Disease, Disparities and Decision Making: Mandatory HIV Testing of Prospective Immigrants to Canada

Étude de cas / Case study

Individual Decision-Making and Inflation Persistence

The traditional task of a central bank is to preserve price stability and, in doing so, not to impair the real economy more than necessary. To meet this challenge, it is of great relevance whether inflation is only driven by inflation expectations and the current output gap or whether it is, in addition, influenced by past inflation. In the former case, as described by the New Keynesian Phillips curve, the central bank can immediately and simultaneously achieve price stability and equilibrium output, the so-called ‘divine coincidence’ (Blanchard and Galí 2007). In the latter case, the achievement of price stability is costly in terms of output and will be pursued over several periods. Similarly, it is important to distinguish this latter case, which describes ‘intrinsic’ inflation persistence, from that of ‘extrinsic’ inflation persistence, where the sluggishness of inflation is not a ‘structural’ feature of the economy but merely ‘inherited’ from the sluggishness of the other driving forces, inflation expectations and output. ‘Extrinsic’ inflation persistence is usually considered to be the less challenging case, as policy-makers are supposed to fight against the persistence in the driving forces, especially to reduce the stickiness of inflation expectations by a credible monetary policy, in order to reestablish the ‘divine coincidence’. The scope of this dissertation is to contribute to the vast literature and ongoing discussion on inflation persistence: Chapter 1 describes the policy consequences of inflation persistence and summarizes the empirical and theoretical literature. Chapter 2 compares two models of staggered price setting, one with a fixed two-period duration and the other with a stochastic duration of prices. I show that in an economy with a timeless optimizing central bank the model with the two-period alternating price-setting (for most parameter values) leads to more persistent inflation than the model with stochastic price duration. This result amends earlier work by Kiley (2002) who found that the model with stochastic price duration generates more persistent inflation in response to an exogenous monetary shock. Chapter 3 extends the two-period alternating price-setting model to the case of 3- and 4-period price durations. This results in a more complex Phillips curve with a negative impact of past inflation on current inflation. As simulations show, this multi-period Phillips curve generates a too low degree of autocorrelation and too early turnings points of inflation and is outperformed by a simple Hybrid Phillips curve. Chapter 4 starts from the critique of Driscoll and Holden (2003) on the relative real-wage model of Fuhrer and Moore (1995). While taking the critique seriously that Fuhrer and Moore’s model will collapse to a much simpler one without intrinsic inflation persistence if one takes their arguments literally, I extend the model by a term for inequality aversion. This model extension is not only in line with experimental evidence but results in a Hybrid Phillips curve with inflation persistence that is observably equivalent to that presented by Fuhrer and Moore (1995). In chapter 5, I present a model that especially allows to study the relationship between fairness attitudes and time preference (impatience). In the model, two individuals take decisions in two subsequent periods. In period 1, both individuals are endowed with resources and are able to donate a share of their resources to the other individual. In period 2, the two individuals might join in a common production after having bargained on the split of its output. The size of the production output depends on the relative share of resources at the end of period 1 as the human capital of the individuals, which is built by means of their resources, cannot fully be substituted one against each other. Therefore, it might be rational for a well-endowed individual in period 1 to act in a seemingly ‘fair’ manner and to donate own resources to its poorer counterpart. This decision also depends on the individuals’ impatience which is induced by the small but positive probability that production is not possible in period 2. As a general result, the individuals in the model economy are more likely to behave in a ‘fair’ manner, i.e., to donate resources to the other individual, the lower their own impatience and the higher the productivity of the other individual. As the (seemingly) ‘fair’ behavior is modelled as an endogenous outcome and as it is related to the aspect of time preference, the presented framework might help to further integrate behavioral economics and macroeconomics.

An fMRI Study of Emotional engagement in decicion-making

It has been suggested that decision making depends on sensitive feelings associated with cognitive processing rather than cognitive processing alone. From human lesions, we know the medial anterior inferior-ventral prefrontal cortex processes the sensitivity associated with cognitive processing, it being essentially responsible for decision making. In this fMRI (functional Magnetic Resonance Image) study 15 subjects were analyzed using moral dilemmas as probes to investigate the neural basis for painful-emotional sensitivity associated with decision making. We found that a network comprising the posterior and anterior cingulate and the medial anterior prefrontal cortex was significantly and specifically activated by painful moral dilemmas, but not by non-painful dilemmas. These findings provide new evidence that the cingulate and medial anterior prefrontal are involved in processing painful emotional sensibility, in particular, when decision making takes place. We speculate that decision making has a cognitive component processed by cognitive brain areas and a sensitivity component processed by emotional brain areas. The structures activated suggest that decision making depends on painful emotional feeling processing rather than cognitive processing when painful feeling processing happens

