Business Commons^™

Interest Domination As A Framework For Exploring Channel Changes In Transitional Economies, Debra Dahab, James W. Gentry, Ravipreet S. Sohi

Department of Marketing: Faculty Publications

Changes in political and economic power can affect channel structures and decisions. Western channel models may not be useful for understanding the process of change in Central and East European transforming economies. This discussion suggests that channels in transforming economies may be controlled by groups or networks of people with mutual interests, a phenomenon the authors call interest domination. The article examines interest domination by managers, Communist cadres, and other party elite in two transforming economies and describes how structural and behavioral components of command economies might be conducive to interest domination of marketing channels. Propositions for explaining the political, …

Teacher Training Programs In Economics: Past, Present, And Future, Michael K. Salemi, Phillip Saunders, William Walstad

College of Business: Faculty Publications

There has been, of late, renewed interest in and criticism of the quality of undergraduate instruction (Lewis B. Mayhew et al., 1990). Colleges and universities have responded by placing more emphasis on teaching, and faculty are under increasing pressure to improve their teaching performance. Economics departments are particularly concerned about enrollment trends and recognize that effective teaching stimulates student interest and willingness to major in a subject (John J. Siegfried et al., 1991).

It is not surprising that there is room for improvement in college teaching. Graduate programs emphasize development of advanced knowledge and research skills. Few provide teacher education. …

Identification Of A Brazil-Nut Allergen In Transgenic Soybeans, Julie A. Nordlee, Steve L. Taylor, Jeffrey A. Townsend, Laurie A. Thomas, Robert K. Bush

Department of Food Science and Technology: Faculty Publications

Background: The nutritional quality of soybeans (Glycine max) is compromised by a relative deficiency of methionine in the protein fraction of the seeds. To improve the nutritional quality, methionine-rich 2S albumin from the Brazil nut (Bertholletia excelsa) has been introduced into transgenic soybeans. Since the Brazil nut is a known allergenic food, we assessed the allergenicity of the 2S albumin. Methods: The ability of proteins in transgenic and nontransgenic soybeans, Brazil nuts, and purified 2S albumin to bind to IgE in serum from subjects allergic to Brazil nuts was determined by radioallergosorbent tests (four subjects) and …

The Effects Of Environment Dynamism And Heterogeneity On Salespeople's Role Perceptions, Performance And Job Satisfaction, Ravipreet S. Sohi

Department of Marketing: Faculty Publications

This article develops a structural equations model which examines the effects of environmental dynamism and heterogeneity on salespeople’s role conflict, role ambiguity, performance and job satisfaction. The model is tested with EQS, using data collected from 230 salespeople in multiple companies and industries. Indicates that environmental dynamism reduces satisfaction and performance, and increases role conflict and ambiguity. Notes that environmental heterogeneity also reduces performance and increases role conflict, but does not have a significant effect on role ambiguity.

Journal Of Actuarial Practice, Volume 4, No. 2, 1996, Colin Ramsay , Editor

Journal of Actuarial Practice (1993-2006)

ARTICLES

Methodologies for Determining Reserve Liabilities in the Workers Compensation High Deductible Program • Jerome J. Siewert

Third Party Administrator (TPA) Service Pricing and Incentive Contracts • Hou-Wen Jeng

Annuity Choices for Pensioners • M. Zaki Khoransee

Pension Funding by Normal Costs or Amortization of Unfunded Liabilities • Keith P. Sharp

What We Say in the NAIC Annual Statement Blank Actuarial Opinion • Kenneth W. Faig, Jr.

Constrained Forecasting of the Number of IBNR Claims • Louis G. Doray

Editor - Colin Ramsay, University of Nebraska. Associate Editors: Robert Brown, University of Waterloo ○ Cecil Bykerk, Mutual of …

Journal Of Actuarial Practice, Volume 4, No.1, 1996, Colin Ramsay , Editor

Journal of Actuarial Practice (1993-2006)

ARTICLES

An Approach to Estimating Market Value and Duration of Interest-Sensitive Whole Life Contracts • Thomas J. Merfeld

Participating GICs: Performance Attribution Analysis • Alec Stais and John P. Toohey III

Asset Allocation in Investing to Meet Liabilities • Anthony Dardis and Vinh Loi Huynh

A Possibilistic Linear Programming Method for Asset Allocation • Lijia Guo and Zhen Huang

Nonmedical Limits in Individual Life Insurance • James B. Ross and Shalini Perumpral

A Proposed New System of Financing Health Care in Singapore • Robert Keng Heong Lian and Loi Soh Loi

Concentration in American Property-Casualty Companies • Edward Nissan

Bias …

Discussion Of Theodore Konshak's "Disclosure And Confidentiality Requirements Of Corporate Pension Plan Actuaries", Richard Daskais, Brian A. Jones

Journal of Actuarial Practice (1993-2006)

No abstract provided.

