Opportunity Cost Research Articles

A paradigm shifts in fintech and rural inclusion challenges in India

FinTech abbreviates as financial technology. India being a developing country having largest population in the world by surpassing the china recently in April 2023. Continuing with conventional method of transaction, most of the people of such a populous country are standing in queue waiting for their turn for financial services. Is it feasible to bear such a time and economical loss arises as opportunity cost due to standing in queue rather than doing some other activity? Therefore, it become need of the time to adopt the advance technological way of doing transactions. Since 2015, India has witnessing its most aggressive phase of financial inclusion initiative ever seen anywhere in the world which brings nearly 330 billion citizens into formal financial sector which still increases to make it a crucial topic for research. In this research, we analyses the rural FinTech literacy requirement with all available means and impact of FinTech facilities on E-commerce and banking sector along with intermediaries role by adopting case study approach. With huge potential for FinTech, India can be the global FinTech super power but challenge is acceptance of FinTech with pace of technological advancement as well as with challenges and security loophole protection.

Acceptability of the Venting Wisely pathway for use in critically ill adults with hypoxaemic respiratory failure and acute respiratory distress syndrome (ARDS): a qualitative study protocol

IntroductionHypoxaemic respiratory failure (HRF) affects nearly 15% of critically ill adults admitted to an intensive care unit (ICU). An evidence-based, stakeholder-informed multidisciplinary care pathway (Venting Wisely) was created to standardise...

Do people with type 2 diabetes find continuous and intermittent low-energy diets for weight loss and diabetes remission acceptable?

The Manchester Intermittent versus Daily Diet App Study (MIDDAS) tested the feasibility and potential efficacy of two remotely delivered low-energy diet (LED) programmes (800 kcal/day) to support weight loss and remission of type 2 diabetes: continuous [CLED] (8 weeks of daily LED) and intermittent [ILED] (2 days of LED/week for 28 weeks). Understanding participant experiences can help us to understand the acceptability of LED programmes to people with type 2 diabetes, informing future programme development and implementation. Twenty participants (10 CLED; 10 ILED) took part in interviews conducted at the end of the active weight loss phase (CLED week 12, ILED week 28). Interviews were transcribed and analysed thematically using the template analysis approach, with an a priori focus on acceptability. Four themes are presented: prospective acceptability, intervention coherence and perceived effectiveness, opportunity costs and self-efficacy. Both remotely supported CLED and ILED interventions appeared acceptable to participants. CLED participants found the rapid initial weight loss phase comparatively easy and highly motivating but expressed more concerns around weight maintenance. ILED participants found the more gradual weight loss initially frustrating but expressed greater confidence in their longer-term adherence. The importance of continued individualised support from healthcare professionals was emphasised, and evidence of weight loss and improvement in other medical markers through monitoring via the mobile phone app was useful. Different approaches to remotely delivered LEDs appear acceptable; therefore asking patients which approach may be more acceptable to them may be a useful way to offer individualised and tailored support.

An Examination to the Policy Market Game of the Inflation Reduction Act--A Response to Energy Revolution

U.S. Inflation Reduction Act as a federal response to energy revolution is a policy game to input least and output most for both legislators and interest groups, resulting in an equilibrium price for demanders of policies to exchange for effective supports of suppliers with re-election resources. The intention of legislators to supply effective supports is subject to ideology preferences, constituent interests and opportunity costs, while the intention of interest groups to purchase their favorite policies is subject to cost-efficient prices of re-election resources. Such an equilibrium theory for examining the Inflation Reduction Act market is able to reflect the U.S. partisan split of ideologies in environment topics, energy revolution in chief sectors of 50 states, U.S. legislative process to pass a bill, but also a huge step to achieve U.S. emission goals or to meet the temperature targets in 2030 that are set in in the Paris Agreement in 2016.

