Global and Episodic Bundling: An Overview and Considerations for Medicaid

Examines implementation issues for two payment strategies under which a group of providers receives a single payment per patient for a predefined time period for a predefined set of services and which involve risk adjustment and quality measurement

Hedging crude oil imports in developing countries

The objective of this paper is to explore the application of risk management techniques to a typical developing country state-owned oil company (SOC) involved in importing and refining crude oil and to make estimates of the potential gains from using such techniques. The paper is structured as follows. First, the authors describe the crude oil price data that they use in the study and estimate the volatility of oil prices. The next two sections discuss the nature of a typical SOC's exposure to oil prices and present risk management applications for each of the exposures identified. The following section discusses the internal and external constraints to the use of options and futures hedges typically encountered in a developing country and provides some possible remedies. The paper concludes that oil-importing developing countries could gain considerably from using financial risk management instruments if several constraints, particularly negative publicity and legal obstacles, are removed.Environmental Economics&Policies,Oil Refining&Gas Industry,Insurance&Risk Mitigation,Access to Markets,Markets and Market Access

Empirical Investigation of Flexible Pricing and Payment Alternatives on Canadian Wheat Board Pooling for Wheat

Crop Production/Industries, Marketing,

The legal framework for corporate governance: explaining the development of contract law in Germany and the United States

How are new forms of industrial organization accommodated into a countryslegal frameworks, and what effect does this have on the ability of firms toinnovate. Variations in the broad institutional organization of the German andUS political economies result in different processes of contract lawmodernization in the two countries, with important implications for innovation trajectories. The German institutional infrastructure encourages firms todevelop cooperative diversified quality production (DQP) inter-firm strategies.This is promoted through highly regulative contract laws and the existence ofstrong trade associations that firms engage to create standardized industryframeworks. These contracting arrangements allow the diffusion ofstandardized governance structures showing firms how to create rules neededto manage complex new forms of organization. While strongly supporting DQPstrategies and discouraging opportunistic product market strategies, Germanpatterns of contract law regulation place important constraints against moreinnovative product market strategies. In the United States legal resources aredecentralized across firms, trade associations have few law-makingcompetencies, and courts do not regulate the distribution of risks across firms.Contractual frameworks are developed on a firm-by-firm basis and slowlyaccommodated within the legal system through the generation of courtprecedent. This system encourages radical innovation in the law, an importantprerequisite for innovative product market strategies more generally. However,the paper shows that a necessary trade-off of legal innovation in the US is thatcourts cannot implement German-style contract law regulation to constrainopportunism, while the decentralization of legal resource inhibits the creation ofstandardized contractual frameworks needed for DQP strategies. Through anextensive game theory analysis of bargaining between courts and large firms,the paper explains why these equilibria are maintained, despite strong incentives in the German case for some large firms to deviate. -- Wie sind neue Formen industrieller Organisation an die rechtliche Verfaßtheiteines Landes angepaßt und welche Folgen hat dies für die Innovationsfähigkeitvon Unternehmen . Generelle Unterschiede in der institutionellen Organisationder jeweiligen politischen Ökonomie in Deutschland und in den USA führen zu unterschiedlichen Formen der Modernisierung des Vertragsrechts in beidenLändern. Dies hat wichtige Auswirkungen auf den Typus der Innovations-Entwicklung.Die spezifische Ausprägung des Institutionengefüges in Deutschlandbegünstigt vor allem eine kooperativ angelegte diversifizierteQualitätsproduktion (DQP), an der mehrere Unternehmen beteiligt sind. Dieswird gestützt durch ein hochreguliertes Vertragsrecht und starkeGewerkschaften; die Verbände nutzen dies, um für alle Unternehmen geltendeRegelungen zu entwickeln. Diese Art, vertragliche Vereinbarungen zuentwickeln und zu gestalten, führt zu einer allmählichen Verbreitung allgemeingültiger Governance-Strukturen, durch die die Unternehmen erfahren, wie sie Regelungen entwickeln können, um neue, komplexe Formen der Zusammenarbeit zu managen. Das in Deutschland verbreitete Vertragsrecht erweist sich als vorteilhaft für DQP-Strategien und als hinderlich für kurzfristigorientierte Produktmarktstrategien; es führt aber auch zu schwerwiegenden Einschränkungen bei der Entwicklung innovationsorientierter Produktmarktstrategien.In den USA ist die juristische Kompetenz, gerade auch, was die Klärung juristischer Grundsatzfragen angeht, auf viele Unternehmen verteilt.Gewerkschaften haben nur geringe Möglichkeiten, die Gesetzgebung zubeeinflussen und die Gerichte regulieren nicht, wie die Risiken aus derZusammenarbeit von Unternehmen aufgeteilt werden. Die rechtlichen Rahmungen vertraglicher Vereinbarungen werden fallweise in Unternehmenentwickelt; gerichtliche Musterentscheidungen passen sie dann Schritt fürSchritt an die bestehenden gesetzlichen Regeln an. Dies begünstigt radikalereInnovationen in der Gesetzgebung; sie wiederum sind generell eine wichtige Voraussetzung für innovative Produktmarktstrategien. In dem Papier wird gezeigt, daß der schnellen Innovationskraft des amerikanischenGesetzgebungssystems als Nachteil gegenübersteht, daß die Gerichte keine Regulierungen einführen können, die dem in Deutschland entwickelten Vertragsrecht vergleichbar und durch das sehr schnelle, quasi opportunistische Marktorientierungen einzuschränken wären. Die Dezentralisierung juristischerKompetenz in den USA verhindert die Schaffung eines allgemein gültigenrechtlichen Rahmens, der wiederum Voraussetzung für eine diversifizierte Qualitätsproduktion ist.Durch eine ausführliche spieltheoretische Analyse von Aushandlungsprozessen zwischen Großunternehmen und Gerichten wirderklärt, warum sich die jeweils spezifischen Gleichgewichtssituationen erhalten, auch wenn es in Deutschland für einige Großunternehmen starke Anreize gibt, davon abzuweichen.

