Public Pricing Research Articles

Conducting techno-economic analyses of early-stage designs for net-zero water and energy affordable homes

PurposeThis study aims to provide and illustrate the application of a framework for conducting techno-economic analyses (TEA) of early-stage designs for net-zero water and energy, single-family homes that meet affordable housing criteria in diverse locations.Design/methodology/approachThe framework is developed and applied in a case example of a TEA of four designs for achieving net zero-water and energy in an affordable home in Saint Lucie County, Florida.FindingsHomes built and sold at current market prices, using combinations of well versus rainwater harvesting (RWH) systems and grid-tied versus hybrid solar photovoltaic (PV) systems, can meet affordable housing criteria for moderate-income families, when 30-year fixed-rate mortgages are at 2%–3%. As rates rise to 6%, unless battery costs drop by 40% and 60%, respectively, homes using hybrid solar PV systems combined with well versus RWH systems cease to meet affordable housing criteria. For studied water and electricity usage and 6% interest rates, only well and grid-tied solar PV systems provide water and electricity at costs below current public supply prices.Originality/valueThis article provides a highly adaptable framework for conducting TEAs in diverse locations for designs of individual net-zero water and energy affordable homes and whole subdivisions of such homes. The framework includes a new technique for sizing storage tanks for residential RWH systems and provides a foundation for future research at the intersection of affordable housing development and residential net-zero water and energy systems design.

Trends in oral anticoagulant prescription in patients with nonvalvular atrial fibrillation in Flanders and the impact of switching patients from vitamin K antagonists to DOACS in terms of the burden caused by complications of the disease: a registry-based study

ABSTRACT Context Since the introduction of direct oral anticoagulants (DOACs) for the treatment of nonvalvular atrial fibrillation (Afib), oral anticoagulants (OACs) prescription has evolved. Aim We aim first to explore the OACs prescription behaviour in Flanders from 2002 to 2019 before exploring the impact of switching patients from vitamin K antagonists (VKAs) to DOACs in terms of the burden caused by stroke as a complication of non-valvular Afib. Methods Data were obtained from INTEGO, a Flemish, general practice-based morbidity registration network. Comprised patients had at least one visit to their GP per year between 2002 and 2019 and a follow-up of at least 1 year after the diagnosis of Afib. Public prices were retrieved from the Belgian Centre for Pharmacotherapeutic Information (BCFI) and the National Institute for Health and Disability Insurance (RIZIV/ INAMI) sites. The number of Disability-Adjusted Life Years (DALYs) was based on the Global Burden of Disease (GBD) literature. The calculation of the Number Needed to Switch (NNSw) was the basis for conducting cost-utility analyses accounting for the global benefit in terms of the cost of prevented stroke/DALY and the cost of switching Flemish ≥ 65 years patients from VKAs to DOACs in two scenarios. Results Increased DOAC use has been observed since 2012. The incremental cost effectiveness ratios (ICERs) yielded 553 to 824 €/DALY of prevented stroke. Conclusion In this registry-based study, we found a significant positive trend in OAC use in Flanders between 2002 and 2019. Switching to DOACs seems cost-effective compared to a threshold of 20000€/DALY.

서울지역 중대형 오피스 매매가격의 현실화율 결정요인의 분석

This study used the Hedonic model to help introduce and establish a system to realize the official price of non-residential real estate medium and large office buildings, and based on previous studies, it selected transaction characteristics, location characteristics, and building characteristics as dependent variables. As a result of hypothesis verification, all three hypotheses related to transaction characteristics, three hypotheses related to location characteristics, and four related to building characteristics were adopted. Among the transaction characteristics, the factors adopted as determinants of the office building realization rate were sales price, 3 years of treasury bonds, 1 transaction number, and 2 transactions. Among the location characteristics, it was identified as more than 500m of land area, GBD, YBD, CBD, Others, subway station, and 20m of commercial area, roadside, and access road. In the case of building characteristics, a total of 19 factors were adopted as the floor area ratio, total floor area, total number of floors, rectangular, irregular, and less than 30 years of construction year. Since the variables adopted in this way are the main factors related to the determining factor of the official price realization rate of medium and large office buildings, it is expected that the third stage of non-residential real estate public price unification can be accelerated.

