Archive for the ‘Research Papers in Economics’ Category

Culture: Persistence and Evolution

April 16, 2014 Comments off

Culture: Persistence and Evolution (PDF)
Source: Research Papers in Economics

This paper presents evidence on the speed of evolution (or lack thereof) of a wide range of values and beliefs of different generations of European immigrants to the US. The main result is that persistence differs greatly across cultural attitudes. Some, for instance deep personal religious values, some family and moral values, and political orientation are very persistent. Other, such as attitudes toward cooperation, redistribution, effort, children independence, premarital sex, and even the frequency of religious practice or the intensity of association with one’s religion, converge rather quickly. Moreover, the results obtained studying higher generation immigrants differ greatly from those obtained limiting the analysis to the second generation, and imply lesser degree of persistence. Finally, we show that persistence is “culture specific” in the sense that the country from which one’s ancestors came matters for the pattern of generational convergence.

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Software Piracy: A Critical Survey of the Theoretical and Empirical Literature

March 19, 2014 Comments off

Software Piracy: A Critical Survey of the Theoretical and Empirical Literature (PDF)
Source: Research Papers in Economics

As devices that used software became available to the masses the problem of software piracy arose. Recent theoretical works modeled the software piracy phenomenon; others tried to empirically explain the determinants that can explain this phenomenon. Empirical literature in the latter case is still in its infancy. This chapter reviews the theoretical literature focusing on three major models, those that deal with diffusion models, network externalities and with game theory. It also presents the empirical literature in which we identify eight stylized results that reflect key variables across five macroeconomic dimensions that explain software piracy: Economic, Cultural, Technological, Legal and Educational dimensions.

Cross-Checking the Media

December 10, 2013 Comments off

Cross-Checking the Media
Source: Research Papers in Economics

A characteristic of the news market is that consumers often cross-check information, i.e. observe several news outlets. At the same time, data on political media suggest that more partisan consumers are more likely to cross-check. We explore these phenomena by building a model of horizontal competition in newspaper endorsements. Without cross-checking, outlets are unbiased and minimally differentiated. When cross-checking is allowed, we show that cross-checkers are indeed more partisan than those who only acquire one report. Furthermore, cross-checking induces outlets to differentiate, and the degree of differentiation is increasing in the dispersion of consumer beliefs. Differentiation is detrimental to consumer welfare, and a single monopoly outlet may provide higher consumer welfare than a competitive duopoly.

On the dynamic of franchise (re)location in the North-American sport leagues

November 5, 2013 Comments off

On the dynamic of franchise (re)location in the North-American sport leagues
Source: Research Papers in Economics

As the cost of tax-dollar paid stadia rises and the talks of relocations in the main North-American pro leagues increase, a multi-field analysis on the different mechanisms that decides team relocation seems necessary. This paper reviews the different mechanisms participating team location and finally offer a new angle of analysis on the actual equilibrium and demonstrates its dynamic nature.

A new financial metric for the art market

October 7, 2013 Comments off

A new financial metric for the art market
Source: Research Papers in Economics

This paper introduces a new financial metric for the art market. The metric, which we call Artistic Power Value (APV), is based on the price per unit of area (dollars per square centimeter) and is applicable to two-dimensional art objects such as paintings. In addition to its intuitive appeal and ease of computation, this metric has several advantages from the investor’s viewpoint. For example, it makes it easy to: (i) estimate price ranges for different artists; (ii) perform comparisons among them; (iii) follow the evolution of the artists’ creativity cycle overtime; and (iiii) compare, for a single artist, paintings with different subjects or different geometric properties. Additionally, the APV facilitates the process of estimating total returns. Finally, due to its transparency, the APV can be used to design derivatives-like instruments that can appeal to both, investors and speculators. Several examples validate this metric and demonstrate its usefulness.

