Ready to run: price determinants of thoroughbreds from 2 year olds in training sales

This article utilizes data from the complete set of U.S. thoroughbred 2-year-old in-training sales held in 2013 and estimates the determinants of prices for 1806 two-year-old thoroughbreds. The results reveal that the time in which these prospective racehorses run a standardized distance is the most statistically significant determinant of market price. Other individual horse characteristics, pedigree quality variables and sale quality are also found to be price determinants. An additional result of interest is the significant premium buyers are willing to pay for horses by sires of unknown quality.     

Consumer involvement in health research: a UK scoping and survey

Consumer involvement or patient and public involvement (PPI) in health research is a UK policy imperative and a prerequisite for many funders. PPI in research is defined as research carried out with or being carried out by the public (or service users), rather than research on patients and public as subjects or participants. Despite the clear policy driver, there is relatively little empirical evidence on the extent, processes and impact of user involvement in research. This paper aims to add to the international evidence base on PPI in research by providing a key overview of current trends and impacts. In order to understand the current extent and variation of PPI in research, a scoping exercise and survey were carried out on selected UK studies. Six research topic areas (cystic fibrosis, diabetes, arthritis, dementia, intellectual and developmental disabilities, and public health) were selected to ensure a range of designs, study populations and histories of PPI in research. A total of 838 studies (non‐commercial studies and not older than 2 years) were contacted. The response rate for the scoping was 38% and the survey 28%. In the scoping, 51% of studies had some evidence of PPI and in the survey 79%. The most common PPI activity was steering committee membership and reviewing patient information leaflets. There appeared to be some blurred roles with patients participating as research subjects as well as carrying out patient involvement roles. A major finding was the limited amount of available information about PPI in publicly accessible research documents. We suggest that the invisibility of this type of involvement and the lack of routinely collected information about PPI results in a lack of shared understanding of what optimal PPI in a study should look like, with important implications for practice. Furthermore, without a framework to review PPI it is difficult to know if different approaches to PPI have a different impact on key outcomes of the research.     

Intertemporal substitution in consumption, labor supply elasticity and sunspot fluctuations in continuous-time models

The aim of this paper is to discuss the roles of the elasticity of intertemporal substitution in consumption and the elasticity of the labor supply on the local determinacy properties of the steady state in a two-sector economy with constant elasticity of substitution technologies and sector-specific externalities. Our main results provide necessary and sufficient conditions for local indeterminacy. First, we show that the consumption good sector needs to be capital intensive at the private level and labor intensive at the social level. Second, we prove that under this capital intensity configuration, the existence of sunspot fluctuations is obtained if and only if the elasticity of intertemporal substitution in consumption is large enough but the elasticity of the labor supply is low enough. In particular, we will show on the one hand that when the labor supply is infinitely elastic, the steady state is always saddle-point stable, and on the other hand that when the elasticity of intertemporal substitution in consumption is infinite, labor does not have any influence on the local stability properties of the equilibrium path.     

Coalition formation in international monetary policy games

This paper analyses coalition formation in monetary policy coordination games between n countries. We show that some but not all countries may join if the decision to be a member of the coalition is incentive-compatible for the individual country. Positive spillovers of the coalition formation process and the resulting free-rider problem limit the stable coalition size: since the coalition members are bound by the union’s discipline, an outsider can successfully export inflation without fearing that the insiders will try to do the same. These ‘gains from staying out’ arise even in the case of symmetric shocks.     

Ungleichheitsaversion in Prinzipal-Agenten-Beziehungen

Principal-agent theory traditionally presumes purely self-interested individuals. In recent literature, however, we have observed an increasing number of contributions, which abstain from this presumption and account for social preferences. One prominent approach in this context is inequality aversion. In this paper, we provide an introduction to inequality aversion and discuss applications and results compared to traditional principal-agent models.     

Concentration-price relations in regional fed cattle markets

Since 1977, the U.S. beef packing industry has been restructured at a pace unprecedented in large American industries. By 1987, four packers slaughtered over two-thirds of all steers and heifers. In the thirteen regional feedlot-packer markets studied here, the four leading packers slaughtered 85 percent of fed cattle, on average. The impact of packer concentration on fed cattle prices during 1971–86 was examined using several econometric models. The results generally support the hypothesis that packer concentration was negatively related to live cattle prices. Cattle prices were estimated to be about 3 percent less in the most concentrated region compared to the least concentrated region. There was evidence of a critical concentration of CR₄=60 in regional livestock markets.     

Developing new urban public transport systems: An irrational decision-making process

The decision-making process for planning new urban public transport systems in the UK is examined by studying 11 new and planned systems. The objectives of building the systems relate to transport and development issues. A number of key factors are taken into account during the decision-making process: forecast demand, image, deregulation of buses, technological innovation, private sector involvement and the funding mechanism. The requirement for proven technology and the forecast demand for the systems reduces the choice to one of light rail or bus. The effects of bus deregulation, funding and image, essentially reduce that choice to light rail or nothing. Cost should be kept low, which suggests a bus based system, but current legislation favours more expensive light rail systems. The conclusion is that although transport planners make rational decisions within the current political framework, the framework, and therefore some of the decisions, are not rational.     

Job Creation, Job Destruction, and the International Division of Labor

The authors incorporate equilibrium unemployment due to imperfect matching into a model of trade in intermediate inputs. Firms are assumed to be price‐takers and their size is given by technology. Firms enter the market as long as expected profits cover the search cost they incur initially; jobs are endogenously destroyed by random shocks that affect firms’ price–cost margins. Trade increases productivity in the final good and then demand for each intermediate input. Steady‐state unemployment is reduced after trade integration because the rate of job destruction is reduced, which in turn induces an indirect positive effect on job creation. A more volatile environment faced by firms does not necessarily increase unemployment. However, the rate of job destruction unambiguously rises, and rises more under free trade.     

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