Subject Area

Economics

Abstract

This dissertation contributes to three interconnected areas of economic research: microeconomics, behavioral economics, and urban economics. Each chapter examines how individual decision-making processes may produce more pronounced economic patterns, while highlighting the role of psychological factors and spatial considerations in shaping outcomes. Chapter 1 studies the causes and dynamics of segregation in US neighborhoods. A conditional instrumental variables estimator allows for unbiased estimation of preferences for past neighborhood minority shares by addressing endogeneity concerns present in my theoretical model. I use estimated preference parameters to simulate neighborhood population dynamics for Texas. I regress measures of racial animus and xenophobia on estimated preference parameters for every US state. Within-group preferences are identified for both Whites and Minorities for four working age population cohorts. These preferences can partially be explained by racial animus and xenophobia. The results of my model predict a worsening of segregation trends driven by discrimination. These findings are robust to socioeconomic controls and county fixed effect estimations. Chapter 2 investigates hurdle rate contracts, risk taking, and search behavior. Entrepreneurial risk taking is well documented, despite the classic notion that individuals are risk-averse. Typical behavioral explanations for this are unsatisfactory, as entrepreneurs often risk investors’ funds, not their own. Venture capital firms investing their funds into entrepreneurs often use hurdle-rate contracts to pay managers. We conduct a laboratory experiment to evaluate these hurdle-rate contracts and their role in promoting risk taking and search by managers. We find that contracts with high hurdle-rates may be harmful to the risk exposure and profits of investors. Conversely, moderately set hurdle rates may improve a manager’s search behavior and choices. Our results contribute to the literature’s understanding of the entrepreneurial risk taking puzzle, and provide guidance for venture capital firms using hurdle-rate contracts. Chapter 3 is a study of language in referee reports written about Economics manuscripts. Data on letters from Economic Inquiry provide a rich setting to study the role of language in editorial decisions, and test for gender differences in how language is used. The editorial data is bolstered by demographic variables produced by a large language model. Text analysis allows for a study of the intensity of language used in referee reports. We observe referee recommendation and the ultimate editorial publication decision. Results point to significant communication differences between genders, with females speaking more objectively. Furthermore, female’s referee reports recommendations carry more weight in editorial decisions. This study contributes to our understanding of how language relates to career outcomes. These three chapters collectively examine how social dynamics, corporate contracts, and communication patterns shape economic outcomes across different domains. Chapter 1 reveals how discriminatory preferences drive neighborhood segregation patterns, while Chapter 2 demonstrates how hurdle rate contracts influence the risk-taking behavior of venture capital fund managers. Chapter 3 studies professional communication, showing language differences between genders and gaps in recommendation outcomes. Together, these studies illuminate ways social preferences, institutional structures like compensation contracts, and communication styles can generate adverse economic outcomes, offering insights into mechanisms that operate at the neighborhood, firm, and professional levels.

Degree Date

Summer 8-5-2025

Document Type

Dissertation

Degree Name

Ph.D.

Department

Economics

Advisor

Daniel Millimet

Second Advisor

Nathaniel Pattison

Third Advisor

Wookun Kim

Number of Pages

110

Format

pdf

Creative Commons License

Creative Commons Attribution-Noncommercial 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial 4.0 License

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