Business Commons^™

Sustained Growth In Nebraska, Saeed Ahmad, John Austin, Tom Doering, Ernie Goss, Bruce Johnson, Mike Lundeen, Donis Petersan, Franz Schwarz, Eric Thompson, Keith Turner

Business in Nebraska

National Macroeconomic conditions are favorable for future expansion of income, employment, and revenue in Nebraska. In particular, the U.S. economy is now in the heart of an expansion expected to persist over the three year forecast period. The principal engine of growth will be a sustained expansion in private sector investment and consumption demand.

However, the rate of growth in the national economy likely will be moderate rather than rapid. At least three factors will act to moderate growth. The first is higher energy prices. Rapid growth in global demand is expected to keep prices for oil and natural gas …

The Importance Of Marketing And Total Quality Management In Libraries, Rajashekhar D. Kumbar

E-JASL 1999-2009 (Volumes 1-10)

Introduction

Herb White, states in Library Journal, “... it should be fairly clear that librarians do not market and that they never have marketed.” He concludes, “What we need to tell people is not how wonderful our public libraries are but rather how wonderful they could be. The awakening of these dreams is the purpose of marketing” (Besant & Sharp, 2000). Since the 1960’s, the most widely taught marketing concept was the marketing mix theory: the 4Ps (product, price, place and promotion)—so clean, so neat, so inappropriate for libraries. Marketing theory cannot always be so succinctly described since relationships …

The Role Of Relational Knowledge Stores In Interfirm Partnering, Jean L. Johnson, Ravipreet S. Sohi, Rajdeep Grewal

Department of Marketing: Faculty Publications

Drawing on the notions of relational capabilities and absorptive capacity, the authors examine the effects of interactional, functional, and environmental knowledge stores on relationship quality and relationship portfolio effectiveness. The results suggest that the knowledge stores affect the outcome variables differently and that the effects vary by levels of industry turbulence.

Network Consequences Due To Oligopolists And Oligopsonists In The Hog Industry, Pollution From Hog Production, And The Failure To Regulate Ecological Criteria, F. Gregory Hayden

College of Business: Faculty Publications

Humans have been in a symbiotic relationship with hogs since the time humans became a species. That relationship evolved into a set of transactional (as defined by instrumentalists) processes beginning with the hunter-gatherer tribes. The network of relationships has continued to become more numerous, intense, and complex. Hogs have served in social systems with humans as societal symbols for prowess for numerous groups (with wild boars, for example, on coats of arms in Europe), as religious symbols (both positive and negative), as a source of human disease in the hog-chicken-human cycle for generating flu in Asia, and, more recently, as …

What Students Remember And Say About College Economics Years Later, Sam Allgood, William Bosshardt, Wilbert Van Der Klaauw, Michael Watts

College of Business: Faculty Publications

In his presidential address to the American Economic Association, George Stigler (1963) offered the provocative hypothesis that students would retain very little knowledge from principles courses in economics five years or more after taking the courses. The few empirical studies that have been published on this topic generally found no or small lasting effects, at least for those who took fewer than four courses (see e.g., G. L. Bach and Phillip Saunders, 1965; Gerald J. Lynch, 1990). That raises even broader questions about the long-term effects of studying economics in college, in terms of individuals’ behavior as consumers, workers, and …

Mortgage Debt: The Good News, Donna M. Dudney, Manford Peterson, Thomas S. Zorn

Department of Finance: Faculty Publications

Executive Summary
• The usual advice given to the public by financial planners and the popular press is that less debt is better and in particular owning your own house outright is a desirable goal.
• We show that this advice is often wrong because mortgage debt acts as an inflation hedge. Mortgage debt also has a valuable refinancing option in case interest rates fall and an abandonment option if the value of the property declines.
• Mortgage debt is often seen simply as necessary because of people’s limited financial assets. Specifically, people can purchase a home only if they …

Journal Of Actuarial Practice, Volume 11, 2004, Colin Ramsay , Editor

Journal of Actuarial Practice (1993-2006)

ARTICLES (the entire volume)

Product Innovation in Financial Services: A Survey • Christopher O'Brien 5

Phased Retirement for Defined Benefit Plan Participants • Patricia L. Scahill and Jonathan Barry Forman . 43

The Actuarial Value of Life Insurance Backdating • James M Carson and Krzysztof M Ostaszewski . 63

Decision Tree Analysis of Terminated Life Insurance Policies • Robert Keng Heong Lian, Yuan Wu, and Hian Chye Koh . 79

A Comparative Study of Parametric and Nonparametric Estimators of Old-Age Mortality in Sweden • Peter Fledelius, Montserrat Guillen, Jens Perch Nielsen, and Kitt Skovsø Petersen 103

Estimation of Complete …

Measuring Cognitive Ability With The Overclaiming Technique, Delroy L. Paulhus, Peter D. Harms

