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Building on a Legacy

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The RAND Corporation is a nonprofit research organization providing

objective analysis and effective solutions that address the challenges

facing the public and private sectors around the world.

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Strategic Analysis:The Long-TermCompetition

Remotely PilotedVehicles

Preliminary Design of anExperimental World-CirclingSpaceship (1946)

StrategicBombingAnalysis

Exotic Materialsand Fuels

Effi ciency and Economyin Government ThroughNew Budgeting andAccounting Procedures

Missiles vs. Aircraft

Air Defense Strategic Offensive Forces Study

Packet Switching:Seed of the Internet

METRIC

The Operational Code of the Politburo

Problem-Solvingwith Monte CarloTechniques

InformationProcessingLanguage (IPL)

DetectingNuclear Tests

LinearProgrammingand Extensions

Sea-Based vs. Land-Based Tactical Air

Computer Security Manpower and Personnel Policies

JOHNNIACDigitalComputer

ReconnaissanceSatellites

First On-Line,Time-SharedComputer System

Economics ofDefense in theNuclear Age

Remote AreaConfl ict Space Defense

A Proposed Strategyfor the Acquisitionof Avionics Equipment

Air ForceLong-RangePlanning Studies System

Acquisition

Selection andUse of StrategicAir Bases

SystemsAnalysis

History of SovietNuclear Research RAND Tablet:

Communicatingwith Computers in Real Time Via Hand-Printed Text

System Analysisand Public Policy Space

Systems

Future ofCableTelevision

Vulnerabilityof U.S. ArmyEquipmentPrepositioned inCentral Europe

Air Force Health Care System

SystemsResearchLaboratory Military R&D

PoliciesICBM Modernizationand Basing Concepts

Air ReserveForces Study

Alternative LogisticsStructures: ANALOGS 80

HousingAssistanceSupplyExperiment

AerialRefueling

Design of MultipleIndependently TargetableReentry Vehicles

AlternativeApproachesto the Defenseof Europe

ElectromagneticPulse (EMP)

Strategy in the Missile Age

JOSS (JOHNNIACOpen Shop System)

NATO Force PlanningStrategic Force-Building and CrisisManagement

Mappingthe Planets

Water QualitySimulation Model

ComputerPrivacy andSecurity

Defense of theTactical Air Forcein Europe

PPBS

SpaceHandbook

DelphiMethod Air-Launched vs.

Ground-LaunchedSatellite Boosters

Evaluationsand Optionsfor Vietnam

New York CityPolice Project

Strategic AirliftNeeds andAlternativesfor the 1980s

Tactical AirCapabilities

STAR: Impact ofAlternative IntercityShort-HaulTransportationSystems

All-VolunteerForce

Handbook onthe Theory ofGames

ExpertJudgment

Game Theory

A Million RandomDigits with 100,000 Normal Deviates

CORONAProject

DynamicProgramming

Water Supply:Economics,Technology,and Policy

SimulationsUsing SIMSCRIPT

Soviet CyberneticsTechnology

Soviet MilitaryResearch and Development

Private SecurityIndustry

HealthInsuranceExperiment

First Project RAND letter contract (to Douglas Aircraft Co.)

RAND Corporation established

First non–Air Force study (for the Atomic Energy Commission)

Headquarters opens at 1700 Main Street, Santa Monica

Systems Development Division created; spun off as SDC in 1957

Studies for ARPA, NASA, OSD, AID, NSF, and NIH begin

Washington Defense Research Division established

New York City-RAND Institute established

RAND Graduate School founded

Domestic Research Division established; includes programs on Education, Health, and Labor & Population

National Security Research Division established

Institute for Civil Justice established

National Defense Research Institute and the Arroyo Center established

European American Center opens (later becomes RAND Europe)

Critical Technologies Institute established

Center for Domestic and International Health Security created

RAND-Qatar Policy Institute opens

RAND division on Infrastructure, Safety, and the Environment established

RAND moves into new headquarters at 1776 Main Street, Santa Monica

Changing Role of Information in Warfare

Rapidly Deployable Ground Forces

Counterterrorism

Social Security Concerns

Homeland Security

Nation-Building in Iraq

Federal ProgramsSupporting EducationalChange

Policy Options andthe Impact of NationalHealth Insurance

Computer ResourceManagement Study

SchedulingAircrews andAircraft

Water ResourceManagement inthe Netherlands

TSAR/TSARINAAir Base AttackSimulation Models

Red StrategicCampaign Analysis

Use and Misuse ofCalifornia’s WaterResources

Impact of Deductibles onthe Demand for Medical Care

Preventive DentalCare for Children

Malaysian FamilyLife Survey

Equity in PublicSchool Finance

Career Criminals

Asian Security: Policiesfor a Time of Transition

Court-CenteredArbitration

Ballistic MissileBasing Alternatives

Resolution of MedicalMalpractice Claims

Revitalization ofCleveland’s Economy

Workers’ Compensationand Workplace Safety

Strategic Defenseand Deterrence

Dyna-METRIC

RAND StrategyAssessment Center

Survivability andUtility of Tactical Air

Costs of AsbestosLitigation

Teen Drug Abuse andSmoking Prevention:Project ALERT

Civil JuryVerdicts andAwards

LHX: Army LightAttack Helicopter

Toward Ethicsand Etiquette forElectronic Mail

Terrorism in theUnited States

Next Phase of U.S.–Soviet Relations

Closing the Gap: FortyYears of EconomicProgress for Blacks

EffectiveTeacherSelection

Air CrashLitigation

PunitiveDamages

Prevalence,Predictability, andPolicy Implicationsof Recidivism

A Framework forDefense Planning:Strategies-to-Tasks

Health Insuranceand the Demandfor Medical Care

Costs ofTreating AIDSUnder Medicaid

Leadership Change inNorth Korean Politics

Conventional ArmsControl Revisited

Appropriatenessof Acute Medical Care

RecruitingEffects of ArmyAdvertising

The New Calculus:Analyzing Airpower’sChanging Role

Economics ofDrug Dealing

No-Fault Approachesto Compensating AutoAccident Injuries

Immigration: Effects on Education, Jobs, and Government Spending

Evaluation ofCHAMPUSReform Initiative

FORWARD–Freight Optionsfor Road, Water, and Railfor the Dutch

Cost and Use ofCapitated MedicalServices

Decentralizationand Accountabilityin Public Education

Emerging Technologyand Arms Control

OperationalIssues for GPS

Urban America:Policy Choices forLos Angeles andthe Nation

Lessonsfrom theGulf War

Superfund andTransaction Costs

Sexual Orientationand U.S. MilitaryPersonnel Policy

VelocityManagement

NATOExpansion

Three Strikesand You’re Out

Decline of U.S.Machine ToolIndustry

Universal Access toE-Mail: Feasibility andSocietal Implications

Quality ofHealth Care

Unequal Wealthand Incentivesto Save

HIV Cost and ServicesUtilization Study(HCSUS)

Mandatory MinimumSentences for Drug Cases

Defense BaseClosures

Fiscal Federalism andthe Social Safety Net

Military OperationsOther Than War

Fiscal Crisis inHigher Education

Preparing forConfl ict in theInformation Age

Interventions inthe First ThreeYears of Life

Judicial Case ManagementUnder the Civil JusticeReform Act

QuadrennialDefense Review

Effective PowerGeneration UnderDeregulation

LeanLogistics

Large-Scale Education Testing

Treatment of Depression

How Americans Were Affected by the Events of 9/11

California Energy Crisis

Education Vouchers and Charter Schools

Cost of Prescription Drug Plans

Reducing Violent Gang-Related Crime

Health Care Quality

Education Reform In Qatar

Costs of Obesity

Medicare Payment for Rehabilitation

The Changing Workplace

Parity Legislation for Mental Health

Inadequate Compensation for Worker Injuries

Training Emergency Responders

Public Health Preparedness

Safety of Ephedra

Military Transformation

Senior Leadership Development in the DoD

Alternative for the Next Generation Gunship

RAND opens an offi ce in Pittsburgh, Pennsylvania

H I G H L I G H T S O F R A N D R E S E A R C H

R A N D I N S T I T U T I O N A L M I L E S T O N E S




Building on a Legacy Message from the Chairman and the President

c o n t e n t s

The Year in Review

R AND Staff

Investing in Ideas

Educational Opportunities

Clients and Sponsors

Advisory Boards

Financial Report

Now that the boxes are unpacked in our new headquarters building, we can refl ect on the process of moving our address a couple hundred yards south from 1700 to 1776 Main Street. The movement, though modest, bespeaks of larger things.

RAND’s leaders identifi ed the need for a new facility 20 years ago. The movement might have seemed glacial to some, but our progress was steady, even under budget once we fi xed on our plan fi ve years ago. Each step led to the next, and we ended up in a much better place.

It is fi tting to wax philosophical, or at least metaphorical. For nearly six decades, we at the RAND Corporation have been building on a legacy of accomplishments, adding new stories to the foundation and scaling heights that never could have been imagined at the outset. At times, our progress might have seemed imperceptible. But throughout it all, we have taken what we have learned, and we have kept growing and reaching beyond our last best success.

Bu il ding onMessage from the Chairman and the President

The roots of many of our accomplishments in 2004 can be traced to earlier decades. The pioneers of the Delphi technique, a groundbreaking RAND methodology of the 1950s, probably never envisioned the day when an underlying concept of their technique, fi rst used to forecast future military technologies, would be used to assess the benefi ts of the arts. Equally unanticipated, our extensive work in securing the skies has spread, more than ever, to securing the seas. Meanwhile, our latest work in the fi eld of human health has led to an utterly unprecedented area of inquiry regarding healthful versus unhealthful built environments.

In the pages that follow, we describe these developments in greater detail. We also summarize fi ve other examples of building on our legacies in strikingly dissimilar fi elds: military personnel, civil justice, homeland security, education, and religion.

Judging by our work in 2004, we could never rightfully claim that RAND’s best days lie in its past. Our latest legacies compel us to believe that RAND’s best days are yet to come.

For nearly six decades, we have been building on

a legacy of accomplishments, adding new stories

to the foundation and scaling heights that never

could have been imagined at the outset.

Ann McLaughlin KorologosChairman

a Leg ac y

James A. ThomsonPresident and CEO

m e ss age from t h e ch a ir m a n a nd t h e pr e s iden t

K E V I N M C C A R T H Y

Kevin McCarthy is a senior social scientist at the RAND Corporation. He has led several recent arts projects: reframing the debate about the benefi ts of the arts; a series of separate studies of the state of the performing arts and the visual arts, funded by The Pew Charitable Trusts; a study of the media arts, funded by the Rockefeller Foundation; and an analysis of how to build public involvement in the arts, commissioned by The Wallace Foundation. Dr. McCarthy has also written extensively on demographic trends and their policy implications.

In the 1950s, RAND researchers formulated the Delphi technique, a methodology for eliciting the intuitive judgments of experts and for building a group consen-sus. The technique has proven useful in extrapolating informed opinion in the absence of exact knowledge.

In 2004, RAND analysts applied the spirit of this tech-nique in distilling expert intuition about the benefi ts of the arts. The analysts found that policymakers today need this kind of broader expert perspective—one that draws on the knowledge of philosophers, art critics, and artists themselves as well as social scientists and economists—to account for the benefi ts of the arts to individuals and society.

In recent years, political and fi nancial pressures have compelled arts advocates to justify public support for the arts by trumpeting their “instrumental” benefi ts—that is, benefi ts that are not unique to the arts experi-ence per se but that serve as a means, or instrument, toward achieving other social and economic ends. Examples of such benefi ts of the arts are enhanced learning and higher student test scores, more self-discipline, improved mental health, greater civic involvement, and various economic payoffs, such as income, employment, investment, and tax revenue.

But these instrumental benefi ts fail to capture the true value of the arts, according to the RAND team led by social scientist Kevin McCarthy. In fact, people fl ock to the arts not to improve their tests scores or to stimulate the economy but to reap the intrinsic benefi ts of the arts. And many of the intrinsic benefi ts have value not only for individuals but also for society as a whole.

Grounding their analysis in literature from several disciplines, the RAND team identifi ed three general categories of intrinsic benefi ts: (1) individual benefi ts, such as the captivation and pleasure that come from arts experiences and that motivate people to seek more such experiences; (2) individual benefi ts that also have spillover effects for society, such as cognitive growth in observing details, patterns, and relationships—and an expanded capacity for empathy with people of different backgrounds and cultures; and (3) public benefi ts, such as the creation of social bonds among those who share and discuss an artistic experience—and the expression of communal meaning.

These intrinsic benefi ts can be sustained and expanded only by strengthening the capacity of individuals to appreciate the arts, according to the RAND team. Therefore, policymakers should focus on building demand for the arts (by introducing more Americans to engaging arts experiences, especially when they are young) rather than focusing solely on expanding the supply of arts experiences (such as live theater, concerts, and museum exhibits).

Related Reading

Arts Education Partnerships: Lessons Learned from One School District’s Experience, 2004,

Melissa K. Rowe, Laura Werber Castaneda, Tessa Kaganoff , Abby Robyn, MG-222- EDU.

From Celluloid to Cyberspace: Th e Media Arts and the Changing Arts World, 2002, Kevin F.

McCarthy, Elizabeth Ondaatje, MR-1552-WF.

Gifts of the Muse: Reframing the Debate About the Benefi ts of the Arts, 2005, Kevin F.

McCarthy, Elizabeth H. Ondaatje, Laura Zakaras, Arthur Brooks, MG-218-WF.

A New Framework for Building Participation in the Arts, 2001, Kevin F. McCarthy, Kimberly

Jinnett, MR-1323-WRDF.

Th e Performing Arts in a New Era, 2001, Kevin F. McCarthy, Arthur Brooks, Julia Lowell,

Laura Zakaras, MR-1367-PCT.

State Arts Agencies 1965–2003: Whose Interests to Serve? 2004, Julia F. Lowell,

MG-121-WF.

From the Delphi Technique to an Arts Critique

bu il di ng on a l eg ac y

H E N R Y W I L L I S A N D D A V I D O R T I Z

Henry Willis (right) is an associate policy researcher whose research interests include risk assessment, risk communication, and decision analysis. He has applied these methods to allocation of counterterrorism resources, the health risks of beryllium exposures, threats to adolescent welfare, evaluation of federal investments in research and development, and the ranking of ecological risks. David Ortiz (left) is an associate engineer who specializes in mathematical modeling, simulation, and numerical optimization in support of policy. His current interests are energy and space policy, including assessments of energy infrastructure and supply vulnerability, and civilian space strategy.

In 1953, in response to Soviet belligerence, RAND com-pleted vital projects on the defense of the United States against air attack. In 2004, in response to terrorist bel-ligerence, RAND completed vital projects on the defense of the United States and its allies against sea attack.

Our efforts on behalf of maritime security in 2004 fo-cused on averting terrorist threats both to homeland se-curity in general and to seaports and global commerce in particular. We conducted the work on behalf of the U.S. Coast Guard and the global container shipping industry.

In the wake of the terrorist attacks of September 11, 2001, the Coast Guard was placed within the U.S. Department of Homeland Security and was asked to perform expanded homeland defense duties and other maritime responsibilities in addition to its traditional missions. But to fulfi ll all of these responsibilities, the Coast Guard will have to accelerate and expand its modernization plans, according to a RAND team led by physicist John Birkler (see Table 1).

The RAND team proposed a dual strategy: The Coast Guard should (1) accelerate and expand the acquisi-tion of modernized cutters, aircraft, helicopters, and unmanned air vehicles, and (2) identify and explore new technologies and platform options, such as stationary offshore platforms, that could leverage the capabilities of the newly acquired surface and air vehicles.

In a study of the global container shipping industry, a separate RAND team found that the U.S. government should take a stronger role in developing a strategy to prepare the container shipping industry for terrorist attacks and to help the industry recover quickly if attacks occur.

During an age of increased terrorist threats, the ability of the global container supply chain to deliver goods effi ciently and securely relies on more than just the tra-ditional requirements for cheap and timely deliveries. In

addition, cargo must be declared appropriately to trade and other governmental offi cials. Cargo must also be inspected to minimize smuggling, entry of illegal immigrants, and the use of containers as a means for terrorist attack. Efforts to secure U.S. ports must address all of these priorities.

The RAND report, by Henry Willis and David Ortiz, recommends that the public and private sectors work together on security measures to address the vulner-abilities on global supply routes. Examples of such measures are (1) tamper-evident seals on shipping containers and (2) radio frequency identifi cation devices that monitor ships along their routes. Finally, research and development should focus on improving remote sensing and scanning capabilities to monitor high volumes of shipping traffi c. Current technologies are time-consuming, can be inaccurate, and can potentially be circumvented.

Related Reading

Evaluating the Security of the Global Containerized Supply Chain, 2004, Henry H. Willis,

David S. Ortiz, TR-214-RC.

“Seacurity”: Improving the Security of the Global Sea-Container Shipping System, 2003,

Maarten van de Voort, Kevin A. O’Brien, MR-1695- JRC.

Th e U.S. Coast Guard’s Deepwater Force Modernization Plan: Can It Be Accelerated? Will It Meet Changing Security Needs? 2004, John Birkler, Brien Alkire, Robert Button, Gordon Lee,

Raj Raman, John Schank, Carl Stephens, MG-114-USCG.

From Air Defense to Sea Defense


Asset

Number

In Original Deepwater

Plan*

Needed to Meet 60%

of Total Demands

Needed to Meet 80%

of Total Demands

Needed to Meet 100%

of Total Demands

National Security Cutter 8 26 35 44

Offshore Patrol Cutter 25 28 37 46

Fast Response Cutter 58 54 72 90

Maritime Patrol Aircraft 35 24 29 35

High Altitude Endurance Unmanned Air Vehicle 7 13 17 25

Vertical Recovery System 34 33 33 33

Multimission Cutter Helicopter 93 112 126 139

Vertical Unmanned Air Vehicle 69 75 99 123

SOURCE: The U.S. Coast Guard’s Deepwater Force Modernization Plan, 2004.

* The original Deepwater plan—short for the Integrated Deepwater System Program—is the U.S. Coast Guard modernization plan that began in 1998.

TABLE 1—To Fulfi ll Both Its Traditional Missions and Emerging Responsibilities, the Coast Guard Will Need Many More Assets Than Originally Planned

Our pioneering work in the fi eld of public health com-menced in 1971 with the Health Insurance Experiment, a 15-year study of the rates at which families utilized alternative health insurance plans. In 2004, we con-tinued our pioneering tradition in the fi eld of public health by sparking a lively national discussion about the nationwide obesity epidemic and the mounting threat it poses to the nation’s health care system and public health insurance programs.

Our work in this fi eld also linked some obesity-related chronic health conditions to suburban sprawl. Thus, we extended the salience of our work in health care to the fi eld of urban planning.

RAND economists Roland Sturm and Darius Lakdawalla and their teams documented both the disturbing spread of the obesity epidemic over the past 20 years among all U.S. demographic groups and the alarming health and fi nancial consequences. Obesity and its attendant disorders—particularly diabetes, arthritis, and back problems—appear to be associated with steadily rising disability levels nationwide. By the year 2020, one in fi ve health care dollars for those between the ages of 50 and 69 could be consumed by treating only the conse-quences of obesity, up from less than one in ten dollars for this age group in 1985.

In one hopeful fi nding, RAND analysts Ashlesha Datar and Roland Sturm found that modest increases in physi-cal education instruction in kindergarten of just one hour per week could reduce the number of overweight fi ve- and six-year-old girls nationally by as much as 10 percent. Providing every child in kindergarten and fi rst grade with fi ve hours of such instruction per week—close to the level recommended—could cut both the number of overweight girls in those two grades by 43 percent and the number of such girls at risk of being overweight by 60 percent.

One factor that contributes to obesity is a sedentary lifestyle, which can be exacerbated by suburban sprawl

that is friendly to cars but hostile to walking and biking. Roland Sturm and Deborah Cohen found that people who live in areas with a high degree of suburban sprawl are more likely to report one or more of 16 chronic health conditions, including arthritis and diabetes, than people who live in less sprawling areas (see Figure 1). If future research confi rms these initial results, then policies that shape a healthier built environment could play a critical role in preventing obesity as well as a wide variety of chronic diseases.

Related Reading

“Are the Young Becoming More Disabled? Rates of Disability Appear to Be on the Rise

Among People Ages Eighteen to Fifty-Nine, Fueled by a Growing Obesity Epidemic,” Health Aff airs, Vol. 23, No. 1, January/February 2004, pp. 168–176, Darius N. Lakdawalla, Jayanta

Bhattacharya, Dana P. Goldman.

“Th e Economics of Physical Activity: Societal Trends and Rationales for Interventions,”

American Journal of Preventive Medicine, Vol. 27, No. 3, October 2004, pp. 126–135, Roland

Sturm.

“Th e Eff ects of Obesity, Smoking, and Drinking on Medical Problems and Costs,” Health Aff airs, Vol. 21, No. 2, March/April 2002, pp. 245–253, Roland Sturm. Also available as

RAND/RP-1003.

“Increases in Clinically Severe Obesity in the United States, 1986–2000,” Archives of Internal Medicine, Vol. 163, No. 18, October 13, 2003, pp. 2146–2148, Roland Sturm.

“Increasing Obesity Rates and Disability Trends: If It Continues at Its Current Rate, Rising

Obesity Could Wipe Out Recent Improvements in Disability Among Older Americans,”

Health Aff airs, Vol. 23, No. 2, March/April 2004, pp. 199–205, Roland Sturm, Jeanne S.

Ringel, Tatiana Andreyeva.

“Physical Education in Elementary School and Body Mass Index: Evidence from the

Early Childhood Longitudinal Study,” American Journal of Public Health, Vol. 94, No. 9,

September 2004, pp. 1501–1506, Ashlesha Datar, Roland Sturm.

“Suburban Sprawl and Physical and Mental Health,” Public Health, Vol. 118, No. 7, October

2004, pp. 488–496, Roland Sturm, Deborah A. Cohen.

