Suicide as an indicator of quality of life: evidence from dialysis patients

Quality of life has been measured in many different ways for patients with chronic medical conditions. What is unique about the approach used here is that it uses suicide rates as a relatively objective measure of quality of life within the population of dialysis patients. Using a Heckman selection model, we estimate the relative suicide rates across patients undergoing both hemodialysis and peritoneal dialysis. Our empirical results show that patients on hemodialysis have relatively lower suicide rates after controlling for other factors. Specifically, our results indicate that 141 fewer suicides will occur for every 1,000 patients shifted from peritoneal to hemodialysis. Prior estimates of the higher costs of the latter modality yield an estimated expenditure of $42,043 per suicide avoided.     

Capital investment and employment in the information sector

Estimation of the employment effects of changes in capital investment is a standard tool in public policy debates. Typically, such predictions are based on employment multipliers derived from Input–Output analysis. In this paper, we measure the employment effects of changes in capital investment in the U.S. information sector by econometrically estimating an “employment multiplier” from historical data. The estimated multiplier is 10 information sector jobs for each million dollars in expenditure, and perhaps 24 new jobs per million dollars invested across the entire economy. Employment multipliers derived from the Input–Output methodology average about 16 jobs per million, but the multiplier includes jobs outside the information sector. Including employment spillovers, our estimates suggest the multipliers from Input–Output models are plausible. We also note that information sector jobs have substantially higher median earnings than the private sector average, so the economic significance of changes in information sector employment are greater than might first appear. Our findings may be useful in debates over changes in industry regulation that could affect investment.     

The Effect of Lead Paint Abatement Laws on Rental Property Values

Lead paint is a source of childhood lead poisoning, a vicious disease with high costs to both the victims and society. Treatment of the disease requires placing the victim in a lead-free environment. Laws have been enacted by many localities, which would require removal of lead from residential property. However, property owners have resisted the enforcement of these laws with threats of abandonment. Theory suggests that abandonment will occur only if the value of the rental property after removal of the paint is less than the cost of removal. This paper shows that these costs have already been discounted into property values. Data from Baltimore, Maryland indicates that the market has placed a value of approximately $15,250 per structure or $3,813 per rental unit on expected abatement costs. This value in most cases is less than the value of the rental property. Thus abandonment should occur infrequently.     

Commitment: A mathematical model

The concept of commitment has received ever-increasing attention from social scientists during the past fifteen years. Its usage occurs in several seemingly disjoint problem areas, but it is typically introduced when available explanations fail to describe the tendency for individuals to persist on a given course of action, once started, without obvious motive for doing so. Until recently its theoretical status has been as a primitive term, often appearing in ad hoc explanations, and accepted without question. In sociology, the first major query into the nature of commitment was Howard Becker's “Notes on the Concept of Commitment” (1960), a particularly influential article in stimulating research on commitment. However, most subsequent empirical work has dealt with the correlates and effects of commitment rather than with its genesis. Regrettably, what was once a problem in ad hoc theorizing has come to be matched by ad hoc operationalization of the concept. The present paper is a response to a perceived need for a formal model of commitment whose features might make the concept amenable to uniform theoretical and empirical usage. The purpose of this paper is to present a mathematical model of a general commitment mechanism which complements some extant ideas about the formal role of commitment in explaining certain types of behavior. The first part of the paper concentrates on extracting ideas from sociological and social psychological literature which provide the foundation for the intuitions to be formalized later. The second part presents a mathematical model of commitment. The third part discusses commitment in the context of a turnover model, and in concluding suggests some possible revisions and extensions of the model.     

The flow through of cost changes in competitive telecommunications: Theory and evidence

Flow through refers to the effect of a change in incremental production costs on the prices of goods or services, and is a topic of great interest to regulators and others. This article provides a framework for both analyzing flow through, and for evaluating whether or not flow through, properly defined, occurs in the long distance telecommunications industry. We focus on the effects of changes in switched access charges on domestic long distance prices for the largest U.S. long distance carriers in the late 1990s. Utilizing a double bootstrap technique uniquely suited to this problem, we find flow through occurred over the sample period. The technique illustrated here may find useful applications in other regulated sectors.First version received: March 2003 / Final version received: January 2004The authors are grateful to the editor and two anonymous referees for helpful comments and suggestions. All remaining errors are the responsibility of the authors.     

Title Assurance and Settlement Charges

The assurance that a seller of real estate has the right to transfer property free and clear of any encumbrances is important to potential purchasers and lenders. In the vast majority of cases in which real property is transferred, title insurance is used for this purpose. Consumer ignorance, coupled with a price structure based on the sales price of the property being insured, has led to an industry in which it is theoretically possible for the total charges by the primary supplier of the services to be indefinitely above a competitive level.