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

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

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

Transcription

1 Factors Affectng Outsourcng for Informaton Technology Servces n Rural Hosptals: Theory and Evdence Bran E. Whtacre Department of Agrcultural Economcs Oklahoma State Unversty J. Matthew Fannn Department of Agrcultural Economcs Lousana State Unversty James N. Barnes Department of Agrcultural Economcs Lousana State Unversty Workng paper prepared for Southern Agrcultural Economcs Assocaton Annual Meetng n Dallas, Texas Feb 2 5, Copyrght 2008 by Bran E. Whtacre, J. Matthew Fannn, and James N. Barnes. All rghts reserved. Readers may make verbatm copes of ths document for non-commercal purposes by any means, provded that ths copyrght notce and ths statement appear on all such copes. Abstract As health nformaton technology becomes more prevalent for most healthcare facltes, hosptals across the naton are choosng between performng ths servce n-house and outsourcng to a technology frm n the health ndustry. Ths paper examnes factors affectng the nformaton technology (IT) outsource decson for varous hosptals. Usng 2004 data from the Amercan Hosptal Assocaton, logstc regresson models fnd that governmental ownershp and a proxy varable for hosptals that treat more severe njures postvely mpact the probablty of outsourcng for IT servces. Key Words: Health Informaton Technology, Outsourcng, Hosptal JEL Classfcatons: I12, C140 1

2 1. Introducton Organzaton of servces at rural hosptals s an mportant aspect of hosptal performance and largely affects the qualty of patent care. For example, the cost of admnsterng medcal bllng, patent records, and health care safety and regulatory complance contnues to be a sgnfcant burden to rural hosptals n the U.S. Whle numerous studes have documented the potental benefts from the use of nformaton technology (IT) n a hosptal envronment (Brooks et al, 2005; Bates et al, 2001; Haux, Wnter, Ammenwerth, Brggel, 2004), very lttle research has looked nto how hosptals should go about mplementng ths technology. Changes n rural health based programs usually ncrease relevant admnstratve costs, compellng rural hosptal admnstrators to evaluate several busness strateges for managng dgtal nformaton. These strateges consst of ether hrng IT staff as salared employees or outsourcng for such servces to a technology frm n the health ndustry. Because future legslaton may set the stage for data management n all hosptals, understandng the characterstcs that lead to outsourcng should help hosptal admnstrators determne whch factors are most nfluental to ther own decson process. We examne the outsource decson n the rural hosptal settng and evaluate the factors that affect the use of outsourcng for IT by rural hosptal admnstrators nstead of employng an nternal IT staff. The examnaton of rural health servces from an economc organzaton perspectve has receved lttle attenton hstorcally. However, a few studes have begun to apply transacton cost theory to understand the procurement of 2

3 servces, ncludng recrutment of physcans to rural communtes (Fannn and Barnes, 2007). To our knowledge, ths paper represents one of the frst emprcal applcatons of the conceptual model of transacton cost theory to understand the organzaton of IT servces n rural hosptals n the U.S. Ths approach represents a new way of thnkng about the IT adopton decson n that t documents and emprcally estmates the mportance of transacton costs for the varous IT optons avalable. Objectve and Background Ths paper focuses on the factors that affect whether or not rural hosptals outsource ther IT work. Specfc objectves nclude: (1) to develop a conceptual model of transacton cost theory that explans the outsource decson by rural hosptal admnstrators when procurng nformaton technology servces; (2) to dentfy transacton cost theory hypotheses to be tested; (3) to dentfy the key drvers of outsourcng for IT servces n rural hosptals n the U.S.; and (4) to dscuss the polcy mplcatons assocated wth enhancng the adopton of IT assets wthn rural hosptals. Addtonally, as telemedcne servces such as teleradology and telepsychatry become more common for many rural hosptals, ths paper looks nto some of the ssues assocated wth combnng these applcatons nto the exstng IT structure and whether that work should be outsourced or done nternally. As healthcare nformaton systems have become more and more complex, a growng body of research has evolved on ths topc. The benefts of movng to such systems have been well-documented, and nclude error reducton, cost mnmzaton, and more effcent 3

4 tme management (Bates et al. 2001, Brooks et al 2005, Hauz et Al, 2004). Further studes on the dffuson and adopton of health IT suggests that despte common belefs that such technology wll ncrease healthcare savngs, reduce medcal errors, and mprove overall health status, lttle progress has been made n the actual adopton of IT servces such as Electronc Medcal Records (EMRs) and Clncal Decson Support Tools. In fact, by 2005 only 20 to 30 percent of hosptals have commtted to adoptng IT servces (Fonkych and Tayler, 2005). Some studes have focused on why those hosptals that dd adopt health IT servces chose to do so. These studes have generally uncovered a postve relatonshp between the fnancal status, sze, and productvty of the health care faclty and ts level of IT adopton. Not surprsngly, hosptals that are more wred are often more productve and have better control of ther fnancal stuaton (Solovy, 2001). However, endogenety problems made nferences about causalty dffcult n fact Parente and Dunbar (2001) concluded that health IT had no mpact on a hosptal s operatng margn. Other studes have found several factors that seem to have an mpact on IT adopton tself, such as for-proft status (negatvely assocated), operaton n a compettve envronment (postvely assocated), hgher caseloads of sck patents (postvely assocated), and tme under operaton (mxed results) (Parente and Van Horn, 2003; Wang et al, 2002). Further, Borzekowsk (2002) found that the mplementaton of Medcare s prospectve payment system ncreased the rate of IT adopton for hosptals. Addtonal studes have questoned whch of these servces are most lkely to be outsourced, and why. Wholey et al (2001) found that the development of an IT system s much more lkely to be outsourced than the day-to-day operaton of the system. The dea 4

5 s a hosptal admnstrator would choose to buy the IT system from an IT company rather than nvestng ts own resources to develop a propretary IT system. Such a decson to outsource for IT depends on several factors. From a hosptal perspectve, how can we understand the possbltes? In what follows, we use transacton cost theory as our conceptual framework to understand the economc ncentve factors that drve the decson to outsource for IT servces n hosptals. Conceptual Framework Transacton cost theory (TCT) (Coase, 1937; Wllamson, 1991) assumes people have lmted knowledge of future events and act opportunstcally. The transacton cost to avod n contractng wth another frm are those related to what Wllamson calls opportunsm. Wllamson developed a reduced form model that hghlghts the relatve cost of outsourcng versus n-house producton of servces. For example, the reduced form model uses three economc ncentve factors as determnants as to why a hosptal would choose to outsource for IT servces compared to provdng those same servces va nternal procurement wth a set of employees who would be responsble for mantanng IT servces. Hence, the hosptal faces a make (provde nternally va employees) or buy (from an IT frm) decson for IT servces. TCT uses uncertanty, frequency and asset specfcty as three prmary determnants that explan the make or buy decson for IT. Frequency refers to how often a transacton wll take place to provde servces. For a hosptal, t mght represent the number of tmes IT servces would be purchased from an IT based frm for hosptal operatons. Accordng to 5

6 TCT, the hgher the frequency, the more lkely a hosptal would consder hrng employees to provde IT servces n-house. Hence, frequency would usually have a negatve effect on outsourcng for IT servces assumng the cost of outsourcng exceeds that of n-house producton. Uncertanty can refer to demand, technologcal or envronmental dmensons that affect outsourcng. For example, a hosptal admnstrator would consder the performance record of an IT frm before decdng to outsource for IT servces to avod poor qualty servce and cost overruns. Hgh performance uncertanty rases the cost of dong busness and a hosptal may be better off hrng ts own employees and provdng IT servces n-house. Hence, hgh performance uncertanty tends to ncrease the lkelhood that a hosptal would choose to provde servces n-house because the cost of outsourcng exceeds n-house producton. Fnally, TCT uses alternatve types of what Wllamson calls asset specfcty to understand the relatve cost of usng outsourcng compared to n-house producton. The two prmary types of asset specfcty varables used n TCT studes relate to nvestments made n human and physcal assets. Hgh asset specfcty means the hosptal makes a szeable nvestment n an IT system specfcally desgned for ts busness operatons; hence, swtchng costs for the hosptal to swtch to another IT system would be hgh. The IT frm, knowng such an IT system has been developed for the unque hosptal operatons, could hold-up the hosptal for more value at contract renegotaton. Gven swtchng costs are hgh, the IT frm would have some opportunty to capture more of a margn. Knowng ths type of opportunsm by the IT frm exsts, the hosptal could opt to go wth a less specalzed IT system to avod the costs of hold-up. Hence, TCT suggests f 6

7 the hosptal nvests n a hghly-specfc IT system, more control over that system would be preferred to less and ths usually means hrng employees and developng an IT system n-house. Provdng n-house IT servces would then avod the added cost of hold-up assocated wth outsourcng to the IT servces frm. One type of drect cost of hold-up could be a hgher upgrade prce (than otherwse was agreed to) for the software that organzes the IT nfrastructure. An ndrect cost of hold-up could be the opportunty costs assocated wth not havng the updated IT system, ncludng effects to patent qualty of care, hrng and managng day-to-day operatons. In ths paper, we follow the recent work of Esposto (2004) to dentfy possble TCT factors that determne the outsource decson by hosptals for IT servces for two reasons. Frst, TCT has become the predomnantly used ndustral organzaton theory to understand outsource decsons by frms and Esposto represents a useful applcaton of how TCT explans outsource decsons n hosptals. Second, whle Esposto studed the outsource decson related to procurng physcan servces, we beleve the TCT factors consdered correspond to other outsource decsons such as IT. The key TCT factor consdered by Esposto was not asset specfcty or frequency, but that of complexty. Esposto examned the outsource decson for physcan servces as determned by the complex nature of the average procedure provded by physcans. The use of a case mx ndex was used by Esposto for complexty of servces rendered by physcans; the case mx ndex s used by the Centers for Medcare and Medcad Servces n the Medcare Prospectve Payment System to compensate hosptals for the 7

8 treatment servces provded by physcans. Specfcally, each tme a physcan treats a Medcare patent, hs or her medcal record has to be updated for dagnoses and procedures; approxmately 13,000 dagnoses and 5,000 procedures exst all of whch are represented by specfc codes. Based on treatment, each patent s classfed nto a group of these codes called Dagnoses Related Group (DRG). The hosptal then receves a payment whch s called the DRG payment and s calculated by multplyng the weght (assocated wth a DRG whch hs set by the Centers for Medcare and Medcad Servces) by the payment rate whch s set by federal regulatons for dfferent types of hosptals. The case mx ndex (CMI) represents the average DRG weght for all of a hosptal s Medcare volume, can be nterpreted as a relatve severty measure of a patent populaton and s drectly proportonal to DRG payments. Esposto cted the CMI as understandng the complex nature of managng patents wth dfferent scknesses and medcal needs. Esposto found a postve relatonshp between the CMI and the use of physcan contractual arrangements whch provded the hosptal wth more decson rghts and control over operatons. We beleve the same may hold true when consderng IT outsourcng and the CMI for at least one reason. The CMI represents an organzatonal, not transacton specfc, measure of complexty of servces offered and supported by hosptals. Lkewse, IT systems generally support organzatonal day-to-day operatons. We hypothesze that a hgh CMI (whch means the average complexty of servces rendered s hgh), the hosptal would prefer to have more control over IT operatons and provde them va n-house producton, other thngs equal. Lkewse, f the CMI s low then we expect a hosptal to outsource for IT servces. Ths 8

9 assumes that a hgh CMI would requre the use of a more specalzed, unque IT system to manage electronc medcal records and other data flows wthn the hosptal. To avod the possble drect and ndrect costs of hold-up usng outsourcng, a hosptal would prefer more control over IT and that control would be through n-house producton (Table 1). Data and Descrptve Statstcs We model the economc ncentves affectng the decson to outsource for IT servces usng 2004 data from the Amercan Hosptal Assocaton and the use of bnary choce models. Ths data ncludes numerous hosptal-specfc characterstcs such as the organzatonal structure, number of beds, volume of patents, and captal expenses. Also ncluded are estmates for the number of full-tme equvalent (FTE) employees n ITrelated work, and whether ths work was employed nternally or outsourced. Unfortunately, data regardng IT employment or outsourcng were treated as confdental and requred wrtten permsson from ndvdual state hosptal assocatons. For ths study, such permsson was only obtaned from the state of Oklahoma. Thus, the analyss n ths paper s lmted to a sngle state. The data obtaned allows for a full host of econometrc models to be employed, ncludng logt models lookng explctly at the n-house / outsource decson. Table 2 dsplays descrptve statstcs for several characterstcs of hosptals n the study. Approxmately 15 percent of all hosptals choose to outsource ther IT procedures. Several other varables are also of nterest, ncludng the case mx ndex (whch ndcates the relatve 9

10 severty of the patents beng served), the total number of n-patent days and out-patent vsts, the percentage of all npatents who were Medcare / Medcad recpents, the organzatonal status, and whether or not the hosptal resdes n a non-metropoltan county. Approxmately 49 percent of the hosptals n our study were n non-metropoltan areas, and the two domnant types of hosptals were not-for-profts and those run by the federal government. Methodology A Model for Determnng the Outsource Decson The decson on whether or not to outsource a hosptal s IT servces s a dscrete adopton choce for the hosptal that s dependant on the utlty from outsourcng ( keepng the servces n-house ( ) versus ). The hosptal s utlty wll, n turn, depend on the relatve costs and benefts of the outsourcng versus n-house decson. Therefore, the hosptal wll nvest n outsourcng f otherwse. U 0 U 1 > U 0 * Let y = U U = β ' + ε, 1 0 X U 1, and wll keep the servce n-house where X s a vector of hosptal and place-based characterstcs that nfluence the utlty of outsourcng IT servces relatve to performng them nternally, β ' s the assocated parameter vector, and ε s the assocated error term. Although * y s a latent varable, the presence of outsourcng (meanng y = 1) s observed f y * > 0, and = 0 y otherwse. Hence, Pr( y = 1) = Pr( ε > β ' X ), or Pr( y = 1) = 1 F( β ' X ) 10

11 Where F ( ) s the cumulatve dstrbuton functon for the error term ε. Each observed y s then a functon of a bnomal process, wth the assocated lkelhood functon expressed as: L = F( β ' X ) [1 F( β ' X y= 0 y= 1 If the cumulatve dstrbuton of ε s logstc, then )] F( β ' X exp( β ' X ) ) = 1+ exp( β ' X ) = 1 (1 + exp( β ' X, and )) [1 F( β ' X exp( β ' X ) )] = (1 + exp( β ' X )) The assocated statstcal model s then estmated by the maxmum lkelhood method, log L = log 1 + exp( β ' X log y= 0 (1 + exp( β ' X ) y= 1 (1 + β ' X ) ) The explanatory varables n matrx X are categorzed nto two dstnct groups, those assocated wth the hosptal and those assocated wth the county n whch the hosptal s located. Results The results from a logstc regresson model are dsplayed n Table 3. Our analyss hghlghts several key factors affectng the use of nternal IT staff versus outsourcng for IT servces: (1) the severty of patent llness (servng as a proxy for transactons costs) postvely mpactng the outsource decson; (2) the counteractng mpacts of n-patent days and out-patent vsts; (3) postve mpacts on outsourcng of governmentally-owned facltes; and (4) the lack of mpact from non-metropoltan status. 11

12 As Table 3 ndcates, the case mx ndex has a postve mpact on the probablty of outsourcng. Ths mples that hosptals facng ncreased complexty are more lkely to outsource ther IT work, whch runs counter to our ntal hypothess that the two would be negatvely related. Ths may ndcate that our proxy for complexty s a poor measure for the rsk that the hosptal faces when t determnes whether or not to outsource IT servces. Other results suggest that the volume of patents encountered has effects that tend to offset each other: the volume of n-patent days s postvely correlated to the probablty of outsourcng, whle the volume of outpatent vsts s negatvely related. Ths may be an ndcator that the procedures assocated wth n-patent days are easer to predct by the hosptal staff and are therefore easer to move to an off-ste locaton. Although both of these varables are statstcally sgnfcant at the 10 percent level, nether has much economc sgnfcance as evdenced by ther mnmal margnal effects. We also see that, relatve to the base group of for-proft hosptals, an organzatonal structure that s owned by the federal government (ether federal or non-federal) sgnfcantly ncreases the lkelhood of outsourcng. Ths suggests that for-profts are more hestant to allow IT work to be done externally, perhaps due to prvacy concerns or even a percepton that ths actvty s smply not as cost effectve. Fnally, the metropoltan status of the county n whch the hosptal s located does not have a sgnfcant mpact on ts decson to outsource, suggestng that physcal dstance from potental outsourcng stes s not mportant. 12

13 Table 4 dsplays the correlaton matrx of all ndependent varables used n the regresson analyss. Among all the varables, only one relatonshp s above 60 percent correlaton, whch, perhaps expectedly, s the measure for patent volume: n-patent days and outpatent vsts. However, ths correlaton of s not suffcently hgh enough to warrant droppng one of the varables from the analyss, partcularly n lght of the dfferng mpacts these two varables have on the outsource decson. Dscusson Ths paper has provded a methodology for analyzng the IT outsource decson by hosptals by turnng to transacton cost theory. Applyng ths theory suggests that hosptals wth more complcated treatments (proxed n ths study by the case mx ndex) should have a decreased probablty for outsourcng, snce the ncreased complexty may be more problematc for an external frm to handle. Hence, we hypotheszed that ncreased complexty and n-house producton are postvely related. Our results show the opposte - that the case mx s postvely related to outsourcng. From the standpont of transacton cost theory, ths mples that the case mx ndex may not accurately capture the IT related opportunstc rsk faced by a hosptal when procurng IT servces. Instead, other measures such as human and asset specfcty varables may do a better job explanng outsourcng. Further analyss on ths topc s needed to break out the ndvdual roles played by these other varables, suggestng an avenue for further research. 13

14 Our analyss does turn up several other nterestng results; specfcally the postve relatonshps between governmental organzatonal structures and outsourcng, and the lack of sgnfcance of a non-metropoltan dummy varable. These results may suggest that hosptals operatng for proft stll perceve the outsourcng strategy as too rsky or not cost effectve, or may ndcate that hosptals that are owned by the government have more ncentve to look to outsourcng as a management strategy. The queston of how rural hosptals vew outsourcng s left unanswered by our analyss, but should be further explored gven the ncreasng role of IT n the health sector and global flattenng takng place n today's world. 14

15 References Bates, D., M. Cohen, L. Leape, J. Overhage, M. Shabot, and T. Sherdan Reducng the Frequency of Errors n Medcne Usng Informaton Technology. Journal of the Amercan Medcal Informatcs Assocaton. 8, Borzekowsk, R Health Care Fnance and the Early Adopton of Hosptal Informaton Systems. Washngton, D.C. Dscusson Paper No Fnance and Economcs Dscusson Seres from the Board of Governors of the Federal Reserve System. Brooks, R., N. Menachem, D. Burke, and A. Clawson Patent Safety-Related Informaton Technology Utlzaton n Urban and Rural Hosptals. Journal of Medcal Systems 29(2), Coase, RH The Nature of the Frm. n dem, The Frm, the Market and the Law. Chcago, IL: Unversty of Chcago Press. Esposto, A.G Contractual ntegraton of physcan and hosptal servces n the U.S. Journal of Management and Governance. 8: Fannn, M. and J. Barnes Recrutment of Physcans To Rural Amerca: A Vew Through the Lens of Transacton Cost Theory. The Journal of Rural Health 23(2), Fonkyck, K. and R. Taylor The State and Pattern of Health Informaton Technology Adopton. RAND Corporaton, Santa Monca, CA. Haux, R., A. Wnter, E. Ammenwerth, and B. Brgl Strategc Informaton Management n Hosptals: An Introducton to Hosptal Informaton Systems. Sprnger: Health Informatcs Seres. Parente, S. and J. Dunbar Is Health Informaton Technology Investment Related to Fnancal Performance of US Hosptals? An Exploratory Analyss. Internatonal Journal of Healthcare Technology and Management. 3 (1), Parente, S. and L. Van Horn Hosptal Investment n Informaton Technology: Does Governance Make a Dfference? Avalable from (accessed December 2007). Solovy, A The Bg Payback: 2001 Survey Shows a Healthy Return on Investment for Informaton Technology. Hosptals and Health Networks. July, Wang, B., D. Burke, and T. Wan Factors Influencng Hosptal Strategy n Adoptng Health Informaton Technology. Paper presented at 2002 Annual Research Meetng, Health Servces Research: From Knowledge to Acton. Washngton, D.C. Wllamson, O Comparatve economc organzaton: The analyss of dscrete structural alternatves. Admnstratve Scence Quarterly. 36:

16 Table 1. Transacton Cost Theory Hypothess for IT Outsourcng Complexty of Servces Rendered (CMI) Costs of Outsourcng Costs of Employment Predcted IT Arrangement L L H Outsource H H L Employment H - hgh L - low 16

17 Table 2. Descrptve Statstcs Descrpton Varable Name Mean S.D. Case Mx Index casemxndex Volume of Patents In-patent days total pdtot 29, Total outpatent vsts vtot 70, Medcare / Medcad Patents % Medcare npatent medcarepercent % Medcad npatent medcadpercent Organzatonal Status Government - federal govfed Government - nonfederal govnonfed Nongovernmental, not for notforprof proft For Proft Rural Status Nonmetro nonmetro Outsource outsource Number of Observatons 79 17

18 Table 3. Logstc Regresson Results Dependent Varable: outsource (0,1) Descrpton Varable Name Coeff S.E. Margnal Effects Case Mx Index casemxndex *** Volume of Patents In-patent days total pdtot * Total outpatent vsts vtot * Medcare / Medcad Patents % Medcare npatent medcarepercent % Medcad npatent medcadpercent *** Organzatonal Status Government - federal govfed *** Government - nonfederal govnonfed *** Nongovernmental, not for notforprof proft Rural Status Nonmetro nonmetro Constant *** Pseudo R Note: *, **, and *** ndcate statstcal dfferences from 0 at the p =.10,.05, and.01 levels, respectvely 18

19 Table 4. Correlaton Matrx outsource casem xndex pdtot vtot medcare percent medcad percent govfed govnonfed notforprof nonmetro outsource 1 casemxndex pdtot vtot medcarepercent medcadpercent govfed govnonfed notforprof nonmetro

Can Auto Liability Insurance Purchases Signal Risk Attitude?

Can Auto Liability Insurance Purchases Signal Risk Attitude? Internatonal Journal of Busness and Economcs, 2011, Vol. 10, No. 2, 159-164 Can Auto Lablty Insurance Purchases Sgnal Rsk Atttude? Chu-Shu L Department of Internatonal Busness, Asa Unversty, Tawan Sheng-Chang

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

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

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

Staff Paper. Farm Savings Accounts: Examining Income Variability, Eligibility, and Benefits. Brent Gloy, Eddy LaDue, and Charles Cuykendall

Staff Paper. Farm Savings Accounts: Examining Income Variability, Eligibility, and Benefits. Brent Gloy, Eddy LaDue, and Charles Cuykendall SP 2005-02 August 2005 Staff Paper Department of Appled Economcs and Management Cornell Unversty, Ithaca, New York 14853-7801 USA Farm Savngs Accounts: Examnng Income Varablty, Elgblty, and Benefts Brent

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

Number of Levels Cumulative Annual operating Income per year construction costs costs ($) ($) ($) 1 600,000 35,000 100,000 2 2,200,000 60,000 350,000

Number of Levels Cumulative Annual operating Income per year construction costs costs ($) ($) ($) 1 600,000 35,000 100,000 2 2,200,000 60,000 350,000 Problem Set 5 Solutons 1 MIT s consderng buldng a new car park near Kendall Square. o unversty funds are avalable (overhead rates are under pressure and the new faclty would have to pay for tself from

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

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

Institute of Informatics, Faculty of Business and Management, Brno University of Technology,Czech Republic

Institute of Informatics, Faculty of Business and Management, Brno University of Technology,Czech Republic Lagrange Multplers as Quanttatve Indcators n Economcs Ivan Mezník Insttute of Informatcs, Faculty of Busness and Management, Brno Unversty of TechnologCzech Republc Abstract The quanttatve role of Lagrange

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

How Much is E-Commerce Worth to Rural Businesses?

How Much is E-Commerce Worth to Rural Businesses? How Much s E-Commerce Worth to Rural Busnesses? Susan Watson, Assstant Professor O. John Nwoha, Program Assocate Gary Kennedy, Department Head and Assocate Professor Kenneth Rea, Vce Presdent for Academc

More information

An Empirical Study of Search Engine Advertising Effectiveness

An Empirical Study of Search Engine Advertising Effectiveness An Emprcal Study of Search Engne Advertsng Effectveness Sanjog Msra, Smon School of Busness Unversty of Rochester Edeal Pnker, Smon School of Busness Unversty of Rochester Alan Rmm-Kaufman, Rmm-Kaufman

More information

Credit Limit Optimization (CLO) for Credit Cards

Credit Limit Optimization (CLO) for Credit Cards Credt Lmt Optmzaton (CLO) for Credt Cards Vay S. Desa CSCC IX, Ednburgh September 8, 2005 Copyrght 2003, SAS Insttute Inc. All rghts reserved. SAS Propretary Agenda Background Tradtonal approaches to credt

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

Data Mining from the Information Systems: Performance Indicators at Masaryk University in Brno

Data Mining from the Information Systems: Performance Indicators at Masaryk University in Brno Data Mnng from the Informaton Systems: Performance Indcators at Masaryk Unversty n Brno Mkuláš Bek EUA Workshop Strasbourg, 1-2 December 2006 1 Locaton of Brno Brno EUA Workshop Strasbourg, 1-2 December

More information

The Development of Web Log Mining Based on Improve-K-Means Clustering Analysis

The Development of Web Log Mining Based on Improve-K-Means Clustering Analysis The Development of Web Log Mnng Based on Improve-K-Means Clusterng Analyss TngZhong Wang * College of Informaton Technology, Luoyang Normal Unversty, Luoyang, 471022, Chna wangtngzhong2@sna.cn Abstract.

More information

Answer: A). There is a flatter IS curve in the high MPC economy. Original LM LM after increase in M. IS curve for low MPC economy

Answer: A). There is a flatter IS curve in the high MPC economy. Original LM LM after increase in M. IS curve for low MPC economy 4.02 Quz Solutons Fall 2004 Multple-Choce Questons (30/00 ponts) Please, crcle the correct answer for each of the followng 0 multple-choce questons. For each queston, only one of the answers s correct.

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

Criminal Justice System on Crime *

Criminal Justice System on Crime * On the Impact of the NSW Crmnal Justce System on Crme * Dr Vasls Sarafds, Dscplne of Operatons Management and Econometrcs Unversty of Sydney * Ths presentaton s based on jont work wth Rchard Kelaher 1

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

LIFETIME INCOME OPTIONS

LIFETIME INCOME OPTIONS LIFETIME INCOME OPTIONS May 2011 by: Marca S. Wagner, Esq. The Wagner Law Group A Professonal Corporaton 99 Summer Street, 13 th Floor Boston, MA 02110 Tel: (617) 357-5200 Fax: (617) 357-5250 www.ersa-lawyers.com

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 APPOINTMENT ORDER OUTPATIENT SCHEDULING SYSTEM THAT IMPROVES OUTPATIENT EXPERIENCE

AN APPOINTMENT ORDER OUTPATIENT SCHEDULING SYSTEM THAT IMPROVES OUTPATIENT EXPERIENCE AN APPOINTMENT ORDER OUTPATIENT SCHEDULING SYSTEM THAT IMPROVES OUTPATIENT EXPERIENCE Yu-L Huang Industral Engneerng Department New Mexco State Unversty Las Cruces, New Mexco 88003, U.S.A. Abstract Patent

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

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

Chapter 11 Practice Problems Answers

Chapter 11 Practice Problems Answers Chapter 11 Practce Problems Answers 1. Would you be more wllng to lend to a frend f she put all of her lfe savngs nto her busness than you would f she had not done so? Why? Ths problem s ntended to make

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

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

Multiple-Period Attribution: Residuals and Compounding

Multiple-Period Attribution: Residuals and Compounding Multple-Perod Attrbuton: Resduals and Compoundng Our revewer gave these authors full marks for dealng wth an ssue that performance measurers and vendors often regard as propretary nformaton. In 1994, Dens

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

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

Course outline. Financial Time Series Analysis. Overview. Data analysis. Predictive signal. Trading strategy

Course outline. Financial Time Series Analysis. Overview. Data analysis. Predictive signal. Trading strategy Fnancal Tme Seres Analyss Patrck McSharry patrck@mcsharry.net www.mcsharry.net Trnty Term 2014 Mathematcal Insttute Unversty of Oxford Course outlne 1. Data analyss, probablty, correlatons, vsualsaton

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

Tinbergen Institute Amsterdam Keizersgracht 482 1017 EG Amsterdam The Netherlands Tel.: +31.(0)20.5513500 Fax: +31.(0)20.5513555

Tinbergen Institute Amsterdam Keizersgracht 482 1017 EG Amsterdam The Netherlands Tel.: +31.(0)20.5513500 Fax: +31.(0)20.5513555 7, 7LQEHUJHQ,QVWLWXWH'LVFXVVLRQ3DSHU 7KH9DOXHRI+XPDQDQG6RFLDO &DSLWDO,QYHVWPHQWVIRUWKH %XVLQHVV3HUIRUPDQFHRI6WDUW XSV 1LHOV%RVPD 0LUMDPYDQ3UDDJ 5R\7KXULN *HUULWGH:LW Ã (,0%XVLQHVVDQG3ROLF\5HVHDUFK=RHWHUPHHU

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

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

1. Measuring association using correlation and regression

1. Measuring association using correlation and regression How to measure assocaton I: Correlaton. 1. Measurng assocaton usng correlaton and regresson We often would lke to know how one varable, such as a mother's weght, s related to another varable, such as a

More information

Sharing the fame of the ISO Standard Adoption: Quality Supply Chain Effect Evidence from the French Employer Survey

Sharing the fame of the ISO Standard Adoption: Quality Supply Chain Effect Evidence from the French Employer Survey Sharng the fame of the ISO Standard Adopton: Qualty Supply Chan Effect Evdence from the French Employer Survey Marc-Arthur DIAYE CREST (ENSAI) and Centre d'etudes de l'emplo. marc-arthur.daye@ensa.fr Nathale

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

The OC Curve of Attribute Acceptance Plans

The OC Curve of Attribute Acceptance Plans The OC Curve of Attrbute Acceptance Plans The Operatng Characterstc (OC) curve descrbes the probablty of acceptng a lot as a functon of the lot s qualty. Fgure 1 shows a typcal OC Curve. 10 8 6 4 1 3 4

More information

To manage leave, meeting institutional requirements and treating individual staff members fairly and consistently.

To manage leave, meeting institutional requirements and treating individual staff members fairly and consistently. Corporate Polces & Procedures Human Resources - Document CPP216 Leave Management Frst Produced: Current Verson: Past Revsons: Revew Cycle: Apples From: 09/09/09 26/10/12 09/09/09 3 years Immedately Authorsaton:

More information

Efficient Project Portfolio as a tool for Enterprise Risk Management

Efficient Project Portfolio as a tool for Enterprise Risk Management Effcent Proect Portfolo as a tool for Enterprse Rsk Management Valentn O. Nkonov Ural State Techncal Unversty Growth Traectory Consultng Company January 5, 27 Effcent Proect Portfolo as a tool for Enterprse

More information

The Effects of Human Resource Management on Workers' Wages and Firm Productivity

The Effects of Human Resource Management on Workers' Wages and Firm Productivity The Effects of Human Resource Management on Workers' Wages and Frm Productvty ROA-RM-2003/9E Andres de Grp, Inge Seben Research Centre for Educaton and the Labour Market Faculty of Economcs and Busness

More information

Intra-year Cash Flow Patterns: A Simple Solution for an Unnecessary Appraisal Error

Intra-year Cash Flow Patterns: A Simple Solution for an Unnecessary Appraisal Error Intra-year Cash Flow Patterns: A Smple Soluton for an Unnecessary Apprasal Error By C. Donald Wggns (Professor of Accountng and Fnance, the Unversty of North Florda), B. Perry Woodsde (Assocate Professor

More information

ANALYZING THE RELATIONSHIPS BETWEEN QUALITY, TIME, AND COST IN PROJECT MANAGEMENT DECISION MAKING

ANALYZING THE RELATIONSHIPS BETWEEN QUALITY, TIME, AND COST IN PROJECT MANAGEMENT DECISION MAKING ANALYZING THE RELATIONSHIPS BETWEEN QUALITY, TIME, AND COST IN PROJECT MANAGEMENT DECISION MAKING Matthew J. Lberatore, Department of Management and Operatons, Vllanova Unversty, Vllanova, PA 19085, 610-519-4390,

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

Study on Model of Risks Assessment of Standard Operation in Rural Power Network

Study on Model of Risks Assessment of Standard Operation in Rural Power Network Study on Model of Rsks Assessment of Standard Operaton n Rural Power Network Qngj L 1, Tao Yang 2 1 Qngj L, College of Informaton and Electrcal Engneerng, Shenyang Agrculture Unversty, Shenyang 110866,

More information

Module 2 LOSSLESS IMAGE COMPRESSION SYSTEMS. Version 2 ECE IIT, Kharagpur

Module 2 LOSSLESS IMAGE COMPRESSION SYSTEMS. Version 2 ECE IIT, Kharagpur Module LOSSLESS IMAGE COMPRESSION SYSTEMS Lesson 3 Lossless Compresson: Huffman Codng Instructonal Objectves At the end of ths lesson, the students should be able to:. Defne and measure source entropy..

More information

Determinants of compliance with healthcare waste management regulations by European private healthcare facilities

Determinants of compliance with healthcare waste management regulations by European private healthcare facilities Internatonal Journal of Chemcal and Envronmental Engneerng Systems (IJCEES) www.journal-jcees.com ISSN: 0976-3716 (prnt) IJCEES Vol 3(2):78-84, 2012 Determnants of complance wth healthcare waste management

More information

Hot and easy in Florida: The case of economics professors

Hot and easy in Florida: The case of economics professors Research n Hgher Educaton Journal Abstract Hot and easy n Florda: The case of economcs professors Olver Schnusenberg The Unversty of North Florda Cheryl Froehlch The Unversty of North Florda We nvestgate

More information

The influence of supplementary health insurance on switching behaviour: evidence on Swiss data

The influence of supplementary health insurance on switching behaviour: evidence on Swiss data Workng Paper n 07-02 The nfluence of supplementary health nsurance on swtchng behavour: evdence on Swss data Brgtte Dormont, Perre- Yves Geoffard, Karne Lamraud The nfluence of supplementary health nsurance

More information

Traffic-light a stress test for life insurance provisions

Traffic-light a stress test for life insurance provisions MEMORANDUM Date 006-09-7 Authors Bengt von Bahr, Göran Ronge Traffc-lght a stress test for lfe nsurance provsons Fnansnspetonen P.O. Box 6750 SE-113 85 Stocholm [Sveavägen 167] Tel +46 8 787 80 00 Fax

More information

Transition Matrix Models of Consumer Credit Ratings

Transition Matrix Models of Consumer Credit Ratings Transton Matrx Models of Consumer Credt Ratngs Abstract Although the corporate credt rsk lterature has many studes modellng the change n the credt rsk of corporate bonds over tme, there s far less analyss

More information

Latent Class Regression. Statistics for Psychosocial Research II: Structural Models December 4 and 6, 2006

Latent Class Regression. Statistics for Psychosocial Research II: Structural Models December 4 and 6, 2006 Latent Class Regresson Statstcs for Psychosocal Research II: Structural Models December 4 and 6, 2006 Latent Class Regresson (LCR) What s t and when do we use t? Recall the standard latent class model

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

1.1 The University may award Higher Doctorate degrees as specified from time-to-time in UPR AS11 1.

1.1 The University may award Higher Doctorate degrees as specified from time-to-time in UPR AS11 1. HIGHER DOCTORATE DEGREES SUMMARY OF PRINCIPAL CHANGES General changes None Secton 3.2 Refer to text (Amendments to verson 03.0, UPR AS02 are shown n talcs.) 1 INTRODUCTION 1.1 The Unversty may award Hgher

More information

RESPONDING TO FINANCIAL PRESSURES. THE EFFECT OF MANAGED CARE ON HOSPITALS PROVISION OF CHARITY CARE

RESPONDING TO FINANCIAL PRESSURES. THE EFFECT OF MANAGED CARE ON HOSPITALS PROVISION OF CHARITY CARE Workng Paper WP-782 February, 2009 RESPONDING TO FINANCIAL PRESSURES. THE EFFECT OF MANAGED CARE ON HOSPITALS PROVISION OF CHARITY CARE Núra Mas IESE Busness School Unversty of Navarra Av. Pearson, 21

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

Bayesian Network Based Causal Relationship Identification and Funding Success Prediction in P2P Lending

Bayesian Network Based Causal Relationship Identification and Funding Success Prediction in P2P Lending Proceedngs of 2012 4th Internatonal Conference on Machne Learnng and Computng IPCSIT vol. 25 (2012) (2012) IACSIT Press, Sngapore Bayesan Network Based Causal Relatonshp Identfcaton and Fundng Success

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

The Analysis of Outliers in Statistical Data

The Analysis of Outliers in Statistical Data THALES Project No. xxxx The Analyss of Outlers n Statstcal Data Research Team Chrysses Caron, Assocate Professor (P.I.) Vaslk Karot, Doctoral canddate Polychrons Economou, Chrstna Perrakou, Postgraduate

More information

The Journal of Applied Business Research January/February 2010 Volume 26, Number 1

The Journal of Applied Business Research January/February 2010 Volume 26, Number 1 Product Dversfcaton In Compettve R&D-Intensve Frms: An Emprcal Study Of The Computer Software Industry C. Catherne Chang, Elon Unversty, USA ABSTRACT Ths paper studes the effect of dversfcaton nto dfferent

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

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

Robust Design of Public Storage Warehouses. Yeming (Yale) Gong EMLYON Business School

Robust Design of Public Storage Warehouses. Yeming (Yale) Gong EMLYON Business School Robust Desgn of Publc Storage Warehouses Yemng (Yale) Gong EMLYON Busness School Rene de Koster Rotterdam school of management, Erasmus Unversty Abstract We apply robust optmzaton and revenue management

More information

Small pots lump sum payment instruction

Small pots lump sum payment instruction For customers Small pots lump sum payment nstructon Please read these notes before completng ths nstructon About ths nstructon Use ths nstructon f you re an ndvdual wth Aegon Retrement Choces Self Invested

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

An empirical study for credit card approvals in the Greek banking sector

An empirical study for credit card approvals in the Greek banking sector An emprcal study for credt card approvals n the Greek bankng sector Mara Mavr George Ioannou Bergamo, Italy 17-21 May 2004 Management Scences Laboratory Department of Management Scence & Technology Athens

More information

Student Performance in Online Quizzes as a Function of Time in Undergraduate Financial Management Courses

Student Performance in Online Quizzes as a Function of Time in Undergraduate Financial Management Courses Student Performance n Onlne Quzzes as a Functon of Tme n Undergraduate Fnancal Management Courses Olver Schnusenberg The Unversty of North Florda ABSTRACT An nterestng research queston n lght of recent

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

Determinants of employment-based private health insurance coverage in Denmark

Determinants of employment-based private health insurance coverage in Denmark Nordc Journal of Health Economcs Onlne ISSN: 1892-9710 Determnants of employment-based prvate health nsurance coverage n Denmark ASTRID KIIL* k@sam.sdu.dk Unversty of Southern Denmark Abstract: Ths study

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

Analyzing Search Engine Advertising: Firm Behavior and Cross-Selling in Electronic Markets

Analyzing Search Engine Advertising: Firm Behavior and Cross-Selling in Electronic Markets WWW 008 / Refereed Track: Internet Monetzaton - Sponsored Search Aprl -5, 008 Beng, Chna Analyzng Search Engne Advertsng: Frm Behavor and Cross-Sellng n Electronc Markets Anndya Ghose Stern School of Busness

More information

Does external knowledge sourcing matter for innovation? Evidence from the Spanish manufacturing industry

Does external knowledge sourcing matter for innovation? Evidence from the Spanish manufacturing industry Does external knowledge sourcng matter for nnovaton? Evdence from the Spansh manufacturng ndustry Jader Vega-Jurado *, Antono Gutérrez-Graca and Ignaco Fernández-de-Luco. INGENIO, (CSIC-UPV), Insttute

More information

High Correlation between Net Promoter Score and the Development of Consumers' Willingness to Pay (Empirical Evidence from European Mobile Markets)

