Summer Research Program
2007
Director: Prof. Karen Teitel
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. Eight students
and ten faculty members will participate in 2007. In addition
to conducting research, the research fellos will participate
in weekly events that ranged from research discussions
and leadership building to graduate school advice and
social activities.
Ryan
Anderson '09, Emily Rast '09, James Doyle '09, Kim Makuch
'09, Matthew Fielding '08,
Caitlin Street '08, Ramona McFall '09, Meghan Tighe '09
Abstracts of projects
Labor Market Demographics
Professor: Robert Baumann and John F. O'Connell
RA: James Doyle
Two projects in the area of labor demographics were started.
First, the issue of illegal immigration is often studied,
but no reliable estimate of the number of undocumented
immigrants exists. Without these estimates, it is impossible
to evaluate the effectiveness of policy changes. Second,
there is little research on the education and employment
outcomes of the disabled population.
Outcomes: The legislation concerning undocumented immigrants
was compiled. A literature review of methods used to count
undocumented immigrants was prepared. A literature review
of the effects of disabilities on wages and employment
was prepared. Data sources for disability information
were identified.
Issues in Higher Education
Professor: Robert Baumann and John F. O'Connell
RA: James Doyle
Two research areas in higher education in which working
papers already existed were worked on. First, the US News
& World Report College Rankings are a popular guide
for prospective students and their families. One of the
components of the rankings, peer assessment, is the result
of a survey of college administrators which asks them
to rate the quality of similar schools. Surprisingly,
religiously affiliated schools have peer assessment scores
lower than their other observable characteristics would
suggest. Second, the college attendance decision differs
greatly between whites, blacks, and Hispanics. Because
colleges and governments have policies to increase minority
enrollment, it is important to understand the differences
in the college attendance decision.
Outcomes: Data on endowment, tuition, and student body
size were collected for the sample of colleges. A literature
review for the college attendance decision, and how it
differs for whites, blacks, and Hispanics was prepared.
Both papers have been submitted to peer-reviewed journals.
The Impact of Ticket Scalping on Performing Arts Markets
Professor: Melissa Boyle
RA: Matthew Fielding
Although most economists assume that ticket scalping is
efficient, existing theoretical models make ambiguous
predictions. On the one hand, scalpers benefit the market
by reallocating tickets to those with the highest valuations,
and by providing a kind of "insurance" to producers
who might otherwise not sell the tickets that scalpers
purchase. 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 exit the market sooner, or may
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 and municipal laws
to examine whether prohibiting or restricting scalping
has a positive or negative impact on consumer and producer
entry into arts markets. Using consumption data from the
Survey of Public Participation in the Arts, as well as
production data from the Theatre Communications Group
database, we estimate the effect of such laws on the markets
for plays, musicals, operas, and dance performances. Results
show no measurable impact of anti-scalping laws on consumption
of performing arts events, but an increase in the number
of unique productions in locations where scalping is prohibited
at the event site. This may imply that producers are collecting
more profits and are therefore more able to innovate in
locations where scalpers are prohibited.
Outcomes: The data set was updated with information
on municipal laws as well as state laws. The richer data
set is being used to continue the empirical investigations.
Anti-Scalping Laws and the Secondary Market for Performing
Arts Tickets
Professor: Melissa Boyle
RA: Matthew Fielding
This paper examines the impact of state and municipal
regulation of ticket scalping on the secondary market
for performing arts tickets. Using a unique dataset which
tracks eBay transactions, we test whether anti-scalping
regulation has an impact on the online market for tickets
to musicals, plays, operas, and ballet. Results are very
preliminary, but suggest that such laws have a significant
effect on the behavior of online buyers and sellers.
Outcomes: The data set was updated with information
on municipal laws as well as state laws. The richer data
set is being used to continue the empirical investigations.
Environmental
Issues in China's Booming Economy
Professor: Thomas R. Gottschang and Kathy Kiel
RA: Meghan Tighe
Environmental issues have always presented challenges
to economic growth in China due to the country's geographic
characteristics, which have generated a long, grim history
of droughts, floods, and famines. Pressure on the environment
has multiplied with the dramatic economic expansion that
has resulted from China's transition from central planning
to a market-based economy beginning in the early 1980s.
Combined with China's population of 1.3 billion people,
the demands of the world's fastest growing economy have
magnified both the scope of environmental problems and
the attention they have received in China and abroad.
This project investigates current environmental issues
in China from an economic perspective. One hypothesis
that is investigated is whether China's current rules
regarding air quality in Beijing in preparation for the
2008 Olympics have been successful.
Outcomes:
A literature review on environmental issues in China was
prepared and existing data sources were examined. Data
on air quality over time for four province-level municipalities
was collected, as was data on population, density, education,
and income in preparation for regression analysis. The
dataset is being extended in terms of coverage and analysis
will begin shortly.
