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Economics Senior Project
Abstracts
2004
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Name: Jonathan Albaugh
Date: Spring 2004
Major(s): Economics
Thesis Committee: Asuman Baskan, Earl Adams
TITLE: Factors Effecting the Annual Salary
of Dentists
ABSTRACT: This study analyzes the effects of
foreign-born citizens, Medicaid, and fluoridated water on the annual
salary of dentists. Data from the US Census Bureau was collected and
a multivariate regression was employed. It was found that a percentage
increase in foreign-born citizens and individuals covered by Medicaid
led to an increase in the annual salary of dentists by $1070 and $1163
on average, respectively. In addition, a percentage increase in individuals
with fluoridated drinking water led to a $214 increase, on average.
Therefore, using the data from this study, one could forecast the expected
mean salary of dentists based on predicted changes in the explanatory
variables. Furthermore, the present value of the stream of salaries
for each year could be calculated to aid a student in deciding if dentistry
is a profitable enough profession for him or her.
Name: Marc Chagnon
Date: Spring 2004
Major(s): Economics
Thesis Committee: Earl Adams, Asuman Baskan
TITLE: Earmarked Spending in Federal Appropriations
Bills: A Study of its Inefficiencies and Political Influences
ABSTRACT: This paper examines the inefficiencies
and political influence associated with earmarked spending found in
the Federal Appropriations Bills. A theoretical model is developed that
describes the relationship between legislators and constituents, in
which legislators have the incentive to act opportunistically in order
to gain votes. This model is based largely on a theory presented by
Oliver Williamson, dealing with the governance of a firm's contractual
relations. The results of the theoretical model prescribe third party
intervention in the earmarking process by the states in order to minimize
inefficiency and wasteful spending. Empirical evidence is used to show
the effects of factors such as holding the Chair position, of either
the entire process or the specific bill, and having a seat on an Appropriations
Committee in determining federal funding. In several ordinary least
squares regressions utilizing U.S. Senate data, holding the Chair position
increased federal funding for the chairman's state by $51.3 million
on the average, while being a member of the Appropriations Committee
increased funding for those Senators' states $3.86 million on average
when it was a significant factor. This paper finds strong evidence to
support a hypothesis that congressional earmarking comes at a large
cost of project biases, is influenced by political variables, and fails
to maximize federal funding efficiency.
Name: Sean Croner
Date: Spring 2004
Major(s): Economics
Thesis Committee: Stephen Casler, Janine Sickafuse
TITLE: The Competitive Advantage of Contracted
Labor: A Nike Case Study
ABSTRACT: The purpose of this project is to provide
information on how companies, specifically Nike, has used contracted
labor to gain a competitive advantage over their competitors in the
industry. Labor laws in Asia are not up to the standards set in the
United States, so companies are able to outsource their labor for a
lower price. With such factors as an ever-increasing population, Asia's
working wage is significantly lower than the one in the United States
and this is one of the main reasons why factories are able to provide
such a low cost of labor to American companies.
The concept of Competitive Advantage can be broken into
multiple segments, each contributing to the main idea. Michael Porter
explains how each of these segments adds to the greater picture of competitive
advantage. Nike used these concepts of competitive advantage to their
benefit within its industry to go above and beyond the competition.
Nike has been able to develop relationships with manufacturers that
would build factories in countries to receive the lowest-cost labor.
As a result, Nike has developed into the largest athletic footwear,
apparel and sports equipment company in the world.
Name: Valerie DeMatteo
Date: Spring 2004
Major(s): Economics, Communication Arts
Thesis Committee: Earl Adams, Michael Keeley
TITLE: The Impacts of Deregulation within
the Telecommunications Industry
ABSTRACT: : The telecommunications industry fosters
mass media entertainment and has been and will continue to be a constant
source of influence over the American public. The industry has always
been regulated because of a need for organization and market control.
Early regulations were more influential in creating competition and
protecting public interest than current legislation. Deregulation by
the FCC began in 1985 and was intensified by the Telecommunications
Act of 1996.
The act of 1996 includes regulation that allows stations
to own more communication outlets and therefore monopolize a large part
of the media market. Deregulation of the industry created a lack of
concern for public interest and increased prices and decreased economic
value for consumers. By analyzing the history of telecommunications
and the regulations set for the industry, it is evident that there has
been a regressive change made within the last three decades. Case studies
of companies that have recently merged illustrate the economic effects
that the bill has had on consumers. In general, the deregulation of
the telecommunications industry has negatively affected the economic
and social state of American entertainment.