Grain Contracting Strategies: The Case of Durum Wheat

One of the impacts of higher prices along with greater volatility in futures, basis and spreads is that there is pressure for greater use of cash contracts for grain. There is a wide array of cash contracts with varying terms that pose major strategic alternatives for buyers and the marketing system, particularly as buyers seek to use contracting as an element of risk mitigation. Durum is a crop where many of these issues and challenges are apparent. Durum is more risky than competing crops with greater price, yield and quality risk. And in contrast to competing crops, futures do not exist, cross hedging is poor and forward contracting has been used minimally. There are three purposes of this article: Provide a survey of contract terms used in grain contracting with growers, illustrate some issues in contracting of some of the specialty grains (durum) in the upper Midwest, and develop a model to analyze alternative contracting strategies in the case of durum. We introduce alternative pricing features, and explore other alternatives and analyze them in terms of risk and return to growers.Agricultural Finance, Crop Production/Industries, Marketing,

International Profiles of Health Care Systems

Compares the healthcare systems of Australia, Canada, Denmark, England, France, Germany, Italy, the Netherlands, New Zealand, Norway, Sweden, Switzerland, and the United States, including spending, use of health information technology, and coverage

Exploring the use of strategic frameworks in dental practice

This paper explores the use of strategic frameworks in NHS and private dental practice. It reviews the policy context of dentistry and suggests the challenges in this context will require dental practices to prioritise understanding and engagement with a strategic approach. A strategic approach will be required in order to enhance and improve performance. Two specific strategic frameworks will be explored in terms of their relevance to NHS and private dental practic

An empirical analysis of the hedging effectiveness of currency futures

Existing research on the hedging effectiveness of currency futures assumes that futures positions are continuously adjusted. This is an unrealistic assumption in practice. In this paper we study the hedging effectiveness for futures positions which are not adjusted during the hedge period. For this purpose an out-of-sample approach is used. Three models are used to determine hedge ratios and hedging effectiveness. These are the minimum-variance model of Ederington (1979), the "-t model of Fishburn (1977), which is a model in which the disutility of a loss is minimized, and the Sharpe-ratio model of Howard and D'Antonio (1984, 1987). For the minimum-variance model and the "-t model it is found that the naively hedged positions yield a higher effectiveness than the unadjusted model-based hedged positions. For the Sharpe-ratio model it is found that both naively and model-based hedged positions lead to a lower hedging effectiveness than unhedged positionsCurrency;Hedging;Econometric Models;Futures;econometrics