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Cost Effectiveness Analysis and Finding the Best Policies to Fight COVID-19

Robert Stavins: Cost Effectiveness Analysis and Finding the Best Policies to Fight COVID-19




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Analyzing the Federal Government's Use of the Cloud


Since 2009 the federal government started the process of replacing local computers with cloud platforms. A recent report from the Congressional Research Service (CRS) provides an interesting view into the progress of these investments. It reveals the benefits that public agencies gain when using cloud services and the barriers they face when making the transition.

Advantages of Cloud Computing

Cloud computers are superior to locally-run data centers for a variety of reasons. The CRS report identifies six specific cloud benefits:

  • Cost- Cloud computer platforms use resources more efficiently than local servers. An organization that uses local Information Technology (IT) must invest in the infrastructure to support computer systems at times of peak demand. However, most times companies or government agencies require only a fraction of that computing power. Cloud computing allows organizations to pay for all of the resources they need and avoid costly investments in rarely used local IT systems.
  • Energy Efficiency- Cloud computing data centers benefit from economies of scale to run more efficiently than local servers. In some cases this can result in huge energy savings. For a large cloud computing center it also makes economic sense to invest in green energy sources like wind or solar for power.
  • Availability- Cloud computing systems make it easy for any device with an Internet connection to access files or software. However, if a facility temporarily loses Internet access the files on cloud system are inaccessible. Alternatively, a locally administered IT system could function without Internet connectivity.
  • Agility- Cloud systems can make it easier to upgrade operating systems and applications. The available computing power also means that memory intensive software packages are cost effective.
  • Security- Cloud providing companies also have the financial resources to purchase the tools necessary to ensure that networks remain safe.
  • Reliability- Cloud systems can save data onto multiple servers. If a single server goes down due to a cyberattack or another issue, the data is available on another server.

Government Investments in the Cloud

Determining the exact size of government cloud computing expenditures is difficult. Government spending on IT has increased every year from 2001 to 2013 when it reached a peak of $81 billion. In the three subsequent years it has decreased. Cloud computing expenditures likely represent a tiny fraction of that total. Market research firms have estimated that the federal government spends between $1.4 billion and $7 billion on cloud computers annually.

Trends in Total Federal Investment in Information Technology


Source: Congressional Research Service

Challenges for Migrating to the Cloud

The federal government has encountered several barriers in its plan to shift more functions to cloud platforms:

  • High Federal Security Requirements- The government faces new advanced persistent threats routinely. System-wide security updates are necessary more often than for private sector organizations. The short update cycle provides a unique challenge to cloud providers.
  • Adopting New Technologies- Government agencies have ingrained cultures that are slow to change. This shift from locally-based servers to the cloud can be slow and tedious for this reason.
  • Ancillary Technologies- Cloud technologies are known for their flexibility. However, government agencies may lack the necessary IT infrastructure or speedy Internet connections that leverage the maximum potential of the cloud.
  • Technical Know How- Cloud platforms require specialized knowledge to administer. Many government agencies lack the necessary experts to oversee a migration to the cloud.
  • IT Expenditure- Migration to the cloud can involve expensive initial costs. Additional funding is necessary to facilitate the shift to the cloud.

The Future of the Government Cloud

An analysis of the costs and benefits of cloud migration uncover a few specific barriers that the federal government must overcome to earn the full value from new technologies. First, lawmakers must be willing to spend more now to save money later. Cloud systems are cheaper to run than local administered servers but the initial transition costs are high. Current funding levels, which are trending down, are too low to finance such a change. Privacy and security are also major challenges. Government servers host troves of data that Americans expect to remain private. Converting these systems to the cloud will require the government’s full confidence that cloud systems are at least as secure. New legislation is likely necessary to achieve the complimentary goals of privacy and security.

