The Incidence of Public Spending on Healthcare: Comparative Evidence from Asia

The article compares the incidence of public healthcare across11 Asian countries and provinces, testing the dominance of healthcareconcentration curves against an equal distribution and Lorenzcurves and across countries. The analysis reveals that the distributionof public healthcare is prorich in most developing countries.That distribution is avoidable, but a propoor incidence is easierto realize at higher national incomes. The experiences of Malaysia,Sri Lanka, and Thailand suggest that increasing the incidenceof propoor healthcare requires limiting the use of user fees,or protecting the poor effectively from them, and building awide network of health facilities. Economic growth may not onlyrelax the government budget constraint on propoor policies butalso increase propoor incidence indirectly by raising richerindividuals' demand for private sector alternatives.     

Social business collaboration at the bottom of the pyramid: The case of orchestration

Social business orchestrators (SBOs) help social businesses of various sizes to tackle major societal issues by filling gaps in knowledge and resources. However, research has overlooked these types of collaboration. Situated within a bottom of the pyramid context in Bangladesh, the current study sheds light on the process of value creation for SBO–social businesses partnerships by comparing different collaboration partners. Multiple case study research through the lens of the relational view were used to ask how SBOs facilitate value creation in social businesses by flexibly adapting resource inputs and governance mechanisms to the specific endowment and size of partners; this approach was informed by interviews and field note analyses. The combined deductive–inductive analysis enhances knowledge of idiosyncrasies of SBO–social business collaborations. Our study draws attention to the role of large orchestrators, whose model could be scaled and transferred to other world regions, including industrialised countries.     

Modeling and forecasting trading volume index: GARCH versus TGARCH approach

Volatility has been described as an indicator of uncertainty which has implications for investment decisions, risk management as well as monetary policy. This paper investigates the pattern of volatility in the daily trading volume index of Hong Kong stock exchange. The empirical evidence provided in this paper suggests that TGARCH specification is superior to GARCH specification. This is particularly important when one is dealing with the case of asymmetric information that captures the leverage effect of the volatile stock market.     

A Pinch or a Pint? Evidence of Pesticide Overuse in Bangladesh

In a recent survey of 820 rice, potato, bean, eggplant, cabbage, sugarcane and mango farmers in Bangladesh, over 47% of farmers were found to be overusing pesticides. With only 4% of farmers formally trained in pesticide use or handling, and over 87% openly admitting to using little or no protective measures while applying pesticides, overuse is potentially a great threat to farmer health as well as the environment. Pesticide overuse was initially modelled using a three‐equation, trivariate probit framework with health effects and misperception of pesticide risk as endogenous dummy variables. Significance tests revealed that health and misperception were not endogenous to overuse, suggesting a bivariate probit model for health effects and misperception and a separate probit model for overuse. Health effects were found to be a function of the amount of pesticides used in production, nutritional status and income, while misperception of pesticide risk was determined by health impairments from pesticides and the toxicity of chemicals used. Pesticide overuse was significantly explained by variation in misperception, income, farm ownership, the toxicity of chemicals used, crop composition and geographical location. These results highlight the necessity for policymakers to design effective and targeted outreach programmes which deal specifically with pesticide risk, safe handling and averting behaviour. Ideally, the approach would be participatory in nature to address key informational gaps, as well as increasing: farmers’ awareness. The results also point to specific crops and locations experiencing a higher prevalence of overuse. Focusing efforts on these crops and geographical areas may have the most measurable effects on pesticide overuse.     

