NMSU Business Outlook: October 2013

Economic Development Through a Single Industry Driver: The Queretaro Mexico Example

Michael G. Ellis, Department of Economics, New Mexico State University

We would all like to speed up economic development. At least that’s the story told by development officers in every state and municipality throughout the country. Some areas are poster children for success. The “Silicon Valley” and the North Carolina Research Triangle come to mind. Does that necessarily mean that we can simply duplicate their paths to success? The answer generally, is “no” since many have tried and failed.

Complete Article: Economic Development Through a Single Industry Driver: The Queretaro Mexico Example

Pay as You Drive May Transform the Automobile Insurance Industry

Professor Tim Query, Department of Finance, New Mexico State University

Automobile insurance companies are continuously seeking better methods to improve customer segmentation in an effort to remain competitive in underwriting and pricing risk. They have adopted numerous rating variables, and in some cases, proxy variables to enhance the metrics of each customer’s level of riskiness. For example, credit-based insurance scores are numbers calculated from bill-paying and loan data collected by the major credit bureaus, and are used by over 90 percent of insurers. While seen as controversial by some, as critics contend it penalizes consumer who are victims of medical or economic catastrophes, numerous studies have shown a very strong correlation between a consumer’s financial history and his/her future insurance loss potential.

Complete Article: Pay as You Drive May Transform the Automobile Insurance Industry

Talking Points

Christopher A. Erickson

The big issue for New Mexico is the Government Shutdown. More than a 1000 federal government employees have applied state unemployment benefits. The important date for New Mexico is October 21st, when both Sandia and Los Alamos national laboratories report they will begin furloughing 13,000 employees.

Complete Article: Talking Points


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