Cost‐Benefit Analysis for Optimization of Risk Protection Under Budget Constraints

Cost‐benefit analysis (CBA) is commonly applied as a tool for deciding on risk protection. With CBA, one can identify risk mitigation strategies that lead to an optimal tradeoff between the costs of the mitigation measures and the achieved risk reduction. In practical applications of CBA, the strategies are typically evaluated through efficiency indicators such as the benefit‐cost ratio (BCR) and the marginal cost (MC) criterion. In many of these applications, the BCR is not consistently defined, which, as we demonstrate in this article, can lead to the identification of suboptimal solutions. This is of particular relevance when the overall budget for risk reduction measures is limited and an optimal allocation of resources among different subsystems is necessary. We show that this problem can be formulated as a hierarchical decision problem, where the general rules and decisions on the available budget are made at a central level (e.g., central government agency, top management), whereas the decisions on the specific measures are made at the subsystem level (e.g., local communities, company division). It is shown that the MC criterion provides optimal solutions in such hierarchical optimization. Since most practical applications only include a discrete set of possible risk protection measures, the MC criterion is extended to this situation. The findings are illustrated through a hypothetical numerical example. This study was prepared as part of our work on the optimal management of natural hazard risks, but its conclusions also apply to other fields of risk management.     

Innovation Propensity in the EU Candidate Countries

Innovation activities in transition economies generally lag behind developed economies. This is also the case in the latest group of EU candidate countries whose innovation performance lags behind EU-27 average. In this paper we analyze the innovation propensity of firms in EU candidate countries (Croatia, FYR Macedonia, Montenegro and Turkey). The analysis relies on the Business Environment and Enterprise Performance Survey (BEEPS 2009) data. By employing probit model we have identified determinants of innovation propensity in analyzed countries. The results point to external factors such as the subsidies, customer pressure to innovate, obstacles from high tax burdens, political instability and inadequate education of workforce as significant positive predictors. Based on the results, few innovation policy recommendations are proposed.     

Associations between stress at work and attitudes towards retirement in hospital physicians

There is a need to understand the associations between attitudes towards retirement in specific occupations and various psychosocial and work-related factors. This study identified correlates of retirement thoughts and retirement preference in hospital physicians. The sample comprised 447 (251 male and 196 female) physicians from three hospital districts in Finland. After adjustment for gender, age and salary, minor psychiatric morbidity increased likelihood of retirement thoughts and retirement preference. Retirement thoughts and retirement preference were more common in doctors reporting low job control, poor teamwork and unjust supervision than in doctors perceiving their working conditions more favorably. Work preference was associated with high overwork. The associations of work characteristics with retirement thoughts and retirement preference largely persisted after control for indicators of health and social circumstances. In conclusion, in addition to demographic and financial factors and health, retirement attitudes in hospital physicians seem to be related to organizational and managerial factors that are potentially amendable to intervention. This has implications for retaining hospital physicians who might otherwise retire.     

Do social workers avoid the dilemmas of work with clients?

This article is devoted to Lipsky's suggestion that the purpose of street-level policies is to establish and justify patterns of behaviour that enable street-level bureaucrats to avoid the dilemmas provoked by uncertain working conditions. Based on a review of relevant literature as well as on case studies in the culture of social work service organisations by the authors, the article suggests that two kinds of street-level policies are described by the research. The first one is consistent with the aforementioned idea by Lipsky and follows the wish of social service workers to avoid the dilemmas of their work with clients without trying to change those uncertain conditions that provoke these dilemmas. The actors of the second kind of street-level policy try to negotiate with relevant partners and to change uncertain working conditions that are at the roots of their dilemmas. Both kinds of street-level policy are described by means of empirical examples and their substantive features are summarised.     

The Emergence of a Specific Kind of Individualization Habitus Among Divorced Women

Previous research has consistently found that divorce is associated with psychological distress. This study expands existing research by considering age, education, employment, income, length of divorce, number of children, and economic hardship as predictors of postdivorce psychological distress among divorced women in Iran. This study examines 800 divorced women in Iran 30 to 48 years old who had been divorced for no more than 2 years. Results demonstrated that education, number of children, and economic hardship together predict 63.6% of the variance in psychological distress among divorced women. Economic hardship was found to be the strongest contributor. Recommendations for researchers and implications for clinicians are discussed.     

What Coy Smiles Say About Positive Shyness in Early Infancy

Positive shyness is a universal emotion with the specific social function of regulating our interactions by improving trust and liking, and showing politeness. The present study examined early infant production of coy smiles during social interactions as a measure of positive shy behavior. Eighty 4‐month‐olds were experimentally observed during three types of interactions in front of a mirror in which (1) the infant only sees him or herself, (2) the infant only sees the other person (mother, father, or stranger), and (3) the infant sees both him or herself and the other person. Infants produced more coy smiles during the interaction with a stranger than during the interactions with their mother or their father, or when they could see only themselves in front of a mirror. Infants also produced more coy smiles when they could see their self‐reflection during the interaction than when they could not. Our results support the assumption that coy smiles indicate an early emerging emotional reaction with an important adaptive function during social situations involving novel persons and when special attention is given to the child.