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Image Source: © Donna Carson / Reuters
      
 
 




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How high are infrastructure costs? Analyzing Interstate construction spending

Although the United States spends over $400 billion per year on infrastructure, there is a consensus that infrastructure investment has been on the decline and with it the quality of U.S. infrastructure. Politicians across the ideological spectrum have responded with calls for increased spending on infrastructure to repair this infrastructure deficit. The issue of infrastructure…

       




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The constraints that bind (or don’t): Integrating gender into economic constraints analyses

Introduction Around the world, the lives of women and girls have improved dramatically over the past 50 years. Life expectancy has increased, fertility rates have fallen, two-thirds of countries have reached gender parity in primary education, and women now make up over half of all university graduates (UNESCO 2019). Yet despite this progress, some elements…

       




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The constraints that bind (or don’t): Integrating gender into economic constraints analyses

Introduction Around the world, the lives of women and girls have improved dramatically over the past 50 years. Life expectancy has increased, fertility rates have fallen, two-thirds of countries have reached gender parity in primary education, and women now make up over half of all university graduates (UNESCO 2019). Yet despite this progress, some elements…

       




anal

How high are infrastructure costs? Analyzing Interstate construction spending

Although the United States spends over $400 billion per year on infrastructure, there is a consensus that infrastructure investment has been on the decline and with it the quality of U.S. infrastructure. Politicians across the ideological spectrum have responded with calls for increased spending on infrastructure to repair this infrastructure deficit. The issue of infrastructure…

       




anal

The constraints that bind (or don’t): Integrating gender into economic constraints analyses

Introduction Around the world, the lives of women and girls have improved dramatically over the past 50 years. Life expectancy has increased, fertility rates have fallen, two-thirds of countries have reached gender parity in primary education, and women now make up over half of all university graduates (UNESCO 2019). Yet despite this progress, some elements…

       




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China’s carbon future: A model-based analysis

In 2007, China took the lead as the world’s largest CO2 emitter. Air pollution in China is estimated to contribute to about 1.6 million deaths per year, roughly 17 percent of all deaths in China.  Over the last decade, China has adopted measures to lower the energy and carbon intensity of its economy, partly in…

       




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Willingness to Pay for Health Insurance: An Analysis of the Potential Market for New Low-Cost Health Insurance Products in Namibia


ABSTRACT

This study analyzes the willingness to pay for health insurance and hence the potential market for new low-cost health insurance product in Namibia, using the double bounded contingent valuation (DBCV) method. The findings suggest that 87 percent of the uninsured respondents are willing to join the proposed health insurance scheme and on average are willing to insure 3.2 individuals (around 90 percent of the average family size). On average respondents are willing to pay NAD 48 per capita per month and respondents in the poorest income quintile are willing to pay up to 11.4 percent of their income. This implies that private voluntary health insurance schemes, in addition to the potential for protecting the poor against the negative financial shock of illness, may be able to serve as a reliable income flow for health care providers in this setting.

Read the full paper on ScienceDirect »

Publication: ScienceDirect
Image Source: © Adriane Ohanesian / Reuters
     
 
 




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AI, predictive analytics, and criminal justice

As technology becomes more sophisticated, artificial intelligence (AI) is permeating into new parts of society and being used in criminal justice to assess risks for those in pre-trial or on probation. Predictive analytics raise several questions concerning bias, accuracy, and fairness. Observers worry that these tools replicate injustice and lead to unfair outcomes in pre-trial…

       




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The effect of COVID-19 and disease suppression policies on labor markets: A preliminary analysis of the data

World leaders are deliberating when and how to re-open business operations amidst considerable uncertainty as to the economic consequences of the coronavirus. One pressing question is whether or not countries that have remained relatively open have managed to escape at least some of the economic harm, and whether that harm is related to the spread…

       




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But Will It Work?: Implementation Analysis to Improve Government Performance

Executive Summary Problems that arise in the implementation process make it less likely that policy objectives will be achieved in many government programs. Implementation problems may also damage the morale and external reputations of the agencies in charge of implementation. Although many implementation problems occur repeatedly across programs and can be predicted in advance, legislators…

       




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The politics of federal R&D: A punctuated equilibrium analysis


The fiscal budget has become a casualty of political polarization and even functions that had enjoyed bipartisan support, like research and development (R&D), are becoming divisive issues on Capitol Hill. As a result, federal R&D is likely to grow pegged to inflation or worse, decline.

