Book•
Intermediate microeconomics : A modern approach
01 Jan 2006-
TL;DR: The Varian approach as mentioned in this paper gives students tools they can use on exams, in the rest of their classes, and in their careers after graduation, and is still the most modern presentation of the subject.
Abstract: This best-selling text is still the most modern presentation of the subject. The Varian approach gives students tools they can use on exams, in the rest of their classes, and in their careers after graduation.
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TL;DR: In this article, the authors apply the structure, conduct and performance (SCP) approach to a sample of 52 Austrian insurance firms and find that the standard SCP hypothesis of highly concentrated markets, which create incentives to engage in collusive behaviour and which in turn leads to higher industry profit rates, cannot be supported by the Austrian insurance industry.
Abstract: There exist a vast number of studies on the banking industry. However, the insurance industry remains relatively unexplored. Increasingly, Austrian insurance institutions are becoming important as financial intermediaries in the domestic market, and - based on proximity advantage - also in the Central and Eastern European markets. This paper applies the structure, conduct and performance (SCP) approach to a sample of 52 Austrian insurance firms. The main finding is that the standard SCP hypothesis of highly concentrated markets, which create incentives to engage in collusive behaviour and which in turn leads to higher industry profit rates, cannot be supported by the Austrian insurance industry leads to higher industry profit rates, cannot be supported by the Austrian insurance industry.;
15 citations
Cites background from "Intermediate microeconomics : A mod..."
...…an adequate measure of economies of scale as the ratio of a firm of minimum efficient scale (MES) to the market output: OutputMarket MESScaleofEconomies = (2) MES is the output level that relative to demand minimizes the average costs (Carlton and Perloff, 2000, p. 41; or Varian, 1999, p. 427)....
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TL;DR: In this article, the authors examined the Nigerian banking consolidation process using a dynamic panel for the period 2000-2010 and found that foreign ownership, mergers and acquisitions and bank size decrease costs.
Abstract: This study examines the Nigerian banking consolidation process using a dynamic panel for the period 2000-2010. The Arellano and Bond (1991) dynamic GMM approach is adopted to estimate a cost function taking into account the possible endogeneity of the covariates. The main finding is that the Nigerian banking sector has benefited from the consolidation process, and specifically that foreign ownership, mergers and acquisitions and bank size decrease costs. Directions for future research are also discussed.
15 citations
Cites background or methods from "Intermediate microeconomics : A mod..."
...The theoretical background to the present research is based on the microeconomic theory relating costs to covariates (see Varian, 2009)....
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...The independent variables listed in Table 2 were selected on the basis of microeconomic theory (Varian, 2009)....
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TL;DR: Some indication that risk attitude is associated with adherence to statin treatment, and that risk-neutral and risk-seeking patients may have poorer adherence than risk-averse patients, is found.
Abstract: Poor adherence to medical treatment may have considerable consequences for the patients’ health and for healthcare costs to society. The need to understand the determinants for poor adherence has motivated several studies on socio-demographics and comorbidity. Few studies focus on the association between risk attitude and adherence. The aim of the present study was to estimate associations between patients’ adherence to statin treatment and different dimensions of risk attitude, and to identify subgroups of patients with poor adherence. Population-based questionnaire and register-based study on a sample of 6393 persons of the general. Danish population aged 20–79. Data on risk attitude were based on 4 items uncovering health-related as well as financial dimensions of risk attitude. They were collected through a web-based questionnaire and combined with register data on redeemed statin prescriptions, sociodemographics and comorbidity. Adherence was estimated by proportion of days covered using a cut-off point at 80 %. For the dimension of health-related risk attitude, “Preference for GP visit when having symptoms”, risk-neutral and risk-seeking patients had poorer adherence than the risk-averse patients, OR 0.80 (95 %-CI 0.68–0.95) and OR 0.83 (95 %-CI 0.71–0.98), respectively. No significant association was found between adherence and financial risk attitude. Further, patients in the youngest age group and patients with no CVD were less adherent to statin treatment. We find some indication that risk attitude is associated with adherence to statin treatment, and that risk-neutral and risk-seeking patients may have poorer adherence than risk-averse patients. This is important for clinicians to consider when discussing optimal treatment decisions with their patients. The identified subgroups with the poorest adherence may deserve special attention from their GP regarding statin treatment.
15 citations
Cites methods from "Intermediate microeconomics : A mod..."
...Statistical methods For each of the 4 risk attitude items, responses were categorised into 3 groups: “Risk-seeking”, “risk-averse” and “risk-neutral” (Table 1) according to the terminology used in standard economic theory [33]....
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TL;DR: In this article, the authors examined the effects of dividend taxation on the primary parties involved in a short sale: the lender of the stock and the short seller, and found that the negative effects of taxation on shorting, market quality declines along several dimensions: equity mispricing, increased loan search frictions, loan price inefficiencies and market microstructure breakdown.
Abstract: This study examines the effects of dividend taxation on the primary parties involved in a short sale: the lender of the stock and the short seller. For stock lenders, dividend taxation is associated with a decrease in the supply of shortable shares and an increase in equity lending fees around the dividend record date. For short sellers, potential reimbursement costs are associated with a significant decrease in short volume before the ex-dividend date followed by a significant increase after the ex-date. Prior research shows that short selling improves price efficiency and formation. Hence, because of the negative effects of taxation on shorting, market quality declines along several dimensions: equity mispricing, increased loan search frictions, loan price inefficiencies, and market microstructure breakdown. In sum, this study documents that taxation constricts the shorting market around the dividend dates, which in turn has negative implications for market quality. JEL Classifications: G11, G...
15 citations
TL;DR: In this paper, the authors analyse the effect of exchange rate changes on Swiss exports of agricultural and food products, using both time series and dynamic panel data models based on data from 1999 to 2012, and find that in the long run, a one per cent appreciation of the Swiss franc leads on average to a decrease in exports.
Abstract: The Swiss franc appreciated strongly against the currencies of Switzerland's most important trading partners after the global financial crisis in 2008. This has raised the question of how sensitive Swiss exports are with respect to exchange rate movements. We analyse this question for exports of the Swiss agriculture and food sector, using both time series and dynamic panel data models based on data from 1999 to 2012. We find that in the long run a one per cent appreciation of the Swiss franc leads on average to a decrease in exports of agricultural and food products between 0.8 and 0.9 per cent. Our results suggest that on average, producers in the Swiss agriculture and food sector are able to successfully avoid price competition by differentiating their products, producing high†quality products for niche markets.
15 citations
Cites background from "Intermediate microeconomics : A mod..."
...Since the elasticity of demand depends to a large extent on how many close substitutes there are, this suggests that Swiss agro-food products are not easily substituted (Varian, 2010)....
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