When looking at financial data, we oftentimes wish to find some model which can approximate the underlying processes that generated that data. However, it can be the case that such a model is in fact flawed because of a structural break, which is essentially an unexpected shift in a time series model. Detecting structural breaks is of importance primarily because a statistically significant shift in the model will cause not only the predictive power of the model to be lost, but also make economic conclusions drawn from the model incorrect. In this presentation, we consider the feasibility of applying neural networks, a commonly used machine learning model, to solve this problem.

The experimental economics literature has established that, contrary to the predictions of game theory, adding communication to a common pool resource (CPR) environment, where multiple users extract from a common resource, improves cooperation and group outcomes. This paper examines the mechanisms through which communication induces such cooperation in CPR environments. Using a 2x2 experimental design, I test two different theories about the effects of communication; namely the relative effects of learning versus group identity formation in a CPR environment where the users set their own regulations. By understanding how communication improves group outcomes, I hope to apply my findings to the management of small-scale fishery and forestry operations, improving community livelihoods and strengthening food security.

This research focuses on the implications of the 2014 Seattle City Council minimum wage law to local nonprofit organizations. It begins with a comprehensive review of all local minimum wage laws in the United States and prior research on their effectiveness and externalities. Next it goes through Washington state's history with minimum wage laws. It follows with an analysis of nonprofits in general and their strategies for handling labor increases. Finally it gives a direct prediction from Seattle nonprofits and puts forth the strategies that they can use to combat labor cost increases under the new law.

Malaysia has been in the heart of the brain drain issue, a situation whereby highly intelligent, well educated people leave their home countries in search of better living conditions abroad. However, in this globalized world where labor migration is increasingly common, it seems inappropriate to view this global phenomenon from the brain drain perspective only. The purpose of this research is to investigate the brain gain aspect in Malaysia in order to check if Malaysia is still capable of attracting global talents, and thus deducing the net flow of talent in Malaysia. A sample size amounting to 1,141,790 individuals is attained from Integrated Public Use Microdata Series (IPUMS) International. Several factors including education, ethnicity, occupation, ownership of dwelling, religion and sex, among others are deemed to be key elements in examining brain gain in Malaysia and multiple regressions are carried out to test the model of this research. The hypothesis of this research is that “Malaysia attracts more low-skilled workers as opposed to high-skilled workers.” If the hypothesis is found to be true, it would mean that Malaysia is facing tremendous net talent outflow and measures need to be taken to curb this loss of bright talents. At the time of writing this abstract, this research is still a work in-progress, but with promising results envisioned.

According to the Solow growth model, an increase in the standards of living in developed countries (measured by the real GDP per capita) is primarily driven by technological progress. However, this conclusion comes with the implicit assumption that this country is in the steady state; that is, this country is assumed to be in a type of equilibrium. Since technological growth is not readily observable, we use a Kalman filter to extrapolate such series. Contrary to the typical way of estimating a technology series, this model allows for changing depreciation rates and, thus, does not require the steady state assumption. Using data from developing countries in Latin America, we then assess the contribution of technology to the growth of living standards in developing countries. If the growth in the living standards is primarily driven by the growth of capital stock, then policy makers may want to consider shifting their focus from capital accumulation to implement policies that will improve worker's efficiency.

While lawmakers and others who enact policy are engaged in an explicitly normative process—determining what we should do in a given situation with no easy choices—they often rely on the positive, “value-less” science of mainstream economic theory to inform their decision-making. Proponents of neoclassical economic theory—such as Milton Friedman—argue that this positive economic theory can be used effectively towards any normative goal, believing positive economics to be only concerned with how the world is, and not how it ought to be. I contend that this claim is false, and I argue that neoclassical economic theory is both normatively defined and normatively inclined towards particular ethical goals. In particular, neoclassical economic theory is poorly suited for pursuing the normative goal of environmental conservation. As a result, policy-makers should be wary of using neoclassical economic theory, as the outcome may be unexpected and undesirable.