How does a poor labour market affect inequalities in access to postsecondary education? Empirical evidence from 31 affluent countries

Abstract This study examines how macroeconomic conditions affect inequality of educational opportunity. Using longitudinal data from 30 European countries and the USA, we study the effect of changing unemployment rates on the extent of social inequality in postsecondary transitions in the period (2004–2016), which includes the Great Recession. The findings from multilevel models with country fixed effects show that rising unemployment rates tend to increase social inequalities in postsecondary transitions, as youth from low-educated families have increased risk for exclusion from both employment and education, while the likelihood of postsecondary enrolment slightly rises for youth from higher-educated families. Yet, economic downturns also incentivize youth whose parents have middle level of education to opt for postsecondary education, especially in contexts where it is more affordable. Our findings suggest that changing opportunity costs and economic insecurity are the relevant factors to explain changing inequalities in access to postsecondary education during a recession.

Acceptability of community health worker and peer supported interventions for ethnic minorities with type 2 diabetes: a qualitative systematic review

ObjectiveEthnic minority groups in high income countries in North America, Europe, and elsewhere are disproportionately affected by T2DM with a higher risk of mortality and morbidity. The use of community health workers and peer supporters offer a way of ensuring the benefits of self-management support observed in the general population are shared by those in minoritized communities.Materials and methodsThe major databases were searched for existing qualitative evidence of participants’ experiences and perspectives of self-management support for type 2 diabetes delivered by community health workers and peer supporters (CHWPs) in ethnically minoritized populations. The data were analysed using Sekhon’s Theoretical Framework of Acceptability.ResultsThe results are described within five domains of the framework of acceptability collapsed from seven for reasons of clarity and concision: Affective attitude described participants’ satisfaction with CHWPs delivering the intervention including the open, trusting relationships that developed in contrast to those with clinical providers. In considering Burden and Opportunity Costs, participants reflected on the impact of health, transport, and the responsibilities of work and childcare on their attendance, alongside a lack of resources necessary to maintain healthy diets and active lifestyles. In relation to Cultural Sensitivity participants appreciated the greater understanding of the specific cultural needs and challenges exhibited by CHWPs. The evidence related to Intervention Coherence indicated that participants responded positively to the practical and applied content, the range of teaching materials, and interactive practical sessions. Finally, in examining the impact of Effectiveness and Self-efficacy participants described how they changed a range of health-related behaviours, had more confidence in dealing with their condition and interacting with senior clinicians and benefitted from the social support of fellow participants and CHWPs.ConclusionMany of the same barriers around attendance and engagement with usual self-management support interventions delivered to general populations were observed, including lack of time and resource. However, the insight of CHWPs, their culturally-sensitive and specific strategies for self-management and their development of trusting relationships presented considerable advantages.

Long-term care staffs’ experience in facilitating the use of videoconferencing by cognitively impaired long-term care residents during the COVID-19 pandemic: a mixed-methods study

BackgroundDuring the COVID-19 pandemic, numerous long-term care (LTC) homes faced restrictions that prevented face-to-face visits. To address this challenge and maintain family connections, many LTC homes facilitated the use of electronic tablets to connect residents with their family caregivers. Our study sought to explore the acceptability of this practice among staff members and managers, focusing on their experiences with facilitating videoconferencing.MethodsA convergent mixed method research was performed. Qualitative and quantitative data collection through semi-structured interviews to assess the acceptability of videoconferencing in long-term care homes and to explore the characteristics of these settings. Quantitative data on the acceptability of the intervention were collected using a questionnaire developed as part of the project. The study included a convenience sample of 17 staff members and four managers.ResultsManagers described LTC homes’ characteristics, and the way videoconferencing was implemented within their institutions. Affective attitude, burden, ethicality, opportunity costs, perceived effectiveness, and self-efficacy are reported as per the constructs of the Theoretical Framework of Acceptability. The results suggest a favorable acceptability and a positive attitude of managers and staff members toward the use of videoconferencing in long-term care to preserve and promote contact between residents and their family caregivers. However, participants reported some challenges related to the burden and the costs regarding the invested time and staff shortage.ConclusionsLTC home staff reported a clear understanding of the acceptability and challenges regarding the facilitation of videoconferencing by residents to preserve their contact with family caregivers.