Ask a Local: Improving the Public Pricing of Land Titles in Urban Tanzania

Abstract Information on willingness-to-pay is key for public pricing and allocation of services but not easily collected. Studying land titles in Dar-es-Salaam, we ask whether local leaders know and will reveal plot owners' willingness-to-pay. We randomly assign leaders to predict under different settings then elicit owners' actual willingness-to-pay. Demand is substantial, but below exorbitant fees. Leaders can predict the aggregate demand curve and distinguish variation across owners. Predictions worsen when used to target subsidies, but adding cash incentives mitigates this. Finally, we demonstrate that leader-elicited information can improve the public pricing of title deeds, raising uptake while maintaining public funds.

Impacts of price changes on public hospital reforms in China: evidence from 25 million patients at tertiary hospitals.

China's public hospital price change reform was progressively piloted at urban-level tertiary hospitals in 2015, aiming to adjust the healthcare expenditure structure, reorient public hospitals towards social objectives and control inflated healthcare expenditure. This study investigates the impacts of price changes on inpatient expenditure, service quantity, quality and efficiency and whether the impacts varied in different specialities, treatments and hospitals. A difference-in-differences analysis was conducted using data from 25 million patients from 124 nationally representative tertiary hospitals between 2013 and 2018. The study analyses changes in total expenditure, drug, medical services and diagnostic test/medical consumables expenditure per admission, the use of antibiotics, performed surgery, readmission within 30 days and length of stay (LOS). These factors are examined before and after adjusting the price changes for demographic, socioeconomic and clinical covariates. The price changes decreased drug expenditure per admission (-13.5%, P < 0.001, USD 96.6) and increased medical services expenditure per admission (30.9%, P < 0.001, USD 153.3). They also reduced the LOS (-1.2%, P = 0.019, 0.1 days) while not significantly affecting total expenditure per admission, diagnostic test/medical consumables per admission and the use of antibiotics, surgery performed and readmission rates. In heterogeneity analysis, price changes reform increased efficiency in major diagnostic categories (MDCs) with high drug share and improved quality in nonoperating room surgical groups and hospitals with high drug share; however, it increased total expenditure in MDCs with low drug share or surgical groups. China's public hospital price change reform generally adjusted the inpatient expenditure structure and reduced the LOS in tertiary public hospitals. Sufficient compensation from medical services and government subsidies that minimize the income effects may be the key to the success of price change reform.

공공임대주택 입주의사결정은 주변 주거환경과 관련이 있는가?

Happy housing to promote housing stability for young people has recently faced the problem of a surge in long-term public prices. Given that happy housing is a residential welfare program in which large-scale government finances are administered, it is an important issue that the number of homes that have been vacant for a long time is increasing significantly. There are various causes for Gong-ga. This study analyzed the relationship between the residential environment in terms of location and the occurrence of public housing using GIS. According to the calculation of the integrated location accessibility index by geographical analysis of 4 places with 20% or more and 5% of the total number of houses, the location of happy housing complexes in Uijeongbu, Gimpo, and Dangjin in Gyeonggi Province was relatively poor. Based on these results, this study argued that it is necessary to closely examine the analysis of the residential environment using accurate geographic information data when establishing a future public rental housing supply plan.

Why Do Pricing Rules Matter? Electricity Market Design with Electric Vehicle Participants

The energy transition, a process in which fossil fuels are being replaced by cleaner sources of energy, comes with many challenges. The intrinsic uncertainty associated with renewable energy sources has led to a search for complementary technologies to tackle those issues. In recent years, the use of electric vehicles (EVs) has been studied as an alternative for storage, leading to a much more complex market structure. Small participants are now willing to provide energy, helping to keep the desired balance of supply and demand. In this paper, we analyse the electricity spot market, providing a model where EVs decide to participate depending on the underlying conditions. We study pricing rules adapted from versions currently in use in electricity markets, and focus on two of them for our experimental settings: integer programming (IP) and extended locational marginal (ELM) pricing. We particularly pay attention to the properties those prices might satisfy, and numerically test them under some scenarios representing different levels of participation of EVs and an active demand side. Our results suggest that IP pricing generally derives larger individual uplift payments and further produces public prices that are not well aligned with the final payments of market participants, leading to distortions in the market.

