Additive and Multiplicative Uncertainty Revisited: What Explains the Contrasting Biases?

above the certainty level while for additive uncertainty the price should be lower than the certainty level. This note gives an intuitive explanation for the result after first presenting a parsimonious review of the two models. We also discuss which, if either, of the two models is more realistic. Received December 14, 2001; revised version received July 16, 2002 Published online: April 30, 2003 We thank referees for helpful comments. Ciaran Driver would like to acknowledge the research facilities from ANU, Canberra for their help in writing this paper.     

Child malnutrition and school performance in China

Data on the height, weight, age and grade level of over 3,000 children in five quite different locations in China allow computation of how far behind in school each child is, relative to where he should be given his age, as well as of the nutritional status variables of height-for-age, weight-for-age and weight-for-height. This paper uses these data to estimate the impact of the nutritional variables on the available measure of school performance. Children tend to be about one grade further behind in rural areas than in the provincial capitals, and about one-half a grade further behind in the provincial capitals than in Beijing. Even after controlling for location, however, lower nutritional status (particularly height-for-age) was found to affect school performance adversely; a one standard deviation reduction in height-for-age, for example, would result in a child's being about one-third of a year further behind. Though results from a geographically limited sample should be generalized only with substantial caution, and alternative interpretations of the data are possible, it does appear likely that malnutrition in rural China remained sufficiently prevalent in 1979 to retard the school advancement of large numbers of children.     

iTV: A major opportunity for financial services,or not?

Interactive television has arrived, thanks to substantial technology investments that have been made by Sky and others. It is growing in importance as innovative interactive applications are developed for broadcast programmes (eg the BBCi service and Big Brother), and for advertising — and will develop further when broadband deployment gets to critical mass. Readers should not expect a television-variant of the world wide web, however. This was tried during 2000–2002 in the form of web look-alike, interactive ‘walled garden’ sites, and failed to attract critical mass footfall. The model has evolved and now revolves around interactive content synchronised with broadcast, which offers financial services companies an interesting new way to increase awareness and to differentiate the service presentation. Furthermore, over the next ten years, broadband is expected to usher in a new era of personalised television — in which specialised broadcasts (such as personal pensions advice programmes) can be made available on demand. The observations in this paper are mainly drawn from the UK, where digital television penetration is high; the lessons can be applied more broadly, however, and are relevant to any organisation thinking of promoting its service through entertainment channels.     

Global economy gathering strength

Encouraged by a highly expansionary economic policy, the global economy is enjoying a rapid upturn. Utilisation of capacity is high in many sectors, particularly in the growth centres of the USA and East Asia, where China leads the field. With inflationary risks on the increase, most countries are now shifting the focus of economic policy. Fiscal policy in particular can be expected to provide little in the way of further stimulus. In addition, there has been a turnaround in interest rates in many countries. Yet how quickly can the monetary reins be tightened without jeopardising growth or endangering price stability?     

New ways of achieving debt sustainability beyond the enhanced HIPC Initiative

In 1996 the Heavily Indebted Poor Countries (HIPC) Initiative was launched by the Bretton Woods institutions to reduce the external debt burden of low-income countries (LICs) to sustainable levels in a reasonably short period of time because debt constitutes an obstacle to sustainable economic growth and poverty reduction. In some HIPCs, however, debt sustainability has been in danger despite debt relief under the HIPC Initiative. Debt relief is a necessary but not a sufficient condition for development. It can do no more than play a catalytic role. The question, then, is how to achieve debt sustainability beyond the HIPC Initiative.     

Perceptions of the Ethicality of Consumer Insurance Claim Fraud

It was proposed that ethical evaluation of insurance claim padding behavior would be affected by characteristics of the policyholder, insurance agent, and company. These three factors were manipulated in written scenarios and the premise was tested in a factorial experimental design. No significant support was found for an effect of any of the three factors on ethical perceptions of claim padding. However, females found claims padding to be significantly less ethical than males. Given a claim scenario where the actual loss was $500 and the claimed amount was $3000, subjects awarded an average of $986.91 on the claim. Many respondents were willing to compensate victims for intangible losses as well as tangible losses.