Master of Arts / Department of Economics / Tracy M. Turner / Many municipalities are beginning to play a more central and active role in slowing and reversing the process of the economic stagnation of business and commerce within their cities. Many municipalities combat these problems through the use of providing existing businesses or start up businesses with financial assistance or incentives. Economic theory shows us that a firm’s decision on production and location is influenced by fiscal incentives that are afforded to them. This paper explores the external effects of municipally assisted redevelopment programs. This analysis strives to broaden our understanding of businesses redevelopment programs to include not just the impacts on the commercial side, but see the total effects which include the residential side as well. It analyzes key economic indicators of households who reside within and directly around publicly assisted redevelopment areas and compares these indicators to their non-redeveloped area counterparts. Specifically, it empirically examines the impact of redevelopment on house values and unemployment rates in seven large Midwestern cities: Des Moines, Wichita, Kansas City, St. Louis, Lincoln, Omaha, and Milwaukee, using census data at the block group and census tract levels. I find that redevelopment has a substantial impact in increasing house values and reducing unemployment rates in the vicinity of the redevelopment projects.

Doctor of Philosophy / Department of Economics / Steven P. Cassou / Although geographic proximity is not enough to imply similar social, political and economic outcomes, the Portuguese and Spanish development experiences have been quite alike since the 15th century and in particular during the post-WWII period. Since 1950, both countries went through significant market transformations, ranging from democratization to market liberalization and adhesion to the European Union. However, even today, these economies, and in particular Portugal, do not rival those of the more developed European countries. This dissertation contributes to the growing body of literature on the Iberian economies by presenting three essays that employ modern macroeconomics tools to further our understanding about the growth and development experiences of these countries. The first essay provides a detailed growth accounting exercise and reconciles the results with the political and socioeconomic context of the 1950-2004 period. Since Total Factor Productivity is identified as the main engine of growth, the second essay explores a quantitative measure for the level of barriers that each country faced in the process of adopting new technologies. The numerical experiments suggest that Spain had consistently lower barriers than Portugal and that the gap has been increasing since the establishment of the European Single Market. The last essay investigates the role of fiscal policy and, specifically, if distortionary taxes on capital and labor income may have been a key factor behind the observed volatility for factor inputs. The simulation results derived from several potential scenarios support this conjuncture. Additionally, the last essay contributes by offering a time series for the levels of effective tax rates on labor and capital income in the Iberian economies over the 1975-2004 period.

Master of Agribusiness / Department of Agricultural Economics / Vincent R. Amanor-Boadu / Biofuels such as ethanol and biodiesel are looked upon as the future source of alternative energy. These biofuels will supplement the needs of the ever increasing demand for fuel. Bio-energy feedstock is in high demand and current bio-crude oil prices such as soybeans and palm oil are higher than fossil fuel crude oil prices. Unless the price of fossil fuel crude oil increases beyond that, it would not be economically viable to produce biofuels from these feedstock. Jatropha curcas has been touted as the future of biodiesel. The seeds from the Jatropha curcas are crushed and processed using transesterification. The product of the chemical reaction results in bio-oil and glycerin. The objective of this paper is to study the economics of Jatropha curcas as an alternative bio-energy feedstock. Comparisons are done on Jatropha curcas oil, soybean oil, and palm oil. The Jatropha curcas industry is at its infancy, and crude Jatropha curcas oil is either not available in the open market or extremely difficult to find in any significant amount. However, soybean oil and crude palm oil are traded commodities and their prices are dependent on their demand and supply pressures. Given these conditions, the approach adopted here involved the establishment of a vertically integrated company that grows and harvests the Jatropha curcas feedstock and crushes the seeds to obtain the crude oil, and finally processes it to obtain biodiesel and glycerin. The financial analysis provided results that indicate that the Jatropha curcas has the potential to be a successful feedstock. The conclusion after conducting net present value comparisons shows that the price per kilogram of the Jatropha curcas seed would be the determining factor in the success of this bio-fuel feedstock. As more work goes into the genetic selection of Jatropha curcas for high yield varieties, the feedstock’s potential increases and its potential as a solution to the search for the competitive sources of biodiesel becomes more real.

