Bringing Social Standards into Project Evaluation Under Dynamic Uncertainty

Society often sets social standards that define thresholds of damage to society or the environment above which compensation must be paid to the state or other parties. In this article, we analyze the interdependence between the use of social standards and investment evaluation under dynamic uncertainty where a negative externality above a threshold established by society requires an assessment and payment of damages. Under uncertainty, the party considering implementing a project or new technology must not only assess when the project is economically efficient to implement but when to abandon a project that could potentially exceed the social standard. Using real-option theory and simple models, we demonstrate how such a social standard can be integrated into cost-benefit analysis through the use of a development option and a liability option coupled with a damage function. Uncertainty, in fact, implies that both parties interpret the social standard as a target for safety rather than an inflexible barrier that cannot be overcome. The larger is the uncertainty, in fact, the greater will be the tolerance for damages in excess of the social standard from both parties.     

A generalized analysis of the dependence structure by means of ANOVA

The multiple non-symmetric correspondence analysis (MNSCA) is a useful technique for analysing the prediction of a categorical variable through two or more predictor variables placed in a contingency table. In MNSCA framework, for summarizing the predictability between criterion and predictor variables, the Multiple-TAU index has been proposed. But it cannot be used to test association, and for overcoming this limitation, a relationship with C-Statistic has been recommended. Multiple-TAU index is an overall measure of association that contains both main effects and interaction terms. The main effects represent the change in the response variables due to the change in the level/categories of the predictor variables, considering the effects of their addition. On the other hand, the interaction effect represents the combined effect of predictor variables on the response variable. In this paper, we propose a decomposition of the Multiple-TAU index in main effects and interaction terms. In order to show this decomposition, we consider an empirical case in which the relationship between the demographic characteristics of the American people, such as race, gender and location (column variables), and their propensity to move (row variable) to a new town to find a job is considered.     

Editorial: Forum on recent developments on finitely additive probabilities and coherence

Statistical Methods & Applications -     

Book reviews

Law, socialism and social emancipation

Books Reviewed: M. Los, Communist Ideology, Law and Crime. St. Martin's Press: New York. 1988.

Paul Q. HirstLaw, Socialism and Democracy. London: Allen and Unwin 1986.

Citoyens et citoyennes

Review of: C. Pateman (1988), The Sexual Contract, Stanford University Press.

H.M. Hernes (1987), Welfare State and Women Power, Norwegian University Press.

Franco Crespi (1989), Azione sociale e potere, Il Mulino     

Growth,Inequality and Poverty in Emerging and Transition Economies

This paper aims to explore the quality of economic growth in a sample of 50 emerging and transition economies (ETEs), which are countries experiencing a process of fast growth and institutional change. Economic growth during 1995–2006 is regressed against poverty, inequality and human development variables using OLS cross-country regression models. The main findings are that growth did not reduce poverty and income inequality worsened too. On the one hand, economic growth occurred despite the worsening of income inequality. However, this result does not identify a “U-shaped” Kuznets curve because even after a consistent period of growth, inequality did not decrease and it remained at higher levels. Only countries with higher education levels and public expenditure in strategic dimensions seem to escape from this trap. On the other hand, growth occurred at the expense of an important human development variable i.e., life expectancy, and of an important indicator of democracy, i.e., voice and accountability.     

Similarities and Differences in Competitiveness Among European NUTS2 Regions: An Empirical Analysis Based on 2010–2013 Data

Social Indicators Research - Regional competitiveness is a concept whose definition and applicability is highly debated among scholars. Nevertheless, over recent years it has become widespread...     

Respite and family support services: Responding to the need

Increased focus on the needs of parents and guardians for structured opportunities for temporary relief from care of disabled persons has stimulated policy and implementation initiatives at the state government level on behalf of these families. This article presents qualitative and quantitative data on the need for respite services not only in terms of relief, but as a positive, supportive force in the prevention of permanent placement outside the home. Current services are outlined and issues important to clinicians and managers working with such families are discussed.Planning and Development     

Forum on Benford’s law and statistical methods for the detection of frauds

Statistical Methods & Applications -