Evidence of variable discount rates and non-standard discounting in mortality risk valuation

Time discounting is central to the valuation of future health and mortality risks in public sector allocative decision-making, particularly for environmental policies with delayed health impacts. Using a Risk-Risk trade-off survey, we elicit discount rates for fatality risks and establish discounting functional forms on both a sample and an individual level. We find wide variation in implicit discount rates for fatality risk between individuals, as well as between-individual heterogeneity in discounting functional forms. In aggregate, the sample is best characterised by subadditive discounting. Our work has implications for the academic investigation of intertemporal choice involving mortality risks, and potentially for the evaluation of policy options with delayed mortality risk outcomes. A thought experiment cautions against the standard practice of assuming that exponential discounting characterises society's time preferences.     

Combining FAP,MAP and correlation analysis for multivariate alarm thresholds optimization in industrial process

In the real industrial process, alarm threshold optimization is an important part of alarm system rationalization. If the design of alarm threshold is unreasonable, it would result in nuisance alarms, among which the critical alarms are overwhelmed. In order to alleviate this phenomenon, we propose a method of multivariate alarm thresholds optimization to reduce the nuisance alarms. Firstly, causal relationship between process variables is constructed based on the time delay estimation method, thus we can determine the alarms propagation path and then select the optimized variables. Secondly, in order to guarantee both the process safety and correlation consistency, three factors - false alarm probability (FAP), missed alarm probability (MAP), and the correlation between the alarm information and process information – are combined to establish the objective function of the optimization process for the first time. Then, the optimal thresholds are obtained by the genetic algorithm. Finally, the validity and effectiveness of the developed method are illustrated by the Tennessee Eastman process.     

Optimized quantity-within-distance models of spatial welfare heterogeneity

Spatial welfare heterogeneity is frequently modeled within stated preference analysis as a function of discrete or continuous distance between households and affected resources. A common example is distance-decay analysis. Although distance-based models such as these are easily estimated, the ubiquity of this paradigm can lead to analyses that overlook other forms of analysis with equal or greater relevance. This paper develops an alternative approach to spatial heterogeneity in stated preference willingness to pay (WTP) based on the quantity or area of an affected resource surrounding each respondent at an optimized distance band or radius, with distance bands optimized using a grid-search algorithm that maximizes model likelihood. Methods and results are illustrated using a choice experiment on riparian land restoration in Maine, USA. The resulting quantity-within-distance model identifies systematic spatial patterns that are undetectable using distance-based analysis and directly relevant for welfare analysis.     

成都入境旅游客源市场时空演变规律研究

入境旅游客源市场时空演变规律的研究是入境旅游市场研究的一个热点.依据成都市2000-2008年入境旅游市场的相关统计数据,通过分析亲景度和竞争态在时间和空间上的演变,揭示了成都入境旅游客源市场的时空演变规律.研究发现,泰国是成都最重要的入境客源市场,但自从2004年以来亲蓉度有所下降.面对入境客源市场空间分布比较均匀的状况,市场关注的重点应放在市场竞争态有所衰退的市场,以确保整体市场的稳步攀升.     

The business cycle and the incidence of workplace injuries: evidence from the U.S.A

Introduction

The current study explored the association between the business cycle and the incidence of workplace injuries to identify cyclically sensitive industries and the relative contribution of physical capital and labor utilization within industries.

Method

Bureau of Labor Statistics nonfatal injury rates from 1976 through 2007 were examined across five industry sectors with respect to several macroeconomic indicators. Within industries, injury associations with utilization of labor and physical capital over time were tested using time series regression methods.

Results

Pro-cyclical associations between business cycle indicators and injury incidence were observed in mining, construction, and manufacturing but not in agriculture or trade. Physical capital utilization was the highest potential contributor to injuries in mining while labor utilization was the highest potential contributor in construction. In manufacturing each effect had a similar association with injuries.

Conclusion

The incidence of workplace injury is associated with the business cycle. However, the degree of association and the mechanisms through with the business cycle affects the incidence of workplace injuries was not the same across industries.

Impact on Industry

The results suggest that firms in the construction, manufacturing, and mining industries should take additional precautionary safety measures during cyclical upturns. Potential differences among industries in the mechanisms through which the business cycle affects injury incidence suggest different protective strategies for those industries. For example, in construction, additional efforts might be undertaken to ensure workers are adequately trained and not excessively fatigued, while safety procedures continue to be followed even during boom times.     

