Collaborative Research


regional science coverAnderson, Soren (‘01) and Sarah E. West, "Open Space, Residential Property Values, and Spatial Context," Regional Science and Urban Economics 36 (2006) 773-789. This paper estimates the effect of parks, lakes, rivers, and other open spaces on residential property values in the Twin Cities. It finds that the value of open space depends critically on neighborhood context, and has important implications for urban planning. Begun as Soren Anderson’s honors thesis at Macalester, it is now one of the top ten most-cited RSUE articles published since 2005.

journal coverLiang Ding, Hiro Miyaki (’09) and Hao Zou (’10), “Asymmetric Correlations in Equity Returns: A Fundamental-based Explanation,” Applied Financial Economics, March 2011, pages 389 - 399. This paper provides a fundamental-based explanation for the pattern that stock returns are more correlated in bear markets than bull markets. Started as Hiro’s honors thesis and finished by Hao in his summer research project with Professor Ding.


journal coverLiang Ding and Jonas Hiltrop (‘08), “The Electronic Trading Systems and Bid-ask Spreads in the Foreign Exchange Market”, Journal of International Financial Markets, Institutions & Money, October 2010, 323-345. This paper examines the impact of electronic trading systems on the liquidity of the foreign exchange market. The paper finds that the new systems significantly increase market liquidity but the effect is bigger for uninformed dealers than informed dealers. Started as Jonas’ independent study project with professor Ding at Macalester.

Liang Ding and Linh To (‘07), “The Forward Premium Puzzle across Maturities”, Economics Bulletin, 2010, Vol. 30 no.2, 1113-1119.

This paper tests the forward premium puzzle in a wide range of maturities from 1-day to 5-year. It finds that the forward premium puzzle appears to be most significant for medium maturities, while disappearing for both very short and long maturities. Started as Linh’s honors thesis at Macalester.

Summer research:


  • Professor Liang Ding and Nikhil Gupta ‘11 (Minneapolis, MN), with the support of a Keck grant, tested whether the predictability of technical indicators used in financial trading can be attributed to self-fulfilling behavior.
  • Professor Raymond Robertson and Gayatri Sarin ‘11 (India), with the support of a Keck grant, investigated the effect of export-oriented growth on the female wage penalty in Sri Lanka


  • Professor Amy Damon worked with Zach McDade ’10 (Boulder, Colo.) to collect preliminary data in Nicaragua during summer 2009. Zach investigated the effect of solar lights on household production activities and educational outcomes in communities that did not have access to electricity.
  • Professor Raymond Robertson worked with Cael Warren ’09 (Stevens Point, Wis.) researching working conditions in Cambodian garment factories. Professor Liang Ding and Manoj Vemula ’10 (Bangalore, India), with the support of a Keck grant, explored how electronic trading systems affect market liquidity in the foreign exchange market.
  • Professor Liang Ding and Hao Zou ’10 (Suzhou, China), with the support of a Keck grant, examined the impact of increasing market transparency on the price efficiency in the foreign exchange market.
  • Professor Pete Ferderer and Stamo Hadjiyski ’10 (Sofia, Bulgaria), with the support of a Keck grant, explored the herding behavior and biases of macroeconomic forecasters in the years leading up to the current economic crisis.
  • Professor Sarah West ’91 and Aleksander Azarnov ’10 (Johvi, Estonia), with the support of a Keck grant, studied the degree to which vehicle purchase decisions are affected by changes in gasoline prices. They analyzed a data set with over 90 million observations of used vehicle sale transactions in order to estimate the degree to which used car prices vary according to operating costs, which are a function of gasoline prices and fuel economy. While we might expect households to increase demand for fuel efficient vehicles in response to higher gasoline prices, their preliminary estimates suggest that households are far less responsive than expected. This work is part of a larger project that Professor West is undertaking with University of Chicago professor Jim Sallee ’01.