CETERIS PARIBUS

Ceteris Paribus

Department of Economics Newsletter

October 2018

From the Chair by Nathan Cook

Greetings! Since you last heard from us, there In 2018, after 40 years at Furman, Professor We’d love to hear more about the exciting have been several significant and exciting Dave Roe retired. In recent years, Professor work that you are doing, too! Hopefully we’ll changes in the Department of Economics. Roe taught Introduction to Economics, see you at Homecoming on October 20, but Statistics, and Law and Economics. An feel free to contact me anytime at Our academic program is stronger than ever. excellent academic advisor, Professor Roe [email protected] We graduated a record number of majors in was the recipient of the 1997-1998 Alester G. 2018: 38 majors in Economics and 13 majors in Furman Jr. and Janie Earle Furman Award for Mathematics-Economics. Our students’ Meritorious Advising. experiences inside and outside of the classroom have prepared them for excellent We’ve also been busy hiring some excellent Homecoming new faculty over the past several years. In employment and graduate school October 19-21 opportunities beyond Furman. In this 2017, we welcomed Dr. Kelsey Hample and newsletter, we describe some of the recent Dr. Jessie Wang to the department, and in Individual departments and organizations will research and internship opportunities our 2018 we welcomed Dr. M. Taha Kasim and Dr. host drop-in tents adjacent to the students have experienced, and some of the Jessica Sauve-Syed. Elsewhere in this Homecoming Tailgate. All of your favorite recent post-graduate placements of our newsletter, we’ll tell you more about our new students. We’re very proud of them. colleagues, but we’re excited to have them. people will be in one location!

In the past several years, the Department of All of these exciting changes reflect some of Furman Mall (Rain location: Trone Center) Economics has also seen several changes in the enduring values of the Department of the makeup of our faculty. Economics: our faculty continue to be committed to excellent teaching, mentoring After 33 years at Furman, Professor Bruce and advising, and professional activity; our Brown retired in 2017. In recent years, students continue to thrive in the classroom Professor Brown taught Introduction to and in all sorts of internships and research Economics, Money and Banking, Health opportunities; and our alumni continue to Economics, and a very popular course in play an essential role in supporting all of these

Personal Finance. He also served as the activities. In the rest of this newsletter, we faculty director for several recent Study Away highlight some of the exciting work being programs in Brussels and Edinburgh. done by our faculty, our students, and our alumni. CETERIS PARIBUS 2

in Corporations and the American Democracy Working Paper Series. During the last two (edited by Naomi R. Lamoreaux and William years, he has given lectures for the Tax Policy, J. Novak, Harvard University Press). She gave Fiscal Analysis and Revenue Forecasting a lecture on the impact of the new South course offered by International Center for Carolina EITC at the South Carolina Public Policy in Atlanta. Last year, Dr. Kasim Association for Community and Economic and Dr. Karen Allen (in Earth & Environmental Development “Opportunity SC 2017” Science Department) were the main speakers Conference in December 2017. Dr. Hennessey at a Cultural Life Program (CLP), which was is one of eight faculty members that piloted aimed at discussing the different approaches

