Using Structured Decision Making to Help Implement a Precautionary Approach to Endangered Species Management

Endangered species protection is a significant risk management concern throughout North America. An extensive conceptual literature emphasizes the role to be played by precautionary approaches. Risk managers, typically working in concert with concerned stakeholders, frequently cite the concept as key to their efforts to prevent extinctions. Little has been done, however, to evaluate the multidimensional impacts of precautionary frameworks or to assist in the examination of competing precautionary risk management options as part of an applied risk management decision framework. In this article we describe how decision-aiding techniques can assist in the creation and analysis of alternative precautionary strategies, using the example of a multistakeholder committee charged with protection of endangered Cultus Lake salmon on the Canadian west coast. Although managers were required to adopt a precautionary approach, little attention had been given to how quantitative analyses could be used to help define the concept or to how a precautionary approach might be implemented in the face of difficult economic, social, and biological tradeoffs. We briefly review key steps in a structured decision-making (SDM) process and discuss how this approach was implemented to help bound the management problem, define objectives and performance measures, develop management alternatives, and evaluate their consequences. We highlight the role of strategy tables, employed to help participants identify, alternative management options. We close by noting areas of agreement and disagreement among participants and discuss the implications of decision-focused processes for other precautionary resource management efforts.     

Modeling the Public Health System Response to a Terrorist Event in the Food Supply

We have developed a simulation model to quantify and characterize the response of the public health system and the impact of public health advisories in the event of an intentional contamination of the food supply. The model has three components: (1) definition of individual exposure over time and the outcomes of exposure, (2) definition of the geographical dispersal of exposures, and (3) response of the public health authorities to symptomatic individuals. The model explicitly considers the variation in the multiple interrelated facets of the response system, including differences among individuals' responses to exposure, variation between health care providers, and the subsequent processing of samples and confirmation of cases. To illustrate use of the model, case studies with  Escherichia coli  O157:H7 and  Salmonella  spp. in three categories of food vehicle were compared. The level of detail required to run the public health component of the model is not trivial. While some data may not be available for hazards of particular interest in potential bioterrorism events, the application of expert judgment permits comparisons between different agents, different system reactions, and other assumptions within the system. The model provides the capacity to study the impact of system changes, to compare scenarios and to quantify the benefits of improvement in terms of averted exposures and risk reduction, and constitutes a significant aid to understanding and managing these threats. Essentially, the model provides an explicit valuation of time saved in the identification and intervention in terrorist events in the food supply.     

Quantifying costs of forecast errors: A case study of the warehouse environment

Our study evaluates the impact of forecast errors on organizational cost by simulating a labor-intensive warehouse environment using realistic cost data from a case study. Unlike past studies that measure forecast error in terms of forecast standard deviation, our study also considers the impact of forecast bias, and the complex interaction between these variables. Two cases of organizational cost curves are considered, with differing and asymmetric structures. Results find forecast bias to have a considerably greater impact on organizational cost than forecast standard deviation. Particularly damaging is a high bias in the presence of high forecast standard deviation. Although biasing the forecast in the least costly direction is shown to yield lower costs, sensitivity analysis shows that increasing bias beyond the optimum point rapidly increases costs. ‘Overshooting’ the optimal amount of bias appears to be more damaging than not biasing the forecast at all. Given that managers often deliberately bias their forecasts, this finding underscores the importance of having a good understanding of organizational cost structures before arbitrarily introducing bias. This finding also suggests that managers should exercise caution when introducing bias, particularly for forecasts that inherently have large errors. These findings have important implications for organizational decision making beyond the simulated warehouse, as high forecast errors are endemic to many labor-intensive organizations.     

The Evolution of a Contested Concept: A Meta‐Analysis of Social Capital Definitions and Trends (1988–2006)*

This paper offers a meta‐analysis that traces the contested meaning and use of social capital in sociological research over the last 18 years by focusing on journal article definitions. We identify six common definitions in use that closely correspond to the original—and in some cases, independent—formulations offered by Hanifan, Putnam, Coleman, Bourdieu, and Granovetter. Drawing from Kuhnian theory, we contend that these definitions illuminate deep divisions between those who understand social capital as a normative “cure‐all” ( Portes 1998 )—in the tradition of Hanifan, Putnam, and Coleman —and those who view it as a resource—in the tradition of Bourdieu and Granovetter—that may be used to create or maintain social inequality. The transition of social capital from preparadigm to paradigm status may potentially involve an integration of these approaches, but this will require greater consideration of power and inequality on the part of normative theorists, who are currently dominating the debate.     