Cost-effectiveness of pembrolizumab for the first-line treatment of recurrent or metastatic head and neck squamous cell carcinoma in the United States

Aims Pembrolizumab, as monotherapy in first-line recurrent or metastatic (R/M) head and neck squamous cell carcinoma (HNSCC) with a combined positive score (CPS) ≥1 and in combination with platinum and 5-fluorouracil (5-FU) in the overall R/M HNSCC population, received US FDA approval based on the KEYNOTE-048 trial. Using public drug prices, from a US payer perspective, we evaluated the cost-effectiveness of each pembrolizumab regimen vs. cetuximab + platinum+5-FU (EXTREME regimen, trial comparator), cisplatin + docetaxel + cetuximab (TPEx regimen), cisplatin + paclitaxel, and platinum+5-FU. Methods A three-state partitioned-survival model was used to project costs and outcomes over 20 years with 3% annual discounting. Progression-free and overall survival were modeled using long-term extrapolation of KEYNOTE-048 data and, for alternative comparators, data from a network meta-analysis was used. Time-on-treatment was derived from KEYNOTE-048 or approximated using network meta-analysis progression-free survival estimates. Costs included first-line and subsequent treatments, disease management, adverse events, and terminal care costs. Utilities were derived from the KEYNOTE-048 Euro-QoL five-dimension data and using a US algorithm. Results In the CPS ≥1 R/M HNSCC population, pembrolizumab monotherapy was dominant vs. EXTREME and TPEx regimens, and cost-effective (at $100,000/QALY threshold) vs. platinum+5-FU ($86,827/QALY) and cisplatin + paclitaxel ($81,473/QALY). Pembrolizumab combination therapy in the overall R/M HNSCC population was dominant vs. TPEx regimen, and cost-effective vs. EXTREME regimen ($1769/QALY), platinum+5-FU ($81,989/QALY), and cisplatin + paclitaxel ($89,505/QALY). Sensitivity analyses showed a high cost-effectiveness probability for pembrolizumab at the $100,000/QALY threshold. Conclusions First-line pembrolizumab monotherapy in patients with CPS ≥1, and pembrolizumab combination therapy in the overall R/M HNSCC population is cost-effective from the perspective of the US payers.

An Assessment of the Accessibility of Multiple Public Service Facilities and Its Correlation with Housing Prices Using an Improved 2SFCA Method—A Case Study of Jinan City, China

The spatial distribution and accessibility of urban public service facilities affect socioeconomic factors in the lives of residents, especially housing prices. Given that most previous studies focus on the accessibility of a certain, single type of facility and its impact on housing prices, this research uses improved two-step floating catchment area (2SFCA) methods by considering the differences in the service capacity of different types of public service facilities in real life to evaluate their accessibility to residential communities in Jinan city based on 3117 facilities covering 11 different kinds of facilitates. Then, we assess the spatial distribution of the impact of the accessibility of different public service facilities on housing prices in Jinan city through a local indicator of a spatial association (LISA) cluster diagram generated based on the bivariate local Moran’s index. Our objectives are to assess the accessibility of multiple public service facilities using an improved 2SFCA method and to explore the spatial correlations between the accessibility of public service facilities and housing prices. The results show that the housing prices in Jinan are clustered and that the areas with high housing prices are mainly concentrated in the Lixia District and the center of the downtown area. The accessibility of medical, shopping, educational and bus stop facilities in the Lixia District is better than that in other districts. The accessibility of shopping, medical and tourist attraction facilities has the most significant impact on housing prices, and the number of communities in which the accessibility of these public service facilities and housing prices form a positive correlation cluster accounts for 50.5%, 47.9% and 45.8% of all communities, respectively. On the other hand, educational accessibility and bus stop accessibility have nothing to do with housing prices, and the number of communities in which the accessibility of these public service facilities forms a not-significant cluster with housing prices accounting for 51.1% and 56.5% of the total, respectively. In this study, the combined 2SFCA method is used to improve the method for evaluating the accessibility of a variety of public service facilities, and its applicability is verified by practical application. By analyzing the spatial correlation between accessibility and housing prices, we expand our understanding of accessibility and show that it plays a central role in housing prices, which will help to improve the spatial pattern of urban public places in the future, provide support for decision makers and provide a reference for the government and real estate developers.