From Health Plans to Healthy Planning

A S H L E S H A D A T A R A N D R O L A N D S T U R M

In 2004, Ashlesha Datar and Roland Sturm wrote articles that were published in Archives of Pediatric and Adolescent Medicine, the American Journal of Public Health, and (with Jennifer Magnabosco) Obesity Research. Dr. Datar, an associate economist whose research interests include child care, child health, and early childhood education, holds a Ph.D. in policy analysis from the Pardee RAND Graduate School. Dr. Sturm is a senior economist whose recent work has focused on the economics of healthy living; health care costs of poor health habits; changes of mental health and substance abuse services under managed care; and effects of the parity legislation for behavioral health care. He has testifi ed on health care issues in Congress and several state legislatures.

r a n d a n n ua l r e p or t

FIGURE 1—The Greater the Sprawl, the Greater the Number of Chronic Health Conditions

SOURCE: “Suburban Sprawl and Physical and Mental Health,” 2004.

Less Suburban Sprawl

Number of Chronic Health

Conditions Reported Per 1,000 Adults

More Suburban Sprawl

1,600

1,500

1,400

1,300

1,200

1,100

1,000

Examples ofMetropolitan Areas

Atlanta Seattle-Bellevue-Everett

San Francisco

B E T H A S C H A N D J A M E S H O S E K

Beth Asch is a senior economist whose areas of study include labor economics and defense manpower. She has led numerous studies on compensation design in the military and in the federal civil service, and on military recruiting and personnel supply to the armed forces. Her research has been widely disseminated as reports, briefi ngs, and journal articles among the policy community, the media, and the academic community. Jim Hosek is editor-in-chief of the RAND Journal of Economics and professor of economics at the Pardee RAND Graduate School. In recent years, he has examined the structure of military compensation, personnel quality, information technology personnel, and the impact of peacetime operations on promotion and retention.

RAND found in 1977 that the move to an all-volunteer military force in 1973 had succeeded in attracting a socially representative mix of the desired quantity and quality of recruits at a cost substantially lower than had been commonly assumed. The work confi rmed RAND’s leadership in military personnel research and led to decades of subsequent work in this area.

Nearly 30 years later, two teams of RAND researchers proposed how the U.S. military might derive greater capability, accountability, and creativity from its personnel. In the fi rst study, Margaret Harrell, Harry Thie, and their team found that senior military offi cers spend much less time in their high-level assignments and retire much earlier than do their private-sector counterparts. Thus, the rapidly revolving door of military leadership could be depriving the services of higher degrees of effectiveness and accountability.

At the most senior levels in the military, four-star offi cers average only 3.5 years there before they retire (and that might include more than one assignment at that rank). In contrast, chief executive offi cers in the private sector typically spend 8.4 years in their positions. Furthermore, nearly 90 percent of four-star offi cers retire before reaching age 60, compared with only about a third of their private-sector peers (see Figure 2).

Military leaders have worried that lengthening the careers of senior offi cers would clog the system and thus delay promotions throughout the offi cer corps. But Harrell and her team found that lengthening the assignments of many of the highest-ranking military positions to four years would enhance stability and accountability without unreasonably stifl ing any promotion opportunity.

In the second study, Beth Asch and James Hosek found that the entire military personnel and compensation system must begin to place a higher value on

innovation, intelligent risk-taking, and entrepreneurship. The system must also begin to produce greater variation in career paths. These changes are crucial for military transformation—or for developing the kinds of personnel capabilities that will be needed to defend the United States against a spectrum of unknown or uncertain threats, ranging from weapons of mass destruction to attacks on information systems.

Asch and Hosek recommend four ways for military commanders to update the personnel system: (1) Place greater emphasis on innovation, creativity, and entrepreneurship in performance appraisals; (2) grant awards to innovators; (3) allow service members more choice in duty and job assignments; and (4) offer service members performance-based pay raises without promotions. These measures would help military commanders to build the kind of force required for military transformation.

Related Reading

Aligning the Stars: Improvements to General and Flag Offi cer Management, 2004, Margaret C.

Harrell, Harry J. Th ie, Peter Schirmer, Kevin Brancato, MR-1712-OSD.

Looking to the Future: What Does Transformation Mean for Military Manpower and Personnel Policy? 2004, Beth Asch, James R. Hosek, OP-108-OSD.

From a Volunteer Force to an Entrepreneur Force


FIGURE 2—Generals and Admirals Have Shorter Tenures and Retire Younger than CEOs

SOURCES: O-10 data from Directorate for Information Operations and Reports (Washington Headquarters Service), General and Flag Offi cer Database, combined with Defense Manpower Data Center and Joint Duty Assignment Management Information System databases. CEO data based on a study of CEO turnover between 1971 and 1994 (“Why CEOs Fall: The Causes and Consequences of Turnover at the Top,” Strategy & Business, Third Quarter, 2002,Chuck Lucier, Eric Spiegel, Rob Schuyt) and a study of CEOs in regulated and unregulated fi rms (“Chief Executive Offi cer Careers in Regulated Environments: Evidence from Electric and Gas Utilities,” Journal of Law and Economics, Vol. 45, October 2002, pp. 535–563, Charles J. Hadlock, Scott Lee, Robert Parrino). CEO data in fi gure are for unregulated fi rms from the latter study and are similar to data in the former.

NOTE: O-10 rank signifi es admiral in the U.S. Navy and general in the U.S. Air Force, U.S. Army, and U.S. Marine Corps.

Age

O-10s

35 45 55 65

CEOs

O-10s CEOs0

20

40

60

80

100

Percentage Retiring UnderAge 60

Mean Age When Appointed

Mean Tenure

L L O Y D D I X O N

Lloyd Dixon is a senior economist at the RAND Corporation with expertise in resource and environmental economics and policy. In addition to his recent research on compensation to victims of the 9/11 terrorist attacks, he has focused on such topics as California’s strategies for reducing air pollution; the economic consequences of water-supply reductions; Southern California’s cleanup programs for the ocean, rivers, and creeks; the legal and other transaction costs of the federal Superfund cleanup program; and the effects of extending emission-system warranties on the auto-repair industry and on the role of expert evidence in the courts.

In a 1988 landmark study of air crash litigation in the United States, RAND described the characteristics of the decedents and compiled data on the economic losses suffered by survivors, the compensation paid, and the costs of litigation. In 2004, we built on this expertise, fi rst by examining the impact of medical malpractice reform legislation and then by giving the nation an accounting of the payouts made in response to the ter-rorist attacks of September 2001.

RAND researcher Nicholas Pace and his colleagues assessed the impact on jury awards of California’s Medical Injury Compensation Reform Act of 1975. The law “caps” the amount that a malpractice plaintiff can recover at trial to $250,000 for noneconomic dam-ages—pain, suffering, emotional distress, and mental anguish—but does not cap the amount for economic damages, such as the costs of medical care and lost wages. The law also limits the fees that plaintiffs’ at-torneys can collect, based on a sliding scale that reduces the allowable percentage paid to attorneys as the size of any trial award or settlement grows.

The law has had intended and unintended effects. It has reduced the aggregate amount of jury awards by 30 percent, skimming the net recoveries for plaintiffs by 15 percent while slashing the net recoveries for attorneys by 60 percent. But the law has had dramati-cally different effects on different types of cases. For example, the net recoveries for some plaintiffs have actually increased, especially for plaintiffs with initially modest awards for noneconomic damages. In contrast, the net recoveries for plaintiffs in death cases and the most serious nonfatal injury cases have often decreased, sometimes sharply.

Also in 2004, the RAND team of Lloyd Dixon and Rachel Kaganoff Stern compiled national data on the amount of compensation paid to the victims of the 9/11 terrorist

attacks. The team calculated that businesses and indi-viduals received a total of $38 billion from three sources of compensation: the insurance industry, government agencies, and charitable organizations.

The insurance industry paid more than half of the benefi ts ($19.6 billion), with a predominant share of insurance payouts going to businesses in New York City. Government agencies paid more than 40 percent of the benefi ts, with large shares set aside for civilians killed or seriously injured and for businesses. Charitable organizations paid 7 percent of the total benefi ts (see Figure 3).

There is no guarantee that a similar mix of resources will be available for victims of future terrorist attacks. More-over, the RAND analysts warn, there is no consensus in the public policy community about the appropriate and respective roles that should be played by government, the insurance industry, charities, and the legal system.

Related Reading

Capping Non-Economic Awards in Medical Malpractice Trials: California Jury Verdicts Under MICRA, 2004, Nicholas M. Pace, Daniela Golinelli, Laura Zakaras, MG-234-ICJ.

Compensation for Losses from the 9/11 Attacks, 2004, Lloyd Dixon, Rachel Kaganoff Stern,

MG-264-ICJ.

“Forty Years of Civil Jury Verdicts,” Journal of Empirical Legal Studies, Vol. 1, No. 1, March

2004, pp. 1–25, Seth A. Seabury, Nicholas M. Pace, Robert T. Reville.

From Air Crash Litigation to Terrorism Compensation


FIGURE 3—Most Benefi ts Paid to Victims of 9/11 Attacks Came from Insurance Companies

SOURCE: Compensation for Losses from the 9/11 Attacks, 2004.

Victim Group

Civilians killed/seriously injured

Emergency responders killed/seriously injured

Businesses

Workers

Residents

Unallocated

OtherInsuranceIndustry

0

5

10

15

20

Compensation Paid

(Billions of Dollars)

Government Charity

Compensation Source

$19.6 billion

$15.8 billion

$2.7 billion

D O N A L D S T E V E N S

Donald Stevens is a senior engineer who led the 2004 study examining short-term options for improving security at LAX. Other recent projects include examining the military force posture overseas and the role of the military in fi ghting terrorism. For the Quadrennial Defense Review, he is leading a study that examines the risks in the force structure. He has written numerous books including The Requirements and Affordability of the Joint Strike Fighter and United States Air and Space Power in the 21st Century.

In the 1970s and 1980s, RAND analyzed the motives and capabilities of potential adversaries of U.S. nuclear programs and suggested a strategy, later employed by the U.S. Department of Energy, to safeguard nuclear facilities from terrorist attacks and other forms of sabo-tage. In 2004, we continued to identify the components of the civilian infrastructure that are most vulnerable to terrorism and to propose ways to mitigate the vulner-abilities.

For example, a RAND team led by Donald Stevens found the most cost-effective ways to reduce the impact of a potential terrorist attack at Los Angeles International Airport, believed to be one of the country’s prime ter-rorist targets. The RAND team examined a number of plausible attack scenarios and concluded that various kinds of potential bomb attacks present the greatest and most plausible risks (see Figure 4). The major threats include bombs placed on airplanes—either as cargo or by an insider who plants a bomb without board-ing—and bombs placed in vehicles or in luggage around the airport.

Given the scenarios, the most cost-effective short-term option for protecting the traveling public is simply to add more employees to check luggage. That would expedite passenger check-in and Transportation Security Administration screening, thereby reducing the number of travelers gathered in a tightly confi ned area. In fact, increasing the number of check-in and screening workers by just 5 percent could reduce fatalities by 80 percent if terrorists detonated a luggage bomb in a check-in area.

In addition to reducing the density of crowds in the terminals, it would be cost-effective to add a permanent vehicle checkpoint program to spot vehicles that might

be carrying large bombs. A vehicle screening system might eventually include scales embedded in the road-way to quickly weigh all vehicles entering the airport, al-lowing offi cials to identify those that might be weighed down with explosives.

Beyond these two security measures that would ad-dress vulnerabilities at a relatively low cost, four other measures should be considered for improving airport se-curity. Two would address major vulnerabilities but are relatively expensive: screening all cargo transported in passenger planes and improving the employee selection and clearance procedures. The other two measures—improving perimeter fencing and improving the airport’s rapid-response capability—would address less serious vulnerabilities but could be implemented at low cost.

Related Reading

Th e Benefi ts of Positive Passenger Profi ling on Baggage Screening Requirements, 2004, Russell

Shaver, Michael Kennedy, DB-411-RC.

How Much Is Enough? Sizing the Deployment of Baggage Screening Equipment by Considering the Economic Cost of Passenger Delays, 2004, Russell Shaver, Michael Kennedy, Chad Shirley,

Paul Dreyer, DB-410-RC.

How Much Is Enough? Sizing the Deployment of Baggage Screening Equipment to Minimize the Cost of Flying: Executive Summary, 2004, Russell Shaver, Michael Kennedy, Chad Shirley,

Paul Dreyer, DB-412-RC.

Near-Term Options for Improving Security at Los Angeles International Airport, 2004, Donald

Stevens, Terry Schell, Th omas Hamilton, Richard Mesic, Michael Scott Brown, Edward

Wei-Min Chan, Mel Eisman, Eric V. Larson, Marvin Schaff er, Bruce Newsome, John

Gibson, Elwyn Harris, DB-468-1-LAWA.

From Nuclear Plant Security to Airport Security

FIGURE 4—Potential Bomb Attacks Pose the Greatest Risks to Security at Los Angeles International Airport

SOURCE: Near-Term Options for Improving Security at Los Angeles International Airport, 2004.NOTE: MANPADS = man-portable air defense system (also known as shoulder-fi red surface-to-air missile).

Lesser Threats

Major Threats


Potential Fatalities

Insider Planted BombUninspected Cargo Bomb

Large Truck BombLuggage Bomb

Curbside Car BombPublic Grounds AttackAir Operations Attack

MANPADs AttackControl Tower Bomb

Sniper AttackMortar Attack

T H O M A S K . G L E N N A N , J R .

The late Thomas Glennan was an architect of RAND’s fi rst education work in the late 1960s. His research spanned a wide variety of policy planning issues in such diverse areas as education, manpower training, energy, environmental enforcement, demonstration program management in health and human services, and military research and development. In 1971, he published one of the classic pieces of work (with Burton H. Klein and Gustave H. Shubert) in the area of weapon acquisition strategy that examined the role of prototypes. His father, T. Keith Glennan, was a member of the RAND Board of Trustees and the fi rst of three generations to serve RAND. His son Stuart was a member of the research staff in the late 1980s.

In 1975, RAND evaluated an array of “top-down” federal educational programs and concluded that many of them had undergone signifi cant adaptation at local sites. The study helped launch an area of research on the importance of implementation in improving the performance of students in America’s public schools.

In 2004, a RAND team led by Thomas Glennan and Susan Bodilly completed an analysis of 15 educational reforms and the efforts involved in taking them “to scale”—that is, replicating the reforms at many sites. Central to the analysis was a concept of scale-up that emphasized not just spreading to more sites but also enhancing implementation at the school and classroom level, sustaining the new practices over time, and shifting ownership of the reforms from developers to educators.

Developers of the reforms have made some progress toward improving teaching and learning, with several reforms demonstrating measurable gains in student performance in multiple schools or districts. Some of the efforts have focused on teachers, some on schools, and some on clusters of schools. But two common lessons have emerged for future efforts at widespread and last-ing educational reform.

First, no matter the target of reform or its design, the scale-up process is necessarily iterative and complex and requires the support of multiple actors. Key to success is rejecting a one-way replication model in favor of an interactive model that requires coordination among developers, district offi cials, school leaders, and teachers. The interactive model implies give-and-take, reciprocal learning, and mutual adaptation.

Second, if scale-up is to succeed according to the cri-teria defi ned by the RAND authors, the actors involved must jointly address a set of known, interconnected tasks, especially the alignment of school policies and infrastructure to sustain the reform effort. The infrastructural requirements are more than textbooks and technologies. Of noteworthy importance is a human-resource infrastructure—encompassing profes-sional development, hiring and retention policies, and performance incentives—that can ensure an adequate supply of teachers and administrators with the skills needed to sustain reform.

In both cases, all actors must take ownership of the effort. According to the RAND team, the faddism prevalent in public education improvement strate-gies is testimony to the fact that a shift in ownership seldom takes place. Without this shift, developers must permanently subsidize the reform efforts, a relation-ship that cannot be, and has not been, sustained over the long haul.

Related Reading

Challenges and Potential of a Collaborative Approach to Education Reform, 2004, Susan J.

Bodilly, Joan Chun, Gina Ikemoto, Sue Stockly, MG-216-FF.

Expanding the Reach of Education Reforms: Perspectives from Leaders in the Scale-Up of Educational Interventions, 2004, Th omas K. Glennan, Jr., Susan J. Bodilly, Jolene R.

Galegher, Kerri A. Kerr, MG-248-FF.

From Educational Reforms to Scaling Th em Up


A N G E L R A B A S A

Angel Rabasa is a senior policy analyst whose research interests include regional security, Colombia, Latin America, South East Asia, Indonesia, and Malaysia. He is coauthor of The Role of Southeast Asia in U.S. Strategy Toward China; Indonesia’s Transformation and the Stability of Southeast Asia; and Colombian Labyrinth: The Synergy of Drugs and Insurgency and Its Implications for Regional Stability. Before coming to RAND in 1999, Dr. Rabasa served as Deputy Director, Offi ce of Philippines, Indonesia, Malaysia, Brunei, and Singapore Affairs at the U.S. Department of State.

RAND pioneered the fi eld of Soviet Studies in 1950 and has since pursued regional studies that focus on Russia, Europe, Asia, Eurasia, and the Middle East. In 2004, we broadened the scope of our regional studies by examin-ing how Muslim religious trends extend far beyond any single geographic region and affect regions differently.

Because of the tectonic events of the past four years—from the 9/11 attacks to the wars in Afghanistan and Iraq—the United States needs to craft a new strategy toward the entire Muslim world, according to RAND analyst Angel Rabasa and his team. They outlined such a strategy by sketching a “religio-political map” of the ideological orientations across the Muslim world, by charting critical cleavages among Muslims, and by trac-ing the roots of Islamic radicalism.

The team proposed that the United States consider a variety of social, political, and military options to ameliorate the conditions that produce Islamic radical-ism. Socially, the United States could support moderate Islamic networks in opposition to radical networks, use psychological operations for disrupting radical networks, deny radical networks their fi nancial resources, foster madrassa and mosque reform, and expand economic opportunities, particularly for the young.

Politically, the United States could support secular and moderate Muslim organizations that are working for democracy and human rights, encourage other Islamic groups to participate in the democratic political process, and engage international Muslim organizations in re-sponding to humanitarian crises.

Militarily, the United States could rebuild close military ties with key countries, notably Pakistan and Indone-sia, two of the most important countries in the Mus-lim world. The United States also needs to assert a different type of military presence in sensitive regions, reducing U.S. visibility as an “occupying power” and increasing its capabilities in areas such as civil affairs (offering medical assistance) and cultural intelligence (deploying more linguists and regional specialists).

In all of its dealings with the Muslim world, the United States should demonstrate that its efforts are in-tended not to strengthen authoritarian or oppressive regimes but rather to promote democratic change. Fundamental to such efforts is differentiating among the Muslim religious and political currents according to several criteria, such as overarching ideology, politi-cal and legal orientation, preferred form of govern-ment, attitude toward human rights, social agenda, links to terrorism, and propensity for violence. Based on these distinctions, U.S. policymakers can choose suitable partners for promoting democratic change in the Muslim world.

Related Reading

“A Chance to Overcome Religious Divisions,” Th e San Diego Union-Tribune, May 27,

2004, Rollie Lal.

Civil Democratic Islam: Partners, Resources, and Strategies, 2003, Cheryl Benard, MR-

1716-CMEPP.

“French Tussle over Muslim Head Scarf Is Positive Push for Women’s Rights,” Christian Science Monitor, January 5, 2004, Cheryl Benard.

Th e Muslim World After 9/11, 2004, Angel M. Rabasa, Cheryl Benard, Peter Chalk, C.

Christine Fair, Th eodore Karasik, Rollie Lal, Ian Lesser, David Th aler, MG-246-AF.

From Regional Studies to Religio-Political Studies


The Ye ar in R ev iewRAND’s mission calls for us to communicate our research to key decisionmakers and the public.

Each year, in addition to the numerous briefi ngs and other research products, we publish hundreds

of books, reports, and articles to enrich and shape the public debate about major issues of

importance. Regular updates on our projects and results are posted at www.rand.org.

CHILD POLICY

Selected Publications“Acceptability of Asking Parents of Traumatized Children About the Children’s Symptoms,” Psychiatric Services, Vol. 55, No. 8 [Datapoints], August 2004, p. 866, K. L. Dean, B. D. Stein, L. H. Jaycox, S. H. Kataoka, M. Wong.

“Access and Quality in Child Health Services: Voltage Drops Whether Access Is Ap-proached Incrementally or Comprehensively, Children Will Not Fully Realize the Benefi ts Until Quality Is Addressed,” Health Affairs, Vol. 23, No. 5, September/October 2004, pp. 77–87, P. J. Chung, M. A. Schuster.

Are L.A.’s Children Ready for School? San-draluz Lara-Cinisomo, Anne R. Pebley, Mary E. Vaiana, Elizabeth Maggio, MG-145-FFLA.

“Childhood Overweight and Academic Performance: National Study of Kindergart-ners and First-Graders,” Obesity Research, Vol. 12, No. 1, January 2004, pp. 58–68, Ashlesha Datar, Roland Sturm, Jennifer L. Magnabosco.

“Indirect vs. Direct Hospital Quality Indica-tors for Very Low-Birth-Weight Infants,” Journal of the American Medical Associa-tion, Vol. 291, No. 2, January 14, 2004, pp. 202–209, J. A. Rogowski, J. D. Horbar, D. O. Staiger, M. Kenny, J. Carpenter, J. Geppert.

“Measuring Health Status and Quality of Life for U.S. Children: Relationship to Race, Ethnicity, and Income Status,” Ambulatory Pediatrics, Vol. 4, No. 4, July/August 2004, pp. 377–386, L. M. Olson, M. Lara, M. Pat Frintner.

“Physical Education in Elementary School and Body Mass Index: Evidence from the Early Childhood Longitudinal Study,” American Journal of Public Health, Vol. 94, No. 9, September 2004, pp. 1501–1506, A. Datar, R. Sturm.

“Watching Sex on TV Predicts Adolescent Initiation of Sexual Behavior,” Pediatrics [Electronic], Vol. 114, No. 3, September 2004, pp. e280–e289, R. L. Collins, M. N. Elliott, S. H. Berry, D. E. Kanouse, D. Kunkel, S. B. Hunter, A. Miu.

