Legacy Theses and Dissertations (1940-2009)
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This collection gathers digitized University of Houston theses and dissertations dating from 1940.
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Item A comparison of the workmen's compensation laws in the United States, 1939(1940) Harrison, Barbara CookeFor some twenty-five years the people of the United States have known of the menace of industrial accidents and diseases, but, prior to 1925, little was said or done on the subject. [...]Item A study of certain aspects of the productivity of industrial labor in independent India(1969) Bright, Jay B.; DeGregori, Thomas R.; Steele, Henry B.; Scofield, Robert W.; Zingler, Ervin K.The economic problem faced by the mass of mankind for most of world's history has been that of bare subsistence. The spread of sustained material prosperity for entire populations is indeed a very recent phenomenon; it has occured in a few countries in the past couple of centuries, and can most simply be explained in terms' of the accelarated growth of technology (the state of industrial arts, or 'organized skill' as Ayres has defined it) and industrialization. Can industrialization be transplanted from an industrially advanced country on to an industrially underdeveloped country with any hope of an immediate successful adoption? How does a mostly illiterate industrial labor force perform over time? These questions have been of increasing interest to students of economics of underdevelopment. While this dissertation does not attempt to discover the 'final answers' to the above questions, it examines the changes in the productivity of industrial labor over time in recent years for India - a truly underdeveloped country in terms of real per capita income and literacy rates. This dissertation tests the following hypothesis: 'A young and inexperienced labor force, without a prolonged industrial learning process behind it, has been reponsible for India's failure during its two initial plans of economic development to achieve an economic breakthrough by means of an industrial revolution'. To test this hypothesis, one phase of the investigation examined the rate of change in the productivity of industrial labor in recent years for two Indian industries - one of these being a well established industry (the cotton textile industry) and another an infant industry (the motor vehicle industry). A similar study was conducted for the two corresponding British industries, the difference being that in Britain's case, both industries are well established. On comparing the slopes of productivity trends for the Indian and the British cotton industries, it was found that the trend slope for the latter was greater. This finding supported the hypothesis since the labor in the British cotton industry has had a longer exposure to industrial learning processes relative to the Indian industry, and hence has a steeper trend (assuming other factors affecting productivity constant). A similar comparison between British Kotor and British cotton industries showed a significant difference between their trend values - a finding contrary to what the hypothesis would require since both industries are well established in Britain. Another phase of the investigation correlated productivity of industrial labor in India with the intensity of physical investment and found that there was positive but low correlation between the two variables. Finally, productivity and age-ranks of certain industries in both countries were correlated, and it was found that there existed a negative correlation between these. This finding does not support the hypothesis. The overall conclusion of this dissertation is that the period of subjection of the total labor force to industrial learning processes is not the critical reason for lower industrial productivity in India; factors such as management, entrepreneurship, attitudes of workers and labor unions, and the like may, in the aggregate, outweigh the influence of industrial learning processes on the productivity of industrial labor.Item A study of cost versus marginal cost pricing of proposals to government agencies and their impact on contract award and performance(1972) Sternenberg, Robert E.; Sailors, Joel W.; Elrod, John T.; Steele, Henry B.; Zingler, Ervin K.The contractors at the Manned Spacecraft Center face unique problems in pricing their goods and services: complex, multi-year procurements with sophisticated hardware requirements and limited, sometimes one-of-kind production. Not only must they deal with a government agency--the National Aeronautics and Space Administration--subject to procurement regulations and congressional scrutiny; but in addition, they must satisfy their own company policies and goals. The predominant method contractors have been using to propose to NASA is full average cost pricing. As a rule, all of the major contractors who support MSC in Houston hold cost-reimbursement contracts with costs established by spreading common costs for their respective operations over an estimated base cost-- usually labor. This has been a successful way of pricing proposals. But today, the economic environment at MSC has changed. Downturn conditions now exist: smaller budgets, fewer awards, and consolidation of contracts. This study suggests that marginal cost pricing may be a possible life-line for Houston contractors who wish to survive the uncertain future of the Manned Spacecraft Center; indeed for any company who contracts with a government agency during a time of adverse market conditions. A workable concept of marginal pricing first had to be established by reviewing available literature on marginalism-- what it is; how it has been used by other industries; and how successful it has been in non-government situations. Secondly, the market at MSC had to be analyzed as to what the aerospace industry is; what NASA requires as a buyer; how NASA's rules and regulations affect its procurement process; and what influential economic factors exist. To compile this research, reference materials, interviews, and personal experience were relied upon. Then, to offer empirical evidence of the value of marginal pricing, two actual bids--in which marginal pricing was substituted for the full average cost pricing originally