Sunday, December 2, 2007

Why the Econometricians are Happy

A working paper for the day-
Lyttkens, C.H (2007) Why the Econometrician is in Good Spirits – a workshop through the looking glass;

This paper aims to explore the determinants of research-related quality of life (RRQoL) of econometricians in health economics. It is well-known (standard expression for not bothering to look up the references) that an extensive literature deals with the measurement and determinants of health-related quality of life (HRQoL) of the general population. However, if the standard neo-classical paradigm applies (self-interested, utility-maximising behaviour, etc), scientists are of course much more interested in the wellbeing of scientists than of other people.

In addition to its intrinsic interest, this is an important issue for public policy. Analogously to the extra-welfarist approach in health economics (Hurley 2000), we may assume that the purpose of allocating funds to the scientific community is to maximise their RRQoL. We may safely assume that this interpretation is endorsed by the scientists in question (supplier-induced demand).

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