Economic Development of Urban Areas

In this dissertation I study the development of urban areas. At the aggregate level I investigate how they may be affected by climate change policies and by being designated the seat of governmental power. At the household level I study with coauthors how microfinance could improve the health of urban residents. In Chapter 1, I investigate how local employment may be affected by electricity price increases, which is a likely consequence of climate change policies. I outline how previous studies that find large, negative effects may be biased. To overcome these biases I develop a novel estimation strategy that blends border-pair regressions with the synthetic control methodology. I show the conditions for consistent estimation. Using this estimator, I find no effect of contemporaneous price changes on employment. Consistent with the longer time-frame for manufacturing decisions, I do find evidence for negative effects from perceived permanent price shocks. These estimates are much smaller than previous research has found. National capital cities are often substantially larger than other cities in their countries. In Chapter 2, I investigate whether there is a causal effect from being a capital by studying the 1960 relocation of the Brazilian capital from Rio de Janeiro to Brasília. Using a synthetic controls strategy I find that losing the capital had no significant effects on Rio de Janeiro in terms of population, employment, or gross domestic product (GDP). I find that Brasília experienced large and significant increases in population, employment, and GDP. I find evidence of large spillovers from the public to the private sector. Chapter 3 investigates how microfinance could increase the uptake of costly health goods. We study the effect of time payments (micro-loans or micro-savings) on willingness-to-pay (WTP) for a water filter among households in the slums of Dhaka, Bangladesh. We find that time payments significantly increase WTP: compared to a lump-sum up-front purchase, median WTP increases 83% with a six-month loan and 115% with a 12-month loan. We find that households are quite patient with respect to consumption of health inputs. We find evidence for the presence of credit and savings constraints.

“PROSPERING BECAUSE THAT’S ITS HISTORY”: BLACK RESILIENCE AND HONORS DEVELOPMENT IN HIGHER EDUCATION: MORGAN STATE UNIVERSITY AND THE STATE OF MARYLAND, 1867-1988

This study explores the origins and development of honors education at a Historically Black College and University (HBCU), Morgan State University, within the context of the Maryland higher education system. During the last decades, public and private institutions have invested in honors experiences for their high-ability students. These programs have become recruitment magnets while also raising institutional academic profiles, justifying additional campus resources. The history of higher education reveals simultaneous narratives such as the tension of post-desegregated Black colleges facing uncertain futures; and the progress of the rise and popularity of collegiate honors programs. Both accounts contribute to tracing seemingly parallel histories in higher education that speaks to the development of honors education at HBCUs. While the extant literature on honors development at Historically White Institutions (HWIs) of higher education has gradually emerged, our understanding of activity at HBCUs is spotty at best. One connection of these two phenomena is the development of honors programs at HBCUs. Using Morgan State University, I examine the role and purpose of honors education at a public HBCU through archival materials and oral histories. Major unexpected findings that constructed this historical narrative beyond its original scope were the impact of the 1935/6 Murray v Pearson, the first higher education desegregation case. Other emerging themes were Morgan’s decades-long efforts to resist state control of its governance, Maryland’s misuse of Morrill Act funds, and the border state’s resistance to desegregation. Also, the broader histories of Black education, racism, and Black citizenship from Dred Scott and Plessy, the 1863 Emancipation Proclamation to Brown, inform this study. As themes are threaded together, Critical Race Theory provides the framework for understanding the emerging themes. In the immediate wake of the post-desegregation era, HBCUs had to address future challenges such as purpose and mission. Competing with HWIs for high-achieving Black students was one of the unanticipated consequences of the Brown decision. Often marginalized from higher education research literature, this study will broaden the research repository of honors education by documenting HBCU contributions despite a challenging landscape.

Multi-level, Multi-stage and Stochastic Optimization Models for Energy Conservation in Buildings for Federal, State and Local Agencies

Energy Conservation Measure (ECM) project selection is made difficult given real-world constraints, limited resources to implement savings retrofits, various suppliers in the market and project financing alternatives. Many of these energy efficient retrofit projects should be viewed as a series of investments with annual returns for these traditionally risk-averse agencies. Given a list of ECMs available, federal, state and local agencies must determine how to implement projects at lowest costs. The most common methods of implementation planning are suboptimal relative to cost. Federal, state and local agencies can obtain greater returns on their energy conservation investment over traditional methods, regardless of the implementing organization. This dissertation outlines several approaches to improve the traditional energy conservations models. Any public buildings in regions with similar energy conservation goals in the United States or internationally can also benefit greatly from this research. Additionally, many private owners of buildings are under mandates to conserve energy e.g., Local Law 85 of the New York City Energy Conservation Code requires any building, public or private, to meet the most current energy code for any alteration or renovation. Thus, both public and private stakeholders can benefit from this research. The research in this dissertation advances and presents models that decision-makers can use to optimize the selection of ECM projects with respect to the total cost of implementation. A practical application of a two-level mathematical program with equilibrium constraints (MPEC) improves the current best practice for agencies concerned with making the most cost-effective selection leveraging energy services companies or utilities. The two-level model maximizes savings to the agency and profit to the energy services companies (Chapter 2). An additional model presented leverages a single congressional appropriation to implement ECM projects (Chapter 3). Returns from implemented ECM projects are used to fund additional ECM projects. In these cases, fluctuations in energy costs and uncertainty in the estimated savings severely influence ECM project selection and the amount of the appropriation requested. A risk aversion method proposed imposes a minimum on the number of “of projects completed in each stage. A comparative method using Conditional Value at Risk is analyzed. Time consistency was addressed in this chapter. This work demonstrates how a risk-based, stochastic, multi-stage model with binary decision variables at each stage provides a much more accurate estimate for planning than the agency’s traditional approach and deterministic models. Finally, in Chapter 4, a rolling-horizon model allows for subadditivity and superadditivity of the energy savings to simulate interactive effects between ECM projects. The approach makes use of inequalities (McCormick, 1976) to re-express constraints that involve the product of binary variables with an exact linearization (related to the convex hull of those constraints). This model additionally shows the benefits of learning between stages while remaining consistent with the single congressional appropriations framework.