Name: Phillip DiSilvio
Date: Spring 2004
Major(s): Economics
Thesis Committee: Earl Adams, Stephen Casler
TITLE: The Effects of Welfare Reform and a
Strong Economy on Labor Force Participation in the Late 1990s
ABSTRACT: In the late 1990s, the labor force
participation rate increased substantially. During the same time period
welfare reform was well under way along with a booming economy. Welfare
reform and what it was intended to do is looked at along with the economy
in the late 1990s. What determines the labor force participation rate
will be clarified and the decision of individuals to work will be explored
through microeconomic principles. By using a multiple regression model
the paper investigates what played a larger role in adding to the labor
force participation rate, the effects of welfare reform or the booming
economy of the period. The research shows that based on the data used,
the strong economy contributed more to the participation rate rise than
did the effects of welfare reform. However, an income effect may have
been picked up on by the dummy variable in the regression, which could
be downplaying the effect of welfare reform. In addition, if data for
the labor force participation rate of single mother households were
available then a different result may have emerged.
Name: Lauren Donato
Date: Spring 2004
Major(s): Economics
Thesis Committee: Don Goldstein, Janine Sickafuse
TITLE:Post-Merger Integration's: A Business
Marriage Counseling Guide
ABSTRACT: This paper examines the various factors
that can lead to the success or failure of a merger during the integration
process. Given the wide range of information on merging and acquisition
approaches it is interesting to wonder why so many of these kinds of
business transactions fail. Research has found that the success of a
merger is largely dependent on the success of the integration phase.
Since the integration stage of the merger process is mostly dependent
on cooperation from employees this paper focuses on the different kinds
of management approaches and techniques. After analyzing the different
theories of management and steps taken during integration, this project
takes a specific look at one of the largest transatlantic mergers in
history, the DaimlerChrysler merger. The DaimlerChrysler merger reinforces
the fact that there is no clear cut recipe for merger success; several
proactive procedures were taken during the integration phase and the
merger is still considered a failure.
Name:William Dungee II
Date: Spring 2004
Major(s): Economics
Thesis Committee: Stephen Casler, Earl Adams
TITLE: Factors Underlying High Unemployment
Amongst African Americans
ABSTRACT: Every year the unemployment rate fluctuates.
Some years it may be high, some years average, and then other years
low. But one thing has held constant every year, that there is a gap
between the unemployment rate of blacks and whites. This gap has been
prevalent ever since 1940's when the unemployment rate was first officially
recorded. Since 2001 the beginning of the latest US recession, this
gap is not only widening but at an increasing rate. With high labor
supply and low labor demand, there is a larger surplus of blacks out
of work than whites, but why? This study examines how GDP, average wages
and salaries, labor force participation, and outside trends have contributed
to this discrepancy.
Through multiple regression analysis I proved that GDP
and outside trends were definitely significant in the level of unemployment
for blacks and whites. This study shows that blacks are more closely
linked to the amount of production in the manufacturing sector, a sector
that has the highest rate of entry and exit and a sector that is becoming
more and more obsolete every day. With the implementation of government
programs for low-income areas, w can start on a local level to prepare
African American both children and adults alike, with the education
and skills to be successful in the "new economy." This will
in return, help close the level of unemployment differential between
whites and blacks.
Name: Adrian Filip
Date: Spring 2004
Major(s): Economics
Thesis Committee: Behrooz Afrasiabi, Stephen Casler
TITLE: Market Volatility and the New York
Stock Exchange: Is Beta Constant?
ABSTRACT: The purpose of this study is to measure
the time-varying behavior of three different stock betas in various
segments of the New York Stock Exchange using 6 years of monthly data.
Although there is considerable evidence on time variation in betas,
it is not clear how this variation should be captured. This study addresses
the question of whether the variation in the estimated stock betas can
be explained. The study uses two methods: a Chow test and a random coefficient
model with dynamic parameters to investigate whether the change in beta
can be modeled by an autoregressive process. The findings of this study
point to considerable instability in the structure of the Capital Asset
Pricing Model (CAPM) and suggest that the simple constant-beta assumption
is questionable. Since beta is one of the most widely used measures
of risk among practitioners and financial economists, these findings
have important implications for asset pricing theory, portfolio selection,
and event study analysis. The data used in this project consisted of
monthly stock returns for the period of January 1, 1998 to December
31, 2003 and was obtained from the CRSP database.
Name: Michael Fischer
Date: Spring 2004
Major(s): Economics
Thesis Committee: Tomas Nonnenmacher, Asuman Baskan
TITLE: The Slaughterhouse Cases: their Political
and Economic Implications
ABSTRACT: The
Slaughterhouse Cases deal with a state's ability to create a monopoly.