The Optimal Depletion of Exhaustible Resource under Different Commitment

Abstract

There are few papers in the literature focusing on the issue of the optimal depletion of exhaustible resources in the framework of variable time preference. This paper attempts to analyze the pure consumption of exhaustible resource under hyperbolic time preference, and to discuss the optimal depletion rate and the effect of the protection of the exhaustible resource under different commitment abilities. The results of model show that the case of the hyperbolic discount with the full commitment of the government is equivalent to the case of constant discount of the social planner problem. In that case, the optimal depletion rate and the initial consumption of exhaustible resource are the slowest. On the contrary, they are the highest and the myopic behaviors lead to excessive consumption of exhaustible resources inevitably without commitment. Otherwise, in the case of partial commitment, the results are between the cases of full commitment and of no commitment. Therefore, with the hyperbolic time preference, the optimal depletion rate of resource depends on the commitment ability. Higher commitment ability leads to lower effective rate of time preference, and consequently, lower depletion rate and lower initial depletion value. The improvement of commitment ability can decrease the impatience and myopia behaviors, and contribute to the protection of the exhaustible resources.     

Combining Stated Preference and Revealed Preference Methods for the Valuation of Non-market Goods

Abstract

In this paper, we introduce the combining stated preference and revealed preference methods which is the state-ofthe- art method for the valuation of non-market goods. Revealed preference methods and stated preference (SP) methods have both been applied by economists in valuing non-market goods; however both methods have inherent weaknesses. In order to exploit the strengths of the various approaches while minimizing their weaknesses, combining the two methods has become an important methodological option. Up to now, a growing number of literatures of studying combing the two types of data have evolved, and researchers developed three types of models to estimate combining revealed preference and stated preference data in academic fields: discrete choice model, continuous choice model and mixed choice model. Combining stated and revealed preference methods have been developed fast especially in the transport study field in which ideas could also be leant for environmental economic studies.     

Flexibility in daily travel routines causes regional variation in bird migration speed

We used novel Global Positioning System-based satellite telemetry to reconstruct daily time budgets on travelling days of a long-distance migrant, the Osprey Pandion haliaetus, to reveal how landscape affects migratory performance. We compared daily travel routines between the Ospreys’ passage of Europe and the Sahara. In Europe, where feeding habitat is abundant, Ospreys fed both before–after flights and during interruptions, thus, combining migration with foraging. This resulted in a 2.7-h shorter daily flight period in Europe than in the Sahara. A calculated energy budget indicated that a ‘fly-and-forage migration strategy’ is favourable in Europe because associated benefits (energy intake) more than outweigh costs (reduced flight time). The much shorter flight time in Europe was the main explanation why Ospreys covered on average 78 km less distance on a travelling day in Europe than in the Sahara. In addition, there were regional differences in hourly flight speeds that are most probably the result of variation in thermal soaring conditions. We conclude that landscape properties have a profound effect on migration through regional variation in daily routines.     

A CFD based explosion risk analysis methodology using time varying release rates in dispersion simulations

A full probabilistic Explosion Risk Analysis (ERA) is commonly used to establish overpressure exceedance curves for offshore facilities. This involves modelling a large number of gas dispersion and explosion scenarios. Capturing the time dependant build up and decay of a flammable gas cloud size along with its shape and location are important parameters that can govern the results of an ERA. Dispersion simulations using Computational Fluid Dynamics (CFD) are generally carried out in detailed ERA studies to obtain these pieces of information. However, these dispersion simulations are typically modelled with constant release rates leading to steady state results. The basic assumption used here is that the flammable gas cloud build up rate from these constant release rate dispersion simulations would mimic the actual transient cloud build up rate from a time varying release rate. This assumption does not correctly capture the physical phenomena of transient gas releases and their subsequent dispersion and may lead to very conservative results. This in turn results in potential over design of facilities with implications on time, materials and cost of a project.In the current work, an ERA methodology is proposed that uses time varying release rates as an input in the CFD dispersion simulations to obtain the fully transient flammable gas cloud build-up and decay, while ensuring the total time required to perform the ERA study is also reduced. It was found that the proposed ERA methodology leads to improved accuracy in dispersion results, steeper overpressure exceedance curves and a significant reduction in the Design Accidental Load (DAL) values whilst still maintaining some conservatism and also reducing the total time required to perform an ERA study.     

基于MNL的高速公路施工区合流选择意愿研究*

为分析驾驶人高速公路施工区合流选择意愿的影响因素,基于非集计理论构建多属性施工区驾驶人合流选择意愿模型。利用SP调查法自主设计调查问卷,获得328份有效施工区驾驶人合流选择数据;利用Pearson相关系数分析施工区合流选择意愿与驾驶人因素和道路交通环境因素的相关性;以上游过渡区、警告区Ⅰ和警告区Ⅱ 3个合流区域作为选择肢,从驾驶人和道路交通环境特征属性2个方面归纳出6个因素对施工区合流选择意愿的影响,应用分类变量处理方法将其定义为6种指标,并进行赋值。结合非集计理论,以328份有效问卷为建模数据,建立施工区合流选择意愿的MNL模型,并利用似然比、优度比和模型命中率3个指标判断模型的拟合程度。结果表明:模型拟合程度较好;驾龄、施工区类型、道路条件、交通控制标志、速度条件和限速策略对驾驶人施工区合流选择意愿有显著影响。