The conduct of most of social science occurs outside the laboratory. Such studies in field science explore phenomena that cannot for practical, technical, or ethical reasons be explored under controlled conditions. These phenomena cannot be fully isolated from their environment or investigated by manipulation or intervention. Yet measurement, including rigorous or clinical measurement, does provide analysts with a sound basis for discerning what occurs under field conditions, and why. In Science Outside the Laboratory, Marcel Boumans explores the state (...) of measurement theory, its reliability, and the role expert judgment plays in field investigations from the perspective of the philosophy of science. Its discussion of the problems of passive observation, the calculus of observation, the two-model problem, and model-based consensus uses illustrations drawn primarily from economics. Rich in research and discussion, the volume clarifies the extent to which measurement provides valid information about objects and events in field sciences, but also has implications for measurement in the laboratory. Scholars in the fields of philosophy of science, social science, and economics will find Science Outside the Laboratory a compelling and informative read. (shrink)

In economics, models are built to answer specific questions. Each type of question requires its own type of models; in other words, it defines the requirements that a model should meet and thereby instructs how the models should be built. An explanation is an answer to a ‘why’-question. In economics, this answer is provided by a white -box model. To answer a ‘how much’-question, which is asking for a measurement, economists can make use of black-box (...) class='Hi'>models. Economic phenomena are often so complex that white -box models that should function as explanations for them appear not to be intelligible. So, for questions concerning understanding - e.g. ‘Can you clarify this phenomenon‘’ ‘Can you tell me what would happen if‘’ - it would appear that grey-box models are more adequate. This implies a twofold revision of de Regt and Dieks’s criteria for understanding phenomena. First, whenever the term ‘theory’ is used it should be substituted by ‘model’. Secondly, the Criterion for the Intelligibility of Models is now simplified as: ‘A model M is intelligible for economists if they have built M as a grey-box construction’. A grey-box construction implies that they ‘can recognize qualitatively characteristic consequences of M without performing exact calculations’. (shrink)

What is the correct concept behind measures of inflation? Does money cause business activity or is it the other way around? Shall we stimulate growth by raising aggregate demand or rather by lowering taxes and thereby providing incentives to produce? Policy-relevant questions such as these are of immediate and obvious importance to the welfare of societies. The standard approach in dealing with them is to build a model, based on economic theory, answer the question for the model world and (...) then apply the results to economic phenomena outside. Data come in, if at all, only in testing a limited number of the model's consequences. Despite some critical voices, economic methodology too has by and large subscribed to a "theory first" approach to applied economics. Error in Economics systematically develops an alternative to the theory-based orthodoxy. It places the methodical study of evidence at the centre of the scientific enterprise and thus provides a foundation for a methodology of evidence-based economics. But the book does not stop at the truism that claims should be based on the best available evidence. Rather, detailed studies in the areas of measurement, causal inference and policy analysis show what it means for a claim to be evidence-based in the context of a concrete case. The examples discussed concern topics as diverse as consumer price indices, radio spectrum auctions, the transmission mechanism, natural experiments on minimum wages and the evaluation of counterfactuals for policy. Error in Economics is essential reading for economic methodologists, philosophers of science and anyone interested in how claims about socio-economic matters are validated. (shrink)

The practice of economic science is dominated by model building. To evaluate economic policy, models are built and used to produce numbers to inform us about economic phenomena. Although phenomena are detected through the use of observed data, they are in general not directly observable. To 'see' them we need instruments. More particularly, to obtain numerical facts of the phenomena we need measuring instruments. This paper will argue that in economics models function as such instruments (...) of observation, more specific as measuring instruments. In measurement theory, measurement is a mapping of some class of aspects of characteristics of the empirical world into a set of numbers. The paper's view is that economic modelling is a specific kind of mapping to which the standard account on how models are obtained and assessed does not apply. Models are not easily or simply derived from theories and subsequently tested against empirical data. Instruments are constructed by integrating several theoretical and empirical ideas and requirements in such a way that their performance meets a beforehand chosen standard. The empirical requirement is that the model should take account of the phenomenological facts, so that the reliability of the model is not assessed by post-model testing but obtained by calibration. (shrink)

The difficulty of conducting relevant experiments has long been regarded as the central challenge to learning about the economy from data. The standard solution, going back to Haavelmo's famous “The Probability Approach in Econometrics” (1944), involved two elements: first, it placed substantial weight on a priori theory as a source of structural information, reducing econometric estimates to measurements of causally articulated systems; second, it emphasized the need for an appropriate statistical model of the data. These elements are usually seen as (...) tightly linked. I argue that they are, to a large extent, separable. Careful attention to the role of an empirically justified statistical model in underwriting probability explains puzzles not only in economics, but more generally with respect to recent criticisms of Reichenbach's principle of the common cause, which lies behind graph-theoretic causal search algorithms. And it provides an antidote to the pessimistic understanding of the possibilities for passive observation of causal structure in econometrics and related areas of Nancy Cartwright and others. (shrink)

The present paper discusses the problem of quantum-mechanical properties of a subject’s consciousness. The model of generalized economic measurements is used for the analysis. Two types of such measurements are analyzed – transactions and technologies. Algebraic ratios between the technology-type measurements allow making their analogy with slit experiments in physics. It has been shown that the description of results of such measurements is possible both in classical and in quantum formalism of calculation of probabilities. Thus, the quantum-mechanical formalism of (...) the description of states appears as a result of idealization of the selection mechanism in the proprietor's consciousness. (shrink)

