Template-Type: ReDIF-Paper 1.0 Author-Name: Debra L. Brucker Author-X-Name-First: Debra Author-X-Name-Last: Brucker Author-Workplace-Name: University of New Hampshire Author-Name: Sophie Mitra Author-X-Name-First: Sophie Author-X-Name-Last: Mitra Author-Workplace-Name: Fordham University Author-Name: Navena Chaitoo Author-X-Name-First: Navena Author-X-Name-Last: Chaitoo Author-Workplace-Name: Fordham University Author-Name: Joseph Mauro Author-X-Name-First: Joseph Author-X-Name-Last: Mauro Author-Workplace-Name: Fordham University Title: More likely to be poor whatever the measure: persons with disabilities in the U.S. Abstract: This paper examines whether disability is a correlate of poverty when poverty is measured using (1) the official poverty measure; (2) the supplemental poverty measure (SPM); and (3) two newly created multidimensional poverty measures. Methods: Data from the Current Population Survey is used to explore the relationship between poverty and disability for each measure. Differences across disability status were tested for statistical significance. Results: Disability is associated with poverty, irrespective of the poverty measure under use. The gap in poverty rates between persons with and without disabilities is smaller when using the SPM as compared to the official poverty measure. The gap in poverty rates between persons with and without disabilities is highest when using multidimensional poverty measures. Conclusion: Working age persons with disabilities are more likely to be poor whatever the measure under use. They are a disadvantaged group in the U.S. Creation-Date: 2014 File-URL: https://archive.fordham.edu/ECONOMICS_RESEARCH/PAPERS/dp2014_01_mitra.pdf File-Format: Application/pdf Classification-JEL: Keywords: Handle: RePEc:FRD:wpaper:DP2014-01 Template-Type: ReDIF-Paper 1.0 Author-Name: Juan F. Guerra-Salas Author-X-Name-First: Juan Author-X-Name-Last: Guerra-Salas Author-Workplace-Name: Fordham University Title: The Reaction of Government Spending to the Business Cycle: Some International Evidence Abstract: This paper studies how the spending side of fiscal policy reacts to the business cycle. I find that between 2000 and 2012, government spending is forward-looking in a number of countries—it reacts to forecasts of economic activity rather than to past economic realizations. I also study whether the response of government spending is countercyclical or procyclical. Spending responds countercyclically in countries such as the United States, Belgium, and Finland—when governments in these countries expect GDP to be below trend, they increase spending, and vice versa. In contrast, spending responds procyclically in places such as the United Kingdon, Argentina, and Ecuador—when governments in these countries expect GDP to be below trend, they decrease spending, and vice versa. The methodology I use exploits the fact that the government cannot forecast economic activity perfectly. The presence of shocks that cannot be forecast allows me to estimate reaction parameters under the framework of the Generalized Method of Moments. Creation-Date: 2014 File-URL: https://archive.fordham.edu/ECONOMICS_RESEARCH/PAPERS/dp2014_02_juan.pdf File-Format: Application/pdf Classification-JEL: E32, E62. Keywords: Government spending, business cycle, forward-looking fiscal policy, GMM. Handle: RePEc:FRD:wpaper:DP2014-02 Template-Type: ReDIF-Paper 1.0 Author-Name: Erick W. Rengifo Author-X-Name-First: Erick Author-X-Name-Last: Rengifo Author-Workplace-Name: Fordham University Author-Name: Debra Emanuela Trifan Author-X-Name-First: Emanuela Author-X-Name-Last: Trifan Author-Workplace-Name: Bayerngas Energy Author-Name: Debra Rossen Trendafilov Author-X-Name-First: Rossen Author-X-Name-Last: Trendafilov Author-Workplace-Name: Truman State University Title: Investors Facing Risk: Prospect Theory and Non-Expected Utility in Portfolio Selection Abstract: This paper focuses on the attitude of non-professional investors towards financial losses and their decisions on wealth allocation, and how these change subject to behavioral factors. Our contribution concerns the integration of behavioral elements into the classic portfolio optimization. Individual perceptions are modeled according