Nach oben pdf Costs and benefits of urbanization: The Indian case

Costs and benefits of urbanization: The Indian case

Costs and benefits of urbanization: The Indian case

Sources: National Sample Survey Organisation, Central Institute of Road Transport, Census of India, and author’s analyses. The results from the second stage show that the now exogenous (predicted from the first-stage OLS regression) urbanization (or the largest city population) has a positive impact on the (per capita) rural–urban ratio. This implies that urbanization or the largest city population (corrected for its endogeneity) increases the rural–urban ratio. While we had expected urbanization to reduce urban–rural inequality (Lu and Chen [2006] point out that urbanization narrowed urban–rural inequality in the PRC), our finding in the Indian context could be due to the fact that rural residents do not move to cities in adequate numbers and the ones who move to the city are either richer or have the potential to become rich (either educated or highly motivated to study or work hard). However, the predicted urbanization squared has a negative impact on the rural–urban ratio, implying that beyond a certain level of urbanization, the urban–rural inequalities will be reduced. This is what we expect since urbanization does not just increase the incomes of the urban residents, but the rural population also shares the growth eventually. As Todaro (1969) pointed out, in a dual economy with expected urban–rural gaps in earnings, labor flow equalizes the returns to factors and narrows urban–rural inequality. On the one hand, wages in the urban labor market will fall with more migration and increased labor supply. On the other hand, the outflow of rural workers reduces the surplus labor in the countryside, effectively upgrading productivity and the incomes of remaining rural laborers. Hence falling urban and rising rural incomes close the gap. The results we find are consistent with this evidence and show that integrated markets are needed to allocate capital, land, and labor between rural and urban areas and across cities.
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Costs and Benefits of Labor Mobility between the EU and the Eastern Partnership Countries: The Case of Poland

Costs and Benefits of Labor Mobility between the EU and the Eastern Partnership Countries: The Case of Poland

expecting to have a chance to fill shortages of workers using foreign labor within the next year. A ‘replacement strategy’, i.e. employment of immigrants who occupied jobs previously performed by Polish workers was relatively rare (10-20% of firms). From the data presented it follows that in most cases immigrants were employed at newly created posts or were filling posts left by Polish workers (in many cases this situation is to be linked with massive post-accession migration from Poland). Last but not least, Polish employers rarely expressed clear preference toward employment of immigrant worker (while looking for a new one). Most of surveyed employers stated that they would prefer to employ Polish worker (including return migrants). Interestingly enough, however, between 25 and 40% of employers (depending on the company size) claimed that citizenship is not an important criterion when seeking new workers. As concluded by Janicka and Kaczmarczyk (2010), this outcome may suggest that there exists a significant potential demand for foreign labor, and along with positive developments in Polish economy one may expect increase in scale of labor immigration to Poland.
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Costs and benefits of EU enlargement

Costs and benefits of EU enlargement

Effects on Employment The topic “opening up the labour market for the acceding states” has negative connotations for the German public. Economic experts have almost unani- mously advised against restrictive transition periods for immigration. The reason is that, all in all, immigra- tion is benefi cial. The German government has nev- ertheless decided to request a seven year transition period, principally to prevent a possible abrupt rise in immigration, for example as a result of a slump in economic performance – thus more as a safety net in particularly diffi cult circumstances. After all, the rate of unemployment in Poland is almost twice that in Ger- many. If qualifi ed immigrants take up posts that would otherwise remain vacant, income and employment will rise in Germany: welfare will increase and higher tax revenues will be generated. If, however, unemploy- ment tends to rise as a result of immigration, these positive effects will not occur. This may be the case if work-seeking immigrants fail to fi nd employment or if they replace indigenous employees. In reality both ef- fects will be found at the same time.
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Trade, trade agreements and subsidies: The case of the Indian apparel industry

