Myra J. McCrickard

Economic Freedom and Service Industry Growth in the United States

The growth of an economy depends upon entrepreneurial activities leading to the formation of new businesses and the production of new goods and services. In turn, institutions influence entrepreneurial activity. Public policy is an attribute of the institutions under which entrepreneurs operate. One element of the institutional environment is the degree of economic freedom under which entrepreneurs form and operate their business activities. The degree of economic freedom affects not only profit opportunities for entrepreneurs, but also the level and the type of economic activities they pursue. We examine how the entrepreneurial activity and level of employment in U.S. service industries respond to changes in the degree of economic freedom among states. Our findings suggest that the relationship between entrepreneurial outcomes and economic freedom varies significantly by industry. In some industries, such as business and personal services, increases in economic freedom lead to growth in the number of firms and the level of employment. However, the reverse is true for other industries, such as health, social, and legal services.

Rational expectations and the demand for money: A nonparametric approach

Abstract This paper tests the U.S. demand for money for evidence of the effect of rational expectations of the income and interest rate variables that enter as arguments into that function. The data employed are simple-sum and Divisia aggregates, and the nonparametric tests are of the identification and information orthogonality of the various monetary measures. The Akaike Criterion is used to distinguish among the alternative specifications. While non-rationality is the typical result, Divisia aggregates appear to be more “rational” than simple sum. There is evidence of mean-reversion in interest rates as well.

Stuck Behind the Math: Just How Helpful Can One Expect Technology to be in the Economics Classroom?

This paper studies the efficacy and motivation for using technology when explaining mathematical concepts in economics pedagogy. It links practice with theory by examining the use of technology in light of current literature on active and cooperative learning in economics in conjunction with extensive research in mathematics education concerning the effectiveness of technology in teaching. Suggestions on how to implement teaching strategies with computer technology are discussed within the context of the computer algebra system, Maple. A variety of specific applications using Maple technology are provided in an online appendix.

Productive versus unproductive entrepreneurship: Industry formation and state economic growth

Purpose – The purpose of this paper is to examine the correlation between the degree of economic freedom in state institutions and industry employment and then determine how these correlations relate to economic growth. Design/methodology/approach – The authors find the correlation between employment and economic freedom for each NAICS industry code and then calculate total employment in industries with positive correlation and negative correlations. The authors use these values in a GDP equation. Findings – The authors find that employment growth in industries characterized by a negative correlation is associated with a decline in state per capita GDP. When the correlations between employment and economic freedom are positive, state per capita GDP tends to grow, even after accounting for overall economic freedom in the state. Research limitations/implications – Eliminating or reducing opportunities for firms to use government institutions to gain special treatment will lead to greater economic growth. Or...

Testing Murphy, Shleifer and Vishny

We use the model developed by Murphy, Shleifer and Vishny (1991) to examine the causal relationship between institutions as measured by economic freedom and industry employment, and then given the causality, examine how the amount of employment in these causal industries influences economic growth. Only a small percentage of employment in each state has a causal relationship with economic freedom, but when the causal relationship is negative, greater employment in these industries generally leads to reductions in state per capita GDP. When the causal relationship between employment and economic freedom is positive, state per capita GDP tends to grow, even after accounting for overall economic freedom in the state. Policy implications are that removing the opportunities for firms to use government for special treatment will lead to greater economic growth.

Nurturing Student Feedback of Skill Development? An Empirical Argument for the Use of Active Learning Teaching Techniques

We use regression analysis to measure the impact of student exposure to active learning teaching techniques on academic achievement in economics. Pre and post testing was used to determine the value added of a one semester Principles of Economics course. We find that students who participate in classes taught with a combination of traditional lecture and active learning exercises perform better academically than their colleagues who were exposed solely to traditional lecture methodology. Furthermore, by controlling for learning style differences, we find that performance varies depending upon the interaction of learning style with exposure to active learning techniques. In accordance with much of the education literature, our empirical results suggest that there are indeed benefits to introducing a variety of techniques in undergraduate economics courses.