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Full-Text Articles in Other Economics

Summary: Business Innovation Creates Policy Disruption, Sarah E. Light Sep 2019

Summary: Business Innovation Creates Policy Disruption, Sarah E. Light

Wharton PPI B-School for Public Policy Seminar Summaries

New forms of business in the sharing economy, and new technologies like autonomous vehicles, have the potential to “disrupt” existing regulatory structures. This seminar examined the challenges facing regulators and legislators, who must respond so as to both (a) promote innovation and (b) protect the public interest.


Summary: Service Exports And The Us Trade Deficit, Joao F. Gomes Sep 2019

Summary: Service Exports And The Us Trade Deficit, Joao F. Gomes

Wharton PPI B-School for Public Policy Seminar Summaries

A trade deficit is defined by the amount by which a country’s imports exceeds the value of its exports. The US has consistently held a trade deficit since the 1970s; as of the end of 2016, the deficit had risen to $502 billion. This trade deficit has been a “political hot potato,” particularly with respect to China, on the assumption that a sustained deficit weakens the overall economy. But is that accurate? In this B-School for Public Policy Seminar Summary, Professor Gomes takes a closer look at the economics of boosting service exports as a means of rebalancing the ...


Identifying Cartels That Use The Illinois Brick Ruling As A Shield, Serguei Netessine Mar 2019

Identifying Cartels That Use The Illinois Brick Ruling As A Shield, Serguei Netessine

Wharton Public Policy Initiative Issue Briefs

“Identifying Cartels that Use the Illinois Brick Ruling as a Shield” looks at a landmark Supreme Court ruling, known as the Illinois Brick (IB) decision, which bars “indirect purchasers” from bringing antitrust suits against upstream product manufacturers. The research suggests the IB ruling not only reduced the costs associated with antitrust enforcement but has the potential to enable firms upstream in the supply chain to engage in collusion through the use of the wholesale price plus fixed fee structure (WPFF). WPFF allows manufacturers to pay a fixed fee to retailers, compensating them for stocking fewer, higher cost items than they ...


The Fintech Opportunity, Thomas Philippon Dec 2018

The Fintech Opportunity, Thomas Philippon

Wharton Pension Research Council Working Papers

This chapter assesses potential impacts of FinTech on the finance industry. First we show that financial services remain surprisingly expensive in the U.S., which helps explain the emergence of new entrants. We then argue that the current regulatory approach is subject to significant political economy and coordination costs, and therefore it is unlikely to deliver much structural change. FinTech can improve both financial stability and access to services, but this will require important changes in the focus of regulations.


The Missing Pieces Of The Economic Debate Over Immigration Reform, Exequiel Hernandez Aug 2018

The Missing Pieces Of The Economic Debate Over Immigration Reform, Exequiel Hernandez

Wharton Public Policy Initiative Issue Briefs

To the extent that immigration reform is discussed in terms of economics, the debate tends to focus exclusively on labor issues-specifically, how immigrants affect jobs and wages for native citizens. But to understand the economic effects of immigration, and thus develop sounder policies, policymakers need to consider how immigration affects all three core components of economic growth: not just labor, but capital and innovation too.

In the Penn Wharton Public Policy Brief, "The Missing Pieces of the Economic Debate Over Immigration Reform/whr.tn/2vmKbK8>," Professor Exequiel Hernandez discusses new research showing that immigration produces gains for the U.S ...


An Inquiry Into The Sources Of Funding For Qard Hasan Based Mfis: A Case Study Of Akhuwat, Adnan Zikri Jaafar Jan 2018

An Inquiry Into The Sources Of Funding For Qard Hasan Based Mfis: A Case Study Of Akhuwat, Adnan Zikri Jaafar

Wharton Research Scholars

In the last several years, there have been mixed views on the economic and social impacts of microfinance. To respond to some of the criticisms facing the microfinance industry, some microfinance practitioners are experimenting with new alternative lending models and management frameworks. One of these models that has recently gained increasing attention among economists and practitioners is qard hasan based microfinance. We take a close look at Akhuwat, a qard hasan based MFI offering interest-free microcredits to the poor, focusing on its sources of financing.


