ECO Theses

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    Tests of the uncovered interest parity
    (Wichita State University, 2014-05) Shrestha, Aseem; Miles, William
    This paper carries out empirical testing of the Uncovered Interest Parity for US-Mexico, US-Brazil and US-Japan using general OLS and GARCH from monthly data. Similar to numerous other studies UIP failed to hold empirically. I also test if deviations from UIP are in any way effected by business cycles but did not find any supporting evidence. In contrast to a number of other studies my slope coefficient was significantly different from unity. The coefficient also showed a negative sign for one of the economies. Additionally, there were presence of ARCH and GARCH effects in UIP deviations. Finally, no evidence was found for UIP to hold better for developed nations like Japan and not for emerging markets like Mexico and Brazil.
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    Competition and home prices: measuring the supply effect
    (Wichita State University, 2012-07) Maness, Andrew S.; Longhofer, Stanley D.
    Hedonic models measure the impact that various physical characteristics have on the sale price of a home. Due to data limitations, however, these models usually do not take into account the number of homes on the market at the time the subject home sells. Theoretically, the number of competitors should negatively impact the sale price of a subject property. At the same time, increases in expected sale price may cause more sellers to offer their homes for sale, creating a reverse causation problem. The goal of this research is to address this endogeneity problem in order to measure how the number of competitors affects the sale prices of homes in a mid-sized city in the Midwest United States. I resolve the endogeneity problem by finding instruments that are related to supply and not demand and use them to execute a two-stage least squares regression. After controlling for this endogeneity, I estimate that a 1% increase in the number of competitors lowers the sale price by approximately 0.06 %.
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    Have delayed independence and poor initial institutions been economically costly for Latin Americans?
    (Wichita State University, 2011-05) Saloga, Clinton W.; Williams, Miles
    This paper tests the hypothesis that the timing of independence in Latin America and the institutions in place at the time of independence had a joint effect on the developmental paths of the countries. A new variable is presented - the interaction term between the timing of independence and initial institutions, and then tested with Multiple OLS Regressions. The findings support the notion that earlier independence in conjunction with better initial institutions may have had a positive influence on long-term economic growth in Latin American countries using data from 1990-2004.