Economic Assumptions Research Articles

A systematic review of cost-effectiveness analyses of gene therapy for hemophilia type A and B.

In 2022-2023, the US Food and Drug Administration approved 2 novel gene therapies, valoctocogene roxaparvovec and etranacogene dezaparavovec, for hemophilia A and B, respectively. These one-time-administered gene therapies have been marketed at prices that create financial challenges for payers and patients. Understanding the magnitude and uncertainties around the long-term value of these therapies and how they can potentially relate to managed care practices is of high interest to the payer and patient community. To conduct a systematic review of cost-effectiveness analysis (CEA) studies to assess (1) the long-term value of valoctocogene roxaparvovec and etranacogene dezaparavovec and (2) the relevance and validity of the underlying data and assumptions used in the CEA models and discuss how they relate to the challenges identified for CEAs of gene therapies. A systematic review of cost-effectiveness studies of novel hemophilia A and B gene therapy was conducted. PubMed and Embase were searched for published studies from inception to January 12, 2024. Original research articles published in English that conducted a CEA on gene therapy treatments for hemophilia A and B, with a comparison of incremental costs and health effects, were considered. Critical appraisal of the quality of reporting and the underlying modeling assumptions were conducted to assess the relevance and validity of the results. Two hundred thirty-eight studies were identified, of which 4 met the inclusion criteria. Three studies were conducted from a US health care perspective and 1 from a Dutch societal perspective. Despite the high upfront costs of the gene therapies, all included studies' (3 hemophilia A and 1 hemophilia B) modeled results showed that gene therapies had lower overall costs and better health outcomes compared with factor concentrate replacement therapies and emicizumab. The results were driven by the assumption that gene therapies will have a durable effect of at least 10 years and offset the high cost of the current standard of care. The modeled health improvements varied substantially across studies, showing that the long-term value is sensitive to varying clinical and economic assumptions. The novel hemophilia gene therapy treatments can potentially be a cost-effective use of treatment resources if the treatment effects are durable over time. To reduce the risk for payers while still facilitating patient access, outcomes-based agreements similar to what has recently been proposed by the Centers for Medicare & Medicaid Services for sickle-cell therapies are well supported.

Stoic Economics: A Theoretical Examination of a Shift in Consumer Philosophy towards Stoicism

Since the advent of modern economic thought, particularly within Behavioral Economics, consumer behavior has primarily been driven by psychological and utilitarian beliefs that prioritize self-interest and material accumulation. Now, as consumer mindfulness becomes a prevalent issue, we look to philosophy — rather than psychology — as a framework for consumer behavior. Stoicism, originating in Ancient Greece and Rome, has always been applied to individual well-being but has never been considered in the context of collective economic behavior, despite its basis aligning well with the basic economic problem of scarcity. We examine whether and to what extent virtue-based principles of Stoicism can shift economic activity, both for consumers and the economy at large. Through understanding of key tenets of stoicism, and translating these philosophical ideals to economic assumptions, we find that the stoic focus on long-term stability, rational decision-making, and the use of wealth for public good leads to deviations from the status quo of market activity.

The Paradox of Progress towards SDG7: Governance Quality and Energy Poverty Dynamics in Pakistan

This study investigates the multidimensional aspects of energy poverty in Pakistan from 2000 to 2022, specifically evaluating the direct, indirect, and total effects of socioeconomic and environmental factors. We employed Partial Least Squares Structural Equation Modeling (PLS-SEM) to examine the impacts of income, population, governance quality, energy intensity, fuel prices, and renewable energy consumption on energy poverty. The study further contributes by examining the mediating role of governance quality and developing the World Governance Indicators (WGI) Index. The findings indicate significant negative effects of energy intensity and renewable energy consumption on energy poverty. Conversely, population growth and income levels demonstrate positive effects, contradicting conventional economic development and energy access assumptions. Governance quality establishes direct and indirect effects that mediate most relationships between independent variables and energy poverty. Bootstrapping analysis confirms the significance of governance quality as a mediator. The model describes significant energy poverty variance with robust predictive relevance. This study emphasizes the need to adopt a comprehensive strategy to decrease Pakistan’s energy poverty by articulating socioeconomic, environmental, and governance factors. Our findings offer valuable information for policymakers to achieve UN Sustainable Development Goal 7, embarking on governance reforms, promoting sustainable growth, and enforcing investments in energy efficiency and renewable sources as Pakistan approaches the 2030 SDG 7 deadline.

Demonstrating clean energy transition scenarios in sector-coupled and renewable-based energy communities.

