Opportunity Cost Research Articles

The Promise and Opportunity Costs of New Rehabilitation Technology in the ICU.

The Promise and Opportunity Costs of New Rehabilitation Technology in the ICU.

Educational Tourism: A Behavioral and Perceptual Analysis of Chinese Students in Malaysian Public Universities

ABSTRACT This study embarks on an exhaustive exploration of these determinants, leveraging the Theory of Planned Behavior (TPB) to decipher their interaction and overall impact on educational tourism. The research examines a variety of psychological variables, Attitudes, Subjective Norms, Perceived Behavioral Control, Resource Availability, Self-Esteem Motivation, Novelty Seeking, Perceived Value, and Opportunity Cost, focusing on their modulation by Resource Availability and Novelty Seeking. A structured closed-ended questionnaire serves as the research instrument, obtaining responses from 376 participants over a period of three months. The collected data is meticulously analyzed using the Smart PLS tool. The results illuminate considerable direct and indirect relationships between these factors and their consequent effect on educational tourism. Specifically, Attitudes, Subjective Norms, and Perceived Behavioral Control significantly influence Resource Availability, Self-Esteem Motivation, and Novelty Seeking. In turn, Resource Availability and Novelty Seeking exert a positive effect on educational tourism, while Self-Esteem Motivation shows a minor positive correlation. Perceived Value and Opportunity Cost also play an instrumental moderating role. Although perceived value positively modulates the influence of resource availability, counterintuitively, it exerts a negative moderating effect on novelty seeking. Opportunity Cost presents mixed moderation results. The study concludes by highlighting potential future research directions.

Dynamic marine spatial planning for conservation and fisheries benefits

AbstractThe increasing global demand for marine resources raises concerns about sustainable resource management and biodiversity conservation. Spatial closures, such as marine protected areas, can be valuable tools for maintaining and restoring exploited populations. When these spatial closures adopt a dynamic nature being adapted to the changing environment, they can effectively account for factors such as shifting species distributions, which enhances their potential to achieve ecological and socio‐economic objectives. Here, we adapted a decision‐support tool (the software Marxan), typically used for selecting static and permanent areas, to produce management recommendations that integrate permanent and temporal closures to fisheries. Our aim was to compare the outputs of a static network of permanent no‐take reserves with four other dynamic scenarios, including permanent and temporal closures that account for seasonal variations in the populations of species. All scenarios prioritized sites for the conservation of one of the most valuable European fishing stocks, the Norway lobster (Nephrops norvegicus). Additionally, we considered 12 other commercially exploited species captured by the Norway lobster fishery. The assessed outputs included retained biomass, area extent, closure type (permanent and seasonal) and opportunity costs within each scenario. We observed that all dynamic scenarios required fewer management areas permanently closed than the static scenario. This resulted in a lower opportunity cost for fisheries but also a higher capacity for biodiversity conservation. Therefore, complementing permanent with temporal closures could enhance biodiversity conservation and fisheries management. The novel dynamic planning method presented here could be applicable to other species, ecosystems and socio‐economic contexts.

An anthropological history of Nepal’s Female Community Health Volunteer program: gender, policy, and social change