Leadership Institute: Faculty Publications

The overclaiming technique requires respondents to rate their familiarity with a list of general knowledge items (persons, places, things). Because 20% of the items are foils (i.e., do not exist), the response pattern can be analyzed with signal detection methods to yield the accuracy and bias scores for each respondent. In Study 1, the accuracy index showed strong associations with two standard IQ tests (β = .50–.59). Study 2 replicated the validity of the accuracy index with IQ and showed coherent associations with school grades, peer ratings, and self-ratings. Study 3 ensured that the validity of the accuracy index is …

Journal Of Actuarial Practice - Volume 11 (2004) - Contents And Masthead

Journal of Actuarial Practice (1993-2006)

Contents

Editorial Policy: Topics suitable for this journal include AIDS, annuity products, asset-liability matching, cash-flow testing, casualty rate making, credibility theory, credit insurance, disability insurance, expense analysis, experience studies, FASB issues, financial reporting, group insurance, health insurance, individual risk taking, insurance regulations, international issues, investments, liability insurance, loss reserves, marketing, pensions, pricing issues, product development, reinsurance, reserving issues, risk-based capital, risk theory, social insurance, solvency issues, taxation, valuation issues, and workers' compensation

Review Process

Editor - Colin Ramsay, University of Nebraska

Associate Editors: Robert Brown, University of Waterloo ○ Cecil Bykerk, Mutual of Omaha ○ Ruy Cardoso, …

Estimation Of Complete Period Life Tables For Singaporeans, Siu-Hang Li, Wai-Sum Chan

Journal of Actuarial Practice (1993-2006)

Complete period life tables, with death rates for every year of age, are not available in Singapore. This study constructs such tables for Singaporeans from the limited mortality information contained in the abridged life tables provided by the Singapore Department of Statistics. We find that linear interpolation, Whittaker graduation, and the Coale-Kisker method together can generate complete life tables that are smooth and continuous. The validity of the complete life tables generated by our method is further confirmed by (1) comparing the life expectancies calculated from our estimated life tables with those provided by the Singapore Department of Statistics, and …

Rapid Calculation Of The Price Of Guaranteed Minimum Death Benefit Ratchet Options Embedded In Annuities, Eric R. Ulm

Journal of Actuarial Practice (1993-2006)

This paper presents a new method of obtaining quick and accurate values and deltas for discrete look back options using Taylor series expansions. This method is applied to the case of ratchet guaranteed minimum death benefits attached to annuity contracts, and the method is extended to include annuities where a fixed fund is attached to the variable account. Finally, both the speed and the accuracy of the method are compared to Monte Carlo simulation and the exact analytic solution. The Taylor expansion method is shown to be faster and, in most cases, more accurate than the alternative methods.

Approximating The Bias And Variance Of Chain Ladder Estimates Under A Compound Poisson Model, Janagan Yogaranpan, Sue Clarke, Shauna Ferris, John Pollard

Journal of Actuarial Practice (1993-2006)

We consider the problem of estimating the outstanding claims produced by a homogeneous general insurance portfolio. The specific model considered in this paper is one where the number of claims in any loss period follows a Poisson distribution, settlement delays follow the same multinomial distribution, and settlements are single lump sums that are independent identically distributed random variables. Simulations using this model reveal that the development ratios and the outstanding claims estimates produced using the chain ladder method are positively biased. We obtain approximate formulas for the biases using Taylor series expansions of the random variables about their means. The …

Phased Retirement For Defined Benefit Plan Participants, Patricia L. Scahill, Jonathan Barry Forman

Journal of Actuarial Practice (1993-2006)

The demographic makeup of the U.S. workforce is changing. The population between ages SS and 64 is projected to increase significantly by 2020, but employment rates for this age group have not been increasing. Employers will likely need to encourage critical employees in this age group to delay retirement. Phased retirement is one tool for delaying retirement, while also not continuing full-time employment, so it can be a compromise for employers and employees. Both Congress and two administrative agencies have begun to consider changes in pension laws and regulations that would be needed to accommodate phased retirement for employers who …

Recognition And Development Of Hope For South African Organizational Leaders, Fred Luthans, René Van Wyk, Fred Walumbwa

Department of Management: Faculty Publications

The significant challenges faced by South Africa at present are well known. How to deal with the problems from a political and economic perspective abound, but taking a psychological approach has been neglected. This paper proposes a positive approach to South African organizational leadership based on the psychological capacity of hope. After giving a brief background on the context surrounding South African organizations, the theory, research, and application of hope relevant to organizational leadership in the “Rainbow Nation” are presented and analyzed. Such an overlooked positive approach represented by hopeful organizational leaders seems needed at this juncture of South Africa’s …

The Actuarial Value Of Life Insurance Backdating, James M. Carson, Krzysztof Ostaszewski

Journal of Actuarial Practice (1993-2006)

Backdating is a common (and legal) practice in the U.S. whereby a life insurance contract bears a policy date that is prior to the actual application date. This practice often results in the opportunity for some insureds to reduce the annual premium paid. Using cash flow projections and U.S. mortality, lapse, and interest rate data, we provide a model of the actuarial value of term life insurance backdating. Results indicate that the benefits to the applicant of backdating a term life insurance policy increase as the applicant age (and hence premium) increases. Increasing mortality, lapse, and interest rates, as well …

