on the dynamics of demand for leisure and the production of health our article develops and estimates a structural model of household health production that jointly determines the demand for leisure and the demand for consumption for elderly males we use a stochastic dynamic programming framework based on the assumption that an individual maximizes lifetime utility subject to budget and time constraints and a health production function by choosing hours of leisure and levels of consumption of health related and health neutral goods and services moreover we use a very comprehensive health index that combines four scales measuring a variety of dimensions in the quality of life the euler equations derived from our model are estimated using data from six biennial panels of the retirement history survey

an evolutionary and institutional view of the behavior of public and private companies this paper reports on an extensive study designed to explain the variations both within and among three public and three private electric utilities in their impact on environmental quality the more general purpose is to demonstrate the value of a disaggregated model of the behavior of an organization based on the intendedly rational but imperfect choices of its individual members the analysis focuses on what determines the opportunity sets objectives and beliefs of those members and on how the organization aggregates their choices into corporate patterns of action internal features of the organization such as how tasks and authority are divided information processed and individuals recruited and rewarded are thus potentially important explanatory variables provided as is often the case that external pressures and constraints are not perfectly coercive this conceptual framework would appear to be applicable to a wide variety of public private and nonprofit organizations while generating a number of the better known models of firm behavior as special cases it is designed both to provide a framework for constructing explanations of particular past events and to give rise to testable generalizations about the behavior of organizations particularly ones that might be useful for policy purposes this necessarily brief paper presents only the general arguments and results with illustrations from the case material since the case studies suggested much of the theoretical analysis they do not provide strictly independent support for the propositions to be presented for a full account see roberts 1975

demand for home modifications a household production function approach coping with activity limitations that occur in old age is an important issue in the context of increasing life expectancy and the still inevitable onset of chronic conditions in old age elderly households can be viewed as coping with activity limitations by producing functionality with the use of direct inputs that include home modifications a model of the household production of functionality is developed within the general framework of household production function models of health hypotheses generated from this model are tested using a logit model for data from the survey of asset and health dynamics among the oldest old ahead the main findings of the empirical analysis are that the demand for home modifications is fairly income inelastic home modifications and personal care are substitutes to some degree the demand for home modifications increases with years of schooling and that particular health conditions and the use of other assistive devices are important determinants of the demand for

rationality in the analysis of behavioral simulation models an important task in the analysis of a behavioral simulation model is to explain clearly how the model s organizational assumptions lead to its simulated behavior all too often model based arguments involve an uncomfortable leap of logic between equations and consequences this paper proposes two methods of analysis premise description and partial model testing which provide stepping stones between model equations and their simulated consequences premise description examines the bounded rationality of policies or decision functions in the model pointing out the process and cognitive limitations assumed in decisionmaking partial model tests expose the intended rationality of smalt combinations of policies showing that policies produce sensible actions with respect to their premises the application of those methods is illustrated with a simulation model of a sales organization in which sales force productivity is prone to decline the behavior of productivity is traced to dysfunctional interact

unanticipated side effects of successful quality programs exploring a paradox of organizational improvement recent evidence suggests the connection between quality improvement and financial results may be weak consider the case of analog devices inc a leading manufacturer of integrated circuits analog s tqm program was a dramatic success yield doubled cycle time was cut in half and product defects fell by a factor of ten however financial performance worsened to explore the apparent paradox we develop a detailed simulation model of analog including operations financial and cost accounting product development human resources the competitive environment and the financial markets we used econometric estimation interviews observation and archival data to specify and estimate the model we find that improvement programs like tqm can present firms with a tradeoff between short and long run effects in the long run tqm can increase productivity raise quality and lower costs in the short run these improvements can interact with prevailing accounting systems and organizational routines to create excess capacity financial stress and pressure for layoffs that undercut commitment to continuous improvement we explore policies to promote sustained improvement in financial as well as nonfinancial measures of performance

endowments at birth and parents investments in children do parents invest more in higher quality children or do they compensate for lower quality by giving more to children with lower endowments we answer this question in the context of a large scale iodine supplementation programme in tanzania we find that children with higher programme exposure were more likely to receive necessary vaccines and were breastfed for longer siblings of treated children were also more likely to be immunised fertility behavior and investments at the time of birth were unaffected

