Omicron Delta Epsilon Graduate Student Session
Paper Session
Saturday, Jan. 6, 2024 2:30 PM - 4:30 PM (CST)
- Chair: J. J. Arias, Georgia College and State University
When Biased Beliefs Lead to Optimal Action: An Experimental Study
Abstract
Do biased beliefs always lead to sub-optimal actions in equilibrium? Heidhues et al. (2018) demonstrate that optimal action can be achieved with misspecified beliefs when output depends not on each of the inputs independently but solely on their aggregate. This study provides an experimental test of this proposition. Supporting the theory, Experiment A highlights the exacerbated inefficiency that arises when decision-makers allocate tasks to individuals separately, guided by their potentially incorrect beliefs about the relative productivity of each person. However, this harm can be mitigated when decision-makers allocate tasks to a group of individuals, focusing solely on the average productivity of the group. Experiment B further establishes a causal link by introducing exogenous belief biases. This study holds significant implications for how to address the negative impacts of belief biases, especially when belief biases are challenging to rectify.Powering Down and Moving On? Energy Transition, Gentrification, and Local Impacts
Abstract
As the United States navigates a significant energy transition, marked by the retirement of fossil-fuel power plants and a shift towards renewables, it is crucial to comprehend its impact on local communities. This study leverages comprehensive datasets, including USPS Change of Address data and power plant retirement details, to conduct a nationwide assessment of how the retirement of fossil fuel power plants influences local migration trends and community dynamics during an unprecedented energy transition. Contrary to the typical narrative of gentrification, my findings reveal that the complete retirement of fossil-fuel generators in a region leads to a “stagnation effect,” characterized by decreases in both in-migration and out-migration. Despite improvements in environmental quality, plant closure is associated with long-term declines in employment and wages and a modest decrease in housing values. My analysis further reveals that lower-income groups and regions with a higher proportion of Black residents experience an intensified stagnation effect, raising environmental justice concerns. These findings underscore the complex interplay between the advantages and challenges associated with phasing out fossil fuel infrastructure, emphasizing the need for policies to support at-risk communities during the energy transition.Housing Voucher Discrimination and Deaths of Despair
Abstract
Housing policy relating to the opioid epidemic is receiving increased scrutiny. Concerns have arisen that rejecting housing vouchers is harming public health. We estimate the relationship between legalizing housing discrimination of section 8 housing vouchers and deaths of despair using state level data on U.S. adults from the Centers for Disease and Control WONDER database. Leveraging 2015 legislation in Texas and Indiana that legalizes section 8 housing voucher discrimination, results indicate the policy correlates with a statistically significant increase in benzodiazepine and heroin mortality. These findings suggest that legalizing section 8 housing discrimination may worsen public health in the ongoing opioid crisis.Discussant(s)
Jancy Ling Liu
,
Georgia Institute of Technology
Kippeum Lee
,
Pennsylvania State University
Christopher Brooks
,
West Texas A&M University
Sora Youn
,
Texas A&M University
JEL Classifications
- A1 - General Economics
- Y8 - Related Disciplines