Roanoke College Economics Program

Roanomics
Volume 2, Issue 1 Summer and Fall 2011

From the Colonels Desk

Thirty-five years- -thats how long Ive been teaching. Sixteen- -thats the number of different classes Ive taught in my career at Roanoke. I consider myself a macro guy- -you know, GDP, the Fed, the Phillips Curve, all that good stuff. And although Ive taught principles of micro hundreds of times, Ive never had the opportunity to teach intermediate micro theoryuntil now. The usual teacher, Dr. Nik-Khah, is on sabbatical this year, opening up a golden opportunity for me to give it a go. And let me tell you, its been fantastic! I have 23 very bright and engaging students in the class, mostly econ majors and minors, with three ladies from Hollins. I dusted off my old textbook from when I took the course 40 years ago (1971), pulled out the notes I took in class, and got to work. Come to find out, micro doesnt change very much or very fast. It isnt like macro, where new ideas and arguments come along almost weekly. No, micro is micro, the alpha and the omega, never changing, always consistent, and never boring (ha-ha!). Ahhh..it seems only yesterday when I first encountered indifference curves, budget lines, and the declining marginal rate of substitution. Its like riding a bikeit comes back to you real fast even though you havent done it for a long time. Giffen goods, the three stages of production, isoquants, the backward-bending labor supply curve-this is but a sampling of exciting topics coming later this semester. For me, this has been a labor of love. For my students, probably just labor. I hope they have enjoyed it as much as I have-probably not, but I can always hope.
Garry Fleming, Shannon Chair of Economics

Advising tips:
The Economics Program offers a major and a minor If you major in BUAD, there are only five additional courses left to complete the minor in ECON (one of which can count as the BUAD elective) Several of the ECON 200-level courses serve as electives in BUAD concentrations ECON 121 can substitute for an INQ 260

Inside this issue:

News and notes Spring courses Updates Undergraduate Research A Brief History of RC Economics You asked, we answers: Economic Conditions Presentations, Papers, and Awards Featured on the RC Economics blog Travels with Dr. Bob 2 3 4 7 8

And now the count is seventeen.

Reaching out
Our first issue of Roanomics was a hit! We got some great feedback from students, faculty, staff, friends and alumni. Thank you. The Economics Program blog (kassensroanokeecon.blogs pot.com) has been active, giving readers updates about our student projects, classroom experiences, and our visiting faculty. Finally, we have been tweeting items of interest. Follow us on Twitter @roanokeecon to have immediate updates! If you would like to see a particular topic addressed in the newsletter, please send us an email at roanokeecon@gmail.com. We might even publish your remarks! We look forward to hearing from you!

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12 13 14

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Roanomics

News and notes

The Roanoke College Economics Program received high praise by students in a survey conducted for the 2012 Princeton Review Shingirai (Chris) Kwaramba `12 was selected to attend The PhD Conference November 1618 in Chicago, IL. The PhD Project is a program sponsored by KPMG, LLP to increase minority representation in PhD Business Programs in the US. Congrats Chris! Your hard work is paying off. Katie Thornton `13 is enjoying her semester abroad in Morocco. We cant wait for your return so that you can tell us all about it. Sara Caudle `12, Nic Wright `11, Tyler Rinko `11, Jorge
Dr. Alice Kassens

Chris Kwaramba

Guzman-Correa `11, Justin Tuma `11 earned Honors in the Major. This is a record number for a given year in economics. Great job! Justin Tuma `11 is playing lacrosse while he is in graduate school in the UK. Tyler Rinko `11 presented his research on the European Debt Crisis to the Roanoke College Board of Trustees in October Dr. Alice Louise Kassens won the 2011 Quintiles Marathon at Wrightsville Beach in 2:59:04 in March. This was Dr. Kassens first marathon win. Her next marathon is the Philadelphia Marathon in November. Darshak Patel received his PhD in Economics from the

University of Kentucky. Congrats Darshak! Dr. Garry Fleming became a grandfather over the summer of 2011! His daughter Mandy and her husband Michi Ono welcomed daughter Emily into the world June 11, 2011. Sue and Garry are proud grandparents! Dr. Garry Flemings son Drew is engaged to Jessica Holbrook. Garry and Sue have had a lot of good news recently! Please let us know what is new with you at roanokeecon@gmail.com or fill out our form at kassensroanokeecon.blogspot.com

Katie Thornton

Where are our alumni now?

