“Public Procurement in the Presence of Private Market Spillovers: Evidence from WIC and the Infant Formula Market” - Yuci Zhao

Abstract:

The Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), a means-tested in-kind transfer nutritional assistance program, uses sole-source contracting in its procurement of infant formula. We find that the mechanism increases the market power of the government-contracted brand. This market power effect is the result of retailers favoring the government-contracted brand in stores by overstocking this brand, effectively foreclosing competition with rival brands. We develop a vertical model of the industry, highlighting the role of retailer's incentives that can rationalize this foreclosure behavior. Multi-source mechanisms that leverage the government's bargaining power over prices may dilute the market power effect while maintaining cost-effectiveness.

"The Value of a Math Class: The Labor Market Impacts of Raising Public Education Requirements" - Rachel Moore

Abstract: 

High school is the last set of uniform curriculum given to students in the US and the contents of that curriculum is constantly under scrutiny. I leverage a change in Texas high school graduation requirements that resulted in a 73% (29 p.p.) increase in students taking 4 or more math classes to estimate the return to an additional math class in high school. Using individual level data on students from Texas high schools and a diff-in-diff design, this paper will identify the impact of an additional high school math class on postsecondary education enrollment, degree completion, STEM persistence, and wages.