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- All Subjects: decision-making
- Creators: Schlee, Edward
Description
I began this thesis because I was confused about economics. I wondered why there were so many different models. I didn't understand how they fit together. I was also confused by the assumptions being made. For instance, the assumption that humans are rational utility-maximizers did not seem to agree with my own experiences. With my director Dr. Edward Schlee's help, my thesis has become an inquiry into the state of economic methodology, both in theory and in practice. The questions that drive this paper are: How do economists choose between theories? What is the purpose of economic theory? What is the role of empirical data in assessing models? What role do assumptions play in theory evaluation, and should assumptions make sense? Part I: Methodology is the theoretical portion of the paper. I summarize the essential arguments of the two main schools of thought in economic methodology, and argue for an updated methodology. In Part II: A case study: The expected utility hypothesis, I examine methodology in practice by assessing a handful of studies that seek to test the expected utility hypothesis. Interestingly, I find that there is a different between what economists say they are doing, and what they actually seem to be doing. Throughout this paper, I restrict my analysis to microeconomic theory, simply because this is the area with which I am more familiar. I intend this paper to be a guide for my fellow students and rising economists, as well as for already practicing economists. I hope it helps the reader better understand methodology and improve her own practice.
ContributorsKang, Dominique (Author) / Schlee, Edward (Thesis director) / Schoellman, Todd (Committee member) / Boerner, Rochus (Committee member) / Barrett, The Honors College (Contributor)
Created2013-05
Description
Drawing from the fields of coastal geography, political ecology, and institutions, this dissertation uses Cape Cod, MA, as a case study, to investigate how chronic and acute climate-related coastal hazards, socio-economic characteristics, and governance and decision-making interact to produce more resilient or at-risk coastal communities. GIS was used to model the impacts of sea level rise (SLR) and hurricane storm surge scenarios on natural and built infrastructure. Social, gentrification, and tourism indices were used to identify communities differentially vulnerable to coastal hazards. Semi-structured interviews with planners and decision-makers were analyzed to examine hazard mitigation planning.
The results of these assessments demonstrate there is considerable variation in coastal hazard impacts across Cape Cod towns. First, biophysical vulnerability is highly variable with the Outer Cape (e.g., Provincetown) at risk for being temporarily and/or permanently isolated from the rest of the county. In most towns, a Category 1 accounts for the majority of inundation with impacts that will be intensified by SLR. Second, gentrification in coastal communities can create new social vulnerabilities by changing economic bases and disrupting communities’ social networks making it harder to cope. Moreover, higher economic dependence on tourism can amplify towns’ vulnerability with reduced capacities to recover. Lastly, low political will is an important barrier to effective coastal hazard mitigation planning and implementation particularly given the power and independence of town government on Cape Cod. Despite this independence, collaboration will be essential for addressing the trans-boundary effects of coastal hazards and provide an opportunity for communities to leverage their limited resources for long-term hazard mitigation planning.
This research contributes to the political ecology of hazards and vulnerability research by drawing from the field of institutions, by examining how decision-making processes shape vulnerabilities and capacities to plan and implement mitigation strategies. While results from this research are specific to Cape Cod, it demonstrates a broader applicability of the “Hazards, Vulnerabilities, and Governance” framework for assessing other hazards (e.g., floods, fires, etc.). Since there is no “one-size-fits-all” approach to mitigating coastal hazards, examining vulnerabilities and decision-making at local scales is necessary to make resiliency and mitigation efforts specific to communities’ needs.
The results of these assessments demonstrate there is considerable variation in coastal hazard impacts across Cape Cod towns. First, biophysical vulnerability is highly variable with the Outer Cape (e.g., Provincetown) at risk for being temporarily and/or permanently isolated from the rest of the county. In most towns, a Category 1 accounts for the majority of inundation with impacts that will be intensified by SLR. Second, gentrification in coastal communities can create new social vulnerabilities by changing economic bases and disrupting communities’ social networks making it harder to cope. Moreover, higher economic dependence on tourism can amplify towns’ vulnerability with reduced capacities to recover. Lastly, low political will is an important barrier to effective coastal hazard mitigation planning and implementation particularly given the power and independence of town government on Cape Cod. Despite this independence, collaboration will be essential for addressing the trans-boundary effects of coastal hazards and provide an opportunity for communities to leverage their limited resources for long-term hazard mitigation planning.
This research contributes to the political ecology of hazards and vulnerability research by drawing from the field of institutions, by examining how decision-making processes shape vulnerabilities and capacities to plan and implement mitigation strategies. While results from this research are specific to Cape Cod, it demonstrates a broader applicability of the “Hazards, Vulnerabilities, and Governance” framework for assessing other hazards (e.g., floods, fires, etc.). Since there is no “one-size-fits-all” approach to mitigating coastal hazards, examining vulnerabilities and decision-making at local scales is necessary to make resiliency and mitigation efforts specific to communities’ needs.
ContributorsGentile, Lauren Elyse (Author) / Bolin, Bob (Thesis advisor) / Wentz, Elizabeth (Committee member) / White, Dave (Committee member) / York, Abigail (Committee member) / Arizona State University (Publisher)
Created2016
Description
Prior research on consumer behavior in health insurance markets has primarily focused on individual decision making while relying on strong parametric assumptions about preferences. The aim of this dissertation is to improve the traditional approach in both dimensions. First, I consider the importance of joint decision-making in individual insurance markets by studying how married couples coordinate their choices in these markets. Second, I investigate the robustness of prior studies by developing a non-parametric method to assess decision-making in health insurance markets. To study how married couples make choices in individual insurance markets I estimate a stochastic choice model of household demand that takes into account spouses' risk aversion, spouses' expenditure risk, risk sharing, and switching costs. I use the model estimates to study how coordination within couples and interaction between couples and singles affects the way that markets adjust to policies designed to nudge consumers toward choosing higher value plans, particularly with respect to adverse selection.
Finally, to assess consumer decision-making beyond standard parametric assumptions about preferences, I use second--order stochastic dominance rankings. Moreover, I show how to extend this method to construct bounds on the welfare implications of choosing dominated plans.
Finally, to assess consumer decision-making beyond standard parametric assumptions about preferences, I use second--order stochastic dominance rankings. Moreover, I show how to extend this method to construct bounds on the welfare implications of choosing dominated plans.
ContributorsSanguinetti, Tomas (Author) / Kuminoff, Nicolai V. (Thesis advisor) / Schlee, Edward (Committee member) / Ketcham, Jonathan (Committee member) / Silverman, Daniel (Committee member) / Arizona State University (Publisher)
Created2020