BackgroundCommunity health workers (CHWs) are central to Primary Health Care globally. Amidst the current flourishing of work on CHWs, there often is a lack of reference to history—even in studies of programs that have been around for decades. This study examines the 35-year trajectory of Nepal’s Female Community Health Volunteers (FCHVs).MethodsWe conducted a content analysis of an archive of primary and secondary research materials, grey literature and government reports collected during 1977-2019 across several regions in Nepal. Documents were coded in MAXQDA using principles of inductive coding. As questions arose from the materials, data were triangulated with published sources.ResultsLooking across four decades of the program’s history illuminates that issues of gender, workload, and pay—hotly debated in the CHW literature now—have been topics of discussion for observers and FCHVs alike since the inception of the program. Following experiments with predominantly male community volunteers during the 1970s, Nepal scaled up the all-female FCHV program in the late 1980s and early 1990s, in part because of programmatic goals focused on maternal and child health. FCHVs gained legitimacy as health workers in part through participation in donor-funded vertical campaigns. FCHVs received a stable yet modest regular stipend during the early years, but since it was stopped in the 1990s, incentives have been a mix of activity-based payments and in-kind support. With increasing outmigration of men from villages and growing work responsibilities for women, the opportunity cost of health volunteering increased. FCHVs started voicing their dissatisfaction with remuneration, which gave rise to labor movements starting in the 2010s. Government officials have not comprehensively responded to demands by FCHVs for decent work, instead questioning the relevance of FCHVs in a modern, medicalized Nepali health system.ConclusionsAcross public health, an awareness of history is useful in understanding the present and avoiding past mistakes. These histories are often not well-archived, and risk getting lost. Lessons from the history of Nepal’s FCHV program have much to offer present-day debates around CHW policies, particularly around gender, workload and payment.

The motivating and mobilizing effects of inequality on civil conflict: Focusing on trade-induced labor market shocks

This article has two aims: (1) to identify the causal effect of income inequality on civil conflict and (2) to find the mechanism in which disadvantaged individuals can mobilize collective violence. Applying the Heckscher-Ohlin and Stopler-Samuelson theorems, this study hypothesizes that workers in land-rich countries – those who face contracted demand in the labor market and consequently a larger income disparity – will have a lower opportunity cost to engage in conflict as trade expands. Exploiting exogenous spatial variation in inequality due to the country’s factor endowment, together with time variation in tariffs arising from the economic liberalization, the work of this research documents a statistically significant and economically meaningful causal effect of inequality on civil conflict. Secondly, to identify the mobilizing effect of inequality, I test whether higher disparity in income distribution within an ethnic group breeds more rebellions initiated by the group. Esteban and Ray’s model claims that an increase in income inequality within an ethnic group makes collective violence more likely, because the poor within the group provide conflict labor, and the rich within the group provide resources for violence. By merging international census data that cover 115 million individuals from 221 ethnic groups with the groups’ conflict records, the analysis empirically identifies that when holding total ethnic income constant, within-group inequality that is proxied by the unemployment rate is strongly correlated with the group’s propensity to initiate armed conflicts. Shedding new light on the prevailing scholarly discord that exclusively chooses either one of class and ethnic cleavages as sources of intrastate violence, the findings of this study imply that if trade-induced labor market shocks increase within-group inequality, it motivates workers to participate in rebellions by lowering their opportunity cost of fighting and mobilizes ethnic collective violence by allowing the ethnic leaders to recruit combatants at a lower cost.

Diminishing Justice and Third-Party Intervention: Explaining Russia’s Impartial Stance During the 2020 Karabakh War

ABSTRACT This article examines Russia’s impartiality during the second Karabakh war between Azerbaijan and Armenia in 2020, despite its close military-strategic alliance with the latter. Russia’s behavior represents a twofold deviation: a weakening of its security commitments to Armenia, and a more balanced policy in a frozen conflict in the post-Soviet space. Four factors are examined that could account for explaining this puzzle, namely increasing bandwagoning of Azerbaijan with Russia, rising opportunity costs of intervention due to Turkey’s support to Azerbaijan, Russia’s potential discontent with Armenia after the 2018 Velvet Revolution, and the role of a justice motive in Russian policy toward the conflict.

Water Infrastructure System Leakage Analysis: Evaluation of Factors Impacting System Performance and Opportunity Cost

Concerns over both water quality and quantity continue to increase globally. As the need for useable and potable water becomes more of a widespread issue, there is an opportunity to review and consider alternatives to how water is used, consumed, and sustained for future use by the world’s population. A review of data across cities within North America shows improvement opportunities in water infrastructure systems. Using water audit and loss control data from the American Water Works Association (AWWA) and the Water Research Foundation (WRF), an analysis is provided to define opportunities for mitigating water losses among select North American Water Infrastructure systems in the U.S. states of Georgia and California. The research methodology used includes statistical analysis data while grouping utility sizes to identify utility cost opportunities. Variables on water loss and customer cost that have a positive impact on overall and long-term water system sustainability are identified. The analysis shows California, while having firm water guidance and higher rates compared to Georgia, also demonstrates less overall water loss. The results of the analysis are presented, showing comparison characteristics and opportunities for additional change to improve utility funding.

