• KDI Journal of Economic Policy
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• v.40 no.3
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• pp.1-44
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• 2018

This paper studies the macroeconomic effects of an enhancement in unemployment benefits in Korea. In particular, I quantify the welfare effect of two specific policy chances which have been mainly discussed among policymakers in recent years: increasing wage replacement rates by 10%p and extending maximum benefit durations by one month. To this end, I build and calibrate an overlapping generation model which reflects the heterogeneity of the unemployed and the specificity of the unemployment insurance (UI) system in Korea. The quantitative analysis conducted here shows that extending maximum benefit durations by one month improves social welfare, whereas increasing wage replacement rates by 10%p deteriorates social welfare. Extending maximum benefit durations is applied to potentially all the UI recipients, including unemployed workers whose wage before job loss is relatively low and whose marginal utility is relatively high. However, increasing wage replacement rates is applied to only a small number of UI recipients whose wage before job loss is relatively high, while the increase in the UI premium is passed onto all of the employed. This study suggests that given the current UI system and economic environment in Korea, it is more desirable to extend maximum benefit durations rather than to increase wage replacement rates in terms of social welfare.

• Environmental and Resource Economics Review
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• v.24 no.1
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• pp.85-107
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• 2015

This study analyzes the effect of applying hyperbolic social discount rate onto the results of benefit-cost analysis of environmental public investment projects in Korea. In order to check the application possibility to the actual feasibility study, the discount factors generated by hyperbolic function, rather than traditional exponential one, would be applied to the benefit and cost data from the pre-feasibility studies which peformed for environmental public investment projects. The results of this study shows that using hyperbolic social discount rate is effective for enhancing test results, only under the condition of which the full expansion of the time periods of analysis is satisfied. According to the simulation results of this study, to achieve higher benefit/cost ratio by using hyperbolic social discount rate, the period should be increased up to 120 to 150 years at least.

• Journal of the Korean Association of Geographic Information Studies
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• v.6 no.4
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• pp.1-15
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• 2003

Recently, urban information system(UIS) has been developed and utilized by local governments in Korea and has become a key means of urban informatization of local governments. When UIS is conducted only for FM oriented internal utilization regardless of its cost-efficiency, however, its cost-benefit structure could be distorted seriously. The study utilizes benefit cost analysis technique and applied the technique to a model case of Chungju UIS selected by National GIS team. Chungju City developed its GIS for the management of roads and urban planning in 1993. At its beginning, the system was an efficient model with relatively strong cost-benefit structure and could produce positive net benefit 10 years' after its construction. When the city began to develop its facility management with the financial assistance from central government in 1998, however, its cost-benefit structure became distorted. As a result, it is delayed for the UIS to produce positive net benefit until the year of 2015. Using benefit cost ratio, discount rate and Mobile GIS, the study also conducts a sensitivity analysis.

• Journal of Environmental Policy
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• v.10 no.2
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• pp.61-92
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• 2011

We analyzed the efficiency of environment investments by taking examples of central government's environmental investment (CGEI hereafter) and investment in prevention of environmental pollution (IPEP hereafter). We expanded the scope of existing studies by decomposing the internal rate of return (IRR hereafter) and present value of benefit (Bpv hereafter) into variable cost (VC hereafter) reduction, investment cost reduction (STC-VC hereafter), and rent. And we found that Bpv checks only the magnitude of benefit, while IRR indicates the existence of efficiency by investigating short-run total cost (STC hereafter) reduction and rent. Finally, by analyzing investment efficiency and changing benefit with respect to CGEI and IPEP through the investment efficiency methodology that compares IRR with market interest rate, we executed retrospective benefit-cost analysis. Accordingly, CGEI and IPEP are not efficient. However, IPEP is even more inefficient than CGEI.

• Health Policy and Management
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• v.26 no.1
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• pp.63-70
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• 2016

Background: Selective health benefit was introduced for decreasing economic burden of patients. Medical devices with economic uncertainty have been covered as selective health benefit by National Health Insurance since December 2013. We aimed to analyze impact of selective health benefit to medical expenditure and provider behavior focused on electrosurgery (ultrasonic shears, electrothermal bipolar vessel sealers) for gastric cancer patients covered since December 2014. Methods: We used the National Health Insurance claims data of 2,698 patients underwent gastric cancer surgery between August 2014 and March 2015. Medical cost and patient sharing per inpatient day were analyzed to verify that covering electrosurgery increased medical expenditure and changed provider behavior from open surgery to endoscopic or laparoscopic surgery. Additionally, we analyzed the claim rate of medical device or goods relating gastric endoscopic and laparoscopic surgery. Results: Medical cost and patient sharing per inpatient day were increased after covering electosurgery as selective health benefit (39,724/1,421 won). However, there were no medical expenditure increases after adjusting claim of electosurgery and patient sharing was decreased 1,057 won especially. The coverage of selective health benefit did not increase the claim rate of medical device or goods related endoscopic or laparoscopic surgery, either. Conclusion: Covering electosurgery decreased patient economic burden and did not change of provider behavior. Expanding selective health benefit is needed to decrease economic burden of severe patients. Further study should evaluate the long term effect with accumulated data.

