This document provides definitions for economic and health economics terms starting with letters A through H. It defines terms such as ability-to-pay, actuarially fair premium, adverse selection, allocative efficiency, beneficiaries, capitation, circular flow, community rating, consumer price index, contingent valuation, cost-benefit analysis, and cost-effectiveness analysis among others. Each definition is 1-2 sentences and provides a concise explanation of the term.
This document introduces the key terms that students must learn for an A-Level English Language course. It stresses the importance of learning all 200 terms as early as possible and practicing applying them to texts. The bulk of the document defines various parts of speech and language concepts like nouns, verbs, pronouns, and sentence structures.
Generic valuation framework for insurance liabilities - November 2018 editionNick Kinrade
This document presents a generic framework for determining the market value of insurance liabilities. The framework consists of three components: 1) the best estimate liability, which is the risk-free discounted value of expected liability cash flows, 2) a deferred tax liability for tax on temporary differences between tax and market values, and 3) a risk margin with two parts - a capital margin reflecting the cost of funding capital requirements, and a liability margin reflecting costs from financial risks in liability cash flows. The framework generalizes the standard cost-of-capital approach by allowing for debt funding and tax considerations, and provides consistency across different valuation standards.
Generic valuation framework for insurance liabilities - August 2017 editionNick Kinrade
This document proposes a generic framework for determining the market value of insurance liabilities that consists of three components: 1) the best estimate liability, which is the risk-free discounted value of expected liability cash flows, 2) a deferred tax liability for tax on temporary differences between the value of liabilities for tax purposes versus market value, and 3) a risk margin with two parts - a capital margin reflecting the cost of funding capital requirements, and a liability margin reflecting financial market risk and liquidity costs in liability cash flows. The framework allows for debt financing of capital requirements and considers tax and liability funding costs. It is consistent with several valuation standards and provides a basis for interpreting their cost-of-capital parameters.
The importance of Insurance and Actuarial Science education in our current st...Firoz Alam
This document discusses the importance of insurance and actuarial science education in Bangladesh's current economic state. It provides background on what insurance and actuarial science are, and how actuarial science is applied in different areas like life insurance, health insurance, pensions, and property/casualty insurance. It then discusses the insurance industry specifically in Bangladesh, noting that while risk is high, insurance awareness and the market are still low compared to other Asian countries due to factors like low incomes and risk awareness. There are currently 77 insurance companies operating in Bangladesh.
The Cost of Capital, Corporation Finance and The Theory of InvestmentRaju Basnet Chhetri
This article develops a theory of capital structure and its implications. It proposes three main propositions:
1) The market value of a firm is independent of its capital structure and depends only on expected returns.
2) The expected yield of common stock increases linearly with leverage.
3) The cutoff point for a firm's investments, known as the cost of capital, depends only on expected returns and is unaffected by capital structure.
The authors provide preliminary empirical evidence from utilities and oil companies that supports the first two propositions. They also discuss how the propositions can inform corporate financial planning and investment decisions. The theory contributes a new framework for understanding how capital structure relates to firm valuation and investment.
Scaling-up Microfinance Products for Weather Risk Management: Three Proposals...BASIS AMA Innovation Lab
A presentation on Microfinance by Michael Carter, Professor in the Department of Agricultural & Resource Economics at University of California, Davis and the Director of the Feed the Future BASIS Assets & Market Access Research Program & I4 Index Insurance Innovation Initiative.
(From the AFD-FERDI Workshop, Paris on June 24, 2014)
Reply to DiscussionsD1 navyaA bank failure is the ending of.docxchris293
Reply to Discussions
D1: navya
A bank failure is the ending of an insolvent bank by a state or federal regulator. So the only power that closes the national banks is the comptroller who has a higher power in maintaining the currency. It mainly happens when a bank fails where it is assumed by the federal deposit insurance corporation in the insures of deposits. They find a different bank to take it over because various customers will specifically like the continuation using their debit cards, online banking tools, and accounts. So bank failures are mainly often to predict because the federal deposit insurance commission will not announce a particular bank to set go under the profits. Then bank diversification is the procedure that allocates the capital in a specific way because it reduces the exposure to a particular asset or risk. Therefore, the main reason for this bank diversification is to decrease the volatility or risk by investing in various assets (Goetz, 2012).
So considering both of those banking systems can easily relate to the country's economic health by determining the better quality of the loan book of different individual books. Then for maintaining the better quality of advance bank portfolio, there is only one crucial tool where it is credit monitoring. Credit monitoring plays a vital role in protecting the bank's exposures, but it also ensures the various funds that are channeled by maintaining the right purpose. It mainly acts as the guardrail for ensuring the health of banks and countries economically to stay in the right trajectory. Then various technology solutions will be readily available in the market for helping the automated process of credit monitoring to a large extent. They can ensure the functions of credit monitoring to keep the process and objective in the method oriented (Brownbridge, 2002).
References
Brownbridge, M. (2002). Resolving Bank Failures in Uganda: Policy Lessons from Recent Bank Failures. Development Policy Review, 20(3), 279-291. doi: 10.1111/1467-7679.00171
Goetz, M. (2012). Bank Diversification, Market Structure and Bank Risk Taking: Theory and Evidence from U.S. Commercial Banks. SSRN Electronic Journal. doi: 10.2139/ssrn.2651161
Reply:
D2: pavani
Diversification helps individual institutions and makes them be benefited. But Wagner says that the systematic risk increases by the degree of diversification. Raffestin also said something about the diversification that diversification can cause risks and any number of failures also. By the above words, we can know the negative aspects or negative effects of diversification. Systematic risks are very broad and complex term. This diversification process has some of the diversification measures. The indicator of diversification is calculated from the bank’s profitability. There are various methods of diversification. Commonly Alas et al proposed method is used (Mirzaei & Kutan, 2016).
And also the weight average diversification of banks ( AWDI.
The World Economic Forum convened representatives from various sectors to discuss strategies for reducing risks from natural disasters through collaboration. Discussion groups proposed ideas for improving infrastructure, insurance, investing in resilience, and more. Key recommendations included establishing infrastructure risk assessment standards; using catastrophe bonds to spread infrastructure risks; requiring redundancy for critical systems; and incentives for retrofitting vulnerable infrastructure. Financial institutions could also help by making catastrophe insurance mandatory for loans and tying terms/premiums to mitigation measures.
This document introduces the key terms that students must learn for an A-Level English Language course. It stresses the importance of learning all 200 terms as early as possible and practicing applying them to texts. The bulk of the document defines various parts of speech and language concepts like nouns, verbs, pronouns, and sentence structures.
Generic valuation framework for insurance liabilities - November 2018 editionNick Kinrade
This document presents a generic framework for determining the market value of insurance liabilities. The framework consists of three components: 1) the best estimate liability, which is the risk-free discounted value of expected liability cash flows, 2) a deferred tax liability for tax on temporary differences between tax and market values, and 3) a risk margin with two parts - a capital margin reflecting the cost of funding capital requirements, and a liability margin reflecting costs from financial risks in liability cash flows. The framework generalizes the standard cost-of-capital approach by allowing for debt funding and tax considerations, and provides consistency across different valuation standards.
Generic valuation framework for insurance liabilities - August 2017 editionNick Kinrade
This document proposes a generic framework for determining the market value of insurance liabilities that consists of three components: 1) the best estimate liability, which is the risk-free discounted value of expected liability cash flows, 2) a deferred tax liability for tax on temporary differences between the value of liabilities for tax purposes versus market value, and 3) a risk margin with two parts - a capital margin reflecting the cost of funding capital requirements, and a liability margin reflecting financial market risk and liquidity costs in liability cash flows. The framework allows for debt financing of capital requirements and considers tax and liability funding costs. It is consistent with several valuation standards and provides a basis for interpreting their cost-of-capital parameters.
The importance of Insurance and Actuarial Science education in our current st...Firoz Alam
This document discusses the importance of insurance and actuarial science education in Bangladesh's current economic state. It provides background on what insurance and actuarial science are, and how actuarial science is applied in different areas like life insurance, health insurance, pensions, and property/casualty insurance. It then discusses the insurance industry specifically in Bangladesh, noting that while risk is high, insurance awareness and the market are still low compared to other Asian countries due to factors like low incomes and risk awareness. There are currently 77 insurance companies operating in Bangladesh.
The Cost of Capital, Corporation Finance and The Theory of InvestmentRaju Basnet Chhetri
This article develops a theory of capital structure and its implications. It proposes three main propositions:
1) The market value of a firm is independent of its capital structure and depends only on expected returns.
2) The expected yield of common stock increases linearly with leverage.
3) The cutoff point for a firm's investments, known as the cost of capital, depends only on expected returns and is unaffected by capital structure.
The authors provide preliminary empirical evidence from utilities and oil companies that supports the first two propositions. They also discuss how the propositions can inform corporate financial planning and investment decisions. The theory contributes a new framework for understanding how capital structure relates to firm valuation and investment.
