Can Auto Liability Insurance Purchases Signal Risk Attitude?

Size: px
Start display at page:

Download "Can Auto Liability Insurance Purchases Signal Risk Attitude?"

Transcription

1 Internatonal Journal of Busness and Economcs, 2011, Vol. 10, No. 2, Can Auto Lablty Insurance Purchases Sgnal Rsk Atttude? Chu-Shu L Department of Internatonal Busness, Asa Unversty, Tawan Sheng-Chang Peng * Department of Rsk Management and Insurance, Feng Cha Unversty, Tawan Key words: rsk averson; lablty nsurance; automoble nsurance JEL classfcaton: D12; D82 1. Introducton In the last decade, extensve lterature has been devoted to analyzng the asymmetrc nformaton problem rased by Rothschld and Stgltz (1976) to test f there s a postve relaton between nsurance coverage and rsk. Among the assumptons requred under ther framework, homogenety n all dmensons s the fundamental one. However, rsk averson, although well acknowledged to be unobservable, s an mportant factor nfluencng the results of ther model. For example, Smart (2000) and Snow (2009) provde theoretcal proof to show that when rsk averson s taken nto account, the tradtonal argument of the postve relaton between rsk and coverage mght not exst. Therefore, the emprcal models wthout a rsk averson factor are not robust. In practce, the measurement of rsk averson, provded by Arrow (1970) and Pratt (1964), requres ndvdual wealth data for calculaton, but ths nformaton s sometmes dffcult to obtan. In the emprcal research assocated wth nsurance markets, there are two common approaches to measure rsk averson. One s a rsky behavor questonnare. Usng rsky behavor as proxes of rsk averson, the relatonshps between rsk averson and rsk occurrence or nsurance coverage are tested. The other approach, as used by Dreze (1981), Cohen and Enav (2007), and Sato (2006), uses deductbles to make nferences about rsk averson. However, both approaches requre sophstcated procedures or smplfed assumptons. In two semnal works, Puelz and Snow (1994) and Donne et al. (2001) use lablty nsurance as a proxy varable of wealth, representng rsk averson to test asymmetrc nformaton. Snce lablty nsurance s usually sold together wth other automoble nsurance as a bundle, the data s readly avalable and easly appled. * Correspondence to: Department of Rsk Management and Insurance, Feng Cha Unversty, Tachung, Tawan. E-mal: We would lke to thank the edtors of ths journal for ther helpful comments.

2 160 Internatonal Journal of Busness and Economcs Whle feasble, the hypothess of whether automoble lablty nsurance purchases can sgnal rsk atttude has not been formally tested. The purpose of ths study s to examne f lablty nsurance contans nformaton of rsk averson and f t s correlated wth nsurance rsk. We focus on the relatonshp between comprehensve vehcle physcal damage nsurance (VDI) and voluntary thrd-party lablty nsurance (VLI) n the Tawanese automoble nsurance market. 2. Data and Emprcal Approach Our data from the Tawan Insurance Insttute s ndvdual-level nformaton that conssts of VDI and VLI polces sold by all Tawanese nonlfe nsurers n Our sample ncludes 212,481 VDI polces. Table 1. Descrptve Statstcs of Vehcle Clam Varables Vehcle coverage level t-statstc for Hgh vehcle coverage Low vehcle coverage Varable dfference Wth vehcle clam 0.54 (0.50) 0.48 (0.50) Vehcle clam payment (31.22) (34.54) 6.91 Vehcle clam count 0.76 (0.86) 0.59 (0.70) Observatons 170,964 (80.46%) 41,517 (19.54%) Lablty nsurance status Varable Wth lablty nsurance polcy Wthout lablty nsurance polcy t-statstc for dfference Wth vehcle clam 0.53 (0.50) 0.51 (0.50) 4.16 Vehcle clam payment (31.74) (34.74) 2.29 Vehcle clam count 0.73 (0.83) 0.71 (0.85) 1.51 Observatons 201,644 (94.90%) 10,837 (5.10%) Lablty coverage level t-statstc for Hgh lablty coverage Low lablty coverage Varable dfference Wth vehcle clam 0.55 (0.50) 0.53 (0.50) 6.76 Vehcle clam payment (37.39) (29.83) Vehcle clam count 0.74 (0.85) 0.72 (0.83) 5.39 Observatons 46,278 (21.78%) 155,366 (77.05%) Notes: Standard devatons are n parentheses. The unt of vehcle clam payment s NTD 1,000. Table 1 provdes descrptve statstcs. We focus on the correlatons of both vehcle coverage and lablty coverage on vehcle rsk. For VDI polces, we defne those wth a deductble as low coverage and those wthout a deductble as hgh coverage. To correct for the problem of nconsstency n coverage and clams, we subtract the deductble from those clams wthout a deductble. Our sample shows that polcyholders wth hgh VDI have hgher vehcle rsk than those wth low VDI,

3 Chu-Shu L and Sheng-Chang Peng 161 whch s consstent wth the postve coverage-rsk correlaton. For the rsk averson role of lablty coverage, we also show vehcle rsk dfferences between polcyholders who purchase VLI polces and those who do not. Snce the average VLI coverage per person s NTD 1.92 mllon, and around 32% of polces are concentrated around NTD 2 mllon (not shown), we defne hgh lablty coverage as a covered amount over NTD 2 mllon. Polcyholders wth hgh lablty coverage have hgher vehcle rsk than those wth low lablty coverage. Ths s not consstent wth the hypothess that lablty coverage s a proxy of rsk averson. However, these results are prelmnary. Further study s needed to control for addtonal nformaton assocated wth the characterstcs of both polcyholders and vehcles. To nvestgate whether VLI coverage s an approprate proxy of rsk averson for VDI, we employ the Heckman model to estmate the correlaton between vehcle rsk and lablty coverage. There s potental endogenety n purchasng both types of polces, and the Heckman model can correct the problem of selecton bas. Therefore, we frst specfy a selecton functon for purchasng lablty coverage status, estmatng parameters by a probt model to compute the nverse Mlls rato for correctng endogenety bas. The model can be wrtten as: Prob(Wth lablty coverage = 1) = Φ( γ ), (1) Z where Wth lablty coverage s a bnary varable that equals 1 f ndvdual purchases VDI wth VLI and 0 otherwse, Z s a vector of control varables that ncludes demographc characterstcs of the polcyholder (age, gender, and martal status) and characterstcs of the vehcle (car age, car model, and exhaust class), γ s a vector of parameters, and Φ s the standard normal cumulatve dstrbuton. The nverse Mlls rato s ncluded n the clam behavor model and the followng equaton s estmated: Y = δ X + δ Hgh vehcle coverage + δ Wth lablty coverage δ Lablty amount + δλ+ ε, 4 5 (2) where X s a vector of control varables, Hgh vehcle coverage s a dummy varable that equals 1 f ndvdual purchases a VDI polcy wthout deductble and 0 otherwse, Lablty amount s the covered amount of VLI polcy, λ s the nverse Mlls rato, and ε s an error term. We employ three response varables ( Y ): Wth vehcle clam (.e., at least one clam s fled), Vehcle clam payment, and Vehcle clam count. 3. Emprcal Results Table 2 shows the estmated results of VDI and VLI on vehcle rsk. Models 1 and 2 examne the coverage-rsk correlaton wthout ncludng the nverse Mlls rato. To correct selecton bas, Models 3 5 explore the sutablty of VLI coverage as a measure of rsk averson. The sgnfcant coeffcent of λ shows the presence of

