Households’ precautionary behaviors—the effects of the introduction of National Health Insurance in Taiwan

By reducing risk of large out-of-pocket medical expenses, comprehensive social health insurance may reduce households’ motivation to engage in precautionary behaviors such as saving, procurement of private insurance, and spousal labor-force participation. We use the natural experiment provided by the 1995 introduction of National Health Insurance in Taiwan to examine these effects, using pre-existing differences in access to health insurance (tied to the household head’s and spouse’s joint employment status) to identify the effects of increasing insurance coverage. We find that comprehensive health insurance has a statistically significant and large effect on household savings, but no significant effects on purchase of private accident insurance and spousal employment.

Spatial variability of epibiotic assemblages on marina pontoons in Singapore

Berthing pontoons, one of the most ubiquitous structures in marinas, are known to provide recruitment substrate for a variety of marine biota but little has been reported on their capacity to support epibiotic organisms in tropical marinas, and even less is known about the factors that shape their distribution in such environments. We surveyed the epibiotic assemblages on the sides of pontoons in three Singapore marinas and examined the environmental conditions that influenced their distribution. A total of 94 taxa were recorded, with each marina hosting 43–65 taxa. Assemblages among marinas were highly distinct, and, key discriminants included components of biotic (alcyonarians, hexacorallians, bivalves, and annelids), as well as abiotic (sediment, bare area and shell fragments) origin. While the assemblage variation among marinas was influenced by local environmental conditions (e.g. water motion and sedimentation rate) and pontoon material, the variation in distribution within each marina was best explained by the distance of the pontoons from the marina’s entrance (epibiotic diversity and taxa richness were lower away from the marina entrance). Knowledge on the distribution of epibiotic assemblages on pontoons is essential to identify the factors that contribute to spatial variation and encourage the design and construction of ecologically-friendly marinas. Our findings suggest that improvements to pontoon design and layout would help to augment marina biodiversity, enhance the ecology of urbanised coasts, and mitigate development impacts.     

Intergenerational Conflict or Solidarity in Hong Kong? A Survey of Public Attitudes Toward Social Spending

Social Indicators Research - This study aims to investigate age-related differences in social spending preference in an Asian context, drawing on a random survey of more than 1000 adults in Hong...     

Correction to: Intergenerational Conflict or Solidarity in Hong Kong? A Survey of Public Attitudes Toward Social Spending

Social Indicators Research -     

Finite-sample refinement of GMM approach to nonlinear models under heteroskedasticity of unknown form

It is quite common to observe heteroskedasticity in real data, in particular, cross-sectional or micro data. Previous studies concentrate on improving the finite-sample properties of tests under heteroskedasticity of unknown forms in linear models. The advantage of a heteroskedasticity consistent covariance matrix estimator (HCCME)-type small-sample improvement for linear models does not carry over to the nonlinear model specifications since there is no obvious counterpart for the diagonal element of the projection matrix in linear models, which is crucial for implementing the finite-sample refinement. Within the framework of nonlinear models, we develop a straightforward approach by extending the applicability of HCCME-type corrections to the two-step GMM method. The Monte Carlo experiments show that the proposed method not only refines the testing procedure in terms of the error of rejection probability, but also improves the coefficient estimation based on the mean squared error (MSE) and the mean absolute error (MAE). The estimation of a constant elasticity of substitution (CES)-type production function is also provided to illustrate how to implement the proposed method empirically.     

Optimal price,warranty length and production rate for free replacement policy in the static demand market

In the present paper, a decision model is developed for producers in the static demand market to determine the optimal price, warranty length and production rate of a product to maximize profit based on the pre-determined life cycle. The free renewal warranty policy is considered under which failed products are renewed before the end of warranty length at no cost to consumers. The expected number of renewals based on warranty length is derived for Weibull life distributed products. The objective function includes both demand and cost functions, where production cost, warranty cost and inventory cost are involved. A solution approach using the maximum principle is described, and is applied to two specific cases of markets. The first case of market considers positive discount rate, and the second case of market considers zero discount rate. The economic sensitivity analysis is conducted to evaluate the effect of model parameters on the optimal solution. Some conclusions are drawn based on the sensitivity analysis.     

Poverty alleviation,coverage and fiscal sustainability: Investigating the effect of a new social pension in Hong Kong

This article synthesises the characteristics of social pensions across Asia and evaluates the effect of a new social pension in the Hong Kong SAR, the Old Age Living Allowance (OALA), on poverty alleviation, coverage rates and fiscal sustainability. We found that the effectiveness of the OALA in reducing old‐age poverty was limited, although it has led to an increase of retirement pension coverage by 6%. The OALA is projected to face substantial cost increases in the medium and longer term. Increasing the level of OALA benefits would be a direct means to enhance its poverty alleviation effect but may potentially be hampered by concerns about the fiscal sustainability of such changes. More obfuscated alternatives for Hong Kong policy makers to affect old‐age poverty alleviation include adjusting the indexing rules of benefit level payments and the eligibility criteria to reduce the stigma attached to the current policy choices.     

Combatting voter ignorance: a vertical model of epistocratic voting

In light of recent political events, prominent scholars have argued that voters ignorant of the issues should be disqualified from taking part in decisions that have the potential to alter political landscapes. As convincing as this literature is in highlighting voter ignorance, it fails to differentiate between local, state, and federal elections and how levels of political knowledge are often scale-dependent. If the level of median voter ignorance is not uniform from one level of government to the next, then neither can the reforms proposed to combat it. In this article, I adapt Bell’s vertical model of democratic meritocracy to argue that the larger the election, the more complex the issues, the more explicit the epistocratic safeguards needed.     

Utility Theory and Adolescent Drug Abusers in Hong Kong

Bauman (1980) showed that the perceived costs and benefits of drug abuse predicted adolescents' subsequent marijuana abuse. The purpose of this study was to replicate the Bauman study with Chinese adolescents in Hong Kong, adding further analysis of individual items of perceived costs and benefits of their drug usage. A total of 77 youth at risk (aged 12–21) were interviewed with a structured questionnaire and their attitudes toward drug abuse, stress level, coping strategies, and parents' marital status were obtained. Congruent with the utility theory, results indicated that the more positive their attitude toward drug abuse, the more likely their involvement in drugs and the higher the observed stages of abuse. However, there was no significant difference between the drug abusers and non-users in some antecedent variables including stress levels in most areas of the adolescent lives, in most stress coping strategies, and parents' marital status. Results are discussed in relation to prevention of adolescent drug abuse.