The curse of natural resources: An empirical investigation of U.S. counties

Research consistently shows that natural resource dependence tends to be associated with lower economic growth. However, the studies typically focus on differences across nations or states. We fill a gap in the literature by testing the so-called resource curse at a more disaggregated county level. Our results show clear evidence that resource-dependent counties exhibit more anemic economic growth, even after controlling for state-specific effects, socio-demographic differences, initial income, and spatial correlation. A case study analysis of Maine and Wyoming, and the counties within, highlight the growth effects of specializing in natural resource extraction.     

Interview Effects in an Environmental Valuation Telephone Survey

Because of the lack of markets for many environmental services, economists have turned to valuation surveys to estimate the value of these services. However, lack of market experience may cause respondents in valuation surveys to be more prone to interview effects than they would be with other opinion surveys. Without reference to market price or experience, respondents are less likely to have well-defined preferences, which may cause respondents to be more easily influenced by the interview process and characteristics of the interviewer. In this paper, we investigate interview effects in a random digit dial telephone survey of recycling valuation and behavior. Following previous research in both psychology and survey methodology, we test the direct effects of interviewer gender and race, as well as the interaction effects between interviewer and respondent characteristics. Using data from 130 interviewers and 1,786 interviewees, we apply a hierarchical regression model that accounts for the clustering of interviews and controls for a variety of other confounding variables. We confirm the existence of both direct and conditional interviewer effects. Respondents state higher willingness to pay when interviewed by white or female interviewers than by non-white or male interviewers. There were also significant interaction effects between interviewer and respondent characteristics. The directions of the interviewer effects are consistent with previous survey research and social psychology theories. We also identify some non-traditional interview process factors that have an influence on survey responses.     

Market switching in shipping — A real option model applied to the valuation of combination carriers

This paper derives a real options model of flexibility and applies it to shipping, valuing the option to switch between the dry bulk market and wet bulk market for a combination carrier, a ship type that is capable of operating in both markets but that has fallen out of favor due to high price tags. The model is a mean-reverting (Ornstein–Uhlenbeck) version of a standard entry–exit model with stochastic prices. A closed form solution for the value of flexibility is derived, expressed in terms of Kummer functions. The estimated value of flexibility is related to historical price differentials between combination carriers and oil tankers of comparable size. Based on numerical experiments it is concluded that new combination carriers may enter the market in the near future.     

Short-Run Supply Responses in the U.S. Beef-Cattle Industry

This article investigates the response of beef-cattle producers to changes in the price of cattle. Previous research has suggested that there may be a negative short-run supply response to a permanent increase in the price of cattle. We build a dynamic, rational expectations model that separates the markets for fed and unfed beef. This separation generates predictions that the supply response is generally positive, even for permanent shocks in the short run, and nests the negative supply response as a special case for appropriately restricted demand shocks.