Journal Article Corporate Taxation and Dividend Behaviour: a Reply and Extension Get access Martin S. Feldstein Martin S. Feldstein Harvard University Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 39, Issue 2, April 1972, Pages 235–240, https://doi.org/10.2307/2296876 Published: 01 April 1972

I. A one-sector general equilibrium analysis, 553. — II. A numerical example, 560. — III. Long-run incidence in a growing economy, 563. — IV. The path of adjustment, 570. — V. Conclusion, 572.

Journal Article An Econometric Model of the Medicare System: Reply Get access Martin S. Feldstein Martin S. Feldstein Harvard University Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 87, Issue 3, August 1973, Pages 490–494, https://doi.org/10.2307/1882018 Published: 01 August 1973

I. Introduction, 175. — II. The optimal price, 176. — III. The welfare loss due to incorrect pricing, 182. — IV. An example, 183. — V. Concluding remarks, 187.

I. An overview of the Medicare model, 4.—II. Supplementary medical insurance, 5.—III. Hospital admissions, 8.—IV. Extended care unit admissions, 11.—V. Hospital insurance benefits per hospital episode (HIBPHE), 12.—VI. Supplementary insurance benefits, 15.—VII. The reduced form of the Medicare system, 16.—VIII. Concluding remarks, 19.

[The problem of collinearity suggests the search for an alternative to ordinary least squares which, although biased, might reduce the mean square error of the coefficient of interest. Two types of estimators are examined, and the corresponding mean square error loss functions are calculated.]

[This paper presents formulae for the standard error of forecast of a single equation and the covariance matrix of forecasts of a complete system of equations that are appropriate when the exogenous variables in the forecast period are stochastic. The problems of defining forecast intervals and multidimensional forecast regions are also discussed.]

The three primary conclusions of my previous study can be summarized briefly. First, there appears to be a permanent excess demand for physicians' services. The observed prices and quantities are not points on the demand function and the market does not follow a Marshallian or Walrasian process of adjustment to remove the excess demand. Second, physicians' fees rise when patients' ability to pay improves through higher income or more complete insurance coverage. More than a third of the potential gain from improved insurance coverage has been dissipated by induced price increases. Third, the supply equation indicates that physicians reduce the quantity of services provided when fees rise. This in turn implies that government action to control physicians' fees may increase the quantity of services provided. Professors Brown and Lapan raise some questions about the research and about the first and third of these conclusions. However, a careful analysis of their note shows that the original conclusions can remain unchanged. Their own discussion, on the other hand, contains a number of serious errors.

CONSIDERABLE attention has recently I ~~been given to the theory of foreign exchange operations and its implications for government policy. Central to this is the analysis of forward exchange speculation.' Although the essence of speculative behavior is the balancing of uncertainty and expected gain, the analysis of uncertainty in the current theory of forward exchange speculation has generally been less rigorous than other parts of that theory. The purpose of this paper is to present a more explicit theory of the role of uncertainty in forward exchange speculation in the framework of von Neumann-Morgenstern expected utility maximization and to explore its implications for speculator behavior and government policy. Section I is a brief review of the contemporary analysis of foreign exchange speculation. Section II presents the expected utility maximization theory and derives a mean-variance framework for analyzing speculator behavior. The effects of changes in the mean and variance of anticipated gain is discussed in section III, with speculation assumed to occur only in terms of one currency. The theory is extended to multiple currency speculation in section IV. Some policy implications are discussed in section V. Finally, section VI provides a brief summary.