The effects of preferred provider organizations on costs and utilization of hysterectomy

In this study, the costs and service utilization of preferred provider organizations (PPOs) were compared against traditional indemnity plans with similar benefits and utilization review for hysterectomy, a potentially overused procedure. PPOs were associated with significant cost savings, achieved primarily through lower utilization rates.     

On the aggregate welfare cost of Great Depression unemployment

The potential benefit of policies that eliminate a small likelihood of economic crises is calculated. An economic crisis is defined as an increase in unemployment of the magnitude observed during the Great Depression. For the U.S., the maximum likelihood estimate of entering a depression is found to be about once every 83 years. The welfare gain from setting this small probability to zero can range between 1% and 7% of annual consumption in perpetuity. For most estimates, more than half of these large gains results from a reduction in individual consumption volatility.     

The role of consumers in the public policy process

This paper describes the current role of consumers in the development of public policy and supports the need for more consumer inputs in the public policy process. The concept of balance among various interacting publics is viewed as a framework for understanding public policy formation and improving the representation of the consuming public in this process. In a pluralistic political system, relevant publics should be heard. Government should restructure itself to obtain more consumer inputs and marketing public policy decisions should be based on social, technological, as well as market structure considerations.     

The MFA: Its costs and consequences

The present Multi-Fibre Arrangement expires on July 31st. What are the arguments voiced by the proponents of a further extention? What would be the effects of a reduction in protectionism on the textile and clothing industries?     

Book reviews

Journal of the Academy of Marketing Science -     

Export Bans, Environment, and Developing Country Welfare

Deforestation is a serious problem in several developing countries which are timber exporters. Export bans on logs, therefore, have been hailed by some as a welfare-improving policy relative to free trade. This paper explores the case for an export ban on an intermediate good whose production generates environmental damage. In this two-good model, a trade-off emerges between achieving the environmental target and raising national welfare. When environmental damage grows rapidly with output, an export ban is likely to raise welfare. However, it is also likely to lead to higher rates of harvesting than are sustainable.