Risk assessment of surplus appropriation schemes in participating life insurance

The aim of this paper is to analyze a life insurance company’s risk exposure with respect to different surplus appropriation schemes in participating life insurance. In this regard, three surplus appropriation schemes are considered, including the bonus system, the interest-bearing accumulation, and the system of shortening the contract term. We further examine an insurance company that offers all three schemes, i.e. each system is used for one third of the policyholders. Focus is laid on the effect of different asset portfolios and shocks to mortality on the insurer’s risk situation with respect to the policyholder’s age level at contract inception.     

Bringing History In: Policy accumulation and general policy alienation

Research mainly looked at problems public professionals have with specific policy programmes. However, policies are not developed in a vacuum. Public professionals are often confronted with (a series of) policy changes, intended to refine, replace or complement other policies. This policy accumulation results in professionals having a certain predisposition towards policies in general. To conceptualize this predisposition, we introduce the term general policy alienation. We investigate whether the earlier developed policy alienation scale can be adapted to measure general policy alienation. Our analyses show that the scale performs satisfactorily. Theoretical relevance, as well as directions for practical applications are discussed.     

Threat appeals in social marketing: death as a ‘special case’

Death is commonly used as a threat, both by fear-appeal researchers and by social marketing and health promotion practitioners (eg ‘Quit smoking or you'll die’). Fear (or threat) appeal researchers have frequently used death to arouse fear, and particularly in the ‘high’ fear condition. It is argued here that death is a ‘special case’ threat, and that the introduction of death in high fear conditions is a confounder in that death is a qualitatively different negative outcome from the non-death negative outcomes used in low fear conditions. The use of death in threat appeals requires attention in its own right for a number of reasons. First, death will occur eventually regardless of the message recipient's behaviour. Hence, messages that threaten death may arouse defensive responses in the target audience (eg ‘you've got to go sometime’), and unresolvable anxiety in the general population. Secondly, death can vary on a number of attributes (eg age at death, sudden versus prolonged, etc), and, while most threat appeals imply premature death, few studies have made this point explicit. Thirdly, the fear of death is multidimensional and some dimensions are more readily acknowledged as fearful than others. For example, a threat specifying the effect of one's death on loved ones might have more impact than a threat of death to oneself. Fourthly, people may fear death differently, or, for religious or other reasons, may not fear death at all. Furthermore, there may be age and gender differences in response to threat appeals using death. It is concluded that systematic research is required to determine whether and for whom death threats are effective. Copyright © 1999 Henry Stewart Publications     

The Russian–Ukrainian earnings divide1

Ethnic differences are often considered to be powerful sources of diverse economic behaviour. In this article, we investigate to what extent ethnicity affects Ukrainian labour market outcomes. Using microdata from the Ukrainian Longitudinal Monitoring Survey and the Oaxaca–Blinder decomposition of earnings, we find a persistent and increasing labour market divide between ethnic Russians and Ukrainians throughout Ukraine’s transition era. We establish that language, rather than nationality, is the key factor behind this ethnic premium favouring Russians. Our findings further document that this premium is larger amongst males than females.     

The Information Use in a SME: Its Importance and Some Elements of Influence

The aim of this study is to gain some insights into the importance of the information use for the success of a SME. Consequently we examine some characteristics of the owner/manager and his firm which determine the extent of this use. The value of the model is examined for 208 Belgian SME owner/managers. Our data suggest there is a positive relation between the extent of information use and the performance of a SME. Moreover, we find that SME owner/managers with a greater strategic awareness, with less firm experience prior to the present position and with a greater desire for growth use more information. Also, smaller family ownership and intervention in strategic management, as well as greater delegation of decision making, lead to a higher information use.     

Estimating the impact of social isolation on subjective health in Europe

Quality & Quantity - We investigate the relationship between social isolation and subjective health, considering that this relationship is potentially affected by endogeneity due to the...     

Are there economies of scale in the demand for money by firms? Some panel data estimates

We estimate elasticities of scale in the demand for money by firms using firm level panel data from Spain, the UK, and the US. This elasticity is one for Spain and the UK but smaller for the US. We find that the errors in the money demand equations contain two terms that are correlated with sales. Firstly, a permanent firm effect that captures differences in technological sophistication. Secondly, a measurement error in sales, which becomes relevant when relying on changes in sales to account for fixed effects. Failure to control for these correlated unobservable terms results in important biases in the estimated sales elasticities.