Risk–risk versus standard gamble procedures for measuring health state utilities

Contingent valuation (CV) has been widely used to measure the potential benefits derived from different policy decisions. However, doubt now exists about the validity of the CV method and alternative approaches to benefit valuation have been proposed. The paper reports on the results of a study which was designed to test the viability of two of the most prominent of the alternatives: the risk–risk (RR) and standard gamble (SG) approaches. If individual preferences are consistent with the axioms of von Neumann–Morgenstern expected utility theory (EUT) then the two methods should generate the same interval scales for any given set of health states. However, the results show that SG utilities are substantially higher than RR ones, thus casting doubt on these axioms. The paper discusses alternatives to EUT which might better expalin the discrepancies found. It also considers whether the results might be explained in terms of status-quo bias and/or by the relative difficulty of RR questions. The results presented may have important implications for other areas of applied research in which there exists uncertainty about outcomes.     

EQUITY-SENSITIVE INDICATORS OF LIVING STANDARDS WITH AN APPLICATION TO NORTHERN IRELAND

The level of a region's achievement with respect to a particular outcome is usually measured by the mean value of that outcome. This, however, ignores the fact that the distribution of that outcome, between population or geographical subgroups in that region, may be unequal: in order to reflect this inequality, ‘equity‐sensitive’ indicators make a downward adjustment to the mean value of the outcome. This paper extends the notion of ‘equity‐sensitive’ indicators which take cognisance of inter‐group inequality, to ‘equity‐sensitive’ indicators which paid heed to intra‐group inequality. It constructs – using data from a Northern Ireland survey into poverty and social exclusion conducted in 2002/2003 –‘equity‐sensitive indicators’ of living standards in Northern Ireland. These take account of both the average level of the standard of living and also inequality in these levels between groups, and between persons in these groups.     

An Analysis of the Marginal Products of the One- and Two-Semester Introductory Economics Courses

The authors examine whether the administrative location of an economics department in a business versus liberal arts school alters the character of the economics program provided to undergraduate majors. To test this hypothesis, they constructed a curricular character index (CCI) based on a detailed accounting of assorted dimensions of an economics major. The CCI served as the dependent variable in a regression model that controlled for other institutional attributes that could influence curricular character. The sample of 148 primarily undergraduate institutions was selected to impose some semblance of a ceteris paribus environment. Contrary to earlier findings, the empirical results strongly indicate that the administrative location of an economics department in business versus liberal arts schools significantly changes the character of the program offered to majors.