Essays in Applied Microeconomics

Essays in Applied Microeconomics

Author: Ioana Sofia Pacurar

Publisher:

Published: 2014

Total Pages:

ISBN-13:

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This doctoral dissertation comprises essays in Applied Microeconomics with focus in Health and Regional Economics. The first investigates a neo-classical hospital production model for cost and quality implications by payment source in the context of the 2010 Affordable Care Act. The second essay demonstrates positive crime effects induced by Hurricane Katrina population migration. Specifically, the first essay evaluates hospital cost efficiecies emanating from changes in public reimbursement levels and/or shifts in hospital care demand or health care budgets. Using 2000-2008 data from Tennessee Joint Annual Reports of Hospitals, hybrid generalized translog multi-product cost functions were estimated with controls for multi-dimensional quality, diagnostic mix, and hopital heterogeneity. The production technology cost model, accounting for technological change and geographic effects, was estimated using the Iterative Seemingly Unrelated Regression methodology. Factor demand elasticities, alternative conceptual measures of the elasticites of substitution, scale and scope economies were evaluated. This is the first study to quantify opportunities for exploiting scope economies by payer type (e.g., Medicaid/Tenncare with private payers). Policy implications were explored. Using a natural experiment, the second essay tests an empirical link between the forced evacuation and crime types countrywide and in Houston, TX, while avoiding concerns of endogeneity due to selection or simultaneity. Few prior economic studies of Katrina probed impacts on host labor markets or on evacuees' labor and schooling outcomes, overlooking potential effects on local crime in spite of anecdotal evidence. To ensure identification with a Difference-in-Difference specification, the number of evacuees going to a metropolitan area was instrumented by its distance to New Orleans, LA. Katrina immigration was found to rise the incidence of murder and non-negligent manslaughter, robbery, and motor vehicle theft. The analysis of Houston post-shelter consequences of Katrina on crime showed increases murder, aggravated assault, illegal possession of weapons, and arson. While the regional analysis was based on the Current Population Survey and data from the Federal Bureau of Investigation, the Houston study used data provided by the Police Department. Robustness checks evaluating self-selection utilized the Displaced New Orleans Resident Pilot survey. It remained undetermined whether the crimes were committed by the evacuees, or triggered by their presence.


Essays in Applied Microeconomics

Essays in Applied Microeconomics

Author: Brandon Joel Tan

Publisher:

Published: 2021

Total Pages: 0

ISBN-13:

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This dissertation consists of three independent essays. The first essay develops an urban spatial model with heterogeneous worker groups and incorporating travel to consume non-tradable goods and services. It estimates the model using detailed farecard and administrative data from Singapore to quantify the impact of the Downtown Line. It estimates large welfare gains for high-income workers, but near zero gains for low-income workers. All workers benefit from improved access to consumption opportunities, but low-income non-tradable sector jobs move to less attractive workplaces. Abstracting away from consumption travel results in a five-fold underestimation of the inequality effects and failure to capture the spatial re-organization of low-income jobs in the city. The second essay studies the consequences of letter grades serving as noisy measures of academic achievement. It exploits a regression-discontinuity design with marks as the running variable and finds that receiving a better grade in a single class results in $32 USD greater monthly earnings post-graduation. The effects are larger than expected from a corresponding cumulative grade point average increase via "employer-signaling", suggesting that future changes in behavior and outcomes may be important. It then finds that marginal students who receive a worse grade take significantly "easier" courses and earn lower grades in future semesters. The third essay uses administrative data from Karnataka, India on the universe of good shipments between any two establishments to measure the extent to which firms own and utilize production links for sourcing physical inputs. It calculates that 11% of input value can be potentially sourced from integrated upstream establishments and that 38% of products are sourced exclusively from within the firm. It compares its methodology to the literature and highlights two sources of bias in previous studies. Finally, it quantifies the extent to which firm boundaries serve as a barrier to trade and looks at factors associated with within-firm sourcing.