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Showing posts sorted by date for query credit. Sort by relevance Show all posts

Friday, February 28, 2025

Kevin Sontheimer (1938-2025)

 My old friend and colleague Kevin Sontheimer has died.  He was a great leader of Pitt’s economics department when I was there, not just while he was the department chair, but also before and after that too.

Here's his obit at Pitt:

Sontheimer transformed Pitt economics programs here and abroad
 

"Kevin Sontheimer, a 27-year faculty member who, as chairman, transformed the Department of Economics in the Dietrich School of Arts & Sciences and was instrumental in the founding of two pioneering international economics and management programs, died Feb. 3, 2025, at 86.

"His tenure as economics chair lasted through most of the 1980s. One of his early hires was future Nobel Prize-winning economist Alvin Roth as the first Mellon professorship at Pitt. “Kevin played a giant role in my decision to join the department in 1982,” Roth recalled. “He convinced me that, although the department had previously been somewhat under-resourced, it was a healthy department where it would be fun to work, with colleagues who would work together.

“And he was certainly right about that,” Roth continued. “During the time he was chair, we received permission to recruit fairly heavily, and successfully grew the department into a leading research department as well as a fine teaching department. I did some of the best work of my career at Pitt (1982-1998).

“One of the many things that Kevin did as chair was obtain a grant that allowed us to become one of the early economics departments to have an experimental laboratory. He built the department in other ways as well.”

"That included securing a Mellon Foundation grant to found, together with Jan Svenjar and Josef Zieleniec, the Center for Economic Research and Graduate Education (CERGE) at Charles University in Prague in 1991 (which became CERGE-EI in 1992, merging with the Economics Institute of the Czech Academy of Sciences). He was also an instrumental part of the team from his department and the Katz Graduate School of Business to receive USAID grants to work with Academia Istropolitana Nova and other institutions in Bratislava, Slovakia, to set up their economics program as well as the program at Comenius University in Bratislava.

“Kevin was instrumental … a very, very important player in both of these efforts,” said Andrew R. Blair, professor emeritus of business administration and of economics at Katz and the College of Business Administration, and a close colleague of Sontheimer. “Kevin’s role in the Czech Republic and, most especially, the Slovakia relationships was absolutely vital to the success of these Pitt ventures in Central Europe, which were aimed at incorporating free markets in these countries after decades of operating under Soviet domination,” he added.

"While Sontheimer was economics chair, Blair was director of Katz’s International Business Center, and their cooperation was crucial in such efforts. Blair explained that Sontheimer in particular was “the driving force” behind the latter international program, “with Kevin serving both as co-director of the USAID grant implementation and also as resident director in Bratislava of the economics portion of the Comenius relationship. The idea was to train people who were already faculty members at these institutions, to teach with them over there, and to bring them over here” to Pittsburgh: “Without the grant we couldn’t possibly have done that.

“It was a pleasure to work with Kevin.”

"Kevin Charles Sontheimer was born on March 6, 1938, in Pittsburgh, earning his bachelor's degree in physics at Pitt in 1960, a master's degree in economics from Penn State University in 1963 and a Ph.D. in economics from the University of Minnesota in 1969.

"He began his academic career on the faculties of Virginia Tech and SUNY–Buffalo, then joined Pitt in 1978 until his retirement as professor emeritus in 2006. He was economics department chair for eight years.

"His own research focus was on microeconomic theory, which led to publications in Econometrica, Journal of Economic Theory and Journal of Money, Credit and Banking, as well as other leading academic publications in his field. He was also a visiting professor at the Naval Postgraduate School in Monterey, Calif., and at the University of Mannheim in Germany.

"He is survived by his wife of nearly 65 years, Carol Sontheimer; daughter Leigh Ellen Sontheimer; son Erik Sontheimer and daughter-in-law Catherine Brekus; son Steven Sontheimer and daughter-in-law Morgan Triplett; grandchildren Claire, Rachel and Tanner Sontheimer; brother Adrian (“Dink”) Sontheimer and sister Sue Wilmot.

"A gathering to celebrate Sontheimer’s life will be held at a later date. Memorial gifts are suggested to the Alzheimer's Association or the Department of Economics at Pitt. "

Wednesday, January 15, 2025

Why is achieving financial neutrality in organ donation so hard?

For some years now, many opponents of compensation for kidney donors have come to agree that at least donors should not have to bear large expenses to donate.  But it has been hard to operationalize this apparent agreement.