Many current students have asked both What can I do with a degree in Economics? and What are RC Economics alumni doing now? To that end, we will list a few of the current jobs of our alumni in each issue of Roanomics to help address both of these questions. Craig Ultsch `07 is a Mid Atlantic Sales Manager for The Chemical Company in Jamestown, RI. Stephanie Wright `95 is the Deputy Staff Director for IT and Defense Operations at the Defense Logistics Agency in Fort Belvoir, VA Timothy Henahan `77 is the President and CEO of Baker & Co, Inc. in Rocky River, OH Peggy Horn `78 is the President of SBC Systems Company, Inc. in Atlanta, GA Steven Swanson `76 is the President of Swanson Consulting, LLC in Beaver Falls, PA Maria Schuler `01 is a business analyst at the Merkel Corporation in Richmond, VA George Howard `68 is the owner of Wines by George, a retail wine seller Go to pg. 6 for a listing of the class of recent graduates. Fill out the alumni survey at kassensroanokeecon.blogspot.com Have career advice or contacts for our current Economics students? Please send an email to roanokeecon@gmail.com. Follow us on Twitter @roanokeecon for updates on the Program, alumni, faculty, and students!

Jorge Guzman

Danielle McClosky

Volume 2, Issue 1

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Student Editors Note: Sara Caudle `11

My experience at Roanoke can be summed up in one quote: time flies when youre having fun. It is hard for me to believe graduation is less than 7 months away. It seems like just yesterday I was moving my belongings into Tabor Hall. When I reminisce on my time at Roanoke, the moments I cherish the most are the ones I made in the classroom. In the fall of my junior year, I received a letter stating that I qualified for the Honors in the Major designation. I was ecstatic; however, by the end of the letter, the excitement had worn off. I had to develop my own project, produce a 25 to 30 page paper, present the project to the Honors Committee, and receive a grade of A- or better on the project to receive the Honors in the Major designation. By far, this would be the biggest challenge of my college career. I became fascinated by the influence of health on productivity after taking health and labor economics with Dr. Kassens. When I delved into the research, I realized that the relationship between health and productivity of college students has yet to be studied. I conducted a study of Roanoke College students using BMI, physical exercise, and alcohol and cigarette consumption as measures of health. Productivity was measured by a students grade point average. I sent out a survey to the entire student body via email and received 497 responses in less than 2 weeks. After I analyzed the data and wrote my paper, I had to present my project to the Honors committee. Once I gave my Honors defense, the committee asked me to leave the room, so they could discuss my grade on the project. This was the longest 10 minutes of my life. When I entered the room, they told me I had earned the Honors in the Major designation. It was truly gratifying to see all of my hard work pay off. The biggest reward was learning that my professors prepared me to succeed. With graduation on the horizon, I look forward to starting my career because I know my professors have given me the tools and knowledge to face any challenge that comes my way.
It was truly gratifying to see all of my hard work pay off. The biggest reward was learning that my professors prepared me to succeed.

Spring 2012 Courses

ECON 121 Principles of Microeconomics Section A, Patel, Block 2 Section B, Patel, Block 3 Section C, Spencer, Block 10 ECON 122 Principles of Macroeconomics Section A, Fleming, Block 4 Section B, Amini, Block 4 Section C, Amini, Block 5 ECON 232 Money and Banking Section A, Spencer, Block 7A ECON 247 International Trade & Finance Section A, Spencer, Block 11 ECON 257 Competition, Monopoly & Public Policy Section A, Patel, Block 8 ECON 322 Intermediate Macroeconomics Section A, Fleming, Block 7A ECON 461 Economic Seminar Section A, Fleming, Block 12

Planning Ahead
Summer I ECON 122 Fleming Summer II ECON 121 Kassens

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Roanomics

Faculty Update: Dr. Alice Louise Kassens

I cannot believe that I am only weeks away from my sabbatical! It seems like only yesterday that I was teaching my first course at Roanoke College. Although I will miss working with students on a daily basis, it will be helpful to have a period dedicated to research. I have several projects planned for the sabbatical. I will continue my work with Dr. William M. Rodgers III (Rutgers University) analyzing the effects of clinical depression on the labor market outcomes of young adults. I received the 2011-12 VFIC Mednick Memorial Fellowship to assist with the travel involved in accessing the highly sensitive and restricted data for the project. Much of the data is linked to IRS and Census data. Specific protocols are in place for approved users. For example, data must be used on-site (NYC). I hope to have a story describing my two+ year journey gaining access to this data in the next newsletter! I will begin a project with Dr. Yana Rodgers (Rutgers) looking at the effect of economic development in Latin America on the incidence of obesity and Type II diabetes in those countries. Yana is a Development Economist and I look forward to pairing our stills for this project. (Plus Yana is an avid runner, so many of our brainstorming sessions can take place on the trails of New Jersey.) I am in the process of submitting a proposal to SAS in Cary, NC. I hope to develop an assessment method for wellness programs. Many companies, such as SAS and Roanoke College, have wellness programs, but do not assess their long term outcomes. SAS is a large firm that has had a popular wellness program in place for some time, making it a perfect subject of research on the topic. I suppose my experience with Academic Assessment at Roanoke College has gotten the better of me! Finally, I will continue working with Dr. Harry Wilson and the IPOR. I was brought onboard for an exciting new project measuring consumer sentiment in VA. The first survey begins this month and will be repeated quarterly. Most of the semester I will be working at Roanoke College, but I will spend several weeks at Rutgers Universitys Heldrich Center conducting research, in addition to collaborating with Yana Rodgers. I will also make several trips to Cary, NC if my research proposal with SAS is accepted. Through it all, I am lucky to have the invaluable help of my research assistant, Kerry Murphy `13. My assessment assistant Sara Caudle `12 will help keep assessment running smoothly in my absence! Thanks ladies!