Medical Diagnosis Decision Based on Psychological Cognition Difference of Multistakeholder

This paper firstly reviews the achievements and existing problems of China’s government in the supervision of medical service price in public hospitals in recent years. On this basis, patient’s interests, the interests of the public hospital, medical staff perspective, analysis of the three main psychological cognitive differences’ influence on medical diagnosis strategy, and the utility of public hospital medical service price regulation are analyzed, and accordingly perfect China’s public hospital medical service price regulation suggestions are put forward. In this paper, taking a medical institution as an example, combined with the psychological cognitive differences of multi-interest theme, and through research, it is shown that the causes of influencing the unreasonable admission behavior of patients in medical institutions are as follows: first, the characteristics of vulnerable groups of patients affect the unreasonable admission behavior, mainly children and the elderly. Second, the health risk avoidance psychology drives patients to be hospitalized unreasonably, especially those with chronic diseases or those who pay attention to their own health. Third, the influence of convenience degree on unreasonable admission is relatively small. Fourth, doctor’s advice has an important influence on unreasonable admission behavior. Fifth, the medical insurance system affects the unreasonable admission behavior of patients to a certain extent.

Are public transport policies influencing the transport behaviour of older people and economic equity? A case study of the Madrid Region

This article assesses the impact of a subsidy for public transport prices in the Madrid Region for the elderly on PT and automotive household expenditures. Data from the Spanish Household Budget Survey and a discontinuity regression model are used to analyse this PT policy from an equity and efficiency point of view. The results show that as a consequence of this public policy, households from quartiles 1 and 2 whose main-breadwinner is elderly and not employed have reduced their expenditure on PT by 83.9% and 65.3% respectively, and households from quartile 1 having an employed and elderly main-breadwinner have reduced it by 106.4%. All these households have been the main beneficiaries of the policy in terms of economic well-being. Therefore, in distributive and equity terms these subsidies benefit the poorest households among those whose main breadwinner is an elderly, and the richest ones. In terms of efficiency, the high increase of the relative price of automotive fuel due to PT subsidization has only had an impact on households in which the main breadwinner is elderly and not employed, concretely those households from quartiles 1, 2, and 3 have reduced their expenditure on automotive fuel by 38.8%, 30.3% and 51.9%, respectively.

부동산 공시가격의 수평ㆍ수직적 형평성 변화 연구

In this study, it was checked whether the government's public real estate price realization policy was implemented as announced. In addition, we analyzed how much the tax equity (horizontal and vertical) of the announced real estate price has improved due to the realization. And it was carried out to suggest a direction for desirable policy implementation. For this purpose, data on publicly announced prices and actual transaction prices of apartment houses, detached houses, and land across the country for the past five years were collected. Then, by examining previous studies, the optimal methodology for tax equity analysis was selected and three hypotheses were established. In order to prove the hypothesis, the actual transaction price reflection ratio of the official real estate prices collected was calculated. And outliers were removed according to the modified interquartile range method. And horizontal equity was analyzed through the coefficient of quantile (COD). And vertical equity was analyzed by applying the Clapp model. In the process of vertical equity analysis, quantile regression analysis was performed. Test the hypothesis according to the analysis result. In addition, in consideration of the results analyzed during the verification process, a plan for improving the realization of the announced real estate price policy was suggested. The verification result is as follows. Hypothesis 1 (the rate of reflection of real transaction prices in real estate prices for the past 3 years has risen every year) was partially adopted. Hypothesis 2 (horizontal equity of public real estate prices improved every year due to an increase in the reflection rate of actual transaction prices) was also partially adopted. In addition, the third hypothesis (the vertical equity of the announced real estate price would have improved every year due to the increase in the reflection rate of the actual transaction price) was also partially adopted. Using the results of other studies, various measures to improve the realization of published real estate prices are suggested as follows. The first is that it is desirable to calculate the realization rate for detached houses based on the individual house price and the realization rate for land based on the official individual land price. Second, since the difference between the announced balance index (COD) and the calculated COD is large, the calculation criteria should be reexamined. Third, a re-examination is necessary because the realization rate of the townhouse villa and the official land price is decreasing. Fourth, since there is a problem in the realization rate or horizontal equity of detached houses and land, the government should intervene more actively in the calculation of the published price of Si/Gun/Gu. In addition, it is necessary to disclose the actual transaction price data including the published price.

