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- International Double Degree Programs as Accelerators for Internationalization: Lessons from the Trans-Atlantic Business School Alliance
International Double Degree Programs as Accelerators for Internationalization: Lessons from the Trans-Atlantic Business School Alliance
PUBLICATION & DATE:
Journal of Teaching in International Business; 2021AUTHOR(S):
Jeffrey W. Steagall, Peter Falk, Andres Gallo & Thomas W. PorterLINK(S):
https://doi.org/10.1080/08975930.2021.1906378ABSTRACT:
The global nature of the modern business world has expanded the set of skills and attitudes necessary for success, even among new bachelor degree graduates. Although US business schools have primarily integrated international concepts through their curricula, students who stay at their home institutions for their entire degree programs do not live and experience the global business environment to the extent necessary for twenty-firstcentury careers. Short-term, semester- or year-abroad programs help to bridge this gap. However, carefully constructed undergraduate double degree programs can provide students with much richer experiences. This article provides a model for creating international undergraduate double degree programs in business, highlighting the main challenges and offering successful proven solutions employed by a group of American and European business schools that other institutions can adapt to accelerate internationalization and deepen students’ international experiences in American business schools. - Effects of Superiors' Compensation Structures on Psychophysiological Responses and Real Earnings Management Decisions of Subordinate Managers
Effects of Superiors' Compensation Structures on Psychophysiological Responses and Real Earnings Management Decisions of Subordinate Managers
PUBLICATION & DATE:
Management Accounting Research; 2020AUTHOR(S):
Alisa G. Brink, Andrea Gouldman, Jacob M. Rose, and Kristian RotaruLINK(S):
https://www.sciencedirect.com/science/article/abs/pii/ S1044500520300159 ABSTRACT:
This study examines the effects of executive compensation structures and research and development (R&D) reporting methods on subordinate managers’ psychophysiological responses and decisions to engage in real earnings management. Results from one 2 × 2 between-participants experiment indicate that when R&D expenditures are capitalized, relative to expensed, managers are less willing to abandon a failing project in favor of a superior project. Importantly, executive compensation structures can effectively reduce this form of real earnings management by subordinates. When executives are paid with restricted stock, relative to when executives are compensated with unrestricted stock, their subordinate managers are less willing to continue a failing R&D project when R&D expenses are capitalized. A second experiment that employs pupillometry, eye tracking and facial analysis in order to capture participants’ psychophysiological responses to incentive structures reveals that subordinates exhibit increased arousal and more intense negative emotions when they encounter supervisor pay structures that conflict with their personal incentives. Increases in negative emotion lead to reductions in earnings management behavior. The results indicate that compensation structures for superiors, such as executives, can significantly mitigate subordinate managers’ tendency to engage in real earnings management. In addition, from a methodological perspective, the second experiment indicates that hypothetical incentives are internalized by experiment participants, and hypothetical incentives lead to predictable psychophysiological responses and related decisions. - Pollution Regulation of Competitive Markets
Pollution Regulation
of Competitive MarketsPUBLICATION & DATE:
Management Science, Volume 66, Issue 9, September 2020AUTHOR(S):
Krishnan S. Anand & François C. Giraud-CarrierLINK(S):
https://doi.org/10.1287/mnsc.2019.3413 ABSTRACT:
We develop a model of oligopolistic firms that produce partially differentiated products and generate pollution as a byproduct. We analyze and compare two types of pollution regulation: Cap-and-Trade and Taxes. Firms can respond to regulation by any combination of pollution abatement, output reduction, emissions trading (under Cap-and-Trade), or payment of pollution taxes (under Taxes). We prove that well-chosen regulation can, besides reducing pollution, actually improve firms’ profits relative to laissez-faire (unregulated markets), and simultaneously improve consumer surplus and welfare. Thus, regulation Pareto-dominates laissez-faire under a wide range of plausible conditions. These results are driven by an unintended consequence of pollution regulation: Competing firms can use the regulation to tacitly (and credibly) collude to reduce production and improve their profits. We show that the degree of competition plays a critical role in determining the economic consequences of pollution regulation. Our results suggest that the regulator’s primary consideration should be the impact of regulation on consumers rather than producers. - Exploiting the Charitable Contribution Deduction's Hypersalience
Exploiting the Charitable Contribution Deduction's Hypersalience
PUBLICATION & DATE:
2020 Utah Law Review 419 (2020)AUTHOR(S):
Eric S. SmithLINK(S):
https://dc.law.utah.edu/ulr/
vol2020/iss2/3/ ABSTRACT:
Hypersalience describes the cognitive error that occurs when taxpayers are highly aware of a tax provision generally, but fail to correctly perceive its associated limitations. The charitable contribution deduction provides a strong example of hypersalience as taxpayers have general awareness that tax benefit follows charitable giving, but often fail to understand the deduction’s limits—most notably the standard deduction’s preclusion to any direct tax benefit for charitable giving. As cognitive error drives inaccurate perception of the tax law, the question arises: what, if anything, should the government do to correct taxpayer understanding?This paper considers this question from two perspectives. The first is market or economic salience, a measure of salience based on taxpayer reaction towards the market. The case is made here for exploitation of hypersalience—an argument that endorses the status quo. Effective curtailment of hypersalience could bear with it constitutionally worrisome burdens on free speech and an overregulated, less viable charities sector. Benefits of leaving hypersalience intact include a more vibrant charities sector. In some cases, giving induced by hypersalience could result in zero utility loss.
