69,045 research outputs found
Simple Computational Methods for Measuring the Difference of Empirical Distributions: Application to Internal and External Scope Tests in Contingent Valuation
This paper develops a statistically unbiased and simple method for measuring the difference of independent empirical distributions estimated by bootstrapping or other simulation approaches. This complete combinatorial method is compared with other unbiased and biased methods that have been suggested in the literature, first in Monte Carlo simulations and then in a field test of external and internal scope testing in contingent valuation. Tradeoffs between methods are discussed. When the empirical distributions are not independent a straightforward difference test is suggested.Research Methods/ Statistical Methods,
Average vs. Marginal Risk Aversion: Reconciling Simultaneously Risk Averse and Risk Loving Behavior
Risk and Uncertainty,
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Jointness of Growth Determinants
Model uncertainty arises from uncertainty about correct economic theories, data issues and empirical specification problems. This paper investigates mutual dependence or jointness among variables in explaining the dependent variable. Jointness departs from univariate measures of variable importance, while addressing model uncertainty and allowing for generally unknown forms of dependence. Positive jointness implies that regressors are complements, representing distinct, but interacting economic factors. Negative jointness implies that explanatory variables are substitutes and act as proxies for a similar underlying mechanism. In a cross-country dataset, we show that jointness among 67 determinants of growth is important, ffecting inference and economic policy
The Precautionary Principle (with Application to the Genetic Modification of Organisms)
We present a non-naive version of the Precautionary (PP) that allows us to
avoid paranoia and paralysis by confining precaution to specific domains and
problems. PP is intended to deal with uncertainty and risk in cases where the
absence of evidence and the incompleteness of scientific knowledge carries
profound implications and in the presence of risks of "black swans", unforeseen
and unforeseable events of extreme consequence. We formalize PP, placing it
within the statistical and probabilistic structure of ruin problems, in which a
system is at risk of total failure, and in place of risk we use a formal
fragility based approach. We make a central distinction between 1) thin and fat
tails, 2) Local and systemic risks and place PP in the joint Fat Tails and
systemic cases. We discuss the implications for GMOs (compared to Nuclear
energy) and show that GMOs represent a public risk of global harm (while harm
from nuclear energy is comparatively limited and better characterized). PP
should be used to prescribe severe limits on GMOs
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