. Ockers
Date: Spring,
2002
Major(s): Economics
Thesis Committee: Stephen Casler, Tomas
Nonnemacher
Title: The Economics of Immigration: Wage Impacts of
Immigrants
Immigrants are used as complementary or substitutable
labor inputs in the production process. In "The Economics of
Immigration: Wage Impact of Immigration," immigrants are assumed to be
used as substitutes and as such an influx of immigrants serves to
increase the overall labor supply driving wages down. The discussion
opens witha brief historical overview of the various waves of
immigrants who have claimed the US as their permanent residence. An
introduction of the current issues of debate relative to immigration
follows. The derivation of a model, by which to predict the wage
impact of immigrants, is then introduced relying heavily on the
theoretical dynamics of labor supply and demand. The predictions made
with the use of this model are subsequently tested by empirical
analysis. Wages are regressed on labor supply and demand shift factors
in order to estimate the impact on wage of an increased proportion of
immigrants in the US population. We estimate that a one percent
increase in the proportion of immigrants implies a decline in the
average weekly age rate by $19.20 (holding all other variables
constant).
Name: Nicholas Paolini
Date: Spring
2002
Major(s): Economics
Thesis Committee: Donald Goldstein,
Stephen Onyeiwu
Title: The Increased Demand of R&D in U.S.
Industries: Evidence of 5 U.S. Companies
Name: Brian Peterson
Date: Spring,
2002
Major(s): Economics
Thesis Committee: Tomas Nonnenmacher,
Behrooz Afrasiabi
Title: Theories on the Relative Efficiency of Slave
Labor
Slavery was used to supply a majority of the work
force for the agricultural sector of the antebellum south. The debate
over whether or not this form of labor operated efficiently and was
productive has been under consideration since slavery existed. In the
1970's hypotheses were proposed indicating that slavery held a
considerable advantage in efficiency over northern free labor and
small famrs in the South using slave labor. These claims were heavily
disputed and under question until more recent work using advanced
production functions were employed to obtain better empirical evidence
in support of the theory that large slave farms possessed an
efficiency over small slave farms based on the technological advantage
of the gang system.
Name: Alex Primis
Date: Spring,
2002
Major(s): Economics
Thesis Committee: Behrooz Afrasiabi,
Steve Casler
Title: Random Walks or Trends: Which Path do Stock
Prices Follow?
Many people have struck it rich by investing in the
market and many have lost all of their assets. So the questions that I
sought to answer had abviously been asked by many people before me. In
act, there are innumerable versions of market theories that have all
been tested and retested over and over again. And why shouldn't they
be? If one of these analysts found a market theory that was proven and
maintained, then their sucess in the market would be endless and a
fortune could be made. Hence, althought stock price determination and
market trend theories have been analyzed to death, economists still
embark on analysis of stock price determination theory. I chose two
market theories to analyze that had opposing views of the issue of
market trend existence. I chose to analyze and test the Random Walk
hypothesis and the Firm Foundation Theory.
Name: Jaimie Sakmar
Date: Spring,
2002
Major(s): Economics
Thesis Committee: Janine Sickafuse,
Donald Goldstein
Title: A Cost-Benefit Analysis of the Construction of
PNC Park and Heinz Field: Are new stadiums economically
beneficial?
Although PNC Park and Heinz Field have already been
built, they still evoke controversy over how they were funded and
whether or not the benefits are sufficient to cover the costs.
Pittsburgh was unable to resist the stadium promise of prestige and
money. This fact, coupled with the fear of losing its baseball team,
caused city officials to lobby a proposal for the construction of the
two facilities for over five years. From the very beginning, officials
were promising economic justification for the construction of a new
ballpark and football stadium. They repeatedly emphasized the direct
and indirect economic efforts that would result from the presence of
these facilities and the events held there. These officials relied
heavily on economic rationales in their efforts to gain
support.
Through an extensive cost-benefit analysis, this
research paper examines whether the costs outweigh the benefits or
vice versa. A cost-benefit analysis offers a method of evaluating
policy measures by taking into account both qualitative and
quantitative costs and benefits.