Alice Kassens

The Roanoke College Economics Program hosts three Visiting Faculty this semester: Deborah Clark Darshak Patel Shahram Amini Features introducing each of them are on our blog: kassensroanokeeco n.blogspot.com

Faculty Update: Dr. Darshak Patel

I think I put on15 pounds since I joined Roanoke College and yet if you see me you would think I never eat. It has been very easy to adjust to life here. The faculty (especially Economics) and staff (Dreama is awesome) are very friendly and the school does a good job of promoting inter-disciplinary relations. I have been pretty active in the college as well. This includes supporting the Maroons men and women soccer teams. Unfortunately, they are done with the season but it would be nice to see more support for them. Furthermore, together with other faculty members, we planned several events to celebrate an Indian holiday called Diwali including bursting fireworks on campus concurrently with an ongoing board meeting (Campus security was sent to clear us out). Unfortunately, I will not be able to show off my shenanigans at the presidential ball but I am hoping my colleagues will represent. Peace!!

Darshak Patel

Volume 2, Issue 1
Want to study abroad? Want to go where you can get ECON or BUAD credit? We want to help! Dr. Ali Nazemi is locating study abroad opportunities for BUAD and ECON majors, minors, and concentrators. Schools identified include: Universidad Publica De Nevarre (Navarre, Spain) Jiangxi University (Jiangxi, China) Massey University (New Zealand) Regents College (London, England) These schools offer BUAD and ECON courses that can count towards the BUAD and ECON major. All courses are taught in English. If you would like more information on the study abroad opportunities for BUAD and ECON, contact Dr. Nazemi at nazemi@roanoke.edu

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Student Update: Katie Thornton `13

Salam alaykoum Roano ke College! My name is Katie Thornton, and I'm a junior majoring in economics and spending this semester abroad in Morocco. but I have traveled all around the country. will be a great opportunity to explore my interests in economic development.

My favorite part of the semester so far has been the week I spent living with a family in the rural village of As a developing country Feryat in central Morocin North Africa, Moroc- co. My host family there co is quite different from was so kind, constantly the United States, but I laughing and joking have enjoyed being im- with each other and welmersed in a culture so coming me into their different from my own. I community. love the distinct architectural style of Moroc- During the week, my can cities, the variety program also volunteers of languages that are at the village's elemencommonly spoken, the tary school. importance of family and community, and all In the last month of the of my new Moroccan program, I am looking friends. forward to completing an independent study I live with a host family project on microfinance in Rabat, the capital city, in Morocco. I hope it

Katie with her hostsister before a Moroccan wedding

Alumni Update: Melissa Zamarin 08

To every student who attends Roanoke College, the experience is simply memorable. When I graduated in 2008, I had no idea at the time just how many life skills I had acquired while earning my Economics Degree from Roanoke College. I studied Economics in a challenging environment that was also very personal and rewarding. In addition to my scholastic work, Roanoke College taught me how to effectively communicate to my peers along with the faculty in a professional and successful manner. This is a skill that I heavily rely on and four years later I am still reaping the benefits from my Roanoke College education. After I graduated, I started working for US Bank as an Administrative Assistant to a Regional Bank President. In two years as an Administrative Assistant, I was able to move into Treasury Management. Currently, I am a Treasury Management and Payments Consultant. My job does not specifically deal with Economics, but due to my education, I have the communication skills and work ethic needed in order to be confident and successful in my professional life.

