Are the dimensions of private information more multiple than expected? Information asymmetries in the market of supplementary private health insurance in England

Our study reexamines standard econometric approaches for the detection of information asymmetries on insurance markets. We claim that evidence based on a standard framework with 2 equations, which uses potential sources of information asymmetries, should stress the importance of heterogeneity in the parameters. We argue that conclusions derived from this methodology can be misleading if the estimated coefficients in such an `unused characteristics' framework are driven by different parts of the population. We show formally that an individual's expected risk from the perspective of insurance, conditioned on certain characteristics (which are not used for calculating the risk premium), can equal the population's expectation in risk { although such characteristics are both related to risk and insurance probability, which is usually interpreted as an indicator of information asymmetries. We provide empirical evidence on the existence of information asymmetries in the market for supplementary private health insurance in the UK. Overall, we found evidence for advantageous selection into the private risk pool; ie people with lower health risk tend to insure more. The main drivers of this phenomenon seem to be characteristics such as income and wealth. Nevertheless, we also found parameter heterogeneity to be relevant, leading to possible misinterpretation if the standard `unused characteristics' approach is applied

What can local authorities do to improve the social care-related quality of life of older adults living at home? Evidence from the Adult Social Care Survey

Local authorities spend considerable resources on social care at home for older adults. Given the expected growth in the population of older adults and budget cuts on local government, it is important to find efficient ways of maintaining and improving the quality of life of older adults. The ageing in place literature suggests that policies in other functions of local authorities may have a significant role to play. This study aims to examine the associations between social care-related quality of life (SCRQoL) in older adults and three potential policy targets for local authorities: (i) accessibility of information and advice, (ii) design of the home and (iii) accessibility of the local area. We used cross-sectional data from the English national Adult Social Care Survey (ASCS) 2010/2011 on service users aged 65 years and older and living at home (N=29,935). To examine the association between SCRQoL, as measured by the ASCOT, and three single-item questions about accessibility of information, design of the home and accessibility of the local area, we estimate linear and quantile regression models. After adjusting for physical and mental health factors and other confounders our findings indicate that SCRQoL is significantly lower for older adults who find it more difficult to find information and advice, for those who report that their home design is inappropriate for their needs and for those who find it more difficult to get around their local area. In addition, these three variables are as strongly associated with SCRQoL as physical and mental health factors. We conclude that in seeking to find ways to maintain and improve the quality of life of social care users living at home, local authorities could look more broadly across their responsibilities. Further research is required to explore the cost-effectiveness of these options compared to standard social care services

Losers and Losers: Some Demographics of Medical Malpractice Tort Reforms

Our research examines individual differences in the effects of medical malpractice tort reforms on pre-trial settlement speed and settlement amounts by age and most likely settlement size. Findings of note include that, unlike previously assumed, both absolute and percentage losses from tort reform are small for infants in an asset value sense and that the prime-aged working population is the group most negatively affected by tort reform. Maximum entropy quantile regressions highlight the robustness of our conclusions and reveal that the settlement losses most informative for policy evaluation differ greatly from mean regression estimates.medical malpractice, tort reform, Texas closed claims, damage caps, quantile regression, maximum entropy

“How are you feeling?” Assessing reporting bias in a subjective measure of health by quantile regression

In this paper we investigate reporting heterogeneity in the Visual Analogue Scale (VAS) when it is used to measure current health status in cardiovascular patients. We provide a new framework to identify reporting heterogeneity using quantile regressions. EQ-5D responses are used as a proxy to control for objective health. The objectiveness of this generic measure is supported by other measures of actual health. The data comes from a Norwegian, health-related quality of life study. We find substantial evidence of reporting bias in VAS related to gender and education. For some quantiles we observe reporting heterogeneity related to age and weight.Reporting bias; quantile regression; health measurement

The Causal Impact of Fear of Unemployment on Psychological Health

We analyze the eff ect of job insecurity on psychological health. We extend the group of people being aff ected to employees who have insecure jobs to account for a broader measure of the mental health consequences of potential unemployment. Using panel data with staff reductions in the company as an exogenous source of job insecurity, we fi nd that an increase in fear of unemployment substantially decreases the mental health status of employees. Quantile regression results yield particularly strong eff ects for individuals of already poor mental health.Fear of unemployment; mental health; job insecurity; labor market dynamics

Foreign languages and trade

Cultural factors and especially common languages are well-known determinants of trade. By contrast, the knowledge of foreign languages was not explored in the literature so far. We combine traditional gravity models with data on fluency in the main languages used in EU and candidate countries. We show that widespread knowledge of languages is an important determinant for foreign trade, with English playing an especially important role. Other languages (French, German, and Russian) play an important role mainly in particular regions. Furthermore, we document non-linear effects of foreign languages on trade. The robustness of the results is confirmed in quantile regressions

Income Inequality and Social Policy in Serbia

Using 2006-2009 HBS data, we study poverty and inequality in Serbia and compare income-group impacts of different social policy programmes. Methodological innovations of the paper are: testing validity of OECD equivalence scale by HAC procedure and replacing it with per capita measurements, use of quantile regression and recursive estimation in defining income groups with specific responses, and testing group effects (partitioned coefficients) of policy programmes in the frame of panel methodology. The confirmed hypotheses are: income inequality is decreasing as a consequence of social policy measures, except for in the last observed year, but these effects vary in different income-groups.inequality, transition, social policy, Serbia, quantile regression, panel model

The public-private pay gap: a robust quantile approach

This paper investigates whether a public sector premium exists after controlling for observable characteristics and for additional motivations, other than monetary, that may induce workers to prefer employment in the public sector. We study the entire conditional wage distribution on Italian micro data, covering the period 1998-2008. The evidence under random sampling shows the existence of a wage differential averaging at about 14% for women and 4% for men, generally lower at the high tail of the wage distribution and in the Northern regions. The premium significantly increases when possible sorting is considered; the correction is particularly large above the median of the wage distribution, therefore suggesting that the additional motivations may play an important role above all at higher wage levels. When we restrict our comparison to large private firms, a differential is confirmed for women but not for men.public employment, wage differentials, wage determination