Trade, trade agreements and subsidies: The case of the Indian apparel industry

In total, over 60 different types of subsidies and tax incentives are provided to the apparel sector by central and state governments to support its growth and exports, yet exports are stagnating and concerns are being raised about the industry’s competitiveness. Further, discussions with industry representatives reveal that many players, especially the SMEs, are not aware of all the schemes and benefits. There is lack of data and information on the target groups (for example, companies catering to domestic versus exporters) of different subsidies, the impact of the subsidies and how easy or difficult it is to claim them, among others. Some industry representatives raised concerns about the procedural hurdles and compliance requirements that lead to under-utilisation of the subsidy. For example, according to the survey participants, the TUFS scheme, which was changed into the Amended TUFS (ATUFS), is a good initiative but due to procedural delays, the take-off of the scheme is slow and the utilisation has been low. For availing of the benefits under the ATUFS, the apparel exporters need to file an application to the Joint Inspection Team (JIT) for physical inspection of the machinery installed by them. This process requires the submission of a total of 15 documents and the process of physical inspection has to be completed by the JIT within a period of 88 days from the time of filing of the application. 31 However, interviews with industry representatives show that the process takes longer (up to a year), which delays the claiming of benefits by exporters. Besides, due to lack of data on target groups and impact analyses, there seem to be concerns related to the monitoring of the schemes and their efficient execution and utilisation. Some survey participants pointed out that subsidies are often provided on an ad-hoc basis.
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Costs and benefits of differentiated integration: Lessons from the Schengen and Pruem laboratories

Costs and benefits of differentiated integration: Lessons from the Schengen and Pruem laboratories

Compared to the Schengen case, the inclination of Germany and the fellow club members to transpose the Pruem instruments and regulations into the TEU framework is apparent, as is their costs-benefits calculus. Most of the costs invested would remain stable; even the political costs of exclusion of EU players – given the candid inclination to "Europeanize" a well working and useful law enforcement toolbox. Transposition raises some incorporation costs, but increases benefits from additional available data. If incorporation failed, then the related costs and benefits would both fall; the club continued to exist and to provide the club good in a slightly smaller version. The non-members calculus would entail the costs of establishment or adaptation of their DNA databases since they had to accept the system set up by the Pruem members. Furthermore, the Pruem Treaty contained regulations on air marshals, document advisors and repatriation measures that would alter existing Schengen practices and, therefore, raise considerable "sovereignty" costs for non-Schengen members. The benefits of a working system of data exchange connecting a great number of national databases are obvious. Part of the calculation of benefits by non-Pruem governments might be the political-legal obligation to set up DNA databases stemming from the transposition and possibility to avoid complex discussions at the national level, as some interviews conducted by Bellanova (2003, 212) suggest.
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Assessing Costs and Benefits of Coastal Structures to Mitigate Erosion

Assessing Costs and Benefits of Coastal Structures to Mitigate Erosion

Coastal protection works, like groins and longitudinal revetments, need to be thoroughly evaluated before the intervention, as they represent a particular interference with the coastal environment and, hence, lead to multiple, divergent and location-specific impacts, and imply large investment, as well as maintenance costs. Therefore, this work aims to present a methodology to analyse and discuss the most adequate coastal structures to mitigate coastal erosion in combination with socio-environmental- economic expertise, considering the costs and benefits related to each intervention, by applying a cost- benefit approach. The goal of the proposed methodology is to support decision-making for planning and coastal management with sustainable coastal interventions, by encompassing the assessment of the shoreline evolution impacts (with a shoreline evolution model, LTC, Coelho, 2005), and the design of coastal structures (applying a coastal structures design model, XD-Coast, Lima et al., 2013), allowing the final costs and benefits analysis. To show the relevance of the methodology, different interventions scenarios have been proposed to protect a hypothetical urban waterfront from a coastal erosion trend. The adopted scenarios encompass groins and longitudinal rubble mound revetments. Considering the previous, in the next section the costs and benefits coastal assessment method is described. Next, a description of the hypothetical case study is presented, including the reference scenario, and all the proposed intervention scenarios. Then, the results are shown and major conclusions are drawn.
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Benefits and costs of automation support

