Social support among heterogeneous partners: an experimental test

This paper studies how dyadic social support is affected by heterogeneity of the partners. We distinguish heterogeneity with respect to three parameters the likelihood of needing support; the benefits from receiving support; and the costs of providing support. Hypotheses are based on a game-theoretic analysis of an iterated support game. First, we predict that heterogeneity in one of the parameters hampers social support. Second, we predict that under heterogeneity with respect to two of the parameters, support is most likely if there is a specific heterogeneous distribution such that heterogeneity in one parameter ‘compensates’ for heterogeneity in the other parameter. If there is no compensation social support is even more hampered. The hypotheses have been tested by experimental data with a mixed within-subject, between-subject design. The data gives support to the hypotheses.     

Environmental regulation of households: An empirical review of economic and psychological factors

The literature on sustainable consumption and environmental regulation of household behavior is dominated by conceptual and normative approaches. As a result, many suggestions lack a firm empirical basis. To overcome this deficiency, econometric studies in three areas of environmentally relevant activities of households are reviewed: residential use of energy, generation of solid waste and recycling, and residential use of water. Next to price and income elasticities, attention is devoted to individual socio-economic features and psychological factors, such as attitudes, knowledge, perceptions and values. Potential psychological determinants and related insights are further examined by discussing a range of representative and illustrative statistical–psychological studies of environmental behavior. One important general finding is that there are very few empirical studies that systematically combine socio-economic and psychological determinants. A range of insights for environmental policy is derived, and research recommendations are offered.     

Travelling ‘green’: is tourists' happiness at stake?

Several western governments have implemented environmental policies which increase the cost of air travel. Such policies aim to reduce the impact of air travel on climate change, but at the same time they restrict tourists in their travels. This study examines the extent to which the average tourist's happiness is affected by ‘involuntary green travel’, defined as reduced CO₂ emission travel imposed by government regulations. This issue was addressed in a study among 588 Dutch citizens who completed a self-report questionnaire containing questions about their happiness. The strongest determinant of tourists' happiness is freedom in choosing a destination. Any policy measure that interferes with tourists' freedom in destination choice will negatively affect tourists' happiness. Six percent of their happiness is at stake and potentially 17% of all holiday trips are affected. The number of tourists involved is possibly much smaller. The best options for governments are to impose taxes on long-haul destinations, which affect only a small share of all tourists, and air routes which can also be travelled by a variety of alternative modes of transport and thus less limiting to destination choice within this market segment.     

Determining the environmental effects of indirect subsidies: integrated method and application to the Netherlands

The term ‘environmentally damaging subsidies’ covers all sorts of direct and indirect subsidies with negative consequences for the environment. This article presents a method to determine the environmental impact of these subsidies. It combines a microeconomic framework with an environmental impact module. The method is particularly useful for analysing indirect subsidies. These are often hidden, and therefore, not recognized as subsidies. Use of the method will provide a basis for formulating corrective policy. The method is applied to several important subsidies in the Netherlands, in agriculture, energy and transport sectors. The results reveal large environmental effects, which deserve serious attention from policy makers. To illustrate the specific features of the method, its application to a particular subsidy, namely the exemption of excise taxes on aviation fuels, is presented in full detail.     

Self-confidence and strategic behavior

We suggest that overconfidence (conscious or unconscious) is motivated in part by strategic considerations, and test this experimentally. We find compelling supporting evidence in the behavior of participants who send and respond to others’ statements of confidence about how well they have scored on an IQ test. In two-player tournaments where the higher score wins, a player is very likely to choose to compete when he knows that his own stated confidence is higher than the other player’s, but rarely when the reverse is true. Consistent with this behavior, stated confidence is inflated by males when deterrence is strategically optimal and is instead deflated (by males and females) when luring (encouraging entry) is strategically optimal. This behavior is consistent with the equilibrium of the corresponding signaling game. Overconfident statements are used in environments that seem familiar, and we present evidence that suggests that this can occur on an unconscious level.     

