• Title/Summary/Keyword: Impact categories

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The Effect of Workplace Flexibility on Employees' Organizational Commitment (직장 유연성이 종업원의 조직몰입에 미치는 영향)

  • Chang, Ouk-jin;Lee, Sang-jik
    • Journal of Venture Innovation
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    • v.6 no.3
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    • pp.185-202
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    • 2023
  • The COVID-19 pandemic catalyzed major changes in our work environment, underscoring the critical role of workplace flexibility. While a wealth of research exists on specific flexible work strategies and schedules, a broader understanding of workplace flexibility has been somewhat overlooked. This study aimed to bridge this gap by examining the correlation between workplace flexibility and organizational commitment. Our sample consisted of 300 employees from foreign businesses in the ICT(information and communications technology) service sector and the manufacturing industry, along with those from the top 50 leading Korean enterprises. We bifurcated workplace flexibility into two distinct categories for this study: quantitative and qualitative. Our results revealed that within the quantitative category, the flexibility of continuity of work and flexible place significantly enhanced organizational commitment. Interestingly, the flexibility of work schedules didn't have a marked impact on commitment levels. On the qualitative side, job autonomy and teamwork emerged as significant drivers of organizational commitment. It's worth noting that qualitative aspects of workplace flexibility had a more pronounced effect on organizational commitment than the quantitative elements. These findings highlight the necessity of approaching workplace flexibility from a comprehensive perspective, embracing both its quantitative and qualitative dimensions. For businesses aiming to maximize the benefits of flexibility, it's essential to cultivate a culture of open communication, champion collaboration, and prioritize job autonomy and teamwork. Establishing a work environment that actively supports feedback-oriented communication stands as a key component in this endeavor.

Analysis of Hydro-Mechanical Coupling Behavior Considering Excavation Damaged Zone in HLW Repository (고준위방사성폐기물 처분장에서의 굴착손상대를 고려한 수리-역학적 복합거동 해석)

  • Jeewon Lee;Minju Kim;Sangki Kwon
    • Explosives and Blasting
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    • v.41 no.3
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    • pp.38-61
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    • 2023
  • An Excavation Damaged Zone(EDZ) caused by blasting impact changes rock properties, in situ stress distribution, etc., and its effects are noticeable at around a radioactive waste repository located at deep underground. In particular, the increase in permeability due to the formation of cracks may significantly increase the amount of groundwater inflow and the possibility of radioactive nuclide outflow. In this study, FLAC2D and FLAC3D were used to analyze the mechanical and thermal behaviors for three categories: a)No EDZ, b)Uniform EDZ, and c)Random EDZ. It was found that the tunnel displacement in the Random EDZ case was 423% higher than that in the No EDZ case and was 16% higher than that in the Uniform EDZ case. Tunnel inflow in the Random EDZ was also 17.3% and 10.8% higher than that in the No EDZ and the Uniform EDZ case, respectively. The permeability around the tunnel was increased by up to 10 times in the corner of the tunnel wall and roof due to the stress redistribution after excavation. From the computer simulation, it was found that the permeability around the tunnel wall was partially increased but the overall tunnel inflow was decreased with increase of stress ratio. Mechanical analysis using FLAC 3D showed similar results. Slight difference between 2D and 3D could be explained with the development of plastic zone during the advance of tunnel excavation in 3D.

Investigation of False Positive Rates Newborn Screening using Tandem Mass Spectrometry (TMS) Technology in Single Center (단일기관에서 이중 질량 분석법(tandem mass spectrometry technology)을 이용한 선천성 대사이상 검사의 위양성율에 대한 연구)

