It is hard to argue with the proposition that value for money should guide health spending. However, even after decades of development, economic evaluation is still a work in progress. As applied, it deals poorly with issues of social justice, ageing and end of life issues; cases involving small numbers—such as decisions about orphan drugs—are also contested. Unfortunately, differences in incremental cost-effectiveness ratios are presented with a degree of precision which contributes to an ‘illusion of validity’.1 Nobel Laureate (...) Amartya Sen has suggested that ‘when all the requirements of ubiquitous market-centred evaluation have been incorporated into the procedures of cost–benefit analysis, it is not so much a discipline as a daydream’.2 As with any approach to public decision making, the use of economic evaluation rests on an implicit social licence, including that the decision making is fair and reasonable. Many countries have developed special policies for rare, ‘ultrarare’ or ‘orphan’ diseases to moderate the effect of a ubiquitous application of economic evaluation. The threshold for defining ‘small’ or rare is a matter of judgement and ranges between 2 and 80 per 100 000 population.3 Magalhaes challenges the ethical basis of special programmes for low incidence conditions and argues against such provisions. In this commentary, I will argue the contrary: that there are good reasons …. (shrink)

Consumption is one of the important components in the social reproduction circle, which also includes production, distribution, and exchange. Consumer activities should be examined in the social context as well as in the context of the production process. Especially important are impacts of social ethics and individual morality on consumer activities. This paper describes a dialectical relation between ethical and economic evaluations of consumption, presents evidence on Chinese attitudes to borrowing, and proposes a reasonable proportionality between consumption and frugality (...) as a general guideline for consumer activities in contemporary China. (shrink)

We review methods for economic evaluation recently developed in health economics by focusing on the epistemic and non-epistemic values they embody. The emphasis is on insights into valuing health,...

There is a gap between health economic evaluation methods and the value judgments of coverage decision makers, at least in Germany. Measuring preference satisfaction has been claimed to be inappropriate for allocating health care resources, e.g. because it disregards medical need. The existing methods oriented at medical need have been claimed to disregard non-consequentialist fairness concerns. The aim of this article is to propose a new, contractarian argument for justifying needs-based economic evaluation. It is based on (...) consent rather than maximization of some impersonal unit of value to accommodate the fairness concerns. This conceptual paper draws upon contractarian ethics and constitution economics to show how economic evaluation can be viewed as an institution to overcome societal conflicts in the allocation of scarce health care resources. For this, the problem of allocating scarce health care resources in a society is reconstructed as a social dilemma. Both disadvantaged patients and affluent healthy individuals can be argued to share interests in a societal contract to provide technologies which ameliorate medical need, based on progressive funding. The use of needs-based economic evaluation methods for coverage determination can be interpreted as institutions for conflict resolution as far as they use consented criteria to ensure the social contract’s sustainability and avoid implicit rationing or unaffordable contribution rates. This justifies the use of needs-based evaluation methods by Pareto-superiority and consent. The view of economic evaluation presented here may help account for fairness concerns in the further development of evaluation methods. This is because it directs the attention away from determining some unit of value to be maximized towards determining those persons who are most likely not to consent and meeting their concerns. Following this direction in methods development is likely to increase the acceptability of health economic evaluation by decision makers. (shrink)

That the maximization of quality-adjusted life years violates concerns for fairness is well known. One approach to face this issue is to elicit fairness preferences of the public empirically and to incorporate the corresponding equity weights into cost-utility analysis (CUA). It is thereby sought to encounter the objections by means of an axiological modification while leaving the value-maximizing framework of CUA intact. Based on the work of Lübbe (2005, 2009a, 2009b, 2010, forthcoming), this paper questions this strategy and scrutinizes the (...) concomitant assumptions concerning the nature of prioritization decisions. Empirical studies indicate that these premises are in fact unwarranted. People chose a certain resource allocation because they perceive it as a fair way to treat the persons concerned, not because it maximizes something valuable, and it is questionable if prioritization decision can be represented as value-maximizing choices at all. This reflection on the fundamental distinction between deontological and consequentialist reasoning bears general implications for the scope of ‘economic imperialism.’. (shrink)

