Author: kak11010

Michael Stone defends thesis and heads to Quinnipiac University

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On June 28, 2010, Michael Stone defended his dissertation entitled “Three Essays on the Economics of Tort Law.” Stone’s dissertation focused on three distinct areas relating to tort law: the enactment of caps on punitive damages, the impact of taxable costs statutes on settlement rates, and the optimal level of attorney advertising intensity. In the first of these papers, Stone utilized hazard analysis to uncover some support for an economic model justifying caps on punitive damages, though there was evidence that political pressure by the legal services and insurance industries played a role in cap enactment. In his second essay, Stone utilized an ordinary least squares regression with a wild bootstrap and HC3 correction to find some evidence that taxable costs statutes (laws which permit the victorious party at trial to recover authorized litigation-related expenses from the losing party) decreased the rate of settlement. And, in his final essay, Stone produced a theoretical model which weighed the benefits of deterrence against the costs of litigation and advertising to obtain an optimal level of attorney advertising intensity. Each of these works was prepared under the tutelage of his major advisor, Professor Thomas Miceli.

This fall, Stone will be heading to Quinnipiac University as a visiting assistant professor of economics.

From Detroit to Singur

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“As land gets transferred from agriculture to industry, many people (like share croppers and landless workers) will lose their livelihood. It would be morally reprehensible to drive a Nano or a Cadillac on the dirt roads wet with the tears of the dispossessed. Economic rehabilitation of these displaced workers remains the first priority of any responsible government.”

An article by Professor Subhash Ray recently appeared in the November 17, 2009 issue of the highly esteemed biweekly literary magazine, Desh, published in Bengali from Calcutta. His paper draws upon the parallel between the experiences of General Motors in Poletown, MI in the 1980s and the recent events relating to Tata Motors and the agricultural land in Singur, West Bengal, to raise a number of questions about government taking of land for private development. A brief review of the history of land acquisition through eminent domain in the US serves as the background for a discussion of the different important questions like the problem of strategic holdouts and fair compensation. The essay ends with an emphasis on the moral obligation of the government, especially in India, for proper rehabilitation of the displaced when exercise of Eminent Domain powers becomes unavoidable.

His paper has attracted a lot of attention and has been highly acclaimed by scholars interested in the question of land acquisition for economic development. An English version of the paper is available as a University of Connecticut Economics working paper. The original article in Bengali is available on request from the author.

Prof. Ross to publish in the Review of Economics and Statistics

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Prof. Stephen Ross with his co-authors Eric Brunner (BA alumnus) and Ebonya Washington had their paper “Economics and Policy Preferences: Causal Evidence of the Impact of Economic Conditions on Support for Redistribution and Other Ballot Proposals” accepted recently at the Review of Economics and Statistics, one of the leading journals in the profession.

In this paper, they analyze voting data on California ballot propositions between 1990 and 2004 classifying these propositions based on their political leaning (Democrat vs. Republican) and based on the type of proposition (fiscal vs. social). They find strong evidence that positive economic shocks lead to declines in support for redistributive policies using an exogenous proxy for economic shocks based on changes in national employment composition and the composition of worker industry at the neighborhood level. Further, they find that voters behave as if the voters have a preference for consistency in political preferences so that economic shocks have a smaller but similar impact on voting on non-economic ballot issues.

Prof. Zimmermann tours Europe

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Prof. Zimmermann is in Europe giving a series of lectures in Italy, Portugal and Germany. His trip started in Rimini, Italy, where he presented at the Rimini Conference in Economics Finance. He then headed to Varenna, Italy, where he attended the NBER Trans-Atlantic Public Economics Seminar. His Italy portion of the journey concluded in Florence, where he gave two seminars at the European University Institute.

In Portugal, he presented and then participated in the concluding panel of a workshop on research evaluation at the University of Minho, in Braga. In Germany, he first participated in a meeting of the scientific board of the International Data Service Center at IZA, in Bonn, and concluded his trip with a presentation at a workshop on macroeconomics at the University of Mannheim.

Maroula Khraiche defends thesis, heads to Colorado College

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Maroula Khraiche defended her dissertation on Monday, June 7th 2010. Entitled “Essays on the Economics of Labor Migration,” her dissertation analyzes the macroeconomic effects of migration patterns that are influenced by different types of policy. In particular, she examines the popularity of temporary worker permits based on how the presence of temporary workers affects the earnings of various demographic groups within a host country. She also examines the implications of trade policy, and how reduced trade restrictions can result in increased migration from a country. Finally, she also considers how labor market policies such as the minimum wage can affect migration across sectors with a developing economy. In all her work, conducted under the supervision of her adviser, Prof. Christian Zimmermann, Maroula uses calibrated theoretical models to generate predictions, and then tests those predictions using empirical data.

Next year Maroula will be an Assistant Professor of Economics at Colorado College. Although she will undoubtedly miss the economics department here at UConn, Maroula is very excited about her new position and new department. We wish her the best of luck.

Prof. Langlois reports about his travels in Europe

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Professor Richard Langlois is currently traveling in the United Kingdom as a Visiting Fellow of the Academy of Advanced International Management. He will be giving a series of talks in Lancaster, London, and Edinburgh. As part of the trip, he will also attend conferences in London, Scotland, and Denmark. Professor Langlois’s first stop in the UK was Nottingham, where he spoke at the Nottingham University Business School and touched base with UConn’s Marshall Scholar Michelle Prairie (pictured), who is completing her M. S. in Economics at Nottingham before moving on for another Masters degree at the London School of Economics in the fall.

