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on Insurance Economics |
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Issue of 2021‒09‒06
twenty-one papers chosen by Soumitra K. Mallick Indian Institute of Social Welfare and Business Management |
| By: | Zapata, Samuel D.; García, José María |
| Keywords: | Risk and Uncertainty, Agricultural and Food Policy, Agribusiness |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea21:312672&r= |
| By: | Bulut, Harun; Hennessy, David A. |
| Keywords: | Agricultural and Food Policy, Risk and Uncertainty, Agricultural Finance |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea21:312738&r= |
| By: | Aglasan, Serkan; Rejesus, Roderick M. |
| Keywords: | Production Economics, Risk and Uncertainty, Agricultural and Food Policy |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea21:312769&r= |
| By: | April Yanyuan Wu; Denise Hoffman; Paul O’Leary |
| Abstract: | Several factors suggest that opioid use may be common among applicants to Social Security Disability Insurance (SSDI): the prevalence of opioid use, the suspected link between opioid use and declining rates of work, and the large share of new SSDI awardees who have conditions associated with opioid use. |
| Keywords: | Opioid, SSDI, social security disability insurance |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:ce22984efaf141d2992157c07d3bb953&r= |
| By: | Chen, Qihui; Pei, Chunchen |
| Keywords: | Food Consumption/Nutrition/Food Safety, Health Economics and Policy, Community/Rural/Urban Development |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea21:312744&r= |
| By: | Adjemian, Michael K.; Le, Han; Robe, Michel A. |
| Keywords: | Risk and Uncertainty, Marketing, Agricultural and Food Policy |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea21:312872&r= |
| By: | Lambert, Lixia H.; Hagerman, Amy D. |
| Keywords: | Agricultural and Food Policy, Institutional and Behavioral Economics, Agricultural Finance |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea21:312891&r= |
| By: | Myhre, Andreas |
| Abstract: | While kinks are prevalent in tax and transfer systems, the fiscal revenue and behavioral responses are not fully understood. In disability insurance (DI) programs, for instance, kinks help balance the moral hazard effects from the induced entry with the provision of work incentives for recipients who regain their ability to work. Using quasi-random variation in kink points in the benefit schedule for Norwegian DI recipients, I identify intensive and extensive margin earnings responses to the implicit tax on earnings as DI benefits are phased out above the kink. To identify the intensive margin responses, I implement a non-parametric bunching design that does not require functional form assumptions or deciding an excluded region around the kink. Responses correspond to an earnings elasticity with respect to the implicit net-of-tax rate of about 0.18. Using a regression discontinuity design, I further show that the kink in the benefit schedule induces significant responses at the extensive margin. I use the estimated earnings responses to evaluate how the benefit offset affects program costs, and find that relaxing the benefit offset reduces public expenditures only if program entry is very inelastic. My findings speak to recent policy-proposals aiming to improve work incentives of DI recipients. |
| Keywords: | labor supply, disability insurance, policy evaluation, bunching |
| JEL: | H53 H55 I38 J21 |
| Date: | 2021–06–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:109547&r= |
| By: | Haaris Mateen ⓡ; Joseph E. Stiglitz ⓡ; Jungyoll Yun |
| Abstract: | Imperfections in risk and capital markets imply that individuals who lose jobs suffer from imperfect smoothing of consumption across states and times. Compared to the first best, there will be too little search. Optimal unemployment programs, which balance the marginal benefit of consumption smoothing vs. the marginal cost of the insurance externality, increase welfare and may even increase GDP. Our analytical results suggest that welfare is higher if the unemployment benefits program includes income-contingent unemployment loans (ICL), where the amount repaid depends on the individual’s future income. Such loans can be financed by a risk premium imposed on the unemployed who avail themselves of the loans, and partially substitute for unemployment insurance (UI) benefits. Optimal unemployment benefits programs (UB) with ICL do a better job of smoothing consumption across states and time, and in particular total benefits when unemployed increase. We analyze how changes in key parameters, such as the degree of risk aversion and the nature of post-employment work, affect the design of the optimal UB program and the magnitude of the incremental benefits from including income-contingent loans. |
| JEL: | D15 H53 H81 I38 J64 J65 |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:29198&r= |
| By: | Laura Kimmey; David Jones; Michael F. Furukawa; Rachel Machta; Daniel Miller; Eugene Rich |
| Abstract: | This analysis leverages new data from the Agency for Healthcare Research and Quality Compendium of U.S. Health Systems to describe the percentage of health systems that offered a health plan in 2018 and the system characteristics associated with offering any health plan and by type of plan. |
