Research

Published: September, 2017
David Bradshaw

Dr. Bradshaw explores today’s political, social and moral divides with reference to the works of John Locke and Jean-Jacques Rousseau. Finding that behind these ideas are destructive forms of thinking and feeling, Bradshaw argues that to unify requires returning to the classical disciplines imbedded in Plato, Aristotle and the Christian ideal of educating the passions.

Published: September, 2017
David Barrus, Frank Scott

Kentucky spent over $590 million between 2005 and 2007 on asphalt paving projects. Barrus and Scott analyzed companies’ choices to bid and how much to bid in that period to explore the affect that varying levels of competition had on the price the Commonwealth paid. With a majority of contracts attracting only one bidder these projects cost the Commonwealth between 9.3% and 16.5% more than projects with additional bidders.

Published: August, 2017
Pinky Rusli, Xinlei Zhao, David A. Ziebart

As technology becomes more complex, business transactions and accounting standards both become more complex. But do accounting standards need to match the complexity of business transactions? Rusli, Zhao and Ziebart find that accounting standards can be simpler if they rely on market-established prices of relevant assets.

Published: July, 2017
James S. Fackler, Randall E. Parker

The Great Depression may have been preventable. Using a formalized policy rule instead of relying on the Federal Reserve’s discretionary policy decisions, may have prevented the country’s worst economic crisis. Fackler and Parker analyze what could have happened if the country had adopted Irving Fisher’s recommendations in 1930.

Published: July, 2017
Felipe Thomaz, Leonce Bargeron, John Hulland, Chad Zutter

How do corporations—who balance making sales today and planning for the future—respond to regulatory change? Thomaz, Bargeron, Hulland, and Zutter’s study provides evidence that legislative changes, such as Sarbanes-Oxley, can significantly affect a corporation’s priorities. The passage of Sarbanes-Oxley incentivized U.S. corporations to focus more on reaping the immediate gains from marketing rather than investment in research and development.

Published: July, 2017
Christopher P. Clifford, Jesse A. Ellis, William C. Gerken

Why do hedge fund investors feel confident that their money is in good hands despite lax government regulation? Reputation. Clifford, Ellis, and Gerken’s research find strong, market-based incentives for fund managers to hire reputable directors to monitor their funds. And while managers are looking for reputable directors, directors are looking for high quality funds to work for—creating mutual interests for close monitoring and honest dealing.

Published: June, 2017
Michael W. Faulkender, Kristine W. Hankins, Mitchell A. Petersen

Does the U.S. tax code push corporations to save more cash abroad? While the desire to fund future investment encourages domestic corporate savings, lower international tax rates encourage U.S. corporations—especially those with intensive research and development programs—to save larger amounts of cash abroad, according to this research by Faulkender, Hankins, and Petersen.

Published: June, 2017
Aaron Yelowitz

Dr. Yelowitz’s research explores the unintended consequences and individual incentives that arise when the government sets up health insurance markets outside of the free enterprise system. Following the Affordable Care Act expansion, the integrity of the Kentucky Medicaid program may be at risk. This first look finds that 38 percent of Kentucky’s new Medicaid enrollees were not eligible for the program in 2014, according to data from the American Community Survey.