Integrating Zakat With Development Impact Bond (Dib): Assessing Possible Approaches To Maximizing Impact From Zakat Investment, Adnan Zikri Jaafar Jan 2017

Integrating Zakat With Development Impact Bond (Dib): Assessing Possible Approaches To Maximizing Impact From Zakat Investment, Adnan Zikri Jaafar

Social Impact Research Experience (SIRE)

Zakat is one of the five pillars of Islam and forms the foundation of Islamic economic system. The practice of zakat combines both the elements of ritual and revenue-raising. From zakat payers’ perspectives, paying zakat is a ritual act intended to purify their wealth. From a system of revenue-raising perspective, the main objective of zakat is to alleviate the hardships of zakat recipients, particularly the poor. We discuss the purposes of zakat and the historical development of zakat administration and management in Malaysia. We examine the current challenges and criticisms of zakat distribution and propose an integration between zakat and ...


The Economic Costs And Benefits Of Implementing The Clean Power Plan, Jose Miguel Abito, Christopher R. Knittel, Konstantinos Metaxoglou, Andre Trindade Nov 2016

The Economic Costs And Benefits Of Implementing The Clean Power Plan, Jose Miguel Abito, Christopher R. Knittel, Konstantinos Metaxoglou, Andre Trindade

Wharton Public Policy Initiative Issue Briefs

This brief looks at the costs of implementing the EPA’s Clean Power Plan. Specifically, it examines whether implementing the CPP on a state-by-state basis—that is, with each state meeting its own individual target for emissions reduction by 2030, rather than establishing regional targets—is economically efficient. The economic analysis uses data from electricity-generating firms participating in the Pennsylvania-New Jersey-Maryland (PJM) Interconnection to examine the relative economic efficiency of regional versus state-by-state implementation of the CPP. The research indicates that state-by-state implementation would yield the lowest electricity prices in 2030.


Roads And Trade In Colombia, Gilles Duranton Mar 2015

Roads And Trade In Colombia, Gilles Duranton

Real Estate Papers

I estimate the effect of major roads within and between cities on the level and composition of trade for Colombian cities. I confirm that road distance between cities is a major impediment to trade. In addition, major roads within cities have a large effect on a city׳s exports and imports with an elasticity of approximately 0.20 estimated with ols and up to 0.50 with iv. If anything, the effects are stronger for the value than for the weight of exports. I interpret these results as city roads shifting economic activity in cities towards the production of tradable ...


Dynamic Demand And Pricing Strategy In The E-Book Market, Hui Li Jan 2015

Dynamic Demand And Pricing Strategy In The E-Book Market, Hui Li

Publicly Accessible Penn Dissertations

E-reading has experienced rapid growth in the past few years and has raised new questions. On the supply side, retailers such as Amazon jointly sell e-readers and e-books. It remains unclear how they can coordinate the two products to conduct intertemporal price discrimination (IPD). On the demand side, it remains unclear how much of e-book sales come from cannibalizing print books and how much serve as market expansion to the book business.

I empirically address these questions using individual-level data from 2008 to 2012. I estimate a dynamic structural model of consumer e-reader adoption and subsequent book purchases, including quantity ...


Essays On The Role Of Knowledge In Recent Chinese Development, Jie Bai Jan 2015

Essays On The Role Of Knowledge In Recent Chinese Development, Jie Bai

Publicly Accessible Penn Dissertations

Chapter 1: Earlier studies have consistently found evidence for productivity externalities of FDI through backward linkages. However, most studies do not use direct measures of backward linkages, nor do they further investigate what exactly generates these productivity externalities. Using a unique dataset from the Chinese automotive industry, which provides direct supply linkage measures, this study shows that compared with suppliers that only sell to domestic brands, the total factor productivity premium is about 16.7 percent for auto parts suppliers that sell to at least one foreign brand. Employing difference-in-differences estimation, a causal link from backward linkages to the suppliers ...


