Top PDF Three Essays on the Economics of Health Reform.

Three Essays on the Economics of Health Reform.

Three Essays on the Economics of Health Reform.

One major advantage of the PSID is that I can identify households that contain an individual with a pre-existing health condition that would result in denial of non-group health insurance in denial states. Because the definition of a pre-existing condition is insurer specific, several definitions have been offered in the literature and are outlined in a report by the Government Accountability Office Government Accountability Office (2012a). I construct two measures based on these definitions and work by Zellers, McLaughlin, and Frick (1992), who survey insurance companies to identify conditions that result in denial. The first is a narrow definition of pre-existing conditions set to one if the head answers yes to the question “Has a doctor ever told you that you/[your wife] have or had one of the following conditions,” which include heart disease, cancer, heart attack, or stroke. I also construct a broader measure of pre- existing conditions using the same question but expanding the conditions to include high blood pressure, diabetes, lung disease, emotional problems, memory loss, and obesity. By the narrow measure, 12 percent of households contain a person with a pre-existing condition and by the broad measure, 27 percent of households contain a person with pre-existing condition. For comparison, the Government Accountability Office estimates that the fraction of the adult population with a pre-existing condition is between 20 and 66 percent (Government Accountability Office 2012a).
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Three essays on macro labour economics

Three essays on macro labour economics

The London School of Economics and Political Science Three Essays on Macro Labour Economics Jiajia Gu A thesis submitted to the Department of Economics of the London School of Economics for the degree[.]

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Three essays in applied economics

Three essays in applied economics

The London School of Economics and Political Science Three Essays in Applied Economics Amar Shanghavi January 2015 A thesis submitted to the Department of Economics of the London School of Economics f[.]

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The economics of childbearing: Three essays

The economics of childbearing: Three essays

Expenditure programs, business cycles, and government interventions can affect many decisions surrounding the birth o f a child. For example, public insurance programs such as Medicaid have the potential to increase the utilization of prenatal care. This, in turn, may lead to better infant and maternal health outcomes. Given the high and increasing number o f pregnant women covered by Medicaid, the effectiveness o f the program in promoting prenatal care use and improving health needs to be evaluated. Also, the impacts o f business cycles on childbearing are of interest to policymakers. For example, does unemployment substantially affect the decision to conceive a child or the ability to obtain appropriate medical services? And, if so, are infant and maternal health outcomes compromised during economic downturns? A well-informed government can design policies to help deal with issues such as these. Government interventions, however, can have unintended (and potentially harmful) consequences as well. For example, several recent economics papers have demonstrated that fiscal policies may affect fertility and the timing o f delivery. Understanding the incentives embedded in government programs and assessing the responsiveness of individual behavior to these incentives is therefore key. My dissertation consists o f three essays in which I investigate an important understudied aspect of the Medicaid program, inform policymakers about the impacts of unemployment on prenatal care use, infant and maternal health, and add to
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Three essays in international financial economics

Three essays in international financial economics

As a final step, I further assess how the relationship between FX correlation and foreign ownership develops over time for a subset of countries. Figure 4.5 illustrates the development of the coefficients calculated over one year periods with monthly fixed e↵ect for the three largest markets: USA, Japan, and China. A dashed line indicates that the coefficient is not significantly di↵erent from zero using a 10% significance level. The same control variables are used as before. As in the regressions above, the coefficients are overall negative. The US coefficient shows some significantly positive observations around the financial crisis. From 2010 onward, it is consistently significantly negative. The positive coefficient during the financial crisis implies that foreign investors had a preference for firms with positive FX correlation such as importers. There is a similar pattern for Japan, with a period of positive coefficients during the financial crisis fol- lowed by negative coefficients between 2011 and 2013, before turning positive in 2014. A possible explanation for this is that exposure to reserve currencies such as US dollar and Japanese yen was seen as more desirable during the financial crisis. Additionally, expo- sure to importing firms implies a stronger exposure to country specific shocks. Hence, foreign investors chose a higher exposure to US and Japan specific shocks after the be- ginning of the financial crisis. In case of China, the coefficient is initially highly negative before reaching a similar negative level as Japan and the US in 2011. The path that the coefficient for China depicts appears to track the establishment of the Chinese yuan as a major currency.
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Three Essays on Economics and Information Shocks