Constrained Forecasting Of The Number Of Ibnr Claims, Louis G. Doray

Journal of Actuarial Practice (1993-2006)

We consider the problem of forecasting the number of claims incurred. After subtracting the number of claims reported to date, the number of claims incurred but not reported (IBNR) can be forecasted. The basic model assumes that the number of claims per accident period follows an autoregressive moving average time series process. Instead of assuming the data are available in the usual claim run-off triangle format, we assume that the only data available are the number of claims reported at the valuation date for each accident interval of an observation period. Box-Jenkins methods are used to forecast the ultimate number …

A Possibilistic Linear Programming Method For Asset Allocation, Lijia Guo, Zhen Huang

Journal of Actuarial Practice (1993-2006)

The mean-variance method has been one of the popular methods used by most financial institutions in making the decision of asset allocation since the 1950s. This paper presents an alternative method for asset allocation. Instead of minimizing risk for a given expected return or maximizing expected return for a fixed level of risk, our approach considers simultaneously maximizing the rate of return of portfolio, minimizing the risk of obtaining lower return, and maximizing the possibility of reaching higher return. By using a triangular possibilistic distribution to describe the uncertainty of the return, we introduce a possibilistic linear programming model which …

Annuity Choices For Pensioners, Zaki M. Khorasanee

Journal of Actuarial Practice (1993-2006)

We consider two ways for a retiree to obtain a pension from a retirement fund: through the purchase of a whole life annuity providing a level monetary income; and through the withdrawal of income from a fund invested in equities. Deterministic and stochastic models are used to assess the risks and benefits associated with each approach. In each case the projected cash flows are compared with those from a whole life annuity providing an income linked to price inflation. We conclude that, although each of the two options conSidered involves significant risks, each method may be attractive to certain groups …

A Proposal For Improving The System Of Financing Health Care In Singapore, Robert Keng Heong Lian, Loi Soh Loi

Journal of Actuarial Practice (1993-2006)

Like many other countries, including the United States, Singapore faces the dual problems of rising health care costs and an aging population. To cope with these problems, the Singapore government introduced the Medishield scheme in 1989 that provides low cost catastrophic medical insurance coverage. The scheme suffers from a serious deficiency, however: coverage ceases at age 70. This deficiency is exacerbated by Medishield's premium payment structure which is akin to the premium structure of a one year renewable term policy so no reserves are developed. As a result, coverage beyond age 70 requires exorbitant premiums that are beyond the reach …

Nonmedical Limits In Individual Life Insurance, James B. Ross, Shalini E. Perumpral

Journal of Actuarial Practice (1993-2006)

This paper shows data that illustrate the substantial variation among nonmedical schedules and the dramatic increase in their amount limits from 1972 through 1992. Coefficients of variation are analyzed for several data subsets. We find that the variation of schedules in the sample of all firms has increased throughout the 1972-1992 period for issue ages up to 30, but has declined for issue ages beyond 30 during the 1982-1992 period. For the non-New York and stock companies our statistical tests indicate an increase in the variability of schedules over the full period 1972 to 1992.

Pension Funding By Normal Costs Or Amortization Of Unfunded Liabilities, Keith P. Sharp

Journal of Actuarial Practice (1993-2006)

We discuss the extent of the actuary's freedom in choosing the funding method for defined benefit pension plans. In particular, we look at funding through a combination of normal costs, amortization of an unfunded liabilities, and fund of assets. The IRS constraint on "reasonable funding methods" is considered, with particular mention of the aggregate entry age normal method. In addition, an algebraic development is performed of year-to-year changes in the status of a plan's funding.

Quality Of Life Of Rural Nebraskans: How Are They Doing And What Is In The Future?, John C. Allen, Sam Cordes, Amy M. Smith, Matt Spilker, Amber Hamilton

Rural Futures Institute: Publications

Includes

Executive Summary

Introduction

Methodology and Respondent Profile

Findings

Global Well-Being

Change in the Modern World

Personal Well-Being

Availability of Services and Amenities

Dissatisfaction with Services and Amenities

Dissatisfaction with Services/Amenities by Region

Dissatisfaction with Services/Amenities by Community Size

Dissatisfaction with Services/Amenities by Income Level

Conclusions

Environmental Issues And Perceptions Of Rural Nebraskans, John C. Allen, Sam Cordes, Amy M. Smith, Mike Spilker, Amber Hamilton

Rural Futures Institute: Publications

Includes

Executive summary

Introduction

Methodology

Respondent profile

Findings

The State's Role in Groundwater Protection

Regulation and Compliance Costs

Agriculture and the Environment

Conjunctive Use

Conclusions

What We Say In The Naic Annual Statement Blank Actuarial Opinion, Kenneth W. Faig Jr.

Journal of Actuarial Practice (1993-2006)

The new language adopted for the actuarial opinion in the National Association of Insurance Commissioners' model actuarial opinion and memorandum regulation has been weakened at the same time the responsibilities of the opining actuary have been increased. The restoration of stronger language to the actuarial opinion would enhance the professional image of the actuary. If the legal environment for professional liability inhibits such a change, the opinion should be changed to describe more precisely the work performed and the conclusion reached by the actuary.