Efficiency of a Neurosurgical Operating Room According to Nursing Characteristics in a University Hospital: From Operating Times to a Cost-Benefit Analysis

BACKGROUND AND OBJECTIVES: The primary objective of this study was to evaluate the influence of operating room nurse (ORN) characteristics on the duration of elective neurosurgical procedures in adults. In addition, we conducted a cost-benefit analysis of various strategies for organizing the workflow of ORNs. METHODS: We collected and analyzed operating times for adult elective neurosurgical procedures, categorizing them by surgeon, procedure complexity (dichotomized as technologically complex and simple), and ORN characteristics (dichotomized as ORN dedicated to neurosurgery [dORN] and ORN not dedicated to neurosurgery [ndORN]). The monetary valuation of operating times is based on the unitary cost per minute of the operating room, including opportunity costs of ORN, as well as their training costs and salaries. Cost-benefit analysis adopted the hospital perspective. RESULTS: Analysis of operating times reveals an approximately 20-minute difference for complex procedures when performed with ndORN. However, there is no significant difference in operating times for simple procedures, whether they are conducted by dORN or ndORN. The additional annual cost incurred by complex procedures performed with ndORN is estimated at CHF 68 144.4 for the Geneva University Hospitals. CONCLUSION: Complex neurosurgical procedures exhibit shorter durations when performed by dORNs. We explore several hypotheses to explain this difference. By adapting available human resources and optimizing workflow organization, hospitals can potentially achieve a net benefit.

Acceptability and experience of a smartphone symptom monitoring app for people with psychosis in China (YouXin): a qualitative study

BackgroundAccess to high-quality mental healthcare remains challenging for people with psychosis globally, including China. Smartphone-based symptom monitoring has the potential to support scalable mental healthcare. However, no such tool, until now, has been developed and evaluated for people with psychosis in China. This study investigated the acceptability and the experience of using a symptom self-monitoring smartphone app (YouXin) specifically developed for people with psychosis in China.MethodsSemi-structured interviews were conducted with 10 participants with psychosis to explore the acceptability of YouXin. Participants were recruited from the non-randomised feasibility study that tested the validity, feasibility, acceptability and safety of the YouXin app. Data analysis was guided by the theoretical framework of acceptability.ResultsMost participants felt the app was acceptable and easy to use, and no unbearable burdens or opportunity costs were reported. Participants found completing the self-monitoring app rewarding and experienced a sense of achievement. Privacy and data security were not major concerns for participants, largely due to trust in their treating hospital around data protection. Participants found the app easy to use and attributed this to the training provided at the beginning of the study. A few participants said they had built some form of relationship with the app and would miss the app when the study finished.ConclusionsThe YouXin app is acceptable for symptom self-monitoring in people with experience of psychosis in China. Participants gained greater insights about their symptoms by using the YouXin app. As we only collected retrospective acceptability in this study, future studies are warranted to assess hypothetical acceptability before the commencement of study to provide a more comprehensive understanding of implementation.

