Impacts of alternative degrees of freedom corrections in two and three stage least squares

There is a lack of uniformity concerning the appropriate degrees of freedom to use in estimating simultaneous equations. This issue is examined through a Monte Carlo study comparing estimates and inferences obtained using alternative choices of degrees of freedom in two and three stage least squares. While 2SLS estimates do not depend upon this choice, 3SLS estimates do. However, in the study the choice had little impact on 3SLS estimates. But the results strongly suggest that approximate tests conventionally used are much more accurate for both methods if estimated variances account for lost degrees of freedom.     

A Critical Investigation of the Use and Effectiveness of Interpretive Services

With increasing concern for the environment, there has been a strong interest in ecotourism in Hong Kong, culminating in the opening of the Hong Kong Wetland Park (HKWP) by the local government in 2005. Since the HKWP uses various on-site interpretive services to help to convey education and conservation messages on environmental issues, through the use of a recent survey this paper aims to examine and analyze their use and effectiveness in achieving the intended purpose. The questionnaire was completed by 206 visitors and reveals that experiential facilities, interpretive signs and exhibition materials are the three most frequently used services. Although guided interpretive tours have received the highest satisfaction rating and are considered the most effective means of conveying educational and conservation messages, the survey found that this service is still unknown to many visitors and more public exposure is recommended. Interestingly, in terms of the goal of the wetland park's ability to convey an educational message to its patrons, the survey has also found a significant difference in success rate between visitors with a desire for knowledge and visitors merely enjoying a leisurely activity.     

Eliminating the "I hate you" in the supplier-purchasing relationship

Throughout time there has always been a supplier of some service or goods, and there has always been a purchaser of that service or goods. The one thing that has remained constant throughout that time is that they have an agreement not to like each other. This article will approach the subject in the "today" sense using current practical approaches that are used in all industries and will not deal with the relationships of the future. To cover this complex arena, the article will deal with four areas: (1) where we are now, (2) supplier-based concentration, (3) single sourcing, and (4) transportation techniques.     

Money,prices and causality: monetarist versus structuralist explanations using pooled country evidence

The direction of causality between changes in money supply and aggregate prices has long been a matter of controversy between structuralists and monetarists. This paper addresses deficiencies in this literature in three ways. First, a large sample of countries with alternate measures of money and price variables is used to evaluate the evidence on money, inflation and causality. Second, combined data are tested for causality, with the combinations based on variables suggested by the literature - level of per capita income, magnitude of inflation, degree of financial market development, and independence of the central bank. Finally, because the choice of lag length is often arbitrary, results are generated with varying lags and consistency across different lag periods looked for. Two presentation methods are developed - categorical and graphical. Evidence of structural inflation, was found only in Chile and Sri Lanka. Evidence of money supply exogeneity on the other hand was found to be strongest in Kuwait, Paraguay and the USA. Most countries exhibited mixed evidence of money supply endogeneity, with bidirectional causation between money supply and aggregate prices a common result.     

Contracts between a Firm and Its Constituents during Bankruptcy Crises

Thorstein Veblen highlighted a number of human instincts, one of which was the “parental bent.” In contrast to the other “positive” instincts, the parental bent is specifically other-regarding in that Veblen described it in terms of utilizing knowledge for the betterment of society. Veblen’s “parental bent” stresses the social embeddedness of humanity and the human instinct to care. Our ability to care is partially predicated on our social roles and the values embedded within those roles. Critically, this is influenced by the configuration of institutions within a society. Care is grossly under-valued. By drawing upon recent contributions to care in the context of an increased financialization of the economy and society, we seek to expand upon Veblen’s insight, and to argue that the most significant deficit confronting our capitalist society is not of the fiscal variety, but resides in care.     

Conflict handling, trust and commitment in outsourcing relationship: A Chinese and Indian study

This paper presents a theoretical and empirical model that identifies conflict handling typologies which affect trust and commitment in B2B outsourcing relationship. Three typologies of conflict handling namely integrating, accommodating and compromising were examined for their effects on trust and commitment of Chinese and Indian human resource (HR) outsourcing service providers. The paper also considered the moderating effect of culture in the relationship. Data was collected from Chinese and Indian firms providing HR outsourcing services and analyzed using factor and hierarchical multiple regression analyses. We found both similarities and dissimilarities in the outcomes of the study. Specifically, conflict handling styles are significantly associated with trust and commitment. Trust mediates in the association of conflict handling styles with commitment. The impact of compromising conflict handling on trust and commitment is moderated by culture — significantly higher for the Chinese service providers compared to the Indians. Culture has also a direct impact on commitment but not on trust. Theoretical, cultural and managerial implications of the findings are presented.     

