Purdue University Research Center in Economics (PURCE) research provides data-driven insights into how laws, regulations, and government programs affect the economy and the well-being of individuals and society.
Our focus areas include competition, crime, education, fiscal policy, health, innovation, market solutions, state policies, trade, and work.
Below, please find recent research stories highlighting the work of our faculty affiliates.
Nighttime driving restrictions reduce accidents, deaths among teen drivers
Sunday, May 1, 2022
In most countries, traffic accidents are teenagers’ leading cause of death, with risky driving accounting for a large fraction of those teen deaths. Driving restrictions have been implemented by many governments to reduce these risks, with varying degrees of success. New research from Purdue University’s Timothy Moore finds that a ban on nighttime driving with multiple passengers more than halved crashes, casualties, and deaths targeted by the ban
Neighbors’ Decisions – and Race – Matter for Mortgage Refinancing
Wednesday, March 23, 2022
Properly refinancing a mortgage can lead to lower mortgage payments and better interest rates. However, new research shows that refinancing decisions are influenced by one’s neighbors, especially if they belong to the same racial group. In his paper “Household Mortgage Refinancing Decisions Are Neighbor Influenced, Especially Along Racial Lines,” soon to be published in the Journal of Urban Economics, Purdue Assistant Professor of Management W. Ben McCartney and his fellow researchers examine how a homeowner’s immediate neighbors impact mortgage refinancing decisions.
Risk Management Streamlines Import Inspections
Tuesday, March 1, 2022
International trade is complicated. Thousands of products sourced from dozens of countries involving multiple trading companies can lead to uncertainty about compliance with import regulations. Inspecting shipping containers is critical to ensure a safe trading environment and proper tariff enforcement, but it is difficult for inspecting agencies and inspectors to balance these benefits against the strain that frequent inspections impose on international trade.
COVID-19 Policies Should Vary by Location to Mitigate Negative Economic Effects
Tuesday, March 1, 2022
Balancing the impacts of public policy on people’s health and their wallets has become even more relevant since the onset of the COVID-19 pandemic. Stay-at-home orders were widely implemented in the US to combat the spread of the virus, but their benefits came at costs to employment, earnings, and spending felt by millions of people.
The Long-Lasting Benefits of Childhood Creativity
Wednesday, December 1, 2021
New research from Purdue University's Krannert School of Management finds that individuals who are more creative at age 7 tend to have higher career earnings and land in better-quality jobs. Childhood creativity also boosts education attainment. Parents and educators can foster creativity in children by encouraging independent thinking and recognizing creative success.
Legal Expertise in Top Management: Does it Lead to Conservatism in Accounting?
Wednesday, November 10, 2021
Lawsuits filed in the last few years illustrate a well-founded belief in accounting circles: overstatements in financial reporting are more likely to trigger lawsuits than understatements because it's easier to show investor harm. "If a company understates, people are surprised in a good way," says Jonathan Black, assistant professor of accounting in Krannert School of Management. "The economic reality is better than the picture that was painted in the financial statements, so they are less likely to initiate a lawsuit."
Bullying in school hampers skill development, healthy adulthood
Monday, October 25, 2021
Kids who experience bullying are victims of injury or discomfort from peer teasing, harassment, and physical abuse. While some costs of bullying – school absenteeism, suicidal thoughts and actions – have been documented, little research has been done on the two-way relationship between bullying and skill accumulation in children. Miguel Sarzosa, an assistant professor of economics at Purdue University, finds that victimization depletes an average middle school child’s non-cognitive skills by 40 percent. This skill depletion causes the child to become 34 percent more likely to experience bullying again.
Domestic Violence Arrests Fall During COVID-Lockdown, While 911 Calls for Police Surged
Tuesday, July 27, 2021
A Purdue University faculty expert on crime is painting a more comprehensive picture of the effects of lockdown policies on domestic violence. The picture is a discouraging one. While COVID-19 pandemic-related stay-at-home, or SAH, orders undoubtedly saved many lives, new research highlights the effects of changes to expected police procedures, and a need to better protect the vulnerable. During a stay-at-home order, one might expect reported domestic crimes and arrests to increase. In at least one major American city, they in fact fell, even as there was a large increase in 911 calls.
Research shows disparity in borrower benefits between local banks and online lenders
Tuesday, July 27, 2021
The proliferation of online marketplace lending has been disrupting the consumer credit market, giving borrowers increased options for consolidating debt and building credit. Although marketplace lenders like the Lending Club, Prosper and others can transcend the geographic boundaries of traditional banks, the ultimate benefits to marketplace borrowers can still differ because local opportunities to replace marketplace loans vary.