Managing diverse risks: An integrative framework

Risk is a crucial part of any business and managing risk is an essential function for management. This paper reviews current managerial practice and academic research in managing diverse risks. There are numerous elements of risk, some exogenous to the firm and others that are endogenous. In recent years exogenous elements of risk have increased both in number and complexity, and distinctions have blurred between national and international elements of risks because of the integration across borders of markets, institutions, and political and operational risks. An explicit classification of risks as exogenous and endogenous will focus managerial attention to the changing exogenous elements, to the often ignored endogenous elements, and to the needed integration of managing exogenous and endogenous risks. While there is an increasing body of research examining risk, there is a need to examine exogenous risk elements as systems of risk rather than as independent elements and integrate endogenous elements including behavioral and incentive-related aspects with the systems of exogenous risks. Additionally, international case studies and surveys about risk perceptions and attitudes of managers across different organizations and within levels of organizations will improve our understanding of the diverse risks faced by multi-national corporations.     

Using Electronic Medical Records in Admission Decisions: A Cost Effectiveness Analysis

In recent years, the healthcare sector has invested heavily in medical information systems to improve decision making while reducing medical costs and integrating medical data from multiple sources. However, the overall contribution of this technology to the medical field remains controversial, especially in high‐stress environments such as the emergency department. This article evaluates the differential effects of accessing an electronic medical record (EMR) system on the decision to admit, based on diagnosis of acute myocardial infarction (AMI), which is one of the main reasons people go to the emergency department. The admission decision with or without accessing the EMR system is modeled as a decision tree and a Markovian process. A cost‐effectiveness analysis compares the added value of information (retrieved from the EMR system) against the cost of providing this information. This model is then tested on a simulation of patients presenting symptoms of AMI. The results show that use of the EMR led to greater cost‐effectiveness in cases of suspected AMI. The findings of this study may assist physicians by demonstrating a probable contribution of EMR to improved medical outcomes and may inform policy makers in the healthcare sector regarding the advisability of investing in such systems in an emergency department.     

Residential Location,Work Location,and Labor Market Outcomes of Immigrants in Israel

We develop and estimate a comprehensive dynamic programming (DP) model for the joint decisions of residential location, employment location, occupational choices, and labor market outcomes. We use data on immigrants from the former Soviet Union (FSU). We provide an extensive empirical evaluation of policies that have been designed to affect the residential and employment location decisions of the migrant population. The results shed new, and important, light on several issues regarding this group of immigrants. We find large regional differences in wages for the white‐collar workers, but only little differences for the blue‐collar workers. A careful examination of a number of policy measures indicate that a direct subsidy, in the form of a lump‐sum transfer, is most effective in achieving the government stated goal of inducing people to reside in the northern region of the Galilee and southern region of the Negev. Other policies, such as rental and wage subsidies, can also be quite effective, but these are more difficult to administer.     

Gender Pay Gap and Employment Sector: Sources of Earnings Disparities in the United States, 1970–2010

Using data from the IPUMS-USA, the present research focuses on trends in the gender earnings gap in the United States between 1970 and 2010. The major goal of this article is to understand the sources of the convergence in men’s and women’s earnings in the public and private sectors as well as the stagnation of this trend in the new millennium. For this purpose, we delineate temporal changes in the role played by major sources of the gap. Several components are identified: the portion of the gap attributed to gender differences in human-capital resources; labor supply; sociodemographic attributes; occupational segregation; and the unexplained portion of the gap. The findings reveal a substantial reduction in the gross gender earnings gap in both sectors of the economy. Most of the decline is attributed to the reduction in the unexplained portion of the gap, implying a significant decline in economic discrimination against women. In contrast to discrimination, the role played by human capital and personal attributes in explaining the gender pay gap is relatively small in both sectors. Differences between the two sectors are not only in the size and pace of the reduction but also in the significance of the two major sources of the gap. Working hours have become the most important factor with respect to gender pay inequality in both sectors, although much more dominantly in the private sector. The declining gender segregation may explain the decreased impact of occupations on the gender pay gap in the private sector. In the public sector, by contrast, gender segregation still accounts for a substantial portion of the gap. The findings are discussed in light of the theoretical literature on sources of gender economic inequality and in light of the recent stagnation of the trend.     

Life expectancy and schooling: new insights from cross-country data

I argue that the relationship between life expectancy and schooling crucially depends on which measure of life expectancy one uses. In particular, I show that while the change in life expectancy at birth between 1960 and 1990 is positively correlated with percentage change in schooling, the change in life expectancy at age?5 is, at best, uncorrelated with percentage change in schooling. This evidence suggests that increasing life horizon beyond the early crucial childhood years for formal acquisition of human capital is not as quantitatively important as previously thought.     

Longevity and Lifetime Labor Supply: Evidence and Implications

Conventional wisdom suggests that increased life expectancy had a key role in causing a rise in investment in human capital. I incorporate the retirement decision into a version of Ben‐Porath's (1967) model and find that a necessary condition for this causal relationship to hold is that increased life expectancy will also increase lifetime labor supply. I then show that this condition does not hold for American men born between 1840 and 1970 and for the American population born between 1890 and 1970. The data suggest similar patterns in Western Europe. I end by discussing the implications of my findings for the debate on the fundamental causes of long‐run growth.     

The influence of the sample on the posterior distribution

In this paper, we present conditions on the likelihood function and on the prior distribution which permit us to assess the effect of the sample on the posterior distribution. Our work is inspired by Whitt (1979) J. Amer. Statist. Assoc. 74, and is based on the notions of multivariate totally positive and (strongly) mul-tivariate reverse rule functions introduced and studied by Karlin and Rinott (1980a, b)     

Blackmail is Against the Law Part Five: I Have a Waiting List!

This paper reports in detail on the fifth and final session of family therapy which began after both mother and 14-year-old daughter attempted suicide. The work of the previous sessions is reviewed and an attempt is made to delineate the changes which have occurred within the family and the means by which they have been achieved.