  • Kim, Hyunsoo;Shin, Son Moon;Ko, Sun Young;Lee, Yeon Kyung;Park, Sung Won
    • Journal of The Korean Society of Inherited Metabolic disease
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    • v.16 no.1
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    • pp.18-23
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    • 2016
  • Objective: Newborn screening leads to improved treatment and disease outcomes, but false-positive newborn screening results may impact include parental stress and anxiety, perception of child as unhealthy, parent-child relationship dysfunction, and increased infant hospitalizations. The purpose of this study was to investigate of the false positive rates and the causative factors of false positive results in Tandem Mass Spectrometry (TMS) in single center. Methods: Records were reviewed for all 18,872 subjects who were born in Cheill General Hospital, during January 1st, 2012 to December 31st, 2014. 17,292 neonates (91.62%) were tested for tandem mass screening almost in 2-5th day of life. Newborn babies whose first results were abnormal had been tested repeatedly by same methods in 7-14 day. If the results were abnormal again, further evaluation was performed. TMS analysis included data for the 43 disorders screened for using TMS broken down into three categories: fatty acid oxidation disorders, organic acidurias, and aminoacidopathies. The impact of several factors on increased false positive rates was analyzed using a multivariate analysis: time from birth to sample collection, birth weight, birth height, BMI, gender, gestational age, delivery type. Results: Males of the subjects were 8942 (51.7%), female 8350 (48.3%), the mean gestational age was $38.6{\pm}1.7$ weeks, the average birth weight $3,155.6{\pm}502.4g$, the average birth height $49.1{\pm}2.9cm$, and the average BMI $13.0{\pm}3.8(kg/m^2)$. Vaginal delivery cases were 9713 (56.2%), caesarean section 7,579 (43.8%). The average date of the inspection was $2.8{\pm}1.1$ days. 224 cases were identified as TMS positive. All the subjects were false positive (222/17,292, 1.30%) except 2 cases (1 male; benign phenylketonuria and 1 female; Short chain acyl-CoA dehydrogenase deficiency). The false positive rates were 0.61% in fatty acid oxidation disorders, 0.25% in organic acidurias, and 0.45% in aminoacidopathies. In our study, the date of inspection got late, the false positive rates got higher. Because almost the cases of late test date were in treatment in neonatal intensive care unit so their test date was affected by their medical conditions. False positive rate was higher in extreme immaturity${\leq}27$ weeks than newborns of gestational age >27 weeks [OR=6.957 (CI=1.273-38.008), p<0.025] and extremely low birth weight<1,000 g than newborns of birthweight ${\geq}1,000g$ [OR=5.616 (CI=1.134-27.820), p<0.035]. Conclusion: False positive rate of TMS was 1.30% in Cheil General Hospital. Lower gestational age and birth weight impacted on increased false positive rates. Better understanding of factors that influence the reporting of screening tests, and the ability to modify these important factors, may improve the screening process and reduce the need for retesting. of screening tests, and the ability to modify these important factors, may improve the screening process and reduce the need for retesting.

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Product Community Analysis Using Opinion Mining and Network Analysis: Movie Performance Prediction Case (오피니언 마이닝과 네트워크 분석을 활용한 상품 커뮤니티 분석: 영화 흥행성과 예측 사례)

