Three essays in risk management in financial institutions

The choice to adopt risk-sensitive measurement approaches for operational risks: the case of Advanced Measurement Approach under Basel II New Capital Accord This paper investigates the choice of the operational risk approach under Basel II requirements and whether the adoption of advanced risk measurement approaches allows banks to save capital. Among the three possible approaches for operational risk measurement, the Advanced Measurement Approach (AMA) is the most sophisticated and requires the use of historical loss data, the application of statistical tools, and the engagement of a highly qualified staff. Our results provide evidence that the adoption of AMA is contingent on the availability of bank resources and prior experience in risk-sensitive operational risk measurement practices. Moreover, banks that choose AMA exhibit low requirements for capital and, as a result might gain a competitive advantage compared to banks that opt for less sophisticated approaches. - Internal Risk Controls and their Impact on Bank Solvency Recent cases in financial sector showed the importance of risk management controls on risk taking and firm performance. Despite advances in the design and implementation of risk management mechanisms, there is little research on their impact on behavior and performance of firms. Based on data from a sample of 88 banks covering the period between 2004 and 2010, we provide evidence that internal risk controls impact the solvency of banks. In addition, our results show that the level of internal risk controls leads to a higher degree of solvency in banks with a major shareholder in contrast to widely-held banks. However, the relationship between internal risk controls and bank solvency is negatively affected by BHC growth strategies and external restrictions on bank activities, while the higher regulatory requirements for bank capital moderates positively this relationship. - The Impact of the Sophistication of Risk Measurement Approaches under Basel II on Bank Holding Companies Value Previous research showed the importance of external regulation on banks' behavior. Some inefficient standards may accentuate risk-taking in banks and provoke a financial crisis. Despite the growing literature on the potential effects of Basel II rules, there is little empirical research on the efficiency of risk-sensitive capital measurement approaches and their impact on bank profitability and market valuation. Based on data from a sample of 66 banks covering the period between 2008 and 2010, we provide evidence that prudential ratios computed under Basel II standards predict the value of banks. However, this relation is contingent on the degree of sophistication of risk measurement approaches that banks apply. Capital ratios are effective in predicting bank market valuation when banks adopt the advanced approaches to compute the value of their risk-weighted assets.

Promoting Corporate Responsibility in Private Banking: Necessary and Sufficient Conditions for Joining the Wolfsberg Initiative Against Money Laundering

In recent years, the fight against money laundering has emerged as a key issue of financial regulation. The Wolfsberg Group is an important multistakeholder agreement establishing corporate responsibility (CR) principles against money laundering in a domain where international coordination remains otherwise difficult. The fact that 10 out of the 25 top private banking institutions joined this initiative opens up an interesting puzzle concerning the conditions for the participation of key industry players in the Wolfsberg Group. The article presents a fuzzy-set analysis of seven hypotheses based on firm-level organizational factors, the macro-institutional context, and the regulatory framework. Results from the analysis of these 25 financial institutions show that public ownership of the bank and the existence of a code of conduct are necessary conditions for participation in the Wolfsberg Group, whereas factors related to the type of financial institution, combined with the existence of a black list, are sufficient for explaining participation.

The Regulation of Foreign Banks in Switzerland (1956-1972)

The Swiss financial centre witnessed an important shift during the 1960s: the number of foreign banks and their importance in relation to the domestic banking sector significantly increased. Faced with this rapid development, Swiss bank representatives and political and monetary authorities reacted strongly. This paper investigates the evolution of the regulatory response by Swiss banking policy actors to the proliferation of foreign financial in- stitutions. In 1969, those reactions led to the adoption of a discriminatory regime, setting higher entry barriers for foreign banks than for domestic institutions. After examining possible reasons for the attractiveness of Switzerland to foreign banks, this paper will analyse the concerns and fears of the domestic banking sector and its regulators. In this regard, it appears that issues such as mere competition, preservation of the international reputation of the Swiss banks and anti-inflationary monetary policy were central to the chosen regulatory regime. Moreover, this paper shows that foreign banks were used as scapegoats in the evolution of the Swiss system of banking supervision. They were more tightly regulated, yet the general framework remained very lax.

