Essays in applied microeconomics [electronic resource]

This dissertation consists of three chapters that underscore the importance of economic analysis in constructing effective public policy. Each study highlights the difficulty of identifying the effectiveness of public policy interventions, as well as the benefits that can come from a deeper understanding of these issues. My first two studies focus on policies affecting smog-forming air pollution from motor vehicles, while the third studies the relationship between the number of voting machines provided and the number of people who vote in an election. Multiple government policies aim to improve air quality with the main goal of improving public health. However, laws may require regulators to improve air quality to an extent not justified given the costs of attainment, and regulations may not achieve their intended benefits. My first chapter examines one policy aimed at improving air quality: a gasoline chemical content regulation forcing a switch to Phase 2 California Reformulated Gasoline (CARB) in 1996. I ask whether the policy had benefits greater than costs, both when it was introduced and today. Using before and after data from California's vehicle inspection Smog Check Program, I find that CARB reduced vehicle exhaust emissions of volatile organic compounds (VOCs), a primary target, by about 14% in its first year. My high-end valuation of this reduction is $1.6 billion, mainly from reduced human mortality. This benefit is comparable to my estimate of CARB's cost to consumers, caused by its increase in gasoline prices and lower fuel economy. Including CARB's reductions in other pollutants suggests that its benefits exceeded its costs in 1996. However, other policies, particularly emission standards for new vehicles, also reduce vehicle emissions, which may lessen the benefit of CARB over time. I extrapolate the benefit of CARB's exhaust VOC reductions to 2009 using 2009 inspection data, and find the benefit decreases substantially. Even counting CARB's reductions in other pollutants, CARB's costs in 2009 likely exceed its benefits compared to gasoline meeting only Federal standards. These findings point to the importance of considering the dynamic effects of related policies in evaluating a given policy. My second chapter asks whether vehicle inspection and maintenance programs aimed at reducing pollution have substantial indirect benefits from causing owners to retire their failing vehicles. I find evidence of benefits, but small ones, which suggests that evaluating these programs based on direct benefits from vehicle maintenance is reasonable. My third chapter reconsiders how the number of voting machines is related to the number of eligible voters who cast ballots, using data from the 2008 Presidential election. For the counties in Pennsylvania and Virginia that primarily allocated voting machines as a function of the number of registered voters, we compare turnout in precincts just above and precincts just below the cutoff for receiving an additional voting machine. We find that an additional voting machine is associated with higher turnout, though the results are statistically insignificant in many specifications. The magnitude of this effect is smaller than in past studies where causal interpretations are harder to draw.

Keywords: Business.
Advisor: Reiss Peter C. (Peter Clemens) primary advisor. Thesis advisor
Sorensen Alan T. (Alan Tad)
Yurukoglu Ali advisor. Thesis advisor