4 162 Internatonal Journal of Busness and Economcs endogenety bas for both types of polces. Table 2. Estmated Results of Vehcle Coverage and Lablty Coverage on Vehcle Rsk Model 1 Model 2 Model 3 Model 4 Model 5 Panel A: Response varable s whether at least one vehcle physcal damage clam s fled Hgh vehcle coverage 0.095*** 0.095*** 0.095*** 0.095*** 0.095*** (0.008) (0.008) (0.008) (0.008) (0.008) Wth lablty coverage 0.071*** 0.867*** 0.871*** 0.832*** (0.013) (0.214) (0.214) (0.215) Lablty amount ** (0.003) (0.006) Lablty amount Hgh lablty coverage 0.012*** (0.005) λ 0.438*** 0.441*** 0.433*** (0.100) (0.100) (0.100) Observatons 212, , , , ,481 Panel B: Response varable s vehcle clam payment Hgh vehcle coverage 5.371*** 5.372*** 5.372** 5.315*** 5.338*** (0.333) (0.333) (0.333) (0.333) (0.333) Wth lablty coverage 0.926* ** * * (0.548) (8.858) (8.863) (8.886) Lablty amount 0.369*** 0.435* (0.118) (0.262) Lablty amount Hgh lablty coverage 0.643*** (0.187) λ 8.978** 8.212** 7.721* (4.130) (4.138) (4.140) Observatons 212, , , , ,481 Panel C: Response varable s vehcle clam count Hgh vehcle coverage 0.189*** 0.189*** 0.189*** 0.190*** 0.191*** (0.009) (0.009) (0.009) (0.009) (0.009) Wth lablty coverage 0.060*** 0.711*** 0.727*** 0.677*** (0.014) (0.233) (0.233) (0.233) Lablty amount 0.006** 0.025*** (0.003) (0.007) Lablty amount Hgh lablty coverage 0.015*** (0.005) λ 0.361*** 0.373*** 0.362*** (0.108) (0.109) (0.109) Observatons 212, , , , ,481 Notes: Standard errors are n parentheses. ***, **, and * denote statstcal sgnfcance at the 1%, 5%, and 10% levels, respectvely. The results are estmated by probt n Panel A and tobt n Panels B and C. The lablty amount s n NTD 1 mllon.

5 Chu-Shu L and Sheng-Chang Peng 163 Model 1 s one of the standard tests of asymmetrc nformaton on automoble nsurance. We obtan consstent results-postve coverage-rsk correlaton-for three measures of vehcle rsk condtonal on all nformaton used by nsurers for rsk classfcaton, whch dsplays the presence of asymmetrc nformaton. Relable results are shown for other models when we correct for selecton bas. We nvestgate the effect of VLI coverage on vehcle rsk by observng whether polcyholders concurrently purchase VDI and VLI. In Panel A, Model 2 shows that polcyholders wth VLI coverage have hgher vehcle rsk wthout consderng endogenety bas; however, a negatve correlaton s shown n Model 3 when the endogenety bas s corrected. Panels B and C have robust fndngs. Ths s consstent wth the effect of rsk averson. Model 4 n Panel A shows that polcyholders who purchase more VLI coverage have a lower tendency to fle a vehcle clam; however, ths s not statstcally sgnfcant. When vehcle rsk s measured by clam count, the effect of the lablty amount n Panel C s sgnfcantly negatve. However, n Panel B, vehcle clam payment and the lablty amount are sgnfcantly and postvely correlated. These estmated results are mxed n Model 4. We therefore further dentfy whether the effect of the lablty amount changes under dfferent extents of lablty coverage. We separate samples nto two groups based on VLI amount. The dummy varable, Hgh lablty coverage, equals 1 f an ndvdual purchases VLI wth an amount greater than 2 mllon and 0 otherwse. Usng the nteracton term between Lablty amount and Hgh lablty coverage, Model 5 n Panel A shows a sgnfcantly negatve correlaton between the lablty amount and the possblty of flng a vehcle clam when the lablty amount s equal to or less than NTD 2 mllon. Due to the postve effect of the nteracton term, the negatve correlaton s offset when the lablty amount s greater than NTD 2 mllon. 1 However, we fnd a sgnfcantly negatve correlaton n Panel C for two extents of lablty coverage. 2 Dependent on three rsk measure varables, there are consstently negatve correlatons under low lablty coverage. As polcyholders purchase relatvely low lablty coverage, the covered lablty amount seems to be approprate to measure rsk averson n the Tawanese automoble nsurance market. Those polcyholders who purchase hgh lablty coverage have fewer small vehcle clams but hgher clam payments. They mght actually be hgh rsk, and thus the rsk averson hypothess cannot be appled. 4. Conclusons Based on the emprcal results, we fnd that the role of voluntary thrd-party lablty nsurance n automoble nsurance can be presented n varous dmensons. In terms of purchasng or not purchasng VLI, the former contans rsk averson nformaton. However, when the amount of VLI s consdered, a hgher VLI amount may not be able to provde a postve sgnal of rsk averson.

6 164 Internatonal Journal of Busness and Economcs Notes 1. The coeffcent assocated wth Lablty amount when the covered lablty amount s greater than NTD 2 mllon s = wth a standard error of The coeffcent assocated wth Lablty amount when the covered lablty amount s greater than NTD 2 mllon s = wth a standard error of References Arrow, K. J., (1970), Essays n the Theory of Rsk Bearng, Amsterdam: North-Holland. Cohen, A. and L. Enav, (2007), Estmatng Rsk Preferences from Deductble Choce, Amercan Economc Revew, 97(3), Donne, G., C. Gouréroux, and C. Vanasse, (2001), Testng for Evdence of Adverse Selecton n the Automoble Insurance Market: A Comment, Journal of Poltcal Economy, 109(2), Dreze, J. H., (1981), Inferrng Rsk Tolerance from Deductbles n Insurance Contracts, Geneva Papers on Rsk and Insurance, 20(1), Pratt, J. W., (1964), Rsk Averson n the Small and n the Large, Econometrca, 32(1-2), Puelz, R. and A. Snow, (1994), Evdence on Adverse Selecton: Equlbrum Sgnalng and Cross-Subsdzaton n the Insurance Market, Journal of Poltcal Economy, 102(2), Rothschld, M. and J. E. Stgltz, (1976), Equlbrum n Compettve Insurance Markets: An Essay on the Economcs of Imperfect Informaton, Quarterly Journal of Economcs, 90(4), Sato, K., (2006), An Emprcal Analyss of the Roles of Rsk Averson n the Automoble Insurance Market, Paper presented at Amercan Rsk and Insurance Assocaton 2006 Annual Meetng, Washngton D.C. Smart, M., (2000), Compettve Insurance Markets wth Two Unobservables, Internatonal Economc Revew, 41(1), Snow, A., (2009), On the Possblty of Proftable Self-Selecton Contracts n Compettve Insurance Markets, Journal of Rsk and Insurance, 76(2),