This article starts with an overview of the author’s personal involvement—as an Operations Research consultant—in several engineering case-studies that may raise ethical questions; e.g., case-studies on nuclear waste, water management, sustainable ecology, military tactics, and animal welfare. All these case studies employ computer simulation models. In general, models are meant to solve practical problems, which may have ethical implications for the various stakeholders; namely, the modelers, the clients, and the public at large. The article further presents an overview (...) of codes of ethics in a variety of disciples. It discusses the role of mathematical models, focusing on the validation of these models’ assumptions. Documentation of these model assumptions needs special attention. Some ethical norms and values may be quantified through the model’s multiple performance measures, which might be optimized. The uncertainty about the validity of the model leads to risk or uncertainty analysis and to a search for robust models. Ethical questions may be pressing in military models, including war games. However, computer games and the related experimental economics may also provide a special tool to study ethical issues. Finally, the article briefly discusses whistleblowing. Its many references to publications and websites enable further study of ethical issues in modeling. (shrink)

ArgumentToday's models of temporal discounting are the result of multiple interdisciplinary exchanges between psychology and economics. Although these exchanges did not result in an integrated discipline, they had important effects on all disciplines involved. The paper describes these exchanges from the 1930s onwards, focusing on two episodes in particular: an attempted synthesis by psychiatrist George Ainslie and others in the 1970s; and the attempted application of this new discounting model by a generation of economists and psychologists in the 1980s, (...) which ultimately ended in thediversity of measurements disappointment. I draw four main conclusions. First, multiple notions of temporal discounting must be conceptually distinguished. Second, behavioral economics is not an integration or unification of psychology and economics. Third, the analysis identifies some central disciplinary markers that distinguish modeling strategies in economics and psychology. Finally, it offers a case of interdisciplinary success that does not fit the currently dominant account of interdisciplinarity as integration. (shrink)

In this chapter, one considers finance at its very foundations, namely, at the place where assumptions are being made about the ways to measure the two key ingredients of finance: risk and return. It is well known that returns for a large class of assets display a number of stylized facts that cannot be squared with the traditional views of 1960s financial economics (normality and continuity assumptions, i.e. Brownian representation of market dynamics). Despite the empirical counterevidence, normality and continuity assumptions (...) were part and parcel of financial theory and practice, embedded in all financial practices and beliefs. Our aim is to build on this puzzle for extracting some clues revealing the use of one research strategy in academic community, model tinkering defined as a particular research habit. We choose to focus on one specific moment of the scientific controversies in academic finance: the ‘leptokurtic crisis’ opened by Mandelbrot in 1962. The profoundness of the crisis came from the angle of the Mandelbrot’s attack: not only he emphasized an empirical inadequacy of the Brownian representation, but also he argued for an inadequate grounding of this representation. We give some insights in this crisis and display the model tinkering strategies of the financial academic community in the 1970s and the 1980s. (shrink)

The electrification of East Africa followed an exceptionally uneven path. After about 50 years of relative neglect under colonial rule, the construction of hydroelectric dams moved electricity generation into the focus of late colonial development policy and became the major field of intervention for foreign donors after independence. The metrics of electricity attained a role as indicator and driver for economic growth, and therefore as a target figure in economic policy, one that was arguably not justified by their (...) actual significance in the energy landscape of East Africa. This paper analyses both the global preconditions of this shift and its local repercussions. Rather than the physical visibility of electricity in the form of large dams and high-tension lines, the paper focuses on the processes that rendered electricity ontologically visible. It traces attempts by engineers, expert advisors, or development consultants to translate the complex information associated with the generation and consumption of electricity into calculable and comparable metrics. The paper scrutinises these commensuration processes in terms of the resources and knowledge they required, the frameworks of agency they opened, and the way they fed into wider discourses of development. It asks how the metrics of electricity themselves became part of the colonial and postcolonial politics of calculation, as they increasingly came to be seen as a medium for conceiving national economies. This trend was reinforced by the ascent of development economics in the 1950s and its influence on the ontological foundations of international development cooperation and post-independence nation-building. Because of the calculability and capital-intensity of its production, electricity lent itself perfectly to an economic policy based on macroeconomic aggregates and abstract growth models. Conversely, the electricity bias of international development agencies and the national government rendered rural, non-commercial, and non-productive energy use largely invisible. (shrink)

The effective functioning of a modern enterprise necessitates the awareness of the owners and managers of its strategic orientations, the state of the internal and external environment, its competitive advantages, entrepreneurial potential and development prospects. A well-built business model of the enterprise helps to face these urgent and permanent challenges. However, the formation of a real business model of the enterprise necessitates mastering of theoretical and methodological bases and implementation of long-term practical measures in the field of assessment, shaping, organization (...) and control. This study offers a comprehensive business model of the enterprise that systematically identifies key factors which influence business activity of the enterprise and provide value logic for doing business in the global economic environment. (shrink)

Contemporary approaches to “non-market accounting” depend critically on methods of “monetization,” i.e., determining prices for goods outside the market. Monetization constitutes a case of economic measurement in a narrow sense that has not yet been analyzed in the literature on measurement in economics. Monetization, I will argue, uses homo economicus—originally created as a model to explain existing prices—as a measuring device, one that generates new prices for goods that are not traded on markets. Homo economicus, though long (...) contested in microeconomics, is thus enjoying a dubious revival in non-market accounting. (shrink)