The Indirect Costs of Avoidance in Food Allergy Management: A Scoping Review

Background: Food allergy management requires avoidance of allergenic food. While the direct costs of food allergy management have been described, avoidance may also contribute to time and opportunity costs. We aimed to conduct a scoping review of the peer-reviewed literature on the indirect costs of food allergy, and to characterise these costs through a series of fictitious case studies. Methods: We performed a scoping review, guided by Arskey and O’Malley’s methodological framework, and reported using the Preferred Reporting Items for Systematic Reviews and Meta-analyses extension for Scoping Reviews. Eligible studies included original, peer-reviewed, English language literature with no lower limits to publication dates, which addressed the indirect costs of food allergy, including time and opportunity costs. A search strategy was developed by content experts with experience performing multi-database scoping reviews. The search was performed on 10 July 2023, managed using Rayyan (Cambridge, USA), and screened for eligibility. Results: Searches yielded 104 articles. After deduplication, 96 articles were screened at the title and abstract level; 12 articles were included following full-text screening. Of these, three studies were performed on adults with food allergy, eight studies were based on data collected from caregivers of children with food allergy, and one study made use of data reflecting adults and caregivers of children with food allergy. Collectively, indirect costs were identified as higher amongst those with vs. without food allergy. The few studies on age and food allergy differences (e.g., type and number of food allergies, history of reaction) are equivocal. Conclusions: The limited body of peer-reviewed literature supports that food allergy commonly carries substantial indirect costs across diverse measurement tools, albeit with age-group differences.

Cognitive offloading is value-based decision making: Modelling cognitive effort and the expected value of memory

How do people decide between maintaining information in short-term memory or offloading it to external reminders? How does this affect subsequent memory? This article presents a simple computational model based on two principles: A) items stored in brain-based memory occupy its limited capacity, generating an opportunity cost; B) reminders incur a small physical-action cost, but capacity is effectively unlimited. These costs are balanced against the value of remembering, which determines the optimal strategy. Simulations reproduce many empirical findings, including: 1) preferential offloading of high-value items; 2) increased offloading at higher memory loads; 3) offloading can cause forgetting of offloaded items (‘Google effect’) but 4) improved memory for other items (‘saving-enhanced memory’); 5) reduced saving-enhanced-memory effect when reminders are unreliable; 6) influence of item-value: people may preferentially offload high-value items and store additional low-value items in brain-based memory; 7) greatest sensitivity to the effort of reminder-setting at intermediate rather than highest/lowest levels of task difficulty; 8) increased offloading in individuals with poorer memory ability. Therefore, value-based decision-making provides a simple unifying account of many cognitive offloading phenomena. These results are consistent with an opportunity-cost model of cognitive effort, which can explain why internal memory feels effortful but reminders do not.

Careworn: The Economic History of Caring Labor

Economists ignore caring labor since most is provided unpaid. Disregard is unjust, theoretically indefensible, and probably misleading. Valuation requires estimates of time spent and the replacement or opportunity costs of that time. I use the maintenance costs of British workers, costs which cover both the material inputs into upkeep and the domestic services needed to turn commodities into livings, to isolate the costs of paid domestic labor. I then impute the value of unpaid domestic labor from these market equivalents, and aggregate across households without domestic servants. Historically, unpaid domestic labor represented c. 20 percent of total income, a contribution that suggests the need to revise some standard narratives.

Rapid transformation in aquatic food value chains in three Nigerian states

IntroductionNigeria is Africa’s most populous country, third largest fish producer, and second largest aquaculture producer. There have been numerous studies of aquaculture and fisheries in Nigeria, but no study to date has analyzed aquaculture and capture fisheries value chains together, while giving equal weight to all value chain segments and systematically capturing information on temporal trends in value chain structure, conduct, and performance. This paper does so.MethodsWe conducted a structured, qualitative, rapid reconnaissance survey of 180 actors from eight segments of the aquatic food value chain in three Nigerian states with contrasting geographies, Ebonyi, Kebbi, and Oyo.ResultsResults particularly important for future research and policy are as follows. (1) Partial vertical integration is a common feature of the organization of firms in all value chain segments, as a risk reduction strategy to overcome market imperfections and frictions. Scarcity and high cost of imported intermediate inputs is stimulating local innovation and import substitution manufacturing of feeds and fabricated items. (2) Inter-sectoral spillovers from the poultry industry have hastened the development of fish value chains, while improvements in power supply have enabled the expansion of cold storage capacity, facilitating the geographical lengthening of frozen fish value chains. (3) Rapid technological and/or institutional change is occurring in all value chain segments, including those usually viewed as traditional, such as processing and fishing. Logistics services are becoming more specialized and sophisticated, and digital communications technologies including social media play an increasingly important role in value chain coordination and marketing. (4) Increasing opportunity costs of time drive demand for convenience foods such as smoked and fried fish, which require little further preparation and can be stored at room temperature. Demand for farmed catfish is linked to growing consumption of food away from home at bars and restaurants. (5) Significant opportunities exist to improve the performance of value chains in terms of gender equity, environmental impacts, and food safety.