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Looking for a job? Not sure what you are going to do when you graduate? Use available resources! In addition to RC Career Services, talk to professors or contact alumni. Many alumni are willing to help. For a list, contact roanokeecon@gmail.com

Roanomics

Recent Graduate Update: Work

Miro Batka `07 IFPRI, Senior Research Assistant Washington, DC Matt Bolling `10 Robert Half International, Staffing Manager Richmond, VA SJ Brussard `09 Hudson Securities, Institutional Equity Sales Boston, MA Matt Delaney `10 2tor, Operations Analyst Washington, DC Gio Forte `11 Owings Mills, MD Jorge Guzman-Correa `11 Grade, Research Assistant Peru Danielle McClosky `10 Boston Medical Center, Research Assistant for MedDebt Project, Boston, MA Brode McCrady `07 Fidelity Investments, Premium Services Brokerage Representative Cincinnati, OH Megan Rhodes `11 Northwestern Mutual Richmond, VA Phillip Sheridan `11 Flying Fox Vineyard, Tasting Room Manager Charlottesville, VA Craig Ultsch `07 The Chemical Company, Mid Atlantic Sales Manager Jamestown, RI Melissa Zamarin `08 US Bank, Treasury Management and Payments Consultant Seattle, WA NOTE: The Economics Program has developed a document describing employment opportunities for young economists. If you would like a copy contact Dr. Kassens at kassens@roanoke.edu

Megan Rhodes `11

T. Rowe Price

Recent Graduate Update: School

Jorge Guzman-Correa `11 Additional math courses Roanoke College, Salem, VA Elizabeth Hoover `08
Tyler Rinko `11

Roanoke College, Salem, VA Samantha Sterba `09 PhD, Economics U-Mass Amherst, Amherst, MA Justin Tuma `11 Masters, Management Durham University, Durham, UK Are you interested in graduate school? 46% of the Roanoke College Economics Class of 2011 were considering it, while 15% are

currently enrolled in a graduate program in economics. Your professors are more than happy to talk with you about your plans. Remember we all went to graduate school, and can offer advice and point you in the right direction for additional help. Additionally, many alumni are willing to talk with you about their experiences in graduate school. Email roanokeecon@gmail.com for a list of alumni who are willing to help.

Pre-Med, University of Virginia Charlottesville, VA Danielle McClosky `10 Masters, Health Policy Boston University, Boston, MA Tyler Rinko `11

Justin Tuma `11

Teaching License

Volume 2, Issue 1

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Undergraduate Research Experience: Nomin Baasandavaa 12

Last spring I presented my paper The Effect of Air Pollution and Its Exposure to US Health at the 38th Annual Virginia Association of Economists held at the Federal Reserve Bank of Richmond, the very place I would have never imagined myself to step inside and give a presentation in front of professional economists! Also, I enjoyed the opportunity to have a fancy dinner with the economists the evening before the presentation. It was a great privilege for me to have such a challenging and rewarding experience like this. This opportunity would not have happened without Dr.Kassens support and encouragement, and the funding from the Director of Student/ Faculty Research, Dr. Julie Lyon.

Baasandavaa `12

Undergraduate Research Experience: Faculty Report

On March 24th Gio Forte 11, Nomin Baasandavaa 12, and Dr. Alice Louise Kassens attended the Federal Reserve Bank of Richmond for the 2011 Virginia Association of Economists Annual Meeting. Dr. Kassens presented her paper on the effects of clinical depression on labor market outcomes on Thursday afternoon. This was the first time she has presented results from a new data set (NSDUH). The results and paper were well received. Gio and Nomin were in the audience and got to see what their professors experience during presentations. Gio and Nomin got a bit anxious about their presentations, but were assured that student papers do not have discussants and the questions after the presentation are friendly. Elizabeth A. Duke, a Federal Reserve Board Member, gave the Sandbridge Lecture after dinner. She was introduced by Jeffrey Lacker, President of the Federal Reserve Bank of Richmond. She introduced new data regarding savings patterns over the most recent recession. It was a great experience for the RC students to see such prominent people in the monetary policy world and attend a dinner in which the national media reported on the lecture in real-time. The following morning, following a presentation on No Child Left Behind by a Bridgewater College student, Gio took the floor. He gave a thorough, organized, and precise presentation on the Tiger Woods Effect. Written for the fall econometrics course, Gios paper examined the effect of Tiger Woods performance at major tournaments on gate revenues and apparel sales. Gio included measures for the macroeconomy, including unemployment. He found that once he accounted for the economy, Tigers performance did not have an effect and that the economy was to blame for reduced golf revenues. Nomin finished out the session with her presentation on the effects of air pollutants on health. Nomins presentation was also based on her paper from the fall econometrics course with Dr. Kassens. Using a health production function Nomin reported the effects of methane and CO2 on mortality, life expectancy and morbidity. Nomins presentation was smooth, professional, and thoughtful. Walking out of the Federal Reserve Bank building, turning in our security badges, I (Dr. Kassens) was beaming with pride. Roanoke College was well represented by our young scholars. The support from Dr. Julie Lyon and the RC Office of Student/ Faculty Research was invaluable. Two years ago, Samantha Sterba 09 and Virginia Hopkins 09 were the first economics students to present at a professional conference. Each year since, we have had at least two students presenting off-campus. 2010-11 was a banner year with nine student conference presentations. The class of 2011 has certainly laid down a challenge for the class of 2012 and beyond!
The Virginia Association of Economists (VAE) grew out of a meeting of twentytwo economists in Salem, VA in 1973. The original "Salem 22" included William Sandridge and John Spitz. The VAE seeks to promote inquiry into economics, to improve economic education, and to develop understanding of the operations of the Virginia economy. Consider attending the 2012 meeting in Virginia Beach. Roanoke College professors and students will present their research. For information go to www.vaecon.org

