Antecedents and Consequences of Mutual Trust in PPPs

This article aims to identify the antecedents and consequences of mutual trust in public-private partnerships (PPPs), making use of the theory of mutual trust to develop the conceptual model. The article then tests hypotheses to find the role of trust in PPPs and also to identify the antecedents and consequences. Data have been collected from personnel working in government, corporate and non-profit sectors related to a post-earthquake psychological rehabilitation program in China. A total of 234 usable responses have been obtained with a return rate of 69.2%. The results of structural equation modeling show that while mutual communication, corporate reputation, and shared value influence mutual trust between partners positively, opportunism exerts negative influence on trust; in addition, trust also influences performance, commitment, and long-term relationships between partners. We conclude that mutual trust eliminates opportunism and increases confidence between partners, leading to improved inter-firm performance. If the partners establish trust in the PPP, they reap all other benefits of cooperation of PPPs.     

The Role of Local Agglomeration Economies and Regional Characteristics in Attracting FDI: Italian Evidence

The objective of this paper is to test for the importance of local agglomeration externalities in determining inward foreign direct investment (FDI) intensity, viewed as a measure of regional attractiveness to FDI. The links between the degree of FDI inflow penetration into Italy and its determinants at the regional level are examined using alternative fixed effects panel data model specifications, also extended to include spatial effects. It is found that sectoral and regional specificities are relevant in attracting inward FDI into Italy and the different effects of intra‐sector and inter‐sector spillovers can be distinguished. There is also evidence that the importance of agglomeration spillovers connected to the geographical distance varies across regions, indicating both substitution and complementarity effects from FDI inflows into neighboring regions.     

Are there pecuniary compensations for working conditions?

In this paper we assess the relative contribution of working conditions to wage determination with an emphasis on differences along the earnings distribution. A survey of British employees in 2001 rich in questions regarding the job post enables us to separate the contribution of working conditions, job attributes and individual characteristics to the process of wage determination. Standard wage equations reveal that covariates such as having “repetitive job” and using generic skills such as “literacy” or “customer handling skills” are associated with significant premiums and penalties. Quantile regressions confirm the presence of penalties to poor working conditions, such as “working to tight deadlines”, that are significant in the middle section of the earnings distribution and robust to the inclusion of a wide range of controls for person, firm and other job characteristics. Counterfactual decompositions at quantiles show that, despite the apparent penalty, there are pecuniary compensations to poor working conditions around the first quartile and the median of the earnings distribution.     

Management sub-advising in the mutual fund industry

This is a study of how contractual mechanisms can mitigate agency conflicts in sub-advised mutual funds. Sub-advising contracts allow fund families to expand their product offerings to include new investment styles and thereby gain market share. We show that costly contractual arrangements, such as co-branding, multi-advising, and performance-based compensation, can mitigate agency conflicts in outsourcing and protect investors from potential underperformance. Fund families will find it cost-effective to implement such incentive mechanisms only when investors are sophisticated in assessing manager skill. The findings help to explain why a large percentage of fund families outsource their funds to advisory firms.     

Valuing the Arsenic Contamination of Groundwater in Bangladesh

The use of groundwater in Bangladesh has in the past been promoted as a means of avoiding waterborne diseases associated with the consumption of untreated surface water. Unfortunately, the recent discovery of high levels of naturally occurring arsenic in groundwater in Bangladesh used for drinking purposes has led one international agency to describe the situation as a major public health emergency. Arsenic ingestion is associated with an elevated risk of various cancers. Epidemiological dose–response functions combined with survey estimates of arsenic concentrations in groundwater, and the number of households in Bangladesh relying on groundwater for drinking are used to derive an estimate of annual mortality and morbidity cases attributable to arsenic contamination. The estimated health impacts include 6500 fatal cancers and 2000 non-fatal cancers. Aggregate willingness to pay to avoid these health impacts is estimated to be $2.7 billion annually using purchasing power parity exchange rates. The methodology and results presented in this paper may have application to other countries.     

Forecasting via the Box-Jenkins method

In numerous marketing studies, there is a need for adequate and appropriate forecasting methods. The Box-Jenkins model-building technique for discrete, correlated data points is described for both univariate and multivariate input-output models, yielding minimum mean square error forecasts. The procedure is applicable where at least fifty observations occurring at equally spaced time intervals are available.     

