Testing for Hidden Information and Action in Automobile Insurance Market

I test the presence of hidden information and action in the automobile insurance market using a data set from several Colombian insurers. To identify the presence of hidden information I find a common knowledge variable providing information on policyholder s risk type which is related to both experienced risk and insurance demand and that was excluded from the pricing mechanism. Such unused variable is the record of policyholder s traffic offenses. I find evidence of adverse selection in six of the nine insurance companies for which the test is performed. From the point of view of hidden action I develop a dynamic model of effort in accident prevention given an insurance contract with bonus experience rating scheme and I show that individual accident probability decreases with previous accidents. This result brings a testable implication for the empirical identification of hidden action and based on that result I estimate an econometric model of the time spans between the purchase of the insurance and the first claim, between the first claim and the second one, and so on. I find strong evidence on the existence of unobserved heterogeneity that deceives the testable implication. Once the unobserved heterogeneity is controlled, I find conclusive statistical grounds supporting the presence of moral hazard in the Colombian insurance market.

Working memory in school-aged children: Exhibition intervals and distracters effects in Memonum computerized test

This study assessed visual working memory through Memonum computerized test in schoolchildren. The effects of three exposure times (1, 4 and 8 seconds) have been evaluated, and the presentation of a distractor on the mnemonic performance in the test Memonum in 72 children from a college in the metropolitan area of Bucaramanga, Colombia, aged between 8 and 11 in grades third, fourth and fifth grade. It has been found significant difference regarding the exposure time in the variables number of hits and successes accumulated, showing a better mnemonic performance in participants who took the test during 8 seconds compared to children who took the test during 1 second; in addition, the presence of a distractor showed a significant difference regarding the strengths and successes accumulated. Such distractor is considered a stimulus generator interference that disrupts the storage capacity of working memory in children. Additionally, a significant difference was found with respect to the use of mental rehearsal strategy, indicating that participants who took the test in 4 and 8 seconds, respectively, assigned higher scores than children who took the test in 1 second. A long exposure time to stimuli during Memonum test increases the holding capacity. Also, the use of a distractor affects the storage capacity and this, at the same time, increases the school progression due to the use of mnemonic strategies that children use to ensure the memory of the numerical series

Executive functions in school-aged children: age and socioeconomic status effects

Lately, the study of prefrontal executive functions in grade scholars has noticeably increased. The aim of this study is to investigate the influence of age and socioeconomic status (sEs) on executive tasks performance and to analyze those socioeconomic variables that predict a better execution. A sample of 254 children aged between 7 and 12 years from the city of santa Fe, Argentina and belonging to different socioeconomic status were tested. A bat- tery of executive functions sensitive to prefrontal function was used to obtain the results. These in- dicate a significant influence of age and SES on executive functions. The cognitive patterns follow a different path according to the development and sEs effect. Besides, it is revealed a pattern of low cognitive functioning in low-sEs children in all executive functions. Finally, from the variables included in this study, it was found that only the educational level of the mother and the housing conditions are associated to the children’s executive function. The results are discussed in terms of the influence of the cerebral maturation and the envi- ronmental variables in the executive functioning.