nep-ias New Economics Papers
on Insurance Economics
Issue of 2018‒08‒13
fourteen papers chosen by
Soumitra K. Mallick
Indian Institute of Social Welfare and Business Management

  1. Stabilising the Euro Area through unemployment benefits re-insurance scheme By Guillaume Claveres; Jan Stráský
  2. Euro Area unemployment insurance at the time of zero nominal interest rates By Guillaume Claveres; Jan Stráský
  3. Uncertain Altruism and Non-Linear Long-Term Care Policies By Chiara Canta; Helmuth Cremer
  4. Insurance, A Guaranteed Risk Or A Risk Assumed? By CATRINA, Ersilia
  5. The Intergenerational Transmission of Welfare Dependency By Monique De Haan; Ragnhild C. Schreiner
  6. Agricultural Irrigation’s Responses to Federal Crop Insurance in the United States By Ghosh, Prasenjit; Miao, Ruiqing
  7. Work-Related Overpayments of Social Security Disability Insurance Beneficiaries: Prevalence and Descriptive Statistics By Denise Hoffman; Benjamin Fischer; John Jones; Andrew McGuirk; Miriam Loewenberg
  8. Promoting Readiness of Minors in Supplemental Security Income (PROMISE): Maryland PROMISE Process Analysis Report By Jacqueline Kauff; Todd Honeycutt; Karen Katz; Joseph Mastrianni; Adele Rizzuto
  9. Switching benefits and costs in the Irish health insurance market: an analysis of consumer surveys By Keegan, Conor; Teljeur, Conor; Turner, Brian; Thomas, Steve
  10. Health Plan Enrollees with Disability Informing Primary Care Practices and Providers about Their Quality of Care: A Randomized Trial By Lisa I. Iezzoni; Yuchiao Chang; Holly Matulewicz; Dennis Heaphy; Kimberley S. Warsett; Karen Donelan
  11. HCBS Claims Analysis Chartbook: Final Report By Victoria Peebles; Min-Young Kim; Alex Bohl; Norberto Morales; Debra Lipson
  12. Reimbursement Rates for Primary Care Services: Evidence of Spillover Effects to Behavioral Health By Johanna Catherine Maclean; Chandler McClellan; Michael F. Pesko; Daniel Polsky
  13. Medicaid Home- and Community-Based Services: Characteristics and Spending of High-Cost Users By Victoria Peebles; Min-Young Kim; Alex Bohl; Norberto Morales; Debra Lipson
  14. Should Public Elderly Care Be Provided? By Yasuoka, Masaya

