Bentham and Owen on entrepreneurship and social reform

Abstract

Jeremy Bentham invested an important amount of money in New Lanark's cotton mills, which at that time were run by Robert Owen. However, apparently Bentham never took a serious interest in the organisation of such a successful entrepreneurship and new model society, although it seemed to fit in with Bentham's ideas of the entrepreneur (‘projector’) and also with Bentham's ideas on social reform, seeking the greatest happiness of the greatest number. This article explains how Bentham's share in New Lanark came about. It tries to ascertain whether the New Lanark experiment and Owen's ideas fit Bentham's managerial theory and ideas on social reform so as to understand why Bentham did not pay more attention to Robert Owen's practice.     

Jeremy Bentham and Adam Smith on the usury laws: a ‘Smithian’ reply to Bentham and a new problem

Adam Smith justified the contemporary usury laws and was severely criticised by Bentham and most modern writers with the important exception of J.M. Keynes. We argue that pace Bentham, Smith did not intend to preclude loan financing of all ‘risky’ ventures and give a ‘monopoly’ to safe investments and did not neglect the potential emergence of black credit markets. Yet Smith ought to have modified his position independently of Bentham's criticism, considering a marked rise in the rate at which governments borrowed in the late 1770s.     

Further reflections on the 'Hidden Theology' of Adam Smith

Abstract

A re-reading of the Thousand and One Nights in light of economic thought is attempted here. These stories characterize a bazaar economy as the dark side of medieval economics. The process-view of the bazaar is discussed in relation to Smith, Walras and the Austrian School. The tacit notions of ‘market price’ and ‘natural price’ are touched upon. Auctions are then elaborated with reference to Böhm-Bawerk. Moreover, the role of asymmetric information as a recurrent theme is interpreted in relation with Akerlof's approach. Finally, the collective function of the tales in fostering confidence in a less-than-well instituted bazaar economy is emphasized.     

Contribution of intangible costs to the economic burden of multiple sclerosis

Abstract

Background:

Multiple sclerosis (MS) is associated with a substantial economic burden resulting from direct medical costs associated with health and disability-related resource utilization and indirect costs relating to reduced productivity. However, reduced health-related quality of life (HR-QOL) may be associated with additional costs, often termed ‘intangible costs,’ that should be considered as part of the economic burden from the societal or patient perspectives.

Objectives:

To review the contribution of intangible costs to the overall economic burden of MS.

Methods:

Medline was searched through March 2010 for relevant articles that included the terms ‘multiple sclerosis’ in combination with ‘intangible costs,’ ‘QALY,’ ‘quality-adjusted life year,’ ‘willingness-to-pay,’ and ‘WTP.’ Other than the restriction that the articles were published in English, there were no other exclusionary criteria for the search. Identified references were hand-searched to determine if intangible costs were estimated.

Results:

Thirteen studies across ten countries were identified that estimated intangible costs based on the number of quality-adjusted life-years (QALYs) lost due to a reduction in HR-QOL multiplied by accepted willingness-to-pay (WTP) thresholds. Although absolute costs varied depending on thresholds used and year of evaluation, the intangible costs accounted for 17.5–47.8% of total costs of MS. Furthermore, evidence suggested intangible costs are positively correlated with worsening disability. The largest increase in intangible costs occurred at the transition between mild and moderate disability. However, since no value has been established as being acceptable to pay for a QALY, a limitation of these studies was their dependence on the definition of the WTP threshold.

Conclusions:

Intangible costs substantially add to the economic burden of MS. There is not only a need to further characterize these costs and incorporate them into economic studies, but also to determine how these costs can be reduced through appropriate management strategies.     

Cost-utility of pregabalin as add-on to usual care versus usual care alone in the management of peripheral neuropathic pain in Belgium

Abstract

Background and objectivess:

The cost effectiveness of pregabalin as an add-on to the standard treatment of Belgian patients with post-herpetic neuralgia (PHN) had been demonstrated in a previously published Markov model. The purpose of this study was to update that model with more recent cost data and clinical evidence, and reevaluate the cost effectiveness from the payer’s perspective of add-on pregabalin in a wider set of NeP conditions.

Methods:

The model, featuring 4-week cycles and a 1-year time horizon, consisted in four possible health states: mild, moderate or severe pain and withdrawn from therapy. Three versions of the model were developed, using transition probabilities derived from pain scores reported in three placebo-controlled studies. The two treatment arms were ‘usual care’ or ‘usual care?+?pregabalin’. Resource use and utility data were obtained from a chart review and unit costs from recent published data. The final outcome of the model was the incremental cost per quality-adjusted life-year (QALY) gained when adding pregabalin to standard care.