health behavior health knowledge and schooling the positive correlation between schooling and good health is well documented one explanation is that schooling helps people choose healthier life styles by improving their knowledge of the relationship between health behaviors and health outcomes that is schooling improves the household s allocative efficiency in producing health this empirical study uses direct measures of health knowledge to test this explanation part of the relationship between schooling and the consumption of cigarettes alcohol and exercise is explained by differences in health knowledge however most of schooling s effects on health behavior remain after differences in knowledge are controlled for

prices and health identifying the effects of nutrition exercise and medication choices on blood pressure biomedical studies suggest that a person s behavior matters to health but these studies usually treat human choice as exogenous this study shows that individual choices on nutrient intake exercise and use of medication are influenced by exogenous food prices wages and non labor income using these exogenous variables as instruments for endogenous behavior makes a big difference in the estimated impact of nutrient intake exercise and medication on blood pressure for example application of instrumental variables methods changes the impact of sodium on blood pressure from positive to negative and significant in his 1993 nobel prize speech economic historian robert fogel documented how dramatic improvements in human health and lifespan over the last century have increased labor productivity and economic growth these health improvements were largely ascribed to better nutrition and to an enhanced ability of consumers to transform nutrition information into desired health states at the same time fogel called for joint use of biomedical and economic techniques of analysis so that the consequences of better nutrition for human well being can be more deeply probed the combined techniques would yield insights otherwise unobtainable when relying on one of the disciplines alone fogel s plea for combined techniques rarely has been heeded either in the biomedicine or in the health economics literature biomedical studies adhere strictly to a mind body dualism

the natural logic of management policy making its implications for the survival of an organization a process theoretic approach seldom used but not without promise for organizational behavior research is employed to postulate a process model of the natural logic evident in organizational policy making the model is used to explain how the policies of a sample firm for which 20 years of data are available became adopted and how together with critical events this caused the firm to evolve in particular directions rather than others implications of the study are put forward in terms of identifying pathologies of the policy making process some prescriptions are put forward for the proper control of organizations by supervisory bodies such as boards of directors it is suggested that management science in the form of systematic procedures for adaptive organizational design and updatable cause maps may have an important future role to play in senior management affairs

can personal gasoline permit trading be effective an investigation into permit demand this study proposes a personal gasoline permit trading scheme to limit the total gasoline consumption thus reducing its environmental impact we studied the effectiveness of this scheme by analyzing the permit demand of a gasoline driven vehicle in transportation sector a general utility optimization model is formulated and a cobb douglas utility function is further assumed to analyze the response of permit demand to its price changes with the slutsky decomposition of price effects the results when defined in economic terms indicate that the permit demand of consumers in higher income groups are negatively related to permit price permit demand are also negatively related to permit price for consumers in medium income groups but with positive income effect and the direct relationship between permit demand of lower income groups and the price is defined as a giffen good effect that is for those low income groups when the permit price rises their demand for permits would also increase then us and singapore household expenditure data are used to show comparable results of a pilot personal gasoline permit trading scheme further some regulations on critical parameters such as permit allocation and permit prices in the policy design are proposed to make the scheme feasible in different income groups based on these results implications limitation and suggestions for future study are discussed

schools skills and synapses american society is polarizing proportionately more american youth are graduating from college than ever before at the same time american born youth are graduating from high school at lower rates than 40 years ago this paper reviews and interprets these trends the origins of inequality are examined and policies to alleviate it are analyzed families play a powerful role in shaping adult outcomes the accident of birth is a major source of inequality recent research by cunha and heckman 2007a 2008b shows that about half of the inequality in the present value of lifetime earnings is due to factors determined by age 18 compared to 50 years ago relatively more american children are being born into disadvantaged families where investments in children are smaller than in advantaged families policies that supplement the child rearing resources available to disadvantaged families reduce inequality and raise productivity

