What is the relationship between networks and unit-level outcomes, such as the international trade network among states and domestic rule of law or repression? Do these effects hold after accounting for actors' strategic selection of network ties? I explore these questions by building a multi-player game, in which players make two simultaneous decisions: (1) whether to form trade links and with who, and (2) whether to increase their trade benefits by improving their type, associated with the level of domestic economic risk factors. The model predicts an endogenous relationship between the number of direct trade partners and the probability of playing High Type: High Type states have more direct trade partners, and the number of trade partners has a positive effect on the probability of choosing High Type. A state's type is also affected by indirect trade connections--counter-intuitively, indirect trade has a negative effect on the probability of choosing High Type. In Chapters 3 and 4, I test the general predictions of the theoretical model, by applying them to two distinct areas of international research. In Chapter 3, I conceptualize a state's type as the level of domestic rule of law enforcement. States with strong rule of law enforcement are regarded as High Type states, because they guarantee lower cost of operations within their borders, by enforcing property rights and contractual law. Weak rule of law states, on the other hand, can be thought of as Low Type states, as business operations within such states are constantly threatened by a risk of expropriations, inefficiencies associated with corruption within the judicial system, and other manifestations of poor business practices. In Chapter 4, I recast the theoretical model by showing how a state's type can be conceptualized as a state's domestic respect for human rights. Highlighting the economic costs of repression, such as higher economic risk, negative publicity, and decreased quality of human capital, I argue that these costs are suffered by both the domestic economic elites and their international business partners. These business elites can, however, alleviate their losses resulting from such costs by either pressuring their government to embrace stronger human rights protections or, when this option is unavailable, by setting up channels for indirect economic transactions through states with more favorable political environments. To test each Chapter's empirical predictions, model the simultaneity between network formation and effect, using a statistical estimator developed by Ripley, Snijders, and Preciado (2012). This statistical estimator, referred to as a continuous Markov Chain exponential random graph model (MC ERGM), allows for a close mimicking of the theoretical model by simultaneously modeling two dependent variables: network formation and its effect on actors' behavior. The results of the statistical tests provide some support the theoretical predictions.

Using a three-essay approach, I focus on two issues related to the labor market: the effect of changes in regulatory costs on informal sector employment, and the role of endogeneity in the relationship between education and earnings. In the first essay, I analyze the implications of regulatory costs on skill-based wage differences and informal sector employment. I use a two sector matching model with exogenous skill types for workers where firms have sector-specific costs and workers have sector-specific bargaining power. In general, there are multiple equilibria possible for this model. I focus on the equilibrium that best resembles the situation in the developing countries of sub-Saharan Africa and southern Asia. My results show that government policies which reduce regulatory costs decrease unemployment, earnings inequality, and the fraction of skilled workers in the informal sector. The different types of regulatory costs affect the skill premium differently and non-monotonically. In the second essay, I test the hypothesis of linearity in returns to education in the Mincer regression with endogenous schooling and earnings. I estimate the marginal rate of return to education using a polynomial model and a semiparametric partial linear model based on the standard Mincer regression. To perform the analysis, I use a control function approach for IV estimation with spousal and parental education as instruments. Results suggest that estimates not accounting for endogeneity understate returns at the tails of the education spectrum and overstate returns for education levels between middle-school and college. In the third essay, I empirically test the claim of Mookherjee and Ray (2010), based on a theoretical model of skill complexity, that "the return to human capital is endogenously nonconcave." I estimate the functional form of returns to education for India using a semiparametric partial linear model based on the standard Mincer regression. Marginal returns are estimated to test the nonconcavity of the functional form under both exogenous and endogenous schooling assumptions. My results show that the marginal rate of return declines during primary education and increases until high school, followed by stable returns for college and higher studies. However, the test of robustness of the functional form based on uniform confidence bands fails to reject the presence of nonconcavity in returns to education for India. This lends support to the claim of Mookherjee and Ray (2010).