TESTING FOR EVIDENCE OF ADVERSE SELECTION IN DEVELOPING AUTOMOBILE INSURANCE MARKET. Oksana Lyashuk

TESTING FOR EVIDENCE OF ADVERSE SELECTION IN DEVELOPING AUTOMOBILE INSURANCE MARKET. Oksana Lyashuk TESTING FOR EVIDENCE OF ADVERSE SELECTION IN DEVELOPING AUTOMOBILE INSURANCE MARKET by Oksana Lyashuk A thess submtted n partal fulfllment of the requrements for the degree of Master of Arts n Economcs

More information

Study on CET4 Marks in China s Graded English Teaching

Study on CET4 Marks in China s Graded English Teaching Study on CET4 Marks n Chna s Graded Englsh Teachng CHE We College of Foregn Studes, Shandong Insttute of Busness and Technology, P.R.Chna, 264005 Abstract: Ths paper deploys Logt model, and decomposes

More information

Financial Instability and Life Insurance Demand + Mahito Okura *

Financial Instability and Life Insurance Demand + Mahito Okura * Fnancal Instablty and Lfe Insurance Demand + Mahto Okura * Norhro Kasuga ** Abstract Ths paper estmates prvate lfe nsurance and Kampo demand functons usng household-level data provded by the Postal Servces

More information

HARVARD John M. Olin Center for Law, Economics, and Business

HARVARD John M. Olin Center for Law, Economics, and Business HARVARD John M. Oln Center for Law, Economcs, and Busness ISSN 1045-6333 ASYMMETRIC INFORMATION AND LEARNING IN THE AUTOMOBILE INSURANCE MARKET Alma Cohen Dscusson Paper No. 371 6/2002 Harvard Law School

More information

DO LOSS FIRMS MANAGE EARNINGS AROUND SEASONED EQUITY OFFERINGS?

DO LOSS FIRMS MANAGE EARNINGS AROUND SEASONED EQUITY OFFERINGS? DO LOSS FIRMS MANAGE EARNINGS AROUND SEASONED EQUITY OFFERINGS? Fernando Comran, Unversty of San Francsco, School of Management, 2130 Fulton Street, CA 94117, Unted States, fcomran@usfca.edu Tatana Fedyk,

More information

Testing for Asymmetric Information in Tunisian Automobile Insurance Market

Testing for Asymmetric Information in Tunisian Automobile Insurance Market ISSN 039-117 (onlne) ISSN 039-9340 (prnt) Medterranean Journal of Socal Scences MCSER Publshng, Rome-Italy May 015 Testng for Asymmetrc Informaton n Tunsan Automoble Insurance Market Do:10.5901/mjss.015.v6n3s1p455

More information

Evidence for Adverse Selection in the Automobile Insurance Market

Evidence for Adverse Selection in the Automobile Insurance Market Evdence for Adverse Selecton n te Automoble Insurance Market Racel J. Huang * Assstant Professor, Fnance Department Mng Cuan Unversty, Tape, Tawan Larry Y. Tzeng Professor, Department of Fnance Natonal

More information

Covariate-based pricing of automobile insurance

Covariate-based pricing of automobile insurance Insurance Markets and Companes: Analyses and Actuaral Computatons, Volume 1, Issue 2, 2010 José Antono Ordaz (Span), María del Carmen Melgar (Span) Covarate-based prcng of automoble nsurance Abstract Ths

More information

Analysis of Premium Liabilities for Australian Lines of Business

Analysis of Premium Liabilities for Australian Lines of Business Summary of Analyss of Premum Labltes for Australan Lnes of Busness Emly Tao Honours Research Paper, The Unversty of Melbourne Emly Tao Acknowledgements I am grateful to the Australan Prudental Regulaton

More information

Evidence of Adverse Selection in Automobile Insurance Markets

Evidence of Adverse Selection in Automobile Insurance Markets Evdence of Adverse Selecton n Automoble Insurance Markets by Georges Donne, Chrstan Gouréroux and Charles Vanasse Workng Paper 98-09 Aprl 1998 ISSN : 106-330 Ths research was fnanced by CREST and FFSA,

More information

An Alternative Way to Measure Private Equity Performance

An Alternative Way to Measure Private Equity Performance An Alternatve Way to Measure Prvate Equty Performance Peter Todd Parlux Investment Technology LLC Summary Internal Rate of Return (IRR) s probably the most common way to measure the performance of prvate

More information

MODELLING ACCIDENT OCCURRENCE IN CAR INSURANCE IMPLEMENTATION ON TUNISIAN DATA

MODELLING ACCIDENT OCCURRENCE IN CAR INSURANCE IMPLEMENTATION ON TUNISIAN DATA Modellng Asan-Afrcan Accdent Journal Occurrence of Economcs n Car and Insurance Econometrcs, Implementaton Vol. 12, No. on 2, Tunsan 2012: 395-406 Data 395 MODELLING ACCIDENT OCCURRENCE IN CAR INSURANCE

More information

SIMPLE LINEAR CORRELATION

SIMPLE LINEAR CORRELATION SIMPLE LINEAR CORRELATION Smple lnear correlaton s a measure of the degree to whch two varables vary together, or a measure of the ntensty of the assocaton between two varables. Correlaton often s abused.

More information

ADVERSE SELECTION IN INSURANCE MARKETS: POLICYHOLDER EVIDENCE FROM THE U.K. ANNUITY MARKET

ADVERSE SELECTION IN INSURANCE MARKETS: POLICYHOLDER EVIDENCE FROM THE U.K. ANNUITY MARKET ADVERSE SELECTION IN INSURANCE MARKETS: POLICYHOLDER EVIDENCE FROM THE U.K. ANNUITY MARKET Amy Fnkelsten Harvard Unversty and NBER James Poterba MIT and NBER Revsed May 2003 ABSTRACT In ths paper, we nvestgate

More information

ADVERSE SELECTION IN INSURANCE MARKETS: POLICYHOLDER EVIDENCE FROM THE U.K. ANNUITY MARKET *

ADVERSE SELECTION IN INSURANCE MARKETS: POLICYHOLDER EVIDENCE FROM THE U.K. ANNUITY MARKET * ADVERSE SELECTION IN INSURANCE MARKETS: POLICYHOLDER EVIDENCE FROM THE U.K. ANNUITY MARKET * Amy Fnkelsten Harvard Unversty and NBER James Poterba MIT and NBER * We are grateful to Jeffrey Brown, Perre-Andre

More information

Two Faces of Intra-Industry Information Transfers: Evidence from Management Earnings and Revenue Forecasts

Two Faces of Intra-Industry Information Transfers: Evidence from Management Earnings and Revenue Forecasts Two Faces of Intra-Industry Informaton Transfers: Evdence from Management Earnngs and Revenue Forecasts Yongtae Km Leavey School of Busness Santa Clara Unversty Santa Clara, CA 95053-0380 TEL: (408) 554-4667,

More information

benefit is 2, paid if the policyholder dies within the year, and probability of death within the year is ).

benefit is 2, paid if the policyholder dies within the year, and probability of death within the year is ). REVIEW OF RISK MANAGEMENT CONCEPTS LOSS DISTRIBUTIONS AND INSURANCE Loss and nsurance: When someone s subject to the rsk of ncurrng a fnancal loss, the loss s generally modeled usng a random varable or

More information

Causal, Explanatory Forecasting. Analysis. Regression Analysis. Simple Linear Regression. Which is Independent? Forecasting

Causal, Explanatory Forecasting. Analysis. Regression Analysis. Simple Linear Regression. Which is Independent? Forecasting Causal, Explanatory Forecastng Assumes cause-and-effect relatonshp between system nputs and ts output Forecastng wth Regresson Analyss Rchard S. Barr Inputs System Cause + Effect Relatonshp The job of

More information

Testing Adverse Selection Using Frank Copula Approach in Iran Insurance Markets

Testing Adverse Selection Using Frank Copula Approach in Iran Insurance Markets Journal of mathematcs and computer Scence 5 (05) 54-58 Testng Adverse Selecton Usng Frank Copula Approach n Iran Insurance Markets Had Safar Katesar,, Behrouz Fath Vajargah Departmet of Statstcs, Shahd

More information

Inequality and The Accounting Period. Quentin Wodon and Shlomo Yitzhaki. World Bank and Hebrew University. September 2001.

Inequality and The Accounting Period. Quentin Wodon and Shlomo Yitzhaki. World Bank and Hebrew University. September 2001. Inequalty and The Accountng Perod Quentn Wodon and Shlomo Ytzha World Ban and Hebrew Unversty September Abstract Income nequalty typcally declnes wth the length of tme taen nto account for measurement.

More information

Traditional versus Online Courses, Efforts, and Learning Performance

Traditional versus Online Courses, Efforts, and Learning Performance Tradtonal versus Onlne Courses, Efforts, and Learnng Performance Kuang-Cheng Tseng, Department of Internatonal Trade, Chung-Yuan Chrstan Unversty, Tawan Shan-Yng Chu, Department of Internatonal Trade,

More information

Chapter 8 Group-based Lending and Adverse Selection: A Study on Risk Behavior and Group Formation 1

Chapter 8 Group-based Lending and Adverse Selection: A Study on Risk Behavior and Group Formation 1 Chapter 8 Group-based Lendng and Adverse Selecton: A Study on Rsk Behavor and Group Formaton 1 8.1 Introducton Ths chapter deals wth group formaton and the adverse selecton problem. In several theoretcal

More information

Gender differences in revealed risk taking: evidence from mutual fund investors

Gender differences in revealed risk taking: evidence from mutual fund investors Economcs Letters 76 (2002) 151 158 www.elsever.com/ locate/ econbase Gender dfferences n revealed rsk takng: evdence from mutual fund nvestors a b c, * Peggy D. Dwyer, James H. Glkeson, John A. Lst a Unversty

More information

Quality Adjustment of Second-hand Motor Vehicle Application of Hedonic Approach in Hong Kong s Consumer Price Index

Quality Adjustment of Second-hand Motor Vehicle Application of Hedonic Approach in Hong Kong s Consumer Price Index Qualty Adustment of Second-hand Motor Vehcle Applcaton of Hedonc Approach n Hong Kong s Consumer Prce Index Prepared for the 14 th Meetng of the Ottawa Group on Prce Indces 20 22 May 2015, Tokyo, Japan

More information

A DYNAMIC ANALYSIS OF

A DYNAMIC ANALYSIS OF A DYNAMIC ANALYSIS OF THE DEMAND FOR LIFE INSURANCE Andre P. Lebenberg (contact author) Faculty of Fnance The Unversty of Msssspp Oxford, MS 38677 alebenberg@bus.olemss.edu Tel: 662.915.3844 James M. Carson

More information

PSYCHOLOGICAL RESEARCH (PYC 304-C) Lecture 12

PSYCHOLOGICAL RESEARCH (PYC 304-C) Lecture 12 14 The Ch-squared dstrbuton PSYCHOLOGICAL RESEARCH (PYC 304-C) Lecture 1 If a normal varable X, havng mean µ and varance σ, s standardsed, the new varable Z has a mean 0 and varance 1. When ths standardsed

More information

The covariance is the two variable analog to the variance. The formula for the covariance between two variables is

The covariance is the two variable analog to the variance. The formula for the covariance between two variables is Regresson Lectures So far we have talked only about statstcs that descrbe one varable. What we are gong to be dscussng for much of the remander of the course s relatonshps between two or more varables.

More information

Management Quality, Financial and Investment Policies, and. Asymmetric Information

Management Quality, Financial and Investment Policies, and. Asymmetric Information Management Qualty, Fnancal and Investment Polces, and Asymmetrc Informaton Thomas J. Chemmanur * Imants Paegls ** and Karen Smonyan *** Current verson: December 2007 * Professor of Fnance, Carroll School

More information

An Analysis of Factors Influencing the Self-Rated Health of Elderly Chinese People

An Analysis of Factors Influencing the Self-Rated Health of Elderly Chinese People Open Journal of Socal Scences, 205, 3, 5-20 Publshed Onlne May 205 n ScRes. http://www.scrp.org/ournal/ss http://dx.do.org/0.4236/ss.205.35003 An Analyss of Factors Influencng the Self-Rated Health of

More information

The impact of hard discount control mechanism on the discount volatility of UK closed-end funds

The impact of hard discount control mechanism on the discount volatility of UK closed-end funds Investment Management and Fnancal Innovatons, Volume 10, Issue 3, 2013 Ahmed F. Salhn (Egypt) The mpact of hard dscount control mechansm on the dscount volatlty of UK closed-end funds Abstract The mpact

More information

PROFIT RATIO AND MARKET STRUCTURE

PROFIT RATIO AND MARKET STRUCTURE POFIT ATIO AND MAKET STUCTUE By Yong Yun Introducton: Industral economsts followng from Mason and Ban have run nnumerable tests of the relaton between varous market structural varables and varous dmensons

More information

FREQUENCY OF OCCURRENCE OF CERTAIN CHEMICAL CLASSES OF GSR FROM VARIOUS AMMUNITION TYPES

FREQUENCY OF OCCURRENCE OF CERTAIN CHEMICAL CLASSES OF GSR FROM VARIOUS AMMUNITION TYPES FREQUENCY OF OCCURRENCE OF CERTAIN CHEMICAL CLASSES OF GSR FROM VARIOUS AMMUNITION TYPES Zuzanna BRO EK-MUCHA, Grzegorz ZADORA, 2 Insttute of Forensc Research, Cracow, Poland 2 Faculty of Chemstry, Jagellonan

More information

Searching and Switching: Empirical estimates of consumer behaviour in regulated markets

Searching and Switching: Empirical estimates of consumer behaviour in regulated markets Searchng and Swtchng: Emprcal estmates of consumer behavour n regulated markets Catherne Waddams Prce Centre for Competton Polcy, Unversty of East Angla Catherne Webster Centre for Competton Polcy, Unversty

More information

Do Banks Use Private Information from Consumer Accounts? Evidence of Relationship Lending in Credit Card Interest Rate Heterogeneity

Do Banks Use Private Information from Consumer Accounts? Evidence of Relationship Lending in Credit Card Interest Rate Heterogeneity Do Banks Use Prvate Informaton from Consumer Accounts? Evdence of Relatonshp Lendng n Credt Card Interest Rate Heterogenety Sougata Kerr, Stephen Cosslett, Luca Dunn December, 2004 Author nformaton: Kerr,

More information

APPLICATION OF PROBE DATA COLLECTED VIA INFRARED BEACONS TO TRAFFIC MANEGEMENT

APPLICATION OF PROBE DATA COLLECTED VIA INFRARED BEACONS TO TRAFFIC MANEGEMENT APPLICATION OF PROBE DATA COLLECTED VIA INFRARED BEACONS TO TRAFFIC MANEGEMENT Toshhko Oda (1), Kochro Iwaoka (2) (1), (2) Infrastructure Systems Busness Unt, Panasonc System Networks Co., Ltd. Saedo-cho

More information

THE EFFECT OF PREPAYMENT PENALTIES ON THE PRICING OF SUBPRIME MORTGAGES

THE EFFECT OF PREPAYMENT PENALTIES ON THE PRICING OF SUBPRIME MORTGAGES THE EFFECT OF PREPAYMENT PENALTIES ON THE PRICING OF SUBPRIME MORTGAGES Gregory Ellehausen, Fnancal Servces Research Program George Washngton Unversty Mchael E. Staten, Fnancal Servces Research Program

More information

Sulaiman Mouselli Damascus University, Damascus, Syria. and. Khaled Hussainey* Stirling University, Stirling, UK

Sulaiman Mouselli Damascus University, Damascus, Syria. and. Khaled Hussainey* Stirling University, Stirling, UK CORPORATE GOVERNANCE, ANALYST FOLLOWING AND FIRM VALUE Sulaman Mousell Damascus Unversty, Damascus, Syra and Khaled Hussaney* Strlng Unversty, Strlng, UK Ths paper s accepted for publcaton at: Corporate

More information

High LTV Loans and Credit Risk

High LTV Loans and Credit Risk Hgh LTV Loans and Credt Rsk Brent Ambrose Professor of Fnance and Kentucky Real Estate Professor Unversty of Kentucky Lexngton, KY 40506-0034 (859) 257-7726 ambrose@uky.edu and Anthony B. Sanders John

More information

Questions that we may have about the variables

Questions that we may have about the variables Antono Olmos, 01 Multple Regresson Problem: we want to determne the effect of Desre for control, Famly support, Number of frends, and Score on the BDI test on Perceved Support of Latno women. Dependent

More information

Estimating Total Claim Size in the Auto Insurance Industry: a Comparison between Tweedie and Zero-Adjusted Inverse Gaussian Distribution

Estimating Total Claim Size in the Auto Insurance Industry: a Comparison between Tweedie and Zero-Adjusted Inverse Gaussian Distribution Estmatng otal Clam Sze n the Auto Insurance Industry: a Comparson between weede and Zero-Adjusted Inverse Gaussan Dstrbuton Autora: Adrana Bruscato Bortoluzzo, Italo De Paula Franca, Marco Antono Leonel

More information

! # %& ( ) +,../ 0 1 2 3 4 0 4 # 5##&.6 7% 8 # 0 4 2 #...

! # %& ( ) +,../ 0 1 2 3 4 0 4 # 5##&.6 7% 8 # 0 4 2 #... ! # %& ( ) +,../ 0 1 2 3 4 0 4 # 5##&.6 7% 8 # 0 4 2 #... 9 Sheffeld Economc Research Paper Seres SERP Number: 2011010 ISSN 1749-8368 Sarah Brown, Aurora Ortz-Núñez and Karl Taylor Educatonal loans and

More information

This study examines whether the framing mode (narrow versus broad) influences the stock investment decisions

This study examines whether the framing mode (narrow versus broad) influences the stock investment decisions MANAGEMENT SCIENCE Vol. 54, No. 6, June 2008, pp. 1052 1064 ssn 0025-1909 essn 1526-5501 08 5406 1052 nforms do 10.1287/mnsc.1070.0845 2008 INFORMS How Do Decson Frames Influence the Stock Investment Choces

More information

Are Women Better Loan Officers?

Are Women Better Loan Officers? Are Women Better Loan Offcers? Ths verson: February 2009 Thorsten Beck * CentER, Dept. of Economcs, Tlburg Unversty and CEPR Patrck Behr Goethe Unversty Frankfurt André Güttler European Busness School

More information

Short-run and Long-run structural international tourism demand modeling based on Dynamic AIDS model -An empirical research in Japan-

Short-run and Long-run structural international tourism demand modeling based on Dynamic AIDS model -An empirical research in Japan- hort-run and ong-run structural nternatonal toursm demand modelng based on Dynamc AID model -An emprcal research n Japan- Atsush KOIKE a, Dasuke YOHINO b a Graduate chool of Engneerng, Kobe Unversty, Kobe,

More information

Analysis of Subscription Demand for Pay-TV

Analysis of Subscription Demand for Pay-TV Analyss of Subscrpton Demand for Pay-TV Manabu Shshkura * Norhro Kasuga ** Ako Tor *** Abstract In ths paper, we wll conduct an analyss from an emprcal perspectve concernng broadcastng demand behavor and

More information

PRIVATE SCHOOL CHOICE: THE EFFECTS OF RELIGIOUS AFFILIATION AND PARTICIPATION

PRIVATE SCHOOL CHOICE: THE EFFECTS OF RELIGIOUS AFFILIATION AND PARTICIPATION PRIVATE SCHOOL CHOICE: THE EFFECTS OF RELIIOUS AFFILIATION AND PARTICIPATION Danny Cohen-Zada Department of Economcs, Ben-uron Unversty, Beer-Sheva 84105, Israel Wllam Sander Department of Economcs, DePaul

More information

THE DETERMINANTS OF THE TUNISIAN BANKING INDUSTRY PROFITABILITY: PANEL EVIDENCE

THE DETERMINANTS OF THE TUNISIAN BANKING INDUSTRY PROFITABILITY: PANEL EVIDENCE THE DETERMINANTS OF THE TUNISIAN BANKING INDUSTRY PROFITABILITY: PANEL EVIDENCE Samy Ben Naceur ERF Research Fellow Department of Fnance Unversté Lbre de Tuns Avenue Khéreddne Pacha, 002 Tuns Emal : sbennaceur@eudoramal.com

More information

CHAPTER 14 MORE ABOUT REGRESSION

CHAPTER 14 MORE ABOUT REGRESSION CHAPTER 14 MORE ABOUT REGRESSION We learned n Chapter 5 that often a straght lne descrbes the pattern of a relatonshp between two quanttatve varables. For nstance, n Example 5.1 we explored the relatonshp

More information

DEFINING %COMPLETE IN MICROSOFT PROJECT

DEFINING %COMPLETE IN MICROSOFT PROJECT CelersSystems DEFINING %COMPLETE IN MICROSOFT PROJECT PREPARED BY James E Aksel, PMP, PMI-SP, MVP For Addtonal Informaton about Earned Value Management Systems and reportng, please contact: CelersSystems,

More information

Scale Dependence of Overconfidence in Stock Market Volatility Forecasts

Scale Dependence of Overconfidence in Stock Market Volatility Forecasts Scale Dependence of Overconfdence n Stoc Maret Volatlty Forecasts Marus Glaser, Thomas Langer, Jens Reynders, Martn Weber* June 7, 007 Abstract In ths study, we analyze whether volatlty forecasts (judgmental

More information

Detection of Health Insurance Fraud with Discrete Choice Model: Evidence from Medical Expense Insurance in China

Detection of Health Insurance Fraud with Discrete Choice Model: Evidence from Medical Expense Insurance in China Detecton of Health Insurance Fraud wth Dscrete Choce Model: Evdence from Medcal Expense Insurance n Chna Abstract: Health nsurance fraud ncreases the neffcency and nequalty n our socety. To address the

More information

Macro Factors and Volatility of Treasury Bond Returns

Macro Factors and Volatility of Treasury Bond Returns Macro Factors and Volatlty of Treasury Bond Returns Jngzh Huang Department of Fnance Smeal Colleage of Busness Pennsylvana State Unversty Unversty Park, PA 16802, U.S.A. Le Lu School of Fnance Shangha

More information

The Impact of Residential Density on Vehicle Usage and Energy Consumption *

The Impact of Residential Density on Vehicle Usage and Energy Consumption * The Impact of Resdental Densty on Vehcle Usage and Energy Consumpton * September 26, 2008 Forthcomng n the Journal of Urban Economcs Davd Brownstone (correspondng author) Department of Economcs 3151 Socal

More information

The Probit Model. Alexander Spermann. SoSe 2009

The Probit Model. Alexander Spermann. SoSe 2009 The Probt Model Aleander Spermann Unversty of Freburg SoSe 009 Course outlne. Notaton and statstcal foundatons. Introducton to the Probt model 3. Applcaton 4. Coeffcents and margnal effects 5. Goodness-of-ft

More information

Survive Then Thrive: Determinants of Success in the Economics Ph.D. Program. Wayne A. Grove Le Moyne College, Economics Department

Survive Then Thrive: Determinants of Success in the Economics Ph.D. Program. Wayne A. Grove Le Moyne College, Economics Department Survve Then Thrve: Determnants of Success n the Economcs Ph.D. Program Wayne A. Grove Le Moyne College, Economcs Department Donald H. Dutkowsky Syracuse Unversty, Economcs Department Andrew Grodner East

More information

A Multistage Model of Loans and the Role of Relationships

A Multistage Model of Loans and the Role of Relationships A Multstage Model of Loans and the Role of Relatonshps Sugato Chakravarty, Purdue Unversty, and Tansel Ylmazer, Purdue Unversty Abstract The goal of ths paper s to further our understandng of how relatonshps

More information

Cahiers de la Chaire Santé

Cahiers de la Chaire Santé Cahers de la Chare Santé The nfluence of supplementary health nsurance on swtchng behavour: evdence from Swss data Auteurs : Brgtte Dormont, Perre-Yves Geoffard, Karne Lamraud N 4 - Janver 2010 1 The nfluence

More information

Estimating Total Claim Size in the Auto Insurance Industry: a Comparison between Tweedie and Zero-Adjusted Inverse Gaussian Distribution

Estimating Total Claim Size in the Auto Insurance Industry: a Comparison between Tweedie and Zero-Adjusted Inverse Gaussian Distribution Avalable onlne at http:// BAR, Curtba, v. 8, n. 1, art. 3, pp. 37-47, Jan./Mar. 2011 Estmatng Total Clam Sze n the Auto Insurance Industry: a Comparson between Tweede and Zero-Adjusted Inverse Gaussan

More information

Multivariate EWMA Control Chart

Multivariate EWMA Control Chart Multvarate EWMA Control Chart Summary The Multvarate EWMA Control Chart procedure creates control charts for two or more numerc varables. Examnng the varables n a multvarate sense s extremely mportant

More information

The timing ability of hybrid funds of funds

The timing ability of hybrid funds of funds The tmng ablty of hybrd funds of funds Javer Rodríguez* Graduate School of Busness Admnstraton Unversty of Puerto Rco PO 23332 San Juan, PR 00931 Abstract Hybrd mutual funds are funds that nvest n a combnaton

More information

Statistical Methods to Develop Rating Models

Statistical Methods to Develop Rating Models Statstcal Methods to Develop Ratng Models [Evelyn Hayden and Danel Porath, Österrechsche Natonalbank and Unversty of Appled Scences at Manz] Source: The Basel II Rsk Parameters Estmaton, Valdaton, and

More information

The Analysis of Covariance. ERSH 8310 Keppel and Wickens Chapter 15

The Analysis of Covariance. ERSH 8310 Keppel and Wickens Chapter 15 The Analyss of Covarance ERSH 830 Keppel and Wckens Chapter 5 Today s Class Intal Consderatons Covarance and Lnear Regresson The Lnear Regresson Equaton TheAnalyss of Covarance Assumptons Underlyng the

More information

Factors Affecting Outsourcing for Information Technology Services in Rural Hospitals: Theory and Evidence

Factors Affecting Outsourcing for Information Technology Services in Rural Hospitals: Theory and Evidence Factors Affectng Outsourcng for Informaton Technology Servces n Rural Hosptals: Theory and Evdence Bran E. Whtacre Department of Agrcultural Economcs Oklahoma State Unversty bran.whtacre@okstate.edu J.

More information

CHAPTER 7 THE TWO-VARIABLE REGRESSION MODEL: HYPOTHESIS TESTING

CHAPTER 7 THE TWO-VARIABLE REGRESSION MODEL: HYPOTHESIS TESTING CHAPTER 7 THE TWO-VARIABLE REGRESSION MODEL: HYPOTHESIS TESTING QUESTIONS 7.1. (a) In the regresson contet, the method of least squares estmates the regresson parameters n such a way that the sum of the

More information

Willingness to Pay for Health Insurance: An Analysis of the Potential Market for New Low Cost Health Insurance Products in Namibia

Willingness to Pay for Health Insurance: An Analysis of the Potential Market for New Low Cost Health Insurance Products in Namibia Wllngness to Pay for Health Insurance: An Analyss of the Potental Market for New Low Cost Health Insurance Products n Namba Abay Asfaw Center for Dsease Control and Preventon\Natonal Insttute for Occupatonal

More information

Corporate Real Estate Sales and Agency Costs of Managerial Discretion

Corporate Real Estate Sales and Agency Costs of Managerial Discretion Corporate Real Estate Sales and Agency Costs of Manageral Dscreton Mng-Long Lee * Department of Fnance Natonal Yunln Unversty of Scence & Technology Yunln, Tawan Mng-Te Lee Department of Accountng Tamkang

More information

Underwriting Risk. Glenn Meyers. Insurance Services Office, Inc.

Underwriting Risk. Glenn Meyers. Insurance Services Office, Inc. Underwrtng Rsk By Glenn Meyers Insurance Servces Offce, Inc. Abstract In a compettve nsurance market, nsurers have lmted nfluence on the premum charged for an nsurance contract. hey must decde whether

More information

The Racial and Gender Interest Rate Gap. in Small Business Lending: Improved Estimates Using Matching Methods*

The Racial and Gender Interest Rate Gap. in Small Business Lending: Improved Estimates Using Matching Methods* The Racal and Gender Interest Rate Gap n Small Busness Lendng: Improved Estmates Usng Matchng Methods* Yue Hu and Long Lu Department of Economcs Unversty of Texas at San Antono Jan Ondrch and John Ynger

More information

Is There A Tradeoff between Employer-Provided Health Insurance and Wages?

Is There A Tradeoff between Employer-Provided Health Insurance and Wages? Is There A Tradeoff between Employer-Provded Health Insurance and Wages? Lye Zhu, Southern Methodst Unversty October 2005 Abstract Though most of the lterature n health nsurance and the labor market assumes

More information

Small Business Loan Turndowns, Personal Wealth and Discrimination

Small Business Loan Turndowns, Personal Wealth and Discrimination Small usness Loan Turndowns, Personal ealth and Dscrmnaton Ken Cavalluzzo Georgetown Unversty ashngton, DC 20057 cavalluk@gunet.georgetown.edu 202-687-8401 John olken oard of Governors Federal Reserve

More information

The Eastern Caribbean Currency Union: Would a Fiscal Insurance Mechanism Mitigate National Income Shocks?

The Eastern Caribbean Currency Union: Would a Fiscal Insurance Mechanism Mitigate National Income Shocks? WP/12/17 The Eastern Carbbean Currency Unon: Would a Fscal Insurance Mechansm Mtgate Natonal Income Shocks? Antono Lemus and Paul Cashn 2012 Internatonal Monetary Fund WP/12/17 IMF Workng Paper Mddle East

More information

WORKING PAPER SERIES TAKING STOCK: MONETARY POLICY TRANSMISSION TO EQUITY MARKETS NO. 354 / MAY 2004. by Michael Ehrmann and Marcel Fratzscher

WORKING PAPER SERIES TAKING STOCK: MONETARY POLICY TRANSMISSION TO EQUITY MARKETS NO. 354 / MAY 2004. by Michael Ehrmann and Marcel Fratzscher WORKING PAPER SERIES NO. 354 / MAY 2004 TAKING STOCK: MONETARY POLICY TRANSMISSION TO EQUITY MARKETS by Mchael Ehrmann and Marcel Fratzscher WORKING PAPER SERIES NO. 354 / MAY 2004 TAKING STOCK: MONETARY

More information

Selection bias and econometric remedies in accounting and finance research

Selection bias and econometric remedies in accounting and finance research Selecton bas and econometrc remedes n accountng and fnance research Jennfer Wu Tucker Fsher School of Accountng Warrngton College of Busness Admnstraton Unversty of Florda (352) 273-0214 (Offce) (352)392-7962

More information

Marginal Returns to Education For Teachers

Marginal Returns to Education For Teachers The Onlne Journal of New Horzons n Educaton Volume 4, Issue 3 MargnalReturnstoEducatonForTeachers RamleeIsmal,MarnahAwang ABSTRACT FacultyofManagementand Economcs UnverstPenddkanSultan Idrs ramlee@fpe.ups.edu.my

More information

Subcontracting Structure and Productivity in the Japanese Software Industry

Subcontracting Structure and Productivity in the Japanese Software Industry Rev Soconetwork Strat (2009) 3:51-65 Subcontractng Structure and Productvty n e Japanese Software Industry Kazunor MINETAKI 1) and Kazuyuk MOTOHASHI 2) 1) The Research Insttute for Soconetwork Strateges,

More information

MAPP. MERIS level 3 cloud and water vapour products. Issue: 1. Revision: 0. Date: 9.12.1998. Function Name Organisation Signature Date

MAPP. MERIS level 3 cloud and water vapour products. Issue: 1. Revision: 0. Date: 9.12.1998. Function Name Organisation Signature Date Ttel: Project: Doc. No.: MERIS level 3 cloud and water vapour products MAPP MAPP-ATBD-ClWVL3 Issue: 1 Revson: 0 Date: 9.12.1998 Functon Name Organsaton Sgnature Date Author: Bennartz FUB Preusker FUB Schüller

More information

World currency options market efficiency

World currency options market efficiency Arful Hoque (Australa) World optons market effcency Abstract The World Currency Optons (WCO) maket began tradng n July 2007 on the Phladelpha Stock Exchange (PHLX) wth the new features. These optons are

More information

Scaling Models for the Severity and Frequency of External Operational Loss Data

Scaling Models for the Severity and Frequency of External Operational Loss Data Scalng Models for the Severty and Frequency of External Operatonal Loss Data Hela Dahen * Department of Fnance and Canada Research Char n Rsk Management, HEC Montreal, Canada Georges Donne * Department

More information

Understanding the Impact of Marketing Actions in Traditional Channels on the Internet: Evidence from a Large Scale Field Experiment

Understanding the Impact of Marketing Actions in Traditional Channels on the Internet: Evidence from a Large Scale Field Experiment A research and educaton ntatve at the MT Sloan School of Management Understandng the mpact of Marketng Actons n Tradtonal Channels on the nternet: Evdence from a Large Scale Feld Experment Paper 216 Erc

More information

The Probability of Informed Trading and the Performance of Stock in an Order-Driven Market

The Probability of Informed Trading and the Performance of Stock in an Order-Driven Market Asa-Pacfc Journal of Fnancal Studes (2007) v36 n6 pp871-896 The Probablty of Informed Tradng and the Performance of Stock n an Order-Drven Market Ta Ma * Natonal Sun Yat-Sen Unversty, Tawan Mng-hua Hseh

More information

Management Quality and Equity Issue Characteristics: A Comparison of SEOs and IPOs

Management Quality and Equity Issue Characteristics: A Comparison of SEOs and IPOs Management Qualty and Equty Issue Characterstcs: A Comparson of SEOs and IPOs Thomas J. Chemmanur * Imants Paegls ** and Karen Smonyan *** Current verson: November 2009 (Accepted, Fnancal Management, February

More information

HOUSEHOLDS DEBT BURDEN: AN ANALYSIS BASED ON MICROECONOMIC DATA*

HOUSEHOLDS DEBT BURDEN: AN ANALYSIS BASED ON MICROECONOMIC DATA* HOUSEHOLDS DEBT BURDEN: AN ANALYSIS BASED ON MICROECONOMIC DATA* Luísa Farnha** 1. INTRODUCTION The rapd growth n Portuguese households ndebtedness n the past few years ncreased the concerns that debt

More information

Day-of-the-Week Trading Patterns of Individual and Institutional Investors

Day-of-the-Week Trading Patterns of Individual and Institutional Investors Day-of-the-Week Tradng Patterns of Indvdual and Instutonal Investors Joel N. Morse, Hoang Nguyen, and Hao M. Quach Ths study examnes the day-of-the-week tradng patterns of ndvdual and nstutonal nvestors.