VALIDATION OF A DIARY MEASURE OF CHILDREN'S PHYSICAL ACTIVITIES

This study compares levels of physical activity of 9–14-year-old children from a self-reported time diary with those measured using an accelerometer. Children (N = 92) wore an accelerometer for one weekend day and completed a 24-hour time diary for that day. The time children spent in moderate to vigorous physical activity from time diaries was moderately highly correlated with the measured results. Self-reported and objective measures of intensity were correlated, but the correlation varied substantially by activity and characteristics of the family. This study provides empirical evidence to support the validity of time-diary estimates when accelerometer data are not available.     

Labour Surplus,Worker Rights and Productivity Growth: A Comparative Analysis of Asia and Latin America

How do labour market conditions, trade union rights and job security regulations affect labour productivity? This paper is the first attempt at an empirical analysis of this important question for a large sample of Asian and Latin American countries. We provide new estimates of the rates of surplus labour in 20 countries, as well as detailed tables summarizing their key regulations governing certain aspects of union activity and layoffs. Then we exploit these and other data in an econometric analysis of intercountry differentials in the growth rate of labour productivity in manufacturing during the 1980s. Among the principal results, we find that, while all else remains the same, productivity growth rates are significantly higher in countries with relatively larger labour surpluses, the effects of excess of labour on productivity growth are affected by the strength or weakness of union rights. We also find that the impacts of union rights and job security protections on productivity trends may be either positive or negative, depending on the labour market situation.     

Intermediate Performance Impacts of Advanced Manufacturing Technology Systems: An Empirical Investigation*

A large-scale random sample is used to empirically examine the relationships between implementation of Advanced Manufacturing Technology (AMT) and three organization-level measures that have historically been attributed to AMT, but not fully tested along the AMT spectrum: market-oriented flexibility of the production process, organizational integration of production processes, and administrative intensity of the organization. Results indicate that as an organization moves along the technology scale from stand-alone AMT (e.g., CNC machines) through functionally oriented AMT (FMS and CAM) toward CIM, not only do its production processes become more integrated with each other, but those processes become more integrated with other functional systems of the organization, and the quality and timeliness of production information increase. Furthermore, this relationship becomes stronger as companies increase their level of implementation for the latter two technologies. Conversely, market-oriented flexibility decreases and administrative intensity is not observed to change as companies move along the technology spectrum. Future research should examine how organizational redesign and implementation strategies that accompany AMT implementation can concomitantly enhance organizational integration of the production process and market-oriented flexibility.     

THE INDUCE VERSUS PURCHASE DECISION: AN EMPIRICAL ANALYSIS OF INDUSTRIAL R&D*

With the recent slowdown in productivity growth within the economy, R&D has come under scrutiny as a policy target variable. If such targeting is to be effective, it must be realized that not all innovations employed within a firm are induced by the firm through its own R&D: many innovations are purchased through technological licensing or in the form of new capital equipment. Here, interfirm differences in this “make” versus “buy” strategy are analyzed within the context of the Utterback-Abernathy production process lifecycle. Our findings suggest that (1) alternative sources to a firm's R&D for stimulating innovation may prove a viable strategy for federal targeting and (2) extrapolating the Utterback-Abernathy model to an industry formulation has empirical validity.     

WHAT MEASURE OF INFLATION SHOULD A CENTRAL BANK TARGET?

This paper assumes that a central bank commits itself to maintaining an inflation target and then asks what measure of the inflation rate the central bank should use if it wants to maximize economic stability. The paper first formalizes this problem and examines its microeconomic foundations. It then shows how the weight of a sector in the stability price index depends on the sector's characteristics, including size, cyclical sensitivity, sluggishness of price adjustment, and magnitude of sectoral shocks. When a numerical illustration of the problem is calibrated to U.S. data, one tentative conclusion is that a central bank that wants to achieve maximum stability of economic activity should use a price index that gives substantial weight to the level of nominal wages. (JEL: E42, E52, E58)