Estimation of a dynamic demand function for gasoline with different schemes of parameter variation

In this article we explore the consumer demand for gasoline within the framework of the household production function model. Working with a time series of regional cross-sections, we find the parameters in the gasoline demand model varying across states. Random coefficient model is utilized to analyze temporal cross-section data.     

Labor Regulations,Employment and Wages: Evidence from India's Apparel Sector

While India is among the world's largest producers and exporters of apparel products, the sector has not performed to its potential. This study analyzes why this might be so from the perspective of the structure of production in the sector, the most striking aspect of which is a firm size distribution heavily dominated by small firms. Using nationally representative firm‐level and labor force survey data, we argue that the dominance of firms operating at scales too small to apply modern production and management technologies is one proximate reason for India's relative underperformance. Further, we note that India's labor regulations and the associated enforcement regime are important policy drivers of Indian firms' tendency to avoid placing “too many workers under one roof”.     

STRONG FORM EFFICIENCY OF THE FOREIGN EXCHANGE MARKET AND BANK POSITIONS

This paper explores the strong form efficiency of the pound sterling-U.S. dollar market by analyzing the ability of U.S. commercial banks to formulate superior expectations vis-a-vis the market in two ways. First, Stein's theory is employed to distinguish between shifts and disturbances in the exchange market equilibrium. Second, the swap transaction framework extracts U.S. commercial banks' expectations from their observed behavior. Results obtained from both approaches suggest that the observed group has better than random forecasting accuracy.     

The healthcare burden of disease progression in medicare patients with functional mitral regurgitation

Abstract

Objective: This retrospective database analysis estimated the incremental effect that disease progression from non-clinically significant functional mitral regurgitation (nsFMR) to clinically significant FMR (sFMR) has on clinical outcomes and costs.

Methods: Medicare Fee for Service beneficiaries with nsFMR were examined, defined as those with a heart failure diagnosis prior to MR. Patients were classified as ischemic if there was a history of: CAD, AMI, PCI, or CABG. The primary outcome was time to sFMR, defined as pulmonary hypertension, atrial fibrillation, mitral valve surgery, serial echocardiography, or death, using a Cox hazard regression model. Annualized hospitalizations, inpatient hospital days, and healthcare expenditures were also modeled.

Results: Patients with IHD had higher risk (Hazard Ratio?=?1.22 [1.14–1.30]) for disease progression compared to patients without. The progression cohort had significantly more annual inpatient hospitalizations (non-IHD?=?1.32; IHD?=?1.40) than the non-progression cohort (non-IHD?=?0.36; IHD?=?0.34), and significantly more annual inpatient hospital days (non-IHD?=?13.07; IHD?=?13.52) than the non-progression cohort (non-IHD?=?2.29; with IHD?=?2.08). The progression cohort had over 3.5-times higher costs vs the non-progression cohort, independent of IHD (non-IHD?=?$12,798 vs $46,784; IHD?=?$12,582 vs $49,348).

Conclusion: Treating FMR patients earlier in their clinical trajectory may prevent disease progression and reduce high rates of healthcare utilization and expenditures.     

Convertible Bond Issues: Evidence from Security Markets

A convertible bond (CB) is a hybrid security containing elements of both common stock and straight debt. Still, empirical investigations on CB issue announcements have failed to discern any pattern in the stock market reaction that is consistent with announcements of either common equity or straight debt issues. This study shows that (a) motives for issuing the CB and (b) its rating (and to a less extent the riskiness of the issuing firm) help explain the stock market reaction to CB issue announcements. Specifically, announcement of a CB issue with an explicitly stated motive for the use of proceeds, when coupled with a high (low) bond rating, generates a stock market response similar to a straight debt (common stock) issue. On the other hand, the preference of CB holders is dictated by the motive for the use of proceeds and the conversion premium. These findings highlight the critical importance of the motive of issue in determining reactions in both the stock and bond markets.     

Simple methods for uncapacitated facility location/allocation problems

Facility location/allocation problems are encountered in many different areas of management science. The methods presented in the literature are complex and are not easily understood by practitioners who are not trained in the techniques of optimization. Simple heuristic methods are presented in this article. The methods are developed for three different types of uncapacitated problems: (1) unlimited facility capacity with no fixed cost; (2) unlimited facility capacity with a fixed cost for assignment; (3) multiperiod problems. Examples are included to illustrate the basic methods.