Exchange-traded funds (ETFs) are well suited for trading in student-managed investment funds (SMIFs). Unlike other forms of security selection, ETF trading provides efficient trading of portfolios by asset classes, subclasses, investment style, countries, regions, and sectors. The learning experience from trading ETFs based on global macroeconomic themes enhances the learning experience of economics students by requiring application of macroeconomics, industrial organization, international economics, and econometrics. This article presents the structure, tools, and results of an ETF trading program implemented by the economics and finance departments at the University of Richmond. Although this SMIF example uses ETF funds as a learning medium for undergraduates, the investment process with ETFs is also well suited to small individual investors. TOPICS:Exchange-traded funds and applications, portfolio construction

The authors examine whether the administrative location of an econom- ics department in a business versus liberal arts school alters the character of the economics program provided to undergraduate majors. To test this hypothesis, they constructed a curricular character index (CCI) based on a detailed accounting of assorted dimensions of an economics major. The CCI served as the dependent variable in a regression model that controlled for other institutional attributes that could influence curricular character. The sample of 148 primarily undergraduate institutions was selected to impose some semblance of a ceteris paribus environ- ment. Contrary to earlier findings, the empirical results strongly indicate that the administrative location of an economics department in business versus liberal arts schools significantly changes the character of the program offered to majors.

The authors describe the Business Conditions and Economic Analysis (BCEA) program developed at the University of Richmond. The BCEA program is an experiential learning format for in economics students built on the success of student- managed investment funds (SMIF) in finance. In its initial implementation, the BCEA group conducts domestic and global macroeconomic analysis and industry studies to support the portfolio decisions of student fund managers. At a more mature stage, the BCEA program includes a web-based publication for disseminating that would include macroeconomic forecasts and special topic articles written by BCEA and SMIF students. Generally, the BCEA program is a curricular extension for economics students seeking higher levels of rigor in their course work, academic distinction in economics, and refinement of competencies for careers in financial economics.

The Ticket to Work legislation (1999) introduces private‐sector competition into the provision of return‐to‐work services for persons with disabilities who receive Disability Insurance (DI) payments. This article examines the likely effects of the Ticket to Work initiative using data from the Social Security Administration's Project NetWork experiment (1993–98). The analysis demonstrates that the efficacy of the Ticket to Work program will depend on whether the private sector replaces the vocational rehabilitative services currently provided by the public sector, or whether it expands the delivery of services—both in terms of the level and range of services provided, as well as increasing the portion of DI beneficiaries receiving services. (JEL H4, I0, J2)

The study presents benefit-cost ratios for 14 disability cohorts served by the Vocational Rehabilitation (VR) Program. The earnings impacts are estimated in a quasiexperimental framework using an internal comparison group. The earnings data are from a unique national panel constructed by linking client data of the Rehabilitative Services Administration with earnings histories from the Social Security Administration. These earnings data accommodate a series of statistical tests that allow us to identify and control for the presence of selection bias when estimating treatment impacts. The results indicate that the VR program is cost-effective in general, although not universally so across specific disabilities.

The article examines the relative contributions of human and physical resources in the production of private undergraduate education. The research methods are noteworthy in three respects. First, the theoretical orientation emphasizes interdependence among inputs and outputs in higher education. The significance of simultaneity among quality students, faculty and institutional output is demonstrated via a three-stage least-squares technique. Second, the study introduces an output variable reflecting the quantity and quality of institutional production. Finally, the exclusive emphasis on private undergraduate institutions offers a well focused perspective for policy decisions in this area of higher education.

The paper examines the efficacy of higher education as a remedial strategy for persons with work disabilities. Efficacy is measured by comparing individual treatment costs to net earnings impacts. The treatment costs data reflect the services provided by the Virginia vocational rehabilitation program. Earnings impacts are estimated using longitudinal earnings profiles within a quasi-experimental research design. A key consideration in this research design is identification of an acceptable comparison group. The empirical results indicate that higher education is a cost effective strategy for persons with work disabilities. We suggest that perhaps higher education should be given an expanded role within the state-federal vocational rehabilitation program.

Since 1975, vocational rehabilitation has represented a small and declining component of federal disability policy. This trend is perhaps reflective of the relatively crude assessment techniques that have been applied to the program in the past. Using the Virginia Vocational Rehabilitation (VR) program as a prototype, we outline how the data and methods of assessment can be improved for purposes of directing public policy. The key issues include identifying an appropriate comparison group for VR, analysis of longitudinal earnings data, and methods for refining measures of program cost. The analysis provides "fixed-effects" estimates of net earnings impacts for each of three postprogram years stratified by disability classification and gender. These treatment impacts are compared to total and service-specific costs. In general, this analysis suggests that evaluation of VR can be substantially improved and that these improvements can be attained at relatively modest analytic cost.

The article examines the relationship between achievement and expenditure in primary and secondary public education. The estimation methods are noteworthy in three respects: (1) socioeconomic effects are treated via an “unobservable variables” technique; (2) measures of school district expenditure are valued in constant dollars by constructing locality-level price indices; and (3) we correct for heteroscedasticity, a problem which may be common in estimations using aggregate data. The data are from Virginia, a four-year cross-sectional panel aggregated at the school district level. The results reveal the importance of heteroscedasticity correction and the usefulness of an unobservable variables approach to modeling socioeconomic effects. The results are relatively insensitive to cost-of-living adjustment. Among the policy inferences, we find that expenditure effects on achievement may be stronger at the primary school level.

The study examines price behavior in tight oligopoly. The investigation proceeds from the premise that tacit cooperation is the rational response of firms comprising tight oligopoly. The study’s thesis is that cooperative conduct in tight oligopoly will reflect one of two general pricing patterns: (1) shared monopoly pricing, or (2) mark-up pricing. A unique empirical test of this dual price hypotheses is developed. The test focuses on the nature of price responses to cost and demand changes as reflected in a price equation that is estimated for each of fifty four-digit SIC industries. The study’s results indicate infrequent, but still notable, instances of shared monopoly pricing. More common is evidence of mark-up pricing, a general category within which demand proved to be significant in roughly half of the industries examined. Theoretical implications of these findings are discussed.