50 research outputs found

    How to Add Apples and Pears: Non-Symmetric Nash Bargaining and the Generalized Joint Surplus

    Get PDF
    We generalize the equivalence of the non-symmetric Nash bargaining solution and the linear division of the joint surplus when bargainers use different utility scales. This equivalence in the general case requires the surplus each agent receives to be expressed in compatible, or comparable, units. This result is valid in the case of bargaining over multiple-issues. In addition, we discuss the requirements on the curvatures of the agents’ utility functions, or, in other words, on the bargainers’ attitudes towards risk.Bargaining Problems, Non-Symmetric Nash Bargaining Solution, Linear Sharing

    Using DEA to profile in-hospital surgeon services: A South African funder perspective

    Get PDF
    Includes bibliographical references.The comparative assessment of physician performance, also known as ‘physician profiling’ is frequently used by healthcare funders. It aims to identify and improve the resource efficiency and quality of physician care. South African private healthcare funders use a wide range of profiling techniques; however, currently the use of frontier analysis is absent. This study explores the use of the non - parametric frontier analysis technique called Data Envelopment Analysis (DEA) for the profiling of physicians in South Africa. This is investigated by following a DEA profiling approach to evaluate the performance of 403 general/ paediatric surgeons in providing in - hospital services in 2012. A 7 - input 1 - output VRS DEA model is used to determine the efficiency of the surgeons. The profiling results are then analysed to determine their usefulness. It results reveal that 58 surgeons are efficient, representing only 14.4% of surgeons profiled. Therefore, the DEA approach reveals a large potential for efficiency improvements. The average efficiency score of inefficient surgeons is found to be 0.68. This means that, on average, inefficient surgeons have to decrease resource utilisation by 32% to achieve efficiency. The DEA approach is also found to be proficient at identifying the physicians presenting the most severe levels of inefficiency. 37 surgeons are found to be significantly inefficient. The approach also allows for the identification of peers against which inefficient surgeons are able to directly compare their practices. These results are determined to be of significant potential use to South African private healthcare funders. It is, however, noted that the analysis and results obtained was solely of a statistical nature. Closer consideration of the clinical appropriateness of the results is essential. In any case, this study concludes that a DEA profiling approach can be considered a useful technique in the comparison of physician performance in South Africa

    Representations of choice situations

    Get PDF

    Social Decision Theory: Choosing within and between Groups

    Get PDF
    We introduce a theoretical framework in which to study interdependent preferences, where the outcome of others affects the preferences of the decision maker. The dependence may take place in two conceptually different ways, depending on how the decision maker evaluates what the others have. In the first he values his outcome and that of others on the basis of his own utility. In the second, he ranks outcomes according to a social value function. These two different views of the interdependence have separate axiomatic foundations. We then characterize preferences according to the relative importance assigned to social gains and losses, or in other words to pride and envy. Finally, we study a two period economy in which agents have our social preferences. We show how envy leads to conformism in consumption behavior and pride to diversity.Social preferences, social economics.

    Measuring Freedom in Games

    Get PDF
    Behind the veil of ignorance, a policy maker ranks combinations of game forms and information about how players interact within the game forms. The paper presents axioms on the preferences of the policy maker that are necessary and sufficient for the policy maker's preferences to be represented by the sum of an expected valuation and a freedom measure. The freedom measure is the mutual information between players' strategies and the players' outcomes of the game, capturing the degree to which players control their outcomes. The measure extends several measures from the opportunity set based freedom literature to situations where agents interact. This allows freedom to be measured in general economic models and thus derive policy recommendations based on the freedom instead of the welfare of agents. To illustrate the measure and axioms, applications to civil liberties and optimal taxation are provided

    The Generalized DEA Model of Fundamental Analysis of Public Firms, with Application to Portfolio Selection

    Get PDF
    Fundamental analysis is an approach for evaluating a public firm for its investmentworthiness by looking at its business at the basic or fundamental financial level. The focus of this thesis is on utilizing financial statement data and a new generalization of the Data Envelopment Analysis, termed the GDEA model, to determine a relative financial strength (RFS) indicator that represents the underlying business strength of a firm. This approach is based on maximizing a correlation metric between GDEA-based score of financial strength and stock price performance. The correlation maximization problem is a difficult binary nonlinear optimization that requires iterative re-configuration of parameters of financial statements as inputs and outputs. A two-step heuristic algorithm that combines random sampling and local search optimization is developed. Theoretical optimality conditions are also derived for checking solutions of the GDEA model. Statistical tests are developed for validating the utility of the RFS indicator for portfolio selection, and the approach is computationally tested and compared with competing approaches. The GDEA model is also further extended by incorporating Expert Information on input/output selection. In addition to deriving theoretical properties of the model, a new methodology is developed for testing if such exogenous expert knowledge can be significant in obtaining stronger RFS indicators. Finally, the RFS approach under expert information is applied in a Case Study, involving more than 800 firms covering all sectors of the U.S. stock market, to determine optimized RFS indicators for stock selection. Those selected stocks are then used within portfolio optimization models to demonstrate the superiority of the techniques developed in this thesis