Wildfire Risk And The Residential Housing Market: A Spatial Hedonic Analysis, A.J. Rossi Jan 2014

Wildfire Risk And The Residential Housing Market: A Spatial Hedonic Analysis, A.J. Rossi

CUREJ - College Undergraduate Research Electronic Journal

The goal of this paper is to analyze the effect of wildfire hazard risk on residential housing prices in Colorado Springs, Colorado. How does the risk of wildfire impact transaction values, and do buyers and sellers in the residential housing market accurately capitalize their perception of low probability events such as wildfires into the price of a house? Working within the hedonic property model framework, I conducted a spatial analysis of the Colorado Springs housing market. This paper employs regression analysis to better understand how the spatial and structural characteristics of a house, along with an objective wildfire risk rating ...


Cooperative Cashing? An Economic Analysis Of Document Duplication In Cooperati4ve Web Caching, Kartik Hosanagar, Yong Tan Jun 2012

Cooperative Cashing? An Economic Analysis Of Document Duplication In Cooperati4ve Web Caching, Kartik Hosanagar, Yong Tan

Operations, Information and Decisions Papers

Cooperative caching is a popular mechanism to allow an array of distributed caches to cooperate and serve each others’ Web requests. Controlling duplication of documents across cooperating caches is a challenging problem faced by cache managers. In this paper, we study the economics of document duplication in strategic and nonstrategic settings. We have three primary findings. First, we find that the optimum level of duplication at a cache is nondecreasing in intercache latency, cache size, and extent of request locality. Second, in situations in which cache peering spans organizations, we find that the interaction between caches is a game of ...


Price Discrimination In Service Industries, Anja Lambrecht, Katja Seim, Naufel Vilcassim, Amar Cheema, Yuxin Chen, Gregory S. Crawford, Kartik Hosanagar, Raghuram Iyengar, Oded Koenigsberg, Robin Lee, Eugenio J. Miravete, Ozge Sahin Jun 2012

Price Discrimination In Service Industries, Anja Lambrecht, Katja Seim, Naufel Vilcassim, Amar Cheema, Yuxin Chen, Gregory S. Crawford, Kartik Hosanagar, Raghuram Iyengar, Oded Koenigsberg, Robin Lee, Eugenio J. Miravete, Ozge Sahin

Operations, Information and Decisions Papers

This article outlines recent methods and applications directed at understanding the profit and consumer welfare implications of increasingly prevalent price discrimination strategies in the service sector. These industries are typically characterized by heterogeneity in consumers’ valuation and usage of the service, resale constraints, and a focus on price as the service’s key attribute. The article focuses on how firms use nonlinear pricing or bundling strategies to benefit from the heterogeneity in consumer demand. We describe the basic economic model commonly used in the literature to analyze such strategic choices and present recent methodological improvements to this benchmark. A discussion ...


Product Performance Based Business Models: A Service Based Perspective, Morris. A. Cohen Jan 2012

Product Performance Based Business Models: A Service Based Perspective, Morris. A. Cohen

Operations, Information and Decisions Papers

The migration to a service based economy has led many firms to emphasize the service component of their product offerings. This shift has led to the emergence of a business model based on value creation through product utilization, where products are sold as a service, (often referred to as "Servicization" or product-service systems) The Servicization business model can be applied to both tangible and intangible, information intensive, products and is based on aligning customer and supplier incentives.A shift to a service based model leads to a variety of managerial questions that concern performance metrics, customer supplier relationships and contracting ...


