• Korean Journal of Organic Agriculture
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• v.28 no.4
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• pp.459-475
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• 2020

This study analyzes weather derivatives as an alternative risk management tool to stabilize farm revenue to complement the existing crop insurance program which suffers from asymmetric information problems such as adverse selection, moral hazard, and verifiability. We estimated apple yield functions to observe the relationship between yields and weather indices such as temperature and precipitation. Based on the estimated yield functions we designed weather futures and options products underlying temperature and precipitation, and calculated the prices of futures and options by two different approaches, historical distribution and Monte Carlo simulation. We found that weather futures and options stabilize farm revenue based on the estimated four risk indicators: Coefficient of Variation, Value at Risk, Certainty Equivalence, and Risk Premium. As a result, weather derivatives could be considered as a potential farm risk management tool through studying more in legal and institutional strategies and developing various derivatives products.

• Journal of Haehwa Medicine
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• v.19 no.2
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• pp.13-24
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• 2011

The medical profession has the problem of lack of bioethics, due to the expansion of capitalism and mannerism after modernization. Therefore, the need of education of bioethics is increasing, however, the cramming system of education is insufficient for promoting personal morals. So the author studied ancient and present bioethics and searched for the cause of current bioethics absence and the method of overcoming it. Especially, studying the vocational features of oriental medical doctor as profession and the problems of education of bioethics in oriental medical college, the author searched for the directions of educations of bioethics. The conclusions are as follows. The current medical profession have ethical problems because of social moral hazard, evils of capitalism, change of doctor-patient relationship due to expansion of consumerism, limitation of autonomy due to commercialize of hospitals, decrease of knowledge monopolism of professionals, moral indifference and frailty, and a missdeed preference. The education of bioethics needs "Rest's 4 components" but the current education of bioethics in oriental medicine college lacks of time and is composed of the cramming system of education. So it needs various types of education system. Morals are subjective and discretionary personal character. Therefore, informational education is insufficient for enhancing morals and complex education for various personal attainments (various social indirect experience, philosophical speculation, mental serenity) is needed. It has to be done on the basis of educational method by experience not lecture, long term expectation, and basic understanding of bioethics.

• KDI Journal of Economic Policy
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• v.30 no.2
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• pp.99-128
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• 2008

Nearly all Koreans are insured through National Health Insurance(NHI). While NHI coverage is nearly universal, it is not complete. Coverage is largely limited to minimal level of hospital and physician expenses, and copayments are required in each case. As a result, Korea's public insurance system covers roughly 50% of overall individual health expenditures, and the remaining 50% consists of copayments for basic services, spending on services that are either not covered or poorly covered by the public system. In response to these gaps in the public system, 64% of the Korean population has supplemental private health insurance. Expansion of private health insurance raises negative externality issue. Like public financing schemes in other countries, the Korean system imposes cost-sharing on patients as a strategy for controlling utilization. Because most insurance policies reimburse patients for their out-of-pocket payments, supplemental insurance is likely to negate the impact of the policy, raising both total and public sector health spending. So far, most empirical analysis of supplemental health insurance to date has focused on the US Medigap programme. It is found that those with supplements apparently consume more health care. Two reasons for higher health care consumption by those with supplements suggest themselves. One is the moral hazard effect: by eliminating copayments and deductibles, supplements reduce the marginal price of care and induce additional consumption. The other explanation is that supplements are purchased by those who anticipate high health expenditures - adverse effect. The main issue addressed has been the separation of the moral hazard effect from the adverse selection one. The general conclusion is that the evidence on adverse selection based on observable variables is mixed. This article investigates the extent to which private supplementary insurance affect use of health care services by public health insurance enrollees, using Korean administrative data and private supplements related data collected through all relevant private insurance companies. I applied a multivariate two-part model to analyze the effects of various types of supplements on the likelihood and level of public health insurance spending and estimated marginal effects of supplements. Separate models were estimated for inpatients and outpatients in public insurance spending. The first part of the model estimated the likelihood of positive spending using probit regression, and the second part estimated the log of spending for those with positive spending. Use of a detailed information of individuals' public health insurance from administration data and of private insurance status from insurance companies made it possible to control for health status, the types of supplemental insurance owned by theses individuals, and other factors that explain spending variations across supplemental insurance categories in isolating the effects of supplemental insurance. Data from 2004 to 2006 were used, and this study found that private insurance increased the probability of a physician visit by less than 1 percent and a hospital admission by about 1 percent. However, supplemental insurance was not found to be associated with a bigger health care service utilization. Two-part models of health care utilization and expenditures showed that those without supplemental insurance had higher inpatient and outpatient expenditures than those with supplements, even after controlling for observable differences.

