An Analysis of the Dismal Theorem

In a series of papers, Martin Weitzman has proposed a Dismal Theorem. The general idea is that, under limited conditions concerning the structure of uncertainty and preferences, society has an indefinitely large expected loss from high-consequence, low-probability events. Under such conditions, standard economic analysis cannot be applied. The present study is intended to put the Dismal Theorem in context and examine the range of its applicability, with an application to catastrophic climate change. I conclude that Weitzman makes an important point about selection of distributions in the analysis of decision-making under uncertainty. However, the conditions necessary for the Dismal Theorem to hold are limited and do not apply to a wide range of potential uncertain scenarios.Dismal theorem, Uncertainty, Climate change, Catastrophes

Pandemic Emotions: The Good, The Bad, and The Unconscious —Implications for Public Health, Financial Economics, Law, and Leadership

Pandemics lead to emotions that can be good, bad, and unconscious. This Article offers an interdisciplinary analysis of how emotions during pandemics affect people’s responses to pandemics, public health, financial economics, law, and leadership. Pandemics are heart-breaking health crises. Crises produce emotions that impact decision-making. This Article analyzes how fear and anger over COVID-19 fueled anti-Asian and anti-Asian American hatred and racism. COVID-19 caused massive tragic economic, emotional, mental, physical, and psychological suffering. These difficulties are interconnected and lead to vicious cycles. Fear distorts people’s decision readiness, deliberation, information acquisition, risk perception, and thinking. Distortions affect people’s financial, health, and political decisions, causing additional fears. Emotions have direct health impacts and indirect behavioral impacts, which in turn have their own health impacts. People differ vastly in whether, how much, and when they experience anxiety, complacency, and panic during pandemics. A common path is to feel some anxiety initially, then panic, and finally become complacent. This Article advocates these responses to pandemics: (1) paying people directly monthly pandemic financial assistance, (2) encouraging people to practice mindfulness, (3) gently enforcing Non-Pharmaceutical Interventions, (4) fostering accurate information acquisition about pandemics, and (5) applying psychological game theory to better understand emotions that depend on beliefs about leadership

15 years of new growth economics: What have we learnt?

This paper evaluates the empirical and theoretical contributions of the Economic Growth Literature since the publication of Paul Romer’s seminal paper in 1986.Economic gowth, technological progress, empirics of growth

Regional approaches to the COVID-19 management : East African Community (EAC) and European Union (EU)

The article compares the way COVID-19 has been managed in the East African Community and in the EU. How were the initial measures in each of the regions and what have been the consequences of the measures adopted, especially those related to confinement and vaccination. It discusses how the strength of European integration and the notable economic and technological development of its member states have provided a comparative advantage over the resources available to the East African Community. They conclude that, in addition to the undoubted importance of advancing in economic development, continuing to deepen regional cooperation in African territory would be an opportunity to better manage future threats.L'article compara la manera com s'ha gestionat la COVID-19 a la Comunitat d'Àfrica Oriental ia la UE. Com van ser les mesures inicials a cadascuna de les regions i quines han estat les conseqüències que han tingut les mesures adoptades, especialment les relacionades amb el confinament i la vacunació. Planteja com la solidesa de la integració europea i el notable desenvolupament econòmic i tecnològic dels seus Estats membres han suposat un avantatge comparatiu respecte als recursos amb què han comptat la Comunitat de l'Àfrica Oriental. Conclouen que, a més de la importància indubtable d'avançar en el desenvolupament econòmic, continuar aprofundint en la cooperació regional en territori africà suposaria una oportunitat per poder gestionar millor amenaces futures.El artículo compara la forma en que se ha gestionado la COVID-19 en la Comunidad de África Oriental y en la UE. Cómo fueron las medidas iniciales en cada una de las regiones y cuáles han sido las consecuencias que han tenido las medidas adoptadas, especialmente las relacionadas con el confinamiento y la vacunación. Plantea cómo la solidez de la integración europea y el notable desarrollo económico y tecnológico de sus Estados miembros han supuesto una ventaja comparativa, respecto a los recursos con los que han contado la Comunidad de África Oriental. Concluyen que, además de la indudable importancia de avanzar en el desarrollo económico, seguir profundizando en la cooperación regional en territorio africano supondría una oportunidad para poder gestionar mejor futuras amenazas

Macro-Risks: The Challenge for Rational Risk Regulation

Drawing on the recent financial crisis, we introduce the concept of macro-risk. We distinguish between micro-risks, which can be managed within conventional economic frameworks, and macro-risks, which threaten to disrupt economic systems so much that a different approach is required. We argue that catastrophic climate change is a prime example of a macro-risk. Research by climate scientists suggests disturbingly high likelihoods of temperature increases and sea level rises that could cause the kinds of systemic failures that almost occurred with the financial system. We suggest that macro-risks should be the principal concern of rational risk assessment and management, but they are not. The principal analytical tool, cost-benefit analysis using expected values, is far less valuable for addressing macro-risks than micro-risks because it fails to adequately treat tail-risks that are capable of disrupting the entire economy. We note the difficulty of assessing and responding to macro-risks such as catastrophic climate change, and we offer several proposals for improving macro-risk assessment methods and the information available to policy makers

Steadfastly We Serve: Library Resilience during the 1918-19 Spanish Influenza Outbreak and Current COVID-19 Pandemic

Disruptions occur regularly, regardless of size of impact. Disruptions libraries face can include budget cuts, environmental disasters, building issues, and technological failures. Any type of disruption can and will dampen the level of service provided by libraries but the ability to quickly overcome the disruption while moving forward with organizational goals is vital. Resilience in organizations is not a new concept, but the high level of resilience exuded by libraries despite the disruptions they face is worth noting. The Spanish Influenza and COVID-19 pandemics have significantly disrupted library operations. The similarities between the two pandemics are astounding and in both cases, libraries did, and continue to, go beyond to provide high levels of service to their communities. This article will highlight the resilient nature of libraries and provide examples of how libraries combatted the issues they faced during the Spanish Influenza and COVID-19 outbreaks