Summer Research Program
2006
Director: Prof. Katherine Kiel

Overview
Due to the generosity of the May and Stanley Smith Charitable Trust, the Economics Department organizes a summer research program in which undergraduate students work as research assistants on department faculty projects. Seven students and seven faculty members participated in 2006, producing a variety of products which resulted in several working papers (see abstracts below). In addition to conducting research, the assistants participated in weekly events that ranged from research discussions and leadership building to graduate school advice and social activities.

Summer 2006 research assistants (L-R):
Christine Marieni '07, Kevin Beglane '07, Paul Riley '07 (front), Ryan Hogan '08
Steve Wych '07, Conor Carney '07, and Ria Galiano '07,

Abstracts of projects

Ticket Scalping
Professor: Melissa Boyle
RA: Steve Wych

This project examines the impact of ticket scalping on consumption and production in the live performing arts. Although most economists assume that scalping is efficient, very little empirical work has been done to determine the specific impact of scalping on the performing arts market. Scalpers benefit the market by reallocating tickets to those who value them most, and by providing a kind of "insurance" to producers who might otherwise not sell the tickets that scalpers purchase. This may result in higher consumption by arts patrons and may also benefit producers, helping them to remain in the market longer.

On the other hand, the presence of scalpers in the market likely implies that these individuals collect profits that could otherwise go to producers. Because of this, producers may be forced to exit the market sooner than they would otherwise, or be discouraged from entering. In addition, the quality of shows may be lower since these dollars will not be invested back into productions. It is therefore possible that the presence of scalpers may have a negative effect on both demand by arts patrons and supply by producers. This study uses variation in state laws to examine whether prohibiting or restricting scalping has a positive or negative impact on consumer and producer entry into arts markets.

Outcomes: A poster was presented at the 2006 Undergraduate Summer Research Symposium. The data set is complete and preliminary results have been obtained.

The Impact of Wetlands Regulations on Home Owners and their Neighbors
Professor: Kathy Kiel
RA.: Christine Marieni

Environmental regulations are put in place to protect human health as well as that of various other species. These regulations can put costs on various individuals and groups, but they are expected to give benefits as well. It is likely that those individuals who bear the costs are not the same as those who receive the benefits. This is a strong possibility in the case of U.S. federal wetlands regulations where regulations can restrict landowners' ability to develop their properties in certain ways which can decrease the value of the regulated properties. However, the regulations also give benefits to nearby neighbors who no longer need worry about increased development in their area. The overall impact must be determined empirically.

In order to ascertain the impact on house prices of wetlands regulations, this study develops and analyzes several data sets. These contain information about the sales prices of single family residences, the houses' characteristics at the time of the sale, and local, state, and federal regulations that impact the properties in several Massachusetts towns over several years. Using house price hedonic regressions that have become standard in the literature we examine how prices of the properties that fall directly under the regulations are affected, as well as the prices of those properties that are not regulated but have neighbors who are. This allows us to better understand the true incidence of these regulations in terms of property values.

Outcomes: the data set is complete and preliminary regressions have been estimated, prior to writing a paper. A poster was presented at the 2006 Undergraduate Summer Research Symposium.

College Football and Local Economies
Professor: Victor Matheson
RA: Paul Riley

This research position involves several projects related to the economics of sports. The primary project involves estimating the impact of college football programs on the local economies of the towns and cities in which they play. The second project is an examination of the efficiency of the team selection process in the men's and women's NCAA Division I basketball tournaments and research into the correlation between academic and athletic success and the institutional level in college sports.

Outcomes: A poster was presented at the 2006 Undergraduate Summer Research Symposium. Data sets and background work for two papers are complete. One of the papers will be presented at the Eastern Economic Association meetings and at the Western Economic Association meetings next year.

Earmarking State Lottery Profits for Education
Professor: Neva K. Novarro
RA: Ria Galiano

This project tests whether earmarking state lottery profits for education decreases the willingness of voters to pass new school bond measures. This effect may occur if voters assume that revenues from earmarked funds adequately cover education expenses and therefore view the new bonds as an unnecessary debt. Because school bonds often raise funds for capital projects, this paper also will explore whether or not capital expenditures on education would have been higher overall in the absence of earmarking.

