The Miscommunications and Misunderstandings of Nicholas Georgescu-Roegen
by Samuel Iglesias Abstract If there is any takeaway from 1971’s The Entropy Law and the Economic Process, it’s this: beneath every intersection of the supply and demand curve, there’s a slow, but steady, process of environmental degradation. Try as you will to recycle waste materials, the book argues—this process cannot be reversed. A formulation […]
The Determinants of Congressional Voting on the Emergency Economic Stabilization Act of 2008
by Ryan Miller Abstract The purpose of this paper is to discover the determinants of Congressional voting in the House on the two different versions the Emergency Economic Stabilization Act of 2008, and to determine what caused Congressmen to switch their votes from the first bill to the second. Using a Probit model and independent […]
Hop, Skip and Jump – What Are Modern “Jump” Tests Finding in Stock Returns?
by Michael Schwert Abstract This paper applies several jump detection tests to intraday stock price data sampled at various frequencies. It finds that the choice of sampling frequency has an effect on both the amount of jumps detected by these tests, as well as the timing of those jumps. Furthermore, although these tests are designed […]
Contagion in Risk Markets
by Matthew Moore and James Schulhof Abstract During periods of market dislocation, which can be characterized by high asset volatility, correlations between assets generally tend to increase. However, there has been little research on the behavior of correlations between risk measures across securities markets. The aim of our research is to examine correlation dynamics between […]
Leveraging the American Dream: Explaining the Shift Towards Mortgage Debt since the 1970’s
by James Robert Melnick and James Colin Montupet Abstract We show that the determinants of mortgage borrowing and other forms of consumer credit differ: borrowers tend to consider asset holdings when taking out a mortgage, but focus on short-term economic expectations when borrowing other consumer credit. We hypothesize that this “mortgage wealth effect” occurs in […]
The Impact of Sector and Market Variance on Individual Equity Variance
by Haoming Wang Abstract This paper investigates how changes in measures of sector and market variance affect equity variance by examining forecasts of equity variance over 1, 5, and 22 day time horizons. These forecasts were generated using heterogeneous autoregressive regressions that included measures of sector and market variance. The results demonstrate that sector and […]
Does the NBA Encourage Early Entry?
by Griffen Tormey Abstract Over the last decade, the number of underclassmen selected in the first round of the NBA Draft has dramatically increased. Even when controlling for performance in college, underclassmen are paid significantly more than college seniors. What is going on here? Isn’t experience a good thing? Groothuis, Hill, and Perri (2007) were […]
