IMPROVING THE ANALYTICAL AND DATA FRAMEWORK OF THE GOVERNMENT SECTOR FOR NATIONAL GOALS ACCOUNTING*

Provision of “market goods” follows the decision rules of traditional microeconomics; pricing and resource allocation for such goods tend towards Pareto optimality. The provision of “collective goods,” by contrast, depends on political (or quasi-political) collective decision processes; beneficiaries often receive a share of collective goods free of charge or well below average or marginal (private or social) costs. No inherent tendency towards optimality may be presumed and separate analysis of collective goods becomes an essential part of national goals accounting. The national-income-accounts (NIA) distinction between personal consumption expenditures (PCE) and government purchases of goods and services corresponds roughly to a division between market goods bought by the consumer and a major category of “collective goods” (i.e. “public goods” provided by government). However, a significant proportion of PCE represents “collective goods” paid for by government, business, or nonprofit organizations and provided on behalf of the consumer, whereas a part of NIA government purchases represents services paid for by the consumer (i.e. “market goods”). This article develops operationally meaningful distinctions among “market goods,”“collective goods,” and “tied aid” (a mixed category with market-good and collective-good characteristics). These distinctions are determined by the nature of the decision processes–rather than by the characteristics of the beneficiary or the supplier. This classification is related to the national income accounts and major discrepancies are pinpointed. The blurring of the distinction among market goods, collective goods and tied aid is found to be most consequential in the NIA treatment of “education” and “medical care” services. NIA data for these two services are restructured for national goals accounting purposes in order to illustrate both the quantitative importance and the empirical feasibility of classifying benefits by their respective decision processes.     

Science,innovation, and public services: editorial introduction

ABSTRACT

The quality of public services is critically influenced by innovation and, ultimately, by advances in basic research, which however embeds the feature of a global public good. Two broad issues emerge. The first concerns the evaluation of the socio-economic impact of science. What are the benefits and spillovers that R&D investments, research infrastructures and big science can bring to society? The second concerns which type of institutions and policies are most suitable for supporting R&D activities. These topics discussed in this article represent the core of the special issue “Innovation and Public Services: from the lab to enterprises and citizens”     

The clinical and economic burden of significant bleeding during lung resection surgery: A retrospective matched cohort analysis of real-world data

Objectives: The objective of this retrospective study was to quantify the clinical and economic burden of significant bleeding in lung resection surgery in the US.

Methods: This study utilized 2009–2012 data from the Premier Perspective Database^TM. Adult patients with primary pulmonary lobectomy or segmentectomy procedures were categorized by the surgical approach (VATS vs open) and primary diagnosis (primary or metastatic lung cancer vs non-lung cancer). Patients requiring ≥3 units of blood products with at least 1 unit of PRBCs: “significant bleeding” cohort; those requiring <3 units: “non-significant bleeding” cohort; and those not requiring blood products: “no bleeding” cohort. A matched cohort analysis was performed between the “significant bleeding” and the “no bleeding cohort” using matching variables: hospital, lung cancer diagnosis, year of surgery, APR-DRG severity score, procedure type and approach, age, and gender.

Results: The “All-patient” cohort comprised 21,429 patients: 213 “significant bleeding”; 2,780 “non-significant bleeding”; and 18,436 “no bleeding”. Overall incidence of significant chest bleeding was 0.99%. Patients from “significant bleeding” cohort and “non-significant bleeding” cohort had 2.5 days and 2 days (p?p?Conclusions: Although significant bleeding during lung resection surgery is rare, patients with such complication could stay longer at the hospital and cost an average of $13,103 more than those without.     

Adding links,adding persons,and adding structures: Using Sen's frameworks

Abstract

This essay is a comment on “Sen on Freedom and Gender Justice,” by Mozaffar Qizilbash, which appeared in Feminist Economics Volume 11, Number 3, November 2005.

Building on the 2003 double special issue of Feminist Economics entitled “Amartya Sen's Work and Ideas,” this paper responds to the review essay by Mozaffar Qizilbash. It identifies and illustrates various possible evaluations of a theoretical system, including that it has acknowledged strengths, unrecognized strengths, remediable gaps or failings, or structural faults. The paper then looks at Sen's system as a theoretical basis for “human development”– in particular in relation to personhood, emotions, and psychological interdependence – and argues that it points in directions required for economic and social analysis, including towards theories of care, but is not itself a sufficient treatment. The paper suggests deepening Sen's system by connecting to other important languages of analysis concerning the structuring of attitudes, emotions, felt well-being, public reasoning, and politics.     