In the particular case of the two facilities built in
Pittsburgh, one has the advantage of looking in retrospect. The
decisions have already been made. This composition examines these
decisions and, again, attempts to determine if the benefits are indeed
greater than the costs, which would ultimately make the stadiums wise
investments. This research paper is based on extensive research on PNC
Park, Heinz Field, and the Pittsburgh economy, as well as on general
examinations of similar situations in other cities.
Sports have become more than the revreational activity
they once were. They have become an issue in many of the larger cities
throughout the country. As long as public subsidization exists as a
funding source for stadiums, it will always be a controversial issue
that cities must face. When public funding is at stake, wise
investment decisions must be made. It is in policy-makers' best
interest to us a cost-benefit analysis in these situations, and this
composition does just that.
Advocates of these projects are consistently rallying
around the idea that these facilities are catalysts of local and
regional economic development, as well as anchors for downtown
revitalization projects. They argue that the host city's image will be
improved, spending will increase, new spending will have a multiplier
effect, and tax revenues will increase so much so that they exceed the
subsidies used for the construction. However, the information
introduced in this composition indicates that the impact of stadiums
tends to be modest, at best, in most cities, and Pittsburgh is no
exception. There is no evidence that enough revenues are generated to
even come close to covering the subsidies required. Although there
seems to be plenty of Steelers' and Pirates fans both in and out of
Pittsburgh, sports seem to represent a suprisingly small part of
Pittsburgh's economy.
To reiterate, though a cost-benefit analysis and many
economic theories, this composition examines the impact of PNC Park
and Heinz Field on Pittsburgh's economy. The goal of this paper is to
weigh the costs and benefits against one another, and ultimately make
a compelling case against the construction of PNC Park and Heinz Field
based on the data gathered and analyzed throughout this
paper.
Name: Geoffrey L. Schultz
Date: Fall 2001
Major(s): Economics
Thesis Committee: Tomas Nonnenmacher, Earl Adams
Title: Modeling the Economics of Profit Maximization in
Monopolistic Competitive Firms: An Analysis of the Pharmaceutical Industry's
Direct-to-Consumer Advertising Strategy
Successful advertising and marketing are very difficult
and complex tasks within the pharmaceutical industry. In recent history,
most pharmaceutical manufacturers have begun to advertise their products
directly to consumers in an attempt to increase sales and, consequently,
profits. This direct-to-consumer form of advertising accounts for
only a portion of all spending on advertising by drug companies; however,
it is possibly the most influential form, as well as the most worthy
of investigation. This paper examines the way in which pharmaceutical
firms allocate funds in their marketing budgets towards consumer ads.
The paper also tries to evaluate the effectiveness of market segmentation
Name: Janie Senchak
Date:
Spring, 2002
Major(s): Economics
Thesis Committee: Steven Casler,
Janine Sickafuse
Title: Occupational Segregation
This project explores the trends of occupational
segregation within various industries. It also tries to determine
which factors have been able to reduce occupational segregation within
management positions. Chapter One simply serves as an introduction. it
discusses how the views and attitudes concerning women in the United
States have changed drastically over the years. The introduction also
raises several pertinent questions that will be answered in later
chapters. Chapter Two presents an overview of women in the labor force
within the United States. It introduces factors such as educational
attainment, divorce rates, fertility rates, wage gaps, which influence
women's overall participation in the labor market. These factors are
significant because they have an effect on the occupations that women
choose to enter as well. This chapter also lays the foundation for
understanding the degree of occupational segregation in certain
occupations. Chapter Three is devoted to the human capital model,
which was originally developed by Gary S. Becker. Ths human capital
model serves as a supply-side explanation as to why occupational
segregation exists between males and females in various occupations.
Chapter Four uses Becker's human capital model and applies it to the
variables discussed in Chapter Two in order to explain the decrease in
occupational segregation in management positions. It utilizes a
multiple regression model in order to show that a relationship exists
between certain economic trends and the percentage of females in
management positions. According to the regression model, if marriage
rates continue to fall, and the educational attainment and wages of
women continue to rise, occupational segregation in management should
continue to decrease. Chapter Five serves as a concluding chapter,
which summarizes and interprets the findings of this
project.