The efficiency of voluntary incentive policies for preventing biodiversity loss

Habitat loss is a primary cause of loss of biodiversity but conserving habitat for species presents challenges. Land parcels differ in their ability to produce returns for landowners and landowners may have private information about the value of the land to them. Land parcels also differ in the type and quality of habitat and the spatial pattern of land use across multiple landowners is important for determining the conservation value of parcels. This paper analyzes the relative efficiency of simple voluntary incentive-based policies in achieving biodiversity conservation objectives. This topic is important not just for biodiversity conservation but for any effort to provide a public good requiring coordination across multiple decision-makers who have some degree of private information. We develop a method that integrates spatially explicit data, an econometric model of private land-use decisions, landscape simulations, a biological model of biodiversity as a function of landscape pattern, and an algorithm that estimates the set of efficient solutions. These methods allow us to simulate landowner responses to policies, measure the consequences of these decisions for biodiversity conservation, and compare these outcomes to efficient outcomes to show the relative efficiency of various policy approaches. We find substantial differences in biodiversity conservation scores generated by simple voluntary incentive-based policies and efficient solutions. The performance of incentive-based policies is particularly poor at low levels of the conservation budget where spatial fragmentation of conserved parcels is a large concern. Performance can be improved by encouraging agglomeration of conserved habitat and by incorporating basic biological information, such as that on rare habitats, into the selection criteria.     

Behavior and cognition of economic actors in evolutionary economics

An evolutionary perspective on the nature of economic activity requires a theory of human behavior and cognition that highlights human creativity and innovativeness, while at the same time recognizing that in many arenas of economic life change is slow and more routine aspects of behavior obtain. It is proposed that Herbert Simon’s conception of human behavior as largely “bounded rational” is capable of suiting both aspects. However, to be able to encompass the enormous advances humans have achieved over the years in their ability to meet a variety of wants, a theory of behavior and cognition suitable for evolutionary economics needs to recognize the evolving cultural context of economic behavior and cognition.     

Treatment patterns and predictors of costs among patients with migraine: evidence from the United States medical expenditure panel survey

Abstract

Aim: Within a treated migraine population, to evaluate if the sub-group meeting criteria for high disease-specific total costs is significantly different to the sub-group with medium and/or low-costs, and to identify the associated risk factors.

Methods: Data from the Household Component of Medical Expenditure Panel Survey (MEPS-HC, 2008–2012), a nationally representative survey of non-institutionalized civilians in the US, were analyzed. Key inclusion criteria were migraine diagnosis (ICD-9 code: 346.XX) and prescribed treatment for migraine. Patients were categorized into high (>top 10th percentile), low (<bottom 10th percentile), and medium (between high and low) cost sub-groups per migraine-specific total costs. Logistic regression models were applied to identify predictors of high vs medium and medium vs low-costs. Preventive eligibility, defined as (i) past/current use of migraine preventives or (ii) overuse of acute medications, was compared to non-preventive eligibility.

Results: Within the treated migraine cohort (n?=?1,735), the mean age was 39?years, 80% were female, and the majority were in the medium-cost sub-group (n?=?1,360) (low-cost n?=?190, high-cost n?=?195). Significant predictors of high vs medium-costs were low SF-12 Physical Composite Scores (OR?=?0.95; 95% CI?=?0.92–0.97), low SF-6D health utility index scores (OR?=?0.019; 95% CI?=?0.002–0.193), preventive eligibility-i (OR?=?0.019; 95% CI?=?0.002–0.193), and preventive-eligibility-ii (OR?=?3.10; 95% CI?=?1.62–5.91). Statistically significant (p?<?0.05) predictors of medium vs low-costs included anxiety, Fleishman score, preventive-eligible-i, and preventive-eligible-ii.

Conclusions: Among patients treated for migraine, distinct characteristics, including patient-functioning measures and comorbidities, are predictive of high vs medium-costs, and medium vs low-costs. Preventive eligibility is a predictor of being in the higher cost sub-groups; however, preventive treatments that improve functioning and reduce acute medication use have the potential to reduce migraine-specific costs.

Limitations: The results are limited to a population that is diagnosed and treated for migraine. Over-the-counter medication use, and migraine headache frequency and severity were not captured.