Randall G. Kesselring

The advertising effect of university athletic success: A reappraisal of the evidence

Abstract In a 1987 article appearing in the Journal of Political Economy, R.E. McCormick and M. Tinsley argued that curtailment of university athletic programs could harm academic programs by reducing average freshman SAT scores. This study uses recent data and an improved specification to provide evidence that successful athletic participation does not provide measurable academic benefits to the university. In fact, evidence is provided that a universitys policy regarding admissions standards primarily determines the average level of freshman SAT scores.

The Economic Effects of Faculty Unions

The relationship between faculty salaries and unionism at Ph.D.-level universities is investigated. Unlike previous attempts at analyzing this topic, the model endogenizes the union-nonunion choice using appropriate techniques for analyzing limited dependent variables. These techniques allow computation of average salaries for all schools under the assumption that they are unionized and also under the assumption that they are not unionized. Subtraction of the predicted nonunion salary from the union salary provides an estimate of salary differences, which is corrected for selectivity bias.

Female income and the divorce decision: evidence from micro data

Escalating divorce rates during the 1960s and 1970s led to large numbers of academic investigations into the causes of divorce. Most of these studies concentrated on a significant increase in female income that resulted from rising female labour force participation rates. The difficulty with quantifying these arguments is that it is possible to observe the income of married females or it is possible to observe the income of divorced females, but it is not possible to observe both outcomes, simultaneously. This research attempts to resolve these difficulties by using sample selection techniques to correct for possible bias from simple observation of the income of married and divorced females.

Employment-at-will: An empirical analysis

State courts differ on the employment-at-will doctrine. Most allow maximum employer discretion in employee dismissals, but a few have added significant protections against arbitrary termination of employment. Our hypothesis, tested via a probit model, is that this variation among states can be explained by a combination of statewide economic and demographic characteristics. The model correctly predicts the employment-at-will position of 47 of 50 states.

Discouraged vs. added workers: Variation by gender, age, and marital status

Abstract This paper analyzes the relationship between aggregate unemployment and the labor force participation of males and females of differing ages and marital circumstances. According to the discouraged-worker effect, a higher unemployment rate causes some workers to leave the labor force leading to a reduction in both the labor-force participation rate and the unemployment rate. To shed light on this statistical incongruity, a unique data set consisting of monthly observations from the Current Population Survey is used to extract the labor force participation rates of males and females of three different age categories and three different marital classifications. Impulse functions from vector error-correction models indicate that discouraged workers are more likely though not exclusively to consist of married males and females between 50 and 65 years of age. No statistically significant evidence of a net added-worker effect is found among married females or males in any age group.

Setting the target for the federal funds rate: the determinants of Fed behaviour

This article analyses the factors the Federal Open Market Committee (FOMC) considers in setting the target for the federal funds rate. The sample consists of 262 FOMC meetings between 1983 and 2005. Statistical results indicate that the Feds target is inversely related to the unemployment rate and directly related to several measures of expected inflation. Technical factors such as the number of days since the last target change, the size and direction of the previous target change and the gap between the actual federal funds rate and its targeted value were also statistically significant explanatory variables. Estimations were performed using Ordinary Least Squares (OLS), censored regression and two types of ordered probit; but the results proved to be robust regardless of the statistical technique used.