Population displacement and urban conflict: Global evidence from more than 3300 flood events

In this paper, we study the effect of displacement of population into cities on urban conflict in developing countries. To do so, we construct a novel measure of exposure to floods, using data on more than 3300 flood events worldwide, as an exogenous source of population displacement. We combine this with city level observations of thousands of urban social disorder events over the period 1985–2015. Exposure to floods is found to be associated with higher intensity of urban social disorder. Our evidence suggests that the effects of floods on urban disorder occur in part through the displacement of population into large cities. Exploring the information on urban disorder events in more detail, we find that the association between city growth and urban disorder is strongest for events related to public service provision, prices and wages.

Redressing Policy Making in Pastoral Areas of the Mediterranean Region

This article provides a critical analysis of the evolution of the policy, institutional and legislative frameworks impinging on the livelihoods of pastoral communities in the different flanks of the Mediterranean, and of the underpinning narratives, with a view to support a better informed and more consistent policy framework. The Common Agricultural Policy of the European Union is paramount in defining evolving and shrinking pastoralists’ room for manoeuvre, not only in Europe but also in its neighbouring regions. In Middle East and North Africa (MENA) region, despite a quite un-harmonised and diversified ideological and institutional setting, agricultural policies in the different countries seem to converge to a very similar and consistent framework. Throughout the Mediterranean, the growing compliance with policy measures, institutional regulations and legislative rules have exposed agro-pastoral farms to increasing degrees of uncertainty and dependence on public subsidies, loan schemes and market prices, making their navigation decreasingly sustainable.

Real-World Impact of Switching From Insulin Glargine (Lantus®) to Basaglar® and Potential Cost Saving in a Large Public Healthcare System in Saudi Arabia.

BackgroundThe advent of Basaglar®, which is a biosimilar insulin glargine formulation for Lantus® has brought hope that it will result in similar outcomes and lower costs. However, some health practitioners raised some concerns about the therapeutic equivalence of this new biosimilar. Therefore, we aimed to examine the clinical and financial impact of switching from Lantus® to Basaglar®.MethodsThis was a single–center retrospective chart review study of adult patients (e.g., ≥18 years) with diabetes mellitus (DM) who were treated with insulin glargine (Lantus®) for at least 12 months and then switched to Basaglar® for another 12 months. The potential cost savings for the years 2018 to 2021 and the cost avoidance for 2022 were estimated using different conversion ratios between the two insulin glargine products (Basaglar® and Lantus®) and acquisition prices.ResultsOne–hundred patients with DM who were previously treated with Lantus® and switched to Basaglar® were retrospectively recruited. About two–thirds of the patients (68%) had type 2 DM, and the male and female patients were equally represented. The mean glycated hemoglobin (A1C) at baseline was 9, and the mean difference in the A1C levels before and after switching to Basaglar® was not significant (0.18, p-value = 0.503, 95% CI [−0.36–0.72]). Although the difference in the total daily insulin units between Lantus® and Basaglar® was not significant, the difference was leaning toward statistical significance despite the small sample size (−1.88, P-value = 0.25, 95% CI [−5.15–1.38]). Switching from Lantus® to Basaglar® could have led to significant cost savings that would range from approximately 1.77 to 23.7 million United States Dollars (USD) for the years 2018 to 2021 assuming an equal conversion ratio. However, those cost savings might not be realized if the switching to Basaglar® required higher daily insulin units, and the difference in the public tender acquisition price between Lantus® and Basaglar® is less than 15%.ConclusionBasaglar® and potentially other biosimilar insulin glargine products can lead to significant cost savings without compromising the quality of care. However, their acquisition prices should be discounted.

Understanding the Impacts of Public Facilities on Residential House Prices: Spatial Data-Driven Approach Applied in Hangzhou, China

Housing is fundamental to livelihood. House prices are not only affected by house quality, but also closely related to the location. In order to recognize the urban real estate market, it is meaningful to quantitatively analyze the impact of location on house prices. This paper aims to investigate the relationship between house price and location. First, an inverse distance weighted (IDW) method is applied to recognize the spatial distribution of house prices. Second, spatial auto-correlation analysis is applied to uncover the spatial pattern of house prices. Finally, a geographic weighted regression (GWR) model is used to analyze the extent and spatial heterogeneity of the impacts of location elements on house prices quantitatively. The main area in Hangzhou is used as a case study area. Crawler and remote sensing technology are utilized to fetch the house prices and five public facilities revealing location, including subway stations, schools, hospitals, green space, and business centers. The study finds that house prices have evident spatial heterogeneity and spatially agglomerate. Ranking the five public facilities according to the impacts they have on house prices, we reveal that school > subway station > green space > business center > hospital. Schools and subway stations are the most important location factors on house prices. Schools, subway stations, and green space all have a positive effect on house prices in the study area, whereas business centers and hospitals have a negative effect. The research unfolds the relationship between public facilities and house prices and provides support for improving the distribution of spatial resource and sophisticated urban management.

