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Eastern Economic Journal
Journal Prestige (SJR): 0.291
Number of Followers: 8  
 
  Hybrid Journal Hybrid journal (It can contain Open Access articles)
ISSN (Print) 0094-5056 - ISSN (Online) 1939-4632
Published by Springer-Verlag Homepage  [2626 journals]
  • What are the Long-Term Effects of Prenatal Air Pollution Exposure'
           Evidence from the BHPS
    • Abstract: The detrimental impacts of air pollution on human health are significant. Pollution increases mortality in the elderly and reduces worker productivity. While a consensus is beginning to emerge on the contemporaneous effects of air pollution, the long-term effects are still largely unknown. By combining restricted data from a comprehensive national survey with historical pollution data, I plausibly isolate the impact of prenatal particulate matter exposure on adult outcomes. I find that those with higher levels of prenatal exposure during the second trimester of gestation are more likely to be disabled, earn lower wages, and have worse health.
      PubDate: 2020-07-05
       
  • Breaking Bad: When Being Disadvantaged Incentivizes (Seemingly) Risky
           Behavior
    • Abstract: We investigate how variation in initial conditions, which assign individuals into advantaged or disadvantaged positions, alters behavior. We illustrate the problem within a labor market context and consider the impact of accumulated debt on wage selectivity. Using a two-period model, we show that debt exerts a non-monotonic effect on wage selectivity, with agents assigned low and high levels of debt being significantly more likely to reject an initial wage offer than agents with moderate debt. This prediction is supported by our experiment, which finds a statistically significant dip in wage selectivity for subjects assigned moderate levels of debt.
      PubDate: 2020-06-18
       
  • Inclusiveness, Growth, and Political Support
    • Abstract: This paper links political support to economic growth. Governments gain support from wealth creation and income redistribution, and the quest for support links differences in economic systems to differences in political systems; inefficiencies persist when they raise support. Depending on how a government obtains it, the quest for support can either lower efficiency and raise the consumption cost of growth or lead to inclusiveness, efficiency, and sustainable growth, a kind of ‘political invisible hand.’ If they do not already exist, however, the incentive to adopt the institutions needed to make this invisible hand work well is likely to be low.
      PubDate: 2020-06-15
       
  • Share of Household Earnings and Time Use of Women in Same-Sex and
           Different-Sex Households
    • Abstract: We investigate the impact of the share of household earnings on time use in household labor among women in same-sex households and different-sex households in the USA. Contrary to the U-shape pattern found among heterosexual women, we find an inverse U-shape relationship between time spent in household labor and earnings share for lesbians. This result holds when we divide the sample into households with and without children. These findings are most consistent with preferences for relational equality.
      PubDate: 2020-06-01
       
  • Monitoring Intensity and Technology Choice in a Model of Unemployment
    • Abstract: The interaction among a firm’s choices of output, technology, and monitoring intensity is studied in a general equilibrium model. Firms engage in oligopolistic competition, and unemployment is a result of the existence of efficiency wages. The following results are derived analytically. First, an increase in the cost of exerting effort leads a firm to choose a more advanced technology and a lower level of monitoring intensity. Second, an increase in the discount rate does not change a firm’s choices of technology and monitoring intensity. Third, an increase in the elasticity of substitution among goods leads a firm to choose higher levels of monitoring intensity and technology. In a model in which the level of monitoring is exogenously given, there is a negative relationship between the wage rate and the monitoring intensity. In this model with endogenously chosen monitoring intensity, the wage rate and the monitoring intensity can move either in the same direction or in opposite directions.
      PubDate: 2020-06-01
       
  • An Agent-Based Model of Ethnocentrism and the Unintended Consequences of
           Violence
    • Abstract: We repurpose an agent-based model of ethnocentrism to show how violence affects people’s willingness to cooperate with members of other groups. We account for extra benefits which arise from interacting with a member of the same culture (‘cultural boosts’) and for mutual gains from cooperative activities (‘public goods’). In environments where one person gains at another’s expense, violence decreases ethnocentrism. However, violence increases ethnocentric behavior when cooperation produces shared benefits. These results point to new empirical questions and contribute to policy discussions regarding the use and reduction of violence.
      PubDate: 2020-06-01
       