A formalization for multi-agent decision support in cooperative environments. A framework for situated agents

La tesis propone un marco de trabajo para el soporte de la toma de decisiones adecuado para soportar la ejecución distribuida de acciones cooperativas en entornos multi-agente dinámicos y complejos. Soporte para la toma de decisiones es un proceso que intenta mejorar la ejecución de la toma de decisiones en escenarios cooperativos. Este proceso ocurre continuamente en la vida diaria. Los humanos, por ejemplo, deben tomar decisiones acerca de que ropa usar, que comida comer, etc. En este sentido, un agente es definido como cualquier cosa que está situada en un entorno y que actúa, basado en su observación, su interpretación y su conocimiento acerca de su situación en tal entorno para lograr una acción en particular.Por lo tanto, para tomar decisiones, los agentes deben considerar el conocimiento que les permita ser consientes en que acciones pueden o no ejecutar. Aquí, tal proceso toma en cuenta tres parámetros de información con la intención de personificar a un agente en un entorno típicamente físico. Así, el mencionado conjunto de información es conocido como ejes de decisión, los cuales deben ser tomados por los agentes para decidir si pueden ejecutar correctamente una tarea propuesta por otro agente o humano. Los agentes, por lo tanto, pueden hacer mejores decisiones considerando y representando apropiadamente tal información. Los ejes de decisión, principalmente basados en: las condiciones ambientales, el conocimiento físico y el valor de confianza del agente, provee a los sistemas multi-agente un confiable razonamiento para alcanzar un factible y exitoso rendimiento cooperativo.Actualmente, muchos investigadores tienden a generar nuevos avances en la tecnología agente para incrementar la inteligencia, autonomía, comunicación y auto-adaptación en escenarios agentes típicamente abierto y distribuidos. En este sentido, esta investigación intenta contribuir en el desarrollo de un nuevo método que impacte tanto en las decisiones individuales como colectivas de los sistemas multi-agente. Por lo tanto, el marco de trabajo propuesto ha sido utilizado para implementar las acciones concretas involucradas en el campo de pruebas del fútbol robótico. Este campo emula los juegos de fútbol real, donde los agentes deben coordinarse, interactuar y cooperar entre ellos para solucionar tareas complejas dentro de un escenario dinámicamente cambiante y competitivo, tanto para manejar el diseño de los requerimientos involucrados en las tareas como para demostrar su efectividad en trabajos colectivos. Es así que los resultados obtenidos tanto en el simulador como en el campo real de experimentación, muestran que el marco de trabajo para el soporte de decisiones propuesto para agentes situados es capaz de mejorar la interacción y la comunicación, reflejando en un adecuad y confiable trabajo en equipo dentro de entornos impredecibles, dinámicos y competitivos. Además, los experimentos y resultados también muestran que la información seleccionada para generar los ejes de decisión para situar a los agentes, es útil cuando tales agentes deben ejecutar una acción o hacer un compromiso en cada momento con la intención de cumplir exitosamente un objetivo colectivo. Finalmente, algunas conclusiones enfatizando las ventajas y utilidades del trabajo propuesto en la mejora del rendimiento colectivo de los sistemas multi-agente en situaciones tales como tareas coordinadas y asignación de tareas son presentadas.

Mid-term Evaluation of the 2009-14 European Parliament: Legislative activity and decision-making dynamics. CEPS Special Report, 23 July 2012

This special report analyses legislative activity in the European Union and coalition formation in the European Parliament (EP) during the first half of the 7th legislative term, 2009-14. Co-decision is now the ordinary legislative procedure, not by name only: it was deployed on 90% of new proposals in 2010 and 86% in 2011, which suggests that the EP is now more influential than ever. There are differences in the degree of empowerment across committees, however. This report looks at the legislative workload of selected committees as an indicator of change in their influence, identifying which of them won and which lost out in terms of the quantity and type of legislation they tackle.