Forte `11

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Roanomics

A Brief History of Roanoke College Economics

How long has Roanoke offered studies in economics? Its an interesting question that my student assistant and I tried to answer. After spending several hours in the Colleges archives, Allie and I uncovered some interesting history. Before I begin, I want to thank Allie Mangione `12 for her help. departments as we have now, just one big happy college with numerous programs. In the academic year 1921-22 this changed with the advent of the Department of Business Administration, which included economics as it does today. Along with the economics courses mentioned above, the department offered courses in accounting, business law, corporate finance, and what was probably the precursor to organizational behavior. New economics courses included foreign exchange (most likely international trade and finance) and economic geology-yesgeology. How many faculty to teach all of these courses? Anyone have a guess? Three! In the late 1920s, there comes the first split of principles into micro- and macroeconomics at Roanoke College, even though the General Theory was a half-decade away. Maybe it had something to do with the booming economy at the time. Additionally, a new course, economic geography, shows up in the catalog. By the middle of the Great Depression, there was a major in business administration, but not in economics. However, there was a senior level course called Economics Seminar, subtitled economic theory and practice, perhaps to offer suggestions on how to deal with the depression. At the outbreak of World War II, the department was called the Economics and Business Administration (I kind of like that). Four faculty members taught seven economics courses and new business courses including insurance, advertising, and stock exchanges (investments). The next ten years saw the economics curriculum grow to include comparative economics systems (maybe in response to the Cold War), social and economic ideas, most likely an interdisciplinary course with sociology. In academic year 1953-54, the department was renamed the Department of Economics, Business Administration, and Sociology!! Yes, sociology courses were taught by us. Fortunately for everyone, including the sociologists, this arrangement lasted only five years. In 1958-59, sociology became a stand-alone program. Additionally, a new course in economics called Business Cycles and Forecasting appeared, probably the budding of what is now Big Mac (ECON 322). In 1961-62, the College hired William Sandridge as a new professor of economics. Our modern day program can be traced back to his influence on the department. One of his

At the turn of the 20th century, economics was housed in the history and political science program, and still only offered the one course. But as the US entered the roaring 20s, economics took on greater importance both nationally and at Roanoke College.

Economics has been around as long as the College, although the program has changed considerably. In 1853, the first time the College published an academic catalog, there was only one economics course offered to all seniors, called political economy. There is no indication in the catalog as to the topics covered, but a good guess would be something along the lines of history of economic thought. By the way, tuition in 1853 was $50 and room and board was $18 per semester! The first professor on record to teach political economy was Professor Wayland. At the turn of the 20th century, economics was housed in the history and political science program, and still only offered the one course. But as the US entered the roaring 20s, economics took on greater importance both nationally and at Roanoke College. With two professors, Fox and Brown, courses offered included principles (most likely micro), money and banking, economic history of the US, labor problems, and public finance. There were no

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A Brief History of Roanoke College Economics

