The roles of energy markets and environmental regulation in reducing coal‐fired plant profits and electricity sector emissions

Between 2005 and 2015, US electricity sector emissions of nitrogen oxides and sulfur dioxide, which harm human health and the environment, declined by two thirds, and many coal‐fired power plants became unprofitable and retired. Intense public controversy has focused on these changes, but the literature has not identified their underlying causes. Using a new electricity sector model of the US eastern interconnection that accurately reproduces unit operation, emissions, and retirement, we find that electricity consumption and natural gas prices account for nearly all the coal plant profitability declines and resulting retirements. Environmental regulations had little effect on these outcomes.     

Millennials and the Gender Wage Gap in the U.S.: A Cross-Cohort Comparison of Young Workers Born in the 1960s and the 1980s

Using two cohorts of young workers born in the early 1960s and early 1980s, this paper analyzes the temporal change in the U.S. gender wage gap and its determinants, which persists for both explained and unexplained reasons. Results suggest that the gender wage gap closed four (seven) percentage points at the mean (median) between cohorts. It finds cross-cohort evidence that young females’ increasing returns to marriage and a changing occupational wage structure contributed to a narrowing of the gap. Nonetheless, the majority of this convergence remains unexplained due to relative improvements in unobservable institutional factors or heterogeneity for females. Compared to the previous generation, millennials likely entered a more progressive, female-friendly labor market. It is also possible that female millennials are more ambitious and competitive in their early years of work experience relative to females born in the 1960s.     

Quantifying the defensive medicine contribution to primary care costs

Background:

Defensive medicine represents one cause of economic losses in healthcare. Studies that measured its cost have produced conflicting results.

Objective:

To directly measure the proportion of primary care costs attributable to defensive medicine.

Research design and methods:

Six-week prospective study of primary care physicians from four outpatient practices. On 3 distinct days, participants were asked to rate each order placed the day before on the extent to which it represented defensive medicine, using a 5-point scale from 0 (not at all defensive) to 4 (entirely defensive).

Main outcome measures:

This study calculated the order defensiveness score for each order (the defensiveness/4) and the physician defensive score (the mean of all orders defensiveness scores). Each order was assigned a weighted cost by multiplying the total cost of that order (based on Medicare reimbursement rates) by the order defensiveness score. The proportion of total cost attributable to defensive medicine was calculated by dividing the weighted cost of defensive orders by the total cost of all orders.

Results:

Of 50 eligible physicians, 23 agreed to participate; 21 returned the surveys and rated 1234 individual orders on 347 patients. Physicians wrote an average of 3.6?±?1.0 orders/visit with an associated total cost of $72.60?±?18.5 per order. Across physicians, the median physician defensive score was 0.018 (IQR?=?[0.008, 0.049]) and the proportion of costs attributable to defensive medicine was 3.1% (IQR?=?[0.5%, 7.2%]). Physicians with defensive scores above vs below the median had a similar number of orders and total costs per visit. Physicians were more likely to place defensive orders if trained in community hospitals vs academic centers (OR?=?4.29; 95% CI?=?1.55–11.86; p?=?0.01).

Conclusions:

This study describes a new method to directly quantify the cost of defensive medicine. Defensive medicine appears to have minimal impact on primary care costs.     

Using an historical account book as a teaching tool

Historical account books from the 18th and 19th centuries are valuable historical documents reflecting the activities of individuals many years ago and shedding light on the way they lived. Such books can be used to teach accounting. From our experience, these books serve to motivate students to learn about the basic aspects of the accounting process. Students are curious about how a book of this nature was prepared, what specific purposes it served, and how it is similar to and different from modern account books. Using these books can also foster interdisciplinary instruction, i.e. accounting and history. Both subject areas relate to an account book. Attempting to explain and understand transactions requires some knowledge of the history of the period in which the book was prepared. In this study, specifics are given on the instructional approach we recommend. While a book of this kind can be used in different ways and degrees in a variety of accounting courses including introductory financial, intermediate, and advanced at the undergraduate and graduate levels, we focus in this case study on its use in introductory financial accounting.     