With the size of the pie fixed or shrinking, requests for R&D funding increases will trigger an inter-agency zero-sum game that will play out as pointless comparisons of agencies’ merit, or worse, as a contest to attract the favor of Congress or the White House. This insidious politics will be made even more so by the growing tendency of equating public accountability with the measurement of performance. Political polarization, tight budgets, and pressure for quantifiable results threaten to undermine the sustainability of public R&D. The situation begs the question: What can federal agencies do to deal with the changing politics of federal R&D?

In a new paper, Walter D. Valdivia and Benjamin Y. Clark apply punctuated equilibrium theory to examine the last four decades of federal R&D, both at the aggregate and the agency level. Valdivia and Clark observe a general upward trend driven by gradual increases. In turn, budget leaps or punctuations are few and far in between and do no appear to have lasting effects. As the politics of R&D are stirred up, federal departments and agencies are sure to find that proposing punctuations is becoming more costly and risky. Consequently, agencies will be well advised in securing stable growth in their R&D budgets in the long run rather than pushing for short term budget leaps.

While appropriations history would suggest the stability of R&D spending resulted from the character of the budget politics, in the future, stability will need the stewardship of R&D champions who work to institutionalize gradualism, this time, in spite of the politics.

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Analysts expect 18GW of subsidy-free renewables in UK by 2030

Britain has already made great progress in decarbonizing the grid. It looks like there's more to come.




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Plastic trash from Amsterdam’s canals turned into lovely furniture

In “fishing” for plastic to create new things, Plastic Whale Circular Furniture tackles a number of problems at once.




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Life Cycle Analysis Compares Footprint of Gas and Electric Passenger Cars

Electric cars are the darlings of the green technology futurists. But wait, cries a receding voice, "what about the environmental impact of all those batteries?" Until recently, that lurking uncertainty shadowed the




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US Geothermal Power Potential 10x That Of Coal Power Plants, New Analysis Shows

The Google-funded research shows that there's 3 million megawatts of geothermal power, across the entire US, waiting to be tapped via enhanced geothermal techniques.




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EPA proposes change to cost benefit analysis with major potential to reduce regulation

Reducing the benefits they can count will reduce the number of regulations that pass the cost-benefit analysis phase of regulation




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Statistical Analysis Shows 2 Degree Temperature Rise Zones in North America

Analysis bridges differences between various climate change models to predict North American climate change with high certainty. Will skeptics finally be convinced?




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Turbine Taps Irrigation Canals for Power

A new type of hydrokinetic turbine sits within irrigation canals and could power several homes from the flow of water.




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Forget about Life-Cycle Analyses, we don't have time.

The CO2 emissions from making stuff like concrete, plastic, aluminum and steel matter right now.




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The stunning wildlife of the Pantanal, the world’s largest wetlands

In honor of World Wetlands Day, we’re turning our gaze towards the Pantanal, the world’s largest wetlands—and one that’s seriously threatened.




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Here's a good analogy for the carbon budget problem

Imagine a bucket of greenhouse gases that's almost full.




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IKEA and H&M analyze the content of recycled fabrics

It turns out, there are a lot of chemicals that have to be dealt with before fabrics can be reused.




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Markets are getting too excited about the oil price rally too soon, analysts warn

Lack of storage space for crude globally remains a massive problem, and will keep a ceiling on oil prices for the near future.




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Nearly a fifth of Wendy's US restaurants are out of beef, analyst says

Stephens Inc. said its estimate is based on an analysis of online menus for every Wendy's location nationwide.




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Uber and Lyft unlikely to see recovery anytime soon, says analyst

Angelo Zino of Equity Research tells CNBC's Squawk Box Asia that Uber and Lyft will not likely see significant recovery until a vaccine is found amid the uncertainty of the coronavirus pandemic.




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Nintendo's 2020 game pipeline is looking weak: Analyst

Despite the strong demand for Nintendo's Switch console and the breakout success of its "Animal Crossing: New Horizons" title, Kazunori Ito of Morningstar Investment Management Asia says he does not see a strong game pipeline for the company this year.