Development and Psychometric validation of the Diabetes Therapy-Related QOL (DTR-QOL) Questionnaire

Abstract

Objective:

We developed and evaluated the psychometric properties of the Diabetes Therapy-Related QOL (DTR-QOL) as a disease-specific, self-administered questionnaire to assess the influence of diabetes treatment on patient QOL, regardless of treatment method.

Methods:

This new questionnaire was developed and validated in a standardized manner: Item development, pilot-testing and psychometric validation. A survey was conducted using the provisional version of the questionnaire, and reliability and validity were evaluated with psychometric testing.

Results:

The provisional version of the questionnaire was generated with 29 items through literature review and pilot testing. For psychometric assessment, analyses were performed on the responses of 284 adult Japanese patients with diabetes. Factor analysis by the principal factor method with promax rotation revealed 4 factors; “burden on social activities and daily activities” (13 items), “anxiety and dissatisfaction with treatment” (8 items), “hypoglycemia” (4 items), and “satisfaction with treatment” (4 items). For reliability, the intraclass correlation was 0.92, and Cronbach’s alpha coefficient was 0.94, indicating adequate test-retest reliability and internal consistency. For known-group validity, there were significant differences in scores for following variables: age, diabetes type, HbA1c, treatment method, glycemic control, hypoglycemia, nocturnal hypoglycemia, concern about weight gain, health status (patient assessment), and degree of communication with physician.

Conclusions:

The DTR-QOL, with good reliability and validity, can assess the influence of diabetes treatment on patient QOL. The DTR-QOL can be used regardless of treatment method that patients receive, and this characteristic enables to detect a difference on patients QOL between treatment methods before and after a switch of treatment. Limitations of this study include representativeness of the patient sample. The relatively small number of patients with type 1 diabetes should be noted. Also, responsiveness of the DTR-QOL has not yet been examined.     

Appropriability mechanisms,innovation, and productivity: evidence from the UK

ABSTRACT

We use an extended version of the well-established Crepon, Duguet, and Mairesse model [1998. “Research, Innovation and Productivity: An Econometric Analysis at the Firm Level.” Economics of Innovation and New Technology 7 (2): 115–158] to model the relationship between appropriability mechanisms, innovation, and firm-level productivity. We enrich this model in three ways: (1) We compare estimates obtained using a broader definition of innovation spending to those that use R&D spending. (2) We assume that a firm simultaneously innovates and chooses among different appropriability methods to protect the innovation. (3) We estimate the impact of innovation output on firm productivity conditional on the choice of appropriability mechanism. We find that firms that innovate and rate formal methods for the protection of intellectual property highly are more productive than other firms, but that the same does not hold in the case of informal methods of protection, except possibly for large firms as opposed to SMEs. We also find that this result is strongest for firms in the services, trade, and utility sectors, and negative in the manufacturing sector.     

Identifying Neo-Schumpeterian Innovation in Service Firms: A Conceptual Essay with a Novel Classification

The identification of innovation in service firms is problematic since there is no consensus of opinion on its conceptualization. Recent papers suggest both distinctive features of innovation in services and distinctive types of service innovation. This article reviews and evaluates these findings from a Schumpeterian perspective. The evaluation justifies conceptualizing service innovation as a specific case of service development with a reference to Schumpeter, but not as strict as proposed by Drejer (2004) [Drejer, I. (2004) Identifying Innovation in Surveys of Services: A Schumpeterian Perspective. Research Policy, 33, 551–562]. Despite the simultaneity of production and consumption in services, this article claims that the distinction between product innovation and process innovation should be preferred to other ways of classifying innovation in service firms. Finally, changes in the denomination of services are advanced as a key to the identification of development and innovation in service firms.     

The Dowry Gift in South Asia: An Institution on the Intersection of Market and Patriarchy

Abstract

Dowry refers to marriage gifts that are instrumental to the negotiation of the marriage contract. Historically, the dowry gift was constituted by law across the Roman empire. While dowry has become largely irrelevant in Europe in contemporary times, it is still pervasive across the Brahmanical Hindu societies of South Asia. Moreover, what was traditionally token gifts from friends and well-wishers has taken on the form of “new dowry” since the colonial period. “New dowry” is heavily composed of cash and market goods, including land and is frequently accompanied by violence against new brides when their families fail to make larger dowry gifts with higher market value. This article examines the evolution of “new dowry” through a Polanyian lens. Unlike the neoclassical Beckerian approach which takes an ahistorical outlook to marriage as a “market” for matching partners and dowry as a market price, the substantivist lens à la Polanyi investigates the historical evolution of “new dowry” through the advent of market processes in the colonial period and the countermovement of legal reform in the post-colonial period.     

