Applied Welfare Economics with Bounded Rationality: Public Policies Toward Remote Sensing

Earlier experimental evidence indicates that some decision makers under-invest in information when it is costly. This insight is applied to the cost–benefit analysis of the provision of data obtained by satellites. In fields like agriculture, remotely sensed information of great precision can be provided to additional farmers at minimal extra costs if a service for farmers with similar information needs is set up. Here, the tendency to under-invest in information asks for creative solutions by the private sector: bankers may work together with rational producers in setting up the information service and promoting it. However, if producers financial resources are insufficient, public intervention, in the form of a free information service may be necessary.The author would like to thank an anonymous referee, Stephan von Cramon-Taubadel, Sean Flynn, Daniel Heller, and Carlos Lenz and participants of the Lisbon Conference of the International Atlantic Economic Society, particularly Asatoshi Maeshiro, for helpful comments.     

The impact of culture and ecology on cooperation in a common-pool resource experiment

Context affects decision-making in many ways. In this paper we explore differences in cooperation behaviour between communal farmers in Namibia and South Africa, who share the same ethnic origin but have had different historical and ecological constraints. We report on a series of field experiments based on a common-pool resource model. Our experimental design is framed according to the grazing situation in semi-arid rangelands. Dependent on the behaviour in previous rounds, participants are facing different states of resource availability with varying need to cooperate, coordinate and to be patient. While only 4% of the grazing areas in South Africa remain in good quality, Namibians achieve a level of 42%. We analyse the different experimental states and find that Namibians behave in all states more cooperatively. We argue that the large difference between the two regions is due to a combination of different historical developments and ecological preconditions: Namibian resource users have a longer experience in cooperative resource management and intact traditional norms. Moreover, the real-life payoffs to cooperation are higher in Namibia stemming from ecological factors.     

Regional rigidities in the process of economic structural development

This paper outlines a framework for a vintage type analysis of structural change in production systems. By focusing on the existing industrial establishments in a region, rigidities are described with regard to (i) production techniques and input requirements, (ii) the semi-fixed location of the labour force and its specific set of production skills, (iii) the existing patterns of intersectoral deliveries. A scenario technique, utilizing programming models, is suggested as a method to study the effects on structural change of such rigidities.     

Wealth and sustainable development: the role of David Pearce

Green net national product was thought to be one way of measuring sustainable income. However, David Pearce understood that a better measure of sustainable development was to look at what a generation is leaving in form of capital assets to later generations. In this article, his arguments and insights are highlighted against recent theoretical advances.     

Budget impact analysis of secukinumab versus adalimumab in the treatment of ankylosing spondylitis

Background: Biologic treatments have enhanced the treatment outcomes of patients with active ankylosing spondylitis (AS). Until recently, TNF-alpha-inhibitors have been the only biologics approved for the treatment of active AS. The objective of this study was to assess the potential financial impact of the first non-TNF-alpha biologic secukinumab (fully human IL-17A-inhibitor) vs adalimumab (TNF-alpha-inhibitor) in the treatment of AS in Finland.

Materials and methods: In this model-based budget impact analysis, patients were treated either with secukinumab (150?mg) or adalimumab (40?mg). The number of patients and market share of different biologics were based on national reimbursement registry data. Adalimumab was the most commonly used biologic treatment for AS, and in the base case analysis all adalimumab patients are assumed to switch to secukinumab. Response rates were based on a matching-adjusted indirect comparison between secukinumab and adalimumab. Patients not achieving response were switched to another biologic treatment.

Results: Treating AS patients with secukinumab instead of adalimumab leads to potential savings of 18.2 million euros within a 5-year time period. The total costs within the follow-up time were 59.5 million euros and 77.7 million euros with and without secukinumab, respectively. According to sensitivity analyses, a higher adoption rate of secukinumab corresponds to higher potential savings.

Conclusions: Secukinumab is a cost-saving treatment option compared with adalimumab in the treatment of AS in Finland. More patients could be treated with a biologic by allocating resources more efficiently.     

A Review on Possible Approaches for Detecting Early Warning Signs in Projects

In this paper, we attempt to provide an overview of the full extent of early warning detection approaches, which are directly or indirectly addressed in the literature. These approaches can aid project managers in taking corrective actions timely enough for preventing failures. The study is based on a review of the current literature within the field of early warning in project management and our own experiences gained from practice. An analysis of the strengths and weaknesses of each approach and their applications in different contexts are also performed. We conclude that the choice of the most effective approach is arguably dependent on the type of project, organizational culture, and the project environment.     

The impact of employment equity regulations on psychological contracts in South Africa

This article will show the impact of employment equity legislation on the psychological employment contracts of the three main employee groupings in South African society. This study is important in that it fills the gap in the literature that identifies labour market regulations as an important shaping influence on the psychological contract. More than 500 managers from across South African industry and from all ethnic groups were surveyed to identify differences in psychological contracts and attitudes towards the social transformation regulations. We found that the legislation has impacted differentially on the three groupings mainly in terms of their loyalty to stay with their organizations, the focus on their career development in terms of the external labour market and the degree to which they felt they had been affected by the legislation. Additionally we find that the perceived linkage between job satisfaction and labour turnover is significantly weakened by labour market legislation in the case of the beneficiaries of the legislation, but that this may not be the case for those negatively affected by the legislation. The findings have significant implications for the HRM practices of multinationals operating in societies with significant labour market regulatory interventions.