scholarly journals An Insurance Approach to Risk Management in the Ethanol Industry

2008 ◽  
Vol 37 (1) ◽  
pp. 51-62 ◽  
Author(s):  
Nicholas D. Paulson ◽  
Bruce A. Babcock ◽  
Chad E. Hart ◽  
Dermot J. Hayes
Keyword(s):  
Risk Management ◽  
Value Added ◽  
Commodity Price ◽  
The United States ◽  
Management Tool ◽  
Gross Margin ◽  
Insurance Policies ◽  
A Value ◽  
Price Levels ◽  
Revenue Insurance

The vast majority of crop and revenue insurance policies sold in the United States are singlecrop policies that insure against low yields or revenues for each crop grown on the farm. But, increasingly, producer income is based more on the value of crops that have been converted into a value-added product such as ethanol. Moreover, the recent increases in energy and commodity price levels and volatilities emphasize the importance of risk management to ethanol investors. This paper uses an insurance approach to outline a risk management tool which mimics the gross margin level of a typical corn-based ethanol plant. The gross margin, premium, and indemnity levels are calculated on a per bushel basis to enable producers/investors to utilize the product based on their ownership share in the production facility. The fair premium rates are shown to be quite sensitive with respect to corn and energy price levels and volatilities.

scholarly journals Livestock Gross Margin–Dairy: An Assessment of Its Effectiveness as a Risk Management Tool and Its Potential to Induce Supply Expansion

2014 ◽  
Vol 46 (2) ◽  
pp. 245-256
Author(s):  
Kenneth H. Burdine ◽  
Yoko Kusunose ◽  
Leigh J. Maynard ◽  
Don P. Blayney ◽  
Roberto Mosheim
Keyword(s):  
Risk Management ◽  
Management Tool ◽  
Futures Prices ◽  
Gross Margin ◽  
Insurance Program ◽  
Multiple Regions ◽  
Estimated Risk ◽  
Futures Price ◽  
Supply Analysis ◽  
Risk Reducing

An evaluation of the risk-reducing effectiveness of the Livestock Gross Margin–Dairy (LGM-Dairy) insurance program, using historical futures price data, predicts economically significant reductions in downside margin risk (24–41%) across multiple regions. Supply analysis based on the estimated risk reduction shows a small supply response, assuming minimal subsidization. A decomposition of the simulated indemnities into milk price and feed price components shows comovements in futures prices moderating the frequency and levels of indemnities.

Riverfest: Managing Risk and Measuring Performance at Little Rock's Annual Music and Arts Festival

2000 ◽  
Vol 15 (3) ◽  
pp. 483-512
Author(s):  
Brian Ballou ◽  
Norman H. Godwin ◽  
Van Tilbury
Keyword(s):  
Risk Management ◽  
Business Process ◽  
Business Performance ◽  
Value Added ◽  
Little Rock ◽  
Process Measurement ◽  
A Value ◽  
Arts Festival ◽  
And Performance ◽  
Managing Risk

This case is based on the experience of one of the authors as executive director of Riverfest, Arkansas' largest annual music and arts festival, held in Little Rock on Memorial Day weekend. The case provides an opportunity to identify business process risks, evaluate and consider improvements to controls for those risks, and develop ways to measure elements of Riverfest's operations that can help improve or monitor the organization's performance. This case demonstrates how managing business risks and measuring business performance are critical for all types of organizations, including those not driven by profitability objectives. The case centers on Merle Flowers, a CPA who specializes in business process measurement and risk management for major events. Merle has been hired to provide Riverfest with suggestions on how to improve risk management and performance measurement for its key processes, including entertainment, cash management and security, sponsorship arrangements, vendor and beverage arrangements, physical security, and budgeting and reporting. This engagement is a value-added service that Merle is providing Riverfest, which has been successful in the past but is looking for continuous improvement opportunities in the future.