Three Essays on Economics and Information Shocks

in the physiological stress response and pregnancy. Cortisol is implicated in “programming” of the hypothalamic-pituitary-adrenal (HPA) axis, a proposed prenatal mechanism that permanently al- ters physiology with consequences for cognitive, emotional, and physiological health (Welberg and Seckl 2001; Weinstock 2005; Seckl and Holmes 2007; Glover et al. 2010). Aizer et al. (2009) investigate cortisol using within-mother—between-child variation and report that higher levels predict worse cognitive and health outcomes in the child. Corticotropin-releasing hormone plays a critical role in both the stress response and determining the timing of birth (Erickson et al. 2001). Some researchers propose that CRH functions as a “clock” that determines the onset of birth (McLean et al. 1995). Numerous studies positively associate levels of maternal CRH with the risk of preterm birth (see, for example, Hobel et al. 1999; Inder et al. 2001; Wadhwa et al. 2004; Sandman et al. 2006). Stress can also raise the mother’s risk of infection or level of inflammatory processes, which in turn increase the possibility of preterm birth (Wadhwa et al. 2001b). Finally, mothers experiencing stress may cope by using substances or altering diet (Dunkel Schetter 2011). These studies are critically important for establishing the biological plausibility of a causal link between stressful experiences and effects on fetal development. The main shortcoming of this line of research in humans is a lack of exogenous variation in stress.
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Three essays in labour economics and the economics of education

Three essays in labour economics and the economics of education

Proponents of school choice argue that the structure of the public educational system – where education is mainly provided by government with substantial monopoly power and largely no competition – leaves educational consumers with limited choice among schools. They further suggest that this may result in a disconnect between school quality and parents’ preferences. There is a growing literature in economics that suggests that expanding school choice could improve educational outcomes by increasing disadvantaged children’s access to high quality schools, and by causing underperforming schools to become more effective or to shrink as families “vote with their feet” (Friedman 1955; Becker 1995; Hoxby 2003; Belfield and Levin 2003). 1 These ideas have gained strong currency in education policy circles, leading to policy innovations such as open enrollment systems, magnet and charter schools, private school vouchers, and expanded public school choice for students in poorly performing schools.
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Three essays on financial economics

Three essays on financial economics

This table lists summary statistics of the innovation factor, Fama-French three factors (from Kenneth French’s website), and Carhart momentum factor (constructed according to Carhart (1997). The five factors are denoted by RDCA (innovation factor), M KT (market factor), SM L (size factor), HM L (value factor), and M OM (momentum factor), respectively. In June of each year t, NYSE, Amex, and NASDAQ stocks are divided into three size groups using the breakpoints for the bottom 30%(Low), middle 40%(Medium), and top 30%(High) of the ranked values of market equity (price times shares outstanding from CRSP) in June for NYSE stocks. In each June, I also independently break NYSE, Amex, and NASDAQ stocks into three book-to-market groups based on the breakpoints for the bottom 30%, middle 40%, and top 30% of the ranked values of book-to-market ratio for NYSE stocks. Book-to-market ratio is calculated as the book value of equity in year t − 1 divided by the market value of equity in December of year t − 1. Aslo independently, in each June, I sort NYSE, Amex, and NASDAQ stocks into three innovation groups based on the breakpoints for the bottom 30%, middle 40%, and top 30% of the ranked value of RDCA, which is defined as R&D capital scale by total assets. 27 portfolios are formed from the intersections of the three size groups, three book-to-market groups, and three innovation groups. Monthly value-weighted returns on the 27 portfolios are calculated from July of year t to June of year t + 1, and the portfolios are rebalanced in June of each year. Thus, every month there are nine low R&D portfolios and nine high R&D portfolios. The innovation factor is defined as the difference, each month, between the simple average of the returns on the nine high R&D portfolios and the simple average of the returns on the nine low R&D portfolios. Panel A lists some basic statistics of the five factors. SKEW and KU RT refer to skewness and kurtosis, respectively. Panel B lists the correlation matrix of these factors. Panel C reports the coefficients of the regressions of innovation factor on traditional factors using two different asset pricing models: Fama-French three-factor model, and Carhart (1997) four-factor model. The sample period is from July 1963 to December 2009.
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Three essays in labour economics

