Posts

Showing posts with the label statistical models; multiple regression

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

Wuhan Pandemic, Fatality Rate and Statistical Determinants

The post “ Investigating Wuhan Pandemic Spread and Determinants ” discussed the statistical determinants of the Wuhan pandemic. The analysis used the death incidence as the dependent variable and tested its susceptibility to changes in different independent variables. A couple of interesting pointers emerged. The first was the significant differences in death incidence between advanced economies and emerging or underdeveloped economies. One of the possible explanations was the probability of deaths being attributed to several other causes rather than Chinese virus induced Wuhan flu. There was a possibility that cases were being under-reported and deaths occurring were delinked from the COVID-19. Secondly, contrary to arguments by experts, there was no significance of BCG vaccine programmes on the death incidence. This was little puzzling given the opinion of experts. In the meantime there are anecdotal notes about the impact of temperature on the incidence of coronavirus. It is