The Experts below are selected from a list of 18993 Experts worldwide ranked by ideXlab platform
Chuhyuh Yang - One of the best experts on this subject based on the ideXlab platform.
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moral hazard and Economies of Scope in physician ownership of complementary medical services
Research Papers in Economics, 2013Co-Authors: Brian K Chen, Paul Gertler, Chuhyuh YangAbstract:When physicians own complementary medical service facilities such as clinical laboratories and imaging centers, they gain financially by referring patients to these service entities. This situation creates an incentive for the physician to exploit the consumers' trust by recommending more services than they would demand under full information. This moral hazard cost, however, may be offset by gains in Economies of Scope if the complementary services are integrated into the physician's practice. We assess the extent of moral hazard and Economies of Scope using data from Taiwan, which introduced a "separating" policy, similar to the Stark Law in the US, that restricts physician ownership of pharmacies unless they are fully integrated into the physician's practice. We find that physicians who own pharmacies prescribe 7.6% more drugs than those who do not own pharmacies. Overall, we find no evidence of Economies of Scope from integration in the treatment of patients with acute respiratory infections, diabetes, or hypertension. Overall the separating policy was ineffective at controlling drug costs as a large number of physicians choose to integrate pharmacies into their practices in order to become exempt from the policy.
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moral hazard and Economies of Scope in physician ownership of complementary medical services
Social Science Research Network, 2013Co-Authors: Brian K Chen, Paul Gertler, Chuhyuh YangAbstract:When physicians own complementary medical service facilities such as clinical laboratories and imaging centers, they gain financially by referring patients to these service entities. This situation creates an incentive for the physician to exploit the consumers' trust by recommending more services than they would demand under full information. This moral hazard cost, however, may be offset by gains in Economies of Scope if the complementary services are integrated into the physician's practice. We assess the extent of moral hazard and Economies of Scope using data from Taiwan, which introduced a "separating" policy, similar to the Stark Law in the US, that restricts physician ownership of pharmacies unless they are fully integrated into the physician's practice. We find that physicians who own pharmacies prescribe 7.6% more drugs than those who do not own pharmacies. Overall, we find no evidence of Economies of Scope from integration in the treatment of patients with acute respiratory infections, diabetes, or hypertension. Overall the separating policy was ineffective at controlling drug costs as a large number of physicians choose to integrate pharmacies into their practices in order to become exempt from the policy.Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.
Valentina Hartarska - One of the best experts on this subject based on the ideXlab platform.
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Should all microfinance institutions mobilize microsavings? Evidence from Economies of Scope
Empirical Economics, 2015Co-Authors: Michael S. Delgado, Christopher F. Parmeter, Valentina Hartarska, Roy MerslandAbstract:We extend a recently developed generalized local polynomial estimator into a semiparametric smooth coefficient framework to estimate a generalized cost function. The advantage of the generalized local polynomial approach is that we can simultaneously choose the degree of polynomial for each continuous nonparametric regressor and the bandwidths via data-driven methods. We provide estimates of Scope Economies from the joint production of microloans and microdeposits for a dataset of Microfinance Institutions from over 50 countries. Our approach allows analysis on all Microfinance Institutions rather than only those offering just microloans. Moreover, the smooth coefficient estimator provides a general interface in which to account for both direct and indirect environmental factors. We find substantial Scope Economies in general, of about 10 % at the median, as well as evidence that Economies of Scope vary across the type of services and country in which the MFIs operate, suggesting key insights into policy prescriptions.
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should all microfinance institutions mobilize microsavings evidence from Economies of Scope
Social Science Research Network, 2015Co-Authors: Michael S. Delgado, Christopher F. Parmeter, Valentina Hartarska, Roy MerslandAbstract:We extend a recently developed generalized local polynomial estimator into a semiparametric smooth coefficient framework to estimate a generalized cost function. The advantage of the generalized local polynomial approach is that we can simultaneously choose the degree of polynomial for each continuous non-parametric regressor and the bandwidths via data-driven methods.We provide estimates of Scope Economies from the joint production of microloans and micro deposits for a dataset of Microfinance Institutions from over 50 countries. Our approach allows analysis on all Microfinance Institutions rather than only those offering just microloans. Moreover, the smooth coefficient estimator provides a general interface in which to account for both direct and indirect environmental factors. We find substantial Scope Economies in general, of about 10 percent at the median, as well as evidence that Economies of Scope vary across the type of services and country in which the MFIs operate, suggesting key insights for policy prescriptions.
