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Three Essays on the Economics of Sport

Three Essays on the Economics of Sport

I use quantile regression to consider whether salary differentials may exist only for players in certain salary ranges. Becker (1975) presented the first economic models of discrimination, but in most of his models, the workforce was homogeneous except for their race. This assumption is particularly untenable in professional sport. One could imagine a model in which the benefit of discrimination is fixed, but the costs of discrimination (i.e. foregoing the services of a superior player) rise as player ability increases, as the player becomes more critical to the team’s chance of winning. Palmer and King (2006) had such a model in mind: “The players who fill out the roster and are involved only marginally in the teams on-field success may remain subject to discrimination. For them, the cost of discrimination to owners, teammates, or fans will be considerably less.” In search of such discrimination, Palmer and King grouped players into low, medium, and high salary groups, finding discrimination for their low salary group. Quantile
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Three essays in applied economics

Three essays in applied economics

The London School of Economics and Political Science Three Essays in Applied Economics Amar Shanghavi January 2015 A thesis submitted to the Department of Economics of the London School of Economics f[.]

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Three Essays on Financial Economics

Three Essays on Financial Economics

All of work presented henceforth was conducted for my Ph.D. studies at the Depart- ment of Finance, Copenhagen Business School. The thesis consists of three essays that cover different aspects of financial economics and each essay is independent and self-contained. Chapter 1 was inspired by Kristian Miltersen and Walter Torous’s unpublished theoretical work. I reinterpret the theory, implement it into an empir- ical setting and find the evidence to support it. Chapter 2 has been undertaken by Kristian Miltersn and myself together. We developed research ideas in discussing the issues after the recent financial crisis 2007-2009. We worked together in modelling and solving the questions. Kristian has especially contributed in interpreting our analysis and results. Finally, I was in charge of presenting the current version of paper in putting all together. Chapter 3 is the joint work with Seong-Hoon Kim. I was a lead investigator; developing research questions, putting them into an empiri- cal framework, actively collecting data, and positioning our work in extant literature. Seong-Hoon Kim has contributed to implement STVAR in our empirical examination, furthermore presenting VAR results, writing-up the implications.
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Three Essays in Spatial Economics.

Three Essays in Spatial Economics.

Now that we have modeled both the number of claims and the average indemnity payments, we can use this information to develop loss cost ratios (LCR) to determine the sustainability of the program under the current ratings and the single hurdle models presented in this paper. The loss cost ratio is defined as the total amount paid out in indemnity payouts divided the total collected in premiums.The ideal ratio is one because then the amount paid out is equal to the amount paid in to the insurance program. Therefore, we take the average expected number of claims per county and multiply these by the median simulated average indemnity payments. Figure 2.14 and Table 2.9 show the LCRs for each county given the observed data and the three single hurdle models. These loss cost ratios are based on the aggregation of the 34 years in the sample period. We see that for the observed LCR that half of the counties have paid in three times more in premiums than what has been distributed in premiums, while the counties in the panhandle have LCRs greater than one. Not surprisingly, the LCRs using the SHRZ model are the lowest when compared to the observed LCR and those LCRs of the other single hurdles. This is not surprising because the SHRZ model had the highest estimated number of claims. The LCRs using the SHNB model had the highest loss cost ratio, which is for Escambia County at 125.5. For the LCRs using the SHP model, most counties are greater than one, but there are not the extremely low or extremely high LCRs seen in the LCRs using the other single hurdle models.
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Three Essays in Financial Economics

Three Essays in Financial Economics

We define regimes according to the size and direction of the variance of the residuals in the reduced-form model, with the different regimes affecting the coefficients in distinct ways. Interest rates and credit spreads are in regime I when both shocks are above one standard deviation over the mean. Interest rates and credit spreads are in regime II when both shocks are below one standard deviation under the mean. Finally, interest rates and credit spreads are in regime III when both shocks are within one standard deviation of the mean. Regimes I and II both capture high volatility regions of the distribution, with regime I pertaining to the upper tail and regime II to the lower tail of the distribution, while regime III captures the lower volatility region of the distribution. There are therefore two possible subsets associated with these three regimes, denoted from here on as [regime I&III] and [regime II&III]. Adopting this regime segregation method allows the capturing of the asymmetric effects of shocks on the interest rate-credit spread relation. Additionally, the different standard deviations of interest rates and credit spreads provide favorable conditions for an estimation through heteroskedasticity since the variances of interest rate shocks and credit spread shocks are not proportional. If the identification through heteroskedasticity approach performs well, results from an estimation based on Regime I&III should be very similar to those of an estimation based on Regime II&III. The estimates from these two subsets are shown in Table 1.3.
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Three Essays in Health Economics