Two modern schools of economic regulation, the interest model and the
market failure model, are applied to the Slaughterhouse Cases. The justices,
who affirmed the lower court's decision, believed that the Louisiana
legislature used its police powers to correct a health concern. The
majority opinion is based on using regulations as a way to counteract
a market failure. The justices who dissented believed that the measure
created by the legislature was unjust since it produced a monopoly.
Justices Field and Bradley expanded the interpretation of the Fourteenth
Amendment to support their positions. The case highlights the debate
on when it is appropriate to pass regulations, and when the government
intervention goes too far and adversely affects an individual's economic
liberties.
Name: Eric Johnson
Date: Spring 2004
Major: Economics
Thesis Committee: Stephen Casler, Behrooz Afrasiabi
TITLE: Why in a Recovering Economy is Unemployment
Still Rising?
ABSTRACT: In 2001 the economy entered
a recession, its first recession since the recession of 1991. The 2001
recession people think was caused by the attacks on America on September
11th 2001 but it really was not. The economy had entered a recession
before September 11th but the government did not announce it until after
September 11th. Both of these business cycles were called a job-loss
recoveries rather than jobless recoveries. Right now employment is declining
the most drastically it has since World War II. This big loss in jobs
is bad for the economy because people will be worried about not having
jobs and will save more and spend less because most layoffs are permanent
rather than temporary. Most of the jobs are manufacturing jobs and are
being sent overseas or are being replaced with better technology. The
business cycles of 1991 and 2001 will be looked at and compared. Also
a general history of business cycles will be looked at to explain trends
in business cycles.
Several macroeconomic factors will be looked at also; these include
labor demand, labor supply, the production function and also the labor
market equilibrium. Also looked at will be reasons for unemployment
along with examples of shifts in curves and unemployment. The purpose
of this study is to determine the factors that are causing this Job-loss
recovery and what can be done to create more jobs.
Finally I will run and interpret a regression model using a dummy variable.
The variables used will be growth or change in GDP, employment, investment,
total compensation, CPI, labor productivity, and unemployment rate.
The results will help to explain why the unemployment rate is so much
higher than it was before 2001, we will also be able to see what factors
are significant and or insignificant to the model. Also discussed is
what can be done to help get more jobs back in the United States, which
includes more manufacturing jobs staying in the United states.
Name: Patrick Keating
Date: Spring 2004
Major(s): Economics
Thesis Committee: Tomas Nonnenmacher, Janine Sickafuse
TITLE: The Effects of Insider Trading on Global
Markets
ABSTRACT: This paper is aimed at answering
a few basic questions such as: is insider trading really detrimental
to stock markets? How did markets function prior to insider trading
laws? How do other countries handle the insider trading issue? I analyze
the pros and cons of insider trading, concluding that markets can and
will function with insider trading. I analyze how other countries handle
the issue of insider trading. By examining how Australia, Canada, Japan,
the United Kingdom and the United States handle and have handled insider
trading, I gained an international perspective of insider trading, which
helped me determine whether or not insider trading has a negative impact
on the market. I then examined the empirical work of two academic papers,
which helped me determine the effects of insider trading laws on the
market. I found that insider trading laws help deter insiders from trading,
but these laws must be enforced to be a real deterrent to insiders.
I conclude that the real problem is enforcing insider trading laws and
until these laws are enforced, insider trading will affect how people
invest money.
Name: David Keck
Date: Spring 2004
Major(s): Economics
Thesis Committee: Don Goldstein, Stephen Onyeiwu
TITLE: Innovative Strategies in the
Skies
ABSTRACT: In my comprehensive thesis project
I intend to examine the economic theory of innovation strategies and
how they apply to a competitive market. I will first discuss the five
innovative strategies and how they are practiced and applied in the
business realm. I will then apply these theories to the competitive
aircraft manufacturing industry. To fully evaluate the economic theories,
I am going to focus on the two major aircraft manufacturers: Boeing
and Airbus Corporations. In focusing on these two corporations I hope
to discover how innovative strategies affect a competitive market and
what affect an innovative strategy has on a company's market share and
sales revenues. In order to achieve my thesis, I am going to analyze
both Airbus and Boeing Corporations research and development programs
to see what kind of strategy they are implementing. Then I will see
how effective their strategy is by looking at their market share along
with their sales revenues from recent years. This will hopefully give
me enough information to evaluate each company's status in the market,
and decide whether or not their innovative strategy is working, or whether
it should be change.
