scholarly journals The Impact of Bank Deregulations on Farm Financial Stress and Stability

2020 ◽  
Vol 12 (4) ◽  
pp. 1684
Author(s):  
Eric C. Davis ◽  
Ani L. Katchova
Keyword(s):  
Fixed Effects ◽  
De Novo ◽  
Financial Stress ◽  
Farm Income ◽  
Banking Deregulation ◽  
Clear Cut ◽  
Interstate Banking ◽  
Bank Deregulation ◽  
The Cost ◽  
The Impact

Previous research on bank deregulation has supported the idea that interstate banking deregulation lowered the cost of credit and increased the net farm income. This analysis builds on that base by investigating whether the agricultural loan delinquency volume was also affected. Using a panel data fixed effects approach, deregulation was found to be associated with changes in the volume of delinquencies: interstate banking deregulation reduced the volume of production loan delinquencies, and de novo branching deregulation increased both production and real-estate loan delinquencies. Thus, deregulation’s outcome is not clear cut: interstate banking reduced farm financial stress but de novo deregulation increased it.

Proprietary information and the cost of bank debt

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
HyunJun Na
Keyword(s):  
Least Square ◽  
Bank Loan ◽  
Content Type ◽  
Loan Contracts ◽  
Proprietary Information ◽  
Banking Deregulation ◽  
Interstate Banking ◽  
Innovative Firms ◽  
Bank Loan Contracts ◽  
The Impact

PurposeThis study explores how the firm’s proprietary information has an impact on the bank loan contracts. It explains the propensity of using the competitive bid option (CBO) in the syndicate loans to solicit the best bid for innovative firms and how it changes based on industry competition and the degree of innovations. This research also examines how the interstate banking deregulation (Interstate Banking and Branching Efficiency Act) in 1994 affected the private loan contracts for innovative borrowers.Design/methodology/approachThe study uses various econometric analyses. First, it uses the propensity score matching analysis to see the impact of patents on pricing terms. Second, it uses the two-stage least square (2SLS) analysis by implementing the litigation and non-NYSE variables. Finally, it studies the impact of the policy change of the Interstate Banking and Branching Efficiency Act of 1994 on the bank loan contracts.FindingsFirms with more proprietary information pays more annual facility fees but less other fees. The patents are the primary determinants of the usage of CBO in the syndicate loans to solicit the best bid. While innovative firms can have better contract conditions by the CBO, firms with more proprietary information will less likely to use the CBO option to minimize the leakage of private information and the severe monitoring from the banks. Finally, more proprietary information lowered the loan spread for firms dependent on the external capital after the interstate banking deregulation.Originality/valueThe findings of this research will help senior executives with responsibility for financing their innovative projects. In addition, these findings should prove helpful for the lawmakers to boost economies.

scholarly journals Recent Cost Increases: Their Future Impacts on Agriculture

1975 ◽  
Vol 7 (1) ◽  
pp. 71-79
Author(s):  
Wayne A. Boutwell ◽  
Thomas W. Little
Keyword(s):  
Agricultural Production ◽  
Agricultural Sector ◽  
Price Level ◽  
Capital Requirements ◽  
Farm Income ◽  
Agricultural Commodities ◽  
Domestic Prices ◽  
The Cost ◽  
The Impact ◽  
Input Prices

The impact of rapidly escalating input prices of farm income, agricultural production, production adjustments, the general price level, the cost of living and capital requirements in the agricultural sector is a source of increasing concern to farmers, suppliers of capital to agriculture, and consumers of agricultural products. Record prices for agricultural commodities, such as feed grains and soybeans, partially masked the effects of a 52 percent increase in the index of prices paid for production items on net farm income during the period 1971–74. As agricultural machinery and farm buildings are replaced, world stocks of agricultural commodities are replenished, and domestic prices begin to decline, the magnitude of these cost increases will become more apparent.

scholarly journals The Impact of New Drug Launches on Hospitalization in 2015 for 67 Medical Conditions in 15 OECD Countries: A Two-Way Fixed-Effects Analysis

2018 ◽  
Vol 21 (2) ◽  
Author(s):  
Frank R. Lichtenberg
Keyword(s):  
Prescription Drug ◽  
Fixed Effects ◽  
Medical Costs ◽  
Oecd Countries ◽  
Pharmaceutical Innovation ◽  
Cost Offset ◽  
The Cost ◽  
Cost Offsets ◽  
The Impact ◽  
Over Time

