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Concept: Purchasing power parity


The scientific debate on the relation between Gross Domestic Product (GDP) and self reported indices of life satisfaction is still open. In a well-known finding, Easterlin reported no significant relationship between happiness and aggregate income in time-series analysis. However, life satisfaction appears to be strictly monotonically increasing with income when one studies this relation at a point in time across nations. Here, we analyze the relation between per capita GDP and life satisfaction without imposing a functional form and eliminating potentially confounding country-specific factors. We show that this relation clearly increases in country with a per capita GDP below 15,000 USD (2005 in Purchasing Power Parity), then it flattens for richer countries. The probability of reporting the highest level of life satisfaction is more than 12% lower in the poor countries with a per capita GDP below 5,600 USD than in the counties with a per capita GDP of about 15,000 USD. In countries with an income above 17,000 USD the probability of reporting the highest level of life satisfaction changes within a range of 2% maximum. Interestingly enough, life satisfaction seems to peak at around 30,000 USD and then slightly but significantly decline among the richest countries. These results suggest an explanation of the Easterlin paradox: life satisfaction increases with GDP in poor country, but this relation is approximately flat in richer countries. We explain this relation with aspiration levels. We assume that a gap between aspiration and realized income is negatively perceived; and aspirations to higher income increase with income. These facts together have a negative effect on life satisfaction, opposite to the positive direct effect of the income. The net effect is ambiguous. We predict a higher negative effect in individuals with higher sensitivity to losses (measured by their neuroticism score) and provide econometric support of this explanation.

Concepts: European Union, Gross domestic product, Purchasing power parity, Measures of national income and output, Penn effect


PURPOSE: The aim was to determine the extent of daily disposable contact lens prescribing worldwide and to characterise the associated demographics and fitting patterns. METHODS: Up to 1,000 survey forms were sent to contact lens fitters in up to 40 countries between January and March every year for five consecutive years (2007 to 2011). Practitioners were asked to record data relating to the first 10 contact lens fits or refits performed after receiving the survey form. Survey data collected since 1996 were also analysed for seven nations to assess daily disposable lens fitting trends since that time. RESULTS: Data were collected in relation to 97,289 soft lens fits, of which 23,445 (24.1 per cent) were with daily disposable lenses and 73,170 (75.9 per cent) were with reusable lenses. Daily disposable lens prescribing ranged from 0.6 per cent of all soft lenses in Nepal to 66.2 per cent in Qatar. Compared with reusable lens fittings, daily disposable lens fittings can be characterised as follows: older age (30.0 ± 12.5 versus 29.3 ± 12.3 years for reusable lenses); males are over-represented; a greater proportion of new fits versus refits; 85.9 per cent hydrogel; lower proportion of toric and presbyopia designs and a higher proportion of part-time wear. There has been a continuous increase in daily disposable lens prescribing between 1996 and 2011. The proportion of daily disposable lens fits (as a function of all soft lens fits) is positively related to the gross domestic product at purchasing power parity per capita (r(2) = 0.55, F = 46.8, p < 0.0001). CONCLUSIONS: The greater convenience and other benefits of daily disposable lenses have resulted in this modality capturing significant market share. The contact lens field appears to be heading toward a true single-use-only, disposable lens market.

Concepts: Cornea, Myopia, Lens, Contact lens, Corrective lens, Intraocular lens, Purchasing power parity, National accounts