Over the past twenty years, economic theory has begun to play a central role in antitrust matters. In earlier days, the application of antitrust rules was viewed almost entirely in formal terms; now it is widely accepted that the proper interpretation of these rules requires an understanding of how markets work and how firms can alter their efficient functioning. The Handbook of Antitrust Economics offers scholars, students, administrators, courts, companies, and lawyers the economist's view of the subject, describing the (...) application of newly developed theoretical models and improved empirical methods to antitrust and competition law in both the United States and the European Union. After a general discussion of the use of empirical methods in antitrust cases, the Handbook covers mergers, agreements, abuses of dominance, and market features that affect the way firms compete. Chapters examine such topics as analyzing the competitive effects of both horizontal and vertical mergers, detecting and preventing cartels, theoretical and empirical analysis of vertical restraints, state aids, the relationship of competition law to the defense of intellectual property, and the application of antitrust law to "bidding markets," network industries, and two-sided markets.ContributorsMark Armstrong, Jonathan B. Baker, Timothy F. Bresnahan, Paulo Buccirossi, Nicholas Economides, Hans W. Friederiszick, Luke M. Froeb, Richard J. Gilbert, Joseph E. Harrington, Jr., Paul Klemperer, Kai-Uwe Kuhn, Francine Lafontaine, Damien J. Neven, Patrick Rey, Michael H. Riordan, Jean-Charles Rochet, Lars-Hendrick Röller, Margaret Slade, Giancarlo Spagnolo, Jean Tirole, Thibaud Vergé, Vincent Verouden, John Vickers, Gregory J. WerdenPaolo Buccirossi is Director and Founder of Lear, a research center and an economics consulting firm in Rome, and has worked as an economic advisor at the Italian Competition Authority. (shrink)

The assessment of models in an experiment depends on their material nature and their function in the experiment. Models that are used to make the phenomenon under investigation visible - sensors - are assessed by calibration. However, calibration strategies assume material intervention. The experiment discssed in this paper is an experiment in economics to measure the influence of technology shocks on business cycles. It uses immaterial, mathematical instruments. It appears that calibration did not work for these kinds of (...) models, it did not provide reliable evidence for the facts of the business cycle. (shrink)

Organizational integrity is a key concept with and through which a company can assume its responsibility for ethical and societal issues. It is a basic premise for sustainable corporate success, as ethical risks ultimately become economic risks for a company. Recent research shows the potential of integrity‐based governance models to reduce corporate risks and to improve business performance. However, companies are not yet able to assess nor evaluate their level of organizational integrity in a sound and systematic way. (...) We aim to develop a theoretical model as a basis for the measurement of organizational integrity by conceptualizing the construct and sizing the theoretical model's scope. We suggest that the theoretical model follows a holistic approach and involves three types of dimensions: prerequisite dimensions, independent dimensions, and dependent dimensions. The organizational integrity triad—consisting of active commitments to self‐imposed norms and principles, their transparent institutionalization into corporate processes and structures, and their implementation into action—plays a key role in this context. (shrink)

The metrology literature neglects a strong empirical measurement tradition in economics, which is different from the traditions as accounted for by the formalist representational theory of measurement. This empirical tradition comes closest to Mari's characterization of measurement in which he describes measurement results as informationally adequate to given goals. In economics, one has to deal with soft systems, which induces problems of invariance and of self-awareness. It will be shown that in the empirical economic (...) class='Hi'>measurement tradition both problems have been on the agenda for a long while, and that the proposed solutions to these problems provide clues for the directions in which one could develop a measurement theory that takes account of soft systems. (shrink)

Models as Mediators discusses the ways in which models function in modern science, particularly in the fields of physics and economics. Models play a variety of roles in the sciences: they are used in the development, exploration and application of theories and in measurement methods. They also provide instruments for using scientific concepts and principles to intervene in the world. The editors provide a framework which covers the construction and function of scientific models, and explore (...) the ways in which they enable us to learn about both theories and the world. The contributors to the volume offer their own individual theoretical perspectives to cover a wide range of examples of modelling, from physics, economics and chemistry. These papers provide ideal case-study material for understanding both the concepts and typical elements of modelling, using analytical approaches from the philosophy and history of science. (shrink)

The paper demonstrates how a typology of moral issues may be used to systematically analyze and discuss ethical problems in stakeholder relations. The suggested typology is based mostly on economic theory and represents a universal and comprehensive matrix of moral issues in business. We analyze its compatibility with other stakeholder management models and demonstrate how it may be applied as a tool for identifying relevant ethical issues in relations with any stakeholder, or to build instruments for measuring corporate (...) social performance. In the conclusion we discuss other ways of application and future directions of research. (shrink)

First published in 1985 and written by leading contributors to the field of general equilibrium analysis, this volume brings together developments in the field of applied general equilibrium modelling. Papers discuss approaches to welfare measurement in applied models, applications to hitherto unexplored areas, such as economic history, extensions to analyse micro data files, regional analyses, fixed price equilibria, and many others. Earlier versions of the papers in this volume were presented at a conference held in Canberra, Australia.

The problem of epistemic opacity in Artificial Intelligence is often characterised as a problem of intransparent algorithms that give rise to intransparent models. However, the degrees of transparency of an AI model should not be taken as an absolute measure of the properties of its algorithms but of the model’s degree of intelligibility to human users. Its epistemically relevant elements are to be specified on various levels above and beyond the computational one. In order to elucidate this claim, I (...) first contrast computer models and their claims to algorithm-based universality with cybernetics-style analogue models and their claims to structural isomorphism between elements of model and target system. While analogue models aim at perceptually or conceptually accessible model-target relations, computer models give rise to a specific kind of underdetermination in these relations that needs to be addressed in specific ways. I then undertake a comparison between two contemporary AI approaches that, although related, distinctly align with the above modelling paradigms and represent distinct strategies towards model intelligibility: Deep Neural Networks and Predictive Processing. I conclude that their respective degrees of epistemic transparency primarily depend on the underlying purposes of modelling, not on their computational properties. (shrink)