Three essays in labour economics

Time is continuous, and the labour market is populated by a unit mass of risk neutral, infinitely lived workers who discount the future at rate r. Workers can be either unemployed or employed in one of the two sectors. They can move between the states of employment in construction sec- tor, employment in non-construction sector and unemployment. Immediate transitions between the jobs in two sectors are not allowed. Such transitions may only happen through the state of unemployment. Workers differ in the maximum productivity that they can achieve, denoted by y. Productivity is i.i.d. across the unit measure of workers and is described by a continuous proba- bility density f (y), 0 ≤ y ≤ 1. Worker types are determined by dividing productivities y in three intervals, determined by two threshold levels. These thresholds are used to identify the distribution of workers across construction and non-construction sectors. The labour market frictions are mod- elled using a standard matching function. Workers and firms who meet form a match if and only if the joint surplus generated by the match is higher than the sum of the values of their respective outside options. Wages in non-construction sector are determined by Nash bargaining. Following the literature, I assume the free vacancy entry.
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Three essays in economics of catastrophes

Three essays in economics of catastrophes

We start from the premise that the ideological component of the support for the NL should be invariant across different levels of government. The rational component of the support for the NL, instead, should differ between the national and regional elections, since the competences of the national and regional governments are different and distinct. In fact, the national government manages the planning of the incoming immigration flows and the residence policies on the national territory, while the regional government has competence on welfare, education, health care and housing of the immigrants. Hence, if the economic differences of the immigrants relative to the Italians are important to explain voters' behavior, we can argue that voters are not necessarily anti-immigrant per se, but there might be two additional explanations. On one hand, the Italians might not want to pay services or social security measures that benefit primarily the immigrants (a heterogeneity argument à la Alesina, 2001), but on the other hand they might fear the competition of immigrants in the labor market.
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Three Essays on the Economics of Education

Three Essays on the Economics of Education

We find no evidence that health related absences by teachers cause a greater loss in student achievement than other absences (see Table 3.9). When we estimate separate coef- ficients on the number of days missed prior to student exams, we actually find smaller point estimates for health-related absences, particularly for math. However, one problem with this specification is that health related absences have longer durations, and our previous results suggest that this would cause them to appear less detrimental. When we allow the coefficients for health and other absences to differ by duration, we find they both have very similar magnitudes, and in no case can we reject that they are the same. Thus, we find no evidence that teachers absent for serious health conditions are also less productive while at work. While our test for a link between health and on-the-job productivity is admittedly indirect, it is important to recognize that much of the existing literature on this issue — very little of it by economists — relies on cross-sectional variation and self-reported health and productivity measures.
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Three essays on econometrics and economics of education

Three essays on econometrics and economics of education

The basic idea behind the exchange of probabilities lies in the aggregate information avail- able in the REF data. We intuitively believe that this step is likely to induce a more accurate retrieval of the outcomes provided that more aggregate information is available. Thus it is interesting to understand how strong the aggregate information should be in order for us to obtain an accurate recovery and credible estimation results. To illustrate this, suppose that we have aggregate information of about 2,600 individual submissions from 28 institutions, we want to ask: given the information on these 28 institutions, how will our method behave (better or worse) if there are more or fewer individual submissions? To answer this question, we perform the first simulation whilst relying on an artificial dataset generated by following the data structure of the 2014 REF Economics and Econo- metrics sub-panel. To be more precise, we define 28 artificial institutions, each of which has the same proportion of submissions that are considered to be of quality 4,* 3*, 2* and 1* as they have in the real data. The values of the LHS outcomes are then simulated to be consistent with the actual numbers of the aggregate proportions for each of the 28 economics departments, as informed by the REF data. We employ four independent co- variates in the process of data generation: x 1 and x 2 are Gaussian covariates with a unit
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Three Essays on Labor and Public Economics

