Welfare Analysis of a Fiscal Reconstruction Policy in an Overlapping Generations Economy with Public Investment

Constructing an endogenously growing overlapping generations model with public investment, we examine the welfare effects of a fiscal reconstruction policy. In this paper we define a fiscal reconstruction policy as a policy where the government reduces its spending level without changing the tax revenue and allocates the surplus of the revenue to redeem public debt. We show that if government spending is not productive it is possible that a fiscal reconstruction policy improves the utilities of both the current and future generations, while if government spending is productive it can harm the utilities of both generations. Received February 26, 2002; revised version received July 8, 2002 Published online: February 17, 2003     

Trait perceptions influence economic out-group bias: lab and field evidence from Vietnam

Group favoritism is typically directed toward in-group members and against out-group members, but these cross-group effects often vary. Little is known about why group effects on economic choices vary. We use a survey method developed in social psychology to measure stereotyped attitudes of one group toward another. These attitudes are then associated with prosociality in five experimental games (also using an unusual amount of individual-level sociodemographic control). We present evidence from an artificial field experiment of a majority group with high status (Vietnamese) exhibiting no disfavoritism toward a lower-status out-group (Khmer) and typical disfavoritism to a second out-group (Chinese). Both Vietnamese and Chinese groups see the Khmer as warm but incompetent, attitudes which seem to activate empathy rather than contempt. The results suggest that measuring between-group stereotype attitudes can be used to predict the sign of cross-group favoritism in other natural settings.     

Applications of Gram–Charlier expansion and bond moments for pricing of interest rates and credit risk

The purpose of this paper is to demonstrate the powerful and flexible applicability of the Gram–Charlier expansion to pricing of a wide variety of interest rate related products involving interest rate risk and credit risk. In this paper, we develop easily implemented approximations of the prices of several derivatives; swaptions, CMS, CMS options, and vulnerable options. Associated with the default risk, a survival contingent forward measure is constructed.     

Dynamic Analysis of Imitation and Technology Gap

This paper investigates how imitation activities affect the technology gap between developing and developed countries using a North-South model in which the variety of goods is expanding over time. If imitation productivity is high enough, nonrivalrous ideas and inexpensive labor enables developing countries to reduce their technological backwardness by imitating products even if their initial level of technology is far behind the technology in developed countries. We also show that the rise of imitation productivity may benefit both developing and developed countries if they prefer a sufficient variety of goods.     

TESTING THE THEORY OF MULTITASKING: EVIDENCE FROM A NATURAL FIELD EXPERIMENT IN CHINESE FACTORIES

Using a natural field experiment, we quantify the impact of one‐dimensional performance‐based incentives on incentivized (quantity) and nonincentivized (quality) dimensions of output for factory workers with a flat‐rate or a piece‐rate base salary. In particular, we observe output quality by hiring quality inspectors unbeknownst to the workers. We find that workers trade off quality for quantity, but the effect is statistically significant only for workers under a flat‐rate base salary. This variation in treatment effects is consistent with a simple theoretical model that predicts that when agents are already incented at the margin, the quantity–quality trade‐off resulting from performance pay is less prominent.     

Treatment patterns and healthcare resource utilization and costs in heavy menstrual bleeding: a Japanese claims database analysis

Aims: Heavy menstrual bleeding (HMB) is a highly prevalent condition, characterized by excessive menstrual blood loss and cramping, that interferes with activities of daily life. The aim of this study was to investigate treatment patterns in HMB in Japan, and to assess healthcare resource utilization and costs among women newly-diagnosed with the condition.

Materials and methods: This study retrospectively analyzed health insurance data available in the Japan Medical Data Center (JMDC) database on women aged 18–49 years who were newly-diagnosed with primary or secondary HMB. Treatment patterns were analyzed, and healthcare utilization and costs were evaluated and compared to matched controls.

Results: The study included a total of 635 patients, 210 with primary HMB and 425 with secondary HMB. In the primary HMB cohort, 60.0% of patients received one or more pharmacological or surgical treatments, compared with 76.2% in the secondary HMB cohort. The most commonly prescribed medications in all patients were hemostatic agents (28.7%), traditional Chinese medicine (TCM) (12.1%), and low-dose estrogen progestins (LEPs) (10.1%). After adjustment for patient baseline characteristics, healthcare costs were 1.93-times higher in primary HMB cases (p?<?.0001) and 4.44-times higher in secondary HMB cases (p?<?.0001) vs healthy controls. Outpatient care was the main cost driver.

Limitations: The main limitations of this study are related to its retrospective nature, and the fact that only reimbursed medications were captured in the source database.

Conclusions: A substantial proportion of HMB patients did not receive the recommended treatments. Healthcare costs were considerably increased in the presence of an HMB diagnosis.     

On the equivalence of the Arrow impossibility theorem and the Brouwer fixed point theorem when individual preferences are weak orders

We will show that in the case where there are two individuals and three alternatives (or under the assumption of the free-triple property), and individual preferences are weak orders (which may include indifference relations), the Arrow impossibility theorem [Arrow, K.J., 1963. Social Choice and Individual Values, second ed. Yale University Press] that there exists no binary social choice rule which satisfies the conditions of transitivity, Pareto principle, independence of irrelevant alternatives, and non-existence of dictator is equivalent to the Brouwer fixed point theorem on a 2-dimensional ball (circle). Our study is an application of ideas by Chichilnisky [Chichilnisky, G., 1979. On fixed points and social choice paradoxes. Economics Letters 3, 347–351] to a discrete social choice problem, and also it is in line with the work by Baryshnikov [Baryshnikov, Y., 1993. Unifying impossibility theorems: a topological approach. Advances in Applied Mathematics 14, 404–415].     

Structural reform of the electricity industry and economic growth

Using 782 panel data from 34 OECD countries from 1991 to 2013, this study aims to evaluate how structural reform affects GDP growth rate. We use the Barro-type GDP growth rate regression model and apply both fixed and random effect models. Eight structural reform variables are selected: (i) third party access, (ii) wholesale market dummy, (iii) choice of supplier, (iv) private ownership, (v) generation-others separation, (vi) transmission-others separation, (vii) distribution-others separation and (viii) overall vertical separation. Major finding results are as follows: (i) third party access can positively contribute to GDP growth rate, (ii) wholesale market and overall vertical separation might have a small negative effect, and (iii) other variables have no significant effect.