A structural time series approach to modelling multiple and resurgent meat scares in Italy

This paper exploits a structural time series approach to model the time pattern of multiple and resurgent food scares and their direct and cross-product impacts on consumer response. A structural time series Almost Ideal Demand System (STS-AIDS) is embedded in a vector error correction framework to allow for dynamic effects (VEC-STS-AIDS). Italian aggregate household data on meat demand is used to assess the time-varying impact of a resurgent BSE crisis (1996 and 2000) and the 1999 Dioxin crisis. The VEC-STS-AIDS model monitors the short-run impacts and performs satisfactorily in terms of residuals diagnostics, overcoming the major problems encountered by the customary vector error correction approach.     

Actions speak louder than words: how employees mind the implementation gap

Abstract

Integral to employees’ working lives are the HR policies and more importantly, the practices that follow those and their implementation, which employees experience directly. To date, research on HR implementation considers how HRM is ‘done to’ employees by management and therefore ignores the agency of individuals to shape how HRM is ‘done to them’. Taking the perspective of employees, in a qualitative study of female lawyers, this paper examines employees’ roles in shaping HR implementation, addressing a lack of understanding about the role of ‘others’ in the process. Drawing on the concept of social power, the article focuses on the implementation of agile working practices within UK-based law firms. It finds that despite lacking legitimate position power to influence processes, employees draw on a variety of other power sources (e.g. referent, information, coercive) and tactics (e.g. leveraging membership of professional networks) in order to influence their working environment with respect to HR policy and practice, particularly in response to perceived implementation gaps. The current study underlines that employees may be integral to bridging the gap between policy and practice and therefore to ensuring the link between HRM and organisational performance. It also proposes that behavioural responses to HR practices should be considered in future theorising of the HRM-performance relationship.     

Cost-effectiveness of golimumab for the treatment of patients with moderate-to-severe ulcerative colitis in Quebec using a patient level state transition microsimulation

Objective: To conduct cost-effectiveness analyses comparing the addition of golimumab to the standard of care (SoC) for treatment of patients with moderate-to-severe ulcerative colitis (UC) who are refractory to conventional therapies in Quebec (Canada).

Methods: An individual patient state transition microsimulation model was developed to project health outcomes and costs over 10 years, using a payer perspective. The incremental benefit estimates for golimumab were driven by induction response and risk of a flare. Flare risks post-induction were derived for golimumab from the PURSUIT maintenance trial and extension study, while those for SoC were derived from the placebo arms of the Active Ulcerative Colitis Trials (ACT) 1 and 2. Other inputs were derived from multiple sources, including retrospective claims analyses and literature. Costs are reported in 2014 Canadian dollars. A 5% annual discount rate was applied to costs and quality-adjusted life-years (QALYs).

Results: Compared with SoC, golimumab was projected to increase the time spent in mild disease or remission states, decrease flare rates, and increase QALYs. These gains were achieved with higher direct medical costs. The incremental cost-effectiveness ratio for golimumab vs SoC was $63,487 per QALY.

Limitations: The long-term flare projections for SoC were based on the data available from the ACT 1 and 2 placebo arms, as data were not available from the PURSUIT maintenance or extension trial. Additionally, the study was limited to only SoC and golimumab, due to the availability of individual patient data to analyze.

Conclusion: This economic analysis concluded that treatment with golimumab is likely more cost-effective vs SoC when considering cost-effectiveness acceptability thresholds from $50,000–$100,000 per QALY.     

Losing the lead: the patenting decision in the light of the disclosure requirement

Empirical findings state that the disclosure requirement might be a reason for firms to rely on secrecy rather than patents to protect their inventions. We choose a dynamic framework in which we can explicitly analyze the patenting decision reflecting the tradeoff between a positive protective effect and a negative effect due to the required disclosure of the protected invention. In spite of a patent, the inventor's rival may still enter the market with a non-infringing product. Measuring the technological lead of the inventor by a time advantage he has compared with his rival, we show that if his headstart exceeds a critical threshold, he will not patent and rather rely on secrecy.     

Inequality and business cycles in the U.S. and European Union countries

This paper derives the business cycle properties of some aggregate and disaggregate inequality indices for the U.S. and three European Union countries (United Kingdom, Italy, and Greece). The findings suggest that inequality indices move countercyclically with output in the U.S. and the United Kingdom, a procyclical behavior prevailed in Greece, and a mixed cycle influenced Italy. A common countercyclical pattern of inequality indices with inflation and unemployment characterizes the three large economies (U.S., United Kingdom, and Italy). Also, in most countries, the top income group seems to lose at the benefit of the rest during inflationary periods while, in all four countries, the poor will gain from inflation and suffer from unemployment.     

Spatial stochastic frontier models: accounting for unobserved local determinants of inefficiency

This paper analyzes the productivity of farms across 370 municipalities in the Center-West region of Brazil. A stochastic frontier model with a latent spatial structure is proposed to account for possible unknown geographical variation of the outputs. The paper compares versions of the model that include the latent spatial effect in the mean of output or as a variable that conditions the distribution of inefficiency, include or not observed municipal variables, and specify independent normal or conditional autoregressive priors for the spatial effects. The Bayesian paradigm is used to estimate the proposed models. As the resultant posterior distributions do not have a closed form, stochastic simulation techniques are used to obtain samples from them. Two model comparison criteria provide support for including the latent spatial effects, even after considering covariates at the municipal level. Models that ignore the latent spatial effects produce significantly different rankings of inefficiencies across agents.

Business strategy for sustainable development: Impact of life cycle inventory and life cycle impact assessment steps in supply chain design and planning

Sustainability reporting has become a central instrument in displaying a company's strategy and engagement with a more sustainable society. Life cycle assessment (LCA) is an important tool in this context as it is aimed to analyze the entire life cycle of the product/service, instead of focusing on one focal firm. However, the lack of standardized guidelines in its application raises questions regarding the usefulness and validity of results. This study contributes to the improvement of sustainability reporting through the identification of the uncertainty sources in life cycle methodologies that have the biggest impact in the definition of business and environmental strategies, exploring a supply chain‐oriented analysis. The focus is on life cycle inventory (LCI) and life cycle impact assessment (LCIA). A multiobjective optimization‐based methodology is applied to a supply chain case study in the pulp and paper industry. Environmental and economic objectives are considered. Results show that different LCIA methods and different normalization data sets result in significantly different business and environmental strategies. However, different system models and cultural perspectives at the LCI step and variations in the characterization factors tend to lead to the same decisions. Important insights are gained regarding the impact of nonstandardized analysis of the application of LCA in supply chain design and planning decisions and consequently on business strategy definition and sustainability reporting. Furthermore, the importance of operations research methods to improve LCA‐based studies and of bridging the gap between LCA and supply chain management bodies of knowledge is highlighted in this work.     

Negative Child Tax for Economic Efficiency

The Governments recent review of the social security system proposed to continue the payment of Child Benefit to rich and poor parents alike. Alexandra Hardie or the University of Exeter, examines the disincentive effects of the current system of universal child benefit and calls instead for its replacement by selective benefits to improve incentives to employment, simplify administration and concentrate state assistance where it is required.     

Distorted Signals The Taxation of Interest

Should interest be taxed? Alexandra Hardie, of Exeter University, argues that the taxation of interest acts as a major distortion of the economy.