Disease‐Specific Moral Hazard and Optimal Health Insurance Design for Physician Services

This article analyzes disease‐specific moral hazard effects in the demand for physician office visits and explores whether optimal insurance for physician services should be designed to have disease‐specific cost sharing. Generalized method of moments is implemented to address the endogeneity of private health insurance, and the nonnegativity and the discreteness of physician services use. The results indicate that the moral hazard effect varies considerably across disease‐specific specialist care. The strongest moral hazard (for no‐condition related specialist visits) is almost twice the moral hazard effect of the weakest (for chronic condition related specialist visits). Although the findings indicate some variation in the moral hazard effect across disease‐specific general practitioner visits, the variation is less considerable. The main policy implication is that optimal insurance for physician services should be designed to have differential cost sharing based on disease status rather than to have uniform cost sharing.     

Agrarian Change under Globalization: Markets and Insecurity in Turkish Agriculture

This paper argues that deepening commodification in Turkish agriculture has changed the lives of farmers in significant ways. Global circuits have swept away the accustomed networks of information, production and marketing which had been largely established and maintained by comprehensive governmental support policies. New institutions have come into the picture establishing the links between small producers and larger markets. With state policy strengthening the domination of the market, prices and demand patterns fluctuate widely leaving small producers vulnerable to market forces and raising the level of risk and insecurity. This situation brings about a rapid de‐ruralization of the population in most regions of the country. In the fertile coastal strip of the southern and western provinces, however, commercial opportunities introduced by global circuits have led to a thriving market in products, land, and labour. Farming of vegetables and fruits for domestic and European markets dominate agricultural production. Seasonal employment, in tourism and in labour‐intensive crops, supplement household incomes, permitting the rural population to remain in the countryside.     

An experimental test of observational learning under imperfect information

Summary. Nearly all observational learning models assume that individuals can observe all the decisions that have previously been made. In reality, such perfect information is rarely available. To explore the difference between observational learning under perfect and imperfect information, this paper takes an experimental look at a situation in which individuals learn by observing the behavior of their immediate predecessors. Our experimental design uses the procedures of Çelen and Kariv [9] and is based on the theory of Çelen and Kariv [10]. We find that imitation is much less frequent when subjects have imperfect information, even less frequent than the theory predicts. Further, while we find strong evidence that under perfect information a form of generalized Bayesian behavior adequately explains behavior in the laboratory, under imperfect information behavior is not consistent even with this generalization of Bayesian behavior.Received: 29 January 2002, Revised: 12 May 2004, JEL Classification Numbers: C92, D8. Correspondence to: Boaçhan ÇelenWe completed most of this paper when we were both graduate students at New York University. This research was supported by the Center for Experimental Social Sciences (C.E.S.S.) and the C.V. Starr Center for Applied Economics at New York University. We are grateful to Andrew Schotter for his guidance and to an anonymous referee for his comments. We benefited from the expositional suggestions of William Baumol. We also acknowledge helpful discussions of Colin Camerer, Liran Einav, Xavier Gabaix, Douglas Gale, Charles Holt, David Laibson, and Matthew Rabin. We also benefited from suggestions by the participants of the 2002 International ESA Meeting and seminars at several universities.     

Environmental Quality,Medical Care Demand and Environmental Tax Interactions

Assuming that improvements in environmental quality lead to lower demand for medical care, it has been shown that general-equilibrium interactions with the tax-distorted labor market reduce the benefits from such improvements, and thus lower the second-best optimal environmental tax. This paper provides some insights on how the link between environmental quality, individual’s health capital, and the demand for medical care affects the analysis of pollution taxes. The paper develops structural conditions under which improvements in environmental quality decrease/increase the demand for medical care and discusses their implications for environmental tax interactions.      

Downside business confidence spillovers in Europe: evidence from causality-in-risk tests

This paper employs an extreme risk spillovers test to investigate the bilateral business confidence spillovers between Greece, Italy, Spain, Portugal, France, and Germany. After controlling for domestic economic developments in each country and common international factors, downside risk spillovers are detected as a causal feedback between Spain and Portugal and unilaterally from Spain to Italy. Extremely low business sentiments in France, Germany, and Greece are mostly due to the common adverse economic environment and to each country’s own domestic economic developments.     

