McCloskey, economics as conversation, and Sprachethik

In writing about the 'rhetoric of economics' - particularlyabout the standards which prevent situations where 'anythinggoes' in argument - McCloskey takes an eclectic approach totwo philosophical positions, based on Rorty and Habermas respectively.But these positions, despite sharing some common aspects, alsodifferentiate themselves from each other sharply in importantways. In this paper, it is argued that this eclecticism of McCloskeyis not coherent, as a result of her not completely graspingthe fundamental differences between these two positions, andthat this incoherence has damaging implications for her projectof the rhetoric of economics.     

Price formation on stock exchanges: the evolution of trading within the day

Prior analyses of prices of the NYSE and other exchanges findthat transitory price volatility is greater at the open of tradingthan at the close. We extend this line of research by using40 years of hourly Dow Jones 65 composite price index data toestimate transitory volatility throughout the trading day. Ourresults indicate that transitory volatility steadily declinesduring the trading day. We find a similar intraday decline intransitory volatility for a 2-year sample of the individualfirms in the Dow Jones 30 Industrials Index. The results areconsistent with the hypothesis that trading aids price formationand do not support the argument that particular trading mechanismsare the source of greater volatility at the open of trading.     

Regression analysis of indicating multiple incremental cost-effectiveness ratios for non-small cell lung cancer treatment

Objectives:

The value of a health technology can be measured in terms of cost and benefit on two-dimensional co-ordinates. This study is to quantitatively analyze the correlation and to conduct a regression on the X-Y plane constituted by cost and QALYs (quality-adjusted life years) associated with the first line treatment, the maintenance treatment, and the second line treatment for non-small cell lung cancer (NSCLC).

Methods:

The cost-effectiveness data of the cost and QALYs were extracted, with respect to the three categories of the NSCLC treatment, from the CEA Registry at Tufts Medical Center, regarding the literature published from 2000–2011. As a result, 44 QALY-cost ratios were identified.

Results:

Based on those extracted data, the correlation and regression analyses were performed by mathematical model using log and square-root functions. The plotted ratios stratified by the three stages for the NSCLC treatment were visually grouped into three clusters. There were statistically significant differences among the correlation coefficients of the cluster. In regression, the log model was found to be better fitted than the square-root model; formulating QALY?=??1.12?+?0.16 log(Cost), ?1.99?+?0.28 log(Cost), and ?0.69?+?0.10 log(Cost) for the first line, the maintenance, and the second line treatment, respectively. Monetary units were standardized to 2008 US dollars.

Conclusion:

A good methodological potential was confirmed so as to assess the Incremental Cost Effectiveness Ratio (ICER) variations, considering stratification by multiple factors such as disease and treatment categories. This study has certain limitations, such as the small number of included articles and the stratification, not reflecting a factor of new genetic findings.     

Tax planning, regulatory capital planning, and financial reporting strategy for commercial banks

We test whether banks' investment and financing policies canbe explained by tax status. We document changes in bank holdingsof municipal bonds in response to changes in tax rules relatingto deductibility of interest expense. We also document an associationbetween banks' marginal tax rates and their investment and financingdecisions, which is consistent with the existence of tax clienteles.However, banks do not sort themselves perfectly into investmentand financing clienteles because of adjustment costs. We positspecific types of transaction-cost impediments to tax planning,and document that banks apparently trade off these costs againsttax-planning benefits.     

DETERMINATION OF PARTICIPATION DECISION, HIRING DECISION, AND WAGES IN A DOUBLE SELECTION FRAMEWORK: MALE-FEMALE WAGE DIFFERENTIALS IN THE U.S. LABOR MARKET REVISITED

The magnitude of the male-female wage differential is known to be highly sensitive to the specification of the wage equations used. An important source of misspecification is the failure to correct the sample selection bias that results from estimating the wage equation obtained through two sequential decisions: the worker's decision to participate in the labor market and the employer's decision to hire. Estimation of the wage equation ignoring this double selection process leads to biased estimates, and consequently the resulting male-female wage differentials are likely to be misleading. Following a double selection approach and using a sample from the National Longitudinal Survey of Youth, this article examines the determinants of not only the wage equation but also the worker's participation and the employer's hiring decisions in both male and female samples. The study further demonstrates that the unexplained male-female wage differential remains underestimated when the roles of both selection decisions are ignored in the estimation of wage equations.     

Health technology assessment in Japan: a work in progress

Abstract

Background: In Japan, pharmacoeconomic requirements for list-price adjustment were institutionalized in April 2019 following provisional implementation of a new Health Technology Assessment (HTA) program 2016–2019. Since April 2019, submission of cost-effectiveness evidence to the Central Social Insurance Medical Council (Chuikyo) as part of the Japanese Ministry of Health, Labour, and Welfare has been mandatory for selected pharmaceuticals and medical devices.

Methods: Based on a review of publications and commentaries since April 2019, together with views from a group of experts on key issues to be addressed, this report provides an update on recent HTA developments and key challenges still to be addressed.

Results and Discussion: Japan’s new HTA program is a first step toward development of a universal healthcare system that can be sustainable for many years into the future. Currently, Japan’s HTA program requires provision of incremental cost-effectiveness ratios (ICERs) as evidence, with quality-adjusted life years as the preferred outcome measure. Prices can be adjusted both upward and downward according to the degree of the ICER estimate. Japan is the first country to have adopted an algorithmic method for “ICER-based” pricing; however, HTA measures that extend beyond a single ICER estimate are needed to take full advantage of HTA in the future. In particular, generation of evidence of value should support changes to the healthcare system so that incentives for innovation are not diminished while industry and government are not overburdened by the generation or assessment of evidence. There is a need to ensure scientifically sound HTA expertise across all sectors in Japan, and therefore enhancement of HTA literacy and capability among healthcare professionals, academia, government, and industry should be a priority.