Master of Agribusiness / Department of Agricultural Economics / Vincent R. Amanor-Boadu / Many small communities in the Alps are facing the same problem of ensuring a durable economic development, protecting their natural resources and preserving their traditions under the constraints of higher production costs, distance from markets, isolation, severity of climate, a lower level of public services. This is the situation faced by Bagolino, a small town of roughly 4,000 inhabitants located in the Italian Alps. One of the major supporters to the growth of Bagolino, along with tourism, is its cheese Bagòss , whose origin dates back centuries. The Bagòss cheese is a semi-cooked cheese that is produced under strict processing methods that have been practiced for centuries. The Bagòss industry, with its unique organizational system, challenges researchers to investigate what factors are decisive in explaining its success. It is an example of a common situation in the Alps whose products arise from history, traditions and natural environment. This research aims to explain which factors influence the production of the Bagòss cheese and which factors explain differences among producers. Various aspects of interest of the Bagòss industry were examined through a literature review: social and economic situation of Bagolino and history of the town helped to get a better understanding of the background of the industry. The review of literature about entrepreneurship and supply chain was aimed to get a better understanding of the Bagòss industry organization; whereas theories about rural development and sustainable development described the social and environmental context of this production. Last the review of the main economic theories helped to analyze the Bagòss industry from the economic perspectives: monopolistic competition and the resource based view of the firm. Data were collected from multiple sources; the main source of data was a survey of farmers that involved all Bagòss producers. Data from administrative source were important for revision and also furnished data that could not be obtained from farmers. Qualitative interviews with experts were important for checking purposes and for understanding of the social and economic environment in which the Bagòss production takes place. Analytical tools of this thesis were of three different types: qualitative data used mainly to describe the growth medium of Bagòss and to formulate hypotheses to be tested with an econometric model. Statistical analysis provides a complete description of the industry. The Bagòss industry is not characterized by highly diversified use of the land: summer pastures, long term meadows and forests are the three main categories of the use of land. Almost all labor force is made up of family members and relatives. There are a total of 657 adult milking cows involved in the Bagòss production, with an average of 24.33 cows per farm; most farmers process all or part of their cow milk. The main product is the Bagòss cheese. We estimated the production at 146.5 tons of Bagòss. 69% of Bagòss is sold after aging for less than a year. In terms of marketing the most important channels are Bagolino’s retailers, consumers buying directly and retailers located outside Bagolino. According to our estimates EBITDA equals to 1,388 thousand Euro, an average of more than 55 thousand euro per farm. Two factors are able to explain most of the variability in the milk production: the number of workdays in the farm and the total cost of purchased feed. The EBITDA / tons of milk ratio is an indicator of the farm efficiency: the explanatory model for this is based on the operator’s age and level of education, the percentage of Bagòss sold after aging for one year or more, the percentage of Bagòss sold by direct sale to consumers and the size of the herd. Finally, a model able to explain the variability of the EBITDA / work days ratio was built; this ratio is considered to be an indicator of the labor productivity. This model is based on the percentage of Bagòss sold after aging for one year or more, the percentage of Bagòss sold to restaurants and hotels, the total milk production and the cost of rent of pastures. The first three have a positive impact on the dependent variable, whereas the fourth has a negative impact. The last two models show that small farms tend to be less efficient in their use of resources, and also less efficient in the use of labor.