The primary purpose of this study is to assess the extent to which educational expectations contribute to educational attainment for different subgroups of youth using a model of educational attainment that draws from two theoretical frameworks – status attainment theory and the expectancy-value theory of achievement motivation. This combined model of educational attainment posits that certain factors contribute to attainment, including SES, achievement, self-concept of ability, educational values, and educational expectations. A within-subject fixed-effects approach is used in all of the models tested to address issues of endogeneity. Empirical findings suggest that expectations may not influence attainment for African American youth and youth from low-SES families. In the present study, the relations of expectations for attending college to the amount of education attained are investigated for African American and White youth and for youth from high and low SES backgrounds. Although there is no evidence suggesting that expectations contribute to attainment differently for males and females, research suggests that the link between achievement and self-concept of ability may differ by gender. Overall, the data support the hypotheses that: a) educational expectations predict educational attainment for each subgroup assessed; and b) educational values and self-concept of ability are precursors of this relation. However, the association between achievement and self-concept of ability is not statistically different for males and females. The results of this study suggest that expectations are important for attainment irrespective of race, socio-economic status, and gender differences. Because such similarities have not previously been reported in the literature, this study makes a unique contribution and may serve as a guide for future investigation. / text

This dissertation work provides a kaleidoscope of alternative empirical estimation techniques while illuminating and challenging conventional approaches and established findings in the Corporate Finance literature. In particular, the observed „conglomerate discount“ and the effect of diversication and concentrated ownership on firm value are revisited in the course of my cumulated doctoral thesis. In doing so, the main emphasis lies on the inference of causation in the presence of endogeneity concerns, namely by considering potential distortions caused by unobserved heterogeneity, reverse causality or non-random self-selection.

Motor vehicle crashes have increasingly become a serious concern for highway safety engineers and transportation agencies over the past few decades. This serious concern has led to a great deal of research activities. One of these activities is to develop safety analysis tools, specifically crash prediction models, for the purpose of reducing crashes and enhancing highway safety.Crash prediction models based on statistical or econometric modeling techniques are used for a variety of purposes; most commonly to estimate the expected crash frequencies from various roadway entities (highways, intersections, interstates, etc.) and also to identify geometric, environmental, and operations factors that are associated with crashes. A comprehensive review of prior literature indicates that many researchers have mainly focused on the development of aggregate crash prediction models based on single equation estimation techniques to identify the influences of geometric, environmental, and traffic variables on a single counted outcome. In some cases, however, more than one dependent variable might be of interest and hence several equations are formulated at the same time. Such a multiple equation structure may require simultaneous (or joint) estimation techniques under some situations.This dissertation research develops simultaneous estimation approaches to account for contemporaneous correlation and endogeneity problems in crash data. Specifically, seemingly unrelated negative binomial models and simultaneous equation models are developed to account for contemporaneous correlation between the disturbance terms across crash type models and to control for the endogenous relationship between the presence of left-turn lanes and angle crashes.Modeling crash types may provide certain advantages to gain insights as to 1) identification of high-risk sites with respect to specific types of crashes, which is not revealed through crash totals, and 2) the differences between conditions that lead to various crash types, but the disturbance terms across crash types might be contemporaneously correlated due to the unobserved common characteristics. Therefore, individual and simultaneous crash type models were estimated and the results of both models were compared. The results showed that a simultaneous estimation approach provides more efficient estimators relative to a single equation estimation technique.The presence of left-turn lanes has been treated as exogenous in crash prediction models, but in fact they are affecting each other. The bi-directional relationship between left-turn lanes and crashes results in endogeneity. This research investigated the endogenous relationship between left-turn lanes and crashes and developed simultaneous equation models to control for the endogeneity. The findings indicated that the presence of left-turn lanes is endogenously associated with crashes and the real effect of left-turn lanes on crashes can be obtained by controlling for endogeneity.