Scaling-up Microfinance Products for Weather Risk Management: Three Proposals...BASIS AMA Innovation Lab
A presentation on Microfinance by Michael Carter, Professor in the Department of Agricultural & Resource Economics at University of California, Davis and the Director of the Feed the Future BASIS Assets & Market Access Research Program & I4 Index Insurance Innovation Initiative.
(From the AFD-FERDI Workshop, Paris on June 24, 2014)
Reply to DiscussionsD1 navyaA bank failure is the ending of.docxchris293
Reply to Discussions
D1: navya
A bank failure is the ending of an insolvent bank by a state or federal regulator. So the only power that closes the national banks is the comptroller who has a higher power in maintaining the currency. It mainly happens when a bank fails where it is assumed by the federal deposit insurance corporation in the insures of deposits. They find a different bank to take it over because various customers will specifically like the continuation using their debit cards, online banking tools, and accounts. So bank failures are mainly often to predict because the federal deposit insurance commission will not announce a particular bank to set go under the profits. Then bank diversification is the procedure that allocates the capital in a specific way because it reduces the exposure to a particular asset or risk. Therefore, the main reason for this bank diversification is to decrease the volatility or risk by investing in various assets (Goetz, 2012).
So considering both of those banking systems can easily relate to the country's economic health by determining the better quality of the loan book of different individual books. Then for maintaining the better quality of advance bank portfolio, there is only one crucial tool where it is credit monitoring. Credit monitoring plays a vital role in protecting the bank's exposures, but it also ensures the various funds that are channeled by maintaining the right purpose. It mainly acts as the guardrail for ensuring the health of banks and countries economically to stay in the right trajectory. Then various technology solutions will be readily available in the market for helping the automated process of credit monitoring to a large extent. They can ensure the functions of credit monitoring to keep the process and objective in the method oriented (Brownbridge, 2002).
References
Brownbridge, M. (2002). Resolving Bank Failures in Uganda: Policy Lessons from Recent Bank Failures. Development Policy Review, 20(3), 279-291. doi: 10.1111/1467-7679.00171
Goetz, M. (2012). Bank Diversification, Market Structure and Bank Risk Taking: Theory and Evidence from U.S. Commercial Banks. SSRN Electronic Journal. doi: 10.2139/ssrn.2651161
Reply:
D2: pavani
Diversification helps individual institutions and makes them be benefited. But Wagner says that the systematic risk increases by the degree of diversification. Raffestin also said something about the diversification that diversification can cause risks and any number of failures also. By the above words, we can know the negative aspects or negative effects of diversification. Systematic risks are very broad and complex term. This diversification process has some of the diversification measures. The indicator of diversification is calculated from the bank’s profitability. There are various methods of diversification. Commonly Alas et al proposed method is used (Mirzaei & Kutan, 2016).
And also the weight average diversification of banks ( AWDI.
The World Economic Forum convened representatives from various sectors to discuss strategies for reducing risks from natural disasters through collaboration. Discussion groups proposed ideas for improving infrastructure, insurance, investing in resilience, and more. Key recommendations included establishing infrastructure risk assessment standards; using catastrophe bonds to spread infrastructure risks; requiring redundancy for critical systems; and incentives for retrofitting vulnerable infrastructure. Financial institutions could also help by making catastrophe insurance mandatory for loans and tying terms/premiums to mitigation measures.
This document provides an overview of insurance markets in Latin America and the Caribbean. It discusses how insurance facilitates economic activity by allowing individuals and businesses to manage risks. The survey presented analyzes perceptions of the insurance industry in the region to identify factors affecting its development. Key findings include that insurance penetration and availability remain low compared to other regions. The document concludes by calling for further research to inform policies to strengthen insurance markets.
This document provides an overview of a case study on SIC Life Insurance Company's Techiman Branch. It discusses key concepts like risk and insurance, and outlines the types of insurance available in Ghana, with a focus on life insurance. The document poses research questions on the measures insurance companies use to influence life insurance demand, the affordability of premiums, and the sufficiency of insurance claims. It describes the objectives, limitations, and organization of the study into 5 chapters, covering topics like literature review, methodology, data analysis and findings.
Optimal Diversification of Catastrophe Bond and Collateralized Reinsurance Po...Sean Stephens
This document provides an overview of catastrophe bonds (CAT bonds) and their role in providing insurers access to external capital markets. CAT bonds are securities whose value is based on insurable loss events. They allow large investors to assume high layers of insurance risk in exchange for returns. The document describes the structure of CAT bonds, including the use of special purpose reinsurers and different types of triggers that determine payout conditions. It aims to provide context for discussing optimal strategies for diversifying CAT bond portfolios given constraints in the market.
This document provides an overview of a case study on SIC Life Insurance Company's Techiman Branch. It discusses key concepts around risk and insurance, outlines the types of insurance available in Ghana, and defines life insurance. The document then presents the objectives, methodology, limitations, and structure of the case study, which aims to assess the efficacy of SIC Life's life insurance policies and identify how the company pays out premiums to beneficiaries. Primary data will be collected through questionnaires to staff, beneficiaries, and the public, and secondary data will come from sources like textbooks and websites. The case study will have 5 chapters covering the background, literature review, methodology, data analysis and findings, and conclusions.
This document discusses and compares the economics of liability systems from an Islamic and American perspective.
The American system allows wide discretion for courts which leads to unpredictable liability costs for producers. This unpredictability eliminates some goods and services from markets and reduces innovation. It also leads to high litigation and administrative costs.
The Islamic system focuses on material harms and lost income during recovery. Liability amounts are more predictable. While aiming to compensate injuries, it also assigns a social role in payments and benefits. This predictability reduces costs compared to the American system.
Social Science IssuesSometimes it is helpful to get an outside p.docxwhitneyleman54422
Social Science Issues
Sometimes it is helpful to get an outside perspective. In your discussion post, describe your selected social science issue and include two relevant questions that social science professionals (psychologists, sociologists, or anthropologists) might be interested in. Then look for your classmates to post their own social science issues and related questions.
Economics Terminology
Review Flashcards
Review the terms below then practice using the flashcards tab.
Adverse Selection
A situation often resulting from asymmetric information
in which individuals are able to purchase insurance at
rates that are below actuarially fair rates plus loading
costs.
Asymmetric Information
Situations in which the parties on the opposite sides of a
transaction have differing amounts of relevant
information.
Average Cost
Total cost represents the sum of all fixed costs and
variable costs in the long run. Average cost equals total
cost divided by the quantity of the output and also equals
the sum of average variable cost (AVC) and average fixed
cost (AFC). In the long run, average total represents the
minimum possible cost per unit of producing any given
level of output when there are no fixed costs.
Capitation
A method of reimbursement in managed care plans in
which a provider is paid a fixed amount per person over a
given period regardless of the amount of services
rendered.
Cardinal Utility
A quantitative measure of the value of a good in terms of
metrically measurable utility. It is used in the study of risk
and insurance.
Case Mix Index
A numerical measure of the assortment of patient cases
treated by a given hospital so that a higher value
indicates a greater average degree of complexity of the
cases.
Ceteris Paribus
Other things being held constant.
Coefficient of Variation
A measure of dispersion equal to the standard deviation
divided by the mean (and sometimes multiplied by 100).
Concentration Ratio
The share of the market sales or production accounted
for by a certain number of the largest firms. Often the
four firm ratio is used.
Consumer Driven Health Plan (CDHP)
Page 1 of 5Economics Terminology
1/11/2018http://media.capella.edu/CourseMedia/PubH5112/FlashCards/PubH5112_FlashCards_Out...
A high deductible health plan coupled with a tax-
advantaged health spending account (HSA or HRA).
Consumers are provided with information and tools to
help with health care service and financing decisions.
Cost Benefit Analysis (CBA)
A method of comparing the monetary value of all benefits
of a social project with all costs of that project.
Demand Function
The relationship between quantity demanded and price
(and other independent variables such as income and
tastes). One could study individual demand as well as
market demand.
Depreciation
The change in the value of a good over time due to
deteriorating physical characteristics or technical
obsolescence.
This document summarizes a paper on modeling the effects of collateral re-hypothecation in a financial network. It presents two models: 1) A hypothecated collateral model where firms pledge collateral to each other. Higher leverage firms can decrease network values by pushing the system closer to default. 2) A two-stage re-hypothecated collateral model where the secondary effects of re-hypothecated collateral are modeled similarly to Google's PageRank algorithm. The unwinding of re-hypothecated collateral in the event of default is modeled in the second stage, with effects feeding back into the first stage. The document outlines the models, potential inferences, and algorithms for simulating contagion in
Cat bonds & Artificial Neural Networks | An example of reinsurance products’ ...GRATeam
Over the last fifty years, numbers and costs of natural disasters have not ceased to multiply. Given this phenomenon, insurers and reinsurers struggle to cover the associated losses. Consequently, they turned to financial markets in order to obtain new hedging capabilities, by using various types of products, suchas excess of loss contracts (named XL) and cat bonds.
