How should donors give foreign aid? Project aid versus budget support

We develop a theoretical model to compare the two major foreign aid modalities: project aid and budget support. These two modalities have a different impact on the production of 'developmental goods'. Firstly, conditionality can be associated with budget support, but only a subset of the developmental expenses - the observable ones - can be subject to conditionality. Secondly, when using project aid, the donors control the overall allocation of the aid resources. However, we consider that, because of limited harmonisation and coordination, project aid can be associated with a cost of imperfect fit. We develop a unified framework to compare these two modalities where we allow the simultaneous utilisation of both instruments. We show that all the aid should be given via budget support, no matter whether conditionality is used or not. Furthermore, we show that the optimal use of conditionality depends on the recipient's developmental preferences, the productivity of the inputs and the level of aid compared to the recipient's budget: when these parameters are relatively high, conditionality should be enforced. Otherwise, the optimal aid allocation is such that all the aid is given through unconditional budget support. We conclude that conditionality does not always improve the aid effectiveness.conditionality - foreign aid - optimal contract

Barriers in multicultural business communication : an empirical study of Slovenia and Bosnia and Herzegovina

Companies that work in multicultural environments face several challenges in their everyday business life. In this article we focus on the communication aspect of working in multicultural business environments. We test the hypothesis that companies that work in multicultural environments are subject to communication barriers due to different cultural backgrounds of people that engage in these types of communication. We test the hypothesis through a case study of two companies, one from Bosnia and Herzegovina and one from Slovenia, that engage in mutual multicultural communication. Through an in-depth interview with the project manager who takes part in this communication every day and a survey with the employees, we identify and analyse the communication barriers that the employees perceive as relevant to their business processes. We overcome these barriers through the application of the fruitful intercultural business communication model. The main contribution of this work lies in demonstrating the applicability of this model to practical cases and the demonstration of the fact that cultural barriers can exist and inhibit successful business even in environments in close sociocultural and geographic proximity

Do free-of-charge public health services impede cost recovery policies in Khartoum state, Sudan?

We carried out a household survey in Khartoum state in 2001 to analyse the characteristics of those who receive free public health services and to ascertain whether there are any impediments to cost recovery policies for health care use. Data were collected through interviews based on an adapted questionnaire. Those who had other income, always or sometimes had dependents and visited the health services twice in the previous 3 months were more likely to receive free public healthservices. This does not support claims that beneficiaries of these services are the welloff.health services; Sudan

External referencing and pharmaceutical price negotiation

External referencing (ER) imposes a price cap for pharmaceuticals based on prices of identical products in foreign countries. Suppose a foreign country (F) negotiates prices with a pharmaceutical firm while a home country (H) can either negotiate independently or implement ER based on the foreign price. We show that country H always prefers ER if (i) it can condition ER on the drug being subsidized in the foreign country and (ii) copayments are higher in H than in F. H's preference isreinforced when the difference between country copayments is large and/or H's population is small. External referencing by H always harms F if (ii) holds, but less so if (i) holds.pharmaceuticals ; external referencing ; price negotiation

External referencing and pharmaceutical price negociation.

External referencing (ER) imposes a price cap for pharmaceuticals, based on prices of identical or comparable products in foreign countries. Suppose a foreign country (F) negotiates prices with a pharmaceutical firm, whereas a home country (H) can either negotiate prices independently or implement ER, based on the foreign price. We show that country H prefers ER if copayments in H are relatively high. This preference is reinforced when H's population is small. Irrespective of relative country sizes, ER by country H harms country F. Our model is inspired by the wide European experience with this cost-containment policy. Namely, in Europe, drug authorization and price negotiations are carried out by separate agencies. We confirm our main results in two extensions. The first one allows for therapeutic competition between drugs. In the second one, drug authorization and price negotiation take place in a single agency.pharmaceuticals; external referencing; price negotiation;

Physicians self selection of a payment mechanism: Capitation versus fee-for-service

The main question raised in this paper is whether GPs should self select their paymentmechanism or not. To answer it, we model GPs' behavior under the most commonpayment schemes (capitation and fee-for-service) and when GPs can select one amongthose. Our analysis considers GPs heterogeneity in terms of both ability and sense ofprofessional duty. We conclude that when savings on specialists costs are the mainconcern of a regulator, GPs should be paid on a fee-for-service basis. Instead, whenfailures to identify severe conditions are the main concern, then payment self selection byGPs can be optimal.GPs; gatekeeping; payment scheme; self selection; ability; professional duty

