Declining Returns to Education in Norway? Comparing Estimates across Cohorts,Sectors and over Time

We examine the role of the Norwegian education system in explaining the moderate and stable earnings dispersion in Norway. Estimating earnings equations for 1980 and 1990, we find that returns to education have been remarkably stable in Norway, also when we compare returns to education across different sectors of the economy. Our analysis controls for self-selection into education by using an instrumental variable technique. We estimate separate education earnings profiles for different cohorts to identify the effect on wage premiums of the large changes that have taken place in the Norwegian education system. The substantially higher level of educational attainment for more recent cohorts does not, cet. par. , seem to have a negative effect on educational wage premiums for these younger cohorts.
JEL classification: J 24, J 31, I     

New Keynesian Versus New Classical Theories of Aggregate Supply: Evidence from the Oecd Countries

Using annual and quarterly data for the OECD countries this paper tests four theories of aggregate supply, namely the sticky wage, the sticky price, the worker misperception and the producer misinformation models. The empirical estimates suggest that the short run aggregate supply curve is positively sloped as a result of price and wage stickiness. Furthermore, the slope of the aggregate supply curve is found to be a positive function of the rate of inflation which is consistent with the sticky price model.     

Asymmetric price adjustment in a menu-cost model

In this paper we demonstrate that the menu-cost model implies that prices adjust asymmetrically to nominal-demand shocks and that the asymmetry is linked to the elasticity of demand as well as menu costs. These implications are tested using manufacturing and retailing panel data for the OECD countries. The empirical results give some support for the menu-cost model.     

Trade Barriers,Openness, and Economic Growth

Using a long data set on openness and productivity, this article tests the influence of openness on total factor productivity (TFP) growth and per capita growth since 1870 for 16 industrialized countries. It is shown, in simple regressions, that growth is, by and large, independent of openness. However, once the interaction between openness and foreign knowledge is allowed for, productivity is positively affected by openness.     

Person-environment fit and emotional control: Assigned expatriates vs. self-initiated expatriates

Studies exploring the difference of assigned expatriates (AEs) and self-initiated expatriates (SIEs) have recently started to emerge. However, so far few results have been connected to theory developed in this area. In the current study, we use responses from 324 business expatriates in China and take departure in the two elements of the person-environment fit theory, supplementary fit and complementary fit. We use the supplementary fit element of this theory to explain why emotional control (low dispositional anger and high self-control) increases performance and satisfaction in China. We rely on the complementary element of person-environment fit theory for understanding why this effect may vary between AEs and SIEs. Our argument is that as opposed to SIEs, AEs could add contact and knowledge from the parent company to the local organization thus complementing it. Our findings, with regard to supplementary fit, show that self-control has a positive association with both job performance and job satisfaction while trait anger has a negative effect on job satisfaction. In relation to complementary fit, also as expected, we found a buffering moderation effect of being AE, meaning that the negative effect of their trait anger on job satisfaction was diminished for this group.     

The Indian growth miracle and endogenous growth

Using over half a century of R&D data for India, this paper tests whether the second-generation endogenous growth theories are consistent with India's growth experience. Furthermore, the paper examines the extent to which growth in India can be explained by R&D activity, international R&D spillovers, catch-up to the technology frontier and policy reforms. The empirical results show that the growth in India over the past five decades has been driven by research intensity following the predictions of Schumpeterian growth theory.     

Long-term cost-effectiveness analysis shows that IDegLira is associated with improved outcomes and lower costs compared with insulin glargine U100 plus insulin aspart in the US

Abstract

Aims: The clinical and economic impact of diabetes is growing in the US. Choosing therapies that are both effective and cost-effective is becoming increasingly important. The aim of the present analysis was to assess the long-term cost-effectiveness of IDegLira for treatment of patients with type 2 diabetes mellitus not meeting glycemic targets on basal insulin, vs insulin glargine U100 plus insulin aspart, in the US setting.

Materials and methods: Long-term projections of cost-effectiveness outcomes were made using the IQVIA CORE Diabetes Model. Clinical inputs were based on the DUAL VII trial, with costs (accounted from a healthcare payer perspective) and utilities based on published sources. Future costs and clinical benefits were discounted at 3% annually.

Results: IDegLira was associated with increased discounted life expectancy by 0.02 years and increased discounted quality-adjusted life expectancy by 0.22 quality-adjusted life years compared with insulin glargine U100 plus insulin aspart. Evaluation of direct medical costs suggested that the mean cost per patient with IDegLira was $3,571 lower than with insulin glargine U100 plus insulin aspart. The cost saving was driven predominantly by the lower acquisition cost of IDegLira compared with insulin glargine U100 plus insulin aspart, with further cost savings identified as a result of avoided treatment of diabetes-related complications. IDegLira was associated with improved clinical outcomes at a reduced cost compared with insulin glargine U100 plus insulin aspart.

Conclusions: Based on clinical trial data, the present analysis suggests that IDegLira is associated with improved clinical outcomes and cost savings compared with treatment with insulin glargine U100 plus insulin aspart for patients with type 2 diabetes not achieving glycemic control on basal insulin in the US. Therefore, IDegLira is likely to be considered dominant (cost saving and more effective) and, consequently, highly cost-effective in the US setting.     

From free to civilized trade: a European perspective

In the context of unfettered international competition, free trade tends to undermine basic moral concepts such as justice, dignity, and fairness. Therefore, we suggest moving to a new understanding of markets in international trade, which we call ‘civilized markets’. A civilized market tries to ensure that free entrepreneurship and open markets are eventually compatible with those basic and universal values that also serve as moral cornerstones of the European project. In order to accomplish a civilized market, we propose to establish a new European institution with a mandate to set and enforce minimum standards for goods sold on the European market.