Policy-makers world-wide have proposed a new contract – the “social impact bond” (SIB) – which they claim can allay the underperformance and underfunding afflicting not-for-profit sectors, by tying the private returns of (social) investors to the success of social programs (Bolton 2010; Bolton & Savell 2010; Mulgan et al. 2010a,b; Liebman 2011; Tierney & Fleishman 2011; Von Glahn & Whistler 2011). Given the high hopes governments on various levels in England, Australia, and New York have pinned on this contract format, the considerable amount of money that has recently been poured into this emerging market (e.g., http://www.bigsocietycapital.com/), and the fact that serious are program evaluations cannot be expected any time soon (Disley et al. 2011; see also McKay 2013 and Pratt 2013), we test this new contract by way of experimental methods. We report an investigation of how SIBs perform in a first-best world, where investors are rational and able to obtain hard information about not-for-profits’ performance. To this end, we use a principal-agent multi-tasking framework to compare SIBs to inputs-based (IBs) and performance-based (PBs) contracts, which represent the most commonly used contracts governments and not-for-profits write. IBs contain a piece-rate mechanism, PBs contain a non-binding bonus mechanism, and SIBs contain a mechanism that, due to the presence of an investor, offers full enforceability. Although SIBs can perfectly enforce good behavior, they also require the principal (i.e. government) to relinquish control over the agent’s (i.e. not-for-profit’s) payoff to a self-regarding investor, which prevents the principal and agent from being reciprocal. In spite of these drawbacks, in our experiment SIBs outperformed IBs and PBs. We therefore conclude that, at least in our laboratory test-bed, SIBs can indeed allay underperformance and therefore possibly underfunding of not-for-profits.
{"title":"Understanding Social Impact Bonds and Their Alternatives: An Experimental Investigation","authors":"Jade Wong, A. Ortmann, Alberto Motta, Le Zhang","doi":"10.2139/ssrn.2323057","DOIUrl":"https://doi.org/10.2139/ssrn.2323057","url":null,"abstract":"Policy-makers world-wide have proposed a new contract – the “social impact bond” (SIB) – which they claim can allay the underperformance and underfunding afflicting not-for-profit sectors, by tying the private returns of (social) investors to the success of social programs (Bolton 2010; Bolton & Savell 2010; Mulgan et al. 2010a,b; Liebman 2011; Tierney & Fleishman 2011; Von Glahn & Whistler 2011). Given the high hopes governments on various levels in England, Australia, and New York have pinned on this contract format, the considerable amount of money that has recently been poured into this emerging market (e.g., http://www.bigsocietycapital.com/), and the fact that serious are program evaluations cannot be expected any time soon (Disley et al. 2011; see also McKay 2013 and Pratt 2013), we test this new contract by way of experimental methods. We report an investigation of how SIBs perform in a first-best world, where investors are rational and able to obtain hard information about not-for-profits’ performance. To this end, we use a principal-agent multi-tasking framework to compare SIBs to inputs-based (IBs) and performance-based (PBs) contracts, which represent the most commonly used contracts governments and not-for-profits write. IBs contain a piece-rate mechanism, PBs contain a non-binding bonus mechanism, and SIBs contain a mechanism that, due to the presence of an investor, offers full enforceability. Although SIBs can perfectly enforce good behavior, they also require the principal (i.e. government) to relinquish control over the agent’s (i.e. not-for-profit’s) payoff to a self-regarding investor, which prevents the principal and agent from being reciprocal. In spite of these drawbacks, in our experiment SIBs outperformed IBs and PBs. We therefore conclude that, at least in our laboratory test-bed, SIBs can indeed allay underperformance and therefore possibly underfunding of not-for-profits.","PeriodicalId":23435,"journal":{"name":"UNSW Business School Research Paper Series","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2013-09-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81604991","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Mortality models used to assess longevity risk and retirement funding have been extended to stochastic models with trends and systematic risk. Systematic risk cannot be readily diversified in an insurance pool or pension fund. It is an important factor in assessing solvency and highlighting the tail risk in longevity insurance and pension products. Idiosyncratic risk can be diversified in typical pool sizes, although less effectively at the older ages. Mortality heterogeneity is not usually taken into account in stochastic mortality models. This is a mortality risk that reduces the effectiveness of idiosyncratic mortality risk pooling. Heterogeneity has been modelled with frailty models and more recently with Markov multiple state ageing models. This paper overviews recent developments in models for mortality heterogeneity and uses a model calibrated to both population mortality and health condition data to consider the impact of model risk and heterogeneity in assessing solvency and tail risk for longevity risk products.