Outcomes: Substantial progress has been made on the data set and work is on-going. A poster was presented at the 2006 Undergraduate Summer Research Symposium.

Social Service Agencies (SSAs) and property values
Professor: Nicolas Sanchez
RA: Kevin Beglane

The purpose of this study is to determine the impact of social service agencies' properties and programs on nearby property values. The literature on this issue is mixed, with some studies finding that nearby properties to group homes run by SSAs experience a decline in values, while others find no adverse effect on those values.

The study makes use of public information that has been developed over the course of the last few months in the town of Framingham, MA, where many new programs have been established by the SSAs in newly purchased properties. One unusual thing about developments in Framingham is that many SSA programs and properties are clustered around relatively small geographical areas, making it possible to determine the impact (if any) of SSA properties that are isolated and those that are clustered. The study will also determine the impact of wet shelters (where the users are not protected against discrimination by the Federal Fair Housing Act) on nearby property values.

Outcomes: The data set is nearly completed and work is ongoing Kevin is currently enrolled in a directed study course with Prof. Sanchez to continue the analysis. A poster was presented at the 2006 Undergraduate Summer Research Symposium.

Recoverable Damages for Wrongful Death in the States: An Update
Professor: David Schap
RA: Conor Carney

State statutory law concerning recoverable damages for wrongful death is comprehensively surveyed and categorized, as in Schap and Valvo (Journal of Forensic Economics, 1997). Various kinds of awards, limitations, and procedures are presented in tabular form. Suitable coding within the table highlights statutory changes since the previous published survey. The table should both facilitate comparative institutional analysis by research economists and provide an informational base for practitioners.

Outcomes: The statutes were examined as summarized in the Martindale-Hubbell Law Digest (2005). A paper has been drafted based on the underlying research that will be presented at the Southern Economic Association Meetings in Charleston, SC in November 2006. The authors anticipate revising the paper in response to any critical comments received at the Southern Meetings and plan to submit the revised paper shortly thereafter to the Journal of Forensic Economics.

Assessing Economic Damages in Personal Injury and Wrongful Death Litigation: The Commonwealth of Massachusetts
Professor: David Schap
RA: Conor Carney

Legal procedure governing the assessment of economic damages in cases of personal injury and wrongful death is summarized for the Commonwealth of Massachusetts. Statutory law and case law are both addressed. The paper adds to a series of similar studies that have already appeared in the Journal of Forensic Economics for about a dozen other individual states.

Outcomes: Compiled an informational base for the laws of Massachusetts concerning recovery of damages in cases of personal injury and wrongful death. There remains the task of incorporating the informational base into a suitable text presentation. That work is scheduled for early 2007, with a presentation of the material scheduled for the Eastern Economic Association Meetings in New York in late February. The authors anticipate revising the paper in response to any critical comments received at the Eastern Meetings and plan to submit the revised paper shortly thereafter to the Journal of Forensic Economics.

Excess endowments at private liberal arts colleges
Professor: Karen Teitel and David Chu
RA: Ryan Hogan

This project identifies excess endowments at private liberal arts colleges and investigates any potential agency problems that may exist as a result of the excess endowments. We created a database using not-for-profit financial reports, searched for new data sources, and searched for relevant articles from a variety of journals.

Outcomes: A poster was presented at the 2006 Undergraduate Summer Research Symposium. The database is nearing completion and analysis will begin shortly.

Calendar of Events

May 22nd: Kathy Kiel, orientation to the program

May 24th: Karen Teitel, leadership workshop

May 29th: Nancy Baldiga, BBQ

June 8th: Kathy Kiel, Matt Koss - communication in sciences (with science students)

June 14th: David Schap: Concert by Mackenzie Melemed

June 21st: Neva Novarro, John Cull - post graduate opportunities (with science students)

June 28th: Melissa Boyle: Duck tour of Boston

July 18th: Victor Matheson, Karen Teitel: Old Sturbridge Village

July 26th: Field trip to Science Museum with science students