A Bayesian method of distinguishing unit root from stationary processes based on panel data models with cross-sectional dependence

In this paper we develop a Bayesian approach to detecting unit roots in autoregressive panel data models. Our method is based on the comparison of stationary autoregressive models with and without individual deterministic trends, to their counterpart models with a unit autoregressive root. This is done under cross-sectional dependence among the error terms of the panel units. Simulation experiments are conducted with the aim to assess the performance of the suggested inferential procedure, as well as to investigate if the Bayesian model comparison approach can distinguish unit root models from stationary autoregressive models under cross-sectional dependence. The approach is applied to real exchange rate series for a panel of the G7 countries and to a panel of US nominal interest rates data.     

Attitudes as an Expression of Knowledge and “Political Anchoring”: The Case of Nuclear Power in the United Kingdom

Attitudes toward the use of nuclear energy pose fundamental issues in the political debate about how to meet future energy needs. Development of new nuclear power facilities faces significant opposition both from knowledgeable individuals who display an understanding of the risks attached to various forms of power generation and those who follow strict politically based ideological dogmas. This article employs data from a 2005 Eurobarometer survey of UK citizens to examine the influence of both political preferences and knowledge in explaining support of nuclear power. Findings reveal that attitudes about nuclear power are highly politically motivated while the influence of knowledge about radioactive waste is dependent upon beliefs about the consequences of nuclear energy use. Perceptions of being informed about radioactive waste and trust in sources providing information about radioactive waste management also predict attitudes toward nuclear power generation.     

Pharmaceutical Pricing in Europe: Weighing up the Options

Rising healthcare costs, particularly pharmaceutical expenditures, have led to the implementation of several pharmaceutical pricing regulations and policies throughout the world. This paper undertakes a critical review of current policies, along with a discussion of alternatives for both on‐patent and off‐patent drug pricing mechanisms. Traditional direct and indirect price controls have failed to balance the objectives of efficiency and equity. Direct price controls do not restrain growth of costs and may not address the need for innovation. Indirect price controls fail to contain costs and do little to create a competitive off‐patent pharmaceutical market. For the on‐patent drug markets, we evaluate the use of profit controls, government purchase or auction of patents and Ramsey pricing. Each of these has its own merit, yet the integration of the often separate price and reimbursement decision‐making processes would seem to hold the most promise for governments and purchasers to obtain value for money. This approach could send signals to the industry to help direct research towards clinically relevant areas.     

A theory of instrumental and existential rational decisions: Smith,Weber, Mauss,Tönnies after Martin Buber

This paper proffers a dialogical theory of decision-making: decision-makers (DMs) are engaged in two modes of rational decisions, instrumental and existential. Instrumental rational decisions take place when the DM views the self externally to the objects, whether goods or animate beings. Existential rational decisions take place when the DM views the self in union with such objects. While the dialogical theory differs from Max Weber’s distinction between two kinds of rationality, it follows Martin Buber’s philosophical anthropology. The paper expounds the ramifications of the dialogical theory in understanding structures of exchange considering assessments of diverse thinkers.