Brown Bag Seminar Series/Alumni Corner

Winter 2021

Tuesday February 16, 2021 at noon

Dr. James Saunoris

Associate Professor, Eastern Michigan University

"Is the shadow economy procyclical or countercyclical over the business cycle? International evidence"

Abstract: Using a large panel of countries observed from 1991 to 2017, this paper examines whether the economy is procyclical or countercyclical over the business cycle. Specifically, we uniquely consider the influence of business cycle expansions (a rise in GDP per capita away from its long-term trend) and business cycle recessions (a decline in GDP per capita away from its long-term trend) on the prevalence of the underground sector, measured as the growth rate of per capita real shadow economy. The results show that the shadow sector exhibits countercyclical behavior over the business cycle. Moreover, we find that the shadow economy is more responsive to business cycle expansions than recessions. These findings are consistent with the underground sector functioning as an economic buffer to absorb the over or under capacity of the official sector, and, thus, have important policy implications especially related to the current pandemic that precipitated a worldwide recession. Our findings withstand various robustness checks.

Registration is in the following link: Zoom

Tuesday March 2, 2021 at noon

Dr. Edmond Berisha*

Assistant Professor, Montclair State University

"Monetary Policy Shocks and Income Inequality: Does it matter where you stand in income distribution?"

Abstract: Analyzing distributional consequences of monetary policy using a single numerical index fails to capture responses of income disparity across different subsets within the income distribution. In this study, we initially emphasize the relevance of within-and between group inequalities in explaining total income inequality in US. Then, we document that the impact of monetary policy shocks is not the same across the income groups and the impact is mainly concentrated at the upper end of income distribution. Results suggest that contractionary monetary policy narrows income disparity at the upper end of income distribution and widens income disparity between the bottom 90% and top 10% income earners.

*Alumni Corner event

Registration is in the following link: Zoom

Tuesday April 6, 2021 at noon

Dr. Andy (Young Han) KIM

Associate Professor, SKKU Business School

"The Impact of Terrorist Attacks on CEO Turnover"

Threat of dismissal is an implicit incentive to the CEO and it should be sensitive to firm performance when signal to noise ratio is high. Terrorist attacks are exogenous shock to firm performance that increases noise, which provides a natural experiment to test whether the board filters out the noise by lowering the turnover performance sensitivity. Using the Execucomp data from 1992 to 2010 and UMD Terrorist attack data, we find supporting evidence for our hypothesis. In addition, we find that the reduction of performance sensitivity is more salient for the CEOs with stronger labor market mobility.

Registration is in the following link: Zoom