COVID-19 vaccination, preventive behaviours and pro-social motivation: panel data analysis from Japan

The COVID-19 vaccine reduces infection risk; even if one contracts COVID-19, the probability of complications such as death or hospitalisation is lower. However, vaccination may prompt people to decrease preventive behaviours, such as staying home, washing hands, and wearing a mask. Therefore, if vaccinated people pursue only self-interest, the vaccine’s effect may be lower than expected. However, if vaccinated people are pro-social (motivated toward benefits for the whole society), they might maintain preventive behaviours to reduce the spread of infection. We conducted 26 surveys almost once a month from March 2020 (the early stage of COVID-19) to September 2022 in Japan. By corresponding with identical individuals, we independently constructed the original panel data (N = 70,908). Based on the data, we identified the timing of the second vaccine shot and compared preventive behaviours before and after vaccination. We investigated whether second-shot vaccination correlated with changes in preventive behaviours. Furthermore, we explored whether the vaccination effect differed between the older and younger groups. We then investigated the effect of pro-social motivation on preventive behaviours. Major findings are as follows: (1) Being vaccinated led people to increase preventive behaviours, such as mask-wearing by 1.04 (95% confidence intervals [Cis]: 0.96–1.11) points, and hand hygiene by 0.34 (95% CIs: 0.30–0.38) points on a 5-point scale. (2) Vaccinated people under 65 are less likely to stay home. (3) People with pro-social motivation to be vaccinated are more likely to maintain prevention than those not so motivated; on a 5-point scale, the difference is 0.08 (95% CIs: 0.01–0.15) points for mask-wearing and 0.05 (95% CIs: 0.001–0.10) points for hand hygiene. After vaccination, the opportunity cost of staying home outweighs its benefits, and people are less inclined to stay at home. This effect is lower in older people who are at a higher risk of serious illness. The opportunity cost of wearing masks and hand hygiene is lower than that of staying home, and the benefit persists after vaccination if people are motivated to maintain these behaviours for others’ well-being.

The Opportunity Cost of Debt Aversion

We provide evidence of the existence of debt aversion and its negative implications for financial decisions. In a new experimental design where subjects are assigned debt randomly, we quantify the opportunity cost of subjects’ debt-biased decisions. One-third of our participants neglect high returns and focus instead on debt repayments. In addition, borrowing to invest is 50 percent less likely when it leads to indebtedness. On average, participants perceive $1 less in debt as equivalent to $1.03 in savings. Hence, a debt-averse agent will undertake a 10 percent guaranteed investment only if the cost of borrowing does not exceed 6.80 percent. (JEL C91, D91, G51)

How does digital finance reduce urban crime rate?

The fast development of digital finance led to profound changes in various aspects of social life, including social governance. This paper analyzes the impacts of digital finance on urban crime rates, focusing on the cost-benefit analysis of crime and verifying that digital finance can potentially decrease urban crime rates significantly. This impact is mainly attributed to digital money's transactional ease and convenience, which diminishes criminal activity by decreasing the expected return and raising opportunity costs. These findings offer novel insights into the impacts of digital finance and shed light on establishing a social governance mechanism in the digital era.