Here's a paper that (somewhat inadvertently) explains why.  They take the position that it is ethically allowable to compensate donors for out of pocket financial expenses, but ethically forbidden to do so in a way that might  sometime pay some donor for an expense  they might have incurred even if they hadn't donated. (So, for example, they forbid paying anything towards funeral expenses for deceased donors.)

This was a point of view that I encountered when I was on the advisory board of NLDAC, the federally funded U.S. agency that can pay some expenses for poor donors. Originally NLDAC issued special credit cards to donors who qualified, that could only be used for airfare, hotels, and restaurants, i.e. for travel and meals.  But some donors indicated that they preferred not to eat in restaurants, but to go to a supermarket and bring food back to eat in their hotel room.  NALDAC eventually decided that the special credit card could also be used for grocery stores, even though this meant that some donor might sometime buy a dozen apples, and bring the uneaten ones with them when they returned home, and thus have received some compensation in addition their travel expenses. (When I write it like that it seems that I must be exaggerating, but here's an article that argues that any inadvertent generosity to donors would cross a red line, and must therefore be avoided.)

Supporting Financial Neutrality in Donation of Organs, Cells, and Tissues, by Martin, Dominique E. PhD1; Capron, Alexander M. LLB2; Fadhil, Riadh A. S. MD3; Forsythe, John L. R. MD4; Padilla, Benita MD5; Pérez-Blanco, Alicia PhD6; Van Assche, Kristof PhD7; Bengochea, Milka MD8; Cervantes, Lilia MD9; Forsberg, Anna PhD10; Gracious, Noble MD11; Herson, Marisa R. PhD1; Kazancioğlu, Rümeyza MD12; Müller, Thomas PhD13; Noël, Luc MD14; Trias, Esteve MD15; López-Fraga, Marta PhD16,
Transplantation 109(1):p 48-59, January 2025. | DOI: 10.1097/TP.0000000000005197 

Abstract: "The avoidance of financial gain in the human body is an international ethical standard that underpins efforts to promote equity in donation and transplantation and to avoid the exploitation of vulnerable populations. The avoidance of financial loss due to donation of organs, tissues, and cells is also now recognized as an ethical imperative that fosters equity in donation and transplantation and supports the well-being of donors and their families. Nevertheless, there has been little progress in achieving financial neutrality in donations in most countries. We present here the findings of an international ethics working group convened in preparation for the 2023 Global Summit on Convergence in Transplantation, held in Santander, Spain, which was tasked with formulating recommendations for action to promote financial neutrality in donation. In particular, we discuss the potential difficulty of distinguishing interventions that address donation-related costs from those that may act as a financial incentive for donation, which may inhibit efforts to cover costs. We also outline some practical strategies to assist governments in designing, implementing, and evaluating policies and programs to support progress toward financial neutrality in donation."

" The principle of financial neutrality in donation states that donors of organs, cells, and tissues, or donor families, should neither lose nor gain financially as a result of donation.

...

"we explore concerns regarding the use of financial incentives for donation (see Box 1) and discuss potential difficulties in distinguishing legitimate coverage of costs from practices and policies that may provide financial incentives for donation and thus violate the prohibition of trade in SoHOs. We argue that anxiety regarding the use of financial incentives may, in some countries, deter or undermine efforts to remove financial disincentives from donations. 

...

"Efforts to address the costs of living kidney donation notably became a focus in North America in the wake of a decline in living donor rates in the mid-2000s, disproportionately impacting poorer populations.

...

" Like the removal of financial disincentives to donation, avoidance of financial incentives for donation is essential for achieving financial neutrality ... "Sustained efforts are thus needed to deter use of financial incentives and ensure that efforts to promote financial neutrality in donation do not create actual or perceived incentives

...

"Some proposals intended only to cover donation-related costs may inadvertently incentivize donations or result in inappropriate financial gains.

...

"After more than a decade of expressed support for the principle of financial neutrality in donation, it is time for policymakers in all countries to act in pursuit of the goal of financial neutrality."

