Bagwell Center Funded Faculty Research

The Bagwell Center provides funding to support faculty in conducting basic and applied academic research, in-line with our mission. The expectation is that funded projects will ultimately advance the understanding of markets and potentially inform policymaking decisions.

Funds are committed to a principal investigator based upon a project proposal, but before research is conducted. The final research output is an expression of the findings and/or views of the researchers (and not the Bagwell Center). No party had the right to review the research output prior to circulation. The outputs of these research projects are eligible for publication in peer-reviewed academic journals.

Summer 2020

  • Author(s)
    JC Bradbury, Professor of Economics, Bagwell Center Affiliated Faculty Member

    Title
    "The Impact of Sports Stadiums on Localized Commercial Activity: Evidence from a Business Improvement District"

    Abstract
    Local government funding of sports stadiums is frequently justified as stimulating economic activity despite consensus contrary findings in the academic literature. Though some studies have identified positive neighborhood effects from stadiums on nearby residential property, scant research exists on highly-localized commercial activity that is hypothesized to spur development. This analysis exploits the recent relocation of a professional baseball team from downtown Atlanta to a pre-existing Georgia Business Improvement District (Community Improvement District or CID) in suburban Cobb County to estimate the impact of the stadium development on commercial property values. The existence of multiple CIDs in the metro-Atlanta area provides the opportunity to estimate a counterfactual comparison absent the stadium to draw causal inference regarding the stadium’s impact on economic activity using the synthetic control method. Estimates indicate that the stadium decreased commercial property values in the district, which is consistent with past studies that find little to no positive impact on economic activity. The results indicate that previous findings of positive impacts on residential property may not be applicable to commercial activity.

  • Author(s)
    James Boudreau, Assistant Professor of Economics, Bagwell Center Affiliated Faculty Member

    Title
    "Prevalence of Simpson’s Paradox in Nonparametric Statistical Analysis of Medical and Other Scientific Data: Theoretical, Computational, and Empirical Analysis"

  • Author(s)
    Robert Gmeiner, Visiting Assistant Professor, Bagwell Center Affiliated Faculty Member
    Mario Harper, Assistant Professor of Computer Science, Utah State University

    Title
    "Artificial Intelligence and Economic Calculation"

    Abstract
    In a day and age when socialism is ascendant in the United States and computer technology continually improves, it is reasonable to ask if economic planning is more viable than it once was. The classic arguments against central planning, put forward by Ludwig von Mises and F.A. Hayek are now decades old and do not account for the rapid and vast changes in technology. Since that time, a small amount of research has been done on the viability of socialism with modern advances in computing power. There are arguments for and against socialism guided by artificial intelligence (AI) and computer technology (see sections 2.1 and 3), but none of them takes a comprehensive view of the realistic capabilities and shortcomings of an AI-planned economy.

    Summary for Practitioners

  • Author(s)
    Alex Maslov, Lecturer, Department of Economics, Central Michigan University

    Title
    “Imperfect Competition in Online Auctions”

  • Author(s)
    Luc Noiset, Associate Professor of Economics, Bagwell Center Affiliated Faculty Member

    Title
    “Competition and the Productivity of Local Governments”

Summer 2019

  • Author(s)
    Aniruddha Bagchi, Professor of Economics, Bagwell Center Affiliated Faculty Member

    Title
    "Tax policy – is it a better alternative to patent policy?"

    Abstract
    It is believed that if there is no informational asymmetry between the firms and the government, firms could be remunerated for innovation using optimal taxation rather than patents. We show that under reasonable conditions (such as the government’s inability to customise the tax rate for each firm), patent protection is preferable than a tax/subsidy scheme if the marginal costs of the imitators are sufficiently higher than that of the innovator. Production inefficiency created by imitation is the reason for our result. If the marginal costs of the imitators are similar to that of the innovator, the authority can choose an appropriate patent breadth to replicate the outcome of the tax/subsidy scheme. Our result holds under both Cournot and Bertrand competition

  • Author(s)
    J.C. Bradbury, Professor of Economics, Bagwell Center Affiliated Faculty Member

    Title
    Can Movie Production Incentives Grow the Economy? Evidence from Georgia and North Carolina

    Abstract
    Most US states have adopted movie production incentives with the intention to stimulate state economic growth through film industry investment and related economic activity. Previous cross-state studies of film incentives have not identified a stimulus effect; however, the zero-sum nature of interstate competition to attract business through targeted incentives complicates the identification of economic effects. If benefits accrue only to the few states offering the greatest incentives, then the impact might not be evident through interstate comparisons. This study uses the synthetic control method to examine the economic impact of relatively large film tax credit and grant subsidies offered by Georgia and North Carolina. Both states experienced lower per capita income than expected after implementing film incentives, indicating that economic benefits did not accrue to the winners of this economic incentives arms race.

  • Author(s)
    Farah Hasin, Funded Researcher

    Title
    “Microfinance and Sustainable Entrepreneurship Development in Developing Countries: Lessons from Bangladesh”

  • Author(s)
    Alexander Maslov, Lecturer, Department of Economics, Central Michigan University

    Title
    "Skill Mismatch of Indigenous Peoples in Canada: Findings from PIAAC"

    Abstract
    Using the Programme for the International Assessment of Adult Competencies (Canadian sample) the paper examines overskilling among Indigenous off-reserve peoples and compares the outcomes to the other Canadian born. We construct several measures of skill mismatch in literacy and numeracy finding no statistically significant difference between aboriginal and non-aboriginal Canadian-born populations. We then use the developed measures in the analysis of wages and find that among First Nations, Metis and Inuit only the males of the former aboriginal group earn significantly less than their non-aboriginal Canadian-born counterparts.

Summer 2018

  • Author(s)
    James Boudreau, Assistant Professor of Economics, Bagwell Center Affiliated Faculty Member

    Title
    A Knife-Point Case for Sion and Wolfe’s Game

    Abstract
    Sion and Wolfe’s (1957) game is relatively well-known in the game theory literature for possessing almost of all of the properties sufficient for the existence of Nash equilibrium, yet still lacking one. Here we make a slight but specific alteration to their game that allows for the existence of equilibria, in an effort to explore just why equilibria failed to exist in the original case. We then connect our case to several other examples in the literature to show that these games all lack equilibria because they feature what we call hiding spots, which are crucial violations of the payoff security properties that have been established as sufficient for equilibrium existence. Since identifying hiding spots in some games is quite easy, relative fully verifying other conditions, this paper therefore serves as another step toward identifying conditions for the (non-)existence of equilibria.

  • Author(s)
    J.C. Bradbury, Professor of Economics, Bagwell Center Affiliated Faculty Member

    Title
    Do Movie Production Incentives Generate Economic Development?

    Abstract
    Movie production incentives (MPI) are a popular economic development strategy employed by US states. Film subsidies are intended to encourage external investment into an untapped industry that spills over onto complementary industries to generate economic growth through a multiplier. Despite their widespread use, the positive impact of MPIs on state economies has not been documented, and several states have halted MPI programs due to high costs and questionable efficacy. This study exploits the staggered implementation, suspension, and elimination of film incentive programs across states to estimate the macroeconomic impact of MPIs. Instrumental variable estimates that permit causal inference do not support the hypothesized positive impacts of film incentives on state economies.

  • Author(s)
    Marcus Marktanner, Associate Professor of Economics, Bagwell Center Affiliated Faculty Member

    Title
    An Estimator of the Economic Dividend from Economic Freedom

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