Research on economization processes is increasingly taking seriously the social and material processes through which various policy domains are transformed into economic problems and solutions. This article engages “Value Added Modeling” (VAM) in teacher evaluation systems as a case study in economization. VAM is a statistical technology for evaluating the effectiveness of schoolteachers using student test scores, which wrests authority for the determination of quality teaching away from education professionals and toward quantitative economic modelers. Mobilizing field theory, (...) we trace a half century of changing relationships among economists, other academics, and various policy audiences (from media to philanthropists to state and federal government) in struggles to define education policy concerning teacher quality. We show that economization is a set of overlapping, sometimes contradictory processes that can take different forms: in this case, the spread of an “economic style of reasoning” or the establishment of “economic policy devices.” The case of VAM shows stages of economization in which processes first proceeded independently of one another, then interacted in contradictory ways, and finally, mutually reinforced one another. What primarily drove these interactions was the struggle for scientific capital within the economics discipline and the changing place of education policy and VAM within it. Ultimately, VAM’s original role as a policy device for evaluating and selecting individual teachers has foundered even as it has become an important tool for economists to accrue scientific capital and expand their style of reasoning to broader audiences. (shrink)

Rationale, aims and objectives: Appropriate use of diagnostic and treatment modalities are essential for rational use of resources. The aim of this study is to evaluate the use of diagnostic modalities and different treatment options and their economic impacts following an acute ankle distortion resulting from an occupational accident. We evaluated the type-of-treatment impact on the victims' course of recovery as well as its impact on the associated accident costs. Research was carried out in Belgium. Methods: An ankle distortion (...) victims' database consisting of 200 cases of (Belgian) occupational accidents during the period 2005-2007 was analysed. Results: Patients who were prescribed immobilization or the use of adjuvant support or physical therapy (118 cases) were not employed during a period of 37 days on average, with a mean total cost of 3140.14 Euros caused by the ankle sprain. Patients without any adjuvant therapy (82 cases) were characterized by an unemployment rate of 15 days on average, and a total cost of 1077.86 Euros. Cast immobilization, although its application is not supported by evidence-based literature, was still applied in 36% of the population studied and resulted in the longest average absence of work of 42 days with an obvious significant increase in medical and total costs. Conclusions: Our results show a high rate of inappropriate use of cast immobilizations for ankle distortions. From an economic point of view and for the same clinical endpoint (being full resumption of the occupational activities), simple conventional treatment, consisting of rest, ice, compression and elevation at diagnosis with allowance of early weight bearing in the further clinical course, leads to the quickest full resumption of activities in combination with the lowest medical costs, if compared with any other kind of treatment. (shrink)

Urban space is the spatial projection of various social and economic activities. Given the complexity of urban functions and the ongoing expansion of urban areas, the spatial differentiation of various economic activities within cities tends to become more and more clear; moreover, there tends to be spatial inequalities in resource allocation. Taking Beijing as an example, this study develops a spatial accessibility model at the town level by integrating the spatial distribution of economic activities with the transport (...) system and evaluating the accessibility to various economic activities. The equality of the residents’ economic-related travel activity is also evaluated in line with the population distribution. The results show that the accessibility to economic activities generally decreases in going from the urban center to the peripheral suburbs, and this “core to edge” difference is readily apparent. In general, residents tend to choose areas to settle in which have a high degree of accessibility, however, the attractiveness of accessibility is constrained within certain limits, as evidenced by a reduction of population in the center of Beijing. Additionally, there are inequalities with respect to traveling experiences. For instance, 27.8% of residents experience very convenient travel conditions, mostly in the Xicheng, Dongcheng, and Haidian districts, and this equates to a high level of accessibility; about half of the residents in Beijing live in areas ranked as being of medium accessibility and where the distribution of economic activities and transportation facilities are insufficient. Residents living in the outlying Changping, Mentougou, Shunyi, and Fangshan districts have relatively poor access to transportation indicating a low level of accessibility. Overall, the evaluation method for spatial equality considers comprehensively the distribution of economic activities, transportation, and population distribution and can provide a reference framework for optimization of the urban spatial structure to improve urban spatial equality. (shrink)

Teachers’ instructional practices are important for student learning. However, there are few tools for evaluating instructional practices in social studies. To this end, we present a video-based in...

This paper explores the integration of machine learning into economics and social sciences, assessing its potential impact and limitations. It introduces fundamental machine learning concepts and principles, highlighting the differences between the two disciplines, particularly the focus on causal inference in economics and prediction in machine learning. The paper discusses diverse applications of machine learning, from extracting insights from unstructured data to creating novel indicators and improving predictive accuracy, while also addressing challenges related to data quality, computational efficiency, and data (...) ownership. It emphasizes the importance of standardization, transparency, and ethical considerations in prediction tasks, recognizing that machine learning is a powerful tool but cannot replace economic theory. Ultimately, researchers remain optimistic about the transformative potential of machine learning in re-shaping research methodologies and generating new insights in economics and social sciences. (shrink)

