The Emergence of Captive Finance Companies and Risk Segmentation of the Consumer Loan Market:Theory and Evidence

A parental seller with market power to some degree in its product market can earn rents. In this context, there is a gain to granting credit for the purchase of the product and thus the establishment of captive finance company for expanding the sales by offering loans to consumers who need financing for purchase of durable good. This paper examines the optimal behavior of such a durable good seller and its captive finance company when the consumer loan market is segmented into captive and independent lending institutions under symmetric and imperfect information on borrower’s creditworthiness. The model presents that one critical difference for captive finance company will be its credit standard. Specifically, the model indicates that captive finance company will follow a more lenient credit standard, leading to the prediction that the likelihood of repayment of a captive loan is lower than that of a bank loan, other things equal. This prediction is tested using unique data sets drawn from a major credit bureau in the U.S. The analysis of credit bureau data shows that a captive automobile loan is less likely to be repaid than a bank automobile loan, which supports the theoretical prediction.Monopolistic Competition, Consumer Loan Market, Captive Finance Company, Differential Loan Performances

Do soldiers seek more mental health care after deployment? Analysis of mental health consultations in the Netherlands Armed Forces following deployment to Afghanistan

Background: Military deployment to combat zones puts military personnel to a number of physical and mental challenges that may adversely affect mental health. Until now, few studies have been performed in Europe on mental health utilization after military deployment. Objective: We compared the incidence of mental health consultations with the Military Mental Health Service (MMHS) of military deployed to Afghanistan to that of non-deployed military personnel. Method: We assessed utilization of the MMHS by the full cohort of the Netherlands Armed Forces enlisted between 2008 and 2010 through linkage of mental health and human resource information systems. Results: The total population consisted of 50,508 military (18,233 deployed, 32,275 non-deployed), who accounted for 1,906 new consultations with the MMHS. The follow-up was limited to the first 2 years following deployment. We observed higher mental health care utilization in deployed vs. non-deployed military personnel; hazard ratio (HR), adjusted for sex, military branch and time in service, 1.84 [95% CI 1.61–2.11] in the first and 1.28 [1.09–1.49] in the second year after deployment. An increased risk of adjustment disorders (HR 2.59 [2.02–3.32] and 1.74 [1.30–2.32]) and of anxiety disorders (2.22 [1.52–3.25] and 2.28 [1.50–3.45]) including posttraumatic stress disorder (5.15 [2.55–10.40] and 5.28 [2.42–11.50]), but not of mood disorders (1.33 [0.90–1.97] and 1.11 [0.68–1.82]), was observed in deployed personnel in the first- and second-year post-deployment, respectively. Military personnel deployed in a unit with a higher risk of confrontation with potentially traumatic events had a higher HR (2.13 [1.84–2.47] and 1.40 [1.18–1.67]). Conclusions: Though absolute risk was low, in the first and second year following deployment to Afghanistan there was an 80 and 30% higher risk for mental health problems resulting in a consultation with the Dutch MMHS compared to military never deployed to Afghanistan. These observations underscore the need for an adequate mental health infrastructure for those returning from deployment

Evidence for Long-Term Impact of Pasos Adelante: Using a Community-Wide Survey to Evaluate Chronic Disease Risk Modification in Prior Program Participants

Effective community-level chronic disease prevention is critical to population health within developed and developing nations. Pasos Adelante is a preventive intervention that aims to reduce chronic disease risk with evidence of effectiveness in US-Mexico residing, Mexican origin, participants. This intervention and related ones also implemented with community health workers have been shown to improve clinical, behavioral and quality of life indicators; though most evidence is from shorter-term evaluations and/or lack comparison groups. The current study examines the impact of this program using secondary data collected in the community 3–6 years after all participants completed the program. A proportional household survey (N = 708) was used that included 48 respondents who indicated they had participated in Pasos. Using propensity score matching to account for differences in program participants versus other community residents (the program targeted those with diabetes and associated risk factors), 148 natural controls were identified for 37 matched Pasos participants. Testing a range of behavioral and clinical indicators of chronic disease risk, logistic regression models accounting for selection bias showed two significant findings; Pasos participants were more physically active and drank less whole milk. These findings add to the evidence of the effectiveness of Pasos Adalente and related interventions in reducing chronic disease risk in Mexican-origin populations, and illustrate the use of innovative techniques for using secondary, community-level data to complement prior evaluation research

Credit Cards on Campus: Academic Inquiry, Objective Empiricism, or Advocacy Research? A Response

The authors react to the critique by Robert Manning and Ray Kirshak (in this issue) about the paper Usage of Credit Cards Received through College Student- Marketing Programs, which originally appeared in Journal of Student Financial Aid, 2004