The role of regional renewable energy integration in electricity decarbonization—A case study of Japan

Decarbonization strategies depend critically on the integration of region-specific renewable energy and social acceptance, yet their roles still need to be clarified. This study designs a regional-integrated electricity system and assesses the impact of regional decisions associated with renewable energy on cost-effective national decarbonization, using Japan as a case study owing to its active engagement in regional decarbonization. A high spatial resolution renewable electricity system model that explicitly considers all 1741 Japanese municipalities and employs a hierarchical optimization approach is developed. Based on the model, the opportunity cost of limiting renewable energy development is quantified for 30 representative municipalities. The results highlight that restrictions on municipal renewable energy can increase annual system costs by hundreds of millions of euros and national electricity costs by up to 0.4%, although it varies by region and energy source. This suggests that widespread opposition to renewables could be a significant barrier to cost-effective decarbonization. However, the impact of solar photovoltaic (PV) tends to be slight. In conclusion, investments in social acceptance of region-specific renewables can minimize opportunity losses and reduce system costs. Nonetheless, relocating the project to another region is possibly more cost-effective for solar PV.

The effect of education on voter turnout in China's rural elections

Conventional wisdom and evidence from democracies suggest that more education should increase voter turnout. This paper revisits this issue by analyzing turnout in China's rural elections. Employing an instrumental variable strategy, I find that more education reduces turnout in rural elections. I provide suggestive evidence that more educated people may face higher opportunity costs of voting, which explain about a quarter of cross-province variation in education-turnout links. I also discuss the role of other factors, including Confucian culture and election stakes.

A New Approach for Better Industrial Strategies

Industrial policy is back. After having been considered a taboo since the 1970s, “new industrial policies” are at the core of governments’ strategies to support countries during crises and enable the green and digital transitions. Virtually, every government has used and uses industrial policy, despite continued concerns related to anticompetitive effects, within and across countries, captured by vested interests and the opportunity cost of public funds, which economists have pointed out, based on previous unsuccessful experiences. In this paper, we contribute to the debate on industrial policy by presenting both a sound and simple framework to help design industrial policies and also data that allow the comparison of industrial strategies and their priorities across countries. First, this paper summarises our recent framework for industrial strategies, which is designed to offer practical policy advice and shed light on the complementarities between different policy instruments. Such a framework is particularly useful when designing complex mission-oriented industrial strategies promoting the green transition of the business sector. Second, this paper presents some salient results from the new “Quantifying Industrial Strategies” (QuIS) project, which gathers harmonised data on industrial policy expenditures, policy priorities, and policy instruments, thereby allowing the benchmarking of industrial strategies across countries. Based on the aforementioned conceptual framework, QuIS measures industrial policy expenditures across 9 OECD members, for the period 2019–2021. The data, now publicly available on the OECD website, show the importance of industrial policy expenditures, and the growing role of green industrial policies in countries industrial strategies.

Can carbon tariffs based on domestic embedded carbon emissions reduce more carbon leakages?

Carbon pricing has proven to be effective in reducing regional carbon emissions, but it has also resulted in carbon leakage, one way to handle this is a carbon tariff, but controversial. This study examines the role of carbon tariffs in mitigating carbon leakage. It proposes various carbon tariff schemes that take into account both direct and embedded carbon emissions. The research findings demonstrate that carbon tariffs focusing solely on direct emissions are insufficient in curbing carbon leakage. This is because such strategies tend to impose high tariffs on energy-intensive industries, leading to increased imports of indirect‑carbon-intensive products and exacerbating carbon leakage. Therefore, it is crucial to consider embedded carbon emissions when designing carbon tariff policies. This study provides a comprehensive analysis of the implications of different carbon tariff schemes on various industries and commodities. It advocates for the implementation of carbon tariff schemes that specifically target products with high embedded carbon emissions, thereby further reducing carbon leakage. In summary, this study identifies two key factors for mitigating carbon leakage: addressing embedded carbon emissions alongside direct emissions, and taking into account the opportunity cost associated with carbon emissions resulting from unit consumption within the carbon pricing region.