School Performance in Australia: Is There a Role for Quasi‐Markets?

Recent changes to the organisation of Australia's education system have raised the possibility of implementing wide‐ranging market reforms. In this article we discuss the scope for introducing reforms similar to the United Kingdom's ‘quasi‐market’ model. We discuss the role of school league tables in providing signals and incentives in a quasi‐market. Specifically, we compare a range of unadjusted and model‐based league tables of primary school performance in Queensland's public education system. These comparisons indicate that model‐based tables which account for socio‐economic status and student intake quality vary significantly from the unadjusted tables.     

Cost-effectiveness of telaprevir in combination with pegylated interferon alpha and ribavirin in previously untreated chronic hepatitis C genotype 1 patients

Background:

Telaprevir (T, TVR) is a direct-acting antiviral (DAA) used for the treatment of genotype 1 chronic hepatitis C virus (HCV) infection. The sustained virological response (SVR) rates, i.e., undetectable HCV RNA levels 24 weeks after the end of treatment, is what differentiate treatments. This analysis evaluated the cost-effectiveness of TVR combined with pegylated interferon (Peg-IFN) alfa-2a plus ribavirin (RBV), with Peg-IFN and RBV (PR) alone or with boceprevir (B, BOC) plus Peg-IFN alfa-2b and RBV, in naïve patients.

Methods:

A Markov cohort model of chronic HCV disease progression reflected the pathway of naïve patients initiating anti-HCV therapy. SVR rates were derived from a mixed-treatment comparison including results from Phase II and III trials of TVR and BOC, and trials comparing both PR regimens. SVR has significant impact on survival, quality-of-life, and costs. Incremental cost per life year (LY) gained and quality-adjusted-life-year (QALY) gained were computed at lifetime, adopting the (National Health Service) NHS perspective. Cost and health outcomes were discounted at 3.5%. Uncertainty was assessed using deterministic and probabilistic sensitivity analyses. Sub-group analyses were also performed by interleukin (IL)-28B genotype and fibrosis stage.

Results:

Higher costs and improved outcomes were associated with T/PR relative to PR alone, resulting in an ICER of £12,733 per QALY gained. T/PR retained a significant SVR advantage over PR alone and was cost-effective regardless of IL-28B genotype and fibrosis stages. T/PR regimen ‘dominated’ B/PR, generating 0.2 additional QALYs and reducing lifetime cost by £2758. Sensitivity analyses consistently resulted in ICERs less than £30,000/QALY for the T/PR regimen over PR alone.

Limitations:

No head-to-head trial provides direct evidence of better efficacy of T/PR vs B/PR.

Conclusion:

The introduction of TVR-based therapy for genotype 1 HCV patients is cost-effective for naïve patients at the £30,000 willingness-to-pay threshold, regardless of IL-28B genotype or fibrosis stage.     

MEASUREMENT AND DETERMINANTS OF EFFICIENCY AND PRODUCTIVITY IN THE FURTHER EDUCATION SECTOR IN ENGLAND

This study uses data for nearly 200 further education providers in England to investigate the level of efficiency and change in productivity over the period 1999–2003. Using data envelopment analysis we find that the mean provider efficiency varies between 83 and 90 percent over the period. Productivity change over the period was around 12 percent, and this comprised 8 percent technology change and 4 percent technical efficiency change. A multivariate analysis is therefore performed, which shows that, in general, student-related variables such as gender, ethnic and age mix are more important than staff-related variables in determining efficiency levels. The local unemployment rate also has an effect on provider efficiency. The policy implications of the results are that further education providers should implement strategies to improve the completion and achievement rates of white males, and should also offer increased administrative support to teachers.     

A CONTINGENT VALUATION STUDY OF UNCERTAIN ENVIRONMENTAL GAINS

Acid deposition in a present and future cause of biodiversity losses in vulnerable upland areas of Scotland important for nature conservation. However, the exact nature of damages under the status quo, and both the timing and extent of recovery of upland ecosystems if deposition is reduced, are subject to uncertainty. this uncertainty complicates damages cost estimation. In this paper, we have explored the use of CVM to measure the willingness to pay (WTP) of the Scottish population for uncertain recovery/damage scenarios from reduced acid rain deposition. An optimally-designed referendum format was used utilising the distribution of open-ended bids from a pilot study to determine bid amounts and sampling size for each bid amount. Eight explanatory variables, including future damage level were selected in a non-linear step-wise regression analysis. Average household WTP for abatement of acid rain was £247 and £351 per year when faced with low and high future damage levels respectively. Recovery level and recovery time did not significantly influence WTP. When faced with risky outcomes regarding future damage and recovery level, respondent were found to be risk averse to both environmental gains and losses.     