2004 MilestonesAs part of its Initiative for Middle East Youth, the RAND Center for Middle East Public Policy (CMEPP) helped develop a specially adapted version of Sesame Street to be shown in schools and other settings in Afghanistan.

CIVIL JUSTICE

Selected PublicationsAssessment of 24-Hour Care Options for California, Donna O. Farley, Michael Green-berg, Christopher Nelson, Seth Seabury, MG-280-ICJ.

Capping Non-Economic Awards in Medical Malpractice Trials: California Jury Verdicts Under MICRA, Nicholas M. Pace, Daniela Golinelli, Laura Zakaras, MG-234-ICJ.

Compensation for Losses from the 9/11 Attacks, Lloyd Dixon, Rachel Kaganoff Stern, MG-264-ICJ.

“Forty Years of Civil Jury Verdicts,” Journal of Empirical Legal Studies, Vol. 1, No. 1, March 2004, pp. 1–25, Seth A. Seabury, Nicholas M. Pace, Robert T. Reville.

Issues and Options for Government Intervention in the Market for Terrorism Insurance, Lloyd Dixon, John Arlington, Stephen Carroll, Darius Lakdawalla, Robert Reville, David Adamson, OP-135-ICJ.

2004 MilestonesA RAND Institute for Civil Justice (ICJ) evaluation of California’s permanent disability rating system led to signifi cant reform of California’s workers’ compensa-tion system.

The ICJ launched the Kauffman-RAND Center for the Study of Small Business and Regulation, which will study the way legal and regulatory policymaking affects small businesses and entrepreneurship. The Center will endeavor to assess and improve legal and regulatory policymaking as it relates specifi cally to small businesses and entrepreneurship in a wide range of settings, including corporate gover-nance, employment law, consumer law, securities regulation, and business ethics.

RAND and LRN, the nation’s leading provider of legal, compliance, ethics management, and corporate governance services, established the LRN-RAND Center for Corporate Ethics, Law and Governance to study ways businesses can best conduct operations ethically, legally, and profi tably at the same time.

r a n d a n n ua l r e p or t r a n d a n n ua l r e p or t

http://www.rand.org/pdfrd/publications/MG/MG146/



EDUCATION

Selected PublicationsAchieving State and National Literacy Goals, a Long Uphill Road: A Report to Carnegie Corporation of New York, Jennifer Sloan Mc-Combs, Sheila Nataraj Kirby, Heather Barney, Hilary Darilek, Scarlett Magee, TR-180-EDU.

Arts Education Partnerships: Lessons Learned from One School District’s Experience, Melissa K. Rowe, Laura Werber Castaneda, Tessa Kaganoff, Abby Robyn, MG-222-EDU.

Challenges and Potential of a Collaborative Approach to Education Reform, Susan J. Bodilly, Joan Chun, Gina Ikemoto, Sue Stockly, MG-216-FF.

Efforts to Improve the Quality of Vocational Education in Secondary Schools: Impact of Federal and State Policies, Cathleen Stasz, Susan J. Bodilly, MR-1655-USDE.

Expanding the Reach of Education Reforms: Perspectives from Leaders in the Scale-Up of Educational Interventions, Thomas K. Glen-nan, Jr., Susan J. Bodilly, Jolene R. Galegher, Kerri A. Kerr, MG-248-FF.

External Audiences for Test-Based Account-ability: The Perspectives of Journalists and Foundations, Laura Hamilton, Brian Stecher, OP-111-FF.

Focus on the Wonder Years: Challenges Facing the American Middle School, Jaana Juvonen, Vi-Nhuan Le, Tessa Kaganoff, Catherine Augustine, Louay Constant, MG-139-EDU.

Organizational Improvement and Account-ability: Lessons for Education from Other Sectors, Brian Stecher, Sheila Nataraj Kirby, eds., MG-136-WFHF.

Reforming Teacher Education: A First-Year Prog-ress Report on Teachers for a New Era, Sheila Nataraj Kirby, Jennifer Sloan McCombs, Scott Naftel, Heather Barney, Hilary Darilek, Frederick Doolittle, Joseph Cordes, TR-149-EDU.

A Review of the Research Literature on Teacher Recruitment and Retention, Cas-sandra Guarino, Lucrecia Santibañez, Glenn Daley, Dominic Brewer, TR-164-EDU.

When Computers Go to School: How Kent School Implements Information Technology to Enrich Teaching and Learning, Phillip D. Devin, TR-126-EDU.

2004 MilestonesRAND, Educational Testing Service, and CTB/McGraw-Hill have cooperated with the Evaluation Institute to develop the world’s fi rst standardized tests in Arabic.

Implementation of many education reforms based on RAND recommendations began at Qatar University, which has embarked on a comprehensive reform effort to strengthen its key governance and management processes.

The RAND Council for Aid to Education released the results of its annual Voluntary Support of Education survey, showing that contributions to colleges and universi-ties in the United States remained stable in 2003.

ENERGY AND ENVIRONMENT

Selected Publications“Demand-Side Management and Energy Effi ciency in the United States,” Energy Jour-nal, Vol. 25, No. 1, 2004, David Loughran, Jonathan Kulich.

Estimating the Benefi ts of the GridWise Initiative: Phase 1 Report, Walter S. Baer, Brent Fulton, Sergej Mahnovski, TR-160-PNNL.

The Future of Genetically Modifi ed Crops: Lessons from the Green Revolution, Felicia Wu, William P. Butz, MG-161-RC.

Long Range Energy R&D: A Methodology for Program Development and Evaluation, James T. Bartis, TR-112-NETL.

HEALTH AND HEALTH CARE

Selected Publications“Are the Young Becoming More Disabled? Rates of Disability Appear to Be on the Rise Among People Ages Eighteen to Fifty-Nine, Fueled by a Growing Obesity Epidemic,” Health Affairs, Vol. 23, No. 1, January/February 2004, pp. 168–176, D. N. Lakdawalla, J. Bhattacharya, D. P. Goldman.

“Comparison of Quality of Care for Patients in the Veterans Health Administration and Patients in a National Sample,” Annals of Internal Medicine, Vol. 141, No. 12, December 21, 2004, pp. 938–945, Steven M. Asch, Eliza-beth A. McGlynn, Mary M. Hogan, Rodney A. Hayward, Paul Shekelle, Lisa Rubenstein, Joan Keesey, John Adams, Eve A. Kerr.

“Detection and Management of Falls and Instability in Vulnerable Elders by Community Physicians,” Journal of the American Geriatrics Society, Vol. 52, No. 9, September 2004, pp. 1527–1531, Laurence Z. Rubenstein, David H. Solomon, Carol P. Roth, Roy T. Young, Paul G. Shekelle, John T. Chang, Catherine H. MacLean, Caren J. Kamberg, Debra Saliba, Neil S. Wenger.

“Differences in Medicare Expenditures During the Last Three Years of Life,” Journal of General Internal Medicine, Vol. 19, No. 2, February 19, 2004, pp. 127–135, L. R. Shugarman, D. E. Campbell, C. E. Bird, J. Gabel, T. A. Louis, J. Lynn.

“Disputes Over Coverage of Emergency Department Services: A Study of Two Health Maintenance Organizations,” Annals of Emergency Medicine, Vol. 32, No. 2, February 2004, pp. 155–162, C. R. Gresenz, D. M. Studdert.

“Do the Effects of Quality Improvement for Depression Care Differ for Men and Women? Results of a Group-Level Randomized Controlled Trial,” Medical Care, Vol. 42, No. 12, December 2004, pp. 1186–1193, C. D. Sherbourne, R. Weiss, N. Duan, C. E. Bird, K. B. Wells.

“The Economics of Physical Activity: Societal Trends and Rationales for Interventions,” Ameri-can Journal of Preventive Medicine, Vol. 27, No. 3, October 2004, pp. 126–135, Roland Sturm.

Evaluation of the Low Back Pain Practice Guideline Implementation in the Army Medi-cal Department, Donna O. Farley, Georges Vernez, Will Nicholas, Elaine S. Quiter, George J. Dydek, Suzanne Pieklik, Shan Cretin, MR-1758-A.

“Five-Year Impact of Quality Improvement for Depression: Results of a Group-Level Randomized Controlled Trial,” Archives of General Psychiatry, Vol. 61, No. 4, April 2004, pp. 378–386, K. Wells, C. Sherbourne, M. Schoenbaum, S. Ettner, N. Duan, J. Miranda, J. Unützer, L. Rubenstein.

t h e y e a r i n r e v i e w




“Increasing Obesity Rates and Disability Trends: If It Continues at Its Current Rate, Rising Obesity Could Wipe Out Recent Improvements in Disability Among Older Americans,” Health Affairs, Vol. 23, No. 2, March/April 2004, pp. 199–205, Roland Sturm, Jeanne S. Ringel, Tatiana Andreyeva.

“Medicare Program Costs Associated with Hospice Use,” Annals of Internal Medicine, Vol. 140, No. 4, February 17, 2004, pp. 269–277, D. E. Campbell, J. Lynn, T. A. Louis, L. R. Shugarman.

“Pharmacy Benefi ts and the Use of Drugs by the Chronically Ill,” Journal of the American Medical Association, Vol. 291, No. 19, May 18, 2004, pp. 2344–2350, D. P. Goldman, G. F. Joyce, J. J. Escarce, J. E. Pace, M. D. Solomon, M. Laouri, P. B. Landsman, S. M. Teutsch.

“Profi ling the Quality of Care in Twelve Communities: Results from the CQI Study,” Health Affairs, Vol. 23, No. 3, May/June 2004, pp. 247–256, E. A. Kerr, E. A. McGlynn, J. Adams, J. Keesey, S. M. Asch.

Public Health Preparedness in California: Lessons Learned from Seven Health Jurisdictions, Nicole Lurie, R. Burciaga Valdez, Jeffrey Wasserman, Michael Stoto, Sarah Myers, Roger Molander, Steven Asch, B. David Mussington, Vanessa Solomon, TR-181.

“The Quality of Pharmacologic Care for Vul-nerable Older Patients,” Annals of Internal Medicine, Vol. 140, No. 8, May 4, 2004, pp. 714–720, T. Higashi, P. G. Shekelle, D. H. Solomon, E. L. Knight, C. Roth, J. T. Chang, C. J. Kamberg, C. H. MacLean, R. T. Young, J. Adams, D. B. Reuben, J. Avorn, N. S. Wenger.

“Suburban Sprawl and Physical and Mental Health,” Public Health, Vol. 118, No. 7, October 2004, pp. 488–496, Roland Sturm, Deborah A. Cohen.

2004 MilestonesRAND Health interviewed a diverse sample of individuals from Capitol Hill and from the Brentwood postal facility, including Hill staffers who were either directly or potentially indirectly exposed to the letter containing anthrax that was sent to Senator Tom Daschle’s offi ce in 2001. The results

highlighted the need to provide clear, accurate information on an ongoing basis during a public health emergency and to integrate private physicians into the public health response.

Humana Inc. became the fi rst health benefi ts company to test the Quality Assessment Tools—software that scans and analyzes health claims data—developed by RAND Health to ascertain whether consumers are receiving appropriate care.

RAND Health began the third phase of its ACOVE study (Assessing Care of Vulner-able Elders), which will expand upon the quality-of-care measurements developed by RAND in conjunction with Pfi zer.

INTERNATIONAL AFFAIRS

Selected PublicationsAid During Confl ict: Interaction Between Military and Civilian Assistance Providers in Afghanistan, September 2001–June 2002, Olga Oliker, Richard Kauzlarich, James Dobbins, Kurt W. Basseuner, Donald L. Sampler, John G. McGinn, Michael J. Dziedzic, Adam Grissom, Bruce Pirnie, Nora Bensahel, A. Istar Guven, MG-212-OSD.

Ambivalent Allies? A Study of South Korean Attitudes Toward the United States, Eric V. Larson, Norman D. Levin, Seonhae Baik, Bogdan Savych, TR-141-SRF.

Cuba After Castro: Legacies, Challenges, and Impediments, Edward Gonzalez, Kevin F. McCarthy, MG-111-RC.

Do the Ties Still Bind? The U.S.-ROK Security Relationship After 9/11, Norman D. Levin, MG-115-AF/KF.

The Future Security Environment in the Middle East: Confl ict, Stability, and Political Change, Nora Bensahel, Daniel L. Byman, eds., MR-1640-AF.

Insurgency and Counterinsurgency in Iraq, Bruce Hoffman, OP-127-IPC/CMEPP.

The Lessons of the Asian and Latin American Financial Crises for Chinese Bond Markets, William H. Overholt, OP-117-CAPP.

The Muslim World After 9/11, Angel M. Rabasa, Cheryl Benard, Peter Chalk, C. Christine Fair, Theodore Karasik, Rollie Lal, Ian Lesser, David Thaler, MG-246-AF.

Must All Join? America, 1788; Europe, 2004, James Thomson, OP-136-RC.

Public Diplomacy: How to Think About and Improve It, Charles Wolf, Jr., Brian Rosen, OP-134-RC.

Shanghaied? The Economic and Political Implications of the Flow of Information Technology and Investment Across the Taiwan Strait, Michael S. Chase, Kevin L. Pollpeter, James C. Mulvenon, TR-133.

The United States, Europe, and the Wider Middle East, Shahram Chubin, Bruce Hoffman, William Rosenau, CF-210-GCSP/CMEPP.

U.S.-China Security Management: Assessing the Military-to-Military Relationship, Kevin Pollpeter, MG-143-AF.

TestimonyAnalyzing China’s Defense Industries and the Implications for Chinese Military Modernization, Evan S. Medeiros, CT-217.

A Fresh Start for Haiti? Charting Future U.S. Haitian Relations, James Dobbins, CT-219.

Hong Kong at the Crossroads, William H. Overholt, CT-228.

The Hong Kong Legislative Election of September 12, 2004: Assessment and Implications, William H. Overholt, CT-232-1.

U.S. Policy Toward Southeast Europe: Unfi nished Business in the Balkans, James Dobbins, CT-230-1.

2004 MilestonesRAND projects in Qatar now include work on information technology, a national health care strategy, the environment, pub-lic infrastructure, quality-of-life monitoring, effective governance, long-range planning, quality improvement and innovation, and military strategy and operations.

RAND continues its analytical support to the Iraqi Reconstruction Management Offi ce, an element of the U.S. Embassy in Baghdad. On-the-ground support included participa-tion in the development of the national counterterrorism strategy, disarmament and integration of the military into the Iraq police, and building the defense ministry’s capabilities.





Based on recommendations made by RAND, the Bush administration created a new interagency unit, housed in the State Department, dedicated to providing institutional continuity to future American nation-building operations.

NATIONAL SECURITY

Selected PublicationsAir Force Procurement Workforce Trans-formation: Lessons from the Commercial Sector, John Ausink, Laura H. Baldwin, Christopher Paul, MG-214-AF.

Aligning the Stars: Improvements to General and Flag Offi cer Management, Margaret C. Harrell, Harry J. Thie, Peter Schirmer, Kevin Brancato, MR-1712-OSD.

Assuring Access in Key Strategic Regions: Toward a Long-Term Strategy, Eric V. Larson, Derek Eaton, Paul Elrick, Theodore Karasik, Robert Klein, Sherrill Lingel, Brian Nich-iporuk, Robert Uy, John Zavadil, MG-112-A.

Base Realignment and Closure (BRAC) and Organizational Restructuring in the DoD: Implications for Education and Training Infrastructure, Dina G. Levy, Joy S. Moini, Tessa Kaganoff, Edward G. Keating, Cath-erine H. Augustine, Tora K. Bikson, Kristin Leuschner, Susan M. Gates, MG-153-OSD.

Communications Networks to Support Integrated Intelligence, Surveillance, Recon-naissance, and Strike Operation, Elham Ghashghai, TR-159-AF.

The Effects of Equipment Age on Mission-Critical Failure Rates: A Study of M1 Tanks, Eric Peltz, Lisa Colabella, Brian Williams, Patricia M. Boren, MR-1789-A.

Examining the Army’s Future Warrior: Force-on-Force Simulation of Candidate Technolo-gies, Randall Steeb, John Matsumura, Paul Steinberg, Tom Herbert, Phyllis Kantar, Patrick Bogue, MG-140-A.

Expanding Enlisted Lateral Entry: Options and Feasibility, Dina Levy, Joy Moini, Jennifer Sharp, Harry J. Thie, MG-134-OSD.

Information Sharing Among Military Headquarters: The Effects on Decision-making, Walter L. Perry, James Moffat, MG-226-UK.

Intern Programs as a Human Resources Management Tool for the Department of Defense, Susan M. Gates, Christopher Paul, MG-138-OSD.

Lessons from the North: Canada’s Privatiza-tion of Military Ammunition Production, W. Michael Hix, Bruce Held, Ellen M. Pint, MG-169-OSD.

Looking to the Future: What Does Trans-formation Mean for Military Manpower and Personnel Policy? Beth Asch, James R. Hosek, OP-108-OSD.

Modeling the Departure of Military Pilots from the Services, Marc N. Elliott, Kanika Kapur, Carole Roan Gresenz, MR-1327-OSD.

Network-Based Operations for the Swedish Defence Forces: An Assessment Methodology, Walter Perry, John Gordon IV, Michael Boito, Gina Kingston, TR-119-FOI.

Organizational Concepts for Purchasing and Supply Management Implementation, Lynne M. Leftwich, James A. Leftwich, Nancy Y. Moore, C. Robert Roll, Jr., MG-116-AF.

Past and Future: Insights for Reserve Component Use, Harry J. Thie, Raymond E. Conley, Henry A. Leonard, Megan Abbott, Eric V. Larson, K. Scott McMahon, Michael G. Shanley, Ronald E. Sortor, William Taylor, Stephen Dalzell, Roland J. Yardley, TR-140-OSD.

Policy and Methodology to Incorporate War-time Plans into Total U.S. Air Force Manpower Requirements, Manuel J. Carrillo, Hugh G. Massey, Joseph G. Bolten, TR-144-AF.

Policy Options for Military Recruiting in the College Market: Results from a National Sur-vey, Beth Asch, Can Du, Matthias Schonlau, MG-105-OSD.

Portfolio Analysis and Management for Naval Research and Development, Richard Silberglitt, Lance Sherry, Carolyn Wong, Michael Tseng, Emile Ettedgui, Aaron Watts, Geoffrey Stothard, MG-271-NAVY.

Reporters on the Battlefi eld: The Embedded Press System in Historical Context, Christo-pher Paul, James J. Kim, MG-200-RC.

Stretching the Network: Using Transformed Forces in Demanding Contingencies Other Than War, David C. Gompert, Hans Pung, Kevin A. O’Brien, Jeffrey Peterson, OP-109-RC.

Supporting Air and Space Expeditionary Forces: Analysis of Maintenance Forward Support Location Operations, Amanda Geller, David George, Robert S. Tripp, Mahyar A. Amouzegar, C. Robert Roll, Jr., MG-151-AF.

Supporting Air and Space Expeditionary Forces: Lessons from Operation Enduring Freedom, Robert S. Tripp, Kristin F. Lynch, John G. Drew, Edward W. Chan, MR-1819-AF.

Supporting Air and Space Expeditionary Forces: Lessons from Operation Iraqi Freedom, Kristin F. Lynch, John G. Drew, Robert S. Tripp, C. Robert Roll, Jr., MG-193-AF.

Supporting Air and Space Expeditionary Forces: A Methodology for Determining Air Force Deployment Requirements, Don Snyder, Patrick Mills, MG-176-AF.

Survivability Options for Maneuver and Transport Aircraft: Analytic Support to the Army Science Board, John Matsumura, Randall Steeb, Blake Crowe, Nicholas Dienna, Yuna Huh, Gary Quintero, William Sollfrey, MG-123-A.

Test and Evaluation Trends and Costs for Aircraft and Guided Weapons, Bernard Fox, Michael Boito, John C. Graser, Obaid Younossi, MG-109-AF.

Unexploded Ordnance: A Critical Review of Risk Assessment Methods, Jacque-line McDonald, Debra Knopman, J.R. Lockwood, Gary Cecchine, Henry H. Willis, MR-1674-A.

U.S. Army Security Cooperation: Toward Improved Planning and Management, Thomas S. Szayna, Adam Grissom, Jef-ferson P. Marquis, Thomas-Durell Young, Brian Rosen, Yuna Huh, MG-165-A.

The U.S. Coast Guard’s Deepwater Force Modernization Plan: Can It Be Acceler-ated? Will It Meet Changing Security Needs? John Birkler, Brien Alkire, Robert Button, Gordon Lee, Raj Raman, John Schank, Carl Stephens, MG-114-USCG.





TestimonyDeveloping and Using General and Flag Offi cers, Harry J. Thie, CT-221.

Deployment, Retention, and Compensation, James Hosek, CT-222.

Toward an Expeditionary Army: New Options for Combatant Commanders, Eric Peltz, CT-223.

2004 MilestonesRAND Project AIR FORCE research helped the Air Force explore its options for replacing the AC-130 gunship platform. The next-generation gunship needs to be much more survivable; to operate over longer distances and over remote, hostile areas; and to be able to attack stationary or moving ground targets with precision. The Air Force asked PAF to conduct an analysis of alternatives (AoA) to identify the most cost-effective options for providing these capabilities.

A study conducted in the RAND National Se-curity Research Division has played a central role in the National Security Agency’s sweep-ing efforts to reshape its business practices.

The RAND Arroyo Center analyzed Operation Iraqi Freedom logistics support and identifi ed the problem areas, resulting in much faster, more reliable service for units in Iraq and reduced burdens on the forces in theater.

POPULATION AND AGING

Selected PublicationsAssimilating Immigrants: Why America Can and France Cannot, Robert A. Levine, OP-132-RC.

“Changes in American Opinion About Family Planning,” Studies in Family Planning, Vol. 35, No. 3, September 2004, Clifford A. Grammich, Julie DaVanzo, Kate Stewart.

“Incentives and Exit Routes to Retirement in the Netherlands,” in Jonathan Gruber and David A. Wise (eds.), Social Security and Retirement Around the World: Micro-Estimation, The University of Chicago Press, pp. 461–498, A. Kapteyn and K. de Vos.

