Impacts of household loan regulation on financial stability: evidence from Korea

The paper examines whether banking regulations and monetary policy contributed to controlling the fragility of household debt in Korea. The results show that housing loan regulations such as debt to income regulation contributed to a lower household debt delinquency ratio. Lowering the target interest rate provided additional stabilisation of the delinquency ratio. It is recommended that the government adopt an appropriate mix of regulation and monetary policy to control household financial fragility. The financial supervisory services need to be involved in managing debt to income regulation and minimising financial instability and financial market distortions. Further, the monetary authority has to adopt a more effective position in controlling the real lending interest rate and the delinquency ratio of household loans. Such a policy mix will improve effectiveness in controlling financial fragility, especially at a time of financial crisis.     

MODELLING A REGIME‐SHIFTING BEVERIDGE CURVE

This paper offers new insights into Beveridge curve analysis by modelling the unemployment–vacancy rate relationship within a Markov regime‐switching environment in which the probabilities of curve‐shifting are determined endogenously by shift factors. Shift factors include structural factors such as labour market participation and net migration, while cyclical variables include GDP growth, the real rate of interest, and labour productivity. This approach enables us to estimate regime‐specific parameters and to assess the role played by these factors in influencing the transition probabilities of switching between regimes. Using New Zealand data, we show that increases in the participation rate have shifted the Beveridge curve inward, while increases in net migration have shifted the curve outward.     

Secured debt and managerial incentives

Financial theory holds that firms can control agency costs through the use of short-term and secured debt. We examine the relation between the use of secured debt and the incentive of the manager to increase the risk of the firm, as measured by vega. We find that firms utilize secured debt to a lesser extent when managerial volatility sensitivity is higher. Our results suggest that these same firms employ short-term debt as the primary tool to control risk-shifting. Managers with a high risk appetite avoid secured debt, but appear to do so without compromising the interests of the shareholders.     

Credibility in Loss Reserving

This article proposes using credibility theory in the context of stochastic claims reserving. We consider the situation where an insurer has access to the claims experience of its peer competitors and has the potential to improve prediction of outstanding liabilities by incorporating information from other insurers. Based on the framework of Bayesian linear models, we show that the development factor in the classical chain-ladder setting has a credibility expression: a weighted average of the prior mean and the best estimate from the data. In the empirical analysis, we examine loss triangles for the line of commercial auto insurance from a portfolio of insurers in the United States. We employ hierarchical model for the specification of prior and show that prediction could be improved through borrowing strength among insurers based on a hold-out sample validation.     

Digital gaming culture in Vietnam: an exploratory study

ABSTRACT

New information and communication technologies continue to spread rapidly into the Asian marketplace, which has led to new patterns of leisure consumption, one of the most popular being digital gaming. However, in Vietnam there is limited research on gaming as a leisure activity. The purpose of this study is to explore the phenomenon of digital gaming in Vietnam to better understand how it is practiced in this culture. Semi-structured interviews were conducted with twenty-five gaming industry figures and gamers. Thematic analysis was used to guide data collection and analysis. The findings indicate that glocalisation, socialised gaming practices and competitiveness characterise the Vietnamese gaming experience. The distinct culture of Vietnam combined with globalised gaming consumption habits has created new modes of play culture, and hence leisure experiences that are growing in pervasive and influential ways.     

Deals inside: examining restaurant operators’ motives when choosing whether to offer a flash-sale

As restaurants are the primary hospitality business represented on flash-sale sites, this study examined motivations of restaurant managers when choosing whether to utilize the promotional mediums of flash-sales. Interviews were administered as a measurement instrument. Results demonstrated restaurants which have employed flash-sales are weary of the likelihood of success and believe the flash-sales brought in established customers. Non-users indicated hesitation towards adoption of flash-sales related to low profit margins per item in their operation and the percentage split of the sale price between the firm and flash-sale provider. Findings provide keen foundational insight into the flashsale phenomenon.     

The growth of manufacturing protection in 1920s Britain

Prior to the Import Duties Act of 1932, an assortment of legislation expanded the scope of manufacturing protection in Britain. This article assesses the magnitude of manufacturing protection before the Import Duties Act and finds that, in 1930, 9% of net manufacturing output occurred in a protected industry. In the late 1920s, protected industries exhibited above‐average growth in labour productivity. However, protection was disproportionately extended to newer manufacturing industries, which presented greater potential for productivity growth. This article concludes that protection did not enhance productivity growth in Britain's manufacturing industries in the late 1920s.     

The cost of diabetes and obesity in Australia

Aims: To assess and compare the direct healthcare and non-healthcare costs and government subsidies by body weight and diabetes status.

Methods: The Australian Diabetes, Obesity and Lifestyle study collected health service utilization and health-related expenditure data at the 2011–2012 follow-up surveys. Costing data were available for 4,409 participants. Unit costs for 2016–2017 were used where available or were otherwise inflated to 2016–2017 dollars. Age- and sex-adjusted costs per person were estimated using generalized linear models.

Results: The annual total direct cost ranged from $1,998 per person with normal weight to $2,501 per person with obesity in participants without diabetes. For those with diabetes, total direct costs were $2,353 per person with normal weight, $3,263 per person with overweight, and $3,131 per person with obesity. Additional expenditure as government subsidies ranged from $5,649 per person with normal weight and no diabetes to $8,085 per person with overweight and diabetes. In general, direct costs and government subsidies were higher for overweight and obesity compared to normal weight, regardless of diabetes status, but were more noticeable in the diabetes sub-group. The annual total excess cost compared with normal weight people without diabetes was 26% for obesity alone and 46% for those with obesity and diabetes.

Limitations: Participants included in this study represented a healthier cohort than the Australian population. The relatively small sample of people with both obesity and diabetes prevented a more detailed analysis by obesity class.

Conclusion: Overweight and obesity are associated with increased costs, which are further increased in individuals who also have diabetes. Interventions to prevent overweight and obesity or reduce weight in people who are overweight or obese, and prevent diabetes, should reduce the financial burden.     

Supervisors and Presenteeism: How do Supervisors Accommodate and Support Skilled Workers with Chronic Health Concerns?

There is a broad literature linking social support to health, which includes evidence that social support from supervisors is positively associated with worker health. In addition, once workers experience a health concern, supervisors may play a key role in supporting workers, keeping them on the job despite health issues. However, there are few studies that investigate the day-to-day strategies supervisors utilize to support their workers and help them stay on the job despite health concerns. The study presented in this paper addresses this gap. Thirty-two supervisors from three companies were interviewed about their experiences supporting and accommodating skilled workers during flare-ups of a health condition. A grounded theory approach was used to analyze the text data and identify themes. Three key themes emerged from the data: 1) workplace policies provide the structure for mutual problem solving; 2) communication skills and existing relationships increase supervisor effectiveness; and 3) strategies were aimed at individual, interpersonal, and institutional supports. Supervisors regularly interact with workers to support and accommodate episodes of illness or pain. While supervisors employ novel and effective strategies, there is an opportunity to improve the range of strategies, better understand and utilize company policies, and facilitate appropriate communication about worker health concerns.