Doctor of Philosophy / Department of Economics / Dennis L. Weisman / Mandatory network unbundling is one of the foremost topics in regulatory economics today. The concept has crucial importance in the deregulation of many previously regulated industries including telecommunications, gas, electricity and railroads. Moreover, the topic has emerged as one of the more prominent issues associated with the implementation of the 1996 Telecommunication Act in the United States. Upon initial examination, establishing the correct costing standards and/or determining the correct input prices would seem important for sending the correct price signals to the entrants for their efficient make-or-buy decisions. Sappington (AER, 2005) uses a standard Hotelling location model to show that input prices are irrelevant for an entrant’s make or buy decision. In this first essay, we show that this result is closely related to the degree of product differentiation when firms are engaged in price competition. Specifically, it is shown that input prices are irrelevant when firms produce homogeneous products, but are relevant for make-or-buy decisions when the entrant and incumbent produce differentiated products. These results suggest that, in general, it is important for regulators to set correct prices in order to not distort the entrants’ efficient make-or-buy decisions. The second essay investigates optimal access charges when the downstream markets are imperfectly competitive. Optimal access charges have been examined in the literature mainly under the condition where only the incumbent has market power. However, network industries tend to exhibit an oligopolistic market structure. Therefore, the optimal access charge under imperfect competition is an important consideration when regulators determine access charges. This essay investigates some general principles for setting optimal access charges when downstream markets are imperfectly competitive. One of the primary objectives of this essay is to show the importance of the break-even constraint when first-best access charges are not feasible. Specifically, we show that when the first-best access charges are not feasible, the imposition of the break-even constraint on only the upstream profit of the incumbent is superior to the case where break-even constraint applies to overall incumbent profit, where the latter is the most commonly used constraint in the access pricing literature. Bypass and its implications for optimal access charges and welfare are also explored. The third essay is empirical in nature and investigates two primary issues, both relating to unbundled network element (UNE) prices. First, as Crandall, Ingraham, and Singer (2004) suggested, we will empirically test the stepping stone hypothesis using a state-level data set that spans multiple years. To do this, we will explore the effect of UNE prices on facilities-based entry. Second, in light of those findings, we will investigate whether the form of regulation (e.g. price cap and rate of return regulation) endogenously affects the regulator’s behavior with respect to competitive entry. Lehman and Weisman (2000) found evidence that regulators in price cap jurisdictions tend to set more liberal terms of entry in comparison with regulators in rate-of-return jurisdictions. This paper investigates whether their result is robust to various changes in modeling, including specification and econometric techniques.

Master of Agribusiness / Department of Agricultural Economics / Subramanyam Bhadriraju / Environmental concerns are growing as new information is being discovered as to what is harmful to the environment. The desire to help the environment along with improving fumigations is a big concern and effects many people. Ongoing research to improve fumigations without harming the environment has shown great promise in advancing technology and lowering the cost in protecting commodities consumed by the consumer. Methyl Bromide (MB) has been the major fumigant used to control stored-product insects for many commodities for many years. There has been a lot of concern surrounding MB because of health and environmental drawbacks. These concerns have caused MB to be reduced by 2005. With the total phase out of MB becoming critical, there is much anticipation as what will be the alternative(s). The research presented in this thesis describes two different and very effective methods of controlling stored product insects. Although there are many other methods of fumigating this thesis analyzes two forms; Sulfuryl Fluoride and Heat. The first presented alternative in this paper will be heat treatments. It has the attraction that chemical forms of treatments do not have by having pesticide-free products. The total cost of heat fumigation depends on the complexity of the lay-out/structure and the cost heaters and electricity. This cost can range anywhere from $15,000-25,000. The second alternative that will be discussed is sulfuryl fluoride. This fumigant has many positive aspects that counter act the negative aspects that have been a concern with methyl bromide treatments. These positive aspects include environmentally safe and fast off-gassing. Sulfuryl fluoride is also very efficacious with stored product insects. The labor costs per job, ProFume shows a cost of about $216.00 less than that of a methyl bromide treatment.

Whole document restricted, see Access Instructions file below for details of how to access the print copy. Subscription resource available via Digital Dissertations / My research question is: Why do countries with similar rates of saving differ in economic growth? My thesis addresses this question by formulating an endogenous growth model using the Cobb-Douglas production function. My model disaggregates the rate of saving into the retention ratio and the household saving ratio and connects these ratios with three new parameters representing respectively the efficiency of financial institutions, the decision-making of managers, and barriers to technology diffusion. These three financial parameters make it possible to distinguish between quantitative and qualitative investments and to measure the growth rates of output, capital, and technological progress. Endogenous growth in technology neutralizes diminishing returns to capital. The Cobb-Douglas production function assumes diminishing marginal productivity under constant returns to scale. My model, however, measures the growth rate of per capita output under the balanced growth state/constant returns to capital situation. This situation is guaranteed when the relative share of profit is within the critical relative share of profit. A set of combination of the three financial parameters holds under diminishing returns to capital, yet the diminishing returns to capital situation turns to the balanced growth state situation by using delta defined as the elasticity of quality improvement with respect to effective labour units attached to a machine. An extreme case corresponds with the Solow and O'Connell (including Harrod-Domar) models, where the three financial parameters are all 1.0, with no technological progress. Simulation results demonstrate several new fact-findings. These fact-findings come from the characteristics of my model or the relationships between the growth rate of “per capita” output in the long-run (hereunder the growth rate) and the three financial parameters and delta, where the growth rate converges by setting delta = the relative share of profit. First, if the rate of saving increases, the growth rate also increases linearly. This is more definitely evident than the result of Mankiw, Romer, and Weil [1992]. Second, under a fixed rate of saving, the growth rate changes significantly differently if each of three parameters changes: the relative share of profit, the growth rate of population, and the retention ratio. In particular, the change in the retention ratio influences the growth rate positively or negatively depending on the relationship between the three financial parameters that reflect corporate behaviour and the nature of financial institutions. In this respect, I cannot find literature that relates the retention ratio or dividend policy to the growth rate in the Cobb-Douglas production function. Also the change in the growth rate of population does not influence per capita growth at all. This finding is also more definite than that found in the literature. In short, the three financial parameters play an important role in economic growth. When we divide saving into corporate saving and household saving, the rate of saving as a whole is not independent of the growth rate. A proportion of corporate saving and a proportion of household saving are used for investment in quality, which accelerates productivity enhancement. Consequently, the characteristics of the corporate sectors and financial institutions of a country play a significant role in determining its long run growth rate of per capita income (even under a fixed rate of saving).