International hostility and aggressiveness on the soccer pitch: Evidence from European Championships and World Cups for the period 2000-2012

October 4, 2013 Comments off

International hostility and aggressiveness on the soccer pitch: Evidence from European Championships and World Cups for the period 2000-2012
Source: Research Papers in Economics

Some Researchers consider soccer matches as the stylization of a war in other battlefields. Such approach was largely used to interpret the violent phenomena related to the soccer environment, while less attention has been paid to the «potential» role of political and economic interactions between countries in determining the aggressive attitude of players on the pitch. In our paper we empirically investigate if and how political hostility among countries reverberates on a soccer pitch by influencing players’ aggressiveness. The analysis focuses on official matches played by national teams in the final phases of the European and World Cup tournaments since 2000. We estimate a Negative Binomial regression including both political and sport variables, and we find that (a) commercial hostility; (b) the level of diplomatic relationships, (c) power asymmetry and (d) education gap between countries are positively and significantly associated with aggressiveness of the players on the pitch, approximated by the number of yellow and red cards. That is, briefly stated, international hostility reverberates into the pitch. Moreover, sport covariates present the expected signs, namely results show that the closeness of the teams, their ranking and the stage of the game (knockout stages with respect to the group phases) are also crucial in determining the cautions.

Open Access, Social Norms & Publication Choice

September 26, 2013 Comments off

Open Access, Social Norms & Publication Choice (PDF)
Source: Research Papers in Economics

The aim of this paper is to shed light on scholarly communication and its current trajectories by examining academics’ perception of Open Access, while also providing a reference case for studying social norm change. In this respect, the issue of publication choice and the role of Open Access journals casts light on the changes affecting the scientific community and its institutional arrangements for validating and circulating new research. The empirical investigation conducted also offers a useful vantage point for gauging the importance of localised social norms in guiding and constraining behaviour.

The Impacts of Promotions/Marketing, Scheduling, and Economic Factors on Total Gross Revenues for Minor League Baseball Teams

September 9, 2013 Comments off

The Impacts of Promotions/Marketing, Scheduling, and Economic Factors on Total Gross Revenues for Minor League Baseball Teams
Source: Research Papers in Economics

This empirical study finds that total revenues at minor league baseball games are influenced by marketing, economic factors, scheduling, and the weather. In particular, total gross revenues are an increasing function of marketing/promotions such as low value merchandise giveaways, high value merchandise giveaways, group discounts, and fireworks displays. Revenues are also an increasing function of the metropolitan area population and a decreasing function of poverty rates. Teams with higher priced general admissions tickets also experience higher revenues. Revenues are generally higher on Fridays and Saturdays and during July and August (and possibly June), while being lower on Mondays and Tuesdays and during May. Finally, inclement weather, especially rain, reduces revenues.

Sport Talent, Media Value and Equal Prize Policies in Tennis

September 2, 2013 Comments off

Sport Talent, Media Value and Equal Prize Policies in Tennis (PDF)
Source: Research Papers in Economics

Given the economic and commercial implications of sports, the media value of players and teams is considered a major asset in professional sports businesses. This paper aims to assess the economic value of intangible assets in the tennis industry. In order to rank the media value of professional tennis players (both men and women), we measure the intangible talent of players based on their exposure in the mass media. We use the ESI (Economics, Sports and Intangibles) methodology to examine some issues related to the competitive structure of tennis. Then, we explore whether policies regarding prize money could be more efficiently designed to account for the economic contribution of the players. The paper uses weekly data on the media presence and popularity of 1,400 professional tennis players (700 women and 700 men competing in 2007, espectively, in the WTA and ATP).

Confucianism and Preferences: Evidence from Lab Experiments in Taiwan and China

August 19, 2013 Comments off

Confucianism and Preferences: Evidence from Lab Experiments in Taiwan and China (PDF)
Source: Research Papers in Economics

This paper investigates how Confucianism affects individual decision making in Taiwan and in China and whether the Cultural Revolution in China, which denounced Confucian teaching, has had a long-lasting impact. We found that Chinese subjects in our experiments became less accepting of Confucian values, such that they became more risk loving, less loss averse, and more impatient after being primed with Confucianism, whereas Taiwanese subjects became more trustworthy and more patient after being primed by Confucianism. Combining the evidence from the incentivized laboratory experiments and subjective survey measures, we found evidence that Chinese subjects and Taiwanese subjects reacted differently to Confucianism.

