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Mixed Levels of Uncertainty in Complex Policy Models
Authors:Casman  Elizabeth A.  Morgan  M. Granger  Dowlatabadi   Hadi
Affiliation:(1) Department of Engineering & Public Policy, Carnegie Mellon University, Pittsburgh, Pennsylvania, 15213
Abstract:
The characterization and treatment of uncertainty poses special challenges when modeling indeterminate or complex coupled systems such as those involved in the interactions between human activity, climate and the ecosystem. Uncertainty about model structure may become as, or more important than, uncertainty about parameter values. When uncertainty grows so large that prediction or optimization no longer makes sense, it may still be possible to use the model as a ldquobehavioral test bedrdquo to examine the relative robustness of alternative observational and behavioral strategies. When models must be run into portions of their phase space that are not well understood, different submodels may become unreliable at different rates. A common example involves running a time stepped model far into the future. Several strategies can be used to deal with such situations. The probability of model failure can be reported as a function of time. Possible alternative ldquosurprisesrdquo can be assigned probabilities, modeled separately, and combined. Finally, through the use of subjective judgments, one may be able to combine, and over time shift between models, moving from more detailed to progressively simpler order-of-magnitude models, and perhaps ultimately, on to simple bounding analysis.
Keywords:Uncertainty  model uncertainty  epistemic uncertainty  integrated assessment
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