to an extended prospect-theory framework: Losses loom larger than gains of the same size (loss aversion) and the past riskyportfolio performance changes the subjective valuation of risky investments. The utility of financial investments is overemphasized (myopia). The portfolio model with individual VaR delivers an optimal wealth assignment between risky and risk-free assets. Creation-Date: 2014 File-URL: https://archive.fordham.edu/ECONOMICS_RESEARCH/PAPERS/dp2014_03_rengifo_investors.pdf File-Format: Application/pdf Classification-JEL: G10, G11, D81, E27 Keywords: VaR, Non-Professional Investor, Prospect Theory, Non-Expected Utility. Handle: RePEc:FRD:wpaper:DP2014-03 Template-Type: ReDIF-Paper 1.0 Author-Name: Erick W. Rengifo Author-X-Name-First: Erick Author-X-Name-Last: Rengifo Author-Workplace-Name: Fordham University Author-Name: Debra Emanuela Trifan Author-X-Name-First: Emanuela Author-X-Name-Last: Trifan Author-Workplace-Name: Bayerngas Energy Author-Name: Debra Rossen Trendafilov Author-X-Name-First: Rossen Author-X-Name-Last: Trendafilov Author-Workplace-Name: Truman State University Title: The Individually Accepted Loss Abstract: This paper proposes a new, individual measure of market risk, denoted as the individually acceptable loss (IAL). This measure can be used by portfolio managers in order to better meet the individual profiles of their non-professional clients, including phsychological traits. It can be easily assessed from general subjective and objective parameters. We formally define the IAL of loss averse investors, who narrowly frame financial investments, and are sensitive to the past performance of their risky portfolio. This individual risk measue is applied to the classic portfolio optimization framework in order to derive the optimal wealth allocation among different financial assets. our empirical results suggest that previous optimization relying on a portfolio-exogenous VaR-formulation, underestimates the aversion of individual investors towards financial losses. Creation-Date: 2014 File-URL: https://archive.fordham.edu/ECONOMICS_RESEARCH/PAPERS/dp2014_04_rengifo_loss.pdf File-Format: Application/pdf Classification-JEL: C32, C35, G10 Keywords: market risk, prospect theory, loss aversion, capital allocation, Value-at-Risk. Handle: RePEc:FRD:wpaper:DP2014-04 Template-Type: ReDIF-Paper 1.0 Author-Name: Sophie Mitra Author-X-Name-First: Sophie Author-X-Name-Last: Mitra Author-Workplace-Name: Fordham University Author-Name: Debra Brucker Author-X-Name-First: Debra Author-X-Name-Last: Brucker Author-Workplace-Name: New Hampshire University Title: Income Poverty and Multiple Deprivations in a High-Income Country: The Case of the United States Abstract: This paper develops a measure of the joint distribution of multiple deprivations in the United States, in other words a measure of the extent to which different deprivations are experienced by the same individuals. Using Current Population Survey and American Community Survey data, we find that the experience of multiple deprivations affects 15 percent of Americans. We also find that income poverty is not a reliable proxy to measure multiple deprivations: 5.5% of the population, an estimated 17.1 million Americans, experience multiple deprivations while they are not income poor. The odds of experiencing multiple deprivations are two to three times higher for Hispanics, immigrants and persons with disabilities. Further measurement efforts are needed on overlapping multiple deprivations in the US as such measures can be used in policy evaluation and monitoring. Creation-Date: 2014 File-URL: https://archive.fordham.edu/ECONOMICS_RESEARCH/PAPERS/dp2014_05_mitra_brucker.pdf File-Format: Application/pdf Classification-JEL: I3 Keywords: multiple deprivations; poverty; multidimensional poverty; United States. Handle: RePEc:FRD:wpaper:DP2014-05 Template-Type: ReDIF-Paper 1.0 Author-Name: Helena Glebocki Keefe Author-X-Name-First: Helena Author-X-Name-Last: Glebocki Keefe Author-Workplace-Name: Fordham University Author-Name: Erick W. Rengifo Author-X-Name-First: Erick Author-X-Name-Last: Rengifo Author-Workplace-Name: Fordham University Title: Options and Central Banks Currency Market Intervention: The Case of