used-were included. Responses to a questionnaire, mailed to fifty MSC contractors, were tabulated and interpreted to further illustrate the hypotheses of this dissertation: (1) marginalism is not used at MSC at present; (2) marginalism could and should be used at NASA/MSC. The definition of marginal cost pricing encompasses two essentials--segmentation of costs and differentiation of costs. It requires thorough understanding of pricing possibilities and as much knowledge as possible of market and industry demand curves. Although not always labelled as such, marginalism has been a profitable part of pricing from the biggest corporations on down. The rules of the NASA PR can be interpreted to suit either full average cost pricing or marginal cost pricing. NASA segments costs in negotiating final contract price, and it is supremely interested in getting the most for its money these days. The Cost Accounting Standards Law, recently passed, is intended to reduce excess profits, for example, those accruing through overabsorption of indirect costs and overstatements of fee. Marginal or out-of-pocket pricing is a logical counterpart to these authorities, the more so, in light of the depressed market conditions at MSC and the waning of popular support for the space program. The marginal revisions of bids X and Z reduced the costs of these bids and, hypothetically, brought them well within the competitive range for NASA evaluation. (In the original evaluation, both were rejected.) Labor and overheads were altered to bring about a 5.7 per cent reduction in Bid X and a 15.9 per cent reduction in Bid Z. Nothing stood in the way of the marginal treatment of these bids other than the prejudiced pricing attitudes of the contractors. Their bias against utilization of an out-of-pocket technique showed up in the questionnaire results: of twenty respondents, five flatly denied rate revisions, and none acknowledged marginal revision in any bid. In conclusion, there are no obstacles to the use of marginal pricing: not the procurement regulations, not the large size of some awards, nor even the unusual structural characteristics of the aerospace industry. Marginal cost pricing of proposals to government agencies could be as successful as full average cost pricing. Marginal application, in a lagging market, could increase contractor sales volume and preserve the technological base for future projects.Item A study of the effects of mergers and acquisitions upon twenty companies in the domestic oil industry during the period 1958 to 1965(1968) Strieber, Clifford A., Jr.; Steele, Henry B.; Anderson, James E., IISince 1958 many mergers and acquisitions have taken place between companies in the domestic oil industry but there does not exist a study about these mergers and their effects upon the companies. This report, although confined to twenty companies in the industry, will fulfill the need for an (up-to-date) analysis. The objectives of this study are three-fold: (1) to present a detailed analysis of the chronicled mergers and acquisitions of twenty companies in the domestic oil industry that have occurred in the period 1958-1965; (2) to determine whether the mergers have been a significant factor in the growth of the companies; (3) to learn if there has been increased concentration during the period, and if so, what part mergers and acquisitions have played in the increase. To accomplish these objectives data were gathered from a large number of publications about the domestic oil industry and the twenty companies selected for the study. Limitations of the data were found to be mainly concerned with the smaller mergers where information about these mergers was sometimes quite meager. The next step in the solving of the problems was to formulate a method whereby the relationship between the growth of the domestic assets of the companies and their mergers could be discovered. Then, a determination was made regarding concentration in the domestic oil industry. The final part of the report presents a technique for measuring the effect of the companies' mergers upon concentration in the domestic oil industry. The findings of the study are as follows: First, most of the mergers and acquisitions of the companies involved marketing and producing properties as 77 percent of the mergers were in these areas. Second, 44 percent, or less than half, of the growth of the domestic assets was the result of mergers and acquisitions. Third, there was an increase in concentration in the domestic oil industry and mergers of the twenty companies played a large role in the increase.Item A study of the price leadership patterns of the steel industry, 1949-1969(1970) Gay, Fred H.; Steele, Henry B.; Dow, Louis A.; Sailors, Joel W.The steel industry of this country has changed prices by the means of a price leader-follower mechanism. This mechanism can be seen to fit a certain pattern for the years 1949-1958. The price leader was United States Steel Corporation (U.S. Steel). Prices of all basic steel products were changed at a given time-usually following a negotiated labor-wage increase. Other steel companies followed within a week any increase in base prices posted by U.S. Steel. The period from 1958 through 1962 saw no major price changes. The price changing mechanism to emerge in 1963 was quite different from the pre-1958 pattern. It could still be termed a leader-follower mechanism but was much less structured with respect to leadership identity, product scope coverage, timing of price increases, and annual magnitude of overall price change. It can be observed that about 1962, the role of U.S. Steel became that of censor or firmer of already initiated price changes with Bethlehem Steel Corporation emerging as a price change initiator. Prices were changed on only one or a few products at a time with price changing incidents occurring more frequently throughout the year to bring other product prices in line with those previously changed. (During this period only one "across-the-board" price change was attempted. It was subsequently "rolled back" after the failure of U.S. Steel and others to ratify the move.) Also, the overall annual impact of increasing prices by this type of price changing mechanism was less than that observed in the previous period. In order to explain why this change of price changing mechanisms occurred, these market variables should be considered relevant. 