This paper presents a mathematic model allowing to predict the number and the cost of incoming catastrophes. Data used include wind catastrophes affecting the southeast area of the United States and whose damages are worth more than a billion dollars. This model helps to price insurance risk transfer products, such as XL contracts or cat bonds. First a regression relying on neural network methodology is implemented in order to predict the global annual cost of future catastrophes. Then, based on the same methodology, a classification is done in order to allocate these costs to the various catastrophes.
Our models are used to price several contracts included in the reinsurance program of “Heritage Insurance,” so our results help estimate the share of premiums received by the reinsurer. Two calculations methods are applied: the exposure curve and the “burning cost” method.
Ours models are also validated on cat bond products, but this time using a financial method. This method allows to estimate the share of the Expected Excess Return (EER) depending of the Probability of First Loss (PFL) and the Conditional Expected Loss (CEL).
Macrodynamics of Debt-Financed Investment-Led Growth with Interest Rate Rulespkconference
This document provides an overview of a macroeconomic model that examines debt-financed investment-led growth. Some key points:
- The model explores whether financial factors can provide stability to an otherwise unstable demand-constrained economy, and whether they can generate growth cycles.
- Investment is determined by a post-Keynesian accelerator function where the sensitivity of investment to capacity utilization depends on financial factors like the risk of default and interest rates.
- Debt dynamics are modeled, where borrowing, repayment, and the debt stock over time are determined. Financial fragility and creditworthiness indicators are also developed.
- Monetary policy follows a Taylor-type rule where the central bank adjusts interest rates in response
This document describes a project to develop a pricing tool for general liability insurance. A team of actuarial consultants was hired to create the tool for an insurance company launching a new tri-state product for small businesses. The tool calculates premiums through three main steps: 1) determining a manual premium based on limits, deductibles and expenses, 2) calculating an experience modifier based on 3 years of loss data, and 3) combining these factors to produce a final indicated premium. The tool was designed to be accurate, convenient and flexible for underwriters through functions like quick searching of class codes, reasonability testing of inputs, and easy resetting of data entries.
This research proposal aims to study customer perception towards purchasing general insurance in Ahmedabad. The study will analyze factors that influence customers' selection of general insurance companies and policies. The objectives are to build a model for determining the key factors that impact policyholders' decisions. This study will help insurance companies understand customer preferences to develop competitive insurance products tailored to customer needs.
Combined Credit And Political Risk Paperathula_alwis
This document proposes two methods for modeling combined credit and political risk in emerging markets:
1. A diffusion process that sums individual credit and political risk default rates, subtracting any overlap estimated via a copula function. This provides a conservative starting point but does not fully capture the coverage.
2. A jump diffusion process that allows for sudden increases in default rates during crisis periods. This approach more accurately reflects the coverage provided by combined credit and political risk insurance.
The paper recommends the jump diffusion method and outlines using historical data on default rates, losses, and correlations to develop a stochastic model quantifying the risk-reward profile to support underwriting this line of business.
This whitepaper discusses next generation financial risk monitoring using a framework called Datashop Alchemy. It summarizes an approach to measuring systemic risk using interconnectedness between financial institutions and their credit ratings. The framework evaluates daily systemic risk scores using this methodology and visualizes the results. It is intended to help central banks, financial institutions, and other industries monitor systemic risk in their networks to identify risks and support decision making.
The document discusses an S-curve model that relates per-capita income to insurance penetration. It finds:
1) Estimating life and non-life insurance penetration globally yields an S-curve, where income elasticity is around 1 at low and high incomes but over 1 for middle incomes.
2) Countries deviate from the global S-curve due to other demand factors beyond income. Some countries have persistently higher or lower penetration.
3) Using purchasing power parities instead of exchange rates shifts developing countries to higher incomes on the S-curve, slightly improving the regression results. Analysis of residuals identifies countries converging to the global average.
The document discusses an S-curve model that relates per-capita income to insurance penetration. It finds:
1) Estimating life and non-life insurance penetration globally yields an S-curve, where income elasticity starts and ends at 1 but exceeds 1 at intermediate income levels.
2) For life insurance, the income at maximum elasticity is $15,000, while for non-life it is $10,000.
3) Using purchasing power parities rather than market exchange rates increases estimated penetration levels and elasticities for developing countries.
This is a brief article that describes the evolution of Enterprise Risk Management as a key functional area in large organizations over the past 30 years.
The document provides an analysis of three key risks facing Caterpillar Inc: products liability, natural disasters, and labor disputes/expiring collective bargaining agreements. For each risk, the author identifies risk treatment techniques including risk financing (insurance, CAT bonds) and risk control (inspections, disaster recovery plans, funded risk retentions). Quantitative analyses like discrete loss distributions, NPV calculations, and event trees are used to evaluate the proposed risk treatments. The analyses conclude the risk treatment techniques would provide a positive financial impact for Caterpillar over the next 10 years by reducing expected losses.
This document provides an overview of risk classification in insurance. It defines risk classification as the formulation of different premiums for the same coverage based on group characteristics. Actuaries group individuals expected to have similar costs together and calculate a price for the group. Rating variables used for groups are characteristics that are related to differences in costs among groups. The classification process must consider other rating mechanisms like exposure bases, individual risk rating, marketing and underwriting. Variables are selected based on actuarial, operational, social and legal criteria like accuracy, homogeneity, credibility and having an objective definition.
Este documento presenta información sobre Grupo Bimbo, la empresa panificadora más grande del mundo. Comienza describiendo la filosofía, misión, visión y valores de la empresa. Luego resume su historia desde su fundación en 1945 hasta su expansión internacional actual. Finalmente, incluye una línea de tiempo detallando los hitos más importantes en el desarrollo de Grupo Bimbo a lo largo de los años.
Este documento presenta la introducción a una serie de conversaciones nocturnas sobre astronomía que tuvieron lugar entre varias personas notables reunidas casualmente en el castillo de Flamanville, Francia. Los participantes incluyen un astrónomo, un historiador, un diputado, un pastor, un capitán y un filósofo. Cada noche elegían un tema astronómico para discutir, con el objetivo de explorar la historia de las ideas sobre el universo desde la antigüedad hasta la época moderna. El narrador actuó como secret
This document provides an overview of insurance markets in Latin America and the Caribbean. It discusses how insurance facilitates economic activity by allowing individuals and businesses to manage risks. The survey presented analyzes perceptions of the insurance industry in the region to identify factors affecting its development. Key findings include that insurance penetration and availability remain low compared to other regions. The document concludes by calling for further research to inform policies to strengthen insurance markets.
This document provides an overview of a case study on SIC Life Insurance Company's Techiman Branch. It discusses key concepts like risk and insurance, and outlines the types of insurance available in Ghana, with a focus on life insurance. The document poses research questions on the measures insurance companies use to influence life insurance demand, the affordability of premiums, and the sufficiency of insurance claims. It describes the objectives, limitations, and organization of the study into 5 chapters, covering topics like literature review, methodology, data analysis and findings.
Optimal Diversification of Catastrophe Bond and Collateralized Reinsurance Po...Sean Stephens
This document provides an overview of catastrophe bonds (CAT bonds) and their role in providing insurers access to external capital markets. CAT bonds are securities whose value is based on insurable loss events. They allow large investors to assume high layers of insurance risk in exchange for returns. The document describes the structure of CAT bonds, including the use of special purpose reinsurers and different types of triggers that determine payout conditions. It aims to provide context for discussing optimal strategies for diversifying CAT bond portfolios given constraints in the market.
This document provides an overview of a case study on SIC Life Insurance Company's Techiman Branch. It discusses key concepts around risk and insurance, outlines the types of insurance available in Ghana, and defines life insurance. The document then presents the objectives, methodology, limitations, and structure of the case study, which aims to assess the efficacy of SIC Life's life insurance policies and identify how the company pays out premiums to beneficiaries. Primary data will be collected through questionnaires to staff, beneficiaries, and the public, and secondary data will come from sources like textbooks and websites. The case study will have 5 chapters covering the background, literature review, methodology, data analysis and findings, and conclusions.
This document discusses and compares the economics of liability systems from an Islamic and American perspective.
The American system allows wide discretion for courts which leads to unpredictable liability costs for producers. This unpredictability eliminates some goods and services from markets and reduces innovation. It also leads to high litigation and administrative costs.
The Islamic system focuses on material harms and lost income during recovery. Liability amounts are more predictable. While aiming to compensate injuries, it also assigns a social role in payments and benefits. This predictability reduces costs compared to the American system.