the effect of the value of time on food consumption patterns in developing countries evidence from sri lanka this study shows that the opportunity cost of women s time can affect household food consumption patterns in developing countries demand equations for rice bread and the ratio of bread to total cereal consumption are estimated for urban sri lankan households the demand specification which is based on the new household economics includes as explanatory variables the woman s estimated market wage and the household s full income and alternatively observed income wages are estimated using the heckman procedure to correct for sample selection bias

parental preference heterogeneity and human capital inequality abstract in this article i provide an empirical account of the human capital investment behavior of parents in the face of endowment differences among siblings the data set used contains a three wave panel of 4 030 individuals the article presents a rare case in which endowments are measured explicitly health endowments are estimated from dynamic health production functions while educational endowments are obtained from test scores the simple score of the standard raven s colored progressive matrix cpm test is used to measure educational endowments i use estimation procedures that combine an instrumental variables method with panel data estimators to control for endogeneity and heterogeneity the results suggest that parents compensate for initial differences in health but reinforce initial educational differences among siblings hence an educational subsidy aimed at reducing inequality may end up reinforcing the inequality that might exist in the absence of such subsidy when parents invest mor

prenatal care and birthweight production evidence from south america research using us data has shown that increases in prenatal care have positive effects on birthweight and that the existence of unobserved health heterogeneity tends to reduce the measured effect of prenatal care this study extends extant research to the south american countries of bolivia brazil columbia and peru using data from the demographic and health surveys finding a positive effect of increased prenatal care use on birthweight furthermore the largest marginal effect of increased prenatal care use is found at low levels of usage the results highlight both the usefulness of existing methodologies for estimating the effect of prenatal care on birthweight and the importance of extending these methodologies to data from countries other than the usa

gary becker s contributions to economics from his first published work gary becker has consistently strived to extend the domain of economic analysis his interest is in social science broadly defined and he is convinced that economic theory in its established neoclassical form provides the best set of tools for analysing social science questions when he finds an interesting problem on the borderland of what is conventionally thought of as economics and that is where he is looking for his problems he is not worried that he is trespassing on the traditional grounds of sociologists political scientists lawyers anthropologists or biologists on the contrary he clearly delights in showing how economic theory can be brought to bear on such problems he is of course not alone in trying to extend the borders of economics many other scholars have contributed to the movement which some have characterized as economic imperialism becker is one of the most outstanding of the imperialists this review of his work is organized in accordance with the main topics on which becker has worked chronologically his work on the economics of discrimination which grew out of his doctoral dissertation comes first next in order come his fundamental contributions to human capital theory he was also one of the founders of the so called new theory of consumption which is no longer so new and he has made important contributions to the economic study of crime and punishment and to the economics of political decision making some of his most original work is in the economics of the family where he provides economic explanations of such questions as marriage divorce and procreation after the topic by topic review of becker s contributions i will try to provide a more general evaluation of his work and to characterize it more fully in terms of research traditions and methodological attitudes

searching for the opportunity cost of an individual s time a traditional assumption made in the literature is that the value of an individual s time spent in any activity is equal to his or her wage rate this result stems from the derivation of the value of leisure time in the context of the standard labor supply model this paper pre sents some reasons why the relationship be tween the wage rate and the value of time does not hold suggestions for what to do when the relationship breaks down and the investigator needs some value to impute to the individual are given in the final section of the paper

multidimensional welfare distributions empirical application to household panel data from vietnam this article explores the empirical application of theoretical multidimensional welfare distribution analysis techniques to real household welfare distributions the article operationalizes recent conceptual developments in multidimensional distribution theory and assesses their usefulness for the measurement of multidimensional household inequality the results strongly highlight the importance of bringing nonmonetary aspects of household welfare into the forefront of inequality analysis agreement over the various approaches to the measurement of multidimensional inequality entails however nontrivial decisions that may limit the practical usefulness of these measures we suggest that the use of multidimensional inequality ranges and the application of restrictive dominance criteria to multidimensional welfare distributions may open significant scope for further developments in the empirical analysis of multidimensional inequality

nutrient elasticities in a complete food demand system this study explores the linkage of the determinants of food choice with consumer nutrient availability by developing a procedure to measure changes in nutrient availability as the demand for food items change it uses demand elasticities from traditional demand analysis to estimate elasticities of changes in the nutritional content of consumer diets the procedure is applied to estimate nutrient elasticities for fifteen nutrients in response to changes in thirty five food prices and per capita income

