Intermediate Payments Research Articles

방산업체 원가부정행위에 따른 페널티 부과 적정성에 관한 연구

When defence corruption occurs in the acquisition process of defence weapon system, the government imposes strong penalties on the companies. In particular, in the event of cost fraud, the industry and some media argue that it is an excessive measure, as it imposes excessive penalties such as sanctions against unfair profits and additional fees, sanctions against unfair skilled workers, profit reduction, prohibition of payment of start-ups and intermediate payments, and cancellation of certification. This is because defence companies that are the only customers in the government may face bankruptcy or closure due to excessive penalties if some minor errors occur. Naturally, if cost fraud occurs, it is necessary to take countermeasures, but it is time to analyze and review for excessive measures. The purpose o f this s tudy is to make policy proposals that can adequately present the excessive penalty of the triple, despite the responsibility for the cost misconduct of defence companies. For the development and export promotion of the defence industry, the direction related to the support and fostering polices of defence companies was presented.

A Multi-State Approach and Flexible Payment Distributions for Micro-Level Reserving in General Insurance

Insurance companies hold reserves to be able to fulfill future liabilities with respect to the policies they write. Micro-level reserving methods focus on the development of individual claims over time, providing an alternative to the classical techniques that aggregate the development of claims into run-off triangles. This paper presents a discrete-time multi-state framework that reconstructs the claim development process as a series of transitions between a given set of states. The states in our setting represent the events that may happen over the lifetime of a claim, i.e. reporting, intermediate payments and closure. For each intermediate payment we model the payment distribution separately. To this end, we use a body-tail approach where the body of the distribution is modeled separately from the tail. Generalized Additive Models for Location, Scale and Shape introduced by Stasinopoulos and Rigby (2007) allow for flexible modeling of the body distribution while incorporating co-variate information. We use the toolbox from Extreme Value Theory to determine the threshold separating the body from the tail and to model the tail of the payment distributions. We do not correct payments for inflation beforehand, but include relevant co-variate information in the model. Using these building blocks, we outline a simulation procedure to evaluate the RBNS reserve. The method is applied to a real life data set, and we benchmark our results by means of a back test.

How does the preference for increasing payments depend on the size and source of the payments?

It is well-known that subjects can exhibit a preference for increasing payments. Smith (2009a) makes a related prediction that the difference between the preference increasing wage payments and the preference for increasing non-wage payments will be largest for intermediate payments. We find evidence consistent with this prediction. Consistent with previous experiments, we find that the preference for increasing payments is increasing in the size of the payments. Also consistent with the literature, we find that the preference for increasing wage payments is stronger than the preference for non-wage payments.

Agent-based modeling of the effects of social norms on enrollment in payments for ecosystem services

Conservation investments are increasingly being implemented through payments for ecosystem services (PES) for the protection and restoration of ecosystem services around the world. Previous studies suggested that social norms have substantial impacts on environmental behaviors of humans, including enrollment of PES programs. However, it is still not well understood how social norms are affected by the design of PES programs and how the evolution of social norms may affect the efficiency of conservation investments. In this paper, we developed an agent-based simulation model to demonstrate the evolution and impacts of social norms on the enrollment of agricultural land in a PES program. We applied the model to land plots that have been enrolled in China's Grain-to-Green Program (GTGP) to examine reenrollment in an alternative payment program when the current payments ceased. The study was conducted in Wolong Nature Reserve where several thousand plant and animal species, including giant pandas, may benefit from the reenrollment. We found that over 15% more GTGP land can be reenrolled at the same payment if social norms were leveraged by allowing more than 10 rounds of interactions among landholders regarding their reenrollment decisions. With only three rounds of interactions, an additional 7.5% GTGP land was reenrolled at the same payment due to the effects of social norms. In addition, the effects of social norms were largest at intermediate payments and were smaller at much higher or much smaller payments. Even in circumstances where frequent interactions among landholders about their enrollment decisions are not feasible, policy arrangements that divide households into multiple waves for sequential enrollment can enroll over 11% more land at a given payment level. The approach presented in this paper can be used to improve the efficiency of existing PES programs and many other conservation investments worldwide.