Organic as a Heuristic Cue: What Spanish Consumers Mean by Organic Foods

One of the strategies employed by companies to differentiate themselves from others, in the food market, has been to market organic products according to the assumption that environmental values are an important influence on people's behavior. However, studies of the behavior of organic food consumers show that there is some debate on this subject. Although some studies associate organic food consumption with motives and attitudes in which the environment plays a predominant role, a greater number conclude that the motives for consuming this type of food are basically egoistic (related to health, food safety, or the quality or flavor of the food). This can lead to problems in deciding the central thrust of the marketing strategy. The purpose of this paper is to analyze the meaning and interpretations placed on the term “organic,” and how they are integrated, as a way to explain consumption behavior. Qualitative research methods were adopted for this purpose. Four focus group sessions with different sociodemographic profiles, held in the cities of Madrid and Seville, in Spain, displayed two evident paradoxes, which could indicate that environmental motives are not important for consumers in this market. It is concluded that the term “organic” plays an important role as a heuristic cue to superiority, irrespective of the consumer's knowledge about the real features of organic food. Three alternative models are presented to explain consumer behavior. These results could be useful to food companies, largely in connection with positioning this type of product and with their communications policy.     

Cost minimization analysis of capecitabine versus 5-fluorouracil-based treatment for gastric cancer patients in Hong Kong

Background: EOX (epirubicin, oxaliplatin, Xeloda; capecitabine) and FOLFOX4 (5-fluorouracil (5-FU), leucovorin, oxaliplatin) are the common chemotherapy regimens used in the treatment of advanced gastric cancer (aGC) in Hong Kong. This study aimed to compare the costs of these therapies for aGC patients from both the healthcare and societal perspectives. It should be noted that, while FOLFOX4 is routinely administered in an outpatient setting in North America and Europe, inpatient setting is adopted in Hong Kong instead, incurring hospitalization cost as a result.

Methods: Fifty-eight patients were identified from the electronic records in two public tertiary hospitals, with 45 and 13 receiving EOX and FOLFOX4 regimens, respectively. Healthcare cost was direct medical costs including drugs, clinic follow-up, hospitalization, diagnostic laboratories, and radiographs. Societal cost refers to indirect costs such as patient time and travel costs. Cost items were further classified as “expected” or “unexpected”. All cost data was expressed in US dollars.

Results: Patients in the EOX and FOLFOX4 arm received an average of 5.3 and 7.8 cycles of treatment, respectively. The capecitabine-based regimen group had a higher expected medication cost per cycle when compared to the 5-FU-based treatment group (US$290.3 vs US$66.9, p?p?p?p?=?.001), respectively, in the capecitabine-based regimen group. Sensitivity analyses based on full cycle regimen costs and net capecitabine or 5-FU/leucovorin costs still showed EOX to be less costly than FOLFOX4.

Conclusion: The capecitabine-based regimen, EOX, was found to generate significant cost saving from both the healthcare and societal perspectives in regions in which FOLFOX4 is given in an inpatient setting.     

Medication adherence and persistence in the treatment of rheumatoid arthritis with adalimumab and etanercept. Six years of analysis

Objective:

The aim of this study was to evaluate medication adherence and persistence of patients treated with Etanercept and Adalimumab for Rheumatoid Arthritis, also giving economic evaluations on therapy costs for Received Daily Dose (RDD).

Materials and methods:

This retrospective study took into account 6 years from January 1, 2007 to December 31, 2012. Medication adherence was quantified utilizing the ratio between RDD and Prescribed Daily Dose (PDD). Persistence has been reckoned taking into account the actual days of therapy comparing posology with supplied dose. The persistence has been graphed according to Kaplan-Meier method. The cost per RDD was reckoned starting from the expense incurred by Pescara General Hospital.

Results:

Medication adherence gave results in values between 0.88–0.97 for Etanercept and 0.83–0.90 for Adalimumab. The value of persistence was 100% for Etanercept and 90% for Adalimumab for the first year, and 70% for Etanercept and 80% for Adalimumab for the second year. In the 3rd year the persistence for Etanercept was 50% while for Adalimumab it was 60%. In the fourth year the persistence for Etanercept was 21% while for Adalimumab it was 27%. The statistical analysis was conducted using the Log rank test. The average cost per RDD was €32.97 for Etanercept and for Adalimumab it was €32.00 as an average of 6 years.

Conclusion:

The medication adherence was good for both Etanercept and Adalimumab. The rate of persistence decreased strictly in the fourth year of treatment. This data suggests the need for continuous monitoring of patients in treatment with TNF blockers.