Evaluation of the Regional Inflation Control Team's (TPID) Performance on the Medan City Economy

Inflation is a macroeconomic indicator which very important because it affects the value of money so the impact is directly felt by the public. In general, inflation is defined as a continuous increase in the public prices of an economy. Inflation is a symptom of rising prices that are general and take place continuously. Only a general increase in prices can be called inflation. An increase in the price of certain commodities due to seasonal factors, as an example ahead of big days or a temporary supply disruption and has no further effect, is not called inflation. This study evaluates the performance of the Regional Inflation Control Team (TPID) for the city of Medan.

Sistem Informasi Geografis Jalur Transportasi Angkutan Umum Berbasis Web: Studi Kasus Terminal Mardika Kota Ambon

Public transportation in Ambon city is very helpful in supporting people's daily activities, So, in this final project, the author develops an information system for Ambon city transportation routes, a website that can helping Mardika terminal workers to managing public transportation data and routes of public transportation at the Mardika terminal in Ambon city. And for people in the city of Ambon can get information about public transportation routes, especially at the Mardika terminal, in Ambon city. This system using the throw-away prototyping software development method, and also this system using the black box testing method, this method tested by Mardika terminal workers, and then proceed with user acceptance testing. by providing an inquiry form to terminal workers and passengers. And the result is that this system can provide information in the form of public transport prices, schedules, and public transport routes, this system, it can help passengers and can assist Mardika terminal workers in managing active public transportation routes in Ambon City.

Medicines regulation, pricing and reimbursement in Brazil

Brazil is an upper-middle-income country with a high human development index (HDI) of 0.765 (2019). The Unique Health System (SUS) is a universal, decentralised system, free at point-of-care, although 27% of Brazilians have voluntary supplementary health insurance. Medicines are provided free-of-charge through the SUS, though there are a few exceptions where co-payment is required. Around 87% of the country’s expenditure with medicines and medical devices corresponds to out-of-pocket, highlighting the importance of price regulation. Marketing authorisation and maximum price approval are mandatory market entry requirements for medicines. Pricing policies include maximum price approval, regulation of mark-ups, tax exemption, annual price adjustment and a mandatory discount for government procurement and enforcement mechanisms. The pricing of new drugs considers the patent status and added therapeutic benefit. It is a combination of health technology assessment and external or internal reference pricing, while drugs with active ingredients in the market follow internal reference pricing. The maximum price of generics must be up to 65% of the reference’s price. The maximum approved prices and public procurement prices are publicly available. Brazil has a value-based decision-making process for incorporating medicines and other technologies at the SUS. Current areas of work include horizon scanning, participation of patients in decision-making and re-assessment of technologies. As a decentralised system, medicines are procured by the Ministry of Health, states and municipalities, according to their level of responsibility. Pricing and reimbursement policies, including a consolidated generics policy, have been important in promoting transparency, predictability, and price stability, in turn contributing to cost-containment and access. Ongoing challenges include high rates of judicialisation, medicines with excessive prices not commensurate with their clinical benefits, no provision for pricing review, problems related to governance and politics. To address these challenges, the authors have three main recommendations. First: improving regulatory governance, second: incentivising the development and promoting access to medicines with stronger evidence, added clinical benefit and fair prices, and third: increasing awareness among stakeholders, avoiding judicialisation and minimising its impact; contributing to closing the gap between innovation and access to medicines.

Optimal entry and consumption under habit formation

AbstractThis paper studies a composite problem involving decision-making about the optimal entry time and dynamic consumption afterwards. In Stage 1, the investor has access to full market information subject to some information costs and needs to choose an optimal stopping time to initiate Stage 2; in Stage 2, the investor terminates the costly full information acquisition and starts dynamic investment and consumption under partial observation of free public stock prices. Habit formation preferences are employed, in which past consumption affects the investor’s current decisions. Using the stochastic Perron method, the value function of the composite problem is proved to be the unique viscosity solution of some variational inequalities.