Template-Type: ReDIF-Paper 1.0 Author-Name: Hoolda Kim Author-X-Name-First: Hoolda Author-X-Name-Last: Kim Author-Workplace-Name: Black Hills State University, School of Business Author-Name: Sophie Mitra Author-X-Name-First: Sophie Author-X-Name-Last: Mitra Author-Workplace-Name: Fordham University, Department of Economics Title: Dynamics of Health and Labor Incomes in Korea Abstract: This study aims to better understand the causal links between health and labor income among middle-aged and older adults. Much of the literature on health and employment consists of studies using data on young or working-age adults for the United States and European countries. This study focuses on Korean middle-aged and older adults (ages 45 to 74 years) and uses dynamic panel data models. With 12 waves of the Korea Welfare Panel Study collected from 2006 to 2017, we consider the heterogeneity of the results across demographic and socioeconomic groups. The sample is stratified by gender, age, urban-rural areas, poverty status, and marital status. Health is measured through self-reported health status. For middle-aged and older Koreans, better health is found to contribute to higher labor income for both men and women, particularly among married couples, the poor, and individuals aged 55 to 64. Labor income appears to benefit men’s health only, mainly those aged 65 to 74. Creation-Date: 2023 File-URL: https://archive.fordham.edu/ECONOMICS_RESEARCH/PAPERS/dp2023_01_kimmitra.pdf File-Format: Application/pdf Classification-JEL: I12, I31, J14, J16 Keywords: Health, Labor Income, Aging, Korea, Dynamic Panel Data Model Handle: RePEc:FRD:wpaper:DP2023-01er:DP2023-01 Template-Type: ReDIF-Paper 1.0 Author-Name: Hoolda Kim Author-X-Name-First: Hoolda Author-X-Name-Last: Kim Author-Workplace-Name: Black Hills State University, School of Business Author-Name: Sophie Mitra Author-X-Name-First: Sophie Author-X-Name-Last: Mitra Author-Workplace-Name: Fordham University, Department of Economics Title: The Economic and Health Effects of Long-term Care Insurance: New Evidence from Korea Abstract: With a rapidly aging global population, Long Term Care Insurance (LTCI) for older people is a pressing policy issue. While long-term care services are designed to assist people with limited functional ability, the breadth of coverage considerably varies from country to country. There is a debate on the costs of such programs and the adequacy of benefits. Understanding the impacts of LTCI programs is central to informing LTCI policies as few countries have embraced them. In 2008, the Korean government initiated a national public contributory LTCI program to help older people lead more independent and secure lives and support family caregivers. We use the Korean Welfare Panel Study (KOWEPS) and a difference-in-differences model combined with propensity score matching to assess the effect of the program on self-rated health, healthcare utilization, household expenditures, and savings. While older adults in beneficiary households tend to have better self-rated health and receive fewer regular health check-ups, those with inpatient visits tend to stay longer in the hospital compared to those in non-beneficiary households. We find that LTCI beneficiary households have lower savings and higher out-of-pocket healthcare expenses compared to non-beneficiary households. Overall, results suggest a positive effect of LTCI on self-rated health but detrimental effects on household out-of-pocket healthcare expenses and savings for those with less comprehensive health insurance coverage, the near-poor, and older singles. LTCI requires further research and policy attention in Korea and beyond. Creation-Date: 2023 File-URL: https://archive.fordham.edu/ECONOMICS_RESEARCH/PAPERS/dp2023_02_kimmitra.pdf File-Format: Application/pdf Classification-JEL: I13, I38 Keywords: Long term care, expenditures, saving, health, health insurance, older population, Korea Handle: RePEc:FRD:wpaper:DP2023-02er:DP2023-02 Template-Type: ReDIF-Paper 1.0 Author-Name: Miguel Acosta-Henao Author-X-Name-First: Miguel Author-X-Name-Last: Acosta-Henao Author-Workplace-Name: Central Bank of Chile Author-Name: Andres Fernandez Author-X-Name-First: Andres Author-X-Name-Last: Fernandez Author-Workplace-Name: International Monetary Fund Author-Name: Patricia Gomez-Gonzalez Author-X-Name-First: Patricia Author-X-Name-Last: Gomez-Gonzalez Author-Workplace-Name: Fordham University, Department of Economics Author-Name: Sebnem Kalemli-Ozcan Author-X-Name-First: Sebnem Author-X-Name-Last: Kalemli-Ozcan Author-Workplace-Name: University of Maryland Title: The COVID-19 shock and firm financing: Government or Market or Both? Abstract: We study the interaction between government’s fiscal support policies and firms’ market financing. Using regulatory data on the universe of Chilean firms, we test the role of Central Bank’s special credit line to domestic banks and government-backed credit guarantees provided during COVID-19. Through a regression discontinuity design, we find that firms with access to government support policies increased their domestic debt relative to foreign debt, even though foreign debt in foreign currency is much cheaper than domestic debt in local currency under deviations from the UIP. Further results document how policies reduced UIP premia for firms eligible of guarantees. An open economy model with heterogeneous firms helps rationalize these facts. A shock to the cost of external financing leads to a higher mass of firms with access to domestic credit when the government subsidizes the cost of domestic credit. The government’s credit guarantees loosen domestic collateral constraints and reduce banks’ risk aversion, while the central bank’s special credit line increases the aggregate supply of credit in the economy. Creation-Date: 2023 File-URL: https://archive.fordham.edu/ECONOMICS_RESEARCH/PAPERS/dp2023_03_gomezgonzalez.pdf File-Format: Application/pdf Classification-JEL: F32, F41 Keywords: Capital flows, firm financing, unconventional policies, COVID-19 Handle: RePEc:FRD:wpaper:DP2023-03er:DP2023-03 Template-Type: ReDIF-Paper 1.0 Author-Name: Hrishikesh D. Vinod Author-X-Name-First: Hrishikesh Author-X-Name-Last: Vinod Author-Workplace-Name: Fordham University, Department of Economics Title: Pandemic-proofing Out-of-sample Portfolio Evaluations Abstract: WEvaluation of the performance of portfolios and of various methods of ranking them has to be out-of-sample. Otherwise, selection methods that fit the past data best would always win. Suppose the time series chosen for out-of-sample evaluation happens to have any (upward, downward, zigzag) trend. In that case, portfolio selec- tion methods for that trend will work best but fail in general. We describe algorithms for the removal of such bias by using randomization. The R package ‘generalCorr’ has them. We use 169-month Dow Jones stock data to illustrate outOFsamp(), outOFsell(). Creation-Date: 2023 File-URL: https://archive.fordham.edu/ECONOMICS_RESEARCH/PAPERS/dp2023_04_vinod.pdf File-Format: Application/pdf Classification-JEL: C30, C51 Keywords: Portfolio choice Handle: RePEc:FRD:wpaper:DP2023-04er:DP2023-04