On June 13 he visited the Lake District of Cumbria, where he discovered not only another Storrs but also a Storrs Hall, built in the 1790s and famously the home of John Bolton, a Liverpool ship owner who engaged in the “triangular trade” – including slaves – among Africa, the West Indies, and Britain.

Prof. Couch publishes in American Economic Review

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An article based on the work of Prof. Kenneth Couch that examines the experiences of workers who have lost jobs they held for a long time is contained in the current issue of the American Economic Review. The paper, entitled “Earnings Losses of Displaced Workers Revisited“, is co-authored with Dana Placzek who is a research analyst for the Connecticut Department of Labor. The research makes use of state administrative records to show that workers displaced due to large-scale layoffs and plant closures experience sustained earnings losses. Those losses are seen as the proportion of earnings attributable to specific human capital. The analysis also demonstrates that the size of the earnings losses depends heavily on whether workers take Unemployment Insurance benefits during the period of job transition.

The same research project that resulted in this publication in the centennial issue of the American Economic Review (Volume 100, Issue 1) also resulted in an additional publication in Research on Aging regarding specific experiences of older displaced workers in Connecticut that was co-authored with Dana Placzek and Nicholas Jolly, when he was a graduate student in our program. Additional work from this project showing the impact of the business cycle on the depth of earnings losses is still under review.

Summer 2010 Issue of The Connecticut Economy: Summer Fun with a Dose of Reality

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A rising tide of shopping and recreation activity along with a small surge in jobs offer hints that the recovery is making some waves. But the state’s budget crunch reminds us that it is still no day at the beach for Connecticut’s economy. With the economic climate improving, the Summer 2010 issue of ‘The Connecticut Economy: A University of Connecticut Quarterly Review’ explores the potential for baseball and winemaking to spur economic development. Mindful of the economic risks ahead, the magazine also examines the looming threat of the state’s unfunded pension liabilities.

A guest commentary by Robert Santy, President and CEO of the Connecticut Economic Resource Center, examines the convergence of forces that gave rise to the state’s 30 vineyards, making them a vibrant tourist draw and potential source of economic growth. Santy also spoke and responded to media questions at the June 8th press release of the summer issue at CERC’s Rocky Hill headquarters.

Rumor has it that Connecticut could be in line for a major-league baseball team. The state has a rich heritage of professional baseball (surely you recall the Hartford Dark Blues and the New Haven Elm Citys), and the Tampa Bay Rays — despite being perennial contenders in the American League East– cannot seem to attract a crowd in their current home. Executive Editor Steven Lanza analyzes the logic behind such a move and the potential benefits to the Nutmeg State of relocating the Tampa Bay team to “a geographic ‘sweet spot’ midway between Gotham and Beantown.”

Connecticut may need a good diversion: its unfunded liability for state retiree pensions and benefits totals $7,395 for every state resident, based on 2009 Census population figures. Compared with more populous states, Nutmeggers’ liability is 2.6 times New York’s, 3.2 times Massachusetts’, and 4.4 times California’s. Quarterly co-editor Arthur Wright and UConn economics professor emeritus Peter Barth examine the available “solutions” as Connecticut tries to honor its retirement promises to state employees.

Commercial winemaking in Connecticut began in the mid-1970s, and the industry, as in other states, has sought to encourage growth by promoting “wine tourism.” The spillover benefits of winemaking to other businesses–food, lodging, and entertainment–and its compatibility with farmland preservation goals might justify targeted subsidies or tax credits, similar to those offered to the film industry. Co-editor Dennis Heffley and graduate students Christopher Jeffords and Jeremy Jelliffe examine the features of winemaking that might warrant a public effort to promote its production, but they also note that such policies are not universally endorsed.

Other features of the summer issue include summaries of recent data and forecasts for the state’s largest labor market areas, as well as a centerfold map of public library resources and usage in each of the state’s 169 towns.

For free access to this and other issues of The Connecticut Economy, visit: http://cteconomy.uconn.edu/.

Joseph Rebello joins department as Assistant Professor in Residence

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Joseph Rebello, PhD candidate from the University of Massachusetts-Amherst and Political Science BA from the University of Rhode Island, will be joining the department this Fall as Assistant Professor in Residence. A specialist of political economy, economic methodology, history of economic thought and macroeconomics, his research “combines a critique of essentialist dualisms in monetary thought and the surplus notion of class in order to develop a Marxian account of non-commodity money.”

At UConn, he will be teaching some large principles classes as well as some upper level undergraduate Economics classes for our majors.

Lei Chen defends, takes positions at UConn

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Lei Chen defended his dissertation in April 2010. His thesis focused on the productivity and efficiency of general dental practices in the U.S. His research lies at the intersection of applied microeconomics, health economics, and operations research. He is going to take a joint position of assistant professor in residence at UConn Health Center and UConn Avery Point. During his study at our department, Lei worked with his major advisor, Prof. Subhash Ray on a variety of projects and published a couple of papers in journals such as the International Journal of Production Economics and the Indian Economic Review.

At the UConn Health Center, Lei will continue doing empirical studies in dental care, especially the effectiveness and efficiency of dental services at Federally Qualified Health Centers (FQHCs). He will also teach principles of macroeconomics and principles of microeconomics at the UConn Avery Point campus in the next academic year.