Some Regional Economic Perspectives on Covid-19 Impacts

It has been about eight months since the Covid-19 pandemic began sweeping across America, causing the well-known health care emergency, and major economic and fiscal distortions. Presumably, we are in the last stages of the damage, as activity has picked up in most realms of daily life. However, recovery problems linger in many areas, including air travel, cruises, hotels, conventions, concerts, and schools. While not over, enough information has emerged to start documenting the regional economic impacts around Kentucky. This note examines the latest public data to study the apparent economic and fiscal damage related to Covid responses, public and private, in the state. This includes the sharp reductions in employment and payrolls due to business interruptions, but also the mitigating (and contributing) impacts of the federal relief packages

Tax Limits, Houses, and Schools: Seemingly Unrelated and Offsetting Effects

Property tax limitations, as well as other tax and expenditure restrictions on state and local governments in the United States, date back to the late nineteenth century. A surge in property tax limitation legislation occurred in the late 1970s and early 1980s, and its effects on government revenue, school financing, and educational quality have been studied extensively. However, there is surprisingly little literature on how property tax limits affect housing markets. For the first time, we examine the impacts of property tax limitations on housing growth, in addition to their impacts on housing prices. Using state-level data over twenty-three years, we find that property tax limits increase housing prices (indexes) by approximately 1.6%. These limits appear to have little impact on the growth in the housing stock, as measured by the number of permits. Our evidence suggests that this is because while property tax limits reduce property taxes they also increase the price of housing. These two counteracting effects lead to ambiguous impacts on the gross price of housing.

Measuring the Spread of COVID-19 in Kentucky: Do We Have the Right Data?

We examine various measures of COVID-19 infections, hospitalizations and deaths, with an emphasis on data for Kentucky. We find that: Data on the number of new reported cases of the disease obtained from convenience samples (as opposed to representative random samples) is an inaccurate measure of the spread of the disease in the State. Using CDC data and national studies, it appears that there were ten times the number of infections in March than reported for Kentucky at the time and by September the State is still capturing only one out of two people infected. A better measure of new cases can be obtained from model-based estimates of new daily cases that adjusts for the number of people being tested, the demographic characteristics of who is being tested, hospitalization rates, death rates, data on mobility, as well as the known biases in the reported data

Estimating the Social Value of Higher Education: Willingness to Pay for Community and Technical Colleges

Much is known about private returns to education in the form of higher earnings. Less is known about social value, over and above the private, market value. Associations between education and socially-desirable outcomes are strong, but disentangling the effect of education from other causal factors is challenging. The purpose of this paper is to estimate the social value of one form of higher education. We elicit willingness to pay for the Kentucky Community and Technical College System directly through a stated-preferences survey and compare our estimate of total social value to our estimates of private value in the form of increased earnings. Our earnings estimates are based on two distinct data sets, one administrative and one from the U.S. Census. The difference between the total social value and the increase in earnings is our measure of the education externality. Our work differs from previous research by eliciting values directly in a way that yields a total value including any external benefits and by focusing on education at the community college level. Our preferred estimate indicates the social value of expanding the system substantially exceeds private value by approximately 50 percent.social returns, education externalities, contingent valuation, earnings

Estimating the social value of higher education: willingness to pay for community and technical colleges

Much is known about private returns to education in the form of higher earnings. Less is known about social value, over and above the private, market value. Associations between education and socially-desirable outcomes are strong, but disentangling the effect of education from other causal factors is challenging. The purpose of this paper is to estimate the social value of one form of higher education. We elicit willingness to pay for the Kentucky Community and Technical College System directly through a stated-preferences survey and compare our estimate of total social value to our estimates of private value in the form of increased earnings. Our earnings estimates are based on two distinct data sets, one administrative and one from the U.S. Census. The difference between the total social value and the increase in earnings is our measure of the education externality. Our work differs from previous research by eliciting values directly in a way that yields a total value including any external benefits and by focusing on education at the community college level. Our preferred estimate indicates the social value of expanding the system substantially exceeds private value by approximately 50 percent

The Individual, Regional and State Economic Impacts of Kentucky Community and Technical Colleges

Excerpt from the executive summary: This report presents the results of our nine-month effort to measure the economic value of the Kentucky Community and Technical College System (KCTCS), both directly to its students around the state, and indirectly to all residents of Kentucky. We find wide public support for KCTCS, and a willingness to pay for an expansion of its programs. We also find a large variation in the individual returns to community and technical college education, in terms of expected work-life earnings by gender and by region of the state

Author Correction: Limited capacity of tree growth to mitigate the global greenhouse effect under predicted warming.

