Evolution of Risk and Political Regimes

The risk of political predation impedes the achievement of economic prosperity. In this study, we analyze how the risk of predation evolves in different political regimes. Formally, we look at the interaction between a government and citizens in which, in each period, the government has an option to predate. Citizens prefer governments that are competent and non‐predatory and strive to replace ones that are not. Regimes differ in the degree to which citizens can succeed in doing so. In pure democracies, citizens can displace incumbent governments; in pure autocracies, they cannot; and in intermediate cases, they can do so in probability. After economic downturns, the posterior probability that the government is competent and benevolent declines. According to the model, in intermediate regimes, but not in others, governments can separate by type. One implication, then, is that these regimes are politically and economically more volatile, with higher levels of variation in assessments of political risk and in economic performance. Another is that in such regimes, political leadership can make an economic difference. Empirically, we test our argument by measuring the impact of economic downturns on the perceived risk of political expropriation in different regime types, using as instruments the incidence of natural disasters and unexpected terms of trade shocks.     

Global value chains and inward foreign direct investment in the 2000s

In this paper, we make use of recent data published by the World Input‐Output Database to: (i) provide evidence on trade in value added of the major Organization for Economic Co‐operation and Development (OECD) member countries and major emerging economies (designated by OE country group), namely by measuring the degree of participation in global value chains (GVCs) at the country and sectoral levels; and (ii) estimate whether the GVC participation of OE countries has positively influenced foreign direct investment (FDI) inward stocks in the 2000s. The pooled regression model estimated shows that the country′s degree of GVC participation has contributed positively for bilateral FDI inward stocks, after controlling for other possible FDI determinants.     

COMPARATIVE EFFICIENCY OF AGRICULTURAL COOPERATIVES AND CONVENTIONAL FIRMS IN A SAMPLE OF QUASI‐TWIN COMPANIES

The resilience of cooperatives and their positive contribution to employment in times of crisis is well established. However, their overall economic performance relative to conventional firms is still controversial, casting doubt on the ability of this alternative organizational form to govern the fundamental drivers of productivity. To shed new light on the issue, we study the comparative technical efficiency of agricultural cooperatives (ACs) and conventional firms (CFs), drawing on a unique data set comprising all wine‐producing companies in Sardinia (Italy) from 2004 to 2009. Due to the similarity of the habitats in which the firms operate and the careful measurement of several key inputs, the observed units are ‘twins’ in all non‐organizational respects, providing an ideal setting for comparison. Having generated efficiency scores through Data Envelopment Analysis (DEA), we regressed the scores on external covariates and ownership type using a pooled truncated maximum likelihood formulation. Our findings, which survive correction for spatial correlations, indicate that cooperatives are less technically efficient than their capitalist counterparts and struggle more to adapt to extreme weather fluctuations. Both results are particularly worrying in light of the main challenges facing the wine industry in the near future: liberalization of EU planting rights and climate change.     

Neutralization techniques as a moderating mechanism: Ethically questionable behavior in the Romanian consumer context

On the basis of an empirical investigation in the context of Romania, this paper identifies a moderating role of neutralization techniques within ethically questionable consumer behavior. The quantitative study is based on a synthesized model of theory of planned behavior incorporating the factor of perceived unfairness and neutralization techniques. Significantly, neutralization techniques are shown to have a negative, but definite impact on the action to behave unethically. This leads to their consideration as a process of thinking, rather than as static judgment. As such, neutralization techniques are conceptually distinctive to the other factors. The paper analyzes the results specific to the Romanian context, but noting implications for an understanding of the morality of markets with similar historical, political, and economic conditions. Overall, the findings offer a more nuanced reading of consumer behavior. The paper places moral flexibility in terms of a specific cultural context, but also reveals how neutralization techniques can moderate ethically questionable behaviors beyond matters of self‐interest, which, in turn, has implications for how companies can consider their responsibilities in relation to their customers.     

Checking quality of sensory data via an agreement-based approach

Quality & Quantity - Sensory evaluations are adopted in many fields for measuring and comparing sensory properties of products and improving their quality. The selection of panelists able to...     

Ultrafiltration versus diuretics for the treatment of fluid overload in patients with heart failure: a hospital cost analysis

Abstract

Background: Heart failure (HF) is a common, serious disease in the US and Europe. Patients with HF often require treatment for fluid overload, resulting in costly inpatient visits; however, limited evidence exists on the costs of alternative treatments. This study performed a cost-analysis of ultrafiltration (UF) vs diuretic therapy (DIUR-T) for patients with HF from the hospital perspective.

Methods: The model used clinical data from the literature and hospital data from the Healthcare Cost and Utilization Project to follow a decision-analytic framework reflecting treatment decisions, probabilistic outcomes, and associated costs for treating patients with HF and hypervolemia with veno-venous UF or intravenous DIUR-T. A 90-day timeframe was considered to account for hospital readmissions beyond 30?days. Sensitivity and scenario analyses were performed to gauge the robustness of the results.

Results: Although initial hospitalization costs were higher, fluid removal by UF reduced hospital readmission days, leading to cost savings of $3,975 (14.4%) at the 90-day follow-up (UF costs, $23,633; DIUR-T costs, $27,608).

Conclusions: UF is a viable alternative to DIUR-T when treating fluid overload in HF patients because it reduces hospital readmission rates and durations, which substantially lowers costs over a 90-day period compared to DIUR-T.     

On multidimensional poverty rankings of binary attributes

We address the problem of ranking distributions of attributes in terms of poverty, when the attributes are represented by binary variables. To accomplish this task, we identify a suitable notion of “multidimensional poverty line” and characterize axiomatically the Head-Count and the Attribute-Gap poverty rankings, which are the natural counterparts of the most widely used income poverty indices. Finally, we apply our methodology and compare our empirical results with those obtained with some other well-known poverty measures.     

Can individuals’ beliefs help us understand nonadherence to malaria test results? Evidence from rural Kenya

In malaria‐endemic countries about a quarter of test‐negative individuals take antimalarials (artemisinin‐based combination therapies [ACTs]). ACT overuse depletes scarce resources for subsidies and contributes to parasite resistance. As part of an experiment in Kenya that provided subsidies for rapid diagnostic test and/or for ACTs conditionally on being positive, we studied the association between beliefs on malaria status (prior and posterior the intervention) and decisions to get tested and to purchase ACTs. We find that prior beliefs do not explain the decision of getting tested (conditional on the price) and nonadherence to a negative test. However, test‐negative individuals who purchase ACTs report higher posterior beliefs than those who do not, consistent with a framework in which the formers revise beliefs upward, while the latters do not change or revise downward. We also do not find evidence that prior beliefs on ACT effectiveness and trust in test results play any major role in explaining testing or treatment behavior. Further research is needed to improve adherence to malaria‐negative test results.