Measuring the Economic Viability of Farms in Serbia using the Opportunity Cost Approach

Measuring the Economic Viability of Farms in Serbia using the Opportunity Cost Approach

Task-driven Risk-bounded Hierarchical Reinforcement Learning Based on Iterative Refinement

Deep Reinforcement Learning (DRL) has garnered substantial acclaim for its versatility and widespread applications across diverse domains. Aligned with human-like learning, DRL is grounded in the fundamental principle of learning from interaction, wherein agents dynamically adjust behavior based on environmental feedback in the form of rewards. This iterative trial-and-error process, mirroring human learning, underscores the importance of observation, experimentation, and feedback in shaping understanding and behavior. DRL agents, trained to navigate complex surroundings, refine their knowledge through hierarchical and abstract representations, empowered by deep neural networks. These representations enable efficient handling of long-horizon tasks and flexible adaptation to novel situations, akin to the human ability to construct mental models for comprehending complex concepts and predicting outcomes. Hence, abstract representation building emerges as a critical aspect in the learning processes of both artificial agents and human learners, particularly in long-horizon tasks. Furthermore, human decision-making, deeply rooted in evolutionary history, exhibits a remarkable capacity to balance the tradeoff between risk and cost across various domains. This cognitive process involves assessing potential negative consequences, evaluating factors such as the likelihood of adverse outcomes, severity of potential harm, and overall uncertainty. Humans intuitively gauge inherent risks and adeptly weigh associated costs, extending beyond monetary expenses to include time, effort, and opportunity costs. The nuanced ability of humans to consider the tradeoff between risk and cost highlights the complexity and adaptability of human decision-making, a skill lacking in typical DRL agents. Principles like these derived from human-like learning present an avenue for inspiring advancements in DRL, fostering the development of more adaptive and intelligent artificial agents. Motivated by these observations and focusing on practical challenges in robotics, our efforts target risk-aware stochastic sequential decision-making problem which is crucial for tasks with extended time frames and varied strategies. A novel integration of model-based conditional planning with DRL is proposed, inspired by hierarchical techniques. This approach breaks down complex tasks into manageable subtasks(motion primitives), ensuring safety constraints and informed decision-making. Unlike existing methods, our approach addresses motion primitive improvement iteratively, employing diverse prioritization functions to guide the search process effectively. This risk-bounded planning algorithm seamlessly integrates conditional planning and motion primitive learning, prioritizing computational efforts for enhanced efficiency within specified time limits.

Smallholder participation in zero-deforestation supply chain initiatives in the Indonesian palm oil sector: Challenges, opportunities, and limitations

As actors in tropical agricultural commodity supply chains implement commitments to end deforestation, they risk exacerbating social inequities by excluding smallholder farmers, who are important producers of many tropical commodity crops. Here, we explore the potential for independent oil palm smallholders in Indonesia to participate in zero-deforestation supply chains. We find that these smallholders are underrepresented in the share of zero-deforestation compliant oil palm production. We then synthesize perspectives from key actors in the oil palm industry including smallholders and their representatives, palm oil producing and consulting companies, nongovernmental organizations, and academic researchers. Based on these perspectives, we find that challenges to smallholder supply chain participation include limitations in knowledge (e.g., smallholders may not know the location of protected forests), institutional issues (e.g., absence of trust between oil palm growing companies and smallholder farmers), and financial constraints (e.g., the opportunity cost of not clearing forest). To address these shortcomings, we encourage oil palm growing and milling companies to take the lead on incentivizing, supporting, and facilitating smallholder participation in zero-deforestation initiatives. Specifically, these companies could build and use their technical and political resources to identify and map all forests in their entire supply shed and ensure small producers have land rights that enable participation in zero-deforestation supply chains. These policy levers would need to be combined with economic incentives such as access to improved inputs or price premia for their products. However, we caution that smallholder integration into existing zero-deforestation supply chains alone is unlikely to result in significant additional forest conservation at scale in Indonesia due to selection bias, leakage, and existing land tenure norms. Community-led and jurisdictional or landscape-scale supply chain initiatives that acknowledge multi-commodity production are more likely to provide equitable and just avenues for Indonesian smallholder farmers to steward forest resources.

