Neighbourhood Effects as Indirect Effects: Evidence from a Dutch Case Study on the Significance of Neighbourhood for Employment Trajectories

One of the key challenges in the study of neighbourhood effects on work is to understand the pathways through which disadvantaged neighbourhoods impact the employment opportunities of residents. Endogenous explanations for neighbourhood effects focus on social life in these neighbourhoods, identifying mechanisms of social isolation, deviant work ethics and neighbourhood disorder. This article studies these mechanisms in a low‐income neighbourhood in the Netherlands. The case study shows that unfavourable socioeconomic outcomes can be indirect and unintended consequences of actions and choices in everyday life that are not directly concerned with work. Nevertheless, these individual actions and choices reflect local social practices that are influenced by the marginalized context in which residents lead their lives.     

Two state capital accumulation with heterogenous products: Disruptive vs. non-disruptive goods

The paper considers the problem of a firm that, while producing a standard product, has the option to introduce an innovative product. The innovative product competes with the standard product and will therefore reduce revenues of the standard product. A distinction is made between innovative products that do or do not become even more relatively appealing as their market share grows (e.g., because of network externalities). It is shown that in the former case, which we call a “disruptive” good, history dependent long run equilibria can occur, which are in line with recent real life economic examples.     

Shrinkage estimation of semiparametric multiplicative error models

Within models for nonnegative time series, it is common to encounter deterministic components (trends, seasonalities) which can be specified in a flexible form. This work proposes the use of shrinkage type estimation for the parameters of such components. The amount of smoothing to be imposed on the estimates can be chosen using different methodologies: Cross-Validation for dependent data or the recently proposed Focused Information Criterion. We illustrate such a methodology using a semiparametric autoregressive conditional duration model that decomposes the conditional expectations of durations into their dynamic (parametric) and diurnal (flexible) components. We use a shrinkage estimator that jointly estimates the parameters of the two components and controls the smoothness of the estimated flexible component. The results show that, from the forecasting perspective, an appropriate shrinkage strategy can significantly improve on the baseline maximum likelihood estimation.     

Biodiversity,natural resource accounting and ecological monitoring

The role that natural resource accounting and ecological monitoring can play in conserving biological diversity is discussed. There exists a widespread view that modifications to national income accounting procedures are crucial to the pursuit of sustainability and particularly the protection of biodiversity. However, we argue that the availability of biologically-adjusted national income figures would not, of itself, be likely to contribute significantly to the protection of biological resources. The conservation of biodiversity requires, among other things, a significantly improved understanding of the nature of environmental changes arising from imposed management regimes and the effects that these changes have on the persistence of biodiversity. On this basis, and in the context of sustainable development, we suggest that ecological monitoring should take priority over the generation of economic data.In many regions of the world sufficient ecological knowledge is available to design and implement integrated monitoring networks that can be used to track the status of many components of biodiversity and inform decisions taken over their management. We outline how this might be undertaken using a hierarchical and prioritised approach aimed, pragmatically, in the first instance at helping to preserve those ecosystems, communities and species which are perceived to be most threatened. Some emphasis is given to the Australian situation because it is the only rich megadiversity nation and it is at the forefront of the development of scientific techniques that can be used to help design soundly-based and cost-effective monitoring programs.We acknowledge the useful comments of two referees, and claim exclusive property rights in remaining errors.     

The importance of measuring patient satisfaction

Managed care has demonstrated its ability to contain costs. Its emergence as a dominant factor in the health care marketplace has raised concerns about measuring health care quality. As the field of quality assurance is evolving, it is becoming clearer that patient satisfaction surveys should be an integral component of assessing care.     

Cost-effectiveness of foreign aid programs in the baltics

After the upheavals in Central and Eastern Europe in the late 1980s and early 1990s, the Western world has given considerable aid to the fledgling democracies. In this paper we draw a summary from Baltic experience in the fields of educational programs, scientific and environmental programs, and commercial projects in banking, taxation, and energy. We analyze the motivation and identify different possible effects of foreign aid. We signal possible inefficiencies arising from the lack of coordination of foreign aid, deal with possible waste as being a form of loss in cost-effectiveness, and address the policies followed by aid-providing agencies. Finally, we suggest ways that can help to achieve cost-effectiveness by assisting the donor and recipient in maximizing benefits gained and possibly reducing costs.     

SCHOOL CHOICE: SUPPORTERS AND OPPONENTS

We examine the attitudes of Ohio homeowners about school choice, which includes open enrollment programs, school vouchers, tuition tax credits, and charter schools. Previous studies examine more limited forms of choice and investigate fewer possible influences. Overall we report at least five new findings and five findings that contradict previous studies. We find the strongest predictors of opposition for school choice are people having graduate degrees and living in high‐performing public school districts. We find people living in blue collar areas and using private schools to be the strongest predictors of support. Males tend to oppose choice and African Americans support it. We find no role for income, the convenience of alternative schools, or the protection of house values in support for school choice. Overall we report at least five new findings and five findings that contradict previous studies. (JEL H44, I22)     

Healthcare costs for Crohn’s disease patients treated with infliximab: a propensity weighted comparison of the effects of treatment adherence

Objective:

The objective for the research was to evaluate the direct healthcare costs for Crohn’s disease (CD) patients categorized by adherence status.

Methods:

Adult patients with ≥1 claim for infliximab and ≥2 claims for CD who were continuously insured for 12 months before and after their first infliximab infusion (index date) were identified in a 2006–2009 US managed care database. Patients were excluded if they had rheumatoid arthritis claims, received infliximab billed as a pharmacy benefit, or received another biologic drug. Patients were categorized as being either adherent or intermittently adherent to infliximab using a pre-defined algorithm. Total and component direct costs, CD-related costs, rates of surgery, and days of hospitalization were estimated for the 360-day post-index period. Propensity weighted generalized linear models were used to adjust the cost estimates for potential confounding variables.

Results:

The total propensity weighted cost for infliximab adherent patients was $40,425 (95% CI?=?[$38,686, $42,242]), compared to $41,082 (95% CI?=?[$38,163, $44,223]) for the intermittently adherent (p?=?0.71). However, adherent patients had lower total direct medical costs, exclusive of infliximab, that were $13,097 (95% CI?=?[$12,141, $14,127]) compared with $20,068 (95% CI?=?[$17,676, $22,784]) for intermittently adherent patients as a result of substantially lower hospital and outpatient costs (p?Conclusions:

Greater drug-related costs for infliximab adherent patients were offset by lower costs from hospitalization and outpatient visits. These findings indicate that adherent patients have improved clinical outcomes, at a similar aggregate cost, than patients who are only intermittently adherent to therapy.