Structural estimation of a principal-agent model: moral hazard in medical insurance

Despite the importance of principal-agent models in the development of modern economic theory, there are few estimations of these models. I recover the estimates of a principal-agent model and obtain an approximation to the optimal contract. The results show that out-of-pocket payments follow a concave profile with respect to costs of treatment. I estimate the welfare loss due to moral hazard, taking into account income effects. I also propose a new measure of moral hazard based on the conditional correlation between contractible and noncontractible variables

Segre decomposition of spacetimes

Following a recent work in which it is shown that a spacetime admitting Lie-group actions may be disjointly decomposed into a a closed subset with no interior plus a dense finite union of open sets in each of which the character and dimension of the group orbits as well as the Petrov type are constant, the aim of this work is to include the Segre types of the Ricci tensor (and hence of the Einstein tensor) into the decomposition. We also show how this type of decomposition can be carried out for any type of property of the spacetime depending on the existence of a continuous endomorphism.Comment: 15 pages, provisionally scheduled for April 1999 in Class. Quantum Gra

Quality externalities among hotel establishments: what is the impact of tour operators?

This paper is about quality decisions in a vertical structure where competitive producers sell to powerful retailers. Specifically, we focus the analysis on the role played by a tour operator (TO) on quality investments when distributing the capacity of a given tourist destination. We emphasize the presence of quality externalities among hotel establishments, and see that sometimes a TO distribution can provide a solution to the tragedy of the commons in qualityprovision. Thus, we analyze what implications do vertical relations have for quality in this industry, and then derive some policy recommendations. This paper is about quality decisions in a vertical structure where competitive producers sell to powerful retailers. Specifically, we focus the analysis on the role played by a tour operator (TO) on quality investments when distributing the capacity of a given tourist destination. We emphasize the presence of quality externalities among hotel establishments, and see that sometimes a TO distribution can provide a solution to the tragedy of the commons in qualityprovision. Thus, we analyze what implications do vertical relations have for quality in this industry, and then derive some policy recommendations

Testing for Adverse Selection into Private Medical Insurance

We develop a test for adverse selection and use it to examine privatehealth insurance markets. In contrast to earlier papers that consider apurely private system or a system in which private insurance supplementsa public system, we focus our attention on a system where privately fundedhealth care is substitutive of the publicly funded one. Using a model ofcompetition among insurers, we generate predictions about the correlationbetween risk and the probability of taking private insurance under bothsymmetric information and adverse selection. These predictions constitutethe basis for our adverse selection test. The theoretical model is also usefulto conclude that the setting that we focus on is especially attractive to testfor adverse selection. Using the British Household Panel Survey, we findevidence that adverse selection is present in this market. We develop a test for adverse selection and use it to examine privatehealth insurance markets. In contrast to earlier papers that consider apurely private system or a system in which private insurance supplementsa public system, we focus our attention on a system where privately fundedhealth care is substitutive of the publicly funded one. Using a model ofcompetition among insurers, we generate predictions about the correlationbetween risk and the probability of taking private insurance under bothsymmetric information and adverse selection. These predictions constitutethe basis for our adverse selection test. The theoretical model is also usefulto conclude that the setting that we focus on is especially attractive to testfor adverse selection. Using the British Household Panel Survey, we find evidence that adverse selection is present in this market

Early evaluation of a new nutrition and education programme in Colombia

From introduction: In recent years, international financial institutions, policy-makers and economists have paid considerable attention to micro development policies based on cash transfers targeted to poor families and released only if the potential beneficiaries comply with specific conditions. Such conditional cash transfers have been particularly popular in education and nutrition policies – that is, in policies whose aim is to foster the accumulation of human capital among young children. In the case of the nutrition interventions, the conditions are often that the mother of the children, who receives the transfers, enrols them to development and growth check-ups and/or attends hygiene, vaccination and contraception courses. Much of the attention on conditional transfer programmes originated from the perceived success of a large programme of this nature started in rural Mexico in 1998 and evaluated scientifically with semi-experimental methods. Since the evidence on PROGRESA, as the Mexican programme was known, has received much attention, several international organisations have been promoting similar interventions in many developing countries and in particular in Latin America. It should be stressed that while PROGRESA has been widely branded as a success and has surely improved the nutritional and development outcomes of very young children and enrolment for secondary school, the reasons behind this success are not entirely obvious. In particular, it is not completely clear whether the conditionalities imposed by the programme played a role in determining the outcomes and what that role was

A planned program of study and guidance for parents of acoustically handicapped children

Thesis (Ed.M.)--Boston Universit

Cooperation in R&D as a leading indicator of innovative activity growth

Purpose: The article is focused on new trends in cooperation activity in research and development in the manufacturing industries of Russia. Various types of cooperation are considered, special attention is paid to research organizations and universities. Design/Methodology/Approach: In the context of this issue, it seems necessary to consider the conceptual framework and information basis for the analysis of scientific activity, to study the problems of scientific and technical cooperation, based on the works of foreign and domestic scientists and to develop indicators of cooperative activities. Finding: Authors proposed to rank the regions of Russia by the level of cooperation activity based on a specially developed hidden indicator. Comparison of the results obtained with regional layers of the costs of R&D suggests that joint research and development activities are typical for those regions that pay considerable attention to development of science. Ranking regions of Russia in terms of cooperative activity allowed identifying the leaders and outsiders of this process. Practical implications: The results of the study can be used in the development of measures of regional development of the country in the implementation of R&D. Originality/Value: To study the impact of the resource base on the cooperative activities of the organization, the authors proposed a composite indicator that includes a wide range of indicators that consider various aspects of cooperative activity.This work was supported by a grant of Russian Foundation for Basic Research №18-010-00564 Modern Tendencies and Social and Economic Consequences of Digital Technologies Development in Russia.peer-reviewe