ALZA: An enterprise in biomedical innovation

Pharmaceutical innovators confront increasingly severe problems: prolonged lead times for product development and approval; soaring costs; and constraining factors implicit in the chemical approach to inventing or improving drugs. To avoid the problems of the chemical approach, which has previously dominated pharmaceutical R&D, the ALZA Corporation has been working intensively to develop radically new dosage forms for administering medication. The purpose of these dosage forms, called therapeutic systems, is to produce an optimal therapeutic effect and minimize side effects by delivering drugs to the body at precisely controlled rates. Products are now approved, or on the market, for delivering drugs through intact skin, for topically medicating the eye, and for providing hormonal contraception localized to the uterus. Other therapeutic systems are in advanced development, including one taken by mouth — the most favored route of administration. The innovative nature of ALZA products has made their approval and marketing difficult and has generated a need for a continuing high level of financial support. Maintaining an entrepreneurial effort of so unusual a kind has demanded total commitment on the part of corporate leadership and effective communication of that commitment to people at all company levels. Recently ALZA has enlisted large pharmaceutical companies as marketing partners, an arrangement that is likely to accelerate acceptance of its products and of the concept of controlled drug delivery.     

Labor allocation to non-timber extraction in a Mexican rainforest community

This paper analyzes the determinants of participation in the extraction of xate palm, the most important non-timber forest product in the Mexican Lacandona Rainforest (Selva Lacandona) in terms of its contribution to cash income for households. Results show that low opportunity costs and low human capital, two strong correlates of rural poverty, significantly explain the degree of participation in xate extraction. This gives reasons to be moderately optimistic about the poverty-reduction potential of programs that successfully increase the price of xate received by extractors.     

Carbon Sequestration with Reforestations and Biodiversity-scenic Values

This paper presents an optimal control model to analyze reforestations with two different species, including commercial values, carbon sequestration and biodiversity or scenic values. We discuss the implications of partial or total internalization of environmental values, showing that internalizing only carbon sequestration may have negative impacts on biodiversity-scenic values. To evaluate the practical relevance, we compare reforestations in the South-west of Spain with cork-oaks (a slow-growing native species) and with eucalyptus (a fast-growing alien species). We do the analysis with two different carbon crediting methods: the Carbon Flow Method and the Ton Year Accounting Method. With the first method, the forest surface increases more, but using mainly eucalyptus. With the second, additional reforestations are done mainly using cork-oaks. We value the impact on visitors of these reforestations using stated preferences methods showing that, when these values are internalized, cork-oaks are favored.     

An Operative Framework for Total Hicksian Income Measurement: Application to a Multiple-Use Forest

A methodology for estimating total hicksian income in multiple-use forests is presented. The approach consistently incorporates commercial as well as non-commercial economic values and enables the measurement of national accounting aggregates taking into account variation in man-made and natural capital. Innovative solutions are developed (i) for the estimation of non-market values, such as recreation, where an attempt to determine exchange values has been made simulating markets, (ii) for timber, where standing timber valuation methods have been extended to cover uneven stands, and (iii) for carbon fixation valuation, where only permanently fixed carbon after 1990 has been taken into account. The methodology is applied to a multiple-use pinewood in the Guadarrama mountains, near Madrid (Spain). Timber, cattle grazing, hunting, recreation, carbon fixation and conservation values are measured and integrated in the accounting system, using primary microeconomic data from the case study. Results indicate the importance of non-commercial income, which accounts for 51% of the total income, and the social relevance of the analysed forest, implying that only 31% of the total income generated is appropriated by the forest owner.     

Bribe-proof rules in the division problem

The division problem consists of allocating an amount of a perfectly divisible good among a group of n agents with single-peaked preferences. A rule maps preference profiles into n shares of the amount to be allocated. A rule is bribe-proof if no group of agents can compensate one of its subgroups to misrepresent their preferences and, after an appropriate redistribution of their shares, each obtains a weakly preferred share and all agents in the misrepresenting subgroup obtain a strictly preferred share. We characterize all bribe-proof rules as the class of Pareto efficient, strategy-proof, and weakly replacement monotonic rules. This class is larger than the set of sequential allotment rules identified in Barberà et al. [Barberà, S., Jackson, M., Neme, A., 1997. Strategy-proof allotment rules. Games Econ. Behav. 18, 1–21].     

The clock project: gears as visual-tangible representations for mathematical concepts

As we have noticed from our own classroom experiences, children often find it difficult to identify the adequate operations learned in mathematics class when they are solving mechanical-operators problems in Technology class. We wanted to design a project that exploits the idea of a hands-on relationship between mathematics and technology to teach students the concept of ‘transmission coefficient’ in schools. Our purpose was to bridge mathematical knowledge and mechanical parts in technological devices. Our belief was that visual-tangible representations enhance human cognition by scaffolding the information process. We supplied a kit with rubber foam (Fomi) and balsa wood parts to construct an analogical clock. This included a series of gears to work with three different ratios. The project was conducted in 2007 and 2008, with 38 students ranging from 10 to 14 years of age. The students were from the 5th and 7th grades in two different schools. The project included six stages of both theory and hands-on work. In a final stage, the students were given a written test. All students were able to make workable systems of their design for a time-measuring device. This proved important for technological education. On the other hand, manipulating gears along with visual reasoning strategies allowed all students to achieve an understanding of operations with fractions. We think this is a major achievement in mathematical education.     

Welfare and sectoral productivity shifts in a small open economy with imported agricultural inputs: The case of Sub-Saharan Africa

This paper studies the impact of sectoral productivity growth on welfare in Sub-Saharan Africa. Using the analytical framework of a DSGE model, the main finding is that, for the estimated values of structural parameters, the allocation of scarce resources to the tradable agricultural sector for boosting productivity leads to a greater increase in overall welfare than would be the case if they were allocated to the non-traded goods sector.

     

Stabilization policies and stagflation: The cases of Brazil and Chile

This paper is a comparative study of the economic stabilization policies in Brazil 1964–1968 and Chile 1973–1978. The periods chosen correspond to the first phase of authoritarian regimes whose avowed aim was to re-establish economic equilibrium and ‘put order’ in society in general, after severe disruptions caused by populist or socialist experiences.The economic policies of these regimes have been characterized as a radical attempt to apply orthodox tools in the context of semi-industrialized economies. Conventional wisdom has it that Brazil was the precursor in the orthodox experiments and one imitated by southern-cone countries in Latin America in the 1970s. Our study reveals deep differences between the cases of Brazil and Chile.The study discusses initial conditions, macroeconomic results, the use of monetarist tools, deviations from orthodoxy, the connection between stabilization policies and the long-term development model, and the effects of the policies on income distribution.