Social Science IssuesSometimes it is helpful to get an outside p.docxwhitneyleman54422
Social Science Issues
Sometimes it is helpful to get an outside perspective. In your discussion post, describe your selected social science issue and include two relevant questions that social science professionals (psychologists, sociologists, or anthropologists) might be interested in. Then look for your classmates to post their own social science issues and related questions.
Economics Terminology
Review Flashcards
Review the terms below then practice using the flashcards tab.
Adverse Selection
A situation often resulting from asymmetric information
in which individuals are able to purchase insurance at
rates that are below actuarially fair rates plus loading
costs.
Asymmetric Information
Situations in which the parties on the opposite sides of a
transaction have differing amounts of relevant
information.
Average Cost
Total cost represents the sum of all fixed costs and
variable costs in the long run. Average cost equals total
cost divided by the quantity of the output and also equals
the sum of average variable cost (AVC) and average fixed
cost (AFC). In the long run, average total represents the
minimum possible cost per unit of producing any given
level of output when there are no fixed costs.
Capitation
A method of reimbursement in managed care plans in
which a provider is paid a fixed amount per person over a
given period regardless of the amount of services
rendered.
Cardinal Utility
A quantitative measure of the value of a good in terms of
metrically measurable utility. It is used in the study of risk
and insurance.
Case Mix Index
A numerical measure of the assortment of patient cases
treated by a given hospital so that a higher value
indicates a greater average degree of complexity of the
cases.
Ceteris Paribus
Other things being held constant.
Coefficient of Variation
A measure of dispersion equal to the standard deviation
divided by the mean (and sometimes multiplied by 100).
Concentration Ratio
The share of the market sales or production accounted
for by a certain number of the largest firms. Often the
four firm ratio is used.
Consumer Driven Health Plan (CDHP)
Page 1 of 5Economics Terminology
1/11/2018http://media.capella.edu/CourseMedia/PubH5112/FlashCards/PubH5112_FlashCards_Out...
A high deductible health plan coupled with a tax-
advantaged health spending account (HSA or HRA).
Consumers are provided with information and tools to
help with health care service and financing decisions.
Cost Benefit Analysis (CBA)
A method of comparing the monetary value of all benefits
of a social project with all costs of that project.
Demand Function
The relationship between quantity demanded and price
(and other independent variables such as income and
tastes). One could study individual demand as well as
market demand.
Depreciation
The change in the value of a good over time due to
deteriorating physical characteristics or technical
obsolescence.
This document summarizes a paper on modeling the effects of collateral re-hypothecation in a financial network. It presents two models: 1) A hypothecated collateral model where firms pledge collateral to each other. Higher leverage firms can decrease network values by pushing the system closer to default. 2) A two-stage re-hypothecated collateral model where the secondary effects of re-hypothecated collateral are modeled similarly to Google's PageRank algorithm. The unwinding of re-hypothecated collateral in the event of default is modeled in the second stage, with effects feeding back into the first stage. The document outlines the models, potential inferences, and algorithms for simulating contagion in
Cat bonds & Artificial Neural Networks | An example of reinsurance products’ ...GRATeam
Over the last fifty years, numbers and costs of natural disasters have not ceased to multiply. Given this phenomenon, insurers and reinsurers struggle to cover the associated losses. Consequently, they turned to financial markets in order to obtain new hedging capabilities, by using various types of products, suchas excess of loss contracts (named XL) and cat bonds.
This paper presents a mathematic model allowing to predict the number and the cost of incoming catastrophes. Data used include wind catastrophes affecting the southeast area of the United States and whose damages are worth more than a billion dollars. This model helps to price insurance risk transfer products, such as XL contracts or cat bonds. First a regression relying on neural network methodology is implemented in order to predict the global annual cost of future catastrophes. Then, based on the same methodology, a classification is done in order to allocate these costs to the various catastrophes.
Our models are used to price several contracts included in the reinsurance program of “Heritage Insurance,” so our results help estimate the share of premiums received by the reinsurer. Two calculations methods are applied: the exposure curve and the “burning cost” method.
Ours models are also validated on cat bond products, but this time using a financial method. This method allows to estimate the share of the Expected Excess Return (EER) depending of the Probability of First Loss (PFL) and the Conditional Expected Loss (CEL).
Macrodynamics of Debt-Financed Investment-Led Growth with Interest Rate Rulespkconference
This document provides an overview of a macroeconomic model that examines debt-financed investment-led growth. Some key points:
- The model explores whether financial factors can provide stability to an otherwise unstable demand-constrained economy, and whether they can generate growth cycles.
- Investment is determined by a post-Keynesian accelerator function where the sensitivity of investment to capacity utilization depends on financial factors like the risk of default and interest rates.
- Debt dynamics are modeled, where borrowing, repayment, and the debt stock over time are determined. Financial fragility and creditworthiness indicators are also developed.
- Monetary policy follows a Taylor-type rule where the central bank adjusts interest rates in response
This document describes a project to develop a pricing tool for general liability insurance. A team of actuarial consultants was hired to create the tool for an insurance company launching a new tri-state product for small businesses. The tool calculates premiums through three main steps: 1) determining a manual premium based on limits, deductibles and expenses, 2) calculating an experience modifier based on 3 years of loss data, and 3) combining these factors to produce a final indicated premium. The tool was designed to be accurate, convenient and flexible for underwriters through functions like quick searching of class codes, reasonability testing of inputs, and easy resetting of data entries.
This research proposal aims to study customer perception towards purchasing general insurance in Ahmedabad. The study will analyze factors that influence customers' selection of general insurance companies and policies. The objectives are to build a model for determining the key factors that impact policyholders' decisions. This study will help insurance companies understand customer preferences to develop competitive insurance products tailored to customer needs.
Combined Credit And Political Risk Paperathula_alwis
This document proposes two methods for modeling combined credit and political risk in emerging markets:
1. A diffusion process that sums individual credit and political risk default rates, subtracting any overlap estimated via a copula function. This provides a conservative starting point but does not fully capture the coverage.
2. A jump diffusion process that allows for sudden increases in default rates during crisis periods. This approach more accurately reflects the coverage provided by combined credit and political risk insurance.
The paper recommends the jump diffusion method and outlines using historical data on default rates, losses, and correlations to develop a stochastic model quantifying the risk-reward profile to support underwriting this line of business.
This whitepaper discusses next generation financial risk monitoring using a framework called Datashop Alchemy. It summarizes an approach to measuring systemic risk using interconnectedness between financial institutions and their credit ratings. The framework evaluates daily systemic risk scores using this methodology and visualizes the results. It is intended to help central banks, financial institutions, and other industries monitor systemic risk in their networks to identify risks and support decision making.
The document discusses an S-curve model that relates per-capita income to insurance penetration. It finds:
1) Estimating life and non-life insurance penetration globally yields an S-curve, where income elasticity is around 1 at low and high incomes but over 1 for middle incomes.
2) Countries deviate from the global S-curve due to other demand factors beyond income. Some countries have persistently higher or lower penetration.
3) Using purchasing power parities instead of exchange rates shifts developing countries to higher incomes on the S-curve, slightly improving the regression results. Analysis of residuals identifies countries converging to the global average.
The document discusses an S-curve model that relates per-capita income to insurance penetration. It finds:
1) Estimating life and non-life insurance penetration globally yields an S-curve, where income elasticity starts and ends at 1 but exceeds 1 at intermediate income levels.
2) For life insurance, the income at maximum elasticity is $15,000, while for non-life it is $10,000.
3) Using purchasing power parities rather than market exchange rates increases estimated penetration levels and elasticities for developing countries.
This is a brief article that describes the evolution of Enterprise Risk Management as a key functional area in large organizations over the past 30 years.
The document provides an analysis of three key risks facing Caterpillar Inc: products liability, natural disasters, and labor disputes/expiring collective bargaining agreements. For each risk, the author identifies risk treatment techniques including risk financing (insurance, CAT bonds) and risk control (inspections, disaster recovery plans, funded risk retentions). Quantitative analyses like discrete loss distributions, NPV calculations, and event trees are used to evaluate the proposed risk treatments. The analyses conclude the risk treatment techniques would provide a positive financial impact for Caterpillar over the next 10 years by reducing expected losses.
This document provides an overview of risk classification in insurance. It defines risk classification as the formulation of different premiums for the same coverage based on group characteristics. Actuaries group individuals expected to have similar costs together and calculate a price for the group. Rating variables used for groups are characteristics that are related to differences in costs among groups. The classification process must consider other rating mechanisms like exposure bases, individual risk rating, marketing and underwriting. Variables are selected based on actuarial, operational, social and legal criteria like accuracy, homogeneity, credibility and having an objective definition.
Este documento presenta información sobre Grupo Bimbo, la empresa panificadora más grande del mundo. Comienza describiendo la filosofía, misión, visión y valores de la empresa. Luego resume su historia desde su fundación en 1945 hasta su expansión internacional actual. Finalmente, incluye una línea de tiempo detallando los hitos más importantes en el desarrollo de Grupo Bimbo a lo largo de los años.