Essays In Online Advertising, Vibhanshu Abhishek Jan 2012

Essays In Online Advertising, Vibhanshu Abhishek

Publicly Accessible Penn Dissertations

The last several years have seen a dramatic increase in the amount of time and money consumers spend online. As a consequence, the Internet has become an important channel that firms can use to reach out and connect to consumers which has lead to the emergence of online advertising.Given the scale and novelty of online advertising, there is a growing need to understand how consumers respond to online ads and how firms should advertise using this medium. In my dissertation, I study different aspects of sponsored search and display ads which constitute the bulk of online advertising. In the ...


Is Imprecise Knowledge Better Than Conflicting Expertise? Evidence From Insurers’ Decisions In The United States, Laure Cabantous, Denis Hilton, Howard Kunreuther, Erwann Michel-Kerjan Jun 2011

Is Imprecise Knowledge Better Than Conflicting Expertise? Evidence From Insurers’ Decisions In The United States, Laure Cabantous, Denis Hilton, Howard Kunreuther, Erwann Michel-Kerjan

Operations, Information and Decisions Papers

This paper reports the results of the first experiment in the United States designed to distinguish between two sources of ambiguity: imprecise ambiguity (expert groups agree on a range of probability, but not on any point estimate) versus conflict ambiguity (each expert group provides a precise probability estimate which differs from one group to another). The specific context is whether risk professionals (here, insurers) behave differently under risk (when probability is well-specified) and different types of ambiguity in pricing catastrophic risks (floods and hurricanes) and non-catastrophic risks (house fires). The data show that insurers charge higher premiums when faced with ...


Essays In Retirement Security, Hungyee Fong May 2011

Essays In Retirement Security, Hungyee Fong

Publicly Accessible Penn Dissertations

The first chapter “Investment Patterns in Singapore’s Central Provident Fund System” investigates how plan participants in a national defined contribution system invest their pension accumulations. I find that only a small fraction of participants elects to invest in outside investment products like professionally-managed mutual funds. Simulation results using cost data from over 200 funds demonstrate that the minimum hurdle rate of return a fund must generate is about five percent a year. Accordingly, more policy attention can be devoted to lowering fund commission charges and rationalizing the investment menu offered to participants.

In the second chapter “Longevity Risk Management ...


First-Round Impacts Of The 2008 Chilean Pension System Reform, Jere R. Behrman, Maria Cecilia Calderon, Olivia Mitchell, Javiera Vasquez, David Bravo Feb 2011

First-Round Impacts Of The 2008 Chilean Pension System Reform, Jere R. Behrman, Maria Cecilia Calderon, Olivia Mitchell, Javiera Vasquez, David Bravo

PARC Working Paper Series

Chile’s innovative privatized pension system has been lauded as possible model for Social Security system overhauls in other countries, yet it has also been critiqued for not including a strong safety net for the uncovered sector. In response, the Bachelet government in 2008 implemented reforms to rectify this shortcoming. Here we offer the first systematic effort to directly evaluate the reform’s impacts, focusing on the new Basic Solidarity Pension for poor households with at least one person age 65+. Using the Social Protection Survey, we show that targeted poor households received about 2.4 percent more household annual ...


Is Tiger Woods Loss Averse? Persistent Bias In The Face Of Experience, Competition, And High Stakes, Devin G. Pope, Maurice E Schweitzer Feb 2011

Is Tiger Woods Loss Averse? Persistent Bias In The Face Of Experience, Competition, And High Stakes, Devin G. Pope, Maurice E Schweitzer

Operations, Information and Decisions Papers

Although experimental studies have documented systematic decision errors, many leading scholars believe that experience, competition, and large stakes will reliably extinguish biases. We test for the presence of a fundamental bias, loss aversion, in a high-stakes context: professional golfers' performance on the PGA Tour. Golf provides a natural setting to test for loss aversion because golfers are rewarded for the total number of strokes they take during a tournament, yet each individual hole has a salient reference point, par. We analyze over 2.5 million putts using precise laser measurements and find evidence that even the best golfers—including Tiger ...