main contributions was to develop the BBA degree, which quickly grew in popularity and remains as the most popular major at Roanoke. Sandridge was also instrumental in developing the Virginia Association of Economists (VAE), a group that holds an annual economics conference and publishes an economics journal. The VAE named its keynote address, the Sandridge Lecture. Notable Sandridge Lecturers include Gordon Tullock (2003), Ben Bernanke (2005), Vernon Smith (2006), and Frederich Mishkin (2008). In 1967, we see for the first time intermediate micro (ECON 321) and macro (ECON 322), along with an introduction to quantitative economics, which later became quantitative methods in the business major. In the late 60s and early 70s, many new courses were brought on line, such as economic development, regional economics, history of thought, and managerial economics. The Department of Economics and Business Administration now had seven full time faculty. By the early 1980s, the department had grown to nine, three being economists. Some faculty names in those days are still familiar to many of us: Sandridge, Spitz, and Stauffer (I guess your last name had to begin with S in order to qualify). In 1981, the internship was added, and Darryl Lowry was hired. In 198586, ECON 257(Competition, Monopoly, and Public Policy) was first offered. Also, the Heny H. Fowler Public Policy Seminar was created. The department became Business Administration and Economics, a sad day for us all. By the late 1980s, some guy named Fleming had been hired, and a new course, Intermediate Macro Theory II, was being taught by John Spitz, its major topic being growth theory. Four economists were on staff in a department numbering 10 full time faculty and four adjuncts. In 1992, John Spitz retired, but was not replaced by another economist, leaving three economists to teach the entire curriculum of 13 courses, including multiple sections of principles. Also, health economics was taught for the first time. The next fifteen years saw mostly ceteris paribus. Intermediate Macro II was replaced with Economics seminar (ECON 461), urban economics went away, and QM went over to the business side of the department. Introduction to Economics (ECON 120) was developed, but has only been taught sporadically. In 2005, two new faces were hired that breathed some fresh air into the program, while simultaneously breaking the gender barrier. Eddie Nik-Khah and Alice (Allie) Kassens were added to the program, bringing the number of economists to five. Dr. NikKhah has been teaching in the honors program and created a course in political economy and history of economic thought that serves as the senior capstone course. Dr. Kassens took over health economics, created a new course in labor economics, and developed our econometrics course (ECON 448). These two new folks have been instrumental in the revival of the popularity of the economics major. We have gone from being able to count our majors on one hand to having upper level classes of 20-25 students. We also developed an economics minor, which has had much student interest. All this brings us to the present. What does the future hold for economics at Roanoke? One exciting idea on the horizon is the creation of an institute dedicated to economics education and research. We are currently working on a phase-in of this idea, which would involve importing and exporting economists and their areas of expertise. This is still very much in the planning phase of development, and we would appreciate any ideas anyone might have regarding this exciting program. Thats all for now. Thanks for reading this and being part of economics at Roanoke. Rememberwe are like the US Marine Corps: the few and the proud.

What does the future hold for economics at Roanoke? One exciting idea on the horizon is the creation of an institute dedicated to economics education and research. We are currently working on a phasein of this idea, which would involve importing and exporting economists and their areas of expertise.

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You asked, we answered: Several alumni wanted to hear what RC Economists think about the current economy. Faculty and students respond!

Roanomics
Economic Conditions: Deborah Spencer
December 2011 will mark four years since the Great Recession began. While the recession officially ended in June of 2009, anemic growth coupled with high unemployment persist. In the minds of most Americans, the Great Recession lives on. Republicans want to lower taxes and decrease regulation (its all the governments fault) while Democrats want more deficit spending (its the economy, stupid!). The recent past suggests that neither approach has much to cheer about. According to the nonpartisan Congressional Budget Office, the Bush era tax cuts account for the largest portion of revenue losses to the government today and years into the future (ie. Bush era tax cuts are the single category most responsible for the rising deficit today, even compared to war spending). Furthermore, as verified in the Wall Street Journal (January 9, 2009), job creation during the Bush era is the worst on record dating all the way back to the Truman presidency. Additional tax cuts to businesses and top income earners and more deregulation as the answer to joblessness strikes me as unproven and ill-advised. Not that deficit spending has helped either. Spending by the Obama administration appears to have had little effect on unemployment. Like the Bush tax cuts, too much benefit went to the wealthiest. Obviously, we need stimulus measures that balance the need for growth with fiscal responsibility. We need a tax and incentive structure that makes work pay, particularly for the working poor (a hidden but growing portion of our working population). In the short term, some type of stimulus spending via government seems to be the only tool available given what business owners are telling us. Any economic stimulus must be targeted to those who will spend it immediately (working people) and short term (most estimates show unemployment falling over the next two years, albeit slowly). This could be coupled with a tax incentive to employers who hire new workers or increase the hours of existing workers.

Deborah Spencer

Economic Conditions: Garry Fleming

Where do we go from here? Another stimulus package? Another round of quantitative easing by the Fed? As far as the so called jobs bill, it might help a little, depending on where the spending is directed. But if deficit spending is truly expansionary, wouldnt we have seen the largest economic boom in history over the last ten years? And would the surpluses of the Clinton years have caused a total economic meltdown? Neither of these events occurred. When the government spends a dollar it does not have, it must either borrow it or print it. The former robs the private sector of funds to invest in real capital formation; the latter ultimately causes inflation. The important question that needs answering when we discuss fixing our economy with government policy initiatives is whether or not that policy will raise the production of goods and services in the long run, or will it ultimately lead to restricting economic activity. First of all, confidence in the economic prospects for individuals and businesses must be restored. Perhaps the best way of achieving this would be for the government to stop meddling in private economic decisions. Since the government always rewards failure and punishes success, a little less of this might go a long way in restoring incentives to produce and invest. Secondly, the partisanship in Washington needs to stop. The public will become more optimistic and act accordingly if we believe our leaders have our best interests in mind rather than their own agendas.