Energy communities facilitate several advantages, including energy autonomy, reduced greenhouse gas emissions, poverty mitigation, and regional economic development. They also empower citizens with decision-making and co-ownership prospects in community renewable projects. Integrating renewable energy sources and sector coupling is a crucial strategy for flexible energy systems. However, demonstrating clean energy transition scenarios in these communities presents challenges, including technology integration, flexibility activation, load reduction, grid resilience, and business case development. Based on the system of systems approach, this paper introduces a 4-step funnel approach and a 4-step reverse funnel approach to systematically specify and detail demonstration scenarios for energy community projects. The funnel approach involves four steps. First, it selects demonstration scenarios promoting energy-efficient state-of-the-art renewable technologies and storage systems, flexibility through demand side management techniques, reduced grid dependence, and economic viability. Second, it lists all existing and planned project technologies, analysing energy flows. Third, it plans actions at different levels to implement the demonstration scenarios. Fourth, it validates the strategies using key performance indicators (KPI) to quantify the effectiveness of the planned measures. Furthermore, the reverse funnel approach delves deeper into the demonstration scenarios. The four steps involve identifying stakeholder perspectives, describing scenario scopes, listing conditions for realisation, and outlining business models, including value chains and economic assumptions. This approach provides a detailed analysis of the demonstration scenarios, considering actors, objectives, boundary conditions, and business assumptions. The methodologies are exemplified in three diverse European energy communities extending across residential, commercial, tertiary, and industrial establishments, allowing power-to-x and sector coupling opportunities. The paper also suggested thirteen KPIs for validating renewable-focused energy community projects. Finally, the paper recommends increased collaboration between energy communities, knowledge sharing, stakeholder engagement, transparent data collection and analysis, continuous feedback, and method improvement to mitigate policy, technology, business, and market uncertainties.

The Human Conception of Neuroeconomics: Homo-Neurobiologicus

One of the fundamental assumptions of neoclassical economics is the concept of the homo-æconomicus. This model assumes that individuals are rational, pursue personal interests, and aim to maximize their utility or profits based on choices determined by external factors. Neuroeconomics, however, challenges this idealized human model and focuses on understanding how people actually behave in the real world. By examining human decision-making processes and behaviors through laboratory studies and field analysis, neuroeconomics seeks to understand the neurobiological processes behind economic decisions. This approach suggests that people make decisions not only based on external factors or rationality but also influenced by emotions, thoughts, and their neurobiological structures. In this context, neuroeconomics points to a completely different nature of humans, contrary to the homo-æconomicus model: This human model, whose behavior is influenced by its social and economic nature and its neurobiology, is termed as homo-neurobiologicus. In this a person's economic decisions are largely determined by their neurobiological structure. The purpose of this study is to examine the homo-neurobiologicus which is the human understanding of neuroeconomics, and to highlight the differences and similarities between it and homo-æconomicus.

Reevaluating Economic Drivers of Household Food Waste: Insights, Tools, and Implications Based on European GDP Correlations

This article examines the relationship between household food waste and Gross Domestic Product (GDP) in various European regions, aiming to determine how economic prosperity influences the levels of household food waste. Using comparative analysis of secondary and tertiary data, a synthetic indicator (IpFW) was developed to assess the interaction between GDP per capita and household food waste per capita. Linear correlation analysis was also applied for better interpretation of the data. Despite expectations, higher GDP is not consistently correlated with lower household food waste, challenging economic prosperity and environmental stewardship assumptions. This research highlights the complexity of the interaction between economic factors and household food waste management, revealing a lack of significant correlation even at the regional level. The findings indicate a need to re-evaluate current policies and highlight that improving food supply chains and influencing consumer behavior can promote more sustainable consumption patterns, which is in line with the Sustainable Development Goals.

Regional drivers of industrial decarbonisation: a spatial econometric analysis of 238 EU regions between 2008 and 2020

ABSTRACT The European context of socio-economic integration and physical proximity likely plays an essential role in explaining the decarbonisation outcomes of industrial sectors. However, there is hardly any spatial regional analysis on CO2 emissions drivers in European countries. This study investigates the role of geographical space and regional determinants in industrial decarbonisation by analysing how socio-economic drivers and their interregional relationships impact industrial carbon emissions in European regions. We employ a spatial panel data econometric model to a novel panel dataset comprising 13 years (2008–20) of carbon emissions from hard-to-abate industrial sectors from 238 NUTS-2 regions across 27 European Union countries. Results indicate the presence of endogenous spatial interactions and high-time persistence between CO2-eq emissions in European Union regions. As such, industrial carbon emissions of regions follow similar patterns to their neighbours, supporting the evolutionary economic geography and growth theory assumptions of the spatial interaction of carbon emissions between regions. Furthermore, the use of a spatial econometric model illustrates the negative direct and spillover effects that higher levels of education and regional investment in research and development have on industrial CO2-eq emissions.

