The Role of Medical Expenditure Risk in Portfolio Allocation Decisions

2016 ◽  
Vol 26 (11) ◽  
pp. 1447-1458 ◽  
Author(s):  
Padmaja Ayyagari ◽  
Daifeng He
Keyword(s):  
Portfolio Allocation ◽  
Medical Expenditure ◽  
Allocation Decisions

How important are early investment experiences on subsequent investment decisions? A laboratory experiment on asset allocation

2015 ◽  
Vol 41 (6) ◽  
pp. 582-590 ◽  
Author(s):  
Dimitra Papadovasilaki ◽  
Federico Guerrero ◽  
James Sundali ◽  
Gregory Stone
Keyword(s):  
Asset Allocation ◽  
Design Methodology ◽  
Investment Decisions ◽  
Portfolio Allocation ◽  
Investment Behavior ◽  
Content Type ◽  
Aggregate Shocks ◽  
Riskless Asset ◽  
Allocation Decisions

Purpose – The purpose of this paper is to examine the influence of early investment experiences on subsequent portfolio allocation decisions in a laboratory setting. Design/methodology/approach – In an experiment in which the task consisted of allocating a portfolio between a risky and riskless asset for 20 periods, two groups of subjects were confronted with either a market boom or bust in the initial four periods. Findings – The findings suggest that after controlling for demographic characteristics, the timing of a boom or bust during the investment lifecycle matters greatly. Subjects that faced a bust early in their investment lifecycle held less of the risky asset in subsequent periods compared to subjects who experienced an early boom. Originality/value – To the best of the authors knowledge this is the first laboratory study investigating the role of early aggregate shocks on subsequent investment behavior.

Health Care

2018 ◽  
Author(s):  
Pierre Pestieau ◽  
Mathieu Lefebvre
Keyword(s):  
Health Care ◽  
Technological Progress ◽  
Health Care Systems ◽  
Third Party ◽  
Medical Expenditure ◽  
Public Health Care ◽  
The Public ◽  
Common Features ◽  
Care Systems

This chapter reviews the public health care systems as well as their challenges. It first shows how expenditure on health care has evolved in previous decades and deals with the reasons for the growth observed in almost every European country. It emphasizes the role of technological progress as a main explanatory factor of the increase in medical expenditure but also points to the challenges facing cost-containment policies. Especially, the main common features of health care systems in Europe, such as third-party payment, single provider approach and cost-based reimbursement are discussed. Finally the chapter shows that although inequalities in health exist in the population, health care systems are redistributive. Reforms are thus needed but the trade-off between budgetary efficiency and equity is difficult.

scholarly journals Production choices with water markets and risk aversion: the role of initial allocations and forward trading

2018 ◽  
Vol 46 (4) ◽  
pp. 579-608 ◽  
Author(s):  
Philippe Bontems ◽  
Céline Nauges
Keyword(s):  
Irrigation Water ◽  
Weather Conditions ◽  
Water Markets ◽  
Initial Water ◽  
Production Risk ◽  
Net Returns ◽  
Murray Darling Basin ◽  
Forward Trading ◽  
Allocation Decisions

Abstract We develop a theoretical model that describes risk-averse farmers’ decisions when facing production risk due to uncertain weather conditions and when irrigation water can be traded on a market. We focus on the role of initial water allocations granted to irrigated farms at the start of the season. The presence of water markets makes the future water price uncertain and hence the value of initial water allocations uncertain. We analyse the properties of this background risk and study how initial water allocations impact farmers’ land allocation decisions between an irrigated crop and a non-irrigated crop, both characterised by random expected net returns. We then extend the model by permitting irrigation water to be traded ex-ante at a known price (forward market). Finally, we illustrate our main theoretical findings using simulations. We calibrate distributions of the random variables based on observed data from the Murray–Darling Basin in Australia where a water market has been in place for several decades.

Conservatism Gets Funded? A Field Experiment on the Role of Negative Information in Novel Project Evaluation

2021 ◽  
Author(s):  
Jacqueline N. Lanei ◽  
Misha Teplitskiy ◽  
Gary Gray ◽  
Hardeep Ranu ◽  
Michael Menietti ◽  
...  
Keyword(s):  
Information Sharing ◽  
Business Strategy ◽  
Research University ◽  
Field Experiments ◽  
Negative Information ◽  
Initial Score ◽  
Funding Opportunities ◽  
Allocation Decisions ◽  
Selection Of

The evaluation and selection of novel projects lies at the heart of scientific and technological innovation, and yet there are persistent concerns about bias, such as conservatism. This paper investigates the role that the format of evaluation, specifically information sharing among expert evaluators, plays in generating conservative decisions. We executed two field experiments in two separate grant-funding opportunities at a leading research university, mobilizing 369 evaluators from seven universities to evaluate 97 projects, resulting in 761 proposal-evaluation pairs and more than $250,000 in awards. We exogenously varied the relative valence (positive and negative) of others’ scores and measured how exposures to higher and lower scores affect the focal evaluator’s propensity to change their initial score. We found causal evidence of a negativity bias, where evaluators lower their scores by more points after seeing scores more critical than their own rather than raise them after seeing more favorable scores. Qualitative coding of the evaluators’ justifications for score changes reveals that exposures to lower scores were associated with greater attention to uncovering weaknesses, whereas exposures to neutral or higher scores were associated with increased emphasis on nonevaluation criteria, such as confidence in one’s judgment. The greater power of negative information suggests that information sharing among expert evaluators can lead to more conservative allocation decisions that favor protecting against failure rather than maximizing success. This paper was accepted by Alfonso Gambardella, business strategy.

Impact of Allocation Decisions and Market Factors on Foreign News Coverage

1989 ◽  
Vol 10 (4) ◽  
pp. 23-32 ◽  
Author(s):  
Stephen Lacy ◽  
Tsan-Kuo Chang ◽  
Tuen-Yu Lau
Keyword(s):  
Local Population ◽  
News Coverage ◽  
Population Characteristics ◽  
Foreign News ◽  
Market Factors ◽  
Market Variables ◽  
Allocation Decisions

The study finds that the business nature of newspaper organizations influence foreign news coverage and content. The role of market variables is unclear, but it appears that local population characteristics that might affect demand have no influence on this kind of content.

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