Exponential growth bias (EGB) is a largely unnoticed bias that plagues the financial decision making of most individuals in the United States. It is characterized as the tendency to linearize exponential compound saving and interest rates, and it shows itself through poor decision making around wrong estimates and/or no understanding of how money grows through time. Based on the theory that education and valid experience might tame EGB, a model was built to measure variable drivers of individual EGB related to exposure. Based on previous theory that more extreme situations demand more incentive for participation, it was hypothesized that the government dictated interest rates at times of individual’s first home purchases could subconsciously influence EGB, for two main reasons. First, a more expensive payment plan carries greater incentive to fully understand, and second, a first home purchase is a fundamentally monumental financial decision with potential to positively or negatively shape bias. A variable for interest rate at the time of a first home purchase was created a combined with more lifetime-housing-exposure variables theorized to influence EGB, to model overall effects of individual housing exposure on EGB. The results showed that government set interest rates hold no statistically significant influence on an individual’s current EGB, however, the marginal coefficients showed the correlations consistent with the theory. The model statistically significantly determined that the variables for number of homes purchased in a lifetime and price paid for a first home are inversely correlated with current EGB. In addition, income and education levels were statistically proven to be inversely correlated with current EGB.
In 2018, global sales in the art market increased 6% compared to 2017 (McAndrew, 2019). Without oversight, this art market leaves room for price corruption and unethical transactions. Antiquities and ancient art are then cultural property increasingly vulnerable to illicit trade. While cultural economics seeks to integrate art into working economic theory, little can be said of the price valuation for antiquities. What determines the price of ancient art and antiquities? Valuation of ancient art may be expressed intrinsically based on qualities commonly discussed by art professionals. Econometric methods are used to test the extent of the influence of origin, provenance, material, and literature on price. Empirical results examined present 87% of price variation by these qualities.
Steven D. Levitt, co-author of the New York Times best seller "Freakonomics: A Rogue Economist Explores the Hidden Side of Everything," discusses his book. Levitt's lecture shows how basic economic principles apply to the behavior of a diverse range of groups. Part of Notable Lectures & Performances series, Colorado College. Recorded May 2, 2006.
Professor Johnson (CC class of 1956) graduated with a major in economics. He was hired as an instructor in the Business Administration and Economics Department immediately following his graduation. After receiving his M.A. in Economics from Stanford University in 1959, he was promoted to assistant professor in 1961, associate professor in 1969, and professor in 1980. Professor Johnson's most notable contribution to the college was as registrar from the implementation of the Block Plan in 1970 to 1990. During his tenure, he initiated computerization of student and course records, an innovative point system, and a writing program across the curriculum. Following his retirement in 1995, he continued to serve as the coach of the Colorado College Forensics Team, a position he held for over 40 years.
Professor Ray O. Werner taught in the Colorado College Economics Department from 1948 until his retirement in 1987, giving him one of the longest tenures of any faculty member in the history of the college. Born in Edgar, Nebraska in 1922, Werner received his A.B. at Hastings College in 1942, his M.A. in 1947, and his Ph.D. in 1960, both from the University of Nebraska. He served in the U.S. Army during World War II, and as an Army and Air Force Reservist for many years thereafter. Not only was he chairman of the Colorado College Department of Business Administration and Economics from 1956 through 1977, but he also served the college on numerous committees, including the Athletics Board from 1960 to 1982. He was a founder of the college's chapter of Pi Gamma Mu, and co-founder of Blue Key. Among his many contributions to the Colorado Springs community, Werner has served as president of the United Way, president of the Chamber of Commerce, and member of the Board of Directors of the Colorado Springs National Bank, United Bank of Colorado Springs. The recipient of several awards for outstanding teaching, Professor Werner also contributed to many publications in the field of economics, notably as editor of the Legal Developments in Marketing section of the Journal of Marketing.
The Entrepreneur is the official newsletter of the Colorado College Department of Economics and Business.
Americans are increasingly financially fragile with massive credit card debt and a mounting inability to see themselves through times of financial hardship (i.e. the loss of a job or severe illness). Researchers find that one quarter of Americans could not come up with the savings or assets to cover a financial shock of $2,000 within 30 days. This lack of savings in the United States stands in stark contrast to the thrifty values espoused in a number of European and Asian countries, where saving is a stylish and popular practice. Traditional indicators of household savings rates (i.e. the real interest rate, public debt, and growth in GDP per capita) fail to capture all of the variation observed from country to country; and therefore, innovative approaches now incorporate various cultural factors. This paper seeks to build upon previous work, utilizing a unique three stage regression analysis to examine the question, to what extent do cultural differences influence the variation in household savings rates around the world? Ultimately, this research finds that nations that place a higher value on teaching children about thrift have higher household savings rates. However, it is important to note that this cultural value for thrift is a product of various historical, political, and economic forces. This suggests that one must reconsider a linear notion of causality between culture and economics and instead reflect upon the manner in which the two constantly interact with and influence one another.
The Entrepreneur is the official newsletter of the Colorado College Department of Economics and Business
The Entrepreneur is the official newsletter of the Colorado College Department of Economics and Business.
The Entrepreneur is the official newsletter of the Colorado College Department of Economics and Business.
The Entrepreneur is the official newsletter of the Colorado College Department of Economics and Business.
The Entrepreneur is the official newsletter of the Colorado College Department of Economics and Business.
Sexual violence is incredibly costly and devastating to both sexual assault victims and to society. Further, the issue of sexual assault has become increasingly prevalent on college campuses, with one in every five students being assaulted during their college careers. There are numerous factors contributing to the frequency and even existence of sexual assault, and it is the goal of this study to analyze a few of them. This study uses a censored regression model to analyze 18 different variables and their impact on reported sexual assault rates. Ultimately the study concludes that fraternity membership, athletics, and alcohol prevalence show a significant positive correlation with sexual assault rates, while sorority membership and percent female have a significantly negative correlation.
This research paper examined the enormous divide in terms of public health between Africa and the United States. Ten output countries were chosen from Africa and data was found on a number of public health measurements over the time period 1990-2016. The inputs of research and development and pertinent patents from the United States were also found over the same time period. Results showed that the only significant indicator of public health is the public health data from earlier years. The indirect spillover of R&D was proven to be insignificant.
