Founded in 1776 at the College of William and Mary, Phi Beta Kappa is an undergraduate honors society that celebrates excellence in the liberal arts. Its long list of distinguished members—Ralph Waldo Emerson, Nathaniel Hawthorne, President Theodore Roosevelt, etc.—just got a little longer. UConn’s Epsilon Chapter of Phi Beta Kappa recently added 8 senior Economic majors to its list of members: Joseph Antelmi, Michael Samuel Bokoff, Tyler David Gold, John R. Harry, Yixian Lai, Margaret Lynn McCarthy, Eric Burton Roy, and Alex Keller Upton. The Department of Economics congratulates this group of outstanding students.
Current students
Shadow economies under the volcano ash cloud
PhD student Catalina Granda-Carvajal (advisor, prof. Zimmermann) has been invited to present last week in an international workshop in Germany, “Shadow Economy, Tax Policy and Labor Markets in International Comparison: Options for Economic Policy“. This workshop was held at the University of Potsdam, near Berlin, with the aim to demonstrate advances in the analysis of shadow economic activity and discuss how these can be used for better economic policies. Granda’s paper, entitled “The Unofficial Economy and the Business Cycle: A Test for Theories”, uses official data to establish a set of business cycle features and study how they vary across countries with the size of the unofficial sector, and compares these empirical regularities with the predictions of existing theories on macroeconomic fluctuations in economies featuring underground activities.
After having the chance to exchange ideas with young scholars and with some of the world experts in the field, Granda has been faced with the uncertainty imposed by the volcanic ash cloud in Iceland. Being stuck in Berlin has not been an easy situation; however, she reports “I have spent some time sightseeing, visiting museums and, overall, taking advantage of such a ‘forced tourism’. With plenty of history while trying to stand as a leader in arts and promoting Western values, now I understand why this city is one of the most exciting places in Europe. All in all, I cannot complain, but I cannot wait for the flight back to Storrs to share with my friends and colleagues how this experience has enriched my life and view of things.”
Undergraduate Mark Connolly chosen as University Scholar
For the second time in recent months, the Economics Department has had one of its students, Mark Connolly, chosen for the prestigious designation of University Scholar. Mark’s selection follows on the heels of the selection in August of Philip Gorecki, a double major in economics and molecular and cell biology. Administered by the Honors Program, the highly-selective University Scholars program is designed to provide “the most academically elite students at UConn” an opportunity to advance their UConn education through this special program. A key part of the program is in-depth and focused research on a project of the student’s choice. Mark was one of only 24 students recently selected as 2010 University Scholars.
Mark is pursuing dual degrees in Accounting and Economics, and is working toward his CPA degree. He is particularly interested in auditing and in environmental economics and has thus chosen to focus his project on environmental auditing. He will be studying the role that accounting firms can and do play in environmental auditing, and the potential for auditing to provide valuable information both to the audited firms and to the public. He is particularly interested in the use of audits as third-party certification. Mark will be interning this summer with PricewaterhouseCoopers to gain a greater understanding of the audit process. His faculty advisors on this project will be Professor Lawrence Gramling in the School of Business, and Professors Kathleen Segerson and Olivier Morand, both in Economics.
One advantage of the Scholars’ program is the flexibility it offers students in designing their plans of study. Mark has structured his plan of study and remaining coursework to give him the background necessary for his project. In the course of doing this, he will also be preparing himself for his next goal, graduate study in environmental economics. One day he hopes to be a research professor bridging the gap between industry and environmental protection.
Economics Major Wins Outreach Award
Joseph Antelmi, an Honors student majoring in Economics, is the 2009 student recipient of the Provost’s Award for Excellence in Public Engagement. Provost Peter Nicholls announced the winners of the awards at a reception on December 9.
A resident of Suffield, Joe is active in a wide variety of outreach and engagement. He is on the board of directors of the Hartford non-profit End Hunger CT!, and has been involved with numerous public-interest organizations both on and off campus. The son of Italian immigrants, Joe is especially interested in immigration issues, and worked as a research assistant for History Professor Mark Overmeyer-Velasquez in creating an Honors course on migrant workers in Connecticut.
