This volume is the sixth annual publication of the Duke Journal of Economics, formerly
the Undergraduate Economics Journal. Founded in 1988, the Journal is a showcase for
the outstanding contributions made each year to the economics discipline by Duke
undergraduates.
In this issue:
•Gary Cohen analyzes inequities in voting power;
•Tony Schopen explores the debates surrounding capital gains tax cuts;
•Arielle Horman investigates the causes and consequences of the declining number
of young black males in the “marriage market;”
•C. Geoffrey Bums pioneers new methods of estimating health care costs for
individual states;
•Travis Pearson examines the United States’ relative economic decline in the post-War
world;
•H. Peter Hess, Jr. addressed the issue of employing economic incentives to
control air pollution;
•Sean Fahey presents a critical analysis of the practice of short selling.
Each year the Duke Economics Faculty awards prizes to the most outstanding honors
theses. We would like to congratulate C. Geoffrey Burns and Tony Schopen for being
awarded first- and second-prizes respectively for the class of 1993.
The papers contained in this volume are abstracts of honors theses and other work done
by Duke economics majors. The:,;_ have been edited for length and clarity.
Thanks to Bruce D. Fitzgerald, the Allen Starling Johnson, Jr. Endowment Fund, Louise
Merriam, and the staff of the Duke University Economics Department
‘-.
Manuscript submissions should be forwarded to Dr. Edward Tower or Dr. Neil DeMarchi
of the Department of Economics.
MA TT CROSSLAND                         JOE SHIFFLER

ALL VOTES ARE NOT CREATED EQUAL: AN ANALYSIS OF VOTING POWER
by Gary Cohen……………………………………………………………….1

THE CURRENT ISSUE OF CAPITAL GAINS
by Tony Schopen……………………………………………………………23

THE DECREASING AVAILABILITY OF YOUNG BLACK MALES IN THE MARRIAGE MARKET
by Arielle Horman…………………………………………………………..73

TWO MODELS TO PROJECT PER CAPITA PERSONAL HEALTH CARE EXPENDITURES BY STATE, SELECTED YEARS, 1990-2020
by C. Geoffrey Burns………………………………………………………93

AMERICA’S RELATIVE DECLINE AND THE NON-ECONOMIC USES OF RESOURCES
by Travis Pearson…………………………………………………………111

THE EMISSIONS TRADING PROGRAM
by H. Peter Hess, Jr………………………………………………………151

EVOLUTION OF THE WINDHANDEL: A CRITICAL ANALYSIS OF SHORT SELLING
by Sean Fahey………………………………………………………………169

This year marks the fifth annual publication of the Duke Journal of Economics, formerly the
Undergraduate Economics Journal. Founded in 1988, the Journal seeks to encourage students’
contributions to the discipline and to promote dialogue within the University as an entity.
In this issue:
• John Bartholdson examines the impact of the recently-passed luxury tax on the
boat-building industry.
•Steven Winch discusses the positive and negative aspects of short selling from a
historical standpoint.
•Spencer Banzhaf explores the concept of the net product.
•Mark Lasser investigates the recent German Unification and reports on the
inefficiencies resulting from this historical event.
• Fall 1992 Economics 2015 students, under the direction of Dr. Tower, analyze
current issues in economics in a symposium format. It should be noted that these
papers were not submitted as honors theses.
Students interested in working on the Journal should attend upcoming Omicron Delta Epsilon
meeting for more information.
A special thanks to the following, without whose help this Journal would not have been
possible: Bruce D. Fitzgerald, The Allen Starling Johnson, Jr. Endowment Fund, Forrest L.
Smith, Louise Merriam, and the staff of the Duke University Economics Department.
Manuscript submissions should be forwarded to Dr. Edward Tower or Dr. Neil De Marchi of
the Department of Economics.
SEAN FAHEY       RANDY GIBEAU

CONTENTS
THE IMPACT OF THE LUXURY TAX ON THE BOAT-BUILDING INDUSTRY
by John A. Bartholdson……………………………………………………………………..7

SYMPOSIUM: lNTELLECTUAL PROPERTY RIGHTS
lNTELLECTUAL PROPERTY RIGHTS AND THE GATT
by David Reiter………………………………………………………………………………..45
TRADEMARKS AND GENERIC NAMES
by Todd Schulman

SHORT SELLING MALIGNED: AN HlSTORICAL PERSPECTIVE
by Steven D. Winch …………………………………………………………………………59

SYMPOSIUM: EMIGRATION/IMMIGRATION
THE ECONOMIC IMPACT OF HONG KONG’S BRAIN DRAIN
by Micaela Kelley……………………………………………………………………………..75
CUBAN IMMIGRANTS IN M!AMI
by Jill Calahan

IN SEARCH OF TIIE PRODUIT NET
by Spencer Banzhaf………………………………………………………………………….89

SYMPOSIUM: WORKFARE
THE ECONOMICS OF WORKFARE: THEORY AND PRACTICE
by Bryan R Clarke…………………………………………………………………………….131
THE EFFECTS OF WORKFARE ON TIIE POOR
by Oliver Goldstein

GERMAN UNIF!CATION: lNEFFICIENCIES OF GOVERNMENT INTERVENTION
by Mark L. Lasser……………………………………………………………………………..145