Indonesian Living Standards Before and After the Financial Crisis: Evidence from the Indonesia Family Life Survey, John Strauss, Kathleen Beegle, Agus Dwiyanto,

Yulia Herawati, Daan Pattinasarany, Elan Satriawan, Bondan Sikoki, Sukamdi, Firman Witoelar, MG-137.

An Investigation of the Factors Infl uencing Breastfeeding Patterns, Alison Jacknowitz, RGSD-182.

Low Fertility and Population Ageing: Causes, Consequences, and Policy Options, Jonathan Grant, Stijn Hoorens, Suja Sivadasan, Mirjam van het Loo, Julie DaVanzo, Lauren Hale, Shawna Gibson, William Butz, MG-206-EC.

“The Myth of Worksharing,” Labour Eco-nomics, Vol. 11, pp. 293–313, A. Kapteyn, A. Kalwij, A. Zaidi.

“Self-Employment Among Older U.S. Work-ers,” Monthly Labor Review, July 2004, Lynn A. Karoly, Julie Zissimopoulos.

“Self-Employment and the 50+ Population,” Lynn A. Karoly, Julie Zissimopoulos, AARP Public Policy Institute Issue Paper, March 2004.

“Trends in Socioeconomic Inequalities in Mortality in Developing Countries: The Case of Child Survival in São Paulo, Brazil,” Demography, Vol. 41, No. 3, August 2004, Narayan Sastry.

The 21st Century at Work: Forces Shaping the Future Workforce and Workplace in the United States, Lynn A. Karoly, Constantijn W. A. Panis, MG-164-DOL.

“Urbanization, Development, and Under-Five Mortality Differentials by Place of Residence in São Paulo, Brazil, 1970–1991,” Demographic Research, Special Collection 2, Article 14, April 2004, Narayan Sastry.

2004 MilestonesRAND Labor and Population’s Center for the Study of Aging received multimillion-dollar funding ($7.3 million) from the National Institute on Aging to do research on the economic and health determinants of retirement.

Los Angeles Family and Neighborhood Survey, a project within RAND Labor and Population, began wave 2 (Socioeconomic and Ethnic Disparities in Adult Health) with funding from the National Institute on Aging and the National Institute on Child Health and Human Development ($10.6 million combined).

PUBLIC SAFETY

Selected Publications“Analysis of Oakland Stop and Search Data,” chapter 9 in Promoting Cooperative Strategies to Reduce Racial Profi ling: A Technical Guide, Oakland Police Department, April 2004.

The Benefi ts of Positive Passenger Profi ling on Baggage Screening Requirements, Rus-sell Shaver, Michael Kennedy, DB-411-RC.

Emergency Responder Injuries and Fatalities: An Analysis of Surveillance Data, Ari N. Houser, Brian A. Jackson, James T. Bartis, D. J. Peterson, TR-100-NIOSH.

Evaluating the Security of the Global Containerized Supply Chain, Henry H. Willis, David S. Ortiz, TR-214-RC.

How Much Is Enough? Sizing the Deploy-ment of Baggage Screening Equipment by Considering the Economic Cost of Passenger Delays, Russell Shaver, Michael Kennedy, Chad Shirley, Paul Dreyer, DB-410-RC.

Near-Term Options for Improving Security at Los Angeles International Airport, Donald Stevens, Terry Schell, Thomas Hamilton, Richard Mesic, Michael Scott Brown, Edward Wei-Min Chan, Mel Eisman, Eric V. Larson, Marvin Schaffer, Bruce Newsome, John Gibson, Elwyn Harris, DB-468-1-LAWA.

Protecting Emergency Responders, Volume 3: Safety Management in Disaster and Terrorism Response, Brian A. Jackson, John C. Baker, M. Susan Ridgely, James T. Bartis, Herbert I. Linn, MG-170-NIOSH.

2004 MilestonesRAND Infrastructure, Safety, and Environ-ment signed a memorandum of understand-ing with Northwestern University Center for Public Safety to collaboratively develop research pertaining to law enforcement and transportation safety.

SCIENCE AND TECHNOLOGY

Selected PublicationsAttracting the Best: How the Military Com-petes for Information Technology Personnel, James R. Hosek, Michael G. Mattock, C. Christine Fair, Jennifer Kavanagh, Jennifer Sharp, Mark Totten, MG-108-OSD.





Challenges in Virtual Collaboration: Videoconferencing, Audioconferencing, and Computer-Mediated Communications, Lynne Wainfan, Paul K. Davis, MG-273.

Collecting the Dots: Problem Formulation and Solution Elements, Martin C. Libicki, Shari Lawrence Pfl eeger, OP-103-RC.

Exploring Information Superiority: A Methodology for Measuring the Quality of Information and Its Impact on Shared Awareness, Walter Perry, David Signori, John Boon, MR-1467-OSD.

Framework for Quantifying Uncertainty in Electric Ship Design, Isaac Porche, Henry Willis, Martin Ruszkowski, DB-407-ONR.

Future Army Bandwidth Needs and Capabilities, Leland Joe, Isaac Porche III, MG-156-A.

High-Technology Manufacturing and U.S. Competitiveness, Charles Kelley, Mark Wang, Gordon Bitko, Michael Chase, Aaron Kofner, Julia Lowell, James Mulvenon, David Ortiz, Kevin Pollpeter, TR-136-OSTP.

Understanding the Insider Threat: Proceedings of a March 2004 Workshop, Richard C. Brackney, Robert H. Anderson, CF-196-ARDA.

The U.S. Scientifi c and Technical Workforce: Improving Data for Decisionmaking, Terrence K. Kelly, William P. Butz, Stephen Carroll, David M. Adamson, Gabrielle Bloom, eds., CF-194-OSTP/SF.

Vital Assets: Federal Investment in Research and Development at the Nation’s Universi-ties and Colleges, Donna Fossum, Lawrence S. Painter, Elisa Eiseman, Emile Ettedgui, David M. Adamson, MR-1824-NSF.

Will the Scientifi c and Technology Work-force Meet the Requirements of the Federal Government? William P. Butz, Terrence K. Kelly, David M. Adamson, Gabrielle A. Bloom, Donna Fossum, Mihal E. Gross, MG-118-OSTP.

Wind Tunnel and Propulsion Test Facilities: An Assessment of NASA’s Capabilities to Serve National Needs, Philip S. Antón, Eugene C. Gritton, Richard Mesic, Paul Steinberg, MG-178-NASA/OSD.

TestimonyIdentifying Federally Funded Research and Development on Information Technology, Donna Fossum, CT-229-1.

Strengthening Research & Development for Wind Hazard Mitigation, Charles Meade, CT-215.

2004 MilestonesResearchers from RAND Europe have completed a yearlong “foresight” project for the UK government to explore the application and implications of next-generation information technologies in such areas as identity and authenticity, surveillance, system robustness, security, and information assurance.

SUBSTANCE ABUSE

Selected Publications“Antecedents and Outcomes of Marijuana Use Initiation During Adolescence,” Preven-tive Medicine, Vol. 39, No. 5, November 2004, pp. 976–984, P. L. Ellickson, J. S. Tucker, D. J. Klein, H. Saner.

Cannabis Policy, Implementation and Outcomes, Mirjam van het Loo, Stijn Hoo-rens, Christian van’t Hof, James P. Kahan, MR-1805-VWS.

“Developmental Trajectories of Cigarette Smoking and Their Correlates from Early Adolescence to Young Adulthood,” Journal of Consulting and Clinical Psychology, Vol. 72, No. 3, June 2004, pp. 400–410, M. Orlando, J. S. Tucker, P. L. Ellickson, D. J. Klein.

“Effectiveness of Community-Based Treat-ment for Substance-Abusing Adolescents: 12-Month Outcomes of Youths Entering Phoenix Academy or Alternative Probation Dispositions,” Psychology of Addictive Behaviors, Vol. 18, No. 3, September 2004, pp. 257–268, A. R. Morral, D. F. McCaffrey, G. Ridgeway.

“From Adolescence to Young Adulthood: Racial/Ethnic Disparities in Smoking,” American Journal of Public Health, Vol. 94, No. 2, February 2004, pp. 293–299, P. L. Ellickson, M. Orlando, J. S. Tucker, D. J. Klein.

Getting to Outcomes 2004: Promoting Ac-countability Through Methods and Tools for Planning, Implementation, and Evaluation, Matthew Chinman, Pamela Imm, Abraham Wandersman, TR-101-CDC.

“Marijuana Use from Adolescence to Young Adulthood: Multiple Developmental Tra-jectories and Their Associated Outcomes,” Health Psychology, Vol. 23, No. 3, May 2004, pp. 299–307, P. L. Ellickson, S. C. Martino, R. L. Collins.

“Sterile Syringe Access Conditions and Variations in HIV Risk Among Drug Injectors in Three Cities,” Addiction, Vol. 99, No. 9, September 2004, pp. 1136–1146, R. N. Bluthenthal, M. R. Malik, L. E. Grau, M. Singer, P. Marshall, R. Heimer for the Diffusion of Benefi t through Syringe Exchange Study Team.

Visies op Financiering van Ondersteuning bij Stoppen met roken [Perceptions on a Reimbursement Scheme for Quitting Smok-ing Support], Rebecca Hamer, Mirjam van het Loo, MR-1769-RE/CVZ.

TERRORISM & HOMELAND SECURITY

Selected PublicationsArmy Forces for Homeland Security, Lynn E. Davis, David E. Mosher, Richard R. Brennan, Michael D. Greenberg, K. Scott McMahon, Charles W. Yost, MG-221-A.

Confronting the “Enemy Within”: Security Intelligence, the Police, and Counterter-rorism in Four Democracies, Peter Chalk, William Rosenau, MG-100-RC.

Coordinating the War on Terrorism, Lynn E. Davis, Gregory F. Treverton, Daniel Byman, Sara Daly, William Rosenau, OP-110-RC.

The Counterterror Coalitions: Cooperation with Pakistan and India, C. Christine Fair, MG-141-AF.

The Dynamic Terrorist Threat: An Assess-ment of Group Motivations and Capabilities in a Changing World, Kim Cragin, Sara A. Daly, MR-1782-AF.

Gearing Up and Getting There: Improving Local Response to Chemical Terrorism, Brian K. Houghton, RGSD-181.





Hitting America’s Soft Underbelly: The Potential Threat of Deliberate Biological At-tacks Against the U.S. Agricultural and Food Industry, Peter Chalk, MG-135-OSD.

Mapping the Risks: Assessing the Homeland Security Implications of Publicly Available Geospatial Information, John C. Baker, Beth E. Lachman, David R. Frelinger, Kevin M. O’Connell, Alexander C. Hou, Michael S. Tseng, David Orletsky, Charles Yost, MG-142-NGA.

The Offi ce of Science and Technology Policy Blue Ribbon Panel on the Threat of Biologi-cal Terrorism Directed Against Livestock, Terrence K. Kelly, Peter Chalk, James Bonomo, John Parachini, Brian A. Jackson, Gary Cecchine, CF-193-OSTP.

Out of the Ordinary: Finding Hidden Threats by Analyzing Unusual Behavior, John Hollywood, Diane Snyder, Kenneth McKay, John Boon, MG-126-RC.

“Terrorism and Business Continuity,” Kevin O’Brien, David Claridge, RAND Europe, Janusian Security Risk Management, The Financial Times, May 2004.

Triage for Civil Support: Using Military Medi-cal Assets to Respond to Terrorist Attacks, Gary Cecchine, Michael A. Wermuth, Roger C. Molander, K. Scott McMahon, Jesse Mal-kin, Jennifer Brower, John D. Woodward, Donna F. Barbisch, MG-217-OSD.

Urban Battle Fields of South Asia: Lessons Learned from Sri Lanka, India, and Pakistan, C. Christine Fair, MG-210-A.

What You Should Do to Prepare for and Respond to Chemical, Radiological, Nuclear, and Biological Terrorist Attacks: Pocket Edition Survival Guide, Lynn E. Davis, Tom LaTourrette, David Mosher, Lois Davis, David Howell, MR-1731/2-SF.

When Terrorism Hits Home: How Prepared Are State and Local Law Enforcement? Lois M. Davis, K. Jack Riley, Greg Ridgeway, Jennifer Pace, Sarah K. Cotton, Paul S. Steinberg, Kelly Damphousse, Brent L. Smith, MG-104-MIPT.

TestimonyCombating Terrorism: The 9/11 Commission Recommendations and the National Strategies, John V. Parachini, CT-231-1.

Empowering State and Local Emergency Preparedness: Recommendations of the Advisory Panel to Assess Domestic Response Capabilities for Terrorism Involving Weapons of Mass Destruction, Michael A. Wermuth, CT-216.

The Effect of Terrorist Attacks in Spain on Transatlantic Cooperation in the War on Terror, James Dobbins, CT-225.

Improving Terrorism Warnings: The Homeland Security System, Michael A. Wermuth, CT-220.

Terrorism and Rail Security, Jack Riley, CT-224.

Terrorism and the Security of Public Surface Transportation, Brian Michael Jenkins, CT-226.

2004 MilestonesA survey conducted by RAND Europe, in conjunction with Janusian Security Risk Management, highlighted the growing nature of the terrorist threat to business.

RAND hosted a conference in Washington, D.C., entitled Three Years After: Next Steps in the War on Terror. The conference was attended by more than 200 people, including current administration offi cials, military offi cers, congressional staff, foreign embassy representatives, members of nongovernmental organizations (NGOs), the private sector, and the media. Par-ticipants heard six presentations by RAND researchers and a keynote address by the Deputy Secretary of Defense.

RAND National Security Research Division prepared a primer for law enforcement personnel that describes the logic behind suicide bombing, how others have coped, and the lessons they learned in the process.

TRANSPORTATION & INFRASTRUCTURE

Selected Publications“A Comparison of Car Ownership Models,” Transport Reviews, Vol. 24, No. 4, July 2004, pp. 379–408, G. De Jong, J. Fox, A. Daly, M. Pieters, R. Smit.

Europe, Competing: Market Prospects, Business Needs and Technological Trends for Virtual, Smart Organisations in Europe, Caroline Wagner, Maarten Botterman, Erik Feijen, Lars Schmidt, Steve Simmons, Christian van’t Hof, Jonas Svava Iverson, Leander van Laerhoven, MG-195-EC.

An Executive Perspective on Workforce Planning, Robert M. Emmerichs, Cheryl Y. Marcum, Albert A. Robbert, MR-1684/2-OSD.

Gifts of the Muse: Reframing the Debate About the Benefi ts of the Arts, Kevin F. McCarthy, Elizabeth H. Ondaatje, Laura Zakaras, Arthur Brooks, MG-218-WF.

Hoofdonderzoek naar de reistijdwaardering in het vervoer van goederen over de weg [Main Survey into the Value of Time in Freight Transport by Road], Gerard de Jong, Sjoerd Bakker, Marits Pieters, TR-110-AVV.

An Operational Process for Workforce Planning, Robert M. Emmerichs, Cheryl Y. Marcum, Albert A. Robbert, MR-1684/1-OSD.

Recent Large Service Acquisitions in the Department of Defense: Lessons for the Offi ce of the Secretary of Defense, Frank Camm, Irv Blickstein, Jose Venzor, MG-107-OSD.

Regionale luchthavens in Nederland: Een raamwerk voor het bepalen van het maatschappelijk belang van regionale luchthavens in Nederland [Regional Airports in the Netherlands: A Framework to Determine the Added Value of the Regional Airports in the Netherlands], Bouke Veld-man, Irma Graafl and-Essers, Abigail Lierens, Maarten van de Voort, TR-138-VROM.

The Shipbuilding and Force Structure Analysis Tool: A User’s Guide, Mark V. Arena, John F. Schank, Megan Abbott, MR-1743-NAVY.

State Arts Agencies 1965–2003: Whose Interests to Serve? Julia F. Lowell, MG-121-WF.

TestimonyStabilization and Reconstruction Civilian Management Act of 2004, James Dobbins, CT-218.





R A ND Sta ff

Social sciences

8%Arts and letters

5%

Behavioral sciences10%

Law andbusiness

12%

2%

15%9%

6%

9%

1%

3%

7%

13%

Computersciences

EconomicsEngineering

Life sciences

Mathoperations research,

and statistics

No degree

Physical sciences

Policy analysis

Political science and

International relations

The full- and part-time staff of more than 1,600 represent diversity in work experience;

political and ideological outlook; race, gender, and ethnicity; and academic training.

Most staff members work at RAND’s three principal U.S. locations: Santa Monica,

California; Arlington, Virginia; and Pittsburgh, Pennsylvania. Others operate from RAND

Europe in Leiden, the Netherlands; Berlin, Germany; and Cambridge, U.K.; from the

RAND-Qatar Policy Institute in Doha, Qatar; from the RAND Council for Aid to Education

in New York City; and from several smaller sites. Eighty-fi ve percent of the research staff

hold advanced degrees, with more than 50 percent having earned Ph.D.’s or M.D.’s.

To provide the varied expertise needed to fully address public policy issues, the staff’s

training refl ects the broad scope of disciplines shown in the fi gure.

r a nd s ta ff

President’s Awards recognize individuals whose work exemplifi es RAND’s two core values of quality and objectivity and who have also recently made exemplary contributions to the RAND community, through new business development or fund-raising initiatives, outstanding outreach and dissemination efforts, or effective participation in internal activities aimed at improving the effi ciency of our research environment. Made possible by the generosity of donors to the RAND Policy Circle, the awards provide staff with research time and support to pursue activities related to career development or exploratory research. These individuals are the fi scal year 2005 President’s Award recipients.

President’s Awards

Ross Anthony, senior economist and Director, Global Health, RAND Center for Domestic and International Health Security, for his intellectual leadership of RAND’s global health initiatives in Asia, the Middle East, and Latin America; as well as his leadership of RAND’s research on ensuring a stable, peaceful, and prosperous Palestinian state.

Bart Bennett, senior operations researcher, group manager for the Management Sciences Group, and Professor of Operations Research in the Pardee RAND Graduate School (PRGS), for his exemplary development of future generations of policy analysts, particularly in his service to PRGS, where he was voted Distinguished Teacher in 2004 and chaired the 2004 qualifying examination committee.

Sandra Berry, senior behavioral/social scientist; Senior Director, Survey Research Group; and Professor of Policy Analysis in the Pardee RAND Graduate School (PRGS), for her long track record of developing innovative analytic methods, her wide-ranging service to PRGS, and her multiple contributions to the planning process for RAND’s new headquarters campus.

Lynn Davis, senior political scientist, for her leadership of several complex research projects, especially the development of guidelines for individual preparedness for terrorist attacks with weapons of mass destruction; and for her skillful and tireless efforts to disseminate the fi ndings to policymakers, the media, and members of the general public.

James Dobbins, senior fellow and Director, International Security and Defense Policy Center, for leading a multiyear effort to analyze U.S. and U.N. experiences in peacekeeping and nation-building and apply those lessons to current challenges; and for making numerous other contributions to RAND’s research on international security.

Russell Glenn, senior policy researcher, for his growing body of research on strategies and tactics for effective urban operations, drawing on extensive fi eld work in Afghanistan and Iraq; and his contributions to the growth of RAND’s offi ce in Pittsburgh.

Charles Goldman, senior economist; Associate Director, RAND Education; and Professor of Economics in the Pardee RAND Graduate School (PRGS), for his steady leadership in helping to shape and conduct research on education reform in Qatar, his skill as a mentor of junior and other new researchers, and his multiple contributions to the PRGS.

Meg Matthius, Director of Events for Corporate Outreach, for her diligent planning and organizational skill in helping to build and strengthen RAND’s fund-raising and outreach efforts throughout the United States.

Andrew Rathmell, Director of RAND Europe’s Defense and Security research team, for his analytical contributions and exemplary service as Director of Policy Planning for the Coalition Provisional Authority in Baghdad, during which time he was awarded the Offi ce of the Secretary of Defense Medal for Valor for bravery under fi re, as well as his contributions to the growth of RAND Europe’s offi ce in Cambridge.

Lynn Helbling Sirinek, Associate Director, Business Development and Planning, Pittsburgh Offi ce, for her creative efforts to elevate RAND’s profi le and effectiveness in the Pittsburgh region by making new connections to the philanthropic, government, and business communities and devising new approaches for disseminating relevant RAND research fi ndings.

RAND researchers operate on a uniquely broad front, assisting public policymakers at all levels, private-sector leaders in many industries, and the public at large. In the photo below, Narayan Sastry, associate director of RAND Labor and Population, speaks with research group managers Jeff Marquis and Nell Griffi th Forge at the headquarters campus in Santa Monica. In the adjacent photo, Merit Award winners Dan Gonzales, Terri Tanielian, and Walt Perry gather in our Washington offi ce.


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L. Martin van der MandelePresident

Hugo BarbasChief Financial Offi cer

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Robert H. BrookVice President and Director

Paul KoegelAssociate Director

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Robert RevilleDirector

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RAND National Security Research DivisionNational Defense Research Institute

Eugene C. GrittonVice President and Director

Susan EveringhamDirector, International Programs

RAND Project AIR FORCE

Natalie CrawfordVice President and Director

Cynthia CookAssociate Director

Frederick S. Pardee RAND Graduate School

Robert KlitgaardDean

Greg TrevertonAssociate Dean for Research

Other Corporate Research Activities

RAND Frederick S. Pardee Center for Longer Range Global Policy and the Future Human Condition

James A. DewarDirector

RAND-Qatar Policy Institute

C. Richard NeuDirector

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Sandra BerrySenior Director

Julie BrownDirector

Washington Offi ce

Bruce HoffmanDirector

Pittsburgh Offi ce

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New York Offi ce

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Doha Offi ce

C. Richard NeuDirector

Management

r a nd s ta ff

Funds from donors have enabled RAND to make the following contributions to society.

• Earlier in RAND’s history, we used funds from the RAND endowment to model the AIDS epidemic before it emerged on the public health radar screen.

• RAND helped underwrite research on preventing drug abuse and crime and supported analyses that illuminated the trade-offs between various policies—for example, the reduction in drug use resulting from treatment or imprisonment of addicts.