  • Satisfaction and Self-employment: Do Men or Women Benefit More from Being
           Their Own Boss'
    • Abstract: This paper uses individual self-reported life satisfaction data to analyze the relationship between self-employment and subjective well-being by gender and race/ethnicity. We document substantial heterogeneity, with women appearing to benefit the most from self-employment. Self-employed women have significantly higher rates of being very satisfied relative to both traditionally employed women and self-employed men. We also find that the self-employed have higher rates of dissatisfaction, and this adverse relationship with self-employment is most pronounced for minorities. These nuanced findings broaden our understanding of the relationship between self-employment and subjective well-being and have important implications for both researchers and policymakers.
      PubDate: 2020-05-26
       
  • The Islamic Rate of Return Versus the Nominal Rate of Interest: A
           Macroeconometric Model
    • Abstract: This paper investigates the question of “will the replacement of the nominal interest rate by the expected Islamic real rate of return have positive consequences on the macroeconomic performance'” The study adopts a dynamic small-scale macroeconometric model, which describes the transmission mechanisms among macroeconomic variables under three scenarios about the Islamic real rate of return. The baseline model and the model scenarios are solved using the stochastic simulation. The results of the study indicate that scenario 1 of a zero Islamic real rate of return, or equivalently a zero real interest rate, is superior over other model scenarios, given the priority of the goal of price stability among other objectives of monetary policy.
      PubDate: 2020-05-24
       
  • Income Comparison and Subjective Well-Being: Evidence from Self-Perceived
           Relative Income Data from China
    • Abstract: This paper studies the impact of self-perceived relative income on subjective well-being (SWB) using data from China. The results show that perceiving a lower relative income in comparison with different reference groups leads to lower life satisfaction and happiness. The effect of the self-perceived relative income on SWB is monotonic—the lower the position of an individual in income comparisons, the larger the negative effect. In addition, favorable and unfavorable relative income positions have asymmetric impacts on life satisfaction, but not on happiness. The results hold when controlling for individual fixed effects by utilizing the panel structure of the data.
      PubDate: 2020-05-19
       
  • Urbanization and Its Discontents
    • Abstract: American cities have experienced a remarkable renaissance over the past 40 years, but in recent years, cities have experienced considerable discontent. Anger about high housing prices and gentrification has led to protests. The urban wage premium appears to have disappeared for less skilled workers. The cities of the developing world are growing particularly rapidly, but in those places, the downsides of density are acute. In this essay, I review the causes of urban discontent and present a unified explanation for this unhappiness. Urban resurgence represents private sector success, and the public sector typically only catches up to urban change with a considerable lag. Moreover, as urban machines have been replaced by governments that are more accountable to empowered residents, urban governments do more to protect insiders and less to enable growth. The power of insiders can be seen in the regulatory limits on new construction and new businesses, the slow pace of school reform and the unwillingness to embrace congestion pricing.
      PubDate: 2020-03-10
       
  • Complexity and the Art of Public Policy : Solving Society‚Äôs Problems
           from the Bottom Up . By David Colander and Roland Kupers. Princeton
           University Press, Princeton, NJ and Oxford, UK, 2014. 310pp., $29.95. ISBN
           987-0-691-15209-7.
    • PubDate: 2020-02-05
       
  • Non-stop Love: A Study of Entry Barriers in the Airline Industry Using
           Policy Changes at Dallas Love Field
    • Abstract: Exogenous changes in entry barrier conditions faced by firms allow for an analysis of their impact on competition and market structure. This empirical study finds that the policy changes at Love Field airport arising from the repeal of the Wright Amendment in October 2014 led to reduction in airfares on routes between Dallas and cities beyond the neighboring states of Texas, but increase in airfares on routes between Dallas and destinations in Texas and its surrounding states (collectively called the Wright Perimeter). The fare decrease can be attributed to airlines (primarily Southwest) entering non-stop markets from Love Field, whereas the fare increases in the short-haul within Wright Perimeter markets indicates the impact of binding gate constraints. A capacity-constrained entry model is used to explain the opposite effects in different markets.
      PubDate: 2019-12-16
       
  • Vision Zero: Speed Limit Reduction and Traffic Injury Prevention in New
           York City
    • Abstract: We examine the effect on the incidence of casualties and crashes of a city-wide vehicle speed limit reduction in New York City (NYC) streets. The law change, part of Mayor Bill de Blasio’s Vision Zero Action Plan to improve traffic safety, cuts the default speed limit for streets with no speed limit signs from 30 to 25 mph beginning November 7, 2014. We use a monthly panel dataset with crash statistics for the entire population of NYC streets, from July 2012 through March 2019. Several difference-in-differences regressions show a statistically significant and meaningful decline in injuries and crashes.
      PubDate: 2019-12-05
       
