The Valuation of Insurance under Uncertainty: Does Information about Probability Matter?

In a laboratory experiment we test the hypothesis that consumers' valuation of insurance is sensitive to the amount of information available on the probability of a potential loss. In order to test this hypothesis we simulate a market in which we elicit individuals' willingness to pay to insure against a loss characterised either by known or else vague probabilities. We use two distinct treatments by providing subjects with different information over the vague probabilities of loss. In general we find that uncertainty about probabilities has a weak impact on consumers' valuation of insurance. However, additional information about probabilities tends to marginally increase the price individuals are willing to pay to insure themselves. Implications for the insurance market are derived.     

A new approach to measuring universal banking

Noninterest income is widely used in the literature to account for the degree of the universal business model by banks. This paper proposes a novel measure of universal banking constructed using the relative contribution of each operating segment to total assets using an entropy approach. We here propose a novel dataset containing the Universal Banking Index (UBI) at both country and bank levels. Using a sample of international banks, we evaluate the extent to which our proposed metric affects banks’ profitability, stability, liquidity and capitalisation. Results suggest that a higher degree of diversification is associated with increased stability. In addition, banks that feature a more diversified business model, as proxied by the UBI, are also better capitalised, as opposed to banks with high noninterest income share. Our results suggest that regulatory-induced restriction on universal banking may indeed reduce the benefits of risk sharing across operating segments, exposing banks to heightened risks.     

Mining big data in tourism

Quality & Quantity - Knowledge discovery from various sources of information based on different data types for decision and accurate prediction can be rather complex and costly without a...     

Recovery outcomes of schizophrenia patients treated with paliperidone palmitate in a community setting: patient and provider perspectives on recovery

Objectives:

This study evaluated the effect of paliperidone palmitate long-acting injectable (LAI) antipsychotic on recovery-oriented mental health outcomes from the perspective of healthcare providers and patients during the treatment of patients with schizophrenia or schizoaffective disorders.

Methods:

Archival data for patients with a primary diagnosis of schizophrenia or schizoaffective disorder receiving ≥6 months of paliperidone palmitate LAI were retrieved from the electronic medical records system at the Mental Health Center of Denver. Mental health recovery was assessed from both a provider’s (Recovery Markers Inventory [RMI]) and patient’s (Consumer Recovery Measure [CRM]) perspective. A three-level hierarchical linear model (HLM) was utilized to determine changes in CRM and RMI scores by including independent variables in the models: intercept, months from treatment (slope), treatment time period (pretreatment and treatment), age, gender, primary diagnosis, substance abuse diagnosis, concurrent medications, and adherence to paliperidone palmitate LAI.

Results:

A total of 219 patients were identified and included in the study. Results of the final three-level HLMs indicated an overall increase in CRM scores (p?<?0.05), an overall increase (p?<?0.01), and an increased rate of change (p?<?0.05) in RMI scores during the paliperidone palmitate LAI treatment period vs the pre-treatment period.

Limitations:

This study contained a retrospective, non-comparative design, and did not adjust for multiplicity

Conclusions:

The current study demonstrates that changes in recovery-oriented mental health outcomes can be detected following the administration of a specific antipsychotic treatment in persons with schizophrenia or schizoaffective disorders. Furthermore, patients receiving paliperidone palmitate LAI can effectively improve recovery-oriented outcomes, thereby supporting the drug’s use as schizophrenia treatment from a recovery-oriented perspective.     

Extraterritoriality of swaps regulation and regulatory arbitrage

Journal of Regulatory Economics - In this paper, we investigate how the extraterritorial applicability of the US over-the-counter derivatives regulation impacts the off-balance sheet positions of...     

Medication adherence and persistence in the treatment of rheumatoid arthritis with adalimumab and etanercept. Six years of analysis

Objective:

The aim of this study was to evaluate medication adherence and persistence of patients treated with Etanercept and Adalimumab for Rheumatoid Arthritis, also giving economic evaluations on therapy costs for Received Daily Dose (RDD).

