Measuring and Explaining Technical Efficiency in UK Potato Production

Technical efficiency in UK maincrop potato production is measured through the estimation of a stochastic frontier production function using cross section data for the 1992 crop year. Variations in the technical efficiency index across production units are explained through a number of managerial and farm characteristic variables following Battese and Coelli (1995). The technical efficiency index across production units ranges from 33 to 97 per cent. Irrigation of the potato crop and storage of potatoes after harvest are positively correlated with technical efficiency. Number of years of experience of growing potatoes, small scale farming practice and chitting of seed potatoes are all negatively correlated with technical efficiency.     

Analysing the Agricultural Costs and Non‐market Benefits of Implementing the Water Framework Directive

Implementation of the Water Framework Directive (WFD) represents a fundamental change in the management of water in Europe with a requirement that member states ensure ‘good ecological status’ for all water bodies by 2015. Agriculture is expected to bear a major share of WFD implementation costs as it is compelled to reduce the emission of diffuse water pollutants. The research outlined here comprises interdisciplinary modelling of agricultural land use, hydrology and consequent water quality effects to consider both agricultural costs and the non‐market recreational use (and potentially non‐use) values that implementation of the Directive may generate. A theme throughout the research is the spatial distribution of the costs and benefits of WFD implementation, which is addressed through the use of GIS techniques in the modelling of agricultural land use, the integration of land use and hydrological models, and the estimation, aggregation and transfer of the economic value of the benefits.     

The budget impact of brodalumab for the treatment of moderate-to-severe plaque psoriasis on US commercial health plans

Introduction: Brodalumab is a new biologic approved by the US Food and Drug Administration in 2017 for the treatment of moderate-severe psoriasis. This study evaluated the impact of the introduction of brodalumab on the pharmacy budget on US commercial health plans.

Methods: An Excel-based health economic decision analytic model with a US health plan perspective was developed. The model incorporated published moderate-to-severe psoriasis prevalence data; market shares of common biologic drugs, including adalimumab, ustekinumab, secukinumab, ixekizumab, and etanercept, used for the treatment of moderate–severe psoriasis; 2017-year Wholesale Acquisition Costs for the biologic drugs; drug dispensing fee; patient co-pay; and drug contracting discount. Total annual health plan costs for the biologic drugs were estimated. Scenarios with different proportions of patients treated with brodalumab were compared to a control scenario when no brodalumab was used.

Results: In a hypothetical commercial health plan covering two million members, 7,038 moderate-to-severe psoriasis patients were estimated to be eligible for treatment with brodalumab. Prior to brodalumab approval, the proportions of patients treated by other biologics were estimated at 50.8% for adalimumab, 13.5% for ustekinumab, 14.1% for secukinumab, 4.4% for ixekizumab, and 17.2% for etanercept. With a 20% drug price discount applied to all biologics, the annual health plan costs for brodalumab, adalimumab, ustekinumab, secukinumab, ixekizumab, and etanercept were estimated at $37,224, $49,166, $55,084, $56,061, $64,396, and $57,170, respectively. When no brodalumab is used, the total annual pharmacy budget for the biologics used among these patients was estimated at $414,362,647. Among scenarios where the proportions of brodalumab usage were 3%, 8%, 16%, and 30%, the total annual pharmacy cost was estimated to be reduced by $3,698,129, $9,861,677, $19,723,355, and $36,981,290, respectively.

Conclusion: Based on the economic model, brodalumab has the potential to substantially reduce pharmacy expenditures for the treatment of patients with moderate-to-severe plaque psoriasis in the US.     

The Efficiency of Input Use During the Early Transition in Hungary

This paper uses Hungarian firm level panel data for the agricultural and light manufacturing sectors during the early years of the transition to investigate differences and changes in the efficiency of input use. Programming techniques measure scale and technical efficiency. The simple radial measure, as well as two other measures that account for programming slacks, are used. The results show little wastage of materials and labour, but inefficient use of energy and capital, which suggests that the development of input markets was uneven. The price liberalisation of 1989 widened efficiency differences, especially in agriculture, but this sector recovered quickest, actually using capital more efficiently by 1991. However, energy efficiency levels were low in the period of soft budget constraints and fell still further after the reforms, suggesting that a free market for energy was not established, particularly in agriculture.     

Creativity under the gun

If you're like most managers, you've worked with people who swear they do their most creative work under tight deadlines. You may use pressure as a management technique, believing it will spur people on to great leaps of insight. You may even manage yourself this way. If so, are you right? Not necessarily, these researchers say. There are instances where ingenuity flourishes under extreme time pressure--for instance, a NASA team within hours comes up with a primitive but effective fix for the failing air filtration system aboard Apollo 13. But when creativity is under the gun, it usually ends up getting killed, the authors say. They recently took a close look at how people experience time pressure, collecting and analyzing more than 9,000 daily diary entries from individuals who were working on projects that required high levels of creativity and measuring their ability to innovate under varying levels of time pressure. The authors describe common characteristics of time pressure and outline four working environments under which creativity may or may not flourish. High-pressure days that still yield creativity are full of focus and meaningful urgency--people feel like they are on a mission. High-pressure days that yield no creativity lack such focus--people feel like they are on a treadmill, forced to switch gears often. On low-pressure days that yield creativity, people feel like they are on an expedition--exploring ideas rather than just identifying problems. And on low-pressure days that yield no creative thinking, people work on autopilot--doing their jobs without engaging too deeply. Managers should avoid extreme time pressure when possible; after all, complex cognitive processing takes time. For when they can't, the authors suggest ways to mollify its effects.     

Integrated assessment of water framework directive nitrate reduction measures

This article illustrates a statistical approach for deriving farm economic impacts of policy options aiming to reduce nitrate diffuse pollution. Building upon Fezzi et al. (2008) , who assess the costs of Water Framework Directive‐related measures on farm accounts data, we estimate regression models allowing such costs to be predicted for any region for which land use patterns and livestock numbers are known. We derive economic impacts in terms of changes in farm gross margin for (a) reducing inorganic fertilizer application, (b) reducing livestock stocking rates, and (c) converting arable land to ungrazed grassland. A case study of the agriculturally diverse Yorkshire Derwent catchment, in the North of England, demonstrates the overall approach. In addition, for this illustration, we combine these cost estimates with prediction of the water quality changes arising from each measure, derived via an integrated hydrological model of the Derwent. This allows a comparison of cost‐effectiveness. Finally, we implement our spatially explicit approach to target the measures to specific subcatchments identified as being of particular environmental policy interest.     

A Cognitive Interpretation of Data Analysis

This paper proposes a scientific model to explain the analysis process. We argue that data analysis is primarily a procedure to build understanding, and as such, it dovetails with the cognitive processes of the human mind. Data analysis tasks closely resemble the cognitive process known as sensemaking. We demonstrate how data analysis is a sensemaking task adapted to use quantitative data. This identification highlights a universal structure within data analysis activities and provides a foundation for a theory of data analysis. The competing tensions of cognitive compatibility and scientific rigour create a series of problems that characterise the data analysis process. These problems form a useful organising model for the data analysis task while allowing methods to remain flexible and situation dependent. The insights of this model are especially helpful for consultants, applied statisticians and teachers of data analysis.