Faculty publication

Professor Prakash publishes in American Economic Journal: Applied Economics

Professor Nishith Prakash’s paper “Cycling to School: Increasing Secondary School Enrollment for Girls in India“, with Karthik Muralidharan, has been accepted for publication in the American Economic Journal: Applied Economics.

In this paper, the authors “study the impact of an innovative program in the Indian state of Bihar that aimed to reduce the gender gap in secondary school enrollment by providing girls who continued to secondary school with a bicycle that would improve access to school.

Using data from a large representative household survey, we employ a triple difference approach (using boys and the neighboring state of Jharkhand as comparison groups) and find that being in a cohort that was exposed to the Cycle program increased girls’ age-appropriate enrollment in secondary school by 32% and reduced the corresponding gender gap by 40%. We also find an 18% increase in the number of girls who appear for the high-stakes secondary school certificate exam, and a 12% increase in the number of girls who pass it. Parametric and non-parametric decompositions of the triple-difference estimate as a function of distance to the nearest secondary school show that the increases in enrollment mostly took place in villages that were further away from a secondary school, suggesting that the mechanism of impact was the reduction in the time and safety cost of school attendance made possible by the bicycle.

We also find that the Cycle program was much more cost effective at increasing girls’ secondary school enrollment than comparable conditional cash transfer programs in South Asia.”

Professor Prakash is following up on this work with his new project, ‘Wheels of Change: Impact of Cycles on Female Education and Empowerment in Zambia’.  For more information, see Professor Prakash Studies the Impact of Bicycles on Female Education and Empowerment in Zambia

Professor Coşgel Publishes Book

Economics of Ottoman Justice Book CoverProfessor Metin Coşgel has published The Economics of Ottoman Justice (Cambridge University Press, November 2016) with coauthor Boğac Ergene.

“During the seventeenth and eighteenth centuries, the Ottoman Empire endured long periods of warfare, facing intense financial pressures and new international mercantile and monetary trends. The Empire also experienced major political-administrative restructuring and socioeconomic transformations.

In the context of this tumultuous change, The Economics of Ottoman Justice examines Ottoman legal practices and the sharia court’s operations to reflect on the judicial system and provincial relationships. Metin Coşgel and Boğaç Ergene provide a systematic depiction of socio-legal interactions, identifying how different social, economic, gender and religious groups used the court, how they settled their disputes, and which factors contributed to their success at trial. Using an economic approach, Coşgel and Ergene offer rare insights into the role of power differences in judicial interactions, and into the reproduction of communal hierarchies in court, and demonstrate how court use patterns changed over time” – Cambridge University Press

Professor Simon publishes in the American Economic Journal: Applied Economics

Professor David Simon published his paper “Does Early Life Exposure to Cigarette Smoke Permanently Harm Childhood Welfare?  Evidence from Cigarette Tax Hikes” in the American Economic Journal: Applied Economics.

Professor Simon used restricted use health survey data to link cigarette taxes to cohorts of children. This shows that in-utero exposure to a dollar increase in the state cigarette tax causes a 10% decrease in sick days from school and a 4.7% decrease in having two or more doctor visits.  Jointly these findings support the argument that exposure to cigarette smoke in utero carries significant medium-term costs, and that excise taxes can lead to lasting intergenerational improvements in wellbeing.

Professor Ross’s Article in Vox

An article by Professor Stephen Ross, co-authored with Stephen Billings and David Deming, has been posted on the Centre for Economic Policy Research’s policy portal, Vox:

Neighbourhood spillovers in youth crime: Social interactions matter

In the article, Professor Ross and his co-authors discuss recent research on the mechanisms behind the neighborhood concentration of crime.  They focus on their recent NBER and HCEO working paper, in which they show that social relationships at school play a very important role in mediating neighborhood effects in youth crime.

 

Professor Baggio publishes in the Journal of Economic Behavior & Organization

baggioProfessor Michele Baggio’s paper “Optimal management with reversible regime shifts” with Paul Fackler has been published in the Journal of Economic Behavior & Organization.

The paper examines the management of a natural resource, a fishery, subject to regime shifting dynamics.

Professors Alpert, Couch and Harmon publish in the American Economic Review

The work of University of Connecticut Professors William Alpert, Kenneth Couch, and Oskar Harmon, entitled “A Randomized Assessment of Online Learning”, appears in the May issue of the American Economic Review.  The paper was selected for inclusion in the Papers and Proceedings issue after being submitted in response to a national call for papers on economic education.

The study provides the fourth randomized examination of online versus face-to-face education ever conducted for a semester length college course.  In this case, the course studied was microeconomic principles.  The study shows that students in a face-to-face course did about half a letter grade better than students in a purely online course developed consistent with best practices for online education. The study finds that there are no meaningful differences in performance when comparing students in a course with a blended versus face-to-face format.

Prof. Ross’s work with Pat Bayer and Fernando Ferreira featured in the Atlantic and the Pacific Standard

rossProfessor Ross’s work with Pat Bayer and Fernando Ferreira has been featured in The Atlantic and the Pacific Standard

http://www.theatlantic.com/business/archive/2016/02/blacks-hispanics-mortgages/471024/

https://psmag.com/predatory-lending-is-another-form-of-american-housing-discrimination

This paper examines racial and ethnic differences in high cost mortgage lending in seven diverse metropolitan areas from 2004-2007. Even after controlling for credit score and other key risk factors, African-American and Hispanic home buyers are 105 and 78 percent more likely to have high cost mortgages for home purchases.

The increased incidence of high cost mortgages is attributable both to sorting across lenders (60-65 percent) and to differential treatment of equally qualified borrowers by lenders (35-40 percent). The vast majority of the racial and ethnic differences across lenders can be explained by a single measure of the lender’s foreclosure risk, and most of the within-lender differences are concentrated at high-risk lenders.

Thus, differential exposure to high-risk lenders combined with the differential treatment by these lenders explains almost all of the racial and ethnic differences in high cost mortgage borrowing.

Professor Ross Has Lead Article in American Economic Journal: Economic Policy

rossProfessor Steve Ross’s paper “The Vulnerability of Minority Homeowners in the Housing Boom and Bust” with Patrick Bayer and Fernando Ferreira was the lead article in the February issue of the American Economic Journal: Economic Policy.

In this paper, they find that African-American and Hispanic borrowers have substantially higher delinquency and foreclosure rates during the financial crisis even after controlling for detailed borrower and loan risk factors.  These differences are concentrated heavily among homebuyers who purchased their home very near the peak of the market, even after controlling for negative equity associated with the timing of the purchase.  For refinance mortgages, they find a similar pattern linked to when the home was purchased, rather than the date of the refinance mortgage.

They argue that the findings are consistent with higher risk borrowers, especially higher risk minority borrowers, being drawn into the market during the housing market expansion.

Professor Naknoi Publishes in the Canadian Journal of Economics

Canadian Journal of EconomicsProfessor Naknoi’s paper titled “Real Exchange Rate Fluctuations, Wage Stickiness and Tradability” has been accepted for publication in the Canadian Journal of Economics.

Her study demonstrates that when factors of production is classified by their tradability, the relative wage of nontraded labor influences the real exchange rate through the relative cost of distribution services. She employs monthly data on the sector-level U.S.-Canada real exchange rate and the relative wage of service-producing labor. The relative wage accounts for 40% of the variability of the real exchange rate at a one-month horizon.

Furthermore, she constructs a measure of effective nontraded labor content to classify goods into nontraded and traded ones, and shows that the variability of the price of the nontraded-goods basket accounts for more than half of the variability of the real exchange rate.