The second measure, political salience, considers taxpayer reaction as expressed through the political process. This paper argues that exploitation of hypersalience is justifiable in that taxpayers could interpret additional regulation to correct hypersalience as a tax increase (or at least as the denial of perceived tax benefit). Given the taxpaying electorate’s strong aversion to taxes, in an era of political polarization and massive deficits, Congress can ill afford to expend constrained political capital unwinding taxpayer cognitive bias with no increase in revenues.
- Using Deliberate Practice to Transform Learning Culture: Helping Students Put Real Skills in their OSCM Toolbox
Using Deliberate Practice to Transform Learning Culture: Helping Students Put Real Skills in their OSCM Toolbox
PUBLICATION & DATE:
Decision Sciences Journal of Innovative Education, Volume 18, Issue 2, April 2020AUTHOR(S):
Sanley E. Fawcett, François C. Giraud-Carrier & Amydee M. FawcettLINK(S):
https://doi.org/10.1111/dsji.12204 ABSTRACT:
Students select majors like supply chain management largely because they want to obtain a high-paying job at graduation. They expect that after 4 or 5 years of studies, they will be ready to achieve early-career success. Data, however, reveal that students often are not prepared. Recruiters are noticing. In various studies, employers say that a large majority of graduates are not workplace ready. We argue that this readiness gap results from a mismatch between academia's focus on knowledge transfer and employers’ expectations that new hires possess real competencies.To remedy this readiness gap, we redesigned our curriculum to adopt a deliberate practice pedagogy. What have we learned? Deliberate practice is hard work. Both faculty and students must learn and practice new behaviors. The good news: deliberate practice helps students acquire real expertise that recruiters value. This article makes the case for deliberate practice and outlines a proven path to transformation.