1. Import competition. This variable became important in 1958 and has increased in effect since that time. Imports, due to their selective impact on the product lines of domestic companies, tend to make across-the-board increases less feasible. 2. The growth of substitute products. Like imports, this type of competition effects only a few products at a time and puts pressure on any attempted across-the-board increases. 3. Government pressure. This type of pressure has been present throughout the study period. Although this pressure has been aimed at any type of price increase, it tended to discourage across-the-board increases and this was especially true after 1961. 4. Changes in market participation. This market variable is structural and long-run in nature. It entails the usurpation of the market shares of large integrated firms by small specialty companies. The effect is to undermine the discipline necessary to perpetuate a rigid follow-the-leader price changing mechanism.Item A survey and analysis of specific socio-economic changes among individuals participating in Houston's New Careers Program(1969) Cole, John B.; Williams, J. Earl; Champagne, Joseph E.Recently, there has been a surge of criticism directed at various poverty programs in the United States. The critics of the poverty programs claim that they constitute only 'hand-outs' and 'made-work.' This thesis was designed to show positive changes, if any, in the socio-economic lives of participants in Houston's New Careers Program. A comparison is made of the socio-economic lives of two groups of homogeneous trainees entering New Careers approximately one year apart. Data were collected concerning the economic and social activity of the trainees as well as their attitudes toward work and social mobility. The analysis of the information collected on the trainees shows positive economic and social changes have occurred within the group participating in New Careers for a year or more. However, the attitudes of the trainees in both groups are found to be similar with regards to work and social mobility.Item An analysis of the effect of the Federal Income Tax Law upon the United States balance of payments(1970) Call, William L.; Sailors, Joel W.; Phillips, Lawrence C.; Stern, Louis H.This study summarizes the results of an examination made of the portion of the Internal Revenue Code dealing with income taxes in order to find those provisions which have an effect upon the United States balance of payments. In order to facilitate this search, the potential balance of payments effects were divided into two kindst those which affect the balance of payments "directly" and those which affect the balance of payments "Indirectly." The indirect effects were considered to be those changes in the balance of payments which result not from an immediate encouragement to engage in international transactions, but which are a secondary response to changes in income, prices, and interest rates first brought about in the domestic economy by the hypothetical addition or deletion of the tax provision in question. Direct effects were considered to be all other changes in imports, exports, capital flows or other balance of payments accounts which would be brought about by the response of United States residents and foreigners to the change In the Internal Revenue Code being considered. Indirect effects were evaluated with the aid of a two part macroeconomic model developed In Chapter II. The first part, that used to predict effects upon variables within the domestic economy, was essentially that of the Hicks-Hansen presentation, with the second part of the model being designed to predict the response of United States residents and foreigners to changes In prices. Income, and Interest rates previously determined. The criterion used to select the provisions contained In the Code with direct balance of payments Implications was wording which would tend to encourage Americans or foreigners to engage In transactions affecting either exports. Imports, remittances and pensions. United States net private capital flows, and foreign long term net capital flows without tending to affect other such accounts in an equal but opposite direction (liquidity basis). The bulk of the study (Chapters III-IX)consists of a detailed listing and explanation of these effects after an examination of Subchapters A-T of Chapter 1, Subtitle A of the Internal Revenue Code made with the aid of the model previously developed. From the study it was determined that the provisions most significant for the measurement of taxable income- those sections with significant indirect implications fqr the balance of payments-fall within the meaning of Section 61 of Part I of Subchapter B (definition of gross Income), Sections 141, 151-154. 162, 165, 212, 167-169, and 177-179 (tax deductions) and "itemized" deductions. Also found to be Important for aggregate demand, and therefore indirectly for the balance of payments, were Parts I, II, and V of Subchapter A (general tax rates). Part IV of Subchapter A (tax credits), and those sections discussed within the study having a material effect on income exclusions and Investment Incentives. From these findings It was concluded that while In planning for and making computations of tax liabilities Individual taxpayers must be concerned with a wide variety of complex rules contained in the Code, most of the sections considered In the study could be deleted without significantly affecting either domestic Income, interest rates, prices, or indirectly the United States balance of payments. As a corollary to this conclusion, it was additionally inferred that if the balance of payments were to become the overriding consideration of fiscal policy, policymakers could first look to the provisions mentioned above for those Income tax provisions which could be changed strategically to accomplish their goals. A similar conclusion was drawn as to the direct effects In that less than one fifth of the sections examined during the study were found to have significant balance of payments ramifications, with these being concentrated for the most part In Subchapters B and N of the Code, After presenting a list of suggested changes which could be Incorporated