| Keywords: | health systems, consolidation, health insurance, health plans |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:ba96a41e3a12490d8d7abafd4049c305&r= |
| By: | Deborah N. Peikes; Lorenzo Moreno; Sean Michael Orzol |
| Abstract: | Over the past 25 years, evaluators of social programs have searched for nonexperimental methods that can substitute effectively for experimental ones. |
| Keywords: | Case study , Evaluation design , Nonexperimental methods , PSM , Randomized design , Social Security Disability Insurance , Supplemental Security Income |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:dd0866e4646a4e0ea77079d5b64c1027&r= |
| By: | Erin Weir Lakhmani; Danielle Chelminsky; Alena Tourtellotte; Alyssa Bosold; Debra Lipson; James Verdier |
| Abstract: | With support from MACPAC, Mathematica studied state D-SNP contracting strategies aimed at integrating Medicare and Medicaid. A report and issue brief summarize key findings, including the importance of state context and resources; challenges in rural areas; and considering potential trade-offs and unintended consequences of some strategies. |
| Keywords: | Dual eligible, dually eligible individuals, D-SNP, integrated care, Medicare, Medicaid |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:7ba469baa340473e84253b7a02c46264&r= |
| By: | Carsten Schröder |
| Abstract: | The aim of the project SOEP-RV is to link data from participants in the German Socio-Economic Panel (SOEP) survey to their individual Deutsche Rentenversicherung (German Pension Insurance) records. For all SOEP respondents who give explicit consent to record linkage, SOEP-RV creates a linked dataset that combines the comprehensive multi-topic SOEP data with detailed cross-sectional and longitudinal data on social security pension records covering the individual’s entire insurance history. This article provides an overview of the record linkage project, highlights potentials for analysis of the linked data, compares key SOEP and pension insurance variables, and suggests a re-weighting procedure that corrects for selectivity. It concludes with details on the process of obtaining the data for scientific use. |
| Keywords: | record linkage, SOEP, SOEP-RV, pension records, consent |
| JEL: | C89 C18 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp1137&r= |
| By: | Hampus Engsner; Filip Lindskog; Julie Thoegersen |
| Abstract: | We study market-consistent valuation of liability cash flows motivated by current regulatory frameworks for the insurance industry. Building on the theory on multiple-prior optimal stopping we propose a valuation functional with sound economic properties that applies to any liability cash flow. Whereas a replicable cash flow is assigned the market value of the replicating portfolio, a cash flow that is not fully replicable is assigned a value which is the sum of the market value of a replicating portfolio and a positive margin. The margin is a direct consequence of considering a hypothetical transfer of the liability cash flow from an insurance company to an empty corporate entity set up with the sole purpose to manage the liability run-off, subject to repeated capital requirements, and considering the valuation of this entity from the owner's perspective taking model uncertainty into account. Aiming for applicability, we consider a detailed insurance application and explain how the optimisation problems over sets of probability measures can be cast as simpler optimisation problems over parameter sets corresponding to parameterised density processes appearing in applications. |
| Date: | 2021–09 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2109.00306&r= |
| By: | Liepmann, Hannah.; Pignatti, Clemente. |
| Abstract: | We analyze for the first time the welfare effects of unemployment benefits (UBs) in a context of high infor- mality, exploiting matched administrative and survey data with individual-level information on UB receipt, formal and informal employment, wages and consumption. Using a difference-in- differences approach, we find that dismissal from a formal job causes a large drop in consumption, which is between three to six times larger than estimates for developed economies. This is generated by a permanent shift of UB re- cipients towards informal employment, where they earn substantially lower wages. We then exploit a kink in benefits and show that more generous UBs delay program exit through a substitution of formal with informal employment. However, the disincentive effects are small and short-lived. Because of the high insurance value and the low efficiency costs, welfare effects from increasing UBs are positive for a range of values of the coefficient of relative risk aversion. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ilo:ilowps:995141693302676&r= |
| By: | R.L. Gudmundarson; M. Guerra; A. B. de Moura |