Integration of teacher education into the Swiss higher education system

The integration of specific institutions for teacher education into the higher education system represents a milestone in the Swiss educational policy and has broad implications. This thesis explores organizational and institutional change resulting from this policy reform, and attempts to assess structural change in terms of differentiation and convergence within the system of higher education. Key issues that are dealt with are, on the one hand, the adoption of a research function by the newly conceptualized institutions of teacher education, and on the other, the positioning of the new institutions within the higher education system. Drawing on actor-centred approaches to differentiation, this dissertation discusses system-level specificities of tertiarized teacher education and asks how this affects institutional configurations and actor constellations. On the basis of qualitative and quantitative empirical data, a comparative analysis has been carried out including case studies of four universities of teacher education as well as multivariate regression analysis of micro-level data on students' educational choices. The study finds that the process of system integration and adaption to the research function by the various institutions have unfolded differently depending on the institutional setting and the specific actor constellations. The new institutions have clearly made a strong push to position themselves as a new institutional type and to find their identity beyond the traditional binary divide which assigns the universities of teacher education to the college sector. Potential conflicts have been identified in divergent cognitive normative orientations and perceptions of researchers, teacher educators, policy-makers, teachers, and students as to the mission and role of the new type of higher education institution. - L'intégration dans le système d'enseignement supérieur d'institutions qui ont pour tâche spécifique de former des enseignants peut être considérée comme un événement majeur dans la politique éducative suisse, qui se trouve avoir des conséquences importantes à plusieurs niveaux. Cette thèse explore les changements organisationnels et institutionnels résultant de cette réforme politique, et elle se propose d'évaluer en termes de différentiation et de convergence les changements structurels intervenus dans le système d'éducation tertiaire. Les principaux aspects traités sont d'une part la nouvelle mission de recherche attribuée à ces institutions de formation pédagogique, et de l'autre la place par rapport aux autres institutions du système d'éducation tertiaire. Recourant à une approche centrée sur les acteurs pour étudier les processus de différen-tiation, la thèse met en lumière et en discussion les spécificités inhérentes au système tertiaire au sein duquel se joue la formation des enseignants nouvellement conçue et soulève la question des effets de cette nouvelle façon de former les enseignants sur les configurations institutionnelles et les constellations d'acteurs. Une analyse comparative a été réalisée sur la base de données qualitatives et quantitatives issues de quatre études de cas de hautes écoles pédagogiques et d'analyses de régression multiple de données de niveau micro concernant les choix de carrière des étudiants. Les résultats montrent à quel point le processus d'intégration dans le système et la nouvelle mission de recherche peuvent apparaître de manière différente selon le cadre institutionnel d'une école et la constellation spécifique des acteurs influents. A pu clairement être observée une forte aspiration des hautes écoles pédagogiques à se créer une identité au-delà de la structure binaire du système qui assigne la formation des enseignants au secteur des hautes écoles spéciali-sées. Des divergences apparaissent dans les conceptions et perceptions cognitives et normatives des cher-cheurs, formateurs, politiciens, enseignants et étudiants quant à la mission et au rôle de ce nouveau type de haute école. - Die Integration spezieller Institutionen für die Lehrerbildung ins Hochschulsystem stellt einen bedeutsamen Schritt mit weitreichenden Folgen in der Entwicklung des schweizerischen Bildungswesens dar. Diese Dissertation untersucht die mit der Neuerung verbundenen Veränderungen auf organisatorischer und institutioneller Ebene und versucht, die strukturelle Entwicklung unter den Gesichtspunkten von Differenzierung und Konvergenz innerhalb des tertiären Bildungssystems einzuordnen. Zentrale Themen sind dabei zum einen die Einführung von Forschung und Entwicklung als zusätzlichem Leistungsauftrag in der Lehrerbildung und zum andern die Positionierung der pädagogischen Hochschulen innerhalb des Hochschulsystems. Anhand akteurzentrierter Ansätze zur Differenzierung werden die Besonderheiten einer tertiarisierten Lehrerbildung hinsichtlich der Systemebenen diskutiert und Antworten auf die Frage gesucht, wie die Reform die institutionellen Konfigurationen und die Akteurkonstellationen beeinflusst. Auf der Grundlage qualitativer und quantitativer Daten wurde eine vergleichende Analyse durchgeführt, welche Fallstudien zu vier pädagogischen Hochschulen umfasst sowie Regressionsanalysen von Mikrodaten zur Studienwahl von Maturanden. Die Ergebnisse machen deutlich, dass sich der Prozess der Systemintegration und die Einführung von Forschung in die Lehrerbildung in Abhängigkeit von institutionellen Ordnungen und der jeweiligen Akteurkonstellation unterschiedlich gestalten. Es lässt sich bei den neu gegründeten pädagogischen Hochschulen ein starkes Bestreben feststellen, sich als neuen Hochschultypus zu positionieren und sich eine Identität zu schaffen jenseits der herkömmlichen binären Struktur, welche die pädagogischen Hochschulen dem Fachhochschul-Sektor zuordnet. Potentielle Konflikte zeichnen sich ab in den divergierenden kognitiven und normativen Orientierungen und Wahrnehmungen von Forschern, Ausbildern, Bildungspolitikern, Lehrern und Studierenden hinsichtlich des Auftrags und der Rolle dieses neuen Typs Hochschule.

