Three essays on the economics of defense contracting, output and income inequality

This dissertation analyzes both the economics of the defense contracting process and the impact of total dollar obligations on the economies of U.S. states. Using various econometric techniques, I will estimate relationships across individual contracts, state level output, and income inequality. I will achieve this primarily through the use of a dataset on individual contract obligations. ^ The first essay will catalog the distribution of contracts and isolate aspects of the process that contribute to contract dollar obligations. Accordingly, this study describes several characteristics about individual defense contracts, from 1966-2006: (i) the distribution of contract dollar obligations is extremely rightward skewed, (ii) contracts are unevenly distributed in a geographic sense across the United States, (iii) increased duration of a contract by 10 percent is associated with an increase in costs by 4 percent, (iv) competition does not seem to affect dollar obligations in a substantial way, (v) contract pre-payment financing increases the obligation of contracts from anywhere from 62 to 380 percent over non-financed contracts. ^ The second essay will turn to an aggregate focus, and look the impact of defense spending on state economic output. The analysis in chapter two attempts to estimate the state level fiscal multiplier, deploying Difference-in-Differences estimation as an attempt to filter out potential endogeneity bias. Interstate variation in procurement spending facilitates utilization of a natural experiment scenario, focusing on the spike in relative spending in 1982. The state level relative multiplier estimate here is 1.19, and captures the short run, impact effect of the 1982 spending spike. ^ Finally I will look at the relationship between defense contracting and income inequality. Military spending has typically been observed to have a negative relationship with income inequality. The third chapter examines the existence of this relationship, combining data on defense procurement with data on income inequality at the state level, in a longitudinal analysis across the United States. While the estimates do not suggest a significant relationship exists for the income share of the top ten percent of households, there is a significant positive relationship for the income share of top one percent households for an increase in defense procurement.^

Three Essays on the Economics of Defense Contracting, Output and Income Inequality

This dissertation analyzes both the economics of the defense contracting process and the impact of total dollar obligations on the economies of U.S. states. Using various econometric techniques, I will estimate relationships across individual contracts, state level output, and income inequality. I will achieve this primarily through the use of a dataset on individual contract obligations. The first essay will catalog the distribution of contracts and isolate aspects of the process that contribute to contract dollar obligations. Accordingly, this study describes several characteristics about individual defense contracts, from 1966-2006: (i) the distribution of contract dollar obligations is extremely rightward skewed, (ii) contracts are unevenly distributed in a geographic sense across the United States, (iii) increased duration of a contract by 10 percent is associated with an increase in costs by 4 percent, (iv) competition does not seem to affect dollar obligations in a substantial way, (v) contract pre-payment financing increases the obligation of contracts from anywhere from 62 to 380 percent over non-financed contracts. The second essay will turn to an aggregate focus, and look the impact of defense spending on state economic output. The analysis in chapter two attempts to estimate the state level fiscal multiplier, deploying Difference-in-Differences estimation as an attempt to filter out potential endogeneity bias. Interstate variation in procurement spending facilitates utilization of a natural experiment scenario, focusing on the spike in relative spending in 1982. The state level relative multiplier estimate here is 1.19, and captures the short run, impact effect of the 1982 spending spike. Finally I will look at the relationship between defense contracting and income inequality. Military spending has typically been observed to have a negative relationship with income inequality. The third chapter examines the existence of this relationship, combining data on defense procurement with data on income inequality at the state level, in a longitudinal analysis across the United States. While the estimates do not suggest a significant relationship exists for the income share of the top ten percent of households, there is a significant positive relationship for the income share of top one percent households for an increase in defense procurement.

Model of Service Quality: Customer Loyalty for Hotels

The authors investigate the relationship between loyalty and perceived service quality of hotel customers and discus managerial implications to develop strategies to enhance loyalty of hotel customers. A survey was conducted among customers in the San Francisco Bay Area. Results indicate that customer loyalty is dependent on perceived service quality which is observed in terms of timelines, facilities, and ambience.

Restaurant Customer Loyalty: A Qualitative Assessment of Niche Brands

Using the Loyalty Triangle framework developed by Lewis and Shoemaker (1999) and focus group methodology, the study examined how a niche brand restaurant best achieved long-term loyalty. Results indicate that customers are loyal to a niche brand because of the unique characteristics inherent to the brand. Customers have higher perceptions of such qualities as the presentation of service, consistency of product, and the benefits offered by the loyalty program than characteristics that are shared across all brands. Niche brand restaurants can be more effective in developing these qualities to promote customer loyalty.