When can we Kick (Some) Humans “Out of the Loop”? An Examination of the use of AI in Medical Imaging for Lumbar Spinal Stenosis

AbstractArtificial intelligence (AI) has attracted an increasing amount of attention, both positive and negative. Its potential applications in healthcare are indeed manifold and revolutionary, and within the realm of medical imaging and radiology (which will be the focus of this paper), significant increases in accuracy and speed, as well as significant savings in cost, stand to be gained through the adoption of this technology. Because of its novelty, a norm of keeping humans “in the loop” wherever AI mechanisms are deployed has become synonymous with good ethical practice in some circles. It has been argued that keeping humans “in the loop” is important for reasons of safety, accountability, and the maintenance of institutional trust. However, as the application of machine learning for the detection of lumbar spinal stenosis (LSS) in this paper’s case study reveals, there are some scenarios where an insistence on keeping humans in the loop (or in other words, the resistance to automation) seems unwarranted and could possibly lead us to miss out on very real and important opportunities in healthcare—particularly in low-resource settings. It is important to acknowledge these opportunity costs of resisting automation in such contexts, where better options may be unavailable. Using an AI model based on convolutional neural networks developed by a team of researchers at NUH/NUS medical school in Singapore for automated detection and classification of the lumbar spinal canal, lateral recess, and neural foraminal narrowing in an MRI scan of the spine to diagnose LSS, we will aim to demonstrate that where certain criteria hold (e.g., the AI is as accurate or better than human experts, risks are low in the event of an error, the gain in wellbeing is significant, and the task being automated is not essentially or importantly human), it is both morally permissible and even desirable to kick the humans out of the loop.

Land and technology requirements for economically prosperous smallholder farming in sub-Saharan Africa: Evidence from Tanzania

Making a living from a small farm is difficult in sub-Saharan Africa. In this paper, we quantify how difficult, using a simple, robust, relation between per capita daily income from farming (FPDI), land per capita and whole-farm net profitability per hectare. This relation allows the calculation of the land area required to generate various levels of household income as a function of farm performance. We use nationally representative household data for Tanzania to investigate the range of whole-farm profitability and to estimate an upper limit for it. For 6818 cases where households with land reported figures for gross crop and livestock revenues and for costs in any of the three years 2009, 2011 or 2013, actual median whole-farm net profitability was only $454/ha/y even without including the opportunity cost of family labour. When those were considered, median net profitability was negative $238/ha/y, i.e. a net loss. The maximum whole-farm profitability achieved was $4485/ha/y without family labour costs and $2742/ha/y with it. We evaluated actual and potential farm performance for their ability to generate a range of values of FPDI up to $10 per person per day. Most farms are not very profitable, particularly when household labour costs are considered, and few would be considered economically prosperous. Our analysis underscores the fact that improving their operations or adopting new technologies alone is unlikely to lift many smallholder farmers out of poverty in developing countries, given typical farm size distributions and reasonable assumptions about the realized economic returns to adoption of currently available agricultural technologies. While continued agricultural R&D investments are certainly worthwhile, such efforts alone will be insufficient to meaningfully address welfare needs of the world's rural poor. This suggests that agricultural development programs should expand their attention to incorporate off-farm and non-farm components of the rural economy.

Health Prompts Affect Consideration of Health but Not Intertemporal Preferences While Promoting Healthier Food Choices.