Name: Charles Sernik
Date:
Spring, 2002
Major(s): Economics
Thesis Committee: Tomas
Nonnenmacher, Earl Adams
Title: Productivity Paradox: A Review of Theory,
History, and Relevant Research Surrounding the Computer and the
"Productivity Paradox"
The underlying concept of the modern "productivity
paradox" is the rapid investment in computing technology that is not
appearing in productivity statistics. The research surrounding the
productivity paradox is extensive and varied. For every author who
manages to identify measured productivity growth from computers there
exists a separate author who does not. The question remains: where and
when does the computer tie in to productivity statistics? This senior
project explores the relationship between innovation theory,
historical development and comparison, and quantitative data to gain a
better understanding of the productivity paradox. The goal is to
provide a summary of the theoretical foundations concerning the
development of innovations, a historical background of the computer
and dynamo, and a comparison of the two technologies. Quantitative
data is then represented at the end that identifies the computer's
contribution to productivity in a firm level study. However, at the
end of the senior project the only thing that is clearly agreed on is
that measurement difficulties still exist and may understate the
impact of the computer in productivity
statistics.
Name: Barrett Sigmund
Date:
Spring, 2002
Major(s): Economics
Thesis Committee: Earl Adams,
Steven Casler
Title: Evaluating Risk Aversion (a theoretical and
experimental assessment)
This study challenges the generally accepted theory of
risk aversion as it is commonly understood and taught in the economic
world. It is argued that the theory of diminishing marginal utility is
not necessarily a correct justification for why risk aversion is the
predominant attitude in people. The argument is made that demographics
are a better indicator of risk aversion. This theory is then tested in
an experimental setting using undergraduate students. The study's
findings reveal that there is some correlation between various
demographics and the subjects' attitudes towards risk. In particular,
it is found that level of education is a definite indicator of risk,
as the study reveals that higher levels of education result in less
risk aversion, ceteris paribus.
Name: Michael Suffoletto
Date:
Spring, 2002
Major(s): Economics
Thesis Committee: Don Goldstein,
Earl Adams
Title: Online Trading is Causing Retail Brokerages to
Adopt New Business Models Causing Service Convergence: Who Will
Survive?
The securities industry has gone through three major
transformations, which have developed full-service, discount, and
electronic brokerages. These transformations moved the securities
industry from an oligopolistic form to monopolistic competition. The
development of the Internet and its increase in popularity has allowed
electronic brokerages to form and enter the market by reducing the
barriers to entry. Electronic brokerages can offer trades at cheaper
commission costs by eliminating the services of an individual broker.
Many independent investors have chosen to use electronic brokerages
due to their cheap costs. This has caused full-service brokerages to
restructure their business models to remain competitive. Although
full-service brokerages offered a wide range of services to aid the
investor, they were forced to unbundle, go online, and offer cheaper
commissions. Within monopolistic competition brokerages had to
differentiate themselves to appeal to investors. As the full service
firms changed, offering online trading, electronic brokerages were
forced to change their structure as well by offering more services.
This has caused the full-service and discount brokerages to converge
their services. As of now full-service brokerages have the advantage,
if they remain flexible, due to their established roots and large net
worth.
Name: Craig Summers
Date:
Spring, 2002
Major(s): Economics
Thesis Committee: Earl Adams,
Behrooz Afrasiabi
Title: The Impact of the 1988 Basle Accord on Bank
Profitability
On July 11, 1998, G-10 countries adopted the Basle
Accord after many years if debate. The purpose of this paper is to
provide information about why the Basle Accord was written, the
specifics of the Basle Accord, and the importance of cappital in the
banking industry due to the contents of the Basle Accord. An event
study is used to measure the impact three announcements had on the
profitability of bank share prices. The dates of the three
announcements are December 10, 1987, June 24, 1988, and July 11, 1988,
all important dates dealing with the creation and release to the
public the outline of the Basle Accord. After selecting these three
announcements, the normal and abnormal returns were calculated for the
five banks selected for this study: Amsouth Bancorporation, Banc One
Corporation, Bank of America Corporation, J.P. Morgan & Co., and
Mellon Bank Corporation. This study found that these announcements had
no significant impact on the profitability of bank share prices.
Name: Catherine Trostle
Date:
Spring, 2002
Major(s): Economics
Thesis Committee: Steven Casler,
Behrooz Afrasiabi
Title: Wage Disparities Among the Sexes: Do they begin
with choice of college major?
This senior comprehensive project examines the wage
gap among men and women to determine what variables, specifically
choice of college major, play a key role in these pay disparities.
