{"title":"The Impact of Employer Education Assistance on Enrollment","authors":"J. Vandivier","doi":"10.2139/ssrn.3606786","DOIUrl":"https://doi.org/10.2139/ssrn.3606786","url":null,"abstract":"Policymakers incentivized university enrollment through the creation of Section 127 of the United States Internal Revenue Code. This policy provides a tax deduction to employers that provide financial assistance for employee education. This paper finds that before and after extensive correction, the policy fails to increase enrollment meaningfully. Evidence from 1992 through 2017 indicates adverse linear and total effects of interest. H-1B policy is explored as a correction variable and emerges as a comparatively preferred policy tool. Results are validated using vector auto-regression (VAR), dynamic ordinary least squares (DOLS), and instrumental variable (IV) analysis.","PeriodicalId":373500,"journal":{"name":"EduRN: Financial Economics Education (FEN) (Topic)","volume":"29 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-05-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126107593","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Risk-Free versus Risky Assets: Teaching a Portfolio Model With Application to the Stock Market","authors":"Dolors Berga, José I. Silva","doi":"10.2139/ssrn.3475520","DOIUrl":"https://doi.org/10.2139/ssrn.3475520","url":null,"abstract":"In this paper we present an application where advanced undergraduate students can solve the expected utility portfolio model with a risk-free and a risky asset with both up and down returns in the Stock Market. With real Stock Market data, we use Excel Solver to find the portfolio decision and study how it changes when considering assets with different returns. Finally, we test students’ portfolio decisions and their degree of risk aversion using different utility functions.","PeriodicalId":373500,"journal":{"name":"EduRN: Financial Economics Education (FEN) (Topic)","volume":"258 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-10-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132284906","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Married with Children? The Role of Student Loan Debt","authors":"C. Robb, Samantha L. Schreiber","doi":"10.2139/ssrn.3458547","DOIUrl":"https://doi.org/10.2139/ssrn.3458547","url":null,"abstract":"Data from the 2008:2012 Baccalaureate and Beyond panel dataset, collected by the US Department of Education, were used to analyze the role of student loan debt in separate predictive models for marriage and fertility decisions in a representative sample of four-year college graduates from institutions across the country. Subjective analysis of marriage and fertility decisions indicated that students identified debt as a significant factor in delaying progression to these major life events. In the empirical analyses of marriage and child birth, instrumenting student loans using in-state tuition rates, student loans were a significant predictor of actual marriage decisions but not a significant predictor for the birth of a first child in the first four years after graduation. Further, for four-year college graduates, a $1,000 increase in cumulative undergraduate student loan balance was associated with a 1.3% decreased likelihood of marriage in the first four years after college.","PeriodicalId":373500,"journal":{"name":"EduRN: Financial Economics Education (FEN) (Topic)","volume":"12 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-09-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122315699","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Albert Cheng, Michael Henderson, P. Peterson, Martin R. West
{"title":"Can Information Widen Socioeconomic Gaps in Postsecondary Aspirations? How College Costs and Returns Affect Parents’ Preferences for Their Children","authors":"Albert Cheng, Michael Henderson, P. Peterson, Martin R. West","doi":"10.2139/ssrn.3471485","DOIUrl":"https://doi.org/10.2139/ssrn.3471485","url":null,"abstract":"To estimate whether information can close socioeconomic gaps in parents’ aspirations for their child’s postsecondary education, we administer a four-armed survey experiment to a nationally representative sample of U.S. parents. After respondents estimate costs of and returns to further education, we ask whether they prefer that their child pursue a four-year degree, a two-year degree, or no further education. Before this question is posed, the treated are first told:<br><br>(1) the net annual costs of pursuing a four-year and two-year degree in their state, <br><br>(2) the annual returns to four-year and two-year degrees as compared to no further education in their local area, or <br><br>(3) both costs and returns. We find that information lowers aspirations overall and widens socioeconomic aspiration gaps. <br><br>These effects do not vary with the magnitude of error between estimated and actual costs and returns. However, we find positive impacts on aspirations among parents who think their child is academically prepared for college.","PeriodicalId":373500,"journal":{"name":"EduRN: Financial Economics Education (FEN) (Topic)","volume":"103 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128594668","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Return on Equity (ROE), Return on Capital Employed (ROCE), Economic Profit (EP) and Economic Value Added (EVA) (Presentation