The Influence of Social Responsibility Image Relative to Product and Service Quality on Brand Loyalty: An Exploratory Study of Quick-service Restaurants

Social responsibility (SR) is becoming an increasingly significant component of many firms’ strategic planning decisions. Research has shown that consumers tend to reward socially responsible behavior. However, there has been little testing of the construct in the hospitality industry. Additionally, when other important variables that influence consumer brand loyalty are considered, will brand social responsibility image (BSRI) still play a significant role? This study investigates the importance of SR and its impact on brand loyalty, relative to product quality and service quality in the quick-service restaurant industry. The authors were also interested to learn whether BSRI impacted consumers' image of product and service quality. It was found that BSRI had a positive impact on brand loyalty, product quality, and service quality. However, product quality was a significantly stronger predictor of brand loyalty than BSRI. Where the vast majority of studies of SR have utilized scenario analysis of hypothetical firms, this study utilizes consumers' perceptions of a real-world firm.

Variables affecting government debt: A comparison of certificates of participation, tax -exempt revenue bonds and tax -exempt general obligation bonds

This dissertation analyzed and compared variables affecting interest rate and yield of certificates of participation, tax-exempt revenue bonds and tax-exempt general obligation bonds. The study employed qualitative and quantitative analysis methods. ^ Qualitative research methods included surveys, interviews and focus groups. The survey solicited debt load information from 67 Florida school districts (21 responded) and addressed the question which districts used certificates of participation and why. Eight individuals with experience dealing with all three debt instruments were interviewed. A follow-up focus group of six school district financial officers gathered additional data. Results from the qualitative methods revealed school districts used certificates of participation based on millage authority amount available relative to overall tax base. Also identified was the belief of a significant difference in certificates of participation costs and the other two debt instrument types. ^ The study's quantitative methods analyzed 1998 and 1999 initial issues of Moody's AAA rated certificates of participation, tax-exempt revenue bonds and tax-exempt general obligation bonds. Through an analysis of covariance (ANCOVA), the study examined interest rates and yields while controlling for the covariates of credit enhancement, issue size, and maturity date. The analysis identified no significant difference between interest rates of certificates of participation and tax-exempt general obligation bonds (p < 0.05). There was a significant difference between interest rates of tax-exempt revenue bonds and tax-exempt general obligation bonds. This study discerned no significant difference between yield on certificates of participation and tax-exempt general obligation bonds. It identified a difference in yield between both certificates of participation and tax-exempt general obligation bonds compared with tax-exempt revenue bonds. ^ The study found COPs to have lesser overall costs than RV bonds. COPs also have a quicker entry into the market resulting in construction cost savings. The study found policy implications such as investment portfolio limitations and public choice issues about using COPs as a mechanism to grow government. ^

Longitudinal effects of family factors on alcohol use and alcohol-related problems among males from pre-adolescence to adulthood

The goal of this study was to examine the longitudinal effects of five family factors on alcohol use among adolescent males. The family factors included familism (family pride, loyalty, and cohesion), parent derogation (being put down by parents), parent/child communication, family alcohol problems and family drug problems. The study focused on the effects of the family factors reported by a sample of 451 White-non-Hispanic and African American males during early and mid-adolescence on (1) the intensity of alcohol use in mid-adolescence, and (2) the number of problems associated with alcohol use during the transition to young adulthood. The study also explored racial differences in the effects of the family factors. The data for this study were derived from a two-phase longitudinal epidemiologic cohort study of male and female adolescents enrolled in middle schools in Miami, FL. Data were collected at four points between 1990 and 2001. Linear and logistical regressions were used to analyze the effects of the family variables on the dependent variables. ^ The results of the analyses indicated that all of the family variables except family drug problems were statistically significant predictors of the level of alcohol use and alcohol-related problems. Familism had a moderate influence on both of the dependent variables at all data points, while parent derogation, parent/child communication and family alcohol problems were weak predictors. While the family factors varied by race, their impact on the dependent variables did not vary substantially. ^ This study had methodological shortcomings related to measurement and design that may have contributed to the weak influence of the variables. Future studies should explore possible mediating effects of these variables, and should employ more sensitive measures that are culturally appropriate. The results suggest that, since early family factors have long-term effects on children's substance-using behaviors, the family environment should be addressed in prevention and intervention efforts. ^