Abstract There are two types of prescription drug cost offsets. The first type of cost offset – from prescription drug use – is primarily about the effect of changes in drug quantity (e.g. due to changes in out-of-pocket drug costs) on other medical costs. Previous studies indicate that the cost offsets from prescription drug use may slightly exceed the cost of the drugs themselves. The second type of cost offset – the cost offset from prescription drug innovation – is primarily about the effect of prescription drug quality on other medical costs. Two previous studies (of a single disease or a single country) found that pharmaceutical innovation reduced hospitalization, and that the reduction in hospital cost from the use of newer drugs was considerably greater than the innovation-induced increase in pharmaceutical expenditure. In this study, we reexamine the impact that pharmaceutical innovation has had on hospitalization, employing a different type of 2-way fixed effects research design. In lieu of analyzing different countries over time for a single disease, or different diseases over time for a single country, we estimate the impact that new drug launches that occurred during the period 1982–2015 had on hospitalization in 2015 for 67 diseases in 15 OECD countries. Our models include both country fixed effects and disease fixed effects, which control for the average propensity of people to be hospitalized in each country and from each disease. The number of hospital discharges and days of care in 2015 is significantly inversely related to the number of drugs launched during 1982–2005, but not significantly related to the number of drugs launched after 2005. (Utilization of drugs during the first few years after they are launched is relatively low, and drugs for chronic conditions may have to be consumed for several years to achieve full effectiveness.) The estimates imply that, if no new drugs had been launched after 1981, total days of care in 2015 would have been 163% higher than it actually was. The estimated reduction in 2015 hospital expenditure that may be attributable to post-1981 drug launches was 5.3 times as large as 2015 expenditure on those drugs.

Tax policy and farm capital investment: Section 179 expensing and bonus depreciation

2016 ◽  
Vol 76 (2) ◽  
pp. 246-269 ◽  
Author(s):  
James M Williamson ◽  
Sarah Stutzman
Keyword(s):  
Fixed Effects ◽  
Capital Investment ◽  
Agricultural Sector ◽  
Physical Capital ◽  
Cost Recovery ◽  
Farm Income ◽  
Content Type ◽  
Bonus Depreciation ◽  
On Farm ◽  
The Impact

Purpose – The purpose of this paper is to estimate the impact of Internal Revenue Code cost recovery provisions – Section 179 and “bonus depreciation” – on farm capital investment. Design/methodology/approach – The authors construct a synthetic panel of data consisting of cohorts of similar farms based on state and production specialization using the USDA’s Agricultural Resource Management Survey for years 1996-2012. Employing panel data methods, the authors are able to control for time-invariant fixed effects, as well as the effects of past investment on current investment. Findings – The authors estimate statistically significant investment demand elasticities with respect to the Section 179 expensing deduction of between 0.28 and 0.50. A change in bonus depreciation, on average, had little impact on capital investment. Practical implications – The estimates suggest there is a modest effect of the cost recovery provisions on investment overall, but a stronger effect on farms that have more than $10,000 in gross cash farm income. There are other implications for the agricultural sector: the provisions may encourage technology adoption with its associated benefits, such as reduced cost of production and improved conservation practices. On the other hand, the policy could contribute to the growing concentration in production as large commercial farms expand their operated acreage to take advantage of increasingly efficient physical capital. Originality/value – To the authors’ knowledge, this is the first research to use a nationally representative dataset to estimate to impact of Section 179 and “bonus depreciation” on farm investment. The findings provide evidence of the provisions’ impact on farm capital purchases.

scholarly journals Dinamika Perubahan Harga Padi Jagung Kedelai serta Implikasinya terhadap Pendapatan Usaha Tani

2019 ◽  
Vol 36 (1) ◽  
pp. 23
Author(s):  
Rizma Aldillah
Keyword(s):  
Supply Chain ◽  
Farm Income ◽  
Agricultural Activities ◽  
Trading System ◽  
Price Changes ◽  
Bargaining Position ◽  
The Cost ◽  
The Impact ◽  
Cost Components