Technical Note—Robust Newsvendor Competition Under Asymmetric Information, Houyuan Jiang, Serguei Netessine, Sergei Savin Jan 2011

Technical Note—Robust Newsvendor Competition Under Asymmetric Information, Houyuan Jiang, Serguei Netessine, Sergei Savin

Operations, Information and Decisions Papers

We generalize analysis of competition among newsvendors to a setting in which competitors possess asymmetric information about future demand realizations, and this information is limited to knowledge of the support of demand distribution. In such a setting, traditional expectation-based optimization criteria are not adequate, and therefore we focus on the alternative criterion used in the robust optimization literature: the absolute regret minimization. We show existence and derive closed-form expressions for the robust optimization Nash equilibrium solution for a game with an arbitrary number of players. This solution allows us to gain insight into the nature of robust asymmetric newsvendor competition ...


The Demand For Preventive Activities Among Older Adults And Its Association With Medicare Expenditures, Andrea Puig De La Parra Dec 2010

The Demand For Preventive Activities Among Older Adults And Its Association With Medicare Expenditures, Andrea Puig De La Parra

Publicly Accessible Penn Dissertations

In recent years, certain health policy makers have emphasized the need for an increase in preventive services interventions as means to improve health outcomes and cut health care costs. Oftentimes, the debate around the purported benefits of prevention centers on the need to cut the costs of highly costly systems such as Medicare. However, little is known about the factors that might actually influence the demand for preventive services among older adults, neither do we know much about how the dynamic for the demand for prevention plays out among older adults within the context of a household. Moreover, there is ...


Grameen Microfinance: An Evaluation Of The Successes And Limitations Of The Grameen Bank, Ana Maria Moreno Aug 2010

Grameen Microfinance: An Evaluation Of The Successes And Limitations Of The Grameen Bank, Ana Maria Moreno

Honors Theses (PPE)

The Grameen Bank has attracted worldwide attention by providing small loans to poor people across rural villages in Bangladesh. In 2006 the Nobel Committee awarded the Grameen Bank and its founder Professor Mohammad Yunus the Nobel Peace Prize for their, “efforts to create economic and social development from below.”[1] The Nobel committee asserted that microfinance is “an important liberating force and an ever more important instrument in the struggle against poverty.”[2] Since then, a global microfinance revolution has emerged and the Grameen Bank has been at the vanguard of this movement, showing the potential to alleviate poverty by ...


Fostering Ipv6 Migration Through Network Quality Differentials, Guerin Roch, Kartik Hosanagar Jul 2010

Fostering Ipv6 Migration Through Network Quality Differentials, Guerin Roch, Kartik Hosanagar

Operations, Information and Decisions Papers

Although IPv6 has been the next generation Internet protocol for nearly 15 years, new evidences indicate that transitioning from IPv4 to IPv6 is about to become a more pressing issue. This paper attempts to quantify if and how such a transition may unfold. The focus is on "connectivity quality," e.g., as measured by users' experience when accessing content, as a possible incentive (or disincentive) for migrating to IPv6, and on "translation costs" (between IPv6 and IPv4) that Internet Service Providers will incur during this transition. The paper develops a simple model that captures some of the underlying interactions, and ...


Fostering Ipv6 Migration Through Network Quality Differentials, Roch A. Guérin, Kartik Hosanagar Jun 2010

Fostering Ipv6 Migration Through Network Quality Differentials, Roch A. Guérin, Kartik Hosanagar

Departmental Papers (ESE)

Although IPv6 has been the next generation Internet protocol for nearly 15 years, new evidences indicate that transitioning from IPv4 to IPv6 is about to become a more pressing issue. This paper attempts to quantify if and how such a transition may unfold. The focus is on ``connectivity quality,'' e.g., as measured by users' experience when accessing content, as a possible incentive (or disincentive) for migrating to IPv6, and on ``translation costs'' (between IPv6 and IPv4) that Internet Service Providers will incur during this transition. The paper develops a simple model that captures some of the underlying interactions, and ...