Este documento presenta la introducción a una serie de conversaciones nocturnas sobre astronomía que tuvieron lugar entre varias personas notables reunidas casualmente en el castillo de Flamanville, Francia. Los participantes incluyen un astrónomo, un historiador, un diputado, un pastor, un capitán y un filósofo. Cada noche elegían un tema astronómico para discutir, con el objetivo de explorar la historia de las ideas sobre el universo desde la antigüedad hasta la época moderna. El narrador actuó como secret
Este documento presenta conceptos clave de la prospectiva y construcción de escenarios. Explica que la prospectiva implica un enfoque multidisciplinario para analizar problemas complejos tomando en cuenta múltiples factores. Define prospectiva como el estudio de futuros posibles basado en técnicas como la anticipación y creación de escenarios. Finalmente, discute la importancia de desarrollar una estrategia flexible y robusta para lograr escenarios deseables o evitar los no deseables.
Greenpeace denunció que Nestlé producía Kit-Kat con aceite de palma vinculado a la destrucción del hábitat de orangutanes. Los consumidores criticaron a Nestlé en las redes sociales, a lo que la empresa respondió censurando comentarios negativos, empeorando la situación. Más tarde Nestlé se disculpó y prometió cambios, pero su reputación quedó dañada.
1. Greenpeace acusó a Nestlé de usar aceite de palma vinculado a la destrucción del hábitat de orangutanes para produ
El documento describe los sistemas de producción Toyota (TPS) y Ford (FPS), así como conceptos clave del sistema de producción Justo a Tiempo (JIT). El TPS se basa en la innovación en la gestión del trabajo y el control interno, incluyendo el método JIT, el uso de kanban y tiempos compartidos. El objetivo es eliminar desperdicios y excedentes mediante la autonomatización de máquinas y el flujo continuo de producción. El FPS se centra en la producción en masa mediante líneas de montaje, mientras que el
El documento clasifica los costos de acuerdo a diferentes criterios como su área de consumo, identificación, momento de cálculo, importancia para la toma de decisiones y comportamiento. Una de las clasificaciones más utilizadas es según su comportamiento: costos fijos permanecen constantes mientras que los costos variables se modifican con el volumen de producción. Otra clasificación relevante distingue entre costos relevantes que afectan decisiones y costos no relevantes que permanecen constantes.
El documento describe el cross docking como una herramienta importante en la cadena de suministro. El cross docking permite la consolidación rápida de productos de diferentes proveedores sin almacenamiento, lo que acelera el flujo de mercancías y reduce los costos asociados con el almacenamiento e inventarios. Al eliminar el almacenamiento y acelerar la distribución, el cross docking mejora la eficiencia operativa y reduce los costos totales en la cadena de suministro.
El documento presenta los conceptos estratégicos y financieros clave para el éxito de un negocio. Explica la propuesta de valor, la contribución marginal, y los componentes del éxito financiero como el punto de equilibrio y las ventajas competitivas sostenibles. El objetivo es definir los elementos necesarios para generar utilidades de manera sostenible.
Este documento trata sobre la administración de la demanda en la cadena de suministro. Explica la importancia de gestionar la demanda y los inventarios a lo largo de la cadena de suministro para satisfacer las necesidades de los clientes de manera eficiente. También describe conceptos como el efecto latigazo, el pronóstico de la demanda, estrategias como Justo a Tiempo y cómo integrar a proveedores para mejorar la colaboración en la cadena de suministro. El objetivo final es satisfacer la demanda de los clientes de forma oportuna
Este documento describe los diferentes tipos de prototipos de productos y el proceso de creación de prototipos. Explica que hay cuatro tipos principales de prototipos: visual, prueba de concepto, presentación y pre-producción. Luego, detalla los pasos para crear un prototipo, que incluyen hacer bocetos, crear un modelo 3D, construir una prueba de concepto, crear el primer prototipo y uno listo para la producción. Finalmente, proporciona consejos como priorizar características, usar firmas de confidencialidad y
Este documento resume los 7 hábitos de la gente altamente efectiva descritos en el libro del mismo nombre. Los 7 hábitos se dividen en la victoria privada (hábitos 1-3 sobre ser proactivo, tener el fin en mente y priorizar) y la victoria pública (hábitos 4-7 sobre pensar en ganar-ganar, escuchar primero, crear sinergias y renovarse). Cada hábito incluye ejercicios prácticos para aplicarlos en la vida diaria y mejorar como persona.
Este documento describe un estudio realizado para determinar los costos de los principales productos y servicios de la empresa Torres Triana Supply C.A., la cual no cuenta con una estructura de costos establecida. El estudio analizó los procesos productivos, identificó los insumos y costos directos e indirectos involucrados, y diseñó una base de datos para calcular automáticamente el costo unitario de camisas, chemises, franelas, bordados y sublimados producidos por la empresa. El objetivo general fue determinar los costos de los principales
Este documento presenta información sobre el curso de Administración de Mercados I impartido en la Universidad de Sonora. Cubre temas como los elementos conceptuales de la mercadotecnia, el sistema y medio ambiente de la mercadotecnia, el comportamiento del consumidor, la investigación de mercados y más. Explica conceptos clave como la evolución de la orientación a la producción a la orientación al mercado. El objetivo general del curso es que los estudiantes analicen los conceptos y principios básicos de la administración de la mercadotecnia y
El documento describe los siete hábitos que practican las personas altamente efectivas propuestos por Stephen R. Covey. Estos hábitos forman un sistema integrado que, al practicarse de manera conjunta, pueden generar valores como la interdependencia, el respeto y la sinergia. El objetivo general es proporcionar un modelo que mejore la efectividad a través de la adopción de estos hábitos.
Este documento presenta una introducción a los conceptos básicos de los inventarios. Explica que los inventarios existen para proveer los materiales necesarios en el momento indicado. Define los inventarios como existencias de cualquier artículo utilizado en una organización. Describe los objetivos de los inventarios como satisfacer la demanda de manera oportuna sin mantener excesos de capital invertido. Finalmente, introduce diferentes sistemas de inventario como los modelos de cantidad fija del pedido y de periodo de tiempo fijo.
El documento explica las estrategias de análisis top-down y bottom-up. El enfoque top-down evalúa primero las condiciones macroeconómicas y luego analiza sectores e industrias específicas, mientras que el enfoque bottom-up comienza con el análisis detallado de empresas individuales y luego escala los hallazgos a niveles más amplios. Ambos enfoques son útiles para la toma de decisiones de inversión, pero cada uno comienza el proceso de diferente manera dependiendo del contexto del mercado.
El documento clasifica los costos de acuerdo a diferentes criterios como su área de consumo, identificación, momento de cálculo, importancia para la toma de decisiones y comportamiento. Una de las clasificaciones más utilizadas es según su comportamiento: costos fijos permanecen constantes mientras que los costos variables se modifican con el volumen de producción. Otra clasificación relevante distingue entre costos relevantes que modifican decisiones y costos no relevantes que permanecen constantes.
Este documento proporciona definiciones de varios términos logísticos clave. Algunos de los términos definidos incluyen administrador de materiales, agente de carga aérea, almacén automático, almacén de bloque, almacenaje, almacenista, análisis ABC, analista logístico, apilado en bloque, apilador, aprovisionamiento, benchmarking, boletín de preparación, canal de distribución, catálogo electrónico, código de artículo, código de barras, com
Este documento describe el Sistema Financiero Mexicano. Brevemente, explica que está constituido por una serie de instituciones que captan, administran y canalizan el ahorro nacional e internacional hacia la inversión. Identifica a las principales autoridades regulatorias como la Secretaría de Hacienda y Crédito Público y el Banco de México, y describe los componentes clave del sistema como los intermediarios financieros, el sector bancario, el mercado de valores y las sociedades de inversión.
Este documento presenta el contenido de la materia de Administración Financiera de una maestría en gerencia. Cubre temas como introducción a las finanzas, valor del dinero en el tiempo, decisiones financieras de corto y largo plazo, y su evaluación. El curso analiza conceptos clave como capital de trabajo, gestión de crédito, y valoración de instrumentos financieros para la toma de decisiones.
More from UNAM Facultad de Contaduría, Administración e Informática (20)
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...PECB
Denis is a dynamic and results-driven Chief Information Officer (CIO) with a distinguished career spanning information systems analysis and technical project management. With a proven track record of spearheading the design and delivery of cutting-edge Information Management solutions, he has consistently elevated business operations, streamlined reporting functions, and maximized process efficiency.
Certified as an ISO/IEC 27001: Information Security Management Systems (ISMS) Lead Implementer, Data Protection Officer, and Cyber Risks Analyst, Denis brings a heightened focus on data security, privacy, and cyber resilience to every endeavor.
