Doctoral Dissertations
Date of Award
5-2024
Degree Type
Dissertation
Degree Name
Doctor of Philosophy
Major
Economics
Major Professor
Donald J. Bruce
Committee Members
Matthew C. Harris, Celeste K. Carruthers, Luke P. Rodgers
Abstract
This dissertation consists of three essays in public economics and the political economy of the public sector. The document contributes empirical evidence on the impact of public policies on households, firms, and government. This first essay revisits the evidence on the intergenerational effects of the earned income tax credit (EITC) on the adult income of individuals who received the tax credit during childhood. The empirical strategy exploits formulaic changes localized across socioeconomic status in the tax schedule, and finds that tax credit transfers during early childhood increase adult income between 1.7 and 2.7 percent per \$1,000. Furthermore, the paper links the intergenerational impact of the tax credit with maternal labor supply, arguing that the effect is driven by children of mothers working the fewest hours. The second essay addresses the association between the EITC and employment, wages, and establishments using establishment surveys. The empirical strategy leverages differences in state roll-out and differences in industry and occupational exposure. The results point that the EITC is related with a transitory decrease in wages between 2 and 8 percent, but there is no discernible impact on employment and the number of establishments. The third chapter is a collaboration with Eunsik Chang and Matthew Harris. The paper studies the relationship between police departments acquiring military hardware and the failure to disclose the homicide of civilians to the federal government. We examine the timing of non-disclosed deaths and the acquisition of military hardware, and find evidence supporting moral hazard. There is also suggestive evidence of adverse selection among agencies. These results call into question the interpretation of previous results, and allow me to conclude that the federal government has failed to monitor the local law enforcement agencies to whom it gave lethal capabilities.
Recommended Citation
Guerrero, Diego A., "Essays on the Economics of Federal Programs. " PhD diss., University of Tennessee, 2024.
https://trace.tennessee.edu/utk_graddiss/10121
Included in
Income Distribution Commons, Labor Economics Commons, Political Economy Commons, Public Economics Commons