Coal combustion is the most significant anthropogenic mercury emission source in China. In 2013, China signed the Minamata Convention affirming that mercury emissions should be controlled more strictly. Therefore, an evaluation of the costs associated with atmospheric mercury emission reductions from China’s coal combustion is essential. In this study, we estimated mercury abatement costs for coal combustion in China for 2010, based on a provincial technology-based mercury emission inventory. In addition, four scenarios were used to project abatement costs for 2020. Our results indicate that actual mercury emission related to coal combustion in 2010 was 300.8Mg, indicating a reduction amount of 174.7Mg. Under a policy-controlled scenario for 2020, approximately 49% of this mercury could be removed using air pollution control devices, making mercury emissions in 2020 equal to or lower than in 2010. The total abatement cost associated with mercury emissions in 2010 was 50.2×10(9) RMB. In contrast, the total abatement costs for 2020 under baseline versus policy-controlled scenarios, having high-energy and low-energy consumption, would be 32.0×10(9) versus 51.2×10(9), and 27.4×10(9) versus 43.9×10(9) RMB, respectively. The main expense is associated with flue gas desulfurization. The unit abatement cost of mercury emissions in 2010 was 288×10(3) RMB/(kgHg). The unit abatement costs projected for 2020 under a baseline, a policy-controlled, and an United Nations Environmental Programme scenario would be 143×10(3), 172×10(3) and 1066×10(3) RMB/(kgHg), respectively. These results are much lower than other international ones. However, the relative costs to China in terms of GPD are higher than in most developed countries. We calculated that abatement costs related to mercury emissions accounted for about 0.14% of the GDP of China in 2010, but would be between 0.03% and 0.06% in 2020. This decrease in abatement costs in terms of GDP suggests that various policy-controlled scenarios would be viable.

Concepts: Developed country, Pollution, Air pollution, Furnace, Emission standard, Global warming, Purchasing power parity, Flue gas


An increasing amount of high-resolution global spatial data are available, and used for various assessments. However, key economic and human development indicators are still mainly provided only at national level, and downscaled by users for gridded spatial analyses. Instead, it would be beneficial to adopt data for sub-national administrative units where available, supplemented by national data where necessary. To this end, we present gap-filled multiannual datasets in gridded form for Gross Domestic Product (GDP) and Human Development Index (HDI). To provide a consistent product over time and space, the sub-national data were only used indirectly, scaling the reported national value and thus, remaining representative of the official statistics. This resulted in annual gridded datasets for GDP per capita (PPP), total GDP (PPP), and HDI, for the whole world at 5 arc-min resolution for the 25-year period of 1990-2015. Additionally, total GDP (PPP) is provided with 30 arc-sec resolution for three time steps (1990, 2000, 2015).

Concepts: Time, Africa, Quality of life, Value added, Human Development Index, Purchasing power parity, American Human Development Report, Genuine progress indicator


Improving maternal and child nutrition in resource-poor settings requires effective use of limited resources, but priority-setting is constrained by limited information about program costs and impacts, especially for interventions designed to improve diet quality. This study utilized a mixed methods approach to identify, describe and estimate the potential costs and impacts on child dietary intake of 12 nutrition-sensitive programs in Ethiopia, Nigeria and India. These potential interventions included conditional livestock and cash transfers, media and education, complementary food processing and sales, household production and food pricing programs. Components and costs of each program were identified through a novel participatory process of expert regional consultation followed by validation and calibration from literature searches and comparison with actual budgets. Impacts on child diets were determined by estimating of the magnitude of economic mechanisms for dietary change, comprehensive reviews of evaluations and effectiveness for similar programs, and demographic data on each country. Across the 12 programs, total cost per child reached (net present value, purchasing power parity adjusted) ranged very widely: from 0.58 to 2650 USD/year among five programs in Ethiopia; 2.62 to 1919 USD/year among four programs in Nigeria; and 27 to 586 USD/year among three programs in India. When impacts were assessed, the largest dietary improvements were for iron and zinc intakes from a complementary food production program in Ethiopia (increases of 17.7 mg iron/child/day and 7.4 mg zinc/child/day), vitamin A intake from a household animal and horticulture production program in Nigeria (335 RAE/child/day), and animal protein intake from a complementary food processing program in Nigeria (20.0 g/child/day). These results add substantial value to the limited literature on the costs and dietary impacts of nutrition-sensitive interventions targeting children in resource-limited settings, informing policy discussions and serving as critical inputs to future cost-effectiveness analyses focusing on disease outcomes.

