Economic Papers最新文献

Building, home contents and comprehensive car insurance promise protection against loss or damage from fire, flooding, accident and theft. In Australia, young people aged 18–24 are among the groups most likely to forego these insurance products. Yet research on the reasons for this remains limited, as noninsurance among young people is attributed to their dependent or ‘fledgling’ life stage, with minimal income and assets warranting protection. In this article, we argue that noninsurance may have serious consequences for young people, particularly if they have limited savings and cannot count on financial assistance from their families. Drawing upon survey findings, we undertake an in-depth investigation into the role of asset levels, affordability and attitudes in driving young people to forego insurance. Our findings suggest that young people are not especially predisposed to distrust insurers, to consider insurance inessential or to oppose insurance on principle. However, other attitudes—including lesser risk aversion, higher confidence in their capacity to mitigate risks and perceptions of insurance as irrelevant to their circumstances or ‘not for them’—may be more prevalent in this age group, driving them to remain uninsured even when they have assets warranting protection and sufficient income to offset affordability concerns.

This paper examines the long-term causal impact of Abenomics, a comprehensive policy package aiming to revitalise the Japanese economy. Using the Synthetic Control Method (SCM), the study assesses the effects of Abenomics across a variety of economic indicators. The findings reveal mixed impacts, with no evidence of Abenomics reducing budget deficits or boosting exports, but a positive effect on real GDP per capita paired with a reduction in the unemployment rate. The evidence regarding the effect on labor force participation rates is weaker, with primarily statistically insignificant increases observed. These results offer insights into the effectiveness of comprehensive policy interventions and provide lessons for policymakers globally in the midst of a global economic slowdown.

This study aims to investigate the effects of generic entry on the market share of different statins. We use administrative records from a representative sample of Australians between 2003 and 2014 and analyse over 21 million prescriptions to quantify the change in the total market share of each statin after experiencing generic entry for the first time. With detailed information on patients' benefits and prices, we also estimate potential savings from increasing the use of statins where generics became available. Our results indicate that despite the price decrease, the market share of the molecule experiencing generic entry does not significantly increase, and there is some evidence of substitution away from statins with generic availability. For the most commonly used molecules, this association is stronger in patients receiving higher government subsidies. We calculate potential savings of A$17 million if patients had initiated treatment with the most prescribed off-patent statin rather than a patent-protected statin. Generic entry after patent expiry presents an opportunity for a significant reduction in pharmaceutical expenditure if these are preferred. This study highlights the importance of improving prescription systems that help doctors recommend lower cost, clinically appropriate alternatives and enhance the effectiveness of policies promoting generic substitution.

This paper contributes to the evidence base on the impact of the COVID-19 on child marriage prevalence and on the protective potential of girl-centred, community-level interventions in buffering communities against aggregate shocks. Drawing on data from repeat cross-sectional surveys completed with adolescent girls aged 12–19 in 609 villages in four states in India as a part of the More Than Brides Alliance impact evaluation, we examine whether the intervention appears to have impacted child marriage prevalence over its 5-year implementation period, whether the onset of COVID-19 affected ongoing trends in child marriage prevalence, and whether the intervention appeared to have buffered against increased child marriage risk resulting from the pandemic. Results show that significant differences emerged between treatment and control villages between midline and endline—and these differences were larger following the onset of COVID-19—suggesting both that the treatment was successful in preventing child marriage and that the intervention had a protective effect. Results suggest that girl-centred, community-based interventions can help communities to weather environmental shocks and protect girls against potential increased child marriage risk during times of acute crisis.

Social cohesion and financial tensions are the key components of psychosocial well-being, yet the relationship has rarely been examined. This article, which offers an empirical investigation into the complex and multidimensional character of social cohesion, examines how financial stress affects social relations in Australia and analyses the moderating effect of social support using longitudinal data from the Household, Income and Labour Dynamics in Australia (HILDA) survey. The results indicate that financial stress has negative effects on social cohesion and has the potential to contribute to social fragmentation. It was found that structural social cohesion is more affected by financial stress than cognitive social cohesion. This study also uncovers the beneficial and buffering effects that social support can bestow on financial stress trauma sufferers.

This study investigates the effect of income per capita, air pollution and healthcare services on health expenditure in Asian economies using annual data from 1995 to 2018. The determinants of total health expenditure and public and private sector health expenditures are estimated separately. The Generalised Methods of Moment (GMM) and Instrument Variable Quantile Panel Regression (IVQPR) techniques are employed in this study. The results explain that environmental pollution, the price of health care, urbanisation and the number of hospital beds have positive effects on total health expenditures as well as on public and private health expenditures. Interestingly, income per capita has a negative effect on health expenditure at lower quantiles and a positive at higher quantiles. The proportion of the elderly population has an adverse effect on total health expenditure, while life expectancy shows a positive effect at lower quantiles and a negative effect at higher quantiles on health expenditure. The impact of the number of physicians per capita is found to be negative and significant, while the availability of safe drinking water and education demonstrates a positive effect on health expenditure. Out-of-pocket expenditure and technological progress are positively associated with health expenditure. Smoking is a significant determinant of government health expenditure, but it is difficult to determine the trend of smoking prevalence in Asian economies. The outcomes of this study provide some important insights to policymakers, which can be used to design a more efficient healthcare sector in Asian countries.

The Australian economy has performed well compared with comparable countries over the last three decades only if we average the excellent performance in the 1990s and the poor performance over the past decade. Real wages over the past decade have stagnated—to an extent without historical parallel. We cannot understand the economy's underperformance without recognising the increasing claims of economic rents on national income. Correction of weaknesses requires coordination of many policy instruments including measures to reduce the prevalence of rents (competition policy and regulation of oligopoly where competition is not feasible or inefficient) and changes in taxation arrangements to shift the burden of business taxation from firms in competitive activities to firms relying heavily on economic rents.

The COVID-19 pandemic has brought about significant changes to the the learning process, prompted by the shift away from traditional physical classrooms to virtual ones. With unequal access to remote learning technologies, there are concerns regarding undergraduate students' academic progress. A primary survey was conducted to create a composite learning score to quantify learning losses. A significantly higher learning loss is visible among students belonging to families facing income losses during the pandemic, and public university students. We find that compared to India, students of Bangladesh and Pakistan are affected more severely in terms of learning losses. The article also measures the extent of psychological distress and academic demotivation related to online learning. We find that the same groups of students face higher psychological distress and academic demotivation.

This study examines whether digital technologies and exporting activities are associated with the likelihood of bankruptcy, liquidity issues and overdue financial obligations during the COVID-19 pandemic. Restrictive measures and lockdowns during the pandemic led to the loss of revenue while incurring costs, resulting in financial issues. Using a sample of 8633 firms from the Central and Eastern economies, we estimate a logistic model and find the following: digitalisation is associated with a decrease in the likelihood of liquidity issues and overdue financial issues; exporting firms experience similar financial outcomes to non-exporting firms; firms that expect or receive government support are associated with an increase in the probability of facing financial issues. Policy implications are discussed.

The rules-based international trading system is under the greatest pressure since its inception in 1948 when the General Agreement on Tariffs and Trade (GATT) came into force. The rules of the GATT's successor, the World Trade Organization (WTO), are being flouted, and the Appellate Body of the dispute-settlement system is no longer functioning. Superpower rivalry is likely to prevent new multilateral trade negotiations leading to substantive agreements. In these circumstances, like-minded countries should begin negotiating plurilateral agreements at the WTO and within APEC.