Changes in Implicit Prices of Prairie Pothole Habitat

I estimate changes in agricultural land value discounts due to prairie pothole habitat. The implicit prices of pothole habitat acreage are estimated from a series of hedonic models using Manitoba agricultural land transaction data from 1990 to 2009. I find that the discount on wetland acreage increased by at least 40%, suggesting that significant unanticipated increases in the benefits of converting wetlands emerged over the course of the study period. I also estimate a series of quantile regression hedonic models. The quantile regression models indicate that the land value discounts on prairie pothole acreage as a percent of per acre sales prices are constant across the land value distribution. These results have implications for the design of habitat conservation programs, particularly those involving long‐term agreements between landowners and conservation agencies.     

Sustainability policy as if people mattered: developing a framework for environmentally significant behavioral change

International climate accords like the Paris agreement set the broad agenda for climate action. To realize their potential however, it is vital to ‘get the context right’ so that environmentally significant behaviors can be repeated over time. This paper reviews the extant interdisciplinary literature to outline how a richer understanding of the interrelationships between individual and contextual factors is required to cultivate behavioral change. In this manner, 18 distinct behavioral determinants are identified. We argue that the likelihood of behavioral change and overall environmental impact are thereby reliant on the complex interaction between individual behavior and the multiple distinct layers of context that frame its expression. Our behavior-informed approach thus helps to explain processes of behavioral change more fully, establish the types of obstacles that exist, and delineate a fuller and more substantial role for individual-driven behavioral change that is able to build on the initial impetus of global-level frameworks.     

Understanding applicant behavior in employment interviews: A theoretical model of interviewee performance

The purpose of this article is to present a theoretical model of interviewee performance in selection interviews. Our model positions the construct of interviewee performance as a central mediating variable between candidate attributes and interviewer ratings. The model includes six sets of factors that may influence interviewee performance, interviewer ratings, or both (e.g., interviewer–interviewee dynamics). This model promotes a fundamental shift in the way we think about employment interviews, from a focus on interviewer ratings to a focus on interviewee performance. Factors like culture and interview specific self-efficacy, while receiving little attention in current literature, take on greater significance when viewed through the lens of interviewee performance. A number of avenues for future research are developed and presented, which we hope will encourage future research in this area.     

Trade liberalization, antidumping, and safeguards: Evidence from India's tariff reform

This paper is the first to use product-level data to examine empirically whether countries use antidumping and safeguard exceptions to unwind commitments to lower tariffs in the face of domestic political-economic pressure. We focus on the case of India, a country that underwent a major exogenous tariff reform program in the early 1990s and subsequently initiated substantial use of safeguard and antidumping import restrictions. We first estimate structural determinants of India's import protection using the Grossman and Helpman (1994) model and provide evidence from its pre-reform tariff data of 1990 that is consistent with the theory. We then re-estimate the model on the Indian tariff data after the trade liberalization is complete and find that the model no longer fits, a result consistent with theory and evidence provided in other settings that India's 1991-1992 IMF arrangement can be interpreted as resulting in an exogenous shock to India's tariff policy. However, when we re-estimate the model on data from 2000-2002 that more completely reflects India's cross-product variation in import protection by including both its post-reform tariffs and its additional non-tariff barriers of antidumping and safeguard import protection, the significance of the Grossman and Helpman model determinant estimates is restored. We interpret these combined results as evidence that India unwound its commitment to reduce tariffs through use of antidumping and safeguard protection in the face of political-economic pressure. The estimates are also economically important and provide one explanation for separate results in the literature that the magnitude of import reduction associated with India's use of antidumping is similar to the initial import expansion associated with its tariff reform. Finally, we interpret the implications of our results for the burgeoning research literature examining the effects of liberalization on India's micro-level development.     

Assessing inherent model bias: An application to native displacement in response to immigration

There is a long-standing debate among academics about the effect of immigration on native internal migration decisions. If immigrants displace natives this may indicate a direct cost of immigration in the form of decreased employment opportunity for native workers. Moreover, displacement would also imply that cross-region analyses of wage effects systematically underestimate the consequences of immigration. The widespread use of such area studies for the US and other countries makes it especially important to know whether a native internal response to immigration truly occurs. This paper introduces a microsimulation methodology to test for inherent bias in regression models that have been used in the literature. We show that some specifications have built biases into their models, thereby casting doubt on the validity of their results. We then provide a brief empirical analysis with a panel of observed US state-by-skill data. Together, our evidence argues against the existence of native displacement. This implies that cross-region analyses of immigration’s effect on wages are still informative.     

Insuring Eggs in Baskets: Should the Government Insure Individual Risks?

The vast majority of crop and revenue insurance policies sold in North America are single‐crop policies that insure against low yields or low revenues for each crop grown on a particular farm. This practice of insuring one crop at a time runs counter to the traditional risk management practice of diversifying across several enterprises to avoid putting all of one's eggs in a single basket. This paper examines the construction of a whole‐farm crop revenue insurance program to include livestock price risk. The results show that at coverage levels of 95% or lower, the fair insurance premiums for this product on a well‐diversified Iowa farm are far lower than the fair premiums for the corn crop alone on the same farm. The calculation of premium rates for the whole‐farm insurance product is derived from a method for imposing correlations first proposed by Iman and Conover in 1982. The potential income transfer from crop insurance is also examined. We find that the income transfer due to the subsidization of single‐commodity policies is greater than the total premium for whole‐farm policies. La grande majorité de polices d'assurances de récolte et de revenu agricole vendues en Amérique du nord sont des polices de récolte individuelle qui assurent contre des rendements faibles ou bas revenu pour chaque récolte cultivée par une ferme particulière. Cette pratique de n'assurer une récolte à la fois fonctionne à l'opposé de la pratique traditionnelle de gestion des risques par la diversification à travers plusieurs entreprises pour éviter de mettre tous ses oeufs dans un seul panier. Cet article examine la construction d'un programme d'assurance agricole pour l'ensemble des récoltes produites par une ferme y compris le bétail évalue le risque. Les résultats montrent qu'aux niveaux d'assurance plus petits ou égaux à 95 pourcents, les primes d'assurance justes pour ce type de police pour une ferme bien diversifiée de l'Iowa sont bien inférieures aux primes justes pour une police de simple couvrant le maïs et ce pour la même ferme. Le calcul des taux de prime pour une police couvrant l'ensemble des récoltes est dérivé d'une méthode pour imposer des corrélations originalement proposée par Iman et Conover en 1982. Le transfert potentiel de revenu à partir de l'assurance de récolte agricole est également examiné. Nous trouvons que le transfert de revenu dûà la subvention des polices pour récolte singulière est plus grand que la prime entière pour une police couvrant l'ensemble des récoltes.     

Audit firms face downward-sloping demand curves and the audit market is far from perfectly competitive

We discuss the discrete choice demand estimation methods applied by Guo et al. (2017) in the audit setting. We then review insights into audit market competition that demand estimation has already provided. We conclude that the audit market is far from perfectly competitive.     

After the Supreme Court decision: what's next for reform

A Republican sweep in the November elections could lead to repeal of most of the Affordable Care Act, to be replaced with legislation to achieve limited coverage expansion. A Romney victory and split Congress would likely result in Republicans using their administrative authority to modify or disrupt implementation of the act, with provisions altered or repealed where bipartisan agreement exists. An Obama victory and split Congress would likely result in continued implementation of the act but with a delay to some elements.