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3 | Model for linking poverty/GDP with probability of conflict | |||||||||||||||||||||||||
4 | This is the Collier model (which perhaps might be the same as the Collier-Hoeffler model) | |||||||||||||||||||||||||
5 | The formulation used here is as per the quantification provided in Collier's book The Bottom Billion | |||||||||||||||||||||||||
6 | 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 | |||||||||||||||||||||||||
7 | More about the rebel-greed hypothesis is set out here: https://www.jstor.org/stable/174593?seq=1 | |||||||||||||||||||||||||
8 | This paper also appeared relevant: https://www.econ.nyu.edu/user/debraj/Courses/Readings/CollierHoeffler.pdf | |||||||||||||||||||||||||
9 | Collier | Risk of civil war in a typical low income country in 5 years | 14% | The Bottom Billion, Chapter 2, page 20 | ||||||||||||||||||||||
10 | Collier | Improvement in war probability for each %age point of growth | 1% | The Bottom Billion, Chapter 2, page 20 | ||||||||||||||||||||||
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12 | Model excluding tail risk (based on a putative poverty reduction intervention in Kenya) | |||||||||||||||||||||||||
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14 | Impact of Giving on GDP | Population of Kenya | 49,700,000 | Source: whatever comes up first when googling "Population of Kenya" | ||||||||||||||||||||||
15 | Impact of Giving on GDP | Proportion that is poor | 36.80% | Source: world bank data https://www.indexmundi.com/facts/indicators/SI.POV.DDAY/compare?country=ke | ||||||||||||||||||||||
16 | Impact of Giving on GDP | Population on a low income in Kenya | 18,289,600 | |||||||||||||||||||||||
17 | Impact of Giving on GDP | Cost per person | $1,000 | GiveDirectly intervention involves giving c$1000 to each poor person. | ||||||||||||||||||||||
18 | 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 | ||||||||||||||||||||||
19 | Impact of Giving on GDP | Rate of return | 10% | Source: GiveWell cost effectiveness analysis, 'User Inputs' tab; https://www.givewell.org/how-we-work/our-criteria/cost-effectiveness/cost-effectiveness-models | ||||||||||||||||||||||
20 | Impact of Giving on GDP | Improvement in GDP per capita from investment return | $100 | |||||||||||||||||||||||
21 | Impact of Giving on GDP | Assumed time period over which $1000 of capital is spent | 10 | years | ||||||||||||||||||||||
22 | Impact of Giving on GDP | Improvement in GDP per capita from spending cash | $100 | |||||||||||||||||||||||
23 | Impact of Giving on GDP | Add in factor for impact on currency? | unmodelled | |||||||||||||||||||||||
24 | Impact of Giving on GDP | Improvement in GDP per capita | $200 | |||||||||||||||||||||||
25 | Impact of Giving on GDP | |||||||||||||||||||||||||
26 | Impact of Giving on GDP | Kenya-wide GDP per capita | $1,711 | https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=KE | ||||||||||||||||||||||
27 | Impact of Giving on GDP | Improvement in gdp per cap | $73.60 | |||||||||||||||||||||||
28 | Impact of Giving on GDP | % improvement in gdp | 4.30% | per annum | ||||||||||||||||||||||
29 | ||||||||||||||||||||||||||
30 | Reduction in prob(war) | Reduction in probability of war over next 5 years | 4.30% | |||||||||||||||||||||||
31 | Reduction in prob(war) | Discount rate | 5% | |||||||||||||||||||||||
32 | Reduction in prob(war) | No of years between wars | 5 | The Bottom Billion, Chapter 2, page 20 | ||||||||||||||||||||||
33 | Reduction in prob(war) | Modified discount rate | 27.63% | |||||||||||||||||||||||
34 | Reduction in prob(war) | Present value | 0.16 | wars averted | ||||||||||||||||||||||
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36 | ||||||||||||||||||||||||||
