{"title":"When Should There Be Vertical Choice in Health Insurance Markets?","authors":"Victoria R Marone, Adrienne Sabety","doi":"10.1257/aer.20201073","DOIUrl":"10.1257/aer.20201073","url":null,"abstract":"<p><p>We study the welfare effects of offering choice over coverage levels-\"vertical choice\"-in regulated health insurance markets. We emphasize that heterogeneity in efficient coverage level is not sufficient to motivate choice. When premiums cannot reflect individuals' costs, it may not be in consumers' best interest to select their efficient coverage level. We show that vertical choice is efficient only if consumers with higher willingness-to-pay have a higher efficient level of coverage. We investigate this condition empirically and find that as long as a minimum coverage level can be enforced, the welfare gains from vertical choice are either zero or economically small.</p>","PeriodicalId":48472,"journal":{"name":"American Economic Review","volume":"112 1","pages":"304-342"},"PeriodicalIF":10.5,"publicationDate":"2022-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8782442/pdf/nihms-1768818.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"39728174","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"THE IMPACT OF COVID-19 ON THE IT SECTOR: WAS THE ADJUSTMENT AS EASY AS IT SEEMED? THE CASE OF CROATIA","authors":"Julia Stanic Ružica Perié","doi":"10.51558/2303-680x.2022.20.1.49","DOIUrl":"https://doi.org/10.51558/2303-680x.2022.20.1.49","url":null,"abstract":"The crisis caused by the Covid-19 pandemic affected almost all organizations, regardless of the industry in which they operate. The new working conditions created to protect the health of all employees required a new mindset and a ‘switch’ to more digitalized operations. Many organizations had to adapt or even completely change their business model in order to survive and save jobs. Since digitalized operations were already in place in the IT industry, it seemed that organizations within it had an easier adjustment process to the new pandemic conditions. But have IT companies survived the pandemic as unscathed as it seemed? The purpose of this paper is to examine how Croatian IT companies mitigated the effects of Covid-19 and how they managed their employees during this crisis. This paper examines the impact of the pandemic on employees in the IT sector and analyzes how leaders managed to ensure the psychological safety of their employees under these uncertain conditions. In addition, this paper answers whether and to what extent IT companies had to adapt their business models and what other challenges (cybersecurity, new platforms, etc.) they had to respond to. Using questionnaires and semi-structured interviews, managers and employees of ten IT companies operating in Croatia were surveyed. It was found that most IT companies experienced a short-term decline in revenue during the pandemic. The results of the research showed that companies in the IT sector also organized remote work, but unlike other sectors, employees in the IT sector were more likely to permanently switch to remote work, as they were more satisfied, motivated and productive when working remotely. Moreover, adapting to the new working conditions led IT companies to accelerate digitalization and reduce operating costs without reducing the quality of services. This research can serve as an example of good practice for all organizations looking to digitalize their business and respond to potential new, unexpected crises.","PeriodicalId":48472,"journal":{"name":"American Economic Review","volume":"1 1","pages":""},"PeriodicalIF":10.7,"publicationDate":"2022-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79929646","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"FEDERAL GOVERNMENT AGRICULTURAL FINANCING AND ECONOMIC GROWTH IN NIGERIA","authors":"","doi":"10.51558/2303-680x.2022.20.1.31","DOIUrl":"https://doi.org/10.51558/2303-680x.2022.20.1.31","url":null,"abstract":"This paper analyzed the impact of federal government agricultural financing on economic growth in Nigeria. The study utilized the time series data which was extracted from the Central Bank of Nigeria statistical bulletin. The properties of the variables were tested using the Augmented Dickey- Fuller unit root test. A Single equation cointegration test confirmed no cointegration and a short-run vector autoregressive model was used to analyze the data, after which the diagnostic test was carried out to confirm the normality of the series. The study revealed that federal government agricultural financing has a negative contribution to economic growth in Nigeria and was statistically insignificant. Agricultural Credit Guarantee Scheme Funds had a positive but not statistically significant contribution to economic growth and there was no causal relationship among the variables. The study concluded that federal government agricultural financing has no significant impact on economic growth in Nigeria. Therefore, the study recommended that federal government should increase funding to the agricultural sector to be able to impact positively on the economic growth of Nigeria.","PeriodicalId":48472,"journal":{"name":"American