scholarly journals The Color of Money: Threshold Effects in Quantum Economics

2021 ◽  
Vol 3 (2) ◽  
pp. 325-332
Author(s):  
David Orrell
Keyword(s):  
Ultimatum Game ◽  
Threshold Effect ◽  
Endowment Effect ◽  
Threshold Effects ◽  
Preference Reversal ◽  
Entropic Force ◽  
Minimum Threshold ◽  
Show Evidence ◽  
Similar Threshold ◽  
Threshold Amount

Many cognitive phenomena of the sort studied by behavioral psychologists show evidence of a threshold effect, where a certain minimum impulse is required in order to produce a change. An example is the phenomenon of preference reversal, where a change in context affects a decision, but only if the effect on perceived utility is sufficiently large. Similar threshold effects play a role in the endowment effect, where the change of context from owning to buying something induces a step change in its perceived value, or the ultimatum game, where people demand a certain minimum threshold amount before a deal can be accepted. The situation is similar to the photoelectric experiment in physics, where a minimum threshold of energy from a photon is required in order to dislodge an electron from an atom. In physics, this quantum of energy is written as the product of Planck’s constant and frequency. This paper uses the concept of entropic force to derive a similar expression for quantum economics. The theory is applied to a range of cognitive and economic phenomena exhibiting a threshold effect.

scholarly journals Does Financial Development Hamper or Improve the Resource Curse? Analysis Based on the Panel Threshold Effect Model

2020 ◽  
Vol 2020 ◽  
pp. 1-10
Author(s):  
ZhiQiang Sun ◽  
ZeXiang Cai
Keyword(s):  
Economic Development ◽  
Financial Development ◽  
Resource Curse ◽  
Threshold Effect ◽  
Endowment Effect ◽  
Financial Resources ◽  
Threshold Effects ◽  
Effect Model ◽  
Resource Endowment ◽  
Level Of Economic Development

This paper analyzes the “resource curse” and “financial threshold effect” that may exist in China and then uses the data from 30 provinces from 2004 to 2018 as research samples. We used linear regression and nondynamic panel threshold models to analyze the financial threshold effects of the “resource curse” hypothesis and the “resource curse” phenomenon. At the same time, we divided the level of financial development to verify the robustness of the research conclusions in this paper. The study found the following: (1) There is a certain correlation between the abundance of resources and economic growth. Whether this can be seen as a “curse” or a “blessing” of resources is significantly related to the degree of financial development. (2) Whether financial development can alleviate the “resource curse” depends on the degree of financial development. In the extremely scarce stage of financial resources, the resource endowment effect is obvious, and the level of economic development in resource-based regions will be higher than in other regions; when the level of financial development is low (financial resources are not scarce and have not reached a reasonable level), the phenomenon of the “resource curse” appears; when the level of financial development is highly developed, economic development benefits more from financial development, and the effects of resource endowment decline. Only when financial development is at a reasonable level can resource endowments effectively raise the level of economic development.

scholarly journals Threshold Effects of Infectious Disease Outbreaks on Livestock Prices: Cases of African Swine Fever and Avian Influenza in South Korea

2021 ◽  
Vol 11 (11) ◽  
pp. 5114
Author(s):  
Hyung-Chul Rah ◽  
Hyeon-Woong Kim ◽  
Aziz Nasridinov ◽  
Wan-Sup Cho ◽  
Seo-Hwa Choi ◽  
...  
Keyword(s):  
Avian Influenza ◽  
Infectious Diseases ◽  
Disease Outbreaks ◽  
African Swine Fever ◽  
Threshold Effect ◽  
Impact Response ◽  
Threshold Effects ◽  
Infectious Disease Outbreaks ◽  
Retail Prices ◽  
The Impact

In this paper we demonstrate the threshold effects of infectious diseases on livestock prices. Daily retail prices of pork and chicken were used as structured data; news and SNS mentions of African Swine Fever (ASF) and Avian Influenza (AI) were used as unstructured data. Models were tested for the threshold effects of disease-related news and SNS frequencies, specifically those related to ASF and AI, on the retail prices of pork and chicken, respectively. The effects were found to exist, and the values of ASF-related news on pork prices were estimated to be −9 and 8, indicating that the threshold autoregressive (TAR) model can be divided into three regimes. The coefficients of the ASF-related SNS frequencies on pork prices were 1.1666, 0.2663 and −0.1035 for regimes 1, 2 and 3, respectively, suggesting that pork prices increased by 1.1666 Korean won in regime 1 when ASF-related SNS frequencies increased. To promote pork consumption by SNS posts, the required SNS frequencies were estimated to have impacts as great as one standard deviation in the pork price. These values were 247.057, 1309.158 and 2817.266 for regimes 1, 2 and 3, respectively. The impact response periods for pork prices were estimated to last 48, 6, and 8 days for regimes 1, 2 and 3, respectively. When the prediction accuracies of the TAR and autoregressive (AR) models with regard to pork prices were compared for the root mean square error, the prediction accuracy of the TAR model was found to be slightly better than that of the AR. When the threshold effect of AI-related news on chicken prices was tested, a linear relationship appeared without a threshold effect. These findings suggest that when infectious diseases such as ASF occur for the first time, the impact on livestock prices is significant, as indicated by the threshold effect and the long impact response period. Our findings also suggest that the impact on livestock prices is not remarkable when infectious diseases occur multiple times, as in the case of AI. To date, this study is the first to suggest the use of SNS to promote meat consumption.

