It is well known that reducing car accidents is important to decrease social costs. In order to reduce car accidents, it is required to analyze the causes and ways to prevent them.
By utilizing survey data and Generalized Additive Partial Linear Model, this study examines whether the driver's distractive behaviors during driving cause car accidents. Results from the empirical analysis show that distractive behaviors are one of the causes inducing car accidents. The current Road and Traffic Law, however, does not take if into account that reflect such distractive behaviors are one of the causes of car accidents.
Thus, it is strongly suggested that the Road and Traffic law be revised to decrease such behaviors. Specifically, imposing fine on using cellular phones during driving and bonus-malus and traffic violation experience rate system on the auto-insurance pricing would be effective to reduce the car accidents.
This study develops an Individual Retirement Preparedness Index (IRPI) model. Individual data used for the analyses were derived from the third wave of Korean Retirement and Income Study by National Pension Research Institute. Total 16 IRPIs were estimated for pre-retired individuals and factors affecting the IRPIs were identified. Independent effects of educational attainment and having a spouse were clearly confirmed. Also, having a private pension was found to have a significant effect on higher IRPIs, and professionals tend to have higher IRPIs compared with non-professionals. In addition, significant and independent effects of income and net worth on the IRPIs were also confirmed as shown in previous studies. These findings have policy implications for the national pension reform as well as retirement planning strategies for individuals.
This paper investigates the usefulness of lending practice index as a determinant of lending interest rates. Interest rates are determined by supply and demand on the money. The lending practice index is the proxy of the supply side, while demand and credit risk index is the proxy of the demand side. Certificate of Deposit(CD) rate has been the base rate in deciding the loan interest in Korea.
I use the data of the lending practice index on domestic financial institutions, so the data periods are limited to 2002 1Q - 2010 3Q, because of the inconsistency of survey sample frame. Due to the significant and high correlation with demand index, credit risk index is excluded from the data. The results, through panel analysis and forecast error analysis, indicate the uselessness of the lending practice index survey. Lending interest determinant model including CD rate has relatively higher explanatory power, but forecasted interests by the estimated model are not statistically different from actual interest rates.
This paper focuses on the design of banking arrangements in an open economy, where banks, but not private agents, have access to short-term foreign debt. This study shows that when the possibility of bank runs are not considered, the bank's portfolio at the beginning of a period is more illiquid than in the baseline closed economy case.
Then I ask a mechanism design question: What is the optimal contract in the presence of the possibility of a sunspot-triggered bank runs? I show that when international financial markets are in equilibrium, it is always optimal for the bank to choose a run-preventing contract. To do so, the bank must hold excess liquid assets, the source of which is foreign borrowing.