Into the Income tax law to achieve desired effects upon the United States balance of payments as well as some criteria which could be used In evaluating their desirability. It was concluded that for the most part the Internal Revenue Code has apparently been overlooked by Congress as a vehicle for achieving balance of payments policy.Item An analysis of the structure-conduct relationship of firms in a selected retail market(1967) Primeaux, Walter Joseph, Jr.; Zingler, Ervin K.; Owen, John P.; Daniel, Coldwell, III; Yeager, Francis S.; Hattwick, Richard E.The purpose of this in depth study is to ascertain how satisfactorily the received economic doctrine explains the structure-conduct relationship in a selected household consumer durable market with respect to specific decision variables of competitive strategy. The decision variables under consideration are store location, competitive goals, advertising, pricing policy, price discrimination, and product-line strategy. The procedure and technique used in the analysis consists of movement from the theoretical to the empirical areas of research. The literature available in scholarly journals, reference works, and textbooks was searched to gain an insight into the state of the science with respect to explaining firm behavior in the market place. Data concerning firm behavior in the market were obtained by repeated visits to the market between November 1965 and February 1967. In addition to repeated visits with dealers in the market to clarify and validate data obtained in interviews, discussions with dealers from other markets, distributor salesmen, and advertising executives were also utilized for this purpose. The major empirical phase of the study consisted of personal interviews during the summer of 1965 with thirty-seven of the thirty-eight dealers selling home appliances in the narket under study. A pseudonym is used to refer to the market City to fulfill the guarantee of anonymity given to persons who furnished data for the study. This technique was employed so that a greater quantity of more accurate information would be available for analysis. After all empirical data were gathered, they were put on cards and used as input for summarization by computer. The six relevant decision variables were then tested individually by comparing data obtained through personal interviews with various hypotheses in economic literature. A judgement was then made as to how well the economic literature explained the structure-conduct relationship for each decision variable. Only two of eight hypotheses presented in the review of the literature on location were rejected as inapplicable in the market under study. The judgement was made that the economic literature satisfactorily explains the structure-conduct relationship with respect to store location as competitive strategy. Only three of ten hypotheses presented in the review of the literature on competitive goals were rejected as inapplicable in the market under analysis. The judgement was made that the economic literature satisfactorily explains the structure-conduct relationship with respect to competitive goals in the market. Two of ten hypotheses presented in tile review of the literature on pricing practices were rejected as inapplicable in the market under examination. The conclusion was that the economic literature satisfactorily explains the structure-conduct relationship with respect to pricing practices in the market. Only three of thirteen hypotheses presented in the review of the literature on advertising practices were rejected as inapplicable in the market under study. The judgement was made that economic literature satisfactorily explains the structure-conduct relationship with respect to advertising practices in the market. None of the twelve hypotheses presented in the review of the literature on price discrimination were rejected as inapplicable in the market. The conclusion was that the economic literature satisfactorily explains the structure-conduct relationship with respect to price discrimination in the market. Three of eleven hypotheses presented in the review of the literature on product-lines were rejected as inapplicable in the market. The decision was made that the economic literature satisfactorily explains the structure-conduct relationship with respect to product-line strategy in the market. Economic theory for the most part correctly explains the structure-conduct relationship in tho market for all six decision variables. Therefore, the working hypothesis of the whole study was accepted and the conclusion made that received economic doctrine eclectically applied adequately and satisfactorily explains the structure-conduct relationship in a selected retail consumer durable market with respect to the six decision variables.Item An economic analysis of gas and electricity as sources of residential energy supply(1968) Jackson, William Paul; Steele, H. B.; Hattwick, Richard E.; Anderson, James E., IIThis thesis was prepared, with a two-fold purpose: 1) To expose the existence of uneconomic energy consumption in the residential sphere; 2) to urge the Federal Power Commission to force truth in utility advertising and offer the consumer adequate data to determine his most rewarding energy purchase. Largely a statistical analysis, the thesis incorporates numerous absolute and relative price comparisons between residential consumption of gas and electricity. The extent of relative advantages voiced by electric proponents receives separate attention. Shifts in percentages of U. S. energy consumption among low-cost to high-cost points of consumption and classes of consumption are shown to be large factors in the apparent, relative-price advances of electricity. The effect of the latter manipulation is to lower the rate of increase of the price of gas over time. It is shown that much of the alleged increase in the price of gas is actually due to the increased proportion of gas sales going to distant markets. It is argued that during the period covered by this study, the majority of U. S. energy customers did not experience the so-called average rates so frequently presented by spokesmen for the electric power industry. For gas, rates were overstated and for electricity, rates were understated. Having established a prima facie case for the