Introduction. The study of the economic potential of industrial regions is an important task in modern economics. Industrial regions play a key role in the country’s economy, as they are the main centers of production and services, create jobs and contrib- ute to the development of other sectors of the economy. One of the main tools for analyzing the economic potential of industrial regions is to assess their opportunities to attract investment, develop production, improve the quality of life (...) and well-being of the population. This makes it possible to identify problem areas in the region’s economy and develop measures to eliminate them. The purpose of the study. The study is devoted to identifying the relationship between the economic potential and the welfare of the population as exemplified by industrial regions of the Russian Federation. Methods. The main research methods used by the authors are the review and content analysis of scientific approaches in this subject area, collecting and processing statistical information, supplement- ing methods for assessing the economic poten- tial and well-being of the population, calculating relevant integral indicators, interregional compari- sons and ranking territories according to selected criteria. Scientific novelty of the research. Within the framework of the study, the authors propose a methodology for selecting industrial regions, sup- plement tools for assessing the level of economic potential of an industrial region, and propose a method for selecting indicators for assessing the level of well-being of the population of an industrial region. Results. According to the results of the study, there is a weak relationship between the economic potential and the well-being of the population of industrial regions. Carrying out the calculations de- scribed in the article on a regular basis can become a key factor in ensuring effective monitoring of the socio-economic situation in certain territories. Conclusions. The study is important for under- standing which factors have the greatest impact on the well-being of the residents of the regions and what measures need to be taken to improve the level of economic development of the region and social protection of the population. The results of the study can be used to develop effective strate- gies for the development of regions and improving the life quality of people. (shrink)

Philosophers of science typically focus on the epistemic performance of scientific models when evaluating them. Analysing the effects that models may have on the world has typically been the purview of sociologists of science. We argue that the reactive (or “performative”) effects of models should also figure in model evaluations by philosophers of science. We provide a detailed analysis of how models in financial economics created the impetus for the growing importance of the phenomenon of “passive investing” in financial markets. (...) Considering this case motivates the position that we call contextualism about model evaluation, or _model contextualism_ for short. Model contextualism encompasses standard analyses of the epistemic performance of the model, but also includes their reactive aspects. It entails identifying the _epistemic and contextual import of the model_, the ways in which a model can engender change in the world (which we call the _channels of transmission_), and the _interactions between the epistemic and reactive import of a model_. (shrink)

Fuzzy sets and fuzzy logics are used to model events with imprecise, incomplete, and uncertain information. Researchers have developed numerous methods and techniques to cope with fuzziness or uncertainty. This research intends to introduce the novel concepts of complex neutrosophic relations and its types based on the idea of complex neutrosophic sets. In addition, these concepts are supported by suitable examples. A CNR discusses the quality of a relationship using the degree of membership, the degree of abstinence, and the degree (...) of nonmembership. Each of these degrees is a complex number from the unit circle in a complex plane. The real part of complex-valued degrees represents the amplitude term, while the imaginary part represents the phase term. This property empowers CNRs to model multidimensional variables. Moreover, some interesting properties and useful results have also been proved. Furthermore, the practicality of the proposed concepts is verified by an application, which discusses the use of the proposed concepts in statistical decision-making. Additionally, a comparative analysis between the novel concepts of CNRs and the existing methods is carried out. (shrink)

On the basis of PM2.5 data of the national air quality monitoring sites, local population data, and baseline all-cause mortality rate, PM2.5-related health economic benefits of the Air Improvement Action Plan implemented in Wuhan in 2013–2017 were investigated using health-impact and valuation functions. Annual avoided premature deaths driven by the average concentration of PM2.5 decrease were evaluated, and the economic benefits were computed by using the value of statistical life (VSL) method. Results showed that the number of avoided (...) premature deaths in Wuhan are 21,384 (95% confidence interval (CI): 15,004 to 27,255) during 2013–2017, due to the implementation of the Air Improvement Action Plan. According to the VSL method, the obtained economic benefits of Huangpi, Wuchang, Hongshan, Xinzhou, Jiang’an, Hanyang, Jiangxia, Qiaokou, Jianghan, Qingshan, Caidian, Dongxihu, and Hannan District were 8.55, 8.19, 8.04, 7.39, 5.78, 4.84, 4.37, 4.04, 3.90, 3.30, 2.87, 2.42, and 0.66 billion RMB (1 RMB = 0.1417 USD On 14 October 2019), respectively. These economic benefits added up to 64.35 billion RMB (95% CI: 45.15 to 82.02 billion RMB), accounting for 4.80% (95% CI: 3.37% to 6.12%) of the total GDP of Wuhan in 2017. Therefore, in the process of formulating a regional air quality improvement scheme, apart from establishing hierarchical emission-reduction standards and policies, policy makers should give integrated consideration to the relationship between regional economic development, environmental protection and residents’ health benefits. Furthermore, for improving air quality, air quality compensation mechanisms can be established on the basis of the status quo and trends of air quality, population distribution, and economic development factors. (shrink)

The American Journal of Bioethics, Volume 11, Issue 7, Page 18-20, July 2011.