37 | No of deaths | No of battle-related deaths over 1989-2018 | 1,408,882 | Source: took the data from Uppsala (UCDP) and summed column M https://ucdp.uu.se/downloads/index.html#battlerelated | ||||||||||||||||||||||
38 | No of conflicts | No of conflicts over 1989-2018 | 179 | Source: took the data from Uppsala (UCDP) and counted distinct conflicts from column A https://ucdp.uu.se/downloads/index.html#battlerelated | ||||||||||||||||||||||
39 | Deaths per conflict | Deaths per conflict 1989-2018 | 7,871 | |||||||||||||||||||||||
40 | ||||||||||||||||||||||||||
41 | Excl tail risk | Cost per death averted | Expected no of battle deaths averted because of poverty intervention | 1,226 | Ignores tail nuclear risk | |||||||||||||||||||||
42 | Excl tail risk | Cost per death averted | Total cost of intervention | $18,289,600,000 | Ignores tail nuclear risk | |||||||||||||||||||||
43 | Excl tail risk | Cost per death averted | Cost per death averted | $14,920,178 | Ignores tail nuclear risk | |||||||||||||||||||||
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45 | Model including tail risk (based on a putative poverty reduction intervention in India and Pakistan) | |||||||||||||||||||||||||
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47 | Tail risk | India | Population on a low income in India | 50,000,000 | https://timesofindia.indiatimes.com/india/new-data-may-show-big-cut-in-number-of-poor/articleshow/67705787.cms | |||||||||||||||||||||
48 | Tail risk | Pakistan | Poverty headcount ratio at $1.90 a day (2011 PPP) (% of population) | 3.90% | http://povertydata.worldbank.org/poverty/country/PAK | |||||||||||||||||||||
49 | Tail risk | Pakistan | Population, total | 212,200,000 | http://povertydata.worldbank.org/poverty/country/PAK | |||||||||||||||||||||
50 | Tail risk | Pakistan | Population on a low income in Pakistan | 8,275,800 | ||||||||||||||||||||||
51 | Tail risk | India and Pakistan | Population on a low income | 58,275,800 | ||||||||||||||||||||||
52 | Tail risk | Cost to raise all out of poverty | $58,275,800,000 | |||||||||||||||||||||||
53 | 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) | |||||||||||||||||||||
54 | 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) | |||||||||||||||||||||
55 | 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) | |||||||||||||||||||||
56 | Tail risk | Expected deaths in nuclear scenario | ||||||||||||||||||||||||
57 | Tail risk | Expected deaths in nuclear scenario | Probability | Expected number of deaths (geometric average) | ||||||||||||||||||||||
58 | Tail risk | Expected deaths in nuclear scenario | 1 million to 1 billion dead | 20% | 31,622,777 | |||||||||||||||||||||
59 | Tail risk | Expected deaths in nuclear scenario | 1 billion to 7 billion dead | 10% | 2,645,751,311 | |||||||||||||||||||||
60 | Tail risk | Expected deaths in nuclear scenario | 7 billion dead | 1% | 7,000,000,000 | Note: this gives no credit to people not born yet | ||||||||||||||||||||
61 | 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 | |||||||||||||||||||||
62 | Tail risk | Expected deaths in nuclear scenario | Adjusted for the fact our model is not global | 34089968.64 | 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 | |||||||||||||||||||||
63 | Tail risk | |||||||||||||||||||||||||
64 | Tail risk | Cost per death averted | Expected no of battle deaths averted because of poverty intervention | 5,309,173 | Ignores tail nuclear risk | |||||||||||||||||||||
65 | Tail risk | Cost per death averted | Total cost of intervention | $58,275,800,000 | Ignores tail nuclear risk | |||||||||||||||||||||
66 | Tail risk | Cost per death averted | Cost per death averted | $10,976 | Ignores tail nuclear risk | |||||||||||||||||||||
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