Economic Geography is the most complete, up-to-date textbook available on the important new field of spatial economics. This book fills a gap by providing advanced undergraduate and graduate students with the latest research and methodologies in an accessible and comprehensive way. It is an indispensable reference for researchers in economic geography, regional and urban economics, international trade, and applied econometrics, and can serve as a resource for economists in government. Economic Geography presents advances in economic theory (...) that explain why, despite the increasing mobility of commodities, ideas, and people, the diffusion of economic activity is very unequal and remains agglomerated in a limited number of spatial entities. The book complements theoretical analysis with detailed discussions of the empirics of the economics of agglomeration, offering a mix of theoretical and empirical research that gives a unique perspective on spatial disparities. It reveals how location continues to matter for trade and economic development, yet how economic integration is transforming the global economy into an economic space in which activities are performed within large metropolitan areas exchanging goods, skills, and information. Economic Geography examines the future implications of this evolution in the spatial economy and relates them to other major social and economic trends.Provides a complete introduction to economic geography Explains the latest theory and methodologies Covers the empirics of agglomeration, from spatial concentration measurement to structural estimations of economic geography models Includes history and background of the field Serves as a textbook for students and a resource for professionals. (shrink)

This paper introduces a new typology and associated measure of social and environmental mission integration by conceptually framing a feature of hybrid organizations—the degree of integration of their revenue model and social–environmental mission. The SEMI measure is illustrated using a hand-collected sample of 256 North American Certified B Corporations. We explore the heterogeneity of SEMI scores by identifying external-facing correlates and demonstrate non-congruence with Certified B Corporation’s audit results. Overall, our findings advance existing knowledge of these hybrid organizations and how (...) they balance their social–environmental missions with their economic objectives. (shrink)

In economics, thought experiments are frequently justified by the difficulty of conducting controlled experiments. They serve several functions, such as establishing causal facts, isolating tendencies, and allowing inferences from models to reality. In this paper, I argue that thought experiments served a further function in economics: facilitating the quantitative definition and measurement of the theoretical concept of utility, thereby bridging the gap between theory and statistical data. I support my argument by a case study, the “hypothetical experiments” of (...) the Norwegian economist Ragnar Frisch (1895-1973). Frisch aimed to eliminate introspection and a subjective concept of utility from economic reasoning. At the same time, he sought behavioral foundations for economic theory that enabled quantitative reasoning. By using thought experiments to justify his set of choice axioms and facilitating the operationalization of utility, Frisch circumvented the problem of observing utility via actual experiments without eliminating the concept of utility from economic theory altogether. As such, these experiments helped Frisch to empirically support the theory’s most important results, such as the laws of demand and supply, without the input of new empirical findings. I suggest that Frisch’s experiments fulfill the main characteristics of thought experiments. (shrink)

This paper constitutes my first attempt publicly to comment on Nancy Cartwright’s philosophy of science. That I have not done this earlier is primarily due to the great similarities in our views on topics where our interests overlap.2 But Cartwright’s work also covers topics I have never seriously considered, such as the use of linear models in economics and the measurement problem in quantum mechanics. Even the subject of probabilistic causation, to which I once contributed, is not one (...) I now feel confident in examining in any detail. I will concentrate, therefore, on her views regarding the nature of scientific theories, laws, models, and causality in general – topics at the forefront of my own current thinking. More specifically still, I will focus on the picture of classical mechanics she presents in The Dappled World (1999). (shrink)

This study aimed to explore practices and strategies that have successfully reduced time-to-proficiency of the workforce in large multinational organisations and develop a model based on them. The central research question of this study was: How can organisations accelerate time-to-proficiency of employees in the workplace? The study addressed three aspects: the meaning of accelerated proficiency, as seen by business leaders; the business factors driving the need for shorter time-to-proficiency and benefits accrued from it; and practices and strategies to shorten time-to-proficiency (...) of the workforce. 85 participants (n=85) from 7 countries who represented 10 economic sectors, 20 business sectors and 28 industry groups contributed 66 successful bounded project cases. A qualitative research approach was used. Data were collected through in-depth interviews with project leaders and by collecting additional project case documents. Data were analysed using thematic analysis to identify the themes in the data. Matrix analysis was then used to perform within-case and cross-case analysis to compare the project cases. 11 overarching themes were developed from the data analysis, out of which two overarching themes explained the characteristics of job-role proficiency and accelerated proficiency, while three overarching themes described the magnituide and scale of time-to-proficiency business problem, business drivers for accelerating proficiency and business benefits of reduced time-to-proficiency. Six overarching themes revealed the business practices employed by organisations to reduce time-to-proficiency: (1) Defining business-driven proficiency measures in terms of expected business outcomes from a job role; (2) Developing a proficiency reference map of all the inputs, conditions and roadblocks that determine or influence how required business outcomes are being produced in a job role; (3) Sequencing an efficient proficiency path of activities and experiences ordered to produce the desired business outcomes in the shortest possible time; (4) Manufacturing accelerated contextual experiences by leveraging on-the-job opportunities or training interventions in a compressed time-frame; (5) Promoting an active emotional immersion through engagements, consequences, stakes, feedback and proficiency assessments; and (6) Setting up a proficiency eco-system, providing timely support to performers while doing the job such as enabling job environment, highly involved manager, structured mentoring from experts, purposeful social connectivity with peers, leveraging subject matter experts and on-demand performance support systems. Organisations orchestrated these six business practices as an input-output-feedback system to reduce time-to-proficiency of the workforce. A conceptual model (Accelerated Proficiency Model) was developed representing interactions among six business-level practices/processes as a closed-loop system to explain the concept and process of accelerated proficiency in the workplace. These practices were implemented through a set of twenty-four strategies proven successful in various contexts. The strategies employed were much beyond the boundaries of conventional training interventions. The job itself acted as the primary mechanism to accelerate proficiency. A two-level hierarchical framework (6/24 framework of strategies) was also constructed in the form of a checklist consisting of six practices and twenty-four strategies for practitioners. Overall, the findings of this research study contribute significantly to the body of knowledge on accelerated proficiency. In particular, the conceptual model and the framework developed in this study can be implemented across a range of contexts, business sectors, job types and settings to reduce time-to-proficiency of the workforce. (shrink)