In this article, we argue that apart from evaluating the causes and the social determinants of health inequalities, an evaluation of the effects of health inequalities is due. For this, we propose the ideal of relational equality as an evaluative framework, and test to what extent health inequalities threaten this ideal of a society of equals. We identify three ways in which they do and argue that these risks are especially great for those lower down the socio-economic strata. (...) We thus conclude that equality in health is instrumental to social justice, and that socio-economic inequalities in health are not only unjust due to their causes but also due to their consequences. We continue to argue that our instrumental approach opens a perspective to mitigate the identified injustices by changing society, rather than reducing inequalities in health, and argue that this is an advantage in the light of the realistic assumption that of the socio-economic health inequalities will persist. The article thus offers a complementary approach to both the evaluation and the mitigation of the injustice of socio-economic inequalities in health. (shrink)

Much business ethics and corporate social responsibility literature suggests, implicitly or explicitly, that firms ought to engage in activities that can be characterized as philanthropy, namely, expending resources beyond what is required by law and market norms to promote others’ welfare at the expense of firm profits. However, this literature has struggled to provide a normative framework for evaluating corporate philanthropy, although scholars have noted that such expenditures can potentially remedy market failures and provide public goods more efficiently. I articulate (...) two specific rationales that can justify corporate philanthropy based on considerations of welfare economics: 1) firms making strategic but high-risk investments in activities that are likely to generate positive externalities even if they prove unprofitable and 2) firms possessing a strong comparative advantage in their ability to address a social problem at lower social cost. Moreover, these rationales can be evaluated by a concept I develop called the philanthropy multiplier, indicating the ratio of net positive externalities to net costs. I suggest that firms consider publicizing their philanthropy multipliers, and I discuss theoretical and practical implications. (shrink)

Nearly all large policy decisions influence not only the quality of life for existing individuals but also the number-and even identities-of yet-to-exist individuals. Accounting for these effects in a policy evaluation framework requires taking difficult stances on concepts such as the value of existence. These issues are at the heart of a literature that sits between welfare economics and philosophical population ethics. Despite the inherent challenges of these questions, this literature has produced theoretical insights and subsequent progress on variable-population (...) welfare criteria. A surprisingly bounded set of coherent alternatives exists for practitioners once a set of uncontroversial axioms is adopted from the better-studied welfare criteria for cases where populations are assumed to be fixed. Although consensus has not yet been reached among these remaining alternatives, their recommendations often agree. The space has been sufficiently restricted and well explored that applications of the theoretical insights are possible and underway in earnest. (shrink)

Scholars have compared the transitional justice processes of Colombia and South Africa in some respects, but there has yet to be a systematic moral-philosophical evaluation of them regarding how they have sought to allocate economic goods. Here I appraise the ways that South Africa and Colombia have responded to their respective historical conflicts in respect of the distribution of property and opportunities. I do so in the light of a conception of reconciliation informed by a relational ethic of (...) harmony, a value salient in the worldviews of many indigenous peoples in both Africa and South America. I argue that, given such an account of reconciliation, one of Colombia’s major proposed ways of allocating property and opportunities, whereby offenders would labour for the sake of improving victims’ socio-economic conditions, would be much better than what South Africa has done, even if Colombia has yet to put such a policy systematically into practice. (shrink)

This paper returns to a perennial controversy I examined in a previous paper in the Journal of Business Ethics (Vol. 2, 1983). Is economic theory an ethically neutral discipline or do its statements presuppose a commitment to moral values? Once again this issue is addressed via a case study of the neo-classical theory of rational choice. In the present paper I focus on behaviourist forms of operationalist attempts to short-circuit any argument that would seek to infer moral presuppositions from (...) the use of evaluative discourse. In particular, I examine strategies that have sought to excise from economic theory the mentalistic vocabulary required to describe valuations per se. And I argue that such tactics are deficient since they i) impoverish the explanatory power of economic theory, (ii) fail to recover the normative usefulness of the theory of choice, and (iii) camouflage the continued presupposition of moral commitments within neo-classical theory. (shrink)

