Discussion of “Feedback loops, fair value accounting and correlated investments”

My paper discusses Bloomfield, Nelson, and Smith’s (BNS) model and experimental study of the price dynamics that arise when a firm’s accounting reports are predictable from its stock returns. This phenomenon occurs when the firm takes a position in an asset that generates unrealized gains and losses (UGL’s) that are correlated with the firm’s own returns. My discussion of BNS focuses on three features that are often used to evaluate research—namely, potential for falsification, internal validity, and external validity. I view and evaluate the BNS paper in light of each of these features. I also briefly comment on how well the paper addresses issues related to fair value accounting.     

Persistence,adherence, and all-cause healthcare costs in atazanavir- and darunavir-treated patients with human immunodeficiency virus in a real-world setting

Objectives:

Atazanavir (ATV) and darunavir (DRV) are protease inhibitors approved for HIV treatment in combination with ritonavir (/r). The objectives of this study were to compare persistence (time to treatment discontinuation/modification), adherence, and healthcare costs among patients with human immunodeficiency virus (HIV) initiating ATV/r or DRV/r.

Methods:

This retrospective cohort study used commercial and Medicaid administrative insurance claims data. Patients initiating ATV/r or DRV/r from 2006–2013 with continuous enrollment for ≥6 months before and ≥3 months after initiation were included. Patients were followed from initiation until discontinuation/modification (≥30 day gap in ATV or DRV or initiation of a new antiretroviral medication), during which time adherence (proportion of days covered [PDC], with PDC ≥80% or 95% considered adherent) and per-patient per-month (PPPM) total healthcare costs were measured. DRV/r patients were propensity score matched to ATV/r patients at a 1:1 ratio to achieve balance on potentially confounding demographic and clinical factors. Commercial and Medicaid samples were analyzed separately, as were antiretroviral (ART)-naïve and experienced patients.

Results:

The final samples comprised 2988 commercially-insured and 1158 Medicaid-insured patients. There were no significant differences in hazards of discontinuation/modification between the ATV/r or DRV/r cohorts. With respect to odds of being adherent, the only marginally significant result was comparing odds of achieving PDC ≥80% among ART-naïve Medicaid patients, which favored ATV/r. All other adherence comparisons were not significant. Although ATV/r cohorts tended to have lower PPPM costs, the majority of these differences were not statistically significant.

Conclusions:

Patients with HIV treated with either ATV/r or DRV/r had similar time to treatment discontinuation/modification, adherence, and monthly healthcare costs. Results were similar across the pre-specified sub-groups. These findings are useful not only as an insight into clinical practice, but also as a resource for healthcare providers and payers evaluating treatment options for HIV+ individuals.     

Manufacturing backshoring: a systematic literature review

The purpose of this research is to review and analyze in a systematic manner the current research published in peer-reviewed international scientific journals on the backshoring of manufacturing. We identify 20 articles published from 2009 to early 2016. We classify and discuss the literature according to publication year, research methodology, industry type, and firm size. Using content analysis, we identify 25 factors that are relevant for backshoring decision-making and categorize them into seven clusters that influence the decision to move manufacturing back. These clusters are: cost, quality, time and flexibility, access to skills and knowledge, risks, market, and other factors. Further, we provide a research agenda for further research on the phenomenon of moving manufacturing back.     

Tax Competition between Unitary and Federal Countries

We analyse taxation of capital in a two-country model, where one country is unitary while the other one is federal, consisting of two identical regions. Both national and regional governments levy a tax on capital. The countries play a noncooperative game between them, with the government of the federal country acting as a Stackelberg leader with respect to its regional governments. We show under what circumstances, at equilibrium, the federal country sets its tax rate inefficiently low, while the unitary country sets it inefficiently high.We are deeply grateful to three anonymous referees for their comments, and especially to one of them for extremely helpful suggestions. We also wish to thank participants at ESEM 2004 for fruitful discussions     

A Note on Ad Valorem and Per Unit Taxation in an Oligopoly Model

This note shows that per unit taxation welfare dominates ad valorem taxation in an oligopoly model, when the number of consumers is sufficiently high compared to the number of oligopolists. It aims to provide an alternative perspective to existing literature arguing instead the dominance of ad valorem over per unit taxation in oligopoly frameworks. Our result is obtained in a simple example which uses a strategic market game formulation to study strategic behavior at a general equilibrium level.     

Insurance and Endogenous Bankruptcy Risk: When is it Rational to Choose Gambling,Insurance, and Potential Bankruptcy?

We examine the coexistence of insurance and gambling in the context of limited liability. We develop a model where actuarially fair insurance is available to a risk-averse decision maker for a liability risk with non-bankrupting severity. The remaining wealth may be invested in a zero expected value risky project (i.e., gambled). The risk of bankruptcy is endogenous since either fully insuring or forgoing the project will guarantee solvency. We show that, for a range of parameters, it is optimal to both insure and gamble. The amounts insured and invested are chosen to create the potential for bankruptcy. Our results are robust to the cases where the risky project can cause bankruptcy without a liability loss and where the risky project’s expected return is nonzero.     

雀巢：优质食品，美好生活

There＇re no unhealthy food. There are unhealthy diets.“世上没有不健康的食物，只有不健康的食谱。”雀巢公司首席执行官Paul Bulcke曾这样说过。