A panel data analysis of productive efficiency in freestanding health clinics

By using a panel data on a number of freestanding health clinics in New York State over 1984–1987, we have estimated the production function for ambulatory care after controlling for unmeasured clinic-specific managerial efficiency. We found significant differences in management efficiency, which peaks around 50500 visits per year. The optimal staffing ratio between doctors, extenders and nurses was found to be around 1∶1/3∶1, in order for a clinic to be on the efficiency frontier.     

Profit-sharing in a unionized cournot duopoly

The main purpose of this paper is to analyze when it is optimal for firms in a unionized duopoly to introduce profit-sharing. It is shown that a firm only prefers a profit-sharing system if its own union does not have “too much” bargaining power, and if the union in the other firm does not have “too much” bargaining power. However, if a firm introduces profit-sharing, the employment increases, and the price in the goods market decreases. Hence, even if it is not in the own interest of a firm to introduce profit-sharing, it may be in the interest of the society.     

Information,endogenous uncertainty and risk aversion

The importance of incomplete information and risk aversion for the allocation of economic resources is shown to depend critically on whether uncertainty is exogenously imposed or endogenously related to the ability of the price system to aggregate and disseminate the information possessed by the agents in a decentralized market economy. The specific example analysed in this paper is a two-period exchange model with competitive markets and a homogeneous product.Comments and suggestions by anonymous referees, Jacques Drèze, Jan Rose Sørensen, and financial support from the Danish Social Science Research Council are gratefully acknowledged.     

State Spending: What to Cut, Where, and Why

The growth of government has abscured the erstwhile clarity of its tasks Geoffrey Wook, of City University Business School, considers cuts in state spending that would clarify the function of government, reduce its burden on the taxpayer, and re-establish its central and limited purpose.     

African Intellectuals and the Neglect of Economic Reality

Much analysis of African political economy ignores the long tradition of markets in Africa and misrepresents important aspects of her history. Professor George Ayittey. the Ghanaian economist currently working at the University of Bloomsburg in Pennsylvania, takes issue with a recent book and television series.     

Reliability criteria bolster product classification decisions: A reply to Jones

We empirically test the robustness of the Easingwood approach to classify early product life cycle forms for infrequently purchased major products. Our results indicate that the key classification parameters could be unstable to variations in the sample size used for estimation, thereby producing more than one classification for several products. We demonstrate that the problem of multiple classifications can be effectively addressed by using the more rigorous criteria of joint confidence regions (as opposed to point estimates) of classification parameters. The benefit of such rigorous classification is that it increases researcher confidence in Easingwood's classification system.