Diet-related diseases impact populations across the globe. While intertemporal preferences-a fundamental preference for the distribution of benefits across time-have been used to explain low-quality food choices, the recent literature proposes another cause: inattention to the future implications (or opportunity costs) of the options faced. Food choices tend to become habitual to conserve cognitive resources, rather than carefully modeling future health impacts. Both low discount rates for future benefits and attention to future health impacts predict healthier decisions. While intertemporal preferences are stable, attention may provide an opportunity to intervene in the decision process to promote healthier decisions. In this study, we test the impact of a simple message that highlights health during food choice on the healthiness of the foods chosen and on health consideration and intertemporal preferences. Our results show that actively considering health outcomes and lower discount rates lead to healthier food choices. We find that messaging increases the consideration of health outcomes during food choice but does not affect intertemporal preferences, suggesting that simple prompts may be an effective way to promote decisions balancing short- and long-term benefits by drawing attention to the overlooked opportunity costs of choices.

Association Between Gendered Workplaces and the Length of Childcare Leave

Previous research indicates that mothers base the length of their childcare leave on individual opportunity costs. While workplace dynamics and peer influences may affect the duration of the leave, empirical evidence remains inconclusive. This study investigates the association between childcare leave length and workplace characteristics, as well as peer influences in the Finnish institutional context. In Finland, mothers can extend their earnings-related childcare leave with a flat-rate home care allowance until their child turns three years old. At the same time, they are entitled to subsidised day care, allowing them to choose the length of their childcare leave. Our results show that, in the gender-segregated Finnish labour market, the length of childcare leave among mothers varies based on employment sector, number of employees, peers’ leave length, and the share of women in the workplace.

Deep energy efficiency renovation of Germany’s residential buildings: is this as economically viable as Germany’s policymakers and popular promoters often claim?

Germany needs to steeply increase the rate of deep energy-efficiency renovation of its old buildings, to meet climate goals. The government has long maintained that deep renovation to a specified “minimum” energy efficiency standard is economically viable: that the costs are paid back, through energy savings, over the technical lifetime of the energy-efficiency measures. Many private and public organisations support and promulgate this view. It accords with a stream of academic literature which suggests that the under-adoption of energy efficiency measures is a paradox indicating market failures and economically irrational behaviour by property owners. This paper offers cost–benefit analyses of 44 case study scenarios to test whether deep renovation in Germany pays back in monetary terms. These include both specific buildings and Germany-wide averages of classes of buildings. It uses current construction, finance and energy costs, and takes account of inflation, discount rates and opportunity costs. None of the scenarios are economically viable in monetary terms, and the average payback after 25 years is around 22.5%. Sensitivity analyses suggest payback would only be achieved using improbable parameter values. Energy-efficiency renovation is necessary but promoting it needs to take account of these realities.

Estimating social discount rate for government investment projects in Russia

The article explores methods of estimating discount rate for investment projects financed with budgetary funds and aimed at creating social benefits. Social benefits often do not have a direct monetary value, so the methods for determining the discount rate for such projects differ from market ones. Spending budget funds on investment projects means that society gives up consumption at the current moment in time for the sake of future return on investment. The discount rate should reflect public preferences regarding the distribution of consumption between the current and future periods. The method for estimating these preferences is called the social rate of time preferences. Another approach to determine the discount rate allows one to consider the alternative possibility of implementing a project in the private sector (social opportunity cost of capital). The article describes the development of methods for evaluating the social discount rate and discusses the possibilities of their application for Russia. The value of the social rate of time preferences, equal to 2.5%, and the value of the social opportunity cost of capital, equal to 4.4—5%, are substantiated for short-and medium-term public investment projects in Russia. Rates are given in real terms.