• The RAND endowment supported analyses of the economic progress of immigrants and the savings behavior of the elderly—work that is informing current debates on Social Security reform.

• RAND-sponsored work that synthesized three decades of research on the quality of health care helped put quality on the national policy agenda and shaped the discussion about how quality can be measured and improved.

• RAND funds built a database that profi les terrorist activities and modes of operating. Investigators draw upon this unique resource after terrorist incidents. In the process of building it, we established terrorism as a scholarly discipline and trained many current experts.

In 2004, donors enabled RAND to investigate and propose solutions for issues ranging from ending world hunger to improving homeland security. Some of the most recent contributions include the following examples.

• Designing a concept for a new computer network and database that could help the U.S. intelligence community “connect the dots” by quickly identifying and interpreting the clues of a possible terrorist attack.

• Proposing a new approach to conceptualizing and conducting public diplomacy, convincing foreign societies, especially those in the Muslim world, that the ideals such as pluralism, freedom, women’s rights, and democracy are fundamental human values that will resonate in their own countries.

• Comparing the Green Revolution with the current genetically modifi ed crop movement to assess not only the technological differences in the crops and agricultural methods of these two movements, but more generally to examine the economic, cultural, and political factors that infl uence whether a new agricultural technology is adopted and accepted by farmers, consumers, and governments.

• Finding ways to eliminate certain passengers as airline security risks through a ”registered traveler” program, thus making it possible to concentrate on screening the baggage of other passengers. And then, calculating the minimum cost to the nation’s economy of providing baggage scanning at all U.S. airports without affecting security.

In vest ing in Ide asPhilanthropic donations are a true testament to RAND’s enduring value as a charitable organization.

As a nonprofi t organization, RAND funds groundbreaking research and centers of excellence through

the generous contributions of individual donors, foundations, and corporations. These critical funds

allow RAND to address pressing global public policy issues confronting the world. The support RAND

receives from all of its donors is critical to ensuring that RAND’s contributions to policy in the next

half-century of public service can match those of the past 50 years.

Philanthropic donations are a true

testament to R AND’s enduring value as

a charitable organization.


Bruce Karatz

Bruce Karatz serves as vice chairman on the Board of Trustees.

Bruce KaratzChairman and Chief Executive Offi cer, KB Home

Mr. Karatz is vice chairman of the RAND Corporation Board of Trustees. Mr. Karatz chaired the RAND Education Advisory Board for many years and more recently played a critical role in the development of RAND’s new headquarters, providing guidance, support, and expertise. “I know of no other organization with the depth and breadth of RAND’s research agenda,” says Mr. Karatz. “In a single year, RAND researchers can be looking at the quality of health care in America, reforming education in Qatar, adapting Sesame Street for the children in Afghanistan, and helping the Pentagon transform the military. I know my gift to RAND is a wise investment in improving my future, my children’s future, and the world’s future.”

“I know of no other organization with the depth and breadth of RAND’s research agenda. . . . I know my gift to RAND is a wise investment in improving my future, my children’s future, and the world’s future.”

Amy PascalChairman, Motion Picture Group, Sony Pictures Entertainment

Major donor Amy Pascal has been connected to RAND for many years. Since 1999, she has served on the RAND Corporation Board of Trustees, but her familiarity with RAND reaches back to her childhood. Her father, Anthony Pascal, was an economist at RAND for several decades.

“When many people hear ‘the RAND Corporation,’ they conjure up images of the Soviet Union or the Cold War. But that wasn’t the RAND that I grew up with,” says Ms. Pascal. “My father’s research was always on social welfare issues, such as education reform, housing, and racial discrimination. He was one of the fi rst economists to look at the cost of treating AIDS. That’s the RAND I know. So when I wanted to donate money to help make the world a better place, the fi rst organization that came to mind was one I know the best: RAND.”

”I feel so strongly about the contributions RAND has made to the world that I am helping to underwrite a documentary fi lm that will tell the RAND story.”

Amy Pascal’s generosity enabled her to dedicate an arbor in the new headquarters in honor of her father, Tony Pascal, a RAND researcher from 1958 to 1998.

“My father’s research was always onsocial welfare issues,such as education reform, housing, and racial discrimination. . . . Th at’s the RAND I know.”

Amy Pascal

Former Secretary of Defense Frank Carlucci began his third (nonconsecutive) term on the Board of Trustees in 2000; his fi rst was in 1983. Carlucci Investigator Award recipient Rollie Lal has been working at RAND since 2002.

Frank Carlucci

Frank CarlucciChairman Emeritus, The Carlyle Group

Mr. Carlucci chairs the RAND Center for Middle East Public Policy Advisory Board and serves on the RAND Corporation Board of Trustees. Through his generous donation, RAND created the Carlucci Investigator Award. “My intent is to provide seed money to explore research in areas that are unexplored. I recognize that RAND’s clients need to fi nd solutions to current problems but we also need to take full advantage of the creativity and insightfulness of our researchers. This grant should help them do that.”

Rollie Lal, the most recent winner of the Carlucci Investigator Award, explored the working mechanisms of organized crime in South Asia and its infl uence on terrorist networks. She began by looking solely at India, but soon her research branched out to include all of South Asia.

“My intent is to provide seed money

to explore research in areas that are

unexplored.... We need to take full

advantage of the creativity and

insightfulness of our researchers.”


PRESIDENT’S CIRCLE

By Invitation

Members of the Circle provide extraordinary service and financial support to RAND.

Hushang Ansary

Paul Baran

Peter S. Bing

Lloyd E. Cotsen

Thomas V. Jones

Charles N. Martin, Jr.

Frederick S. Pardee

Robin Renwick

James F. Rothenberg

Eleanor B. Sheldon

Joseph P. Sullivan

Ratan Tata

John L. Vogelstein

Paul A. Volcker

Alcoa Foundation

Allstate Insurance Company

The Chubb Corporation

ExxonMobil Corporation

The Ford Foundation

Kaiser Permanente

State Farm Insurance

VISIONARIES

$250,000 and above

Anonymous

Kip and Mary Ann Hagopian

Bruce Karatz

Paul H. and Nancy J. O’Neill

Ewing Marion Kauffman Foundation

PNC Foundation

Sony Pictures Entertainment

GUARDIANS

$100,000–$249,999

Lovida H. Coleman, Jr.

Ann and Tom Korologos

James E. and Sharon C. Rohr

ACE USA

Alfa Group

American Re-Insurance Company

The Dow Chemical Company

General Motors Corporation

The Hauser Foundation

KB Home

Charles G. Koch Charitable Foundation

Liberty Mutual Insurance Companies

Neotrade Partners

The Starr Foundation

Swiss Re America Holding Corp.

BENEFACTORS

$50,000–$99,999

Harold Brown

Frank C. and Marcia Carlucci

Po Chung

Arthur and Marylin Levitt

Peter Norton

Amy B. Pascal

Cindy and John S. Reed

Maxine and Eugene S. Rosenfeld

Association of Trial Lawyers of America

Farmers Insurance Group/Zurich U.S.

The Horace W. Goldsmith Foundation

Hartford Financial Services Group

Hepo Filters, LLC

International Council of Shopping Centers, Inc.

LRN

MassMutual Financial Group

The Merck Company Foundation

Pfizer Inc

The Real Estate Roundtable

The REBNY Foundation, Inc.

The SahanDaywi Foundation

LEADERS

$25,000–$49,999

Anonymous

Thomas Epley and Linnae Anderson

Robert Ferguson

Robert G. Funari

Ronald J. Gidwitz

Tone N. Grant

Karen Elliott House

Benny T. Hu

Ray R. Irani

Peter Kwok

Woong-Yeul Lee

Santiago Morales

Jane and Marc Nathanson

Younes Nazarian

Jane and Ronald L. Olson

Jean and Donald Tang

Stanley A. Weiss

Adamant Financial Corporation

AKB Probusiness Bank

Alcan, Inc.

Alcoa

Archer Daniels Midland Company

Association for the Defense of Investor’s Rights

Bank of Japan

Bank of Moscow

Base Element

J.P. Morgan Chase, Inc.

ChevronTexaco Corporation

City National Bank

Commercial Mortgage Securities Association

ESN Group

EvrazHolding

Far East National Bank

Honeywell

International Launch Services

Investment Group Renaissance Capital

A.T. Kearney AG

KidsOhio

Lazare Kaplan International, Inc.

Lianozova Dairy Plant

Los Angeles Times

MDM Bank

Moscow Telecommunications Corporation

The NAREIT Foundation

Neftyanoi Concern

Novolipetsky Metallurgical Plant

PacifiCare Health Systems, Inc.

Refco Group, Ltd.

The Rohatyn Group

Severstal

Siguler Guff & Company

Lucille Ellis Simon Foundation

SUAL-Holding

Chung Ying Tang Foundation

Donors

i n v e s t i ng i n i de a s

The Tata Group

The UPS Foundation

Vash Finansovy Popechitel, AO

Vimpelcom

Volga Prom Gaz

Warburg Pincus

PATRONS

$10,000–$24,999

Corporations and foundations make annual gifts to RAND at the Patrons level and above.

Robert and Patricia Curvin

Roy Doumani

Ken Senjong Hsui

Suzanne Nora Johnson

Caroline and Seymour F. Kaufman

Michael B. Kim

Janet Crown Peterson

Enzo Viscusi

Lois and Gail L. Warden

Susan J. Way-Smith and Douglas J. Smith

Aegon USA, Inc.

Baraboo Growth, LLC

The Boeing Company

Bristol-Myers Squibb Foundation, Inc.

Capital Research and Management Company

Charter One Bank

The Family Connection Partnership, Inc.

The Feinberg Group, LLP

IBS Group Holding

The Robert and Ardis James Foundation

Johnson & Johnson Family of Companies

Liz Claiborne, Inc.

The McGraw-Hill Companies

Metropolitan Life Foundation

National Association of Realtors

The Rosenkranz Foundation

The San Francisco Foundation

State Farm Companies Foundation

Toyota Motor Sales, USA, Inc.

ASSOCIATES

$5,000–$9,999

Anonymous

Odeh F. Aburdene

Victor K. Atkins

Louis L. Borick

Nadine and Edward M. Carson

George N. Chammas

Natalie W. Crawford

Maxwell E. Greenberg

Pedro J. Greer, Jr.

Palmer G. Jackson

Paul G. Kaminski

Iao Katagiri

Eve M. Kurtin

John H. O. La Gatta

Ben Mathis

Gertrude G. Michelson

Wilma C. Mundie

Paul D. Rheingold

Donald B. and Susan F. Rice

Stanley M. Rumbough, Jr.

Alice and Raymond I. Skilling

Gerald J. Sullivan

Jean and Donald Tang

James A. Thomas

Theresa and Charles Wolf, Jr.

FRIENDS

$1,000–$4,999

Individuals make annual gifts to RAND at the Friends level and above.

Anonymous

Sherry and Barry Balmat

Norman Barker, Jr.

Mark Benjamin

Maurine Bernstein

Linda and Brent D. Bradley

Edmund D. Brunner, Jr.

Jean and Waldo H. Burnside

Jacqueline and Andrew I. Caster

Jane and Louis M. Castruccio

Margery A. Colloff

Richard P. Cooley

Gordon B. Crary

Richard J. and Mildred Cross

Brownlee Currey

Eugene J. Ellis

Paul G. Flynn

James C. Gaither

William T. Golden

Lucille Goldsen

Debra Granfield and Michael D. Rich

James A. Greer, II

Susan G. and William M. Guttman

Ralph E. Hansmann

James D. Hodgson

Alan L. Hoffman

Leonard Horwin

Vicki Huth

Phyllis Kantar

Susan Koehler

Kenneth Krug and Andrea Scharf

Daniel D. Kusar

Philip Lader

Carol Lyden

Sue Mallett

Michael M. May

Glen T. Meakem

Norman Metcalfe

Steven Miller

Joel R. Mogy

Lloyd and Mary Morrisett

Thomas P. Mullaney

Frank S. Palatnick

Marie-Anne and Malcolm A. Palmatier

Donald E. Petersen

Robert L. Petkun

Patricia Salas Pineda

John Edward Porter

Murray Pepper and Vicki Reynolds Pepper

Paul G. Rogers

Louis Rowell

Henry S. and Beverly Rowen

Jacques H. Schraven

Brent Scowcroft

Donald W. Seldin

Nina and Ivan Selin

Dorothy R. Sherwood

Gunjit S. Sikand

H. Russell Smith

Robert Spinrad

Larry S. Stewart

Marjorie and Robert Templeton

Darlene and James A. Thomson

Marianne and Wesley Truitt

Heike and Ralph Turchiano

Barbara and Milton G. Weiner

John P. White

Bill Williams

James Q. Wilson

Paul S. Wise

Linda Tsao Yang

LEGACY CIRCLE

The following individuals have committed estate gifts to RAND.

Frank C. Carlucci

James A. Greer, II

Olaf Helmer

Bruce Karatz

G. G. Michelson

Newton N. Minow

Eleanor B. Sheldon

Willis Ware

Th e Pardee RAND Graduate School

With 54 professors and a student body of 91, the School enjoys one of the most favorable faculty-student ratios in higher education. Its student body is remarkable and remarkably diverse. Most students have already earned advanced degrees, ranging from doctorates in the sciences or in medicine to master’s degrees in a variety of disciplines. Graduates have gone to high-level positions in government, the private sector, academia, and nonprofi t groups. In all their diversity, its students have three things in common: passion, discipline, and intellectual power.

The School’s Ph.D. in policy analysis is designed to train creative thinkers to play important roles in solving major problems facing the nation and the world. Rigorous courses all operate as seminars, and students get the

opportunity to work alongside top RAND researchers on a broad range of projects as part of their on-the-job training. All students receive fellowships that pay for all tuition costs and health care, and a stipend based on the work they perform on RAND research projects.

Th e RAND Graduate Student Summer Associate Program

The Graduate Student Summer Associate Program is designed for students who have completed at least two years in a graduate program leading to a doctorate or other advanced degree. Each summer associate conducts independent research during the approximately 12 weeks that he or she spends at RAND assigned to a research project and mentored by a research staff member.

Educational Opportunities

The Pardee RAND

Graduate School (PRGS)

grants more Ph.D.’s in

public policy analysis

annually than any other

educational institution

in the United States.

Pictured: Assistant deans

Rachel Swanger (seated,

center) and Alex Duke

(seated, right) in the new

PRGS courtyard in Santa

Monica with PRGS fellows

(left to right) Hilary

Rhodes, Thomas Lang,

John Fei, and Sai Ma.


In 2004, 28 summer associates from 20 different universities applied their skills to the analysis of a wide range of public policy problems.

A sample of summer associate research topics in 2004 includes

• an examination of advanced automotive engine technologies, particularly hybrid-electric vehicles

• a project that examined how terrorist attacks might affect oil supplies

• an education project on organizational responses to accountability in education and the impact of the No Child Left Behind Act

• the development of case studies pertaining to creating police forces in nation-building efforts, and initiatives to study and reduce violence

• a study of the social impacts of defense applications of nanotechnology

• a health study relating to the effectiveness and utility of syndromic surveillance in public health practice

Students are selected for associateships based on their interests and skills and their match with current RAND research projects. Several hundred individuals apply each year. In 2004, 12 of the associates worked in the Santa Monica Offi ce, 10 in the Washington Offi ce, and 6 in the Pittsburgh Offi ce.

Other Educational Opportunities

Several specialized pre- and postdoctoral programs are conducted under the auspices of individual research units. The programs offer formal and informal training and extensive collaboration with RAND researchers.

RAND Labor and Population offers the RAND Fellows in Population Studies and the Study of Aging program, sponsored by the National Institutes of Health. The program enables outstanding junior scholars in demographic and aging research to sharpen their analytic skills, learn to communicate research results effectively, and advance their research agenda.

The program has also sponsored yearlong fellowships and shorter study visits for students and researchers from a number of developing countries, including Bangladesh, Cameroon, Guatemala, India, Indonesia, Kenya, Malaysia, Mexico, Pakistan, the Gambia, and the Philippines. Many of these students return to their countries to work in universities, government, or international agencies. For more than two decades, the program has offered these fellowships and study visits, supported by grants from the Agency for International Development, the Population Council, and the Hewlett Foundation.

• Participants in the Robert Wood Johnson Clinical Scholars Program at the University of California, Los Angeles (UCLA), have the opportunity to involve themselves in RAND Health projects as part of their training. The program is designed to allow young physicians committed to clinical medicine to acquire new skills and training in the nonbiological sciences that are important to medical care systems. The program prepares physicians to act as health services research leaders and agents for change in diverse settings such as the community, federal and state governments, health care organizations, and academic departments. The program focuses on two priority areas: Improving the Care for America’s At-Risk Populations and Improving Quality of Care in a Changing Social and Economic Environment.

• RAND Health and the UCLA School of Public Health jointly sponsor a postdoctoral training program that offers training in health services research methods and policy analysis and research experience through ongoing research projects at RAND or UCLA.

• RAND Summer Institute (RSI) consists of two annual conferences that address critical issues facing our aging population: the MiniMedical School for Social Scientists and a workshop on Demography, Economics, and Epidemiology of Aging. The MiniMedical School, sponsored by the National Institute on Aging and the NIH Offi ce of Behavioral and Social Sciences Research, is offered to non-medically trained scholars whose research relates to the aging process and the medical treatment of elderly.

Graduates have gone to high-level positions in government,

the private sector, academia, and nonprofit groups. In all

their diversity, its students have three things in common:

passion, discipline, and intellectual power.

educ at iona l opport u n i t i e s

U.S. GovernmentAgency for International Development

Department of Agriculture

Department of Commerce

National Institute of Standards and Technology

Department of Defense

Counterdrug Technology Development Program

Department of the Air Force

Department of the Army

Biometrics Management Office

Department of the Navy

Marine Corps

Joint Staff

Office of the Secretary of Defense

Assistant Secretary of Defense(Command, Control, Communi cations, and Intelligence)

Deputy Secretary of Defense

Under Secretary of Defense for Acquisition, Technology, and Logistics

Defense Advanced Research Projects Agency

Defense Threat Reduction Agency

Missile Defense Agency

Under Secretary of Defense (Comptroller)

Defense Finance and Accounting Service

Director, Program Analysis and Evaluation

Under Secretary of Defense for Personnel and Readiness

TRICARE Management Activity

Under Secretary of Defense for Policy

Director, Net Assessment

U.S. Coast Guard

Department of Education

Department of Energy

National Renewable Energy Laboratory

Oak Ridge National Laboratory

Department of Health and Human Services

Administration for Children and Families

Agency for Healthcare Research and Quality

Assistant Secretary for Planning and Evaluation

Centers for Medicare and Medicaid Services

Centers for Disease Control and Prevention

National Institute for Occupational Safety and Health

Health Resources and Services Administration

National Institutes of Health

National Cancer Institute

National Center for Complementary and Alternative Medicine

National Heart, Lung, and Blood Institute

National Institute on Aging

National Institute on Alcohol Abuse and Alcoholism

National Institute of Child Health and Human Development

National Institute for Dental and Craniofacial Research

National Institute on Drug Abuse

National Institute of Environmental Health Sciences

National Institute of Mental Health

National Institute of Nursing Research

Substance Abuse and Mental Health Services Administration

Department of Homeland Security

Federal Emergency Management Agency

Department of Justice

Federal Bureau of Investigation

National Institute of Justice

Office of Justice Programs

Department of Labor

Department of State

Department of Transportation

Federal Railroad Administration

Department of Veterans Affairs

Environmental Protection Agency

Medicare Payment Advisory Commission

National Reconnaissance Office

National Science Foundation

Social Security Administration

Unified Commands

United States Capitol Police

U.S. Intelligence Community

Foreign Government Agencies MinistriesAustralian Ministry of Defense

Danish Ministry of Transport

Dutch Ministry of Education, Culture, and Science

Dutch Ministry of Transport, Public Works, and Water Management

Dutch Railways

European Commission, Directorate General Education and Culture

European Commission, Directorate General Enterprise

European Commission, DG TREN

Fraport AG (Germany)

German Ministry of Education and Research

German Ministry of Environment

German Ministry of Transport

Italian Ministry of Defense

Lithuanian Ministry of Defense

Mexico

Secretary of Public Education

United Kingdom

Department for Transport

Medical Research Council

Ministry of Defence

National Audit Office

National Health Service

Office of Science and Technology

Romanian Ministry of Defense

State of Qatar

Armed Forces

Supreme Education Council

Supreme Council for Family Affairs

International OrganizationsArthritis Research Campaign (ARC), United Kingdom

Berlin-Brandenburg Flughafen Holding

Information Assurance Advisory Council (IAAC)

Korean Institute of Science and Technology Evaluation and Planning (KISTEP)

Matt MacDonald Group

SIKA (Swedish Institute for Transport andCommunications Analysis)

STIF (Syndicat des Transports d’Ile-de-France)

State and Local GovernmentsState of California

Air Resources Board

California Arts Council

California Legislative Analyst’s Office

California State Auditor

Bureau of State Audits

Clients and Sponsors


Department of Industrial Relations

Department of Social Services

Department of Transportation (CalTrans)

California City and County Offices

City of Los Angeles

Los Angeles County

Los Angeles County Probation Department

Los Angeles County Proposition 10 Commission, California

Los Angeles Unified School District

Orange County Probation Department

San Diego County

Chief Probation Officers of California

Santa Barbara High School District

Ventura County Probation Agency

City of Cincinnati

Commonwealth of Pennsylvania

Allegheny Intermediate Unit

University Center for Southwest Pennsylvania

New Mexico Workers’ Compensation Administration

New York City Palliative Care Quality Improvement

City of Seattle

Tennessee Department of Education

Colleges and UniversitiesAndrews University

Dartmouth Institute for Security Technology Studies

George Washington University

Harvard University

The Johns Hopkins University

Kent School

Los Angeles Community College

Oregon Health and Science University

Rutgers University

Stanford University

University of California, Berkeley

University of California, Los Angeles

University of California, San Diego

University of California, San Francisco

University of Maryland

University of Michigan

University of Minnesota

University of Pittsburgh

University of Southern California

University of Washington

FoundationsArthritis Foundation

Archstone Foundation

BEST Foundation

California Endowment

California HealthCare Foundation

Carnegie Corporation of New York

Casey Family Programs

Edna McConnell Clark Foundation

Core Knowledge Foundation

Energy Foundation

The Ford Foundation

Bill and Melinda Gates Foundation

William T. Grant Foundation

Hartford Foundation

John Randolph and Dora Haynes Foundation

Heinz Foundation

Howard Heinz Endowment

The William and Flora Hewlett Foundation

James Irvine Foundation

Japan Foundation Center for Global Partnership

Christian A. Johnson Endeavor Foundation

The Robert Wood Johnson Foundation

Ewing Marion Kauffman Foundation

Korea Foundation

Lila Wallace–Reader’s Digest Fund

The John D. and Catherine T. MacArthur Foundation

Medi-Cal Policy Institute

National Energy Foundation

The Nuffield Trust

Open Society Institute

David and Lucile Packard Foundation

Qatar Foundation

The Rockefeller Foundation

Alfred P. Sloan Foundation

Smith Richardson Foundation

The Spencer Foundation

Starr Foundation

U.S.-China Legal Cooperation Foundation

IndustryABM Engineering

Alan’s Medical Systems, Inc.