Third Party Administrator (Tpa) Service Pricing And Incentive Contracts, Hou-Wen Jeng

Journal of Actuarial Practice (1993-2006)

This paper addresses a few of the most important pricing issues faced by a third party administrator (TPA) whose main responsibility is claims handling for self·insured employers and self·insured groups. Such pricing issues include the development of service fees using claim closure information, the selection of service durations, and the design of incentive (either activity-based or financially-based) service contracts. Formulas for pricing new and open claims are provided.

Disclosure And Confidentiality Requirements Of Corporate Pension Plan Actuaries, Theodore Konshak

Journal of Actuarial Practice (1993-2006)

Corporate pension plan actuaries are subject to the standards of the Joint Board for the Enrollment of Actuaries. The Joint Board is empowered to establish such standards under the provisions of the Employee Retirement Income Security Act of 1974, a federal law. In consideration of these statutory standards, this article will discuss whether standards published by professional actuarial organizations have any applicability. The contrast between the disclosure requirements of federal law and the confidentiality standards of the Society of Actuaries will be highlighted.

Asset Allocation In Investing To Meet Liabilities, Anthony Dardis, Vinh Loi Huynh

Journal of Actuarial Practice (1993-2006)

We present some rudimentary concepts on asset/liability management and describe an approach to asset allocation modeling for institutions that invest to meet liabilities. The traditional risk/reward framework of financial economics is used as a starting pOint. The definitions of risk and reward are then refined with regard to the institution under consideration. A simple model of a U.S. life office is examined. We assume that the only investments available are domestic stocks and long-dated government bonds. Stochastic simulation is used to create a large number of future investment scenarios using historical total return data for these asset classes. The ability …

Concentration In American Property-Casualty Companies, Edward Nissan

Journal of Actuarial Practice (1993-2006)

A Theil's entropy index utilizing premiums written as units is employed to measure trends in concentration of the largest 200 property-casualty companies in the United States between 1985 and 1993 based on Best's Insurance Report data. Each of the indexes confirms that concentration trends experienced no increase for the whole period for all 200 firms, the top 20, and subsets of lower ranked companies. Significant differences are observed, however, between groups of companies for the same period.

Methodologies For Determining Reserve Liabilities In The Workers Compensation High Deductible Program, Jerome J. Siewert

Journal of Actuarial Practice (1993-2006)

In this paper I describe several approaches for estimating liabilities under a high deductible program, including a proposal for a more sophisticated approach relying upon a loss distribution model. The discussion addresses several related issues dealing with deductible size and mix, absence of longterm histories, and the determination of consistent loss development factors among deductible limits. In addition, I propose several approaches for estimating aggregate loss limit charges, if any, and the asset value for associated servicing revenue.

Participating Gics: Performance Attribution Analysis, Alec Stais, John P. Toohey Iii

Journal of Actuarial Practice (1993-2006)

The increasing popularity of participating GICs has created a need for an objective understanding of their performance. The fixed income attribution techniques are not adequate for measuring participating GIC performance because they typically restrict performance measurement to concepts such as duration management, sector rotation, and issue selection. We develop an attribution technique based on four components or effects that are helpful in explaining the changes in credited rates. They are the constant duration effect, the reinvestment effect, the cash flow effect, and the investment effect. The underlying mathematical approach to calculating these effects is presented along with examples.

Bias Of Excluding High And Low Data For Long-Tailed Distributions, Cheng-Sheng Peter Wu

Journal of Actuarial Practice (1993-2006)

Property and casualty actuaries frequently employ a technique of averaging (called high-low averages) that excludes the same amount of data at both ends. For example, (0 in selecting loss development factors, the middle three of the latest five years or the middle eight of latest 12 quarters sometimes are used, or (ii) in calculating average expense ratios, the largest expense ratios and the smallest expense ratios may be removed from the sample. Although highlow averages can reduce the impact of influential data on analyzed results, the averages will result in downward bias when they are applied to pricing or reserving …

An Approach To Estimating Market Value And Duration Of Interest-Sensitive Whole Life Contracts, Thomas J. Merfeld

Journal of Actuarial Practice (1993-2006)

A fixed premium interest·sensitive whole life contract is analyzed in order to estimate its market value. In addition, using various definitions of duration, we determine the duration of the contract for each definition. The results of this analysis have implications for market value accounting of life insurance liabilities and for life company portfolio management.

Nonmedical Limits In Individual Life Insurance, James B. Ross, Shalini E. Perumpral

Journal of Actuarial Practice (1993-2006)

This paper shows data that illustrate the substantial variation among nonmedical schedules and the dramatic increase in their amount limits from 1972 through 1992. Coefficients of variation are analyzed for several data subsets. We find that the variation of schedules in the sample of all firms has increased throughout the 1972-1992 period for issue ages up to 30, but has declined for issue ages beyond 30 during the 1982-1992 period. For the non-New York and stock companies our statistical tests indicate an increase in the variability of schedules over the full period 1972 to 1992.

Nebraskan Work Patterns And Available Benefits, John C. Allen, Sam Cordes, Amy M. Smith, Matt Spilker, Amber Hamilton

Rural Futures Institute: Publications

Includes

Executive Summary

Introduction

Methodology

Respondent Profile

Findings

Nebraskans and Work

Rural Nebraskans and Benefits