First, a broad history of women's traditional roles in society is
provided and the factors leading to their increased participation in
the labor force over the year are discussed. Also presented in the
introduction is women's history of educational attainment and their
choice of college major compared to men's. A comparison of median
weekly earnings is also looked upon.
Underlying the analysis presented here is the human
capital model and the assumptions behind it. This model is used to
show how differences in women's tastes and preferences from men's lead
to investments in human capital. Next, use of regression analysis
statistically shows the degree to which specific variables explain
wage disparities. These variables are consistent with the human
capital model and include: earned master's degrees by women, the birth
rate, the divorce rate, women's labor force participation rate, and
the marriage rate. I found that most of my variables were significant,
of most importance was the percentage of women with master's degrees.
This confirms that educational attainment does play an important role
in explaining why men's earnings are higher than women's earnings, on
average. Finally, I form the weighted average salary for both men and
women, who have graduated from Allegheny College in 2001. This study
shows the total weighted average salary for men is significantly
higher than that of women. This study also finds that the college
major has a significant impact on the differences in salaries that men
and women experience.
Name: Nathan Visser
Date: Spring,
2002
Major(s): Economics
Thesis Committee: Asuman Baskan, Stephen
Onyeiwu
Title: The Effects of Multinational Corporations upon
Host Country Development: A Case Study of Intel in Costa Rica
The role MNC's play in international economic
restructuring, whether postive or negative, in recent years has become
an increasingly heated topic with the global arena. Scholars have
sought to determine whether they have a positive or negative impact
upon host countries through empirical and theoretical techniques thus
creating a plethora of literature and postions on the matter. Any
generalizations derived from case studies are not relevant to all
instances due to the unique qualities inherent to each individual
circumstance. Likewise, theoretical techniques are too general and too
broad to provide an accurate interpretation that is applicable in all
circumstances. The following paper examines the advent of the Intel
Corporation into Costa Rica in order to determine whether or not its
overall impacts upon the Costa Rican economy were beneficial or
detrimental.
Name: David Whitaker
Date:
Spring, 2002
Major(s): Economics
Thesis Committee: Tomas
Nonnenmacher, Antoni Moskwa
Title: The Influences of Institutional Structure on
Economic Growth: An Analysis of Bankruptcy Law
What creates economics growth? This fundamental
question leads to an endless array of answers and theories. While not
attempting to answer this question, this paper shows that
institutional structure influences the economic prosperity of a
country. The argument is not that institutions are the sole purpose of
economic growth, but rather that, institutions are an integral part of
encouraging growth in an economy. The difficulty in proving the
effectof institutions on an economy lies in the challenge of
discovering comparable governmental structures. Defining the
foundation of efficient institutions, using the theories of Ronald
Coase and Thomas Hobbes, a structure is built that institutions must
follow to maximize their positive influence on the economy. With an
in-depth look into bankruptcy laws of the United States and Germany,
this paper will prove that with the right institutional structure
economic growth is encouraged.
Name: Tina Wyland
Date: Spring,
2002
Major(s): Economics
Thesis Committee: Earl Adams, Tomas
Nonnenmacher
Title: Assessing the Effects of Work Incentives from the
Personal Responsibility and Work Opportunity Reconciliation Act of 1996
on Single Mothers with Children
This senior comprehensive project assesses the effects
of work incentives placed on single mothers with children following
the implementation of the Personal Responsibility and Work Opportunity
Act of 1996. Welfare reform has been a hot topic since the early 80's,
and the new act was designed to "end welfare as we know it." With
strict work requirements and regulations, individuals are cut from the
welfare rolls after five years of receiving benefits. Single mothers
are especially at risk because this new act affects them the most.
What does this act signify to single mothers? It means the opportunity
cost of leisure has increased due to strict work requirements and time
limits.
This paper begins with an examination of the history
of welfare from the Great Depression until just before the Personal
Responsibility and Work Opportunity Act of 1996. It examines the
evolution of the system that led to recent programs. It also compares
the change in consumption of welfare recipients when cash payments are
made instead of in-kind benefits. The third chapter introduces the new
act and work requirements that are expected to be met by individuals.
Finally, the fourth chapter illustrates how some lives have been
affected. Two case studies are discussed to update the progress of
former recipients and how they feel about the quality of their
situations.