  • Jin, Yu;Kim, Jungsoo;Kim, Jongwoo
    • Journal of Intelligence and Information Systems
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    • v.20 no.1
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    • pp.49-65
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    • 2014
  • Word of Mouth (WOM) is a behavior used by consumers to transfer or communicate their product or service experience to other consumers. Due to the popularity of social media such as Facebook, Twitter, blogs, and online communities, electronic WOM (e-WOM) has become important to the success of products or services. As a result, most enterprises pay close attention to e-WOM for their products or services. This is especially important for movies, as these are experiential products. This paper aims to identify the network factors of an online movie community that impact box office revenue using social network analysis. In addition to traditional WOM factors (volume and valence of WOM), network centrality measures of the online community are included as influential factors in box office revenue. Based on previous research results, we develop five hypotheses on the relationships between potential influential factors (WOM volume, WOM valence, degree centrality, betweenness centrality, closeness centrality) and box office revenue. The first hypothesis is that the accumulated volume of WOM in online product communities is positively related to the total revenue of movies. The second hypothesis is that the accumulated valence of WOM in online product communities is positively related to the total revenue of movies. The third hypothesis is that the average of degree centralities of reviewers in online product communities is positively related to the total revenue of movies. The fourth hypothesis is that the average of betweenness centralities of reviewers in online product communities is positively related to the total revenue of movies. The fifth hypothesis is that the average of betweenness centralities of reviewers in online product communities is positively related to the total revenue of movies. To verify our research model, we collect movie review data from the Internet Movie Database (IMDb), which is a representative online movie community, and movie revenue data from the Box-Office-Mojo website. The movies in this analysis include weekly top-10 movies from September 1, 2012, to September 1, 2013, with in total. We collect movie metadata such as screening periods and user ratings; and community data in IMDb including reviewer identification, review content, review times, responder identification, reply content, reply times, and reply relationships. For the same period, the revenue data from Box-Office-Mojo is collected on a weekly basis. Movie community networks are constructed based on reply relationships between reviewers. Using a social network analysis tool, NodeXL, we calculate the averages of three centralities including degree, betweenness, and closeness centrality for each movie. Correlation analysis of focal variables and the dependent variable (final revenue) shows that three centrality measures are highly correlated, prompting us to perform multiple regressions separately with each centrality measure. Consistent with previous research results, our regression analysis results show that the volume and valence of WOM are positively related to the final box office revenue of movies. Moreover, the averages of betweenness centralities from initial community networks impact the final movie revenues. However, both of the averages of degree centralities and closeness centralities do not influence final movie performance. Based on the regression results, three hypotheses, 1, 2, and 4, are accepted, and two hypotheses, 3 and 5, are rejected. This study tries to link the network structure of e-WOM on online product communities with the product's performance. Based on the analysis of a real online movie community, the results show that online community network structures can work as a predictor of movie performance. The results show that the betweenness centralities of the reviewer community are critical for the prediction of movie performance. However, degree centralities and closeness centralities do not influence movie performance. As future research topics, similar analyses are required for other product categories such as electronic goods and online content to generalize the study results.

The Effect of Price Promotional Information about Brand on Consumer's Quality Perception: Conditioning on Pretrial Brand (품패개격촉소신식대소비자질량인지적영향(品牌价格促销信息对消费者质量认知的影响))

