Dread and Risk Elimination Premium for the Value of a Statistical Life

The value of a statistical life (VSL) is a widely used measure for the value of mortality risk reduction. As VSL should reflect preferences and attitudes to risk, there are reasons to believe that it varies depending on the type of risk involved. It has been argued that cancer should be considered a “dread disease,” which supports the use of a “cancer premium.” The objective of this study is to investigate the existence of a cancer premium (for pancreatic cancer and multiple myeloma) in relation to road traffic accidents, sudden cardiac arrest, and amyotrophic lateral sclerosis (ALS). Data were collected from 500 individuals in the Swedish general population of 50–74‐year olds using a web‐based questionnaire. Preferences were elicited using the contingent valuation method, and a split‐sample design was applied to test scale sensitivity. VSL differs significantly between contexts, being highest for ALS and lowest for road traffic accidents. A premium (92–113%) for cancer was found in relation to road traffic accidents. The premium was higher for cancer with a shorter time from diagnosis to death. A premium was also found for sudden cardiac arrest (73%) and ALS (118%) in relation to road traffic accidents. Eliminating risk was associated with a premium of around 20%. This study provides additional evidence that there exist a dread premium and risk elimination premium. These factors should be considered when searching for an appropriate value for economic evaluation and health technology assessment.     

Governing Project-based Firms: Promoting Market-like Processes within Hierarchies

This article takes an empirical point of departure in an in-depth study of an R&D organization that was transformed into a strongly project-based organization. As demonstrated in the analysis, its mode of governance differed radically from traditional bureaucratic and cultural conceptions of governance. Instead the new “rules-of-the-game” introduced amounted to creating an institutional framework, promoting new individual responsibilities and enabling lower level market-like processes of self-organizing discovery. The specific set-up used, included anew organization structure, new responsibilities, etc and the use of “prices”, playing a role both in shaping incentives and guiding knowledge work. The interpretation put forward relies on combining economic theories of governance with more “fine-grained” organization theories, and suggests that there is some discretion for top managers to engage in the design of a market-promoting mode of governance for their project-based firms. This revised version was published online in July 2006 with corrections to the Cover Date.     

The Intervention Project on Absence and Well-being (IPAW): Design and results from the baseline of a 5-year study

This paper presents the background, design and baseline results of the Intervention Project on Absence and Well-being (IPAW). IPAW is a 5-year psychosocial work environment intervention study including 22 intervention and 30 control work-sites from three different types of work-site (a large pharmaceutical company, municipal technical services, and municipal nursing homes) in Copenhagen, Denmark. The baseline survey reported in this paper was conducted in 1996-97, and the cohort was followed until 2002. Interventions took place during 1996-98 at the organizational and interpersonal level and focused on psychological demands, social support, control, meaning of work, and predictability. The main end-points are self-rated health, perceived stress, absence from work, job satisfaction, and labour turnover. Analyses of the baseline data show good reliability of the psychosocial scales and a number of clear associations between psychosocial work environment factors and health indicators. The baseline data also demonstrate several discrepancies between the planned design of the study and the actual implementation of the project in practice.     

A spatial analysis of indigenous cover patterns and implications for ecological restoration in urban centres,New Zealand

High levels of endemism, the sensitivity of species that have evolved without humans, and the invasion of exotic species have all contributed to severe depletion of indigenous biodiversity in New Zealand. We considered the contribution that urban restoration can make to maximising biodiversity by analysing landcover patterns from two national databases along an urban–rural gradient. Thirteen of 20 land environments in New Zealand are represented in cities, and nearly three-quarters of all acutely threatened land environments are represented within 20 km of city cores nationally. Despite this, remaining indigenous landcover is low within urban cores, with less than 2% on average, but increasing to more than 10% on average in the periurban zone. Threatened lowland environments are most commonly represented within cities, and least represented within protected natural areas. Restoration of existing urban habitat is insufficient to halt biodiversity loss. Ecosystem reconstruction is required to achieve a target of 10% indigenous cover within cities. A co-ordinated national urban biodiversity plan to address issues beyond a local and regional focus is needed. Analysis of national patterns of urban land environments, indigenous cover and remnant ecosystems will support action at a regional and local level while enhancing national and global biodiversity goals.     