Results:

Based on 1000 simulations, two versions of the model showed that pregabalin was dominant respectively in 94.8% and 67.2% of the simulations, while the incremental cost per QALY was below €32,000/QALY in respectively 99.1% and 94.6% of the simulations. The third version did not show cost effectiveness, despite an incremental cost of only €300 after 1 year. However, in the corresponding study, patients seemed less responsive to GABA analogs, since 55% of them had failed to respond to gabapentin before study inclusion.

Limitations:

The studies upon which the model is based have a short follow-up time as compared to the model horizon. The endpoints of two studies were only provided at the aggregated level and do not necessarily reflect the real practice.

Conclusion:

Based on this analysis, it can be concluded that from a Belgium payer perspective pregabalin offers a slight increase in quality of life in the studied populations as compared to standard care. Pregabalin is cost effective in the majority of cases except in one published clinical study, despite a low incremental cost per year (€300).     

Marx,Sraffa, and Surplus: Observations Prompted by Garegnani (2018)

ABSTRACT

In a posthumously published article, Pierangelo Garegnani (2018. ‘On the Labour Theory of Value in Marx and in the Marxist Tradition.’) depicts Marx’s project in Capital as that of ‘developing systematically the theory of Ricardo and [the] implications of social conflict’ implied by Ricardo’s ‘surplus approach to value and distribution’. This paper argues to the contrary that Marx’s theory of surplus value and exploitation differs from (neo-)Ricardian surplus theory in fundamental ways, and modifies Garegnani’s simple Sraffian model to illustrate the distinctive implications of Marx’s theory.     

The age of the universal consumer: a reconsideration of Ricardo's politics *

This paper reconsiders Ricardo's political thought, its relationship with his political economy and, more generally, Ricardo's connection with the ‘philosophical radicalism’ of Bentham and James Mill. It is arguedinter alia, that Ricardo's politics were utilitarian and individualistic; that he developed a notion of a shared, homogeneous interest; that he believed that individuals should know their ‘real’ interests as a condition for their suffrage; and that he subscribed to a doctrine of virtual representation. It is also argued that Ricardo was considerably less ‘radical’ in his political views than some previous commentators have recognized.     

A rank-dependent utility approach to model intra- and inter-individual heterogeneity in risky choice behaviours

ABSTRACT

Using a stated preferences survey, the objective of this paper is to investigate the intra- and inter-individual heterogeneity of mode choice, when travel time is subject to variability. By‘inter-individual heterogeneity’ is meant that people are different in terms of attitude to risk and have different utility functions. By ‘intra-individual heterogeneity’ is meant that the behaviour may be different even when performed by the same individual when faced with a different mode of transport. Based on Rank-Dependent Utility Theory, the paper shows that the occurrence of delays associated with train trips is overestimated whereas they are underestimated for car trips. A latent-class logit model offers a somewhat different perspective: if, overall, car users are more likely to perceive possible delays for train trips than for car trips, train users tend to consider the objective occurrence of delays as they are presented in the survey and adopt a risk neutral choice behaviour.     

Deep Routeing and the Making of ‘Maritime Motorways’: Beyond Surficial Geographies of Connection for Governing Global Shipping

ABSTRACT

Geography has turned to towards the seas and oceans with much attention being paid to ‘water worlds’ through socio-cultural, political and environmental lenses. Geo-economic analysis, in particular, has considered the role of containerisation, the port, and logistics global flows central to the contemporary shipping industry. However, where routeing enters discussion these debates remain ‘surficial’ with a focus on the rationale of lines of connection which are mapped onto the sea (rather than into the sea, as a liquid, three-dimensional, motionful space). This paper challenges considerations of ship routeing that only skim the surface. This paper adds depth to the discussion. It is argued that ship routeing is not a purely surficial exercise of charting a voyage across seas and oceans. Routes have a geo-politics predicted at times on the water’s depth, the topography of the ocean floor and seabed and marine resources. Drawing on a variety of examples, notably the traffic routeing scheme – or ‘maritime motorway’ – governing the flows of shipping in the Dover Strait, UK, this paper brings a ‘wet ontology’ and three-dimensional analysis to ship routeing. It is contended that such a recognition and discussion of deep routeing is necessary to shed light upon the often invisible processes sea that underscore the global logistics flows vital to society and the economy.     