Slides)","authors":"J. Casielles","doi":"10.2139/SSRN.3408825","DOIUrl":"https://doi.org/10.2139/SSRN.3408825","url":null,"abstract":"This paper includes the following topics: \u0000 \u00001. The Return On Equity (ROE): What is ROE? How do we know if the ROE of a company is good or not? What should be the relationship between ROE and cost of equity(Ke)? What are the ROEs of the different industries? \u00002. The Return On Capital Employed (ROCE): What is ROCE? The ROCEs of different industries \u00003. The relationship between ROE and ROCE and the effect of debt. When the use of debt improves ROE? \u00004. The ROCE depends on operating margin and turnover of capital employed. Therefore, how the ROCE can be improved? \u00005. The ROE depends on ROCE and debt level. Therefore, how the ROE can be improved? \u00006. The ROE depends on net profit margin, turnover of CE and financial leverage. When financial leverage improves the ROE? \u00007. The ROE vs. Ke and ROCE vs. WACC. What relationship should be between ROE and Ke? What is the WACC? What relationship should be between ROCE and WACC? The ROE vs Ke and ROCE vs WACC of the different industries \u00008. The Economic Profit (EP) and the Economic Value Added (EVA). What is the EP and what does it indicate? What is EVA an what does it indicate? \u00009. How to estimate the cost of equity (Ke): the Capital Asset Pricing Model (CAPM). What is the CAPM and how to estimate Ke using it. What are the problems of the CAPM? \u000010. Practice questions \u0000Multiple exercises with real companies like Apple, Amazon, Microsoft, Google, Bayer, Mazda and Orange are included.","PeriodicalId":373500,"journal":{"name":"EduRN: Financial Economics Education (FEN) (Topic)","volume":"51 12","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-06-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133076653","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"What Induces Children to Consume (More)?","authors":"M. Lukas, Markus Noeth","doi":"10.2139/ssrn.3384523","DOIUrl":"https://doi.org/10.2139/ssrn.3384523","url":null,"abstract":"Based on an experiment with 246 elementary school pupils, we find that, similarly as for adults, lower interest rates, longer savings horizons, and opt-in defaults make children more likely to consume instead of saving; moreover, the amount of savings decreases with lower interest rates and longer time horizons. While boys react more strongly to interest rates and time horizons and girls react more strongly to defaults, children start to get susceptible to savings rewards and horizons around third grade, when they receive an allowance, and with a lower allowance; this suggests that savings behavior is learnable and malleable to a certain extent. Our findings shed new light on the development and malleability of traits related to intertemporal consumption.","PeriodicalId":373500,"journal":{"name":"EduRN: Financial Economics Education (FEN) (Topic)","volume":"33 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-05-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114010939","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Can Financial Intermediary Development Improve Financial Literacy? Evidence from China","authors":"Jia Xu, Q. Su, Xiaoyun Zhang","doi":"10.2139/ssrn.3428138","DOIUrl":"https://doi.org/10.2139/ssrn.3428138","url":null,"abstract":"The lack of financial knowledge and its serious consequences has brought about extensive discussion among academics since the 2008 financial crisis. This study investigates the importance of financial intermediation in financial literacy. Using Consumer Finance and Investment Education Survey data in 24 cities from 2010 to 2012 in China, we find that financial intermediary development helps to improve financial literacy. This positive impact is magnified in central and western China, and to females and to less-educated consumers. The results hold after controlling the problem of endogeneity by constructing regulation of bank cross-city branching as an instrumental variable. We further run a number of estimations to discover the influence mechanism. Our results show that the influence upon individuals occurs not after but before they make financial decisions, and that the precondition is when their current expenditure exceeds current revenues, which requires inter-temporary cash-flow adjustments. That is to say, only when individuals have formed an effective demand for financial knowledge, will financial intermediary development improve their financial literacy. The study sheds some light on the improvement of consumer financial literacy and financial inclusion.","PeriodicalId":373500,"journal":{"name":"EduRN: Financial Economics Education (FEN) (Topic)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-12-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131365194","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"ЗАРУБЕЖНЫЙ ОПЫТ ФИНАНСИРОВАНИЯ НАУЧНЫХ ИССЛЕДОВАНИЙ (Foreign Experience of Financing of Scientific Research)","authors":"E. Samedova","doi":"10.2139/ssrn.3304499","DOIUrl":"https://doi.org/10.2139/ssrn.3304499","url":null,"abstract":"<b>Russian Abstract:</b> Цель – исследование и сравнение объемов и источников расходов на научные исследования в зару- бежных странах для оценки конкурентоспособности этих стран, а также определение взаимозависимо- сти между экономическим ростом и объемами расходов для научных исследований, между ВВП на ду- шу населения и расходами для научных исследований на душу населения.