Governance by Contract? The impact of the International Finance Corporation's Social Conditionality on Worker Organization and Social Dialogue

This study considers the question of the relationship between private labour regulation and workers' capacity to take collective action through the lens of an empirical study of the International Finance Corporation's (IFC) 'performance standards' system of social and environmental conditionality. The study covered some 150 IFC client businesses in four world regions, drawing on data made public by the IFC as well as the results of a dedicated field survey that gathered information directly from workers, managers and union representatives. The study found that the application of the performance standards system has had remarkably little impact on union membership and social dialogue. In those few cases where change could be causally linked to the standards, the effect depended on the presence of workers' organizations that already had the capacity to take effective action on behalf of their members. The study also uncovered some prima facie evidence of breaches of freedom of association rights occurring with no reaction from IFC. The study concludes that the lack of impact is largely due to the private contractual structure that supposedly guarantees standards compliance.

Social justice in education : how the function of selection in educational institutions predicts support for (non)egalitarian assessment practices

Educational institutions are considered a keystone for the establishment of a meritocratic society. They supposedly serve two functions: an educational function that promotes learning for all, and a selection function that sorts individuals into different programs, and ultimately social positions, based on individual merit. We study how the function of selection relates to support for assessment practices known to harm vs. benefit lower status students, through the perceived justice principles underlying these practices. We study two assessment practices: normative assessment-focused on ranking and social comparison, known to hinder the success of lower status students-and formative assessment-focused on learning and improvement, known to benefit lower status students. Normative assessment is usually perceived as relying on an equity principle, with rewards being allocated based on merit and should thus appear as positively associated with the function of selection. Formative assessment is usually perceived as relying on corrective justice that aims to ensure equality of outcomes by considering students' needs, which makes it less suitable for the function of selection. A questionnaire measuring these constructs was administered to university students. Results showed that believing that education is intended to select the best students positively predicts support for normative assessment, through increased perception of its reliance on equity, and negatively predicts support for formative assessment, through reduced perception of its ability to establish corrective justice. This study suggests that the belief in the function of selection as inherent to educational institutions can contribute to the reproduction of social inequalities by preventing change from assessment practices known to disadvantage lowerstatus student, namely normative assessment, to more favorable practices, namely formative assessment, and by promoting matching beliefs in justice principles.

