Can Auto Liability Insurance Purchases Signal Risk Attitude?
|
|
- Adela Todd
- 8 years ago
- Views:
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: scpeng@fcu.edu.tw. 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 by Oksana Lyashuk A thess submtted n partal fulfllment of the requrements for the degree of Master of Arts n Economcs
More informationDO 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 informationHARVARD 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 informationFinancial 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 informationEvidence 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 informationTesting 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 informationCovariate-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 informationAnalysis 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 informationEvidence 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 informationAn 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 informationMODELLING 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 informationADVERSE 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 informationSIMPLE 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 informationADVERSE 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 informationTwo 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 informationbenefit 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 informationGender 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 informationTesting 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 informationCausal, 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 informationHow To Calculate The Accountng Perod Of Nequalty
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 informationChapter 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 informationTraditional 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 informationA 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 informationManagement 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 informationPSYCHOLOGICAL 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 informationThe 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 informationDo 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 informationFREQUENCY 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 informationTHE 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 informationAPPLICATION 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 informationHigh 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 informationSulaiman 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 informationEstimating 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 informationSearching 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 informationThis 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! # %& ( ) +,../ 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 informationDynamics of Toursm Demand Models 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 informationPRIVATE 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 informationSurvive 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 informationAnalysis of Demand for Broadcastingng servces
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 informationAre 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 informationDEFINING %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 informationScale 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 informationCHAPTER 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 informationDetection 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 informationMacro 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 informationManagement 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 informationTHE 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 informationCahiers 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 informationEstimating 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 informationThe 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 informationStatistical 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 informationThe 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 informationFactors 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 informationWillingness 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 informationCorporate 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 informationSmall 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 informationThe 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 informationThe 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 informationIs 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 informationWORKING 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 informationSelection 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 informationMarginal 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 informationA 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 informationWorld 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 informationScaling 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 informationUnderstanding 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 informationUnderwriting 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 informationHow To Understand The Results Of The German Meris Cloud And Water Vapour Product
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 informationHow To Know If A Fscal Insurance Mechansm Shocks On An Eccu Member Country
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 informationThe 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 informationHOUSEHOLDS 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 informationSubcontracting 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 informationReturns 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 informationAwareness and Stock Market Participation
WORKING PAPER NO. 110 Awareness and Stock Market Partcpaton Lug Guso and Tullo Jappell November 2003 Ths verson June 2004 Unversty of Naples Federco II Unversty of Salerno Boccon Unversty, Mlan CSEF -
More informationThe 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 informationAn 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 informationForecasting 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 informationHeterogeneous 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 informationAn 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 informationThe 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 informationDay-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 informationNBER 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 informationTime 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 informationEmpirical Evidence of Trade Credit Uses of Brazilian Publicly Listed Companies
Avalable onlne at http:// BAR, Curtba, v. 7, n. 3, art. 2, pp. 242-259, July/Sept. 2010 Emprcal Evdence of Trade Credt Uses of Brazlan Publcly Lsted Companes Rchard Sato * E-mal address: rsato@fgvsp.br
More informationMean 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 informationBeating the Odds: Arbitrage and Wining Strategies in the Football Betting Market
Beatng the Odds: Arbtrage and Wnng Strateges n the Football Bettng Market NIKOLAOS VLASTAKIS, GEORGE DOTSIS and RAPHAEL N. MARKELLOS* ABSTRACT We examne the potental for generatng postve returns from wagerng
More informationHot 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 informationPhysical 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 informationHealth Insurance and Household Savings
Health Insurance and Household Savngs Mnchung Hsu Job Market Paper Last Updated: November, 2006 Abstract Recent emprcal studes have documented a puzzlng pattern of household savngs n the U.S.: households
More informationTraffic-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 informationTo 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 informationWhat is Candidate Sampling
What s Canddate Samplng Say we have a multclass or mult label problem where each tranng example ( x, T ) conssts of a context x a small (mult)set of target classes T out of a large unverse L of possble
More informationCHAPTER 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 informationDoes 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 informationUsing 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 informationThe Complementarities of Competition in Charitable Fundraising
The Complementartes of Competton n Chartable Fundrasng Andreas Lange Unversty of Hamburg Department of Economcs Von-Melle-Park 5 D-20146 Hamburg Germany andreas.lange@wso.un-hamburg.de Andrew Stockng Congressonal
More informationAnalyzing 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 informationGeneral or Vocational? Evidence on School Choice, Returns, and Sheep Skin Effects from Egypt 1998
Twenty-ffth Annual Meetng of The Mddle East Economc Assocaton (MEEA) Alled Socal Scence Assocatons Phladelpha, Pennsylvana January 7-9, 2005 General or Vocatonal? Evdence on School Choce, Returns, and
More informationInternet Job Search and Unemployment Durations
Internet Job Search and Unemployment Duratons Peter Kuhn Department of Economcs Unversty of Calforna, Santa Barbara Santa Barbara CA 93106 805 893 3666 pjkuhn@econ.ucsb.edu Mkal Skuterud Famly and Labour
More information