Whole document restricted, see Access Instructions file below for details of how to access the print copy. Subscription resource available via Digital Dissertations / My research question is: Why do countries with similar rates of saving differ in economic growth? My thesis addresses this question by formulating an endogenous growth model using the Cobb-Douglas production function. My model disaggregates the rate of saving into the retention ratio and the household saving ratio and connects these ratios with three new parameters representing respectively the efficiency of financial institutions, the decision-making of managers, and barriers to technology diffusion. These three financial parameters make it possible to distinguish between quantitative and qualitative investments and to measure the growth rates of output, capital, and technological progress. Endogenous growth in technology neutralizes diminishing returns to capital. The Cobb-Douglas production function assumes diminishing marginal productivity under constant returns to scale. My model, however, measures the growth rate of per capita output under the balanced growth state/constant returns to capital situation. This situation is guaranteed when the relative share of profit is within the critical relative share of profit. A set of combination of the three financial parameters holds under diminishing returns to capital, yet the diminishing returns to capital situation turns to the balanced growth state situation by using delta defined as the elasticity of quality improvement with respect to effective labour units attached to a machine. An extreme case corresponds with the Solow and O'Connell (including Harrod-Domar) models, where the three financial parameters are all 1.0, with no technological progress. Simulation results demonstrate several new fact-findings. These fact-findings come from the characteristics of my model or the relationships between the growth rate of “per capita” output in the long-run (hereunder the growth rate) and the three financial parameters and delta, where the growth rate converges by setting delta = the relative share of profit. First, if the rate of saving increases, the growth rate also increases linearly. This is more definitely evident than the result of Mankiw, Romer, and Weil [1992]. Second, under a fixed rate of saving, the growth rate changes significantly differently if each of three parameters changes: the relative share of profit, the growth rate of population, and the retention ratio. In particular, the change in the retention ratio influences the growth rate positively or negatively depending on the relationship between the three financial parameters that reflect corporate behaviour and the nature of financial institutions. In this respect, I cannot find literature that relates the retention ratio or dividend policy to the growth rate in the Cobb-Douglas production function. Also the change in the growth rate of population does not influence per capita growth at all. This finding is also more definite than that found in the literature. In short, the three financial parameters play an important role in economic growth. When we divide saving into corporate saving and household saving, the rate of saving as a whole is not independent of the growth rate. A proportion of corporate saving and a proportion of household saving are used for investment in quality, which accelerates productivity enhancement. Consequently, the characteristics of the corporate sectors and financial institutions of a country play a significant role in determining its long run growth rate of per capita income (even under a fixed rate of saving).