• The Journal of the Korea Contents Association
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• v.17 no.4
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• pp.585-595
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• 2017

The purpose of this study is to analyze the difference of medical care between medical assistance and health insurance patients to evaluate the increase of medical care costs due to the moral hazard of medical care patients and to provide a basis for rational medical care policy decision. For this purpose, we compared health insurance benefit data for Seoul citizens by gender, age, and type of medical institutions. The results of the analysis are as follows. First, all of the hospitalized and outpatient use of the advanced general Hospitals, medical assistance patients were less than those of the health insurance patients, so that the medical assistance patients could not use the high cost medical services. Second, in general hospitals, patients with health insurance are often hospitalized. On the other hand, medical assistance patients use a lot of outpatient services because they are less burdened. Third, in hospitals and clinics, medical benefits patients often use inpatient and outpatient services. Therefore, medical assistance patients are likely to use unnecessary medical care of outpatient and hospitalization clinics and hospitals, outpatient of general hospitals. But, in hospitalization and outpatient use in advanced general hospitals and medical assistance patients can not use due to excessive medical burden. Therefore, the policy to reduce the burden of medical expenses for patients with severe illness will continue, and the medical care patients using clinics and hospitals should be careful not to use unnecessary medical services.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.17 no.4
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• pp.615-621
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• 2016

This study examines whether there is agency cost in a public R&D subsidy program by applying agency theory. If there is agency cost, the composition ratio of the government subsidy and the firm's own R&D fund would have a significant (-) effect on technological performance. Companies that received a public R&D subsidy in Korea from 2000 to 2009 were selected as a sample. Frequency analysis and multiple regression analysis were used. The independent variables was the ratio of public R&D subsidy cost to the Firm's own R&D cost, and the dependent variables were the number of patent applications and the number of patents registered. The control variables were firm size and R&D cost. The results show that there are agency problems in the government-sponsored R&D system. A future study is needed to examine how much agency problems deteriorate the efficiency of the system.

• Journal of Information Technology Applications and Management
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• v.21 no.3
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• pp.119-133
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• 2014

Prior to the 2000s, internal control had not been among the high priority issues in the management's agenda. Since then, however, it has become one of the hottest issues, and has received a significant attention as the means of improving the transparency, sustainability, and competitiveness of a company. The objectives of this paper are to examine if there has been any noticeable changes in the level of internal controls of Korean companies before and after the 2010, and to analyze the underlying drivers and issues thereto. Accounting manipulation and moral hazard were among the factors to cause the Korean financial crisis in 1997 and 2008. Since then, the capital market has had a strong pressure on Korean companies to enhance the transparency of management and accounting while the government has made the laws, requirements, and recommendations to alleviate the moral hazard problems of management and enhance the accounting transparency. Both market and government have driven companies to put more priority on the reliability of financial reporting and the compliance of applicable laws and regulations. Thereby, the market and governmental forces has led companies to enhance the level of internal controls which contribute to the reliability of financial reporting and the compliance The pressure on companies to enhance the level of internal controls may be different across industries. The capital market and government experiencing the severe financial crisis in 1997 and 2008 put even more pressure on financial companies such as banks to upgrade the reliability of financial reporting and the compliance of regulations to the global level than on non-financial companies. A survey is performed on the changes in the level of internal controls of 54 major companies consisting of 10 financial and 44 non-financial companies in Korea. The survey results show that the average level of internal controls of Korean companies has noticeably improved and that the change in the level of control environment factor is higher than that of IT control factor. The analysis on the industry differences shows that financial companies increased the level of control environment factor more than non-financial companies did while non-financial companies upgraded the level of IT control factor more than financial companies did relatively. Among internal control categories, the most improved area since the economic crisis is "Risk Assessment." The global best practices for risk management have been developed primarily in the financial industry and then spread to other industries. The general level of control practices of Korean companies has been improving significantly, but still appears below the global advanced practices.

• Health Policy and Management
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• v.14 no.2
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• pp.99-116
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• 2004

This study estimates the determinants of national health expenditures of OECD countries using panel regression method. The data used are OECD Health Data(2003) covering 33 countries and from 1970 to 2001. This study shows several important different results compared to the previous studies. Further this study estimates the determinants of Korean case using data from 1m to 2000, and compare with the results of OECD panel. The main findings are as follows. The income elasticity of health expenditures is estimated below 1.0, but is shown above 1.0 when the different health systems of each country are controlled. The women's labor participation influences strongly positive effect on the health expenditures. The diffusion of new technologies is positively related with the increasing expense. The increasing government expenditures have a tendency not to contain health expenses, but to increase expenses. The expansion of public health insurance holders is containing the expenses, and the increasing number of doctors is pushing expenditures. This implies the health expenditures are influenced more by the induced demand of providers rather than the moral hazard of patients. However, the above result is opposite in Korean case. The existence of primary care doctors affects slightly up warding rather than containing expenditures. Finally the determinants are seriously depending upon which factors are included in the model and which statistical model is chosen. Therefore it must be cautious to interpret the results of statistical model.