Name: Robert Kusick
Date: Spring 2004
Major(s): Economics
Thesis Committee: Stephen Onyeiwu, Tomas Nonnenmacher
TITLE: The Economics of Offshore Outsourcing
ABSTRACT: Similar to the NAFTA debates of the
1992 Presidential Election, the outsourcing of jobs has become the trade
topic being argued this year. Outsourcing is not a new concept, as firms
have been outsourcing within their respective manufacturing models for
years. Through an increase in technology, the effects of outsourcing
have now shifted and include more of the service sector. Workers now
affected include an increasing number of college graduates, mainly in
the Information Technology field.
The study first predicts that outsourcing makes economic
sense, and is beneficial to the United States economy in the long run.
It is shown that economic theories also predict this via an increase
in productivity resulting from the ability to outsource. To test this
hypothesis, a case study of Dell, Inc. is used to measure its productivity
over the last decade. During this time, Dell has been a pioneer in outsourcing
some of its factors of production, and we test the effects of those
decisions on job loss, wages and productivity. The study concludes that
through an increase in productivity, jobs are actually created within
the United States that also offer higher wages. The study ends with
policy suggestions for those workers negatively affected by free trade
and outsourcing.
Name: Michael Mansfield
Date: Spring 2004
Major(s): Economics
Thesis Committee: Don Goldstein, Stephen Onyeiwu
TITLE: High-performance Work Systems: Do Firms
and Employees Really Benefit? A Study of Internal Capabilities, High-performance
Work Systems and Case Study
ABSTRACT: Over the years, competition from foreign
markets has forces the United States steel industry to redesign manufacturing
capabilities. However, the one variable that has remained constant is
the focus on internal capabilities, more important, human capital. I
will investigate the impact of HPWSs in the United States steel industry
by examining a firm in the US Steel industry. Focusing on the competitive
dynamics of HPWSs, I will examine the role that plant-level organizational
changes and internal capabilities, such as employee involvement, could
play in enhancing the competitive advantage in the steel industry. However,
do such systems affect the way in which human capital is portrayed in
the steel industry? The incorporation of high-performance work systems
will increase a firm's productivity only if the firm and its managers
allow empowerment of its employees. During my experiences employed at
a steel mill, it seems as if old, vertical management systems are still
being used in the mill. Workers are not treated as equals with respect
to management. This has created a problem and has hindered the effectiveness
of the new, horizontal systems.
Name: Kimberly Meszaros
Date: Spring 2004
Major(s): Economics
Thesis Committee: Stephen Onyeiwu, Don Goldstein
TITLE: Entrepreneurship and its Role in the
Modern Economy: A Case Study on the Beauty Salon Industry
ABSTRACT: Entrepreneurs play important roles
in the American economy. However, much confusion still surrounds the
theory of entrepreneurship. This study explores theories of entrepreneurship
and their relevancy in the explanation of modern entrepreneurs. The
hypotheses posed by the classical theorists are tested on the basis
of empirical evidence from the beauty salon industry. Issues reviewed
in the empirical chapter are geared toward entrepreneurs looking to
implement a successful business plan in the modern salon industry. Evidence
from the empirical study proves that the two key problems for entrepreneurs
entering into the beauty salon industry are lack of financing for initial
outlays, and lack of skilled workers in the industry.
Name: Frank Wesley Morgan III
Date: Spring 2004
Major(s): Economics
Thesis Committee: Janine Sickafuse, Don Goldstein
TITLE: Building MLB Stadiums: Have They Gone
From Being A Competitive Advantage To A Competitive Necessity?
ABSTRACT: This project explores whether or not
building a Major League Baseball stadium went from being a competitive
advantage to a competitive necessity. If a competitive advantage was
gained, it also tries to determine what factors contributed to this
advantage. Chapter one simply serves an in introduction. It discusses
how the views and attitudes have changed over the past decade about
single-sport stadiums. Long before the current facility craze, stadiums
simply acted as a venue where games were played and often were shared
by both a baseball and football team. However, as technology advances,
stadiums have become a huge tool in allowing a team to significantly
increase their total revenue. Chapter two presents an overview of what
a competitive advantage and competitive necessity are. It also introduces
factors that allow a team to gain a competitive advantage and whether
or not this competitive advantage is sustainable. Being the first to
build a new stadium, a team gains an advantage by becoming the first-mover
into the market. However, stadiums are not an intangible resource and
do not allow a team to maintain a sustainable competitive advantage.
Because they are not sustainable, stadiums have become more of a necessity
to a team, rather then an advantage. Chapter three is devoted strictly
to a case study involving eight teams that have built a new stadium;
four from the early 90s and four from the late 90s and early 00s. The
empirical evidence being studied for all eight teams is total revenue,
total revenue as a percentage of league average, team payroll, and team
payroll as a percentage of league average, all in the five years surrounding
a new stadium. The empirical tests developed suggest that building a
new stadium did go from being a competitive advantage to a competitive
necessity in Major League Baseball. Chapter four serves as a concluding
chapter, which summarizes and interprets the findings of this project.