Ownership Effects on Unrelated Diversification: An Institutions' Perspective

Purpose To show that differences in the extent to which firms engage in unrelated diversification can be attributed to differences in ownership structure. Methodology/approach We draw on longitudinal data and use a panel analysis specification to test our hypotheses. Findings We find that unrelated diversification destroys value; pressure-sensitive Anglo-American owners in a firm’s equity reduce unrelated diversification, whereas pressure-resistant domestic owners increase unrelated diversification; the greater the firm’s free cash flow, the greater the negative effect of pressure-sensitive Anglo-American owners on unrelated diversification. Research limitations/implications We contribute to corporate governance and strategy research by bringing in owners’ institutional origin as a shaper of owner preferences in particular with regards to unrelated diversification. Future research may expand our investigation to more than one home institutional context, and theorize on institutional origin effects beyond the dichotomy between Anglo-American and non-Anglo-American (not oriented toward shareholder value maximization) owners. Practical implications Policy makers, financial analysts, owners, and managers may want to reflect about the implications of ownership structure, as well as promoting or joining corporations with particular ownership configurations. Social implications A shareholder value-destroying strategy, such as unrelated diversification has adverse consequences for society at large, in terms of opportunity costs, that is, resources could be allocated to value-creating activities instead. Promoting an ownership configuration that creates value should contribute to social welfare. Originality/value Owners may not be exclusively driven by shareholder value maximization, but can be influenced by normative beliefs (biases) stemming from the institutional context they originate from.

Engorgement des centres d'urgences: une raison légitime de refuser l'accès aux patients non urgents [Emergency department overcrowding: a legitimate reason to refuse access to urgent care for non-urgent patients?].

Non-urgent cases represent 30-40% of all ED consults; they contribute to overcrowding of emergency departments (ED), which could be reduced if they were denied emergency care. However, no triage instrument has demonstrated a high enough degree of accuracy to safely rule out serious medical conditions: patients suffering from life-threatening emergencies have been inappropriately denied care. Insurance companies have instituted financial penalties to discourage the use of ED as a source of non-urgent care, but this practice mainly restricts access for the underprivileged. More recent data suggest that in fact most patients consult for appropriate urgent reasons, or have no alternate access to urgent care. The safe reduction of overcrowding requires a reform of the healthcare system based on patients' needs rather than access barriers.

Financial impact of introducing the Swiss-DRG reimbursement system on potentially avoidable readmissions at a university hospital.

QUESTION UNDER STUDY: Thirty-day readmissions can be classified as potentially avoidable (PARs) or not avoidable (NARs) by following a specific algorithm (SQLape®). We wanted to assess the financial impact of the Swiss-DRG system, which regroups some readmissions occurring within 18 days after discharge within the initial hospital stay, on PARs at our hospital. METHODS: First, PARs were identified from all hospitalisations recorded in 2011 at our university hospital. Second, 2012 Swiss-DRG readmission rules were applied, regrouped readmissions (RR) were identified, and their financial impact computed. Third, RRs were classified as potentially avoidable (PARRs), not avoidable (NARRs), and others causes (OCRRs). Characteristics of PARR patients and stays were retrieved, and the financial impact of PARRS was computed. RESULTS: A total of 36,777 hospitalisations were recorded in 2011, of which 3,140 were considered as readmissions (8.5%): 1,470 PARs (46.8%) and 1,733 NARs (53.2%). The 2012 Swiss-DRG rules would have resulted in 910 RRs (2.5% of hospitalisations, 29% of readmissions): 395 PARRs (43% of RR), 181 NARRs (20%), and 334 OCRRs (37%). Loss in reimbursement would have amounted to CHF 3.157 million (0.6% of total reimbursement). As many as 95% of the 395 PARR patients lived at home. In total, 28% of PARRs occurred within 3 days after discharge, and 58% lasted less than 5 days; 79% of the patients were discharged home again. Loss in reimbursement would amount to CHF 1.771 million. CONCLUSION: PARs represent a sizeable number of 30-day readmissions, as do PARRs of 18-day RRs in the 2012 Swiss DRG system. They should be the focus of attention, as the PARRs represent an avoidable loss in reimbursement.

Financial protection of patients through compensation of providers: the impact of Health Equity Funds in Cambodia

Public providers have no financial incentive to respect their legal obligation to exempt the poor from user fees. Health Equity Funds (HEFs) aim to make exemptions effective by giving NGOs responsibility for assessing eligibility and compensating providers for lost revenue. We use the geographic spread of HEFs over time in Cambodia to identify their impact on out-of-pocket (OOP) payments. Among households with some OOP payment, HEFs reduce the amount paid by 35%, on average. The effect is larger for households that are poorer and mainly use public health care. Reimbursement of providers through a government operated scheme also reduces household OOP payments but the effect is not as well targeted on the poor. Both compensation models raise household non-medical consumption but have no impact on health-related debt. HEFs reduce the probability of primarily seeking care in the private sector.