Concepts: Better, Improve, Nutrition, Food, Purchasing power parity, Purchasing power


The UN Framework Convention on Climate Change aims to keep warming below 2 °C while recognizing developing countries' right to eradicate extreme poverty. Poverty eradication is also the first of the Sustainable Development Goals. This paper investigates potential consequences for climate targets of achieving poverty eradication. We find that eradicating extreme poverty, i.e., moving people to an income above $1.9 purchasing power parity (PPP) a day, does not jeopardize the climate target even in the absence of climate policies and with current technologies. On the other hand, bringing everybody to a still modest expenditure level of at least $2.97 PPP would have long-term consequences on achieving emission targets. Compared to the reference mitigation pathway, eradicating extreme poverty increases the effort by 2.8% whereas bringing everybody to at least $2.97 PPP would increase the required mitigation rate by 27%. Given that the top 10% global income earners are responsible for 36% of the current carbon footprint of households; the discourse should address income distribution and the carbon intensity of lifestyles.

Concepts: Weather, Climate change, Household income in the United States, Millennium Development Goals, Sustainable development, Global warming, Poverty reduction, Purchasing power parity


BACKGROUND: Every year, 1·1 million babies die from prematurity, and many survivors are disabled. Worldwide, 15 million babies are born preterm (<37 weeks' gestation), with two decades of increasing rates in almost all countries with reliable data. The understanding of drivers and potential benefit of preventive interventions for preterm births is poor. We examined trends and estimate the potential reduction in preterm births for countries with very high human development index (VHHDI) if present evidence-based interventions were widely implemented. This analysis is to inform a rate reduction target for Born Too Soon. METHODS: Countries were assessed for inclusion based on availability and quality of preterm prevalence data (2000-10), and trend analyses with projections undertaken. We analysed drivers of rate increases in the USA, 1989-2004. For 39 countries with VHHDI with more than 10 000 births, we did country-by-country analyses based on target population, incremental coverage increase, and intervention efficacy. We estimated cost savings on the basis of reported costs for preterm care in the USA adjusted using World Bank purchasing power parity. FINDINGS: From 2010, even if all countries with VHHDI achieved annual preterm birth rate reductions of the best performers for 1990-2010 (Estonia and Croatia), 2000-10 (Sweden and Netherlands), or 2005-10 (Lithuania, Estonia), rates would experience a relative reduction of less than 5% by 2015 on average across the 39 countries. Our analysis of preterm birth rise 1989-2004 in USA suggests half the change is unexplained, but important drivers include non-medically indicated labour induction and caesarean delivery and assisted reproductive technologies. For all 39 countries with VHHDI, five interventions modelling at high coverage predicted a 5% relative reduction of preterm birth rate from 9·59% to 9·07% of livebirths: smoking cessation (0·01 rate reduction), decreasing multiple embryo transfers during assisted reproductive technologies (0·06), cervical cerclage (0·15), progesterone supplementation (0·01), and reduction of non-medically indicated labour induction or caesarean delivery (0·29). These findings translate to roughly 58 000 preterm births averted and total annual economic cost savings of about US$3 billion. INTERPRETATION: We recommend a conservative target of a relative reduction in preterm birth rates of 5% by 2015. Our findings highlight the urgent need for research into underlying mechanisms of preterm births, and development of innovative interventions. Furthermore, the highest preterm birth rates occur in low-income settings where the causes of prematurity might differ and have simpler solutions such as birth spacing and treatment of infections in pregnancy than in high-income countries. Urgent focus on these settings is also crucial to reduce preterm births worldwide. FUNDING: March of Dimes, USA, Eunice Kennedy Shriver National Institute of Child Health and Human Development, and National Institutes of Health, USA.