It also recommends other research and tests that could be used to compile
a more detail analysis.
Name: Lindsay Nagle
Date: Spring 2004
Major(s): Economics
Thesis Committee: Stephen Onyeiwu, Tomas Nonenmacher
TITLE: Brand Development in Monopolistically
Competitive Markets: A Focus on the Ready-to-Eat Breakfast Cereal Industry"
ABSTRACT: Branding and Brand Development are
common catchphrases in today's business world. This project focuses
on how Brand Development, specifically in the Ready-to-Eat breakfast
cereal industry, can be directed to create a unique and differentiated
product within a monopolistically competitive market. Topics of Data
Collection, Innovation, Brand Identity, Brand Personality, and Brand
Loyalty serve to detail the Brand Development process and are showcased
through successful case studies.
Once the good being produced is differentiated from
its other competitors it holds a special place in the market and the
producer assumes increased control over price, acting virtually as a
monopolist. A regression analysis is included to find the relationship
between Advertising Expenditure, R&D Expenditure, Net Sales, and
Product Nature on the Price Elasticity of Demand. Conclusions state
that R&D Expenditure and Net Sales have no impact on Price Elasticity
of Demand, yet alterations and further study could be made in the analysis
that would enhance the results.
Name: Dan Niewoehner
Date: Spring 2004
Major(s): Economics
Thesis Committee: Asuman Baskan, Earl Adams
TITLE: Credit Card Use and Compulsive Spending
by College Students
ABSTRACT: Compulsive spending is described as
chronic, continuous purchasing that develops into a primary response
resulting from negative events or feelings. This type of behavior is
on the rise in American college students along with student credit card
use. This paper explores the link between compulsive spending and credit
card use in college students, and calls for government regulation pertaining
to the credit card industry in order to prevent student compulsive spending.
This paper first delivers a brief history of the credit card market,
providing a synopsis of the industry's evolution into its current state.
Accordingly, the discounting consumer model is then used to provide
an economic representation of consumer behavior for the compulsive spender.
The empirical analysis in this paper tests the hypothesis that an increase
in compulsive spending has occurred in the college community, which
can be linked to credit card use. This is explored through a survey
administered to a population of Allegheny College students. In this
study it is found that an increase in compulsive spending has occurred
when compared to a similar study performed in 1998. In addition, results
show compulsive students, on average, hold more credit cards and are
more likely to pay the minimum on their credit card bills.
Name: N. Stephen Olsavsky
Date: Spring 2004
Major(s): Economics
Thesis Committee: Stephen Casler, Tomas Nonnenmacher
TITLE: Supply and Demand: How to Win the War
on Drugs
ABSTRACT: In 1971 President Nixon declared drug
abuse as "public enemy number one in the United States" ("Frontline").
Even though this war has been a top priority, the survey shows that
the percent of 12th graders using any illicit substance within 12 months
of taking the survey has decline by less then five percentage points
from the inception of the Monitoring study. In 2002 alone, 53% of America's
twelfth graders had used some form of an illicit drug within the 12
months preceding a national survey on drug use (Monitoring 445) even
though the Federal government spent $18,822,800,000 on drug control
(ONDCP 6).
The purpose of this study is to both determine the extent of which the
war on drugs has been successful and find variables that are significant
in determining cocaine use. This study begins with an analysis of supply
and demand theory and then applies that theory to the war on drugs.
Markets are examined theoretically in order to build a model for the
drug use of America's 12th graders. A regression using cocaine use in
12th graders from 1975-2002 as the dependent variable is then used to
determine what variables are significant determinants of cocaine use.
From this regression, the presence of the Clinton Administration and
a variable for trend were the only significant variables. DEA spending
actually had a positive relationship with cocaine use, adding weight
to the argument that enforcement and the supply-side approach to the
war on drugs is not the appropriate means to fight the war. From this
data, suggestions of how policy should be structured in order to better
fight the war on drugs are made.
