scholarly journals Imperfect information and participation in insurance markets: evidence from Italy

2018 ◽  
Vol 78 (2) ◽  
pp. 183-194 ◽  
Author(s):  
Fabio Gaetano Santeramo
Keyword(s):  
Imperfect Information ◽  
Choice Model ◽  
Crop Insurance ◽  
Policy Implications ◽  
Dynamic Discrete Choice ◽  
Content Type ◽  
Dynamic Discrete Choice Model ◽  
Insurance Contracts ◽  
Level Data

Purpose The purpose of this paper is to investigate how experience in insurance contracts may influence participation in the Italian crop insurance market. Design/methodology/approach From Italian farm-level data, the author estimates a dynamic discrete choice model of participation to investigate the role of experience. The methodology, coupled with exploratory analysis of the data, allows one to compare the relevance of different sources of experience in the crop insurance decision-making process. Findings The author found that experience tends to be a catalyst for insurance participation. Policy implications are discussed, in particular, the author discusses on the importance of bolstering uptake to exploit the advantages of the inertia that emerge from experience, and the importance of initiatives to increase the knowledge of crop insurance instruments. Originality/value To the best of the author’s knowledge, the role of experience has been underinvestigated. The analysis has the specific contribution of modeling the potential role of experience (exploited after buying an insurance contract) on uptake in crop insurance programs.

scholarly journals Is there a demand for multi-year crop insurance?

2015 ◽  
Vol 75 (1) ◽  
pp. 92-102 ◽  
Author(s):  
Maria Osipenko ◽  
Zhiwei Shen ◽  
Martin Odening
Keyword(s):  
Choice Model ◽  
Crop Insurance ◽  
Aggregate Demand ◽  
Market Potential ◽  
Risk Averse ◽  
Dynamic Discrete Choice ◽  
Content Type ◽  
Dynamic Discrete Choice Model ◽  
Administrative Costs ◽  
Insurance Contracts

Purpose – The purpose of this paper is to examine the aggregate demand for single- and multi-year crop insurance contracts and to discuss market potential for multi-year crop insurances. Design/methodology/approach – In this paper the authors develop a dynamic discrete choice model of insurance alternatives, in which single- and multi-year insurance contracts are offered to heterogeneous risk averse farmers. The farmers determine their insurances choices based on inter-temporal utilities. Findings – The results show that in a competitive insurance market with heterogeneous risk averse farmers, there is simultaneous demand for both insurance contracts. Moreover, the introduction of multi-year contracts enhances the market penetration of insurance products. Research limitations/implications – The effect of introducing multi-year crop insurance is moderate when applying the model to US corn production. In practice, however, the increase of insurance demand could be more pronounced because we did not consider marketing and administrative costs and thus ignore this cost reduction potential of multi-year insurance. Originality/value – This study adds to the literature analyzing the feasibility of multi-year crop insurance and also shows that there is market potential for multi-year crop insurance.

Positive Spillovers from Infrastructure Investment: How Pipeline Expansions Encourage Fuel Switching

2021 ◽  
pp. 1-43
Author(s):  
Jonathan B. Scott
Keyword(s):  
Natural Gas ◽  
Choice Model ◽  
Infrastructure Investment ◽  
Dynamic Discrete Choice ◽  
Emissions Reductions ◽  
Dynamic Discrete Choice Model ◽  
Fuel Switching ◽  
Experimental Variation ◽  
Quasi Experimental

Abstract This paper studies the role of the U.S. pipeline infrastructure in the country's transition from coal to natural gas energy. I leverage the EPA's Mercury and Air Toxics Standards as a plausibly exogenous intervention, which encouraged many coal plants to convert to natural gas. Combining this quasi-experimental variation with a plant's preexisting proximity to the pipeline network, I isolate implied pipeline connection costs within a dynamic discrete choice model of plant conversions. Key model results indicate that infrastructure-related costs prevent $9 billion in emissions reductions from taking place, suggesting a $2.4 million per mile external benefit of pipeline expansions.

