The Effect of Rebate and Loan Incentives on Residential Heat Pump Adoption: Evidence from North Carolina

Environmental and Resource Economics - Electrification can promote deep decarbonization to tackle climate change with a cleaner power grid. Electric heat pumps provide a feasible and...     

Charisma Suffocating Creativity

Charisma is perceived as one of the most cherished and desirable qualities for organizational success. A charismatic leader inspires and motivates members to produce creative ideas. The problem with a charismatic leader is charisma itself. The current paper describes and explains the effects of charisma on charismatic leaders and followers with the hope that it may elicit introspection among organizations regarding the role charisma may play.     

Information Asymmetry and Organizational Structure: Evidence from REITs

We test for the differences in information asymmetry across two organizational forms (external and internal) in the REIT industry. We find significant differences with external REITs being significantly more transparent relative to internal REITs, and these differences are reflected in the loan contract terms and loan syndicate structure of loans made to these two types of REITs. We find that the relatively more transparent externally advised REITs are offered more favourable loan contracts in terms of lower loan rates and lower likelihood of collateral requirement. Further, loans to external REITs have syndicates that are larger in size and the lead lender retains a smaller portion of the loan, reflecting lower information asymmetry.     

Multiple-Category Decision-Making: Review and Synthesis

In many purchase environments, consumers use information from a number of product categories prior to making a decision. These purchase situations create dependencies in choice outcomes across categories. As such, these decision problems cannot be easily modeled using the single-category, single-choice paradigm commonly used by researchers in marketing. We outline a conceptual framework for categorization, and then discuss three types of cross-category dependence: cross-category consideration cross-category learning, and product bundling. We argue that the key to modeling choice dependence across categories is knowledge of the goals driving consumer behavior.     

An examination of national supply-chain flow time

The US and other national governments invest in research and development to spur competitiveness in their domestic manufacturing industries. However, there are limited studies on identifying the research efforts that will have the largest possible return on investment, resulting in suboptimal returns. Manufacturers commonly measure production time in order to identify areas for efficiency improvement, but this is typically not applied at the national level where efficiency issues may cross between enterprises and industries. Such methods and results can be used to prioritize efficiency improvement efforts at an industry supply-chain level. This paper utilizes data on manufacturing inventory along with data on inter-industry interactions to develop a method for tracking industry-level flow time and identifying bottlenecks in US manufacturing. As a proof of concept, this method is applied to the production of three commodities: aircraft, automobiles/trucks, and computers. The robustness of bottleneck identification is tested utilizing Monte Carlo techniques.     

Economic analysis of BRAF gene mutation testing in real world practice using claims data: costs of single gene versus panel tests in patients with lung cancer

Aims: To assess the time to BRAF testing, compare the characteristics of tested vs not-tested patients, and describe the costs for sequential vs next-generation sequencing (NGS) BRAF testing.

Methods: Patients diagnosed with lung cancer after December 1, 2013 were identified from two US claims databases; their characteristics were assessed during the 12 months before diagnosis (index date). Testing modalities were analyzed from the index date to end of continuous health plan enrollment or data availability (December 2015), based on combinations of Current Procedural Terminology (CPT) procedure codes. Time to BRAF testing was assessed using Kaplan-Meier analysis. Costs were analyzed from a payer’s perspective.

Results: A total of 28,011 patients newly-diagnosed with lung cancer were identified. Of them, 1,260 (4.5%) were tested for BRAF: 3.2% and 4.2% were tested at 6 and 12 months, respectively, after the index date. Compared to non-tested patients, tested patients were younger (58.3 vs 65.3 years; p?<?.001), had a lower Charlson Comorbidity Index (2.8 vs 2.9; p?=?.005), and a higher proportion had metastases (70.9% vs 43.4%; p?<?.001). In 76.0% of cases, BRAF was tested along with KRAS. BRAF was tested using NGS in 6.6% of cases. The average reimbursed amounts for the 10 most common CPT code combinations were $207–$2,074. Using the average costs of individual mutation tests, the total cost of sequential testing comprising KRAS, EGFR, ALK, ROS1, and BRAF tests was $3,763 ($464, $696, $1,070, $1,127, and $406, respectively), that of NGS was $2,860.

Limitations: Claims data did not include BRAF test results.

Conclusions: Among patients newly-diagnosed with lung cancer, 4.5% were tested for BRAF. Tested patients were younger and had a lower comorbidity burden, but more advanced disease. While reimbursed amounts varied greatly based on combinations of testing procedures, NGS testing was associated with cost savings compared to sequential testing of individual mutations.     

Unraveling a puzzle: the case of value line timeliness rank upgrades

We examine a sample of Value Line’s timeliness rank upgrades that occur immediately following earnings announcements and find that pre-event price momentum has significant incremental explanatory power for post-event drift, after controlling for the level of earnings surprise. Therefore, the stock price drift following Value Line’s timeliness upgrades cannot be viewed as driven only by the post-earnings announcement drift phenomenon. Instead, these findings indicate that, among other factors, Value Line has been exploiting the price momentum effect for decades. Black (Financ. Anal. J. 29:10–14, 1973) clearly stated that it does indeed do this, but his assertion has not yet been verified as an explanation of the puzzling drift that follows Value Line rank upgrades.     

The Effectiveness and Targeting of Television Advertising

Television networks spend about 16% of their revenues on tune-ins, which are previews or advertisements for their own shows. In this paper, we examine two questions. First, what is the informational content in advertising? Second, is this level of expenditures consistent with profit maximization? To answer these questions, we use a new and unique micro-level panel dataset on the television viewing decisions of a large sample of individuals, matched with data on show tune-in advertisements. The difference in effectiveness of advertisements between “regular” shows (about which viewers are assumed to have substantial information a priori) and “specials” (about which they have very little) reveals the value of information in advertisements and the different roles that information can play. The number of exposures for each individual is likely to be correlated with their preferences, since networks target their audiences. We address this endogeneity problem by controlling for observed, and integrating the unobserved, characteristics of individuals, and find that the estimated effects of tune-ins are still large. Finally, we find that actual expenditures on tune-ins closely match the predicted optimal levels of spending.