Alumni Giving of Business Executives to the Alma Mater: Panel Data Evidence at a Large Metropolitan Research University

Charitable giving to public and private institutions of higher learning in the US is a growing major source of financing academic and support programs. The novel contribution of this research is the estimation of an econometric model of gift-giving alumni business executives of a large public urban university using 10,192 individual donor observations [that is, a panel of 392 donors for 26 years]. Our theoretically consistent empirical results reinforce the earlier research findings that male alumni in Greek social organizations gave significantly more. New insights unique to this study are that alumni individuals with the higher-order executive job titles (proxy for permanent income) of a Chief Executive Officer or President (relative to the lesser ranks) are significantly more charitable, and that the number of other gift-giving alumni and friends known to donors, and national athletic conference (basketball and football) championship wins are also highly statistically significant positive drivers of alumni annual giving to the comprehensive metropolitan research university. The resulting profile of gift-giving alumni business executives can be profitably used to more effectively target likely donors and raise cost-effectiveness of fundraising efforts in these times of fiscal austerity in higher education.educational economics, educational finance, charitable donations, alumni giving of business executives

Determinants of Inter-Country Internet Diffusion Rates

This paper employs cross-sectional data from 100 countries to analyze the main determinants of inter-country Internet diffusion rates. We set up an empirical model based on strong theoretical foundations, in which we regress Internet usage on variables that capture social, economic and political differences between these countries. Our results support past findings that economic strength, infrastructure and knowledge of the English language positively affect Internet connectivity. In addition to these indicators, the openness of a country, tertiary enrollment, and income equality are found to also have a significant positive effect on Internet diffusion.internet, technological diffusion, inequality, education, English proficiency

Testing Mundell’s Intuition of Endogenous OCA Theory

This paper presents an empirical assessment of the endogenous optimum currency area theory. Frankel and Rose (1998) study the endogeneity of a currency union through the lens of international trade flows. Our study extends Frankel and Rose's model by using FDI flows to test the original theory developed by Mundell in 1973. A 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, our results suggest that economic convergence ensured by belonging to the common currency area helps double FDI flows.economic integration, gravity model, endogenous optimum currency area

Financial Liberalization and the Brain Drain: A Panel Data Analysis

This paper explores the impact of financial liberalization on the migration of high skilled labor from 46 countries to the OECD, taken at five year intervals over the period 1985-2000. Using an exploratory factor analysis, we are able to distinguish between two dimensions of financial liberalization, namely the robustness of the markets and their freedom from direct government control. We find that a standard deviation improvement in the robustness of the source country financial sector magnifies the extent of brain drain by a factor of about four percentage points on the average. However, a corresponding increase in the freedom of the source country financial sector from government control has a modest negative impact on the emigration of high skilled labor and the effect is not statistically significant. Further, the impact of improved financial sector robustness on selection is more pronounced for non-OECD economies than for OECD nations, which experience virtually no impact on skilled emigration.immigration, financial liberalization, brain drain, institutions

Southern African Economic Integration: Evidence from an Augmented Gravity Model

This paper investigates the feasibility of creating a common-currency union consisting of 16 countries in Southern Africa. We estimate an augmented-gravity model that includes public deficit, public debt, public expenditure, inflation, and the foreign reserves position. We also integrate Africa-specific variables such as existing economic blocs in the region, colonial heritage, and the convergence of living standards. Our analysis shows that the prospect for further integration in Southern Africa is promising, but many challenges still persist. The existing economic blocs can provide a first stepping stone to a larger currency union, but countries continuously have to cultivate good governance and fiscal discipline.optimum currency area, gravity model, Southern African integration, endogenous optimum currency area theory

Small Business Economics of the Lakota Fund on the Native American Indian Reservation

Poverty rates on Native American Indian reservations are triple the US average. Small business incubation programs, available elsewhere in the US, are sparse on the reservations. Small businesses are potent drivers of US economic growth. Some 25.5 million entrepreneurs generate more than 50% of the GDP, are 26% of the exporters, and create 80% of the total net new job formation. The Small Business Administration (SBA), an independent agency of the federal government created in 1953, maintains and strengthens the nation's economy by aiding, counseling, assisting, and protecting the interests of small businesses and by assisting families and businesses to recover from national disasters. SBA services hardly exist on the Native American Indian Reservations (NAIRs), however. Studies have linked micro entrepreneurial activities to economic growth and poverty reduction. Our study tests the effects of the Lakota Fund (LF), a small business development initiative, on the NAIRs to determine whether SBA-like programs (loans, training, and consulting) can improve economic conditions on the NAIRs. The LF, a private micro loan and business training initiative on the Pine Ridge Reservation in South Dakota, is tested for its effectiveness in generating income. The 1980-2006 annual county-level data (Shannon Co. is 'treatment', Todd Co. is 'control') are a natural experiment; the counties are similar otherwise. Using the real per capita income (RPCI) dependent variable, and controlling for other factors, our regression results indicate that the LF initiative and its duration (intensity) raised RPCI significantly − suggesting the success of a privately funded small business incubation initiative targeted at isolated impoverished groups within the highly developed US economy. Suggestions for future research and program replication ideas are explored.poverty rates, Small Business Administration, Lakota Fund, life expectancy, public sector

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