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Incentive packages are popular tools for economic development. However, development projects are often considered in isolation without an analysis of opportunity costs. In this study, we use an intuitive framework for comparing projects and weigh alternate projects against North Carolina's film incentive programme. The results indicate that there are substantial differences in the economic impact of the projects we consider in this study. Our results suggest that policy decisions by governments and economic development officials should weigh a potential project against alternative uses in order to optimize the use of incentives. [ABSTRACT FROM AUTHOR]

In this teaching note, the authors use an iconic London building, the Gherkin, as a motivation to understand exchange rates, cross exchange rates, and unhedged exchange rate risk. The famous tower was constructed in the early 2000s by Swiss Re, an insurance company, and then sold to investors as part of a sale-leaseback deal in early 2007. Unfortunately, the purchase was funded by a consortium of lenders using multiple currencies and leaving owners open to exchange rate risk. While partially hedging interest payments, the owners did not hedge the loans' principal and ultimately loan-to-value limits caused the building to fall into bankruptcy despite being fully leased. Hopefully the storyline piques student interest and promotes a better understanding of a topic that frequently challenges students. [ABSTRACT FROM AUTHOR]

This article investigates the propensity for academic dishonesty by university students using the partitioning method of decision tree analysis. A set of prediction rules are presented, and conclusions are drawn. To provide context for the decision tree approach, the partition process is compared with results of more traditional probit regression models. Results of the decision tree analysis complement the probit models in terms of predictive accuracy and confirm results previously found in the literature. In particular, students' moral character--whether they believe cheating is acceptable--is found to be the most important factor in determining the propensity for academic dishonesty. [ABSTRACT FROM AUTHOR]

University students' latent attitudes toward capitalism were quantified and used to predict self-reported cheating behaviors. Results suggest that the relationship between student academic dishonesty and attitudes toward capitalism are complex. Students indicating a strong degree of risk aversion are less likely to report cheating behaviors. Students demonstrating a preference for equality over efficiency, while no more likely to be cheaters, may cheat more often. Efficiency-minded students do not appear to be more likely to cheat, but may engage in fewer instances of cheating. Implications for curriculum development in economics and business programs are discussed. [ABSTRACT FROM PUBLISHER]

The independence of central banks is an important feature of a properly functioning and stable monetary system. The structure of the Federal Reserve is designed to minimize political influence and insulate policy makers from political pressure. Nevertheless, members of the Fed’s Federal Open Market Committee are members of society and informed about public opinion, potentially opening them to political bias, even if unintentional. This article uses a Taylor rule structure to examine changes in the Fed’s reaction function to unemployment and inflation under different political administrations and chairman. Preliminary results show that the Fed is more responsive to the output gap under Republican presidential administrations and sets the Federal Funds Rate at a lower level under Republican administrations. [ABSTRACT FROM AUTHOR]