Name: Christopher Pavlekovsky
Date: Spring 2004
Major(s): Economics
Thesis Committee: Stephen Onyeiwu, Behrooz Afrasabi
TITLE: AN INVESTIGATION INTO HOW LEADING FIRMS
MANAGE INNOVATION
ABSTRACT: This paper is an investigation into
how diversified companies manage innovation in the newly globalized
economy. Through high absorptive capacity, fast innovation speed, multiple
partnerships and globalized R&D, leading firms are able to create
a competitive advantage and retain their leadership position. A case
study is used to demonstrate how General Electric (GE) manages its innovation
activities for its 11 business units
Name: Shawna Pepper
Date: Spring 2004
Major(s): Economics
Thesis Committee: Don Goldstein, Tomas Nonnenmacher
TITLE: Strategic Planning of Magazine Firms:
An Analysis of the Five Forces of Competitive Advantage Applied to a
Particular Slice of the Magazine Industry
ABSTRACT: My goal for this thesis is to clarify
to myself and to my readers the importance of having a strategy in order
to gain competitive advantage in a market, specifically in the magazine
industry. The importance of possessing such an asset for firms is because
a strategic model holds a firm together and helps managers to begin
and continue with the success of a company. However, many concepts go
into a strategy, not just the ideas managers may have to contribute
to their objectives. The importance of having a well-rounded knowledge
of the core competencies of a firm, knowledge of the internal and external
forces of a company and a solid organization to implement into a strategy
in order to gain competitive advantage in an industry is essential for
firms to have before formulating a strategic plan that will help a firm
gain recognition and solid placement in an industry. These ideas and
concepts are what I will be discussing and applying throughout this
thesis to my own unique idea for a magazine firm in hopes of formulating
a quality strategic model for a chance at a competitive advantage in
the magazine industry.
Name: Aaron Polack
Date: Spring 2004
Major(s): Economics
Thesis Committee: Asuman Baskan, Earl Adams
TITLE: The Hedge Fund Puzzle: Challenging
Traditiional Finance Theory
ABSTRACT: In the past decade, hedge funds have
exploded onto the investment scene. Estimates suggest that there are
presently over 7,000 hedge funds representing more than $600 billion
in assets under management. This paper seeks to explain the hedge fund
genesis and unravel traditional financial theories; such as the relationship
between risk and return, and the Capital Asset Pricing Model. The CAPM
theory states that in efficient markets alpha should be zero for all
assets. If alphas are significantly positive then the asset or fund
has achieved abnormal returns due to some superior skill possessed by
the manager. This paper tests for significantly positive alphas in 14
different hedge fund strategies using regression analysis of the CAPM.
This study finds all 14 strategies to have significantly positive alphas
indicating superior manager skill. Superior skill of hedge fund managers
is derived from lack of disclosure requirements and limited regulation.
However, with hedge fund catastrophes such as Long Term Capital Management
and after hour trading scandals, I question the sustainability of their
superior advantages in the futgure. I predict that hedge funds will
soon encounter increasing security regulation and disclosure requirements,
which will ultimately diminish the abnormal returns they were once generating.
Name: Brian Root
Date: Spring 2004
Major(s): Economics
Thesis Committee: Tomas Nonnenmacher, Behrooz Afrasiabi
TITLE: The Underlying Hypocrisy of Prohibition:
A Socioeconomic Analysis of the Eighteenth Amendment
ABSTRACT: The Eighteenth Amendment was enacted
to prohibit alcohol consumption. National Prohibition banned the "sale,
manufacture, and transportation" of intoxicating liquors. But did
this constitutional amendment actually succeed in eliminating alcohol
consumption within the forty-eight states? Most recollections and opinions
regarding alcohol consumption vary, and so do the estimates about the
amounts of alcohol consumed prior to prohibition. This paper demonstrates
the impact Prohibition had on American society through personal accounts
and a statistical analysis of a consumption function.
Conflicting accounts regarding the result the
temperance movement had upon alcohol consumption will be analyzed along
with the impacts of statewide prohibitions. The consequences of statewide
prohibition will be used as a catalyst in the analysis of the impact
that natiional Prohibition had on the United States.
Many problems arise when estimating an illegal good.
We will discuss the strengths and weaknesses of using proxy variables
(cirrhosis and drunken arrests) to estimate alcohol consumption in the
early twentieth century. Formulating a utility function will help to
explain reasons for continued alcohol consumption during Prohibition.
Finally, using variables that pertain to statewide prohibition
will be utilized in an evaluation of the affects of national Prohibition.
total population, Gross National Product, number of dry states, and
the percentage of the population living within dry states will combine
to form the consumption equation calculating the impact of the Eighteenth
Amendment. The combination of the personal accounts with the statistical
analysis proves that national Prohibition had no significant impact
upon alcohol consumption.
