The Effects of Tax-Law Changes on Property-Casualty Insurance Prices

During the 1980s, the federal income tax treatment of property-casualty insurers and their policyholders underwent several important changes, the most significant of which came in 1986. This paper develops theoretical predictions for how these changes should have affected the equilibrium prices of property-casualty insurance policies, and explores the extent to which the theoretical predictions are reflected in data on industry experience. The paper is devoted mainly to a careful specification of the income tax rules, and to deriving the connection between predictions about simple forms of insurance policy and industry data on premiums earned. Although the predicted impact of the changes in the tax rules enacted in 1986 translates into a tax on premiums (net of the cost of acquisition) of up to 13 percent (on medical malpractice, the longest-tail line of insurance, in 1987), it is small relative to the variability of the actual loss experience.

BACKWARD IMPLICIT CONTRACTS, PRE-COMMITMENT AND MARKET POWER IN THE INTERNATIONAL DURUM WHEAT MARKET

We devise a formal test of market power that is applied to the international durum market. The model captures the asymmetric cost structure brought about the initial payment system of the Canadian Wheat Board. The model generates testable hypotheses about market conduct and optimal strategic positioning.Crop Production/Industries, Industrial Organization,

The "Building Blocks" of Stellar Halos

The stellar halos of galaxies encode their accretion histories. In particular, the median metallicity of a halo is determined primarily by the mass of the most massive accreted object. We use hydrodynamical cosmological simulations from the APOSTLE project to study the connection between the stellar mass, the metallicity distribution, and the stellar age distribution of a halo and the identity of its most massive progenitor. We find that the stellar populations in an accreted halo typically resemble the old stellar populations in a present-day dwarf galaxy with a stellar mass $\sim 0.2-0.5$ dex greater than that of the stellar halo. This suggest that had they not been accreted, the primary progenitors of stellar halos would have evolved to resemble typical nearby dwarf irregulars.Comment: 7 pages, 3 figures, published in the proceedings of "On the Origin (and Evolution) of Baryonic Galaxy Halos", Puerto Ayora, Ecuador, March 13-17 2017, Eds. Duncan A. Forbes and Ericson D. Lope

Reflection and interference of electromagnetic waves in inhomogeneous media

Solutions were obtained of the wave equation for a plane horizontally polarized electro-magnetic wave incident on a semi infinite two dimensional inhomogeneous medium. Two problems were considered: An inhomogeneous half space, and an inhomogeneous layer of arbitrary thickness. Solutions of the wave equation were obtained in terms of Hankel functions with complex arguments. Numerical calculations were made of the reflection coefficient R at the interface of the homogeneous medium. The startling results show that the reflection coefficient for a complex dielectric constant with gradient, can be less than that of the same medium with zero gradient