Why it works: Using qualitative methods in economic education research

The authors of this article present arguments for why and how qualitative research should be used in economic education. These arguments recognize the nature of economics as a discipline and economics educators’ current expertise and preferences. The authors have five goals: (i) clarifying how and why the use of qualitative research in economic education fits in with economics as a discipline; (ii) identifying practical limitations of quantitative research in economic education; (iii) reviewing the limited literature on qualitative research in economic education; (iv) proposing how qualitative and quantitative methods can be combined in a mixed methods approach that recognizes the methodological assumptions of economics and the expertise of economists, and finally, (v) suggesting characteristics of systematic and rigorous qualitative research in economic education.

Are pensions “growth-dependent”?

Limits to growth raise concerns about “growth dependencies” or adverse social effects that follow if the economy does not grow. The first point of this article is that identifying pensions as growth-dependent is more conditional than has so far been recognized. It requires operationalizing growth dependence, making complete economic assumptions, and scoping the issue to specific pension functions. The second point is to take those steps and, with exploratory scenarios, show how growth dependence is and is not evident under all ideal-type pension-financing principles. All plans would be growth-dependent if we interpret the end of growth as lower interest rates and earnings development but higher inflation than under growth assumptions. However, no plan shows growth dependence under all assumptions. I also discuss post-growth pensions, arguing that funded pensions entail vulnerability and distributional issues that make them problematic in a non-growing system. Unfunded financing combined with comprehensive social and economic policies could work as a long-term approach. Growth dependence is an important research area. However, without specification, the concept may blur the conditionalities that generate and alleviate pension vulnerabilities.

Malleability of preferences for honesty

Abstract Reporting private information is a key part of economic decision making. A recent literature has found that many people have a preference for honest reporting, contrary to usual economic assumptions. In this paper, we investigate whether preferences for honesty are malleable and what determines them. We experimentally measure preferences for honesty in a sample of children. As our main result, we provide causal evidence on the effect of the social environment by randomly enrolling children in a year-long mentoring programme. We find that, about four years after the end of the programme, mentored children are significantly more honest.

Rediscovering the Developmentalist-Productive Roots of Welfare State Policies

Persistent calls for social investment-oriented social policy suggest that existing social policies are unsustainable and need radical rethinking. Instead, this paper argues that we need to better understand how long-standing policies have enabled society’s adaptation to socioeconomic changes and forestalled experiences of marginalization, poverty, and acute vulnerability. Inspired by the historical success of Nordic-style social policies, I reconsider the relation between development studies and welfare state studies, synthesize ideas from both, elaborate on the inclusive strand of welfare developmentalism, and introduce a conceptual framework for explaining why existing social policies may be simultaneously protective and productive. Applying social developmentalist ideas from the Global South to the traditional welfare state literature of the Global North, this paper advances a theoretical explanation for why what I term “developmental welfare state policies” defy standard economic assumptions through preventive investments that inhere in existing policy variants. It cautions against promoting separate social investment policies or characterizing policies as exclusively passive or activating.

Hegemonic Discourses Surrounding United States’ Leadership in Post-Ebola Development in Liberia

Abstract This study examines the hegemonic discourses surrounding USAID’s leadership in post-Ebola Liberia between 2015 and 2020. Using documents and critical discourse analysis, the study finds that USAID’s overarching goal of empowering Liberians, especially women, was primarily on humanitarian grounds. However, the study revealed the significant extent to which ideological and political economic assumptions influenced USAID’s prioritization of Liberia in the fight against Ebola in West Africa. These findings call for advancing research on the concept of national interest in international development discourse and practice, as well as the political economy of aid to sub-Saharan Africa from a neocolonialist lens.