Nicolas Baudeau,an anti-physiocrat? Éphémérides du citoyen prior to “conversion” (1765–1766)

Abstract

Éphémérides du citoyen is often considered to be an anti-physiocratic periodical, up until Baudeau's adherence to Quesnay's theories in 1766. An analysis of the journal's main economic themes between 1765 and 1766 however shows that this interpretation is inaccurate. It is true that the theme of rurality, the issue of the colonies and Baudeau's needs analyses indicate an original line of thinking, in which the public powers played the role of primary investor via a “land clearing company” or a “threefold royal messengers service”. However, these contain no radical opposition to the liberal ideas developed by Quesnay.     

The sources and aims of innovation in services: Variety between and within sectors

Services dominate economic activity, but remain under-researched by analysts of innovation and technological change. The early 'one size fits all' theories of innovation in services have in recent years given way to an appreciation that services are diverse, not least in their innovation activities. This paper draws on recent empirical evidence from large-scale surveys undertaken in 13 western European countries, to investigate the extent and the sources of innovation in five services sectors. The analysis includes the extent to which services innovate, and amongst innovators the extent to which they engage in R&D and collaborative arrangements for innovation. The analysis supports the recent literature which emphasises significant differences between sectors in their pattern of innovation behaviour, but also highlights significant intra-sectoral differences in innovation behaviour. This intra-sectoral variation deserves much fuller investigation in the future.     

Three macroeconomic syntheses of vintage 1937: Hicks,Haberler, and Lundberg

Abstract

The 1920s and 1930s were years of intensive debate about economic dynamics and stabilisation policies. There was a large variety of explanations of cycles and depressions, and Keynes’ General Theory of Employment, Interest and Money (1936) was pitched against them. In 1937, followed three different attempts to provide synthetic expositions of macroeconomic theory that would deal with the Keynesian challenge: Hicks’ Mr. Keynes and the “Classics”, Haberler's Prosperity and Depression, and Lundberg's Studies in the Theory of Economic Expansion. This paper compares those 1937 syntheses and contrasts them with the “Neoclassical Synthesis” and the current “New Neoclassical Synthesis”.     

R&D,public innovation policy,and productivity: The case of danish manufacturing

The purpose of this paper is to investigate the relationship between private R&D, public innovation support transferred to the private sector, and productivity in Danish manufacturing. Two main conclusions are established. First, public innovation support has a positive and significant effect on private R&D expenditures with an estimated elasticity of 0.062. Second, the indirect effect on productivity from public innovation support is reflected in a positive point estimate which is found to be robust to different specifications of R&D capital.     

α‐SERIAL MECHANISMS FOR THE PROVISION OF AN EXCLUDABLE PUBLIC GOOD

We present a new class of “α‐serial mechanisms” for the provision of an excludable public good. Those mechanisms have a similar structure to the serial mechanism, but may let the non‐consumers pay a positive cost. They inherit desirable properties such as anonymity, envy‐freeness, Maskin monotonicity, and population monotonicity from the serial mechanism. We calculate the “maximal efficiency loss” and “maximal manipulation” of α‐serial mechanisms and point out a trade‐off between these two properties.     

CDM using a cross-country micro moments database†

ABSTRACT

This note starts with a retrospective view of the CDM model [Crépon, Bruno, Emmanuel Duguet, and Jacques Mairesse. 1998. “Research, Innovation and Productivity: An Econometric Analysis at the Firm Level.” Economics of Innovation and New Technology 7 (2): 115–158.] as an econometric framework for studying innovation and growth. A narrative interpretation of CDM describes the chain from innovative activity at firms to increases in welfare and makes links to the policy environment. Filling in missing pieces of the innovation to productivity puzzle has a heavy data burden. The paper makes use of the micro moments database (MMD) that allows observing micro-level behavior and macro-level impacts of innovation and production in a large selection of European countries. Two examples are given of research using the MMD. First, we estimate a simplified system of innovation and production equations that can be applied to average firm choices and outcomes, as well as to industry or aggregate outcomes. We find that innovative activity contributes to aggregate productivity even while the average effect at the firm level is insignificant. Next, a cross-country exploration is made that shows heightened productivity effects of combined use by firms of various enterprise-level information and communications technologies.     

Outcomes of tumor necrosis factor inhibitor cycling versus switching to a disease-modifying anti-rheumatic drug with a new mechanism of action among patients with rheumatoid arthritis

Objectives: To examine treatment patterns, treatment effectiveness, and treatment costs for 1 year after patients with rheumatoid arthritis switched from a tumor necrosis factor inhibitor (TNFi) (adalimumab, certolizumab pegol, etanercept, golimumab, or infliximab), either cycling to another TNFi (“TNFi cyclers”) or switching to a new mechanism of action (abatacept, tocilizumab, or tofacitinib) (“new MOA switchers”).

