Oskar R. Harmon

Are Online Exams an Invitation to Cheat

In this study, the authors use data from two online courses in principles of economics to estimate a model that predicts exam scores from independent variables of student characteristics. In one course, the final exam was proctored, and in the other course, the final exam was not proctored. In both courses, the first three exams were unproctored. If no cheating took place, the authors expected the prediction model to have the same explanatory power for all exams, and, conversely, if cheating occurred in the unproctored exam, the explanatory power would be lower. Their findings are that both across and within class, variations in the R-squared statistic suggest that cheating was taking place when the exams were not proctored.

The income elasticity of demand for single-family owner-occupied housing: An empirical reconciliation

Abstract Past studies estimate the permanent income elasticity of demand for single-family owner-occupied housing to range from 0.14 to 1.5, a range much too broad to be of any use for solving policy questions. Data from the Panel Study of Income Dynamics are used herein to test the sensitivity of this income elasticity to several factors. The results suggest that differences in sample population with respect to duration of housing tenure explain a large portion of the variation in the estimates of this elasticity. The paper concludes that for short-run applications the probable value of this elasticity is approximately 0.70 and for long-run applications the probable value of this elasticity might best be taken as approximately 1.00.

Specification tests in hedonic models

Specification testing can be an effective method for addressing the considerable econometric problems present in hedonic models. In this article, we suggest the use of three different Hausman-type specification tests—tests for the hedonic price equation, each preference equation, and a system of equations—as a way of isolating the sources of misspecification in a hedonic model. Using a national data sample as an example, we illustrate the use of these tests to guide model specification in a simultaneous setting.

Housing Adjustment Costs: Their Impact on Mobility and Housing Demand Elasticities

The role of housing adjustment costs in influencing mobility decisions, and the relationship between these and housing demands is not well understood. Here we try to examine how changes in adjustment costs as well as in such demand factors as income, influence the decision of households to adjust their housing consumption through moving. Empirically, we use a sample of recently moving homeowners from the PSID and provide evidence indicating adjustment costs are more important than other demand factors in influencing mobility decisions. We also argue that sample selection may bias estimates of housing demand elasticities when the sample is restricted to recent movers because the influence of adjustment costs in the mobility decision are not accounted for. Testing for this using the Heckman two-stage procedure, however, showed this was not a significant problem. Copyright American Real Estate and Urban Economics Association.

Comparing the effectiveness of different presentation formats for workshops on introductory library skills

Abstract Internet access to library electronic databases significantly increased user demand for library instruction. As the supplier of user education services, there has been rising interest among librarians in the cost and effectiveness of alternative presentation formats. This article describes our experiment to compare the difference in effectiveness between a real-time hands-on lecture/demonstration with a high active learning component, and an eclectic format that combines the traditional “passive” lecture format with an “active” hands-on component. We administer pre-and postsurveys to the different classes and find that the eclectic format is associated with significantly higher student retention of material.

Portfolio Analysis and Vertical Equity: a New York Application

This study makes two contributions to the literature on portfolio models and the analysis of state finances. First, the study applies recent developments in time series analysis—unit root tests for stationarity—to develop more efficient estimates of tax growth and tax instability than heretofore. Second, the study extends the conventional tax portfolio model, which balances the portfolio mix to maximize stability for selected growth targets, to encompass a third tax policy goal: vertical equity. The model is applied to New York State to demonstrate its practical usefulness as a fiscal tool for state policy analysts.