The role of budget impact and its relationship with cost-effectiveness in reimbursement decisions on health technologies in the Netherlands

Health authorities using cost-effectiveness analysis (CEA) for informing reimbursement decisions on health technologies increasingly require economic evaluations encompassing both CEA and budget impact analysis (BIA). Good Research Practices advocate that the economic and clinical assumptions underlying these analyses are aligned and consistently applied. Nonetheless, CEAs and BIAs often are stand-alone analyses used in different stages of the decision-making process. This article used policy reports and Ministerial correspondence to discuss and elucidate the role of budget impact and its relationship with cost-effectiveness in reimbursement decisions in the Netherlands. The results indicate that CEAs and BIAs are both considered important for informing these decisions. While the requirements regarding CEAs—and application of the associated decision rule—are consistent across the different stages, the same does not hold for BIAs. Importantly, the definition of and evidence on budget impact differs between stages. Some important aspects (e.g. substitution and saving effects) typically are considered in the assessment and appraisal stages but are seemingly not considered in price negotiations and the final reimbursement decision. Further research is warranted to better understand why BIAs are not aligned with CEAs (e.g. in terms of underlying assumptions), vary in form and importance between stages, and do not have a clear relationship with the results of CEAs in the decision-making framework. Improving the understanding of the circumstances under which decision-makers attach a relatively larger or smaller weight to (different aspects of) budget impact may contribute to increasing the transparency, consistency, and optimality of reimbursement decisions in the Netherlands.

A novel techno-economical layout optimization tool for floating wind farm design

Abstract. Over the past few years, the offshore wind sector has been subject to renewed yet growing interest from the industry and from the research sphere, with a particular focus on a recently developed concept, the floating offshore wind (FOW). Because of its novelty, floating research material is found in limited quantity. This paper focuses on the layout optimization of a floating offshore wind farm (FOWF) considering multiple parameters and engineering constraints, combining floating-specific parameters together with economic indicators. Today’s common wind farm layout optimization codes do not take into account either floating-specific technical parameters (anchors, mooring lines, inter-array cables (IACs), etc.) or non-technical parameters (operational expenditure, OPEX; capital expenditure, CAPEX; and other techno-economic project parameters). In this paper, a multi-parametric objective function is used in the optimization of the layout of a FOWF, combining the annual energy production (AEP) together with the costs that depend on the layout. The mooring system and the collection system including the inter-array cables and the offshore substation are identified as layout-dependent and therefore modeled in the optimization loop. Using ScotWind site 10 as a study case, it was found with the predefined technical and economic assumptions that the profit was increased by EUR 34.5 million compared to a grid-based layout. The main drivers were identified to be the AEP, followed by the anchors and the availability associated with the failures of inter-array cables.

Economic analysis of world cities using improved deep shallow learning network with intelligent shell game optimization

An economic analysis is required to determine the financial status of every city throughout the world The economic growth of a city depends on multiple factors like health, finances, transport, industry, and so on. Therefore, it is necessary to have a user-friendly factor for handling the economic data regarding the financial evaluation outcomes The main motive behind this research work is to tackle the issue of low prediction accuracy of the conventional economic and financial growth trend assumption model by developing a model using the latest deep network technology. The data regarding the economic status of a city is collected from standard online sources. The collected data are given to the preprocessing for economic prediction in any city throughout the world phase. After that the optimal attributes from the preprocessed data are extracted with the help of a newly suggested Accuracy-based Shell Game Optimization (ASGO) algorithm Consequently, the chosen optimal attributes are given as input to the final prediction stage. The economy prediction of a city is done using the Optimized and Deep Shallow Learning Network (ODSLN). The parameters in the ODSLN are tuned using the same ASGO algorithm. This helps in enhancing the prediction functionality of the deployed model over large dimensional data. The developed model is validated with standard performance metrics against other conventional prediction models. Throughout the result analysis, the developed model attains a 94% accuracy rate and 93% sensitivity rate which is much better than the existing approaches. The efficiency of the suggested deep learning-based economic prediction model is evaluated against the recently developed model based on several performance measures.

Improving the representation of smallholder farmers’ adaptive behaviour in agent-based models: Learning-by-doing and social learning

Computational models have been used to investigate farmers’ decision outcomes, yet classical economics assumptions prevail, while learning processes and adaptive behaviour are overlooked. This paper advances the conceptualisation, modelling and understanding of learning-by-doing and social learning, two key processes in adaptive (co-)management literature. We expand a pre-existing agent-based model (ABM) of an agricultural social-ecological system, RAGE (Dressler et al., 2018). We endow human agents with learning-by-doing and social learning capabilities, and we study the impact of their learning strategies on economic, ecological and social outcomes. Methodologically, we contribute to an under-explored area of modelling farmers’ behaviour. Results show that agents who employ learning better match their decisions to the ecological conditions than those who do not. Imitating the learning type of successful agents further improves outcomes. Different learning processes are suited to different goals. We report on conditions under which learning-by-doing becomes dominant in a population with mixed learning approaches.

