Interstate Cigarette Bootlegging: Extent, Revenue Losses, and Effects of Government Intervention

In this paper, we develop and estimate a model of commercial smuggling in which some, but not all, firms smuggle a portion of the cigarettes they sell. The model is used to examine the effects on interstate cigarette smuggling of the Contraband Cigarette Act and a change in the federal excise tax. We find that both policies have unintentional effects. While the Contraband Cigarette Act was imposed to reduce interstate smuggling, we find it had the opposite effect. In contrast, an increase in the federal tax is not intended to affect smuggling, but we find it increases the portion of cigarette sales that is commercially smuggled.

Who is Selling the Ivory Tower? Sources of Growth in University Licensing

Historically, commercial use of university research has been viewed in terms of spillovers. Recently, there has been a dramatic increase in technology transfer through licensing as universities attempt to appropriate the returns from faculty research. This change has prompted concerns regarding the source of this growth - specifically, whether it suggests a change in the nature of university research. We develop an intermediate input model to examine the extent to which the growth in licensing is due to the productivity observable inputs or driven by a change in the propensity of faculty and administrators to engage in commercializing university research. We model licensing as a three stage process, each involving multiple inputs. Nonparametric programming techniques are applied to survey data from 65 universities to calculate total factor productivity (TFP) growth in each state. To examine the sources of TFP growth, the productivity analysis is augmented by survey evidence from business who license-in university inventions. Results suggest that increased licensing is due primarily to an increased willingness of faculty and administrators to license and increased business reliance on external R&D rather than a shift in faculty research.

Are Faculty Critical? Their Role in University-Industry Licensing

Understanding the nature of the involvement of faculty in university licensing is im-portant for understanding how technology is transferred through licensing as well as more controversial issues, such as the need for university licensing. Using data from a survey of firms that actively license-in from universities we explore the importance of faculty in the licensing and development of inventions, as well as how and why they are used and how the use of faculty relates to characteristics of firms. In particular we find that the use of faculty through sponsored research in lieu of a license is closely related to the amount of basic research conducted by firms whereas the use of faculty within the terms of a license is related to the prevalence of personal contacts between industry R&D researchers and university faculty.

The Disclosure and Licensing of University Inventions

We examine the interplay of the three major university actors in technology transfer from universities to industry: the faculty, the technology transfer office (TTO), and the central administration. We model the faculty as an agent of the administration, and the TTO as an agent of both the faculty and the administration. Empirical tests of the theory are based on evidence from our survey of 62 US research universities. We find that the TTOs reported licensing objectives are influenced by their views of faculty and administration, which supports the assumption that the TTO is a dual agent. The theory yields predictions for whether or not faculty disclose inventions and if so, at what stage, which in turn affects license contract terms. We also examine how the portion of inventions disclosed at different stages varies with faculty quality. Quality is found to be inversely related to the share of license income allotted to faculty.

Elasticities in International Trade: Theoretical and Methodological Issues

This paper is a survey of recent research on specification, estimation and evaluation of trade elasticities. Since our focus is primarily methodological we do not give a compendium of recent estimates. Given the excellent and comprehensive nature of previous surveys, the marginal benefit of doing so would be small. In addition, we shall argue that any hope of obtaining a consensus of parameter values from trade equations must rely on taking a different approach. The approach involves using (and allowing the reader to use) as much information as is practically possible. There are both theoretical and econometric reasons to pursue such an approach, and we shall focus on studies which clarify them.Research Seminar in International Economics, Department of Economics, University of Michiganhttp://deepblue.lib.umich.edu/bitstream/2027.42/101016/1/ECON455.pd

Bilateral Trade Flows, The Linder Hypothesis, and Exchange Risk

Bilateral trade flows are used to examine the Linder hypothesis and the effect of exchange-rate variability in a gra vity-type trade model derived from an underlying demand and supply mo del. A behavioral model is used to justify examining these issues joi ntly. The model performs well empirically using a sample of seventeen countries for the period 1974-82. The authors find overwhelming supp ort for the Linder hypothesis and this version of the gravity model. Moreover, they find strong support for the hypothesis that increased exchange-rate variability affects bilateral trade flows.Research Seminar in International Economics, Department of Economics, University of Michiganhttp://deepblue.lib.umich.edu/bitstream/2027.42/101017/1/ECON456.pd

Near infrared spectroscopy for fibre based gas detection

Gas sensing systems based on fibre optic linked near infra red absorption cells are potentially a flexible and effective tool for monitoring accumulations of hazardous and noxious gases in enclosed areas such as tunnels and mines. Additionally the same baseline technology is readily modified to measure concentrations of hydrocarbon fuels - notably but not exclusively methane, and monitoring emissions of greenhouse gases. Furthermore the system can be readily implemented to provide intrinsically safe monitoring over extensive areas at up to ~250 points from a single interrogation unit. In this paper we review our work on fibre coupled gas sensing systems. We outline the basic principles through which repeatable and accurate self calibrating gas measurements may be realised, including the recover of detailed line shapes for non contact temperature and / or pressure measurements in addition to concentration assessments in harsh environments. We also outline our experience in using these systems in extensive networks operating under inhospitable conditions over extended periods extending to several years

Unemployment Compensation - Labor Dispute Disqualification - Public Policy and the Establishment

Claimants brought suit for unemployment compensation allegedly due them for a period of temporary unemployment. Their employer manufactured spark plugs which were assembled at its Ohio plant using component parts made at its Michigan plant some 50 or 60 miles distant. The parts were transported daily by truck to the Ohio plant, and the Michigan plant was under the direct supervision of the Ohio plant. When a labor dispute occurred at the Michigan plant, lack of parts forced the lay-off of claimants at the Ohio plant. Upon termination of the labor dispute and a resumption of production the claimants resumed their employment. Claims for unemployment benefits under the Ohio statute, which denies benefits when the unemployment is due to a labor dispute at the establishment, were denied by the Administrator and Board of Review of Unemployment Compensation. The Court of Common Pleas affirmed and on appeal to the Court of Appeals of Ohio, held, affirmed, one judge dissenting. The Michigan and Ohio plants constitute one establishment within the meaning of the Ohio act. The two plants are functionally integrated, physically proximate, and there is general unity in their operation. Adamski v. State of Ohio, Bureau of Unemployment Compensation, (Ohio App. 1959) 161 N.E. (2d) 907

Smuggling, Camouflaging, and Market Structure

We examine how market structure and enforcement affect smuggling and welfare in a model where smuggling is camoflaged by legal sales. Conditions are given for when some, but not necessarily all, firms smuggle. With camouflaging, the market price is below the price when all sales are legal, so smuggling improves welfare if the price effect outweighs excess smuggling cost. This welfare effect is directly related to the degree of competition. Increased enforcement in this model potentially reduces welfare. The model is shown to be consistent with evidence on cigarette smuggling in the United States for 1975-1982.Research Seminar in International Economics, Department of Economics, University of Michiganhttp://deepblue.lib.umich.edu/bitstream/2027.42/100799/1/ECON259.pd

OLS or GLS in the presence of specification error? : An expected loss approach

Omitted variables in regression analysis can lead to the erroneous conclusion that autocorrelation or heteroscedasticity is present. The common response is to use the suggested GLS procedure, even if it is suspected that the error is a non-zero disturbance mean. The question addressed here is whether one is better off with the GLS or with the OLS estimator when the omitted portion of the regression cannot be incorporated into the regression. Using a loss function this paper relates the seriousness of OLS and GLS loss to identifiable parameters. With consistent estimators of these parameters the researcher can choose between OLS and GLS.Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/26665/1/0000209.pd