Three Essays in Health Economics

Table 1.9 presents the estimates for / 7 , / 8 , / 9 , and / ; in equation (1.4). Based on the p-values for the t-test (row (f) in each panel), we are unable to reject the null hypothesis that there is no differential impact of G2 LBW (or IUGR) on male children born to the high SES group in all panels across all models. In contrast, we find some evidence that females born to the high SES groups are less affected by the intergenerational correlation in LBW (or IUGR). Out of 16 coefficients (row (c) in each panel), three coefficients in panel A and one coefficient in panel B and panel C are statistically significant at the 5% level (two of these five are significant at the 1% level). In panel A, except for SGA (5th percentile), females born to LBW (or IUGR) mothers in a county with a low unemployment rate are 2.26-2.50 percentage points less likely to be LBW (or IUGR). This difference represents a decrease of around 30% as compared to the base-line incidence of LBW (or IUGR) in females. The evidence from town-level income and parental education is weaker. However, we only find a significant differential impact on females born into towns with high average income in the model with 2SD < mean (in panel B) and those born in counties with high parental education in the model with FT LBW (in panel C). 31 We find no differential impact on males and females born in counties that experienced the most improvement in SES (in panel D). Thus, our results weakly support the findings in the literature: children born into favorable socioeconomic conditions suffer less as a result of poor maternal health (Currie and Moretti 2007; Bhalotra and Rawlings 2013). Moreover, our findings indicate
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Three Essays in Health Economics

Three Essays in Health Economics

Regressions include controls for race and education of the younger spouse, quadratics in the age of both spouses separately interacted with dummy variables for Medicare eligibility of t[r]

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Three Essays on Health Economics

Three Essays on Health Economics

Parents and physicians may also manipulate the birth timing due to financial incentives. For physicians, Gruber et al. (1999) find that higher reimbursement fee triggers more C-section deliveries, the C-section procedure is one of the main mechanism of changing the timing of birth. A similar result was found by Grant (2009), his finding indicates that the one percentage point increase in C-section rate from about one-quarter of the original rate is attributed to an additional $1000 reimbursement for C-section procedure. For parents, Dickert-Conlin and Chandra (1999) find the increased tax benefit rise the probability of having the child in the last week of December rather than the first week of next year. Gans and Leigh (2009) find that in 2004 over 1000 births were moved from June to July to get the $3000 baby bonus, which is eligible for children born on or after July 1 st, 2004 in Australian. This shifting constituting 6 percent of the babies who would have been born in June. They also find the drop in the birth of June was mainly due to fewer C-section and induction procedures in June. And of the rise in births of July, half were C-section births, three-tenths were non-induced vaginal births, and two-tenths were induced vaginal births. All of these studies suggest that parents and physicians manipulate the birth timing because of monetary incentive, personal preference, unique cultures and so on.
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Three essays in labor economics

Three essays in labor economics

In the last part of the paper, we simulate the total wage effects of new migration inflows for the period 1999–2017 focusing on model C, which better models workers’ skill mix. In the long run, with full capital adjustment, the overall effect of immigration on wages is, by construction, zero. Nevertheless, considering the wage impact of immigration by education group we find that highly educated workers comparatively experience the most adverse impact of immigration, probably because of the large inflow of highly educated workers in the period considered. Also, we compute short run wage effects on native and foreign workers’ wages subdividing the time span of our dataset into three sub-periods corresponding to migration policy changes or to changes in economic conditions. We find that the short run yearly negative impact of migration inflows on native wages increases after the enactment of the bilateral agreements with the EU on the free movement of persons in 2002, and then mitigates after the beginning of the economic crisis in 2009. Furthermore, highly educated workers bear the most adverse consequences of migration, with a yearly decrease in wages after the enactment of the bilateral agreements of 0.9% for natives and 1.6% for foreigners. Again, this can be explained by the upsurge in highly educated foreign workers that moved to Switzerland after the enactment of the bilateral agreements, especially from Germany.
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Three Essays in Applied Economics.

Three Essays in Applied Economics.