Furman University’s new “Pathways” advising adopted in environmental and ecological program for first and second year students. economics to solve environmental issues. Moreover, she led the Edinburgh Spring 2017 program and will lead the program again in Dr. Jessie Wang presented working papers at Faculty News Fall 2019. She also co-mentored, with Dr. the Society of Economics of the Households Nathan Cook, the Hollingsworth Meeting and ASSA/AEA Meetings in the Dr. Nathan Cook presented “The African Undergraduate Research Program team of CSWEP session. These papers study the effect Growth and Opportunity Act (AGOA) and Nino Kodua, MiaoMiao Xu, and Paul Yoon of elderly care on female labor supply and the Growth in Sub-Saharan Africa: A Local who studied how terrorism impact a country’s labor markets in an aging population. Dr. Projection Approach” at the Western ability to attract Foreign Direct Investment. Wang is also the co-investigator of the Economics Association International Greenville Health System (GHS) Health Conference in Vancouver, Canada, in June Dr. Jason Jones has continued to work with Sciences Center (HSC) Seed Grant. This 2018. He participated in two Alliance to Dr. Cook on the effects of the African Growth project examines the effectiveness of the Advance Liberal Arts Colleges (AALAC) and Opportunity Act (AGOA) on growth in delivery of cancer care, particularly for the workshops to enhance equity, diversity, and Sub-Sahara Africa. He presented their elderly. During her first year, Dr. Wang inclusion in economics departments at liberal ongoing work at the Conference for developed a new course, “Economics of arts colleges (in Chicago, IL in January 2017, Macroeconomists at Liberal Arts Colleges, Gender”, which discusses methods to and in Philadelphia, PA in January 2018). He held at Davidson College in August 2017. As a investigate gender and family related also served as an educator for the U.S. member of the organizing committee for this questions (household production, time- delegation to the APEC Voices of the Future conference, he is also involved with paper allocation, family as an economic institution, program in Da Nang, Vietnam in November selection and session organization for the etc.) under traditional economic frameworks. 2017. 2019 workshop. He also mentored Matthew Deininger and Samikshya Pandey to extend Dr. Kailash Khandke rejoined the department Dr. Kelsey Hample received the Robert E. their Hollingsworth Summer Scholar project in 2016 after serving as the Assistant Dean for Hughes Professorship in Economics. This is a “Crisis Length and Speed of IMF Response”. Study Away and International Education at three-year appointment, which recognizes Dr. Jones presented this paper at the Furman for seven years. Dr. Khandke the general record of teaching, scholarship, Southern Economic Association meeting and published an article “Economic Outlook: A and service at Furman University. During the it is currently under review at the Economics Tax Cut versus A Growth and Jobs Act” in year, Dr. Hample presented “Effects of Bulletin. Dr. Jones has served on a number of Greenville Business Magazine in April 2018. Improved Cookstove Use on Fuelwood committees for the University including the Demand” at Sustainable Energy Transitions Chair of the Academic Policies Committee,

Initiative (SETI) at Duke University. SETI is an the Faculty Governance Review Committee, international and interdisciplinary the Faculty Athletics Committee, a faculty collaborative focused on energy in low- and observer on the Trustees Furman Investment middle- income countries. She also presented Committee, and is The Furman Advantage “Formal Insurance in Social Networks: Liaison for four academic departments. He is Laboratory Evidence from the US and Kenya” also a faculty fellow for the Cothran Center for

at Liberal Arts Colleges Development Vocational Reflection. Dr. Jones accompanied Economics Conference (LAC-DEV) at students to the Voices of the Futures and Middlebury College. LAC-DEV is an annual APEC meeting in Lima, Peru and he conference which brings together faculty thoroughly enjoyed the experience. working in development economics at liberal arts colleges. For the 2019 academic year, she Dr. M. Taha Kasim published “Evaluating the will be developing a new course entitled effectiveness of an environmental “Behavioral Economics”, which studies how information disclosure policy: An application psychological, social, cognitive, and to New South Wales.” in Resource and Energy emotional factors affect decision making. The Economics. In November 2017, Dr. Kasim theoretical and empirical aspects of the presented “The Impact of WIC on Tobacco course are also employed in her recent and Alcohol Consumption” at the Southern research projects. Economic Conference. Currently, he is working on a project that establishes a novel Dr. Jessica Hennessey wrote a chapter link between gasoline consumption and “Corporations and Organizations in the prices. This project is part of the National United States after 1840,” with John J. Wallis Bureau of Economic Research (NBER) CETERIS PARIBUS 3

Meet Our New Faculty

Kelsey Hample joined the Furman economics or close to 40% of the world's population, faculty in 2017 after receiving a PhD in relied on burning wood or other solid fuels Economics from North Carolina State for cooking as of 2010. Apparently, simply University. She currently teaches Growth and providing these households with more Development, Behavioral Economics, efficient stoves is not enough to ensure a Statistics, and Introduction to Economics and reduction in fuel use. was recently selected to receive the Robert E. Hughes Professorship in Economics for her Dr. Hample looks forward to working with work at Furman. students on their own research topics and continuing to excite students about the breadth of questions economics can help Kelsey Hample Dr. Hample’s research interests include topics in development and behavioral economics them answer. She has been engaged with with a focus on individual decision making in Furman’s Shi Center for Sustainability and the face of risk and uncertainty. In one paper, looks forward to opportunities for she analyzes the potential tradeoff between interdisciplinary research related to informal risk sharing and formal, but costly, sustainability questions. Having had a insurance. Creating markets for formal wonderful study abroad experience in insurance is a popular proposal to improve college, she also looks forward to leading welfare among subsistence level farmers in students on future study away courses. Dr. the developing world. Both theory and Hample has been delighted with her empirical evidence support this conjecture, colleagues, students, and opportunities at but farmers have had low rates of adoption Furman University and anticipates many when markets are created. She hypothesized happy years here. that this empirical puzzle may be caused by a