The acculturation of middle income Hispanic households

Research on the consumer behavior of the Hispanic population has recently attracted the attention of marketing practitioners as well as researchers. This study's purpose was to develop a model and scales to examine the acculturation process of Hispanic consumers with income levels of $35,000 and above, and its effects on their consumer behavior. The proposed model defined acculturation as a bilinear and multidimensional change process, measuring consumers' selective change process in four dimensions: language preference, Hispanic identification, American identification, and familism. A national sample of 653 consumers was analyzed. The scales developed for testing the model showed good to high internal consistency and adequate concurrent validity. According to the results, consumers' contact with Hispanic and Anglo acculturation agents generates change or reinforces consumers' language preferences. Language preference fully mediates the effects of the agents on consumers' American identification and familism; however, the effects of the acculturation agents on Hispanic identification are only partially mediated by individuals' language preference change. It was proposed that the acculturation process would have an effect on consumers' brand loyalty, attitudes towards high quality and prestigious brands, purchase frequency, and savings allocation for their children. Given the lack of significant differences between Hispanic and Anglo consumers and among Hispanic generations, only savings allocation for children's future was studied intensively. According to these results, Hispanic consumers' savings for their children is affected by consumers' language preference through their ethnic identification and familism. No moderating effects were found for consumers' gender, age, and country of origin, suggesting that individual differences do not affect consumers' acculturation process. Additionally, the effects of familism were tested among ethnic groups. The results suggest not only that familism discriminates among Hispanic and Anglo consumers, but also is a significant predictor of consumers' brand loyalty, brand quality attitudes, and savings allocation. Three acculturation segments were obtained through cluster analysis: bicultural, high acculturation, and low acculturation groups, supporting the biculturalism proposition. ^

Perceptions of underprepared community college students regarding their educational achievement

The purpose of this study was to understand the perceptions of underprepared college students who had participated in learning communities and who persisted to complete developmental classes and earned at least 30 college-level credit hours to graduate and the perceptions of their peers who had dropped out of college. The theories posed by Tinto, Astin, and Freire formed the framework for this case study. The 22 participants were graduates or transfer students now attending a public university, currently-enrolled sophomores, and students no longer enrolled at the time of the study. Semi-structured individual interviews and a group interview provided narrative data which were transcribed, coded, and analyzed to gain insights into the experiences and perspectives of the participants. The group interview provided a form of member checking to increase accuracy in interpreting themes. A peer reviewer provided feedback on the researcher’s data analysis procedures. The analysis yielded four themes and 14 sub-themes which captured the essence of the participants’ experiences. The pre-college characteristics/traits theme described the students’ internal values and attributes acquired prior to college. The external college support/community influence theme described the encouragement to attend college the students received from family, friends, and high school teachers. The social involvement theme described the students’ participation in campus activities and their interactions with other members of the campus. The academic integration theme described students’ use of campus resources and their contacts with the faculty. The persisters reported strong family and peer support, a sense of responsibility, appreciation for dedicated and caring faculty, and a belief that an education can be a liberatory means to achieve their goals. The non-persisters did not report having the same sense of purpose, goal orientation, determination, obligation to meet family expectations, peer support, campus involvement, positive faculty experiences, and time management skills. The researcher offers an emerging model for understanding factors associated with persistence and three recommendations for enhancing the academic experience of underprepared college students: (a) include a critical pedagogy perspective in coursework where possible, (b) integrate co-curricular activities with the academic disciplines, and (c) increase student-faculty interaction.

What makes online grocers work? A case study analysis of factors contributing to online grocery store profitability

This research examined the factors contributing to the performance of online grocers prior to, and following, the 2000 dot.com collapse. The primary goals were to assess the relationship between a company’s business model(s) and its performance in the online grocery channel and to determine if there were other company and/or market related factors that could account for company performance. ^ To assess the primary goals, a case based theory building process was utilized. A three-way cross-case analysis comprising Peapod, GroceryWorks, and Tesco examined the common profit components, the structural category (e.g., pure-play, partnership, and hybrid) profit components, and the idiosyncratic profit components related to each specific company. ^ Based on the analysis, it was determined that online grocery store business models could be represented at three distinct, but hierarchically, related levels. The first level was termed the core model and represented the basic profit structure that all online grocers needed in order to conduct operations. The next model level was termed the structural model and represented the profit structure associated with the specific business model configuration (i.e., pure-play, partnership, hybrid). The last model level was termed the augmented model and represented the company’s business model when idiosyncratic profit components were included. In relation to the five company related factors, scalability, rate of expansion, and the automation level were potential candidates for helping to explain online grocer performance. In addition, all the market structure related factors were deemed possible candidates for helping to explain online grocer performance. ^ The study concluded by positing an alternative hypothesis concerning the performance of online grocers. Prior to this study, the prevailing wisdom was that the business models were the primary cause of online grocer performance. However, based on the core model analysis, it was hypothesized that the customer relationship activities (i.e., advertising, promotions, and loyalty program tie-ins) were the real drivers of online grocer performance. ^

Secondary school inclusion rates: The relationship between the training and beliefs of school site principals and the implementation of inclusion