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Economies of Scope of lending and mobilizing deposits in microfinance institutions a semiparametric analysis
American Journal of Agricultural Economics, 2011Co-Authors: Valentina Hartarska, Christopher F. Parmeter, Denis A. NadolnyakAbstract:Microfinance emerged as an innovation in lending to the rural poor in Asia and in response to frequent failure of previous interventions in rural financial markets such as directed and subsidized production credit disbursed by agricultural development banks. While it started “as a collection of banking practices built around providing small loans (typically without collateral) and accepting tiny savings deposits” Armendariz de Aghion and Morduch (2005, p. 1), today many microfinance institutions (MFIs) expand their services and strive to offer payment and savings facilities, insurance, housing, and longer-term loans to marginalized clientele in rural and urban settings. Estimates show that there are at least 10,000 microfinance programs worldwide. Two related and important trends are now emerging. The first is toward commercialization which essentially is transforming NGO-MFIs into regulated intermediaries with the intent to lower costs by accessing deposits as well as strengthen the organizations by privatization. The second trend is a renewed interest in experimentation to mobilize savings with emphasis on rural savings. Economies of Scope imply that expansion into the savings market can be more cost efficient if done by the same MFIs, which makes it a significant factor in assessing the feasibility of these innovations. However, there are few studies that estimate the magnitude and sign of Scope Economies. In this paper, we present some preliminary evidence on Scope Economies using a large sample of MFIs.
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Economies of Scope of Lending and Mobilizing Deposits in Microfinance Institutions: A Semiparametric Analysis
American Journal of Agricultural Economics, 2010Co-Authors: Valentina Hartarska, Christopher F. Parmeter, Denis A. NadolnyakAbstract:At present, many microfinance institutions (MFIs) not only lend but also collect savings to serve better the needs of the poor. Little is known, however, if MFIs’ overall costs decrease or increase as a consequence, nor it is clear which MFIs may benefit the most from expansion into savings mobilization. We fill in this gap by estimating Scope Economies using over 2,700 annual observations from MFIs operating across the globe. We make several contributions with this paper. First, we use a Semi-parametric Smooth Coefficient (SPSC) model which affords sufficient flexibility to incorporate zero-valued outputs and, therefore, include lending-only MFIs in analysis. Second, we estimate a generalized cost function which incorporates environmental variables to account for cost structure differences due to macroeconomic and MFI-specific factors. Third, we decompose the overall Scope Economies into fixed and complementary cost components. Finally, we employed robust cross-validation methods to deal with extreme observations, which should prove useful in future nonparametric work outside of the application here. Our findings indicate that policies designed to improve MFIs’ performance to expand their services should be based on regional and organizational factors and characteristics of the environment in which MFIs operate. The analysis suggests that Economies of Scope are driven mostly by fixed cost sharing, while we do not find cost complementarities in most regions and MFI types.
Paul Gertler - One of the best experts on this subject based on the ideXlab platform.
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moral hazard and Economies of Scope in physician ownership of complementary medical services
Research Papers in Economics, 2013Co-Authors: Brian K Chen, Paul Gertler, Chuhyuh YangAbstract:When physicians own complementary medical service facilities such as clinical laboratories and imaging centers, they gain financially by referring patients to these service entities. This situation creates an incentive for the physician to exploit the consumers' trust by recommending more services than they would demand under full information. This moral hazard cost, however, may be offset by gains in Economies of Scope if the complementary services are integrated into the physician's practice. We assess the extent of moral hazard and Economies of Scope using data from Taiwan, which introduced a "separating" policy, similar to the Stark Law in the US, that restricts physician ownership of pharmacies unless they are fully integrated into the physician's practice. We find that physicians who own pharmacies prescribe 7.6% more drugs than those who do not own pharmacies. Overall, we find no evidence of Economies of Scope from integration in the treatment of patients with acute respiratory infections, diabetes, or hypertension. Overall the separating policy was ineffective at controlling drug costs as a large number of physicians choose to integrate pharmacies into their practices in order to become exempt from the policy.
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moral hazard and Economies of Scope in physician ownership of complementary medical services
Social Science Research Network, 2013Co-Authors: Brian K Chen, Paul Gertler, Chuhyuh YangAbstract:When physicians own complementary medical service facilities such as clinical laboratories and imaging centers, they gain financially by referring patients to these service entities. This situation creates an incentive for the physician to exploit the consumers' trust by recommending more services than they would demand under full information. This moral hazard cost, however, may be offset by gains in Economies of Scope if the complementary services are integrated into the physician's practice. We assess the extent of moral hazard and Economies of Scope using data from Taiwan, which introduced a "separating" policy, similar to the Stark Law in the US, that restricts physician ownership of pharmacies unless they are fully integrated into the physician's practice. We find that physicians who own pharmacies prescribe 7.6% more drugs than those who do not own pharmacies. Overall, we find no evidence of Economies of Scope from integration in the treatment of patients with acute respiratory infections, diabetes, or hypertension. Overall the separating policy was ineffective at controlling drug costs as a large number of physicians choose to integrate pharmacies into their practices in order to become exempt from the policy.Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.