tradition of informal sharing within these M. Taha Kasim joined the Economics communities that could crowd out the Department in 2016. He received PhD in M. Taha Kasim adoption of formal insurance. To test this Economics from Georgia State University. At hypothesis, she designed a laboratory Furman, he has taught Introduction to experiment in which a market for formal Economics, Urban Economics, Economics of insurance was introduced to groups of the Environment and Empirical Methods. individuals who made risky investments and Dr. Kasim is an applied economist with focus could share yields with each other. She ran mostly on environmental and urban policy this experiment on two populations: analysis. In his research, he studies how American undergraduates and Kenyan policies influence household and/or firm adults. The main result is that formal and behavior and the impact policies could have informal insurance were substitutes for on environmental outcomes. Kenyan and painting-matched groups, but not for US or randomly assigned groups. She Most recently, he has been studying certain also found that Kenyan participants were benefits of higher gasoline prices that have more likely to adopt formal insurance, been ignored or overlooked in the literature. further clouding the puzzle of under In the past, analyses of policies to reduce Jessica Sauve-Syed adoption in the developing world. gasoline consumption have focused on two effects: a utilization effect on how much Dr. Hample has also worked with a team people drive and a compositional effect on the funded by the National Science Foundation fuel economy of the automotive fleet. (NSF) to ask how Northern Ghanaian However, the literature has missed a third households change their fuel input decisions, effect: a matching effect, in which the policy both intensive and extensive, in response to changes how high-utilization households are owning more efficient cooking stoves. She matched to fuel-efficient vehicles in that the introduction of a relatively found equilibrium. Due to heterogeneity in demand more expensive Philips stove, which was for driving, the fuel cost differences are designed to burn wood but was often fueled greater for households that drive more with charcoal by households, resulted in a relative to others. substitution effect toward purchasing charcoal, while the introduction of a locally produced wood-burning Gyapa stove caused no statistically significant effects on fuel Jessie Wang expenditure. This result is economically important because about 2.8 billion people, CETERIS PARIBUS 4

Thus, households that drive more will be even been separating the causal impacts from more likely than other households to switch unobservable household and neighborhood American to a more fuel-efficient vehicle. Empirical effects. Dr. Sauve-Syed assembled a unique estimates using US micro-level data are dataset with classroom water quality data, consistent with this hypothesis. The results standardized examination outcomes, and suggest that a $1 gasoline tax would reduce student behavioral records to use the Enterprise

