Research Papers
Wright, J.T. and Allen, M.T. 2018. "Evacuation Routes, Gasoline, and Hurricane Irma: Evidence of Price Gouging?"
Abstract: In September of 2017, Hurricane Irma made landfall in Southwest Florida and continued on a northerly path through both Florida and Georgia as a major storm before dissipating over Tennessee. Many residents and visitors evacuated the region by heading north. The governors of both Florida and Georgia declared States of Emergency (SOE), triggering the states’ anti-price gouging laws for products related to disaster preparation and recovery, including gasoline. Although demand for gasoline increased as people sought fuel for electricity generators and vehicles, gasoline prices were not free to adjust to the change in demand due to anti-price gouging laws after the declarations of SOE.
This study considers whether gasoline prices reflect demand increases around the time of the storm event, particularly along interstate highways (I-95 and I-75) that serve as the primary evacuation routes from south to north. Results of this analysis suggest no strong evidence of price gouging as defined by Florida and Georgia laws, but they strongly indicate that gasoline markets in both Georgia and Florida adjusted to Hurricane Irma’s approach up to 12 days in advance of the Florida SOE. Because market forces adjust equilibrium price well in advance of a declaration of SOE, anti-price gouging laws appear to be inconsequential.
This study considers whether gasoline prices reflect demand increases around the time of the storm event, particularly along interstate highways (I-95 and I-75) that serve as the primary evacuation routes from south to north. Results of this analysis suggest no strong evidence of price gouging as defined by Florida and Georgia laws, but they strongly indicate that gasoline markets in both Georgia and Florida adjusted to Hurricane Irma’s approach up to 12 days in advance of the Florida SOE. Because market forces adjust equilibrium price well in advance of a declaration of SOE, anti-price gouging laws appear to be inconsequential.
Abstract: This study examines the question: does government debt affect economic growth? Theory suggests that countries may turn to money growth and inflation to manage debt levels, and that this in turn decreases growth in GDP. The results of this research show that, controlling for endogeneity and panel data effects, only low income countries use inflation and money growth to manage debt, while higher income countries do not. The results suggest that low income countries may use money growth and inflation as an alternative to taxation, and simultaneously borrow to finance government expenditures. Additionally, this study indicates that there is no statistically significant relationship between the level of debt/GDP and subsequent growth in GDP. However, in the short-run of five years there is some evidence of a negative relationship between the change of debt/GDP and growth in GDP in the following years, but the size of the impact is relatively small.
Wright, J.T. 2017. "The Correlation between Political Systems and Public Debt Accumulation."
Working Papers
Wright, J.T. 2018. "Warranties, Profit, and Risk Aversion."
Wright, J.T. 2018. "Insider Trading: Inevitable Market Failure, or Better Markets?"