13 December 2017
Medicaid financing formulas can shift hundreds of dollars per capita from losing to “winning” states. Jeffrey Clemens
and Benedic Ippolito
find that during the Great Recession, the current matching system reduced state budget shortfalls by 2 to 3.5 percent of own-source revenues relative to an acyclical block grant system.
12 December 2017
Large mutual funds with comparatively stable funding are more likely than other funds to invest in unicorns — highly valued, privately held start-ups — according to a study by Sergey Chernenko
, Josh Lerner
, and Yao Zeng
. Having to manage their liquidity more carefully than venture capital investors, the mutual funds require stronger redemption rights.
11 December 2017
In the U.S., nearly 11 percent of school-age children have been diagnosed with ADHD, and approximately 10 percent of children with asthma — numbers that have risen inexplicably in the last decade. The increase is concentrated in the Medicaid caseload. Anna Chorniy
, Janet Currie
, and Lyudmyla Sonchak
find that the widespread change in Medicaid programs from fee-for-service reimbursement to managed care contributed to the increase.
8 December 2017
Italy’s labor productivity stopped growing in the mid-1990s. An analysis by Bruno Pellegrino
and Luigi Zingales
suggests that this was likely caused by the failure of Italian firms to take full advantage of the revolution in information and communications technology. Lack of meritocracy in the selection and rewarding of managers due to familyism and cronyism may have contributed to this outcome.
7 December 2017
Offshore activities by multinational U.S. firms have modest positive effects on domestic employment, according to research by Brian K. Kovak
, Lindsay Oldenski
, and Nicholas Sly
. A 10 percent increase in offshore affiliate employment induced by a bilateral tax treaty is associated with a 1.8 percent increase in employment at the U.S. parent firm, with smaller effects at the industry and regional levels.