Allocating Vote: Health — ‘Needs Assessment’ and an Economics-Based Approach

This paper critiques 'needs assessment' as a basis for allocating public funding of health and disability services and discusses an alternative economics-based approach. In essence, the former approach ignores the effects on health outcomes of health care spending at the margin while the latter focuses explicitly on these considerations. A simple diagrammatic model is introduced that illustrates at a conceptual level the (micro) economic constraints and choices available to policy-makers. Finally, some practical steps and unresolved issues in implementing the economics approach are considered.

Climatic variability and cooperation in rangeland management: a case study from Niger

In this paper, we develop an empirical model of an agro-pastoral system subject to high climatic risk to test the impact of rainfall variability on livestock densities, land allocation patterns and herd mobility observed at the community level. Also, because grazing land is a common-pool resource, we determine the impact of cooperation on these decision variables. To capture different abilities of communities to manage these externalities, we construct indices comprised of factors considered to affect the costliness of achieving successful cooperation found in the collective action literature. We then test hypotheses regarding the impact of rainfall variability and cooperation using data collected in a semi-arid region of Niger. Results indicate that rainfall variability first leads to higher and then lower stock densities, indicating that benefits of accumulating large herds in variable environments are eventually offset by the higher risks of low production and higher mortality. Communities with characteristics hypothesized to favor cooperation have lower stock densities and greater herd mobility. Neither cooperation nor rainfall variability has a significant impact on the proportion of land allocated to crops vs. common pastures.Environmental management,

Animal health and the role of communities: an example of trypanasomosis control options in Uganda

In many African countries, governments are re-thinking the role of the state in centrally providing certain goods and services. The rights and responsibilities for providing various public goods are being decentralized to lower levels of government administration, and/or being devolved directly to local citizens or user groups themselves. It is thus critical to ask: under what circumstances will local groups provide the socially optimal level of the public good? In this paper, we apply this question to the case of controlling an important vector-borne livestock disease in Uganda, trypanosomosis, which is transmitted by the tsetse fly. We investigate the underlying epidemiology of transmission and different options for control, and the implications for group provision of control, within the framework of a game-theoretic model. Results indicate that individual incentives to uptake tsetse and trypanosomosis control differ widely across different control methods. Since the costs of successfully implementing collective action are affected by individual incentives to participate in collective action, the model predicts which method/s are likely to be successfully implemented at the community level. More broadly, the model highlights under what circumstances community-provision is not likely to be optimal, depending on the underlying epidemiology of the disease, technological parameters, prevailing market characteristics, and socio-cultural conditions.

CEO Pay and Firm Performance: Dynamics, Asymmetries, and Alternative Performance Measures

This study explores the dynamic structure of the pay-for- performance relationship in CEO compensation and quantifies the effect of introducing a more complex model of firm financial performance on the estimated performance sensitivity of executive pay. The results suggest that current compensation responds to past performance outcomes, but that the effect decays considerably within two years. This contrasts sharply with models of infinitely persistent performance effects implicitly assumed in much of the empirical compensation literature. We find that both accounting and market performance measures influence compensation and that the salary and bonus component of pay as well as total compensation have become more sensitive to firm financial performance over the past two decades. There is no evidence that boards fail to penalize CEOs for poor financial performance or reward them disproportionately well for good performance. Finally, the data suggest that boards may discount extreme performance outcomes -both high and low - relative to performance that lies within some `normal' band in setting compensation.

The Diffusion of New Technologies: Evidence From the Electric Utility Industry

This paper investigates the effect of firm size and ownership structure on technology adoption decisions, using data on the electric utility industry. We argue that traditional models of technology diffusion are subject to sample selectivity biases that may overstate the effect of firm size on adoption probabilities. By extending conventional hazard rate models to use information on both adoption and non-adoption decisions, we differentiate between firms' opportunities for adoption and their underlying adoption propensities. The results suggest that large firms and investor-owned electric utilities are likely to adopt new technologies earlier than their smaller and publicly-owned counterparts. Moreover, the selection biases from conventional statistical models can lead one to overstate size effects by a factor of two and to understate ownership structure and factor cost effects by two to four times.

Fundamental Parameters of Cepheids: Masses and Multiplicity

Masses determined from classical Cepheids in binary systems are a primary test of both pulsation and evolutionary calculations. The first step is to determine the orbit from ground-based radial velocities. Complementary satellite data from Hubble, FUSE, IUE, and Chandra provide full information about the system. A summary of recent results on masses is given. Cepheids have also provided copious information about the multiplicity of massive stars, as well as the distribution of mass ratios and separations. This provides some important constraints for star formation scenarios including differences between high and low mass results and differences between close and wide binaries