    A nonparametric approach to productive efficiency measurement : an application of bootstrap DEA to gold mining

    Get PDF
    In this dissertation the technical efficiency in gold mining is investigated. To the best available knowledge, this is the first such study on gold mining, whether on a localised (one country) or for a cross-section of countries. Since the work by Farrell (1957), much work has been done using nonparametric methods such as DEA. Although extensions in DEA technique, such as bootstrapping have been available for some time, their use has been limited in comparison with the number of overall DEA studies carried out. In this dissertation both DEA and bootstrap DEA are applied to two gold mining cross sectional samples, one on Zimbabwe consisting of thirty-four mines, and the an international one which also included some Zimbabwean mines which comprise fifty-nine observations.The main reason for carrying out the study is an interest in gold mining in general and its importance to Zimbabwe in particular. As will be noted in Chapter 2, the economic development of Zimbabwe has been linked, to a varying extent over the ages, to its growth of the gold mining sector.The results of the dissertation provide some useful insights into the relative performances of gold mines and also some characteristics of the Zimbabwean gold mining sector. The main results indicate that gold mining is characterised mainly by technical efficiency dominating scale efficiency. This is particular relevant when the Zimbabwean mines are compared with their international counterparts. Zimbabwean mines are found to be relatively technically efficient but less so when overall efficiency is considered. In fact they have the lowest overall efficiency scores in the international sample. The results also indicate that mines from the so-called developed mining economies, Australia, Canada, the US and South Africa are the benchmarks in terms of optimal operations. It is mines from these countries which define the overall efficiency frontier.The results of both the samples highlight potential shortcomings in applying DEA and bootstrap extension to gold mining, both for single country and for cross-country cases. Additionally, there are possibilities, with adequate data, of relating country-specific characteristics to differences in overall efficiency among countries.Finally there are indications that including mineralogical factors such as the recovery rate in the production technology has an effect on technical efficiency. Mines with low recovery rates tend to exhibit comparatively higher technical efficiency. The study does have some limitations, mainly because of lack of data. In particular, there were problems in coming with attributing the contribution of capital services to efficiency with the result that a different measure for the flow of capital services is used for each sample. In addition, the two samples are for different time periods. This limits comparative analysis

    Considerations of Efficiency and Distributive Justice in Multidimensional Poverty Measurement

    Get PDF
    Ab den 1980er Jahren entwickelte Amartya Sen eine neue Wohlfahrtstheorie: den Capability Approach (Sen, 1979; 1985; 1992; 1999; 2009). Dabei ersetzen Capabilities und Functionings, d.h. das, was Personen tatsĂ€chlich in der Lage sind zu tun und zu sein, den traditionellen Einkommensansatz. Armut ist im Capability Approach das Unvermögen, ein bestimmtes Minimum an zentralen Capabilities zu erreichen, die benötigt werden, um das Leben nach den eigenen Vorstellungen zu gestalten. Der Capability Approach hat so viele interessante Eigenschaften, besonders in Bezug auf die Armutsmessung, dass er zunehmend Einfluss in der Wohlfahrtsökonomie gewinnt. Diese Entwicklung wird durch empirische Untersuchungen gefördert, die zeigen, dass dieser multidimensionale Ansatz zur Armutsmessung deutlich andere Ergebnisse generiert als der traditionelle Einkommensansatz (vgl. Klasen, 2000, Alkire und Santos, 2010, Figari, 2012). Der derzeitige multidimensionale Ansatz hat jedoch eine methodische SchwĂ€che: Ungleichheit zwischen Armutsdimensionen wird entweder als KorrelationssensitivitĂ€t definiert – womit Effizienz aber nicht Verteilungsgerechtigkeit berĂŒcksichtigt wird – oder als die Verteilung multipler Mangelerscheinungen in einer Gesellschaft – womit Verteilungsgerechtigkeit aber nicht Effizienz berĂŒcksichtigt wird. Die ersten beiden Kapitel dieser Dissertation widmen sich der Behebung dieser methodischen SchwĂ€che. Dazu wird Ungleichheit zwischen Dimensionen zunĂ€chst als „korrelationssensitive Verteilung multipler Mangelerscheinungen in einer Gesellschaft“ definiert. Die ersten beiden Kapitel operationalisieren diese erweiterte Definition fĂŒr den Fall ordinaler und kardinaler Armutsindices. Im Einzelnen wird ein neues Axiom fĂŒr den ordinalen sowie den kardinalen Fall eingefĂŒhrt, das das Ausmaß, mit dem ein Ungleichheitsfördernder Tausch Armut sinken (oder steigen) lĂ€sst, von der Beziehung zwischen den Armutsdimensionen abhĂ€ngig macht. Diese Neuerung wird benutzt um eine neue Klasse ordinaler bzw. kardinaler Armutsindices herzuleiten. Diese zwei Klassen sind die ersten additiven Armutsindices die in der Lage sind, sowohl Ungleichheit als auch KorrelationssensitivitĂ€t zu erfassen. Das dritte Kapitel nutzt das deutsche sozio-ökonomische Panel um zwei ordinale Armutsindices fĂŒr Deutschland vorzuschlagen, die auf der zuvor entwickelten Methode basieren: den „Deutschen Korrelationssensitiven Armutsindex“ und den „Subjektiven Korrelationssensitiven Armutsindex“. Die beiden Indices werden mit dem offiziellen deutschen Armutsmaß, der ArmutsgefĂ€hrdungsquote, ĂŒber Dimensionen, Regionen und ĂŒber die Zeit hinweg verglichen. Die Resultate zeigen vor allem eines: die signifikanten Unterschiede in der Beurteilung von Armut und Armutstrends die durch die verschiedenen Indices versursacht werden und den hohen Mehrwert den die Operationalisierung des Capability Approachs darstellt

