The Monetary Analysis of Hyperinflation and the Appropriate Specification of the Demand for Money

Abstract. This paper emerges from the failure of the traditional models of hyperinflation with perfect foresight. Insights from two standard optimizing monetary settings and economic reasoning from case studies of extreme hyperinflation episodes provide relevant requirements for the specification of the demand for money during hyperinflation. The paper demonstrates that the possibility of perfect foresight monetary hyperinflation paths depends robustly on the essentiality of money. The essentiality of money provides some depth of explanation of the reasons why the popular semi‐log schedule of the demand for money is not appropriate for analysing monetary hyperinflation with perfect foresight. The paper proposes a simple test of money essentiality for the appropriate specification of the demand‐for‐money equation in empirical studies of hyperinflation.     

Liquid retail: cultural perspectives on marketplace transformation

ABSTRACT

Inspired by Bauman’s notion of “liquidity,” we problematize the socio-cultural dynamics taking place in contemporary retail. The notion of liquid retail enables researchers to untangle marketplace transformation and to highlight developments centred around markets and market-actors that jointly transform each other. This introduction underlines, as a point of departure, recent developments in retailing that have been marked by the corrosion of fixity and boundaries. We provide a short synopsis of marketplace transformation and liquid retail, from a socio-cultural perspective, and summarize the papers included in this special issue.     

Budesonide with multi-matrix technology as second-line treatment for ulcerative colitis: evaluation of long-term cost-effectiveness in the Netherlands

Aims: Budesonide with multi-matrix technology (MMX) is an oral corticosteroid, shown to have high topical activity against ulcerative colitis (UC) while maintaining low systemic bioavailability with few adverse events. The aim of this study was to evaluate the cost-effectiveness of budesonide MMX versus commonly used corticosteroids, in the second-line treatment of active mild-to-moderate UC in the Netherlands.

Materials and methods: An eight-state Markov model with an 8 week cycle length captured remission, four distinct therapy stages, hospitalization, possible colectomy and mortality. Remission probability for budesonide MMX was based on the CORE-II study. Population characteristics were derived from the Dutch Inflammatory Bowel Disease South Limburg cohort (n?=?598) and included patients with proctitis (39%), left-sided (42%) and extensive disease (19%). Comparators (topical budesonide foam and enema, oral budesonide and prednisolone) were selected based on current Dutch clinical practice. Treatment effects were evaluated by network meta-analysis using a Bayesian framework. Cost-effectiveness analysis was performed over a 5 year time horizon from a societal perspective, with costs, health-state and adverse event utilities derived from published sources. Outcomes were weighted by disease extent distribution and corresponding comparators.

Results: Budesonide MMX was associated with comparable quality-adjusted life year (QALY) gain versus foam and oral formulations (+0.01 QALYs) in the total UC population, whilst being cost-saving (EUR 366 per patient). Probabilistic sensitivity analysis evaluated an 86.6% probability of budesonide MMX being dominant (cost-saving with QALY gain) versus these comparators. Exploratory analysis showed similar findings versus prednisolone.

Limitations: Differing definitions of trial end-points and remission across trials meant indirect comparison was not ideal. However, in the absence of head-to-head clinical data, these comparisons are reasonable alternatives and currently offer the only comparison of second-line UC treatments.

Conclusions: In the present analysis, budesonide MMX was shown to be cost-effective versus comparators in the total UC population, for the second-line treatment of active mild-to-moderate UC in the Netherlands.     

On the Use of the Log CAR Measure in Event Studies

Cross-sectional averages of log returns have been used to measure shareholder wealth effects in several event studies. No adequate explanation of the implied portfolio strategy has ever been provided in the literature. We argue that the method is biased or does not portray a realistic portfolio strategy. It should therefore be used with caution in the event-study' literature.     

Are newsgroups extending "invisible colleges" into the digital infrastructure of science?

This paper contributes to the debate on the influence of electronic communication on the informal exchange of information among scientists and practitioners. The research is focused on an empirical analysis of three specialised Newsgroups in "speech technology" (comp.speech, comp.speech.research and comp.speech.users), over the period 1992-2000. Looking at these discussion forums as electronic systems of social interaction, it is appropriate to ask whether they are extending the traditional social networks of "invisible colleges" into the digital age? This paper concludes that this is indeed occurring. First, to a significant extent these electronic environments support international and inter-sectoral remote collaboration. Secondly, these forums support the creation of key properties of "invisible colleges", persistent interaction among peers and a "division of labour" in the accumulation of expertise. Both of these properties are supported by a longitudinal network analysis of the forums. Further opportunities for inquiry are discussed in the concluding section.     

Institutions and growth: evidence from estimation methods robust to weak instruments

This article focuses on the empirical approach proposed by Hall and Jones (1999 Hall, RE and Jones, CI(HJ99). 1999. Why do some countries produce so much more output per worker than others?. The Quarterly Journal of Economics, 114: 83–116. [Crossref], [Web of Science ®] , [Google Scholar]) to estimate the effect of what they call ‘social infrastructure’ on productivity across countries. We consider the issue of weak identification in their linear instrumental variables model. The evidence obtained from partially robust estimators, such as the k-class and jackknife estimators, is interpreted on the basis of Monte Carlo studies. Our findings suggest that using certain k-class estimators allows exclusive reliance on the linguistic variables to instrument for institutional quality despite their low correlation with the endogenous regressor in question.     

Diversity of innovation patterns in services

Recently, literature on innovation in service activities has increased significantly. Much effort has been concentrated on understanding the importance of innovation for these activities, and on stressing innovative differences relative to the manufacturing innovation model. However, a deeper understanding is needed in three main areas: the degree of innovation heterogeneity among different service activities, the factors that explain this heterogeneity, and the primary drivers of the innovation process for each activity. Using results from the Third Community Innovation Survey, this paper aims to identify the extent to which there are similarities and differences in the main innovation attributes in four important service sub-sectors. After describing the characteristics of innovation and the behavior of variables in the sub-sectors, a typology of innovation patterns is identified.     

Re-scaling risk governance using local appraisal and community involvement

This paper describes a risk governance model applied on a local scale, showing the advantages and constraints found during its application. The risk governance model, built on a municipal scale, results from the application of the International Risk Governance Council framework. The model is characterised by the cyclicity between the assessment and management spheres, assuming communication to be essential in all stages. Its application in central Portugal is rooted in a specific knowledge of hazards and their impacts, the human and financial constraints, and the expectations of citizens and stakeholders. The results show that preformatted management solutions derived from national civil protection stakeholders can be adapted to a local physical, social and institutional context. It was found that this depends significantly on the stakeholders’ concerns assessment, as this allows the subsequent risk management options to be adapted and legitimised. As a result, more appropriate land-use regulations and mitigation strategies are being designed, which are related to urban planning, road design, risk sensitisation and communication tools. However, two features are likely to lead to an overlapping of competences and conflicts concerning responsibility for decision-making in the actual civil protection structure: the current constraints on resources on an operational level and the potentially inadequate representation of stakeholders on a strategic level.     

Online advertising and privacy

An online platform auctions an advertising slot. Several advertisers compete in the auction, and consumers differ in their preferences. Prior to the auction, the platform decides whether to allow advertisers to access information about consumers (disclosure) or not (privacy). Disclosure improves the match between advertisers and consumers but increases product prices, even without price‐discrimination. We provide conditions under which disclosure or privacy is privately and/or socially optimal. When advertisers compete on the downstream market, disclosure can lead to an increase or a decrease in product prices depending on the nature of the information.