Water pollution abatement by Chinese industry: cost estimates and policy implications

Factory-level data are used to estimate water pollution abatement costs for Chinese industry. Joint abatement cost functions are utilized which relate total costs to treatment volume and the simultaneous effect of reductions in suspended solids, chemical oxygen demand, biological oxygen demand and other pollutants. Tests of alternative functional forms suggest that a very simple (constant elasticity) model fits the data as well as a complex (translog) model, permitting sophisticated policy experiments with relatively simple calculations. From the results, the cost-effectiveness of current pollution control policy in China is analysed. Basic conclusions are (1) The benefits of stricter discharge standards should be weighed carefully against the costs. For the sample of 260 factories, a shift across the existing range of standards entails a present-value difference of US$330 million in abatement costs. (2) Emissions charges as low as US$1.00/ton would be sufficient to induce 80% abatement of suspended solids for cost-minimizing factories. Charges of US$3, US$15 and US$30 per ton would be sufficient to induce 90% abatement of TSS, COD and BOD. (3) The current regulatory system provides an economic incentive to abate by charging a levy on pollution in excess of the standard. However, the results suggest that changing to a full emissions charge system would greatly reduce overall abatement costs. For the 260 factories in the sample, the current overall abatement rate could be attained under a charge system at a reduced annual cost whose present value is US$344 million.     

Diverging Stories of “Missing Women” in South Asia: Is Son Preference Weakening in Bangladesh?

ABSTRACT

South Asia is a region characterized by a culture of son preference, severe discrimination against daughters, and excess levels of female mortality, leading to what Amartya Sen called the phenomenon of “missing women.” However, the onset of fertility decline across the region has been accompanied by considerable divergence in this phenomenon. In India, improvements in overall life expectancy have closed the gender gap in mortality rates among adults, but persisting gender discrimination among children and increasing resort to female-selective abortion has led to growing imbalance in child sex ratios and sex ratios at birth. In Bangladesh, by contrast, fertility decline has been accompanied by a closing of the gender gap in mortality in all age groups. Using quantitative and qualitative data, this study explores changing attitudes toward sons and daughters in Bangladesh to explain why the phenomenon of “missing women” has played out so differently in these two neighboring countries.     

Technical choice in developing countries: The case of leather manufacturing

The study examines the scope of technical choice in developing countries by viewing the evolution of technology in leather manufacturing and comparing alternative techniques for manufacturing upper leather from cattle hides. Two important conclusions have emerged. First, a developing country aiming to establish a leather manufacturing industry has a reasonably wide technical choice. Second, techniques using relatively higher labour and lower fixed capital generally appear to be better choices than more capital-intensive techniques.     

Determinants of pollution abatement in developing countries: Evidence from South and Southeast Asia

Developing countries, pa?ticularly those in Asia, are fast adopting industrial pollution control standards similar to those in developed countries. Formal regulation has been greatly hampered, however, by the absence of clear and legally binding regulations; limited institutional capacity; lack of appropriate equipment and trained personnel; and inadequate information on emissions. One would predict highly pollution-intensive production under such conditions. Our research, however, has uncovered strongly contradictory evidence. Despite weak or nonexistent formal regulation, there are many clean plants in the developing countries of South and Southeast Asia. Of course, there are also many plants which are among the world's most serious polluters. What explains such extreme interplant variation? This paper reviews evidence drawn from three empirical studies of plant-level abatement practices conducted 1992–1994.The analyses test the importance of plant characteristics, economic considerations and external pressure in determining environmental performance. The results consistently show that pollution intensity is negatively associated with scale, productive efficiency, and the use of new process technology. It is strongly and positively associated with public ownership, but foreign ownership has no significant effect once other plant characteristics are taken into account. Among external sources of pressure, community action, or informal regulation, emerges as a clear source of interplant differences in all three studies. The results suggest that local income and education are powerful predictors of the effectiveness of informal regulation. They also show that existing formal regulation has measurably beneficial effects, even when it is quite weakly developed.     

Introducing Nonlinear Pricing into Consumer Choice Theory

Introducing nonlinear pricing into the teaching of consumer choice theory would provide an extension that introduces the student to a ubiquitous phenomenon and would enable the instructor to develop some interesting behavioral results. After distinguishing linear and nonlinear pricing, the authors derive the tariff, the consumer budget equation, and some behavioral implications for various nonlinear pricing policies. They show, among other things, that under some forms of nonlinear pricing, after a price rise people may buy more of a commodity or more of a commodity than would have been bought under linear pricing. They note some complications arising in the treatment of quantity discounts and premia.