Garry Fleming

Economic Conditions: Alice Louise Kassens

Uncertainty pertaining to the health care bill is killing the labor market. Will the individual mandate be found unconstitutional? Additionally, if the bill goes into effect, it imposes a significant tax on employers, that is binding (cannot be passed on to employees) for those employing individuals near the minimum wage. Employer responses will likely be to reduce earnings, hours and hires, thus increasing unemployment. Additionally, partisanship is problematic. Does anyone really consider McDonalds to be a small employer? Some in the government do, and thus they are given a waiver.

Alice Kassens

Volume 2, Issue1
Have an idea for Roanomics? Is there something that you would like to see us write about? Is there a poll that you would us to conduct? Let us know! roanokeecon@gmail.com

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Policy recommendations: Darshak Patel

1) I like the government to back out a little 2) Cut spending especially by calling the army back - I think they are doing that right now but the process is really slow- we are spending too much and many lives are being lost 3) Do not raise taxes. The economy is already struggling for new investments; this will just hurt us further

Policy recommendations: Economics Students

...cutting income tax...puts more money in the hands of American people and will increase consumer spending...ending outrageous regulations on businesses and lessen the 35% tax rate on corporations to less than 20%...Congress needs to finally balance the budget, keep it that way, and the United States will grow stronger and stronger every day. Greg Long Create incentives for small businesses to hire new workers. Serena Laughlin To fix the labor market, we need to decrease the uncertainty surrounding laws and taxation on corporations and individual incomes. Anonymous To put our economy back on track, the government should cut taxes on businesses, so they can hire additional workers without fear. A decreased unemployment level will increase confidence in markets and lead to economic expansion. Increased government spending on public works will instantly create thousands of jobs. If we increase taxes on the wealthy, this would help pay for the increased government expenditures. Cole Brundage, Colin Illar, Tamika Rickman ...government created jobs will help bring people back to work and will also improve public places (roads, bridges, highways, etc.). Another great idea is to provide incentives to employers who hire more employees because if we can decrease unemployment, we can certainly improve GDP. Tax cuts will also help give companies the confidence to invest more, which will increase GDP, as well. Overall, I think Obamas Job Act can really help the economy. The money used to start it will certainly be paid off by all the profit from increased GDP. So, what do I think we should do to help the economy? I think we should pass Obamas Job Act. Fiscal policy is key! Charla Henley

Greg Long

...we must stop spending more than we can produce. A few avenues in which we could save money would be on the military...we do not need to watch over our friends. They can defend themselves...Also exporting more quality goods and cutting the amount of goods we import. Anonymous

Serena Laughlin

Colin Illar

Cole Brundage

Tamika Rickman

Charla Henley

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Roanomics

Presentations
Alice Louise Kassens Virginia Economics Association, March 2011, The Effects of Clinical Depression on Labor Market Outcomes of Young Adults Shahram Amini Econometrics Camp, April 2011, Decomposition of Conditional Variance of CrossCountry Output Garry Fleming Hawaii International Conference on Business, June 2011, The Origin and Evolution of the Aggregate Supply Curve in Macro Texts Tyler Rinko `11 NCUR, March 2011, The Effect of the Euro-crisis on Exchange Rates and Interest Rates Nomin Baasandavaa `11 VAE, March 2011, The Effect of Air Pollution Exposure on US Health Gio Forte `11 VAE, March 2011, The Tiger Woods Effect: The Impact of Tiger Woods on Golf Participation and Sales

Published/Submitted/Working Papers
Alice Louise Kassens The Effect of Clinical Depression on Labor Market Outcomes (with William M. Rodgers, III) What does not kill me makes me thinner? Under review, January 2011 Do As I Say And As I Do-An Application of the Mentor Demonstration Model Under review (October 2011) Shahram Amini Comparisons of Model Averaging Techniques: Assessing Growth Determinants Under review (October 2011) Darshak Patel "Making the Leap: Timing Analysis of Transfers from Two Year Colleges to Four Year Colleges" Under review "An Exploratory Analysis of the Relationship between Student Earnings and Postsecondary Retention", (with Christopher Jepsen) Under review

Economics Spring 2011 Honors

Deans List - 4 Honors in Major - 3 ODE - 7

Spring 2011 Academic Honors

Deans List Jimmy Bradshaw Nathan Castellano Wai Paing Megan Rhodes Honors in Major Nic Wright Jorge Guzman-Correa Tyler Rinko Sara Caudle (BUAD) Justin Tuma (BUAD) ODE Inductees Jillian Foerster Christopher Kwaramba Raymond Owens Phillip Gereaux Mahmoud Thaher Michael McGeough Dustin DeMaria Athletics ODAC/Farm Bureau ScholarAthlete of the Year - Justin Tuma USILA Scholar AllAmerican Honors - Justin Tuma

Omicron Delta Epsilon (ODE) is one of the worlds largest academic honor societies. The objectives of ODE include recognizing outstanding achievements in economics & establishing closer ties between students and faculty in economics within and between colleges and universities. For info, contact Dr. Garry Fleming fleming@roanoke.edu

Volume 2, Issue 1

Page 13

Featured on the RC Economics Blog...