| Abstract: | In this work the ruin probability of the Lundberg risk process is used as a criterion for determining the optimal security loading of premia in the presence of price-sensitive demand for insurance. Both single and aggregated claim processes are considered and the independent and the dependent cases are analyzed. For the single-risk case, we show that the optimal loading does not depend on the initial reserve. In the multiple risk case we account for arbitrary dependency structures between different risks and for dependencies between the probabilities of a client acquiring policies for different risks. In this case, the optimal loadings depend on the initial reserve. In all cases the loadings minimizing the ruin probability do not coincide with the loadings maximizing the expected profit. |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:ise:remwps:wp01932021&r= |
| By: | Sean R. Townsend; Gary S. Phillips; Reena Duseja; Lemeneh Tefera; Derek Cruikshank; Robert Dickerson; Bryant Nguyen; Christa A. Schorr; Mitchell M. Levy; Phillip Dellinger; William A. Conway; Warren S. Browner; Emanuel P. Rivers |
| Abstract: | U.S. hospitals have reported compliance with the SEP-1 quality measure to Medicare since 2015. Finding an association between compliance and outcomes is essential to gauge measure effectiveness. |
| Keywords: | Compliance, length-of-stay, Medicare, mortality, propensity score matching, sepsis, sepsis bundles, septic shock, severe sepsis |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:7e22ca91733f40f7bed1aa9841fcea51&r= |
| By: | Jeehoon Han; Bruce D. Meyer; James X. Sullivan |
| Abstract: | We investigate how material well-being has changed over time for single mother headed families—the primary group affected by welfare reform and other policy changes of the 1990s. We focus on consumption as well as other indicators including components of consumption, measures of housing quality, and health insurance coverage. The results provide strong evidence that the material circumstances of single mothers improved in the decades following welfare reform. The consumption of the most disadvantaged single mother headed families—those with low consumption or low education—rose noticeably over time and at a faster rate than for those in comparison groups. |
| JEL: | D12 D31 I31 I32 I38 |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:29188&r= |
| By: | Danielle Whicher; Rachel Machta; David Jones; Michael F. Furukawa; Eugene Rich |
| Abstract: | This brief examines health system and provider participation in alternative payment models in 2018 using data from the Agency for Healthcare Research and Quality Compendium of U.S. Health Systems. |
| Keywords: | health systems, consolidation, alternative payment models, Medicare |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:478873df01c84fa0942eb6f3d7d7cd84&r= |
| By: | Luis García (Departamento de Economía de la Pontificia Universidad Católica del Perú); Crissy Rojas (Departamento de Economía de la Pontificia Universidad Católica del Perú) |
| Abstract: | En conocido que el gasto de bolsillo en salud es una de los factores que afectan a los hogares del Perú y América Latina, y que los llevan a caer en pobreza. Este trabajo tiene como objetivo investigar empíricamente los principales determinantes del gasto de bolsillo en salud. En particular, se busca extender la investigación de Petrera y Jiménez (2018) mediante la utilización de datos de panel de la Encuesta Nacional de Hogares (ENAHO PANEL 2014-2018) del Perú y su aplicación a un modelo Tobit con efectos fijos, pues estas técnicas pueden controlar los efectos de algunas variables no observables que los análisis de datos de Mínimos Cuadrados Ordinarios de corte transversal de Petrera y Jiménez (2018), o el análisis Tobit de Cid y Prieto (2012) no controlan. Entre los resultados, se destaca que –además del ya conocido efecto negativo del seguro integral de salud sobre el gasto de bolsillo-, tal efecto también se encuentra en el caso del Seguro Social de Salud (Essalud), pero solo para las zonas urbanas, y también, para los no pobres. Otros hallazgos son el claro impacto positivo de las enfermedades crónicas y del impacto negativo del acceso a agua y saneamiento sobre el gasto de bolsillo. JEL Classification-JE: I10, I13, I15 |
| Keywords: | Health spending, Public insurance, Social security, Panel data, Tobit. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:pcp:pucwps:wp00500&r= |
| By: | Moffitt, Robert (Johns Hopkins University, Department of Economics); Ziliak, James |
| Abstract: | We examine trends in employment, earnings, and incomes over the last two decades in the United States, and how the safety net has responded to changing fortunes, including the shutdown of the economy in response to the Covid-19 Pandemic. The U.S. safety net is a patchwork of different programs providing in-kind as well as cash benefits and had many holes prior to the Pandemic. In addition, few of the programs are designed explicitly as automatic stabilizers. We show that the safety net response to employment losses in the Covid-19 Pandemic largely consists only of increased support from unemployment insurance and food assistance programs, an inadequate response compared to the magnitude of the downturn. We discuss options to reform social assistance in America to provide more robust income floors in times of economic downturns. |
| Keywords: | COVID-19, safety net, welfare |
| Date: | 2020–09–06 |
| URL: | http://d.repec.org/n?u=RePEc:jhu:papers:64317&r= |