a corporate system model of a sports club using simulation as an aid to policy making in a crisis the sports club described in this study was losing members and in dire financial straits it became obvious from the optimistic forecasts and fragmented historical records that the membership system was poorly understood by the club s decision making groups and committees a corporate system model of the club was developed from interviews with the club executive and influential club members in this way an understanding was gained of the fundamental system of relations determining the viability of the club various suggestions for remedial action were tried out on a simulation version of the model and the results communicated to the board of directors the study serves to illustrate the use of computer simulation modeling not as an optimising or forecasting tool but as an aid to policy making in a crisis it became part of the organizational behavior process for coping with an extreme situation that in this case had a happy ending the study attempts to relate the scientific process of synthesizing a formal model with the psychological and socio political processes of decision making in a complex system during a crisis

calories obesity and health in oecd countries theoretical models suggest that decisions about diet weight and health status are endogenous within a utility maximization framework in this article we model these behavioural relationships in a fixed effect panel setting using a simultaneous equation system with a view to determining whether economic variables can explain the trends in calorie consumption obesity and health in organization for economic cooperation and development oecd countries and the large differences among the countries the empirical model shows that progress in medical treatment and health expenditure mitigates mortality from diet related diseases despite rising obesity rates while the model accounts for endogeneity and serial correlation results are affected by data limitations

does better nutrition raise farm productivity household level data from sierra leone are used to test whether higher caloric intake enhances family farm labor productivity this is the notion behind the efficiency wages hypothesis which has found only weak empirical support a farm production function is estimated accounting for the simultaneity in input and calorie choice instruments include prices household demographic characteristics and farm assets the latter two sets of instruments are later dropped to explore the robustness of the results to different specifications of exogeneity the exercise shows a highly significant effect of caloric intake on labor productivity providing solid support for the nutrition productivity hypothesis the marginal effect on productivity falls drastically as calorie consumption rises but remains positive at moderately high levels of intake one result is a fall in the effective price of food a decline that is larger for households that consumer fewer calories

estimating a household production function heterogeneity the demand for health inputs and their effects on birth weight the household production literature emphasizes that technical or biological processes condition input selection by households in their production activities along with prices and income exogenous variations in health to the extent that they are perceived by individuals heterogeneity lead to correlations between inputs and health outcomes that cannot be used to derive causal conclusions therefore estimates of health technology must be obtained from a behavioral model in which health inputs are themselves choices consistent estimates are reported of the effect of endogenous inputs such as medical care smoking and fertility on birth weight and fetal growth in the presence of health heterogeneity

household production and sexual orientation the 2006 canada census is used along with a well known model of household production to estimate the value of household commodities produced by gay lesbian and heterosexual couples the results show some intriguing differences and similarities unlike heterosexuals gay and lesbian couples respond differently to changes in the cost of time however all couples are characterized by the importance of market goods over time and the importance of human capital in the market over the home with respect to household production hence although there are differences in the sexual division of labor between households of different sexual orientations the value of household commodities is mostly driven by differences in the amount of market goods used in the home market goods are determined by income and differences in income within a couple type swamp differences in income across couple types and as a result there is no statistical difference in the value of household commodities produced across the three sexual orientations jel d13

risks and rewards gary becker s contributions to economics gary becker is one of the most original and influential economists of our age his originality lies in extending the frontiers of economics and broadening the range of important social science problems that are amenable to economic analysis he has gone against the grain of establishment thinking in the economics profession invariably choosing to work on problems that were considered beyond the boundaries of modem economics yet this work made close contact with many of the great economists of the past and many of the concepts he invented and developed are now widely if not routinely used in modem economics several of the approaches to problems he pioneered have evolved into fields and specialities in their own right that becker has had an immense intellectual impact and influence in the economics profession is supported empirically by the voluminous citations to his work over the years and in other ways obviously citation counts have well known difficulties and cannot prove anything by themselves but if used in conjunction with more fundamental evidence they do have the virtue of being quantifiable marshall medoff s 1989 1 recent citation study is one of the best available because citations are weighted by the importance of the journals in which articles appear among non nobel prize economists working in u s universities under 65 years of age becker ranks first in total citations over the 1971 85 period to which medoff s study refers and he is first by a very wide margin though the study is limited to economists in the united states it is clear that becker would rank at or very close to the top of any worldwide list furthermore becker s work is virtually all substantive economic analysis hardly any of it is devoted to the development of methodological tools or to surveys both of which gamer citations more easily and many concepts