His expertise extends across a diverse spectrum of reporting, database, and web development applications, underpinned by an exceptional grasp of data storage and virtualization technologies. His proficiency in application testing, database administration, and data cleansing ensures seamless execution of complex projects.
What sets Denis apart is his comprehensive understanding of Business and Systems Analysis technologies, honed through involvement in all phases of the Software Development Lifecycle (SDLC). From meticulous requirements gathering to precise analysis, innovative design, rigorous development, thorough testing, and successful implementation, he has consistently delivered exceptional results.
Throughout his career, he has taken on multifaceted roles, from leading technical project management teams to owning solutions that drive operational excellence. His conscientious and proactive approach is unwavering, whether he is working independently or collaboratively within a team. His ability to connect with colleagues on a personal level underscores his commitment to fostering a harmonious and productive workplace environment.
Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
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Find out more about ISO training and certification services
Training: ISO/IEC 27001 Information Security Management System - EN | PECB
ISO/IEC 42001 Artificial Intelligence Management System - EN | PECB
General Data Protection Regulation (GDPR) - Training Courses - EN | PECB
Webinars: https://pecb.com/webinars
Article: https://pecb.com/article
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For more information about PECB:
Website: https://pecb.com/
LinkedIn: https://www.linkedin.com/company/pecb/
Facebook: https://www.facebook.com/PECBInternational/
Slideshare: http://www.slideshare.net/PECBCERTIFICATION
This slide is special for master students (MIBS & MIFB) in UUM. Also useful for readers who are interested in the topic of contemporary Islamic banking.
Chapter wise All Notes of First year Basic Civil Engineering.pptxDenish Jangid
Chapter wise All Notes of First year Basic Civil Engineering
Syllabus
Chapter-1
Introduction to objective, scope and outcome the subject
Chapter 2
Introduction: Scope and Specialization of Civil Engineering, Role of civil Engineer in Society, Impact of infrastructural development on economy of country.
Chapter 3
Surveying: Object Principles & Types of Surveying; Site Plans, Plans & Maps; Scales & Unit of different Measurements.
Linear Measurements: Instruments used. Linear Measurement by Tape, Ranging out Survey Lines and overcoming Obstructions; Measurements on sloping ground; Tape corrections, conventional symbols. Angular Measurements: Instruments used; Introduction to Compass Surveying, Bearings and Longitude & Latitude of a Line, Introduction to total station.
Levelling: Instrument used Object of levelling, Methods of levelling in brief, and Contour maps.
Chapter 4
Buildings: Selection of site for Buildings, Layout of Building Plan, Types of buildings, Plinth area, carpet area, floor space index, Introduction to building byelaws, concept of sun light & ventilation. Components of Buildings & their functions, Basic concept of R.C.C., Introduction to types of foundation
Chapter 5
Transportation: Introduction to Transportation Engineering; Traffic and Road Safety: Types and Characteristics of Various Modes of Transportation; Various Road Traffic Signs, Causes of Accidents and Road Safety Measures.
Chapter 6
Environmental Engineering: Environmental Pollution, Environmental Acts and Regulations, Functional Concepts of Ecology, Basics of Species, Biodiversity, Ecosystem, Hydrological Cycle; Chemical Cycles: Carbon, Nitrogen & Phosphorus; Energy Flow in Ecosystems.
Water Pollution: Water Quality standards, Introduction to Treatment & Disposal of Waste Water. Reuse and Saving of Water, Rain Water Harvesting. Solid Waste Management: Classification of Solid Waste, Collection, Transportation and Disposal of Solid. Recycling of Solid Waste: Energy Recovery, Sanitary Landfill, On-Site Sanitation. Air & Noise Pollution: Primary and Secondary air pollutants, Harmful effects of Air Pollution, Control of Air Pollution. . Noise Pollution Harmful Effects of noise pollution, control of noise pollution, Global warming & Climate Change, Ozone depletion, Greenhouse effect
Text Books:
1. Palancharmy, Basic Civil Engineering, McGraw Hill publishers.
2. Satheesh Gopi, Basic Civil Engineering, Pearson Publishers.
3. Ketki Rangwala Dalal, Essentials of Civil Engineering, Charotar Publishing House.
4. BCP, Surveying volume 1
A workshop hosted by the South African Journal of Science aimed at postgraduate students and early career researchers with little or no experience in writing and publishing journal articles.
How to Make a Field Mandatory in Odoo 17Celine George
In Odoo, making a field required can be done through both Python code and XML views. When you set the required attribute to True in Python code, it makes the field required across all views where it's used. Conversely, when you set the required attribute in XML views, it makes the field required only in the context of that particular view.
This document provides an overview of wound healing, its functions, stages, mechanisms, factors affecting it, and complications.
A wound is a break in the integrity of the skin or tissues, which may be associated with disruption of the structure and function.
Healing is the body’s response to injury in an attempt to restore normal structure and functions.
Healing can occur in two ways: Regeneration and Repair
There are 4 phases of wound healing: hemostasis, inflammation, proliferation, and remodeling. This document also describes the mechanism of wound healing. Factors that affect healing include infection, uncontrolled diabetes, poor nutrition, age, anemia, the presence of foreign bodies, etc.
Complications of wound healing like infection, hyperpigmentation of scar, contractures, and keloid formation.
Reimagining Your Library Space: How to Increase the Vibes in Your Library No ...Diana Rendina
Librarians are leading the way in creating future-ready citizens – now we need to update our spaces to match. In this session, attendees will get inspiration for transforming their library spaces. You’ll learn how to survey students and patrons, create a focus group, and use design thinking to brainstorm ideas for your space. We’ll discuss budget friendly ways to change your space as well as how to find funding. No matter where you’re at, you’ll find ideas for reimagining your space in this session.
This presentation includes basic of PCOS their pathology and treatment and also Ayurveda correlation of PCOS and Ayurvedic line of treatment mentioned in classics.
Strategies for Effective Upskilling is a presentation by Chinwendu Peace in a Your Skill Boost Masterclass organisation by the Excellence Foundation for South Sudan on 08th and 09th June 2024 from 1 PM to 3 PM on each day.
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
1. Glossarya | b | c | d | e | f | g | h | i | j | k | l | m | n | o | p | q | r | s | t | u | v | w | x | y | z Note: The numbers in parenthesis indicate the section and sub-section in which a term is first discussed. Ability-to-pay: the economic capacity of an individual or organization to offer payment, usually in money, to obtain a good or service. (S1) chinese | russian Actuarially fair premium: an insurance premium charged to an individual which equals the expected losses of the individual. (S5, I) chinese | russian Adverse selection: a process that occurs when individuals with different expected losses are charged the same premium, whereby those with low expected losses drop out of the insurance pool, leaving only individuals with high expected losses. Adverse selection can make it difficult to sustain private insurance markets. (S5, I) HYPERLINK
javascript:term('chinese/cxadvers.htm','scrollbars=yes,%20status=no,width=500,height=200')
chinese | russian Allocative efficiency: allocative efficiency requires that an economy provide its members with the amounts and types of goods and services that they most prefer. In standard economic theory it occurs when resources are allocated in such a way that any change to the amounts or types of outputs currently being produced (which might make someone better off) would make someone worse off. This is sometimes also called
Pareto efficiency
. (S1) chinese | russian Beneficiaries: the individuals covered within a health care plan. In a publicly funded system, the beneficiaries are residents of a jurisdiction or members of a social insurance system; in a private plan, they are enrollees of the insurance plan. (S7, III) HYPERLINK
javascript:term('chinese/cxbenefi.htm','scrollbars=yes,%20status=no,width=500,height=200')
chinese | russian Capitation: a payment mechanism whereby an organization receives a fixed, pre-specified amount of money per time period (e.g., month, year) for each individual for which it is responsible for meeting defined health needs (e.g., primary care, primary and secondary care). (S7, I) HYPERLINK
javascript:term('chinese/cxcapita.htm','scrollbars=yes,%20status=no,width=500,height=200')
chinese | russian Circular flow: the way in which funds move through the capital, labour and product markets between households, firms, the government and the foreign sector (Stiglitz and Boadway, 1994). (S8, I.1) HYPERLINK
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chinese | russian Community rating: a situation in which all members of an insurance pool are charged the same premium, regardless of their risk status. (S5, I) HYPERLINK
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chinese | russian Consumer price index: a price index in which the basket of goods is defined by what a typical consumer purchases (Stiglitz and Boadway, 1994). See also
price index
. (S8, II.3) HYPERLINK
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chinese | russian Contingent valuation: a method for evaluation of benefit or value to individuals of therapy that uses survey methods to establish willingness-to-pay (Pharmacoeconomics, 1997). (S3, I.1) HYPERLINK
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chinese | russian Cost-benefit analysis (CBA): a type of analysis that measures costs and benefits in pecuniary units and computes a net monetary gain/ loss or a cost-benefit ratio (Pharmacoeconomics, 1997). (S3, I.1) HYPERLINK
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chinese | russian Cost-effectiveness analysis (CEA): a type of analysis that compares interventions or programmes having a common health outcome (e.g., reduction of blood pressure; life-years saved) in a situation where, for a given level of resources, the decision maker wishes to maximise the health benefits conferred to the population of concern (adaption of Pharmacoeconomics, 1997). This type of analysis can be used to assess cost-effectiveness efficiency. (S3, I.1) HYPERLINK