This thesis investigates the role of classmates in the academic achievement of an individual student. I propose a new strategy to identify ability spillovers and combine this strategy with a unique data set to estimate peer effects in education. Using this innovative approach, I quantify the average effect of peers on own academic achievement in middle school and analyze heterogeneity of own response to peers along ability and gender lines. In Chapter 1, I provide a comprehensive empirical analysis of linear-in-means model of peer interactions and estimate the effect of the average quality of peers on academic progress of six-graders in Ontario public schools. I provide convincing evidence of the validity of my identification strategy and show that the average quality of classmates measured by their lagged test scores matters for individual academic achievement. I find positive, large and significant ability spillovers from peers in the same classroom. To reconcile the broad spectrum of peer effect's estimates in the literature, I also investigate the impact of peers in the same school and grade. I show that once a peer group is aggregated to a grade or class level, the effect attenuates towards zero. In Chapter 2, I relax the main assumption of linear-in-means model and compare alternative models of peer interactions with the empirical results from the first chapter. My findings imply that all students unambiguously benefit from the presence of high achieving peers. At the same time, academic progress of high-achievers does not suffer from the presence of low-achieving classmates. This finding provides important policy implications for ability grouping of students in schools. With the help of a policy experiment I demonstrate that spreading out high ability students across classrooms is an efficient strategy to increase the achievement level of every student. In the third chapter, I introduce gender dimension into the analysis of peer effects and investigate the role of class gender composition on individual academic achievement. I employ two different identification strategies and find that large share of girls in a class facilitates academic progress of both boys and girls. While he average quality of girls is one of the determinants of own achievement, peer-to-peer interactions and improved discipline in a classroom, when more girls are present, also play an important role.

<p>This study sought to investigate the alleged problem of &lsquo / academic dependency&rsquo / , on the part of South African sociologists, on western scholarship. The stated problem is said to undermine South African sociologists&rsquo / ability to set their own intellectual and epistemological agenda. Sociology in South Africa is characterised by two issues: &lsquo / negations&rsquo / and theoretical &lsquo / extraversion&rsquo / . In the light of the foregoing claim, the study sought to investigate the underlying epistemological features of sociology curriculum in one of the South African universities. In investigating these issues, the thesis relies on the notion of &lsquo / authentic interlocutors&rsquo / put forward by Archie Mafeje. Literature on transformation of the social sciences in (South) Africa was reviewed. Methodologically, the study assumes a qualitative approach. In order comprehensively to understand the problem under investigation, in-depth interviews were conducted along with a review of course outlines of the selected department of sociology / these, in turn, were subjected to content analysis. Interviewees included, respectively, academic members of staff and postgraduate students. The study concludes by highlighting the &lsquo / ontological disconnect&rsquo / , on the part of South African sociologists, not only with their immediate environment but the rest of the African continent. In maintaining this view, it argues that their ontological and epistemological standpoints only succeed in highlighting their cultural affinity with Euro-American perspectives. The said ontological disconnect and cultural affinity, it is argued, lead to extraverted curricula.</p>

<p>This study sought to investigate the alleged problem of &lsquo / academic dependency&rsquo / , on the part of South African sociologists, on western scholarship. The stated problem is said to undermine South African sociologists&rsquo / ability to set their own intellectual and epistemological agenda. Sociology in South Africa is characterised by two issues: &lsquo / negations&rsquo / and theoretical &lsquo / extraversion&rsquo / . In the light of the foregoing claim, the study sought to investigate the underlying epistemological features of sociology curriculum in one of the South African universities. In investigating these issues, the thesis relies on the notion of &lsquo / authentic interlocutors&rsquo / put forward by Archie Mafeje. Literature on transformation of the social sciences in (South) Africa was reviewed. Methodologically, the study assumes a qualitative approach. In order comprehensively to understand the problem under investigation, in-depth interviews were conducted along with a review of course outlines of the selected department of sociology / these, in turn, were subjected to content analysis. Interviewees included, respectively, academic members of staff and postgraduate students. The study concludes by highlighting the &lsquo / ontological disconnect&rsquo / , on the part of South African sociologists, not only with their immediate environment but the rest of the African continent. In maintaining this view, it argues that their ontological and epistemological standpoints only succeed in highlighting their cultural affinity with Euro-American perspectives. The said ontological disconnect and cultural affinity, it is argued, lead to extraverted curricula.</p>