  • Lee, Min-Hoon;Lim, Hang-Seop
    • Journal of Global Scholars of Marketing Science
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    • v.19 no.3
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    • pp.17-27
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    • 2009
  • Price promotion typically reduces the price for a given quantity or increases the quantity available at the same price, thereby enhancing value and creating an economic incentive to purchase. It often is used to encourage product or service trial among nonusers of products or services. Thus, it is important to understand the effects of price promotions on quality perception made by consumer who do not have prior experience with the promoted brand. However, if consumers associate a price promotion itself with inferior brand quality, the promotion may not achieve the sales increase the economic incentives otherwise might have produced. More specifically, low qualitative perception through price promotion will undercut the economic and psychological incentives and reduce the likelihood of purchase. Thus, it is important for marketers to understand how price promotional informations about a brand have impact on consumer's unfavorable quality perception of the brand. Previous literatures on the effects of price promotions on quality perception reveal inconsistent explanations. Some focused on the unfavorable effect of price promotion on consumer's perception. But others showed that price promotions didn't raise unfavorable perception on the brand. Prior researches found these inconsistent results related to the timing of the price promotion's exposure and quality evaluation relative to trial. And, whether the consumer has been experienced with the product promotions in the past or not may moderate the effects. A few studies considered differences among product categories as fundamental factors. The purpose of this research is to investigate the effect of price promotional informations on consumer's unfavorable quality perception under the different conditions. The author controlled the timing of the promotional exposure and varied past promotional patterns and information presenting patterns. Unlike previous researches, the author examined the effects of price promotions setting limit to pretrial situation by controlling potentially moderating effects of prior personal experience with the brand. This manipulations enable to resolve possible controversies in relation to this issue. And this manipulation is meaningful for the work sector. Price promotion is not only used to target existing consumers but also to encourage product or service trial among nonusers of products or services. Thus, it is important for marketers to understand how price promotional informations about a brand have impact on consumer's unfavorable quality perception of the brand. If consumers associate a price promotion itself with inferior quality about unused brand, the promotion may not achieve the sales increase the economic incentives otherwise might have produced. In addition, if the price promotion ends, the consumer that have purchased that certain brand will likely to display sharply decreased repurchasing behavior. Through a literature review, hypothesis 1 was set as follows to investigate the adjustive effect of past price promotion on quality perception made by consumers; The influence that price promotion of unused brand have on quality perception made by consumers will be adjusted by past price promotion activity of the brand. In other words, a price promotion of an unused brand that have not done a price promotion in the past will have a unfavorable effect on quality perception made by consumer. Hypothesis 2-1 was set as follows : When an unused brand undertakes price promotion for the first time, the information presenting pattern of price promotion will have an effect on the consumer's attribution for the cause of the price promotion. Hypothesis 2-2 was set as follows : The more consumer dispositionally attribute the cause of price promotion, the more unfavorable the quality perception made by consumer will be. Through test 1, the subjects were given a brief explanation of the product and the brand before they were provided with a $2{\times}2$ factorial design that has 4 patterns of price promotion (presence or absence of past price promotion * presence or absence of current price promotion) and the explanation describing the price promotion pattern of each cell. Then the perceived quality of imaginary brand WAVEX was evaluated in the scale of 7. The reason tennis racket was chosen is because the selected product group must have had almost no past price promotions to eliminate the influence of average frequency of promotion on the value of price promotional information as Raghubir and Corfman (1999) pointed out. Test 2 was also carried out on students of the same management faculty of test 1 with tennis racket as the product group. As with test 1, subjects with average familiarity for the product group and low familiarity for the brand was selected. Each subjects were assigned to one of the two cells representing two different information presenting patterns of price promotion of WAVEX (case where the reason behind price promotion was provided/case where the reason behind price promotion was not provided). Subjects looked at each promotional information before evaluating the perceived quality of the brand WAVEX in the scale of 7. The effect of price promotion for unfamiliar pretrial brand on consumer's perceived quality was proved to be moderated with the presence or absence of past price promotion. The consistency with past promotional behavior is important variable that makes unfavorable effect on brand evaluations get worse. If the price promotion for the brand has never been carried out before, price promotion activity may have more unfavorable effects on consumer's quality perception. Second, when the price promotion of unfamiliar pretrial brand was executed for the first time, presenting method of informations has impact on consumer's attribution for the cause of firm's promotion. And the unfavorable effect of quality perception is higher when the consumer does dispositional attribution comparing with situational attribution. Unlike the previous studies where the main focus was the absence or presence of favorable or unfavorable motivation from situational/dispositional attribution, the focus of this study was exaus ing the fact that a situational attribution can be inferred even if the consumer employs a dispositional attribution on the price promotional behavior, if the company provides a persuasive reason. Such approach, in academic perspectih sis a large significance in that it explained the anchoring and adjng ch approcedures by applying it to a non-mathematical problem unlike the previous studies where it wis ionaly explained by applying it to a mathematical problem. In other wordn, there is a highrspedency tmatispositionally attribute other's behaviors according to the fuedach aal attribution errors and when this is applied to the situation of price promotions, we can infer that consumers are likely tmatispositionally attribute the company's price promotion behaviors. Ha ever, even ueder these circumstances, the company can adjng the consumer's anchoring tmareduce the po wibiliute thdispositional attribution. Furthermore, unlike majority of previous researches on short/long-term effects of price promotion that only considered the effect of price promotions on consumer's purchasing behaviors, this research measured the effect on perceived quality, one of man elements that affects the purchasing behavior of consumers. These results carry useful implications for the work sector. A guideline of effectively providing promotional informations for a new brand can be suggested through the outcomes of this research. If the brand is to avoid false implications such as inferior quality while implementing a price promotion strategy, it must provide a clear and acceptable reasons behind the promotion. Especially it is more important for the company with no past price promotion to provide a clear reason. An inconsistent behavior can be the cause of consumer's distrust and anxiety. This is also one of the most important factor of risk of endless price wars. Price promotions without prior notice can buy doubt from consumers not market share.

