Accident Compensation Reform

The aim of the article is to provide a survey of the major issues involved in the reform of accident Compensation schemes. The article outlines the economic and social pressures for reform of existing accident compensation schemes, discusses the major reform issues and raises the major challenges facing the reform process. The article focuses on the experience of the Victorian Government in developing and implementing its reform of workers compensation (Workcare) and on its proposed reform of the existing compulsory third party motor accidents scheme to illustrate the key issues.     

Coping with sales call anxiety: The role of sale perseverance and task concentration strategies

The authors study how salespeople cope with social anxiety during customer contacts and find that two tactics, sale perseverance and task concentration, ultimately reduce dysfunctional protective actions. Both coping tactics, however, are differentially moderated by strength of felt physiological sensations and strength of negative expectations and thoughts. Salespeople experiencing anxiety cognitions should distract themselves by concentrating on their task to free up their thinking in relation to the task at hand. Engaging in behaviors to modify the situation by persevering on the sale, on the other hand, occupies action space and should be the coping strategy of choice for those salespeople confronting physiological sensations in relation to felt anxiety. Hypotheses are tested on a sample of 171 salespersons. Frank Belschak (f.d.belschak@uva.nl) is an assistant professor of marketing and organizational behavior in the Business School at the University of Amsterdam, the Netherlands. He received his PhD from the University of Cologne in Germany. His current research interests include personal selling, emotions, and emotion regulation in organizations and across cultures. Willem Verbeke (verbeke@few.eur.nl) is a chaired professor of sales and account management at Erasmus University in Rotterdam, the Netherlands. He received his PhD from the University of Pennsylvania. His area of research interests includes personal selling, sales management, emotions and emotion regulation, and knowledge management. Richard P. Bagozzi (bagozzi@umich.edu) is a professor of marketing in the Ross School of Business and a professor of social and administrative sciences in the College of Pharmacy at the University of Michigan. He received his PhD from Northwestern University. He conducts research on human emotions, the theory of action, goal setting and goal striving, and structural equation methods.     

Dodging the vote?

This study investigates the impact of ending the military draft on voter turnout in the U.S. The main study period runs from 1948 through 2006. After controlling for the unemployment rate, the degree of labor force unionization, the U.S.-Iraq War, the impact of voting in presidential elections, the female labor force participation rate, the percent of the adult population with a college degree, income, and a variable to reflect strong approval or disapproval of the U.S. President, compelling empirical evidence is found that ending the military draft in the U.S. acted to significantly reduce the aggregate voter participation rate.     

Costs and effectiveness of fingolimod versus alemtuzumab in the treatment of highly active relapsing-remitting multiple sclerosis in the UK: re-treatment,discount, and disutility

Objective: Patients with relapsing-remitting multiple sclerosis (RRMS) treated with disease modifying therapies (DMTs) who continue to experience disease activity may be considered for escalation therapies such as fingolimod, or may be considered for alemtuzumab. Previous economic modeling used Markov models; applying one alternative technique, discrete event simulation (DES) modeling, allows re-treatment and long-term adverse events (AEs) to be included in the analysis.

Methods: A DES was adapted to model relapse-triggered re-treatment with alemtuzumab and the effect of including ongoing quality-adjusted life year (QALY) decrements for AEs that extend beyond previous 1-year Markov cycles. As the price to the NHS of fingolimod in the UK is unknown, due to a confidential patient access scheme (PAS), a variety of possible discounts were tested. The interaction of re-treatment assumptions for alemtuzumab with the possible discounts for fingolimod was tested to determine which DMT resulted in lower lifetime costs. The lifetime QALY results were derived from modeled treatment effect and short- and long-term AEs.

Results: Most permutations of fingolimod PAS discount and alemtuzumab re-treatment rate resulted in fingolimod being less costly than alemtuzumab. As the percentage of patients who are re-treated with alemtuzumab due to experiencing a relapse approaches 100% of those who relapse whilst on treatment, the discount required for fingolimod to be less costly drops below 5%. Consideration of treatment effect alone found alemtuzumab generated 0.2 more QALYs/patient; the inclusion of AEs up to a duration of 1 year reduced this advantage to only 0.14 QALYs/patient. Modeling AEs with a lifetime QALY decrement found that both DMTs generated very similar QALYs with the difference only 0.04 QALYs/patient.

Conclusions: When the model captured alemtuzumab re-treatment and long-term AE decrements, it was found that fingolimod is cost-effective compared to alemtuzumab, assuming application of only a modest level of confidential PAS discount.     

Budget deficits and interest rates in Germany

This study uses the basic tools of cointegration to determine whether there exists a long-term relationship between budget deficits and nominal interest rates in Germany. Maximum eigenvalue, trace, and likelihood ratio tests all affirm that there does apparently exist a long-term relationship between the budget deficit and the nominal interest rate. Accordingly, regression studies and formal causality tests have a reasonable basis for investigating whether budget deficits lead to higher interest rates in Germany.     

Entry and Exchanges of Cost Information

The literature on exchanges of information has ignored firms' entry decisions. Yet, the Federal Trade Commission recently expressed concerns that exchanges of information in business-to-business electronic platforms would adversely impact entry and, thus, consumers. When entry decisions are endogenized in a competitive Cournot model with cost uncertainty, we find results that contrast sharply with current thinking on the welfare consequences of information sharing.     

Smuggling, non‐fundamental uncertainty, and parallel market exchange rate volatility

Abstract.  We explore a model where smuggling and a parallel currency market arise, owing to government restrictions that prevent agents from legally holding foreign exchange. Despite such restrictions, agents are able to diversify their savings, holding both domestic and parallel foreign cash, basing their portfolio allocation on current and prospective parallel exchange rates. We attribute movements in parallel rates to non‐fundamental uncertainty. The model generates equilibria with both positive and negative parallel premia and correlations between illegal trade and the premium. The model has the novel implication that currency speculation drives smuggling, affecting real activities in all sectors of the economy. JEL classification: F31     

Mitigating shortage and distribution costs in damaged water networks

Recent events have sparked renewed interest in disaster mitigation for public infrastructures. Presidential Decision Directive 63 identifies water distribution as being among the most vital and vulnerable of our large-scale infrastructures. Water distribution networks are vulnerable to threats such as chemical and biological contamination, cyber attacks on computer-based management systems, and physical destruction from acts of nature and intentional attack. This research develops methods for configuring the undamaged portion of the water network to mitigate the consequences of physical destruction. The approach is to find a hydraulically feasible residual network that can be pressurized to meet the demand of a subset of demand sectors. Demand sectors not pressurized then receive water through truck distribution from pressurized sectors. The objective is to minimize weighted water shortage and water truck distribution costs by identifying sectors to pressurize along with an assignment of unpressurized sectors to pressurized sectors for water delivery by truck. The paper develops an optimization model, describes a solution method, and presents computational results for three example networks.