Transportation in disaster response operations

Disasters are extraordinary situations that require significant logistical deployment to transport equipment and humanitarian goods in order to help and provide relief to victims. An efficient response helps to reduce the social, economic and environmental impacts. In this paper, we define and formulate a practical transportation problem often encountered by crisis managers in emergency situations. Since optimal solutions to such a formulation may be achieved only for very small-size instances, we developed an efficient genetic algorithm to deal with realistic situations. This algorithm produces near optimal solutions in relatively short computation times and is fast enough to be used interactively in a decision-support system, providing high-quality transportation plans to emergency managers.     

New ESG rating drivers in the cross-section of European stock returns

We assess the performance of two quantitative signals based on ESG scores across a large, multi-national cross-section of European stock returns. We test whether the cost of equity capital is more influenced by the upward momentum (measured over time) of the ESG scores of the firms issuing stocks or by their stability (identified as the volatility of the scores over time), measured around a changing mean level. We find that short-term ESG momentum over 1 month has a significant impact on the cross-section of stock returns, lowering the anticipated cost of capital and leading to positive average abnormal returns. This suggests that short-term ESG momentum may represent a novel, priced systematic risk factor. Furthermore, we find strong evidence that an ESG volatility spread strategy which buys low ESG score volatility stocks and sells high volatility ones, generates a substantial alpha and affects the ex-ante cost of capital. Both quantitative ESG signals result in portfolio sorting and long-short strategies that enhance the overall sustainability profile of the issuing firms without compromising the raw average of their ESG scores.     

Trade,Technology and the Demand for Skills in Tunisia, 1998–2002

Abstract

Although many developing countries have experienced an increase in the relative demand for skilled workers leading to a rise in wage inequality, the role played by trade in this trend remains a matter of debate. Using a firm-level database covering manufacturing and non-manufacturing sectors in Tunisia over the period 1998–2002, this paper investigates whether trade-induced technological change could explain the increase in the relative demand for skilled workers. The empirical analysis is based on the estimation of an employment-share equation. Controlling for potential endogeneity issues, the results confirm that trade-induced technology adoption was a channel through which openness to trade raised the relative demand for skilled workers in Tunisia. Unlike trade, however, foreign investment in Tunisia did not appear to increase the demand for skills.     

Structural transformation in Egypt,Morocco and Tunisia: Patterns,drivers and constraints

This study analyses structural transformation in three Middle East and North Africa (MENA) countries: Tunisia, Morocco and Egypt over a large time period (1960–2010). We examine labour productivity evolution and structural change contribution to productivity growth over different sub‐periods. We analyze the contribution of different economic sectors to aggregate structural change in the three countries. An econometric analysis is also performed to identify the main factors underlying the intensity and the pattern of structural change. Results suggest that the three countries initiated and achieved some progress in structural transformation over the 1970s, 1980s and early 1990s. However, this process has stagnated at low‐income levels and has remained unfinished. Deindustrialization occurred at an early stage of development in the three countries, in contrast to that noticed in developed and emergent countries. The results of the econometric analysis suggest a significant and positive association between investment and structural change as capital accumulation increases the future productive capacity and triggers reallocative efficiency. The human capital quality and availability has a positive and significant impact on structural change. Trade openness is also expected to boost structural transformations. However, labour market rigidity hampers structural transformation.     

Value of innovation for hematologic malignancies

Background:

Several novel drugs are dramatically improving both lifespan and quality-of-life of patients with blood cancers.

Aim:

Prolonged disease duration and increased treatment costs for hematologic malignancies impose a relevant economic burden onto healthcare services, despite the low incidence of blood cancers. Therefore, an appropriate paradigm for valuing ‘innovation’ is urgently required in order to refine pricing and reimbursement decisions. Cost-per-QALY-gained is still the standard metric for assessing the ‘incremental’ value of new drugs; however, the high number of ‘comparator’ therapies and the huge variety of treatment sequences make plain two-treatment comparisons sub-optimal, while multiple-treatment and multiple-sequence comparisons require complex and less-transparent decision models. A repository of standard backbones for decision models might allow benchmarking and comparability among cost-effectiveness analyses; however, an international effort is required to build it up.

Results:

Deontology recommends that hematologists act in optimizing healthcare resources while preserving patient–physician alliance, but clinical practice guidelines do not support doctors in balancing cost against clinical outcomes. Decision models of chronic blood cancers unexpectedly proved that cost might be an appropriate value for innovation if treatments avoided severe toxicity and further lines of treatments, despite the eventually long duration of treatment and the competing risk of death due to comorbidity and old age.

Conclusion:

The improved transparency of decision models allows sharing of relevant structural and analytic parameters (i.e., time horizon, comparator treatments, hierarchy of end-point, assumptions, source of data, sub-group analyses) by stakeholders, physicians and patients, making health economics a noble ‘translator’ of values for innovation.     

Exchange rate regimes and prices: The cases of Italy,Spain and the United Kingdom (1874–1998)

This paper studies the relationship among Italian, Spanish and United Kingdom prices over the period 1874–1998, for most of which the currencies of these three countries maintained a floating exchange rate regime. By using cointegration techniques with broken linear trends, we find a single vector for the period 1874–1935 and two vectors and, consequently, a single common trend for the period 1940–1998. Therefore, this paper provides new evidence of no long-run monetary independence under floating regimes. Furthermore, the price differential dynamics captured by deterministic trends in the period 1940–1998, as well as agreeing with the evidence of long-run transmission of interest rates in the floating post-Bretton Woods era, fit in perfectly with the new de facto taxonomies on exchange rates.