Programs require strong support and guidance from those in leadership positions to ensure proper implementation (Fullen, 2001). Consequently, school site principals must rely on the training they have received to support them in making appropriate decisions. It is the school site principal’s leadership that is pivotal in the success of students with disabilities (DiPaola & Walther-Thomas, 2003; Monteith, 2000). In fact, the principal has a moral obligation to provide an environment that supports social justice in schools (Grogan & Andrews, 2002). The inclusion of students with disabilities does just that—it ensures that these students are not segregated to a “separate but equal” education. This study utilized a participant survey to collect data on principals’ beliefs and training in special education. This information was compared to the percentage of time students with disabilities spent with their non-disabled peers in the principals’ respective schools. An analysis was conducted to identify if a linear relationship exists between the selected variables and the inclusion percentages. Open-ended questions were included in the original survey which allowed for a thematic analysis of the responses. These responses were utilized to allow participants to further express their thoughts on the identified variables. Results indicated that there were no statistically significant relationships identified between the beliefs and training of secondary school site principals and the percentage of time that their students in special education spend with their non-disabled peers. Although the original research questions were not supported, further post hoc analysis indicated that the results obtained did support that the principals believed inclusion had a social benefit to students. Additional investigation into the academic benefits of inclusion is still needed. In addition, principals who indicated that they had some type of training in special education indicated a higher percentage that the individual student should be the focal point when making placement decisions. These results support the need for further research in the area of principal preparation programs and their relationships to the daily practice of school site principals.

The moderate voice of John Sherman and the Republican agenda 1855-1898

Republican John Sherman, United States Congressman, Senator, Treasury Secretary, and Secretary of State had a political career of major importance from 1855 to 1898, yet there have been only casual references by historians and only two biographies of him, with the most recent published in 1902. From a strong Whig Party background, he was first elected to the United States House of Representatives in 1854; switching to the Republicans that same year. Then elevated to the Senate in 1861, he served in that body throughout the Civil War and Reconstruction when he was the most important voice of party unity and moderation. In 1877, the new President Rutherford Hayes appointed Sherman Secretary of the Treasury. He returned to the Senate after the Hayes administration where he sat for the following 15 years. In this particularly notable period, he not only led the upper house, but he engineered more bills in Congress which bore his name than any other member of either house. These included the critically important Sherman Silver Purchase Act, the Sherman Anti-Trust Act and Sherman Inter-State Commerce Act. In 1897 he left the Senate finally when William McKinley appointed him Secretary of State. ^ Through this long, distinguished career, Sherman was involved in all the important legislation that brought the country through the Civil War and Reconstruction and into the post-war world of the Gilded Age of rapid industrialization, and urban growth, Politically, he never strayed far from the nationalistic and economic principles of the Whig Party, and brought both these values to bear in the Republican Party that dominated American political life from 1860 to 1900. Similarly, party loyalty and loyalty to the President always characterized his service. He was indeed, an exemplar of political and statesmanship. ^ While research for this dissertation included review of both journal and monographic literature, its basis lies more critically in primary research in unpublished archival material in repositories from Maine to Ohio, in particular the Library of Congress. ^

Understanding Golf Country Club Members’ Loyalty: Factors Affecting Membership Renewal Decisions

Many private country clubs across the United States have experienced a declining or flat membership and smaller waitlists of members wanting to join. The objective of this study was to investigate whether member involvement, service quality, and perceived value, influence member satisfaction and intention to renew membership for members of private country clubs. An online survey instrument customized for the country club industry was distributed to members of two country clubs in northeast Ohio. Results indicate that involvement level of members and perceived value impact country club members’ satisfaction and intention to renew their membership. Managerial implications are discussed.

Determinants of Mid-scale Hotel Brand Equity

The traditional brand management in the hotel industry is facing a great challenge as numerous brands provide many choices to hotel guests. In such competitive environments, hotel firms realize that capitalizing on one of the most important assests they own- the brand- is critical to achieve a premier growth goal not only rapidly but also in a cost- effective way. THe purpose of this study is to examine the determinants of cutsomer-based hotel brand equity for the mid-priced U.S. lodging segment by assessing the impacts of four-widely accepted brand equity dimensions: brand awareness, brand associations, percieved quality and customer loyalty. 277 travelers participated in this study at the airport in a Midwestern city. Perceived quality, brand loyalty, brand associations were found to be the core components of brand equity, while brand awareness, a seemingly important source of brand equity, did not exert a significant influence on building brand equity of mid-priced hotels. The result of this study sheds insight about how to create, manage, and evaluate a distinctive and successful hotel brand.

Customer Perception of Drive-Thru Service

The rapid growth of off-premise dining and, consequently, drive- thru service, presents the challenge of building customer loyalty in a highly competitive marketplace. In this study, customer perceptions of drive-thru service associated with quick service restaurants were examined. Results suggest that service time appears to differ among quick service restaurants, even those within the same chain. Employee courtesy was rated positively at all restaurants, as was food quality. The implications of these results for restaurateurs who offer drive-thru service are discussed.