Economic Analysis for the UK National Ecosystem Assessment: Synthesis and Scenario Valuation of Changes in Ecosystem Services

We combine natural science modelling and valuation techniques to present economic analyses of a variety of land use change scenarios generated for the UK National Ecosystem Assessment. Specifically, the agricultural, greenhouse gas, recreational and urban greenspace impacts of the envisioned land use changes are valued. Particular attention is given to the incorporation of spatial variation in the natural environment and to addressing issues such as biodiversity impacts where reliable values are not available. Results show that the incorporation of ecosystem services and their values within analyses can substantially change decisions.     

A Note on Student Academic Performance

ABSTRACT This study compares the educational performance of both highly rural and highly urban area students to students from areas of moderate population density. The results suggest (1) that students from both highly rural and highly urban areas perform similarly, but less well, in terms of educational achievement than students from moderate areas, and (2) that empirical studies of student educational performance should include measures of both cognitive skills and educational market competition as explanatory variables. The policy implications of this research include our recommendation that policymakers consider students from highly urban areas to be subjects of concern similar to students from highly rural areas in attempts to affect expected student achievement. Implications also include our recommendation that policymakers recognize that competitive educational market systems that allow educational consumers greater choice in the acquisition of educational services are those systems within which student academic achievement is higher.     

Lead Paint,Toxic Torts,and the Housing Stock: A Case Study in Risk Assessment

Numerous policymakers have accepted claims in the public health literature that the United States is in the middle of a serious epidemic of childhood lead poisoning, due primarily to lead paint in the housing stock. This article analyzes some of the most influential lead paint epidemiological studies from an economics perspective and finds evidence that the claimed effects of lead on intelligence, school success, and other outcomes may be grossly exaggerated. In addition, the main cost-benefit analysis used by policymakers to advocate lead paint abatement of the entire U.S. housing stock contains serious mathematical errors and strikingly implausible economic assumptions. A corrected model shows that the proposed national abatement policy is likely to yield no net benefit.     

Cost-Reducing Investment, Competition, and Industry Dynamics

We demonstrate the possibility of shake-out of firms and emergence of interfirm heterogeneity along the (socially optimal) dynamic equilibrium path of a competitive industry with free entry and exit, even when there is no uncertainty and all firms are ex ante identical with perfect foresight. Atomistic firms with upward-sloping marginal cost curves undertake investment in firm-specific cost reduction. They earn negative net profits in early periods, compensated later by strictly positive net profits; no entry occurs after the initial time period. Some firms may exit before others even while other firms earn positive net profits.     

A cross-cultural study of the persuasive effect of fear appeal messages in cigarette advertising: China and Canada

This exploratory study investigated the moderating influence of culture on the persuasive power of fear appeal advertisements differing on type of fear. The conceptual framework for the study was based on Rogers' Protection Motivation model and incorporated type of fear, physical and social, as an independent variable and culture as a moderating variable. An experiment was conducted on a sample of 173 Anglo-Canadian and 180 Chinese subjects. The findings revealed that the physical threat ads had a much greater effect on the Anglo subjects than on the Chinese. Most importantly, these ads brought about an attitude change for the Anglos, but not for the Chinese. For the social fear ads, contrary to predictions, only the Anglos reacted to the ads. They tended to score higher than the Chinese on attitude towards smoking as well as on behavioural intentions.     

CAN INDONESIA DECENTRALISE SUCCESSFULLY? PLANS,PROBLEMS AND PROSPECTS

Indonesia is engaged in an unprecedented social and economic experiment. Responsibility for much government expenditure is being decentralised, largely to local (district) rather than to provincial governments. If this process is successful, the world's most centralised large country could become one of its most decentralised. This paper considers the issues arising as preparations for decentralisation are finalised, and as the socialisation of its plans and practices is considered by the central government, the People's Representative Council, the decentralised units of government, and the public. These issues were identified partly through interviews with local government officials. They include policy and administrative matters yet to be resolved, such as local budgeting, financial management and auditing practices, personnel decentralisation, local taxation, borrowing by local governments, and the match between revenues and expenditures. A major theme is the importance of a continuing national and local discussion on the goals and processes of decentralisation.     

Influence of strategies and heuristics on farmers' response to change under uncertainty

Hierarchical Decision Models of woolproducers' decisions provide unique insights into the impact of major price changes. Producers' lagged response in some contexts appear to be due to the ambiguous decision environment they face, their strategic goals and responses to that environment apart from lags caused by factors such as attitude to risk, expectations adjustment, adjustment costs and learning costs. Much of the response to major price changes comes from strategic decisions to change enterprises rather than marginal changes to existing enterprises. In ambiguous environments, methods may need to be found that incorporate simplifying behavioural rules and strategies.