This thesis investigates the role of classmates in the academic achievement of an individual student. I propose a new strategy to identify ability spillovers and combine this strategy with a unique data set to estimate peer effects in education. Using this innovative approach, I quantify the average effect of peers on own academic achievement in middle school and analyze heterogeneity of own response to peers along ability and gender lines. In Chapter 1, I provide a comprehensive empirical analysis of linear-in-means model of peer interactions and estimate the effect of the average quality of peers on academic progress of six-graders in Ontario public schools. I provide convincing evidence of the validity of my identification strategy and show that the average quality of classmates measured by their lagged test scores matters for individual academic achievement. I find positive, large and significant ability spillovers from peers in the same classroom. To reconcile the broad spectrum of peer effect's estimates in the literature, I also investigate the impact of peers in the same school and grade. I show that once a peer group is aggregated to a grade or class level, the effect attenuates towards zero. In Chapter 2, I relax the main assumption of linear-in-means model and compare alternative models of peer interactions with the empirical results from the first chapter. My findings imply that all students unambiguously benefit from the presence of high achieving peers. At the same time, academic progress of high-achievers does not suffer from the presence of low-achieving classmates. This finding provides important policy implications for ability grouping of students in schools. With the help of a policy experiment I demonstrate that spreading out high ability students across classrooms is an efficient strategy to increase the achievement level of every student. In the third chapter, I introduce gender dimension into the analysis of peer effects and investigate the role of class gender composition on individual academic achievement. I employ two different identification strategies and find that large share of girls in a class facilitates academic progress of both boys and girls. While he average quality of girls is one of the determinants of own achievement, peer-to-peer interactions and improved discipline in a classroom, when more girls are present, also play an important role.

This dissertation examines two main research questions: Why do firms deviate from their predicted level of toxic emissions, and how do these differences relate to financial performance? The objective is threefold: (1) to understand deviation in corporate environmental performance by looking at both industry and firm level variables, (2) to see how this deviation relates to both profitability and fluctuations in financial performance, and (3) to see if, and how, corporate environmental legitimacy affects the relationship between corporate environmental deviation and corporate financial performance. To achieve this objective the construct “corporate environmental performance deviation” is developed. It is defined as the extent to which a firm’s environmental performance deviates from its predicted performance, and is used to capture within-firm strategic choices in environmental management. Predicted environmental performance is calculated based on certain firm characteristics such as size and industry. Actual environmental performance is calculated using a weighted score of air emissions obtained from the Toxic Release Inventory (TRI) database. The difference between these two values represents a corporation’s environmental performance deviation. Corporate environmental performance deviation focuses on strategic choices related to environmental management, while recognizing that environmental management is the result of both institutional pressures and within-firm strategic decisions. Aligned with this focus, variables 2 related to this strategic choice are used to explain deviation in environmental management, including an environmental integration capability, firm strategy, and industry munificence and dynamism. Associated with the internal and external organizational analysis, institutional theory and the resource-based view (RBV) are used to explore the tension between deviation to increase competitiveness versus isomorphism to attain legitimacy. The sample is composed of 311 U.S. firms who have reported their toxic air releases to the TRI from 1998-2007. The sample is broken down into two subsets, those that exceed (positive deviation) or fail to meet (negative deviation) predicted environmental performance. Results of a longitudinal analysis show that positive environmental deviation is related to a greater capacity to strategically integrate environmental issues into a firm’s existing business approach, less munificence and dynamism in the task environment, and reduced financial fluctuations. Negative environmental deviation is decreased through a demonstrated capacity to strategically integrate environmental issues into a firm’s existing strategic approach, and related to greater munificence and dynamism in the task environment, reduced profitability and increased financial fluctuations. Lastly, although there are no significant main effects for corporate environmental legitimacy, the paradoxical combination of negative deviation and environmental legitimacy can reduce the severity of the negative financial results to negative deviation, both in terms of profitability and financial fluctuations.