{"title":"Model Risk, Mortality Heterogeneity and Implications for Solvency and Tail Risk","authors":"M. Sherris, Qiming Zhou","doi":"10.2139/ssrn.2258814","DOIUrl":"https://doi.org/10.2139/ssrn.2258814","url":null,"abstract":"Mortality models used to assess longevity risk and retirement funding have been extended to stochastic models with trends and systematic risk. Systematic risk cannot be readily diversified in an insurance pool or pension fund. It is an important factor in assessing solvency and highlighting the tail risk in longevity insurance and pension products. Idiosyncratic risk can be diversified in typical pool sizes, although less effectively at the older ages. Mortality heterogeneity is not usually taken into account in stochastic mortality models. This is a mortality risk that reduces the effectiveness of idiosyncratic mortality risk pooling. Heterogeneity has been modelled with frailty models and more recently with Markov multiple state ageing models. This paper overviews recent developments in models for mortality heterogeneity and uses a model calibrated to both population mortality and health condition data to consider the impact of model risk and heterogeneity in assessing solvency and tail risk for longevity risk products.","PeriodicalId":23435,"journal":{"name":"UNSW Business School Research Paper Series","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2013-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87874043","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
H. Bateman, L. Dobrescu, B. Newell, A. Ortmann, S. Thorp
Using a laboratory experiment, we study how retirement plan members choose investment options using five information items prescribed by regulators. We found that asset allocation information for pre-mixed investment options – normally presented as a pie chart or a table – had the largest impact on choices. Participants preferred investment options with more, and more evenly weighted, asset class allocations. This novel application of a 1/n strategy differs significantly from the existing findings of naive diversification in ‘mix-it-yourself’ conditions where participants spread resources evenly across funds or categories. When asset allocation information was included, coefficients on return and risk information had unexpected signs, but when asset allocation was omitted, participants preferred options with high Sharpe ratios. We also demonstrate that none of the five prescribed information items was significant in explaining individual choices of more than 35% of participants. These findings highlight that information contained in prescribed investment disclosures might not be used in the manner intended by the regulator. The results raise important methodological questions about the way ‘user-friendly’ information prescribed by regulators is validated before being legislated.
{"title":"As Easy as Pie: How Retirement Savers Use Prescribed Investment Disclosures","authors":"H. Bateman, L. Dobrescu, B. Newell, A. Ortmann, S. Thorp","doi":"10.2139/ssrn.2227801","DOIUrl":"https://doi.org/10.2139/ssrn.2227801","url":null,"abstract":"Using a laboratory experiment, we study how retirement plan members choose investment options using five information items prescribed by regulators. We found that asset allocation information for pre-mixed investment options – normally presented as a pie chart or a table – had the largest impact on choices. Participants preferred investment options with more, and more evenly weighted, asset class allocations. This novel application of a 1/n strategy differs significantly from the existing findings of naive diversification in ‘mix-it-yourself’ conditions where participants spread resources evenly across funds or categories. When asset allocation information was included, coefficients on return and risk information had unexpected signs, but when asset allocation was omitted, participants preferred options with high Sharpe ratios. We also demonstrate that none of the five prescribed information items was significant in explaining individual choices of more than 35% of participants. These findings highlight that information contained in prescribed investment disclosures might not be used in the manner intended by the regulator. The results raise important methodological questions about the way ‘user-friendly’ information prescribed by regulators is validated before being legislated.","PeriodicalId":23435,"journal":{"name":"UNSW Business School Research Paper Series","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2013-03-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88912919","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper sets out annual series of economic, financial and demographic related to housing for Australia for the period 1881-2011. Some estimates are provided for 2012. The methodology used in constructing and/or splicing the various series are stated and explained.
{"title":"Historical Housing-Related Statistics for Australia 1881-2011 – A Short Note","authors":"Nigel Stapledon","doi":"10.2139/SSRN.2190682","DOIUrl":"https://doi.org/10.2139/SSRN.2190682","url":null,"abstract":"This paper sets out annual series of economic, financial and demographic related to housing for Australia for the period 1881-2011. Some estimates are provided for 2012. The methodology used in constructing and/or splicing the various series are stated and explained.","PeriodicalId":23435,"journal":{"name":"UNSW Business School Research Paper Series","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2012-12-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88276098","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
I start with a moral axiom: the necessary (but not sufficient) condition for a just and equitable society is that its citizens and its government are committed to establishing and maintaining full employment of its citizens. That is to say, anyone who is willing to work under existing conditions – wage rates, conditions of work, and so on – should be able to find a job. A further proposition is that a modern capitalist economy in which the operations of finance, industry and commerce are indissolubly mixed, is unable, unaided by intervention, to ensure full employment in this sense. There is little, if anything, in the inducements to the principal decision-makers concerning employment, production and investment in capital goods, nor in the demands for exports and imports, that ensures that the overall outcome of these demands will provide sufficient total demand to sustain full employment of the existing labor forces and stocks of capital goods.