Different policy instruments and the threshold effects on collaboration efficiency in China

2020 ◽  
Vol 47 (3) ◽  
pp. 348-359
Author(s):  
Hua Cheng ◽  
Zhiying Zhang ◽  
Zhongju Liao ◽  
Yong Wei ◽  
Joseph Martial Nkongo Mvondo
Keyword(s):  
Policy Instruments ◽  
Threshold Effect ◽  
Tax Incentives ◽  
Threshold Effects ◽  
Policy Makers ◽  
Tax Incentive ◽  
Important Means ◽  
University Industry ◽  
Positive Effect

Abstract University–industry R&D collaboration is an important means to improve innovation efficiency; many governments have issued policies to promote it. The most frequent policy instruments implemented by policy-makers to foster firms’ innovation are subsidies and tax incentives. The article elaborated on how subsidies and tax incentives influence the R&D collaboration efficiency through a panel dataset from 2009 to 2015 in China. The result showed that subsidies and tax incentives have a positive effect on collaboration efficiency, and the effect of subsidies on output is bigger than that of tax incentives. Taking the intensity of subsidy as a threshold variable, there is a significant single threshold effect on collaboration efficiency. However, there is no threshold effect when the intensity of the tax incentive used as the threshold variable.

scholarly journals Threshold effects and renormalization group evolution of neutrino parameters in TeV scale seesaw models

2014 ◽  
Vol 29 (22) ◽  
pp. 1450114 ◽  
Author(s):  
Srubabati Goswami ◽  
Subrata Khan ◽  
Sasmita Mishra
Keyword(s):  
Renormalization Group ◽  
Numerical Study ◽  
Threshold Effect ◽  
Factorization Method ◽  
Neutrino Masses ◽  
Threshold Effects ◽  
Mixing Angles ◽  
Group Evolution ◽  
Analytic Expressions

We consider the threshold effect on the renormalization group (RG) evolution of the neutrino masses and mixing angles in TeV scale seesaw models. We obtain the analytic expressions using the factorization method in the presence of threshold effects. We also perform numerical study of RG effects in two specific low scale seesaw models following the bottom-up approach and ascertain the role of seesaw thresholds in altering the values of masses and mixing angles during RG evolution.

scholarly journals Threshold Effect in the Relationship between Environmental Regulations and Haze Pollution: Empirical Evidence from PSTR Estimation

2021 ◽  
Vol 18 (23) ◽  
pp. 12423
Author(s):  
Yonglian Chang ◽  
Yingjun Huang ◽  
Manman Li ◽  
Zhengmin Duan
Keyword(s):  
Environmental Governance ◽  
Environmental Regulations ◽  
Regional Distribution ◽  
Electricity Consumption ◽  
Threshold Effect ◽  
Smooth Transition ◽  
Threshold Effects ◽  
Regulatory Policies ◽  
Haze Pollution ◽  
The Impact

The impact of environmental regulations (ER) on haze pollution control has been continuously debated in the field of sustainable development. This paper explores the direct and indirect threshold effects of ER on haze pollution, and five underlying mechanisms—technological innovation (TI), industrial structure (IS), foreign direct investment (FDI), urbanization (UR), and electricity consumption (EC)—are adopted to investigate the indirect threshold effects. Panel data, over the period 2008–2018, of 284 Chinese cities were used and the threshold effects were predicted endogenously based on the panel smooth transition regression (PSTR) model. The results showed the following: (1) For the direct threshold effect, there exists a U-shaped relationship between ER and haze pollution. ER significantly reduced haze pollution when ER < 38.86 due to “cost effects”. However, ER increased haze pollution after the threshold owing to the “green paradox”, which was not significant. (2) For the indirect threshold effect, when TI = 0.37, IS = 39.61, FDI = 7.25, and UR = 42.86, the relationships between ER and haze pollution changed. The changes and corresponding reasons for the indirect threshold effects are discussed in detail. (3) After a comprehensive analysis, the threshold effects have obvious regional distribution characteristics and internal connections. Finally, based on the results, it is essential for governments to enact appropriate environmental regulatory policies and enhance inter-regional synergies in environmental governance.