Name: Daniel Selfridge
Date: Spring 2004
Major(s): Economics
Thesis Committee: Stephen Casler, Behrooz Afrasiabi
TITLE: Examining the Trend of Increasing Investment
in Higher Education
ABSTRACT: It is clear that the number of individuals
attending higher education has continually increased over the past fifty
years. However the reasons people have for attending higher eduaction
may not be so simple. This project examines the increasing trend of
individuals choosing to invest in higher education as a form of human
capital, as well as what specific factors could lead to creating this
trend. First, the history of education and function of education will
be examined. A brief description of how education works and some historical
events that have shaped the way society has come to view education will
be presented. An underlying analysis will then be presented by use of
the human capital model. The human capital model will be used to show
why individuals choose to invest in differing levels of education to
satisfy the amount of earnings that they desire in the future. The education
investment decision as well as discontinous employment will be examined
in depth by the model. Next, a regression analysis will be used in order
to determine that the independent variables: Population, Labor Force
Participation Rate, Unemployment Rate, Median Family Income and Government
Expenditure on Education, will have an effect on the number of individuals
enrolling in higher education institutions. Finally, some general conclusions
will be made upon the findings of the project and how
Name: Richard Seward
Date: Spring 2004
Major(s): Economics
Thesis Committee:
TITLE:
ABSTRACT:
Name: Anthony Simon
Date: Spring 2004
Major(s): Economics
Thesis Committee:
TITLE:
ABSTRACT:
Name: Eric Smith
Date: Spring 2004
Major(s): Economics
Thesis Committee:
TITLE:
ABSTRACT:
Name: Michael Smith
Date: Spring 2004
Major(s): Economics
Thesis Committee: Janine Sickafuse, Don Goldstein
TITLE: Economical Advancements in Professional
Snowboarding: A Revised Economic Model for The United States Ski andSnowboard
Association
ABSTRACT: Snowboarding is a leader in the emerging
extreme sports market. With increasing demand for action sports, the
time is now to act on the sports sudden popularity. I will be proposing
an economic model, which will enhance the current model instituted by
the United States Ski and Snowboard Association. The insight of renown
sports economists Rodney Fort and James Quirk, theories in professional
sports marketing and the importance of media and sponsorships will be
the economic evidence needed to prove that a professional snowboarding
league could be successful.
Name: Adam Sondej
Date: Spring 2004
Major(s): Economics
Thesis Committee:
TITLE:
ABSTRACT:
Name: Brian Sondej
Date: Spring 2004
Major(s): Economics
Thesis Committee: Stephen Onyeiw, Janine Sickafuse
TITLE: Defeating the Pressures Associated
withGlobal Competition: A Case Studyon Hewlett-Packard and the Invention
of Thermal Inkjet Technology
ABSTRACT: Global Competition is a problem that
American companies must deal with every day. There are many pressures
that global competition puts on the domestic companies of the United
States. Some of these include new international technology, international
trade barriers, and foreign labor forces. Because of these pressures,
some companies in the United States are not able to sustain themselves
and therefore collapse. However, there are some cases where American
companies have developed new strategies and technology to respond to
international competition. One of these companies is Hewlett-Packard.
In the early 1980's the Japanese dominated the dot matrix printing industry.
HP had to find a new way to beat their international opponents. With
new innovation and technology HP was able to develop thermal inkjet
technology, and steal the printing industry from the Japanese. This
study explores the concept of global competition, and how it affects
the US companies. Furthermore, in order to help illustrate how American
companies cope with the constant intentional pressures, a case study
how Hewlett Packard was able to defeat the Japanese is reviewed. In
this study, a regression analysis and forecast of future net sales for
the company will be included, as well as an analysis of the business
philosophy of Hewlett-Packard over he years. Finally, some microeconomics
principle are used to explain how and why, Hewlett-Packard made some
of their strategically based decisions.
Name: Jason Springer
Date: Spring 2004
Major(s): Economics
Thesis Committee:
TITLE:
ABSTRACT:
Name: Kristina Stone
Date: Spring 2004
Major(s): Economics
Thesis Committee: Behrooz Afrasiabi, Stephen Onyeiwu
TITLE: Determinants of Profitability: Diversification,
Innovation, and Organization
ABSTRACT: There are several different determinants
of profitability. This project explores the impact that Research and
Development and corporate strategies, such as diversification and organization
of the firm, have on a firm's profitability. This paper discusses the
ideas of diversification, innovation, and organization of the firm;
and suggests that these factors will impact the firm's profits in a
positive way. The project reviews some of the current literature that
is available concerning this area. Further, the study shows my own investigations
in this area with an empirical chapter devoted to a regression of thirty
firms; including twelve firms in the computer industry, ten firms in
the pharmaceutical industry, and eight business conglomerates for the
year 2000. The results show that research and development has a positive
but not significant impact on the firm's profitability; and that corporate
strategy is not a significant factor on profitability either. The paper
concludes that problems with the data may have been a reason that the
results turned out the way they did; and that further investigations
into this area should be done for more accurate results.