Three Essays on Labor and Public Economics

the size of the formal sector, is that in its absence, treatment and control groups would had evolved similarly. I begin showing treated and control earnings levels share common trends before the introduction of the wage subsidy. Figure 1.8 shows that the fraction of formal workers, until 2010, gravitated around 0.4 and 0.7 for the treatment and con- trol groups, respectively. The fraction of formal workers starts increasing steadily for the treatment group since 2011, the year the wage subsidy became effective, while for the con- trol group it remains gravitating around 0.7 until 2012. At the end of 2012 a tax reform dropped the payroll tax rate formal firms pay for workers earning less than 10 minimum wages. It might explain what seems to be an upward trend in the fraction of formal work- ers in the control group starting in 2013, and also implies the increase in the treatment group from 2013 on is partly driven by it. If the drop of the payroll tax rate affects uni- formly different parts of the labor earnings distribution, the control group accounts for it, and the identification strategy pursued here gives the causal effect of the wage subsidy on the size of the formal sector.
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Bilingualism, Wage Differentials and the Minimum Wage--Three Essays in the Economics of Labor and Health

Bilingualism, Wage Differentials and the Minimum Wage--Three Essays in the Economics of Labor and Health

The labor market for nurses is unique in several ways. Nursing is a predominately female field. In 1977, 1.92% of nurses were male. This number has risen to 5.8% in 2004. 7 There are also strict requirements to become a RN. All RNs must complete one of three educational paths and obtain a license from a state agency in order to be employed. There exists variation in licensing schemes across states but nurses nationwide face the same educational choices. They may (1) earn a nursing diploma, (2) obtain an associate degree or (3) obtain a bachelor’s degree. All three options require education beyond high school. The nursing diploma typically takes three years to earn and is completed in a hospital. Associate degree programs typically take two years to complete and require course and clinical work
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Three Essays on Public Economics and Policy

Three Essays on Public Economics and Policy

Additionally, the validity of the DID method requires that the relative change in asset transfer behavior between the two groups cannot be explained by factors other than the policy change. One potential concern is that the treatment group may develop worse health conditions over time, relative to the comparison group. If so, the drop in asset transfer behavior of the treatment group could be the result of the increasing medical cost. To test this possibility, I examine the trends in health condition and actual nursing home utilization of the two groups. Figure 3 shows the time trends for three different measurements of interest. First, self-reported health condition is shown in panel A, ranking from one to five, with one denote being in perfect health and five denote being in poor health. Both groups overall show a worsened health
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Three Essays on the Economics of Education Expansion

Three Essays on the Economics of Education Expansion

The previous difference-in-differences results show that, on average, there exists a relative increase in prices for houses sold in locations scheduled for redistricting. To gauge the magnitude of this redistricting plan on aggregate house values and tax revenue, I use property assessment data in 2013, one year before the start of redistricting process, to calculate the total gain in property values. I focus on houses that will be redistricted to the new school catchment area and multiply the 2013 value by the corresponding coefficient I find in the bottom line in Table 4.6. The results are listed in Table 4.7. The total increase in the housing stock value in Bryan Station is more than 85 million dollars from around 8,000 houses that will be redistricted into the proposed area. Henry Clay also has substantial increase around 15 million dollars. Though Lafayette has the largest estimate (10.4%) from previous section, but due to lower average house value and fewer houses, the total gain is less than the other two catchment areas. But the aggregate impact of the new school is large. The total value of housing stock in the three catchment areas amounts to more than 2 billion dollars and change of value is around 108 million dollars, an increase, on average, of $9016 per house. If I annualize the benefits over a 15 year period at a discount rate of 3.5%, this is a benefit of $783 per year per household. The estimated construction cost of the new high school was 82 million dollars 11 though this cost does not include any additional costs associated with maintenance of new facilities or any other costs not strictly a function of enrollments. As discussed in Section (4.3), to the extent that adding the new high school (Frederick Douglass) affects educational quality in the other high schools, the change in value is a measure of the relative benefits of the new school, not the absolute benefits.
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Three Essays in Macroeconomics and International Economics.