Economic Review","volume":"9 1","pages":""},"PeriodicalIF":10.7,"publicationDate":"2022-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"72803974","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"THE INFLUENCE OF INSTAGRAM LIKES ON CONSUMER ATTITUDE AND PURCHASE INTENTION OF E-COMMERCE USERS IN BOSNIA AND HERZEGOVINA","authors":"Erna Mekić Ensar Grcić-Rešidović","doi":"10.51558/2303-680x.2022.20.1.3","DOIUrl":"https://doi.org/10.51558/2303-680x.2022.20.1.3","url":null,"abstract":"The popularity of social media for business and marketing is on a definite rise. Although researchers are increasingly studying various aspects of SNS (social networking sites) marketing and e-commerce, there are still few studies into the impact of Instagram due to the relatively new nature of the application. Therefore, the main objective of this study is to provide an analysis of the statistical significance of Instagram likes on consumer attitude and purchase intention on a linked e-commerce site. The secondary objective is to compare demographic data based on age, gender, and educational categories of the respondents. The final aim is to bridge the gap in literature and provide practical implications which would be useful to professionals in brand and marketing management. Based on a systematic literature review, first order structural equation model was proposed and tested. The empirical data was derived from a survey of 166 subjects in Bosnia and Herzegovina. Upon the collection of data, factor analysis was conducted in SPSS to ensure the validity and reliability through items’ loadings and Cronbach’s Alpha values. Furthermore, the empirical hypothesis testing was conducted in SmartPLS 3 in order to investigate direct effects of variables in the model. The results indicated that there is a significant statistical impact of Instagram likes on consumer attitude and purchase intention. Currently, due to the relatively recent use of the app for business and marketing purposes, there is a very limited amount of research on consumers’ involvement and attitude on Instagram and its impact on the likelihood of purchase. Therefore, one can consider the theoretical and practical implications of this study to be evident.","PeriodicalId":48472,"journal":{"name":"American Economic Review","volume":"1 1","pages":""},"PeriodicalIF":10.7,"publicationDate":"2022-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88898187","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"CHANGES IN HOUSEHOLD AND GENERAL GOVERNMENT CONSUMPTION AND SAVINGS DURING THE COVID-19 PANDEMIC IN THE EUROPEAN UNION","authors":"B. Crnković","doi":"10.51558/2303-680x.2022.20.1.59","DOIUrl":"https://doi.org/10.51558/2303-680x.2022.20.1.59","url":null,"abstract":"In March 2020, the COVID-19 pandemic caused a significant economic shock in countries worldwide, negatively affecting every aspect of the world economy. Due to the situation with the COVID-19 pandemic, governments imposed a lockdown on households to slow the spread of the pandemic. It was unknown how long the lockdown could last and how much impact it would have on households and the general government. Household consumption is a specific component of final GDP consumption and generally represents about 60% of GDP. Crises most often affect the individual and manifest in unplanned and unnecessary costs that affect household consumption and savings, and consequently growth and development. Eurostat states that the household savings rate of the European Union (EU) decreased in the third quarter of 2020 but was 4.5% higher than in 2019. This paper aims to analyze the differences in household consumption expenditure and net savings across the EU from 2018 until 2021 and general government consumption expenditure and net savings. In addition, it will compare the differences in household and general government consumption and savings in 2019 and 2020. This paper uses univariate statistical methods to define the differences between the EU member states and their private and public consumption expenditure and net savings. The authors will suggest further research on the topic mentioned above and provide evidence on how households should react to future pandemic situations.","PeriodicalId":48472,"journal":{"name":"American Economic Review","volume":"27 1","pages":""},"PeriodicalIF":10.7,"publicationDate":"2022-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78165700","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Imperfect Competition, Compensating Differentials, and Rent Sharing in the US Labor Market","authors":"Thibaut Lamadon, Magne Mogstad, Bradley Setzler","doi":"10.1257/aer.20190790","DOIUrl":"https://doi.org/10.1257/aer.20190790","url":null,"abstract":"We quantify the importance of imperfect competition in the US labor market by estimating the size of labor market rents earned by American firms and workers. We construct a matched employer-employee panel dataset by combining the universe of US business and worker tax records for the period 2001–2015. Using this panel data, we identify and estimate an equilibrium model of the labor market with two-sided heterogeneity where workers view firms as