Lisciandra poses a challenge for robustness analysis as applied to economic models. She argues that substituting tractability assumptions risks altering the main mathematical structure of the model, thereby preventing the possibility of meaningfully evaluating the same model under different assumptions. In such cases RA is argued to be inapplicable. However, Lisciandra is mistaken to take the goal of RA as keeping the mathematical properties of tractability assumptions intact. Instead, RA really aims to keep the modeling component while varying the (...) corresponding mathematical formulation. Thus, her argument concerning whether the associated mathematical properties of certain assumptions can be kept intact is irrelevant to the success of RA. Furthermore, we explicate and develop Lloyd’s account of “model robustness” to provide solutions to Lisciandra’s challenges. Our solutions are, namely, error analysis and independent empirical support. We conclude that although complex economic models do face potential dangers, there are solutions and robustness analysis need not be given up.. (shrink)

This book provides an introduction to the relationship between economics and ethics, explaining why ethics enters economics, how ethics affects individual economic behavior and the interactions of individuals, and how ethics is important in evaluating the performance of economies and of economic policies.

Economics today cannot predict the likely outcome of specific events any better than it could in the time of Adam Smith. This is Alexander Rosenberg's controversial challenge to the scientific status of economics. Rosenberg explains that the defining characteristic of any science is predictive improvability--the capacity to create more precise forecasts by evaluating the success of earlier predictions--and he forcefully argues that because economics has not been able to increase its predictive power for over two centuries, it is not a (...) science. (shrink)

The majority of Muslim countries, classified as low or middleincome groups, suffer from poverty and face severe challenges in economicdevelopment. International development reports attribute the economicproblems of Muslim countries to similar factors as those existing in otherdeveloping countries. However, some secular studies have analyzed theimpact of Islamic culture on the economic variables in the Muslim World, andconsequently on its economic development. This paper reviews and evaluatessome of these studies. Secular works which are selected and examined inthis article can (...) be classified into two main groups. The first group makes nodistinction between authentic Islamic culture and contemporary culture whichis prevailing in Muslim countries and builds its analysis and conclusion uponthis misconception. The second group, however, raises objections towardssome specific Islamic laws and traditional rules, considering them amongfactors which have hindered economic development in the Muslim world. (shrink)

A joyless irony of our time is that, just as Marxism as political doctrine has been declared dead, Marxist economics has never been better argued and empirically defended. Bob Brenner's The Economics of Global Turbulence is a good example. As an overview of the global economy from World War Two to the present it is unequalled. Here is the historian at work, leaving few stones unturned and the exhaustive treatment makes for daunting reading. But an exploration of fifty years of (...) global economy is not a stroll through the daisies and the serious reader comes prepared for a long hike. (shrink)

By exploring the strengths and weaknesses of a Marxist approach to economic development, this book presents a balanced treatment of development issues within the area of 'rational choice Marxism'.

The book is reclaiming economics as a moral science. It argues that ethics is a relevant and inseparable aspect of all levels of economic activity, from individual and organizational to societal and global. Taking ethical considerations into account is needed in explaining and predicting the behavior of economic agents as well as in evaluating and designing economic policies and mechanisms. The unique feature of the book is that it not only analyzes ethics and economics on an abstract (...) level, but puts behavioral, institutional and systemic issues together for a robust and human view of economic functioning. It sees economic "facts" as interwoven with human intentionality and ethical content, a domain where utility calculations and moral considerations co-determine the behavior of economic agents and the outcomes of their activities. The book employs the personalist approach that sees human persons - endowed with free will and conscience - as the basic agents of economic life and defines human flourishing as the final end of economic activities. The book demonstrates that economics can gain a lot in meaning and also in analytical power by reuniting itself with ethics. (shrink)

Growing economic stratification each year in many countries is such a pressing issue that even the World Economic Forum, organized in 2014 in the luxury resort of Davos, recognized it as one of the most dangerous threats to social order. The problem of economic inequality, pushed by the apologists of economic liberalism to the margins of media discourse, once again became a “hot” topic with the World Economic Crisis in 2008, the effects of which are (...) still felt in various countries today, and which contribute to the expansion of global social stratification. The aim of the article is to describe the sample indicators typically used by organizations, i.e. OECD, theWorld Bank to measure economic inequality in the world, and then, on the basis of these indicators, create a synthetic instrument based on TOPSIS methodology, which will allow for preparing a multi-criteria ranking of OECD countries in terms of economic inequality. (shrink)