Economist Sissoko Presents Two Papers

Posted on 10/12/2018 9:06:22 AM

Yaya Sissoko presented the following two research papers at the “Public and Private Ethics in Economics: Leadership and Transparency in Economic Analysis and Policy” organized by the Association for Integrity and Responsible Leadership in Economics and Associated Professions (AIRLEAP, Midwest Office) held in St. Charles, Missouri, October 5–6, 2018.

“The Price of Cocaine and the Colombia Peso: An Empirical Investigation”

(co-authored with Alexi Thompson)

This paper investigates the determinants of the Colombian peso including commodities prices that represent a major portion of Colombia’s export revenues including crude oil and coffee. While the underground economy is not explicitly included in the measure of GDP, the cocaine trade has been a major source of revenue for Colombia. Using quarterly cocaine prices from 1982 to 2007 published by the Office of National Drug Control Policy, this paper uses vector error correction and forecast error variance decomposition methods to look at the relationship between cocaine prices and the peso/$ nominal exchange rate. Our results indicate cocaine prices affect the value of the Colombian peso which leads to some interesting policy implications.

“The Evaluation of Local Entrepreneurship and Tourism in the United States: What is the Evidence?”

(co-authored with Brian Sloboda and Norris Kruger)

This paper delves into the examination of the linkages between local entrepreneurship and tourism in the United States. Conventional wisdom suggests that tourism activity is largely driven by smaller enterprises; thus, it affords entrepreneurial opportunities for individuals and families in nonmetropolitan areas. This research represents a significant opportunity (USDA 2016, Plummer & Headd, 2008). This analysis will combine the rich nonmetro county data from the Economic Research Service of the U.S. Department of Agriculture with data from the Quarterly Workforce Indicators (QWI). QWI is based on the Longitudinal Employer-Household Data (LEHD) by the Census Bureau in rural areas in the United States that has data for the metropolitan statistical areas (MSAs) and micropolitan statistical areas. Identifying communities with strong tourism and strong entrepreneurship will permit to assess how these differ from otherwise similar communities; therefore, it generates viable policy implications and recommendations. 

Department of Economics