Social environment-based opportunity costs dictate when people leave social interactions

There is an ever-increasing understanding of the cognitive mechanisms underlying how we process others’ behaviours during social interactions. However, little is known about how people decide when to leave an interaction. Are these decisions shaped by alternatives in the environment – the opportunity-costs of connecting to other people? Here, participants chose when to leave partners who treated them with varying degrees of fairness, and connect to others, in social environments with different opportunity-costs. Across four studies we find people leave partners more quickly when opportunity-costs are high, both the average fairness of people in the environment and the effort required to connect to another partner. People’s leaving times were accounted for by a fairness-adapted evidence accumulation model, and modulated by depression and loneliness scores. These findings demonstrate the computational processes underlying decisions to leave, and highlight atypical social time allocations as a marker of poor mental health.

Urgent pandemic messaging of WHO, World Bank, and G20 is inconsistent with their evidence base

AbstractWhen international agencies make claims of an “existential threat” to humanity and advocate for urgent action from countries, it should be a safe assumption that they are consistent with their own data. However, a review of the data and evidentiary citations underlying the claims of the World Health Organization (WHO), the World Bank, and the Group of Twenty (G20) reveals a troubling picture in which the stated urgency and burden of infectious disease outbreaks, namely those of pandemic threat, is grossly misrepresented. These discrepancies in key documents and subsequent recitations in pandemic preparedness proposals have significant policy and financial implications. Disproportionate pandemic preparedness based on these false premises risks a significant opportunity cost through unnecessary diversion of financial and political resources away from global health priorities of higher burden. As WHO Member States plan to transform the way international health emergencies are managed at the World Health Assembly in May 2024, there is a crucial need to pause, rethink, and ensure future policy reflects evidence of need.

Cost Benefit Analysis of Re-Developing the Defunct Panguna Copper Deposit in Autonomous Region of Bougainville

The Autonomous Bougainville Government (ABG) has been obliged to devise socially inclusive mining legislation and policies that were realised through enactment of Mining Act (2015). It recognises community ownership of minerals found in predominantly maternal system of land ownership. The enactment of a separate mining legislation from that of Papua New Guinea (PNG) was a response to socio-political and environmental legacies associated with former Panguna mine. The cost benefit analysis (CBA) study was conducted using historical data from former Panguna mine and conceptual model of redeveloping the defunct Panguna resource. The results show redevelopment of the remaining copper resource could exceed the net benefits of the former mine. The historical and conceptual efficiency ratios (CBR) being greater than 1 depicted that monetary benefits could exceed production and opportunity costs of mining. Despite excluding social and environmental costs of mining, the positive NPV and IRR create opportunities to forge workable partnerships to enhance low-risk options to reduce net costs and maximize the benefits of mining. A major finding of the CBA study was that despite the local ownership of minerals, the mining lease permits and land access are competitive, similar to regalian ownership system. Also, the benefit redistribution structure was found to be similar to PNG’s regalian system where local ownership of minerals may not be a direct form of nationalisation.

Cover crops support the climate change mitigation potential of agroecosystems.

Cover crops have the potential to mitigate climate change by reducing negative impacts of agriculture on ecosystems. This study is first to quantify the net climate change mitigation impact of cover crops including land-use effects. A systematic literature and data review was conducted to identify major drivers for climate benefits and costs of cover crops in maize (Zea maize L.) production systems. The results indicate that cover crops lead to a net climate change mitigation impact (NCCMI) of 3.30 Mg CO2e ha-1 a-1. We created four scenarios with different impact weights of the drivers and all of them showing a positive NCCMI. Carbon land benefit, the carbon opportunity costs based on maize yield gains following cover crops, is the major contributor to the NCCMI (34.5% of all benefits). Carbon sequestration is the second largest contributor (33.8%). The climate costs of cover crops are mainly dominated by emissions from their seed production and foregone benefits due to land use for cover crops seeds. However, these two costs account for only 15.8% of the benefits. Extrapolating these results, planting cover crops before all maize acreage in the EU results in a climate change mitigation of 49.80 million Mg CO2e a-1, which is equivalent to 13.0% of the EU's agricultural emissions. This study highlights the importance of incorporating cover crops into sustainable cropping systems to minimize the agricultural impact to climate change.