Remittances,transaction costs,and informality

Recorded workers' remittances to developing countries reached $167 billion in 2005, bringing increasing attention to these flows as a potential tool for development. In this paper, we explore the determinants of remittances and their associated transaction costs. We find that recorded remittances depend positively on the stock of migrants and negatively on transfer costs and exchange rate restrictions. In turn, transfer costs are lower when financial systems are more developed and exchange rates less volatile. The negative impact of transactions costs on remittances suggests that migrants either refrain from sending money home or else remit through informal channels when costs are high. We provide evidence from household surveys supportive of a sizeable informal sector.     

FDI and the Capital Intensity of "Dirty" Sectors: A Missing Piece of the Pollution Haven Puzzle

In an increasingly integrated world, falling trade barriers mean that the role environmental regulations play in shaping a country's comparative advantage is greater than ever. This has lead to fears that “dirty” industries will relocate to developing regions where environmental regulations may be less stringent. A number of reasons have been offered to explain why, despite anecdotal evidence and the predictions of theoretical studies, little empirical verification for the existence of pollution havens has been found. Little attention, however, has been paid to the capital intensity of pollution intensive sectors. We investigate the relationship between US outward FDI and factor endowments across sectors to two developing countries. We highlight the role of capital and believe it partially explains why pollution havens are not more widespread. Our approach also highlights those countries that are likeliest to become pollution havens. A multivariate analysis reveals some evidence of pollution haven consistent behavior.     

A ‘Natural Experiment’ Approach to Contingent Valuation of Private and Public UV Health Risk Reduction Strategies in Low and High Risk Countries

We present the results of a natural experiment to test how variations in exogenous risk levels affect resultant willingness to pay (WTP) for risk reduction. The case study presented considers WTP for reductions in the skin cancer risks associated with exposure to solar UV radiation. A common design contingent valuation survey is conducted in four countries, across which variation in geographical latitude and genetic mix mean that exogenous risks differ substantially. Survey respondents were presented with both a private and public good route for affecting risk reduction. In both cases, results confirm that once adjustment had been made for expected relationships with other covariates (such as income and risk averting behaviour), valuation responses for both goods conformed to expectations with the ordering of values across countries reflecting the ordering of scientifically established health risks. This suggests that links between values and objective health risks may be observed within such situations and provides a justification for continuing research into more natural representations of risk and risk reductions in order to yield consistent and robust measures of associated values.     

Car-sharing organizations: The size of the market segment and revealed change in mobility behavior

Car-sharing organizations (CSO) have recently spread throughout central European cities and currently have 20000 members. They lower individual fixed costs of car availability change the incentive structure of private vehicle use by transforming nearly all costs into variable costs. A survey of all current Austrian CSO members is used to identify the characteristics significant of members. A procedure is proposed to quantify urban local market segment potentials and is applied to two residential areas. The net impact of CSOs depends on how the new incentive structure changes mobility behavior. A controlled experiment of voluntary new members was carried out to compare pre-membership and membership trip structure and modal split. Results indicate a substantial reduction of aggregate private vehicle mileage. While the share of trips by car is constant, changes in trip length are observed, with there being different changes for households which previously owned a car and those which did not. Combining behavior impact with market segment size results in the quantification of emission reduction and car ownership reduction (land use demand) due to car-sharing, which is a decentralized demand-side transport policy.     

The use of Zostavax in Spain: the economic case for vaccination of individuals aged 50 years and older

Background Population aging brings up a number of health issues, one of which is an increased incidence of herpes zoster (HZ) and its complication, post-herpetic neuralgia (PHN). Zostavax vaccine has recently become available to prevent HZ and PHN. This study evaluates the cost-effectiveness of vaccination against HZ in Spain considering a vaccination of the population aged 50 years and older and comparing this to the current situation where no vaccination is being administered.

Methods An existing, validated, and published economic model was adapted to Spain using relevant local input parameters and costs from 2013.

Results Vaccinating 30% of the Spanish population aged 50 years and older resulted in €16,577/QALY gained, €2025/HZ case avoided, and €5594/PHN case avoided under the third-party payer perspective. From a societal perspective, the ICERs increased by 6%, due to the higher price of the vaccine. The number needed to vaccinate to prevent one case was 20 for HZ, and 63 for PHN3. Sensitivity analyses showed that the model was most sensitive to the HZ and PHN epidemiological data, the health state utilities values, and vaccine price used.

Conclusion Considering an acceptable range of cost-effectiveness of €30,000–€50,000 per QALY gained, vaccination of the 50+ population in Spain against HZ with a new vaccine, Zostavax, is cost-effective and makes good use of the valuable healthcare budget.     

Alternative Indicators for the Risk of Non‐response Bias: A Simulation Study

The growth of non‐response rates for social science surveys has led to increased concern about the risk of non‐response bias. Unfortunately, the non‐response rate is a poor indicator of when non‐response bias is likely to occur. We consider in this paper a set of alternative indicators. A large‐scale simulation study is used to explore how each of these indicators performs in a variety of circumstances. Although, as expected, none of the indicators fully depict the impact of non‐response in survey estimates, we discuss how they can be used when creating a plausible account of the risks for non‐response bias for a survey. We also describe an interesting characteristic of the fraction of missing information that may be helpful in diagnosing not‐missing‐at‐random mechanisms in certain situations.     

Voluntary simplicity: an exploration of market interactions

Voluntary simplicity is often considered to be a sustainable lifestyle phenomenon buttressed by environment‐friendly consumption practices. Voluntary simplicity is shaped by the individual as well as the society, and marketplace interactions often impact voluntarily simplified approaches to consumption. Pertinent, therefore, is a consideration of how voluntary simplifiers negotiate the tensions between marketplace interactions and decisions (not) to consume, as the exploration of interactions between consumption and non‐consumption choices has relevant implications for the advancement of sustainable consumption. Specifically, we seek to answer the following question: how have voluntary simplifiers in a rural context negotiated the relationship between voluntary simplicity and market‐based (non‐) consumption? This paper reports on a study of 28 rural voluntary simplifiers to explore the intersections between voluntary simplicity and rural markets. Findings highlight the convoluted nature and the multiple manifestations of voluntary simplicity, while the rural context allows an exploration of such tensions in relation to individual voluntary simplicity, local economy, supermarkets, fair trade and consumer culture.