Benefits and costs of automation support

In conclusion, the current study provides further insight in the adaptation strategies of humans in relation to automation’s reliability, one of the most important perceivable characteristics of automation (Lee and See, 2004). The additional value compared to previous studies originates from the level of detail in design and analysis as most of the previous studies only compared two very extreme reliability levels (e.g. Dixon et al., 2007, 2006; Rovira et al., 2007). Furthermore, the analysis of eye-tracking data provided more detailed insight into the impact of alarm systems on attention allocation as compared to the consideration of just performance measures in previous studies. With regard to practical implications, results are certainly not applicable to high risk work domains like aviation where only alarm systems are used that are optimized in reliability with respect to avoidance of misses and, thus, if ever typically are false-alarm prone. But in other domains like quality control inspection in the manufacturing industry comparable reliability levels even in terms of miss-prone alerting systems, can be found. In this case the finding of a critical reliability cut-off should be taken into account when considering the implementation of such systems. Even though consequences might not be apparent in the beginning, the cognitive effort of operators needed to compensate for the imperfect reliability of such systems could lead to severe problems in the long term, like complete performance breakdowns in the automation-supported task or an overall performance decrease when operators are responsible for multiple concurrent tasks.
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Costs and Benefits of Overlapping Regional Organizations in Latin America: the Case of the OAS and UNASUR

Costs and Benefits of Overlapping Regional Organizations in Latin America: the Case of the OAS and UNASUR

President Correa’s position. The involvement of both the OAS and UNASUR dis- suaded possible coup plotters. There was no stress on human resources because UNASUR worked through the presidents of the member countries and the OAS acted through the diplomatic representatives on its Permanent Council. There was no blockade within any of the regional organizations involved and no forum shop- ping on the part of the Ecuadorian president. The OAS and UNASUR did not compete directly, but due to the higher visibility and greater agility of presidential diplomacy, UNASUR was perceived as more proactive and decisive in this crisis. The Ecuadorian crisis resulted in the reinforcement of international standards for defending democracy and legitimate governments in South America. As a result of the crisis, the presidents of the UNASUR member states decided to develop a spe- cific democratic clause as an additional protocol to UNASUR’s Constitutive Treaty. In this regard, UNASUR emulated the benchmark set by the OAS.
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Assessing the costs and benefits of capital-based macroprudential policy

Assessing the costs and benefits of capital-based macroprudential policy

The simulation results from the model suggest that the net benefits (and in particular short- term macro costs) of capital-based measures depend on how banks move to higher capital ratios. Under the assumption that banks react to higher capital requirements by asset-side deleveraging, the net benefits of activating capital-based measures are, at the end of the sample period (2014Q4), estimated to be negative for the majority of European countries. This reflects the fact that the financial cycle was still in a depressed phase in many countries, so that the potential benefits of activating capital-based macroprudential tools would be rather limited. On the other hand, asset-side deleveraging corresponds to a reduction in banks’ loan supply, for which the model in this case suggests a negative GDP response, therefore implying a non-zero gross cost. In contrast, under the assumption that the banking system reacts to higher capital requirements by raising and investing equity capital, the GDP responds positively, so that there is no cost from that perspective. Higher capitalization levels further contribute to increased resilience and a fall in banking crisis probabilities, and consequently the net benefits would be positive in all European countries. A counteracting force arises from somewhat stronger credit and asset price growth, implying a move toward overheating and thus upward pressure on crisis probabilities. This effect, however, is by far outweighed by stronger capitalization and the initially positive short-term GDP response.
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Cooperation, discounting, and the effects of delayed costs and benefits

