Suchergebnisse

This paper explains the endowment effect, whereby sellers generally demand considerably more for a good than buyers are prepared to pay, and related anomalies. Many decisions, including nominating buying or selling prices, involve uncertainty, and we assert that people experience negative psychological reactions to uncertainty. These reactions can affect a person's valuation of the various options, biasing the person's actions towards the status quo, thus producing the endowment effect. Our model also proposes positive or negative reactions to unlikely prospects, which are able to explain commonly observed behaviour in the presence of ambiguity.

Since 2004, Indonesia has held 5-yearly national elections for the positions of president and vice president. This has been a promising step forward in a maturing democracy. However, a restriction was imposed that nomination of presidential candidates can only be made made by political parties with parliamentary representation above some minimum level—the "minimum threshold". That threshold is relatively high, meaning that since 2009, there has only ever been two candidates for president in the elections, each backed by coalitions led by the dominant establishment parties. This paper discusses the workings of the minimum threshold and argues that it undermines democratic principles, having the effect of preserving and strengthening the power of the strongest political parties at the expense of new or emerging voices. We also propose an alternative approach that delivers the desired broader democratic voice.

Using a 29‐year (1978–2006) panel of provincial‐level data from China, this article investigates the role of health capital in a human capital model of economic output. Robust evidence is found through panel cointegration analysis that health capital has a significant and positive effect on the Gross Regional Product in China; the effect being stronger in the inland regions compared to the coastal areas based on estimates that account for regional heterogeneity. This article highlights and discusses the potential role of diminishing returns to health investment in this globally important area. (JEL I15, R11, C23)

On any given night in Victoria, around 4,000 children and young people live under the care and protection of the State. For many young people, this care extends over a long period of time, sometimes until their 18th birthday. It is well documented that young people leaving State care often lack the social and economic resources to assist them in making the transition into independent living. As a consequence, the long-term life outcomes from this group are frequently very poor. A recent report from the Centre for Excellence in Child and Family Welfare in partnership with Monash University estimated that, for a typical cohort of 450 young people who leave care in Victoria each year, the direct cost to the State resulting from these poor outcomes is $332.5 million. The estimated average outcomes of the leaving care population are based on a recent survey involving sixty young people who had spent at least two years in care as teenagers. This paper provides an overview of the economic methodology used to estimate this cost, and provides discussion of the motivation for measuring outcomes in terms of costs to the State.

Rural–urban migration is a major phenomenon in the developing world. This article is concerned with understanding the ways in which rural–urban migrants have their social protection needs met following their move to the city. We report results from a survey of rural–urban migrants in four low-income areas in Cape Town, South Africa. We look at the experiences of migrants in terms of finding employment in the urban environment, and the impact of language background and proficiency on migrants' ability to integrate in the labour market, and their access to formal and informal protection and government support. Language proficiency and social networks emerge as important variables in the analysis and will need to be considered in the design of social policies. Specifically, inadequate knowledge of dominant urban languages (English and Afrikaans) limits opportunities for employment and access to public services. Furthermore, reliance on informal, strong-tie social networks facilitates initial migration and settlement, but can delay long-term integration into the urban economy and labour market.

Background: Australia is a high-income country with increasing income inequality. It is unclear whether Australia's well-developed mental healthcare system is making a difference to population mental health and the Federal Government has targeted outcomes accountability in service funding strategies. In high-income countries, evidence generally suggests that income inequalities increase mental disorders among the poor. This study examined psychological-distress rates—a marker of mental ill- health—as varying by income among Australians living within and outside of capital cities. Methods: Secondary data analysis was undertaken using the population-level mental health indicator of the Kessler Psychological Distress Scale (K10) as reported for 12,332 adults in the 2011/2012 National Health Survey (NHS) of Australia. K10 scores of 22 and higher indicated high/very-high distress, and 30 and higher denoted very-high distress. Very-high distress levels are strongly predictive of serious mental illness. Results: Among the poorest one-fifth of Australians, 1 in 4 people have psychological distress at a high/very-high level; this compares to about 1 in 20 people in the richest one-fifth of Australians. About 1-in-10 people making up the poorest one-fifth of Australians have current very-high distress, and this reduces to <1-in-50 people in the richest one-fifth. These disparities are consistent both within and outside of capital cities. The national prevalence of elevated distress within income quintiles varies greatly, with Poor/Rich Quintile Ratios of typically 4–5 for high/very-high levels and 7–8 for very-high levels. These effects operate more powerfully in areas marked by higher scores on the Index of Relative Socioeconomic Disadvantage. Conclusions: Altering the strong association of lower income levels in Australia with elevated psychological distress would require a multi-dimensional social policy and healthcare approach. To assess the effectiveness of adopted strategies, population level indicators need to ...