Amgen

Amtrak

AstraZeneca International

Blue Cross & Blue Shield of Rhode Island

Cerner Corporation

Colorado Health Networks

Concurrent Technologies Corporation

CorSolutions

DMJMH+N

Edison Schools, Inc.

Educare Corporation

Eli Lilly and Company

Equitable Resources, Inc.

Ford, General Motors, and Daimler Chrysler

Health Services Advisory Group

Hewlett-Packard Development Company

Honda Motor Company

Humana Inc.

The Leads Corporation

Merck & Co., Inc.

Pfizer Inc

PNC Financial Services Group

Row Sciences

Save the World Air, Inc.

Telomer Consortium

ValueOptions

Wellpoint Health Networks, Inc.

Wells Fargo

Westat Research Corporation

Professional AssociationsAARP

American Medical Association

American Physical Society

American Society of Clinical Oncology

Blue Cross and Blue Shield Association

Building Industry Institute

Building Owners Management Association–Los Angeles

Health Industry Manufacturers Association

National Board for Professional Teaching Standards

Other Nonprofi t OrganizationsAmerican Institutes for Research

Arkansas Tobacco Settlement Commission

Battelle Pacific Northwest Laboratories

DC Asthma Coalition

District of Columbia Primary Care Association

Group Health Cooperative of Puget Sound

Health Research, Inc.

Healthy Home Resources, Inc.

Institute for Health Policy Solutions

Integrated Healthcare Association

National Bureau of Economic Research

National Chamber Foundation

National Forum for Health Care Quality Measurement and Reporting

Nuclear Threat Initiative

Oklahoma City National Memorial Institute for the Prevention of Terrorism

Research Triangle Institute

Sandia Laboratories

Shelter Partnership Inc.

cl i en ts a nd sponsor s

Promising Practices Network Board of Advisors

James A. Thomson (Chairman)President and CEO, RAND Corporation

Douglas A. BrengelSenior Managing Director, Citigroup Global Markets Inc.

Judith K. ChynowethExecutive Director, Foundation Consortium for California’s Children & Youth

Virginia MasonExecutive Director, Family Support America

Ricardo A. MilletPresident, Woods Fund of Chicago

Lloyd N. MorrisettPresident (retired), The Markle Foundation

Paul H. O’NeillFormer Secretary of the Treasury

Mark RealPresident and CEO, KidsOhio.org

Steve RenneDeputy Director, Missouri Department of Social Services

Norman S. RosenbergPresident and CEO, Parents Action for Children

Ken SeeleyFounder and Executive Director, The Colorado Foundation for Families and Children

Gaye Morris SmithExecutive Director, Family Connection Partnership

Gary WithersPresident, The Children’s Institute

RAND Center for Asia Pacifi c Policy Advisory Board

Ratan N. Tata (Chair)Chairman, TATA Industries Limited, Mumbai, India

Roy DoumaniMember of the Board of Directors and Acting Chief Operations Offi cer, California Nanosystems Institute

Robert FergusonDeputy Chairman, The Sydney Institute; Chairman, IMF Australia Limited

Matthew K. FongPresident, Strategic Advisory Group; former California State Treasurer

Shinji FukukawaExecutive Advisor, Dentsu Institute for Human Studies

Lalita D. GupteJoint Managing Director, ICICI Bank Limited

James HodgsonFormer U.S. Ambassador to Japan

Ken Senjong HsuiPresident, Prince Motors Group

Benny T. HuChairman, CDIB BioScience Venture Management, Inc.

Michael ByungJu KimPresident, Carlyle Asia

Peter KwokChairman, CITIC Resources Holdings Limited

Woong-Yeul LeeChairman, Kolon Group

Robert OehlerVice Chairman, Far East National Bank

Patricia Salas PinedaGroup Vice President and General Counsel, Corporate Communications, Toyota Motor of North America

Nicholas RockefellerPartner, Perkins Coie LLP

Richard H. SolomonPresident, U.S. Institute of Peace; former Assistant Secretary of State for East Asian and Pacifi c Affairs; former U.S. Ambassador to the Philippines

Cyrus TangPresident and Chairman of the Board, Tang Industries, Inc.

Donald TangVice Chairman, Bear, Stearns & Co. Inc.; Chairman, Bear Stearns Asia

Frank G. WisnerVice Chairman, External Affairs, American International Group, Inc.; former U.S. Ambassador to India

Linda Tsao YangChairman, Asian Corporate Governance Association

Daniel YunChairman and CEO, Voyager Group, LLC

Ex Offi cio

James A. ThomsonPresident and CEO, RAND Corporation

Nina HachigianDirector, RAND Center for Asia Pacifi c Policy

Susan EveringhamDirector of International Programs, RAND Corporation

RAND Center for Middle East Public Policy Advisory Board

Frank C. Carlucci (Chair)Chairman Emeritus, The Carlyle Group

Kenneth J. AbdallaManaging Member, Waterton Management, LLC

Odeh F. Aburdene

Hushang AnsaryChairman, Parman Capital Group

Rebecka Belldegrun

Alexander L. CappelloChairman and CEO, Cappello Group Inc.

George N. ChammasCopresident and Chief Financial Offi cer, NavLink Inc.

A dv isory Boar dsRAND advisory boards enrich our research agenda by adding their experience, perspective, and expertise.

Interactions between a unit and its board vary, but advisory board members may advise on research

directions, comment on the relevancy and occasionally the quality of work, facilitate dissemination of

research results, provide fi nancial support, and assist with fund-raising from others.


Lloyd E. CotsenPresident, Cotsen Management Corporation

Roy DoumaniMember of the Board of Directors and Acting Chief Operations Offi cer, California Nanosystems Institute

Ahmet M. ErtegunCochairman and Co-CEO, Atlantic Recording Corporation

Guilford GlazerGuilford Glazer Associated Companies

Tone N. Grant

Maxwell E. GreenbergConsultant to the Board, Med-Net Elcam

Rita E. HauserPresident, The Hauser Foundation, Inc.

Joel Z. HyattGraduate School of Business, Stanford University

Ray R. IraniChairman and CEO, Occidental Petroleum Corporation

Joseph JacobsChairman, Jacobs Engineering Group, Inc.

Peter A. JosephPalladium Equity Partners

Ann KerrDirector, Fulbright Program, University of California, Los Angeles

Ray Mabus

Younes NazarianThe Nazarian Companies

David Richards

Donald Ellis SimonPresident, The Lucille Ellis Simon Foundation

Enzo ViscusiGroup Senior Vice President, ENI SpA

Stanley A. WeissChairman, Business Executives for National Security

Poju C. ZabludowiczChairman of the Board of Trustees, The Zabludowicz Trust

Ex Offi cio


RAND Council for Aid to Education Board of Directors

Michael D. Rich (Chairman)Executive Vice President, RAND Corporation

Roger BenjaminPresident, RAND Council for Aid to Education

Brent BradleySpecial Assistant to the President for Corporate Strategy, RAND Corporation

RAND Council for Aid to Education Board of Advisors

John H. AugustineManaging Director, Lehman Brothers, Inc.

Roger BenjaminPresident, RAND Council for Aid to Education

Robert L. BovinettePresident Emeritus, Commonfund Group

Gordon DaviesFormer President, Kentucky Council on Post-Secondary Education

Russell C. DeyoVice President and General Counsel, Johnson & Johnson

Ronald J. GidwitzChairman, GCG Partners

Charles E. M. KolbPresident, Committee for Economic Development

Harold W. McGraw, Jr.(Special Advisor) Chairman Emeritus, The McGraw-Hill Companies, Inc.

Yolanda T. MosesSpecial Assistant to the Chancellor for Excellence and Diversity/Vice Provost, Confl ict Resolution, University of California, Riverside

William C. NelsenPresident Emeritus, Citizen’s Scholarship Foundation of America

Michael O’KeefePresident, Minneapolis College of Art and Design

Charles B. ReedChancellor, California State University

Michael D. RichExecutive Vice President, RAND Corporation

Benno C. Schmidt, Jr.Chairman, Edison Schools

John Brooks SlaughterPresident and CEO, National Action Council for Minorities in Engineering

Sara Martinez TuckerPresident and CEO, Hispanic Scholarship Fund

RAND Europe Executive Board

James A. Thomson (Chairman)President and CEO, RAND Corporation

Stephen M. DreznerSenior Advisor, RAND Corporation

L. Martin van der MandelePresident, RAND Europe

Floris A. MaljersRetired Chairman, Unilever N.V., The Netherlands

Maarten C. van VeenRetired Chairman, Hoogovens, The Netherlands

Lo C. van WachemChairman, Board of Directors, Zurich, The Netherlands; former Chairman, Supervisory Board, Royal Dutch Shell, The Netherlands

RAND Europe (UK) Board of Trustees

L. Martin van der Mandele (Chairman)President, RAND Europe

Sir John BoydMaster, Churchill College, United Kingdom

Sir Lawrence FreedmanVice-Principal (Research) and Head, School of Social Science and Public Policy, King’s College London, United Kingdom

RAND Europe (UK) Advisory Board

Robin Renwick of Clifton (Chairman)Chairman, J. P. Morgan plc., United Kingdom

Jan K. BieleckiPresident, Bank Polska Kasa Opieki S.A., Poland

Carl BildtSpecial Envoy of the United NationsSecretary-General for the Balkans

Olivier DebouzyPartner, August & Debouzy, France

Thérèse DelpechDirector, Atomic Energy Commission, France

Jacques H. SchravenChairman, Federation of Netherlands Industry and Employers (VNO-NCW), The Netherlands

Karsten D. VoigtCoordinator for German-American Cooperation, Foreign Offi ce, Germany

Matti VuoriaExecutive Vice President, Varma Mutual Pension Insurance Company, Finland

a dv isory boa r ds

Jacques H. WahlDirector, Senior Advisor, and Member of the Managing Board, Banque Nationale de Paris Paribas, France

H. C. Werner WeidenfeldProfessor of Political Science, Geschwister-Scholl-Institute, Ludwig-Maximilians-University, Germany; Director, Center for Applied Policy Research (CAP), Germany

RAND Health Board of Advisors

Joseph P. Sullivan (Chair)Private Investor

Neal A. Baer, M.D.Executive Producer, Law & Order: Special Victims Unit

Robert H. Brook, M.D., Sc.D., F.A.C.P.Vice President, Corporate Fellow, and Director of RAND Health

Ronald I. Dozoretz, M.D.Chairman and CEO, ValueOptions

Mary Kay FarleyTrustee, Hospital for Special Surgery, New York

Robert G. FunariFormer President and CEO, Syncor International

Frederick W. GluckFormer Managing Director, McKinsey & Company, Inc.

Pedro Jose Greer, Jr., M.D.Assistant Dean, University of Miami School of Medicine

Karen Hein, M.D.Immediate Past President, William T. Grant Foundation

Suzanne Nora JohnsonVice Chairman, Goldman Sachs Group Inc.

Karen L. KatenVice Chairman, Pfi zer Inc, and President, Pfi zer Human Health

Paul KoegelAssociate Director, RAND Health

Joseph S. KonowieckiExecutive Vice President and General Counsel, Pacifi Care Health Systems, Inc.

Eve M. KurtinManaging Director, Pacifi c Venture Group

David M. Lawrence, M.D.Chairman Emeritus, Kaiser Foundation Health Plan, Inc.

Steven LazarusManaging Partner, ARCH Venture Partners

Sir Michael MarmotDirector, International Centre for Health and Society, University College London

Charles N. Martin, Jr.Chairman and CEO, Vanguard Health Systems

Elizabeth A. McGlynnAssociate Director, RAND Health


Neal L. PattersonChairman and CEO, Cerner Corporation

John Edward PorterPartner, Hogan and Hartson LLP

Carol A. RichardsDirector, Carol Richards Associates

David K. RichardsPrivate Investor

John J. RydzewskiPartner, Benedetto, Gartland & Company, Inc

Sir Maurice ShockChairman, The Nuffi eld Trust


Gail L. WardenPresident and CEO, Henry Ford Health System

RAND Infrastructure, Safety, and Environment Advisory Board

John K. Van de Kamp (Chairman)Dewey Ballantine LLP

Dede Thompson BartlettChair, Advisory Council, National Domestic Violence Hotline

Lovida H. Coleman, Jr.Partner, Sutherland, Asbill & Brennan LLP

Margery ColloffCounsel, White and Case

Robert CurvinPresident (retired), Greentree Foundation

Scott M. GordonSuperior Court Commissioner, Los Angeles County Superior Court

Janet GreenManaging Director, Cappello Group, Inc.

Janet Crown PetersonManaging Partner, Outside Shot LLC

Jane RandelVice President, Liz Claiborne, Inc.

James A. ThomasChairman and Chief Executive Offi cer, Thomas Properties Group

Senior Advisors

Gavin de BeckerGavin de Becker and Associates, Senior Fellow, UCLA School of Public Policy

Newton N. MinowSenior Counsel, Sidley Austin Brown & Wood LLP

James Q. WilsonJames A. Collins Professor Emeritus of Management, The John E. Anderson Graduate School of Management, University of California, Los Angeles

RAND Institute for Civil Justice Board of Overseers

Raymond I. Skilling (Chair)Executive Vice President, Aon Corporation

Sheila L. Birnbaum (Vice Chair)Skadden, Arps, Slate, Meagher, & Flom

Steven BennettGeneral Counsel, United Services Automobile Association

James L. BrownDirector, Center for Consumer Affairs, University of Wisconsin–Milwaukee

Kim M. BrunnerSenior Vice President and General Counsel, State Farm Insurance

Alan F. Charles

Robert A. CliffordClifford Law Offi ces

John J. DegnanVice Chairman and CAO, The Chubb Corporation

Markus U. DiethelmChief Legal Offi cer, Head of Group Regulatory Affairs and Government Relations, Swiss Reinsurance Company

Kenneth R. FeinbergThe Feinberg Group, LLP

Paul G. FlynnJudge, Los Angeles Superior Court

Kenneth C. FrazierSenior Vice President and General Counsel, Merck & Co., Inc.

James A. Greer, II

Terry J. Hatter, Jr.District Judge, U.S. District Court, Central District of California

Deborah R. HenslerJudge John W. Ford Professor of Dispute Resolution, Stanford Law School


Patrick E. HigginbothamCircuit Judge, U.S. Court of Appeals, 5th Circuit

Jeffrey B. KindlerSenior Vice President and General Counsel, Pfi zer Inc

Steven J. KumbleChairman of the Board and CEO, Lincolnshire Management

Ann LomeliCo-General Counsel, MassMutual Financial Group

James W. MacdonaldExecutive Vice President and Chief Underwriting Offi cer, ACE USA

Joseph D. MandelVice Chancellor, Legal Affairs, University of California, Los Angeles

Christopher C. Mansfi eldSenior Vice President and General Counsel, Liberty Mutual Insurance Company

Charles W. Matthews, Jr.Vice President and General Counsel, ExxonMobil Corporation

Margaret McKeownCircuit Judge, U.S. Court of Appeals, 9th Circuit

Robert S. PeckPresident, Center for Constitutional Litigation, American Trial Lawyers Association

Robert W. PikeExecutive Vice President and Secretary, Allstate Insurance Company

Paul M. PohlJones Day

Thomas E. RankinPresident, California Labor Federation, AFL-CIO

Charles R. SchaderSenior Vice President, American International Group

Daniel I. SchlessingerGlobal Managing Partner, Lord, Bissell & Brook

Dov L. SeidmanChairman and Chief Executive Offi cer, LRN, The Legal Knowledge Company

Hemant H. ShahPresident and Chief Executive Offi cer, Risk Management Solutions, Inc.

Larry S. StewartStewart Tilghman Fox & Bianchi

Wayne D. WilsonVice President, Legislative and Regulatory Affairs, Farmers Insurance Group

Neal S. WolinExecutive Vice President and General Counsel, The Hartford Financial Services Group, Inc.

RAND-Qatar Policy Institute Board of Overseers

Her Highness Sheikha Mozah Bint Nasser Al Missned (Cochair)

Michael Rich (Cochair)Executive Vice President, RAND Corporation

Frank CarlucciChairman Emeritus, The Carlyle Group

David L. AaronDirector, RAND Center for Middle East Public Policy

Lulwa Abdullah Al-MisnedAssistant Secretary General of Industrial Studies and Projects, Gulf Organization for Industrial Consulting

Sheikh Hamad Nasser Al-ThaniGeneral Manager, Qatar Industrial Development Bank

Farouk El-BazDirector, Center for Remote Sensing, Boston University

Ex Offi cio

Charles YoungPresident, Qatar Foundation

C. Richard NeuDirector, RAND-Qatar Policy Institute

Frederick S. Pardee RAND Graduate School Board of Governors

Donald B. Rice (Chair)Chairman, President, and CEO, Agensys, Inc.

Don R. ConlanPresident (retired), The Capital Group Companies

Thomas E. EpleyDirector, Paradyne Corporation; Director, AMI Semiconductor Corporation

Steve FetterProfessor, School of Public Affairs, University of Maryland; Associate Director, Joint Global Change Research Institute

Francis FukuyamaDean of Faculty and Bernard L. Schwartz Professor of International Political Economy, Paul H. Nitze School of Advanced International Studies, Johns Hopkins University

John GageChief Researcher, Sun Microsystems

Russell GoldsmithChairman and CEO, City National Bank


B. Kipling (“Kip”) HagopianManaging Director, Apple Oaks Partners, LLC; Special Limited Partner, Brentwood Venture Capital; Special Advisory Partner, Redpoint Ventures

Seymour F. KaufmanManaging Director, Crosslink Capital

Lydia H. KennardFormer Executive Director, Los Angeles World Airports

Sherry LansingChairman and CEO, Paramount Pictures—Motion Picture Group

John MackPresident, Los Angeles Urban League

Ruben F. MettlerRetired Chairman and CEO, TRW, Inc.

Marc NathansonVice Chairman, Charter Communications

Joseph P. NewhouseJohn D. MacArthur Professor of Health Policy and Management, Harvard University

Frederick S. PardeeInvestor

Eugene S. RosenfeldManaging Partner, Highridge Partners

James F. RothenbergPresident, Capital Research and Management Company; Treasurer, Harvard University

Robert SpinradVice President, Technology Strategy (retired), Xerox Corp.


John L. VogelsteinVice Chairman, Warburg Pincus

Paul A. VolckerFormer Chairman of the Federal Reserve

Faye WattletonPresident, Center for the Advancement of Women

Susan J. Way-SmithFormer President and CEO, Urban Education Partnership

James Q. WilsonJames A. Collins Professor Emeritus of Management, The John E. Anderson Graduate School of Management, University of California, Los Angeles

a dv isory boa r ds


Air Force Steering Group

Gen T. Michael Moseley (Chairman)Vice Chief of Staff

Lt Gen Kevin P. ChiltonAssistant Vice Chief of Staff (Acting)

Lt Gen Ronald E. KeysDeputy Chief of Staff, Air and Space Operations

Lt Gen William T. (Tom) HobbinsDeputy Chief of Staff, Warfi ghting Integration

Lt Gen John D. W. CorleyPrincipal Deputy Assistant Secretary for Acquisition;

Lt Gen Donald J. WetekamDeputy Chief of Staff for Installations and Logistics

Lt Gen Roger A. BradyDeputy Chief of Staff, Personnel

Lt Gen Stephen G. WoodDeputy Chief of Staff for Plans and Programs

Maj Gen Ronald J. Bath (Executive Agent)Director, Strategic Planning, Offi ce of the Deputy Chief of Staff, Plans and Programs

RAND Arroyo Center Policy Committee

GEN Richard A. Cody (Cochair)Vice Chief of Staff, U.S. Army

Claude M. Bolton, Jr. (Cochair)Assistant Secretary of the Army (Acquisition, Logistics, and Technology)

Walter W. HollisDeputy Under Secretary of the Army (Operations Research)

GEN Kevin P. ByrnesCommanding General, U.S. Army Training and Doctrine Command

GEN Benjamin S. Griffi nCommanding General, U.S. Army Materiel Command

GEN Dan K. McNeillCommanding General, U.S. Army Forces Command

LTG Philip R. Kensinger, Jr.Commanding General, U.S. Army Special Operations Command

LTG Kevin C. KileyCommand General, U.S. Army Medical Command/The Surgeon General, U.S. Army

LTG Franklin L. HagenbeckDeputy Chief of Staff, G-1, U.S. Army

LTG Keith B. Alexander, Jr.Deputy Chief of Staff, G-2, U.S. Army

LTG James J. LovelaceDeputy Chief of Staff, G-3, U.S. Army

LTG Claude V. ChristiansonDeputy Chief of Staff, G-4, U.S. Army

LTG Steven W. BoutelleChief Information Offi cer, G-6, U.S. Army

MG David F. MelcherDeputy Chief of Staff, G-8, U.S. Army

MG Larry J. LustAssistant Chief of Staff for Installation Management, U.S. Army

MG N. Ross Thompson, III (Executive Agent)Director, Program Analysis and Evaluation

RAND National Defense Research Institute Advisory Board

Michael W. Wynne (Acting Chair)Under Secretary of Defense (Acquisition, Technology, and Logistics)

Thomas BehlingPrincipal Deputy Under Secretary of Defense for Intelligence

VADM Arthur Cebrowski, USN (ret.)Director, Force Transformation, Offi ce of the Secretary of Defense

Lt Gen James Clapper, USAF (ret.)Director, National Geospatial-Intelligence Agency

Jeanne B. FitesDeputy Under Secretary of Defense for Program Integration, Offi ce of the Under Secretary of Defense (Personnel and Readiness)

Ryan HenryPrincipal Deputy Under Secretary of Defense Policy

MG Kenneth Hunzeker, USAVice Director, J-8 Force Structure, Resources and Assessment Directorate

Ken KriegDirector, Program Analysis and Evaluation, Offi ce of the Secretary of Defense

Trip BarberDeputy Director, Assessment Division, Offi ce of the Deputy Chief of Naval Operations

Cheryl RobyDeputy Assistant Secretary of Defense for Resources, Offi ce of the Assistant Secretary of Defense (Networks and Information Integration)

Anthony TetherDirector, Defense Advanced Research Projects Agency

Nancy Spruill (Executive Agent)Director, Acquisition Resources and Analysis, Offi ce of the Under Secretary of Defense (Acquisition, Technology, and Logistics)

These are the advisory boards for RAND’s federally funded research and development centers (FFRDCs).