Analyzing the Impact of Quality of Public Governance on the Market Value of Companies Listed on the Amman Stock Exchange

This study aimed to examine the impact of public governance quality on the market value of companies listed on the Amman Stock Exchange from 2002 to 2021. The study utilized the Autoregressive Distributed Lag (ARDL) model to analyze slow-moving distributed time series. The findings indicated a significant and positive correlation between various indicators of quality of public governance, such as voting and accountability, political stability and absence of violence, and organizational quality, with the market value of the listed companies. These results align with economic theory assumptions. However, in terms of Monetary freedom, another important indicator of the quality of public governance, the study found no statistically significant relationship with the market value of the listed companies at a significant level. This observation may be attributed to the government's limited capacity to manage the country's public financial resources efficiently and effectively, particularly regarding transparent and responsible administration of taxation, debt, and government expenditure.

Pedagogical Values and the Lawful Rules of Islamic Behavior in Consumption

This research delves into the intricate relationship between Islamic pedagogical values and Muslim consumer behavior, drawing upon the timeless wisdom of the Quran and Sunnah. It establishes a valuable theoretical framework, supported by a generalized logistic model, to illuminate how Islamic principles influence spending decisions within permissible boundaries. The research meticulously outlines the lawful rules governing consumption in Islam, categorized by permissible and prohibited actions to guide Muslims in their choices. Key findings reveal the holistic nature of Islam, highlighting its comprehensive influence on all aspects of life, including consumption. Islamic pedagogical values emerge as a powerful force in shaping behavior, weaving a tapestry of rules encompassing obligations like adhering to Halal principles, and prohibits extravagance, wastefulness, and stinginess. Moderation emerges as a cornerstone, steering consumers away from both extremes and illustrating how the Islamic framework accommodates increased income without necessarily leading to a proportional increase in consumption. The research challenges mainstream economic assumptions, presenting Islam’s perspective on spending and shedding light on the religious dimensions that shape consumer behavior within an Islamic framework. Beyond economic principles, the research highlights the exemplary life of Prophet Muhammad, offering practical examples of simplicity, moderation, and ethical consumer behavior, even in challenging circumstances. It advocates for integrating these values into decision-making processes, particularly in consumption matters, encouraging individuals to align their financial choices with Islamic jurisprudence and contribute to the overall well-being of the Muslim community. In conclusion, this research significantly enhances our understanding of Muslim consumer behavior, emphasizing the role of pedagogical values and lawful rules. The findings hold valuable implications for stakeholders like marketers, policymakers, and businesses seeking to engage with Muslim consumers, offering insights into product categorization and tailored engagement strategies. The research also introduces practical tools for further analysis and exploration, while acknowledging limitations and encouraging future research to refine our understanding across diverse cultural and religious landscapes.

Coal mine methane in Kazakhstan: economic and environmental case study

The study aimed to evaluate the economic and financial viability of a coal mine methane (CMM) utilization project in Central Kazakhstan, demonstrating a methodology for similar initiatives. The analysis was based on the 2013 project proposed by the US Environmen-tal Protection Agency (EPA) that intended to capture methane emissions from six coal mines for electricity generation, yet was never implemented. The study’s relevance stems from Kazakhstan’s 2030 methane pledge, recent progress in the country’s climate change-related policy, mineworker mortality in 2023, and the shift of mines ownership. Building upon the technical specifications of the 2013 US EPA project, this research em-ployed standard financial and economic cost-benefit analysis (CBA). The financial model utilized a traditional discounted free cash flow approach, while the economic model in-corporated additional factors like the value of statistical life (VSL), shadow pricing, as well as benefits associated with mitigating ozone health impacts, crop damage, mine ex-plosion risks, and CO2 emissions. The economic model has indicated a positive net pre-sent value of $243 mln and 42% internal rate of return. The financial analysis also sug-gests potential profitability under fair electricity and carbon pricing market conditions. To assess project robustness under varying economic and financial assumptions, the study included a sensitivity analysis. The research has likewise leveraged prior CMM-related studies in Kazakhstan and provides valuable guidance for analyzing similar projects. In addition, it also highlights the need for certain adjustments in the current legislation to incentivize such projects, as well as to promote environmental sustainability and social development by mitigating methane emissions, which aligns with Kazakhstan’s climate goals.

Empirical Assessment of Economic Assumptions, Domestic Regulations, and their Impacts on Cross-Border Investments into Nigeria.

Empirical Assessment of Economic Assumptions, Domestic Regulations, and their Impacts on Cross-Border Investments into Nigeria.