The impact of hospice programs on U.S. hospitals

This study demonstrates that hospice programs are more likely in communities with favorable economic factors and higher Medicare populations. Large hospitals with high occupancy rates and more clinical services use the hospice as an alternative to inpatient care thereby improving hospital efficiency and profitability.     

Predictability in Equilibrium: The Price Dynamics of Real Estate Investment Trusts

This research hypothesizes that, in markets where information costs, transaction costs and the economic impact of information can vary widely, we should expect predictability to vary systematically. We test this hypothesis with data on equity real estate investment trusts (REITs) from 1985 to 1992. We document that levels of predictability vary with firm characteristics like leverage, size and focus. Momentum is stronger for larger, more levered REITs. Reversion is faster for focused, levered REITs. The results are consistent with the hypothesis that, in equilibrium, securities, where information is either less costly to acquire or has less impact on fundamental value, should exhibit less predictability.     

The Year in Review: Economics at the Antitrust Division, 2006–2007

In this paper, we evaluate the scope of Chadwick’s claim on the superiority of competition for the market over competition in the market under incomplete information. We firstly characterize the expected outcome achieved under competition in the market at a Cournot Bayesian-Nash equilibrium. Then we characterize the optimal expected outcome achieved under a competition for the market mechanism designed by a government facing a shadow cost of public funds. We show that a regulated monopoly selected by an auction mechanism results in higher expected welfare than does duopoly competition when the entry cost is low but that the opposite holds when the market size is small and the entry cost is high for some values of the shadow cost of public funds. These results are explained by the influence of adverse selection on the entry decision at the Cournot equilibrium and by the level of expected total fixed costs in both mechanisms.      

A cash flow cost-volume-profit model

The traditional cost-volume-profit (CVP) model assumes the accounting flows follow the accrual accounting model. No distinction is made between accrual cost flows and cash flows. This paper looks at several different cash flow break-even models.One model assumes there is no opportunity to use an accrual accounting taxable loss by other profitable product lines or through a tax loss carryback. When graphed, this model presents a “dog-leg” at the accrual accounting breakeven point. A more general model assumes that an accrual tax loss is usable. When graphed, this model presents a line parallel to the after-tax accrual-based cost line, shifted downward in the amount of the noncash fixed costs.     

Size of employment unit and injury rates in British manufacturing: a secondary analysis of WIRS 1990 data

This article uses unique information provided by the WIRS 1990 dataset in order to explore the relation between size and industrial injury in British manufacturing industry. Results are reported for both independent establishments and for those which form part of larger organisations. The examination of the relation between the injury rate and other variables is permitted by use of a regression model.     

Estimating individual cross-section coefficients from the random coefficient regression model

Marketing researchers frequently encounter cross-sectional, time-series data when developing sales response models. One approach to analyzing such data is to estimate a separate OLS equation for each cross-section. Alternatively, one could pool the data from all cross-sections to estimate a single set of response coefficients for all cross-sections. However, when data are pooled, the responsiveness of individual cross-sections cannot be evaluated. In this note, we introduce a version of the random coefficient model that can be used to estimate separate sets of response coefficients for each cross-section, thereby circumventing the assumption that coefficients are homogeneous in all cross-sections. We demonstrate this approach with an empirical model that relates brand level sales to price and advertising. This research was conducted while he was on the Marketing Department faculty at the University of Texas at Austin. He received his doctorate from Purdue University. Dr. Leone’s primary research interests investigating the effects of advertising, price, and promotion on market performance. He has written extensively in this area and has published in theJournal of Marketing Research, Journal of Marketing, Journal of Advertising, Management Science andOperations Research. He earned his Ph.D. in Economics at Purdue University. His research focuses on econometric methods and statistical modelling in finance and marketing. He received his doctorate from the University of Texas at Austin. Dr. Mulhern specializes in econometric and time series analysis, particularly of retail price and promotional activities. His research has appeared in theJournal of Marketing and theJournal of Business Research.     

Performance failure: Executive response to self-serving bias

Are your employees happy to take credit for their successes and just as happy to blame outside factors for their failures? This phenomenon, called self-serving bias, has several causes, but managers can learn how to deal with it.