<p>Price changes affect all aspects of agricultural activities, especially on agricultural development.To increase the production of strategic commodities such as rice, maize, and soybean, needs special attention to the impact of price changes closely related to that trading, so it is expected that the implications for farming income will be better and can make farmers more prosperous in the future. Often the fact, the growth in food demand is faster than the growth of its supply, causing changes in the price of staple foodstuffs, and ultimately impacting at the farmers income whose are uncertain. This paper aims to analyze the impact of changes in rice,maize and soybean prices on that trading, and its implications for farm income. The determination of the Reference Price of Purchase which only considers the cost of farming to produce rice, corn and soybean has not provided optimal support for efforts to increase the income of pajale farming. Therefore, it is necessary to consider all cost components, as well as government intervention in helping to strengthen the bargaining position of farmers in the trading system of these three commodities in Indonesia, so that the supply chain from farmers to the hands of end consumers can be cut, in order to provide direct implications for increased farm revenues.</p><p>Abstrak</p><p>Perubahan harga memengaruhi seluruh aspek kegiatan pertanian, khususnya terhadap pembangunan pertanian. Untuk meningkatkan produksi komoditas pangan utama, seperti padi, jagung, dan kedelai diperlukan perhatian khusus terhadap dampak perubahan harga yang berkaitan erat dengan perdagangannya sehingga diharapkan pendapatan usaha tani menjadi lebih baik dan petani makin sejahtera kedepannya. Seringkali faktanya bahwa pertumbuhan permintaan pangan lebih cepat dari pertumbuhan penyediaannya yang menyebabkan perubahan harga pangan pokok sering bergejolak dan akhirnya berdampak pada pendapatan petani yang tidak menentu. Tulisan ini bertujuan menganalisis dampak perubahan harga padi, jagung dan kedelai terhadap perdagangannya, serta implikasinya terhadap pendapatan usaha tani. Penetapan harga acuan pembelian (HAP) yang hanya mempertimbangkan biaya usaha tani untuk memproduksi padi, jagung dan kedelai belum memberikan dukungan yang optimal bagi upaya peningkatan pendapatan usaha tani pajale. Untuk itu, perlunya mempertimbangkan semua komponen biaya serta intervensi pemerintah dalam membantu memperkuat posisi tawar petani dalam sistem perdagangan ketiga komoditas tersebut di Indonesia sehingga rantai pasok dari petani ke tangan konsumen akhir dapat dipangkas dengan tujuan dapat memberikan implikasi secara langsung terhadap peningkatan pendapatan usaha tani.</p>

scholarly journals THE IMPACT OF INSTITUTIONS ON ENTREPRENEURSHIP: A CASE OF VIETNAM

2018 ◽  
Vol 8 (1) ◽  
pp. 22
Author(s):  
Trần Thanh Trúc ◽  
Trương Ngọc Hảo
Keyword(s):  
Land Use ◽  
Fixed Effects ◽  
Quantitative Research ◽  
Quantitative Research Methods ◽  
Land Access ◽  
Secondary Sources ◽  
Entry Cost ◽  
Negative Effect ◽  
The Cost ◽  
The Impact

This study attempts to examine the impact of institutional factors on entrepreneurship in Vietnam from 2005 to 2015. The study utilizes quantitative research methods with panel data collected from secondary sources of the General Statistics Office, Statistical Yearbook of Provinces, and the Provincial Competitiveness Index (PCI). The results based on fixed effects estimation show that the “entry cost” and “land access and stability in land use” are two indicators that have the strongest negative effect on entrepreneurship in Vietnam. Therefore, it is necessary to have specific policies to reduce the cost of market entry as well as more effective land use options to support entrepreneurship development in Vietnam.

scholarly journals THE IMPACT OF NEW DRUG LAUNCHES ON LIFE-YEARS LOST IN 2015 FROM 19 TYPES OF CANCER IN 36 COUNTRIES

2018 ◽  
Vol 84 (3) ◽  
pp. 309-354 ◽  
Author(s):  
Frank R. Lichtenberg
Keyword(s):  
Fixed Effects ◽  
Cancer Site ◽  
New Drug ◽  
Similar Drug ◽  
Life Years ◽  
Life Years Lost ◽  
The Cost ◽  
Lag Structure ◽  
The Impact ◽  
The Relationship