Joe has received a number of other University awards, including the Spirer/Drucker Humanitarian Award and the Audrey Beck scholarship, the latter given by the Economics Department. He was also one 14 students chosen for the 2009 UConn Leadership Legacy Experience, an endowed program that identifies and mentors top student leaders on campus. (Another Economics major, Phil Gorecki, is also in the 2009 Legacy cohort, and junior major Rafael Perez-Segura has been chosen for the 2010 cohort.)
Joe is carrying a 3.9 grade-point average, and was a University nominee for the Rhodes, Marshall, Mitchell, and Truman scholarships. Next semester he will be studying abroad in Greece. And in what little spare time he has, he fronts a rock group called Exit 47.
New crop of PhD students heading to the labor market
The Economics Department is happy to announce that 11 of our graduate students are completing their Ph.D. this academic year and are currently on the job market. Their fields range across environmental, industrial organization, international trade, labor, law and economics, macroeconomics, sports economics and urban. The students are listed below in alphabetical order along with the name of their major advisor, a brief summary of their dissertation, and any web links. Going forward, updated information may be found at the department’s job market page.
Gulgun Bayaz (advisor: Couch)
I investigate the role of market forces and the institutional constraints in explaining the earnings inequality differentials in the United States and Germany, by focusing on educational wage differentials. I find that differential growth in relative skill supplies is largely responsible for the differences in returns to skill leaving a secondary role for wage-setting institutions in explaining the differentials during the 1980s and 1990s.
Onur Burak Celik (advisor: Knoblauch)
My work departs from the mainstream matching theory literature and analyzes via simulations the effect of correlation in the preference lists on the aggregate satisfaction of the participants in roommates problem. Results show that correlation is an important factor on the aggregate satisfaction of the individuals. A higher correlation level among the preference lists leads to less satisfied participants.
Lei Chen (advisor: Ray)
I apply both non-parametric Data Envelopment Analysis and parametric Stochastic Frontier Analysis methods to study the production technology and efficiency in the U.S. dental care industry. The empirical analysis is based on a practice level data set constructed from the American Dental Association 2005 survey on private dental practices in Colorado. It is the first study focused on the technical efficiency of dental care industry in the U.S. at practice level in the last 25 years.
Paramita Dhar (advisor: Ross)
My dissertation examines two different questions about housing and location choice. In the first essay, I apply a difference-in-difference model to capture the causal effect of school quality on house prices by looking at houses located on school district boundaries in Connecticut. The rest of the dissertation deals with detailed spatial analysis of the nature of housing discrimination in the context of multiple minority groups in Los-Angeles using Housing Discrimination Study (2000).
Juan-Pedro Garces (advisor: Randolph)
The first essay –to be published this Fall in the Journal of Knowledge Globalization- is an empirical study of the determinants of educational quality, focusing on the special case of Chile, my native country. The second paper is a cross-country study of the effects of population density on educational attainment (as a proxy for human capital) and, through it, on living standards. The dataset contains panel data for 209 countries. This paper will be presented at the ASSA meetings in Atlanta in January 2010. The third paper presents a theoretical model of the influence of institutional development -including the educational system- on economic growth.
Nicoleta Iliescu (advisor: Matschke)
In my job market paper (“Antidumping as Trade Protection: Evidence from the US Lobby Activity”), I investigate the impact of lobbying on the antidumping practices in the US. Currently, antidumping is the most heavily used temporary tariff measure both worldwide and in the US. Thus, it becomes an appropriate avenue of studying how political pressure shapes the level of protection some domestic industries receive. The empirical results I derive in the paper reinforce the hypothesis that the political clout plays an important role in granting trade protection through antidumping duties.
Nicholas Jolly (advisor: Couch)
My job market paper focuses on the effects job displacement has on intragenerational earnings and income mobility. The main results of the paper show that an involuntary job loss significantly increases the probability of a worker moving into the bottom half of the labor earnings distribution not only in the year of displacement, but also for several years after the event occurs. However, if the worker has access to earnings and income from a spouse and government transfer payments, the negative mobility effects of displacement are significantly mitigated.
Maroula Khraiche (advisor: Zimmermann)
In my dissertation, I qualitatively and quantitatively evaluate the channels that affect labor migration, both skilled and unskilled, examining the effects of immigration policies on both the sending and receiving economies specifically considering guest worker programs, the implication of trade for migration, and informal labor markets.
