Decision Making as Output and Bounded Rationality

  The classical economics theories proceed on the assumption of rational agents. Rationality implies the economic agents undertake actions or exercise choices based on the cost-benefit analysis they undertake. The assumption further posits that there exists no information asymmetry and thus the agent is aware of all the costs and benefits associated with the choice he or she has exercised. The behavioral school contested the decision stating the decisions in practice are often irrational. Implied there is a continuous departure from rationality. Rationality in the views of the behavioral school is more an exception to the norm rather a rule. The past posts have discussed the limitations of this view by the behavioral school. Economics has often posited rationality in the context in which the choices are exercised rather than theoretical abstract view of rational action. Rational action in theory seems to be grounded in zero restraint situation yet in practice, there are numerous restra

ICMR, Pandemic Data and Prophylaxis: Some Thoughts

In the last couple of months or so, there have been number of posts on the Chinese flu and its consequent impact on socio-economic life in India and across the world. One of the recent posts talked about the Indian strategy in Unlock 2.0. Throughout the lockdown and unlock versions, there have been debates on the feasibility of the same or the alternative solutions to thereof. Many of the previous posts have captured these debates at good length. One post  talked about the importance of the understanding the rate limiting step of the corona virus so that it might enable a mitigating strategy. Similarly, this post discussed the merits or the lack of it about the debate on herd immunity. This post talked about the possible strategy that needs to be factored in while exiting the lockdown. Also this post discusses the disruption in the healthcare equilibrium and how it needs to be tackled as the country faced the pandemic. The economic impact of the same among others is captured in some of these posts here, here and here. There is of course a strong debate as mentioned before between economy first or health first. The post  captures some motivations of the economy first crowd. There is also a discussion here the importance of data in mitigation and future strategies to cope with the flu from Wuhan.  The current post seeks to add on to the matter discussed before in the current time-space context as India continues to grapple the pandemic.

 

The lockdowns are on and off and most of it is at the state level. UP is on a lockdown, quite a number of cities and towns in Maharashtra too are under a lockdown. There was a lockdown in Chennai, Madurai among other places in Tamil Nadu. Assam too imposed a lockdown in metropolitan Guwahati while Kerala has imposed what it terms a triple lockdown in Thiruvananthapuram among other cities. Karnataka imposed a lockdown in Bengaluru among other districts for a week to ten days. Apparently at this moment, across the world, aside of a lockdown very little alternatives are available. These measures are not just in India but visible in cities in US, Australia and Japan too. Yet these lockdowns too create their own diminishing returns with passage of time. The current juncture is at a stage where in absence of a vaccine, the only way that the chain can be broken is social distancing with masks and hand hygiene. This has to be accompanies by what they call test, trace and isolate. There seems to be little options available. There are of course some optimistic voices suggesting an early vaccine perhaps as early as August or September but perhaps it is too much to depend on these given the natural life cycle of vaccine development. Therefore, one needs to understand the options and decode them in order to plan the future strategies.

 

In March/April, the ICMR had suggested the use of hydroxychlorquinine (HCQ) as prophylaxis for the high risk groups. Yet in the two months or so have passed since then but barring a couple of anecdotal data, there is no data or information on the efficacy of these treatment line as prophylaxis. If there were to evidence of its success, then it could be expanded into other vulnerable groups thus reducing the possibility of the spread. There are anecdotes emerging from multiple places about its utility as tool of treatment but no information on the original plan of its being a preventive medicine. It is time that ICMR release the data.

 

Secondly, ICMR is still silent on the links between the viral load and disease severity and viral load with reproduction ratio. It is time to come out with the findings on these important aspects. These findings are likely to go a big way in addressing the apprehensions in the common man or woman as also in the decisions of the policy makers. If there is evidence of low viral load translating into low reproduction ratio, then it would have significant impact in disease planning and mitigation strategy. There must be something lead indicator or coincident indicator that could point out towards a possible superspreaders. Each patient then can be addressed uniquely whether they are potential superspreaders or are low spreaders. The isolation would be more emphasized on the superspreaders. Further, low viral load if it translates into lower disease severity would also link to the healthcare planning and isolation of patients.

 

The waiting game for vaccine and towards that frequent lockdowns might not be everybody’s best interest. The testing too has not increased. The current rate of testing is not even in arithmetic proportion when the testing needs to be in exponential proportion at this moment. At this stage, the ICMR must seek to experiment with new prophylaxis tools just as it is experimenting with various lines of treatment like remdesvir, plasma treatment, HCQ, azithromycin plus zinc among many others. There is of course a recourse towards building immunity through intake of Ayurvedic products. These too could have been experimented, data collected and findings disseminated. If Ayurveda or other India medical herbs could generate certain preventive steps within the human body, it could go a long way in building immunity while slowly opening up the economy.

 

At this stage, lockdowns could only be useful if they facilitate increasing testing. Since people would be at home, it would be easier to test in higher numbers and thus follow up with quick isolation and treatment. Further, this would prevent the spread of the disease into the hinterland as the travel eases in the next few weeks or so. But, this does not come out in strategy of either states or the ICMR at the central level. The increase in antigen tests or the serosurvey tests on a large scale to detect the rate of prevalence too have not taken off in the way they should. India still has not reached one percent of the population being tested when the current infection rates entail testing of 15-20% at the least. This is where ICMR has to emphasize along with the release of the data about the patients and the spread patterns so far.

 

 

 

 

 

 

 


Comments

Popular posts from this blog

Decision Making as Output and Bounded Rationality

The Economics Origins of BCG Matrix

People and the Third Wave of Chinese Virus