misallocation of resources in the consumption of electricity by American households, the study turns to a consideration of possible explanations of the observed household behavior. It is suggested that misleading information is a major cause of such behavior. The study concludes with such policy recommendations as: 1) the elimination of conflicts of interest between utilities and transmission companies; 2) FPC disclosure of energy economics on a simple but informative basis; and, 3) regulation of utility promotions to prohibit misleading claims.Item An economic analysis of the growth of selected Latin American educational systems :' 1955-1965(1974) Palmer, Lucian William; Cherin, Gabriel; Thomas, R. William; Rowe, Jack, Jr.Various economists have pointed out several socioeconomic factors which are alleged to have importance in the rise in educational enrollments. These factors include the ability of the educational system to produce an increased supply of teachers, the increasing level of gross domestic product, the increased entrance of female into the educational systems, rising retention rates in the educational systems, the increasing process of urbanization in the Latin American countries, and the increasing complexity of the production process. An attempt was made to quantify these factors for selected Latin American countries. Since these factors are at best difficult to quantify, the problem was simplified by assuming that there exists an optimal teacher/student ratio which each educational system is trying to achieve. This optimal ratio is hypothesised to be a function of real per capita gross domestic product. Through these assumptions it became possible to develop a supply function for teachers in an educational system. Further the model developed to provide estimates of another parameter, lamda. Lamda is the speed or the rate of response an educational system makes in attempting to achieve an optimal teacher/student ratio. The demand for education was considered to be a function of the size of the population, the social customs of the society, and the rate of return to the individual from investment in education. The return to education was conceived to be a function of the out of pocket expenses of the student while he was attending school, and the expected increase in earnings on the part of the student from his increased educational level. The expected increase in earnings was assumed to be a function of the economy's demand for educated individuals, which in turn is determined by the degree of complexity of the production process. For purposes of analysis proxy variables were selected to represent the factors determining the supply and demand for educational places. The number of teachers and the level of real per capita gross domestic product and the teacher/ student ratio were chosen to represent the supply of educational places. The rate of growth of the school age population, the rate of rural to urban migration, the sex composition of enrollments, the education retention rates, and the percentage of gross domestic product produced in the manufacturing sector were chosen to represent the factors determining the demand for education. Time series data was developed for enrollments and the proxy variables in the selected countries. This data was subjected to simple regression between enrollments and each of the proxy variables in the selected countries. Multiple regressions were run using different combinations of the proxy variables as independent variables. In addition cross sectional regressions for a single year wore run by converting the proxy variables into a per capita form wherever possible, and treating the selected countries as a single unit. Finally other statistical snalysis was performed through the comparison of ratios, and rates of growth. Two basic conclusion were reached in this study. Once dealt with the general aspects of the operations and problems of the educational systems under investigate, while the other dealt with the problems of making long run projections of educational enrollments. It was established, but not conclusively, that there exist optimal teacher/student ratios which the educational systems in the selected countries try to achieve. In the short run the teacher/student ratio is the basic mechanism which the system uses to balance the supply of educational places with enrollments. In the long run the educational systems attempt to reach the optimal teacher/student ratio by adjusting the stock of teachers to enrollments. The ability of the educational systems of the selected countries to achieve optimal teacher/student ratios has not been outstanding due to an inability to produce sufficient quantities of teachers. If these countries and other countries in similiar situations expect to achieve optimal teacher/student ratios they must pay more attention and devote more resources to the portion of the educational system which produces their countries teachers. It was established rather conclusively that educational planners must consider many socio-economic variables in long run projection of enrollments. Particularly important in long run projections of enrollments are the expected changes in the level of the per capita gross domestic product, possible increased proportions of females entering the educational system, the increasing complexity of the production process, changing retention rates within the educational system and possible changes in the rural/urban population distribution. In the selected countries changes in each of these factors were found to effect long run enrollment levels. Projections of enrollments which does not take into account these factors will likely prove to be quite incorrect.Item An experimental analysis of auction theory(1987) Dyer, Stephen Douglas; Kagel, John H.; Levin, Dan; Harstad, Ronald M.; Battalio, Ray C.The dissertation examines modern auction theory using experimental economics as a research tool. Auctions provide a clear view of actual price formation, while the laboratory setting enables us to isolate specific economic forces under controlled conditions. The first essay provides empirical evidence on the theoretical prediction that uncertainty regarding the number of bidders is important. As predicted for buyers with constant or decreasing absolute risk