Cooperation, discounting, and the effects of delayed costs and benefits

a similar slope of the conditional contribution schedule. In a second study, we then quantify the amount of monetary incentives needed in order to close the cooperation gaps observed in our two asymmetric treatments. That is, in the case of delayed benefits we ask by how much economic incentives have to be increased in order to raise contributions up to the level without any delay, while in the case of delayed costs we study by how much economic incentives can be decreased such that contributions are similar to the level in the no delay case. This allows us to calculate a discount factor from our strategic context in which payoffs are interdependent, and compare it to the discount factor from our individual decision task. We find that in the case of delayed benefits, economic incentives (in terms of the marginal per capita return (MPCR)) need to be increased by 92% to raise contributions up to case without any delay. When costs rather than benefits are delayed, in contrast, economic incentives can be decreased by 52%. In both cases, the shift in economic incentives correspond to an implicit yearly discount rate of about 50%, which is much higher than the ones observed in individual choice tasks, where discount rates typically takes values of around 30% (compare e.g. Harrison et al. (2002); Dohmen et al. (2010)). To the best of our knowledge, this is the first paper that demonstrates that delaying the consequences of actions in strategic environments can lead to exacerbated discounting. At the individual level, we further find some moderate correlation between discounting across our individual and strategic decision context, indicating that other factors than ones own degree of impatience matter for discounting behavior in strategic contexts, too.
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Costs and benefits of immigration and multicultural interaction

Costs and benefits of immigration and multicultural interaction

Figure 3: the dividing line between winners and losers of immigration as well as learners and non learners of the immigrant culture 4.2 Median Voter’s Choice for an Optimal Scope of Immigrants In this section, I apply the framework by implementing a median voter’s choice over immigra- tion. Therefore, I assume that initially, the total population contains only native individuals who have to decide over an optimal immigration level. Hence, I do not regard immigration as an external inflow but as a factor that is driven by a specific immigration policy. The latter is determined by individual preferences of voters. In order to keep the analysis tractable, I suggest the median voter to be decisive with respect to the election outcome. The assump- tions of the model lead to the feasible case that the median voter is always a non-learners as long as 0 < m < 1. This is true since due to the uniform distribution of learning costs between 0 and 1, the median voter’s learning cost level θ M V is equal to 0.5. Hence, I can
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The costs and benefits of different initial teacher training routes

The costs and benefits of different initial teacher training routes

The costs and benefits of different initial teacher training routes Table 4.12 shows the modal (or majority) view of survey respondents in primary schools for each comparison. For example, ‘better’ is recorded in the School Direct unsalaried row and School Direct salaried column as most respondents who were able to comment on both routes reported that School Direct unsalaried had a higher net benefit than School Direct salaried. The exact percentage of respondents who contributed to the modal view is given beneath it (in this case 42%) and the number of respondents is given in parentheses (in this case 33). Table 4.12 shows that when comparing school-based and university-based routes, primary school respondents are in general more likely to give a higher report of net benefit for school-based than for university-based routes. This is most true for School Direct unsalaried, which received a higher report of net benefit than BEd and HEI-led PGCE in 62% and 56% of cases, respectively. The net benefits of BEd and HEI-led PGCE trainees are perceived to be similar: the majority of respondents (61%) give the same net benefit for both routes. This is also true for School Direct salaried and GTP routes, where 58% give the same level of benefit in relation to cost for both routes. This is perhaps expected given the similarity of the two routes, but contrasts to evidence presented in Section 4.3 that showed that the benefits reported for GTP were often significantly higher than those for School Direct salaried. This suggests that there is variation within net benefit category reported in the survey – for example, respondents may report that benefits are equal to costs for each route with some margin of approximation.
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The economics of enhancing accessibility estimating the benefits and costs of participation

The economics of enhancing accessibility estimating the benefits and costs of participation

2. If they crossed the road, then so what? In the context of our mini case study we know more people using mobility aids did cross the road once an impediment of unsafe crossing opportunities were removed and they were placed on a more equitable plane with other citizens. However, there is no apparent increase in their opportunities to jaywalk. Were the users of the crossing going shopping, attending medical appointments, socialising for coffee with others, attending a card afternoon at the social club, or purchasing a flagon of wine to drink in the park? In some instances, there are clear shadow prices, which are available as proxies in the estimation of value. If carers no longer need to go for shopping then their time-saving is of value in a market where there are not enough carers. Social engagements keep the spirits up and may improve the quality of life and reduce the need for medication. Playing scrabble or cards may assist with reducing loneliness and depression salon keep the mind a little sharper to postpone or ward off dementia. These have value. Drinking to excess with buddies or by oneself has negative benefits.
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Assessing the costs and benefits of capital-based macroprudential policy

