Central bank interventions and jumps in double long memory models of daily exchange rates

In this paper, we estimate ARFIMA–FIGARCH models for the major exchange rates (against the US dollar) which have been subject to direct central bank interventions in the last decades. We show that the normality assumption is not adequate due to the occurrence of volatility outliers and its rejection is related to these interventions. Consequently, we rely on a normal mixture distribution that allows for endogenously determined jumps in the process governing the exchange rate dynamics. This distribution performs rather well and is found to be important for the estimation of the persistence of volatility shocks. Introducing a time-varying jump probability associated to central bank interventions, we find that the central bank interventions, conducted in either a coordinated or unilateral way, induce a jump in the process and tend to increase exchange rate volatility.     

Owning and testing smoke alarms: findings from a qualitative study

Reducing injury and death in house fires is an important public health intervention activity with the presence of an operating smoke alarm widely considered an important way of reducing harm from fire. Yet despite a number of initiatives and fire-safety campaigns, a number of households at greater risk of domestic fire fail to have a functioning alarm. This paper provides empirical insight into everyday experiences of owning, maintaining and testing smoke alarms among a purposive sample of individuals identified as being less likely to own a functioning smoke alarm. Analysis from focus group data identifies a number of reasons why individuals may not own or test an alarm, and provides new insight into how fire risk is understood in the context of a range of competing, and potentially more prominent, individual and household risks. We suggest that while initiatives that aim to reduce fire injury and death should be continued, their success, and indeed future research on fire risk, should pay attention to the mundane and everyday contexts within which individuals currently rarely reflect on their risk of experiencing a domestic fire.     

Using ROC techniques to measure the effectiveness of foreign exchange market interventions

Using as an example data on official Japanese interventions in the yen/dollar market, I show that techniques developed to analyse relative operating characteristic (ROC) curves can be useful to study the forecasting value and effectiveness of interventions.     

Cost-effectiveness of dipeptidyl peptidase-4 inhibitor monotherapy versus sulfonylurea monotherapy for people with type 2 diabetes and chronic kidney disease in Thailand

Objective: With a high prevalence of chronic kidney disease (CKD) in type 2 diabetes (T2DM) in Thailand, the appropriate treatment for the patients has become a major concern. This study aimed to evaluate long-term cost-effective of dipeptidyl peptidase-4 (DPP-4) inhibitor monothearpy vs sulfonylurea (SFU) monotherapy in people with T2DM and CKD.

Methods: A validated IMS CORE Diabetes Model was used to estimate the long-term costs and outcomes. The efficacy parameters were identified and synthesized using a systematic review and meta-analysis. Baseline characteristics and cost parameters were obtained from published studies and hospital databases in Thailand. Costs were expressed in 2014?US Dollars. Outcomes were presented as an incremental cost-effectiveness ratio (ICER). One-way and probabilistic sensitivity analyses were performed to estimate parameter uncertainty.

Results: From a societal perspective, treatment with DPP-4 inhibitors yielded more quality-adjusted life years (QALYs) (0.024) at a higher cost (>66,000 Thai baht (THB) or >1,829.27 USD) per person than SFU, resulting in the ICER of >2.7 million THB/QALY (>74,833.70 USD/QALY). The cost-effectiveness results were mainly driven by differences in HbA1c reduction, hypoglycemic events, and drug acquisition cost of DPP-4 inhibitors. At the ceiling ratio of 160,000 THB/QALY (4,434.59 USD/QALY), the probability that DPP-4 inhibitors are cost-effective compared to SFU was less than 10%.

Conclusions: Compared to SFU, DPP-4 inhibitor monotherapy is not a cost-effective treatment for people with T2DM and CKD in Thailand.     

Masculinities and gender-based violence in South Africa: A study of a masculinities-focused intervention programme

Violence, and particularly gender-based violence (GBV), has become an increasingly serious problem in the democratic era in South Africa. While numerous suggestions have been offered for why this is the case, a growing body of literature links the perpetration of violence and GBV to the expectations of men’s prescribed gender roles, or their masculinities. In response to this, some organisations have begun working specifically with men as a violence prevention mechanism, through the use of masculinities-focused interventions. This paper uses a South African example as a case study, looking primarily at how men who participate in the intervention understand masculinities and violence, and the impact that the intervention has on this understanding. Results suggest that violence has become largely normalised in the country, but that the intervention can play a role in beginning to problematise that normalisation.     

Clinical characteristics and resource utilization of patients with bipolar disorder who have frequent psychiatric interventions

Abstract

Objective:

To compare the demographics, clinical characteristics and resource utilization of patients with bipolar disorder who required frequent psychiatric interventions (FPIs) with those needing fewer interventions in the Duke Healthcare System database between 1999 and 2005.

Methods:

This retrospective analysis was conducted using electronic medical records of bipolar patients with FPIs, defined as having ≥4 clinically significant events (CSEs) in any 12-month period while in the Duke University Healthcare System. CSEs were composed of emergency room visits, inpatient hospitalizations, or a change in psychotropic medication due to psychiatric symptoms (score ≥4 on the Clinical Global Impressions–Severity scale). Data were compared between patients with and without FPIs.

Results:

Of 632 patients with bipolar disorder 52.5% were identified as having FPIs. These patients were younger and more often female and African American than those with fewer interventions (p?<?0.01 for all). Patients with FPIs were generally prescribed more psychotropic and non-psychotropic medications, utilized more healthcare resources and experienced more psychiatric co-morbidities than those who did not require FPIs (p?<?0.01 for all).

Limitations:

These results are from a single healthcare system and may not be generalizable to all patients with bipolar disorder. This analysis was retrospective and relied on availability of adequate information recording and coding of diagnoses by physicians.

Conclusions:

Patients with bipolar disorder who required FPIs were significantly different from those with fewer clinically defined interventions with respect to their demographic and clinical characteristics and prescribed medications.     

EXCHANGE RATE TARGET ZONES: A SURVEY OF THE LITERATURE

This work selectively reviews the literature on exchange rate target zones and their theoretical and empirical methodologies and examines whether they can be used to clarify to what extent this type of exchange rate regime could contribute to greater exchange rate stability. We discuss the main contributions of the first and second generations of exchange rate target zone models. In an attempt to reconcile the poor empirical performance of the Krugman model with the reality of exchange rate target zone regimes, this line of research integrates target zones with alternative underlying economic models, such as imperfect credibility, intra‐marginal interventions and sticky price models. It was thus possible to understand the correlations observed between the exchange rate, its fundamentals determinants and the interest rate differential, and to explain the fact that the statistical distribution of the exchange rate is hump shaped rather than U shaped. This implies that the initial emphasis of target zone models on nonlinearities, ‘honeymoon effect’, ‘smooth pasting’ and marginal interventions has vanished. Exchange rate target zones are better described as similar to managed floating regimes with intra‐marginal interventions, with some marginal interventions when the exchange rate reaches the edges of the floating band.     

New Political Economy

Alberto Alesina and Nouriel Roubini with Gerald D. Cohen, Political Cycles and the Macroeconomy
Avinash K. Dixit, The Making of Economic Policy: A Transaction-Cost Politics Perspective.
Gordon Pepper, Inside Thatcher's Monetarist Revolution