aversion, resolving numbers uncertainty decreases seller's revenues. We conclude however that risk aversion, at least in the context of von Neuman-Morganstern expected utility theory, cannot explain our empirical findings. The second essay provides evidence as to the validity of experimental methods as a research tool in economics. Results using experienced construction contractors do not differ significantly from results using student subjects in common value auction experiments, as the winner's curse is found to generalize across auction form, market size, and subject population.Item An industrial production index for the Houston economic area(1966) Furino, Antonio; Zingler, Ervin K.; Owen, John P.; Becht, J. EdwinA monthly index of industrial production is a significant economic indicator. A comparison of trends in physical output by the regional industries with trends in other regions or in the country as a whole is useful to the planner, the businessman, and the manager in their measuring and anticipating cyclical fluctuations in manufacturing output or, more generally, in their acquiring a deeper understanding of the economic environment. Also, an industrial production index affords a host of potentialities in the field of regional economic research. The purpose of this study is to develop an index of Industrial Production for the Houston metropolitan community and its service area. The selected region is called the Houston Economic Area and consists of the counties of Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Mongomery and Waller. After a review of the existing indexes on industrial production, the criteria used in defining the region under study are presented. Then, a list of the fundamental assumptions made concerning the sources of information and the methods of constructing, revising and adjusting the index are followed by a delineation of the procedure for its computation. Limitations of the index are mainly related to the statistical crudeness inposed by scarcity of necessary data. However, inasmuch as 79 per cent of the index's content reflects actual physical output, it is believed that the index retains valuable properties as a tool of analysis. For those industries lacking meaningful data -- as a unit of measurement - man-hours are used to reflect value added in production. These series should be adjusted to allow for estimated trends in productivity (output per man-hours). At the time of the computation of the index, the information available on Houston industries was not sufficient to warrant the formulation of reliable productivity factors and the indexes were left unadjusted. However, the procedure that will be employed in making productivity adjustment when the necessary data will be collected is outlined. The Index of Industrial Production of the Houston Economic Area is presently released monthly to all the participating firms. A release to the general public will follow the planned revisions and refinements of the index - namely, the use of new weights based on the 1963 Census of Manufactures, the introduction of productivity factors, and the computation of new seasonals.Item An intergenerational welfare analysis of international factor movements and government deficit(1987) Yoon, Young Deak; Ruffin, Roy J.; Dechert, W. Davis; Papell, David H.; Page, FrankThe opening essay briefly reviews our subject, "An Intergenerational Welfare Analysis of International Factor Movements and Government Deficit." Chapter II analyzes the welfare implications of international factor movements, utilizing the standard Overlapping Generation model without an intergenerational transfer motive. It is shown that if both economies are intertemporally efficient (inefficient) in autarky, then the steady-state welfare of a capitai-importing, or emigration country, improves (worsens), while the steady-state welfare of a capitai-exporting, or immigration country, worsens (improves). The following chapter, reexamines the welfare implications of international capital movements, using an OLG model with an intergenerational transfer motive. The analysis discloses that when a bequest (gift) motive is operative in the two countries in autarky, the steady-state welfare of the capitai-exporting (capitai-importing) country improves. Also, the greater the initial interest rate difference between the two countries, the more likely the steady-state welfare of the capital-importing (capitalexporting) country is to improve. Finally, Chapter IV exhibits the welfare implications of government deficit in an open economy. In the OLG model without an operative intergenerational transfer motive, the steady-state welfare of a country worsens as a result of an increase in the government deficit in either country, regardless of whether that country exports or imports capital, (1) if the economy of that country is intertemporally efficient in autarky without government intervention, and (2) if the open economy is intertemporally efficient. In the OLG model with a bequest (gift) motive, the steady-state welfare of the capital-importing (capitalexporting) country worsens (improves), but the steady-state welfare of the capital-exporting (capital-importing) country improves as a result of the increase of the capital-importing (capital-exporting) country's government deficit. However, the government deficit of the capital-exporting (importing) country is neutral.Item An investigation of the influence of the In-School Neighborhood Youth Corps on earning capacity in Houston, Texas(1974) Ellard, Charles John; Moore, William J.; Thomas, R. William; Cherin, Gabriel; Williams, J. EarlThis study investigates the post-high school influence of the In-School Neighborhood Youth Corps (NYC) on the earning capacity of participants in Houston, Texas. Earning capacity includes both current labor force performance as well as educational attainment. The influence of NYC participation is investigated employing a methodology of a control group design together with data analyses using multiple regression and analysis of covariance. The analytical sample consists of 103 former participants in the NYC Program who left high school sometime between 1965 and mid-1971, and 39 controls. The NYC participants include 83 school year subjects for whom at least some of their NYC experience was obtained in