INEQUALITY AND HAPPINESS

In recent years there has been an accumulation of empirical evidence suggesting that individuals dislike inequality. The literature has built upon estimating the degree of this dislike as well as its causes. The use of self‐reported measures of satisfaction or well‐being as a proxy for utility has been one of the empirical strategies used to this end. In this survey, we review the papers that estimate or examine the relationship between inequality and self‐reported happiness to conclude that inequality correlates negatively with happiness in Western societies. Some of the surveyed papers identify particular sources of heterogeneity on preferences over inequality. The evidence for non‐Western societies is more mixed and less reliable. Notwithstanding that, trust in the institutions seems to play an important role in shaping the relationship between income inequality and subjective well‐being. We conclude with suggestions for further research.     

APPROACHES TO INEQUALITY OF OPPORTUNITY: PRINCIPLES,MEASURES AND EVIDENCE

We put together the different conceptual issues involved in measuring inequality of opportunity, discuss how these concepts have been translated into computable measures, and point out the problems and choices researchers face when implementing these measures. Our analysis identifies and suggests several new possibilities to measure inequality of opportunity. The relevance of the conceptual issues and modelling choices are illustrated with findings from the empirical literature on income inequality of opportunity.     

Business service networks and their process of emergence: The case of the Health Cluster Portugal

Business services have been receiving increasing attention from academics, practitioners and policy-makers. Despite the growing interest, this field of research suffers from several limitations: it draws mostly on services marketing theory, and it is grounded mostly in monadic and dyadic studies. This paper contributes to the advance of business services research by addressing these limitations with regard to a specific service-related issue. We carry out an interdisciplinary study by integrating among others an industrial network approach (INA) into the services area, and we thus develop the research at a network level by adopting a services network perspective; furthermore, the study is carried out in a business-to-business context by looking into a health cluster: the Health Cluster Portugal. The article addresses one particular aspect of business services networks: their emergence. We propose a conceptual framework that draws on process-based research and integrates theories from other bodies of research, allowing a rich understanding of how a business service network is created. Our findings point to discontinuities along the emergence of such networks, showing that there is an iterative process underlying their formation, with different theories playing a predominant explanatory role at different stages. This paper contributes to the wider body of literature on services research by promoting the integration of the INA and other process-related approaches in the area of business services networks, and also provides practitioners and policy-makers with a structured framework to understand how an intentional ‘bottom–up’ business service network may be created or orchestrated.     

GROWING LIKE SPAIN: 1995–2007

Measured total factor productivity (TFP) fell in Spain during the boom years of 1995–2007. Using administrative data from the quasi-universe of firms, we show that there was an increase in misallocation, which was more severe in sectors where connections with public officials are more important for business success. We write and estimate a simple model of cronyism in which heterogeneous firms invest in political connections. Our quantitative exercise concludes that the institutional decline over this period costed 1.9% growth in TFP per year and a 0.8% annual increase in the resources spent by firms in establishing political connections.     

An heterodoxical interpretation of the employment problem in Latin America

In this paper, I wish to defend the following hypothesis: the relative excess of labor that has traditionally characterized Latin American labor markets has been decreasing at least since World War II. The occupational situation, though still quite serious, has been improving considerably in most Latin American countries, not deteriorating, as is commonly regarded to be the case (the orthodox position).     

Forecasting core competencies in an R&D environment

This study, carried out in 1998, aimed to develop a method of forecasting core competencies in an agricultural research organization, using the Delphi Technique. First, based on a survey of internal documents and interviews, nine organizational core competencies and their specific components (human competencies) were defined, and expert judges identified. These judges responded to a questionnaire, in which the importance of the future human competencies was assessed and the organization's existing human capacity was evaluated. Means were calculated for both judgements and changes were made in various definitions, based on the experts' comments. Another questionnaire was designed and sent out to an expanded panel of judges to confirm or to revise the priority mean scores obtained or to add scores in the case of competencies that entered later. Factor analysis and reliability scores have demonstrated internal and inter‐competency consistencies. Technological Innovation Management and Geo‐processing appeared as the top priorities and Plant Pathology as the least priority. Priorities for each human competency were also calculated and they have been helpful for decision‐making concerning the selection and graduate training of researchers on the organization studied.     

Cost-effectiveness analysis of the SAPIEN 3 TAVI valve compared with surgery in intermediate-risk patients

Objective: Transcatheter aortic valve implantation (TAVI) has become the therapy of choice for treating severe aortic stenosis in patients at high-risk for surgery or where it is considered too risky to attempt. This uptake varies across geographies however, and its cost or value has frequently been cited as the reason for this. We sought to evaluate the potential cost and clinical impact of TAVI in intermediate risk patients from a French collective perspective.

Materials and methods: The analysis was performed using a novel Markov model with data derived from the PARTNER II randomized controlled trial for survival, clinical event rates, and quality-of-life. The simulated time horizon was 15?years, costs were from French sources and presented in 2016 Euros. Discounting of all outcomes was at 4% annually and the effect of uncertainty in model parameters was explored by deterministic and probabilistic sensitivity analysis (PSA).

Results: In comparison to surgery, TAVI resulted in improved clinical outcomes (life expectancy and quality-adjusted life expectancy) and lower costs over a lifetime time horizon. The base case results showed increases of 0.42?years and 0.41 QALYs with lifetime cost savings of €439 for TAVI compared to surgery. PSA results showed a >50% likelihood of cost-effectiveness at €0 willingness-to-pay and a 100% likelihood at ～€15,000.

Limitations: Clinically, survival projections are based on limited follow-up data and introduce uncertainty into the outcomes from the model. Economically, procedure costs are derived from a heterogeneous mix of patient risk groups, although this is much more likely to bias against TAVI and under-estimate overall cost savings.

Conclusions: In our analyses of intermediate risk patients, TAVI is associated with superior clinical outcomes compared to surgery and is cost saving. It could be expected that cost savings are conservative and likely to increase over time.     

The opportunity costs of commuting: the value of a commuting satellite account framework with an example from Lisbon Metropolitan Area*

Commuting affects regional and urban economies. It shapes urban areas, defines their relationships with neighboring regions, intensifies economic flows and exacerbates energy consumption and greenhouse gas emissions. This paper sets out a proposal for an innovative commuting satellite account (CSA), integrated in a multi-regional input–output model. This framework combines commuting activities with regional distribution of income, distinct household consumption structures, real estate renting activities and the energy consumption and environmental flows incorporated in the different industries. To assess the opportunity costs of commuting, the CSA framework is applied to the Lisbon Metropolitan Area. The socio-economic-environmental impacts of a scenario in which commuters become non-commuters by moving their residence to the municipality in which they work are estimated. The analysis indicates that: commuting, in general, induces significant economic and environmental opportunity costs. Finally, the adoption of policy-oriented recommendations contributing to limit sprawling in metropolitan regions is discussed.