Douglas J. Lamdin

Evidence of Student Attendance as an Independent Variable in Education Production Functions

Most studies of student performance that use the production function or input-output approach do not consider student attendance as an independent variable. Data from Baltimore public elementary schools indicate that student attendance is positively and significantly related to standardized achievement test performance. Consistent with other studies, the importance of the socioeconomic status of the students and the lack of a positive influence of school input measures such as the teacher/pupil ratio and expenditure per pupil are apparent.

Implementing and Interpreting Event Studies of Regulatory Changes

The study of the stock price reaction to an event is a standard tool in economics and finance. The spate of regulatory changes in recent years provides ample opportunity for such studies. However, event studies of regulatory changes present a number of challenges. Analysts must carefully design and interpret tests of hypotheses regarding the effects of regulatory changes because of the nature of the regulatory process and financial markets. I discuss the way to test for the impact of regulatory changes in an event study. I also comment on what event studies can and cannot tell us about the effects of regulatory changes, and on ways to more effectively implement them.

Testing for the Effect of School Size on Student Achievement within a School District

Studies of student achievement generally do not consider the effect of school size, or do so peripherally. Using the production function approach and data from Baltimore (Maryland) public elementary schools, school size is shown to have a negligible effect on the performance of these students on standardized achievement tests. Consistent with other studies, the importance of the socio-economic status of the students and the lack of a positive effect of school input measures such as the teacher/pupil ratio and expenditure per pupil is borne out in these results.

Ex-dividend Day Share Price Behavior: Effects of the Tax Reform Act of 1986

The authors examine ex-dividend day share price behavior in light of the Tax Reform Act of 1986. Data from 1982 through 1991 are examined. The evidence generally supports the traditional view that differential taxation does affect the valuation of dividends and capital gains rather than the tax irrelevance view that it does not. Copyright 1993 by MIT Press.

Event Studies and the Analysis of Antitrust

Abstract A standard tool in economics and finance is the event study in which one examines the impact of an event on stock returns. While hundreds of such studies have been published, the concern here is with a small subset: the use of event studies to examine antitrust issues. After a brief review of the event study technique, we provide a review of the literature that is the nexus of event studies and antitrust. The goal is to not only chronicle the development of this literature and highlight the major findings, but also to comment on important issues concerning implementation of this research method and the interpretation of the results.

Measuring Market Response to Regulation of the Cable TV Industry

During the 1988–1990 period, the cable television industry was subject to a number of regulatory events. These centered on possible reregulation of rates for basic service and reduction of entry barriers for potential competitors. Using the event study methodology on a portfolio of cable firms, we find evidence that news of no reregulation caused significant positive abnormal returns. News of reregulation caused insignificant negative abnormal returns. These findings provide some support for the traditional consumer protection theory of regulation. News related to entry barriers generally had no significant effect on returns, which suggests that elements of natural monopoly may exist in the industry.

Event Studies of Regulation and New Results on the Effect of the Cigarette Advertising Ban

Questions concerning the effects of regulation on stock returns are important to regulators and investors. Analysts must carefully design and interpret tests of hypotheses regarding these effects because of the nature of the regulatory process and financial markets. I discuss the way to test for the impact of regulation on firm value and required return in an event study. I illustrate with an examination of the 1971 radio and television cigarette advertising ban, and find results at odds with those of an earlier study.

School Choice in Theroy and Practise: Taking Stock and Looking Ahead

School choice has recieved increasing attention from scholars and policy-makers. We review the rationales for government financing and provision of education and the arguments made for using market mechanisms in education provision. We then take stock of school choice in practise, focussing on development in the US. In so doing, we discuss how school-choice initiatives can be evaluated, and suggest direction for future research.

Investment and saving and the euro crisis: A new look at Feldstein–Horioka

We examine the relationship between investment and saving for a cross section of European countries before and during the euro crisis. As has historically been found, investment is positively and significantly related to saving. This relationship shows evidence of being stronger during the height of the euro crisis. This increase is a departure from a general decline in the relationship over time.

Attendance Revisited: A Reply to Borland and Howsen

Abstract Although the points raised by Borland and Howsen (1998) are valid in general, they do not vitiate the results in Lamdin (1996). Clearly, though, the attendance-achievement relationship warrants further examination. Additional regression-based studies with more refined data, as well as controlled experiments, are in order.