Assessing the costs and benefits of capital-based macroprudential policy

The simulation results from the model suggest that the net benefits (and in particular short- term macro costs) of capital-based measures depend on how banks move to higher capital ratios. Under the assumption that banks react to higher capital requirements by asset-side deleveraging, the net benefits of activating capital-based measures are, at the end of the sample period (2014Q4), estimated to be negative for the majority of European countries. This reflects the fact that the financial cycle was still in a depressed phase in many countries, so that the potential benefits of activating capital-based macroprudential tools would be rather limited. On the other hand, asset-side deleveraging corresponds to a reduction in banks’ loan supply, for which the model in this case suggests a negative GDP response, therefore implying a non-zero gross cost. In contrast, under the assumption that the banking system reacts to higher capital requirements by raising and investing equity capital, the GDP responds positively, so that there is no cost from that perspective. Higher capitalization levels further contribute to increased resilience and a fall in banking crisis probabilities, and consequently the net benefits would be positive in all European countries. A counteracting force arises from somewhat stronger credit and asset price growth, implying a move toward overheating and thus upward pressure on crisis probabilities. This effect, however, is by far outweighed by stronger capitalization and the initially positive short-term GDP response.
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Estimating the Costs and Benefits of Local Government Reorganisation: A Case of Korea

Estimating the Costs and Benefits of Local Government Reorganisation: A Case of Korea

Three. It is predicted that in the case of Jeju Province, at least 25 per cent of the total running costs of the five local authorities (one provincial and four district authorities) in question can be saved. This represents a contrast with UK studies. As was mentioned earlier, many studies (e.g. Chisholm, 2004; Leach, 1998) conducted in the UK emphasise that the higher ongoing costs and transition costs would never be paid. Even though this reorganisation plan for Jeju Province has not yet been put into practice, the research result was accepted by the workshops and seminars which were conducted after the research project was reported. The difference between the Jeju case study and the UK studies may arise partly because in the UK the potential savings have rarely been estimated in a quantified way in academia and government, and partly because sophisticated methodologies have not been applied to quantify costs and benefits in relation to restructuring.
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The costs and benefits of ownership unbundling

The costs and benefits of ownership unbundling

In a general model of an upstream natural monop- oly and a potentially competitive downstream market, there are three possible patterns, each of which has different implications for integration. If the upstream monopoly is not regulated and the downstream mar- ket is competitive, the upstream distribution company will extract all the monopoly rent, the downstream retailer is constrained by competitive pressures, and the outcome will be the same whether or not the com- pany is integrated. However if the downstream retailer has some monopoly power (for example from incum- bency advantages) there is a danger that if they are separated both the unregulated distribution company and the retailer will try to raise price, resulting in so called “double marginalisation”, and a higher price for the end consumer than if the company were integrat- ed. In this case of market power in both parts of the supply chain, the perhaps counterintuitive conclusion is that it would be better both for consumers and for overall economic welfare to integrate the two parts of the chain. The third situation is the most common in practice and relevant to the current discussion. This involves a regulated monopoly distribution company, and an incumbent who retains some market power in the retail market. In this case there is concern about whether a vertically integrated company can infl uence the effectiveness of the regulation and so “lever” its monopoly advantage to deliver (or protect) market power in the downstream market.
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The costs and benefits of European immigration