An extension to the classical mean–variance portfolio optimization model

Abstract

The purpose of this study is to find a portfolio that maximizes the risk-adjusted returns subject to constraints frequently faced during portfolio management by extending the classical Markowitz mean–variance portfolio optimization model. We propose a new two-step heuristic approach, GRASP & SOLVER, that evaluates the desirability of an asset by combining several properties about it into a single parameter. Using a real-life data set, we conduct a simulation study to compare our solution to a benchmark (S&P 500 index). We find that our method generates solutions satisfying nearly all of the constraints within reasonable computational time (under an hour), at the expense of a 13% reduction in the annual return of the portfolio, highlighting the effect of introducing these practice-based constraints.     

Western Canadian producers’ attitudes towards wheat breeding funding

In 2017, the federal government initiated national consultations for two new crop royalty systems that could be used to support additional crop breeding. In this study, we examine wheat growers’ attitudes towards breeding research and assess their inclination to contribute more to wheat variety development through checkoffs or enhanced royalties. We report a random effect probit estimation for a survey of 877 western Canadian wheat producers that took place from November 2018 to January 2019. We found at least 26% of survey respondents were willing to pay more to support additional wheat breeding. However, this support is contingent on the model for revenue collection and where additional revenue is invested. Producers generally favored increased checkoffs over enhanced royalty collection. Among the royalty options presented, the farm saved seed royalties mechanism had less support than the simpler to implement end-point royalties mechanism. We also found support is much higher if new royalty mechanisms are used to support university or government programs versus private breeding programs. This result suggests developing widespread producer support for enhanced royalty collection may require broader commitments for funding, ownership, and control of crop breeding programs.     

Research Performance of Turkish Economists and Economics Departments: Another Update and a Review of the 2000s

This article discusses publication performance and patterns of Turkish economists by analyzing changes overtime and comparing results to economists’ performance in some emerging economies. The results indicate that (1) the publication performance of Turkish economists and economics departments has improved rapidly over the years but they are still performing below their potential; (2) there is a remarkable difference in research performance among the institutions, but competition has been increasing; (3) the majority of contributions to research output in Turkey are made by six leading universities, but competitive pressure is coming from other institutions; (4) the faculties of the six leading universities are highly motivated to publish in high-quality journals, while members of the other institutions are also increasingly eager to find themselves a place in these outlets; (5) more than one-third of the articles are published in 10 of the 350 Social Sciences Citation Index (SSCI) Economics Journals, but the concentration ratio is decreasing overtime; (6) publication performance and patterns of Turkish economists are similar to their counterparts in emerging economies, but in some aspects Turkish economists perform better.     

Food safety attitudes and practices of chefs in Cappadocia region,Turkey

ABSTRACT

Chefs working at hotels, restaurants, and public institutions play a major role in food safety. The aim of this study is to explore attitudes and practices regarding food safety issues among chefs in the Cappadocia region, Turkey. The data was collected using a convenience sampling method of the non-probability sampling technique. The survey was conducted between the period of September 2018 and November 2018, and 108 chefs working at hotels, restaurants, and public institutions participated. The data were analyzed using frequencies, exploratory factor analysis, independent sample t-test, ANOVA, correlation, and simple linear regression analyses. Most of the chefs (79.6%) had taken a basic food safety training course. The findings reveal that there are statistically significant (p < .05) differences between groups: (a) demographics and attitudes, and (b) demographics and practices. The findings also show that there is a significant (p < .05) and positive correlation (r = 0.48) between the attitudes and practices of chefs. This study posits that food safety trained chefs have higher scores in terms of both attitudes and practices than those who have not received. It is recommended that all chefs should be encouraged to attend food safety training programs. Practical and academic implications are discussed in detail.     

Set-valued risk measures as backward stochastic difference inclusions and equations

Scalar dynamic risk measures for univariate positions in continuous time are commonly represented via backward stochastic differential equations. In the multivariate setting, dynamic risk measures have been defined and studied as families of set-valued functionals in the recent literature. There are two possible extensions of scalar backward stochastic differential equations for the set-valued framework: (1) backward stochastic differential inclusions, which evaluate the risk dynamics on the selectors of acceptable capital allocations; or (2) set-valued backward stochastic differential equations, which evaluate the risk dynamics on the full set of acceptable capital allocations as a singular object. In this work, the discrete-time setting is investigated with difference inclusions and difference equations in order to provide insights for such differential representations for set-valued dynamic risk measures in continuous time.