The Advantages and Disadvantages of Internet Commerce in China

2018 ◽  
pp. 278-290
Author(s):  
James G. S. Yang
Keyword(s):  
Value Added ◽  
The United States ◽  
Sales Tax ◽  
The Internet ◽  
Chinese Government ◽  
Internet Commerce ◽  
Tax Rate ◽  
Advantages And Disadvantages ◽  
A Value ◽  
Final Consumer

This chapter further considers the tax aspect of the internet commerce transaction, which found that the Chinese government imposes a value-added tax at a rate of 17%. The system to impose value-added is extremely complicated. The first buyer pays tax. The tax is transferred to the second buyer, so on and so forth until the last buyer. It requires detailed records. It makes the tax administration highly burdensome. On the contrary, in the United States, the sales tax rate is only 7% and is imposed only on the final consumer. There are no sales between the first buyer and the last buyer. The taxing system is much simpler than its counterpart in China.

scholarly journals The 21st Century Land Grant Economist

2003 ◽  
Vol 32 (2) ◽  
pp. 159-170 ◽  
Author(s):  
Adesoji O. Adelaja
Keyword(s):  
Market Failure ◽  
Value Added ◽  
The United States ◽  
Land Grant ◽  
Land Grants ◽  
Resource Base ◽  
A Value ◽  
Natural Resource Base ◽  
American Society ◽  
Oriented Research

The land grant system is a value-added infrastructure, designed to extend the boundaries of traditional colleges and universities to bring science to bear on the pressing needs and problems of underserved citizens and communities. With supplemental resources to support mission-oriented research and outreach, the system has addressed a market failure in higher education. It has been a key asset in achieving for the United States a vibrant agricultural economy, a prominent position in world trade, significant rural development, healthy families and communities, and the increasingly sustainable natural resource base that are characteristic of “the great American Society.” This paper explores some of the recent challenges facing the land grant system, provides a framework for examining these challenges, and stresses the need for a new cadre of “land grant economists” to provide leadership as land grants struggle to identify new visions, missions, programs, and innovations that would serve as the bedrock of a new system. Selected areas of emerging opportunities for land grant intervention are also identified.

scholarly journals Tax Reform Consequent upon an Embedded Single-Rate Vat Just Might Prevent Injustice While Revivifying a Geriatric Uncle Sam

2015 ◽  
Vol 1 (1) ◽  
pp. 1
Author(s):  
Emir Phillips
Keyword(s):  
Tax Evasion ◽  
Value Added ◽  
The United States ◽  
Fixed Costs ◽  
Tax System ◽  
Federal Deficit ◽  
A Value ◽  
United States Economy ◽  
Class 1 ◽  
Deduction Rules

<p class="1"><span lang="EN-US">Economists and legislators have proposed many theories and plans for overhauling the corporate tax system (and the U.S. tax system as a whole); however, this Article argues that any viable proposal should begin with the enactment of a value added tax (VAT).</span></p><p class="1"><span lang="EN-US">As a result of the IRC's unworkably complex corporate section, the United States economy has been hindered by high compliance costs and the loss of business overseas. Overall, a substantial federal VAT is the best option in terms of compliance and administration costs as well as reducing opportunities for federal tax evasion. But merely placing a VAT on top of the existing system would merely send us in reverse by further increasing the variable and substantial fixed costs of administration and compliance. A mere changing of the marginal rates or deduction rules would be insufficient to deal with the systematic problem caused by the yawning federal deficit and the arcane IRC. A VAT rate set too low would impose substantial costs per dollar of additional revenue. Thus, Congress should enact either a federal VAT (15%) capable of significantly reducing the federal deficit or none at all.</span></p>

The Effect of Neighborhood Poverty on Math Achievement: Evidence From a Value-Added Design

2017 ◽  
Vol 51 (2) ◽  
pp. 289-307 ◽  
Author(s):  
Francis A. Pearman
Keyword(s):  
Panel Study ◽  
Value Added ◽  
Well Being ◽  
The United States ◽  
School Level ◽  
Neighborhood Poverty ◽  
Income Segregation ◽  
A Value ◽  
Rigorous Test ◽  
And Mathematics

Two trends play an increasing role in shaping the long-term prospects of children across the United States: a growing STEM (science, technology, engineering, and mathematics)-based economy and rising income segregation. Together, they suggest that the future well-being of U.S. children may be based increasingly on the contemporary interplay of mathematical learning and neighborhood environments. Drawing on data from the Panel Study of Income Dynamics and a value-added design, this article provides a rigorous test of the hypothesis that exposure to high-poverty neighborhoods exerts a depressive effect on children’s mathematics achievement growth beyond that associated with individual-, family-, and school-level characteristics. Results indicate that exposure to higher-poverty neighborhoods reduces children’s mathematical growth, a treatment effect roughly equivalent to missing three quarters of a year of schooling over the 5-year treatment period. A formal sensitivity analysis suggests that these effects are remarkably robust to unobserved residual confounding.