Ann McLaughlin KorologosChairman

Chairman Emeritus, The Aspen Institute; former Secretary of Labor

Bruce KaratzVice Chairman

Chairman and CEO, KB Home

Carl BildtFormer Prime Minister (Sweden)

Harold BrownCounselor, Center for Strategic and International Studies

Frank C. CarlucciChairman Emeritus, The Carlyle Group

Lovida H. Coleman, Jr.Partner, Sutherland, Asbill & Brennan LLP

Robert CurvinPresident (retired), Greentree Foundation


Rita E. HauserPresident, The Hauser Foundation, Inc.

Karen Elliott HousePublisher, The Wall Street Journal; Senior Vice President, Dow Jones and Company, Inc.

Jen-Hsun HuangPresident and CEO, NVIDIA Corporation

Paul G. KaminskiChairman and CEO, Technovation, Inc.

Lydia H. KennardFormer Executive Director, Los Angeles World Airports

Philip LaderChairman, The WPP Group

Arthur LevittSenior Advisor, The Carlyle Group

Lloyd N. MorrisettPresident (retired), The Markle Foundation


Amy B. PascalChairman, Motion Picture Group, Sony Pictures Entertainment

Patricia Salas PinedaGroup Vice President and General Counsel, Corporate Communications, Toyota Motor North America, Inc.

John Edward PorterPartner, Hogan and Hartson LLP

John S. ReedChairman (retired), Citigroup; Chairman, New York Stock Exchange

Donald B. RiceChairman, President, and CEO, Agensys, Inc.

James E. RohrChairman and CEO, PNC Financial Services Group

Jerry I. SpeyerPresident, Tishman Speyer Properties, Inc.


RAND Board of Trustees

Lewis M. Branscomb1972–1982*

William T. Coleman, Jr.1972–1975; 1977–1987

Michael Collins1979–1989

Richard P. Cooley1971–1981; 1982–1992

Harold J. Haynes1988–1989

Walter J. Humann1979–1989; 1990–2000

Walter E. Massey1983–1991; 1993

Michael M. May1972–1982; 1983–1993

G. G. Michelson1984–1994; 1995–1998

Newton N. Minow1965–1975; 1976–1986; 1987–1997

Walter F. Mondale1991–1993

J. Richard Munro1984–1994

Paul G. Rogers1979–1989

Henry S. Rowen1967–1972

Brent Scowcroft1984–1988; 1993–1997

Donald W. Seldin1975–1985; 1986–1993

Eleanor B. Sheldon1972–1982

Gustave H. Shubert1973–1989

Dennis Stanfi ll1978–1988

Frank Stanton1957–1967; 1968–1978

Charles H. Townes1965–1970

George H. Weyerhaeuser1975–1985

John P. White1973–1977

Charles Zwick1969–1979; 1980–1990; 1991–1999

Advisory Trustees

Peter S. Bing1988–1998; 1999–2002*

Frederick L. Anderson1959–1969

J. Paul Austin1971–1981

Robert F. Bacher1950–1960

Solomon J. Buchsbaum1982–1992

Frank R. Collbohm1948–1967

Mark W. Cresap, Jr.1960–1963

Charles Dollard1948–1961

Lee A. DuBridge1948–1961

Michael Ference, Jr.1963–1973

Ann F. Friedlaender1988–1992

H. Rowan Gaither, Jr.1948–1959; 1960–1961

James C. Gaither1984–1994; 1995–2000

Christopher B. Galvin1994–2000

Sam Ginn1997–1999

T. Keith Glennan1963–1974

J. Richard Goldstein1951–1973

W. Richard Goodwin1972–1982

Philip L. Graham1961–1963

Alan Greenspan1986–1987

Caryl P. Haskins1955–1965; 1966–1976

Lawrence J. Henderson, Jr.1948–1971

William R. Hewlett1962–1972

Carla A. Hills1983–1987

Edwin E. Huddleson, Jr.1955–1965; 1966–1976; 1977–1984

John A. Hutcheson1948–1959

Charles F. Knight1981–1986

Ernest O. Lawrence1956–1958

Alfred L. Loomis1948–1957

Edwin M. McMillan1959–1969

Soia Mentschikoff1972–1982

Philip M. Morse1948–1949; 1950–1962

Philip E. Mosely1951–1961; 1963–1972

Harvey S. Mudd1949–1955

Lauris A. Norstad1963–1973

Ronald L. Olson1994–2004

James A. Perkins1961–1971

Samuel R. Pierce, Jr.1976–1981

Thomas P. Pike1971–1976

Kenneth S. Pitzer1962–1972

Wesley W. Posvar1973–1983

Don K. Price1961–1971

Condoleezza Rice1991–1997

Donald H. Rumsfeld1977–1987; 1988–1998; 1999–2001

David A. Shephard1959–1963; 1965–1973

Kenneth I. Shine1993–2002

Frederick F. Stephan1948–1961

George D. Stoddard1948–1963

Julius A. Stratton1955–1965

George K. Tanham1971–1982

Charles Allen Thomas1959–1969

Paul A. Volcker1993–2000

William Webster1950–1960; 1961–1971

John F. Welch, Jr.1991–1992

Albert D. Wheelon1993-2001

Clyde E. Williams1948–1963

Walter B. Wriston1973–1983

Former Trustees

t rus t e e s

*Dates indicate service as a RAND trustee.


Financial Report

f ina nci a l r eport

The RAND Corporation

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

with summarized fi nancial information for the year ended September 28, 2003(in thousands) September 26, 2004 September 28, 2003

ASSETS Current assets Cash and cash equivalents $ 5,727 $ 8,681 Receivables Billed and unbilled costs and fees 39,824 32,837 Other receivables 5,979 3,661 Prepaid expenses and other current assets 4,267 6,473

Total current assets 55,797 51,652

Property and equipment Land 1,334 1,334 Buildings and improvements 213 183 Leasehold improvements 6,753 6,518 Equipment 33,498 28,505 Construction in progress 105,437 53,699

147,235 90,239 Less: Accumulated depreciation and amortization (25,542) (22,075)

Net property and equipment 121,693 68,164

Long-term investments 159,289 141,255 Building project fund investments 38,605 87,686 Other assets 11,983 9,988

Total assets $ 387,367 $ 358,745

LIABILITIES AND NET ASSETS Current liabilities Accounts payable and other liabilities $ 33,755 $ 32,618 Unexpended portion of grants and contracts received 19,096 15,074 Accrued compensation and vacation 14,676 13,887

Total current liabilities 67,527 61,579

Accrued postretirement benefi t liability 11,471 11,148 Long-term debt 130,177 130,184

Total liabilities 209,175 202,911 Commitments and contingencies (Note 8) Net assets Unrestricted Operations 5,235 3,229 Designated for investment 122,602 116,094 Designated for special use 6,547 5,146

Total unrestricted 134,384 124,469 Temporarily restricted 13,182 11,883 Permanently restricted 30,626 19,482

Total net assets 178,192 155,834

Total liabilities and net assets $ 387,367 $ 358,745

The accompanying notes are an integral part of these consolidated fi nancial statements.



CONSOLIDATED STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS

with summarized fi nancial information for the year ended September 28, 2003(in thousands)

For the Years Ended

September 26, September 28, 2004 2003

Unrestricted Net Assets

Total Temporarily Permanently Operations Designated Unrestricted Restricted Restricted Total Total

REVENUES, GAINS, AND OTHER SUPPORT

Contracts and grants $ 208,305 $ — $ 208,305 $ — $ — $ 208,305 $ 194,333

Fees 9,478 — 9,478 — — 9,478 7,926

Income on investments, net — 2,938 2,938 491 — 3,429 3,783

Net realized gains on investments — 5,318 5,318 921 — 6,239 1,328

Net unrealized gains on investments — 3,265 3,265 631 — 3,896 9,671

Contributions 4,574 150 4,724 2,970 11,144 18,838 8,272

Other investment income 1,067 — 1,067 — — 1,067 1,886

Transfer of designated net assets to operations 3,762 (3,762) — — — — —

Net assets released from restrictions due to satisfaction of program restrictions 3,714 — 3,714 (3,714) — — —

Total revenues, gains, and other support 230,900 7,909 238,809 1,299 11,144 251,252 227,199

EXPENSES

Research 181,726 — 181,726 — — 181,726 174,218

Management and general 44,568 — 44,568 — — 44,568 41,049

Total expenses 226,294 — 226,294 — — 226,294 215,267

Change in net assets before other item 4,606 7,909 12,515 1,299 11,144 24,958 11,932

Other item—loss on sale of land (Note 8) (2,600) — (2,600) — — (2,600) —

Change in net assets after other item 2,006 7,909 9,915 1,299 11,144 22,358 11,932

Net assets at beginning of year 3,229 121,240 124,469 11,883 19,482 155,834 143,902

Net assets at end of year $ 5,235 $ 129,149 $ 134,384 $ 13,182 $ 30,626 $ 178,192 $ 155,834


f i na nci a l r eport


CONSOLIDATED STATEMENTS OF CASH FLOWS

with summarized fi nancial information for the year ended September 28, 2003(in thousands) For the Year Ended For the Year Ended September 26, 2004 September 28, 2003Cash fl ows from operating activities:

Change in net assets $ 22,358 $ 11,932 Adjustments to reconcile change in net assets to net cash provided by operating activities: Adjustment to postretirement benefi t liability 323 169 Depreciation 4,404 4,260 Amortization 85 720 Loss on disposition of property and equipment — 102 Contributions restricted for purchase of property and equipment (378) — Permanently restricted contributions (8,220) (355) Net realized/unrealized gains (10,135) (10,999) Exchange gains (258) (720) Decrease (increase) in billed and unbilled costs and fees (6,987) 4,759 Decrease (increase) in other receivables (2,318) (1,399) Increase in prepaid expenses and other current assets 2,206 (1,085) (Increase) decrease in other long-term assets (2,087) 602 Increase in accounts payable and other liabilities 1,380 12,074 Increase (decrease) in unexpended portion of grants and contracts received 4,022 (3,521) Increase in accrued compensation, vacation, and retirement 789 520 Decrease in other liabilities — (697)

Net cash provided by operating activities 5,184 16,362

Cash fl ows from investing activities: Purchase of investments (97,253) (22,602) Proceeds from sale of investments 89,354 24,146 Purchases of building project fund investments 49,081 29,545 Purchases for construction in progress (53,112) (37,734) Purchases of property and equipment (4,821) (4,227)

Net cash used in investing activities (16,751) (10,872)

Cash fl ows from fi nancing activities: Contributions restricted for purchase of property and equipment 378 — Permanently restricted contributions 8,220 355 Net repayments under line-of-credit — (1,000) Payment of bond issue costs — (192)

Net cash provided by (used in) fi nancing activities 8,598 (837)

Effect of exchange rate changes on cash 15 220

Net increase (decrease) in cash and cash equivalents (2,954) 4,873 Cash and cash equivalents at beginning of year 8,681 3,808

Cash and cash equivalents at end of year $ 5,727 $ 8,681




NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. Corporate Organization: RAND Corporation (RAND) is a nonprofi t, tax-exempt corporation performing research and analysis funded by contracts, grants, and contributions. In addition, RAND conducts educational programs that provide graduate training.

The consolidated fi nancial statements of RAND include the accounts of two controlled affi liates: RAND Europe, a foundation domiciled in The Netherlands, and the Council for Aid to Education (CAE), a nonprofi t organi zation in New York. All intercompany balances and transactions have been eliminated in consolidation.

2. Summary of Signifi cant Accounting Policies:Fiscal Year. RAND’s fi scal reporting for both fi nancial statement and tax purposes is based on a 52- or 53-week year ending on the Sunday closest to September 30. The fi scal years include operations for 52-week periods in 2004 and 2003.

Basis of Presentation. The accompanying fi nancial statements have been prepared on the accrual basis of accounting in accordance with the American Institute of Certifi ed Public Accountants Audit and Accounting Guide, “Not-for-Profi t Organizations.”

Net assets are classifi ed into three categories according to donor-imposed restrictions, as follows:

Permanently restricted—Net assets subject to donor-imposed stipulations that neither expire by passage of time nor can be fulfi lled or otherwise removed by actions of RAND. Generally, the donors of these assets permit RAND to use all or part of the investment return on these assets.

Temporarily restricted—Net assets whose use by RAND is subject to donor-imposed stipulations that either expire by passage of time or can be fulfi lled and removed by actions of RAND.

Unrestricted—Net assets that are not subject to donor-imposed stipulations. Unrestricted assets may be designated for specifi c purposes by action of the Board of Trustees.

The fi nancial statements include certain prior-year summarized comparative information in total but not by net asset category. Such prior-year information does not include suffi cient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with RAND’s fi nancial statements for the year ended September 28, 2003, from which the summarized fi nancial information was derived.

Use of Estimates. The preparation of fi nancial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the fi nancial statements. Estimates also affect the reported amount of revenues, expenses, or other changes in net assets during the reporting period. Actual results could differ from these estimates.

Revenue and Expense Recognition. Contract and grant revenues are recognized as the related services are performed in accordance with the terms of the contract or grant or using the percentage of completion method.

Contributions, including unconditional promises to give, are recognized as revenue in the period received and are reported as increases in the appropriate category of net assets. Donor-restricted contributions that are received and either spent or deemed spent within the same fi scal year are reported as unrestricted revenue.

Expenses are generally reported as decreases in unrestricted net assets. Expirations of donor-imposed stipulations or of board designa-tions that simultaneously increase one class of net assets and decrease another are reported as transfers between the applicable classes of net assets.

Concentrations of Risk. Cash and cash equivalents are maintained with several fi nancial institutions. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with fi nancial institutions of reputable credit and therefore bear minimal credit risk.

RAND derived 72 percent of its research revenues in fi scal years 2004 and 2003 from contracts, grants, and fees with agencies of the federal government.

Cash and Cash Equivalents. RAND considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents.

Property and Equipment. Property and equipment is stated at cost. Depreciation is computed by the straight-line method over the following estimated useful lives of the assets: 5 to 40 years for building and improvements and 3 to 20 years for equipment. Leasehold improvements are amortized by the straight-line method over the shorter of the estimated useful lives of the assets or the term of the lease. Construction in progress will be amortized over the estimated useful lives of the respective assets when they are ready for their intended use.

When assets are retired, the assets and related allowances for depreciation and amortization are eliminated from the accounts and any resulting gain or loss is refl ected in operations. As of September 26, 2004, and September 28, 2003, approximately $11,913,000 and $7,952,000, respectively, of fully depreciated assets were in use.

Investments. All investments of permanently restricted net assets and unrestricted net assets board designated for investment are pooled in a long-term investment fund. Income on pooled investments is allocated to the general use or individual special use funds based on the average balance for each fund (see Note 9).

The percentage of board-designated funds distributed for unrestricted use was 3.75 percent and 4.25 percent in fi scal years 2004 and 2003, respectively, based on the trailing twelve-quarter market value of the unrestricted funds.

f ina nci a l r eport

Gains and losses on investments and investment income are reported as increases or decreases in unrestricted net assets unless their use is restricted by explicit donor stipulation.

Building Project Fund Investments. The net proceeds from the tax-exempt bond issuance (see Note 7) have been invested under a collateralized fl exible draw investment agreement. The interest rate is based on the Bond Market Association Municipal Swap Index Rate plus sixty-fi ve (65) basis points. Other investment income includes interest earned of $1,042,000 and $1,866,000 on these investments in fi scal years 2004 and 2003, respectively. Withdrawals are made to fund the Santa Monica building project.

Bond Issuance Costs. Bond issuance costs represent expenses incurred in connection with issuing RAND’s revenue bonds (see Note 7) and are being amortized over the term of the related bond issue. Unamortized costs were $3,173,000 and $3,265,000 at September 26, 2004, and September 28, 2003, respectively, and are included in other assets on the consolidated statements of fi nancial position.

Income Tax Status. RAND is exempt from income tax under Section 501(c)(3) of the U.S. Internal Revenue Code and corresponding California provisions and has qualifi ed for the 50 percent charitable contributions limitation. RAND has been classifi ed as an organization that is not a private foundation under Section 509(a)(1) and has been designated a “publicly supported” organization under Section 170(b)(1)(A)(vi) of the Internal Revenue Code.

Foreign Currency Translation. The assets and liabilities of RAND Europe are translated at year-end exchange rates; transactions are translated at the average exchange rates during the year. The accumulated unrealized gain included in unrestricted net assets from operations on the statement of fi nancial position was $442,000 and $199,000 as of September 26, 2004, and September 28, 2003, respectively. Gains and losses from foreign currency translation for the period are included in the statement of activities and changes in net assets.

Supplemental Cash Flow Information. Cash paid for interest was $1,180,000 in fi scal year 2004 and $1,779,000 in fi scal year 2003. These amounts are net of capitalized interest of $1,470,000 and $544,000, in the respective years.

Reclassifi cations. Certain prior-year amounts have been reclassifi ed to conform with the current-year presentation.

3. Billed and Unbilled Costs and Fees:The following table summarizes the components of billed and unbilled contract and grant costs and fees (in thousands):

September 26, September 28, 2004 2003 U.S. government agencies Billed $ 9,215 $ 7,123 Unbilled 10,554 12,416

19,769 19,539

State, local, and private sponsors Billed 10,983 6,909 Unbilled 9,072 6,389

20,055 13,298

$ 39,824 $ 32,837

Unbilled amounts principally represent recoverable costs and accrued fees billed in October 2004 and October 2003, respectively.

No signifi cant contract terminations are anticipated at present, and past contract terminations have not resulted in signifi cant unreimbursed costs.

4. Contributions Receivable:At September 26, 2004, and September 28, 2003, RAND included $7,706,000 and $3,437,000, respectively, of unconditional promises to give in the fi nancial statements as part of other receivables and other assets. The receivables are recorded net of the discount for future cash fl ows. The discount rate applied was 5 percent for pledges due within fi ve years and 7 percent for pledges due after fi ve years. Receivables expected in one year or less are included in other receivables and receivables expected after one year are included in other assets on the consolidated statements of fi nancial position.

Realization of the pledges is expected in the following periods (in thousands):


In one year or less $ 4,315 $ 2,218 Between one year and fi ve years 2,217 1,307 Five years or more 3,156 — Less discount (1,982) (88)

$ 7,706 $ 3,437

Contributions receivable are intended for the following uses (in thousands):


Temporarily restricted $ 4,454 $ 3,109 Permanently restricted 3,252 328

$ 7,706 $ 3,437


During the fi scal year ended September 26, 2004, RAND received payments of prior-year pledges in the amount of $1,418,000. No allowance for uncollectible pledges was deemed necessary at September 26, 2004, or September 28, 2003.

Donors have made conditional promises to give of $4,603,000 and $4,537,000 as of September 26, 2004, and September 28, 2003, respectively. These conditional pledges, which include revocable deferred gifts, are not recorded in these consolidated fi nancial statements.

5. Long-Term Investments:Cash and cash equivalents included in long-term investments consist of commercial paper, money market funds, and other short-term investments and are carried at cost, which approximates fair value.

Shares of bond funds and equity funds are presented at fair value. These funds consist of investments in both domestic and foreign equity securities and bonds. Approximately 24 percent of the long-term assets consist of foreign stocks and bonds. RAND also has equity interest in alternative investments that invest in securities and other instruments, some of which do not have a readily available market value. The alternative investments are carried at RAND’s portion of each investment’s net book value which approximates fair value. Cost of securities sold is determined by the specifi c identifi cation method.

As of September 26, 2004, and September 28, 2003, RAND had commitments outstanding to purchase alternative investments of $702,000 and $962,000, respectively.

Investment income is shown net of related expenses of $617,000 and $404,000, for the fi scal years ended September 26, 2004, and September 28, 2003, respectively.

Long-term investments consist of the following (in thousands):


Cash and cash equivalents $ 4,498 $ 6,228

Shares of bond funds, at fair value (cost, 2004—$ 78,479, and 2003—$ 70,031) 78,791 75,579

Shares of equity funds, at fair value (cost, 2004—$ 37,377, and 2003—$ 34,607) 46,356 37,037

Alternative investments (cost, 2004—$ 19,842, and 2003—$ 15,224) 29,644 22,411

$ 159,289 $ 141,255

6. Postretirement Benefi ts Other Than Pensions:In addition to providing certain retirement benefi ts, RAND provides health care benefi ts to certain employees who retire having met the required age and years of service with RAND. This coverage also applies to their dependents. Retirees may elect coverage under the Preferred Provider Organization, various HMOs, or reimbursement of individually purchased Medigap policies. Medicare becomes the primary coverage for retirees when they reach age 65. Retirees and dependents share substantially in the cost of coverage. RAND retains the right, subject to existing agreements, to change or eliminate these benefi ts.