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chinese | russian Cost-effectiveness efficiency: cost-effectiveness efficiency occurs when inputs are combined so as to minimize the cost of any given output. The requirement may also be stated such that output is maximized for a given cost. (S1) chinese | russian Cost-sharing: a provision of health insurance or third-party payment that requires the individual who is covered to pay part of the cost of medical care received. This is distinct from the payment of a health insurance premium, contribution, or tax, which is paid whether medical care is received or not. Cost-sharing may be in the form of deductibles, co-insurance or co-payments (World Bank, 1996). (S5, I) HYPERLINK
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chinese | russian Cost-utility analysis: a type of analysis that measures benefits in utility-weighted life-years (QALYs) and which computes a cost per utility-measure ratio for comparison between programmes (adapted from Pharmacoeconomics, 1997). (S3, I.1) chinese | russian Cream-skimming: a process whereby an insurer tries to select the most favourable individuals with expected loses below the premium charged (or the capitation payment received) in order to increase profits. Cream-skimming can make it difficult or impossible for individuals with high expected losses to purchase private insurance. (S5, I) HYPERLINK
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chinese | russian Deficit financing: a planned excess of expenditure over income. Most governments often spend more than they raise in taxation, the difference being financed by borrowing. (Bannock et al., 1992). (S6, II.1) HYPERLINK
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chinese | russian Demand: the desire for a particular good or service supported by the possession of the necessary means of exchange to effect ownership (Bannock et al., 1992). (S1) chinese | russian Demand schedule: the relationship between the quantity demanded of a good and the price, whether for an individual or for the market as a whole (adapted from Stiglitz and Boadway, 1994). (S4, III.2) HYPERLINK
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chinese | russian Depreciation: the decrease in the value of an asset; in particular, the amount that capital goods decrease in value as they are used and become old (Stiglitz and Boadway, 1994). (S8, I.2) HYPERLINK
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chinese | russian Derived demand: the demand for one commodity that depends on the demand for another good, such as when the first commodity is used as an input in producing the (i.e., derives from) second. (S4, V.1) HYPERLINK
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chinese | russian Diagnosis-based payment: diagnosis-based payment refers to a mechanism whereby the provider or health care organization receives a fixed, pre-specified payment for each instance in which they treat an individual with a specified diagnosis (e.g., myocardial infarction, pneumonia, compound fracture). (S7, II) HYPERLINK
javascript:term('chinese/cxdiagno.htm','scrollbars=yes,%20status=no,width=500,height=200')
chinese | russian Discount rate: rate of discount used to convert future costs and benefits into equivalent present values; typically 2 to 6% per annum (Pharmacoeconomics, 1997). (S3, I.4) HYPERLINK
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chinese | russian Disability-adjusted life year (DALY): a unit used for measuring both the global burden of disease and the effectiveness of health interventions, as indicated by reductions in the disease burden. It is calculated as the present value of the future years of disability-free life that are lost as the result of the premature deaths or cases of disability occurring in a particular year (World Bank, 1996). (S3, II.2.i) HYPERLINK
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chinese | russian Economic incidence: refers to the final distribution of the economic burden under different financing schemes. See
statutory incidence
. (S3, V.2) HYPERLINK
javascript:term('chinese/cxeconoi.htm','scrollbars=yes,%20status=no,width=500,height=200')
chinese | russian Economics: the study of how individuals and societies choose to allocate scarce productive resources among competing alternative uses and to distribute the products from these uses among the members of the society. (S1) chinese | russian Economies of scale: situations in which the long-run average costs of a firm decline as output increases (Folland et al., 1997). (S5, I) HYPERLINK
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chinese | russian Efficiency: See
technical efficiency
,
cost-effectiveness efficiency
and
allocative efficiency
. (S1) chinese | russian Equilibrium: a situation in which there are no inherent forces that produce change. Changes away from an equilibrium position occur only as a result of
outside events
that disturb the status quo (Baumol et al., 1988). (S4, III.2) HYPERLINK
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chinese | russian Equity: fairness in the allocation of resources or treatments among different individuals or groups (Pharmacoeconomics, 1997). (S1) chinese | russian Expected loss: the probability of a loss occurring multiplied by the amount of the loss should it occur. (S5, I) HYPERLINK
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chinese | russian Externality: the result of an activity that causes incidental benefits or damages to others with no corresponding compensation provided to or paid by those who generate the externality (Baumol et al., 1988). (S4, II) HYPERLINK
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chinese | russian Factor markets: the labour market, the capital market and other markets in which the factors of production are bought and sold (Bannock et al., 1992). (S8, I.1) HYPERLINK
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chinese | russian Fair: implies a disposition in a person or group to achieve a fitting and right balance of claims or considerations that is free from undue favouritism even to oneself, or implies a quality or result in an action befitting such a disposition (Webster's, 1986). (S2) chinese | russian Fee-for-service: fee-for-service refers to a payment mechanism whereby a provider or health care organization receives a payment each time a reimbursable service is provided (e.g., office visit, surgical procedure, diagnostic test). (S7, I) HYPERLINK
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chinese | russian Final output of goods and services: goods and services which are produced for consumption rather than as intermediate products used in the process of production (Bannock et al., 1994). (S8, I) HYPERLINK
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chinese | russian Fixed costs: costs which do not vary with output (Folland et al., 1997). (S4,II) chinese | russian Financing: raising revenue to pay for a good or service. (S6, I) HYPERLINK
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chinese | russian Funding: providing health care organizations with the financial resources required to carry out a general range of health-related activities. (S6, I) HYPERLINK
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chinese | russian Global budget: refers to a payment mechanism whereby an organization, group of providers, or provider receives a total budget for a defined period of time. (S7, III) HYPERLINK
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chinese | russian Gross domestic product: the total money value of all final goods and services produced by the residents of a nation during a specified period (Stiglitz and Boadway, 1994). (S8, I.2) HYPERLINK
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chinese | russian Gross national product: a measure of the incomes of residents of a country, including income they receive from working abroad but subtracting similar payments made to those abroad (Stiglitz and Boadway, 1994). (S8, I.2) HYPERLINK
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chinese | russian Gross national product deflator: an index of prices which can be applied to the value estimates of the gross national product over a time period in order to remove the effects of changes in the general level of prices (Bannock et al., 1994). (S8, II.3) HYPERLINK
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chinese | russian Health economics: the study of how scarce resources are allocated among alternative uses for the care of sickness and the promotion, maintenance and improvement of health, including the study of how health care and health-related services, their costs and benefits, and health itself are distributed among individuals and groups in society. (S1) chinese | russian Horizontal equity: the principle that says that those who are in identical or similar circumstances should pay similar amounts in taxes and should receive similar amounts in benefits (Stiglitz and Boadway, 1994). (S2, II.3.ii) HYPERLINK
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chinese | russian Human capital: the stock of accumulated skills and experience that make workers more productive (Stiglitz and Boadway, 1994). (S2, II.4) HYPERLINK
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chinese | russian Incidence analysis: determination of the redistributive effects of taxation (Hyman, 1983); fiscal incidence analysis: addresses the question of who pays a particular tax or, in the context of considering alternative methods for raising revenue, how the distribution of paying the tax differs under alternative methods; expenditure incidence analysis: addresses the question of how the distribution of benefits differs under alternative policies or programs; net (or budget) incidence analysis: addresses the question of how net benefits are distributed, taking into account both how the revenues are raised and how the benefits are distributed. chinese | russian Informational Asymmetry: a situation in which the parties on opposite sides of a transaction have differing amounts of information relevant to the transaction (adaption of Folland et al, 1997). (S4.II) chinese | russian Intermediate goods: something that is used in the production of other goods (Bannock et al., 1992). (S8,I.2) chinese | russian Load factor: administrative and other costs associated with underwriting insurance (Folland et al., 1997). The loading factor is the amount by which the actual premium charged exceeds an actuarially fair premium. (S5, I) HYPERLINK
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chinese | russian Marginal benefit: the additional benefit obtained by consuming the last (or next) unit of a commodity. (S1) chinese | russian Marginal cost: the additional cost incurred in producing the last (or next) unit of output. (S1) chinese | russian Marginal private cost: the share of marginal cost caused by an activity that is paid for by the persons who carry out the activity (Baumol et al., 1988). (S4, III.3) HYPERLINK
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chinese | russian Marginal social benefit: the benefits associated with producing one more unit of a good or service. When positive externalities are present, they must be added to marginal private benefits to obtain marginal social benefits. (Hyman, 1983). (S1) chinese | russian Marginal social costs: costs that represent the total value of resources used to produce one more unit of output of a good or service (Hyman, 1983). (S1) chinese | russian Market failure: the situation in which a market economy fails to attain economic efficiency (Stiglitz and Boadway, 1994). (S4, IV) HYPERLINK