On Educational Outcomes In An Urban School District, Michael A. Gottfried May 2010

On Educational Outcomes In An Urban School District, Michael A. Gottfried

Publicly Accessible Penn Dissertations

Urban school districts face an enormous challenge. They are confronted with high levels of poverty and minority students who at high-risk for educational failure. To compound this, financial resources are lacking in improving these dire conditions. Thus, in a situation where increased budgetary support is no longer accessible, one question remains: What will make a difference?

Chapter 1 suggests a first strategy. If district administrators or school principals could shift classroom composition to increase student achievement, then perhaps this managerial approach could improve urban education under extremely strict financial constraints. Using the framework of the education production function and two ...


Federal Policy And The Rise In Disability Enrollment: Evidence For The Veterans Affairs’ Disability Compensation Program, Mark Duggan May 2010

Federal Policy And The Rise In Disability Enrollment: Evidence For The Veterans Affairs’ Disability Compensation Program, Mark Duggan

Health Care Management Papers

The U.S. Department of Veterans Affairs compensates 13 percent of the nation’s military veterans for service‐related disabilities through the Disability Compensation (DC) program. In 2001, a legislative change made it easier for Vietnam veterans to receive benefits for diabetes associated with military service. In this paper, we investigate this policy’s effect on DC enrollment and expenditures as well as the behavioral response of potential beneficiaries. Our findings demonstrate that the policy increased DC enrollment by 6 percentage points among Vietnam veterans and that an additional 1.7 percent experienced an increase in their DC benefits, which ...


Pleasurable Surprises: A Cross-Cultural Study Of Consumer Responses To Unexpected Incentives, Ana Valenzuela, Barbara Mellers, Judi Strebel Feb 2010

Pleasurable Surprises: A Cross-Cultural Study Of Consumer Responses To Unexpected Incentives, Ana Valenzuela, Barbara Mellers, Judi Strebel

Marketing Papers

Consumer reactions to a surprising event are generally stronger than those to an identical but unexpected event. But the experience of surprise differs across cultures. In this article, we examine differences between East Asian and Western emotional reactions to unexpected incentives. When given an unexpected gift, East Asians report less surprise and less pleasure than Westerners. East Asians’ dampened pleasure is explained by their motivation to maintain balance and emotional control, which leads to a reappraisal of perceived likelihood. However, if the unexpected gift is attributed to good luck, which is a desirable form of the unexpected, East Asians experience ...


Spillover Effects Of The Uninsured, Stacey Mcmorrow Dec 2009

Spillover Effects Of The Uninsured, Stacey Mcmorrow

Publicly Accessible Penn Dissertations

This study seeks to determine the effects of the local uninsurance rate on the quality of care delivered to Medicare beneficiaries. While a great deal of research exists on the negative consequences of uninsurance for the uninsured, few studies have attempted to address the spillover effects of this population to the health care system in a local market. Theory suggests that a high local uninsurance rate in a market has the potential to cause a decrease in the shared quality of care provided to Medicare beneficiaries. It also suggests however that a higher uninsurance rate may result in increases in ...


Peer-Induced Fairness In Games, Teck-Hua Ho, Xuanming Su Dec 2009

Peer-Induced Fairness In Games, Teck-Hua Ho, Xuanming Su

Operations, Information and Decisions Papers

People exhibit peer-induced fairness concerns when they look to their peers as a reference to evaluate their endowments. We analyze two independent ultimatum games played sequentially by a leader and two followers. With peer-induced fairness, the second follower is averse to receiving less than the first follower. Using laboratory experimental data, we estimate that peer-induced fairness between followers is two times stronger than distributional fairness between leader and follower. Allowing for heterogeneity, we find that 50 percent of subjects are fairness-minded. We discuss how peer-induced fairness might limit price discrimination, account for low variability in CEO compensation, and explain pattern ...