When denoted with “yes”, regressions additionally include Distance from the 1993 reform 6 twoyear dummies; Province FE 104 dummies; Year dummies 2000-2004; City characteristics judicial [r]

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Three essays on the economics of patents

Three essays on the economics of patents

Surprisingly, my results show that licensing is impossible under UE and just significant innovations are licensed under the LP rule, for an- other side it is shown that licensing using a[r]

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Three essays in health economics

Three essays in health economics

Second, a malpractice incidence can severely damage a physician’s reputation, and as Dra- nove et al. (2012) have shown, such reputational damages are associated with economically significant costs. Direct monetary costs arise relatively seldom from a malpractice claim, as most physicians are fully insured against malpractice risks (Danzon 2000, Zeiler et al. 2007). For this reason, physicians should care more about the probability of being sued than awards. One goal of liability for medical malpractice is to align the interests of physicians and other healthcare providers with those of patients: by punishing healthcare professionals for providing too little care, liability is supposed to reduce adverse health outcomes. However, as we know since at least from Kessler and McClellan (1996), liability can also induce physicians to provide too much care. This is referred to as defensive medicine, which, in the economics literature, is defined as care that physicians order to avoid lawsuits but for which cost ex- ceeds expected benefits. The empirical evidence suggests that physicians practice defensive medicine by increasing treatment intensity for heart attack patients (Kessler and McClellan 1996, Avraham and Schanzenbach 2015) and ordering more imaging services (Baicker et al. 2007). The evidence regarding the rates of Cesarean sections, whose excessive use is of- ten attributed to liability pressure, is less conclusive: while Dubay et al. (1999) and Shurtz (2013) find that physicians perform more Cesarean sections following an increase in liability pressure, Currie and MacLeod (2008) and Amaral-Garcia et al. (2015) find the opposite.
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Three essays in empirical economics

Three essays in empirical economics

religious and charitable organizations. More than 80% of employment associated with the NAICS code 813 is accounted for by the two more narrowly defined NAICS codes: 8131 (“religious organizations”) and 8134 (“social and civic organizations”). Since information on the NAICS code 813 is available for a larger number of counties, we use it for the construction of our baseline proxy, but consider the two more disaggregated codes in the robustness checks. We construct four alternative measures of SocialCapital (all expressed in terms of natural logarithms): (i) employment by the organizations classified under the NAICS code 813 over the total employment in a given a county, (ii) employment by the organizations classified under the NAICS code 813 per capita, (iii) the number of establishments classified under the NAICS code 813 over the total number of estab- lishments in a given county, (iv) the number establishments classified under the NAICS code 813 per capita. We use the first measure as our baseline proxy for social capital and consider the other three measures in the robustness checks. The idea behind approximat- ing social capital with the associational density builds on the seminal work by Putnam et al. (1994), Putnam (1995, 2000), who shows that participation in associational activ- ities boosts interaction and cooperation between community members and promotes the norms of reciprocity and trust. The advantage of our measure compared to alternative proxies suggested in the literature (such as voluntary blood donations or voter turnouts) is that it exploits official data from the US Census and is therefore characterized by a high degree of validity and consistency. It is additionally well-suited for the ensuing panel data analysis since this measure is available on an annual basis for the vast majority of US counties over the entire period of 1986-2014. In the cross-sectional analysis, we take the (log of the) associational employment density averaged over 2000-2010 as our measure of SocialCapital.
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Three Essays on Financial Economics.

Three Essays on Financial Economics.

This dissertation is composed of three research-based essays. The first two take Korea, an economy with high income risk, as an example to calibrate optimal portfolio choices. The first essay confirms that Korean households are subject to higher idiosyncratic income risk (compared with US households) and that the risk increases with age. Using the estimated income risk, the study finds that even though Korea has impressive income growth and average returns on stocks, a Korean household should be conservative in its investment in risky assets since high income and return uncertainty could have negative effects on consumption smoothing. The second essay discusses a similar issue but extends the context of international financial markets. It asks how Korean workers in different industries should allocate their wealth in the equities of selected countries to hedge against their wage risks. Without considering the foreign exchange risk, this study finds that workers in most industries have large hedging demands for French and Canadian stocks. These results may be due to the competitiveness or the complementarity between Korean industries and the two studied countries’ industries.
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Three Essays in Health Economics

Three Essays in Health Economics

Duration analysis easily accommodates time varying covariates, and so is ideal for this context where an individual’s current BMI plays a significant role in determining their BMI (and their obesity status) in the next period. Within the realm of standard duration analysis lays three separate and distinct parameterization strategies. The first, nonparametric analysis, does not require any assumption about the distribution of failure times (i.e. the baseline hazard), and does not include covariates. This modeling technique essentially lets the data speak for itself, and models the time to occurrence based solely on the passage of time. The second modeling approach is to utilize, semiparametric analysis, which, does not require an assumption about the baseline hazard, but parameterizes the effect of covariates. Finally, the third modeling approach, parametric estimation, requires an assumption about the shape of the baseline hazard, and includes covariates in the analysis. In general,
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Three Essays in Financial Economics

