Spillover effects of increased health insurance enrollment on workers’ compensation insurance

The Patient Protection and Affordable Care Act (ACA) was designed to increase the accessibility and affordability of health insurance. While the ACA did not contain direct provisions related to workers’ compensation (WC), because health‐related coverage is a significant portion of WC costs, the ACA could have unintentionally impacted the WC market. Specifically, expanded health insurance enrollment could reduce WC losses and result in higher performance among insurers participating in the WC market. Using insurer‐state level data, we consider the impact of increased health insurance enrollment on the performance of property‐casualty (PC) insurers. Utilizing multiple measures of performance, we find that the post‐ACA period is generally associated with greater profitability for PC insurers operating in the WC market, a positive unintended consequence of this federal regulation.     

The Sahel: A Malthusian Challenge?

The population of the least developed countries of the Sahel will more than triple from 100 million to 340 million by 2050, and new research projects that today’s extreme temperatures will become the norm by mid-century. The region is characterized by poverty, illiteracy, weak infrastructure, failed states, widespread conflict, and an abysmal status of women. Scenarios beyond 2050 demonstrate that, without urgent and significant action today, the Sahel could become the first part of planet earth that suffers large-scale starvation and escalating conflict as a growing human population outruns diminishing natural resources. National governments and the international community can do a great deal to ameliorate this unfolding disaster if they put in place immediate policies and investments to help communities adapt to climate change, make family planning realistically available, and improve the status of girls and women. Implementing evidence-based action now will be an order of magnitude more humane and cost-effective than confronting disaster later. However, action will challenge some long held development paradigms of economists, demographers, and humanitarian organizations. If the crisis unfolding in the Sahel can help bridge the current intellectual chasm between the economic commitment to seemingly endless growth and the threat seen by some biologists and ecologists that human activity is bringing about irreversible damage to the biosphere, then it may be possible also to begin to solve this same formidable problem at a global level.     

Inefficiency and complementarity in sharing games

A sharing game is a very simple device for partially reconciling an organization’s goal with the interests of its members. Each member chooses an action, bears its cost, and receives a share of the revenue which the members’ actions generate. A (pure-strategy) equilibrium of the game may be inefficient: surplus (revenue minus the sum of costs) may be less than maximal. In a previous paper, we found that for a wide class of reward functions, no one squanders at an inefficient equilibrium (spends more than at an efficient profile) if the revenue function has a complementarity property. In the present paper, we examine the “opposite” of the complementarity property (Substitutes) and we study a class of finite games where squandering equilibria indeed occur if Substitutes holds strongly enough. Squandering equilibria play a key role when one traces the effect of technological improvement on a sharing game’s surplus shortfall. We then turn to the question of choice among reward functions in a principal/agents setting. We find that if we again assume complementarity then strong conclusions can be reached about the reward functions preferred by “society”, by the players (agents), and by the principal.     

The Role of Small Towns in the Local Economy and Some Implications for Development Policy

Over recent years, socio-economic restructuring has tended to undermine the traditional functions of small rural towns. Empirical evidence also suggests that significant proportions of economic transactions are carried out through the regional, national and international economy. Establishing the degree to which a settlement is integrated into its locality provides an indication of its contemporary functions and potential role in rural development. In this paper, reliable measures of economic linkages are developed, and it is shown that the strength of local integration is a function of the existing economic structure of the town as well as its proximity to metropolitan centres.     

Implementing multiple perspective feedback: An integrated framework

Despite the recent popularity of multiple perspective feedback systems, there is little theory to guide research in this area and to promote the successful implementation of multiple perspective feedback in organizations. By integrating organizational development and individual performance perspectives, a theoretical framework is developed that illustrates the mechanisms by which feedback can lead to improved individual, work group, and organizational performance. According to this framework, when the structure and systems of the organization are congruent with the goals of the feedback program, feedback positively influences individual performance determinants (e.g., declarative knowledge, motivation). This leads to improved individual performance, which contributes to desired organizational outcomes. Based on this framework, practical questions that should be addressed before a feedback process is implemented are presented.     

It's an ill wind: The effect of fine particulate air pollution on respiratory hospitalizations

While a growing literature in economics has established the harmful health effects of longstanding criteria air pollutants such as ozone and carbon monoxide, fine particulate air pollution is relatively understudied. This paper provides evidence on the harmful effects of fine particulate pollution for Ontario, where municipalities enjoy particulate levels well below US Environmental Protection Agency (EPA) standards and predominantly below Canada‐wide standards. Results provide strong evidence for the detrimental effect of fine particulate pollution for the respiratory health of children, with a one standard deviation change in particulate pollution, leading to a 4% increase in respiratory admissions. While these results inform the stringency of current pollution standards, they also highlight the importance of an international approach to air quality. For instance, the paper also shows that particulate levels in Ontario municipalities are strongly influenced by southerly winds from US jurisdictions, which adhere to more lenient EPA standards.     

Strategy under uncertainty

At the heart of the traditional approach to strategy lies the assumption that by applying a set of powerful analytic tools, executives can predict the future of any business accurately enough to allow them to choose a clear strategic direction. But what happens when the environment is so uncertain that no amount of analysis will allow us to predict the future? What makes for a good strategy in highly uncertain business environments? The authors, consultants at McKinsey & Company, argue that uncertainty requires a new way of thinking about strategy. All too often, they say, executives take a binary view: either they underestimate uncertainty to come up with the forecasts required by their companies' planning or capital-budging processes, or they overestimate it, abandon all analysis, and go with their gut instinct. The authors outline a new approach that begins by making a crucial distinction among four discrete levels of uncertainty that any company might face. They then explain how a set of generic strategies--shaping the market, adapting to it, or reserving the right to play at a later time--can be used in each of the four levels. And they illustrate how these strategies can be implemented through a combination of three basic types of actions: big bets, options, and no-regrets moves. The framework can help managers determine which analytic tools can inform decision making under uncertainty--and which cannot. At a broader level, it offers executives a discipline for thinking rigorously and systematically about uncertainty and its implications for strategy.     

Developing managerial learning styles in the context of the strategic application of information and communications technologies

This article reports on collaboration between a research university and a consortium of leading public and private sector organisations to enable their senior executives ‘to get our arms around this thing called IT’. The project started in 1995 and ran for almost four years. The learning materials were developed with the participants at face‐to‐face meetings mediated by group decision support software. The initial requirement for paper‐based out‐puts was soon augmented with bespoke software, CD‐ROM and online databases accessed via an extranet and then an interactive website. An action research approach was used to observe and measure the effectiveness of a theoretical model – the Executive Learning Ladder. During one 12‐month period, 50 events involved 561 executives. Analysis of the results indicated that sense‐making was accelerated when conducted within peer‐groups before being ‘cascaded’ to less experienced managers. Senior executives preferred metaphors that triggered connections whereas their subordinates tended to display an appetite for extensive case study portfolios. The report concludes with a discussion of the successes and failures of the Executive Learning Ladder and its potential as a generalisable model for executive development in the ICT domain.