La sécurité publique en Asie Mineure sous le Principat (Ier-IIIème s. ap. J.-C.) : institutions municipales et institutions impériales dans l'Orient romain

Présentation du plan La présente recherche se divise en cinq chapitres, plus l'introduction et la conclusion. Chaque chapitre s'ouvre par quelques mots de présentation dévoilant son contenu et expliquant son objectif, ainsi que la méthode adoptée. C'est pourquoi je ne ferai ici que d'exposer en termes généraux la façon dont s'articule le travail dans son ensemble. Les chapitres I et II sont consacrés à l'étude du contexte historique, juridique et social dans lequel s'exerce le maintien de l'ordre dans les provinces romaines d'Asie Mineure à l'époque impériale. Ils permettront de saisir quelles sont les spécificités structurelles des provinces anatoliennes dans le domaine de la sécurité publique, ainsi que d'affiner notre définition du maintien de l'ordre. Le chapitre I donnera un aperçu historique de la pénétration romaine en Anatolie depuis la période républicaine en insistant sur les changements que cela a entraînés pour cette région dans le domaine de la sécurité publique. Quant au chapitre II, il dévoilera les principaux facteurs sociaux venant ordinairement menacer l'ordre public dans les provinces anatoliennes. Ces deux premiers chapitres serviront de préambule à l'analyse proprement dite des institutions chargées de veiller à la sécurité publique en Anatolie sous le Principat, qui sera proposée dans les chapitres suivants. Les chapitres III et IV, qui sont les plus volumineux, forment le coeur de l'étude. J'y examine en parallèle les institutions municipales et les structures impériales et militaires actives dans le maintien de l'ordre présentes en Asie Mineure. Ces deux chapitres sont les plus techniques dans ce sens que chaque institution répertoriée y est décrite et examinée en détail, principalement sur la base de sources épigraphiques et juridiques. Le but est de déterminer l'origine, la diffusion, les compétences et l'utilité de chacune des structures retenues. Le chapitre V, pour sa part, est réservé à l'étude des conditions nécessaires à l'intervention directe de l'armée romaine dans les provinces anatoliennes. J'y observe aussi plusieurs cas limites où l'action des cités et celle de l'armée romaine s'entremêlent. Ce sera l'occasion de s'interroger sur l'existence d'une éventuelle répartition des tâches entre les cités et les autorités impériales en matière d'ordre public dans les provinces. Les chapitres II à V se terminent, en outre, par un bilan où les principales idées qui y ont été développées sont reprises sous la forme d'une conclusion intermédiaire. Dans la conclusion générale, j'analyse l'interaction des diverses institutions que j'aurai étudiées, dans l'intention de porter un jugement global sur la manière dont la sécurité publique est gérée dans les provinces d'Asie Mineure durant les trois premiers siècles de notre ère. Je chercherai également à savoir si la situation que j'aurai reconnue pour le cas des provinces anatoliennes est la règle pour le reste de l'empire ou si, au contraire, il s'agit d'une exception. J'en tirerai des observations générales sur le mode d'organisation et de gestion de l'empire sous le Principat, comme je me suis proposé de le faire. On trouvera à la fin du volume trois appendices historiques rassemblant de courtes digressions qui viennent s'adjoindre au corps central de l'étude; des appendices épigraphiques énumérant sous forme de listes un grand nombre des inscriptions utiles à l'élaboration de cette recherche; une bibliographie générale avec mention des abréviations employées; des illustrations et cartes; enfin, des index. Je terminerai par quelques avertissements d'ordre pratique nécessaires à la bonne consultation de ce livre. Pour ce qui est des renvois internes (lorsque je renvoie à un chapitre ou à une section de chapitre en général, et non à des pages précises), les numéros des chapitres sont exprimés en chiffres romains, tandis que les numéros des sous-chapitres sont exprimés en chiffres arabes: «Voir chap. V. 2.» signifie donc «voir section 2 du chapitre V». En ce qui concerne les inscriptions contenues dans les appendices épigraphiques, elles sont citées sous la forme d'une lettre suivie d'un numéro, par exemple «B 24»: la lettre renvoie aux listes des appendices épigraphiques (liste B dans cet exemple), le chiffre arabe au numéro de l'inscription dans la liste en question (inscription n° 24 de la liste B en l'occurrence). Quant aux notes de bas de page, la numérotation reprend au début de chaque chapitre. Sauf mention contraire, les dates s'entendent après Jésus-Christ et les traductions sont les miennes. Les abréviations utilisées pour les références aux sources primaires (sources littéraires, juridiques, épigraphiques, papyrologiques, numismatiques) et à la littérature secondaire sont développées dans la bibliographie. Enfin, je voudrais préciser que mon travail ne se veut pas une étude de géographie historique. Je ne me suis donc pas servi, en général, de cartes archéologiques, mais j'ai recouru le plus souvent, pour la localisation des villes et des régions que je mentionne, aux cartes du nouvel atlas Barrington, qui sont très commodes et tout à fait satisfaisantes pour une étude historique d'ensemble comme la mienne.