scholarly journals Dynamic Implications of Subjective Expectations: Evidence from Adult Smokers

2014 ◽  
Vol 6 (1) ◽  
pp. 1-37 ◽  
Author(s):  
Yang Wang
Keyword(s):  
Rational Expectations ◽  
Choice Model ◽  
Unobserved Heterogeneity ◽  
Policy Implications ◽  
Mortality Data ◽  
Dynamic Discrete Choice ◽  
Subjective Expectations ◽  
Survival Probabilities ◽  
Dynamic Discrete Choice Model ◽  
Set Up

We set up a dynamic discrete choice model with subjective expectations data to explain adult smokers’ smoking decisions. We find important differences between subjective survival probabilities and those estimated using observed mortality data. Subjectively, individuals attach less weight to their health conditions and smoking choices and more weight to such factors as age, race, and parents’ longevity. Moreover, adult smokers are found to care more about their health and to be more forward-looking than predicted by a rational expectations framework. We further show the importance of unobserved heterogeneity in agents’ subjective survival probabilities, and discuss policy implications of subjective expectations. (JEL D12, D84, I12)

Portfolio investment outflow and the complementary role of direct investment

2015 ◽  
Vol 7 (3) ◽  
pp. 190-206 ◽  
Author(s):  
Abdullah Noman ◽  
Mohammad Nakibur Rahman ◽  
Atsuyuki Naka
Keyword(s):  
Direct Investment ◽  
Relevant Literature ◽  
Explanatory Power ◽  
Least Square ◽  
Policy Implications ◽  
Portfolio Investment ◽  
Content Type ◽  
Foreign Portfolio Investment ◽  
Complementary Role

Purpose – This paper aims to uncover potential contemporaneous relationship between foreign portfolio investment (FPI) and another popular type of cross-border investment outflow, namely, foreign direct investment (FDI). Design/methodology/approach – The relationship between FPI and FDI are modeled using simultaneous equations approach to take potential endogeneity in to account. In a panel of 45 countries over the period of 2001-2009, FPI and FDI are found to be strategically complimentary to each other. Findings – The two-stage least square estimates suggest existence of both statistically and economically significant relationship between these two types of outflows. In particular, the FDI outflow has empirically significant predictive power in explaining the FPI outflow. Similarly, the FPI outflow also has significant explanatory power for the observed level of FDI outflow. Second, the FPI has greater explanatory power for FDI outflow than the FDI for the FPI outflow. Originality/value – The authors believe that the paper would contribute to the relevant literature in terms of its originality and scope. The empirical findings of the paper have valuable policy implications.

A structural relationship model of gender-role orientation and entrepreneurial intention: examining the mediating effect of motivational antecedents in Northeast India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kiefe Heibormi Passah ◽  
Nagari Mohan Panda
Keyword(s):  
Gender Role ◽  
Entrepreneurial Intention ◽  
Northeast India ◽  
Structural Relationship ◽  
Mediating Effect ◽  
Policy Implications ◽  
Content Type ◽  
Developing Region ◽  
The Relationship

PurposeThe paper presents a structural model to explain the relationship between various gender-role orientations (GROs) and motivational antecedents leading to entrepreneurial intention (EI). It examines the influence of GRO in the formation of EI among educated youths of Northeast India.Design/methodology/approachUsing a structural equation modelling approach, the hypothesized model is tested on a sample of 642 post-graduate students from four different universities in Northeast India, a developing region with unique socio-cultural diversity. The mediating role of EI antecedents on the relationship between GRO and EI was examined after establishing the reliability and validity of the measurement model.FindingsResults from the analysis support the hypothesized structural relationship confirming the influence of GRO on EI. The study also finds that androgynous individuals have a higher EI than their masculine or feminine counterparts.Research limitations/implicationsThe study contributes to the understanding of EI determinants from a GRO perspective, especially in the industrially backward region of an emerging economy. It adds to the existing literature by empirically proving the role of gender orientation. The results have several policy implications for educational institutions and policymakers in emerging economies.Originality/valueThe paper re-examines the predictive value of the theory of planned behaviour (TPB) model from a GRO perspective and compares indirect effects of gender identity through motivational antecedents on EI. Whilst TPB predicted EI in Western and developed countries, using a more diverse sample provides strong empirical evidence in the context of a developing region.

