Finance

The Unbanked: Evidence from Indonesia

The Unbanked: Evidence from Indonesia
October   World Bank Economic Review 22(3): 517-537

Morduch, J. & Jonston Jr., D.
10/01/2008

To analyze the prospects for expanding financial access to the poor, bank professionals assessed 1,438 households in six provinces in Indonesia to judge their creditworthiness. About 40 percent of poor households were judged creditworthy according to the criteria of Indonesia's largest microfinance bank, but fewer than 10 percent had recently borrowed from a microbank or formal lender. Possessing collateral appeared as a minor determinant of creditworthiness, in keeping with microfinance innovations. Although these households were judged able to service loans reliably, most desired small loans. Calculations show that the bank, given its current fee structure and banking practices, would lose money when lending at the scales desired. So, while innovations have helped to extend financial access, it remains difficult to lend in small amounts and cover costs.

"What You Don't Know Can't Help You: Worker Knowledge and Retirement Decision-Making"

"What You Don't Know Can't Help You: Worker Knowledge and Retirement Decision-Making"
Review of Economics and Statistics, volume 90(2), May 2008

Chan, S. & Stevens, A.H.
05/01/2008

This paper provides an answer to an important empirical puzzle in the retirement literature: while most people know little about their own pension plans, retirement behavior is strongly affected by pension incentives. We combine administrative and self-reported pension data to measure the retirement response to actual and perceived financial incentives and document an important role for self-reported pension data in determining retirement behavior. Well-informed individuals are far more responsive to pension incentives than the average individual. Ill-informed individuals seem to respond systematically to their own misperceptions of pension incentives.

Equity and Accountability: The Impact of State Accountability Systems on School Finance

Equity and Accountability: The Impact of State Accountability Systems on School Finance
Journal of Public Budgeting & Finance, 28 (3): 1-22

Rubenstein, R. & Ballal, S., Stiefel, L., Schwartz, A.E.
01/01/2008

Using an 11-year panel data set containing information on revenues, expenditures, and demographics for every school district in the United States, we examine the effects of state-adopted school accountability systems on the adequacy and equity of school resources. We find little relationship between state implementation of accountability systems and changes in school finance equity, though we do find evidence that states in which courts overturned the school finance system during the decade exhibited significant equity improvements. Additionally, while implementation of accountability per se does not appear linked to changes in resource adequacy, states that implemented strong accountability systems did experience improvements.

Improving The Management Of Care For High- Cost Medicaid Patients

Improving The Management Of Care For High- Cost Medicaid Patients
Health Affairs, Nov/Dec 2007, Vol. 26 Issue 6, p1643-1655, 13p.

Billings, J. & Mijanovich, T.
11/01/2007

The article discusses the improvement of care management for high-cost Medicaid patients. It explores on Medicaid budgets which have prompted policymakers to redouble efforts to explore ways of boosting efficiency in care delivery, particularly for people with high-cost and chronic conditions. It also illustrates John Billings and Tod Mijanovich's article which examines the cost-effectiveness of care management for chronic disease patients treated in fee-for-service practice. The authors present an algorithm that identifies patients at high risk of future hospitalizations and offer a business-case analysis about the rate of reduction in future hospitalization and the cost of the intervention.

Options for Budget Reform in New York State

Options for Budget Reform in New York State
Citizens Budget Commission, October

Brecher, C. & CBC Staff.
10/01/2007

This background paper focuses on the greater accountability and transparency in fiscal decision making. It has been prepared to inform discussion among the participants at the first CBC agenda setting conference, scheduled for September 20, 2007. The paper is organized into three sections. The first is a definition of the problem; it defines in some detail the limited accountability and transparency that have characterized the New York State budget process in past years. The second section describes the progress made in addressing these problems during recent legislative sessions, focusing particularly on the 2007 session. The last section describes options that can be pursed in 2008 and subsequently to make even more substantial progress. The options are not all mutually exclusive, but they are relatively numerous. Conference participants are asked to review these options for discussion in the forum on September 20. The views expressed by experts attending the forum will be considered in the preparation of a final document that will summarize recommended actions for State leaders.

A Prescription for Getting the MTA on the Right Fiscal Track

A Prescription for Getting the MTA on the Right Fiscal Track
The Stamford Review, Fall, pp. 27-24.

Brecher, C. & Mustovic, S.
09/01/2007

Typically when an asset is acquired it is assigned a "useful life" representing the amount of time it can be expected to stay in use. Then a fraction of the asset's purchase price, equal to one year of its "useful life," is counted as an annual expenditure called depreciation. The MTA's depreciation schedules are based upon estimated useful lives of 25 to 50 years for buildings, two to 40 years for equipment, and 25 to 100 years for infrastructure. Most subway cars are depreciated over 30 years and buses over 12 years. Setting aside money equal to the value of depreciation, known as "funding depreciation," is a way of ensuring that an organization has adequate capital to replace assets at the end of their useful life. In contrast, failing to fund depreciation enables an organization to meet its cash expenses each year without having a budget that is balanced under generally accepted accounting principles. However, the adverse consequence of this practice is a shortage of capital and a resulting need to borrow in order to replace depreciated assets. This is the path the MTA routinely takes.

The Political Economy of School Choice: Support for Charter Schools Across States and School Districts

The Political Economy of School Choice: Support for Charter Schools Across States and School Districts
Journal of Urban Economics, July 2007, Vol. 62 Issue 1, p27-54, 28p.

Stoddard, C. & Corcoran, S.P.
07/01/2007

Public charter schools are one of the fastest growing education reforms in the US, currently serving more than a million students. Though the movement for greater school choice is widespread, its implementation has been uneven. State laws differ greatly in the degree of latitude granted charter schools, and-holding constant state support-states and localities vary widely in the availability of and enrollment in these schools. In this paper, we use a panel of demographic, financial, and school performance data to examine the support for charters at the state and local levels. Results suggest that growing population heterogeneity and income inequality-in addition to persistently low student outcomes-are associated with greater support for charter schools. Teachers unions have been particularly effective in slowing or preventing liberal state charter legislation; however, conditional on law passage and strength, local participation in charter schools rises with the share of unionized teachers.

Financial Management for Nurse Managers and Executives

Financial Management for Nurse Managers and Executives
3rd Edition, W.B. Saunders/Elsevier, Spring

Finkler, S.A., Kovner, C.T. & Jones, C.
04/01/2007

Covering the financial topics all nurse managers need to know and use, this book explains how financial management fits into the healthcare organization. You'll study accounting principles, cost analysis, planning and control management of the organization's financial resources, and the use of management tools. In addition to current issues, this edition also addresses future directions in financial management.

Financial Performance and Outreach: A Global Analysis of Leading Microbanks

Financial Performance and Outreach: A Global Analysis of Leading Microbanks
Economic Journal, February 2007, Vol. 117, Issue 517, pp. F107-F133

Morduch, J., Cull, R. & Demirguc-Kunt, A.
02/01/2007

Microfinance promises to reduce poverty by employing profit-making banking practices in low-income communities. Many microfinance institutions have secured high loan repayment rates but, so far, relatively few earn profits. We examine why this promise remains unmet. We explore patterns of profitability, loan repayment, and cost reduction with unusually high-quality data on 124 institutions in 49 countries. The evidence shows the possibility of earning profits while serving the poor, but a trade-off emerges between profitability and serving the poorest. Raising fees to very high levels does not ensure greater profitability and the benefits of cost-cutting diminish when serving better-off customers.

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