Materials and methods:

This retrospective study took into account 6 years from January 1, 2007 to December 31, 2012. Medication adherence was quantified utilizing the ratio between RDD and Prescribed Daily Dose (PDD). Persistence has been reckoned taking into account the actual days of therapy comparing posology with supplied dose. The persistence has been graphed according to Kaplan-Meier method. The cost per RDD was reckoned starting from the expense incurred by Pescara General Hospital.

Results:

Medication adherence gave results in values between 0.88–0.97 for Etanercept and 0.83–0.90 for Adalimumab. The value of persistence was 100% for Etanercept and 90% for Adalimumab for the first year, and 70% for Etanercept and 80% for Adalimumab for the second year. In the 3rd year the persistence for Etanercept was 50% while for Adalimumab it was 60%. In the fourth year the persistence for Etanercept was 21% while for Adalimumab it was 27%. The statistical analysis was conducted using the Log rank test. The average cost per RDD was €32.97 for Etanercept and for Adalimumab it was €32.00 as an average of 6 years.

Conclusion:

The medication adherence was good for both Etanercept and Adalimumab. The rate of persistence decreased strictly in the fourth year of treatment. This data suggests the need for continuous monitoring of patients in treatment with TNF blockers.     

Risky production processes and demand for preventive safety measures under uncertainty

This paper analyzes the behavior of a competitive risk-averse firm that has to choose the optimal level of labor and preventive safety measures. If the firm's injury function includes a random component, then the firm is characterized by a lower demand for labor and by a higher demand for safety measures with respect to a firm whose injury risk is completely under its control. The comparative statics show that shifts in the parameters of the risk distribution will have effects that depend on the absolute risk-aversion functions. The introduction of safety standards will prompt a reduction in the demand for labor while a tightening of the compensation system will have ambiguous effects on the demand for the two inputs.     

Community Energy Taxation to Limit CO2 and Price Distortions: Spain as a Pilot Study

Within the framework of the European Community's policy response to the risks of global climate change, the Commission is analyzing the options for using a mixed energy and CO2 tax as one policy instrument in a package of measures. The taxes planned to cut CO2 emissions are designed as a production tax on energy products, based on their fuel content or, in the case of a CO2 tax, on the CO2 content. Although the precise tax rate has not yet been confirmed, that of US$10 per barrel seems to be the most probable. Against this background, the aim of the study is to investigate, on the basis of the input–output model, the effects of both a general energy and a CO2 tax on the producer prices of the different economic sectors in Spain as a case-study. Additionally, the paper attempts to shed some light on other related issues, such as the evaluation of the effects of energy and CO2 taxes on domestic goods' competitiveness with respect to other non-Community countries.     

Consumers’ Preferences and Attitudes Toward Local Food Products

In recent years, consumers’ interest in local food has significantly increased. Several studies in the agricultural economics and marketing literature have analyzed mainly consumers’ preferences for local food products. In this study, we perform a consumer segmentation with regard to consumer behavior toward local food. We collected data from a survey conducted during summer 2010 in Naples, South Italy. Consumer segments were identified taking account of five aspects: (1) food consumption styles; (2) perception of local food; (3) purchasing motives; (4) perceived quality of local food; and (5) sociodemographic characteristics. They could be profiled as ethnocentric consumers, environmentalists, strict localists, and quality labeling oriented.     

Australia Demonstrates the Rise of Populism is About More than Economics

Votes for established centre‐right and centre‐left political parties are falling across the developed world. Australia is not immune from this trend: in the 2016 federal election, more people voted for minor parties than at any point since the Second World War. Australia is an interesting case study for the rest of the world on the origins of populist support. Political scientists have struggled to separate the effects of cultural shifts and poor economic outcomes (low wages and rising inequality) in many countries because these shifts have occurred simultaneously. However, in Australia the economy was relatively healthy during the period of rising minor party support. Our analysis suggests that falling trust in government and a backlash against the pace of social change explain much of the collapse in support for the political mainstream.