- International Law and Limits on the Sovereignty of African States
International Law and Limits on the Sovereignty of African States
PUBLICATION & DATE:
Florida Journal of International Law, Vol. 30, No. 2 (August 2018): 43–110 (67 pages)AUTHOR(S):
John Mukum MbakuABSTRACT:
Since the end of the Cold War, there has been an acceleration in globalization, a process that has resulted in significant increases in interaction between peoples and nations. As a consequence, it has become increasingly difficult for national governments to have full control over what happens within their territorial boundaries. In fact, globalization has made it quite difficult for national governments to exercise full control over their domestic economies and political processes. An important consequence of globalization is the internationalization of constitutional law. This process has resulted in the virtual disappearance from almost all countries of the concept of complete and absolute sovereignty. In fact, many States, including those in Africa, now enjoy only an attenuated form of sovereignty, one that is characterized by the failure of States to have complete control over the determination of the content of their national constitutional law. Thus, in constitutional design and interpretation, States must take cognizance of international law, particularly international human rights instruments. While this internationalization of constitutional law can be viewed as an infringement on the sovereign right of African countries to determine the content of their national laws, this article argues that such interference, either through direct incorporation of provisions of international human rights instruments into national constitutions or reliance upon international and comparative sources as an interpretive device, is critical and important for the promotion of good governance and the recognition and protection of human rights in the continent. - Citizenship Laws and Political and Economic Participation in Africa
Citizenship Laws and Political and Economic Participation in Africa
PUBLICATION & DATE:
North Carolina Journal of International Law, Vol. 43, No. 3 (Summer 2018): 110–203 (93 pages)AUTHOR(S):
John Mukum MbakuLINK(S):
https://heinonline.org/HOL/LandingPage?handle=hein.journals/ncjint43&div=20&id=&page=ABSTRACT:
Since the emergence of independent countries in Africa in the 1950s and 1960s, presidents of many of these countries have manipulated laws regulating citizenship to their economic and political advantage. Many of today's African countries continue to struggle with the concept of citizenship. In addition to the fact that political elites in these countries can easily manipulate their constitutions to punish their opponents and critics and gain political advantage, citizens are unable to fully exercise their citizenship rights domestically. This paper suggests a total reconstruction of the state through inclusive and participatory constitution making to provide a governing process that adequately constrains the state and hence, prevents political elites from acting with impunity, as well as enhances internal exit and the portability of citizenship - Rule of Law, State Capture, and Human Development in Africa
Rule of Law, State Capture, and Human Development in Africa
PUBLICATION & DATE:
American University International Law Review, Vol. 33, No. 4 (2018):771–836 (65 pages)AUTHOR(S):
John Mukum MbakuLINK(S):
https://core.ac.uk/download/pdf/287224485.pdfABSTRACT:
State capture, which is an extreme form of corruption, has become a major threat to governance and economic development in many African countries. The threat that state capture poses to governance in Africa is illustrated by two case studies--Democratic Republic of Congo and the Republic of South Africa. In addition, the paper explores the relationship between state capture and the rule of law and how the latter can significantly affect the latter, as well as state capture's impact on human development. The paper suggests that where the governing process is undergirded by a separation of powers with effective checks and balances, state capture is less likely and even if private business interests attempt to capture the state, the country's robust institutions are likely to frustrate that effort. - International Law and the Anglophone Problem in Cameroon: Federalism, Secession or the Status Quo?
International Law and the Anglophone Problem in Cameroon: Federalism, Secession or the Status Quo?
PUBLICATION & DATE:
Suffolk Transnational Law Review, Vol. 42, No. 1 (Winter 2019): 1–126 (126 pages)AUTHOR(S):
John Mukum MbakuLINK(S):
Link to publicationABSTRACT:
The paper examines the present constitutional crisis in the Republic of Cameroon, its origins and how it has affected the country's Anglophone Regions. In doing so, the paper takes a look at the international concept of self-determination and identifies the options available to the country as it seeks to deal with the present crisis. It concludes that based on their treatment at the hands of the Francophone-dominated central government, the Anglophones can make a credible case for remedial secession under international law. - Corruption and Democratic Institutions in Africa
Corruption and Democratic Institutions in Africa
PUBLICATION & DATE:
Transnational Law & Contemporary Problems (U of Iowa Law School), Vol. 27, No. 2 (Summer 2018): 310–373 (63 pages)AUTHOR(S):
John Mukum MbakuLINK(S):
Link to publication
ABSTRACT:
Although nondemocratic regimes are especially susceptible to corruption, scholars have determined that many democratic systems have often failed to deal effectively with corruption. In addition, as many countries transition to democracy, corruption levels may initially rise. However, as democracy is deepened and institutionalized, and these countries provide themselves with more effective democratic institutions, the ability of the government to deal more effectively with corruption improves significantly. Nevertheless, parchment prohibitions alone are not enough to guarantee effective control of corruption. Sufficiency requires that the country have a balanced governing process, one undergirded by the separation of powers, with effective checks and balances. Hence, an African country that is genuinely interested in dealing fully with corruption must provide itself with a governing process that is undergirded by the separation of powers, with effective checks and balances. - Entrenching Constitutionalism in African Countries: Lessons from America’s Founding Fathers
Entrenching Constitutionalism in African Countries: Lessons from America’s Founding Fathers
PUBLICATION & DATE:
Texas International Law Journal, Vol. 55, No. 1 (Fall 2019): 89–157 (68 pages)AUTHOR(S):
John Mukum MbakuLINK(S):
Link to publication
ABSTRACT:
As a result of the opportunistic and reluctant nature of the decolonization process, most of the new African countries failed to fully and effectively transform the critical domains (i.e., the political, administrative, and judicial foundations of the state to bring about more effective institutional arrangements, particularly those capable of adequately guarding the government and preventing or, at the very least, minimizing impunity. As a consequence, governance in many African countries has been pervaded by bureaucratic corruption, failure to effectively manage diversity, extreme poverty, and significantly high levels of ethnic-induced violence, most of it attributable to majoritarian tyranny. An examination of the republican model of government, as well as the experiences of the United States with constitutionalism and constitutional government, reveals lessons that African countries can use to improve their governing processes. The most important lesson that African countries can learn from the Founders of the American Republic and their republican system is that African countries can deal a lot of their governance and development problems by adopting a governing process undergirded by federalism, and separation of powers, with effective checks and balances. - Constitutional Coups as a Threat to Democratic Governance in Africa
Constitutional Coups as a Threat to Democratic Governance in Africa
PUBLICATION & DATE:
International Comparative, Policy & Ethics Law Review, Vol. 2, No. 1 (Fall 2018): 77–182 (105 pages)AUTHOR(S):
John Mukum MbakuLINK(S):
Link to publication
ABSTRACT:
In the last several years, the constitutional coup has emerged as a major form of unconstitutional change of government in Africa. Unfortunately, the African Union, the continental organization that seeks to promote peace and security and stability, as well as democracy, in the continent, has not yet made any effort to recognize and deal with this emerging phenomenon, in which heads of state revise their constitutions to extend their mandates. It is determined that constitutional design is the key to dealing effectively with constitutional coups. Each African country must provide itself with constitution amendment procedures that cannot be easily manipulated by opportunistic executives who are seeking ways to unconstitutionally remain in power. - International Law and the Exploitation of Children in Africa
International Law and the Exploitation of Children in Africa
PUBLICATION & DATE:
Hastings International & Comparative Law Review, Vol. 42, No. 2 (Summer 2019): 287–452 (167 pages).AUTHOR(S):
John Mukum MbakuLINK(S):
Link to publication
ABSTRACT:
The abuse and exploitation of children is a major public policy priority for all African countries. Children in Africa are exploited and abused by both domestic and external or foreign actors and these include, but are not limited to, family members and community leaders, foreign tourists who seek the continent’s children for sex, and international criminal gangs who are engaged in the production of child pornography, sex trafficking and the illegal harvesting and sale of organs. With respect to the use of African children in military conflicts, exploiters include state- and non-state actors. In several African countries, religious and customary practices account for a significant amount of the abuse that children, particularly girl children, are subjected to. In addition, many children are also subjected to servitude labor in cocoa plantations, mines, traditional religious shrines, and the homes of rich urban dwellers. International actors involved in the abuse and exploitation of African children also include UN peacekeepers and aid workers belonging to various non-governmental organizations. Effectively combatting the abuse and exploitation of African children must begin with institutional reforms within each African country to provide democratic institutions, which can adequately constrain the State and prevent those who serve in it (i.e., civil servants and political elites) from engaging in activities (e.g., corruption and failure to enforce the laws) that contribute to the exploitation of children. With a governing process undergirded by the rule of law, each country can then develop the capacity to bring all perpetrators of child abuse and exploitation to justice. Although making certain that all African countries have legal and judicial systems that are fully capable of effectively prosecuting all individuals and organizations that commit crimes against children must be the first line of the fight against child abuse and exploitation in Africa, it is important to acknowledge the important role that international law can play in the protection of the rights of children in Africa. - International Law and Child Marriage in Africa