    Considerations of Efficiency and Distributive Justice in Multidimensional Poverty Measurement

    Get PDF
    Ab den 1980er Jahren entwickelte Amartya Sen eine neue Wohlfahrtstheorie: den Capability Approach (Sen, 1979; 1985; 1992; 1999; 2009). Dabei ersetzen Capabilities und Functionings, d.h. das, was Personen tatsĂ€chlich in der Lage sind zu tun und zu sein, den traditionellen Einkommensansatz. Armut ist im Capability Approach das Unvermögen, ein bestimmtes Minimum an zentralen Capabilities zu erreichen, die benötigt werden, um das Leben nach den eigenen Vorstellungen zu gestalten. Der Capability Approach hat so viele interessante Eigenschaften, besonders in Bezug auf die Armutsmessung, dass er zunehmend Einfluss in der Wohlfahrtsökonomie gewinnt. Diese Entwicklung wird durch empirische Untersuchungen gefördert, die zeigen, dass dieser multidimensionale Ansatz zur Armutsmessung deutlich andere Ergebnisse generiert als der traditionelle Einkommensansatz (vgl. Klasen, 2000, Alkire und Santos, 2010, Figari, 2012). Der derzeitige multidimensionale Ansatz hat jedoch eine methodische SchwĂ€che: Ungleichheit zwischen Armutsdimensionen wird entweder als KorrelationssensitivitĂ€t definiert – womit Effizienz aber nicht Verteilungsgerechtigkeit berĂŒcksichtigt wird – oder als die Verteilung multipler Mangelerscheinungen in einer Gesellschaft – womit Verteilungsgerechtigkeit aber nicht Effizienz berĂŒcksichtigt wird. Die ersten beiden Kapitel dieser Dissertation widmen sich der Behebung dieser methodischen SchwĂ€che. Dazu wird Ungleichheit zwischen Dimensionen zunĂ€chst als „korrelationssensitive Verteilung multipler Mangelerscheinungen in einer Gesellschaft“ definiert. Die ersten beiden Kapitel operationalisieren diese erweiterte Definition fĂŒr den Fall ordinaler und kardinaler Armutsindices. Im Einzelnen wird ein neues Axiom fĂŒr den ordinalen sowie den kardinalen Fall eingefĂŒhrt, das das Ausmaß, mit dem ein Ungleichheitsfördernder Tausch Armut sinken (oder steigen) lĂ€sst, von der Beziehung zwischen den Armutsdimensionen abhĂ€ngig macht. Diese Neuerung wird benutzt um eine neue Klasse ordinaler bzw. kardinaler Armutsindices herzuleiten. Diese zwei Klassen sind die ersten additiven Armutsindices die in der Lage sind, sowohl Ungleichheit als auch KorrelationssensitivitĂ€t zu erfassen. Das dritte Kapitel nutzt das deutsche sozio-ökonomische Panel um zwei ordinale Armutsindices fĂŒr Deutschland vorzuschlagen, die auf der zuvor entwickelten Methode basieren: den „Deutschen Korrelationssensitiven Armutsindex“ und den „Subjektiven Korrelationssensitiven Armutsindex“. Die beiden Indices werden mit dem offiziellen deutschen Armutsmaß, der ArmutsgefĂ€hrdungsquote, ĂŒber Dimensionen, Regionen und ĂŒber die Zeit hinweg verglichen. Die Resultate zeigen vor allem eines: die signifikanten Unterschiede in der Beurteilung von Armut und Armutstrends die durch die verschiedenen Indices versursacht werden und den hohen Mehrwert den die Operationalisierung des Capability Approachs darstellt
    corecore