The frequency and outcome of lip cancer in Serbian population

Aim: Lip cancer is one of the most common cancers of the head and neck region. Among all lip malignancies, squamous cell carcinoma is most common, whereas basal cell carcinoma accounts for only 1% of all lip carcinomas. The aim of this paper was to evaluate the frequency of lip lesions among Serbian population and to consider its outcome. Material and Method: The analysis encompassed 479 patients who were hospitalized at the Clinic of Maxillofacial Surgery (Faculty of Dentistry, University of Belgrade) during the period 1989-2005 for the treatment of lip lesions. The following parameters were analyzed: sex, age, size and localization of the lesion, duration of hospitalization, TNM classification, histopathologic analysis, type of surgical procedure, other possible treatment, and a recurrence rate. Results: There were majority of males (78%). Average age of our patients was 63.4 years. Lesions were most often localized in the lower lip (88%), and less frequently in the upper lip (8%) or at the lip angle (4%). Average size of the lesion was 24.3 mm. Data confirmed that the 'W' excision was the most frequently used surgical procedure, and for bigger lesions, surgical reconstruction was performed by the technique suggested by Karapandzic. Histopathologic analysis confirmed the most frequent incidence of the squamous cell carcinoma. Conclusion: Squamous cell carcinoma of the lip generally has a favourable prognosis. Early detection is very important for its successful treatment

How should donors give foreign aid? Project aid versus budget support

Working paper GATE 2008-13 ; CREPP Working paper (Research Center on Public and Population Economics, HEC School, University of Liege)We develop a theoretical model to compare the two major foreign aid modalities: project aid and budget support. These two modalities have a different impact on the production of 'developmental goods'. Firstly, conditionality can be associated with budget support, but only a subset of the developmental expenses - the observable ones - can be subject to conditionality. Secondly, when using project aid, the donors control the overall allocation of the aid resources. However, we consider that, because of limited harmonisation and coordination, project aid can be associated with a cost of imperfect fit. We develop a unified framework to compare these two modalities where we allow the simultaneous utilisation of both instruments. We show that all the aid should be given via budget support, no matter whether conditionality is used or not. Furthermore, we show that the optimal use of conditionality depends on the recipient's developmental preferences, the productivity of the inputs and the level of aid compared to the recipient's budget: when these parameters are relatively high, conditionality should be enforced. Otherwise, the optimal aid allocation is such that all the aid is given through unconditional budget support. We conclude that conditionality does not always improve the aid effectiveness

KORISNIČKO PRIHVAĆANJE DIGITALIZACIJE HOTELSKIH RESTORANA: PRIMJENA MODELA PROŠIRENOG PRIHVAĆANJA TEHNOLOGIJE

The technology acceptance model and its extensions have been the leading theoretical paradigm in explaining users’ acceptance of smart technologies, including in the hospitality and tourism industry. This study applied a modified technology acceptance model to customer acceptance of a novel digital wine menu application in hotel restaurants in Croatia and Serbia. The results of a self-report survey of 406 respondents analysed using partial least squares structural equation modelling indicated that the perceived ease of use, perceived usefulness and perceived enjoyment explained a substantial proportion of the variance in customers’ behavioural intention to return to the restaurant and/or spread positive word-of-mouth, as well as perceived service quality. The perceived risks of using the technology had a negligible impact on the two outcomes of interest. The results confirm and extend previous research on customers’ technology acceptance in the hospitality sector. The managerial implications of these findings and suggestions for future research are discussed.Model prihvaćanja tehnologije i njegovo proširenje vodeći je teorijski obrazac u istraživanju korisničkog usvajanja pametnih tehnologija općenito pa tako i u ugostiteljstvu i turizmu. U istraživanju je korišten prilagođeni model korisničkog prihvaćanja tehnologije na prihvaćenost novog koncepta digitalne vinske karte i jelovnika u hotelskim restoranima u Hrvatskoj i Srbiji. Rezultati 406 samoispunjujućih upitnika dobiveni su metodom modeliranja strukturnih jednadžbi. Analiza rezultata pokazala je da subjektivni dojam o lakoći korištenja i korisnosti te osobni užitak objašnjava znatna odstupanja u namjeri ponašanja korisnika o povratku u restoran i/ili širenju pozitivne usmene predaje kao i doživljene kvalitete usluge. Dojam rizika povezanog s korištenjem tehnologije imao je zanemariv utjecaj na dva rezultata u fokusu ovog istraživanja koji potvrđuju i proširuju prethodna istraživanja o korisničkom prihvaćanju tehnologije u ugostiteljskom sektoru. Analiziraju se implikacije ovih rezultata za menadžere te se predlažu smjernice za buduća istraživanja

Do free-of-charge public health services impede cost recovery policies in Khartoum state, Sudan?

International audienceWe carried out a household survey in Khartoum state in 2001 to analyse the characteristics of those who receive free public health services and to ascertain whether there are any impediments to cost recovery policies for health care use. Data were collected through interviews based on an adapted questionnaire. Those who had other income, always or sometimes had dependents and visited the health services twice in the previous 3 months were more likely to receive free public healthservices. This does not support claims that beneficiaries of these services are the welloff