An amendment to this paper has been published and can be accessed via a link at the top of the paper

Kentucky Labor Supply and Demand Surveys

Excerpt from the executive summary: The Center for Business and Economic Research at the University of Kentucky (CBER), along with its partners, the Survey Research Center at the University of Kentucky (UK-SRC), the Survey Research Center in the Urban Studies Institute at the University of Louisville (UL-SRC), and the Department of Economics at the University of Louisville, is pleased to present this final report on the findings of the Kentucky labor supply and demand surveys sponsored by the Kentucky Cabinet for Workforce Development. The two universities have put together a consortium including some of the best scholars in the region in the areas of labor economics, local economic development, and survey design and administration

Landscape-scale benefits of protected areas for tropical biodiversity

We are indebted to numerous local communities, PA and government agency staff, research assistants, and other partners for supporting the field data collection. Research permissions were granted by appropriate forestry and conservation government departments in each country. Special thanks is given to the Sarawak State Government, Sarawak Forestry Corporation, Forest Department Sarawak, Sabah Biodiversity Centre, the Danum Valley Management Committee, the Forest Research Institute Malaysia (FRIM), the Smithsonian Institute and the Tropical Ecology Assessment and Monitoring (TEAM) network, Sarayudh Bunyavejchewin, and Ronglarp Sukmasuang. Support was provided by the United Nations Development Programme, NASA grants NNL15AA03C and 80NSSC21K0189, National Geographic Society’s Committee for the Research and Exploration award #9384–13, the Australian Research Council Discovery Early Career Researcher Award DECRA #DE210101440, the Universiti Malaysia Sarawak, the Ministry of Higher Education Malaysia, Nanyang Technological University Singapore, the Darwin Initiative, Liebniz-IZW, and the Universities of Aberdeen, British Columbia, Montana, and Queensland.Peer reviewedPostprin

Analysis of ecological thresholds in a temperate forest undergoing dieback.

Positive feedbacks in drivers of degradation can cause threshold responses in natural ecosystems. Though threshold responses have received much attention in studies of aquatic ecosystems, they have been neglected in terrestrial systems, such as forests, where the long time-scales required for monitoring have impeded research. In this study we explored the role of positive feedbacks in a temperate forest that has been monitored for 50 years and is undergoing dieback, largely as a result of death of the canopy dominant species (Fagus sylvatica, beech). Statistical analyses showed strong non-linear losses in basal area for some plots, while others showed relatively gradual change. Beech seedling density was positively related to canopy openness, but a similar relationship was not observed for saplings, suggesting a feedback whereby mortality in areas with high canopy openness was elevated. We combined this observation with empirical data on size- and growth-mediated mortality of trees to produce an individual-based model of forest dynamics. We used this model to simulate changes in the structure of the forest over 100 years under scenarios with different juvenile and mature mortality probabilities, as well as a positive feedback between seedling and mature tree mortality. This model produced declines in forest basal area when critical juvenile and mature mortality probabilities were exceeded. Feedbacks in juvenile mortality caused a greater reduction in basal area relative to scenarios with no feedback. Non-linear, concave declines of basal area occurred only when mature tree mortality was 3-5 times higher than rates observed in the field. Our results indicate that the longevity of trees may help to buffer forests against environmental change and that the maintenance of old, large trees may aid the resilience of forest stands. In addition, our work suggests that dieback of forests may be avoidable providing pressures on mature and juvenile trees do not pass critical thresholds