An Empirical Evaluation of Two Methods for Estimating Economic Damages

An Empirical Evaluation of Two Methods For Estimating Economic Damages A variety of approaches have been proposed and are used by economists to estimate economic damages in personal injury/wrongful death tort cases. These approaches vary from the straightforward offset or Alaska method, which enables one to calculate economic damages by multiplying the current earnings level by the number of years of worklife expectancy, to more complex approaches involving the use of real wage growth and discount rates and an age-earnings profile adjustment. Although each approach has some theoretical foundation, no one has attempted to empirically evaluate which method does the best job in forecasting earnings losses for a large sample of workers. This article will attempt to fill this void in the economic damages literature by examining a longitudinal sample of workers whose earnings are available from 1968 through 1983. A longitudinal sample is ideal for this type of study since it can be assumed that, as of a certain age, workers either die or become permanently disabled. From the earnings of the individual prior to the hypothesized year of death or diablement, future wages may be projected and the present value obtained. The predicted present values may be compared with the actual present values using the individuals wages after this arbitrary year. Two methods will first be presented that will be used to estimate economic losses. Next the data set to be employed along with the empirical methodology will be discussed. The following section will present the empirical results followed by conclusions. Estimating Economic Damages The methods used by economists to estimate economic damages vary considerably. An approach which has received a great deal of support in recent years and is required in some states is the offset method. This method simplifies the analysis by assuming that the rate of wage growth equals the rate of discount. (1) Because these two rates are equal, the present value of the earnings losses is simply the product of the current earnings level and the number of years of worklife expectancy. The theoretical justification for this approach is that wage growth rates and interest rates are both affected by inflation implying that these two variables are highly correlated. One major benefit of this approach is simplicity of presentation to a jury of non-economists. Disadvantages include the fact that these two rates are not exactly equal so this method represents an approximation at best. Furthermore, this method can over estimate earnings losses when one considers income and social security taxes that will be paid on these gross earnings amounts. (2) The approach that will be compared to the offset uses an age-earnings profile to adjust earnings for each year. (3) It is well known that earnings for the typical person follow an inverted U pattern with respect to age. (4) Earnings increase rapidly earlier in the life cycle due to the continued investments in human capital, level off in the middle years, and then decline due to the depreciation of human capital as well as declines in hours of work. The rationale for using this approach is that in addition to the increases in wages due to inflation and aggregate increases in productivity, individuals earnings may increase or decrease depending upon their age. For example, a typical 25-year olds earnings increase quite rapidly. Therefore, the offset approach alone may underestimate the loss for this individual. Conversely, an individual at the upper end of the age distribution may have decreasing earnings so that a slight overestimation may occur. Data and Models The data for this study come from the random portion of the Panel Study of Income Dynamics (PSID) for 1968 through 1983. The PSID is a longitudinal survey with detailed information on the financial and demographical characteristics of the sample families. …

Active-Learning Exercises for Principles of Economics Courses

This Web site (http://www.harmon.uconn.edu/Wikispaces.htm) describes using an online drawing program and bulletin board to create active-learning activities for a class on principles of economics. In the activity, the student downloads an initial diagram that sets up a textbook scenario on principles of economics. To finish the activity, the student uses a free online imageediting program to diagram the outcome predicted by economic reasoning and then posts it to a free online bulletin board. The approach of digital drawing and posting is a teaching innovation we have not seen described elsewhere. The Web site presents examples of this activity and a quick-start guide for using SumoPaint.com and WikiSpaces.com. There is flexibility for adjusting the difficulty level of the activity, for courses at high school or college level, by adjusting the information included in the initial diagram. Also, there is flexibility for adjusting the level of student interaction: Students can post individually or as members of a group. They can learn from each other’s posts by posting to a class wiki page and can post constructive comments, or the posts can be made into a wiki page with access restricted to a group or an individual. The user ID need not be identified in the bulletin board. Posts can be made anonymously by using favorite screen names or avatars. The editing software and bulletin board can be used with any textbook and course management software. There is flexibility for adapting the exercise to a range of different classroom formats and varied physical locations of the student. For example, it can be used in an online class where students have time and space to work comfortably on their computer. Or, it can be used in a faceto-face (f2f) classroom where the students have laptops. Then the activity is designed to have minimal drawing demands, and the instructor can display the posted diagrams on an overhead projector and lead a class discussion around them.

A New View of the Incidence of the Property Tax: the Case of New Jersey

State and local legislators in the 1990s face difficult choices concerning the appro-priate mix of state and local taxes. Essential to making informed decisions is an understanding of the distributional effects of existing sources of tax revenues. Unfortunately, in this regard the literature on the New View of property tax incidence has overlooked the issue of the incidence of the property tax at the statewide level. This study applies the New View tax incidence model to analyze the distributional effects of the property tax in New Jersey. The results suggest that in a state with property-tax rates above the national average—and with most of the tax base in residential property—the statewide incidence of the property tax is proportional.

Proctored in Person or via Webcam: Is There a Difference?

This study uses data from a Principles of Microeconomics course taught in online format. For the cumulative multiple-choice final exam, students were asked to select one of two proctoring formats: a traditional proctor in an in-person classroom, or proctored at home via a webcam proctoring service. Learning outcomes are predicted from a model with independent variables of student characteristics common to the literature. The authors expect the prediction model to have the same explanatory power for both proctored exam formats. If there is a significant difference in explanatory power of the two models, this can be attributed to unobserved factors such as cheating or anxiety related to the proctoring format. This study is a follow-up to an earlier study on the comparison of the proctoring formats of the traditional an in-person classroom proctor and an unproctored online exam.