Arkadiy V Sakhartov - One of the best experts on this subject based on the ideXlab platform.
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corporate diversification Economies of Scope and the risk return relationship
Academy of Management Proceedings, 2021Co-Authors: Arkadiy V SakhartovAbstract:Corporate diversification was believed to enhance returns and reduce risk. Empirical research was split between supporting and rejecting speculations about the resulting favorable combination of hi...
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Economies of Scope and optimal due diligence in corporate acquisitions
Organization Science, 2019Co-Authors: Jeffrey J Reuer, Arkadiy V SakhartovAbstract:This study develops a theory of due diligence in corporate acquisitions. Using a formal model, the study situates due diligence in the context of Economies of Scope, which are often sought by acqui...
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Economies of Scope resource relatedness and the dynamics of corporate diversification
Strategic Management Journal, 2017Co-Authors: Arkadiy V SakhartovAbstract:Research summary: The dominant view has been that businesses that are more related to each other are more often combined within diversified firms. This study uses a dynamic model to demonstrate that, with inter-temporal Economies of Scope, diversified firms are more likely to combine moderately related businesses than the most-related businesses. That effect occurs because strong relatedness reduces redeployment costs and makes firms redeploy all resources to better performing businesses. The strength of that effect depends on inducements for redeployment measured as the current return advantage of one business over another business, volatilities of business returns, and correlation of those returns. This study develops hypotheses for those relationships and suggests empirical operationalizations, encouraging empiricists to retest the implications of relatedness for the dynamics of corporate diversification. Managerial summary: It is believed that diversified firms are more likely to combine more-related businesses because relatedness enables sharing of resources between businesses. Indeed, a firm can apply knowledge created in one business to another business, avoiding costly duplication in knowledge development. Resource sharing also adds value when a firm offers several products, adding the convenience of one-stop shopping and charging higher prices. However, resource sharing is not the only motivation for corporate diversification. In environments where profitability of businesses changes frequently, firms diversify by redeploying part of resources from an underperforming business to a better performing business. This study uses a dynamic model to demonstrate that, with that second motivation for corporate diversification, firms end up combining moderately related businesses rather than the most-related businesses. Copyright © 2017 John Wiley & Sons, Ltd.
Roy Mersland - One of the best experts on this subject based on the ideXlab platform.
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Should all microfinance institutions mobilize microsavings? Evidence from Economies of Scope
Empirical Economics, 2015Co-Authors: Michael S. Delgado, Christopher F. Parmeter, Valentina Hartarska, Roy MerslandAbstract:We extend a recently developed generalized local polynomial estimator into a semiparametric smooth coefficient framework to estimate a generalized cost function. The advantage of the generalized local polynomial approach is that we can simultaneously choose the degree of polynomial for each continuous nonparametric regressor and the bandwidths via data-driven methods. We provide estimates of Scope Economies from the joint production of microloans and microdeposits for a dataset of Microfinance Institutions from over 50 countries. Our approach allows analysis on all Microfinance Institutions rather than only those offering just microloans. Moreover, the smooth coefficient estimator provides a general interface in which to account for both direct and indirect environmental factors. We find substantial Scope Economies in general, of about 10 % at the median, as well as evidence that Economies of Scope vary across the type of services and country in which the MFIs operate, suggesting key insights into policy prescriptions.
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should all microfinance institutions mobilize microsavings evidence from Economies of Scope
Social Science Research Network, 2015Co-Authors: Michael S. Delgado, Christopher F. Parmeter, Valentina Hartarska, Roy MerslandAbstract:We extend a recently developed generalized local polynomial estimator into a semiparametric smooth coefficient framework to estimate a generalized cost function. The advantage of the generalized local polynomial approach is that we can simultaneously choose the degree of polynomial for each continuous non-parametric regressor and the bandwidths via data-driven methods.We provide estimates of Scope Economies from the joint production of microloans and micro deposits for a dataset of Microfinance Institutions from over 50 countries. Our approach allows analysis on all Microfinance Institutions rather than only those offering just microloans. Moreover, the smooth coefficient estimator provides a general interface in which to account for both direct and indirect environmental factors. We find substantial Scope Economies in general, of about 10 percent at the median, as well as evidence that Economies of Scope vary across the type of services and country in which the MFIs operate, suggesting key insights for policy prescriptions.
