Making Inter-country Comparison of Life Expectancy Inequality Sensitive

Two populations with the sameoverall longevity but different age andage-specific-mortality profiles may produce avariety of differences in terms of issues thatare relevant for development policy. A simplemethod of comparing countries has beensuggested in this paper, which is sensitive tosome of these differences that are usuallyhidden under life expectancy figures. In theprocess, some of the recent attempts inadjusting life expectancy for `inequality' havebeen critically examined.     

Heterogeneous Submission Behavior and its Implications for Success in Innovation Contests with Public Submissions

Innovation contests are increasingly adopting a format where submissions are viewable by all contestants and the information structure changes during the contest. In such an “unblind” format, contestants must weigh the costs of revealing their submissions against the benefits of improving their submissions through emerging information. We take a closer look at how contestants solve problems in innovation contests with public submission of solutions—that is, unblind contests, by examining the implications of their submission behavior for contest outcomes. We analyze the submission behavior in terms of three dimensions: the position of first submission by the contestant, the number of submissions the contestant makes, and the length of active participation by the contestant. The econometric analysis of a large dataset of unblind innovation contests and participating contestants indicates that, despite the potential for free riding and intellectual property loss from disclosure of submissions, contestants who have a lower position of first submission are more likely to succeed in the contest. Further, we find some evidence of a curvilinear relationship between a contestant's number of submissions and her likelihood of success, indicating a potential “quality–quantity” trade‐off in unblind innovation contests. Finally, our findings indicate that increasing the length of participation in a contest has a positive effect on a contestant's likelihood of success. Departing from prior studies on innovation contests, where a contestant's success is assumed to be a function of her prior experience and problem‐solving skills, our study provides new empirical evidence that, in innovation contests with public submissions, the submission behavior of a contestant also plays an explanatory role in a contestant's success.     

Managing the Performance Trade‐Offs from Partner Integration: Implications of Contract Choice in R&D Projects

Formal contracts represent an important governance instrument with which firms exercise control of and compensate partners in R&D projects. The specific type of contract used, however, can vary significantly across projects. In some, firms' govern partnering relationships through fixed‐price contracts, whereas in others, firms' use more flexible time and materials or performance‐based contracts. How do these choices affect the costs and benefits that arise from greater levels of partner integration? Furthermore, how are these relationships affected when the choice of contract is misaligned with the scope and objectives of the partnering relationship? Our study addresses these questions using data from 172 R&D projects that involve partners. We find that, (i) greater partner integration is associated with higher project costs for all contract types; (ii) greater partner integration is associated with higher product quality only in projects that adopt more flexible time and materials or performance‐based contracts; and (iii) in projects where the choice of contract is misaligned with the scope and objectives of the partnering relationship, greater partner integration is associated with higher project costs, but not with higher product quality. Our results shed light on the subtle interplay between formal and relational contracting. They have important implications for practice, with respect to designing optimal governance structures in partnered R&D projects.     

Multi-Dimensional Deprivation in India During and After the Reforms: Do the Household Expenditure and the Family Health Surveys Present Consistent Evidence?

This paper uses the recent approach of multidimensional deprivation measures to provide a comprehensive and wide ranging assessment of changes to living standards in India during the period, 1992/93–2004/5. This covers the reforms and the immediate post reforms time periods. The study is the first to be based on the simultaneous use of two parallel data sets, namely the National Sample Survey (NSS) and National Family Health Survey (NFHS) data sets, covering proximate rounds and near identical time periods. The results allow a check of consistency on the picture of deprivation in India between these two data sets. The study is conducted both at regionally disaggregated levels and by socio economic groups. The deprivation dimensions range widely from the conventional expenditure dimensions to non-expenditure dimensions such as access to drinking water and clean fuel, to health dimensions such as child stunting and the mother’s BMI. The use of decomposable deprivation measures allows the identification of regions, socio economic groups and deprivation dimensions that are contributing more than others to total deprivation.     

