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Cost Differentials (cost + differential)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	75%

Selected Abstracts

EXPORT SUBSIDIES, COST DIFFERENTIAL AND PRODUCT QUALITY

PACIFIC ECONOMIC REVIEW, Issue 1 2010
Hong Hwang
This paper presents a vertical product differentiation model to examine the relationship between optimal trade policies and product qualities for different export countries under Cournot quantity competition as well as Bertrand price competition. We can also use this quality model to explain why Japan as a high production-cost country may have incentives to offer high subsidies. This is a case that cannot be explained by the strategic trade theory models à la Brander and Spencer (1985) or Eaton and Grossman (1986). [source]

Ownership and Production Costs: Choosing between Public Production and Contracting-Out in the Case of Swedish Refuse Collection

FISCAL STUDIES, Issue 4 2003
Henry Ohlsson
Abstract Many comparisons of public and private firms use a public/private ownership dummy variable to capture cost differences. If, however, public and private firms use different production technologies, the dummy-variable approach is misspecified. Data from public and private firms should not be pooled. Secondly, selectivity bias may arise, making it more difficult to identify cost differentials that actually exist. Thirdly, if data should be pooled, the resulting empirical model may be logically inconsistent. This paper compares public and private firms using the refuse collection costs of 170 firms in 115 Swedish municipalities. First, public production costs were 6 per cent lower than private production costs. Secondly, cost differences did not affect producer choice. It is crucial to adjust for selectivity. Data for private and public firms should not be pooled. The dummy-variable model is misspecified. [source]

The Effects of Case-Mix Reimbursement on Ohio Medicaid Nursing Home Costs

POLICY STUDIES JOURNAL, Issue 3 2002
Sunday E. Ubokudom
This article examines empirically the effects of the Ohio case-mix reimbursement system on nursing home costs. The results show that case-mix is the single most important factor affecting both direct-care (nursing staff) and total per diem costs. Although other factors, such as bedsize, occupancy rate, ownership status, county per capita income, and the demand for nursing home care, also affeet costs; they have far smaller effects on costs than case-mix. Further, the results show that the cost differentials between for-profit and nonprofit facilities are largely explained by differences in cost response to case-mix and, to a lesser extent, by differences in cost response to bedsize, Medicaid utilization, county per capita income, demand for nursing home beds, and occupancy rate. The for-profit facilities in this study cost significantly less than their nonprofit counterparts. [source]

PRODUCTIVITY AND LABOUR DEMAND EFFECTS OF INWARD AND OUTWARD FOREIGN DIRECT INVESTMENT ON UK INDUSTRY*

THE MANCHESTER SCHOOL, Issue 2 2009
NIGEL DRIFFIELD
We relate the technological and factor price determinants of inward and outward foreign direct investment (FDI) to its potential productivity and labour market effects on both host and home economies. This allows us to distinguish clearly between technology-sourcing and technology-exploiting FDI, and to identify FDI that is linked to labour cost differentials. We then empirically examine the effects of different types of FDI into and out of the UK on domestic (i.e. UK) productivity and on the demand for skilled and unskilled labour at the industry level. [source]