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Dividend payers are still 'winners in this market,' ETF analyst says. Here's why

As more and more S&P 500 companies cut or suspend their dividend payments, one issuer speaks to how his dividend-based exchange-traded fund is managing the shift.




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AT&T will likely be broken up and will move on from WarnerMedia, analyst Craig Moffett predicts

Craig Moffett said on CNBC's "Squawk Box" that AT&T will eventually separate its telecom business from its media business.




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Analyst sees the 'best of times and the worst of times' for video streaming services

NBCUniversal's Peacock launches for Comcast subscribers on Wednesday. With more people staying at home streaming content, one analyst says the environment is primed for Peacock's rollout.




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Buyers appear to be 'calling the bottom' in the JETS airline ETF, market analyst says

As airline stocks tumble, investors in the U.S. Global Jets ETF (JETS) seem to betting on a further bailout for the group, says market researcher Dave Nadig.




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Three stocks in unloved corners of the market could be solid bets: Analyst

David Trainer, CEO of Investment Research Firm New Constructs, sees three prime picks in some of the hardest-hit areas of Wall Street.




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Analyst maintains longer-term view on investments amid lock down

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ECB ruling: German court can only check core of domestic constitution, analyst says

Volker Wieland, endowed chair of monetary economics at the Institute for Monetary and Financial Stability, discusses the impending verdict on whether the ECB's public sector purchase program is legal under German law.




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Second quarter will be 'worst point in time' for European autos, analyst says

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HSBC results were unsurprising given economic fallout from coronavirus, says analyst

HSBC's first-quarter earnings were not surprising given the global economic fallout of the coronavirus pandemic, says Filippo Alloatti, senior credit analyst at Federated Hermes. He also discusses the bank's decision to suspend share buybacks and dividend payouts for now.




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Analyst looking to build portfolios that will 'last the next decade'

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Lebanese citizens on a painful path despite the government's rescue plan, analyst says

Gregg Carlstrom, Middle East Correspondent at The Economist says a haircut for banks in Lebanon seems inevitable despite their recent spat with the government.




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Analyst expects low demand for soft commodities to continue from virus outbreak

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Despite the pullback, analysis shows oil is still headed higher

The NYMEX oil price has pulled back sharply, but the chart suggests it's not a change of the overall uptrend, according to Daryl Guppy.




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Never mind the pullback, technical analysis shows oil is headed for a rebound

The pullback in oil prices takes place within the environment of a well-established uptrend, writes Daryl Guppy.




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Analysis suggests Hong Kong's market is set to decline

Hong Kong's Hang Seng Index is poised for a continuation of its downtrend — with a downside target near 25,200, Daryl Guppy writes.




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Detailed analysis of Charges under the Companies Act 2013

Charge especially gives security and empowers the charge holder that in case the Company makes a default for the repayment of the loan than the charge holder can get the claim amount from the security which was charged by the Company in favor of the charge holder.




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DSP A.C.E. Fund (Analyst's Conviction Equalized) - Series 2 - Regular Plan - Growth

Category Income
NAV 10.658
Repurchase Price
Sale Price
Date 08-May-2020




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DSP A.C.E. Fund (Analyst's Conviction Equalized) - Series 2 - Regular Plan - Dividend Payout

Category Income
NAV 10.658
Repurchase Price
Sale Price
Date 08-May-2020




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DSP A.C.E. Fund (Analyst's Conviction Equalized) - Series 2 - Direct Plan - Growth

Category Income
NAV 10.881
Repurchase Price
Sale Price
Date 08-May-2020




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DSP A.C.E. Fund (Analyst's Conviction Equalized) - Series 2 - Direct Plan - Dividend Payout

Category Income
NAV 10.881
Repurchase Price
Sale Price
Date 08-May-2020




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DSP A.C.E. Fund (Analyst's Conviction Equalized) - Series 1 - Regular Plan - Growth

Category Income
NAV 9.651
Repurchase Price
Sale Price
Date 08-May-2020




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DSP A.C.E. Fund (Analyst's Conviction Equalized) - Series 1 - Regular Plan - Dividend Payout

Category Income
NAV 9.651
Repurchase Price
Sale Price
Date 08-May-2020