US gasoline consumption by 1.5% through unexpected shock of lead-in-water to the matching effect alone. These gasoline overcome this limitation. Conservative savings correspond to 84 million metric tons estimates found sizeable increases in the Lecture of CO2 annually (or $3.3 billion in benefits average number of disciplinary actions as well The annual American Enterprise Lecture is a from avoided pollution per year). This result as meaningful declines in the shares scoring signature event of the Department of further favors price-based policies over proficient in math and in reading at the Economics at Furman. Thanks to generous performance-based policies. average level of classroom lead exposure. support from the Marsh and McLennan The results highlight the importance of school Companies, the American Enterprise Lecture In another on-going project, Dr. Kasim is infrastructure and the susceptibility of enables distinguished guests to speak to studying the relationship between the elementary school children to lead. They also students, faculty, and the Greenville Women, Infants, and Children (WIC) program suggest lead exposure may be a potential community on economic matters of participation and risky behaviors. WIC underlying cause for disparities observed in contemporary concern. benefits represent an additional source of academic outcomes and school behavioral income to households, allowing the mother to issues. This work is among the first to focus on In 2017, David Autor, Ford Professor of reallocate income from healthcare services lead exposure in older children. Economics at MIT, delivered his lecture, and food towards other goods. Using data “Automation and Employment: Why are from the Pregnancy Risk Assessment In the classroom, Dr. Sauve-Syed loves there still so many jobs?” This lecture was Monitoring System (PRAMS), the study working with students and challenging them inspired by his 2015 article in the Journal of estimates the impact of WIC coverage on to view their world through an economic lens. Economic Perspectives, “Why Are There Still cigarette and alcohol consumption during the She also enjoys connecting with Furman’s So Many Jobs? The History and Future of last three months of pregnancy, an important scholarly community through the Institute for Workplace Automation.” In that article, time in the long-term development of the the Advancement of Community Health as Professor Autor wrote, child. Preliminary results suggest that WIC well as the Shi Center for Sustainability. Away benefits decrease alcohol consumption and from campus Dr. Sauve-Syed is quickly “There have been periodic warnings in the increase smoking participation. Thus, while adjusting to southern living. She enjoys last two centuries that automation and new WIC “works” along some dimensions such as learning about local food and plants, technology were going to wipe out large fetal growth (as documented in the previous exploring the area with her husband, and numbers of middle class jobs. The best- literature), the program needs to allocate spending time with her two dogs. known early example is the Luddite resources to target pre- and post-partum movement of the early 19th century, in which smoking behavior to promote the well-being Jessie Wang joined the Furman economics a group of English textile artisans protested of the child and mother. faculty in 2017 after receiving a PhD in the automation of textile production by Economics from University of California, San seeking to destroy some of the Earlier this year, Dr. Kasim had an article, Diego. She teaches Gender Economics, machines…Such concerns have recently “Evaluating the effectiveness of an Money and Banking, Introduction to regained prominence.” environmental information disclosure policy: Economics, and a senior seminar in An application to New South Wales”, Economics of Aging. In 2018, Ken Rogoff, Thomas D. Cabot published in Resource and Energy Economics. Professor at Harvard, delivered his lecture, He also annually gives lectures for the Tax Dr. Wang’s research interests include topics “The Curse of Cash: The Past, Present, and Policy, Fiscal Analysis and Revenue in household economics and time use with a Future of Currency from early standardized Forecasting courses offered by the focus on gender disparity and challenges in an coinage to Bitcoin.” This lecture was inspired International Center for Public Policy in aging population. Her current research by his 2016 book, The Curse of Cash, in which Atlanta. Dr. Kasim is affiliated with the Shi studies how elderly care responsibilities affect Professor Rogoff argues that the world is Center of Sustainability and is a strong female labor supply and the labor market. She drowning in cash—and it's making us poorer proponent of interdisciplinary research. finds that affordable high-quality care and less safe. Even as people in advanced services are essential for women to remain in economies are using less paper money, there Jessica Sauve-Syed completed her PhD from the labor force in an aging society. She is is more cash in circulation—a record $1.4 Syracuse University and joined the Furman participating in an interdisciplinary research trillion in U.S. dollars alone, or $4,200 for economics faculty in 2018. Her current project sponsored by Greenville Health every American, mostly in $100 bills. So what teaching schedule includes Introduction to System that evaluates the delivery of cancer is all that cash being used for? The answer is Economics and Health Economics. care and estimates the implications under an simple: a large part is feeding tax evasion, aging patient population. corruption, terrorism, the drug trade, human Dr. Sauve-Syed is a health economist with trafficking, and the rest of a massive global research focused on health impacts from Dr. Wang looks forward to working with underground economy. Professor Rogoff environmental factors and barriers in access students to explore different fields of argues that paper money can also cripple to medical care. Her current work includes economics. Being a liberal arts college monetary policy. In the aftermath of the estimating the impacts of lead exposure graduate herself (Dickinson College class of recent financial crisis, central banks have within Flint Community School classrooms 2012), she is excited to be a part of Furman been unable to stimulate growth for fear that during the 2014 water crisis. An enduring students’ paths in professional development it would drive investors to abandon treasury empirical challenge in the study of lead has and personal growth. bills and stockpile cash. CETERIS PARIBUS 5