Methods: This retrospective cohort study used administrative claims data for a national insurer. Treatment persistence (without switching again, restarting, or discontinuing), treatment effectiveness (defined below), and costs were assessed for the 12-month post-switch period. Patients were “effectively treated” if they satisfied all six criteria for a treatment effectiveness algorithm (high adherence, no dose increase, no new conventional synthetic disease-modifying anti-rheumatic drug, no subsequent switch in therapy, no new/increased oral glucocorticoids, and <2 glucocorticoid injections). Multivariable logistic models were used to adjust for baseline factors.

Results: The database included 581 new MOA switchers and 935 TNFi cyclers. New MOA switchers were 39% more likely than TNFi cyclers to persist after the switch (odds ratio [OR]?=?1.39; 95% confidence interval [CI]?=?1.12–1.74; p?=?.003) and 36% less likely to switch therapy again (OR?=?0.64; 95% CI?=?0.51–0.81; p?p?=?.006). New MOA switchers had 16% lower drug costs than TNFi cyclers (cost ratio?=?0.84; 95% CI?=?0.79–0.88; p?p?Limitations: Claims payments may not reflect rebates or other cost offsets. Medical and pharmacy claims do not include clinical end-points or reasons that lead to new MOA switching vs TNFi cycling.

Conclusions: These results support switching to a new MOA after a patient fails treatment with a TNFi, which is consistent with recent guidelines for the pharmacologic management of established rheumatoid arthritis.     

Waves of Populism: A Recent Manifestation of Polanyi’s “Double Movement”?

Abstract:

Since the Global Financial Crisis (GFC) of 2008, there has been a new wave of populism in the United States and in Europe. The hypothesis of this article is that this GFC has created the conditions for the resurgence of populism. According to Polanyi’s work of 1944, The Great Transformation, the market is “utopian” and must be imposed by the state. Further, there is a disciplinary dimension, which separates the individual worker from the community, for the purposes of allowing the “prod of hunger” to be effective. This disciplinary dimension of the market, which is based on Polanyi’s analysis of the nineteenth and early twentieth centuries, can be extended. Several phenomena in the late twentieth and early twenty-first centuries have intensified the tensions inherent in the market: fragmented production by means of finely divided global supply chains, increasing inequality due to the market structure; automation, declining labor share; increasing indebtedness; financialization; and erosion of protective labor market institutions, such as welfare and unionization. Populist movements are part of the backlash or “double movement” against these tensions inherent in the market.

Polanyi’s analysis may contribute to a greater understanding of what may be a global inflection point at present.     

The “Treasury View”: An (un-)expected return?

Abstract

By examining the rhetorical use of an old piece of economic theory by some contemporary economists, this paper intends to report on “how today's economists conduct a public policy debate”. This paper is neither a scholarly history of the interwar debate nor a sophisticated critique of current economic policy. It is an attempt to link the policy and theoretical arguments of two similar debates separated by nearly 80 years. The second part of the paper demonstrates that the (un-)expected return of the Treasury View is a case study illustrating two very different modelling strategies.     

MEGA‐EVENTS AND SECTORAL EMPLOYMENT: THE CASE OF THE 1996 OLYMPIC GAMES

Using the data of the 1996 Olympic Games, this paper analyzes the economic impact of a mega‐sporting event. Earlier studies are extended in several ways. First, monthly rather than quarterly data are employed. Second, the impact is analyzed for 16 different sectors. Third, we use a nonparametric approach to flexibly isolate employment effects. Hardly any evidence for a persistent shift in the aftermath of or the preparation for the Olympic Games is supported. We find significant positive employment effects exclusively during the Olympic Games. These short‐term effects are concentrated in the sectors of “retail trade,”“accommodation and food services,” and “arts, entertainment, and recreation.” (JEL H54, R12, L83)     

“Womb for Rent”: International Service Trade Employing Assisted Reproduction Technologies (ARTs)

Infertility affects approximately 2–3 million married couples in the USA and a larger cohort of unmarried men and women. For those not inclined to adopt, science has provided another option, one based on assisted reproduction through artificial insemination, commonly known as in vitro fertilization (IVF). Under this framework a woman, designated as a “surrogate”, bears a baby on behalf of the intended parents with the objective of relinquishing her rights to the child after birth. The subcontract for the services of a “surrogate” or more specifically for the use of her “womb” can be viewed as part of the literature on outsourcing of production by a vertically integrated family. The lack of universal enforcement of “surrogacy” contracts in the USA creates a demand for outsourcing of surrogacy services. One beneficiary of this uncertainty in enforcement is India which provides gestational services to intended international parents.