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Economics as a factor in models of behavioral motivation and change.

This note first presents a summary of four main behavioral models that are used to explain behavioral motivation and change. Three models are based on psychosocial theory. They are: 1) the Theory of Reasoned Action, 2) the Theory of Planned Behavior, and 3) the Theory of Stages-of-Change. The fourth model is based on economic theory and is known as the Rational Addiction Model. Each model is analyzed for its strengths and weaknesses. The note concludes by arguing for the usefulness of integrating the economic and the psychosocial models to study drug use. Specific examples and suggestions are presented.

Behavior, Addictive↗

The economic analysis of international migration: a generalization.

"This note examines and extends the following two propositions: that finite international factor movements are beneficial to the nationals of the destination country but detrimental to those left behind in the source country and that marginal movements do not have such welfare effects. Using some newly developed techniques, the propositions are found to be valid, irrespective of the number of goods and factors, if the economy starts from the autarky position. When only one factor can flow, the gain of the nationals (loss of those left behind) will be positively dependent upon the amount of inflow (outflow). However, if goods trade and/or factor flow are initially present, the propositions are in general not true." (SUMMARY IN FRE)

Demography↗

Information and sorting in the market for obstetrical services.

Using a statistical model and a partial equilibrium economic search model, we develop a methodology for appraising the value of consumer information about the quality of health care providers and apply it to information about physicians' predispositions to perform cesarean section deliveries. There are three primary results. First, information's value is roughly proportional to a simple statistical metric of its accuracy; the constant of proportionality can be imputed from knowledge of consumer search methods and consumer preferences. Second, the function governing the production of information from data 'inputs' can have surprising economic properties, such as economies of scale, that usefully inform the efficient production of consumer information. These properties are robust even when the value of information cannot be precisely determined. Third, information's value is enhanced by the way physicians are sorted into hospitals but greatly attenuated by the presence of other dimensions of physician heterogeneity. Under plausible assumptions, the value of information in our empirical application is small enough that it is not surprising that consumers do not utilize it when selecting a physician.

Cesarean Section↗

The behavioural and welfare implications of housing demand under rationing. The United Kingdom experience.

"The present study investigates, on pooled budget data (1968/1985) from United Kingdom Family Expenditure Surveys, the consequences of relaxing the assumption of free choice in housing, while continuing to maintain the assumption of unrationed demand for other items. Since the demand equations are estimated jointly as a system, introducing rationed demand for one item will have consequences for the other demand equations. We investigate the nature and magnitude of such changes using the framework of a general demographic demand system that allows for non-linear/non-separable commodity demand behaviour and also permits the equivalence scales to vary between the rationed and unrationed items." The author finds that "unlike in previous studies, the rationed demand system fails to reject linear preferences."

Demography↗

Real earnings and human migration in the United States.

"The present article offers an alternative [to Rabianski's] empirical analysis of the migration impact of living cost differentials and deals with net (as opposed to gross) [U.S.] migration to some 25 (as opposed to just 11) SMSAs over the 1960-70 rather than the 1955-60 time period. The results...indicate that...living cost differentials do significantly affect geographic mobility, i.e., improve the regression results."

Americas↗

The economics of the "to and fro" migrant: some welfare-theoretical considerations.

The effects of international "to and fro" migration on the economic welfare of the migrants and the nonmigrants in the host and home countries are examined. A "to and fro" migrant is defined as a worker who changes residence from origin to destination without any systematic tendency to remain in any of the two permanently. The study is based on the theoretical framework developed by Krauss. The results indicate that "(to and fro) emigration from a source country to a recipient country increases the economic welfare of the migrants and the nonmigrants residing in the host country, but it tends to decrease the welfare of the nonmigrants residing in the source country. In general, the migration also tends to be pareto optimal from a world point of view."

Demography↗

Development and validation of the Economic Assessment of Glycemic Control and Long-Term Effects of diabetes (EAGLE) model.

BACKGROUND: The Economic Assessment of Glycemic control and Long-term Effects of diabetes (EAGLE) model was developed to provide a flexible and comprehensive tool for the simulation of the long-term effects of diabetes treatment and related costs in type 1 and type 2 diabetes. METHODS: EAGLE simulations are based on risk equations, which were developed using published data from several large studies including the Diabetes Control and Complications Trial, the United Kingdom Prospective Diabetes Study, and the Wisconsin Epidemiological Study of Diabetic Retinopathy. Risk equations for the probability of complications (including hypoglycemia, retinopathy, macular edema, end-stage renal disease, neuropathy, diabetic foot syndrome, myocardial infarction, and stroke) were based on regression analyses, using linear, exponential, and quadratic regression formulae. Subsequent cost calculations are made from the simulated event rates. Internal validation of the EAGLE model was completed by comparing simulated event rates with the published event rates used as the basis for the model. RESULTS: EAGLE provides microsimulations of virtual patient cohorts for type 1 and type 2 diabetes over n years in 1-year cycles. Complications include microvascular and macrovascular events and death, which are calculated over time as cumulative incidences. Glycosylated hemoglobin levels over time are simulated in relation to treatment regimen. Internal validation demonstrated that each mean event rate simulated by EAGLE overlapped with the published mean event (within a range of +/-10%). CONCLUSIONS: The EAGLE model is an evidence-based, internally valid tool for the assessment of the long-term effects of diabetes treatment and related costs.

Diabetes Complications↗

Malthus' preconditions to moral restraint and modern population economics.

The author examines the writings of Malthus and compares them with basic tenets of two modern economic approaches to fertility studies. It is suggested that "Leibenstein and Easterlin, on the one hand, base their arguments on the central role of aspirations and of relative income or status, whether it be that of the parents or of the friends and neighbors. We argue that aspirations and relative income effects are quite close to Malthus' ideas on 'forward looking' and self respect. The other modern economic approach to fertility studies, the Chicago school, is centered on the effect of human capital on consumption and fertility decisions, and we think that this idea was not too strange to Malthus when he emphasized foresight and the desire for knowledge." (SUMMARY IN FRE AND ITA)

Behavior↗

Economic pressure in African American families: a replication and extension of the family stress model.

This study of 422 two-caregiver African American families, each with a 10-11-year-old focal child (54% girls), evaluated the applicability of the family stress model of economic hardship for understanding economic influences on child development in this population. The findings generally replicated earlier research with European American families. The results showed that economic hardship positively relates to economic pressure in families. Economic pressure was related to the emotional distress of caregivers, which in turn was associated with problems in the caregiver relationship. These problems were related to disrupted parenting practices, which predicted lower positive child adjustment and higher internalizing and externalizing symptoms. The results provide significant support for the family stress model of economic hardship and its generalizability to diverse populations.

Adult↗