Hemley, David D.

This thesis emphasizes and evaluates the effect of different
income specifications, absolute, relative and permanent, in the
various stochastic equations comprising a macroeconomic model. Multiple least squares regression is employed to estimate the stochastic equations; and a dynamic multiplier simulation program evaluates the stability and calculates the impact and interim dynamic multipliers of each resultant model. The results point to an absolute income specification with the quickest response to fiscal and monetary policy. In addition, there are inherent specification problems as enlightened by review of the size of the total impact multipliers.

This study deals with development, estimation, and application
of a constrained welfare maximization model to the
counties of the state of Florida. This model was suggested
by James M. Henderson and is developed from microeconomic
concepts. A survey of the literature concerning public
expenditure begins the study. This is proceeded by the
derivation of the regression equations which are derived
from the concept of constrained welfare maximization.
Estimation of the model involves aggregation into metropolitan
counties and non-metropolitan counties of Florida
county data and the subsequent categorization of counties.
Empirical estimation of the desired coefficient enables the
exumination of the involved elasticities and the endogenous
variable response to changes in the exogenous variables.

Alternative models to explain the variability in income differentials.
between Black males and White males over thirty-two
Standard Metropolitan Statistical Areas (SMSAs) were estimated
by ordinary least squares using cross-sectional data
for each of three points in time - 1950, 1960, and 1970. Two
models were tested for each time period . The Becker-type
model used a Black-White male median income ratio as a dependent
variable with age, education, three occupational mix
variables, and current population as the independent variables.
The second model used the same variables with the
exception that current population was replaced by population
lagged ten years. All variables were in Black-White ratio
form. The results are of interest to the student of the
economics of discrimination, since the methodology can be
applied to the examination and comparison between any two
categories of people.