Tobacco Documents Online

FOOTNOTES 'The standard property rights view of the not-for-profit firm predicts inefficient activity due to an inappropriate assignment of property rights (Alchian and Kessel, 1962). Examples of this kind of firm are the administratively regulated utilities. One might expect the og_odwill not-for-profit firm -- government supported or financed and/or supported by large numbers of small donations -- to engage in an even more attenuated manner. That is, one would expect to find: (a) unrestrained research director-managers to be distributing expenditures; (b) higher labor/capital ratios and lower output in such firms; and (c) inefficient use of huge quantities of largely donated resources. ZSchultz is a member of the department of epidemiology and public health at the University of Miami School of Medicine; Novotny, who holds an M.D., is employed in program services activity for the Office on Smoking and Health in the Public Health Service of the U. S. Department of Health and Human Services; Rice is with the School of Nursing at the University of California, San Francisco. SAMMEC, as a microcomputer software, was developed for the Minnesota Department of Health to calculate so-called smoking-attributable disease impacts for "local" (i.e:, non-national) populations. The software, initially created by Shultz in 1985 and 1986 (see Shultz, 1985, 1986a), was applied by him to New York City, (1986b), formed the 37 TIMN 445072

basis of a doctoral dissertation (Shultz, 1988a), and was refined into SAMMEC II at the Minnesota Department of Health in 1988 (Shultz, 1988b). 3The authors, perhaps in awareness of the political nature of the research presented in the Sullivan Report, issue a disclaimer buried deeply in the text: "They (the data) do not describe a net cost effect nor do they indicate the potential savings if tobacco use were eliminated in the United States" (National Status Report, 1990, p. 40). ' SAMMEC II, it should be noted, provides citations to literature that reports lower lifetime (aggregate) medical costs for smokers rather than nonsmokers, but subsequently ignores this literature. See, in particular Leu and Schaub, (1983); Schelling, (1987); and Warner (1987). SMishan's actual objection to using a net cost method of calculating the reduced income effects of loss of life is that a simple calculation of income minu consumption "has no regard for the feelings of the potential decedents. It restricts itself to the interest only of the surviving members of society; it ignores society ex ante and concentrates wholly on society ex post" (1971, p. 690). 6This is based on material from Eysenck, Hans J., "Smoking and Health," in Smokina and Societv, Robert Tollison, ed., D. C. Heath, 1986. 38 ,ygMN 445073