Cost sharing in a job scheduling problem

A set of jobs need to be served by a server which can serve only one job at a time. Every job has a processing time and incurs cost due to waiting (linear in its waiting time). The jobs share their costs using monetary transfers. We provide an axiomatic characterization of the Shapley value solution for this problem.     

Fordham symposium on ridge regression:introduction

The symposium was held on July 26 and 27, 1983 at the scenic top floor Faculty Lounge of the Leon Lowenstein Center, a part of the Lincoln Center campus of Fordham University in New York. It was attended by about forty people from all over, as represented by the affiliations of the authors. This issue of Communications in Statisticsis devoted to the Fordham symposium. This introduction is limited to an overview with highlights, since abstracts accompany the papers.

The “call for papers” issued in November 1982 indicated that ridge methods and multicollinearity problems would be the main theme, and that both methodological and applied papers will be included.     

Knowing One’s Lot in Life Versus Climbing the Social Ladder: The Formation of Redistributive Preferences in Urban China

This paper examines, how individual preferences for redistribution in general and redistribution to improve access to education, improve social protection for the poor, reduce income inequality and reduce unemployment depend on beliefs about what determines one’s lot in life and self-assessed prospects for climbing the social ladder in urban China. We find that beliefs about what determine one’s lot in life and subjective perceptions of future mobility are correlated with preferences for redistribution. We find that those who believe one’s lot in life is outside their control are generally more likely to favour redistribution. We show that this result is consistent with the existence of an altruism effect among the rich and entitlement effect among the poor. These findings are robust to the inclusion of control variables for the respondent’s personal characteristics and the location in which he or she lives.     

Insights into the Societal Risk of Nuclear Power Plant Accidents

The elements of societal risk from a nuclear power plant accident are clearly illustrated by the Fukushima accident: land contamination, long‐term relocation of large numbers of people, loss of productive farm area, loss of industrial production, and significant loss of electric capacity. NUREG‐1150 and other studies have provided compelling evidence that the individual health risk of nuclear power plant accidents is effectively negligible relative to other comparable risks, even for people living in close proximity to a plant. The objective of this study is to compare the societal risk of nuclear power plant accidents to that of other events to which the public is exposed. We have characterized the monetized societal risk in the United States from major societally disruptive events, such as hurricanes, in the form of a complementary cumulative distribution function. These risks are compared with nuclear power plant risks, based on NUREG‐1150 analyses and new MACCS code calculations to account for differences in source terms determined in the more recent SOARCA study. A candidate quantitative societal objective is discussed for potential adoption by the NRC. The results are also interpreted with regard to the acceptability of nuclear power as a major source of future energy supply.     

Demand Forecast Sharing in Supply Chains

This paper examines the incentives of a manufacturer and a retailer to share their demand forecasts. The demand at the retailer is a linearly decreasing function of price. The manufacturer sets the wholesale price first, and the retailer sets the retail price after observing the wholesale price. Both players set their prices based on their forecasts of demand. In the make‐to‐order scenario, the manufacturer sets the production quantity after observing the actual demand; in the make‐to‐stock scenario, the manufacturer sets the production quantity before the demand is realized. In the make‐to‐order scenario, we show that sharing the forecast unconditionally by the retailer with the manufacturer benefits the manufacturer but hurts the retailer. We also demonstrate that a side payment contract cannot induce Pareto‐optimal information sharing equilibrium, but a discount based wholesale price contract can. The social welfare as well as consumer surplus is higher under the discount contract, compared with under no information sharing. In the make‐to‐stock scenario, the manufacturer realizes additional benefits in the form of savings in inventory holding and shortage costs when forecasts are shared. If the savings from inventory holding and shortage costs because of information sharing are sufficiently high, then a side payment contract that induces Pareto‐optimal information sharing is feasible in the make‐to‐stock scenario. We also provide additional managerial insights with the help of a computational study.