Predicting the cost of environmental management system adoption: the role of capabilities,resources and ownership structure

This research explores why some facilities accrue greater costs when adopting an environmental management system (EMS) and why costs vary among three different ownership structures. Using survey data of organizations that documented their EMS adoption costs over a 3‐year period, the results show that publicly traded facilities had stronger complementary capabilities prior to EMS adoption and therefore lower adoption costs. By contrast, government facilities and privately owned enterprises had fewer capabilities and accrued higher EMS adoption costs. The development of organizational capabilities and resources therefore appears to be a function of both organizational exploitation of imperfect or incomplete market factors, and the institutional context of these decisions. Copyright © 2006 John Wiley & Sons, Ltd.     

Approximation of Optimal Reinsurance and Dividend Payout Policies

We consider the stochastic process of the liquid assets of an insurance company assuming that the management can control this process in two ways: first, the risk exposure can be reduced by affecting reinsurance, but this decreases the premium income; and second, a dividend has to be paid out to the shareholders. The aim is to maximize the expected discounted dividend payout until the time of bankruptcy. The classical approach is to model the liquid assets or risk reserve process of the company as a piecewise deterministic Markov process. However, within this setting the control problem is very hard. Recently several papers have modeled this problem as a controlled diffusion, presuming that the policy obtained is in some sense good for the piecewise deterministic problem as well. We will clarify this statement in our paper. More precisely, we will first show that the value function of the controlled diffusion provides an asymptotic upper bound for the value functions of the piecewise deterministic problems under diffusion scaling. Finally it will be shown that the upper bound is achieved in the limit under the optimal feedback control of the diffusion problem. This property is called asymptotic optimality .     

The military in politics: Who benefits and how

The purpose of this paper is to demonstrate the complexity of evaluating the political role of Third-World militaries and to underline the necessity of including many different kinds of information into analyses of that role.Four broad societal groups are identified which might be expected to benefit the most by some degree of military involvement in the economic and political life of a country: domestic civilian groups, the military as an institution, individuals within the military, and foreign groups. Some of the major reasons why each of these groups may favour a political and economic role for the military are outlined and examples are provided throughout of how these elements have operated in practice. The way in which the interests of the four broad groups may coincide is also discussed.     

On the job and co-worker commitment of Dutch agency workers and permanent employees

This article explores the relationship between employment status (agency workers vs. permanent employees) and affective and normative job and co-worker commitment. Our study was conducted on employees from four metal companies in the Netherlands. As HRM practices seem to influence employee commitment, we performed 89 interviews across all four companies and included blue-collar workers, their managers (direct supervisors, HR managers and production managers), as well as works council members. To test our hypotheses on commitment differences, we conducted quantitative research within the companies (permanent employees N = 167; agency workers N = 54), all blue-collar workers. Results show that permanent employees and agency workers express similar degrees of commitment to their job and to their co-workers, apart from affective commitment to co-workers, which is lower for agency workers than for permanent workers. We argue that national legislation, as well as managers' attempts to offer HR practices equal to those of permanent staff, play a prominent role in stimulating agency workers' commitment.     

Coupling smiles

The present paper addresses the problem of computing implied volatilities of options written on a domestic asset based on implied volatilities of options on the same asset expressed in a foreign currency and the exchange rate. It proposes an original method together with explicit formulae to compute the at-the-money implied volatility, the smile's skew, convexity, and term structure for short maturities. The method is completely free of any model specification or Markov assumption; it only assumes that jumps are not present. We also investigate how the method performs on the particular example of the currency triplet dollar, euro, yen. We find a very satisfactory agreement between our formulae and the market at one week and one month maturities.     

Tax credits,labour participation and home production in the Netherlands

We set up a dynamic reduced form model of labour market participation for women who balance career and motherhood. The model accounts for the occurrence of future child birth and early retirement, and includes home production; however, it does not require the estimation of a structural model. Careful implementation of pension institutions can return optimal life patterns of participation without the need of a structural approach. The weaker theoretical framework is compensated by the rich spectrum of possible policy simulations. As illustration, we simulate the effect of two tax credits policy options on the hazard rate out of work.     