Our students were also honored with the

following awards: Internships The J. Carlyle Ellett Prize is presented to an Student News outstanding senior economics major based on Furman Admissions academic performance, contributions to department and university life, and potential Greenville County Domestic Violence Court Our students continue to pursue meaningful use of the economics major following Bloomberg, Financial Products engaged learning experiences and to be graduation from Furman. The 2018 recipient AXA Advisors recognized for their impressive was Matthew Deininger, now a Research Scottish Parliament accomplishments. Assistant at the Federal Reserve Board of Governors in Washington, D.C. Cancer Survivors Park Alliance In 2017, Ben Hartman (2018) and Sophia Riley Institute Amoo-Gottfried (2018) worked with Dr. Jeff The Arthur Magill Award is presented Georgia Innocence Project Yankow on a Hollingsworth Undergraduate annually to a rising senior economics major Steve Henry-Law Research Program project exploring “Gender who shows outstanding academic potential Differences in the Pecuniary Returns to and intellectual promise. The 2018 recipient Nachman, Norman and Parrott Cumulative Job Mobility.” This research was was Nino Kodua, whose name you’ve now Greenville Drive published in Issues in Political Economy Vol read three times in this section of the Armada Analytics 27(2), 2018, 112-129. In 2018, Nino Kodua newsletter. Verity Investment Partners (2019), Paul Yoon (2019), and Miaomiao Xu SVN Blackstream (2019) worked with Dr. Jessica Hennessey and The Mathematics-Economics Award is given Dr. Nathan Cook on a project investigating to the senior Mathematics-Economics major The Capital Corporation how terrorist incidents impact a country’s with the highest grade point average in DeHollander & Janse ability to attract foreign direct investment. mathematics and economics courses. The Dasher Law Firm 2018 recipient was Giang Nguyen. Nino Kodua (2019) was selected to present McMaster for Governor her research, “The Impact of Immigration on The Stanford Prize is awarded to the student Madrid Study Away Internship Program Unemployment Rates: Short-run vs Long-run who writes the best paper on an economics Furman Admissions effects in MSAs” at the 2018 Women in topic. The 2018 recipient was Jackson Paia Consulting Economic Research (WiER) Conference at Roberts, whose paper, “The Effect of MEP William Dartmouth Williams College. Nino writes, “It was truly a Corporate Stock Buybacks on Inflation” found Furman Athletic Department wonderful experience to be in an environment that since the 2008 recession, corporate stock of amazing faculty and students who are buybacks have significantly lowered inflation. Greenville Chamber of Commerce passionate about economics... It was inspiring As firms direct capital away from investment M&T Bank-Securities Intern to listen to exceptional and engaging in new equipment and expanding production MEP Ingeborg Graessle-Brussels presentations by other undergraduate (traditional drivers of inflation) and toward NorthStar Financial students on various topics such as growth & stock buybacks, the inflation rate is Entrepreneur Roundtable Accelerator development, education, migration, labor significantly lower than it otherwise would markets, and price gouging. Furthermore, the have been. This finding is economically Anderson Strathern Asset Mgmt conference included keynote speaker Lisa important, and had not previously been Dallas Fellows Program Cook, Professor of Economics at Michigan identified in the literature, both because the Actuarial Services State University and a mentoring panel that question hadn’t been asked, and because the Endowment Office, Furman were highly motivational. This allowed me to effect is “new” (Jackson found that this effect Manchester Trade learn about many meaningful career paths did not exist prior to the 2008 recession). with an economics degree. The entire Watermark conference provided, relaxed, friendly and In 2018, Furman Economics seniors Craig deVere Group intellectually stimulating environment that Yount (2018) and Paul Yoon (2018) were NAI Furman named as two of the Furman Fellows, definitely further encouraged my interest in Riverside Company research and pursuing a Ph.D. in Economics awarded annually to five members of the TMC LLC after graduation. I am so thankful that the senior class who’ve shown unique leadership Furman University Economics Department skills and an ability to make a difference in the Westport Intl provided me with this remarkable world and in the lives of others. Nelson Mullens experience.” Dallas Fellows Program Finally, Furman’s chapter of the international Marketing-Furman Internships have become a crucial component economics honorary Omicron Delta Epsilon of many undergraduates’ college experience. (ODE) inducted 18 new members at the 2018 Immunotech Laboratories BG Some of the firms that have provided our Spring Picnic, pictured on the previous page. USTR majors with recent internship opportunities City of Charlotte Office of Neighborhood and are listed to the right. We are very proud of the many impressive accomplishments of our students. Business Services Turner Construction