A new constructivist approach to modeling in economics and theory of consciousness is proposed. The state of elementary object is defined as a set of its measurable consumer properties. A proprietor's refusal or consent for the offered transaction is considered as a result of elementary economic measurement. We were also able to obtain the classical interpretation of the quantum-mechanical law of addition of probabilities by introducing a number of new notions. The principle of “local equity” assumes the transaction (...) completed (regardless of the result) of the states of transaction partners are not changed in connection with the reception of new information on proposed offers or adopted decisions (consent or refusal of the transaction). However it has no relation to the paradoxes of quantum theory connected with non-local interaction of entangled states. In the economic systems the mechanism of entangling has a classical interpretation, while the quantum-mechanical formalism of the description of states appears as a result of idealization of the selection mechanism in the proprietor's consciousness. (shrink)

In a recent special issue dedicated to Dani Rodrik’s (2015) influential monograph Economics Rules, Grüne-Yanoff and Marchionni (2018) raise a potentially damning problem for Rodrik’s suggestion that progress in economics should be understood and measured laterally, by a continuous expansion of new models. They argue that this could lead to an “embarrassment of riches”, i.e. the rapid expansion of our model library to such an extent that we become unable to choose between the available models, and thus needs (...) to be solved to make ‘model pluralism’ viable. Drawing on Veit’s (2019a) ‘model pluralism’ account, this paper argues that model pluralism as a thesis about the relationship between science and nature undermines the very idea of a general model selection framework for policy making. (shrink)

A startup ecosystem is a dynamic environment in which several actors, such as investors, venture capitalists, angels, and facilitators, are the protagonists of a complex interplay. Most of these interactions involve the flow of capital whose size and direction help to map the intricate system of relationships. This quantity is also considered a good proxy of economic success. Given the complexity of such systems, it would be more desirable to supplement this information with other informative features, and a natural (...) choice is to adopt mathematical measures. In this work, we will specifically consider network centrality measures, borrowed by network theory. In particular, using the largest publicly available dataset for startups, the Crunchbase dataset, we show how centrality measures highlight the importance of particular players, such as angels and accelerators, whose role could be underestimated by focusing on collected funds only. We also provide a quantitative criterion to establish which firms should be considered strategic and rank them. Finally, as funding is a widespread measure for success in economic settings, we investigate to which extent this measure is in agreement with network metrics; the model accurately forecasts which firms will receive the highest funding in future years. (shrink)

This article aims to measure both the economic and social value of Tecnocampus, a Science and Technology Park in its region of influence. Our results show that the impact of Tecnocampus has a socioeconomic cost–benefit ratio of 2.39. Measuring the impact of this multifaceted centre requires a diverse approach. Although the methods used are not new, the combination of them presents a novel approach to measure the impact of an institution of this nature. We have measured the economic (...) value with the Input–Output model, including the Social Accounting Matrix. On the other hand, for social value calculations, we have used cost–benefit analysis adding measurements of firm localisation to estimate externality effects. Our main results present an economic value of more than 0.054% of the Catalan GDP, whereas the employment impact represents almost 0.37% of total employment in the region. The total economic multiplier of Tecnocampus activity is estimated to be 1.89. Social value generates an additional 0.50 euros to the multiplier according with our analysis. This additional social value represents an increase of productivity estimated in 20 million euros of operational income for Catalan firms and the creation of seven additional firms in the Maresme region as a result of knowledge spillovers. The social value also includes reduction of over-education caused by a better matching between graduates and enterprises, a more direct application of research, and an increase in consumer surplus. Finally, we discuss the policy implications of our findings to promote investments in this kind of infrastructures. (shrink)

Safety is defined as a state in which human activities are conducted in such a way that the realization of potential dangers is excluded with a certain probability. However, there is an established axiom: all human activities inherently carry some degree of danger. The criterion for assessing this danger is risk, which provides a quantitative measure of potential threats. Experience has shown that the previous concept of safety, which sought to eliminate all risks entirely (known as the "zero risk" concept), (...) is not practical. Today, the prevailing safety approach is the concept of justified risk—the idea that certain levels of risk are deemed acceptable, based on current economic capabilities and social conditions, for the average citizen. This study presents the development of a conceptual model—a model of communication channels—created through system analysis. This model captures the dynamics of information flows regarding the status of danger sources within a potential earthquake zone. The conceptual model is composed of functional operators: B1, B2, B3, B4, B5, B6, and B7. One key area of this research is the mathematical modeling of emergencies and the forecasting of their potential consequences. Such modeling is crucial for enhancing the effectiveness of protective measures and improving disaster response strategies. (shrink)

There is an embarrassing polarization of opinions about the status of economics as an academic discipline, as reflected in epithets such as the Dismal Science and the Queen of the Social Sciences. This collection brings together some of the leading figures in the methodology and philosophy of economics to provide a thoughtful and balanced overview of the current state of debate about the nature and limits of economic knowledge. Authors with partly rival and partly complementary perspectives examine how abstract (...) models work and how they might connect with the real world, they look at the special nature of the facts about the economy, and they direct attention towards the academic institutions themselves and how they shape economic research. These issues are thus analysed from the point of view of methodology, semantics, ontology, rhetoric, sociology, and economics of science. (shrink)

The ArgumentWhile there has been muchattention given to experiment in modern science studies, there has been astoundingly little concern spared over the practice ofquanitataivemeasurment.Thus myths about the unreasonable effectiveness of mathematice in science still abound. This paper presents: An explicit mathematical model of the stabilization of quantitative constants in a mathematical science to rival older Bayesian and classical accounts;a framework for writing a history of pracitces with regard to treatment of quantitative measurement erroe; resourece for the comparative sociology of (...) differing discipliness in this regard;and a prolegonmena to a critique of orthodox economics and accounting theories. The key to all these diverse themes is the realization that no one individual alone is capable of fixing the magnitude of a quantitative error estimate, and therefore the social construction of error must be given a more precise meaning, an therefore the social construction of error must be given a more precise menaing, and that this occurs through the istrumentality of meta-analysis. (shrink)