Firm profitability,regional unemployment and human capital in wage determination

This paper presents an analysis of wage formation in the Norwegian private sector using data for individual workers matched with firm level information and regional unemployment. A key issue is to test whether or not firm specific variables affect individual wages after controlling for individual specific factors and working conditions. The results imply positive effects of firm specific profitability and firm size. The elasticity of wages with respect to value added per worker and firm size is 5% and 3.3%, respectively. Empirical evidence of a downward sloping regional wage curve is also reported, while there is no support of the hypothesis of compensating wage differentials. Since data for three levels of aggregation are used, the OLS estimates of the standard errors are downward biased. Therefore, results using a random effects model are also reported, taking the multi-level structure of the data into account.     

Optimisation and the selection of conservation contracts*

This paper explores alternative techniques for the selection of conservation contracts under competitive tendering programs. Under these programs, purchasing decisions are often based on the benefits score and cost for proposed projects. The optimisation problem is to maximise the aggregate benefits without exceeding the budget. Because the budget rarely permits all projects to be funded, there is a binary choice problem, known in the operations research published work as a knapsack problem. The decision‐maker must choose which projects are funded and which are not. Under some circumstances, the knapsack problem can be unsolvable because computational complexity increases exponentially with the number of projects. This paper explores the use of several decision rules for solving the optimisation problem including the use of advanced meta‐heuristics. It is shown that commonly applied techniques for project selection may not be providing the optimal solution. Improved algorithms can increase the environmental programs benefits and staying within budget. The comparison of algorithms is based on real data from the Western Australian Conservation Auction.     

Communication of risk assessment information to risk managers

This article describes the results of a two-phase study of risk communication between risk assessors and risk managers (including policy makers). The first phase consisted of telephone interviews with 30 air quality risk managers from all levels (18 from local, state, and regional offices, and 12 from national offices). The second phase involved a focus group with 11 senior EPA risk managers representing a broad range of EPA national offices and programmes. The two-hour focus group elicited responses from the risk managers to specific examples of videotaped risk information created by agency risk assessors. The risk managers indicated their interests in hearing both qualitative and quantitative information about risk and emphasized the importance of discussing other information about the decision context. Similar responses to the videotaped risk information were elicited from a class of students at the Harvard School of Public Health. This exploratory work suggests that to better inform risk managers, risk assessors must also appreciate and present the broader context of the decision, and they must convey how uncertainties and weaknesses in the assessment may influence stakeholder perceptions of risk and the effectiveness of different risk management options. Further research on how to communicate risk information to risk managers is recommended.     

Optimal and Simple,Nearly Optimal Rules for Minimizing the Probability Of Financial Ruin in Retirement

Abstract

The increasing risk of poverty in retirement has been well documented; it is projected that current and future retirees’ living expenses will significantly exceed their savings and income. In this paper, we consider a retiree who does not have sufficient wealth and income to fund her future expenses, and we seek the asset allocation that minimizes the probability of financial ruin during her lifetime. Building on the work of Young (2004) and Milevsky, Moore, and Young (2006), under general mortality assumptions, we derive a variational inequality that governs the ruin probability and optimal asset allocation. We explore the qualitative properties of the ruin robability and optimal strategy, present a numerical method for their estimation, and examine their sensitivity to changes in model parameters for specific examples. We then present an easy-to-implement allocation rule and demonstrate via simulation that it yields nearly optimal ruin probability, even under discrete portfolio rebalancing.     

Not a ‘museum town’: discussions of authenticity in coastal Denmark

ABSTRACT

This article investigates community perceptions of authenticity in connection to the fishing and tourism sectors and the relationships therein. Inspired by fieldwork in three Danish coastal communities, the article attends to discussions on fishing, tourism, and change, in which residents referred to ‘museum’ or ‘museum town’ as shorthand for an undesirable transformation. The article answers: (1) what are the underlying concerns of becoming a ‘museum town?’ and (2) how is authenticity employed by community members in connection to desirable and undesirable outcomes of transition? The analysis probes the ‘museum town’ expression as a means to understand host communities’ relationship to the fishing and tourism sectors and their expressed interest toward authenticity. Empirical material from semistructured interviews and ethnographic field observations initiates the thematic analysis, which then continues with a theoretical reflection on authenticity. Coastal community members understood authenticity through demonstrations of realness, waterfront and community activity, and a desired independence for the fishing industry. Being authentic required a working fleet, which carried deeper implications for transformation and the complementarity of tourism, as opposed to its suitability as a substitute for the fishing industry. Calls for the fishing industry to remain independent highlight the importance for cross-sector dialogue for local development.