Shareholder activism among portfolio managers: rational decisions or 15 minutes of fame?

This paper investigates shareholder activism by observing Swedish portfolio managers’ behavior at firms’ annual general meetings. Institutional shareholders’ voting behavior and tendencies for raising opinions at the general meetings are related to firm characteristics, suggested by both agency theory and institutional perspectives. The results show that institutional shareholders are more likely to be active in large firms, which appear a lot in media, and have a large proportion of institutional ownership. Portfolio managers appear not to consider bad firm performance as a reason for targeting firms. Instead, managers’ behavior is consistent with the institutional notion that they benefit from the activism themselves, without trying to improve target firms’ performance. In view of this notion, it is rational for managers to be active in large firms, with large media coverage, achieving their 15 minutes of fame at the general meetings.     

To bid or not to bid

This paper discusses the importance of permanent customer relations for firms in an environment where bidding takes place. The analysis is first directed toward the bidding resources per order with special reference to the differences in order rate between permanent and non-permanent customers. The importance for bidding firms to keep close track of order rates for different customer groups is stressed here. In the succeeding analysis the bidding on requests from non-permanent customers is treated as investments in future orders. Here we note the dilemma of firms with low or zero profit margins, which are likely to bid on too many bids, thus incurring higher bidding costs than their more profitable competitors.     

A QUARTET OF SEMIGROUPS FOR MODEL SPECIFICATION,ROBUSTNESS, PRICES OF RISK,AND MODEL DETECTION

A representative agent fears that his model, a continuous time Markov process with jump and diffusion components, is misspecified and therefore uses robust control theory to make decisions. Under the decision maker's approximating model, cautious behavior puts adjustments for model misspecification into market prices for risk factors. We use a statistical theory of detection to quantify how much model misspecification the decision maker should fear, given his historical data record. A semigroup is a collection of objects connected by something like the law of iterated expectations. The law of iterated expectations defines the semigroup for a Markov process, while similar laws define other semigroups. Related semigroups describe (1) an approximating model; (2) a model misspecification adjustment to the continuation value in the decision maker's Bellman equation; (3) asset prices; and (4) the behavior of the model detection statistics that we use to calibrate how much robustness the decision maker prefers. Semigroups 2, 3, and 4 establish a tight link between the market price of uncertainty and a bound on the error in statistically discriminating between an approximating and a worst case model. (JEL: C00, D51, D81, E1, G12)     

Communicating equality through policy documents: On legitimacy,double logic and stable translations

This article discusses gender mainstreaming (GMS) as a strategy to implement gender equality in public work organizations by analysing discourse in terms of the theoretical notions of translation and circulation in organizations to shed light on how gender equality and the mainstreaming strategy are formulated in the documents which govern the Swedish fire and rescue services. More specifically, it looks at how the goals regarding gender equality are circulated and translated. The results show that gender equality as a practice is created in the translation of national goals in terms of the local context and its specific gender equality challenges. Furthermore, the article discusses how vague formulations in the documents are stabilized through circulation between the government and the public agency in question. The results indicate the central role played by maintaining stable translations over time and the presence of a double logic of change in the processes, as well as the importance of legitimizing gender equality initiatives.     

Perceived social support among adolescents in Residential Youth Care

Social support may be of particular importance for vulnerable adolescents' development and health and can help them to cope with stressful life events. However, knowledge of perceived social support among adolescents in Residential Youth Care (RYC) is sparse. The present study therefore aimed to investigate perceived social support among adolescents in Norwegian RYC (N = 304, mean age 16.3 years, girls 57.2%), using a short form of the Social Support Questionnaire. The results were compared with adolescents in the general population. The findings revealed that adolescents in RYC reported a lower number of support persons compared with the general population. Both populations reported a decreasing number of support persons as they aged, except for girls in RYC. The adolescents in both populations were satisfied with the support perceived, especially those with the highest number of support persons. However, social support providers differed between the two populations; RYC adolescents reported their extended family, other sources of support, and the institutional staff more often and their parents less. The findings are important for adolescents living in RYC, as knowledge of their social support network could influence the current practices and ensure contact with important support persons, affecting their development and health.