International Law and Child Marriage in Africa
PUBLICATION & DATE:
Indonesia Journal of International & Comparative Law, Vol. 7, No. 2 (April 2020): 103–244 (141 pages).AUTHOR(S):
John Mukum MbakuLINK(S):
Link to publication
ABSTRACT:
In recent years, civil society organizations in many countries around the world, as well as international organizations, such as UNICEF, have redoubled their efforts to end child marriage, prevent girls from marrying too young, and provide support for those girls that were already married as children. Child marriage is generally understood as a marriage or union—whether formal or informal—in which at least one of the parties is under 18 years of age. International organizations, such as the United Nations, have recognized child marriage as a violation of the human rights of the children involved and a practice that disproportionately affects women and girls globally. Human rights, including those of girl-children, are the purview of international law. Nevertheless, since the international community does not have a global government that can enact laws against child marriage and make certain that these laws are enforced, legal scholars have argued that the most important mechanism for the enforcement of international law, including international human rights law, is for each ratifying government to domesticate the treaties that they sign and ratify and hence, create rights that are justiciable in domestic courts. Where countries have not yet internationalized their national constitutional law, courts can use their interpretive power to bring each country’s law into conformity with the provisions of international human rights instruments. An examination of two cases dealing with child marriage, one from United Republic of Tanzania and the other from the Republic of Zimbabwe, shows that courts in these African countries are gradually developing a jurisprudence that effectively addresses the problem of child marriage and its impact on the rights of children. - International Law and the Struggle Against Government Impunity in Africa
International Law and the Struggle Against Government Impunity in Africa
PUBLICATION & DATE:
Hastings International & Comparative Law Review, Vol. 42, No. 1 (Winter 2019): 73–244 (131 pages).AUTHOR(S):
John Mukum MbakuLINK(S):
Link to publicationABSTRACT:
In recent years, impunity has become pervasive throughout most African countries. In some African countries, impunity is due to the inability of national governments to bring perpetrators of human rights violations to account for their crimes. In others, impunity arises from the unwillingness of government to utilize the existing legal system to bring criminals, whether they are state- or non-state actors, to justice. Effectively combatting impunity in Africa must begin with the reconstruction of African States to provide democratic institutions, which are capable of adequately constraining the government and preventing civil servants and political elites from acting with impunity; and which make possible the bringing of all perpetrators of human rights violations, whether they are members of the government or not, to account for their crimes. While making certain that all African countries have legal and judicial systems that are capable of bringing to justice all individuals who commit international crimes in their jurisdictions is the first line of the fight against impunity in Africa, it is important to acknowledge the important role that international law can play in the anti-impunity effort. The international criminal justice system, as embodied in the International Criminal Court, is seen as an important and critical tool to fight threats to international peace and security. In addition, international programs, such as the Responsibility to Protect (R2P) and the Set of Principles for the Protection and Promotion of Human Rights Through Action to Combat Impunity, add to the repertoire of tools available to those engaged in the fight against impunity in the African countries. - Threats to the Rule of Law in Africa
Threats to the Rule of Law in Africa
PUBLICATION & DATE:
Georgia Journal of International & Comparative Law, Vol. 48, No. 2 (2020): 293–385 (93 pages).AUTHOR(S):
John Mukum MbakuLINK(S):
Link to publication
ABSTRACT:
It is now generally accepted that the rule of law is a sine qua non for economic development in the African countries. Fidelity to the rule of law can significantly enhance the peaceful coexistence of each country’s diverse population groups and create an institutional environment that is conducive to entrepreneurship and the creation of the wealth that is needed to fight poverty and advance human development. Unfortunately, throughout the continent, many countries have not been able to provide themselves with effective rule-of-law systems. This is due primarily to the failure of these countries to provide themselves with governing processes that can effectively minimize various threats to the rule of law, which include, for example, government impunity, unconstitutional change of government, lack of judicial independence, and the failure of many African countries to domesticate the provisions of international human rights instruments. The key to eliminating these threats to the rule of law and enhancing the ability of each country to preserve and safeguard individual liberties under a rule-of-law regime is democratic constitution making to provide a governing process undergirded by separation of powers with effective checks and balances, which include especially an independent judiciary and a bicameral legislature, with each chamber empowered to exercise an absolute veto over legislation enacted by the other, as well as an independent and competent executive. Given the critical role played by civil society and its organizations (e.g., the free and independent press) in checking or guarding the government and the exercise of the power granted it by the people through the constitution, the governing process must guarantee openness and transparency in government communication. Through such a process, civil society can freely access the information that it needs to perform its role in governance. - Constitutionalism and Africa’s Agenda 2063: How to Build “The Africa We Want”
Constitutionalism and Africa’s Agenda 2063: How to Build “The Africa We Want”
PUBLICATION & DATE:
Brooklyn Journal of International Law, Vol. 45, No. 2 (2020): 537–678 (143 pages).AUTHOR(S):
John Mukum MbakuLINK(S):
Link to publicationABSTRACT:
In 2013, Africans, under the leadership of the African Union, set out to develop a “strategic framework for the socio-economic transformation of the continent over the next 50 years.” This new development program was expected to “accelerate the implementation of past and existing continental initiatives for growth and sustainable development.” This transformative program, called Agenda 2063: The Africa We Want, was officially adopted by the Assembly of Heads of State and Government of the African Union in Addis Ababa, Ethiopia in January 2015. The heart of this ambitious development initiative are seven aspirations, which Africans hope to achieve by the year 2063. Unfortunately, given the fact that most African countries currently have governing processes that are not undergirded by adherence or fidelity to the rule of law, they would not be able to contribute positively to the fulfilment of these aspirations. Consequently, robust institutional reforms must be the first step toward the implementation of Agenda 2063. Each African country must provide itself with a governing process that enhances the practice of constitutional government and constitutionalism—the latter should provide the necessary enabling environment for the achievement of the goals elaborated in Agenda 2063, including, especially peaceful coexistence of subcultures and the creation of the wealth that is needed to alleviate poverty and significantly increase the people’s quality of life. - International Law, African Customary Law, and the Protection of the Rights of Children
International Law, African Customary Law, and the Protection of the Rights of Children
PUBLICATION & DATE:
Michigan State International Law Review, Vol. 28, No. 3 (2020): 535–690 (156 pages)AUTHOR(S):
John Mukum MbakuLINK(S):
Link to publication
ABSTRACT:
During the last several decades, the global community has become concerned about the violation of the rights of children. Of particular interest to the international human rights community is the protection of children from traditional, customary, religious, and other practices (e.g., female genital mutilation, breast ironing, servitude in fetish shrines, forced service by children as “child soldiers,” the use of children to produce pornography or in prostitution and sex tourism, and the sale of children in the illegal organ transplantation market) that harm children. While several international human rights instruments have outlawed many of the practices that are harmful to children, the provisions in these international human rights instruments have not created rights that are justiciable in the domestic courts of the various countries in Africa. Hence, the way forward for the protection of the rights of children in Africa calls for each country to internationalize its national constitution and create rights that are directly justiciable in domestic or municipal courts. Such a process must, at the minimum, bring both national constitutional law and customary law into line with the provisions of international human rights instruments. In addition, each country must provide itself with effective independent judiciaries so that the latter can serve as a legal mechanism to strike down laws and customs that are harmful to children and/or violate constitutional protections. - The Effect of Oil Supply Shocks on US Economic Activity: What Have We Learned?
The Effect of Oil Supply Shocks on US Economic Activity: What Have We Learned?
PUBLICATION & DATE:
Journal of Applied Econometrics, Volume 35, Issue 2, March 2020AUTHOR(S):
Ana Maria Herrera and Sandeep Kumar RangarajuLINK(S):
Journal of Applied Econometrics, Volume 35, Issue 2, March 2020ABSTRACT:
Estimated responses of real oil prices and US gross domestic product (GDP) to oil supply disruptions vary widely. We show that most variation is attributable to differences in identification assumptions and in the model specification. Models that allow for a large short-run price elasticity of oil supply imply a larger response of oil prices and a larger, longer lived contraction in US real GDP. We find that, if we condition on a range of supply elasticity values supported by microeconomic estimates, the differences in the oil price responses diminishes. We also examine the role of lag length, of using pre-1973 data, alternative measures of real economic activity and using the median response function instead of the modal structural model. - The quantitative effects of tax foresight: Not all states are equal