Zinnia Mukherjee (advisor: Segerson)
The theme that runs through my dissertation is the design and evaluation of conservation policies to protect endangered species. In particular, I look at the effectiveness of voluntary approaches and the role of background regulatory threat in mitigating stochastic sea turtle bycatch and the welfare effects of unilateral conservation policies in an open economy. In addition to my dissertation, my research includes analyzing behavioral responses of fishers to marine hypoxia, with specific focus on the Long Island Sound fisheries.
Michael Stone (advisor: Miceli)
I present a theory which incorporates litigation costs into the standard economic model of punitive damages showing that caps on punitive damages induce under deterrence, but also reduce litigation costs. At the optimum, caps on punitive damages are justified when the marginal benefit of deterrence equals the marginal litigation cost. Utilizing a rich panel dataset from 1981 to 2005, I uncover some empirical evidence that litigation costs cause legislators to enact caps. There is compelling empirical evidence that the conflicting lobbying efforts of the legal services and insurance industries are most responsible for the enactment of caps.
Brian Volz (advisor: Miceli)
My dissertation examines discrimination and productivity in the professional baseball market. The first chapter, which has recently been published in The Journal of Sports Economics, finds evidence that minority managers are more likely to return the following season than comparable white managers. The second chapter finds evidence that discrimination in hiring may contribute to this higher survival rate. The third chapter examines how efficiently MLB teams produce wins and attempts to identify team characteristics which lead to efficient production.
Philip Gorecki, University Scholar
Each year the Department of Economics attracts a large number of outstanding students with diverse talents and interests. Among the current crop is Philip Gorecki, one of a handful of UConn students selected each year as University Scholars. Students in the Scholars Program are encouraged to tailor a plan of study that meets their personal interests and career goals. Frequently the plans involve more than one field of study–Phil’s is an excellent example, and quite a unique one at that.
In addition to his B.A. in Economics, Gorecki will graduate with a B.S. in Molecular and Cell Biology. This might seem like just an odd mix of interests, but the two majors offer the ideal background and training for his University Scholars research project, titled “Microarray Biosignatures of Disease: Their Assessment and Economic Impact.”
Like his curriculum, Phil’s study has two major components. The first phase will examine the development of early diagnostic tools utilizing Grating Coupled Surface Plasmon Resonance Imaging (GCSPRI) to determine the molecular and cellular biosignatures associated with agricultural disease. [And you thought only economists used complex terms.]
After exploring these new methods for early detection of disease among farm animals, Phase 2 of the study will estimate the economic value of the new diagnostic tools, using models based on the costs of the 1997 outbreak of Foot and Mouth Disease in Taiwan and the 2001 outbreak in the United Kingdom.
We wish Phil all the best with his study, and until the profession launches a new journal in bioeconomics, we look forward to seeing Phil’s work in both the MCB journals and the economics journals.
Current PhD student and two recent graduates to publish in Economic Inquiry
Current Ph.D. student Marina-Selini Katsaiti (IDEAS) and recent graduates Philip Shaw (IDEAS) and Marius Jurgilas (IDEAS), all advised by Christian Zimmermann (IDEAS), will publish a paper entitled “Corruption and Growth Under Weak Identification” in the journal Economic Inquiry. This paper reviews the recent literature in econometrics that focuses on identification and statistical inference when a researcher has weakly correlated instruments variables. In light of this recent theoretical work in econometrics, it analyses a highly influential article in economics and finds that the original results of this article are misleading. It then updates the original analysis and shows that there is no relationship between corruption and economic growth or investment, which is contrary to the results of the original article. The paper also suggests that the problem of weak instruments in the corruption literature may not be isolated to a single article but instead the entire empirical literature that tries to find a causal link between corruption and economic growth or investment. The paper contributes also to the literature by demonstrating how researchers can “deal” with the problem of weak identification.
Undergraduate student blogs about life on campus
Economics and political science double major Michael Mitchell is reporting during the 2008-09 academic year about his life on campus on the UConn Admissions blog. Lately, he has been blogging about his internship in Washington DC working for Congressman Jim Himes of Connecticut’s 4th congressional district.
PhD student to publish paper in Journal of Sports Economics
Economics PhD student Brian Volz, advised by Thomas Miceli, has been a fan of baseball his entire life and spent much of his free time as an undergraduate playing baseball. As a graduate student at UConn he has been lucky enough to incorporate his favorite leisure activity into his study of labor economics.
