Parametric discounting

A parametric approach to the problem of selection from amongst alternative investment opportunities is considered in a discounted cash flow framework. The approach employs differential cash flows, an uncertain planning horizon and a nested approach to composing cash flow parameters. This promotes consistent treatment of alternative investments, clarifies the effects of uncertainty, avoids some of the defects of internal rate of return and payback period criteria and allows direct comparison of best and next best options as primal and dual versions of the same model. Net present value, internal rate of return, annual average cost or payback period assessments may be selected post analysis. A domestic wall insulation example is used for illustrative purposes. This example is related to the hydroelectric power development decision which gave rise to the approach.     

Family Therapy for Chronic Childhood Asthma†

Family therapy has been increasingly advocated in the management of chronic severe childhood asthma. At the Adelaide Children's Hospital we are currently engaged in a trial of family therapy in chronic childhood asthma. Effectiveness of family therapy is judged with a twelve-month follow-up on reduction of symptoms, drug use, emergency physician visits and hospital admissions and on improvement in school attendance and social and family functioning compared to the previous two years experience of the treated patients and compared to a cohort of untreated patients Of similar severity. We are particularly interested in studying different patterns of conflict detouring (child centredness, triangulation and fixed coalition) and the different therapeutic strategies required.