Charles E. Hegji

Macroeconomic factors, consumer behavior, and bankcard default rates

Over the period from 1981 through 1999, we investigate the relationship between bankcard delinquencies and key macroeconomic variables. Changes in the proportion of accounts in default are statistically related to the consumer debt ratio. When the delinquency rate is calculated based on the number of dollars outstanding, it is related to the total amount of revolving debt. We also find evidence consistent with a pattern of selective default behavior, in which consumers will default on bankcard debt before defaulting on other types of installment loans.

Economics in the MBA Curriculum: Some Preliminary Survey Results

Despite the growing popularity of MBA programs and the large number of graduate students who have taken one or more formal courses in economics in such programs, little research has been published on this topic. With almost 700 institutions offering an MBA program, enrollments in excess of 200,000 individuals, and over 90,000 degrees granted (1993-1994), the role of economics in MBA programs should be worthy of study. In this article, we report the results of a survey of administrators of U.S. business schools to obtain information on economics courses in the MBA curricu-

The link between hospital quality and services profitability

Purpose – The paper aims to study the relationship between hospital quality and hospital profits for a sample of 88 Alabama hospitals.Design/methodology/approach – Quality is measured by three groups of procedures performed on newly admitted patients as suggested by the health quality alliance (HQA). Profit is measured for eight hospital services. Regression analyses tested the underlying relationships.Findings – Quality of care for newly admitted cardiac and pneumonia patients are indicators of quality translatable into profits. Given a choice between the two, the pneumonia procedures were more effective in predicting profits.Originality/value – As one of the early extensions of the HQA methodology, this paper does demonstrate linkages between quality and profits. Total number of employees was not significant, but governmental versus non‐governmental hospital analyses provide promise for future research.

A note on transfer prices and exchange rate pass-through

The paper builds a model of a parent corporation selling an intermediate product to a foreign subsidiary. The model is used to explain the response of foreign prices to changes in the exchange rate between the country of the parent affiliate and the foreign subsidiary. The model examines this response with and without an external market for the intermediate product.

Trade announcements, exchange rates, and interest rates

Abstract This paper demonstrates a significant depreciation of the dollar in foreign exchange markets to announcements of larger than anticipated monthly U.S. trade deficits over the entire period from early 1985 through late 1988 but differential interest rate responses to this information. Through mid 1986 short term interest rates declined on the announcement of negative trade news which is consistent with monetary easing to depreciate the dollar during this time period so as to narrow the trade gap. For trade announcement surprises after this, through late 1988, interest rates increased across the entire maturity structure. This result suggests a policy reversal by the central bank in response to continued large trade deficit announcements in order to defend the foreign exchange value of the dollar. Yet the continued depreciation of the dollar coupled with rising long term interest rates are consistent with increased risk premia associated with holding dollar denominated assets during this time period.

Hospital Activity and Hospital Profits

Abstract The paper uses data from a cross section of southeastern hospitals to examine which activities are profitable for hospitals. The analysis suggests that hospitals may operate at less than profit-maximizing levels of output. In addition, contrary to popular belief emergency rooms are shown to be profit generating centers for hospitals.

Optimal monetary policy and the lag structure of disturbances

Abstract The paper extends Pooles analysis of optimal monetary policy by linking monetary policy to the lag structure of the models disturbances. A Keynesian framework which also assumes rational expectations and information lags is used. The paper finds that in this framework monetary policy is determined by the rates at which real sector and money-demand disturbances dissipate. Dynamic analogs of the familiar rules linking optimal monetary policy to the stability of the IS and LM curves are then developed.

Alternative Quality Measures and Profitability of Hospital Inpatient Services Offered

In this analysis, we study the relationship between hospital quality and hospital profits for a sample of 88 Alabama (USA) hospitals. Quality is measured by three groups of procedures performed on newly admitted patients as suggested by the Center for Medicare and Medicaid Services and the Health Quality Alliance (HQA) as well as a weighted quality measure. Profit is measured for eight hospital services. Profits from cardiac care were most responsive to the quality measures studied. Moreover, profits from six of the inpatient services increased as the weighted quality measure increased. Finally, in two cases quality increased with the relative number of employees a hospital utilized.

The Link Between Hospital Quality and Profitability of Outpatient Services Offered

The analysis studies the relationship between hospital quality and hospital profits for a sample of 94 Alabama hospitals. Quality is measured by four groups of procedures performed on newly-admitted patients as suggested by the Center for Medicare and Medicaid Services. Profit is measured for five outpatient services. We find that the quality of inpatient care predicts profits in three of the five outpatient services. We also find that the association is due primarily to an increase in outpatient volume in response to quality rather than to higher profit margins. The notable exception is for profit margins for cardiac and surgical care.

The Impact of Hospital Quality on Profits, Volume, and Length of Stay

Using 2006–2007 data from a sample of 6,082 U.S. hospitals, quality of care measures developed by the Hospital Quality Alliance (HQA) are applied to heart attack, heart failure, pneumonia, and surgery. Quality of care for these was related to both higher profits per case and increased number of cases. Length of stay was inversely related to quality of care for preventative (surgical and heart attack) care.