CETERIS PARIBUS 6

Alumni Profile: Q: How did Furman prepare you? Jenny Lee While I was one of the youngest students in the program, I wasn’t afraid of the intensity of the 11-month program. While the Q: Could you introduce yourself and tell us workload was heavier than my time at what you have been doing after graduating Furman, the work ethic and critical thinking from Furman? skills that were necessary at Furman were My name is Jenny Lee and I graduated from applicable during my masters program. Furman University in 2017, majoring in Throughout the program, both during class Economics. After graduating I started a and my job as a research assistant, there Master of Arts in International Economics were many times when I had to tackle a and Finance (MIEF) at Johns Hopkins project I didn’t already know how to do. It University at the School of Advanced took a lot of patience, problem-solving International Studies (SAIS), an 11-month mentality, and hard work, all of which are intensive program with a focus on necessary skills to get an Economics degree international economics and finance. I Q: How has your post-Furman experience from Furman as well. graduated from Johns Hopkins SAIS this past been so far? I also realized that many of the concepts June and am currently interning full-time covered during my classes at SAIS an with the Institute of International Finance My time with the MIEF program has been extension of things I had already learned at (IIF). nothing short of phenomenal. It allowed me to go deeper into the sub-field of economics I Furman. This gave me a solid foundation I Q: What made you decide to pursue a was most interested in and the intense yet could build my advanced econometric and Masters degree after Furman? well-designed curriculum allowed me to macroeconomic skillsets on. narrow down my academic and professional I took Dr. Jones’ International interests. I enjoy what I do with the IIF, since I Finally, I applied a lot of my entrepreneurial Macroeconomics course during the fall get a lot of exposure to what client-based skills from my extra curricular experience at semester of my senior year and knew I research looks like and I’m involved in the Furman to create an MIEF publication called wanted to do something related to writing and analysis of country reports. the International Finance and Economics international macroeconomics, so I decided Review (InFER). This project took a great to apply to programs in international deal of teamwork, creativity, and economics to get a deeper understanding of collaboration with both the faculty and the field. The fear of what would happen administration, all of which are skills I after I graduated was also a helpful acquired from being involved at Furman.

motivator. Q: What is next for you?

I’m getting ready to join the labor market!

I’m currently looking for jobs with financial institutions in their macro/FX research

We would also like to acknowledge the generous support of many of our alumni, parents, teams, generally within the Fixed Income division. I’d love to connect with other

students, and faculty members. Our sincere appreciation to the following donors : Furman alumni working in this area. In the meantime, I’ll continue to work at the IIF and enjoy life in DC!

Dr. Kailash Khandke and Dr. Veena Khandke Mr. & Mrs. Michael C. Bingham Mr. & Mrs. J. Martin Storey Mr. D. Cole Egan, Jr. Mr. Brent H. W. Blankenship Mr. & Mrs. William J. Booth Mr. and Mrs. Paul Robin Mr. Todd H. Callaway Mr. and Mrs. Paul Robin Mr. Matthew E. Brown Mrs. Pamela Z. Evett Mr. R. Edward Caskey Mr. & Mrs. Peter S. Lehmann Mr. & Mrs. Kenneth T. Kujawa Mr. Clinton J. Downey Mr. Thaddeus D. Wilson Mr. McIver C. Prickett Mr. Michael C. Enos Dr. William F. Grams and Dr. Anne P. Grams Mr. James P. Perez LTC. & Mrs. Thomas C. Kelley III Schwab Fund for Charitable Giving Ms. Madelin M. Ward Mr. Kyle H. Wilkins Mr. & Mrs. F. Davis Arnette, Jr. Ms. Claire S. Henry Mr. & Mrs. J. Scott Holladay Mr. & Mrs. Christopher J. Jentz Mr. & Mrs. J. Menza Dudley, Jr. Mr. John D. Mitchell Ms. Cameron L. Egan Ernst & Young Foundation

Your generous contributions help support research, internship, and international opportunities for our students, and help our faculty to remain professionally active. We could not do all that we do without your support. Thank you!