  • Skyscrapers and the Happiness of Cities
    • Abstract: This paper explores the drivers of high-rise and skyscraper construction and their impact on average happiness levels across 186 US metropolitan areas. Utilizing ordinary least squares and three-stage least squares, we find strong support that high-rise and skyscraper completion counts are a response to city economic fundamentals, but mixed results for their impact on happiness. On average, high-rises have a small negative effect, while skyscrapers exhibit a positive relationship. Further regressions suggest that skyscrapers improve sense of community and perceived health but that high-rises do not seem to positively affect any happiness subcategories. Tests on the effect of these buildings on general, mental, and physical health provide evidence of no harmful effects. The results suggest that the skyscraper benefits outweigh the possible negative externalities.
      PubDate: 2019-11-25
       
  • Do Vouchers Protect Low-Income Households from Rising Rents'
    • Abstract: Using restricted administrative data on the voucher program, we examine the experience of voucher holders in metropolitan areas with rising rents. While some of our models suggest that rising rents in metropolitan areas are associated with a slight increase in rent-to-income ratios among voucher holders, poor renters in general see significantly larger increases in rent-to-income ratios. We see little evidence that rising rents push voucher holders to worse neighborhoods, with voucher holders in central cities ending up in lower poverty neighborhoods as rents rise. It appears that vouchers may help low-income households remain in neighborhoods as they gentrify.
      PubDate: 2019-11-22
       
  • Explaining New Firm Survival: Is the Firm, Owner, or Agglomeration at
           Fault'
    • Abstract: This paper empirically estimates the effect of several sources of agglomeration on new firm survival while controlling for firm, entrepreneur, and regional variables using a discrete-time hazard model. We utilize the longitudinal Kauffman Firm Survey of almost 5000 US startups from 2004 to 2011. Unlike previous studies, we find that the overall hazard of entrepreneurs shutting down their new firms is not significantly affected by regional agglomeration factors, but instead firm and entrepreneur variables. However, we find suggestive evidence that location does matter for particular groups of entrepreneurs such as high-tech startups and those firms not based out of their homes.
      PubDate: 2019-11-21
       
  • Chinese Hukou Policy and Rural-to-Urban Migrants’ Health: Evidence
           from Matching Methods
    • Abstract: Internal migration and the provision of social benefits in China are restricted by the institutional policy, commonly called hukou. Hukou status is mainly determined by place of origin. It creates a two-tier system that exacerbates inequality across Chinese households—rural versus urban hukou. We apply coarsened exact matching methods and propensity score models to estimate the impact of obtaining an urban hukou on rural-to-urban migrants’ health outcomes. Our results indicate that migrants with urban hukou maintain lower levels of blood pressure and are less likely to develop hypertension or nutritional conditions compared to rural hukou migrants. We do not find significant results on self-rated health. Our findings show that, in the short-medium term, there are differences in health that are prevalent for migrants with different hukous.
      PubDate: 2019-11-20
       
  • Introduction to the Symposium on Urban Economics
    • PubDate: 2019-11-12
       
  • When Social Norms Influence the Employment of Women: The Case of Japan
    • Abstract: This paper provides a simple model of social norms and performs cohort analyses to test its theoretical predictions with Heckman’s sample selection model using the 1993–2014 Japanese Panel Survey of Consumers data. Our results suggest that obedience to the society’s code of behavior is fairly prevalent among Japanese women, but the degree of adherence varies by birth cohort and also is influenced by educational quality and standards. Estimates further show an inverse relationship between adherence to social norms and labor force participation among Japanese women, and the effect of obedience to social norms on wages varies by birth cohort.
      PubDate: 2019-10-23
       
  • Pathways Between Minimum Wages and Health: The Roles of Health Insurance,
           Health Care Access and Health Care Utilization
    • Abstract: This study contributes to recent work on the relationship between minimum wages and health by examining potential underlying mechanisms. Specifically, the roles of health insurance, health care access and utilization are explored. By analyzing Current Population Survey data for the years 1989–2009 and by estimating DD models, I find that higher minimum wages increase health insurance coverage, in particular individually purchased insurance, among low-educated individuals. By estimating data from the Behavioral Risk Factor Surveillance System for the same period, I furthermore provide evidence for improvements in health care access/affordability and increased health care utilization following minimum wage increases.
      PubDate: 2019-10-11
       
 
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