Concepts: Childbirth, Population, United States, Caesarean section, Eunice Kennedy Shriver, Preterm birth, Human Development Index, Purchasing power parity


Background:The contribution of breastfeeding and mothers milk to the economy is invisible in economic statistics.Objective:This article demonstrates how the economic value of human milk production can be included in economic statistics such as gross domestic product (GDP) and provides estimates for Australia, the United States, and Norway.Methods:The contribution of human milk and lactation to GDP in these countries is estimated using United Nations (System of National Accounting) guidelines and conventional economic valuation approaches to measuring production in GDP.Results:In Australia, current human milk production levels exceed $3 billion annually. The United States has the potential to produce human milk worth more than US$110 billion a year, but currently nearly two thirds of this value is lost due to premature weaning. In Norway, production valued at US$907 million annually is 60% of its potential value.Conclusions:The potential loss of economic value from not protecting women’s lactation and milk production from competing market pressures is large. Failure to account for mothers' milk production in GDP and other economic data has important consequences for public policy. The invisibility of human milk reduces the perceived importance of programs and regulations that protect and support women to breastfeed. The value of human milk can be measured using accepted international guidelines for calculating national income and production. It is quantitatively nontrivial and should be counted in GDP.

Concepts: Milk, Breastfeeding, Lactation, Economics, Breast, Breast milk, Gross domestic product, Purchasing power parity


The rapid transformation of the livestock sector in recent decades brought concerns on its impact on greenhouse gas emissions, disruptions to nitrogen and phosphorous cycles and on land use change, particularly deforestation for production of feed crops. Animal and human health are increasingly interlinked through emerging infectious diseases, zoonoses, and antimicrobial resistance. In many developing countries, the rapidity of change has also had social impacts with increased risk of marginalisation of smallholder farmers. However, both the impacts and benefits of livestock farming often differ between extensive (backyard farming mostly for home-consumption) and intensive, commercial production systems (larger herd or flock size, higher investments in inputs, a tendency towards market-orientation). A density of 10,000 chickens per km2 has different environmental, epidemiological and societal implications if these birds are raised by 1,000 individual households or in a single industrial unit. Here, we introduce a novel relationship that links the national proportion of extensively raised animals to the gross domestic product (GDP) per capita (in purchasing power parity). This relationship is modelled and used together with the global distribution of rural population to disaggregate existing 10 km resolution global maps of chicken and pig distributions into extensive and intensive systems. Our results highlight countries and regions where extensive and intensive chicken and pig production systems are most important. We discuss the sources of uncertainties, the modelling assumptions and ways in which this approach could be developed to forecast future trajectories of intensification.

Concepts: Carbon dioxide, Agriculture, Meat, Gross domestic product, Farm, Greenhouse gas, Purchasing power parity, Intensive and extensive properties


BACKGROUND: Traumatization in childhood can result in lifelong health impairment and may have a negative impact on other areas of life such as education, social contacts and employment as well. Despite the frequent occurrence of traumatization, which is reflected in a 14.5 percent prevalence rate of severe child abuse and neglect, the economic burden of the consequences is hardly known. The objective of this prevalence-based cost-of-illness study is to show how impairment of the individual is reflected in economic trauma follow-up costs borne by society as a whole in Germany and to compare the results with other countries' costs. METHODS: From a societal perspective trauma follow-up costs were estimated using a bottom-up approach. The literature-based prevalence rate includes emotional, physical and sexual abuse as well as physical and emotional neglect in Germany. Costs are derived from individual case scenarios of child endangerment presented in a German cost-benefit-analysis. A comparison with trauma follow-up costs in Australia, Canada and the USA is based on purchasing power parity. RESULTS: The annual trauma follow-up costs total to a margin of EUR 11.1 billion for the lower bound and to EUR 29.8 billion for the upper bound. This equals EUR 134.84 and EUR 363.58, respectively, per capita for the German population. These results conform to the ones obtained from cost studies conducted in Australia (lower bound) and Canada (upper bound), whereas the result for the United States is much lower. CONCLUSION: Child abuse and neglect result in trauma follow-up costs of economically relevant magnitude for the German society. Although the result is well in line with other countries' costs, the general lack of data should be fought in order to enable more detailed future studies. Creating a reliable cost data basis in the first place can pave the way for long-term cost savings.

Concepts: Domestic violence, United States, Economics, Psychological trauma, Child abuse, Sexual abuse, Neglect, Purchasing power parity