Workers’ Responses to Incentives: The Case of Pending MLB Free Agents

July 16, 2013 Comments off

Workers’ Responses to Incentives: The Case of Pending MLB Free Agents (PDF)
Source: Research Papers in Economics

This study examines ways in which workers respond to implicit incentives. Specif- ically, we examine the extent to which workers shift their effort to activities that are measured and which have been previously rewarded in the labor market. To examine this question, we examine the changes in the performance measures of professional baseball players in the season prior to the opportunity to freely negotiate their contract (free agency). We will examine different eras in baseball to examine if we can identify changes in behavior in this pivotal year based on changes to the current premium outputs for each time period.

Exit Discrimination in the NFL: A Duration Analysis of Career Length

May 8, 2013 Comments off

Exit Discrimination in the NFL: A Duration Analysis of Career Length

Source: Research Papers in Economics

Using a panel study of annual NFL data (2000–2008) we test for exit discrimination on career length in the NFL. We focus on six positional groups: defensive backs, defensive linemen, linebackers, running backs, tight ends and wide receivers. We test for exit discrimination using both parametric and semi-parametric hazard models. In our analysis, in addition to race, we include performance variables to determine their importance in determining career length. Our analysis posits the question: Do team owners in the pursuit of championships keep talented players regardless of their race?

A League of Their Own – Female Soccer, Male Legacy and Women’s Empowerment

March 4, 2013 Comments off

A League of Their Own – Female Soccer, Male Legacy and Women’s Empowerment (PDF)

Source: Research Papers in Economics

This paper investigates whether male soccer tradition can predict the success of female soccer. Different from the existing literature, this paper utilizes panel data covering 175 countries during the 1991-2011 period, capturing country heterogeneity effects and time trends. An instrumental variable approach is further employed in order to identify causal relation. My findings do not support the widespread perception that male tradition determines female soccer attainments. On the other hand, my results indicate that women’s empowerment can be a driving force for the success of female soccer.

Minimum Pay Scale and Career Length in the NBA

August 4, 2012 Comments off

Minimum Pay Scale and Career Length in the NBA (PDF)

Source: Research Papers in Economics

We use data from the National Basketball Association (NBA) to analyze the impact of minimum salaries on an employee’s career length. The NBA has a salary structure in which the minimum salary a player can receive increases with the player’s years of experience. Salary schedules similar to the NBA’s exist in public education, federal government agencies, the Episcopalian church, and unionized industries. Even though the magnitude of the salaries in the NBA differs from other industries, this study provides insight to the impact of this type of salary structure on career length. Using duration analysis, we find statistically significant evidence that minimum salaries shorten career length.

Newspaper and Internet Display Advertising – Co-Existence or Substitution?

July 29, 2012 Comments off

Newspaper and Internet Display Advertising – Co-Existence or Substitution? (PDF)
Source: Research Papers in Economics

Newspapers have been experiencing declining circulation figures and diminishing advertising revenues for several years – both effects might pose a threat to the continuing existence of (print) newspapers. In an earlier paper, Lindstädt & Budzinski (2011) argued from a theoretical viewpoint that industry-specific patterns exist that determine substitution or complementation effects between internet and newspaper advertising. It was argued that retail advertising, in particular, may offer a niche for regional/local newspapers that can be expected to present a sustainable segment of complementarity along with the otherwise mostly substitutional advertising markets. This paper empirically tests these hypotheses by analyzing advertising spending data for newspaper and internet display advertising of 13 different industries in the U.S. from 2001-2010. We find evidence for some of the hypotheses. Whereas some industries showed clear substitution effects between internet display and newspaper advertising, the majority of our hypotheses could be only partly rejected: newspaper substi-tution effects could be observed, however, in the direction to traditional media platforms instead of internet display advertising. For two retail-sub-industries, the hypotheses could not be rejected for the analyzed period. The authors would like to thank the College of Communications at the Pennsylvania State University and in particular Anne Hoag and Dennis Davis for hosting Nadine Lindstädt as a Research Visiting Scholar in 2010/2011 which made it possible to access and use the Kantar Media Intelligence Ad$pender™ database for this research.