Testing Alternative Econometric Models on the Existence of Advertising Threshold Effect

1984 ◽  
Vol 21 (3) ◽  
pp. 298-308 ◽  
Author(s):  
Albert C. Bemmaor
Keyword(s):  
Concave Function ◽  
Threshold Level ◽  
Threshold Effect ◽  
Consumer Good ◽  
Cutoff Point ◽  
Switching Regression ◽  
Formal Representation ◽  
Minimum Threshold ◽  
Cross Sectional ◽  
Good Market

Threshold effect of advertising has received wide attention in the marketing literature, but little formal representation of this phenomenon has been developed. On the basis of monthly time-series and cross-sectional data, the author tests for the existence of a threshold effect in a consumer good market. Alternative models are developed and estimated. A switching regression model which assumes a concave function to a cutoff point seems consistent with the evidence. The cutoff point below which advertising has little effect is estimated and the shift of advertising elasticity is assessed. The results show that advertising elasticity increases above the cutoff level, price elasticity is larger for heavily advertised premium brands than for less advertised low-price brands, and a minimum threshold level on advertising share is consistent with the theory.

scholarly journals Threshold Effects of Fiscal Policy on Economic Activity in Developing Countries

2016 ◽  
Vol 6 (3) ◽  
pp. 20 ◽  
Author(s):  
Salma Slimani
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Fiscal Policy ◽  
Budget Deficit ◽  
Threshold Effect ◽  
Current Account Balance ◽  
Threshold Effects ◽  
Average Growth ◽  
Total Investment ◽  
The Relationship

<p>The aim of this paper is to investigate the relationship between fiscal policy and economic growth for a panel of 40 developing countries for the period 1990 – 2012 with a focus on a comparative analysis between Morocco and the panel. The variables used are real GDP, budget deficit, current government spending, national saving, inflation rate, total investment, public debt and current account balance. The main findings are: <em>First</em>, there is evidence of a double threshold effect of the fiscal balance. When exceeding a budget deficit level of 4.8% of GDP or a fiscal surplus level of 3.2% of GDP, economic growth is negatively affected. <em>Second</em>, the sign of the relationship between budget deficit and economic growth is conditioned by the level of total investment. For values of total investment higher than 23%, it follows that there is a positive relationship. However, it becomes negative, when investment falls below this threshold. <em>Third</em>, from Morocco’s perspective, analysis of threshold effects suggested that above 4.8% of budget deficit, average growth rate falls by 2.1%, while median growth falls by 1.5%.</p>

scholarly journals Threshold Effects of PM2.5 Exposure on Particle-Related Mortality in China

2019 ◽  
Vol 16 (19) ◽  
pp. 3549 ◽  
Author(s):  
Tran ◽  
Chang ◽  
Hsu ◽  
Chen ◽  
Tseng ◽  
...  
Keyword(s):  
Air Pollution ◽  
Mortality Rate ◽  
Health Effects ◽  
Cardiovascular Mortality ◽  
Threshold Effect ◽  
Health Impacts ◽  
Threshold Effects ◽  
Coal Consumption ◽  
Pm2.5 Exposure ◽  
Related Mortality

Ambient air pollution from energy use and other sources is a major environmental risk factor in the incidence and progression of serious diseases, such as cardiovascular and respiratory diseases. This study elucidates the health effects of energy consumption from air pollution in China based on multiple threshold effects of the population-weighted exposure to PM2.5 (fine particles less than 2.5 microns in diameter) on particle-related mortality rate. We firstly estimate the causal relationship between coal consumption and PM2.5 in China for 2004–2010 using a panel regression model. Panel threshold models are applied to access the non-linear relationships between PM2.5 and cause-specific mortality rates that indicate the health effects are dependent on the PM2.5 ranges. By combining these steps, we calculate the health impacts of coal consumption based on threshold effects of PM2.5. We find that a 1% coal consumption increase induces a 0.23% increase in PM2.5. A triple threshold effect is found between PM2.5 and cardiovascular mortality; for example, increasing PM2.5 exposure causes cardiovascular mortality rate to increase when PM2.5 lies in 17.7–21.6 μg/m3 and 21.6–34.3 μg/m3, with the estimated increments being 0.81% and 0.26%, respectively, corresponding to 1% PM2.5 increase. A single threshold effect of SO2 on respiratory mortality rate is identified and allows the estimation of the mortality effects of PM2.5 regarding the two regimes of SO2. Finally, we access the health impacts of coal consumption under specific estimated thresholds. This study provides a better understanding of sources contributing to related-air pollution mortality. The multi-threshold effect of PM2.5 could be considered for further applications in harmonizing emission standards in China and other developing countries.