Financial Markets and Real Ecinomy: Four Essays in International Trade

Financial markets play an important role in an economy performing various functions like mobilizing and pooling savings, producing information about investment opportunities, screening and monitoring investments, implementation of corporate governance, diversification and management of risk. These functions influence saving rates, investment decisions, technological innovation and, therefore, have important implications for welfare. In my PhD dissertation I examine the interplay of financial and product markets by looking at different channels through which financial markets may influence an economy.My dissertation consists of four chapters. The first chapter is a co-authored work with Martin Strieborny, a PhD student from the University of Lausanne. The second chapter is a co-authored work with Melise Jaud, a PhD student from the Paris School of Economics. The third chapter is co-authored with both Melise Jaud and Martin Strieborny. The last chapter of my PhD dissertation is a single author paper.Chapter 1 of my PhD thesis analyzes the effect of financial development on growth of contract intensive industries. These industries intensively use intermediate inputs that neither can be sold on organized exchange, nor are reference-priced (Levchenko, 2007; Nunn, 2007). A typical example of a contract intensive industry would be an industry where an upstream supplier has to make investments in order to customize a product for needs of a downstream buyer. After the investment is made and the product is adjusted, the buyer may refuse to meet a commitment and trigger ex post renegotiation. Since the product is customized to the buyer's needs, the supplier cannot sell the product to a different buyer at the original price. This is referred in the literature as the holdup problem. As a consequence, the individually rational suppliers will underinvest into relationship-specific assets, hurting the downstream firms with negative consequences for aggregate growth. The standard way to mitigate the hold up problem is to write a binding contract and to rely on the legal enforcement by the state. However, even the most effective contract enforcement might fail to protect the supplier in tough times when the buyer lacks a reliable source of external financing. This suggests the potential role of financial intermediaries, banks in particular, in mitigating the incomplete contract problem. First, financial products like letters of credit and letters of guarantee can substantially decrease a risk and transaction costs of parties. Second, a bank loan can serve as a signal about a buyer's true financial situation, an upstream firm will be more willing undertake relationship-specific investment knowing that the business partner is creditworthy and will abstain from myopic behavior (Fama, 1985; von Thadden, 1995). Therefore, a well-developed financial (especially banking) system should disproportionately benefit contract intensive industries.The empirical test confirms this hypothesis. Indeed, contract intensive industries seem to grow faster in countries with a well developed financial system. Furthermore, this effect comes from a more developed banking sector rather than from a deeper stock market. These results are reaffirmed examining the effect of US bank deregulation on the growth of contract intensive industries in different states. Beyond an overall pro-growth effect, the bank deregulation seems to disproportionately benefit the industries requiring relationship-specific investments from their suppliers.Chapter 2 of my PhD focuses on the role of the financial sector in promoting exports of developing countries. In particular, it investigates how credit constraints affect the ability of firms operating in agri-food sectors of developing countries to keep exporting to foreign markets.Trade in high-value agri-food products from developing countries has expanded enormously over the last two decades offering opportunities for development. However, trade in agri-food is governed by a growing array of standards. Sanitary and Phytosanitary standards (SPS) and technical regulations impose additional sunk, fixed and operating costs along the firms' export life. Such costs may be detrimental to firms' survival, "pricing out" producers that cannot comply. The existence of these costs suggests a potential role of credit constraints in shaping the duration of trade relationships on foreign markets. A well-developed financial system provides the funds to exporters necessary to adjust production processes in order to meet quality and quantity requirements in foreign markets and to maintain long-standing trade relationships. The products with higher needs for financing should benefit the most from a well functioning financial system. This differential effect calls for a difference-in-difference approach initially proposed by Rajan and Zingales (1998). As a proxy for demand for financing of agri-food products, the sanitary risk index developed by Jaud et al. (2009) is used. The empirical literature on standards and norms show high costs of compliance, both variable and fixed, for high-value food products (Garcia-Martinez and Poole, 2004; Maskus et al., 2005). The sanitary risk index reflects the propensity of products to fail health and safety controls on the European Union (EU) market. Given the high costs of compliance, the sanitary risk index captures the demand for external financing to comply with such regulations.The prediction is empirically tested examining the export