Retransformation bias in the adjacent art price index

The literature on hedonic price indices, such as the adjacent art price index, often uses a logarithmic transformation of the price data to deal with the non-normality. However, this creates the problem of retransforming the predictions back to an economically meaningful scale. This paper investigates the impact of dealing with the retransformation problem for estimates of art market returns. The empirical results show how failure to allow for retransformation may result in a biased price indexRetransformation; heteroskedasticity; Picasso; hedonic prices

Measurement and explanation of socioeconomic inequality in health with longitudinal data

This paper presents a method for the measurement of changes in health inequality and income-related health inequality over time in a population. For pure health inequality (as measured by the Gini coefficient) and income-related health inequality (as measured by the concentration index), we show how measures derived from longitudinal data can be related to cross section Gini and concentration indices that have been typically reported in the literature to date, along with measures of health mobility inspired by the literature on income mobility. We also show how these measures of mobility can be usefully decomposed into the contributions of different covariates. We apply these methods to investigate the degree of income-related mobility in the GHQ measure of psychological well-being in the first nine waves of the British Household Panel Survey (BHPS). This reveals that dynamics increase the absolute value of the concentration index of GHQ on income by 10%.Health inequalities, mobility, Gini and concentration indices, mental health, BHPS

The role of tobacco taxes in starting and quitting smoking

The annual five per cent in real terms increase in tobacco taxes proposed in the recent White Paper on smoking has reaffirmed the commitment of successive United Kingdom governments to above inflation increases in tobacco taxation to encourage people to stop smoking. This paper presents evidence on the determinants of starting and quitting smoking using data from the British 'Health and Lifestyle Survey' and is the first to identify tax elasticities for starting and quitting smoking using British data. Self-reported individual smoking histories are coupled with a long time series for the tax rate on cigarettes to construct a longitudinal data set. Estimates are obtained for the impact of above inflation tax rises on the age of starting smoking and the number of years of smoking. The estimates of the tax elasticity of the age of starting smoking are +0.16 for men and +0.08 for women. The estimates of the tax elasticity of quitting are - 0.60 for men and -0.46 for women. These are robust to different specifications.Smoking initiation and cessation; Tobacco taxes; Duration analysis.

Allowing for heterogeneity in the decomposition of measures of inequality in health

This paper shows how recently developed regression-based methods for the decomposition of health inequality can be extended to incorporate heterogeneity in the responses of health to the explanatory variables. We illustrate our method with an application to the GHQ measure of psychological well-being taken from the British Household Panel Survey. The results suggest that there is an important degree of heterogeneity in the association of health to explanatory variables across birth cohorts and genders which, in turn, accounts for a substantial percentage of the inequality in observed health.Health inequalities, heterogeneity, decomposition analysis, panel data

Addictive goods and taxes: A survey from an economic perspective

In this paper we present an overview of the empirical evidence about the effectiveness of using taxation to influence addictive behaviour, and we address the normative question: should greater use be made of sin taxes to fund health care? First, we raise the desirability of linking health care financing and taxation of addictive goods, taking into account efficiency and equity principles. Secondly we present the approaches adopted by economists in the study of addiction and their policy implications. At the end, the empirical evidence of effectiveness of taxes is summarised.Addiction, tobacco, alcohol, sin taxes

The importance of individual heterogeneity in the decomposition of measures of socioeconomic inequality in health: An approach based on quantile regression

This paper shows how recently developed regression-based methods for the decomposition of health inequality can be extended to incorporate individual heterogeneity in the responses of health to the explanatory variables. We illustrate our method with an application to the Canadian NPHS of 1994. Our strategy for the estimation of heterogeneous responses is based on the quantile regression model. The results suggest that there is an important degree of heterogeneity in the association of health to explanatory variables which, in turn, accounts for a substantial percentage of inequality in observed health. A particularly interesting finding is that the marginal response of health to income is zero for healthy individuals but positive and significant for unhealthy individuals. The heterogeneity in the income response reduces both overall health inequality and income related health inequality.Health inequalities, unobserved heterogeneity, quantile regression

Quality of schooling and inequality of opportunity in health

This paper explores the role of quality of schooling as a source of inequality of opportunity in health. Substantiating earlier literature that links differences in education to health disparities, the paper uses variation in quality of schooling to test for inequality of opportunity in health. Analysis of the 1958 NCDS cohort exploits the variation in type and quality of schools generated by the comprehensive schooling reforms in England and Wales. The analysis provides evidence of a statistically significant and economically sizable association between some dimensions of quality of education and a range of health and health-related outcomes. For some outcomes the association persists, over and above the effects of measured ability, social development, academic qualifications and adult socioeconomic status and lifestyle

Long-term effects of school quality on health and lifestyle: evidence from comprehensive schooling reforms in England

Members of the National Child Development Study cohort attended very different types of secondary schools, as their schooling lay within the transition period of the comprehensive education reform in England and Wales. This provides a natural setting to explore the impact of educational attainment and of school quality on health and health-related behavior later in life. We use a combination of matching methods and parametric regressions to deal with selection effects and to evaluate differences in adult health outcomes and health-related behavior for cohort members exposed to the old selective and to the new comprehensive educational systems

Methods for Evaluating Innovative Health Programs (EIHP): A Multi-Country Study

Designed as a global research initiative, the EIHP project aims at adding to the evidence base of health interventions that have the potential to improve health outcomes in Africa and Asia. The project focuses on rigorous, quantitative evaluations of innovative local initiatives that address the Millennium Development Goals for health: reductions in child and maternal mortality and communicable diseases. This overview brings together the outcomes and lessons from the project for evaluation methods. It draws together the methodological implications of carrying out impact evaluations under very different settings and emphasizes the need to build in evaluations in project designs.Millennium Development Goals; child and maternal health; communicable diseases; impact evaluation; capacity building; Asia; Africa; Latin America

Evaluating Innovative Health Programs: Lessons for Health Policy

The Global Development Network’s (GDN) project “Evaluating Innovative Health Programs” (EIHP), funded by the Bill & Melinda Gates Foundation, seeks to inform policy on the effectiveness of health solutions that have the potential to improve health outcomes in developing countries. It evaluates the impact of nineteen programs from across developing and transition countries that focus on the health-related Millennium Development Goals (MDGs) of reducing child and maternal mortality, and halting and reversing the trend of communicable diseases such as HIV/AIDS, malaria and other diseases. The policy implications of the diverse set of interventions are distinguished between programs that involved earmarking resources, changing incentives, and developing innovative methods of health care delivery.Millennium Development Goals; child and maternal health; communicable diseases; impact evaluation; capacity building; Asia; Africa; Latin America