Professor of Economics David Ong from Jinan University-University of Birmingham Joint Institute will be presenting his paper, “Gender differences in the mating and cross-productivity effects of competitiveness on partner income,” co-authored with Ga Hye (Rosalyn) Jeon, on Tuesday, Feb. 4 from 2 to 3:30 p.m. in GSB 206. Please join us!
This paper studies the use of mobile crisis teams—a non- uniformed pair consisting of a mental health worker and a medic—as either a substitute or complement to traditional police units responding to 911 calls involving mental illness, homelessness, addiction, and other non-dangerous situations. We evaluate the longest-running mobile crisis response program in the U.S., Crisis Assistance Helping Out on the Streets (CAHOOTS) in Eugene, Oregon. We find that a series of expansions of CAHOOTS into new areas and times reduced the likelihood that a 911 call resulted in an arrest, and had the long-term benefit of reducing the number of follow-up 911 calls from the same address. However, CAHOOTS often responds to the same calls as the police, acting as complement rather than a substitute. The reduction in arrests likely reflects CAHOOTS’ role in de-escalating tense situations and resolving incidents without coercive measures. After the initial expansions, additional CAHOOTS capacity is used mostly for calls that would otherwise go unanswered. We conclude that crisis response teams play an important role as a complement to the police, rather than only acting as substitutes. Further expansions are likely to have only limited effects on reducing police responses
Marco Cozzi from the University of Victoria will be presenting his paper, “Optimal Capital Taxation with Incomplete Markets and Schumpeterian Growth”, next Monday, November 4th, from 2:00 PM to 3:30 PM in PLZ410. Please find the abstract below. Join us!
Abstract
In this paper, I characterize quantitatively the optimal capital income tax rate in an OLG economy with uninsurable income risk, incomplete markets and endogenous Schumpeterian growth. Contrary to the most recent literature, I find that it is virtually never optimal to tax capital. Under the optimal scheme, the highest proportional tax rate on capital is found to be less than 0.2%. The reason for this result lies in the reduced GDP (and wage) growth rate stemming from a higher capital tax rate. In General Equilibrium, the interest rate rises, and the increased cost of capital reduces the endogenous rate of innovation, leading to a negative response of the growth rate. Although the equilibrium effect on the growth rate is found to be quantitatively modest (approximately half a percentage point), it still has a first order consequence on welfare. The results show that moving to the optimal income tax schedule entails large welfare gains, approximately 5% in consumption equivalent. These large effects are also explained by a large reduction in the monopolistic distortions: in the intermediate goods sector, the mark-up over the marginal costs falls by more than 10 percentage points. The results are robust along a number of dimensions, including the specification of preferences.
Yihong Bai, postdoctoral researcher at Western University, will present the paper “Assessing the impact of welfare reform in the UK on mental health, life satisfaction, and impairments: a quasi-experimental study”. The presentation is taking place at 9:30am in GSB 307. Yihong is also a graduate of the MBE program. Join us!
Abstract:
Universal Credit (UC) was introduced in the UK in 2013 to gradually replace six benefit schemes by a single benefit scheme. UC has been criticized for its complex online application system, lengthy wait period, and its association with increased financial hardships among claimants. Previous studies have highlighted the system’s challenges, but this study aims to assess multiple health-related outcomes and financial implications of transitioning to UC. Utilizing data from the UK Longitudinal Household Survey, this quasi-experimental study applied the Callaway and Sant’Anna difference-in-differences (CSDID) method, to account for the staggered implementation of UC and treatment effect heterogeneity. We found that the transition to UC led to increased psychological distress and life dissatisfaction, with no significant effects on physical impairment. Furthermore, transitioning to UC led to a reduction in social benefit income; however, those who transitioned did not have significantly decreased personal or household net income over time. Despite UC’s goals to simplify the welfare system and encourage employment, the findings call for urgent policy adjustments to genuinely support claimants’ well-being and financial health, ensuring that welfare reforms do not inadvertently harm the very individuals they aim to assist.
Larry Samuelson (A. Douglas Melamed Professor of Economics at Yale University) will present his paper “What you don’t know may be good for you” this Thursday at 1100am-1230pm in WH 303. Join us!
Nikolai Cook from Wilfrid Laurier University will be presenting his paper “Stay Frosty: Climate Change and Gun Violence in North America” this Thursday, March 28th between 11:00am – 12:30pm in STH201. Join us if you can.
Adam Lavecchia from McMaster University will be presenting the paper “The Impact of Comprehensive Student Support on Crime: Evidence from the Pathways to Education Program” on Tuesday, March 19th, from 2:30pm to 4pm in STH216. Join us!
Please join us if you can.
Laëtitia Renée from the University of Montreal will be presenting her paper “The Impact of After-School Care on Maternal Income: Evidence from Canadian Administrative Data” on Thursday, March 7th, from 11 am to 12:30 pm in STH201.
Abstract:
We study the impact of affordable after-school care programs on the labor market outcomes of mothers. Specifically, we analyze the effects of a policy implemented in Quebec (Canada) in 1998, which reduced the costs and expanded the availability of after-school care programs for primary school children. We use tax return data and a triple difference strategy to identify the causal effects of the policy. Ten years after the policy implementation, we find an average increase in after-school care use of 46 school days. This increase is associated with a significant 12% increase in labor income for mothers with primary school children.
Mohammed Dore, Emeritus Professor of Economics at Brock University, will present this Thursday February 8 from 11am to 12:30pm in STH 216. The title of the paper is “Recurrent Financial Crises and US Monetary Regulation: Bubbles and Blisters”. Hope to see you there.