More information

Forecasting the Direction and Strength of Stock Market Movement

Forecasting the Direction and Strength of Stock Market Movement Forecastng the Drecton and Strength of Stock Market Movement Jngwe Chen Mng Chen Nan Ye cjngwe@stanford.edu mchen5@stanford.edu nanye@stanford.edu Abstract - Stock market s one of the most complcated systems

More information

The impact of bank capital requirements on bank risk: an econometric puzzle and a proposed solution

The impact of bank capital requirements on bank risk: an econometric puzzle and a proposed solution Banks and Bank Systems, Volume 4, Issue 1, 009 Robert L. Porter (USA) The mpact of bank captal requrements on bank rsk: an econometrc puzzle and a proposed soluton Abstract The relatonshp between bank

More information

The demand for private health care in the UK

The demand for private health care in the UK Journal of Health Economcs 19 2000 855 876 www.elsever.nlrlocatereconbase The demand for prvate health care n the UK Carol Propper ) Department of Economcs, CASE and CEPR, UnÕersty of Brstol, Brstol BS8

More information

An Interest-Oriented Network Evolution Mechanism for Online Communities

An Interest-Oriented Network Evolution Mechanism for Online Communities An Interest-Orented Network Evoluton Mechansm for Onlne Communtes Cahong Sun and Xaopng Yang School of Informaton, Renmn Unversty of Chna, Bejng 100872, P.R. Chna {chsun,yang}@ruc.edu.cn Abstract. Onlne

More information

Mean Molecular Weight

Mean Molecular Weight Mean Molecular Weght The thermodynamc relatons between P, ρ, and T, as well as the calculaton of stellar opacty requres knowledge of the system s mean molecular weght defned as the mass per unt mole of

More information

Does a Threshold Inflation Rate Exist? Quantile Inferences for Inflation and Its Variability

Does a Threshold Inflation Rate Exist? Quantile Inferences for Inflation and Its Variability Does a Threshold Inflaton Rate Exst? Inferences for Inflaton and Its Varablty WenShwo Fang Department of Economcs Feng Cha Unversty Tachung, TAIWAN Stephen M. Mller* Department of Economcs Unversty of

More information

Heterogeneous Paths Through College: Detailed Patterns and Relationships with Graduation and Earnings

Heterogeneous Paths Through College: Detailed Patterns and Relationships with Graduation and Earnings Heterogeneous Paths Through College: Detaled Patterns and Relatonshps wth Graduaton and Earnngs Rodney J. Andrews The Unversty of Texas at Dallas and the Texas Schools Project Jng L The Unversty of Tulsa

More information

An Empirical Investigation of Collateral and Sorting in the HELOC Market

An Empirical Investigation of Collateral and Sorting in the HELOC Market An Emprcal Inestgaton of Collateral and Sortng n the HELOC Market By Shubhass Dey & Luca Dunn * Abstract Ths research explores the role that collateral plays n sortng borrowers accordng to rsk classes

More information

CHAPTER 5 RELATIONSHIPS BETWEEN QUANTITATIVE VARIABLES

CHAPTER 5 RELATIONSHIPS BETWEEN QUANTITATIVE VARIABLES CHAPTER 5 RELATIONSHIPS BETWEEN QUANTITATIVE VARIABLES In ths chapter, we wll learn how to descrbe the relatonshp between two quanttatve varables. Remember (from Chapter 2) that the terms quanttatve varable

More information

9.1 The Cumulative Sum Control Chart

9.1 The Cumulative Sum Control Chart Learnng Objectves 9.1 The Cumulatve Sum Control Chart 9.1.1 Basc Prncples: Cusum Control Chart for Montorng the Process Mean If s the target for the process mean, then the cumulatve sum control chart s

More information

The Use of Analytics for Claim Fraud Detection Roosevelt C. Mosley, Jr., FCAS, MAAA Nick Kucera Pinnacle Actuarial Resources Inc.

The Use of Analytics for Claim Fraud Detection Roosevelt C. Mosley, Jr., FCAS, MAAA Nick Kucera Pinnacle Actuarial Resources Inc. Paper 1837-2014 The Use of Analytcs for Clam Fraud Detecton Roosevelt C. Mosley, Jr., FCAS, MAAA Nck Kucera Pnnacle Actuaral Resources Inc., Bloomngton, IL ABSTRACT As t has been wdely reported n the nsurance

More information

Introduction to Regression

Introduction to Regression Introducton to Regresson Regresson a means of predctng a dependent varable based one or more ndependent varables. -Ths s done by fttng a lne or surface to the data ponts that mnmzes the total error. -

More information

Time Preferences and Job Search: Evidence from France

Time Preferences and Job Search: Evidence from France Tme Preferences and Job Search: Evdence from France Bassem Ben Halma, Mohamed Ben Halma To cte ths verson: Bassem Ben Halma, Mohamed Ben Halma. Tme Preferences and Job Search: Evdence from France. LABOUR,

More information

NBER WORKING PAPER SERIES CROWDING OUT AND CROWDING IN OF PRIVATE DONATIONS AND GOVERNMENT GRANTS. Garth Heutel

NBER WORKING PAPER SERIES CROWDING OUT AND CROWDING IN OF PRIVATE DONATIONS AND GOVERNMENT GRANTS. Garth Heutel BER WORKIG PAPER SERIES CROWDIG OUT AD CROWDIG I OF PRIVATE DOATIOS AD GOVERMET GRATS Garth Heutel Workng Paper 15004 http://www.nber.org/papers/w15004 ATIOAL BUREAU OF ECOOMIC RESEARCH 1050 Massachusetts

More information

Returns to Experience in Mozambique: A Nonparametric Regression Approach

Returns to Experience in Mozambique: A Nonparametric Regression Approach Returns to Experence n Mozambque: A Nonparametrc Regresson Approach Joel Muzma Conference Paper nº 27 Conferênca Inaugural do IESE Desafos para a nvestgação socal e económca em Moçambque 19 de Setembro

More information

Physical activity patterns of European 50+ populations

Physical activity patterns of European 50+ populations Orgnal Paper. Advances n Rehabltaton 3, 6 13, 2010 DOI 10.2478/v10029-010-0002-7 Physcal actvty patterns of European 50+ populatons Mchał Myck German Insttute for Economc Research, Berln, Centre for Economc

More information

x f(x) 1 0.25 1 0.75 x 1 0 1 1 0.04 0.01 0.20 1 0.12 0.03 0.60

x f(x) 1 0.25 1 0.75 x 1 0 1 1 0.04 0.01 0.20 1 0.12 0.03 0.60 BIVARIATE DISTRIBUTIONS Let be a varable that assumes the values { 1,,..., n }. Then, a functon that epresses the relatve frequenc of these values s called a unvarate frequenc functon. It must be true

More information