Wage differences between Austrian men and women: <Emphasis Type="Italic">semper idem?</Emphasis>

In most OECD countries, the wage gap between men and women has narrowed during the past two decades. Developments of the last 20 years, e.g., increased labour market attachment of women or the introduction of equal pay laws, may have reduced the gender wage gap. We investigate the extent, persistence, and socio-economic determinants of the gender wage gap in Austria, for the years 1983 and 1997. Using wage decomposition techniques, we find that the average gender wage gap was almost as high in 1997 as it was in 1983. Not accounting for differences, the gender wage gap dropped from 25.5 to 23.3% of men’s wages. Taking observable differences between men and women into account, we estimate that the mean gender wage gap that cannot be explained, i.e., discrimination against women, dropped from 17 to 14% of men’s wages. A decomposition of the gender wage gap over time indicates that both returns to human capital and less discrimination were responsible for the narrowing of the gender wage gap.

Restricted Hodrick–Prescott filtering in a state-space framework

The current paper extends previous results on Hodrick–Prescott (HP) filtering and shows that it is possible to implement the judgement-augmented, or restricted, HP filter within the state-space framework. The implementation entails augmenting the vector of measurements and altering one of the system matrices of the state-space model for the HP filter. Restrictions can thereby be incorporated in the HP filter, making, e.g., estimation more accessible. An application to US GDP gap estimation illustrates how the restricted filter could be usefully applied in an empirical macroeconomic setting.     

Interethnic relations,informal trading networks,and social integration: imitation,habits, and social evolution

The ethnically homogeneous middleman groups (EHMGs), which are informal trading networks, are ubiquitous in less-developed economies where the legal infrastructure for contract enforcement is not well developed. This paper develops a formal model of social interaction among members of the EHMG as well as in more general situations in a multi-ethnic or multi-cultural society consisting of identifiable ethnic or linguistic groups. Behavioral patterns are transmitted between generations and altered via imitation in social contacts. The model demonstrates how different discriminatory behavioral patterns can evolve and persist over time. One result is that the trust between such groups can increase due to a higher frequency of inter-group contacts. In concluding the paper, we speculate about how the model can be expanded to include changes in legal structures, especially contract law. This could lead to an increase in the trust between the different groups.     

How to build a strategic network: A practitioner-oriented process model for the ICT sector

One critical success factor for the future will be the ability to build and develop strategic networks. This ability is especially vital in the dynamic information and communication technology (ICT) sector, where the development of competitive offerings often requires a coalition of platform and service providers. However, the academic literature has yet to propose a systematic managerial tool for the strategic network building process. Our distinctive contribution is the development of a practitioner-oriented process model for building a strategic network, which is linked to the resource-based view and the value creation system approach. Moreover, we suggest that instead of being a sequential stage-wise process, the construction of a strategic network can be divided into parallel, although not necessarily simultaneous, sub-processes based on the required value activities in the entire business concept. The resulting network-building model is used to provide managerial suggestions for the efficient construction of strategic business networks.     

Does the reliability of institutions affect public good contributions? Evidence from a laboratory experiment

Reliable institutions, i.e., institutions that live up to the norms that agents expect them to keep foster cooperative behavior. We experimentally confirm this hypothesis in a public goods game with a salient norm that cooperation was socially demanded and corruption ought not to occur. When nevertheless corruption attempts came up, groups that were told that ‘the system’ had fended off the attempts made considerably higher contributions to the public good than groups that learned that attempts only did not affect their payoffs or that were not exposed to corruption at all.     

Budget impact analysis of secukinumab versus adalimumab in the treatment of ankylosing spondylitis

Background: Biologic treatments have enhanced the treatment outcomes of patients with active ankylosing spondylitis (AS). Until recently, TNF-alpha-inhibitors have been the only biologics approved for the treatment of active AS. The objective of this study was to assess the potential financial impact of the first non-TNF-alpha biologic secukinumab (fully human IL-17A-inhibitor) vs adalimumab (TNF-alpha-inhibitor) in the treatment of AS in Finland.

Materials and methods: In this model-based budget impact analysis, patients were treated either with secukinumab (150?mg) or adalimumab (40?mg). The number of patients and market share of different biologics were based on national reimbursement registry data. Adalimumab was the most commonly used biologic treatment for AS, and in the base case analysis all adalimumab patients are assumed to switch to secukinumab. Response rates were based on a matching-adjusted indirect comparison between secukinumab and adalimumab. Patients not achieving response were switched to another biologic treatment.

Results: Treating AS patients with secukinumab instead of adalimumab leads to potential savings of 18.2 million euros within a 5-year time period. The total costs within the follow-up time were 59.5 million euros and 77.7 million euros with and without secukinumab, respectively. According to sensitivity analyses, a higher adoption rate of secukinumab corresponds to higher potential savings.

Conclusions: Secukinumab is a cost-saving treatment option compared with adalimumab in the treatment of AS in Finland. More patients could be treated with a biologic by allocating resources more efficiently.     

Public interest versus regulatory capture in the Swedish electricity market

This article tests the public interest and regulatory capture hypotheses, in the context of the Swedish electricity market, by studying the factors influencing the Swedish Energy Agency’s decision to replace decision-makers it employs to hear customer complaints against utilities. The study covers the period from the beginning of 1996, when a series of regulatory reforms were introduced to improve consumer protection, until the end of 2008. The study concludes that decision-makers who find in favor of customers have had a statistically lower probability of being removed, consistent with public interest theory. A transitory effect of favoring utilities can be observed for the period from 2 to 6 years following the reforms. In this period, government and public scrutiny of the regulator, which had been high in the immediate aftermath of the reforms, had waned and there were few precedents decided by the courts that the regulator was required to follow. This vacuum created an opportunity for the utilities to increase their influence over the regulator. Once the courts started establishing precedents in relatively large numbers, the supervisory role of the courts ensured that the actions of the regulator were scrutinized. This development has served a similar function to government and public scrutiny in the years immediately following the reforms in promoting the public interest.     

Dominated choices in a simple game with large stakes

This paper examines data from the Norwegian television game show Joker, where contestants make well-specified choices under risk. The game involves very large stakes, randomly drawn contestants, and ample opportunities for learning. Central models of risk choice, including expected utility theory, give a simple prediction of choice under weak conditions, as one decision is always first-order stochastically dominating. We document frequent, systematic and costly violations of dominance. Many contestants appear to have a systematic expectation bias that can be related to Tversky and Kahneman’s (Cogn. Psychol. 5(2):207–232, 1973) “availability heuristic”. In addition, contestants seem to make systematic calculation errors that are well captured by the so-called Fechner model.     

Timing of Public Information and Cost Reduction

Received July 31, 2000; revised version received July 18, 2001