Cost-effectiveness of sequenced treatment of rheumatoid arthritis with targeted immune modulators

Aims: To determine the cost-effectiveness of treatment sequences of biologic disease-modifying anti-rheumatic drugs or Janus kinase/STAT pathway inhibitors (collectively referred to as bDMARDs) vs conventional DMARDs (cDMARDs) from the US societal perspective for treatment of patients with moderately to severely active rheumatoid arthritis (RA) with inadequate responses to cDMARDs.

Materials and methods: An individual patient simulation model was developed that assesses the impact of treatments on disease based on clinical trial data and real-world evidence. Treatment strategies included sequences starting with etanercept, adalimumab, certolizumab, or abatacept. Each of these treatment strategies was compared with cDMARDs. Incremental cost, incremental quality-adjusted life-years (QALYs), and incremental cost-effectiveness ratios (ICERs) were calculated for each treatment sequence relative to cDMARDs. The cost-effectiveness of each strategy was determined using a US willingness-to-pay (WTP) threshold of $150,000/QALY.

Results: For the base-case scenario, bDMARD treatment sequences were associated with greater treatment benefit (i.e. more QALYs), lower lost productivity costs, and greater treatment-related costs than cDMARDs. The expected ICERs for bDMARD sequences ranged from ～$126,000 to $140,000 per QALY gained, which is below the US-specific WTP. Alternative scenarios examining the effects of homogeneous patients, dose increases, increased costs of hospitalization for severely physically impaired patients, and a lower baseline Health Assessment Questionnaire (HAQ) Disability Index score resulted in similar ICERs.

Conclusions: bDMARD treatment sequences are cost-effective from a US societal perspective.     

Internalising the costs of fragmentation and nutrient deposition in spatial planning: Extending a decision support tool for the Netherlands

The Land Use Scanner (LUS) is a decision support system for land use planning that is widely used in the Netherlands. The model yields solutions that have a high resolution (500×500 m) and reflect economic equilibrium in the land market, in which eighteen types of land use and nine aggregated habitat types competitively bid for locations. Here, an extension to the LUS is presented that enables the internalisation of environmental externalities. The focus in this study is on two important externalities, namely ammonia emissions from agriculture and habitat fragmentation. We simulate four IPCC-based land use scenarios and assess the level of fragmentation of the nine habitat types. We also perform sensitivity analyses in the most market-oriented scenario on the effectiveness of market-based instruments in promoting more efficient land allocation. The simulation results suggest that particularly the habitat type ‘rain-fed mires and bogs’ is susceptible to fragmentation. The sensitivity analyses show that internalising the damage costs of fragmentation resulted in smaller changes in land allocation than internalising those of nitrogen deposition. For both instruments, the policy effort was large in relation to the efficiency gains in land allocation.     

‘Eating the bread out of their mouth’: Antwerp's export trade and generalized institutions, 1544–5

This article studies the distribution of exports from mid‐sixteenth‐century Antwerp at the individual and group level (grouped by merchant origin). Recently, scholars have argued that sixteenth‐century Antwerp, and in its wake a series of other cities, hosted an open‐access market as a result of an evolution towards open‐access institutions. However, the direct effect of this institutional change on merchant enterprise is hard to measure. Relying on detailed tax records, preferences at the individual merchant level for particular destinations and commodities are documented, to evaluate whether exporters had equal chances in Antwerp's export market. A few exporters had large export shares next to a multitude of smaller merchants. The exports of these smaller merchants to distant destinations and their participation in the export of important products demonstrate a fairly level commercial playing field with regard to their larger‐scale colleagues. Foreign traders had access to trade in Low Countries products, while local merchants were active in the export of major transit products. The activities of the latter group are particularly important; contrary to previous literature, Low Countries traders did not differ in their preference for home‐grown products.     

Coevolution of economic behaviour and institutions: towards a theory of institutional change

Traditionally, economics has regarded institutions, notably norms and regulations, as fixed or exogenous. Surprisingly few insights on institutional evolution from natural and social sciences have made their way into economics. This article gives an overview of evolutionary theories of institutions in biology, sociology, anthropology and economics. These theories are subsequently compared with non-evolutionary theories of institutions. Next, the insights and approaches are integrated into a framework for analysis of institutions based on the notion of coevolution.JEL Classification: B52, D10, D70, D64, Z13J.C.J.M. van den Bergh