Sports
Arenas and Neighboring House Prices
Professor: Kathy Kiel and Victor Matheson
RA: Kim Makuch
This project examines the financial impact of sports arenas
on local neighborhoods. If the stadium is seen as a positive
externality, the prices of neighboring houses should increase,
all else constant. A data set of house prices across the
U.S. over time in cities with and without arenas will
be compiled. Tests will be performed to measure the impact
or arenas on neighboring house prices. The results will
be used to quantify some of the benefits that cities receive
from stadiums, if such benefits exist.
Outcomes:
A list of professional sports teams and which cities they
were located in during various years was created. Computer
programs were written to organize data from 1975 through
2005 on house values, characteristics and location from
the American Housing Survey. The dataset will be used
to estimate the impact of the location of professional
teams on local house values.
Major
Selection
Professor: Debra O'Connor
RA:
Emily Rast
This research project attempts to identify factors that
play a role in selecting a major course of study in an
undergraduate institution. This project utilizes an extensive
database of responses obtained from surveys given to students
upon entering college and upon graduation.
Outcomes:
A literature review was completed. Potential research
questions were identified. The dataset was compiled and
organized. Data analysis will begin soon.
Assessing
Economic Damages in Personal Injury and Wrongful Death
Litigation: The State of Rhode Island
Professor: David Schap
RA:: Caitlin Street
Legal procedure governing the assessment of economic damages
in cases of personal injury and wrongful death is summarized
for the State of Rhode Island. 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 third of the individual
states.
Outcomes: An informational database for the laws of Rhode
Island concerning recovery of damages in cases of personal
injury and wrongful death was compiled. A poster was presented
at the 2007 Undergraduate Summer Research Symposium. A
working paper is being finalized with a presentation of
the material scheduled for a National Association of Forensic
Economics-sponsored session at the American Economic Association
meetings in New Orleans, January 5, 2008. The authors
anticipate revising the paper in response to any critical
comments received at the American Economic Association
Meetings and plan to submit the revised paper shortly
thereafter to the Journal of Forensic Economics.
Changes in Accounting Conservatism Around Earnings
Restatement Announcements
Professor: Karen Teitel
RA: Ramona McFall
Accounting
conservatism has been argued as one dimension of high
quality earnings. The demand for conservative accounting
measures has been identified in both the bond and stock
markets as a way to protect the bond and shareholders'
investments. However, managers can change the level of
accounting conservatism across years in order to achieve
specific earnings levels. The purpose of this study is
to investigate changes in accounting conservatism in a
subset of firms that have had to restate earnings.
Outcomes:
Literature reviews were prepared for the earnings restatements
and conservatism literatures. The dataset of restatements
was organized and cleaned. Data analysis is in process.
Whisper, Analyst and Management Forecasts of Earnings
Professor: Karen Teitel
RA: Ryan Anderson
Whisper forecasts of earnings, unofficial forecasts that
circulate on message boards and chat rooms on the internet,
have been around since the 1980's. Early research found
that the whisper forecasts were less biased and more accurate
than published analysts' forecasts of earnings. However,
the market correction of 2001 and new disclosure and reporting
rules including Regulation Fair Disclosure and the Sarbanes
Oxley Act of 2002 have resulted in whispers being no more
accurate or less biased than analysts' forecasts of earnings.
However, websites accumulating whisper forecasts still
exist and whispers for many companies are published. This
project extends this line of inquiry by investigating
a more recent time period of whisper forecasts and a larger
number of firms. Management forecasts of earnings are
introduced as a third metric. The investigation focuses
on what firms have whispers, when are they more likely
to have a whisper forecast and when are whispers more
informative, more accurate or less biased than either
analysts' or managements' forecasts of earnings.
Outcomes:
Literature reviews of the whisper forecast and management
forecast literatures were prepared. Data was collected.
Data analysis is in process.
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Calendar of Events
Date,
event and organizer
May
31 - Leadership and Team Building - Professor Karen
Teitel
June 7- Play (Dirty Rotten Scoundrels)- Professor
David Schap
June 14 - Worcester Tornadoes Game - Professor Debra
O'Connor
June 26 - Communication in the Sciences - Professors
Matthew Koss and Karen Teitel
June 28 - Boston Pops Concert - Professor Melissa
Boyle
July 10 - Hike Mt. Monadnock - Professors Tom Gottschang
and Rob Baumann
July 18 - Old Sturbridge Village - Professor Victor
Matheson
July 24 - White water rafting trip - Students
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Students and faculty on Mt. Monadnock |
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