Colombia Abstract: Several central banks in emerging economies are concerned with excessive volatility in foreign exchange markets and would like to control the direction and speed with which the value of their currency changes. Historically, currency market interventions have consisted of using foreign exchange reserves to purchase and sell foreign currency directly in the spot market. However, these spot interventions are not the only type of interventions available to central banks. The Colombian central bank implemented various strategies to intervene into currency markets to smooth volatility, build reserves, and influence the direction of the exchange rate by issuing options contracts as well as using daily discretionary purchases of US dollars. In this paper we analyze these recent strategies employed by Colombia, with a special focus on the volatility option strategy. We argue that the abandonment of the options program was premature and that its success was not fully appreciated in previous literature. Creation-Date: 2014 File-URL: https://archive.fordham.edu/ECONOMICS_RESEARCH/PAPERS/DP2014_06_keefe_rengifo.pdf File-Format: Application/pdf Classification-JEL: F31, G15 Keywords: Exchange Rates, Intervention, Foreign Exchange Markets, Currency Options, International. Reserves, International Finance. Handle: RePEc:FRD:wpaper:DP2014-06 Template-Type: ReDIF-Paper 1.0 Author-Name: Utteeyo Dasgupta Author-X-Name-First: Utteeyo Author-X-Name-Last: Dasgupta Author-Workplace-Name: Wagner College Author-Name: Lata Gangadharan Author-X-Name-First: Lata Author-X-Name-Last: Gangadharan Author-Workplace-Name: Monash University Author-Name: Pushkar Maitra Author-X-Name-First: Pushkar Author-X-Name-Last: Maitra Author-Workplace-Name: Monash University Author-Name: Subha Mani Author-X-Name-First: Subha Author-X-Name-Last: Mani Author-Workplace-Name: Fordham University Title: De Gustibus Non Est Disputandum: An Experimental Investigation Abstract: The goal of this paper is to examine stability in preferences using the Stigler-Becker state-dependent framework. Using a randomized intervention that changes the opportunity sets of individuals we construct a unique panel data from an artefactual field experiment and evaluate whether the change in the state space influences our selected indicators of preferences: risk, competitiveness, and confidence. We find that there is considerable heterogeneity of preferences across individuals at a point in time; risk and competitive preferences inter-temporally are consistent with state-dependent preferences, while measures of confidence seem to depend on past experiences. Creation-Date: 2014 File-URL: https://archive.fordham.edu/ECONOMICS_RESEARCH/PAPERS/dp2014_07_dasguptaetal.pdf File-Format: Application/pdf Classification-JEL: C9, D01, D03 Keywords: Preference stability, State Contingent Preferences, Artefactual Field Experiment. Handle: RePEc:FRD:wpaper:DP2014-07 Template-Type: ReDIF-Paper 1.0 Author-Name: Uluc Asyun Author-X-Name-First: Uluc Author-X-Name-Last: Asyun Author-Workplace-Name: University of Central Florida Author-Name: Ralf Hepp Author-X-Name-First: Ralf Author-X-Name-Last: Hepp Author-Workplace-Name: Fordham University Title: A Comparison of the Internal and External Determinants of Global Bank Loans: Evidence from Bilateral Cross- Country Data Abstract: This paper finds that factors determined outside of a country are more closely related to the global bank loans she receives. These loans are more stable when global banks are less competitive and have a higher presence in the recipient country. We obtain our results by using data on the bilateral loans positions of 15 countries and a unique methodology to identify and compare the independent effects of external and internal factors. We find support for our empirical results and draw more detailed inferences for competition and global bank presence by solving a simple model of global banking. Creation-Date: 2014 File-URL: https://archive.fordham.edu/ECONOMICS_RESEARCH/PAPERS/DP2014_08_aysun_hepp.pdf File-Format: Application/pdf Classification-JEL: E44; F34; G15; G21 Keywords: Cross-country loans, global banks, competition, overlapping generations model. Handle: RePEc:FRD:wpaper:DP2014-08