Nepotism or Family Tradition?: A Study of NASCAR Drivers

Of the drivers who raced NASCAR cup series in 2005, 23 of 76 had family connections of either being a son, brother or father of current or former drivers. Given the family connections, some have suggested that the N in NASCAR stands for nepotism. The family tradition of career following, however, is not unique to NASCAR. We see this pattern in many careers such as business, law, politics, agriculture, medicine and entertainment. There are many reasons why children enter the same career as their parents. These include physical-capital transfer, human-capital transfer, brand-nameloyalty transfer, and nepotism. Using a panel data of career statistics for drivers from the last 30 years, we test to see which model best explains career following in NASCAR racing. Our results suggest that the N in NASCAR does not stand for nepotism. Sons, do not have longer careers than non family connected drivers, given the same level of performance. We do find, however, that fathers end their careers earlier than performance indicates when a son enters into cup competition. This could be due to a son’s ability to extend a brand name across generations. The extension of a brand name also occurs with second brothers who benefit from the first brother’s name and having longer careers than performance indicates. If nepotism exits, it occurs only with the second brothers.

Last Settler’s Syndrome and Land Use Change in Southern Appalachia

In many rural areas land use patterns are shifting from agriculture or woodland to residential development. This is especially true in areas possessing significant natural amenities like the sweeping vistas, white-water rivers, and blue-ridged mountains of Southern Appalachia. As in-migration increases, decisions about land use can become heated as the “newcomers” square off with long-time residents. Understanding how various groups value both the land (as productive resource) and the landscape (as scenic amenity) can help address potential conflict when land use changes. Two independent projects in Watauga County, North Carolina, reflect attempts to understand perspectives on land use through an economic framework and to address land use change from an environmental perspective. Both projects reveal evidence of “last settler’s syndrome”—a tendency among individuals to place a high value on what initially attracted them to a specific place. Both also reveal situations of potential conflict when ideas about land use clash as well as situations for cooperation as various groups share values about land use. Key Words:

Time on Camera: An Alternative Explanation of NASCAR Tournaments

NASCAR’s reward structure for rank order tournaments has been considered the exception to the rule in tournament theory due to the linear payout structure. We suggest that the rewards for drivers are nonlinear when you take into consideration the value of sponsorship time on camera and sponsor mentions during a race on TV. Given the importance of corporate sponsorship in NASCAR, we suggest that performance in a race provides additional benefits that are not captured in traditional tournament payments. Key Words:

The Willingness to Pay to Remove Billboards and Improve Mountain Views

We use the contingent valuation method to measure the amount citizens are willing to pay to improve mountain-view aesthetics through the removal of billboards. Our approach addresses both the perceived property rights as well as the perceptions of the status quo in the southern Appalachian Mountains. We find that individuals who retire to the mountains have different preferences for land use and mountain views than individuals who have ancestors who lived in Watauga County. In the aggregate, we find that citizens are willing to pay up almost one-half million dollars to remove billboards from Watauga County roadsides. This study provides insights to the debate surrounding land use in the mountains.

Green vs. Green: Measuring the Compensation Required to Site Electrical Generation Windmills in a Viewshed

A willingness to accept framework is used to measure the compensation required to allow wind generation windmills to be built in the mountains of North Carolina. We address why the NIMBY syndrome may arise when choosing site locations, the perceived property rights of view-sheds, as well as the perceptions of the status quo in the southern Appalachian Mountains. We find that individuals who perceive wind energy as a clean source of power require less compensation. Those who retire to the mountains or individuals who have ancestors from Watauga County require more compensation to accept windmills in their view-shed. We find that annual compensation is about twenty three dollars per household. In the aggregate, citizens need to be compensated by about one-half million dollars a year to allow wind electrical generation turbines in Watauga County. In addition, we find in a bivariate-probit analysis that individuals who are more likely to participate in a green energy program also are more likely to allow electrical generation wind mills in their view-shed suggesting that the green on green environmental debate is overstated.

Time on Camera

National Association for Stock Car Auto Racing’s (NASCAR) monetary reward structure uses a linear payout for races, with a nonlinear payout for the season long tournament. The authors suggest that the season long nonlinear payout is magnified by taking into consideration the value of sponsorship time on camera and sponsor mentions during a race on TV. Given the importance of corporate sponsorship in NASCAR, the authors suggest that performance in a race provides additional benefits that are not captured in the monetary payout.tournament structure; sports; sponsorship pay; NASCAR

Green vs. green: Measuring the compensation required to site electrical generation windmills in a viewshed

Proponents of wind power note that wind is a green energy source. Yet locating electrical generating windmills has become difficult in some localities because of potential negative externalities. We address why the NIMBY syndrome may arise when choosing site locations by addressing the perceived property rights of a viewshed, the role of compensation in a NIMBY impasse, and how concerns for the environment might lessen the compensation required. We use a willingness to accept framework to measure the compensation required to allow wind generation windmills to be built in the mountains of North Carolina. We find that individuals who perceive wind energy as a clean source of power require less compensation. Those who retire to the mountains or individuals who have ancestors from Watauga County require more compensation to accept windmills in their viewshed. In addition, we find in a bivariate-probit analysis that individuals who are more likely to participate in a green energy program are also more likely to allow electrical generation windmills in their viewshed, suggesting that the green vs. green environmental debate is overstated.