Ownership structure and hospital service costs and fees: A decomposition approach

This paper analyzes hospital characteristics that are associated with higher average costs and charges for venipuncture, computed tomography procedures (computerized axial tomography [CAT] scans), and electrocardiograms (EKG). Using data from a Medicare database, our results indicate that higher wages, larger hospital sizes, and greater service quality are associated with higher procedure costs, whereas system membership is generally associated with lower procedure costs. Blinder‐type decompositions, which are the main focus of this study, suggest (a) that venipuncture costs are about 17% to 19% lower at proprietary hospitals than at nonprofit or government hospitals, (b) CAT scan costs are about 6% to 12% lower at nonprofit hospitals than at proprietary and government hospitals, and (c) that EKG costs are about 3% lower at proprietary hospitals than at nonprofit or government hospitals. Lastly, large portions of each of these differences are found to be due to both differences in mean values of the hospitals' characteristics by ownership type and differences in the mechanism by which the hospitals' characteristics are transmitted to procedure costs.     

Commodity Taxes, Wage Determination, and Profits

We examine the effects of two different types of commodity taxation, specific and ad valorem, on wages and profits. We analyze two models of wage determination, one with efficiency wage setting and one with union-firm bargaining. In the former, a (locally) revenue-neutral shift from specific to ad valorem taxation leads to an increase in both employment and wages and a reduction in profitability. In the latter, the effect on wages and profits may be reversed: predominantly ad valorem taxation raises employment but lowers wages, and under certain circumstances, the net effect is an increase in profits.     

Product differentiation, cost‐reducing mergers, and consumer welfare

Abstract.  Cost synergies are an explicitly recognized justification for a two‐firm merger, and empirical techniques are now widely used to assess the impact of cost‐reducing mergers on prices and welfare in the post‐merger market. We show that if the merger occurs in a vertically product differentiated market, then the merger will lead to a reduction in product offerings that limits the usefulness of pre‐merger empirical estimates. Indeed, we further show that in such markets, two‐firm mergers will typically lead to higher prices regardless of the merger's cost savings. JEL classification: L10, L41     

Household migration in the Southern Cone: the case of Paraguay

This study of migration from Paraguay to Argentina focuses on urban to urban migration and uses about 1300 interviews collected during September 1983 to May 1984 for constructing a profile of the migrants. Paraguayan migration to Argentina has historical roots. The first flows were in 1936 and 1947 and were due to war. Migrants tended to settle in Formosa and Misiones provinces in the northern region. The second waves that occurred during the 1950s, 1960s, and 1970s were to Buenos Aires. Most migration during the more recent years was motivated by economics. It is likely that the key factors were push factors in Paraguay. Migration policies in sending and receiving countries are lax. Half of the interviews were conducted among families in Gran Buenos Aires, and half were conducted among families in Asuncion, Paraguay. 33% of migrants in Argentina reported Asuncion as their last residence. Many migrants were from departments bordering on Argentina. Only 222 of the 543 heads of household who had been employed prior to departure reported that farm work had been their employment. Migration is precipitated by both economic and noneconomic factors. Logistic model findings indicate that urban migrant heads of households tended to be younger and less educated than nonmigrants. Migrants tended to be single heads of households with relatively few children. Rural migrants were less likely to be female and were more likely to have a larger family size than urban migrants. Heads of household with fewer continuous years of employment were more likely to migrate. Findings from data at the time of the interview suggest that higher relative wages were a pull force, when age, sex, education, marital status, size of business, and job seniority were controlled for. The recent democratization in Paraquay is like to attract return migrants, if urban employment opportunities are available.     

‘I didn't feel like I was alone anymore’: evaluating self‐organised employee coping practices conducted via Facebook

The long‐term fracturing of the labour movement has led to increased attention to employee coping practices under new management practices and labour processes. However, the literature caters little for the recent rise of employees taking to social networking sites (SNSs), such as Facebook, to find ways to cope with the pressures of contemporary employment. To explore the self‐organised coping qualities of SNSs, interviews were conducted with front line workers, employed by a large anti‐trade union US retailer, who contribute to a self‐organised Facebook group set up as a place for fellow employees to deal with collective employment‐related problems. The main findings suggest employee self‐organised Facebook groups represent an important development and extension to the coping practices available to individual and groups of employees. The main implication of the findings is that Facebook groups appear to strengthen and widen the options for employee resilience in an age of continuing trade union retreat.     

Evaluating universal primary education in Uganda: School fee abolition and educational outcomes

This paper analyzes the effect of lifting primary school fees on educational attainment in Uganda. After the abolishment of school fees in 1997, the enrollment rate more than doubled. Two decades later, we know little about the effect of the policy on educational attainment. With recent data on eight cohorts exposed to free education, we analyze the impact of the policy on years of completed primary school, completion of primary school, and transitioning to secondary school. We use a straightforward regression analysis with cohort dummies and household fixed effects to control for unobserved heterogeneity. We find that lifting school fees had no effect on the years of primary school achievement and the likelihood of primary school completion. We find some weak evidence that the likelihood of those who completed primary education to start secondary school increased after Universal Primary Education.     

COVID-19 impact on fruit and vegetable markets

Canadian fruit and vegetable markets were significantly impacted by the spread of the novel coronavirus SARS-CoV-2 (and COVID-19 disease), beginning in March 2020. Due to the closure of restaurants, bars, and schools, produce growers and distributors were forced to shift supplies almost entirely from the foodservice to the retail channel. Shippers reported labor and logistical constraints in making the change, but the fresh produce supply chain remained robust. In the long term, we expect lasting changes in consumers’ online food-purchasing habits, heightened constraints on immigrant labor markets, and tighter concentration in fresh produce distribution and perhaps retailing.     

Jump tails,extreme dependencies,and the distribution of stock returns

We provide a new framework for estimating the systematic and idiosyncratic jump tail risks in financial asset prices. Our estimates are based on in-fill asymptotics for directly identifying the jumps, together with Extreme Value Theory (EVT) approximations and methods-of-moments for assessing the tail decay parameters and tail dependencies. On implementing the procedures with a panel of intraday prices for a large cross-section of individual stocks and the S&P 500 market portfolio, we find that the distributions of the systematic and idiosyncratic jumps are both generally heavy-tailed and close to symmetric, and show how the jump tail dependencies deduced from the high-frequency data together with the day-to-day variation in the diffusive volatility account for the “extreme” joint dependencies observed at the daily level.     

ICT growth effects at the industry level: A comparison between the US and the EU

This is an empirical study on the growth impact of Information and Communication Technologies using industry-level data for the US and the EU industries over the period 1980-2000. A panel data approach is employed to estimate the ICT effect using the system GMM and the pooled mean group panel data estimators. The results vary depending on the period, the region, and the type of industry considered. The GMM estimates suggest a significant ICT effect on growth during the 90s both in the US and in the EU. This effect for the EU was strong in the early 90s and weakened afterwards, as opposed to the US where it strengthened in the late 90s. The results of the pooled mean group estimator confirm that the long run growth contribution of ICT was significantly positive in the industries of both regions and over the entire period 1980-2000. However, it seems that the productivity effects of ICT are mainly present in the industries which are either ICT producers or heavy ICT users.