part-time NYC employment during the academic year and 20 summer-only participants who held NYC jobs during the summer vacation period. The controls were selected from siblings of former NYC participants in Houston. The analysis of the sample data attempts to measure the NYC influence on post-high school earning capacity variables while controlling for several other factors. These factors include age, race, sex, marital status, parental education, and others. The investigation also probes for NYC influence for racial groups and for the sexes taken individually. Additional investigations vary the structure of the experimental variable and look at the influence of program component, the duration of NYC experience, the total high school employment composition and cohort groupings. The conclusions of these investigation include the following: 1) NYC participation does not improve the high school graduation rate; 2) the NYC influence on posthigh school income is questionable; 3) the NYC influence on college attendance and long-run income prospects are questionable; 4) NYC participation does not stimulate post-high school vocational training; 5) NYC participation benefits Blacks more than other ethnic groups; 6) the school year segment contributes more toward high school graduation than the summer-only segment; and 7) income gains to NYC participation do not increase with the length of participation.Item Bank panics, contagion and information(1987) Hasan, Iftekhar; Dwyer, Gerald P., Jr.; Evans, Paul; Gregory, Paul R.; Rzepczynski, Mark S.This dissertation is an examination of the free banking era in the United States. Recent empirical evidence (Rockoff 1975; Rolnick and Weber 1984) suggests that bank failures in this period were the result of specific features of the free banking laws and the failures were not related to the absence of a central bank. The evidence in this dissertation indicates the specific features of the free banking laws considered by others explain few bank failures. The finding suggests that the pattern of bank failures is largely explained by the contagious bank runs, which started for a variety of reasons.Item Canal building and regional development : A case study of the Erie Canal(1970) Bednar, Leonard LadislavIn 1825, the state of New York completed the construction of the Erie Canal. It was the purpose of this thesis to determine the impact of this canal on the economies of the state of New York and the Old Northwest. Sufficient data was found in the literature to determine that a significant developmental iqpaet was exerted by the Erie Canal on the economies of these two areas. This impact was largely brought about by a great reduction in the time and cost of movement between what was then the East and the West. For example, because of the facilitation given transit and commerce, in a group of counties bordering the Erie Canal occupations associated with commerce and manufacturing grew more rapidly than in any other county category from 1820 to 1840. Again, for the some period, not only did the density of population in those counties located within six miles of the Erie Canal and the Hudson River increase sharply, but in western Kew York this was the case even beyond the six mile sone bordering the canal. Also in western Yew York, total end per capita valuation of property increased over the decade 1820-1840. Yew York's agriculture, however, because of the facilitation given transit and commerce, was forced to change. Agricultural competition from the Old Northwest, which the Erie Canal helped to settle, was largely responsible for this change. The developmental impact of the Erie Canal was also brought about by the Erie Canal Fund, which acted as a bank for development in New York.Item Commercial banking in Pakistan(1964) Qureshi, Usman Ahmad; Chen, Henry C.; Owen, John P.; Engberg, Vernon L.The story of the development of the commercial banking system in Pakistan is one of insurmountable initial handicaps, largely overcome, only to be followed by more difficulties, bravely faced. Thanks to the sustained endeavors of the Central Government and an efficient system of central banking, we have a sound commercial banking system in Pakistan today. Seventeen years ego when the newborn state of Pakistan came into existence, the banking system of the country stood in utter confusion. Most of the banks in Pakistan were branches of Indian banks, and were staffed mainly by Hindus. Foreign banks, er their branches, were very few. In the wake of widespread social unrest, which immediately followed the Partition, an estimated six million non-Muslims left Pakistan. On the other hand, an even greater number of Muslims immigrated from India under conditions of misery and horror. Division of labor in undivided India had long been carried on along religious lines. The wholesale transfer, therefore, meant that Pakistan acquired a disproportionate number of artisans, peasants, and small shopkeepers, as against the large number of wholesalers, importers, exporters, insurance agents, bankers, financiers, teachers, and other professional people who departed. The impact of the wholesale emigration of skilled labor from Pakistan was especially severe on the banking industry. The withdrawal of Hindu banking personnel from Pakistani territory left Pakistan banks completely deserted. Only non Indian banks continued to operate, but with a much smaller number of offices and with only skeleton staffs. These banking offices were unable even to discharge their routine function of accepting deposits and cashing the checks presented to them. The banking system of the country, had, therefore, virtually collapsed. The magnitude of the problem can be judged from the fact that the number of the banks, which stood at 631 just before the Partition, had declined to only 19S at the time of the establishment of the State Bank of Pakistan in July, 1948. Credit activity was greatly diminished and the bulk of deposits held by Hindus was promptly withdrawn, leaving commerce and industry in Pakistan at a virtual standstill. These events brought home irresistibly the urgency of taking over control of Pakistani banking and currency from the Indian Central Banking authorities and the need to establish Pakistan"s own central banking system. As a result, the State Bank of Pakistan