What influences bank lending in Saudi Arabia?

2020 ◽  
Vol 27 (2) ◽  
pp. 125-155
Author(s):  
Ken Miyajima
Keyword(s):  
Saudi Arabia ◽  
Private Sector ◽  
Balance Sheet ◽  
Oil Prices ◽  
Bank Lending ◽  
Policy Implications ◽  
Content Type ◽  
Balance Sheets ◽  
Level Data ◽  
Bank Balance Sheets

PurposeDeterminants of credit growth in Saudi Arabia are investigated.Design/methodology/approachA panel approach is applied to macroeconomic and bank-level data spanning 2000 ‐15.FindingsBank lending is supported by strong bank balance sheet conditions (high capital ratio, and growth of NPL provisioning and deposits), and higher growth of both oil prices and non-oil private sector GDP. Lower bank concentration also helps, likely through greater competition, so does stronger institution. Consistent with the literature, lending by Islamic banks may be more responsive to economic activity. Lending remained robust in 2015 despite oil prices having declined, helped by strong bank balance sheets and as banks reduced their holdings of “excess liquidity”. To support bank lending in the period ahead, bank balance sheets need to remain strong. Fiscal adjustment and a reduced reliance on banks to finance the budget deficit would support credit provision to the private sector.Originality/valueThe paper is first to analyze in detail determinants of bank lending in Saudi Arabia applying a panel approach to bank level data, and draws critical policy implications.

Product-level profitability

2019 ◽  
Vol 33 (1) ◽  
pp. 214-237
Author(s):  
Hannu Hannila ◽  
Joni Koskinen ◽  
Janne Harkonen ◽  
Harri Haapasalo
Keyword(s):  
Business Processes ◽  
Data Driven ◽  
Product Portfolio ◽  
Data Governance ◽  
Content Type ◽  
Technical Product ◽  
Product Level ◽  
Level Data ◽  
Corporate Level

Purpose The purpose of this paper is to analyse current challenges and to articulate the preconditions for data-driven, fact-based product portfolio management (PPM) based on commercial and technical product structures, critical business processes, corporate business IT and company data assets. Here, data assets were classified from a PPM perspective in terms of (product/customer/supplier) master data, transaction data and Internet of Things data. The study also addresses the supporting role of corporate-level data governance. Design/methodology/approach The study combines a literature review and qualitative analysis of empirical data collected from eight international companies of varying size. Findings Companies’ current inability to analyse products effectively based on existing data is surprising. The present findings identify a number of preconditions for data-driven, fact-based PPM, including mutual understanding of company products (to establish a consistent commercial and technical product structure), product classification as strategic, supportive or non-strategic (to link commercial and technical product structures with product strategy) and a holistic, corporate-level data model for adjusting the company’s business IT (to support product portfolio visualisation). Practical implications The findings provide a logical and empirical basis for fact-based, product-level analysis of product profitability and analysis of the product portfolio over the product life cycle, supporting a data-driven approach to the optimisation of commercial and technical product structure, business IT systems and company product strategy. As a virtual representation of reality, the company data model facilitates product visualisation. The findings are of great practical value, as they demonstrate the significance of corporate-level data assets, data governance and business-critical data for managing a company’s products and portfolio. Originality/value The study contributes to the existing literature by specifying the preconditions for data-driven, fact-based PPM as a basis for product-level analysis and decision making, emphasising the role of company data assets and clarifying the links between business processes, information systems and data assets for PPM.

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