Abstract:This study employs a two-way fixed effects research design to measure the mortality impact and cost-effectiveness of cancer drugs: It analyzes the correlation across 36 countries between the relative mortality from 19 types of cancer in 2015 and the relative number of drugs previously launched in that country to treat that type of cancer, controlling for relative incidence. The sample size (both in terms of number of observations and population covered) of this study is considerably larger than the sample sizes of previous studies; a new and improved method of analyzing the lag structure of the relationship between drug launches and life-years lost is used; and a larger set of measures of the burden of cancer is analyzed. The number of DALYs and life-years lost are unrelated to drug launches 0–4 years earlier. This is not surprising, since utilization of a drug tends to be quite low during the first few post-launch years. Moreover, there is likely to be a lag of several years between utilization of a drug and its impact on mortality. However, mortality is significantly inversely related to the number of drug launches at least 5 years earlier, especially to drug launches 5–9 years earlier. One additional drug for a cancer site launched during 2006–2010 is estimated to have reduced the number of 2015 DALYs due to cancer at that site by 5.8%;; one additional drug launched during 1982–2005 is estimated to have reduced the number of 2015 DALYs by about 2.6%. Lower quality (or effectiveness) of earlier vintage drugs may account for their smaller estimated effect. We estimate that drugs launched during the entire 1982–2010 period reduced the number of cancer DALYs in 2015 by about 23.0%, and that, in the absence of new drug launches during 1982–2010, there would have been 26.3 million additional DALYs in 2015. Also, the nine countries with the largest number of drug launches during 1982–2010 are estimated to have had 14% fewer cancer DALYs (controlling for incidence) in 2015 than the nine countries with the smallest number of drug launches during 1982–2010. Estimates of the cost per life-year gained in 2015 from drugs launched during 2006–2010 range between $1,635 (life-years gained at all ages) and $2,820 (life-years gained before age 65). These estimates are similar to those obtained in previous country-specific studies of Belgium, Canada, and Mexico, and are well below the estimate obtained in one study of Switzerland. Mortality in 2015 is strongly inversely related to the number of drug launches in 2006–2010. If the relationship between mortality in 2020 and the number of drug launches in 2011–2015 is similar, drug launches 5–9 years earlier will reduce mortality even more (by 9.9%) between 2015 and 2020 than they did (by 8.4%) between 2010 and 2015.

scholarly journals Simulating the Impact of Input-Price Inflation on Farm Income

1971 ◽  
Vol 3 (1) ◽  
pp. 51-57
Author(s):  
Leroy Quance ◽  
Luther Tweeten
Keyword(s):  
Interest Rates ◽  
Labor Unions ◽  
Farm Income ◽  
Input Price ◽  
Price Inflation ◽  
Price Increases ◽  
Imperfectly Competitive ◽  
The Cost ◽  
On Farm ◽  
The Impact

A 1964 survey of 500 wheat producers in Oklahoma and Kansas revealed that the cost-price squeeze is most commonly viewed by farmers as the major cause of chronically low farm income.The cost side of the squeeze is widely attributed to the wage-price spiral caused by cycles of wage and input price increases negotiated between labor unions and imperfectly competitive firms, and to rising taxes and interest rates.

scholarly journals A systematic review and economic evaluation of diagnostic strategies for Lynch syndrome

2014 ◽  
Vol 18 (58) ◽  
pp. 1-406 ◽  
Author(s):  
Tristan Snowsill ◽  
Nicola Huxley ◽  
Martin Hoyle ◽  
Tracey Jones-Hughes ◽  
Helen Coelho ◽  
...  
Keyword(s):  
Cost Effectiveness ◽  
De Novo ◽  
Health Benefit ◽  
Cost Effective ◽  
Test Accuracy ◽  
Newly Diagnosed ◽  
Diagnostic Strategies ◽  
Age Limit ◽  
The Cost ◽  
The Impact

