Risk Analysis: Celebrating the Accomplishments and Embracing Ongoing Challenges

As part of the celebration of the 40th anniversary of the Society for Risk Analysis and Risk Analysis: An International Journal, this essay reviews the 10 most important accomplishments of risk analysis from 1980 to 2010, outlines major accomplishments in three major categories from 2011 to 2019, discusses how editors circulate authors’ accomplishments, and proposes 10 major risk-related challenges for 2020–2030. Authors conclude that the next decade will severely test the field of risk analysis.     

Addiction science and the perception of freewill

Do people think individuals with Substance Use Disorder (SUD) have freewill? How does addiction science inform views on the issue? We distinguish between two senses of freewill: 1) libertarian freewill , in which freedom turns on a particular metaphysical conception of action (sometimes operationalized as “could have done otherwise”), and 2) compatibilist freewill , in which freedom depends on the relation between the actor's psychology and her actions (e.g., “was the act what she wanted to do?”). We argue that, in different ways, scientific accounts can impact conceived freewill by linking addictive behavior to mechanisms that observers view as peripheral to the actor ( motivation modularity) . While a variety of impacts on conceived compatibilist freewill are plausible, we argue that contemporary addiction science has no direct bearing on conceived libertarian freewill. Addiction science may, however, indirectly impact conceived libertarian freewill by priming an explanatory framework in which intention is superfluous (especially materialism).     

Multivariate distributions defined in terms of contours

The paper deals with the problem of using contours as the basis for defining probability distributions. First, the most general probability densities with given contours are obtained and the particular cases of circular and elliptical contours are dealt with. It is shown that the so-called elliptically contoured distributions do not include all possible cases. Next, the case of contours defined by polar coordinates is analyzed including its simulation and parameter estimation. Finally, the case of cumulative distribution functions with given contours is discussed. Several examples are used for illustrative purposes.     

Sibling Conflict and Ineffective Parenting as Predictors of Adolescent Boys' Antisocial Behavior and Peer Difficulties: Additive and Interactional Effects

Extensive sibling conflict is predictive of multiple poor adjustment outcomes during adolescence and early adulthood, but the frequency and developmental impact of such conflict may be conditional on ineffective parenting. Thus, sibling conflict may add to or amplify the negative effects of ineffective parenting on adolescent boys' adjustment. Hypotheses in this study were that: (a) multiple informant measures of problematic parent–child relationships and of sibling conflict would form distinct constructs rather than a single negative family process construct, and (b) ineffective parenting, sibling conflict, and their interaction measured at ages 10 to 12 would predict boys' concurrent status and developmental trajectories for antisocial behavior and peer adjustment across a 4‐year span from ages 12 to 16. Confirmatory factor and latent growth modeling analyses were consistent with these hypotheses, demonstrating the important developmental impact of sibling conflict.     

Sampling Returns for Realized Variance Calculations: Tick Time or Transaction Time?

This article introduces a new model for transaction prices in the presence of market microstructure noise in order to study the properties of the price process on two different time scales, namely, transaction time where prices are sampled with every transaction and tick time where prices are sampled with every price change. Both sampling schemes have been used in the literature on realized variance, but a formal investigation into their properties has been lacking. Our empirical and theoretical results indicate that the return dynamics in transaction time are very different from those in tick time and the choice of sampling scheme can therefore have an important impact on the properties of realized variance. For RV we find that tick time sampling is superior to transaction time sampling in terms of mean-squared-error, especially when the level of noise, number of ticks, or the arrival frequency of efficient price moves is low. Importantly, we show that while the microstructure noise may appear close to IID in transaction time, in tick time it is highly dependent. As a result, bias correction procedures that rely on the noise being independent, can fail in tick time and are better implemented in transaction time.     

A circular-cone test for testing homogeneity against a simple tree order

Several methods exist for the problem of testing the equality of several treatments against the one-sided alternative that the treatments are better than the control. These methods include Dunnett's test, Bartholomew's likelihood-ratio test, the Abelson-Tukey-Schaafsma-Smid optimal-contrast test, and the multiple-contrast test of Mukerjee, Robertson, and Wright. A new test is proposed based on an approximation of the likelihood-ratio test of Bartholomew. This test involves using a circular cone in place of the alternative-hypothesis cone. The circular-cone test has excellent power characteristics similar to those of Bartholomew's test. Moreover, it has the advantages of being simpler to compute and may be used with unequal sample sizes.     

Immigrants' Language Skills and Visa Category1

This article is concerned with the determinants of English language proficiency among immigrants in a longitudinal survey for Australia. It focuses on both visa category and variables derived from an economic model of the determinants of destination‐language proficiency among immigrants. Skills‐tested and economic immigrants have the greatest proficiency shortly after immigration, followed by family‐based visa recipients, with refugees having the lowest proficiency. Other variables the same, these differences disappear by 3.5 years after immigration for speaking skills; and although they diminish, they persist longer for reading and writing skills. The variables generated from the model of destination‐language proficiency (such as schooling and age at migration) are, in part, predictions of visa category, but they are more important statistically for explaining proficiency.