Browsing by Subject "Behavioral economics"

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A behavioral macroeconomic model with endogenous boom-bust cycles and leverage dynamcis
(2011) Scheffknecht, Lukas; Geiger, Felix
We merge a financial market model with leverage-constrained, heterogeneous agents with a reduced-form version of the New-Keynesian standard model. Agents in both submodels are assumed to be boundedly rational. The financial market model produces endogenously arising boom-bust cycles. It is also capable to generate highly non-linear deleveraging processes, fire sales and ultimately a default scenario. Asset price booms are triggered via self-fulfilling prophecies. Asset price busts are induced by agents' choice of an increasingly fragile balance sheet structure during good times. Their vulnerability is inevitably revealed by small, randomly occurring shocks. Our transmission channel of financial market activity to the real sector embraces a recent strand of literature shedding light on the link between the active balance sheet management of financial market participants, the induced procyclical fluctuations of desired risk compensations and their final impact on the real economy. We show that a systematic central bank reaction on financial market developments dampens macroeconomic volatility considerably. Furthermore, restricting leverage in a countercyclical fashion limits the magnitude of financial cycles and hence their impact on the real economy.
Behavioral economic impact on animal health surveillance system in Thailand
(2021) Kewprasopsak, Tossapond; Reiner, Doluschitz
Zoonotic diseases are a continuously significant threat to global human and livestock health (causing millions of deaths yearly). Zoonotic diseases are not only a human health threat, but also a threat to animal health and welfare. Moreover, they have a high impact on national economies and food security due to productivity and production reduction. Expanding worldwide travel and global trade increases the importance of the threat of zoonotic diseases. The increase in global meat consumption contrasts with the escalating instability of the global meat market, which is affected by the increase of livestock densities, changes in production intensity, and slaughtering systems, causing animal disease outbreaks to spread widely. This study focuses on the animal disease surveillance system in Thailand as an important world meat exporter. In 2014, the Participatory One Health Disease Detection project, or PODD was set up by the veterinary inspection authorities to test animal epidemic control systems using smartphone applications in the Chiang Mai province in northern Thailand The main objectives of this study are (i) to evaluate the economic impact of the PODD system on farmers by impact assessment (n = 177) (ii) to demonstrate the impact of monetary and non-monetary incentives on the PODD reporters by the experimental approach (n = 17), (iii) and to present the effect of the socioeconomic factors and behavioral bias on farmers animal disease reporting behavior with the logit model (n = 467). Focusing on the first objective, the results of this study concluded that there is an impact on the farmers. The technology alone cannot improve animal health security in the short-term. In the second objective, the results concluded that, in the case of the PODD reporters, the decision of using monetary incentives to motivate most of the PODD reporters has a negative impact in the long-term. Losing reporter motivation and effort reflected to the low efficiency of the digital surveillance system of PODD and no impact on farmers. Concerning In the last objective, the results concluded that the optimistic bias of farmers has a very high impact on their decision making about reporting animal diseases on their farm. Just one infected farm in the case of dairy milk farmers can spread the foot-and-mouth disease to other farms. The new digital animal health surveillance system alone is not enough to reduce the impact of animal diseases of farmers. Suitable motivation for the reports and awareness of farmers optimistic bias in animal disease reporting cannot be neglected in digital animal disease surveillance system improvement. Overall, it can be concluded that the digital animal disease surveillance system is a powerful instrument for reducing the impact of animal diseases and increasing food safety and security. However, application of this advanced technology still needs time to demonstrate the impact and to be broadly adopted by users. In terms of motivation, the monetary incentive can increase the effort of report in the short run but it comes at a high cost and has a negative impact in the long-term. While the social incentive costs less and is more effective in the long-term. Where farmers’ animal disease reporting behavior is concerned, the optimistic bias is the highest influential factor on the farmers reporting decisions, in an inverse correlation.
Behavioral economic impact on animal health surveillance system in Thailand (correct version of the dissertation)
(2021) Kewprasopsak, Tossapond
Zoonotic diseases are a continuously significant threat to global human and livestock health (causing millions of deaths yearly). Zoonotic diseases are not only a human health threat, but also a threat to animal health and welfare. Moreover, they have a high impact on national economies and food security due to productivity and production reduction. Expanding worldwide travel and global trade increases the importance of the threat of zoonotic diseases. The increase in global meat consumption contrasts with the escalating instability of the global meat market, which is affected by the increase of livestock densities, changes in production intensity, and slaughtering systems, causing animal disease outbreaks to spread widely. This study focuses on the animal disease surveillance system in Thailand as an important world meat exporter. In 2014, the Participatory One Health Disease Detection project, or PODD was set up by the veterinary inspection authorities to test animal epidemic control systems using smartphone applications in the Chiang Mai province in northern Thailand The main objectives of this study are (i) to evaluate the economic impact of the PODD system on farmers by impact assessment (n = 177) (ii) to demonstrate the impact of monetary and non-monetary incentives on the PODD reporters by the experimental approach (n = 17), (iii) and to present the effect of the socioeconomic factors and behavioral bias on farmers animal disease reporting behavior with the logit model (n = 467). Focusing on the first objective, the results of this study concluded that there is an impact on the farmers. The technology alone cannot improve animal health security in the short-term. In the second objective, the results concluded that, in the case of the PODD reporters, the decision of using monetary incentives to motivate most of the PODD reporters has a negative impact in the long-term. Losing reporter motivation and effort reflected to the low efficiency of the digital surveillance system of PODD and no impact on farmers. Concerning In the last objective, the results concluded that the optimistic bias of farmers has a very high impact on their decision making about reporting animal diseases on their farm. Just one infected farm in the case of dairy milk farmers can spread the foot-and-mouth disease to other farms. The new digital animal health surveillance system alone is not enough to reduce the impact of animal diseases of farmers. Suitable motivation for the reports and awareness of farmers optimistic bias in animal disease reporting cannot be neglected in digital animal disease surveillance system improvement. Overall, it can be concluded that the digital animal disease surveillance system is a powerful instrument for reducing the impact of animal diseases and increasing food safety and security. However, application of this advanced technology still needs time to demonstrate the impact and to be broadly adopted by users. In terms of motivation, the monetary incentive can increase the effort of report in the short run but it comes at a high cost and has a negative impact in the long-term. While the social incentive costs less and is more effective in the long-term. Where farmers animal disease reporting behavior is concerned, the optimistic bias is the highest influential factor on the farmers’ reporting decisions, in an inverse correlation.