Three Essays in Macroeconomics and International Economics.

While our argument will be much stronger if we can support our hypothesis with a consistent and continuous data set of visible and invisible trade costs, such data set is rare. 3 Alternatively, we turn to case studies with OECD’s aid for trade dataset to see whether the efforts to boost bilateral trade are strengthened when debt rene- gotiation happens. For the purpose of the paper, we restrict our attention to the categories of aid which are directly related to trade policy adjustment (See Table 7 for details). Figure 3.A.1 plots the change in aid (only for trade policy purposes) around the default period for the following three cases: Honduras in 2004, Congo in 2008 and Burundi in 2009. In the years of sovereign defaults, creditors double or triple their expense in trade-related aid to help defaulters out. They are generous with trade benefit instead of strict with harsh trade punishment. The case studies serve as indirect evidence for our hypothesis that creditors lower their trade costs with debtors.
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Three essays in experimental and labor economics

Three essays in experimental and labor economics

A potential motivation for being influenced by others’ behavior may act through the beliefs regard- ing others’ outcome: we may imitate those individuals that we consider as successful. This is what Apesteguia et al. (2007) and Offerman and Sonnemans (1998) indicate among their results and it is also investigated in our experiment through an incentivized elicitation of beliefs regarding others’ performance. Apesteguia et al. (2007) in a symmetric Cournot game distinguish between participants and roles played by participants: participants can play in three roles and are not told with whom they are matched within groups of nine subjects each. The authors find evidence in favor of imitation of more successful individuals: the degree of imitation they find is increasing in the difference between own and others’ payoff. Moreover, higher imitating patterns arise with respect to the individuals with whom one interacts, rather than with respect to individuals who play in the same role but in different groups. A similar result is found by Offerman and Sonnemans (1998), with an experiment about investment decisions that depend on different states of the world. Rather than imitation of choices, they test for the presence of imitation of incentivized beliefs: least-performing individuals are found to imitate more the judgements and beliefs of more successful subjects.
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Three Essays on the Economics of Education

Three Essays on the Economics of Education

Columns 1 through 3 show that peers’ BMI does not seem to influence student’s daily meals. The results may be due to the responses themselves being not quite relevant; admit- tedly, eating dinner together with or without family could not affect student’s BMI much. Nevertheless, Columns 1 and 2 indicate that peers would not affect student’s number of having meals or appetite. Columns 4 through 6 show that peers’ BMI does not affect the student’s time use in indoor or outdoor activities. The dependent variable in Column 6 is the sum of minutes spent per day on doing homework, reading books, and self-study. Though we regress time use in those three study related activities separately, we do not find any significant effects. These results are in line with Yakusheva, Kapinos and Eisen- berg (2014)’s finding that their peer effect on weight gain is not driven by peer’s exercise habits or eating disorder symptoms.
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Three Essays on Financial Economics.

Three Essays on Financial Economics.

This dissertation is composed of three research-based essays. The first two take Korea, an economy with high income risk, as an example to calibrate optimal portfolio choices. The first essay confirms that Korean households are subject to higher idiosyncratic income risk (compared with US households) and that the risk increases with age. Using the estimated income risk, the study finds that even though Korea has impressive income growth and average returns on stocks, a Korean household should be conservative in its investment in risky assets since high income and return uncertainty could have negative effects on consumption smoothing. The second essay discusses a similar issue but extends the context of international financial markets. It asks how Korean workers in different industries should allocate their wealth in the equities of selected countries to hedge against their wage risks. Without considering the foreign exchange risk, this study finds that workers in most industries have large hedging demands for French and Canadian stocks. These results may be due to the competitiveness or the complementarity between Korean industries and the two studied countries’ industries.
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