survival of different agri-food products from firms operating in Ghana, Mali, Malawi, Senegal and Tanzania. The results suggest that agri-food products that require more financing to keep up with food safety regulation of the destination market, indeed sustain longer in foreign market, when they are exported from countries with better developed financial markets.Chapter 3 analyzes the link between financial markets and efficiency of resource allocation in an economy. Producing and exporting products inconsistent with a country's factor endowments constitutes a serious misallocation of funds, which undermines competitiveness of the economy and inhibits its long term growth. In this chapter, inefficient exporting patterns are analyzed through the lens of the agency theories from the corporate finance literature. Managers may pursue projects with negative net present values because their perquisites or even their job might depend on them. Exporting activities are particularly prone to this problem. Business related to foreign markets involves both high levels of additional spending and strong incentives for managers to overinvest. Rational managers might have incentives to push for exports that use country's scarce factors which is suboptimal from a social point of view. Export subsidies might further skew the incentives towards inefficient exporting. Management can divert the export subsidies into investments promoting inefficient exporting.Corporate finance literature stresses the disciplining role of outside debt in counteracting the internal pressures to divert such "free cash flow" into unprofitable investments. Managers can lose both their reputation and the control of "their" firm if the unpaid external debt triggers a bankruptcy procedure. The threat of possible failure to satisfy debt service payments pushes the managers toward an efficient use of available resources (Jensen, 1986; Stulz, 1990; Hart and Moore, 1995). The main sources of debt financing in the most countries are banks. The disciplining role of banks might be especially important in the countries suffering from insufficient judicial quality. Banks, in pursuing their rights, rely on comparatively simple legal interventions that can be implemented even by mediocre courts. In addition to their disciplining role, banks can promote efficient exporting patterns in a more direct way by relaxing credit constraints of producers, through screening, identifying and investing in the most profitable investment projects. Therefore, a well-developed domestic financial system, and particular banking system, would help to push a country's exports towards products congruent with its comparative advantage.This prediction is tested looking at the survival of different product categories exported to US market. Products are identified according to the Euclidian distance between their revealed factor intensity and the country's factor endowments. The results suggest that products suffering from a comparative disadvantage (labour-intensive products from capital-abundant countries) survive less on the competitive US market. This pattern is stronger if the exporting country has a well-developed banking system. Thus, a strong banking sector promotes exports consistent with a country comparative advantage.Chapter 4 of my PhD thesis further examines the role of financial markets in fostering efficient resource allocation in an economy. In particular, the allocative efficiency hypothesis is investigated in the context of equity market liberalization.Many empirical studies document a positive and significant effect of financial liberalization on growth (Levchenko et al. 2009; Quinn and Toyoda 2009; Bekaert et al., 2005). However, the decrease in the cost of capital and the associated growth in investment appears rather modest in comparison to the large GDP growth effect (Bekaert and Harvey, 2005; Henry, 2000, 2003). Therefore, financial liberalization may have a positive impact on growth through its effect on the allocation of funds across firms and sectors.Free access to international capital markets allows the largest and most profitable domestic firms to borrow funds in foreign markets (Rajan and Zingales, 2003). As domestic banks loose some of their best clients, they reoptimize their lending practices seeking new clients among small and younger industrial firms. These firms are likely to be more risky than large and established companies. Screening of customers becomes prevalent as the return to screening rises. Banks, ceteris paribus, tend to focus on firms operating in comparative-advantage sectors because they are better risks. Firms in comparative-disadvantage sectors finding it harder to finance their entry into or survival in export markets either exit or refrain from entering export markets. On aggregate, one should therefore expect to see less entry, more exit, and shorter survival on export markets in those sectors after financial liberalization.The paper investigates the effect of financial liberalization on a country's export pattern by comparing the dynamics of entry and exit of different products in a country export portfolio before and after financial liberalization.The results suggest that products that lie far from the country's comparative advantage set tend to disappear relatively faster from the country's export portfolio following the liberalization of financial markets. In other words, financial liberalization tends to rebalance the composition of a country's export portfolio towards the products that intensively use the economy's abundant factors.