Name: Jennifer Strittmatter
Date: Spring 2004
Major(s): Economics
Thesis Committee: Behrooz Afrasiabi, Earl Adams
TITLE: Economic Valuation of Residential Housing
ABSTRACT: Every year, thousands of people either
become first-time homeowners or relocate to another home. When a consumer
is looking for a home, they focus on the features and amenities inside
and outside of the home that is most suitable for themselves and their
families. Using a template of professional appraisers' evaluations of
residential properties and the idea behind Hedonics, an equation was
formed by choosing some of the most important features of houses that
consumers care about such as number of bedrooms, lot size and condition
of the home. By inputting the consumer's preferred features, the equation
can compute an estimated price that the buyer should expect in a selected
area.
Name: Robert Taylor Jr.
Date: Spring 2004
Major(s): Economics
Thesis Committee: Stephen Onyeiwu, Behrooz Afrasiabi
TITLE: A Managerial Application of Cost Functions
by a Railroad: An Analysis of the Toledo, Ohio Freight Yard, the East
Erie Commercial Railroad and the Pittsburgh & Ohio Central Railroad
ABSTRACT: My intended project will focus on the
relationship between cost and output, while examining the results to
find the relationships' direct usefulness to industrial managers in
the railroad industry. The ability to control performance and costs
is a major necessity in almost every sector of industry and trade. Through
the applications of costs functions and control charts, I have examined
evidence from three regional railroads to determine firm efficiency,
cost minimization, and the least cost efficient results in leadership.
The three railroads are class 3 railroads and operate mainly as switching
and terminal railroads. The results generated from this project present
the determinants involved in the process of cost minimization and therefore
firm efficiency within the regional railroad industry of Pennsylvania.
The results conclude the Pittsburgh & Ohio Central Railroad as the
most efficient firm followed by the East Erie Commercial Railroad and
lastly the Toledo, Ohio Freight Yard.
Name: Lee Tenace
Date: Spring 2004
Major(s): Economics
Thesis Committee: Janine Sickafuse, Tomas Nonnenmacher
TITLE: How Do Antitrust Laws Affect Professional Sports?
The Case of Maurice Clarett
ABSTRACT: Antitrust Laws can be found dealing
with every level of business in the world today. In this comprehensive
project, we will look at antitrust laws with a main focus on the professional
sports industry. With an exception to baseball, antitrust laws play
a big part in the professional sports industry. The antitrust laws are
set to promote competition in the playing field. They keep the leagues
running smoothly so that there is not one dominant team that can buy
every player and create a monopoly that wins every single year. That
is not what sports fans pay their money to see. The one sports league
where antitrust laws have recently become harmful in the game is the
National Football League. The reason for this is because they have a
rule that states that a player cannot gain entry into the National Football
League unless he is three years removed from his high school graduation.
This rule has been set in stone for quite some time now and although
many players have felt that they wanted to challenge the rule, none
have ever gone through with it. The players claimed that they would
not be able to find the lawyers that could match up with the ones that
the NFL has. Also, by the time a decision would be made by the court,
they would be of age to enter the league at that point anyway. Needless
to say, the rule has never been touched or tampered with until just
recently.
Maurice Clarett, a star running back from The Ohio State University,
has taken this rule to court claiming that the rule is in violation
of antitrust laws. He is trying to leave college after his sophomore
year at the age of twenty and only two years removed from his high school
graduation. Many believe that this is a terrible decision on behalf
of Clarett; while others feel that this is something that has been needed
to be done for a while now.
Name: Frank van Ameringen III
Date: Spring 2004
Major(s): Economics
Thesis Committee: Tomas Nonnenmacher, Antoni Moskwa
TITLE: Determining the Relationship Between
Economic Globalization and Human Development
ABSTRACT: Quality of life is a concept defined
differently across the broad spectrum of cultures throughout the world.
Some consider a simplistic and traditional way of living to be the most
fulfilling, while others strive for wealth and political involvement.
In empirically measuring such an abstract concept, it is necessary to
quantify the elements related to personal and cultural fulfillment.
Considering specific cultures hold true to modest ideals and strive
to maintain tradition, this assertion is certainly controversial.
This paper answers the following question: Does economic globalization
have a positive effect on quality of life (as measured by the human
development index)? Regression analysis is the primary method by which
the question is answered. This model draws at the relationship between
the dependent variable (human development index) and the independent
variables (international trade, foreign direct investment, and capital
market flow). A substantial correlation between the human development
index and the independent variables is expected.
Name: Gregory Wisser
Date: Spring 2004
Major(s): Economics
Thesis Committee:
TITLE:
ABSTRACT: