nep-ias New Economics Papers
on Insurance Economics
Issue of 2013‒03‒02
eight papers chosen by
Soumitra K Mallick
Indian Institute of Social Welfare and Business Management

  1. India: Financial System Stability Assessment Update By International Monetary Fund
  2. Physicians’ balance billing, supplemental insurance and access to health care By Izabela Jelovac
  3. Republic of Armenia: Financial System Stability Assessment By International Monetary Fund
  4. Georgia: Detailed Assessment Report on Anti-Money Laundering and Combating the Financing of Terrorism By International Monetary Fund
  5. The Youth Transition Demonstration: Lifting Employment Barriers for Youth with Disabilities. By Thomas Fraker
  6. Reducing Waste With an Efficient Medicare Prescription Drug Benefit By Dean Baker
  7. A Banking Union for the Euro Area By Rishi Goyal; Petya Koeva Brooks; Mahmood Pradhan; Thierry Tressel; Giovanni Dell'Ariccia; Ceyla Pazarbasioglu
  8. The first passage time problem for mixed-exponential jump processes with applications in insurance and finance By Chuancun Yin; Yuzhen Wen; Ying Shen

  1. By: International Monetary Fund
    Keywords: Financial system stability assessment;Commercial banks;Bank soundness;Risk management;Liquidity management;Bank resolution;Deposit insurance;Bank supervision;Capital markets;Securities regulations;Payment systems;Insurance;Reports on the Observance of Standards and Codes;India;
    Date: 2013–01–15
  2. By: Izabela Jelovac (Université de Lyon, Lyon, F-69007, France ; CNRS, GATE Lyon St Etienne,F-69130 Ecully, France)
    Abstract: Some countries allow physicians to balance bill patients, that is, to bill a fee above the one that is negotiated with, and reimbursed by the health authorities. Balance billing is known for restricting access to physicians’ services while supplemental insurance against balance billing amounts is supposed to alleviate the access problem. This paper analyzes in a theoretical setting the consequences of balance billing on the fees setting and on the inequality of access among the users of physicians’ services. It also shows that supplemental insurance against the expenses associated with balance billing, rather than alleviating the access problem, increases it.
    Keywords: Physicians’ fees, balance billing, supplemental insurance
    JEL: I14 J33
    Date: 2013
  3. By: International Monetary Fund
    Keywords: Financial system stability assessment;Financial sector;Banks;Basel Core Principles;Bank supervision;Stress testing;Liquidity management;Bank resolution;Insurance supervision;Capital markets;Pensions;Risk management;Armenia;
    Date: 2013–01–11
  4. By: International Monetary Fund
    Keywords: Anti-money laundering;Combating the financing of terrorism;Financial sector;Financial institutions;Banks;Insurance;Private sector;Legislation;International cooperation;Georgia;
    Date: 2013–01–08
  5. By: Thomas Fraker
    Keywords: The Youth Transition Demonstration; YTD; transition to adulthood for youth with disabilities; disability benefits , Supplemental Security Income (SSI); , Social Security Disability Insurance (DI), Social Security Administration (SSA)
    JEL: I J
    Date: 2013–02–28
  6. By: Dean Baker
    Abstract: When Congress was debating the Medicare drug benefit in 2003, there were many who advocated that Medicare provide the benefit as part of the traditional hospital insurance program. This was expected to save money both due to lower administrative costs and also as result of Medicare’s ability to use its market power to directly negotiate lower prices with the pharmaceutical industry. The plan that was passed instead required beneficiaries to purchase insurance from private insurers who would be subsidized by the government. It has been widely noted that the drug benefit has cost considerably less than expected. In 2011, the benefit cost $67.4 billion, just 51.3 percent of the originally projected cost. While advocates of using private insurers have claimed that lower-than-projected costs vindicate their design for the benefit, in fact the main reason that costs have been less than projected is that drug costs in general have risen much less rapidly than had been projected. This issue brief looks at the main factor behind slower-than-projected costs and how the United States can lower spending by negotiating drug prices.
    Keywords: Medicare, medicare drug benefit, prescription drug, Dean Baker, hospital insurance, pharmaceutical industry, private insurers
    JEL: I I1 I14 I18 I3 I38 H
    Date: 2013–02
  7. By: Rishi Goyal; Petya Koeva Brooks; Mahmood Pradhan; Thierry Tressel; Giovanni Dell'Ariccia; Ceyla Pazarbasioglu
    Abstract: The SDN elaborates the case for, and the design of, a banking union for the euro area. It discusses the benefits and costs of a banking union, presents a steady state view of the banking union, elaborates difficult transition issues, and briefly discusses broader EU issues. As such, it assesses current plans and provides advice. It is accompanied by three background technical notes that analyze in depth the various elements of the banking union: a single supervisory framework; a single resolution and common safety net; and urgent issues related to repair of weak banks in Europe.
    Keywords: Banking systems;Europe;Euro Area;Bank supervision;Bank regulations;Bank resolution;Deposit insurance;Financial safety nets;Monetary unions;Banking Union; Single Supervisory Mechanism; Direct Recapitalization; European Stabilization Mechanism; Resolution; Deposit Insurance; Common Backstops
    Date: 2013–02–12
  8. By: Chuancun Yin; Yuzhen Wen; Ying Shen
    Abstract: This paper stidies the first passage times to constant boundaries for mixed-exponential jump diffusion processes. Explicit solutions of the Laplace transforms of the distribution of the first passage times, the joint distribution of the first passage times and undershoot (overshoot) are obtained. As applications, we present explicit expression of the Gerber-Shiu functions for surplus processes with two-sided jumps, present the analytical solutions for popular path-dependent options such as lookback and barrier options in terms of Laplace transforms and give a closed-form expression on the price of the zero-coupon bond under a structural credit risk model with jumps.
    Date: 2013–02

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