• Korean Journal of Occupational Health Nursing
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• v.12 no.2
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• pp.99-109
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• 2003

Although occupational accidents caused by presses are found to be the highest in manufacturing industrial groups, there are no study regarding to annulment for periodical inspection of press. The purpose of this study was to evaluate the economic benefit of periodical inspection of press for preventing accidents. The cost-benefit analysis in this study was conducted to evaluate the relative magnitude of benefit to cost. Study samples were 26 and years analysed were 1995, 1996, 1998 and 1999. Personal interviews with safety managers were held from October 7 to November 2, 2002. Costs of the periodical inspection program were compared with the benefit of accident that caused by presses. Costs and benefits were calculated at an discount rate of 5%. The benefit-cost ratio was 5.7. The sensitivity analysis for the discount rate, the number of press, and size of industry showed that every benefit-cost ratios were upper than one(1.0). The results of this study suggested that periodical inspection for press is important program for preventing accident and the regulation for periodical inspection program should be reenforced by government.

• The Korean Journal of Applied Statistics
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• v.27 no.2
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• pp.211-226
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• 2014

This paper discusses life expectancy differentials of beneficiaries of national pension old-age benefit and benefit-cost analysis in Korea. These results are useful indicators for the assessment of retirement income security of beneficiaries and old-age benefits. This paper analyzes benefit-cost ratio, internal rate of return and generation transfer amount, using life tables by lifetime incomes. The result of the actuarial analysis for male life expectancy is approximately 21.69 to 24.63 years. The result of the actuarial analysis for female life expectancy is approximately 27.63 to 29.81 years. The result of the actuarial analysis of low income level is that the benefit-cost ratio is lower approximately 2.68 to 4.83%, the internal rate of return lower approximately 0.00 to 0.74%, the generation transfer amount lower approximately 3.00 to 5.74%, than total income level. The result of the actuarial analysis of high income level is that the benefit-cost ratio is higher approximately 2.07 to 4.98%, the internal rate of return higher approximately 0.03 to 1.73%, the generation transfer amount higher approximately 2.53 to 9.68%, than the total income level. The results by income varies due to the effect of income redistribution and life expectancy on the national pension.

• Research in Community and Public Health Nursing
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• v.22 no.4
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• pp.438-450
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• 2011

Purpose: This study was to investigate the effect of home visiting care service and to evaluate the effect from the cost-benefit perspective. Methods: Target participants were enrolled in 2007~2008 for home visiting care and provided with a home visiting nursing service for more than 18 months in J Ward of S City. Of 391 participants, 244 who satisfied the inclusion criteria were used in the final analysis. Cost-benefit analysis was done using the net benefit and benefit/cost ratio. Results: After providing the home care nursing service, the blood pressure control rate increased from 50.8% to 75.4%. Of the subjects, 39.8% maintained their blood pressure level within the target range. As a whole, the net benefit of home visiting care per person ranged from 434,964.86 to 447,112.43 won and the benefit/cost ratio ranged from 2.82 to 2.84. Conclusion: Home visiting care for vulnerable populations with hypertension was effective in both maintaining blood pressure and reducing blood pressure to the target range. Therefore these results are especially useful for establishing the value of home visiting services for policy makers as well as for prioritizing vulnerable populations.

• Korean Journal of Social Welfare
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• v.46
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• pp.7-36
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• 2001

The current benefit expenditure of National Pension Scheme is comparatively small, as it stands in the early stage in reference to the historical development. On the other hand, the current contribution rate of National Pension is set up beyond which is sufficient to cover the current benefit expenditure. Therefore, National Pension makes big surplus every year such that the size of accumulated fund increases very fast. Nevertheless, the apprehension of financial instability of National Pension prevails these days. If so, is it really well-grounded? In terms of the method of financing. public pension schemes of most of all nations in the world are based on pay-as you go or partial funding. Under these financing methods, financial soundness fundamentally depends on the power that the government is able to impose the burden which is equivalent to benefit expenditure and the attitude of the public which represents whether they will admit it or not. Under this perspective, the judgement of financial soundness of public pension can not be made arithmetically and technically only on the basis of the balance between receipts and expenditure but should be accomplished considering the very complex and diverse aspects. In these context, this paper defines what the financial soundness of public pension means specifically and presents the objective indices which help judge it, that is, implicit debt, cost rate, summarized cost rate, pension expenditure as percentage of GDP, and fund rate. Then, applying the indices, this paper analyzes the long-term financial situation of National Pension empirically and evaluates its financial soundness in exploratory perspective.

• Environmental and Resource Economics Review
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• v.28 no.1
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• pp.95-120
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• 2019

As the Nagoya Protocol has been in effect since 2014, firms that invest in projects related with the genetic resources should establish methods to share the benefits arising from using genetic resources with the country providing such resources. The objective of this paper is to investigate the factors that affect the genetic resources related investment decisions under the Nagoya Protocol. Specifically, we construct the model of Sharpley value and benefit sharing rate in order to consider the results of benefit sharing with a providing country under the Real Options, and simulate the model in the context of Madagascar Banana project. The results show that the product time to market, benefit sharing rate, and discount rate significantly influence the investment decisions.