{"title":"Full Employment","authors":"G.C. Harcourt","doi":"10.2139/ssrn.2140988","DOIUrl":"https://doi.org/10.2139/ssrn.2140988","url":null,"abstract":"I start with a moral axiom: the necessary (but not sufficient) condition for a just and equitable society is that its citizens and its government are committed to establishing and maintaining full employment of its citizens. That is to say, anyone who is willing to work under existing conditions – wage rates, conditions of work, and so on – should be able to find a job. A further proposition is that a modern capitalist economy in which the operations of finance, industry and commerce are indissolubly mixed, is unable, unaided by intervention, to ensure full employment in this sense. There is little, if anything, in the inducements to the principal decision-makers concerning employment, production and investment in capital goods, nor in the demands for exports and imports, that ensures that the overall outcome of these demands will provide sufficient total demand to sustain full employment of the existing labor forces and stocks of capital goods.","PeriodicalId":23435,"journal":{"name":"UNSW Business School Research Paper Series","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2012-08-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"72754436","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Particularly, this case study provides facts pertaining to the marketing efforts of Guest-Tek Interactive Entertainment Company. Further the case derives the purposes of developing a marketing strategy when they enter in to Russian market. Secondly the case discusses about the implications of marketing strategies towards the organizational strategies. Further, an evaluation has provided with regard to the choice of business needs to consider when developing a marketing strategy. Besides, techniques have also discussed to develop the pertaining marketing strategy. To bring a new product to the market, properly planed marketing aspects are required. So therefore, the case encompasses a plan in order to implement for a proposed new product. The marketing environment is also another important criterion that needs to be assessed. Thus the case provides facts pertaining to the marketing environment on business marketing strategies. Finally, the case discusses about how the company can implement their marketing strategies in response to the changes in the marketing environment.
特别地，这个案例研究提供了有关Guest-Tek Interactive Entertainment Company的营销工作的事实。进而引出了企业进入俄罗斯市场时制定营销战略的目的。其次，本案例讨论了营销策略对组织战略的影响。此外，在制定营销策略时，评估提供了关于业务需求选择的考虑。此外，还讨论了制定相关营销策略的技巧。为了将新产品推向市场，需要适当的营销计划。因此，这个案例包含了一个计划，以便为提议的新产品实施。营销环境也是需要评估的另一个重要标准。因此，该案例提供了有关企业营销策略的营销环境的事实。最后，本案例讨论了公司如何实施营销策略以应对营销环境的变化。
{"title":"Marketing’s Strategic Role: An Analysis of Guest-Tek Interactive Entertainment Company","authors":"D. Dissanayake","doi":"10.2139/ssrn.2126450","DOIUrl":"https://doi.org/10.2139/ssrn.2126450","url":null,"abstract":"Particularly, this case study provides facts pertaining to the marketing efforts of Guest-Tek Interactive Entertainment Company. Further the case derives the purposes of developing a marketing strategy when they enter in to Russian market. Secondly the case discusses about the implications of marketing strategies towards the organizational strategies. Further, an evaluation has provided with regard to the choice of business needs to consider when developing a marketing strategy. Besides, techniques have also discussed to develop the pertaining marketing strategy. To bring a new product to the market, properly planed marketing aspects are required. So therefore, the case encompasses a plan in order to implement for a proposed new product. The marketing environment is also another important criterion that needs to be assessed. Thus the case provides facts pertaining to the marketing environment on business marketing strategies. Finally, the case discusses about how the company can implement their marketing strategies in response to the changes in the marketing environment.","PeriodicalId":23435,"journal":{"name":"UNSW Business School Research Paper Series","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2012-08-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"91468349","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper assesses the cost and risk faced by public sector, defined benefit plan providers arising from uncertain mortality, including longevity selection, mortality improvements, and unexpected systematic shocks. Using longitudinal micro data on Australian pensioners, we quantify the extent of longevity selection at both aggregate and scheme level. We also show that as the age-membership structure in a pension scheme matures, scheme-specific longevity selection risk and systematic shocks become quantitatively more important and have larger consequences for plan liabilities than aggregate selection risk or the impact of mortality improvements.