Financial protection of patients through compensation of providers: the impact of health equity funds in Cambodia

Public providers have no financial incentive to respect their legal obligation to exempt the poor from user fees. Health Equity Funds (HEFs) aim to make exemptions effective by giving NGOs responsibility for assessing eligibility and compensating providers for lost revenue. We use the geographic spread of HEFs in Cambodia to identify their impact on out-of-pocket (OOP) payments. Among households with some OOP payment, HEFs reduce the amount by 29%, on average. The effect is larger for households that are poorer, mainly use public health care and live closer to a district hospital. HEFs are more effective in reducing OOP payments when they are operated by a NGO, rather than the government, and when they operate in conjunction with the contracting of public health services. HEFs reduce households' health-related debt by around 25%, on average. There is no significant impact on non-medical consumption and health care utilisation

Current state of vaccine therapies in non-small-cell lung cancer.

A large variety of cancer vaccines have undergone extensive testing in early-phase clinical trials. A limited number have also been tested in randomized phase II clinical trials. Encouraging trends toward increased survival in the vaccine arms have been recently observed for 2 vaccine candidates in patients with non-small-cell lung cancer. These have provided the impetus for the initiation of phase III trials in large groups of patients with lung cancer. These vaccines target 2 antigens widely expressed in lung carcinomas: melanoma-associated antigen 3, a cancer testis antigen; and mucin 1, an antigen overexpressed in a largely deglycosylated form in advanced tumors. Therapeutic cancer vaccines aim at inducing strong CD8 and CD4 T-cell responses. The majority of vaccines recently tested in phase I clinical trials show efficacy in terms of induction of specific tumor antigen immunity. However, clinical efficacy remains to be determined but appears limited. Efforts are thus aimed at understanding the basis for this apparent lack of effect on tumors. Two major factors are involved. On one hand, current vaccines are suboptimal. Strong adjuvant agents and appropriate tumor antigens are needed. Moreover, dose, route, and schedule also need optimization. On the other hand, it is now clear that large tumors often present a tolerogenic microenvironment that hampers effective antitumor immunity. The partial understanding of the molecular pathways leading to functional inactivation of T cells at tumor sites has provided new targets for intervention. In this regard, blockade of cytotoxic T-lymphocyte antigen-4 and programmed death-1 with humanized monoclonal antibodies has reached the clinical testing stage. In the future, more potent cancer vaccines will benefit from intense research in antigen discovery and adjuvant agents. Furthermore, it is likely that vaccines need to be combined with compounds that reverse major tolerogenic pathways that are constitutively active at the tumor site. Developing these combined approaches to vaccination in cancer promises new, exciting findings and, at the same time, poses important challenges to academic research institutions and the pharmaceutical industry.