Endogenous OCA Theory: Using the Gravity Model to Test Mundell’s Intuition. CES Working paper, no.125, 2005

This paper presents an empirical assessment of the endogenous optimum currency area theory. This study relies on the original intuition developed by Mundell in 1973. The gravity model is used to empirically assess the effectiveness of the convergence criteria by examining location specific advantages that guide multinational investment within the European Union. A fixed effects model based on a panel data of foreign direct investment (FDI) flows within the EU-15 shows that horizontal investment promotes the diffusion of the production process across the national border. Specifically, the examined Maastricht criteria suggest convergence in interest rate, government fiscal policy, and debt play a significant role in attracting multinational investment

Charitable Giving of Alumni.

ABSTRACT. This research examines the "age-donation " profile of gift-giving alumniai a large public university, based on a pooled micro-data random sample of 4,242 alumni (1926/27-1989/90 graduates) who gave cash gifts during the 1975/76-1989/90 fiscal years. The covariance regression model results indicate lack of statistically significant difference between gift-giving women and men. However, the School of Business graduates, alumni who proceeded to obtain graduate degrees from this university, and alumni members of non-Greek social organizations gave significantly more. Moreover, alumni contributions varied systematically over the business cycle and a 1962 Federal Court Order to de-segregate the university racially reduced donationshut not significantly. Given the 63-year cycle studied, the growth rates of alumni donations of money are projected to decline after roughly age 52, which falls short of the typical retire-ment age.