Whole document restricted, see Access Instructions file below for details of how to access the print copy. Subscription resource available via Digital Dissertations / My research question is: Why do countries with similar rates of saving differ in economic growth? My thesis addresses this question by formulating an endogenous growth model using the Cobb-Douglas production function. My model disaggregates the rate of saving into the retention ratio and the household saving ratio and connects these ratios with three new parameters representing respectively the efficiency of financial institutions, the decision-making of managers, and barriers to technology diffusion. These three financial parameters make it possible to distinguish between quantitative and qualitative investments and to measure the growth rates of output, capital, and technological progress. Endogenous growth in technology neutralizes diminishing returns to capital. The Cobb-Douglas production function assumes diminishing marginal productivity under constant returns to scale. My model, however, measures the growth rate of per capita output under the balanced growth state/constant returns to capital situation. This situation is guaranteed when the relative share of profit is within the critical relative share of profit. A set of combination of the three financial parameters holds under diminishing returns to capital, yet the diminishing returns to capital situation turns to the balanced growth state situation by using delta defined as the elasticity of quality improvement with respect to effective labour units attached to a machine. An extreme case corresponds with the Solow and O'Connell (including Harrod-Domar) models, where the three financial parameters are all 1.0, with no technological progress. Simulation results demonstrate several new fact-findings. These fact-findings come from the characteristics of my model or the relationships between the growth rate of “per capita” output in the long-run (hereunder the growth rate) and the three financial parameters and delta, where the growth rate converges by setting delta = the relative share of profit. First, if the rate of saving increases, the growth rate also increases linearly. This is more definitely evident than the result of Mankiw, Romer, and Weil [1992]. Second, under a fixed rate of saving, the growth rate changes significantly differently if each of three parameters changes: the relative share of profit, the growth rate of population, and the retention ratio. In particular, the change in the retention ratio influences the growth rate positively or negatively depending on the relationship between the three financial parameters that reflect corporate behaviour and the nature of financial institutions. In this respect, I cannot find literature that relates the retention ratio or dividend policy to the growth rate in the Cobb-Douglas production function. Also the change in the growth rate of population does not influence per capita growth at all. This finding is also more definite than that found in the literature. In short, the three financial parameters play an important role in economic growth. When we divide saving into corporate saving and household saving, the rate of saving as a whole is not independent of the growth rate. A proportion of corporate saving and a proportion of household saving are used for investment in quality, which accelerates productivity enhancement. Consequently, the characteristics of the corporate sectors and financial institutions of a country play a significant role in determining its long run growth rate of per capita income (even under a fixed rate of saving).

Whole document restricted, see Access Instructions file below for details of how to access the print copy. Subscription resource available via Digital Dissertations / My research question is: Why do countries with similar rates of saving differ in economic growth? My thesis addresses this question by formulating an endogenous growth model using the Cobb-Douglas production function. My model disaggregates the rate of saving into the retention ratio and the household saving ratio and connects these ratios with three new parameters representing respectively the efficiency of financial institutions, the decision-making of managers, and barriers to technology diffusion. These three financial parameters make it possible to distinguish between quantitative and qualitative investments and to measure the growth rates of output, capital, and technological progress. Endogenous growth in technology neutralizes diminishing returns to capital. The Cobb-Douglas production function assumes diminishing marginal productivity under constant returns to scale. My model, however, measures the growth rate of per capita output under the balanced growth state/constant returns to capital situation. This situation is guaranteed when the relative share of profit is within the critical relative share of profit. A set of combination of the three financial parameters holds under diminishing returns to capital, yet the diminishing returns to capital situation turns to the balanced growth state situation by using delta defined as the elasticity of quality improvement with respect to effective labour units attached to a machine. An extreme case corresponds with the Solow and O'Connell (including Harrod-Domar) models, where the three financial parameters are all 1.0, with no technological progress. Simulation results demonstrate several new fact-findings. These fact-findings come from the characteristics of my model or the relationships between the growth rate of “per capita” output in the long-run (hereunder the growth rate) and the three financial parameters and delta, where the growth rate converges by setting delta = the relative share of profit. First, if the rate of saving increases, the growth rate also increases linearly. This is more definitely evident than the result of Mankiw, Romer, and Weil [1992]. Second, under a fixed rate of saving, the growth rate changes significantly differently if each of three parameters changes: the relative share of profit, the growth rate of population, and the retention ratio. In particular, the change in the retention ratio influences the growth rate positively or negatively depending on the relationship between the three financial parameters that reflect corporate behaviour and the nature of financial institutions. In this respect, I cannot find literature that relates the retention ratio or dividend policy to the growth rate in the Cobb-Douglas production function. Also the change in the growth rate of population does not influence per capita growth at all. This finding is also more definite than that found in the literature. In short, the three financial parameters play an important role in economic growth. When we divide saving into corporate saving and household saving, the rate of saving as a whole is not independent of the growth rate. A proportion of corporate saving and a proportion of household saving are used for investment in quality, which accelerates productivity enhancement. Consequently, the characteristics of the corporate sectors and financial institutions of a country play a significant role in determining its long run growth rate of per capita income (even under a fixed rate of saving).