US advertising expenditure trends : long run effects and structural changes with new media introductions

July 19, 2012 Comments off

US advertising expenditure trends : long run effects and structural changes with new media introductions (PDF)

Source:  Research Papers in Economics

In this paper we examine the historical time series of US advertising  expenditure on different media, using a long-run equilibrium model, and whether the introduction of new media (TV, Yellow Pages, cable and the internet) created a significant structural change in the advertising industry. We use a multivariate vector error  correction model allowing for broken trends. Our results show that internet and cable media cause a substantive shift only on the evolution of newspapers and outdoor, respectively, whereas TV and yellow pages entries create fundamental change in the spending levels of all incumbents, except for direct mail. We also find that the longrun elasticity between total advertising expenditures and the GDP is negative, implying that total advertising has counter-cyclical behavior. Furthermore, in the long-run, an increase in the internet investment results in a decrease in newspapers as well as magazines’ investment.

Ethnic Reunion and Cultural Affinity

June 28, 2012 Comments off

Ethnic Reunion and Cultural Affinity (PDF)
Source: Research Papers in Economics

Ethnic reunion is the propensity of tourists to travel to regions where their ancestors originate from, while cultural affinity is the propensity of tourists to travel to regions with a shared cultural identity. This paper uses a “world migration matrix”, which records the year-1500 origins of the current populations of 159 countries, in a standard tourism gravity equation to provide the first empirical evidence of the existence of both these tourism traits at the global level. Our results remain robust even when controlling for other historical links, such as colonial legacy and regional trade agreements. By controlling for trade flows, we also show that this impact is unique to tourism. Ethnic reunion and cultural affinity are thus important — and neglected — constituents of tourism patterns (and of research), with important policy implications.

Performance evaluation of Tour de France cycling teams using Data Envelopment Analysis

June 27, 2012 Comments off

Performance evaluation of Tour de France cycling teams using Data Envelopment Analysis (PDF)
Source: Research Papers in Economics

This paper uses a robust (order-m) Data Envelopment Analysis approach to evaluate the efficiency of Tour de France cycling teams for the period 2007- 2011. Since there are multiple ways in which this event can be successful for a cycling team, we take it that managers face strategic input decisions regarding team and rider characteristics. Specifically, we distinguish between ranking teams, sprint teams, and mixed teams, and compute for each of these an efficiency score as due to the team’s performance relative to similarly classified teams and an efficiency score that is the consequence of the team type. We find that ranking teams are generally more efficient than other types.

Designing Fees for Music Copyright Holders in Radio Services

May 28, 2012 Comments off

Designing Fees for Music Copyright Holders in Radio Services (PDF)
Source: Research Papers in Economics

This paper investigates which is the most desirable payment schedule, from a social welfare standpoint, for compensating IPR holders for music broadcast by radio stations. A model of a radio station that acts as a monopoly with respect to listeners and sells ads in a competitive market is presented. Two types of fees, ad valorem and per unit, are examined. Exploiting the similarity between taxes and fees, we extend results from taxation theory in two-sided markets to show that the case where only one side (i.e. advertisers) pays, while the other (the listeners) receives the service for free, di§ers somewhat from the case thus far considered by the literature, in which both sides pay. The results mildly support the prevailing regulatory approach, based on ad valorem fees.

A Note on the “Linsanity” of Measuring the Relative Efficiency of National Basketball Association (NBA) Guards

May 27, 2012 Comments off

A Note on the “Linsanity” of Measuring the Relative Efficiency of National Basketball Association (NBA) Guards (PDF)
Source: Research Papers in Economics

This note examines the productive efficiency of 62 starting guards during the 2011/12 National Basketball Association (NBA) season. This period coincides with the phenomenal and largely unanticipated performance of New York Knicks’ starting point guard Jeremy Lin and the attendant public and media hype known as Linsanity. We employ a data envelopment analysis (DEA) approach that includes allowance for an undesirable output, here turnovers per game, with the desirable outputs of points, rebounds, assists, steals, and blocks per game and an input of minutes per game. The results indicate that depending upon the specification, between 29 and 42 percent of NBA guards are fully efficient, including Jeremy Lin, with a mean inefficiency of 3.7 and 19.2 percent. However, while Jeremy Lin is technically efficient, he seldom serves as a benchmark for inefficient players, at least when compared with established players such as Chris Paul and Dwayne Wade. This suggests the uniqueness of Jeremy Lin’s productive solution and may explain why his unique style of play, encompassing individual brilliance, unselfish play, and team leadership, is of such broad public appeal.


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