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Development of Practical Problem-focused teaching plans for Teenagers' 'Preparation for Successful aging' in the 'Family life in old age' unit (고등학생의 '성공적인 노후생활 준비교육'을 위한 실천적 문제 중심 가정과 수업의 교수 설계와 개발)

  • Lee, Jong-Hui;Cho, Byung-Eun
    • Journal of Korean Home Economics Education Association
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    • v.23 no.3
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    • pp.161-183
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    • 2011
  • This study aims to design, develop the impact of a high school course in practical problem- focused teaching plan which will enable students to deal with an aging society, and prepare well for the aging by looking at issues the elderly face. This study set a target of analyzing the 2007 revised curriculum manual to develop instructor-led teaching and learning plans for 'Successful aging preparation'. Five common subjects were reframed on a practical problem basis through factor analysis of preliminary research regarding aging education for teenagers and the 2007 revised curriculum and textbooks of Technology Home Economics, and Human Development. The practical problem was 'What do we need to do to Successfully live an independent life in aging?', and the subjects studied to answer this question were the aging society and population changes. the nature of the elderly, aging preparation, care of the elderly, and welfare services for the elderly. These five subjects were grouped under the main categories of The Aging Society. Understanding the Elderly, and aging Preparation. The ultimate objective of the lessons was, through critical reasoning, to inquire into the causes of current problems the elderly face so that teenagers can understand aging societies and the elderly, and prepare for a Successful aging. Another objective was to seek reasonable alternatives for teenagers as they prepare for Successful and independent aging, and increase their problem-solving abilities in choosing the best course of action by considering the ripple effect of consequences of each of those alternatives. The practical problem-teaching lesson plans consisted of five classes on practical reasoning instruction. This study suggests that new high school curricula should include lessons on preparation for aging so that students can deal successfully with our aging society.

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The Role of Open Innovation for SME's R&D Success (중소기업 R&D 성공에 있어서 개방형 혁신의 효과에 관한 연구)

  • Yoo, In-Jin;Seo, Bong-Goon;Park, Do-Hyung
    • Journal of Intelligence and Information Systems
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    • v.24 no.3
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    • pp.89-117
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    • 2018
  • The Korean companies are intensifying competition with not only domestic companies but also foreign companies in globalization. In this environment, it is essential activities not only for large companies but also Small and Medium Enterprises (SMEs) to get and develop the core competency. Particularly, SMEs that are inferior to resources of various aspects, such as financial resources etc., can make innovation through effective R&D investment. And then, SMEs can occupy a competency and can be survive at the environment. Conventionally, the method of "self-development" by using only the internal resources of the company has been dominant. Recently, however, R&D method through cooperation, also called "Open Innovation", is emerging. Especially SMEs are relatively short of available internal resources. Therefore, it is necessary to utilize technology and resources through cooperation with external companies(such as joint development or contract development etc.) rather than self-development R&D. In this context, we confirmed the effect of SMEs' factors on sales in Korea. Specifically, the factors that SMEs hold are classified as 'Technical characteristic', 'Company competency', and 'R&D activity' and analyzed how they influence the sales achieved as a result of R&D. The analysis was based on a two-year statistical survey conducted by the Korean government. In addition, we confirmed the influence of the factors on the sales according to the R&D method(Self-Development vs. Open Innovation), and also observed the influence change in 29 industrial categories. The results of the study are summarized as follows: First, regression analysis shows that twelve factors of SMEs have a significant effect on sales. Specifically, 15 factors included in the analysis, 12 factors excluding 3 factors were found to have significant influence. In the technical characteristic, 'imitation period' and 'product life cycle' of the technology were confirmed. In the company competency, 'R&D led person', 'researcher number', 'intellectual property registration status', 'number of R&D attempts', and 'ratio of success to trial' were confirmed. The R&D activity was found to have a significant impact on all included factors. Second, the influence of factors on the R&D method was confirmed, and the change was confirmed in four factors. In addition, these factors were found that have different effects on sales according to the R&D method. Specifically, 'researcher number', 'number of R&D attempts', 'performance compensation system', and 'R&D investment' were found to have significant moderate effects. In other words, the moderating effect of open innovation was confirmed for four factors. Third, on the industrial classification, it is confirmed that different factors have a significant influence on each industrial classification. At this point, it was confirmed that at least one factor, up to nine factors had a significant effect on the sales according to the industrial classification. Furthermore, different moderate effects have been confirmed in the industrial classification and R&D method. In the moderate effect, up to eight significant moderate effects were confirmed according to the industrial classification. In particular, 'R&D investment' and 'performance compensation system' were confirmed to be the most common moderating effect by each 12 times and 11 times in all industrial classification. This study provides the following suggestions: First, it is necessary for SMEs to determine the R&D method in consideration of the characteristics of the technology to be R&D as well as the enterprise competency and the R&D activity. In addition, there is a need to identify and concentrate on the factors that increase sales in R&D decisions, which are mainly affected by the industry classification to which the company belongs. Second, governments that support SMEs' R&D need to provide guidelines that are fit to their situation. It is necessary to differentiate the support for the company considering various factors such as technology and R&D purpose for their effective budget execution. Finally, based on the results of this study, we urge the need to reconsider the effectiveness of existing SME support policies.