Deconstruction plan assessment using multi-criteria decision-making methods

The purpose of this paper is to present two multi-criteria decision-making models, including an Analytic Hierarchy Process (AHP) model and an Analytic Network Process (ANP) model for the assessment of deconstruction plans and to make a comparison between the two models with an experimental case study. Deconstruction planning is under pressure to reduce operation costs, adverse environmental impacts and duration, in the meanwhile to improve productivity and safety in accordance with structure characteristics, site conditions and past experiences. To achieve these targets in deconstruction projects, there is an impending need to develop a formal procedure for contractors to select a most appropriate deconstruction plan. Because numbers of factors influence the selection of deconstruction techniques, engineers definitely need effective tools to conduct the selection process. In this regard, multi-criteria decision-making methods such as AHP have been adopted to effectively support deconstruction technique selection in previous researches. in which it has been proved that AHP method can help decision-makers to make informed decisions on deconstruction technique selection based on a sound technical framework. In this paper, the authors present the application and comparison of two decision-making models including the AHP model and the ANP model for deconstruction plan assessment. The paper concludes that both AHP and ANP are viable and capable tools for deconstruction plan assessment under the same set of evaluation criteria. However, although the ANP can measure relationship among selection criteria and their sub-criteria, which is normally ignored in the AHP, the authors also indicate that whether the ANP model can provide a more accurate result should be examined in further research.

Saccadic eye movements as an index of perceptual decision-making

One of the most common decisions we make is the one about where to move our eyes next. Here we examine the impact that processing the evidence supporting competing options has on saccade programming. Participants were asked to saccade to one of two possible visual targets indicated by a cloud of moving dots. We varied the evidence which supported saccade target choice by manipulating the proportion of dots moving towards one target or the other. The task was found to become easier as the evidence supporting target choice increased. This was reflected in an increase in percent correct and a decrease in saccade latency. The trajectory and landing position of saccades were found to deviate away from the non-selected target reflecting the choice of the target and the inhibition of the non-target. The extent of the deviation was found to increase with amount of sensory evidence supporting target choice. This shows that decision-making processes involved in saccade target choice have an impact on the spatial control of a saccade. This would seem to extend the notion of the processes involved in the control of saccade metrics beyond a competition between visual stimuli to one also reflecting a competition between options.

ICTs and decision-making: findings from the Poverty Assessor

Pro-poor decision making depends on an understanding of the complexities and interrelationships between household livelihood, demographic, and economic factors. This article describes the design and implementation of the Poverty Assessor, a software programme to assist practitioners, policy makers, and researchers in visualising the direct impacts on poverty of specific livelihood factors and events among populations living in poverty. The software enables users to upload their own data and profile households in relation to the national poverty line, by selecting from a range of demographic and livelihood indicators. The authors present findings from the programme, using a dataset from Bolivia.

Climate change and the British Uplands: evidence for decision-making

We summarise the work of an interdisciplinary network set up to explore the impacts of climate change in the British Uplands. In this CR Special, the contributors present the state of knowledge and this introduction synthesises this knowledge and derives implications for decision makers. The Uplands are valued semi-natural habitats, providing ecosystem services that have historically been taken for granted. For example, peat soils, which are mostly found in the Uplands, contain around 50% of the terrestrial carbon in the UK. Land management continues to be a driver of ecosystem service delivery. Degraded and managed peatlands are subject to erosion and carbon loss with negative impacts on biodiversity, carbon storage and water quality. Climate change is already being experienced in British Uplands and is likely to exacerbate these pressures. Climate envelope models suggest as much as 50% of British Uplands and peatlands will be exposed to climate stress by the end of the 21st century under low and high emissions scenarios. However, process-based models of the response of organic soils to this climate stress do not give a consistent indication of what this will mean for soil carbon: results range from a very slight increase in uptake, through a clear decline, to a net carbon loss. Preserving existing peat stocks is an important climate mitigation strategy, even if new peat stops forming. Preserving upland vegetation cover is a key win–win management strategy that will reduce erosion and loss of soil carbon, and protect a variety of services such as the continued delivery of a high quality water resource.

Can company-fund manager meetings convey informational benefits? Exploring the rationalisation of equity investment decision making by UK fund managers

Conventional economic theory, applied to information released by listed companies, equates ‘useful’ with ‘price-sensitive’. Stock exchange rules accordingly prohibit the selec- tive, private communication of price-sensitive information. Yet, even in the absence of such communication, UK equity fund managers routinely meet privately with the senior execu- tives of the companies in which they invest. Moreover, they consider these brief, formal and formulaic meetings to be their most important sources of investment information. In this paper we ask how that can be. Drawing on interview and observation data with fund managers and CFOs, we find evidence for three, non-mutually exclusive explanations: that the characterisation of information in conventional economic theory is too restricted, that fund managers fail to act with the rationality that conventional economic theory assumes, and/or that the primary value of the meetings for fund managers is not related to their investment decision making but to the claims of superior knowledge made to clients in marketing their active fund management expertise. Our findings suggest a disconnect between economic theory and economic policy based on that theory, as well as a corre- sponding limitation in research studies that test information-usefulness by assuming it to be synonymous with price-sensitivity. We draw implications for further research into the role of tacit knowledge in equity investment decision-making, and also into the effects of the principal–agent relationship between fund managers and their clients.