BackgroundLynch syndrome (LS) is an inherited autosomal dominant disorder characterised by an increased risk of colorectal cancer (CRC) and other cancers, and caused by mutations in the deoxyribonucleic acid (DNA) mismatch repair genes.ObjectiveTo evaluate the accuracy and cost-effectiveness of strategies to identify LS in newly diagnosed early-onset CRC patients (aged < 50 years). Cascade testing of relatives is employed in all strategies for individuals in whom LS is identified.Data sources and methodsSystematic reviews were conducted of the test accuracy of microsatellite instability (MSI) testing or immunohistochemistry (IHC) in individuals with CRC at risk of LS, and of economic evidence relating to diagnostic strategies for LS. Reviews were carried out in April 2012 (test accuracy); and in February 2012, repeated in February 2013 (economic evaluations). Databases searched included MEDLINE (1946 to April week 3, 2012), EMBASE (1980 to week 17, 2012) and Web of Science (inception to 30 April 2012), and risk of bias for test accuracy was assessed using the Quality Assessment of Diagnostic Accuracy Studies-2 (QUADAS-2) quality appraisal tool. A de novo economic model of diagnostic strategies for LS was developed.ResultsInconsistencies in study designs precluded pooling of diagnostic test accuracy results from a previous systematic review and nine subsequent primary studies. These were of mixed quality, with significant methodological concerns identified for most. IHC and MSI can both play a part in diagnosing LS but neither is gold standard. No UK studies evaluated the cost-effectiveness of diagnosing and managing LS, although studies from other countries generally found some strategies to be cost-effective compared with no testing.The de novo model demonstrated that all strategies were cost-effective compared with no testing at a threshold of £20,000 per quality-adjusted life-year (QALY), with the most cost-effective strategy utilising MSI andBRAFtesting [incremental cost-effectiveness ratio (ICER) = £5491 per QALY]. The maximum health benefit to the population of interest would be obtained using universal germline testing, but this would not be a cost-effective use of NHS resources compared with the next best strategy. When the age limit was raised from 50 to 60 and 70 years, the ICERs compared with no testing increased but remained below £20,000 per QALY (except for universal germline testing with an age limit of 70 years). The total net health benefit increased with the age limit as more individuals with LS were identified. Uncertainty was evaluated through univariate sensitivity analyses, which suggested that the parameters substantially affecting cost-effectiveness: were the risk of CRC for individuals with LS; the average number of relatives identified per index patient; the effectiveness of colonoscopy in preventing metachronous CRC; the cost of colonoscopy; the duration of the psychological impact of genetic testing on health-related quality of life (HRQoL); and the impact of prophylactic hysterectomy and bilateral salpingo-oophorectomy on HRQoL (this had the potential to make all testing strategies more expensive and less effective than no testing).LimitationsThe absence of high-quality data for the impact of prophylactic gynaecological surgery and the psychological impact of genetic testing on HRQoL is an acknowledged limitation.ConclusionsResults suggest that reflex testing for LS in newly diagnosed CRC patients aged < 50 years is cost-effective. Such testing may also be cost-effective in newly diagnosed CRC patients aged < 60 or < 70 years. Results are subject to uncertainty due to a number of parameters, for some of which good estimates were not identified. We recommend future research to estimate the cost-effectiveness of testing for LS in individuals with newly diagnosed endometrial or ovarian cancer, and the inclusion of aspirin chemoprevention. Further research is required to accurately estimate the impact of interventions on HRQoL.Study registrationThis study is registered as PROSPERO CRD42012002436.FundingThe National Institute for Health Research Health Technology Assessment programme.

scholarly journals Bank diversity and SME innovation: evidence from China

2019 ◽  
Vol 38 (2) ◽  
pp. 265-282
Author(s):  
Hongyu Li ◽  
Junjie Wu ◽  
Zhiqiang Lu
Keyword(s):  
Large Data ◽  
Firm Innovation ◽  
Data Set ◽  
Content Type ◽  
Banking Deregulation ◽  
Positive Effects ◽  
Bank Deregulation ◽  
Research Bias ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between bank diversity and small- and medium-sized enterprise (SME) firm innovation in China to evaluate the impact of recent bank deregulation. Design/methodology/approach Using a large data set that includes 8,143 firm-year observations of 1,122 listed SME firms in China and baseline and robustness regression analyses, the authors identify how bank diversity affects firm innovation and via what economic mechanisms. Potential endogeneity problems are considered and addressed in the design and analysis to minimize research bias. Findings The authors find robust evidence that bank diversity improves firm innovation. Specifically, the findings suggest that the positive effects of bank diversity on firm innovation are only significant for the firms which are more external finance dependent, have fewer growth opportunities and/or located in the provinces having low financial market development. Originality/value This study provides novel evidence and insights into the relationship between banking market structure and the determinants of firm innovation in the Chinese context, as a result of China’s banking deregulation.

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