Risk Assessment Model for the Delay Protocol in the Conditions of Contract of International Construction Projects (해외 건설공사 공기지연사건의 합리적 대응을 위한 계약조건 리스크 평가 방법)

  • Lee, Hwangku;Shin, Dongwoo;Kim, Kyungrai;Cha, Heesung;Kim, Youngjae
    • Korean Journal of Construction Engineering and Management
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    • v.18 no.6
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    • pp.65-77
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    • 2017
  • Recently, many Korean major construction companies are suffering from profit loss mainly due to a direct impact from delays in their overseas projects. In general, changes are inevitable in a large-scale project, and most of changes are directly linked to construction delay. Therefore, in the event that an extension of time is necessary due to a change, the contractor must manage the delay based on the condition of the contract to effectively manage risks from delay to the completion date. Thus it is important to understand delay protocol defined in the condition of the contract early in the project, but there have been few or no study to propose methodology or tool to support this effort. This paper presents a review on the project planning and controling practices of major Korean construction companies along with the issues on delay claims and disputes in mega-international projects and suggests a tool to assess delay risk in the condition of the contract. To propose a delay risk assessment model for international construction projects, major standard conditions of contract have been reviewed including FIDIC Red Book(1999), PSSCOC(2014) and SIA 9th Edition(2010). To reflect recent trend of major international owners, standard conditions which they are utilizing for their projects also have been reviewed including those of ARAMCO and QP. The model provides a categories of risks to be reviewed on the condition of the contract along with standard level of the risk which is common in the international standard form of the contracts. This study also performed a case study on an actual international project to confirm the effectiveness of proposed model to identify and respond to a delay risk of a project.

Standardization of Korean Version of Daily Stress Inventory(K-DSI) (한국어판 일상 생활 스트레스 척도(K-DSI)의 표준화 연구)

