Determinants of Long-term Economic Development: An Empirical Cross-country Study Involving Rough Sets Theory and Rule Induction

Empirical findings on determinants of long-term economic growth are numerous, sometimes inconsistent, highly exciting and still incomplete. The empirical analysis was almost exclusively carried out by standard econometrics. This study compares results gained by cross-country regressions as reported in the literature with those gained by the rough sets theory and rule induction. The main advantages of using rough sets are being able to classify classes and to discretize. Thus, we do not have to deal with distributional, independence, (log-)linearity, and many other assumptions, but can keep the data as they are. The main difference between regression results and rough sets is that most education and human capital indicators can be labeled as robust attributes. In addition, we find that political indicators enter in a non-linear fashion with respect to growth.Economic growth, Rough sets, Rule induction

Systemic trade-risk of critical resources

In the wake of the 2008 financial crisis the role of strongly interconnected markets in fostering systemic instability has been increasingly acknowledged. Trade networks of commodities are susceptible to deleterious cascades of supply shocks that increase systemic trade-risks and pose a threat to geopolitical stability. On a global and a regional level we show that supply risk, scarcity, and price volatility of non-fuel mineral resources are intricately connected with the structure of the world-trade network of or spanned by these resources. On the global level we demonstrate that the scarcity of a resource, as measured by its trade volume compared to extractable reserves, is closely related to the susceptibility of the trade network with respect to cascading shocks. On the regional level we find that to some extent the region-specific price volatility and supply risk can be understood by centrality measures that capture systemic trade-risk. The resources associated with the highest systemic trade-risk indicators are often those that are produced as byproducts of major metals. We identify significant shortcomings in the management of systemic trade-risk, in particular in the EU

Efficiency and Economies of Scale in Academic Knowledge Production

This paper investigates the properties of knowledge production in academic research using a panel of 17 OECD countries reaching from 1989 to 1996. The production process is modelled using capital and labour as inputs and the number of published international journal articles and/or the number of graduates as outputs. First, we test for the existence of economies of scale in academic research. Our results give indication for decreasing returns to scale in the production of new academic knowledge. This empirical result might contribute to the recent controversy on the properties of the innovation technology used in endogenous growth models. Second, we determine efficiency scores for each individual country. For the estimation of efficiencies we apply parametric and non-parametric methods. Although results differ slightly with the method used, a stable efficiency ranking is found.Academic Research, Education, Knowledge Production, Efficiency, Endogenous Growth

Agricultural adaptation to climate policies under technical change

This study uses a partial equilibrium model of the US agricultural sector to examine how technical progress and carbon price levels affect land management adaptation. We find that the climate policy range, over which a more extensive agriculture is preferred, decreases as crop yields increase. Second, technical progress with traditional crops offers less mitigation benefits than progress with mitigation options themselves. Third, while agricultural producers benefit from technical progress on energy crops, they fare worse if technical progress improves traditional crops and low carbon prices.Technical Change, Producer Adaptation, Agricultural Sector Model, Carbon Sequestration, Mathematical Programming, Climate Policy Simulation

The risks of multiple breadbasket failures in the 21st century: a science research agenda

Thomson ReutersThis report stems from an international, interdisciplinary workshop organized by Knowledge Systems for Sustainability and hosted by the Frederick S. Pardee Center for the Study of the Longer-Range Future, with support from Thomson Reuters, in November 2014.Written by an interdisciplinary team of leading researchers, this report describes a science research agenda toward improved probabilistic modeling and prediction of multiple breadbasket failures and the potential consequences for global food systems. The authors highlight gaps in the existing empirical foundation and analytical capabilities and offer general approaches to address these gaps. They also suggest the need to fuse diverse data sources, recent observations, and new suites of dynamic models capable of connecting agricultural outcomes to elements of the global food system. The goal of these efforts is to provide better information concerning potential systemic risks to breadbaskets in various regions of the world to inform policies and decisions that have the potential for global impacts

Large-Scale Modelling of Global Food Security and Adaptation under Crop Yield Uncertainty

Concerns about future food security in the face of volatile and potentially lower yields due to climate change have been at the heart of recent discussions on adaptation strategies in the agricultural sector. While there are a variety of studies trying to quantify the impact of climate change on yields, some of that literature also acknowledges the fact that these estimates are subject to substantial uncertainty. The question arises how such uncertainty will affect decision-making if ensuring food security is an explicit objective. Also, it will be important to establish, which options for adaptation are most promising in the face of volatile yields. The analysis is carried out using a stochastic version of the Global Biosphere Management Model (GLOBIOM) model, which is a global recursive dynamic partial equilibrium bottom-up model integrating the agricultural, bio-energy and forestry sectors with the aim to give policy advice on global issues concerning land use competition between the major land-based production sectors. The source of stochasticity is the interannual crop yield variability, making it more risky to rely on average yields and thus requiring stochastic optimization techniques. The results indicate that food security requires overproduction to meet minimum food supply constraints also in scenarios of negative yield shocks, where the additional land needed is sourced from forests and other natural land. Trade liberalization and enhanced irrigation both appear to be promising food supply stabilization, and hence land saving, mechanisms in the face of missing storage.food security, food price volatility, optimization under uncertainty, adaptation, land use change, Crop Production/Industries, Food Security and Poverty,