Asymmetric information and trade policy

Economists understand protectionism as a costly mechanism to redistribute from the average citizen to special-interest groups; yet political platforms that deviate from free trade have surprising popular appeal. I present an explanation based on heterogeneous information across citizens whose voting decision has an intensive margin. For each politician and each sector, the optimal trade-policy choice caters to the preferences of those voters who are more likely to be informed of that proposal. An overall protectionist bias emerges because in every industry producers are better informed than consumers. This asymmetry emerges in equilibrium because co-workers share industry-specific knwoledge, and because producers have greater incentives to engage in costly learning about their sector. My model implies that more widespread information about trade policy for an industry is associated with lower protection. Cross-sectoral evidence on U.S. non-tariff barriers and newspaper coverage is consistent with this prediction.

Department of Human Rights - Deaf Services Commission of Iowa, Agency Performance Plan, 2007

Annual Report, Agency Performance Plan

Improved nonparametric confidence intervals in time series regressions

Condence intervals in econometric time series regressions suffer fromnotorious coverage problems. This is especially true when the dependencein the data is noticeable and sample sizes are small to moderate, as isoften the case in empirical studies. This paper suggests using thestudentized block bootstrap and discusses practical issues, such as thechoice of the block size. A particular data-dependent method is proposedto automate the method. As a side note, it is pointed out that symmetricconfidence intervals are preferred over equal-tailed ones, since theyexhibit improved coverage accuracy. The improvements in small sampleperformance are supported by a simulation study.

Heterogeneous information and trade policy

Protectionism enjoys surprising popular support, in spite of deadweight losses. At thesame time, trade barriers appear to decline with public information about protection.This paper develops an electoral model with heterogeneously informed voters whichexplains both facts and predicts the pattern of trade policy across industries. In themodel, each agent endogenously acquires more information about his sector of employment. As a result, voters support protectionism, because they learn more about thetrade barriers that help them as producers than those that hurt them as consumers.In equilibrium, asymmetric information induces a universal protectionist bias. Thestructure of protection is Pareto inefficient, in contrast to existing models. The modelpredicts a Dracula effect: trade policy for a sector is less protectionist when there ismore public information about it. Using a measure of newspaper coverage across industries, I find that cross-sector evidence from the United States bears out my theoreticalpredictions.

The wage effect of an indexation clause: Evidence from Spanish manufacturing firms

An endogenous switching model of ex-ante wage changes under indexed and non-indexed settlements is estimated for the Spanish manufacturing sector using collective bargaining firm data for the 1984-1991 period. The likelihood of indexing the settlement is higher for nationwide unions than for other union groups within the works council and increases with the expected level of inflation. For wage change equations, a common structure for indexed and non-indexed settlements is strongly rejected, showing a source of nominal rigidity. For indexed contracts, the expected ex-ante total inflation coverage is nearly complete. It is also shown that workers pay a significant ex-ante wage change premium (differential) to obtain a cost of living allowance clause. However, the realised contingent compensation exceeds such a premium for all industries. Finally, important spillover effects in wage setting and the decision to index the settlement have been detected.

Protecting Your Spouse When You Go to a Nursing Home, July 2007

The Spousal Impoverishment Protection Law Have you ever wondered… What will happen if your spouse is not able to live at home because of poor health or confusion? Will you have to spend all of your resources to pay for your spouse’s nursing home care before Medicaid will help? The answer is, “NO”! You have protection from losing all income and assets to pay for your spouse’s care in the nursing home when your spouse qualifies for Medicaid.

Understanding Insurance Company Financial Stability Ratings, January 2007

Choosing a financially strong insurance company is important when buying health insurance. You want the company to still be in business when you have claims, which can be 20 to 30 years from now. Insurance companies selling insurance in Iowa have met the minimum legal standards to be licensed by the State of Iowa Insurance Division. This licensure doesn’t mean the company has a high financial stability rating. Several independent rating agencies evaluate the financial stability of insurance companies. The rating for an individual insurance company is an opinion as to its financial strength and ability to pay claims in the future. When evaluating a company, a rating agency may consider a company's balance sheet strength, operating performance and business management and strategies.

Getting Ready to Retire: Health Insurance Issues, December 2006

Before making the decision to retire, understand the health insurance options available to you (and your spouse if you are married). Which questions you need to ask depends on: • how old you are. • how old your spouse is. • whether you or your spouse is eligible for Medicare. • whether you or your spouse will continue to be employed. • how many employees the employer has.

Welcome To Medicare Physical Exam, September 2007

Medicare will cover a one-time preventive physical exam within the first six months that you have Part B. This benefit is for all Medicare beneficiaries including those under age 65. How much does the exam cost? You pay 20% of the Medicare approved amount after you meet the yearly Part B deductible ($131 for 2007). Since this exam may be your first Medicare-covered service, you could meet your entire Part B deductible for the year. Medicare will cover the exam if performed by a physician, physician assistant, nurse practitioner, or clinical nurse specialist. What should I expect during the exam? The “Welcome to Medicare Physical” will include the following: 1. A review of your medical and social history. 2. A review of your potential risk factors for depression. 3. A review of your functional ability and level of safety. 4. Blood pressure, height, weight and vision test 5. An electrocardiogram (EKG) 6. Education and counseling on the above five items. 7. A written plan explaining screenings and other recommended preventive services. All seven elements must be documented in order for the physical to be covered by Medicare. The exam does not include clinical laboratory tests. Medicare will pay for a one-time ultrasound screening for abdominal aortic aneurysms for beneficiaries who are at risk (has a family history or a man age 65 to 75 who has smoked at least 100 cigarettes in his lifetime.) Only Medicare beneficiaries who receive a referral from the Welcome to Medicare physical exam will be covered for this benefit. There is no Part B deductible, but you or your supplemental insurance will be responsible for the coinsurance. What should I take to the exam? You should bring the following when you go to your “Welcome to Medicare” physical exam: • Medical records, including immunization records (if you are seeing a doctor for the first time) • Family health history • A list of current prescription drugs, how often you take them, and why.

Your Personalized Medicare Manager Is Waiting for You Online, 2007

Go to MyMedicare.gov and get the personalized information you need to make better health care choices. With this exciting new web tool, you can make the best health care decisions for your personal needs. MyMedicare.gov puts you in control.

2007 Medicare Deductibles, Coinsurance and Premiums, 2007

Medicare Deductible, co-insurance and premiuns form.

My Health, My Medicare, Medicare Preventive Benefit, October 2007

Factual information about Medicare, and what it will pay for towards preventivation medicine.

Help For Lower Income Iowans With Medicare, 2007

If you have limited income and resources, the State of Iowa may pay some of your Medicare expenses. Programs paying these expenses are shown in the chart on page 2. To see if you might be eligible, answer the questions below.

THIS IS NOT A BILL What You Need to Know about Your Medicare Summary Notice, May 2007

Summary of Medicare information, your need to know information place.

Events That Guarantee Your Right To Buy Medicare Supplement Insurance, March 2007

You have a six-month open enrollment period when you are enrolled in Medicare Part B for the first time at age 65 or older. The six-month period begins the date your Medicare Part B begins. During your open enrollment period: • You cannot be turned down for any plan (A-L) being sold in Iowa. • You cannot be charged a higher premium based on your health. • You will not have a waiting period before benefits are paid for pre-existing health conditions IF you had previous health insurance coverage, AND you apply within 63 days of the end of previous health insurance, AND you were covered for at least 6 months under that health plan.