  1. By: Guillaume Claveres; Jan Stráský
    Abstract: The paper examines the possible design and macroeconomic stabilisation properties of a euro area unemployment benefits re-insurance scheme using annual historical data from 2000 to 2016. The scheme we propose is similar in some aspects to the recent proposals, including the IMF’s paper on the central fiscal capacity, while preserving important re-insurance characteristics, such as experience rating and caps on cumulative balances. Counterfactual simulations for individual euro area countries suggest that the scheme, at the cost of average annual contributions of 0.17% of national GDP, could have (i) provided additional macroeconomic stabilisation in the financial crisis of 2009-2013, both at the euro area level and at the level of individual countries hit by the crisis, and (ii) avoided permanent transfers among countries.
    Keywords: fiscal integration, Macroeconomic stabilisation, risk-sharing, transfer scheme
    JEL: E61 E62 F42 H87
    Date: 2018–08–03
  2. By: Guillaume Claveres; Jan Stráský
    Abstract: The discussion about a fiscal stabilisation capacity as a way of providing more fiscal integration in the euro area has strengthened in the aftermath of the European sovereign debt crisis. Among the instruments that can be used for temporary macroeconomic stabilisation in the presence of both asymmetric and area-wide shocks, a euro area unemployment insurance scheme has attracted increased attention. We build a two-region DSGE model with supply, demand and labour market frictions and introduce in it an area-wide unemployment insurance scheme that is entitled to borrow in financial markets. The model is calibrated to the euro area core and periphery data. For a country-specific negative demand shock hitting the periphery, we find the scheme to reduce the drop in Periphery output by about one fifth and the drop in union output by about a third. The scheme is effective when some households are cut from financial markets, and even more so when the national government also loses market access.
    Keywords: fiscal union, search and matching, Unemployment insurance, zero lower bound
    JEL: E32 E52 E63 J65
    Date: 2018–08–03
  3. By: Chiara Canta; Helmuth Cremer
    Abstract: We study the design of public long-term care (LTC) insurance when the altruism of informal caregivers is uncertain. We consider non-linear policies where the LTC benefit depends on the level of informal care, which is assumed to be observable while children’s altruism is not. The traditional topping up and opting out policies are special cases of ours. Both total and informal care should increase with the children’s level of altruism. This obtains under full and asymmetric information. Social LTC, on the other hand, may be non-monotonic. Under asymmetric information, social LTC is lower than its full information level for the lowest level of altruism, while it is distorted upward for the higher level of altruism. This is explained by the need to provide incentives to high-altruism children. The implementing contract is always such that social care increases with formal care.
    Keywords: long term care, uncertain altruism, private insurance, public insurance, topping up, opting out
    JEL: H20 H50
    Date: 2018
  4. By: CATRINA, Ersilia
    Abstract: In the context of various changes in the players' composition on the insurance market, along with the changes that take place in the legislative area of the insurance system, we ask ourselves whether insurance is a guaranteed risk or a risk assumed by secure? At national level, due to the fact that within the insurance companies the internal control is not well implemented, there is no staff to pursue this goal and no mitigating measures are taken so that the risks triggered by the human decision-making factor be decreased. Because of this fact, the insurance can become a lottery for the insuree at one point because either the insuree cannot cover the damage s/he has secured, or s/he can lose as a result of some decisions taken by a representative of the insurance company. Therefore, a well-implemented and managed internal control can save both the activity of an insurance company as well as its image. That will generate a profitability, a good reputation for the insurance company, as well as policy-holders’ satisfaction. In this paper we aim to highlight the importance of internal control within insurance companies, as well as the consequences arising from a lack of internal control or its existence at a declarative level only.
    Keywords: insurance; risk; assumption; warranty; control
    JEL: G22 M40 M41
    Date: 2018–03
  5. By: Monique De Haan; Ragnhild C. Schreiner
    Abstract: There is a strong intergenerational correlation in welfare participation, but this does not imply that parental welfare receipt induces child receipt. While there are a few quasi-experimental studies that provide estimates of the causal effect of parental welfare participation for children from marginal welfare participants, we know very little about intergenerational spillovers of welfare participation onto the children of average welfare participants. By combining rich administrative data from Norway with weak mean-monotonicity assumptions, we estimate nonparametric bounds around the average causal effect of parental welfare participation on children’s welfare participation in the general population, as well as the average causal effect for children growing up in welfare-dependent families. We find that these average causal effects are considerably lower than the intergenerational correlation in welfare participation, and substantially below available local average treatment effect estimates in the literature. We further find important differences between intergenerational spillovers of disability insurance and intergenerational spillovers of financial assistance, a traditional means-tested welfare program.
    Keywords: welfare dependency, intergenerational spillovers, disability insurance, financial assistance, partial identification
    JEL: H55 I38 J62
    Date: 2018
  6. By: Ghosh, Prasenjit; Miao, Ruiqing
    Keywords: Crop Production/Industries, Environmental Economics and Policy, Risk and Uncertainty
    Date: 2018–08–04
  7. By: Denise Hoffman; Benjamin Fischer; John Jones; Andrew McGuirk; Miriam Loewenberg
    Abstract: This study quantifies the beneficiary-level prevalence, duration, and size of work-related overpayments. Among other notable findings, the results establish the high prevalence of overpayments among beneficiaries who engage in substantial gainful activity: more than 7 in 10 were overpaid.
    Keywords: Disability, SSDI, work, overpayment
    JEL: I J
  8. By: Jacqueline Kauff; Todd Honeycutt; Karen Katz; Joseph Mastrianni; Adele Rizzuto
    Abstract: This report presents findings on the implementation and operation of the Maryland PROMISE program, which was designed to (1) provide educational, vocational, and other services to SSI youth and their families and (2) improve service coordination among state and local agencies serving that population.
    Keywords: PROMISE, Promoting Readiness of Minors in Supplemental Security Income, SSI, youth, disability, Social Security Administration, Supplemental Security Income
    JEL: I J
  9. By: Keegan, Conor; Teljeur, Conor; Turner, Brian; Thomas, Steve
    Date: 2018
  10. By: Lisa I. Iezzoni; Yuchiao Chang; Holly Matulewicz; Dennis Heaphy; Kimberley S. Warsett; Karen Donelan
    Abstract: Disability advocates conducting YESHealth reported substantial difficulties contacting practices and engaging PCPs. With few exceptions, no differences were found across the three study arms in enrollee-reported outcomes.
    Keywords: physical disability, serious mental illness, quality assessment, consumer engagement, randomized trial
    JEL: I J
  11. By: Victoria Peebles; Min-Young Kim; Alex Bohl; Norberto Morales; Debra Lipson
    Abstract: This MACPAC-commissioned report describes the characteristics and service use of Medicaid enrollees who used HCBS, and analyzes Medicaid spending for these HCBS users, by state and over time.
    Keywords: long-term care, home- and community-based services, HCBS, Medicaid
    JEL: I
  12. By: Johanna Catherine Maclean; Chandler McClellan; Michael F. Pesko; Daniel Polsky
    Abstract: We study spillover effects of the largest ever increase in Medicaid primary care reimbursement rates on behavioral health and healthcare outcomes; mental illness, substance use disorders, and tobacco product use. Much of the variation in Medicaid reimbursement rates we leverage is attributable to a large federally mandated increase between 2013 and 2014 through the Affordable Care Act. We apply differences-in-differences models to survey data specifically designed to measure behavioral health outcomes over the period 2010 to 2016. We find that higher primary care Medicaid reimbursement rates improve behavioral health outcomes among enrollees. We find no evidence that behavioral healthcare service use is altered. Previous economic research shows that the mandated boost increased office visits. Thus our results suggest that primary care providers are efficient in improving behavioral health outcomes among Medicaid enrollees. Given established shortages of behavioral health providers, these findings are important from a healthcare workforce and policy perspective.
    JEL: I1 I11 I13 I18
    Date: 2018–07
  13. By: Victoria Peebles; Min-Young Kim; Alex Bohl; Norberto Morales; Debra Lipson
    Abstract: UsersMedicaid enrollees increasingly are receiving long-term services and supports (LTSS) in the home and community.
    Keywords: long-term care, home- and community-based services, HCBS, Medicaid
    JEL: I
  14. By: Yasuoka, Masaya
    Abstract: This short paper sets an elderly care model in which the public elderly care and informal elderly care provided by the family are substitutive, with examination of the dynamics of capital accumulation and the labor supply. With certain conditions, by virtue of public elderly care, informal elderly care vanishes and a full labor supply is achieved. However, this paper presents derivation of the result that the economy with informal elderly care is simultaneously socially optimal.
    Keywords: Informal care, Public elderly care
    JEL: H51 H55 J14
    Date: 2018–07–16

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