RAND has not yet determined whether the benefi ts provided by this plan are actuarially equivalent to the drug benefi ts provided under the Medicare Prescription Drug Improvement and Modernization Act of 2003 (the Act). Therefore, the effects of the Act are not refl ected in the accrued liability and net periodic benefi t cost of the plan.

The following table sets forth the plan’s funded status reconciled with the amount shown in the consolidated statements of fi nancial position (in thousands):

September 26, September 28, 2004 2003 Change in benefi t obligation Benefi t obligation at beginning of year $ 16,586 $ 12,428 Service cost 548 378 Increase due to passage of time 1,036 824 Plan participants’ contributions 277 227 Amendments — — Actuarial (gain) loss 2,617 3,496 Benefi ts paid (893) (767)

Benefi t obligation at end of year 20,171 16,586

Change in plan assets Fair value of plan assets at beginning of year 3,863 3,293 Actual return on plan assets 328 490 Employer contributions 950 620 Plan participants’ contributions 277 227 Benefi ts paid (893) (767)

Fair value of plan assets at end of year 4,525 3,863

Funded status (15,646) (12,723) Unrecognized net actuarial gain 4,356 1,850 Unrecognized prior service cost (181) (275)

$ (11,471) $ (11,148)


The health care cost trend rate assumption has a signifi cant effect on the amounts reported. Increasing the assumed health care cost trend rates by one percentage point in each year would increase the service cost and increase due to passage-of-time components of the fi scal year 2004 expense by $367,000 and the accumulated postretirement benefi t obligation as of September 26, 2004, by $3,025,000. Decreasing the assumed health care cost trend rates by one percentage point in each year would decrease the service cost and decrease due to passage-of-time components of the fi scal year 2004 expense by $294,000 and the accumulated postretirement benefi t obligation as of September 26, 2004, by $2,493,000.

For measuring the liabilities, the health care cost trend rates were assumed to be 9.5 percent for the fi scal year ended September 26, 2004, for pre-65 and post-65 benefi ts, gradually declining to 5.0 percent for both after 7 years, and remaining at that level thereafter. The APBO discount rate was 6.10 percent and 6.35 percent at September 26, 2004, and September 28, 2003, respectively.

The net periodic postretirement benefi t cost (credit) for fi scal years ended September 26, 2004, and September 28, 2003, included the following components (in thousands):

2004 2003

Service cost-benefi ts attributed to service during the period $ 548 $ 378 Increase in the accumulated postretirement benefi t obligation to recognize the effects of the passage of time 1,036 824 Return on plan assets (318) (266) Recognition of gain 85 (70) Recognition of prior service cost (93) (93)

$ 1,258 $ 773

RAND contributes to a Voluntary Employee Benefi t Association irrevocable trust that is used to partially fund health care benefi ts for future retirees. In general, retiree health benefi ts are paid as covered expenses are incurred.

7. Borrowing Arrangements:Revenue Bonds. In July 2002, RAND issued $130,000,000 of tax-exempt revenue bonds to fi nance construction of its new Santa Monica facility. The payment of the principal and interest on the bonds is insured by a third party. Long-term debt, including unamortized bond premium, is as follows (in thousands):


California Infrastructure and Economic Development Fixed Rate Revenue Bonds, Series 2002A, issued in the original principal amount of $32,500,000, in connection with the construction of a new facility in Santa Monica, California, in July 2002; interest rates ranging from 3.50% to 5.50%; annual principal payments ranging from $345,000 to $1,905,000, beginning April 1, 2006, and ending April 1, 2042, including un-amortized bond premium of $177,000 and $184,000 as of September 26, 2004, and September 28, 2003, respectively $ 32,677 $ 32,684

California Infrastructure and Economic Development Bank Variable Rate Revenue Bonds, Series 2002B, issued in the original principal amount of $97,500,000, in connection with the construction of a new facility in Santa Monica, California, in July 2002; weighted average interest rate of 1.05% inception to date as of September 26, 2004; annual principal payments ranging from $1,430,000 to $4,400,000, beginning April 1, 2006, and ending April 1, 2042 97,500 97,500

$ 130,177 $ 130,184

Annual bond principal payments are required in the following fi scal years (in thousands):

2005 $ — 2006 2,415 2007 1,785 2008 1,835 2009 1,910 Thereafter 122,055

$ 130,000

Accrued interest payable relating to the bonds was $937,000 and $896,000 as of September 26, 2004, and September 28, 2003, respectively.

Line of Credit. RAND has an uncollateralized line of credit in the principal amount of $18,000,000 at September 26, 2004, which expires in June 2005. The line of credit contains covenants that require RAND to maintain a minimum amount of liquid assets and tangible net worth. There were no amounts outstanding at September 26, 2004, and September 28, 2003. Under the terms of the credit agreement, interest is payable monthly at either the prime rate less .75 percent or the LIBOR rate plus 1.5 percent, as selected by RAND. The largest


amounts drawn on the line-of-credit agreement were $11,700,000 and $8,400,000 in fi scal years 2004 and 2003, respectively. Interest expense was $46,000 and $29,000 for the fi scal years ended September 26, 2004, and September 28, 2003, respectively.

8. Commitments and Contingencies:Lease Commitments. Operating lease commitments, net of sublease income of $1,922,000, are as follows (in thousands):

2005 $ 7,818 2006 8,649 2007 8,701 2008 8,330 2009 7,972 Thereafter 46,372

$ 87,842

Future minimum rentals are primarily comprised of microcomputer, equipment, offi ce, and warehouse space leases. All property leases generally require RAND to pay for utilities, insurance, taxes, and maintenance. RAND’s net rental expense was $10,380,000 and $10,439,000 for the fi scal years ended September 26, 2004, and September 28, 2003, respectively.

Construction Commitment. RAND is obligated for $77,185,000 under the Final Guaranteed Maximum Price Contract related to the construction of a new headquarters facility in Santa Monica, California. As of September 26, 2004, and September 28, 2003, $74,039,000 and $33,689,000 had been expended under the contract and recorded as construction in progress. Also included in construction in progress are $3,023,000 and $1,552,000 for capitalized interest as of September 26, 2004, and September 28, 2003, respectively.

Other Commitments. Contract costs billed to government clients are subject to audit by the Defense Contract Audit Agency (“DCAA”). Resulting indirect cost adjustments, if any, are prorated to all contracts. Contract costs billed prior to September 28, 2003, have been audited and accepted. To date, there have been no signifi cant cost disallowances. In the opinion of management, contract costs billed subsequent to September 28, 2003, are allowable, and any potential cost disallowance would not materially affect RAND’s consolidated fi nancial position or results of operations.

RAND has certain contingent liabilities with respect to claims arising from the ordinary course of business. In the opinion of management, such contingent liabilities will not result in any loss that would materially affect RAND’s fi nancial position or results of operations.

Environmental Remediation. Under the terms of an agreement with the City of Santa Monica (the City) for the sale of land owned by RAND, RAND is responsible for the demolition of existing buildings on the site and environmental remediation with respect to the underlying land. In addition, RAND will be entitled to reimbursement from the City of specifi ed entitlement costs, including costs of energy-effi cient construction of the new headquarters building.

During 2004, RAND reevaluated its best estimate of costs related to the demolition and remediation and, based on the new information available, accrued additional expenses and liability of $2,600,000 included in other item—loss on sale of land and other liabilities. The estimated outstanding liability associated with the demolition and environmental remediation, net of the receivable for specifi ed entitlement costs, is $7,175,000 and $4,637,000 as of September 26, 2004, and September 28, 2003, respectively. In accordance with the terms of the agreement, an escrow account has been established to ensure performance of these matters.

9. Net Assets:Board-Designated Net Assets. Board-designated net assets are available for the following purposes (in thousands):


Designated for investment $ 122,602 $ 116,094

Designated for special use: RAND Education 2,139 1,027 RAND Institute for Civil Justice 1,946 1,834 National Security Research and Training 1,669 1,381 President’s Fund 478 407 RAND Center for Russia and Eurasia 105 364 Lectureship on Science Policy 100 80 Pardee RAND Graduate School 43 31 Paul O’Neill Alcoa Professorship in Policy Analysis 31 — Pardee Center for Longer Range Global Policy 24 — Other 12 22

6,547 5,146

$ 129,149 $ 121,240


Temporarily Restricted Net Assets. Temporarily restricted net assets are available for the following purposes (in thousands):


Pardee RAND Graduate School $ 2,252 $ 1,270 RAND Center for Middle East Public Policy 2,240 2,778 National Security Research and Training 1,610 1,603 RAND Center for Russia and Eurasia: RAND Business Leaders Forum 1,272 1,490 General support 396 — RAND Center for Domestic and International Health Security 1,224 2,032 RAND Headquarters 904 153 RAND Center for Asia Pacifi c Policy 683 707 RAND Health 542 274 RAND Child Policy 455 — Paul O’Neill Alcoa Professorship in Policy Analysis 348 201 RAND Institute for Civil Justice 286 358 Pardee Center for Longer Range Global Policy 255 449 RAND Center for Terrorism Risk Management Policy 168 30 Lectureship on Science Policy 136 144 RAND Alumni 133 121 RAND Drug Policy Research Center 119 214 RAND Infrastructure, Safety, and Environment 44 32 RAND Education 31 14 Other 84 13

$ 13,182 $ 11,883

Permanently Restricted Net Assets. Permanently restricted assets are shown below by the purpose designated by the donor. The assets are invested in perpetuity and the income is available to support the restricted activities (in thousands):


Pardee RAND Graduate School: General support $ 10,420 $ 1,574 Awards and Scholarships 2,254 970 National Security Research and Training 4,500 4,500 RAND Institute for Civil Justice 4,125 4,125 Pardee Center for Longer Range Global Policy 3,670 3,670 Paul O’Neill Alcoa Professorship in Policy Analysis 2,479 2,479 RAND—general support 2,410 1,396 RAND Center for Russia and Eurasia 250 250 Lectureship on Science Policy 246 246 RAND Education 241 241 Other 31 31

$ 30,626 $ 19,482

10. Employee Retirement Plans:RAND has three defi ned contribution employee plans: a Qualifi ed Retirement Plan (“QRP”), a Supplemental Retirement Annuity Plan (“SRAP”), and a Nonqualifi ed Supplementary Plan (“NSP”). Most full-time, regular employees are eligible to participate in the QRP and SRAP. Certain employees are eligible to participate in the NSP. RAND has reserved the right to terminate the plans at any time, but in such an event, the benefi ts already purchased by the participant and contributions already made by RAND would not be affected. The QRP and the NSP are entirely RAND-fi nanced. RAND’s contributions to the Plans for eligible employees range from 5 percent to 14 percent of salaries, depending on the level of wages and age of the participating employee. RAND’s contributions to the QRP vest at the earlier of retirement or four years of service. Vesting begins after two years of service and increases weekly to 100 percent at the end of four years of service. The NSP vests under various conditions specifi ed in the plan. All contributions made by RAND are charged to operations. RAND’s contributions were $8,865,000 and $8,590,000 for the fi scal years ended September 26, 2004, and September 28, 2003, respectively. The SRAP only requires employee contributions and RAND does not contribute to this plan.

11. Subsequent Event:On September 29, 2004, RAND obtained the certifi cation of occupancy for its new facility in Santa Monica, California. In relation to that event, $3,127,000 of buildings and improvements and $6,387,000 of equipment as of September 26, 2004, were sold or retired. A loss of $323,000 was recorded in fi scal year 2005 relating to those transactions. Construction in progress of $105,437,000 was placed in service in fi scal year 2005.

For more information about philanthropic support to RAND

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2004 Annual Report Team

PEG SCHUMACHERSpecial Projects Manager, Offi ce of External Affairs

JOHN GODGESCommunications Analyst

STEVE BAECKEditor

RON MILLERArt Director

PETER SORIANODesign and Production

Photo Credits

AP/WIDE WORLD PHOTOS/CHITOSE SUZUKI

Young cellist, Symphony Hall, Boston, November 2004 (page 4)

AP/WIDE WORLD PHOTOS/U.S. COAST GUARDSearch mission off Nantucket, Massachusetts, December 2004 (page 6)

AP/WIDE WORLD PHOTOS/RIC FRANCISSuburban sprawl, Corona, California, December 2002 (page 9)

U.S. DEPARTMENT OF DEFENSE/TECHNICAL SERGEANT

JUSTIN D. PYLE/U.S. AIR FORCEStaff Sergeant Sally McCabe, Lackland Air Force Base, Texas, October 2004 (page 11)

AP/WIDE WORLD PHOTOS/MICHAEL ALBANSMemorial service, World Trade Center site, New York City, September 2004 (page 13)

AP/WIDE WORLD PHOTOS/NICK UTHoliday travelers, Los Angeles International Airport, December 2004 (page 15)

AP/WIDE WORLD PHOTOS/JASON HIRSCHFELDReading lesson, Newport News, Virginia, May 2004 (page 16)

AP/WIDE WORLD PHOTOS/EMILIO MORENATTIWoman reading Koran, Kabul, Afghanistan, October 2004 (page 18)

DIANE BALDWINSheila Kirby (inside front cover)

James Thomson and Ann McLaughlin Korologos (page 2)

Kevin McCarthy (page 5)

Ashlesha Datar and Roland Sturm (page 8)

Beth Asch and James Hosek (page 10)

Lloyd Dixon (page 12)

Donald Stevens (page 14)

Thomas K. Glennan, Jr. (page 17)

Narayan Sastry, Jeff Marquis, and Nell Griffi th Forge (page 28, left)

Amy Pascal and Tony Pascal (page 32)

Pardee RAND Graduate School (page 36)

Bruce Hoffman (back cover)

CRIS MOLINADavid Ortiz and Henry Willis (page 7)

Angel Rabasa (page 19)

Dan Gonzales, Terri Tanielian, and Walt Perry (page 28, right)

Frank Carlucci and Rollie Lal (page 33)

JON SOOHOOBruce Karatz (page 31)

B U I L D I N G O N A L E G A C Y

(Front cover) RAND researcher Harriet Kagiwada, circa 1960

(Inside front cover) Sheila Kirby, Associate Director, RAND Education, circa 2004

(Back cover) Bruce Hoffman, Director, Washington Offi ce, circa 2004

(Inside back cover) RAND researcher Amron Katz, circa 1950

Strategic Analysis:The Long-TermCompetition

Remotely PilotedVehicles

Preliminary Design of anExperimental World-CirclingSpaceship (1946)

StrategicBombingAnalysis

Exotic Materialsand Fuels

Effi ciency and Economyin Government ThroughNew Budgeting andAccounting Procedures

Missiles vs. Aircraft

Air Defense Strategic Offensive Forces Study

Packet Switching:Seed of the Internet

METRIC

The Operational Code of the Politburo

Problem-Solvingwith Monte CarloTechniques

InformationProcessingLanguage (IPL)

DetectingNuclear Tests

LinearProgrammingand Extensions

Sea-Based vs. Land-Based Tactical Air

Computer Security Manpower and Personnel Policies

JOHNNIACDigitalComputer

ReconnaissanceSatellites

First On-Line,Time-SharedComputer System

Economics ofDefense in theNuclear Age

Remote AreaConfl ict Space Defense

A Proposed Strategyfor the Acquisitionof Avionics Equipment

Air ForceLong-RangePlanning Studies System

Acquisition

Selection andUse of StrategicAir Bases

SystemsAnalysis

History of SovietNuclear Research RAND Tablet:

Communicatingwith Computers in Real Time Via Hand-Printed Text

System Analysisand Public Policy Space

Systems

Future ofCableTelevision

Vulnerabilityof U.S. ArmyEquipmentPrepositioned inCentral Europe

Air Force Health Care System

SystemsResearchLaboratory Military R&D

PoliciesICBM Modernizationand Basing Concepts

Air ReserveForces Study

Alternative LogisticsStructures: ANALOGS 80

HousingAssistanceSupplyExperiment

AerialRefueling

Design of MultipleIndependently TargetableReentry Vehicles

AlternativeApproachesto the Defenseof Europe

ElectromagneticPulse (EMP)

Strategy in the Missile Age

JOSS (JOHNNIACOpen Shop System)

NATO Force PlanningStrategic Force-Building and CrisisManagement

Mappingthe Planets

Water QualitySimulation Model

ComputerPrivacy andSecurity

Defense of theTactical Air Forcein Europe

PPBS

SpaceHandbook

DelphiMethod Air-Launched vs.

Ground-LaunchedSatellite Boosters

Evaluationsand Optionsfor Vietnam

New York CityPolice Project

Strategic AirliftNeeds andAlternativesfor the 1980s

Tactical AirCapabilities

STAR: Impact ofAlternative IntercityShort-HaulTransportationSystems

All-VolunteerForce

Handbook onthe Theory ofGames

ExpertJudgment

Game Theory

A Million RandomDigits with 100,000 Normal Deviates

CORONAProject

DynamicProgramming

Water Supply:Economics,Technology,and Policy

SimulationsUsing SIMSCRIPT

Soviet CyberneticsTechnology

Soviet MilitaryResearch and Development

Private SecurityIndustry

HealthInsuranceExperiment

First Project RAND letter contract (to Douglas Aircraft Co.)

RAND Corporation established

First non–Air Force study (for the Atomic Energy Commission)

Headquarters opens at 1700 Main Street, Santa Monica

Systems Development Division created; spun off as SDC in 1957

Studies for ARPA, NASA, OSD, AID, NSF, and NIH begin

Washington Defense Research Division established

New York City-RAND Institute established

RAND Graduate School founded

Domestic Research Division established; includes programs on Education, Health, and Labor & Population

National Security Research Division established

Institute for Civil Justice established

National Defense Research Institute and the Arroyo Center established

European American Center opens (later becomes RAND Europe)

Critical Technologies Institute established

Center for Domestic and International Health Security created

RAND-Qatar Policy Institute opens

RAND division on Infrastructure, Safety, and the Environment established

RAND moves into new headquarters at 1776 Main Street, Santa Monica

Changing Role of Information in Warfare

Rapidly Deployable Ground Forces

Counterterrorism

Social Security Concerns

Homeland Security

Nation-Building in Iraq

Federal ProgramsSupporting EducationalChange

Policy Options andthe Impact of NationalHealth Insurance

Computer ResourceManagement Study

SchedulingAircrews andAircraft

Water ResourceManagement inthe Netherlands

TSAR/TSARINAAir Base AttackSimulation Models

Red StrategicCampaign Analysis

Use and Misuse ofCalifornia’s WaterResources

Impact of Deductibles onthe Demand for Medical Care

Preventive DentalCare for Children

Malaysian FamilyLife Survey

Equity in PublicSchool Finance

Career Criminals

Asian Security: Policiesfor a Time of Transition

Court-CenteredArbitration

Ballistic MissileBasing Alternatives

Resolution of MedicalMalpractice Claims

Revitalization ofCleveland’s Economy

Workers’ Compensationand Workplace Safety

Strategic Defenseand Deterrence

Dyna-METRIC

RAND StrategyAssessment Center

Survivability andUtility of Tactical Air

Costs of AsbestosLitigation

Teen Drug Abuse andSmoking Prevention:Project ALERT

Civil JuryVerdicts andAwards

LHX: Army LightAttack Helicopter

Toward Ethicsand Etiquette forElectronic Mail

Terrorism in theUnited States

Next Phase of U.S.–Soviet Relations

Closing the Gap: FortyYears of EconomicProgress for Blacks

EffectiveTeacherSelection

Air CrashLitigation

PunitiveDamages

Prevalence,Predictability, andPolicy Implicationsof Recidivism

A Framework forDefense Planning:Strategies-to-Tasks

Health Insuranceand the Demandfor Medical Care

Costs ofTreating AIDSUnder Medicaid

Leadership Change inNorth Korean Politics

Conventional ArmsControl Revisited

Appropriatenessof Acute Medical Care

RecruitingEffects of ArmyAdvertising

The New Calculus:Analyzing Airpower’sChanging Role

Economics ofDrug Dealing

No-Fault Approachesto Compensating AutoAccident Injuries

Immigration: Effects on Education, Jobs, and Government Spending

Evaluation ofCHAMPUSReform Initiative

FORWARD–Freight Optionsfor Road, Water, and Railfor the Dutch

Cost and Use ofCapitated MedicalServices

Decentralizationand Accountabilityin Public Education

Emerging Technologyand Arms Control

OperationalIssues for GPS

Urban America:Policy Choices forLos Angeles andthe Nation

Lessonsfrom theGulf War

Superfund andTransaction Costs

Sexual Orientationand U.S. MilitaryPersonnel Policy

VelocityManagement

NATOExpansion

Three Strikesand You’re Out

Decline of U.S.Machine ToolIndustry

Universal Access toE-Mail: Feasibility andSocietal Implications

Quality ofHealth Care

Unequal Wealthand Incentivesto Save

HIV Cost and ServicesUtilization Study(HCSUS)

Mandatory MinimumSentences for Drug Cases

Defense BaseClosures

Fiscal Federalism andthe Social Safety Net

Military OperationsOther Than War

Fiscal Crisis inHigher Education

Preparing forConfl ict in theInformation Age

Interventions inthe First ThreeYears of Life

Judicial Case ManagementUnder the Civil JusticeReform Act

QuadrennialDefense Review

Effective PowerGeneration UnderDeregulation

LeanLogistics

Large-Scale Education Testing

Treatment of Depression

How Americans Were Affected by the Events of 9/11

California Energy Crisis

Education Vouchers and Charter Schools

Cost of Prescription Drug Plans

Reducing Violent Gang-Related Crime

Health Care Quality

Education Reform In Qatar

Costs of Obesity

Medicare Payment for Rehabilitation

The Changing Workplace

Parity Legislation for Mental Health

Inadequate Compensation for Worker Injuries

Training Emergency Responders

Public Health Preparedness

Safety of Ephedra

Military Transformation

Senior Leadership Development in the DoD

Alternative for the Next Generation Gunship

RAND opens an offi ce in Pittsburgh, Pennsylvania








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Building on a Legacy - RAND Corporation€¦ · Building on a Legacy ... 215 Lexington Avenue, 21st Floor New York, NY 10016-6023 V ... Language (IPL) Detecting Nuclear Tests Linear

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