Three Essays in Financial Economics

We emphasize three contributions of this chapter. First, we contribute to the literature on the fi- nancing of innovation, by analyzing the effect of relaxing a key informational friction (i.e. the dis- closure paradox) on the ability of innovative firms to raise financing. In their excellent review, Kerr and Nanda (2015) note four key frictions to financing innovation. First, the payoffs to innovation are uniquely uncertain. Second, the returns to successful innovation are highly skewed, making it hard for potential financiers to accurately value projects and diversify. Third, with heightened information asymmetry, the inability to write state-contingent dynamic contracts is particularly acute for innovative firms. Finally, since the nature of knowledge and IP is non-rival, the disclo- sures required in the process of raising finance can subject innovators to risk from competitors. The focus of this chapter is the last friction, which has received considerably less attention. While the disclosure issue has also been incorporated into recent theoretical work on the optimal financ- ing of R&D intensive firms (Thakor and Lo, 2016), to our knowledge, ours is the first study to empirically study the disclosure problem directly in the context of innovative firms. Studying the disclosure friction in an empirical setting is difficult, as it is usually impossible to observe the counterfactual of what was not disclosed. However, as our setting relies on redaction of otherwise mandatory corporate filings, we circumvent this problem as we are able to retrieve the originally hidden information long after the fact. Using this setting, we argue that the ability to strategically withhold information on the value of an idea effectively mitigates this friction.
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Three Essays on Financial Economics

Three Essays on Financial Economics

Writing a dissertation is a journey, a journey that requires inspiration, perseverance, and deep commitment. For me, this journey could not have been completed without guidance and help from a large group of people. I wish to express my deepest gratitude to all of those who helped to make this journey a wonderful experience in my life and helped me contribute to the scholarly literature in economics.

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Three essays on economics of rehypothecation

Three essays on economics of rehypothecation

Figure 2.1 illustates how output evolves after different temporary shocks. I assume that the economy is initially at the steady state. When the size of the shock is smaller than ∆ = 35%,[r]

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Three Essays in Development Economics

Three Essays in Development Economics

The impact of Thailand’s universal coverage scheme on labor market was investigated by Manachotpong and Wagstaff (2012b). The study uses the Labor Force Survey quarterly from 1997-2000 and monthly from 2001-2005 and exploits the staggered implementation across provinces and time in months. The policy was implemented over a period of nine months in four waves. The study is able to identife the set of provinces in each implementation waves, which were about two to four months apart. They find an increase in employment, especially among married women, a decrease in formal-sector employment among married men, and an increase in informal-sector employment among married women. UC increased informal sector employment by 2% initially and 10% after three years. However, the effects on formal sector are relatively small. The evidence is consistent with the hypothesis that UCS reduces medical expenditure risk associated with informal sector and allows the male partners to switch out of formal employment and the female partners to switch into the informal employment. While the study provides convincing and solid evidence, the study does not discuss if the rollout process was random. For example, the municipalities where Segular Popular was first implemented were associated with high informality rate, high fraction of males, and high doctors per capita. However, after controlling for several determinants at municipality level, the informality rate becomes an insignificant indicator of the implementation timing. Thus, it is important to confirm if informality determined the timing of the UC’s rollout waves. There are a few contributions in addition to the study by Manachotpong and Wagstaff (2012b). First, this paper attempts to provide additional empirical evidence of the UC impacts on labor market, using different methodology and could yield different results. Second, this paper uses different survey datasets, specifically the Health and Welfare Survey (HWS), include information on chronic health conditions. These variables allow the study to analyze the heterogeneity of the policy impacts across different health demands since there is a reason to believe that subpopulations such as unhealthy individuals value health insurance significantly more than the rest of the population.
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Three Essays on the Economics of Crime

Three Essays on the Economics of Crime

Our contribution to the literature is three-fold. The primary contribution is that we are the first to consider the effect of housing vouchers on criminal outcomes for adult recipients using a randomized lottery. 2 We join an extensive crime literature produced by MTO, which, with the exception of Ludwig and Kling (2007) who studied the contagion effects of neighborhood crime on both adults and juveniles, primarily focuses on outcomes for youth whose families received vouchers. While most of these studies have found that MTO caused positive or neutral effects for female youth, their findings for male youth have been surprisingly negative (Clampet- Lundquist, Edin, Kling, and Duncan, 2011; Kling, Ludwig, and Katz, 2005; Sciandra, Sanbonmatsu, Duncan, Gennetian, Katz, Kessler, Kling, and Ludwig, 2013; Zuberi, 2012). The only exception is Katz, Kling, and Liebman (2001), who shows that male youth have less behavior problems after moving through MTO. The effect of Section 8 voucher receipt on adult criminal outcomes is yet to be documented although Jacob,
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