ECON 305 Paper Wins 2nd Place in Writing Competition
Ben Wixson’s ECON 305 research paper won second place in UM-Dearborn’s annual writing awards contest. The paper, titled “The Cost of Segregation,” was submitted in the category of “Writing in the Public Sphere” and examines racial differences in vehicle insurance rates in Southeast Michigan. Ben not only used statistical skills acquired in ECON 305 to conduct his research, he also placed the topic in historical context using what he learned in ECON 361: U.S. Economic History.
Ben’s analysis of a random sample of 30 cities in the tri-county area (Wayne, Macomb, and Oakland) found a strong negative correlation between the percent of the population that identifies as White in the American Community Survey and the insurance rate a 30-year-old, male driving a 2017 Honda Accord would pay for a policy with the state-minimum insurance liability. A simple regression indicates that each 1-percentage-point rise in the percent White is associated with a $1.70 drop in the monthly auto insurance rate.