population growth and human capital investments theory and evidence this paper presents evidence from empirical studies that test hypotheses derived from models of household behavior pertaining to the interrelationships among population growth human capital and economic development these studies have exploited quasi natural experiments embodied in the cross area variability in the wage rates of children in a number of low income countries the intercouple variation in the biological propensity to conceive and the geographically selective introduction of new high yielding seed varieties in india in the period 1961 71 the different varieties of evidence support the hypotheses that alterations in the returns to human capital associated with exogenous technical change lead simultaneously to increases in human capital investments and to reductions in fertility and that the costliness of fertility control is a significant but modest factor in inhibiting human capital investments

human capital investment inequality and economic growth we treat rising inequality as an equilibrium outcome in which human capital investment fails to keep pace with rising demand for skills investment affects skill supply and prices on three margins the type of human capital in which to invest how much to acquire and the intensity of use the latter two represent the intensive margins of human capital acquisition and utilization these choices are substitutes for the creation of new skilled workers yet they are complementary with each other magnifying inequality when skill biased technical change drives economic growth greater inequality reduces growth

schooling health knowledge and obesity the connection between schooling and health is well documented an important empirical issue that needs to be examined however is whether schooling s effects are due to individual health knowledge differences this empirical study examines this issue with an increasingly important health indicator obesity since provision of health knowledge is a major tool of public agencies promoting health this empirical study uses a new direct measure of health knowledge to test this hypothesis the results show that knowledge is inversely related to the probability that an individual is obese schooling s effects on relative weight and the probability of being obese are explained by differences in knowledge this result may imply that schooling s effect on the allocative efficiency of the household production of health is the main reason schooling is linked to health behaviour the result also may imply that the most effective method of health education is to highlight the disease element of poor dietary habits a

unemployment and infant health times series evidence from the state of tennessee this is the first study that decomposes unemployment into its structural and cyclical components and investigates their impact on income distribution controlling for the influence of inflation increases in structural unemployment have a substantial

prenatal care demand and birthweight production of black mothers infant mortality in the united states has declined by one half in the past 20 years for both blacks and whites though the black infant mortality rate has steadily remained twice the white rate helen wallace 1994 the incidence of low birthweight unfortunately has remained almost unchanged over the same time period again with the black rate being twice the white rate wallace 1994 these two trends taken together suggest that the reduced mortality rate is due entirely to medical advances which allow more small weak and sick newborns to survive this paper investigates the health of newborns using the approach of mark rosenzweig and paul schultz 1982 1983 see also eugene lewit 1983 their work is extended by incorporating the number of visits and a visitsxdelay interaction term into prenatal care demand the goal is to obtain consistent estimates of the impact of prenatal care on infant birthweight these estimates can then be used to design interventions aimed at reducing the incidence of low birthweight

making sense in hypercompetitive environments a cognitive explanation for the persistence of high velocity competition this paper explores the cognitive aspects underlying industries in hypercompetitive environments hypercompetition represents a state of competition with rapidly escalating levels of competition and reduced periods of competitive advantage for firms in hypercompetitive industries member firms act boldly and aggressively to create a state of competitive disequilibrium in this paper we explore the particular conditions that managers encounter in making sense of hypercompetitive industries and argue that the nature of these conditions is such that conventional sensemaking frameworks will not work we then describe the adaptive sensemaking practices established in the literature for dealing with temporary turbulence and suggest that in hypercompetition those processes continue indefinitely we argue that these processes can become institutionalized as standard operating procedures within firms and as shared recipes within industries which in turn perpetuates hyperturbulent conditions