Search Results

Showing results 1 to 7 of approximately 7.

(refine search)
SORT BY: PREVIOUS / NEXT
Series:Community Affairs Research Working Paper  Bank:Federal Reserve Bank of Kansas City 

Working Paper
Worker's compensation and state employment growth
Workers Compensation reforms have been on the table in virtually every state over the last several years, and many states have launched comprehensive reforms. At least nine states undertook major reforms of their workers compensation systems in 2004 alone, and the reforms were driven largely by claims that higher workers compensation costs are driving away businesses and the employment that comes with them. Given the nearly universal assertion by promoters of workers compensation reforms that high cost states lose jobs to relatively low cost states, one would expect that substantial research exists to back up the claims. In fact, however, although a voluminous literature exists that explores behavioral aspects of workers compensation insurance, including effects on injury rates, number of claims, and duration of claims, there has been no systematic study of the relationship between workers compensation costs and economic growth. This paper sets out to help fill the intellectual void by examining the relationship between workers compensation costs and employment growth across U.S. states from 1976 2000. Workers compensation costs are found to have a statistically significant negative impact on employment and wages, but the elasticities are very small, suggesting that workers compensation costs are not a likely cause of jobs woes in most states.
AUTHORS: Edmiston, Kelly D.
DATE: 2005

Working Paper
New insights in the determinants of regional variation in personal bankruptcy filing rates
Nonbusiness bankruptcy filing rates have increased very rapidly over the last couple of decades. In 1980, roughly 15 of every 10,000 Americans filed for bankruptcy protection. By 2004, that number had reached 54 of every 10,000 Americans. These alarming increases in bankruptcy filing rates over the last decade were largely the impetus for the Bankruptcy Abuse Prevention and Consumer Protection Act, which went into effect in October, 2005. A substantial literature already exists that seeks to determine the causes of personal bankruptcy, but critical holes in the literature remain. In particular, existing studies offer only weak inferences about the role of stigma in explaining the decision to file for bankruptcy or in explaining regional variation in bankruptcy filing rates. I enhance the existing literature by using innovative approaches to measuring the effects of age and geography, traditional proxies for stigma, and by utilizing a novel proxy for stigma, namely, religious adherence. There is also a lack of consensus on the effects of gambling on bankruptcy, with most research finding no statistically significant relationships. I utilize a unique measure of proximity to gambling establishments and subsequently find more definitive results. The existing literature lacks consensus on the effects of homestead exemptions as well, with some finding positive effects, some finding negative effects, and still others finding no effects. I assert that the explanation of these inconsistent results may lie in endogeneity, and therefore I estimate two-stage models that effectively instrument for homestead exemptions. In addition, I explore the effects on bankruptcy filing rates of factors generally left out of existing studies, including small business and self-employment, a full distribution of age and income, more narrow demographic definitions, disability, lack of health insurance, public assistance, housing and vehicle choices, and additional information on debts and debt service.
AUTHORS: Edmiston, Kelly D.
DATE: 2005

Working Paper
The role of small business in economic development
This paper sets out to evaluate the role that entrepreneurs and small businesses play in economic development. How important are entrepreneurs and small businesses in creating jobs, and are these the types of jobs that should be encouraged? How important are entrepreneurs and small businesses in the development of new products and new markets? Does promoting entrepreneurship and small businesses make sense as an economic development strategy? The answer is yes, but with some qualifications. Small businesses are potent job creators, but so are large businesses. The attribution of the bulk of net job creation to small businesses arises largely from relatively large job losses in large firms, not to especially robust job creation by small firms. More importantly, data show that large businesses offer better jobs than small businesses, on average, in terms of both compensation and stability. Further, there is little convincing evidence to suggest that small businesses have an edge over larger businesses in innovation. However, research and experience show that pursuing large businesses is likely to be a poor economic development strategy, which suggests that promoting entrepreneurship and fostering small businesses may offer a more viable alternative. But more research is needed to evaluate the case, and indeed, to determine whether or not public engagement in economic development itself is a cost-effective and worthwhile pursuit.
AUTHORS: Edmiston, Kelly D.
DATE: 2004

Working Paper
Nexus, throwbacks, and the weighting game
This paper modifies a model proposed by Anand and Sansing (2000) to explain why states have chosen different formulas for corporate income apportionment. I demonstrate that nexus assumptions and allocation rules can have significant effects on the outcomes of the model, and are important considerations in analyzing the impetus for and effects of apportionment competition.
AUTHORS: Edmiston, Kelly D.
DATE: 2004

Working Paper
Economic effects of apportionment formula changes : results from a panel of corporate income tax returns
To date empirical studies of the economic effects of changes in state corporate income tax apportionment policies have used only highly aggregated, state-level data.This study uses data at the individual firm level, which is provided by a population of corporate income tax returns from the State of Georgia over the period 1992 2002, to evaluate the economic development and revenue aspects of increasing the sales factor weight (and uniformly lowering the weights on payroll and property) in state corporate income tax apportionment formulas. Looking at the firm level, we find elasticities sufficiently large to lead to substantial impact on local sales ( - 6.5 percent), payroll (2.0 percent) and property (2.1 percent) following a move to double-weighted sales. For the average firm, increases in Georgia payroll and property were $37,110 and $190,829, respectively, while the decrease in Georgia sales for the average firm was $634,367. Based on 1994 figures (the year prior to double-weighting), this amounts to state-wide increases in payroll and property of $0.6 billion and $3.1 billion, respectively, and a decrease in gross receipts of approximately $10.4 billion.
AUTHORS: Edmiston, Kelly D.; F. Javier Arze del Granado
DATE: 2004

Working Paper
Financial education at the workplace: evidence from a survey of Federal Reserve Bank employees
There are a number of possible explanations for the seemingly irresponsible financial behavior of many Americans. In this paper we argue that an important explanation is simply ignorance: consumers often make poor financial decisions because they do not know how to make good ones. In particular, we stress that consumers may not realize the importance of saving for the future, and that they may not perceive the trouble they can bring upon themselves by incurring large amounts of unsecured debt. Using survey data from employees of the Federal Reserve Bank of Kansas City, we demonstrate that, at least for people sharing the characteristics of these employees, financial position is highly related to knowledge of personal finance. We also demonstrate a relationship between financial education and financial knowledge and behavior for this group.
AUTHORS: Edmiston, Kelly D.; Fisher, Mary Gillett
DATE: 2006

Working Paper
Taxing consumption in Jamaica
In Jamaica, as in most countries, consumption taxes in the form of a value-added tax called the General Consumption Tax (GCT) and several excise taxes collectively known as the Special Consumption Tax (SCT) are critically important revenue sources, accounting for 37.4 percent of total revenues in fiscal year 2003/04 (27.7 percent for GCT alone) and an estimated 11.2 percent of GDP (8.3 percent for GCT alone). This paper first describes in some detail the present structure and administration of the GCT and SCT and then evaluates the performance of these taxes from several angles -- as revenue generators, with respect to their distributional effects and their relation to the shadow economic, their administrative aspect, and in international perspective. It concludes by setting out a number of recommendations for reform.
AUTHORS: Edmiston, Kelly D.; Bird, Richard M.
DATE: 2006

FILTER BY year

FILTER BY Bank

FILTER BY Series

FILTER BY Content Type

FILTER BY Keywords

PREVIOUS / NEXT