Price cap regulation and water quality

Journal of Regulatory Economics - A number of studies suggest that price cap regulation may reduce the quality of the regulated good. This paper analyzes the impact on drinking water quality of a...     

Transdisciplinarity in Corporate Sustainability: Mapping the Field

Sustainability challenges are complex. So are the challenges that business firms encounter in their corresponding quest for corporate sustainability. Given this complexity, there is a need for new approaches to corporate sustainability management research. We discuss transdisciplinarity as such a novel approach in three steps. After showing that specialization is the primary conventional response to increasing complexity, we first briefly compare how inter‐, multi‐ and transdisciplinarity reintegrate decentralized, specialized knowledge. The second step describes how the emerging sustainability science has recently advanced the transdisciplinary methodology. Based on the two dimensions of interdisciplinarity and academia–practice collaboration, we third generate a framework for mapping existing research approaches in terms of their transdisciplinary qualities. We use this framework to identify room for novel methodologies in sustainability management research. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.     

Trade Liberalization and the Degree of Competition in International Duopoly

This paper analyzes how a reduction in trade costs influences the possibility for firms to engage in international cartels, and hence how trade liberalization affects the degree of competition. We consider a particular intra‐industry trade model amended to allow for firms producing differentiated products. Our main finding is that trade liberalization may have an anti‐competitive effect. We find that there is no unique relation between a reduction in trade costs and the degree of competition. When products are differentiated, a lowering of trade costs is pro‐competitive if trade costs are initially high, but anti‐competitive if trade costs initially are low. Hence, trade policy is not necessarily a substitute for competition policy.     

Short‐run and long‐run dynamics of farm land allocation: panel data evidence from Denmark1

This study develops and estimates a dynamic multi‐output model of farmers’ land allocation decisions that allows for the gradual adjustment of allocations that can result from crop rotation practices and quasi‐fixed capital constraints. Estimation is based on micro‐panel data from Danish farmers that include acreage, output, and variable input utilization at the crop level. Results indicate that there are substantial differences between the short‐run and long‐run land allocation behaviour of Danish farmers and that there are substantial differences in the time lags associated with different crops. To our knowledge, this is the first dynamic micro‐model of land allocation estimated on data from the temperate climate zone. Since similar farming conditions are found in northern Europe and parts of the United States and Canada, this result may be of wider interest.     

Dumping and Injury Margins in Markets with Horizontal as well as Vertical Product Differentiation

This paper examines the GATT/WTO rules for anti-dumping measures in a duopoly model with both horizontal and vertical product differentiation. The GATT/WTO rules allow for anti-dumping measures if domestic producers, exposed to price discrimination, also demonstrate injury where price-undercutting is an important indicator of the latter. The paper shows that the procedure for calculating injury is flawed due to negligence of quality differences in the calculation of the margin of price-undercutting. This gives countries with high-quality producers an option to practice protectionism. This asymmetry between countries in ability to implement anti-dumping measures predominantly favors the developed countries which are specialized in producing high-quality products. The paper suggests an overall critical look at the lenient rules for implementing anti-dumping measures—especially the rules for injury determination—in order to restrict the use of such measures to a minimum and to move the world economy closer to free trade.     

Malthus to Solow

"A unified growth theory is developed that accounts for the roughly constant living standards displayed by world economies prior to 1800 as well as the growing living standards exhibited by modern industrial economies. Our theory also explains the industrial revolution, which is the transition from an era when per capita incomes are stagnant to one with sustained growth.... [The authors] use a standard growth model with...[several] technologies. The first, denoted the 'Malthus' technology, requires land, labor and reproducible capital as inputs. The second, denoted the 'Solow' technology, does not require land. [The authors] show that in the early stages of development, only the Malthus technology is used and, due to population growth, living standards are stagnant despite technological progress. Eventually, technological progress causes the Solow technology to become profitable and both technologies are employed. At this point, living standards improve since population growth has less influence on per capita income growth. In the limit, the economy behaves like a standard Solow growth model."     

A method for identifying and assessing key customer group needs

This paper presents a methodology for identifying and weighing the importance of product attributes used by a key customer group of a company. A central feature of the technique is the introduction of a new concept: competition factors (CF). These factors address the influence of substitute products in the specific product attributes that a customer group considers. A better knowledge of substitute products can surface previously hidden or latent customer needs. CF allow dealing with this problem, providing a powerful tool for market-oriented businesses that seek to understand customers' expressed and latent needs. The wood products industry and architects are used to illustrate the technique.     

Cost effectiveness and impact on quality of life of abobotulinumtoxinA and onabotulinumtoxinA in the treatment of children with lower limb spasticity in Canada

Abstract

Background: Injectable botulinum neurotoxins are a mainstay of treatment for pediatric spasticity. AbobotulinumtoxinA and onabotulinumtoxinA are both injectable toxin therapies used to treat pediatric lower limb (PLL) spasticity in Canada. The objective of this study was to assess the cost-effectiveness of abobotulinumtoxinA vs. onabotulinumtoxinA in the treatment of PLL spasticity in Canada.

Methods: A probabilistic Markov cohort model with a 2-year time horizon was developed, with health states defined by response to therapy, as characterized by the goal attainment scale (GAS). Based on randomized controlled trial evidence, response to therapy was similar or higher for abobotulinumtoxinA relative to onabotulinumtoxinA; uncertainty was incorporated into model parameters, however, as the two therapies have not been compared head-to-head. Canadian resource use and cost data were incorporated.

Results: In the base case, abobotulinumtoxinA generated 1.48 quality-adjusted life years over the model time horizon, compared to 1.47 for onabotulinumtoxinA. AbobotulinumtoxinA was associated with cost savings of $123 CAD, reflecting lower costs in both medication acquisition and health services. The estimated improvement to quality of life and reduced costs result in an estimate of economic dominance for abobotulinumtoxinA over onabotulinumtoxinA. This dominant result persisted across probabilistic and scenario analyses.

• Key points for decision makers

• Based on a review of available clinical evidence, abobotulinumtoxinA was found to have significant and/or numerical efficacy benefits to onabotulinumtoxinA on functional outcomes (Goal Attainment Scale) and tone (Modified Ashworth Scale) and in the treatment of pediatric lower limb spasticity

• In this cost-effectiveness analysis, abobotulinumtoxinA was found to be associated with greater quality-adjusted life years and lower costs than onabotulinumtoxinA (economically dominant)

• A limitation of this analysis was the uncertainty around key parameters. Specifically, the lack of head-to-head comparison data for the two therapies, and variable data regarding likely onabotulinumtoxinA dosing in PLL in clinical practice. However, across a range of plausible scenarios, the economic dominant result remained.

     

Why have business cycle fluctuations become less volatile?

This paper shows that a standard Real Business Cycle model driven by productivity shocks can successfully account for the 50% decline in cyclical volatility of output, its components, and labor input that has occurred since 1983. The model is successful because the volatility of productivity shocks has also declined significantly over the same time period. We then investigate whether the decline in the volatility of the Solow Residual is due to changes in the volatility of some other shock operating through a channel that is absent in the standard model. We therefore develop a model with variable capacity and labor utilization. We investigate whether government spending shocks, shocks that affect the household’s first order condition for labor, and shocks that affect the household’s first order condition for saving can plausibly account for the change in TFP volatility and in the volatility of output, its components, and labor. We find that none of these shocks are able to do this. This suggests that successfully accounting for the post-1983 decline in business cycle volatility requires a change in the volatility of a productivity-like shock operating within a standard growth model. We thank Stephen Parente, Ed Prescott, John Taylor, and two anonymous referees for helpful comments and suggestions.