Economic evaluation of a 100% whey-based partially hydrolyzed infant formula in the prevention of atopic dermatitis among Swiss children

Abstract

Objective:

A pharmacoeconomic analysis was undertaken to determine costs, consequences, and cost-effectiveness of a partially hydrolyzed 100% whey-based infant formula, NAN-HA®, manufactured by Nestlé S.A, Switzerland (PHF-W), branded under BEBA HA® in Switzerland, in the prevention of atopic dermatitis (AD) in ‘at risk’ Swiss children when compared to standard cow’s milk formula (SF).

Methods:

Based on a 12-month time horizon including 6 months of formula consumption, an economic model was developed synthesizing treatment pathways, resource utilization, and costs associated with the treatment of AD in healthy ‘at risk’ Swiss newborns who could not be exclusively breastfed. Model inputs were retrieved from the literature, official formularies, and expert opinion. The treatment pathways considered a medical treatment approach, supplemented in some instances by a change of formula. The final outcome was the expected cost per avoided case of AD, yielding an incremental cost effectiveness ratio (ICER) for PHF-W vs SF. Outcomes were presented from three perspectives: the Swiss public healthcare system (MOH), the subject’s family, and society (SOC). A secondary analysis compared PHF-W to whey-based extensively hydrolyzed formula (EHF) in prevention.

Results:

The model yielded 1653 avoided AD cases by selecting PHF-W over SF in a birth cohort of 22,933 ‘at risk’ infants. The base case analyses generated an expected ICER of CHF 982 from the MOH perspective as well as savings of CHF 2202 and CHF 1220 from the family and SOC perspectives, respectively. PHF-W yielded CHF 11.4M savings against EHF when the latter was assumed to be used in prevention. One-way and probabilistic sensitivity analyses confirmed the robustness of the model.

Conclusion:

Under a range of assumptions, this analysis has established the dominance from the family and societal perspectives and cost-effectiveness from the MOH perspective of PHF-W vs SF in the prevention of AD among ‘at risk’ Swiss infants.     

The Question of Access to the Japanese Market*

It is now widely accepted that Japan has relatively low official barriers to merchandise, particularly manufactured goods, trade relative to other industrial countries. Yet, Japan's current account and trade surpluses have encouraged the view that there must be special ‘hidden barriers’ to accessing the Japanese market, and a literature has developed on the premise that Japanese business organizations (keiretsu) limit foreign penetration of markets of manufactured goods. This paper surveys the main elements of this literature and questions some of the assumptions upon which recent American policy in this area seems to have been developed.     

Has the ‘franc fort’ exchange rate policy affected the inflationary dynamics? Theory and new evidence

Abstract

This paper examines the impact of the ‘franc fort’ policy implemented in France from 1983 on the inflationary dynamics by means of a square root Kalman filter approach. An interesting aspect of the analysis is the evidence that the ‘franc fort’ exchange rate policy had a significant impact on the inflationary dynamics in France through its credibility effects. These results confirm the imported credibility hypothesis according to which the French authorities accelerated the disinflation process by importing the German monetary policy credibility through the ‘hard peg’ of the franc–DM exchange rate. These findings show that inflation dynamics in France began to converge significantly to that in Germany after the implementation of the ‘franc fort’ policy, making more credible the plan for the final transition to the euro. Moreover, this analysis may also reveal much about the nature of potential success of the current initiative of the new member countries now in the process of joining the EU and looking eventually to adopt the euro.     

Sraffa’s Constructive and Interpretive Work,and Marx

ABSTRACT

This article provides a summary account of Piero Sraffa’s constructive and interpretive work on the classical approach to the theory of value and distribution and its relationship with Marx’s contributions. It is shown that in the early phase of his constructive work Sraffa developed his equation systems by adopting a ‘physical real cost’ approach and a strictly objectivist point of view, and completely eschewed Marx’s labour-based approach and the related Marxian concepts. Only at a later stage did he explore systematically the relationship between his own modern re-formulation of the surplus approach to the theory of value and distribution and Marx’s contribution. He considered Marx’s most important analytical contribution to the further development of the surplus approach to consist of the re-integration of circular production relations, which allowed him to see the existence of a maximum rate of profits and its role in an analysis of accumulation and technical change.     

Walras's tâtonnement : a reply to Rebeyrol and Costa

Abstract

About 50 years ago a lively discussion was started in the ‘Notes and Memoranda’ sections of the Economic Journal about the new welfare economics that had been initiated by Kaldor and Hicks 10 years earlier and was heavily criticized by Little in 1950. Altogether 18 Notes appeared dealing with questions of definition, of limitations, of practical relevance and theoretical details. This paper gives an overview of this discussion and presents it as a methodological approach of the past which that declined as a consequence of the spread of the referee process.     

