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Model for linking poverty/GDP with probability of conflict
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This is the Collier model (which perhaps might be the same as the Collier-Hoeffler model)
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The formulation used here is as per the quantification provided in Collier's book The Bottom Billion
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It appears to be linked to the models set out in this World Bank paper by Collier and Hoeffler, which modelled war in Africa http://documents.worldbank.org/curated/en/822561468768022483/pdf/28128.pdf
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More about the rebel-greed hypothesis is set out here: https://www.jstor.org/stable/174593?seq=1
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This paper also appeared relevant: https://www.econ.nyu.edu/user/debraj/Courses/Readings/CollierHoeffler.pdf
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CollierRisk of civil war in a typical low income country in 5 years14%
The Bottom Billion, Chapter 2, page 20
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Collier
Improvement in war probability for each %age point of growth
1%
The Bottom Billion, Chapter 2, page 20
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Model excluding tail risk (based on a putative poverty reduction intervention in Kenya)
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Impact of Giving on GDP
Population of Kenya49,700,000
Source: whatever comes up first when googling "Population of Kenya"
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Impact of Giving on GDP
Proportion that is poor36.80%
Source: world bank data https://www.indexmundi.com/facts/indicators/SI.POV.DDAY/compare?country=ke
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Impact of Giving on GDP
Population on a low income in Kenya18,289,600
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Impact of Giving on GDP
Cost per person$1,000
GiveDirectly intervention involves giving c$1000 to each poor person.
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Impact of Giving on GDP
Total cost$18,289,600,000
Unmodelled: admin costs -- if this happened at scale, maybe would need to invest more in admin, e.g. maybe more effort would be needed to verify identity
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Impact of Giving on GDP
Rate of return10%
Source: GiveWell cost effectiveness analysis, 'User Inputs' tab; https://www.givewell.org/how-we-work/our-criteria/cost-effectiveness/cost-effectiveness-models
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Impact of Giving on GDP
Improvement in GDP per capita from investment return$100
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Impact of Giving on GDP
Assumed time period over which $1000 of capital is spent10years
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Impact of Giving on GDP
Improvement in GDP per capita from spending cash$100
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Impact of Giving on GDP
Add in factor for impact on currency?unmodelled
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Impact of Giving on GDP
Improvement in GDP per capita$200
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Impact of Giving on GDP
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Impact of Giving on GDP
Kenya-wide GDP per capita$1,711https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=KE
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Impact of Giving on GDP
Improvement in gdp per cap$73.60
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Impact of Giving on GDP
% improvement in gdp4.30%per annum
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Reduction in prob(war)
Reduction in probability of war over next 5 years4.30%
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Reduction in prob(war)
Discount rate5%
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Reduction in prob(war)
No of years between wars5
The Bottom Billion, Chapter 2, page 20
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Reduction in prob(war)
Modified discount rate27.63%
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Reduction in prob(war)
Present value0.16wars averted
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No of deathsNo of battle-related deaths over 1989-20181,408,882
Source: took the data from Uppsala (UCDP) and summed column M https://ucdp.uu.se/downloads/index.html#battlerelated
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No of conflictsNo of conflicts over 1989-2018179
Source: took the data from Uppsala (UCDP) and counted distinct conflicts from column A https://ucdp.uu.se/downloads/index.html#battlerelated
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Deaths per conflictDeaths per conflict 1989-20187,871
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Excl tail risk
Cost per death averted
Expected no of battle deaths averted because of poverty intervention
1,226
Ignores tail nuclear risk
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Excl tail risk
Cost per death averted
Total cost of intervention$18,289,600,000
Ignores tail nuclear risk
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Excl tail risk
Cost per death averted
Cost per death averted$14,920,178
Ignores tail nuclear risk
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Model including tail risk (based on a putative poverty reduction intervention in India and Pakistan)
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Tail riskIndiaPopulation on a low income in India50,000,000
https://timesofindia.indiatimes.com/india/new-data-may-show-big-cut-in-number-of-poor/articleshow/67705787.cms
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Tail riskPakistanPoverty headcount ratio at $1.90 a day (2011 PPP) (% of population)3.90%
http://povertydata.worldbank.org/poverty/country/PAK
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Tail riskPakistanPopulation, total212,200,000
http://povertydata.worldbank.org/poverty/country/PAK
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Tail riskPakistanPopulation on a low income in Pakistan8,275,800
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Tail riskIndia and PakistanPopulation on a low income 58,275,800
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Tail riskCost to raise all out of poverty$58,275,800,000
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Tail risk
Expected deaths in nuclear scenario
Prob(at least 1 million dead)30%
Source: https://www.fhi.ox.ac.uk/reports/2008-1.pdf (also mentioned here https://forum.effectivealtruism.org/posts/PAYa6on5gJKwAywrF/how-likely-is-a-nuclear-exchange-between-the-us-and-russia)
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Tail risk
Expected deaths in nuclear scenario
Prob(at least 1 billion dead)10%
Source: https://www.fhi.ox.ac.uk/reports/2008-1.pdf (also mentioned here https://forum.effectivealtruism.org/posts/PAYa6on5gJKwAywrF/how-likely-is-a-nuclear-exchange-between-the-us-and-russia)
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Tail risk
Expected deaths in nuclear scenario
Prob(human extinction)1%
Source: https://www.fhi.ox.ac.uk/reports/2008-1.pdf (also mentioned here https://forum.effectivealtruism.org/posts/PAYa6on5gJKwAywrF/how-likely-is-a-nuclear-exchange-between-the-us-and-russia)
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Tail risk
Expected deaths in nuclear scenario
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Tail risk
Expected deaths in nuclear scenario
Probability
Expected number of deaths (geometric average)
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Tail risk
Expected deaths in nuclear scenario
1 million to 1 billion dead20%31,622,777
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Tail risk
Expected deaths in nuclear scenario
1 billion to 7 billion dead10%2,645,751,311
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Tail risk
Expected deaths in nuclear scenario
7 billion dead1%7,000,000,000
Note: this gives no credit to people not born yet
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Tail risk
Expected deaths in nuclear scenario
Expected number of deaths (calc)340,899,686
Note: this assumes that the deaths predicted in the survey relate to one conflict. On balance this seems reasonable, given that the other surveys mentioned in the Luisa Rodriguez post (https://forum.effectivealtruism.org/posts/PAYa6on5gJKwAywrF/how-likely-is-a-nuclear-exchange-between-the-us-and-russia) seem to give a probability of incidence which is consistent with that of the FHI 2008 survey used here
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Tail risk
Expected deaths in nuclear scenario
Adjusted for the fact our model is not global34089968.64
The calculation above is based on estimates of the global impact of nuclear war, and this adjustment is to account for the fact that the poverty intervention is imagined to happen in one country
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Tail risk
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Tail riskCost per death avertedExpected no of battle deaths averted because of poverty intervention5,309,173
Ignores tail nuclear risk
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Tail riskCost per death avertedTotal cost of intervention$58,275,800,000
Ignores tail nuclear risk
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Tail risk
Cost per death averted
Cost per death averted$10,976
Ignores tail nuclear risk
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