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Total Offset and Medical Net Discount Rates: 1981–2012

Author

Listed:
  • David Schap

    (Department of Economics and Accounting, College of the Holy Cross)

  • Lauren Guest

    (Department of Economics and Accounting, College of the Holy Cross)

  • Andrew Kraynak

    (Department of Economics and Accounting, College of the Holy Cross)

Abstract

Medical net discount rates (MNDRs) are calculated using monthly data for the period 1981:01–2012:06 based on the medical consumer price index and annual percentage yields based on 3-month, 6-month and 1-year U.S. Treasury Securities. Stationarity is tested for each series and the results of time-series analytics through 2000:05 are compared to previously published results (Ewing, Payne and Piette, 2001) that omitted Treasury Securities of shortest duration. The various series are extended to 2012:06 and the time series properties are examined. Although the results are mixed, they are more supportive of total offset (i.e., a zero MNDR) than previously published research findings have been.

Suggested Citation

  • David Schap & Lauren Guest & Andrew Kraynak, 2013. "Total Offset and Medical Net Discount Rates: 1981–2012," Working Papers 1310, College of the Holy Cross, Department of Economics.
    • Handle: RePEc:hcx:wpaper:1310
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    File URL: http://www.journalofforensiceconomics.com/doi/abs/10.5085/jfe.24.2.191
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    Keywords

    Forensic economics;

    JEL classification:

    • K13 - Law and Economics - - Basic Areas of Law - - - Tort Law and Product Liability; Forensic Economics

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