The Keynesian Features of Graziani's Monetary Theory of Production and Some Unresolved Issues

Abstract

The aim of this article is twofold. First, it seeks to verify the elements of affinity between Graziani's approach to the Monetary Theory of Production and Keynes’ Treatise on Money and his General Theory. It is shown that two important theoretical elements, from the Treatise on Money, enter Graziani's basic schema, namely the view of endogenous money supply and the distribution process. At the same time, uncertainty and aggregate demand—conceived as a crucial variable in the General Theory—can play a significant role in the basic schema of the Monetary Theory of Production. Second, the article sets out a critical reconstruction of Graziani's basic schema emphasising the existence of ‘open issues’– such as bank behaviour and the ‘paradox of profits’—relating to internal and external inconsistencies.     

Gig Work and the Discourse of Autonomy: Fictitious Freedom in Japan’s Digital Economy

ABSTRACT

The introduction of ‘gig work’ has been accompanied by an official discourse which highlights the benefits for ‘gig workers’, especially as arises from the more autonomous nature of this particular type of employment. In contrast, this paper draws upon the cultural political economy approach to argue that the move towards gig work is more accurately conceptualised as an attempt to legitimate the further flexibilisation of labour markets within advanced industrial democracies, seeking to construct economic imaginaries that are best described as a form of ‘fictitious freedom’. In drawing on the cultural political economy approach, the paper explores the interaction between the structural, discursive and technological selectivities which have generated these outcomes. This is done through a discussion of the case of Japan, which is selected as a key case that highlights the tensions and pressures leading to the introduction of gig work in this way across the advanced industrial democracies. The article shows how gig work sees new digital technologies used in an attempt to increase productivity and thereby further growth, locking gig workers into low-skilled and low-paid super-fragmented tasks, whilst at the same time heralding the benefits that gig work can provide for a range of contemporary problems.     

Cost-effectiveness of partially-hydrolyzed formula for prevention of atopic dermatitis in Australia

Abstract

Objective:

To perform an economic evaluation of a specific brand of partially hydrolyzed infant formula (PHF-W) in the prevention of atopic dermatitis (AD) among Australian infants.

Methods:

A cost-effectiveness analysis was undertaken from the perspectives of the Department of Health and Aging (DHA), of the family of the affected subject and of society as a whole in Australia, based on a decision-analytic model following a hypothetical representative cohort of Australian newborns who are not exclusively breastfed and who have a familial history of allergic disease (i.e., are deemed ‘at risk’). Costs, consequences, and incremental cost-effectiveness ratios (ICER) were calculated for PHF-W vs standard cow’s milk based infant formula (SF), and, in a secondary analysis, vs extensively hydrolyzed infant formula (EHF-Whey), when the latter was used for the prevention of AD.

Results:

From a representative starting cohort of 87,724 ‘at risk’ newborns in Australia in 2009, the expected ICERs for PHF-W vs SF were AU$496 from the perspective of the DHA and savings of AUD1739 and AU$1243 from the family and societal perspectives, respectively. When compared to EHF-Whey, PHF-W was associated with savings for the cohort of AU$5,183,474 and AU$6,736,513 from the DHA and societal perspectives.

Limitations:

The generalizability and transferability of results to other settings, populations, or brands of infant formula should be made with caution. Whenever possible, a conservative approach directing bias against PHF-W rather than its comparators was applied in the base case analysis. Assumptions were verified in one-way and probabilistic sensitivity analyses, which confirmed the robustness of the model.

Conclusions:

PHF-W appears to be cost-effective when compared to SF from the DHA perspective, dominant over SF from the other perspectives, and dominant over EHF-Whey from all perspectives, in the prevention of AD in ‘at risk’ infants not exclusively breastfed, in Australia.     

‘Catholic in its faith,Catholic in its manner of conceiving science’: French Catholic political economy in the 1830s

Abstract

This paper addresses a group of Catholic political economists in France in the 1830s, which was described by the Dublin Review as ‘Catholic in its faith, and Catholic in its manner of conceiving science’. A first section clarifies how contemporaries perceived this group. This is followed by an analysis of Villeneuve-Bargemont's Economie politique Chrétienne in order to outline a standard Catholic approach to political economy. Finally, that standard is used to chart the work of other Catholic economists within that group and to contrast it with the approach followed by other contemporary social political economists.