His paper “Minority Status and Managerial Survival in Major League Baseball” was recently accepted for publication in the Journal of Sports Economics. The paper began as a project for one of his PhD field courses and was expanded and revised over the past two years into an economics department working paper and eventually a journal submission. The paper was motivated by the relatively small number of minority managers in a league with a relatively large percentage of minority players. The paper examines the impact of minority status on the survival of Major League Baseball managers in order to determine if discrimination in managerial retention is to blame for the lack of minority managers. In order to answer this question data envelopment analysis, which he was introduced to in Professor Ray‘s (IDEAS) Productivity Analysis course, and survival time analysis are applied to performance and survival data from the 1985 to 2006 baseball seasons. It is shown that when controlling for performance and personal characteristics minorities are on average 9.6% points more likely to return the following season. Additionally, it is shown that winning percentage has no impact on managerial survival when the efficiency of the manager is controlled for.
Senior wins prestigious Marshall scholarship
From CLAS in the news:
Michelle Prairie, a Presidential Scholar from Vernon, Conn., with a perfect 4.0 grade average, will spend the next two years in the United Kingdom studying for two master’s degrees in development economics.
She is the only student at a public institution in New England selected as a Marshall Scholar for 2009. The other New England winners were four students from the Massachusetts Institute of Technology, three from Harvard, two from Boston College, and one each from Princeton and Middlebury.
Prairie will study for one year each either at the University of Nottingham and the London School of Economics and Political Science, or at the University of Warwick and the School of Advanced Study of the University of London.
She plans to become a professor of development economics, focusing her research on income inequality, particularly in Latin America, and on the effects of trade, aid, and government policies on the distribution of wealth. Eventually she hopes to be a policy analyst for the United Nations, the World Bank, or the U.S. government.
Prairie, who was valedictorian of her senior class at Rockville High School, entered UConn hoping to study international business. In her second semester she took an economics course and “something just clicked,” she recalls. She became an economics major in CLAS, where she has interned for the Connecticut Center for Economic Analysis and for Associate Professor Susan Randolph (IDEAS), whose research focuses on development economics.
President Michael J. Hogan, whose letter of endorsement capped Prairie’s application to the Marshall committee, called her “thoughtful, astute, and very articulate.”
“Few students get as excited about economic theory and analysis as Michelle,” he wrote.
Prairie’s interest in development economics was born on a trip to Brazil with her church group when she was in high school.
She played soccer with 16-yearold Brazilians who had no shoes, she recalls. Riding on a bus from the airport through the outskirts of Sao Paulo, she was shocked by the stacked-up shanties on the mountainsides.
At UConn she found opportunities for study abroad in Sweden, where she observed the welfare state, and, through the campus Christian group, Reformed University Fellowship, in Peru, where she taught English as a volunteer and assisted a fledgling microfinance program.
“This is when I knew for certain that I wanted to become a development economist,” she wrote in her Marshall application. “I had found a way to serve the poor by using my passion for economic theory.”
She was reluctant at first to apply for a Marshall, questioning her chances among so many qualified applicants.
“In my mind, she had what it takes. She was a winner. She just needed to feel it,” says Jill R. Deans, director of the office of National Scholarships at UConn.
Deans arranged several mock interviews to prepare Michelle. Among the interviewers were history professor Christopher Clark, chair of the campus Marshall Scholarship nominating committee, and Sandra E. Shumway, adjunct professor in residence of Marine Sciences, who was herself a Marshall Scholar.
Prairie interns at the Travelers Insurance Company in the market research division. As a senior, she won the Travelers Insurance Company Scholarship, the top undergraduate award in the Economics Department.
Her mother, Ellen Prairie, works in the One-Card Office at Wilbur Cross, and her father, Robert Prairie, is a 1981 UConn alumnus in mechanical engineering technology.
“My whole four years at UConn, I could never have foreseen half of the things I’m doing now. I’m so appreciative to UConn for giving me these opportunities,” says Michelle.
She is UConn’s second student to win a prestigious Marshall scholarship, named for America’s first five-star Army general, George C. Marshall. In 1947, as President Harry Truman’s secretary of state, he proposed American economic assistance to post-war Europe.
UConn’s first Marshall Scholar, Virginia DeJohn Anderson, CLAS ’76, is now a professor of history at the University of Colorado. As an undergraduate at UConn she was advised by Board of Trustees Distinguished Professor of History Richard Brown.