{"title":"Public Sector Pension Funds in Australia: Longevity Selection and Liabilities","authors":"Joelle H. Fong, J. Piggott, M. Sherris","doi":"10.2139/ssrn.2078683","DOIUrl":"https://doi.org/10.2139/ssrn.2078683","url":null,"abstract":"This paper assesses the cost and risk faced by public sector, defined benefit plan providers arising from uncertain mortality, including longevity selection, mortality improvements, and unexpected systematic shocks. Using longitudinal micro data on Australian pensioners, we quantify the extent of longevity selection at both aggregate and scheme level. We also show that as the age-membership structure in a pension scheme matures, scheme-specific longevity selection risk and systematic shocks become quantitatively more important and have larger consequences for plan liabilities than aggregate selection risk or the impact of mortality improvements.","PeriodicalId":23435,"journal":{"name":"UNSW Business School Research Paper Series","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2012-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83472796","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper considers the design of pooled life annuities for Australian retirees. In particular it considers how mortality can be pooled, and investment returns smoothed, to provide for consumption that is greater and smoother – without the risk of totally exhausting account balances, and without the need for significant shareholder capital. It is also necessary to integrate payments with the age pension and to take regulatory minima into consideration. The results are illustrated for Australian returns since 1956.
{"title":"The Lifetime Harvesting Plan: Smoothed Annuities with Sharing of Mortality, and Averaging of Investment, Risks","authors":"A. Asher","doi":"10.2139/ssrn.2415470","DOIUrl":"https://doi.org/10.2139/ssrn.2415470","url":null,"abstract":"This paper considers the design of pooled life annuities for Australian retirees. In particular it considers how mortality can be pooled, and investment returns smoothed, to provide for consumption that is greater and smoother – without the risk of totally exhausting account balances, and without the need for significant shareholder capital. It is also necessary to integrate payments with the age pension and to take regulatory minima into consideration. The results are illustrated for Australian returns since 1956.","PeriodicalId":23435,"journal":{"name":"UNSW Business School Research Paper Series","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2012-04-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80222628","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Radical changes in macroeconomic policy could produce a brighter future. The neoclassical myth that a free-market economy inevitably moves to an equilibrium position determined solely by supply-side factors must be rejected and replaced by the insight that the position of an economy in the longer-run is path-dependent. Fiscal policy in recessions should be biased towards increasing physical and human capital which will improve the productivity of an economy, raising living standards and hence taxable capacity, thus enabling future public debt to be reduced if this is desirable. Monetary policy should play a very minor role in aggregate demand policy, with interest rate settings largely used to help achieve long-term income distribution goals. All this is fundamental to Geoff Harcourt’s vision of macroeconomic policy and this paper spells out how this vision can be implemented in 2012 in Western countries not hamstrung by Euro-zone rules and regulations.
{"title":"A Bright Future Can Be Ours!: Macroeconomic Policy for Non-Euro-Zone Western Countries","authors":"J. Nevile, Peter Kriesler","doi":"10.2139/ssrn.2045239","DOIUrl":"https://doi.org/10.2139/ssrn.2045239","url":null,"abstract":"Radical changes in macroeconomic policy could produce a brighter future. The neoclassical myth that a free-market economy inevitably moves to an equilibrium position determined solely by supply-side factors must be rejected and replaced by the insight that the position of an economy in the longer-run is path-dependent. Fiscal policy in recessions should be biased towards increasing physical and human capital which will improve the productivity of an economy, raising living standards and hence taxable capacity, thus enabling future public debt to be reduced if this is desirable. Monetary policy should play a very minor role in aggregate demand policy, with interest rate settings largely used to help achieve long-term income distribution goals. All this is fundamental to Geoff Harcourt’s vision of macroeconomic policy and this paper spells out how this vision can be implemented in 2012 in Western countries not hamstrung by Euro-zone rules and regulations.","PeriodicalId":23435,"journal":{"name":"UNSW Business School Research Paper Series","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2012-04-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78011217","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The paper considers some of the problems associated with the indirectly measured components of financial service outputs in the System of National Accounts (SNA), termed FISIM (Financial Intermediation Services Indirectly Measured). The paper utilizes a user cost and supplier benefit approach to the determination of the value of various financial services in the banking sector. The present paper also attempts to integrate the balance sheet accounts in the SNA with the usual flow accounts. An empirical example of various nominal output concepts that could be applied to the U.S. commercial banking sector is presented.
{"title":"Problems with the Measurement of Banking Services in a National Accounting Framework","authors":"W. Diewert, Dennis J. Fixler, K. Zieschang","doi":"10.2139/ssrn.2037649","DOIUrl":"https://doi.org/10.2139/ssrn.2037649","url":null,"abstract":"The paper considers some of the problems associated with the indirectly measured components of financial service outputs in the System of National Accounts (SNA), termed FISIM (Financial Intermediation Services Indirectly Measured). The paper utilizes a user cost and supplier benefit approach to the determination of the value of various financial services in the banking sector. The present paper also attempts to integrate the balance sheet accounts in the SNA with the usual flow accounts. An empirical example of various nominal output concepts that could be applied to the U.S. commercial banking sector is presented.","PeriodicalId":23435,"journal":{"name":"UNSW Business School Research Paper Series","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2012-04-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87767119","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：