The quantitative effects of tax foresight: Not all states are equal
PUBLICATION & DATE:
Journal of Economic Dynamics and Control, Volume 107, October 2019, 103726AUTHOR(S):
Ana Maria Herrera and Sandeep Kumar RangarajuLINK(S):
Link to publication
ABSTRACT:
This paper explores the effect of federal tax news on state economic activity. We estimate a factor-augmented vector autoregression (FAVAR) model, which allows us to consider the possibility that unobserved factors – such as credit and fiscal conditions – might be relevant for modeling the dynamic response of aggregate and state-level economic activity. We identify tax foresight as a shock to the implicit tax rate, measured by the yield spread between the one-year tax-exempt municipal bond and the one-year taxable Treasury bond. Our results suggest that an increase in the implicit tax rate raises national output over much of the anticipation period. In addition, anticipated tax increases give rise to expansions in state personal income and employment. We find that the variation in the responsiveness of economic activity across states is mostly explained by differences in industrial composition and income distribution, as well as by some demographic characteristics such as median income and education. Finally, using a proxy for exogenous changes in federal tax revenues, we investigate the dynamics of state-level personal income and employment. Our results point to considerable heterogeneity in the response across U.S. states. Moreover, they reveal that the long-run multiplier for an anticipated increase in tax revenues is about a tenth of the short-run multiplier for an unanticipated increase in taxes. - Interpersonal Discounting
Interpersonal Discounting
PUBLICATION & DATE:
Journal of Risk and Uncertainty 58 (2019): 17-42AUTHOR(S):
R. Rong, T. C. Grijalva, J. Lusk, W. D. ShawLINK(S):
Link to publication
ABSTRACT:
Many discounting choices affect both the decision maker and at least one other person. The interpersonal nature of these choices is not well explored because the current empirical literature primarily focuses on estimating individual discount rates. We design a laboratory experiment to elicit interpersonal discount rates where individuals consider present versus future consumption tradeoffs for cases that involve both the self and others. By allowing for possible presence of others’ welfare in one’s utility function, our estimation results show that interpersonal discount rates are significantly different from traditional individual discount rates, particularly in situations when an individual may trade off his/her own future payment with the current payoff for others. We find support that the distinct interpersonal discount rate reflects a temporal form of other-regarding preferences. - Household Decisions and Other-Regarding Preferences
Household Decisions and Other-Regarding Preferences
PUBLICATION & DATE:
Games 9(3) (2018)AUTHOR(S):
M. K. Gnagey, T. C. Grijalva, R. RongLINK(S):
Link to publication
ABSTRACT:
Using a laboratory experiment, we collected data on dictator giving among student strangers and married couples in a suburban area in the United States. Confirming common belief and prior empirical evidence, we find that giving among spouses is greater than giving among anonymous students. We further investigated factors associated with spousal giving which may provide insight for the development of future theories, or into explaining other-regarding preferences. Our data shows that giving is positively associated with who manages household money and controls household income. This result is robust after controlling for each spouse’s personal income and using various econometric specifications. The results suggest that spousal giving may be due to household economic roles in addition to other-regarding preferences. - The Less you Discount, The More it Shows You Really Care: Interpersonal Discounting in Households.
The Less you Discount, The More it Shows You Really Care: Interpersonal Discounting in Households.
PUBLICATION & DATE:
Journal of Economic Behavior and Organization 154 (2018): 1-23AUTHOR(S):
R. Rong, M. K. Gnagey, T. C. GrijalvaLINK(S):
Link to publicationABSTRACT:
Household members make monetary tradeoffs across time. Classical economics treats these decisions as if one rational individual makes them. This assumption masks important other regarding concerns between spouses. We designed an artefactual field experiment and collected data from 94 pairs of cohabiting couples to capture the complex nature of intra-household time preferences. Estimation results show that (1) the interpersonal discount rate, the rate used to tradeoff intertemporal payoffs between one's own payoff and the spouse's payoff, is significantly different from the individual discount rate, and (2) the interpersonal discount rate may provide an alternative way for people to express their other-regarding preferences towards their spouses. - The Impact of Trails on Property Values: A Spatial Analysis
The Impact of Trails on Property Values: A Spatial Analysis
PUBLICATION & DATE:
Annals of Regional Science 60(1) (2018): 73-97AUTHOR(S):
M. K. Gnagey, T. C. GrijalvaLINK(S):
Link to publication
ABSTRACT:
Convenient and local access to open green space is highly valued in many communities, particularly those comprised largely of individuals who participate in natural resource outdoor recreation. Understanding the value outdoor recreation communities place on access to open space is critical for informing policy decisions on land use including zoning and other restrictions, government open space purchases, and open space access points such as trailheads. In this article, we analyze the impact of trail access on property values in Ogden, Utah, using spatial hedonic pricing models. We consistently find substantial premiums for properties located closer to trailheads. Using a spatial Durbin error model, we find a 0.6% direct effect premium for each minute closer in driving time to the nearest trailhead, and a 1.4% premium when accounting for the total impact. We also find direct premiums between 0.4 and 1.9% for each minute closer in driving time to individual trailheads in this region. Additionally, homes adjacent to trailheads do not experience negative spillovers that homeowners may experience from increased traffic and congestion. - Convex Time Budgets and Individual Discount Rates in the Long Run
Convex Time Budgets and Individual Discount Rates in the Long Run
PUBLICATION & DATE:
Environmental and Resource Economics 71(1) (2018): 259-277AUTHOR(S):
T. C. Grijalva, J. Lusk, R. Rong, W. D. ShawLINK(S):
Link to publication
ABSTRACT:
The purpose of this study is to use experimental data to estimate individual discount rates and test for hyperbolic discounting over a long time horizon. To do this, we employ the convex time budget experimental approach with cash payments over a 20 year time horizon. To date, there are few experimental studies that explore discount rates beyond a 1 year time horizon. Previous experimental studies that focus on short time horizons find high discount rates, which may not be applicable to decisions that affect outcomes in the distant future. Our findings are quite similar to the average rate of 4.9% found by Grijalva et al. (Environ Resour Econ 59:39–63, 2014), who similarly use a 20 year time horizon, but use the multiple price list elicitation method along with payment via government savings bonds. We find annual discounts rates in the range of 1.9–5.5%, depending on the specific model used. We also find evidence for declining discount rates, and that this hyperbolic pattern of behavior is related to the confidence subjects have in receiving distant-future payments. - The Western Public Domain: Disposal, Land Quality, and the Fiscal Implications of a Transfer to States
The Western Public Domain: Disposal, Land Quality, and the Fiscal Implications of a Transfer to States
PUBLICATION & DATE:
Land Economics 93(3) (2017): 371-389AUTHOR(S):
P. M. Jakus, J. Stambro, J. Downen, M. Hogue, L. Pace, T. C. GrijalvaLINK(S):
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ABSTRACT:
Federal land management has always been contentious, but recent years have seen a rise in legislative activity demanding transfer of federal land to state control. Can states afford to assume land management without increasing taxes or other revenue enhancement actions? We find that (1) on average, federal lands are not likely to be as economically productive as private lands, (2) states are likely to have management costs equivalent to federal agencies, and (3) states can cover land management costs with land-based revenues if they have access to fossil fuels and timber resources, and prices for these commodities are relatively high. - The Influence of Positive and Negative Framed Information Load: An Experimental Investigation
The Influence of Positive and Negative Framed Information Load: An Experimental Investigation
PUBLICATION & DATE:
Journal of Marketing Development and Competitiveness 11(3) (2017)AUTHOR(S):
B. C. Koford, T. C. Grijalva, G. ParkhurstLINK(S):
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ABSTRACT:
The purpose of this paper is to test the effect of three information attributes—the framing of information as positive or negative, the symmetry and non-symmetry of information sets, and the quantity of information on individual choices—when choosing between two lotteries. The main effects from a random effects probit model indicate that the quantity of information and symmetry of information influence individual choices over lotteries. When presented with negative information, individuals exhibit less switching behavior between two lotteries. One possible explanation for our result is that a negativity bias is present when information is framed negative which causes individuals to behave differently across lotteries regardless of the quantity of information. - Loss Aversion in the Classroom: A Nudge Towards a Better Grade
Loss Aversion in the Classroom: A Nudge Towards a Better Grade
PUBLICATION & DATE:
College Student Journal 52(1) (2018)AUTHOR(S):
B. C. Koford, T. C. Grijalva, G. ParkhurstLINK(S):
Link to publication
ABSTRACT:
Using data from 499 students over 12 sections, 2 courses, and 3 instructors, we estimate the effect of loss aversion on the probability of turning in extra credit assignments and the effect on the overall grade. Regression results indicate no effect of loss aversion on the probability of turning in extra credit assignments and no effect on a student's overall grade. Instead we find that the higher the student's grade, the more likely they are to turn in extra credit. As the end of the semester nears, students are less likely to turn in extra credit. - Coming Soon...
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