<br><br>Методология – определенные методы экономического познания, логического обоснования, эконо- мического наблюдения, сравнительный и эмпирический анализ, системный и структурно- функцио- нальный подход.<br><br>Результаты – установлено, что расходы на научные исследование пропорциональны объемам ВВП, повышение объема ВВП на душу населения увеличивает расходы на душу населения по научным ис- следованиям, проанализировано, что суммарные расходы на душу населения по научным исследованиям положительно зависят от экономической свободы, раскрыты механизмы частного финансирования научных исследований.<br><br><b>English Abstract:</b> The purpose – investigation and comparison of volumes and sources of expenses on scientific research in foreign countries.<br><br>Methodology – certain methods of economic knowledge, logical justification, economic observation, the comparative and empirical analysis, system and structural functional approach<br>Results – it is established that expenses on scientific research are proportional to GDP volumes, increasing in per capita expenses on scientific research increases a volume of GDP per capita, as well as it is analyzed that total expenses per capita on scientific research positively depends on economic freedom.<br>","PeriodicalId":373500,"journal":{"name":"EduRN: Financial Economics Education (FEN) (Topic)","volume":"46 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-12-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123291528","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Piotr Białowolski, A. Cwynar, W. Cwynar, Dorota Węziak‐Białowolska
{"title":"Debt Attitudes in Gender Perspective: Is There an Effect of Debt Knowledge and Skills?","authors":"Piotr Białowolski, A. Cwynar, W. Cwynar, Dorota Węziak‐Białowolska","doi":"10.2139/ssrn.3325849","DOIUrl":"https://doi.org/10.2139/ssrn.3325849","url":null,"abstract":"The link between financial attitudes and financial market behaviour is well-documented. Yet, little is known about the role of financial knowledge and skills – i.e. main components of financial literacy – for shaping financial attitudes, especially from a gender perspective. Our study focuses on debt literacy and debt attitudes. We conducted a computer-assisted telephone interview on a representative sample of adult Poles (N=1,004), subsequently adopting latent class analysis to reveal their debt attitudes. Links between debt literacy and debt attitudes were studied with multinomial regression models. The results show that debt attitudes are diversified in Polish population and can be grouped into five classes having different attitude profiles. In some classes, the structure of debt attitudes is far from simple, unidimensional pro-debt / anti-debt construct. Although we did not find significant gender differences either in conceptualization of debt attitudes or in their drivers, we showed that in all but one class the attitudes are strongly linked either to debt knowledge or debt skills, or both. Debt skills were revealed as a particularly strong predictor of debt attitudes.","PeriodicalId":373500,"journal":{"name":"EduRN: Financial Economics Education (FEN) (Topic)","volume":"117 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-11-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133530443","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Introduction to Econometrics. A Practical Guide for First, Second and Third Year Undergraduate, Postgraduate and Research Students.","authors":"Michel Guirguis","doi":"10.2139/ssrn.3274224","DOIUrl":"https://doi.org/10.2139/ssrn.3274224","url":null,"abstract":"Econometrics is a mixed discipline that requires different degrees of introductory knowledge related to probability, probability distributions, statistics, mathematical economics, calculus, and matrix algebra. For example, random variables are described by probability distributions such as the normal distribution, the t- distribution, the Chi-squared distribution, the F – distribution. Econometrics is basically related to economic measurement. It is the application of statistics and mathematics to economic or financial data to obtain and interpret numerical results. Econometricians are economic and financial analysts that are interested in numerical estimation of the relationship between economic or financial variables. It is a discipline that goes beyond expressing only economic or financial theory through mathematical equations. It is focused on the empirical estimation of these mathematical equations. Econometrics is divided into theoretical and applied econometrics. Theoretical refers to the methods for measurement of economic or financial relationships. Applied econometrics examines the structure of the problem and findings in particular fields of economics or finance. As an example, we can mention demand theory or asset allocation and investment. The findings of a financial or economic theory should be combined with empirical and additional evidence by checking the coefficient estimates and their significance. Significant autocorrelation and heteroskedasticity indicate to us that we need to change the estimation method.","PeriodicalId":373500,"journal":{"name":"EduRN: Financial Economics Education (FEN) (Topic)","volume":"12 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-09-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132662913","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}