imperfect substitutes because of heterogeneous preferences over nonwage job characteristics. The model allows us to draw inference about imperfect competition, worker sorting, compensating differentials, and rent sharing. (JEL D24, H24, H25, J22, J24, J31, J42)","PeriodicalId":48472,"journal":{"name":"American Economic Review","volume":"505 1","pages":""},"PeriodicalIF":10.7,"publicationDate":"2021-12-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138505135","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Employment Structure and the Rise of the Modern Tax System","authors":"Anders Jensen","doi":"10.1257/aer.20191528","DOIUrl":"https://doi.org/10.1257/aer.20191528","url":null,"abstract":"This paper builds a new microdatabase that covers 100 countries at all income levels and long-run time series in the United States (1870–2010) and Mexico ( 1960–2010) to document how the modern tax system arises over development. I establish a new set of stylized facts, which show that the income tax exemption threshold decreases in the income distribution as a country develops, tracking growth in the employee share of employment that occurs gradually further down the income distribution. Additional evidence supports the interpretation that the rise in third-party covered income through increases in employee share drives expansions of the income tax base over development. (JEL D31, H23, H24, H71, J22, J23, N40)","PeriodicalId":48472,"journal":{"name":"American Economic Review","volume":"513 4","pages":""},"PeriodicalIF":10.7,"publicationDate":"2021-12-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138505169","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Consumption Response to Credit Expansions: Evidence from Experimental Assignment of 45,307 Credit Lines","authors":"Deniz Aydin","doi":"10.1257/aer.20191178","DOIUrl":"https://doi.org/10.1257/aer.20191178","url":null,"abstract":"In a field experiment that constructs a randomized credit limit shock, participants borrow to spend 11 cents on the dollar in the first quarter and 28 cents by the third year. Effects extend to those far from the limit, those who had the new limits as available credit, and those with a liquid asset buffer. In the short-run, flexible and installment contracts are used in tandem, with unconstrained using installments more. Long-run borrowing is predominantly using installments. Near limits, participants borrow when credit expands but save out of constraints when limits are tight. Findings support a buffer-stock interpretation emphasizing precautionary saving. (JEL C93, E21, G21, G51, O12, O16)","PeriodicalId":48472,"journal":{"name":"American Economic Review","volume":"518 ","pages":""},"PeriodicalIF":10.7,"publicationDate":"2021-12-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138505167","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"College Tuition and Income Inequality","authors":"Zhifeng Cai, Jonathan Heathcote","doi":"10.1257/aer.20181027","DOIUrl":"https://doi.org/10.1257/aer.20181027","url":null,"abstract":"This paper evaluates the role of rising income inequality in explaining observed growth in college tuition. We develop a competitive model of the college market, in which college quality depends on instructional expenditure and the average ability of admitted students. An innovative feature of our model is that it allows for a continuous distribution of college quality. We find that observed increases in US income inequality can explain more than half of the observed rise in average net tuition since 1990 and that rising income inequality has also depressed college attendance. (JEL D31, I22, I23, I24)","PeriodicalId":48472,"journal":{"name":"American Economic Review","volume":"503 4","pages":""},"PeriodicalIF":10.7,"publicationDate":"2021-12-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138505136","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Luigi Butera, Robert Metcalfe, William Morrison, Dmitry Taubinsky
{"title":"Measuring the Welfare Effects of Shame and Pride","authors":"Luigi Butera, Robert Metcalfe, William Morrison, Dmitry Taubinsky","doi":"10.1257/aer.20190433","DOIUrl":"https://doi.org/10.1257/aer.20190433","url":null,"abstract":"Public recognition is frequently used to motivate desirable behavior, yet its welfare effects—such as costs of shame or gains from pride— are rarely measured. We develop a portable empirical methodology for measuring and monetizing social image utility, and we deploy it in experiments on exercise and charitable behavior. In all experiments, public recognition motivates desirable behavior but creates highly unequal image payoffs. High-performing individuals enjoy significant utility gains, while low-performing individuals incur significant utility losses. We estimate structural models of social signaling, and we use the models to explore the social efficiency of public recognition policies. (JEL C93, D64, D82, D91)","PeriodicalId":48472,"journal":{"name":"American Economic Review","volume":"4 1","pages":""},"PeriodicalIF":10.7,"publicationDate":"2021-12-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138543642","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}