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chinese | russian Monopoly: a situation in which a firm can influence the price at which it sells its output by varying the amount it produces and offers for sale (adapted from Hyman, 1983). In a pure monopoly, there is no other firm which produces a close substitute for the firm's product. Thus the demand curve facing the monopolist is the market demand curve (Folland et al., 1997). (S4, IV) HYPERLINK
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chinese | russian Moral hazard: a tendency for losses to be greater or more frequent when covered by insurance (Evans, 1984). (S5, I) HYPERLINK
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chinese | russian National income: the sum of the incomes of all individuals in the economy earned in the form of wages, interest, rents and profits. It includes transfer payments and is calculated before any deductions are taken for income taxes. (Baumol et al., 1988). (S8, I) HYPERLINK
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chinese | russian National income accounting: book-keeping and measurement system for national economic data (Baumol et al., 1988). (S8, I) chinese | russian Need: a pre-requisite for need to exist is that an individual have an ability to benefit from receipt of a health care service at the individual level That is, there must exist a service that can effectively address the health defect in question. For societal level judgements, other factors such as resource constraints and cultural norms may influence judgements of what constitutes health care need, especially what needs can be met from the public purse. (S2, II.2.ii) HYPERLINK
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chinese | russian Net benefit: benefit (in pecuniary units) minus total cost (in pecuniary units): a basic decision criterion in CBA (Pharmacoeconomics, 1997). (S3, I.1) HYPERLINK
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chinese | russian Opportunity cost: the opportunity cost of a commodity is the value of the best alternative use to which those resources could have been put, the value of the productive opportunities foregone by the decision to use them in producing that commodity (Evans, 1984). (S1) chinese | russian Payment: the allocation of resources (usually money) to health sector organizations and individuals in return for some activity (e.g., delivering services, managing organizations, etc.). Payment encompasses both funding and remuneration. (S7, I) chinese | russian Pareto criterion: this criterion states that allocative efficiency has been attained when it is not possible to change the allocation of resources to make any one person better off without making at least one other person worse off (Boadway and Bruce, 1984). (S1) chinese | russian Potential pareto criterion: a criterion which states that a change in resource allocation is viewed as resulting in an improvement in allocative efficiency if those who gain from the change value their gains enough to, in principle, be able to compensate the losers for the value of their losses, thereby leaving them as well off as before the change (adapted from Boadway and Bruce, 1984). (S1) chinese | russian Price: what must be given in exchange for something (Bannock et al., 1992). (S4, I) HYPERLINK
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chinese | russian Price elasticity: price elasticity of demand: a measure of the responsiveness of the quantity demanded of a good to changes in price. It equals the percentage change in quantity demanded divided by the percentage change in price; price elasticity of supply: a measure of the responsiveness of the quantity supplied of a good to changes in price. It equals the percentage change in quantity supplied divided by the percentage change in price (Stiglitz and Boadway, 1994). (S4, III.2) chinese | russian Price index: a measure of the level of prices found by comparing the cost of a certain basket of goods in one year with the cost in a base year (Stiglitz and Boadway, 1994). S8, II.3) HYPERLINK
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chinese | russian Population-based funding schemes: a funding scheme whereby money is nominally attached to beneficiaries, so that in a sense, the funds flow only to wherever the beneficiaries are. Capitation is an example of a population-based funding scheme. (S7, IV) HYPERLINK
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chinese | russian Progressive tax: a tax in which the rich pay a larger fraction of their income than the poor (Stiglitz and Boadway, 1994). (S6, II.3) HYPERLINK
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chinese | russian Prospective payment: that element of a payment scheme whose level is fixed in advance of actually providing a service(s). (S7, V) HYPERLINK
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chinese | russian Provider-based funding schemes: a type of funding scheme whereby money flows directly to providers. Fee-for-service and global budget with salary are examples of provider-based schemes. (S7, IV) HYPERLINK
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chinese | russian Purchasing power parity approach to international comparisons: a method which uses a common set of prices to value the final output of goods and services in all countries in order to obtain estimates of national income. The Purchasing Power Parity (PPP) approach provides a more meaningful way to make international comparisons than do approaches based on exchange rate conversions. (S8, II.4) HYPERLINK
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chinese | russian Purchasing power parity theory: a theory that the exchange rate between any two national currencies adjusts to reflect differences in the price levels of the two nations (Baumol et al., 1988). (S8, II.4) HYPERLINK
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chinese | russian Quality-adjusted life year (QALY): a common measure of health improvement used in cost-utility analysis; combines mortality and quality of life gains (outcome of a treatment measured as the number of years of life saved, adjusted for quality) (Pharmacoeconomics, 1996). (S3, I.1) HYPERLINK
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chinese | russian Regressive tax: a tax in which the poor pay a larger fraction of their income than the rich (Stiglitz and Boadway, 1994). (S6, II.3) HYPERLINK
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chinese | russian Remuneration: refers to the activity of compensating health professionals for their time and effort in providing care. (S6, I) HYPERLINK
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chinese | russian Resources: the basic inputs to production - the time and abilities of individuals, raw materials such as land and natural resources (air, water, minerals, etc.), transformations and accumulations of these into capital (facilities, equipment, etc.), and knowledge of production processes (technologies). (S1) chinese | russian Retrospective payment: that element of a payment scheme whose level is determined only after services have been provided. (S7, V) HYPERLINK
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chinese | russian Risk pooling: occurs when transactors each facing possible large losses agree to contribute a small premium payment to a common pool, to be used to compensate whichever of them actually suffers the loss. Contributions must cover losses plus administration costs (adapted from Evans, 1994). (S5, I) HYPERLINK
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chinese | russian Salary: a payment mechanism whereby a health professional receives a pre-specified sum of money to carry out specified responsibilities for an organization, usually being available to provide needed health care services at specified times (and places). (S7, II) HYPERLINK
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chinese | russian Scarcity: a situation in which the needs and wants of an individual or group of individuals exceed the resources available to satisfy them (Bannock et al., 1992). (S1) chinese | russian Statutory incidence: refers to the initial distribution of liabilities under different financing schemes. See
economic incidence
. (S3, V.2) HYPERLINK
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chinese | russian Supplier-induced demand: a phenomenon whereby a health care provider, usually a physician, influences the level of a person's demand for health care services. Supplier-induced demand arises from the existence of informational asymmetry between a patient and a provider. Professional ethics encourages supplier-induced demand in the interest of the patient, because the patient often has insufficient information to judge what services will improve their health. Providers exploiting their superior informational advantage to induce demand to further their own interest, however, is an important issue in the health sector. (S4, V.2) HYPERLINK
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chinese | russian Supply: refers to the amount of a commodity that present or potential sellers want to put on the market, in response to the price offered by (or on behalf of) buyers (Evans, 1984). (S1) chinese | russian Supply schedule: the relationship between the quantity supplied of a good and the price, whether for an individual or for the market as a whole (adapted from Stiglitz and Boadway, 1994). (S4, III.2) HYPERLINK
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chinese | russian Technical efficiency: technical efficiency requires that for any given amount of output the amount of inputs used to produce it is minimized. (S1) chinese | russian Uncertainty: a situation in which an individual has incomplete information as to what is going to happen in the future. Economists sometimes distinguish between risk and uncertainty. Risk refers to a situation in which an individual knows the possible outcomes that will occur and the probability of each outcome occurring. Uncertainty refers to a situation in which the individual is ignorant of all the possible outcomes, the probability associated with known outcomes, or both. Insurance is possible in the presence of risk; it may not be possible under more general uncertainty. The reader should be aware that, in many contexts outside technical discussion, the two terms are often used interchangeably (adapted from Evans, 1984). (S4, V.1) HYPERLINK
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chinese | russian Vertical equity: the principle that says that those who are in different circumstances with respect to a characteristic of concern for equity should, correspondingly, be treated differently, e.g., those with greater economic capacity to pay should pay more; those with greater need should receive more. (S2, I.3.ii) HYPERLINK
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chinese | russian Welfare economics: the branch of economics that investigates methods for comparing and ordering (from
better
to
worse
) alternative allocations of resources (adapted from Boadway and Bruce, 1984). (S1) chinese | russian Willingness-to-pay: the maximum amount of money that an individual is prepared to give up to ensure that a proposed health care measure is undertaken (Pharmacoeconomics,1997). (S1) chinese | russian http://www.worldbank.org/hsr/class/module1/glossary.htm