• The Korean Journal of Financial Studies
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• v.6 no.1
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• pp.269-287
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• 2000

본 연구에서는 미국 상장은행의 자산 부채포오트폴리오 구성의 위험분산(risk diversification)과 도덕적해이(moral hazard)에 관한 실증적 분석을 행하였다. 실증적 분석의 결과 은행의 금기(今期)의 위험분산과 금기(今期) 이후의 위험추구 간에는 유의적인 양(陽)의 관계가 있음을 발견하였다. 즉 위험분산의 정도가 커서 투자가들로부터 파산가능성이 낮을 것으로 여겨지며, 따라서 위험증가에 따른 자본조달비용(예금이자율)의 증가라는 시장에서의 억제기능(market discipline)이 효과적으로 부과되지 못하는 은행들은 이러한 이점들을(특히 시장관련-체계적) 위험성이 높은 정책을 추구함으로써 수익을 증가시키려는 도덕적해이의 동기를 가지고 있음을 알 수 있었다. 선행연구에서의 논리대로 은행규모의 대형화가 자산 부채포오트폴리오 구성의 위험분산을 크게 하는 주요한 원인 중의 하나라면, 본 연구에서의 결과는 은행산업의 불건전한 재무구조와 그로 인한 금융질서의 혼란, 나아가 국가경제 전체의 혼란을 겪고 있는 한국 금융산업의 현주소, 즉 부실은행을 퇴출시키고 인수 합병에 의한 대형선도 은행(leading banks)중심으로 은행산업을 재편하는 한국금융산업의 구조조정에 있어 간과되어서는 안 될 중요한 정책적 시사점을 제시해 주고 있다고 하겠다. 즉 도덕적해이의 감소에 대한 제도적인 유인장치가 없는 단순한 인수 합병에 의한 은행의 자산규모의 증가가 반드시 은행산업의 구조적 안정에 기여할 것이라고 기대할 수는 없을 것이다. 대형은행의 자산 부채포오트폴리오 구성의 위험분산의 이점과 이로 인한 투자가들의 대형은행의 위험추구행위에 대한 감시동기의 부족, 이로 인한 도덕적해이가 필연적으로 발생하는 현상이라면, 도덕적해이의 감소에 대한 추가적인 유인책 없는 단순한 자산규모의 증가는 인수 합병을 통하여 탄생한 대형선도 은행들의 또 다른 도덕적해이를 낳을 가능성이 크기 때문이다.

• KDI Journal of Economic Policy
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• v.33 no.2
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• pp.81-110
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• 2011

Credit rating agencies(CRAs) are accused of failing to provide accurate and fair credit ratings and hence being responsible for the crisis. This paper tries to add on to the literature on credit rating reform through examining the CRAs in a model where rating quality is unobservable. We show that unobservability of rating effort results in the sub-optimal level of quality. Then the paper extends the model to incorporate ancillary services, competition and reputation. We show that ancillary services worsen the conflict of interests of the CRAs and that competition and reputation may not be strong enough to discipline the CRAs. Hence regulatory oversight and imposition of liability may be necessary in order to increase the accuracy of ratings.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.9
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• pp.179-189
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• 2020

The paper empirically examines the bank-specific determinants of loan growth in the Vietnamese banking system for the period from 2007 to 2019. We approach the CAMELS framework and employ the dynamic panel regression to determine the effects of each CAMELS factor on bank lending. To ensure the robustness of results, we also use alternative definitions of the variables and different specifications with and without full sets of CAMELS components. With these settings, we display multiple important results. (i) We find that a large capital buffer tends to boost bank lending expansion faster. (ii) High asset quality might positively contribute to high loan growth; in other words, banks subject to high credit risk are discouraged from making loans. (iii) Less efficiently managed banks are more likely to adopt an aggressive lending strategy, highlighting the moral hazard incentives of Vietnamese banks. (iv) More profitable banks with excellent competitive advantages could expand their lending activities to a larger extent. (v) Liquidity is positively related to the loan growth of banks. (vi) Perceived interest rate risk tends to suppress loan growth since interest-rate-sensitive banks might be concerned about the adverse effects of unpredictable adverse changes in interest rates in the future.