In Western industrialized countries, women report using health services, and certain medications, more often than do men. Often, analyses are based on data that exclude objective measures of morbidity and that come from cross-sectional surveys, which precludes the use of socioeconomic covariates that are endogenous to seeking care. Here, differences in objective cognitive and physical function, as well as differences in reporting on illness, propensity to seek care, and socioeconomic resources are expected to account for differences in care-seeking behaviour among (...) women and men. This model is applied to the question of medication use in Ismailia, Egypt, using two waves of survey data and in-home tests of physical function from 896 adults aged 50 years and older. The results show that women use medications more often than do men, and that differences between women and men in reported morbidity and disability, observed cognitive and physical function, and economic resources account for womens and men’s care-seeking behaviour in later life. (shrink)

This paper addresses the field of economic measurements of the value of assets, carried out by the methods of independent expert evaluation. The mathematical principles of application, within a comparative methodical approach, of additive and multiplicative models for correcting the cost of single indicator of compared objects have been considered. The differences of mathematical basis of the compared models were analyzed. It has been shown that the ambiguity in the methodology of correction procedure requires studying the advantages (...) and disadvantages of known models, as well as the justification and elaboration of recommendations for their application. Possible forms of correction representation using several alternative units of measurement have been defined; formulas for their interconnection have been built. Analytic expressions have been derived that mathematically describe the algorithms for performing the evaluation correction procedure using various forms of correction representation. The influence of the correction execution model on the characteristics of uncertainty in the independent evaluation result has been analyzed. The scope of two possible types of correction introduction models has been determined. A specific numerical example was used to demonstrate the methodological advantages of using a multiplicative model when summarizing percentage corrections. The independence of the correction result on the sequence of correction introduction has been confirmed. It is proposed to use the selected measure of partial corrections as a criterion for the adequacy of the correction introduction model. It is proved that the result of the independent expert evaluation depends on the chosen model and does not depend on the sequence of correction introduction. The reported study results are important in terms of theory and practice since they make it possible to improve the accuracy and reliability of the result of independent expert evaluation. (shrink)

Contemporary economic theory is generally regarded as a scientific or at least potentially so. The replacing of the cardinal theory of utility measurement by the ordinal theory was supposed to prepare the groundwork for economics as a genuine science. But in adopting the ordinal approach, theorists saw fit to anchor ordinal theory to axioms of choice founded on principles of rational behavior. Behavior according to these axioms was embodied in the ideal type model of rational economic man. (...) This model served the basis for scientific explanation of the choices made by actual economic agents. I argue though that the postulate of rationality is a normative principle and that this compromises the scientific pretensions of economic theory. Yet the theorist must rely on this principle to formulate predictive and explanatory theories. This raises questions as to whether it is possible that economic theory satisfy the same kind of scientific criteria set down for research in the natural sciences. (shrink)

To establish the evaluation index system of urbanization innovation level and ecological efficiency, the entropy method is applied to measure the comprehensive index of urbanization innovation level and ecological efficiency, the VAR model is established, and empirical measurement is used to study the internal relationship and dynamic development between urbanization innovation level and ecological efficiency. The empirical results show the following: The overall development of the innovation level in 30 cities in China is uneven, there is a large gap (...) between the urban innovation level in backwards areas and economically developed areas, and there is a certain coupling effect between the urban innovation level and ecological efficiency. There is a long-term dynamic equilibrium relationship between the urban innovation level and ecological efficiency, which will exert certain pressure on the ecological environment in the process of urbanization. However, the continuous improvement of urbanization will have a positive impact on the improvement of the ecological environment. The improvement of ecological efficiency will also promote the improvement of the urban innovation level. Therefore, this paper puts forwards policy suggestions to promote the harmonious development of urbanization and the ecological environment and provides a reference for realizing the balanced development of urbanization and ecological efficiency in China. (shrink)

The main objective of this work is to examine the prevalence of psychopathy in the general adult population from the main currently existing theoretical perspectives of psychopathy, using for this purpose the five-factor or Big Five model as a common language that allows the comparison and integration of the personality traits considered as defining psychopathy by these different perspectives. The NEO Personality Inventory-Revised was applied to a sample of 682 adults of the general Spanish population. The prevalence of clinical and (...) subclinical psychopathy was calculated according to six different definitions of these two constructs based on Hare’s, Lilienfeld’s, triarchic, and DSM-5-hybrid models, and the simultaneous presence of a minimum number of personality traits that differed from the sample mean by one standard deviation. Prevalence rates for the different definitions were consistently low, indicating that the prevalence of clinical psychopathy in the general Spanish population is around 0.55%, and that of subclinical psychopathy is around 1.65%. There were no significant sex differences in the prevalence of psychopathy. These results question the alarmist claims that warn about the existence in society of a very high number of people with psychopathy who can cause many social, economic, physical, and psychological damage to others. (shrink)

