Showing papers on "Fixed price published in 1984"

Decentralized management in a teaching hospital.

Abstract: For more than a decade American hospitals have been asked to contain costs. The most recent program is the Medicare prospective payment system, which reimburses hospitals a fixed price per case bas...

HMOs (For-Profit and Not-for-Profit) on the Move

Abstract: The drive to transform the traditional method of delivering medical care through the creation of alternative modes, which usually feature some limitation on a patient's choice of physicians in return for comprehensive medical benefits provided at a fixed price, has moved forward at an accelerating pace over the past decade. Fueled by a strong federal commitment to this concept, growing support by private employers and labor unions, and the rising cost of conventional care, enrollment in such plans tripled during the decade, but the base was small — 3 million. Now, for a variety of reasons, the thrust to promote . . .

Currency Risk and Relative Price Risk

Abstract: This paper demonstrates the strong linkages that exist between currency risk, represented by inflation risk and exchange rate changes, and relative price risk. These linkages affect the optional quantities of forward exchange contracts, nominal debt, and fixed price sales (purchase) contracts to use in hedging against these risks. It is shown that the existence of as many hedging mechanisms as there are forms of price risk allows for the precise targeting of specific price risks with specific hedging instruments. Moreover, even though each hedging mechanism specializes in protecting against a particular form of price risk, the optimal quantitiy of each influences and is influenced by the optimal quantities of the others.

On the specification of multi - market

Abstract: The specifications of multi-market disequilibrium econometric models are clouded with different concepts of effective demand. This paper points out that the specification of such models for econometric analysis can be achieved from the basic concept of fixed price equilibrium and without the use of the concepts of effective demand. The specifications of Ito and Gourieroux, Laffont and Monfort are justified within this framework.

Cost-Plus-Percentage-of-Costs in Government Contracts

Abstract: : Cost-percentage-of-cost (CPPC) is a method of contracting or a type of contract under which the contractor is not only reimbursed his performance costs but is also paid a stated percentage of his cost. World War I wrought havoc on traditional Government procurement practices. The tremendous demand for war production, along with volatile labor and material prices, dictated a relaxing of the customary fixed price system of acquisition. Competitive bidding and fixed price contracts proved untenable because, not only did many contractors refuse to bid for war production contracts on a lump sum basis, those that did often factored in exorbitant contingencies. CPPC appeared to be the answer to Government prayer, since it seemed to solve the problem of reluctant or unventuresome contractors. Perhaps it was also apropos for that unsettled era, but in any event, CPPC soon became a virtual cornerstone of Government acquisition!

Quantity Rationing of Economic Transactions in a Risky Environment

Abstract: In the past decades the set of economists has been divided in two disjunct subsets: the “micros” and the “macros” (Leijonhufvud, 1979). The first productive attempts to overcome this dichotomy in economic theory are due to Clower (1965), Leijonhufvud (1968), Patinkin (1965) and Barro/ Grossmann (1971). “Microfoundation of macroeconomics” or “new macroeconomics” or “new microeconomics” are well-known slogans associated with this new way of economic thinking, which has become most popular by Edmond Malinvaud’s famous reformulation of Keynesian unemployment theory (Malinvaud, 1978). Intention of this paper is to follow these lines and to show the very close connections between the theory of individual behaviour under uncertainty and the theory of a general equilibrium with rationing. To start with, rationing of economic transaction on markets for labour and goods in a fixed price situation is described, yielding “temporary equilibria” in the sense, that self-reproducing quantity signals occur. In a second section the predominant role of expectations of agents concerning future prices and rationing situations is emphasized. Some examples will show that expectations tend to be self-fulfilling. Then the question is to be answered why fixed prices may occur for a given period of time providing non-Walrasian adjustment processes and equilibria. One possible answer is given by analyzing monopolistic price and output decisions under uncertainty. This analysis, furthermore, gives some hints for the actual discussion on the type of unemployment in the economics of the Western hemisphere. Finally, the credit market will be introduced and it will be shown that uncertainty may induce rationing of credit demand, as well.