Independent Utility Regulators: Lessons from Monetary Policy

This paper explores the similarity of the underlying economic problems that lead to the establishment of (a) independent central banks to operate national monetary policies and (b) independent regulatory agencies for telecommunications and other utility service industries. We show that, in both cases, the adoption of agencies inde- pendent of government results from the need to achieve credibility and a reputation for economically sound long-run behaviour while preserving signi¯cant discretion to handle unanticipated events. We show that this solution is superior to policy rules that are ¯xed in advance. Both for central banks and regulatory agencies, what is re- quired are institutions that provide limited and accountable discretion within a clear policy framework, for example via high levels of accountability and transparency in their decision making processes. On the basis of a review of the empirical literature, we argue that central banks with superior governance arrangements, particularly on accountability and transparency, out-perform those with inferior arrangements and we discuss how this work might be extended to utility regulatory agencies.Monetary policy, credibility, regulation, under-investment, delegation.

Patient Welfare and Patient Compliance: An Empirical Framework for Measuring the Benefits from Pharmaceutical Innovation

The main goal of this paper is to develop an empirical framework for evaluating the patient welfare benefits arising from pharmaceutical innovation. Extending previous studies of the welfare benefits from innovation (Trajtenberg, 1990; Hausman, 1996), this paper unpacks the separate choices made by physicians and patients in pharmaceutical decisionmaking and develops an estimable econometric model which reflects these choices. Our proposed estimator for patient welfare depends on (a) whether patients comply with the prescriptions they receive from physicians and (b) the motives of physicians in their prescription behavior. By focusing on compliance behavior, the proposed welfare measure reflects a specific economic choice made by patients. We review evidence that the rate of noncompliance ranges up to 70%, suggesting an important gulf between physician prescription behavior and realized patient welfare. Since physicians act as imperfect but interested agents for their patients, the welfare analysis based on compliance must account for the nonrandom selection of patients into drugs by their physicians. The key contribution of this paper resides in integrating the choices made by both physicians and patients into a unified theoretical framework and suggesting how the parameters of such a model can be estimated from data.

Tort Justice Reform

This Article calls for a comprehensive reform of public tort law with respect to law enforcement conduct. It articulates an effective and equitable remedial regime that reconciles the aspirational goals of public tort law with the practical realities of devising payment and disciplinary procedures that are responsive to tort settlements and judgments. This proposed statutory scheme seeks to deter law enforcement misconduct without disincentivizing prudent officers from performing their duties or overburdening them with extensive litigation. Rather than lamenting the dissolution of Bivens v. Six Unknown Named Agents of Federal Bureau of Narcotics or the insurmountability of qualified immunity, reform advocates should acknowledge that the very distinction between constitutional and common-law torts is arbitrary for purposes of individual officer deterrence and accountability. By examining the relationship between Fourth Amendment excessive force jurisprudence and the common-law torts of assault, battery, and negligence, this Article highlights that the analytical distinction between those legal doctrines imposes an improper demarcation for civil liability. If law enforcement agencies concern themselves solely with the constitutionality of their employees’ conduct, training concentrates on the instant moment in which deadly force is used without substantial reflection on the conduct, including antecedent negligence, that led to the confrontation. At the same time, whether an officer can be held personally accountable should not be based on the intentionality of the conduct; rather, the reprehensibleness of the conduct is a more appropriate benchmark for individual liability. By acknowledging that tort law addresses various types of law enforcement activity that do not necessarily rise to the level of constitutional or criminal infractions, legislative bodies can begin conceptualizing public tort law as an important component of criminal justice reform. But to do so, we need tort justice reform

Using Satellites to Probe Extrasolar Planet Formation

Planetary satellites are an integral part of the heirarchy of planetary systems. Here we make two predictions concerning their formation. First, primordial satellites, which have an array of distinguishing characteristics, form only around giant planets. If true, the size and duration of a planetary system's protostellar nebula, as well as the location of its snow line, can be constrained by knowing which of its planets possess primordial satellites and which do not. Second, all satellites around terrestrial planets form by impacts. If true, this greatly enhances the constraints that can be placed on the history of terrestrial planets by their satellites' compositions, sizes, and dynamics

Epidemiology of Alzheimer Disease

The global prevalence of dementia has been estimated to be as high as 24 million, and is predicted to double every 20 years until at least 2040. As the population worldwide continues to age, the number of individuals at risk will also increase, particularly among the very old. Alzheimer disease is the leading cause of dementia beginning with impaired memory. The neuropathological hallmarks of Alzheimer disease include diffuse and neuritic extracellular amyloid plaques in brain that are frequently surrounded by dystrophic neurites and intraneuronal neurofibrillary tangles. The etiology of Alzheimer disease remains unclear, but it is likely to be the result of both genetic and environmental factors. In this review we discuss the prevalence and incidence rates, the established environmental risk factors, and the protective factors, and briefly review genetic variants predisposing to disease

IR Kuiper Belt Constraints

We compute the temperature and IR signal of particles of radius $a$ and albedo $\alpha$ at heliocentric distance $R$, taking into account the emissivity effect, and give an interpolating formula for the result. We compare with analyses of COBE DIRBE data by others (including recent detection of the cosmic IR background) for various values of heliocentric distance, $R$, particle radius, $a$, and particle albedo, $\alpha$. We then apply these results to a recently-developed picture of the Kuiper belt as a two-sector disk with a nearby, low-density sector (40<R<50-90 AU) and a more distant sector with a higher density. We consider the case in which passage through a molecular cloud essentially cleans the Solar System of dust. We apply a simple model of dust production by comet collisions and removal by the Poynting-Robertson effect to find limits on total and dust masses in the near and far sectors as a function of time since such a passage. Finally we compare Kuiper belt IR spectra for various parameter values.Comment: 34 pages, LaTeX, uses aasms4.sty, 11 PostScript figures not embedded. A number of substantive comments by a particularly thoughtful referee have been addresse