Policing the Poor: The impact of vehicle emissions inspection programs across income
Transportation Research Part D 78 (2020) 102207
Abstract: Comparing vehicle emissions inspection results with vehicle owner income shows that the Arizona vehicle emissions inspection program constrains the vehicle repair decisions of people in the low end of the income distribution more than people in the high end. Individuals who live in areas with lower annual income are both (i) more likely to drive vehicles that fail emissions inspections at a higher average rate, and (ii) more likely to fail emissions inspections conditional on vehicle characteristics. The top income quintile fails emissions inspections 20% less often than the bottom income quintile even when controlling for observable vehicle characteristics. This implies that owner characteristics, in addition to observable vehicle characteristics, have a non-negligible impact on vehicle emissions rates. Therefore, the impact of programs designed to reduce vehicle emissions could be greater if participation were subject to a means test.
Money in the Production Function
with Edward C. Prescott
Federal Reserve Staff Report 562, April 2018
Abstract: Businesses hold large quantities of cash reserves, which have average returns well below their investments in tangible capital. Businesses do this because these monetary assets provide services. One implication is that money services is a factor of production in capital theoretic valuation equilibrium models. Our aggregate production function is consistent with both the classical demand for money function relationship and with extended periods of near zero short-term nominal interest rates. In our model economy, there is a 100 percent reserve requirement on all demand deposits. Demand deposits are legal tender. We find (i) money services in the production function necessitates revisions in the national accounts; (ii) monetary and fiscal policy cannot be completely separated; (iii) for a given policy, equilibrium is either unique or does not exist; and (iv) Friedman’s monetary satiation is not optimal. We make quantitative comparisons between interest rate targeting regimes and between inflation rate targeting regimes. The best inflation rate target was 2 percent.
Fiat Value in the Theory of Value
with Edward C. Prescott
Federal Reserve Staff Report 530, Updated July 2017
Abstract: We explore monetary policy in a world without currency. In our world, money is a form of government debt that bears interest, which can be negative as well as positive. Services of money are a factor of production. We show that the national accounts must be revised in this world. Using our baseline economy, we determine the balanced growth paths for a set of money interest rate target policy regimes. Besides this interest rate, the only policy variable that differs across regimes is either the labor income tax rate or the inflation rate. We find that Friedman monetary satiation without deflation is possible. We also examine a set of inflation rate targeting regimes. Here, the only other policy variable that differs across policy regimes is the tax rate. There is a sequence of markets with outcome in each market being a Debreu valuation equilibrium, which determines the vector of assets and liabilities households take into the subsequent period. Evaluating a policy regime is an advanced exercise in public finance. Monetary satiation is not optimal even though money is costless to produce.
Monetary Policy with 100 Percent Reserve Banking
with Edward C. Prescott
National Bureau of Economic Research, Number 22431, July 2016
Press Coverage: https://www.youtube.com/watch?v=wJ5WgkROwig
Abstract: We explore monetary policy in a world without fractional reserve banking. In our world, banks are purely transaction institutions. Money is a form of government debt that bears interest, which can be negative as well as positive. Services of money are a factor of production. We show that the national accounts must be revised in this world. Using our baseline economy, we determine a balanced growth path for a set of money interest rate policy regimes. Besides this interest rate, the only policy variable that differs across regimes is the labor income tax rate. Within this set of policy regimes, there is a balanced growth welfare-maximizing regime. We show that Friedman monetary satiation without deflation is possible in this world. We also examine a set of inflation rate targeting regimes. Here, the only other policy variable that differs across regimes is the inflation rate.
Circumcision in the Old Testament: A Rite With Staying Power [here]
The Religion Educator, vol. 20, no. 3, 2019
Abstract: This article reviews the history of circumcision as found in the Old Testament and suggest some principles of covenant living that can be taken from an understanding of that history.
Responding to Wrong Answers [here]
The Religious Educator, vol. 16, no. 2, 2015
Abstract: I explore effective ways to respond to wrong answers from students in a religious instruction setting.
The Textual Context of Doctrine and Covenants 121-123 [here]
The Religious Educator, vol. 13, no. 1, 2012
Abstract: Doctrine and Covenants 121-123 is composed of selections made by Orson Pratt from a letter written by Joseph Smith while in Liberty Jail. Understanding the textual context of the canonized portions of the letter can increase our understanding of the principles taught in Doctrine and Covenants 121-123.
Presidential Candidate Joseph Smith and Full Reserve Banking (R&R)
April 2019
Abstract: In 1844, Presidential candidate Joseph Smith published a political platform that included several banking proposals. He suggested the creation of a national bank, a national currency, and a full reserve ratio requirement. This article explains the economics behind those proposals, connects them to Joseph’s experiences in Nauvoo and Kirtland, and discusses in what ways candidate Smith’s proposals are similar to banking policies which are widely implemented today.
Toward a New Theory of Money: Quantitative Easing and a Permanently Large Federal Reserve Balance Sheet
November 2018
Abstract: Quantitative easing in a currency-less fiat monetary system where money is a factor of production and there is full reserve banking is explored. In this economy, money is a form of interest bearing government debt, the services of the stock of money are a factor of production, and there exists a level of money stock above which the marginal product of money is zero. I show how quantitative easing can be modeled in this environment. I find that quantitative easing is an effective response to a liquidity crises because it drives the marginal product of money to zero. When the marginal product of money is zero, the business sector does not have to pay to rent the services a production factor that is free to create. Further, I find evidence for the Federal Reserve maintaining a permanently large balance sheet. A permanently large balance sheet has no effect on prices or output, but can insulate against future liquidity shocks. A permanently large balance sheet is not associated with high inflation.
The CEO Job Market and the Role of Executive Search
January 2016
Abstract: I develop the economic theories of executive search in the CEO job market. Two models are developed. The first allows explorations into what type of company would choose hire senior management through executive search consultants versus promote from within. The second explores what type of worker is most likely to be the target of executive search. I begin to validate both models using ExecuComp data. I find that smaller companies are more likely to hire external CEOs than larger companies. I also find that younger workers are more likely to be the target of executive search.