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.

Land Use Issues: Resort Rural Ramifications

Migration causes changes to land use patterns in rural areas with environmental amenities. Newcomers’ preferences differ from long term residents. Conflicts sometimes arise. To explore land use issues among various groups, a survey of opinions on mountain views was developed and administered to Watauga County residents in the western North Carolina. It is found that individuals who retire to the mountain are most interested in mountain-view amenities, while individuals who have ancestors from the county are most concerned with maintaining the status quo in regards to mountain views. These preferences lead to agreement on some land use issues and disagreements on others. Key Words: stable coalitions, self-enforcing agreements, compliance, enforcement, public goodsScenic Amenities, Contingent Valuation, Land Use, Wind Energy, Billboards

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.

Exit Discrimination in Major League Baseball: 1990-2004

Using a panel study of annual Major League Baseball data (1990-2004) we do not find evidence of exit discrimination against African-American players in Major League Baseball. Our findings are inconsistent with results from a study by Jiobu (1988) using 1971-1985 data which found that race decreased career length, ceteris paribus, for black players but not Hispanics. Our results are consistent with recent findings that failed to find evidence of exit discrimination in the NBA using data from the 1990s. In our semi-parametric duration analysis, we find that performance variables are important in determining career length. We find no evidence that race affects the career duration of black hitters. Past research had suggested that discrimination by majority, white fans led owners in sports to keep less talented white players on rosters. Our results suggest that team owners in the pursuit of championships keep talented players regardless of race. This is an affirmation of Becker's theoretical implications of market competition overcoming discrimination.

The Provision Point Mechanism and Scenario Rejection in Contingent Valuation

The provision point mechanism mitigates free-riding behavior in economic experiments. In two contingent valuation method surveys, we implement the provision point design. We ask respondents for their perceptions about the success of the provision point mechanism. We find that respondents who believe that the provision point would not be met are more likely to say no to a contingent valuation dichotomous choice question. The scenario rejection that arises may result in biased willingness-to-pay estimates.provision point mechanism, contingent valuation, willingness to pay, public goods, Environmental Economics and Policy,

Should we reconsider competition in residential electricity supply? Survey results in North Carolina

Retail competition has been introduced in many states as part of electricity industry deregulation. Following problems in the electricity market in California in 2000/01 many states, including NC, put deregulation plans on hold. Where retail competition is allowed consumers can choose their electricity supplier, and companies can compete for customers on the basis of rates and/or other options such as green energy choices. The welfare benefits of retail competition depend on consumers’ willingness to switch suppliers, and in many cases people choose to stay with their current supplier even though rivals offer savings. In that sense consumers are ‘sticky’ in the same way they are with other services such as banking and credit. The question then becomes: should states reconsider retail competition or stay with the status quo? To help answer this question we survey residents in two North Carolina counties. Our survey focuses on: (i) households’ knowledge of and interest in retail competition (ii) factors that would encourage them to switch suppliers, with an emphasis on smart meters and (iii) how large the potential savings would have to be to encourage switching. Key Words: electricity supply, retail competition, switching

Race and Survival Bias in NBA Data

Cross sectional employment data is not random. Workers who survive to a longer level of tenure tend to have a higher level of productivity than those who exit earlier. Wage equations that use cross sectional data could be biased from the over sampling of high productive workers at long levels of tenure. The survival bias that arises in cross sectional data could possibly bias the coefficients in wage equations. This could lead to false positive conclusions concerning the presence of pay discrimination. Using 1989-2008 NBA data we explore the extent of survival bias in wage regressions in a setting in which worker productivity is extremely well documented through a variety of statistical measures. We then examined whether the survival bias affects the conclusions concerning racial pay discrimination. Key Words: NBA, survival bias, pay discrimination