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Cover and Table of Contents |
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"The Effect of Insurance Coverage
Changes and Poverty Status
on Health Care Expenditures"
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Stephan F. Gohmann and Myra J. McCrickard
This paper uses the Medical Expenditure
Panel Survey to examine the effect of changes
in insurance coverage and poverty status on
health services consumption and expenditures.
The analysis focuses on health care expenditures
in periods when individuals transition into or
away from insurance coverage. If significant
differences in expenditures between insured and
transitionally insured individuals exist, this may
lead to less desirable health outcomes and higher
health care costs.
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"Measuring the Present Value
of Growth Opportunities"
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Richard A. Wall
The concept of the present value of growth
opportunities (PVGO) is generally accepted in
valuation literature, but does not yet seem to
have gained much popularity among investment
professionals. This paper focuses on the
development of a model form that lends itself
more directly to practical measurement of PVGO
than prior academic models using simplifying
assumptions. It is demonstrated that a significant
bias in PVGO measurement occurs if analysts
are not careful in the application of real versus
nominal cost of equity. After identifying additional
measurement issues, primarily alternative earnings
constructs, betas, and equity risk premiums,
median PVGO is estimated for all industry sectors
using stocks in the Russell 3000 index in the USA
With proper measurement, PVGO can be a useful
relative valuation tool in investment decision
making, and in academic research that seeks to
evaluate the fundamentals that underlie it.
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"The Impacts of the Financial
Services Modernization Act
of 1999 on Small Banks"
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Wenbin Tang, Bingguang Li and Vanthuan Nguyen
We examine the impact of the Financial
Services Modernization Act (FSMA) of 1999 on
small banks. The small banks are less likely to
benefit from this deregulation due to their small
size which limits their capacity to expand the
product services into investment and insurance
industries. The results indicate that the market
reacts negatively to the FMSA for small banks.
The losses are negatively related to bank size. We
suggest that this result is attributable to the decline
in the competitiveness of small banks and the
relative increase in risk of such banks.
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"The Impact of Tax Reform Legislation on the Elasticity
of the Federal Income Tax" |
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Steven D. Grossman, A. Craig Keller, Dennis R. Lassila and Casper E. Wiggins
We examine the impact of tax reforms from
1984 to 1995 using tax elasticity as a measure.
Using a proven method developed and applied by
Tanzi (1969 and 1976) and Tanzi and Hart (1972)
for measuring tax elasticity and controlling for
income distribution (Ram 1991) we provide a
timeline of tax elasticities (rate, base and overall)
for the period, test for significant changes and
discuss the relationship of elasticity changes to
tax law changes in the period. We find that the
TRA of 1986 brought about significant changes
in both tax base and tax rate elasticities but were
mostly neutral overall. The results are offered as
a contribution to the ongoing debate over recent
tax changes enacted and proposed by the federal
government.
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"Guns, Crime and Complexity: A Public Policy Analysis
of Gun Control and Crime"
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Suleyman Celik, Sitki Corbacioglu and Erdal Grumus
This study probes if the 1982 Chicago Gun
Ordinance made any significant impact on violent
crimes such as homicide and aggravated assault
committed with firearms. The study uses Auto
Regressive Moving Average time-series analysis,
along with a control group time-series analysis
for the U.S. national level data.
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