  • Joe, Sook-Haeng;Lee, Hyeon-Soo;Song, Hyun-Cheol;Kim, Seung-Hyun;Sub, Kwang-Yun;Sin, Dong-Kyun;Ko, Seung-Duk
    • Korean Journal of Psychosomatic Medicine
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    • v.8 no.1
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    • pp.72-87
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    • 2000
  • Objectives : This study was to provide normative data of Korean version of DSI(K-DSI), a sensitive measure of relatively minor stressors that could be administered daily. Methods : K-DSI was administered in 524 adults, age of 19 or over, daily for 1 week. On the seventh day, Becks Depression Inventory(BDI), State-Trait Anxiety Inventory(STAI), and Social Readjustment Rating Scale(SRRS) were also given to test the convergent validity. Analyses(ANOVA or t-test) were conducted to examine the potential effects of demographic variables on K-DSI score. Internal consistency for reliability and Pearson's corelation coefficient with BDI, STAI, SRRS for convergent validity were computed. Percentile scores were calculated for daily and weekly K-DSI Event, Impact and I/E Ratio scores. Results : K-DSI scores in women were higher than those in men. According to age and educational level, the younger and the higher educational level the normative groups were, the higher were K-DSI scores. Among the 5 categories of the inventory, the category of cognitive stressors was highest. Internal consistency of K-DSI(Cronbach's $\alpha$) was .99. Daily and Weekly events and impacts scores were significantly correlated with the scores of State-Trait Anxiety Inventory, Social Readjustment Rating Scale, and Beck Depression Inventory. 75 percentile scores of the daily/weekly Events, Impacts, and I/E ratio were 17/118 - 124, 57/368 - 389 and 3.48 - 3.49/3.47 - 3.48 respectively. And 95 percentile scores of daily/weekly Events, Impacts, and I/E ratio were 57/151- 161, 405/1038 - 1122, and 4.72 - 4.86/4.46 - 4.56 respectively. Conclusion : Reliability and validity of K-DSI were tested satisfactorily. Authors presented the normative data of K-DSI for Koreans. K-DSI could be a useful measure in clinical settings or researches to assess the minor stressors frequently experienced in everyday life.

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Effects of Private Insurance on Medical Expenditure (민간의료보험 가입이 의료이용에 미치는 영향)

  • Yun, Hee Suk
    • KDI Journal of Economic Policy
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    • v.30 no.2
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    • pp.99-128
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    • 2008
  • Nearly all Koreans are insured through National Health Insurance(NHI). While NHI coverage is nearly universal, it is not complete. Coverage is largely limited to minimal level of hospital and physician expenses, and copayments are required in each case. As a result, Korea's public insurance system covers roughly 50% of overall individual health expenditures, and the remaining 50% consists of copayments for basic services, spending on services that are either not covered or poorly covered by the public system. In response to these gaps in the public system, 64% of the Korean population has supplemental private health insurance. Expansion of private health insurance raises negative externality issue. Like public financing schemes in other countries, the Korean system imposes cost-sharing on patients as a strategy for controlling utilization. Because most insurance policies reimburse patients for their out-of-pocket payments, supplemental insurance is likely to negate the impact of the policy, raising both total and public sector health spending. So far, most empirical analysis of supplemental health insurance to date has focused on the US Medigap programme. It is found that those with supplements apparently consume more health care. Two reasons for higher health care consumption by those with supplements suggest themselves. One is the moral hazard effect: by eliminating copayments and deductibles, supplements reduce the marginal price of care and induce additional consumption. The other explanation is that supplements are purchased by those who anticipate high health expenditures - adverse effect. The main issue addressed has been the separation of the moral hazard effect from the adverse selection one. The general conclusion is that the evidence on adverse selection based on observable variables is mixed. This article investigates the extent to which private supplementary insurance affect use of health care services by public health insurance enrollees, using Korean administrative data and private supplements related data collected through all relevant private insurance companies. I applied a multivariate two-part model to analyze the effects of various types of supplements on the likelihood and level of public health insurance spending and estimated marginal effects of supplements. Separate models were estimated for inpatients and outpatients in public insurance spending. The first part of the model estimated the likelihood of positive spending using probit regression, and the second part estimated the log of spending for those with positive spending. Use of a detailed information of individuals' public health insurance from administration data and of private insurance status from insurance companies made it possible to control for health status, the types of supplemental insurance owned by theses individuals, and other factors that explain spending variations across supplemental insurance categories in isolating the effects of supplemental insurance. Data from 2004 to 2006 were used, and this study found that private insurance increased the probability of a physician visit by less than 1 percent and a hospital admission by about 1 percent. However, supplemental insurance was not found to be associated with a bigger health care service utilization. Two-part models of health care utilization and expenditures showed that those without supplemental insurance had higher inpatient and outpatient expenditures than those with supplements, even after controlling for observable differences.

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