was inaugurated on July 1, 1948. The task of rehabilitation and development of the country"s commercial banking system was formidable and highly complex. But thanks to the multi-pronged efforts of the State Bank, and the admirable response of commercial banks, the system has not only fully recovered from the virtual collapse, but also improved its functional efficiency, broadened its scope of operations and has gained in strength and soundness. Today Pakistan has over 1056 bank offices as against 631 immediately before Partition, and only 195 on July 1, 1948. In the preparation of this study, an attempt has been made to trace the development of the commercial banking system in Pakistan and to bring out its accomplishments. The author wishes to thank Dr. Henry C. Chen for his guidance, patience, understanding, and encouragement in the supervision of this study. Also he appreciates the many valuable suggestions and time-consuming efforts of Professor Vernon L. Engberg.Item Consumption and labor supply under dynamic optimization(1984) Elavia, Tony H.; Parker, Jeffrey A.; Zadrozny, Peter; Mieszkowski, Peter; Baltagi, Badi H.The goal of this dissertation is to test the hypothesis that economic agents jointly choose current consumption and labor supply, so as to maximize the present discounted value of current and future utility. We then investigate the response of such maximizing agents to transitory and permanent shocks from the exogenous environment consisting of real wages, real interest rates and taxes. The response of consumption is in broad conformity with the predictions of the premanent income hypothesis. Labor supply exhibits an inelastic response with respect to both shocks - a result at odds with an important postulate of the new classical macroeconomics.Item Deposit size, deposit mix and commercial bank asset portfolio composition(1971) Walker, Michael Claude; Shatto, Gloria; Mayor, Thomas H.; Steele, Henry B.; Bolten, Steven E.This dissertation is a study of the aggregate portfolio behavior of the United States commercial banking system during the period 1956-1965. Specifically, the study examines the roles played by deposit size-total net deposits held by the banking system-and deposit mix-the ratio of time deposits to total deposits-in determining the composition of the aggregate asset portfolio of the commercial banking system. The study also examines the effect of relative increases in public deposits, both federal and state and local, on the composition of the asset portfolio. The model used in the study treats commercial bank management as a risk averting investor attempting to maximize a utility function whose only arguments are expected return and risk. The model abstracts from all risk except that associated with unexpected deposit losses. As the risk of unexpected deposit losses rises bank, management must hold an increased portion of the asset portfolio in highly liquid forms in order to meet cash drains or run the risk of capital losses when relatively illiquid assets are sold under adverse market conditions. Evidence presented in the study indicates that deposit stability increases-i.e., the risk of unexpected deposit losses falls-as deposit size increases and as the ratio of time deposits to total deposit rises. Thus, as deposit size increases and the ratio of time deposits to total deposits rises, bank management can, and should, shift the composition of their asset portfolio toward longer-term, higher-yield assets. The empirical results of the study clearly indicate that deposit mix affects asset portfolio composition in the expected manner. The effect of deposit size is somewhat ambiguous, but it is generally in agreement with a priori expectations. Public deposits differ from regular deposits in that the bank holding such deposits must pledge collateral against the portion of the deposit in excess of FDIC insurance ceilings; the pledged assets are generally transferred to the depositing agency or its designated custodian. Although many securities can be used as collateral, U.S. Government securities are most often used. This study seeks to discover if such pledging requirements affect portfolio composition. Empirical findings indicate that as public deposits rise relative to total deposits asset portfolio composition is affected in two ways. First, the portion of U. S. Government securities maturing within one year falls as banks switch to longer term securities for pledging purposes. Second, the portion of the portfolio consisting of mortgages falls. The unique features of the model used are perhaps more interesting than the results obtained. First, the model does not deal with dollar holdings of each asset, rather, it deals with the percentage of the portfolio held in each asset. Second, it treats the entire asset portfolio and not just the portion remaining after reserve and liquidity requirements are met. Finally, the model does not assume the distributed lag form usually found in studies of the aggregate portfolio behavior of financial institutions. A detailed discussion of the rejection of the distributed lag model is included in the study.Item Dynamic consumer demand systems under uncertainty(1987) Aguilar, Pompeyo Augusto; Parker, Jeffrey A.; Baltagi, Badi H.; Dwyer, Gerald P., Jr.; Rzepczynski, Mark S.This dissertation is concerned with the formulation and estimation of a system of consumer demand functions derived from an intertemporal framework where the future is uncertain and where it is costly to adjust stocks of durables to desired levels. In the theoretical analysis, a representative household is assumed to maximize the expected present value of current and future utilities subject to the restrictions imposed by its economic environment. Using U.S. time-series data, the set of stochastic first-order conditions emerging from the empirical model is estimated by a full-information forward-filtered procedure. The test results reject a strict version of the rational expectations hypothesis and the symmetry and equality restrictions implied by utility maximization. The simulation experiments indicate that short run ownprice elasticities overshoot the corresponding steady-state elasticities, and that the absolute values of the latter are larger than those obtained by studies lacking appropriate dynamic elements.