BackgroundImplementation of quarantine and lockdown to COVID-19 pandemic has created dramatic negative psychological impact mainly the general population’s health worldwide. We aimed to assess the prevalence and predictors of anxiety and stress severity among the Palestinian population.MethodsA cross-sectional web-based survey was conducted. An anonymous online questionnaire and snowball recruiting technique were used to target the general public in Palestine between 6 and 16 April, 2020 during COVID-19 pandemic lockdowns. Multivariate logistic regression models were developed for the outcome variables.ResultsOf the (...) 2819 individuals who completed the questionnaire, more than two thirds of them were females. Nearly, were residing at the West Bank. The mean age of participants was 29.47 years. The anxiety prevalence was with had mild/moderate severity. The stress prevalence was with had mild/moderate severity. The prevalence of both anxiety and stress was. In multivariate analysis, exposure to confirmed case of COVID-19, inadequacy of food supply and jobs that acquire leaving home during lockdown were significantly related to higher anxiety degree. As for stress, low monthly income, cohabitation with a person of a high-risk group and inadequacy of food supply were significantly related to higher stress degree.ConclusionYoung adults with low socioeconomic status and inadequate food supply were more likely to have a higher degree of stress and/or anxiety. Providing alternative economical sources for those in need, and spreading more awareness regarding the pandemic, supporting the population’s psychological wellbeing, community connection and the availability of specialist mental health services are crucial to overcome the mental impacts of COVID-19 in Palestine. (shrink)

Modelling became one of the primary tools of economic research in the 20th century and economists understand their mathematical models as giving some kind of representation of the economic world, one adequate enough for the purpose of reasoning about that world. But when we look at examples of how non-analogical models were first built in economics, both the process of making representations and aspects of the representing relation remain opaque. Like early astronomers, economists have to imagine (...) how the hidden parts of their world are arranged and to make images, that is, create models, to represent how they work. The case of the Edgeworth Box, a widely used model in 20th century economics, provides a good example to explore the role of imagination and images in the process of making representations of the economy. (shrink)

Introduction. At present, the issues of the Far East accelerated economic development remain in the focus of the state attention. Among the key mechanisms of state policy is the formation of advanced development territories (ADT). The article sets the task of studying the impact of the institutional measures taken on the welfare and the population’s life quality in the Far Eastern territories. Particular attention is paid to studying migration processes and analyzing the economic activity of the Far East (...) population. The purpose of the article is to study the effects of implementing mechanisms for accelerated economic growth, as well as assess their impact on the life quality in the Far East regions. Methods. The authors use the following methods: economic and mathematical modeling, computational and analytical methods, comparative and spatial analysis. Scientific novelty of the research. For a comprehensive assessment of the regional well-being, the authors propose to supplement the multiplicative model based on the A. Sen’s extended welfare function with a composite ecological index. It takes into account the ecological conditions of human life, which are an important aspect of well-being. The authors obtain ecologically adjusted indicators of well-being for the eastern regions of the Russian Federation and study their dynamics, as well as the relations with the data on the population’s migration activity during the formation of new institutions of advanced development in the East of the country. Results. The authors find out that most of the Far Eastern territories are still lagging behind the average Russian level in socio-economic development. The results of assessing the level of well-being of regions on the basis of a multiplicative model without taking into account the environmental factor show that the most prosperous areas are raw materials-based territories. It is shown that the role of environmental factors in the life quality in the Far Eastern territories of Russia is very significant - the ecologically adjusted level of well-being is noticeably lower than the indicator that does not take into account this aspect of well-being. The authors reveal that socio-economically disadvantaged regions with difficult natural and climatic living conditions have very high rates of migration outflow. Their coefficients of migration loss reflect the presence of a crisis in economic development, which has been increasing in recent years. An analysis of trends in economic activity shows a relationship between the dynamics of the number of employed and the implementation of ADT projects in the Far Eastern territories. Conclusions. The conclusion is that the measures taken by the state for the advanced economic development of the eastern territories of the country have not yet had a noticeable positive impact on the welfare and life quality in the Far East regions. (shrink)

In the present world order unbridled forces of free market capitalism are frequently cited for much of the social injustice, inequity, and disparity of wealth between the rich and the poor. Although history''s verdict in favor of the free markets could hardly be harsher or clearer, it is clear that after the initial wave of triumph, the free market paradigm has developed some cracks in its façade. What marks the trail of such sustained and pronounced move toward free markets in (...) terms of ethics, morality, social welfare and social justice? How does one keep a social score in this seemingly relentless and irreversible move all over the world toward free market capitalism?In this paper we shall attempt to address these and related questions. Drawing on concepts from organization theory and social philosophy and using publicly available financial information, we shall illustrate how, amidst the myriad and mixed noises, some sense of order and signal can be discerned in addressing issues of equity and social justice. Toward this end, first, we provide a broad contrast between two models of financial markets: the command model and the free market model and proceed to examine publicly available financial information and analyze the trends and patterns with graphical representations using publicly available data from Handbook of International Economic Statistics. Next, we explore the implications of financial performance measures for social welfare and social justice and discuss the social perils of free markets using the Mexican and Asian Financial crises as the focal points. Finally, we present a set of recommendations for smoother structural transition. (shrink)

Building on philosophy of science literature and two original studies, this paper argues for the necessity of incorporating all three portions of Wood''s (1991) theoretical model of corporate social performance (CSP) into its measurement. It begins by describing the two studies of an organizational phenomenon not commonly studied – internal fund drives to employees. Insights from these studies of corporate PAC and United Way campaigns are then used to illustrate how important it is to incorporate all three portions of (...) Wood''s model into the measurement of CSP to prevent drawing faulty conclusions. The paper concludes by providing a matrix for use in testing the validity of CSP measures. (shrink)

The idea that simplicity matters in science is as old as science itself, with the much cited example of Ockham's Razor, 'entia non sunt multiplicanda praeter necessitatem': entities are not to be multiplied beyond necessity. A problem with Ockham's razor is that nearly everybody seems to accept it, but few are able to define its exact meaning and to make it operational in a non-arbitrary way. Using a multidisciplinary perspective including philosophers, mathematicians, econometricians and economists, this 2002 monograph examines simplicity (...) by asking six questions: what is meant by simplicity? How is simplicity measured? Is there an optimum trade-off between simplicity and goodness-of-fit? What is the relation between simplicity and empirical modelling? What is the relation between simplicity and prediction? What is the connection between simplicity and convenience? The book concludes with reflections on simplicity by Nobel Laureates in Economics. (shrink)