Britain,EMU and the European economy

In January 1999, 11 member countries of the European Union ‘irrevocably’ locked the foreign exchange values of their currencies to the euro, and they committed themselves to abandon their currencies in favour of the euro in 2002. As a result, these countries ceased to operate independent monetary policies. Monetary policy for the whole euro‐zone became the responsibility of the European Central Bank (ECB), whose primary objective is to maintain a low and stable rate of price inflation for the euro currency. The rules governing Economic and Monetary Union (EMU) were laid down in the treaty of Maastricht in 1992. As conditions for entry to EMU, the treaty specified ‘convergence criteria’ which consisted of upper limits for several macroeconomic aggregates including, notably, a 3 per cent maximum for the ratio of the public sector deficit to GDP and 60 per cent for the ratio of public debt to GDP.1 In February 1998 the 11 applicant countries submitted statistical analyses relating to their satisfaction of these conditions. Despite doubts as to whether some of them had strictly met the conditions, the European Commission deemed them all eligible, and the euro was launched.2 The British government, though more clearly eligible than most other EU countries on the basis of the convergence criteria, decided to defer its decision on entry. In this paper we consider the arguments for and against Economic and Monetary Union, and in particular whether it would be in Britain’s interest to join. We begin with a brief review of the state of the European economy and an analysis of the first year performance of the new Euro currency. 1 Upper limits were also set on the rate of inflation, at 1.5 percentage points above the average inflation rate of the three countries whose inflation was the lowest, and on long term interest rates, at 2 percentage points above the average of the rates prevailing in the three low inflation countries. An additional condition applied to exchange rate stability relative to the EU average for the two years prior to entry.
1 Notable cases were Belgium and Italy with debt to GDP ratios of 122.2 per cent and 121.6 per cent, respectively. Presumably, these countries were allowed membership under Article 104c(2) of the treaty which allows the debt to GDP ratio to be exceeded if ‘. . . the ratio is sufficiently diminishing and approaching 60 per cent at a satisfactory pace’. The reader is left to judge whether Belgium and Italy fell within the ‘spirit’ of this article.
     

Reputation and Corporate Social Responsibility Aberrations,Trends, and Hypocrisy: Reactions to Firm Choices in the Stock Option Backdating Scandal

Drawing on strategic corporate social responsibility (CSR) and reputation theory, this paper examines the market reaction to firm disclosures of involvement in the US stock option backdating scandal. We examine how a firm's prior signals regarding ethical behaviour and values, as demonstrated through CSR initiatives, may both ameliorate and exacerbate market reactions. CSR initiatives may buffer a firm against general wrong‐doing but expose it to greater scrutiny and sanction for related wrong‐doing. Our results show that firms with enhanced overall reputations for CSR are partially buffered from scandal revelations. However, we find that when firms possess an enhanced reputation for CSR associated with corporate governance, violations pertaining specifically to governance are viewed as hypocritical and more harshly sanctioned. We also find lower and negative market reactions for firms that delay but self‐disclose their involvement in the scandal. The study extends the emergent, related literatures on strategic CSR and reputation management, and documents dynamics in the relationship between corporate social and financial performance.     

Tracking Progress Towards Statistical Capacity Building Efforts: The African Statistical Development Index

This paper presents the development of the African Statistical Development Index, a composite index that aims at supporting the monitoring and evaluation of the implementation of the Reference Regional Strategic Framework for Statistical Capacity Building in Africa. It also helps to identify, for each African country, weaknesses and strengths of the National Statistical Systems so that support interventions can be developed. The paper first gives the rationale behind the development of the index as well as the context. It then elaborates on the methodology used to develop the index, including the selection of components and variables, the scaling of the variables, the weighting and aggregation schemes, and the validation process. The methodology is applied to a sample of African countries. Finally, the paper compares the proposed index to existing statistical capacity building indicators and highlights the related limitations.