#############

Earlier: Thursday, March 31, 2022  National Living Donor Assistance Center (NLDAC) support for lost wages and dependent care

Friday, January 3, 2025

Sessions that caught my eye in the ASSA program

Economics of Higher Education

Lightning Round Session

 Saturday, Jan. 4, 2025   8:00 AM - 10:00 AM (PST)

 Hilton San Francisco Union Square, Golden Gate 3
Hosted By: American Economic Association
  • Chair: Caroline Hoxby, Stanford University

Cap-and-Apply: Unintended Consequences of College Application Policy in South Korea

Taekyu Eom
, 
SUNY-Buffalo
 

 

Do Double Majors Face Less Risk? An Analysis of Human Capital Diversification

Andrew S. Hanks
, 
Ohio State University
Shengjun Jiang
, 
Wuhan University
Xuechao Qian
, 
Stanford University
 
Bo Wang
, 
Nankai University
Bruce A. Weinberg
, 
Ohio State University

 

Inequality-Aware Market Design

Paper Session

 Sunday, Jan. 5, 2025   10:15 AM - 12:15 PM (PST)

 Hilton San Francisco Union Square, Union Square 1 and 2
Hosted By: Econometric Society
  • Chair: Piotr Dworczak, Northwestern University

Waiting or Paying for Healthcare: Evidence from the Veterans Health Administration

Anna Russo
, 
Massachusetts Institute of Technology
 

Optimal Redistribution via Income Taxation and Market Design

Mohammad Akbarpour
, 
Stanford University
Pawel Doligalski
, 
University of Bristol
Piotr Dworczak
, 
Northwestern University
 
Scott Duke Kominers
, 
Harvard University

Should the Government Sell You Goods? Evidence from the Milk Market in Mexico

Diego Javier Jimenez Hernandez
, 
Chicago Federal Reserve
 
Enrique Seira
, 
Michigan State University

Taxing Externalities without Hurting the Poor

Mallesh M. Pai
, 
Rice University
Philipp Strack
, 
Yale University
 

Discussant(s)
Vasiliki Skreta
, 
University of Texas-Austin and University College London
Dmitry Taubinsky
, 
University of California-Berkeley
Mohammad Akbarpour
, 
Stanford University
Dan Waldinger
, 
New York University

 

 

Market Design in College Admissions

Paper Session

 Sunday, Jan. 5, 2025   10:15 AM - 12:15 PM (PST)

 Hilton San Francisco Union Square, Union Square 11
Hosted By: Econometric Society
  • Chair: Evan Riehl, Cornell University

College Application Mistakes and the Design of Information Policies at Scale

Anaïs Fabre
, 
Toulouse School of Economics
Tomas Larroucau
, 
Arizona State University
Christopher Andrew Neilson
, 
Princeton University
Ignacio Rios
, 
University of Texas-Dallas
 

Inequity in Centralized College Admissions with Public and Private Universities: Evidence from Albania

Iris Vrioni
, 
University of Michigan
 

Stakes and Signals: An Empirical Investigation of Muddled Information in Standardized Testing

Germán Reyes
, 
Middlebury College
Evan Riehl
, 
Cornell University
 
Ruqing Xu
, 
Cornell University

 

Finance and Development

Paper Session

 Sunday, Jan. 5, 2025   1:00 PM - 3:00 PM (PST)

 Hilton San Francisco Union Square, Continental Ballroom 9
Hosted By: American Economic Association
  • Chair: Martin Kanz, World Bank

Default Contagion in Microfinance

Natalia Rigol
, 
Harvard Business School
Ben Roth
, 
Harvard Business School
 

Abstract

Joint liability is one of the hallmarks of microfinance. Though it is intended to reduce non-payment, it has also been hypothesized to lead to default contagion, whereby non-payment by one borrower may reduce the likelihood of repayment by groupmates. Utilizing unexpected deaths, we document significant default contagion in one of Chile's largest microfinance institutions. We estimate that a single default causes an additional 0.8 borrowers to default, indicating that nearly half of observed default is due to contagion. 

Credit Contracts, Business Development, and Gender: Evidence from Uganda

Selim Gulesci
, 
Trinity College Dublin
 
Francesco Loiacono
, 
European Bank for Reconstruction and Development
Miri Stryjan
, 
Aalto University
Andreas Madestam
, 
Stockholm University

Discrimination Expectations in the Credit Market: Survey Evidence from India

Stefano Fiorin
, 
Bocconi University
Joseph Hall
, 
Stanford University
Martin Kanz
, 
World Bank
 

Discussant(s)
Simone Gabrielle Schaner
, 
University of Southern California
Anna Vitali
, 
New York University
Janis Skrastins
, 
Washington University-St. Louis