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FRIDAY, SEPTEMBER 23, 2011

Presidential Debate Twitter Project

Kassens Principles of Macroeconomics and Labor Economics courses again did a Twitter Project in which they watched the Presidential Debate last night, wrote a brief from the perspective of either the RNC or DNC, then discussed their briefs in groups today in class and put a Tweet together. Some great conversations were going and applications of class material were heard all over the classroom. Students in the Principles course did not like hearing the bickering going on between candidates and wished that the contenders were more specific about their plans. Students in the Labor course wondered if reducing corporate taxes to induce job creation would actually work as it Candidates prior the debate still might be cheaper to outsource jobs or substitute labor with capital (as grocery stores do with self-checkout lines.) A great way to spend the class period on a rainy Friday. In case you don't Tweet, below are their entries (that can be found at @roanokeecon) Principles of Macroeconomics Last nights debate shows voters that republicans r ready 2 make big changes 2 tax code, gov spending, immigration, & healthcare. Ongoing battle between Perry & Romney is only starting 2 heat up. Discussion of tax cuts 4 small business & middle class #gopdebate #RNC see I 2 I in repealing #Obamacare, lowering taxes, cre8ing bus friendly enviro. RNC 2 adjust energy, SS, & illegal immigration plans Same policies, different deb8. RNC plans 2 lay back as corps take control. Need a stable candidate who is confident in their stance #DNC Labor Economics Hard to believe the same corporations who moved jobs abroad will be willing to bring jobs back #realtalk #changewecabelievein GOP candidates tossed out some ideas on fixing the economy but based on the past, we are skeptical if they will work

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Economics Program
221 College Lane Salem, VA 24153 Phone: 540-375-2426 Fax: 540-375-2577 E-mail: roanokeecon@gmail.com

...Because we view economics as solidly within the liberal arts, we are committed to examining the relationship between economics and other areas of knowledge. Students will therefore find it to be an excellent complement to many other majors, including, but not limited to public policy, sociology, history, environmental policy, mathematics, biology, and business administration, as well as concentrations such as gender studies and peace and justice studies. For information about the Economics Program contact Dr. Garry Fleming (fleming@roanoke.edu) For comments or suggestions about the newsletter email roanokeecon@gmail.com Read our blog: kassensroanokeecon.blogspot.com Faculty Editor: Dr. Alice Louise Kassens Student Editor: Sara Caudle 11

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Travels with Dr. Bob

I recently returned from a two week trip to the land of sunshine, good wine, crippling taxes, and excessive government regulation. You might be thinking I was in California, but you would be wrong-I was in Italy. We started off in the Dolomites in northern Italy ( a major ski resort area), and then proceeded to Venice, Cinque Terra (on the coast), and Florence. Italy is truly a wonderful tourist destination, although it is very expensive (partially due to the weak dollar policy of our Federal Reserve). Our rental car cost about $900 for five days (expensive insurance required), gas was about $8.50 a gallon, and restaurants charged about $7 for unremarkable Italian beer (house wine was a real bargain in comparison). Behind the lovely facade of Italy that tourists love is an economic system in deep trouble. The government debt to GDP ratio is about 120%, government spending is about 50% of GDP, there has been very little growth in the "official" economy in the last decade, and strong unions have led to uncompetitive labor costs. Italians want to keep this highly developed welfare state, but they don't want to pay for it: tax evasion is a national pasttime (e.g.- I received a $50 discount on a three day hotel bill by paying in cash). The debt situation in Italy will become critical next year as large volumes of bonds mature and must be refinanced. The recent bailout plan for Greece does not bode well for Italy: the Eurozone countries have dithered and delayed all summer and fall before coming up with a suspect plan that will compensate banks for just 50% of the value of their Greek bonds. Keep in mind the Greek debt problem should be relatively easy to solve, given the size of their economy (about 2% of European Union GDP). The Italian economy is more than five times as large. Also, all seventeen of the Eurozone countries must approve any significant increase in bailout funds--they were very slow to do so in the case of Greece. Given this, I would not recommend investing in any bonds from

The Stauffers in Italty the PIIGS (Portugal, Italy, Ireland, Greece and Spain). Likewise, stay away from those California municipal bonds. Happy Travels, Dr. Bob P.S.: Thanks for all those Social Security "contributions" that are withheld from your paychecks they really help in financing these expensive trips.