Decision Tree Analysis Of Terminated Life Insurance Policies, Robert Keng Heong Lian, Yuan Wu, Hian Chye Koh

Journal of Actuarial Practice (1993-2006)

Statistical methods such as regression and survival analysis have traditionally been used to investigate the factors affecting the duration of terminated life insurance policies. This study explores a different approach: it uses a more recently developed data mining technique called decision trees. By sequentially partitioning the data to maximize differences in the dependent variable (duration in this study), the decision trees technique is good at identifying data segments with significant differences in the dependent variable. This identification can be useful when a company is trying to understand the factors driving or associated with the termination of life insurance policies. Decision …

Credibility Theory And Geometry, Elias S.W. Shiu, Fuk Yum Sing

Journal of Actuarial Practice (1993-2006)

We present a geometric approach to studying greatest accuracy credibility theory. Our main tool is the concept of orthogonal projections. We show, for example, that to determine the Buhlmann credibility premium is to find the coefficients of the minimum-norm vector in an affine space spanned by certain orthogonal random variables. Our approach is illustrated by deriving various common credibility formulas. Several equivalent forms of the credibility factor Z are derived by means of similar triangles.

A Comparative Study Of Parametric And Nonparametric Estimators Of Old-Age Mortality In Sweden, Peter Fledelius, Montserrat Guillen, Jens Perch Nielsen, Kitt Skovso Petersen

Journal of Actuarial Practice (1993-2006)

A recent study of Swedish old-age mortality used a modified GompertzMakeham model with a linear hazard for the force of mortality. We propose an alternative model using smooth two-dimensional kernel hazard estimators and introduce a new estimator based on the multiplicative bias correction for the multivariate marker dependent hazard. The multiplicative bias correction appears to have great potential for estimating mortality rates at the highest ages. We also observe that mortality continues to increase at an exponential rate even in old-age.

Product Innovation In Financial Services: A Survey, Christopher O'Brien

Journal of Actuarial Practice (1993-2006)

This paper considers product innovation in insurance and other financial services, an area where actuaries have an important role. It considers the proposition that there is no unique formula for success and that what works well in one situation may not work well in another. It first examines the sources of ideas for new products and, in particular, the role played by consumers, which is generally regarded as weak. It then looks at how ideas are implemented, with particular importance attributed to cross-functional teams and the formality of the product development process. Then it considers how success is measured (with …

Mutual Fund Tournaments: Evidence From Global And International Funds, Michael R. Melton, Thomas S. Zorn, Richard A. Defusco

Department of Finance: Faculty Publications

For a sample of global and international equity mutual funds, we test the proposition that managers likely to end up as “losers” manipulate fund risk differently from interim winners. In contrast with Brown, Harlow, and Starks (1996) who found robust support for the tournament model, we found no evidence of tournament like behavior for international and global mutual funds. A possible explanation of this behavior is that investors in these funds are primarily seeking diversification and therefore are less sensitive to relative performance.

Positive Psychological Capital: Beyond Human And Social Capital, Fred Luthans, Kyle W. Luthans, Brett C. Luthans

Department of Management: Faculty Publications

With the rising recognition of human resources as a competitive advantage in today’s global economy, human capital and, more recently, social capital are being touted in both theory, research, and practice. To date, however, positive psychological capital has been virtually ignored by both business academics and practitioners. “Who I am” is every bit as important as “what I know” and “who I know.” By eschewing a preoccupation with personal shortcomings and dysfunctions and focusing instead on personal strengths and good qualities, today’s leaders and their associates can develop confidence, hope, optimism, and resilience, thereby improving both individual and organizational performance.

Human, Social, And Now Positive Psychological Capital Management: Investing In People For Competitive Advantage, Fred Luthans, Carolyn M. Youssef

Department of Management: Faculty Publications

There is growing evidence that human resources are crucial to organizational success, and may offer the best return on investment for sustainable competitive advantage. Jeffery Pfeffer’s extensive work, summarized in his book The Human Equation, discusses substantially supported but unfortunate findings that only about half of today’s organizations and their managers believe that human resources really do matter. Moreover, only half of those organizations act upon their beliefs beyond paying lip service to this vital resource. Few organizations have adopted high performance work practices, such as 360-degree feedback, pay-for-performance, self-managed teams, employee empowerment, and other human-oriented initiatives. Furthermore, Pfeffer shows …

Unlocking The Mask: A Look At The Process By Which Authentic Leaders Impact Follower Attitudes And Behaviors, Bruce Avolio, William L. Gardner, Fred Walumbwa, Fred Luthans, Douglas R. May

Department of Management: Faculty Publications

The conceptual and empirical links between authentic leadership and follower attitudes, behaviors, and performance outcomes have not been fully developed. Although we have a number of articles developing the theory of authentic leadership and testing propositions that will appear in a forthcoming special issue of The Leadership Quarterly (Vol. 16, Issue 3, 2005), the focus of this article is to provide some of the initial foundation work for the broader theoretical framework of how authentic leaders influence follower attitudes, behaviors, and performance. Here, we draw from positive organizational behavior, trust, hope, emotion, identification, and identity theories to describe the processes …