Scale,Technique and Composition Effects in Manufacturing SO<Subscript>2</Subscript> Emissions

Combining two data sources on emissions with value-added and employment data, this paper constructs six data bases on sulfur dioxide (SO₂) intensities that vary across countries, sectors and years. This allows us to perform a growth decomposition exercise where the change in world manufacturing emissions is decomposed into scale, composition and technique effects. The sample covers the period 1990–2000, and includes 62 countries that account for 76% of world-wide emissions. While manufacturing activity has increased by a rough 10% (scale effect), we estimate that emissions have fallen by about 10%, thanks to the adoption of cleaner production techniques (the technique effect) and a small shift towards cleaner industries (between-sector effect). As output and productivity gains have been biased towards large emerging countries like China and India, which are both clean in terms of emissions per unit labor and dirty in terms of emissions per dollar, the sign and magnitude of the between-country effect depends on the choice regarding the scaling factor ( − 2% for employment,  + 25% for value-added, with a corresponding adjustment of the technique effect). The paper also shows that these estimates are robust to changes in aggregation across entities (regions or countries) and across industries, and that composition changes are correlated with changes in prices and trade intensities.

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Electronic supplementary material  The online version of this article (doi:) contains supplementary material, which is available to authorized users.      

Household portfolio choices,health status and health care systems: A cross-country analysis based on SHARE

Health risk is increasingly viewed as an important form of background risk that affects household portfolio decisions. However, its role might be mediated by the presence of a protective full-coverage national health service that could reduce households’ probability of incurring current and future out-of-pocket medical expenditures. We use SHARE data to study the influence of current health status and future health risk on the decision to hold risky assets, across ten European countries with different health systems, each offering a different degree of protection against out-of-pocket medical expenditures. We find robust empirical evidence that perceived health status matters more than objective health status and, consistent with the theory of background risk, health risk affects portfolio choices only in countries with less protective health care systems. Furthermore, portfolio decisions consistent with background risk models are observed only with respect to middle-aged and highly-educated investors.     

Cost-effectiveness analysis of a sealing hemostat patch (HEMOPATCH) vs standard of care in cardiac surgery

Background: A recent randomized controlled trial showed that patients undergoing ascending aorta surgery treated with HEMOPATCH to control bleeding had a significantly better hemostasis success rate than with dry or wet gauze compression or similar standard of care (SOC).

Objective: To compare the cost-effectiveness using two different agents for hemostasis (HEMOPATCH vs dry or wet gauze compression or similar SOC) in cardiac surgery from the European hospital perspective.

Methods: A literature-based cost-effectiveness model estimating average cost per successful hemostasis event was developed based on the hemostasis efficacy difference (HEMOPATCH?=?97.6%, SOC?=?65.8%, p?<?.001). Additional clinically significant end-points studied in the trial (blood transfusions and surgical revisions) were also analyzed. It was assumed that each surgery utilized two units of HEMOPATCH (dimensions of 4.5?×?9?cm) and two units of SOC. Product acquisition costs for HEMOPATCH and SOC were included along with outcome-related costs derived from the literature and inflation-adjusted to 2017 EUR and GBP. Results are presented for an average hospital with an annual case load of 574 cardiac surgeries. One-way and probabilistic sensitivity analyses were performed.

Results: Considering only product acquisition cost, HEMOPATCH had an incremental cost-effectiveness ratio (ICER) of €1,659, €1,519, €1,623, and £1,725 per hemostasis success when compared to SOC for Italy, Spain, France, and the UK, respectively. However, when considering the cost and potential difference in the frequency of transfusions and revisions compared to SOC, the use of HEMOPATCH was associated with an annual reduction of six revisions and 60 transfusions, improving the ICER to €1,440, €1,222, €1,461, and £1,592, respectively. Sensitivity analysis demonstrated model robustness.

Conclusions: This analysis supports the use of HEMOPATCH over SOC in cardiac surgery in European hospitals to improve hemostasis success rates and potential cost offsets from reduced transfusions, complications, and surgical revisions.     

Happiness and its molecular fingerprints

Happiness and well-being are in part heritable, but modifiable traits. The promotion of well-being and happiness, much like the primary prevention of non-communicable diseases (NCD), will become increasingly important in a world that is facing an NCD epidemic due to demographic aging and urbanization. The costs for the often lifelong treatment of NCDs are already high and may increase further with the arrival of expensive personalized medicine. The effective promotion of happiness at the individual and population level in order to guide policy requires a causal and mechanistic understanding of its modifiable determinants. With more than half of the world’s population living in cities, it becomes, for example, important to understand how environmental, social, and lifestyle characteristics of urban life influence well-being. Yet, the correlation between many of these factors and the fact that they act in concert poses a large challenge in causal inference. The -omics biomarkers which form a pillar of personalized medicine are at the same time essential research instruments of modern-day observational epidemiology. The paper discusses how they can be applied to overcome the challenges researchers face in studies on the association of complex risk and protective patterns with specific well-being phenotypes and their relation to diseases. Important concepts are discussed in the context of well-being that were recently developed by epidemiologists to stimulate more investments into the understanding of the modifiable part of health (e.g., Exposome; Meet-in-the-Middle; Mendelian Randomization) to match the huge investments that went into genetic research.