scholarly journals INVESTIGATING BANK MARKET CONCENTRATION IN THE SOUTHERN REGION OF THE UNITED STATES: IMPLICATIONS FOR BANKING STRUCTURE

2021 ◽  
Vol 6 (3) ◽  
pp. 91-105
Author(s):  
Musa Essayyad ◽  
Banamber Mishra ◽  
Omar Al-Titi ◽  
Prakriti Karki
Keyword(s):  
United States ◽  
Economic Development ◽  
Commercial Banks ◽  
Value Added ◽  
The United States ◽  
Southern Region ◽  
Perfect Competition ◽  
A Value ◽  
Banking Market ◽  
Regulatory Bodies

The objective of this paper is to determine whether commercial banks in the Southern Region of the United States are highly concentrated and hence less competitive in offering favorable lending terms to borrowers and subsequently hindering economic development in their region.  The paper employs concentration measures to estimate the concentration degrees of commercial banks in the Southern Region of the United States in 2019. Data for deposits and loans plus leases of banks in 12 states in the South were collected for the year 2019 from the following sources: http://www.ofi.state.la.us/  and http://www.ibanknet.com/. Empirical results show that only commercial bank markets in Kentucky and Florida have perfect competition. The commercial banks in other ten states are either uncompetitive or less competitive, thereby creating adverse economic development environments for prospective corporate and individual borrowers in  those states, and consequently impairing the profitability, stability and risk structure of the banking industry in most states covered in the Southern Region.  The paper provides a value- added literature contribution to US banking market structure.  The next step would be up to state and federal bank regulatory bodies to address the issue in those less competitive states and their potential on economic development in that region.   

scholarly journals Is enterprise risk management a value added activity?

2018 ◽  
Vol 21 (1) ◽  
pp. 68-84 ◽  
Author(s):  
Mojca Marc ◽  
Danijela Miloš Sprčić ◽  
Marina Mešin Žagar
Keyword(s):  
Risk Management ◽  
Value Added ◽  
Enterprise Risk Management ◽  
A Value ◽  
Enterprise Risk

Development of a State Tax Risk Management System

2020 ◽  
Vol 17 (6) ◽  
pp. 62-75
Author(s):  
A. V. Tikhonova
Keyword(s):  
Risk Management ◽  
General Scheme ◽  
Value Added ◽  
Comparison Method ◽  
The State ◽  
Scientific Methods ◽  
Traceability System ◽  
Road Map ◽  
State Tax ◽  
Presentation Methods

The article is devoted to the development of the concept of the state to manage its tax risks, based on a systematic approach. The author's concept presupposes the presence of the following elements logically arranged according to the principle "from the general to the particular": 1) mechanisms for managing tax risks, 2) disclosing methodological recommendations, 3) specific proposals for changing legislation. To achieve this goal, the author used general scientific methods (deduction and induction, analysis and synthesis, observation, description, generalization) and private scientific methods of cognition (comparison method, graphical and tabular data presentation methods). We have presented a brief overview of the main tax risks of the Russian Federation in the current economic environment, which are classified in four areas: 1) risks in the field of value added taxation; 2) risks in the field of taxation of profits and income; 3) risks, the source of which is Russia's membership in the Eurasian Economic Union; 4) customs risks. The author presents a general scheme of tax risk management by the state, which includes the context, goals and management strategy. The priority mechanisms for managing the tax risks of the state are formulated on the basis of the presented classification of tax risks. These areas include: introduction of an end-to-end product traceability system; substantiation of taxation methods; joint elimination of tax risks (Federal Tax Service, Federal Customs Service, Ministry of Labor, Federal Service for Financial Monitoring); optimization of tax administration costs on the part of both tax authorities and taxpayers; harmonization of indirect taxation, including duty-free trade; harmonization of international tax rules at the international level; selection of the most effective tools for eliminating multiple taxation. A draft "road map" has been developed to improve the management of state tax risks.

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