Usage of Credit Cards Received Through College Student-Marketing Programs

This article provides benchmark measures of college student credit card usage by utilizing a pooled sample of over 300,000 recently opened credit card accounts. The analysis compares behavior over 12 months of account history for three groups of accounts: those opened by young adults through college student marketing programs; those opened through conventional marketing channels by young adults ages 18-24; and those opened through conventional channels by older adults. Results indicate that student marketed accounts have smaller balances, lower credit limits, and lower utilization rates than accounts opened by the other groups. Student accounts are more likely to be delinquent and have a higher likelihood of charge-off, but both the delinquency and charge-off rates for student accounts and non-student-marketed accounts of young adults converged within 24 months. These findings are consistent with card issuers’ statements that they establish student accounts with relatively low credit limits expecting that the large majority of new, young cardholders will learn how to manage a credit card, establish a credit history, and become longer-term customers

Local Refinement of Three-Dimensional Finite Element Meshes

Mesh refinement is an important tool for editing finite element meshes in order to increase the accuracy of the solution. Refinement is performed in an iterative procedure in which a solution is found, error estimates are calculated, and elements in regions of high error are refined. This process is repeated until the desired accuracy is obtained. Much research has been done on mesh refinement. Research has been focused on two-dimensional meshes and three-dimensional tetrahedral meshes ([1] Ning et al. (1993) Finite Elements in Analysis and Design, 13, 299–318; [2] Rivara, M. (1991) Journal of Computational and Applied Mathematics 36, 79–89; [3] Kallinderis; Vijayar (1993) AIAA Journal,31, 8, 1440–1447; [4] Finite Element Meshes in Analysis and Design,20, 47–70). Some research has been done on three-dimensional hexahedral meshes ([5] Schneiders; Debye (1995) Proceedings IMA Workshop on Modelling, Mesh Generation and Adaptive Numerical Methods for Partial Differential Equations). However, little if any research has been conducted on a refinement algorithm that is general enough to be used with a mesh composed of any three-dimensional element (hexahedra, wedges, pyramids, and/or retrahedra) or any combination of three-dimensional elements (for example, a mesh composed of part hexahedra and part wedges). This paper presents an algorithm for refinement of three-dimensional finite element meshes that is general enough to refine a mesh composed of any combination of the standard three-dimensional element types

Depressive Symptoms and Health-Related Quality of Life Among Participants in the Pasos Adelante Chronic Disease Prevention and Control Program, Arizona, 2005-2008

Introduction Chronic diseases are the leading causes of death in the United States and have been associated with depressive symptoms and poor health-related quality of life (HRQOL). This study examined whether depressive symptoms and HRQOL indicators changed among participants in Pasos Adelante, a chronic disease prevention and control program implemented in a US–Mexico border community. Methods Pasos Adelante was a 12-week promotora-led program that included educational sessions and walking groups. We used the Centers for Epidemiologic Studies Depression Scale (CES-D) and the Center for Disease Control’s “Healthy Days” measures to measure depressive symptoms and HRQOL. We used linear mixed-effects models and general estimating equations to analyze changes in CES-D scores and HRQOL indicators from baseline to postprogram and from postprogram to 3-month follow-up. Results At baseline, participants had a mean of 7.1 physically unhealthy days, 7.4 mentally unhealthy days, and 3.9 days of activity limitation. The mean number of physically and mentally unhealthy days declined significantly from baseline to postprogram, but the mean number of activity limitation days did not. At baseline, 42.6% of participants reported their health as fair/poor; 20.8% of participants reported frequent mental distress, and 31.8% had a CES-D score of 16 or more. All 3 proportions declined from baseline to postprogram. No significant changes occurred between postprogram and follow-up. Conclusion Participants in Pasos Adelante showed improvement in depressive symptoms and several HRQOL indicators. Future studies should use an experimental design with a comparison group to determine whether these findings can be replicated and to examine potential mediators and moderators of program effects

Inequitable Chronic Lead Exposure: A Dual Legacy of Social and Environmental Injustice

Both historic and contemporary factors contribute to the current unequal distribution of lead in urban environments and the disproportionate impact lead exposure has on the health and well-being of low-income minority communities. We consider the enduring impact of lead through the lens of environmental justice, taking into account well-documented geographic concentrations of lead, legacy sources that produce chronic exposures, and intergenerational transfers of risk. We discuss the most promising type of public health action to address inequitable lead exposure and uptake: primordial prevention efforts that address the most fundamental causes of diseases by intervening in structural and systemic inequalities