The costs and benefits of European immigration

In the UK a recent study suggested that wages among native resident workers had not been affected at all by immigration. And if they were affect- ed, they would rather have gone up (Dustman et al., 2003). In Spain a study covering the early 1990s concluded weak but positive effects of immigration on the labour market outcomes of native workers (Dolado et al., 1996). An OECD survey distinguished three categories of immi- grant workers in the Spanish labour market, all three categories being comple- ments to native workers. The first group consists of immigrants from other EU countries, who are on average better educated than the average Spanish work- ers and engage in skilled jobs in labour market niches and linked to their cha- racteristics as immigrants (language ability, cultural proximity for services to foreign residents). A second group consists of the highly educated non-OECD immigrants employed mostly in the commerce and professional service branches. The third group includes the majority of non-OECD immigrants, who, by contrast, are more concentrated in unskilled jobs. In part, they occupy jobs that are no longer attractive for native Spaniards, due to harsh working conditions and low pay, e.g. greenhouse farming, construction jobs and do- mestic services, where virtually no natives are employed. In these jobs, im- migrants seem to be complementary to the native labour force. However, they compete with each other and generate a downward pressure on the wages and the labour conditions in the sectors they are employed in (OECD, 2003). Immigration was recognised by an OECD study as a success story for the Greek labour market. A substantial increase in labour supply of about 10% over 10 years – generated by immigration – has been absorbed with little detrimen- tal effect on Greek workers’ wages. Immigrant workers in Greece tend to be concentrated in three particular sectors, in which they are complements to the natives: agriculture, household services and constructions. In the case of con- struction, EU regional funds and the Olympic Games of 2004 in Athens have provided a boost to demand, causing wages to rise for both natives and foreign workers (OECD, 2005c).
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The costs and benefits of leaving the EU

The costs and benefits of leaving the EU

To calculate this last counterfactual we have to assume a measure of price differences across the European Union. We use a rough measure from Eaton and Kortum (2002) of 49% 2 , meaning that if the UK imported (exported) all goods from (to) other European countries prices would be 49% higher. Naturally, part of this price difference may not be reducible. In all our scenarios we assume that just part of this cost can in fact potentially fall over time, 55%, which is the same share of non-tariff barriers that are actionable in the EU-USA trade case. To be even more conservative, in our pessimistic case we further assume that two thirds of the potentially reducible share will actually diminish throughout the years, while in the optimistic case we assume that such share is only one half. Then, using the estimates from M´ ejean and Schwellnus (2009), we calculate that future falls in non-tariff barriers in the next ten years will lead to a fall of 10.54% and 5.68% in our pessimistic and optimistic scenarios, respectively 3 .
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Financialization and corporate investments: The Indian case

Financialization and corporate investments: The Indian case

7 We can observe in Chart 3 that the Prowess data sources also indicate declines in the shares of physical assets held by companies. However, the drop in physical assets from 40 percent in 2001 to 35.3 percent by 2013 (Chart 3) seems to have been less compared to the declines in gross fixed assets as documented with RBI sources in Chart 2. The difference may be the result of methodological differences inherent in the two data sources, specifically relating to the coverage of firms for each year (Given that RBI sources do not disclose variations in coverage, we treat those as uniform while the Prowess data set varies in terms of coverage). On the whole, judging by the small and declining share of physical assets held by the corporates in both sources, contributions of such assets toward accumulation in the industrial sector seem to be visibly at a low ebb in the Indian economy.
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Hospital costs and unexpected demand: The case of Greece

Hospital costs and unexpected demand: The case of Greece

Different methods have been used to estimate the demand uncertainty. Some researchers have used a direct measure to capture demand uncertainty incorporating this into the cost function, while others have applied a measure of standby capacity that hospitals hold in order to service unexpected demand. In earlier studies, Friedman and Pauly [11, 12] employed the ratio of forecasted to actual hospital admissions. This method was criticised by Hughes and McGuire [15] who argued that if a ratio is estimated, the level of uncertainty is not captured. Additionally, such a measure of demand uncertainty reflects the expected fluctuations in demand, i.e. the ones the hospitals can predict, and thus, if hospitals can accurately predict the fluctuations then there is no reason to expect this to have an effect on hospital costs. Gaynor and Anderson [21] used the first two moments: the mean and the standard deviation of the distribution of annual demand conditional on past values to estimate hospital unexpected demand. Hughes and McGuire [15] modelled a simple autoregressive process assuming demand expectations are related to prior demand knowledge. Thus, the level of uncertainty faced by a hospital was defined as the difference between the observed and the forecasted emergency demand. Smet [14] used a waiting time indicator to proxy standby capacity held by hospitals to serve unexpected demand in Belgium. The indicator is derived from queuing theory and develops the commonly
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