Pay for Performance

Any time money changes hands in health care, perverse consequences can result. This fact of financial life applies to the entire spectrum of payment options, including the 2 methodologies that define its extremes: fee for service potentially rewards clinicians for doing more than patients need, whereas capitation potentially rewards them for doing less. Pay for performance is an intermediate payment approach with some attractive features, but it carries its own set of potential problems. In the absence of any perfect payment model, the challenge for leaders in health care is to understand the risks of various payment methods and consider how to mitigate them. Article see p 2978 This challenge has never been timelier. Interest in changing the payment system is approaching commitment because of the combination of rising healthcare costs, a historic economic downturn, and growing concern about the high proportion of Americans who are uninsured or underinsured. Pay for performance is widely considered a step in the right direction for the fragmented US healthcare system because it introduces incentives to clinicians and hospitals for more than the performance of visits, tests, and procedures. In its more rudimentary forms, pay for performance provides small (eg, 1% to 2%) bonuses for reduction of errors of underuse (eg, failure to measure low-density lipoprotein cholesterol in patients with diabetes mellitus) in their patient population. Just asking providers to worry about a population rather than just the individual patients who present with acute complaints is a subtle game-changer for American medicine. But pay for performance has limitations and raises concerns. At least in its early forms, it doesn’t seem to produce dramatic change. For example, hospitals that participated in a pay for performance demonstration project funded by the Centers for Medicare and Medicaid Services had 3% to 4% improvements in composite measures …

Solving optimal investment problems with structured products under CVaR constraints

We consider a simple investment problem where besides stocks and bonds the investor can also include options (or structured products) into the investment portfolio. The aim of the investor is to maximize the expected return under a conditional value-at-risk (CVaR) constraint. Due to possible intermediate payments, we have to deal with a re-investment problem which turns the original one-period problem into a multi-period one. For solving this problem, an iterative scheme based on linear optimization is developed.

Assessing Validity of the Basel II Model in Measuring Risk of Credit Portfolios

The paper assesses validity of credit loss distributions of client portfolios calculated by means of the Basel II model. The assessment method consists in parallel calculations the same distributions by means of exact probabilistic formulae. We found that Basel II model ensures correct assessments of credit loss distributions for medium and large portfolios of thirty or more one-period credits (credits without intermediate interest etc. payments). For small portfolios and individual one-period credits assessments of Basel II model are rough or extremely rough. Basel II model undervalues credit risk of portfolios of multi-period credits (credits with active period covering several years and intermediate payments). Exact models are more complex that Base ll model, but perfectly available for quick computer calculations. They can be used in bank practice ensuring flexible assessments of credit risk.

A SEEP (Security Enhanced Electronic Payment) Protocol Design Using 3BC, ECC (F), and HECC Algorithm

Unlike SET (Secure Electronic Transaction) protocol, this paper proposes a SEEP (Security Enhanced Electronic Payment) protocol, which uses ECC (Elliptic Curve Cryptosystem with F2m not Fp) (Koblitz, 1987; Harper, Menezes, & Vanstone, 1993; Miller, 1986), SHA (Secure Hash Algorithm), and 3BC (Block Byte Bit Cipher) instead of RSA and DES. To improve the strength of encryption and the speed of processing, the public key and the private key of ECC and HECC (Hyper Elliptic Curve Cryptosystem) are used in 3BC (Cho & Lee, 2002; Cho, Shin, Lee, & Lee, 2002) algorithm, which generates session keys for the data encryption. In particular, when ECC and HECC are combined with 3BC, the strength of security is improved significantly. As the process of the digital envelope used in the existing SET protocol is removed by the 3BC algorithm in this paper, the processing time is reduced substantially. In addition, the use of multiple signatures has some advantages, such as reducing the size of transmission data as an intermediate payment agent and avoiding the danger of eavesdropping of private keys.

Assessing Validity and Accuracy of the Basel II Model in Measuring Credit Risks of Individual Borrowers and Credit Portfolios

The paper assesses the validity and accuracy of measuring risks of individual borrowers and credit portfolios by means of the Basel II credit risk model. The assessment method consists in parallel estimation of the same risks by means of exact probabilistic models. We find that the Basel II model gives a correct estimate of the possible credit losses for medium and large portfolios of thirty or more one-period credits (credits without intermediate payments - interest etc.). For small portfolios and individual one-period credits the estimates of the Basel II model are inaccurate or very inaccurate. The model undervalues the credit risk of portfolios of multi-period credits (credits with active period covering several years and intermediate payments). This study presents an alternative view on some of the major Basel II concepts, such as correlation and probability of default (PD). This can lead to a better understanding and more flexible use of those concepts in assessing credit risks. The exact models are more complicated than the Base ll model, but quite suitable for rapid computer calculations. They can be used in bank practice, providing flexible assessments of credit risk.