Out of the Margin is the first book to consider feminist concerns across the whole domain of economics. In recent years there has been a tremendous increase in interest on the relation between gender and economics. Feminists have found much of concern in the way the economics has written women out of its history, built its theories around masculinist values, failed to take proper account of women and their work when measuring the economy and ignored most of the policy issues (...) that press most heavily upon women. This book is a firm rejection of this marginalized position. Including contributions from leading feminist economists from the US and Europe, the book offers a richness of new insights in addressing the absence of women, both as subject and object, in the history of economic thought. Out of the Margin also explores the philosophical roots of rational economic man, power relations and conflicts within the family, the limitations of relying on secondary data, the need for new data and research, the policy implications of neo-classical economic models and the need for fundamental research in policy making. With its range and depth of coverage, this is not only an excellent introduction to the field but also indispensible for anyone looking for an in-depth analysis of gender and economics. (shrink)

In addition to its obvious successes within the kinetic theory the ideal gas law and the modeling assumptions associated with it have been used to treat phenomena in domains as diverse as economics and biology. One reason for this is that it is useful to model these systems using aggregates and statistical relationships. The issue I deal with here is the way R. A. Fisher used the model of an ideal gas as a methodological device for examining the causal role (...) of selection in producing variation in Mendelian populations. The model enabled him to create the kind of population where one could measure the effects of selection in a way that could not be done empirically. Consequently we are able to see how the model of an ideal gas was transformed into a biological model that functioned as an instrument for both investigating nature and developing a new theory of genetics. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:Reviewed by:Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist by Kate RaworthYoko NagaseKate Raworth, Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist. London: Random House Business Books, 2017. 372 pp. £20. ISBN 9781847941374.Question: Is this a book about utopia? Answer: Yes, indeed; it is a book about a twenty-first-century utopia represented by the Doughnut.The author presents a vision of a pragmatic utopia, represented by the (...) inside of her Doughnut that is both distributive and regenerative. According to the author, a distributive economy is "one whose dynamics tend to disperse and circulate value as it is created, rather than concentrating it in ever-fewer hands." A regenerative economy is "one in which people become full participants in regenerating Earth's life-giving cycles so that we thrive within planetary boundaries" (156).The emphasis on the fair distribution of income, wealth, and means of production is an ideal pursued by famous utopians, from perfectly equal distribution of everything in Thomas More's Utopia to very libertarian position of "whatever he has justly made he has a right to keep" by H. G. Wells.1 The distributive Doughnut community aims to enable individuals to be, in Amartya Sen's words, "healthy, empowered and creative—so that they can choose to be and do things in life that they value" (43). This ideal of individuals' rights to choose their life and to realise their ends is the centerpiece of libertarians' ideal society.2 The Doughnut, however, leans heavily toward democratic socialism. Arguments for redistributive measures such as a universal basic income and taxes on land and wealth put forward by the author go beyond promoting equal opportunity and emphasize the necessity of economic means to make the best out of the opportunities (164, 180, 200). [End Page 528]The issue of sustainability at the global level is a concept that does not appear in the classical utopian literature, even though the idea of living happily in perpetuity is very much the tenet of many classical utopian societies. Given the extent of the geographical knowledge that existed by the time Wells explored his idea of a utopia, he was no longer able to set it in some not-yetdiscovered place on Earth like his predecessors did—hence the adaptation of "another planet."3 But this setup had nothing to do with the concept of the ecological limit of Earth. Pre-nineteenth-century utopians would be familiar with the contents of the Doughnut's foundation, the inner shell that consists of the social and economic factors such as food, health, education, and housing. However, the outer shell of the Doughnut is very twenty-first century, enclosing the nine planetary boundaries of the Doughnut as a life-support system, such as ozone layer depletion, ocean acidification, biodiversity loss, and climate change (44–48).The author points out that we need to get a grip on understanding how we belong in the world. Instead of relying on the power of words as George Orwell's Thought Police, the author takes full advantage of the power of the visual, by drawing the Doughnut as a map for a new economy and society.4 If studying economics is tantamount to "mastering the mother tongue of public policy" (287), Doughnut Economics is a critical introduction to and the foundation of economic, environmental, and social policymaking.Rather than utopias as purely thought exercise by Plato or More, Raworth, like David Hume, presents a model of a utopia that is meant to be achievable.5 The economics of the Doughnut does not depend on any unrealistic assumptions of human nature. The author proposes means to reaching inside the Doughnut without abolishing the market system or private property rights. But a strong emphasis is placed on additional redistributive policies and regulations that are deemed critical toward sustainability. This position is consistent with that of the former chancellor of Germany who reportedly said that she "wanted as much market economics as possible, but as much state intervention as necessary."6 In promoting the open-source circular economy movement, the author wonders if it may seem "unfeasibly utopian" (231). Yet given the pace... (shrink)

A rational process for assessment of environmental policy options should be based on an appreciation of how humans value nature. Increased understanding of values will also contribute to the development of appropriate ways for us to relate to and manage natural areas. Over the past two decades, environmental philosophers have examined the notion that there is an intrinsic value in nature. Economists have attempted to define and measure the market and nonmarket economic values associated with decisions concerning natural areas. (...) Psychologists have tried to assess the extent to which people believe in an intrinsic value in nature, and have also begun to work with economists to improve nonmarket valuation techniques. I briefly review the contributions made to our understanding of natural area value by environmental philosophy, psychology and economics, and develop a model that integrates insights from these disciplines. Components in the model include cognitions, held values, assigned values and various modes of value expression. I make recommendations for future validation, development and use of the model. (shrink)