High Correlation between Net Promoter Score and the Development of Consumers' Willingness to Pay (Empirical Evidence from European Mobile Markets) Hgh Correlaton between et Promoter Score and the Development of Consumers' Wllngness to Pay (Emprcal Evdence from European Moble Marets Ths paper shows that the correlaton between the et Promoter Score

More information

Small and medium-sized enterprises, bank relationship strength, and the use of venture capital

Small and medium-sized enterprises, bank relationship strength, and the use of venture capital Small and medum-szed enterprses, bank relatonshp strength, and the use of venture captal Allen N. Berger a,b,c and Klaus Schaeck d,* a Moore School of Busness, Unversty of South Carolna, Columba, SC 29208,

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

PRIVATE ENVIRONMENTAL ACTIVISM AND THE SELECTION AND RESPONSE OF FIRM TARGETS

PRIVATE ENVIRONMENTAL ACTIVISM AND THE SELECTION AND RESPONSE OF FIRM TARGETS PRIVATE ENVIRONMENTAL ACTIVISM AN THE SELECTION AN RESPONSE OF FIRM TARGETS Mchael J. Lenox* Assocate Professor of Strategy Fuqua School of Busness uke Unversty PO Box 90210 urham, NC 27708 Tel: (919)

More information

Using Series to Analyze Financial Situations: Present Value

Using Series to Analyze Financial Situations: Present Value 2.8 Usng Seres to Analyze Fnancal Stuatons: Present Value In the prevous secton, you learned how to calculate the amount, or future value, of an ordnary smple annuty. The amount s the sum of the accumulated

More information

Exhaustive Regression. An Exploration of Regression-Based Data Mining Techniques Using Super Computation

Exhaustive Regression. An Exploration of Regression-Based Data Mining Techniques Using Super Computation Exhaustve Regresson An Exploraton of Regresson-Based Data Mnng Technques Usng Super Computaton Antony Daves, Ph.D. Assocate Professor of Economcs Duquesne Unversty Pttsburgh, PA 58 Research Fellow The

More information

Using an Ordered Probit Regression Model to Assess the Performance of Real Estate Brokers

Using an Ordered Probit Regression Model to Assess the Performance of Real Estate Brokers Usng an Ordered Probt Regresson Model to Assess the Performance of Real Estate Brokers Chun-Chang Lee, Department of Real Estate Management, Natonal Pngtung Insttute of Commerce, Tawan Shu-Man You, Department

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

An analysis of factors affecting the adoption of economic and productive data recording methods of Chilean farmers

An analysis of factors affecting the adoption of economic and productive data recording methods of Chilean farmers Cen. Inv. Agr. 37(2):101-109. 2010 www.rca.uc.cl research paper An analyss of factors affectng the adopton of economc and productve data recordng methods of Chlean farmers Alejandra Engler, 1 and Roger

More information

Computer-assisted Auditing for High- Volume Medical Coding

Computer-assisted Auditing for High- Volume Medical Coding Computer-asssted Audtng for Hgh-Volume Medcal Codng Computer-asssted Audtng for Hgh- Volume Medcal Codng by Danel T. Henze, PhD; Peter Feller, MS; Jerry McCorkle, BA; and Mark Morsch, MS Abstract The volume

More information

Hollinger Canadian Publishing Holdings Co. ( HCPH ) proceeding under the Companies Creditors Arrangement Act ( CCAA )

Hollinger Canadian Publishing Holdings Co. ( HCPH ) proceeding under the Companies Creditors Arrangement Act ( CCAA ) February 17, 2011 Andrew J. Hatnay ahatnay@kmlaw.ca Dear Sr/Madam: Re: Re: Hollnger Canadan Publshng Holdngs Co. ( HCPH ) proceedng under the Companes Credtors Arrangement Act ( CCAA ) Update on CCAA Proceedngs

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

Comparing Performance Metrics in Organic Search with Sponsored Search Advertising

Comparing Performance Metrics in Organic Search with Sponsored Search Advertising Comparng erformance Metrcs n Organc Search wth Sponsored Search Advertsng Anndya Ghose Stern School of Busness ew York Unversty ew York, Y-1001 aghose@stern.nyu.edu Sha Yang Stern School of Busness ew

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

Efficiency Test on Taiwan s Life Insurance Industry- Using X-Efficiency Approach

Efficiency Test on Taiwan s Life Insurance Industry- Using X-Efficiency Approach Informaton and Management Scences Volume 18, Number 1, pp. 37-48, 2007 Effcency Test on Tawan s Lfe Insurance Industry- Usng X-Effcency Approach James C. Hao Tamkang Unversty R.O.C. Abstract Usng twenty-three

More information

7.5. Present Value of an Annuity. Investigate

7.5. Present Value of an Annuity. Investigate 7.5 Present Value of an Annuty Owen and Anna are approachng retrement and are puttng ther fnances n order. They have worked hard and nvested ther earnngs so that they now have a large amount of money on

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

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

VoIP Pricing in Competitive Telephony Markets

VoIP Pricing in Competitive Telephony Markets o rcng n Compettve Telephony Markets Yung-Mng L nsttute of nformaton Management Natonal Chao Tung Unversty, Tawan 886-3-57111 Ext 57414 yml@mal.nctu.edu.tw Shh-Wen Chu nsttute of nformaton Management Natonal

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

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

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

Proceedings of the Annual Meeting of the American Statistical Association, August 5-9, 2001

Proceedings of the Annual Meeting of the American Statistical Association, August 5-9, 2001 Proceedngs of the Annual Meetng of the Amercan Statstcal Assocaton, August 5-9, 2001 LIST-ASSISTED SAMPLING: THE EFFECT OF TELEPHONE SYSTEM CHANGES ON DESIGN 1 Clyde Tucker, Bureau of Labor Statstcs James

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

Offshoring and Immigrant Employment: Firm-level theory and evidence

Offshoring and Immigrant Employment: Firm-level theory and evidence Offshorng and Immgrant Employment: Frm-level theory and evdence Gorgo Barba Navarett () Guseppe Bertola () Alessandro Sembenell () December 2008 Abstract: In an Italan dataset wth frm-level nformaton on

More information