scholarly journals 572. Relationship Between Chlorhexidine Gluconate (CHG) Skin Concentrations and Microbial Skin Colonization among Medical Intensive Care Unit (MICU) Patients

2019 ◽  
Vol 6 (Supplement_2) ◽  
pp. S270-S270
Author(s):  
Yoona Rhee ◽  
Mary K Hayden ◽  
Andrew T Simms ◽  
Rachel D Yelin ◽  
Karen Lolans ◽  
...  
Keyword(s):  
Multilevel Models ◽  
Colorimetric Assay ◽  
Threshold Effect ◽  
Multidrug Resistant ◽  
Threshold Concentration ◽  
Outcome Variable ◽  
Threshold Effects ◽  
Gram Positive ◽  
Gram Positive Bacteria ◽  
Skin Colonization

Abstract Background CHG bathing is used to suppress patients’ microbial skin colonization, in order to prevent infections and transmission of multidrug-resistant organisms. Prior work has suggested that microbial growth is inhibited when CHG skin concentrations exceed threshold levels. Methods We conducted 6 single-day surveys from January 2018 to February 2019 in 7 academic hospital MICUs with established CHG patient bathing. Adult patients were eligible to have skin swabbed from adjacent 25 cm2 areas on the neck, axilla, and inguinal region for culture and CHG concentration determination. CHG skin concentrations were measured by a semi-quantitative colorimetric assay. Selective media were used to isolate targeted microorganisms (Table 1). Species were confirmed by matrix-assisted laser desorption ionization time-of-flight mass spectrometry; antibiotic susceptibility was determined by MicroScan (Beckman Coulter). We modeled the relationship between CHG skin concentrations (log2-transformed) and microorganism recovery (yes/no as primary outcome) using multilevel models controlling for clustering of body sites within patients and within ICUs, assessing slope and threshold effects. Results We enrolled 736/759 (97%) patients and sampled 2176 skin sites. Gram-positive bacteria were detected most frequently (Table 1). The adjusted odds of identifying gram-positive organisms decreased linearly as CHG skin levels increased (Figure 1a), without evidence of a threshold effect. We also found significant negative linear slopes without evidence of threshold effects for other pathogens tested (Table 2; Figure 1), with the exception of gram-negative bacteria and vancomycin-resistant enterococci. When modeling quantitative culture results (colony-forming units) for gram-positive organisms as a continuous outcome variable, a similar relationship was found. Conclusion Higher concentrations of CHG were associated with less frequent recovery of gram-positive bacteria and Candida species on the skin of MICU patients who were bathed routinely with CHG. For microbial inhibition, we did not identify a threshold concentration of CHG on the skin; rather, increasing CHG skin concentrations led to additional gains in inhibition. For infection prevention, aiming for high CHG skin levels may be beneficial. Disclosures All authors: No reported disclosures.

Diminishing Returns? Threshold Effects of Dispositions and Recidivism Among Court-Involved Girls

2021 ◽  
pp. 009385482110031
Author(s):  
Nicole C. McKenna ◽  
Valerie R. Anderson
Keyword(s):  
Juvenile Justice ◽  
Justice System ◽  
Juvenile Justice System ◽  
Juvenile Court ◽  
Threshold Effect ◽  
Threshold Effects ◽  
Community Based ◽  
Court Records ◽  
Court Involved ◽  
The Impact

This study examines juvenile court responses among justice-involved girls. We analyze 10 years of court records on girls ( N = 1,102) from a Midwestern juvenile court to assess the impact of various aspects of placements and dispositions on recidivism outcomes. We explore how the number of dispositions girls receive, the type of disposition, and type of placement affect 2-year recidivism. Our findings indicate there may be a threshold effect to receiving dispositions—receiving three or more dispositions was significantly related to increased recidivism. Furthermore, the combination of receiving both treatment and sanction dispositions was significantly related to an increased likelihood of recidivism. Girls who received only community-based placements were more likely to recidivate than those who did not receive any dispositions. This study advances our understanding of court responses to girls and how these responses influence girls’ experiences and outcomes while involved with the juvenile justice system.

Sign in / Sign up

Export Citation Format

Share Document