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Page 1: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Lecture -- 7 -- Start

Page 2: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Outline

1. Science, Method & Measurement2. On Building An Index3. Correlation & Causality4. Probability & Statistics5. Samples & Surveys6. Experimental & Quasi-experimental Designs7. Conceptual Models8. Quantitative Models9. Complexity & Chaos10. Recapitulation - Envoi

Page 3: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Outline

1. Science, Method & Measurement2. On Building An Index3. Correlation & Causality4. Probability & Statistics5. Samples & Surveys6. Experimental & Quasi-experimental Designs7. Conceptual Models8. Quantitative Models9. Complexity & Chaos10. Recapitulation - Envoi

Page 4: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Quantitative Techniques for Social Science Research

Ismail SerageldinAlexandria

2012

Lecture # 7:Conceptual Models

Page 5: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Our World Is One Of Rapid Social Change

Page 6: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality
Page 7: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality
Page 8: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

AND IN MANY PARTS OF THE WORLD …

DEATH IS A DAILY AFFAIR…

Page 9: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality
Page 10: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality
Page 11: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality
Page 12: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality
Page 13: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality
Page 14: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality
Page 15: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality
Page 16: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

So Let’s Design A Conceptual Model Of Social Change

Page 17: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

A Model of Social Change:

Understanding the Dynamics

Page 18: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

CULTURAL ASPECTS

PROGRESS STAGNATION BREAKDOWN

NEW SOCIAL POSITION

VALUES INSTITUTIONS

START POSITION

Page 19: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

CULTURAL ASPECTS

ECONOMIC STRUCTURE

PROGRESS STAGNATION BREAKDOWN

NEW SOCIAL POSITION

VALUES INSTITUTIONS

START POSITION

Page 20: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

CULTURAL ASPECTS

SOCIAL STRUCTURE

ECONOMIC STRUCTURE

PROGRESS STAGNATION BREAKDOWN

NEW SOCIAL POSITION

VALUES INSTITUTIONS

START POSITION

Page 21: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

CULTURAL ASPECTS

SOCIAL STRUCTURE

ECONOMIC STRUCTURE

PROGRESS STAGNATION BREAKDOWN

NEW SOCIAL POSITION

VALUES INSTITUTIONS

START POSITION

Page 22: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

CULTURAL ASPECTS

SOCIAL STRUCTURE

ECONOMIC STRUCTURE

PROGRESS STAGNATION BREAKDOWN

NEW SOCIAL POSITION

VALUES INSTITUTIONS

START POSITION

TRANSACTIONS

Page 23: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

CULTURAL ASPECTS

SOCIAL STRUCTURE

ECONOMIC STRUCTURE

PROGRESS STAGNATION BREAKDOWN

NEW SOCIAL POSITION

SOCIAL CHANGE

VALUES INSTITUTIONS

START POSITION

TRANSACTIONS

Page 24: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

CULTURAL ASPECTS

SOCIAL STRUCTURE

ECONOMIC STRUCTURE

PROGRESS STAGNATION BREAKDOWN

NEW SOCIAL POSITION

SOCIAL CHANGE

VALUES INSTITUTIONS

START POSITION

TRANSACTIONS

Page 25: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

CULTURAL ASPECTS

SOCIAL STRUCTURE

ECONOMIC STRUCTURE

PROGRESS STAGNATION BREAKDOWN

NEW SOCIAL POSITION

SOCIAL CHANGE

VALUES INSTITUTIONS

START POSITION

TRANSACTIONS

Page 26: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

CULTURAL ASPECTS

SOCIAL STRUCTURE

ECONOMIC STRUCTURE

PROGRESS STAGNATION BREAKDOWN

NEW SOCIAL POSITION

SOCIAL CHANGE

VALUES INSTITUTIONS

START POSITION

TRANSACTIONS

Page 27: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

CULTURAL ASPECTS

SOCIAL STRUCTURE

ECONOMIC STRUCTURE

PROGRESS STAGNATION BREAKDOWN

NEW SOCIAL POSITION

SOCIAL CHANGE

VALUES INSTITUTIONS

START POSITION

TRANSACTIONS

Page 28: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

CULTURAL ASPECTS

SOCIAL STRUCTURE

ECONOMIC STRUCTURE

PROGRESS STAGNATION BREAKDOWN

NEW SOCIAL POSITION

SOCIAL CHANGE

VALUES INSTITUTIONS

START POSITION

TRANSACTIONS

Page 29: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

CULTURAL ASPECTS

SOCIAL STRUCTURE

ECONOMIC STRUCTURE

PROGRESS STAGNATION BREAKDOWN

NEW SOCIAL POSITION

SOCIAL CHANGE

VALUES INSTITUTIONS

START POSITION

TRANSACTIONS

Page 30: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

CULTURAL ASPECTS

SOCIAL STRUCTURE

ECONOMIC STRUCTURE

PROGRESS STAGNATION BREAKDOWN

NEW SOCIAL POSITION

SOCIAL CHANGE

VALUES INSTITUTIONS

START POSITION

TRANSACTIONS

EXTERNAL INFLUENCES

EXTERNAL INFLUENCES

Page 31: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Within This Process

• Change is being accelerated• External drivers of change are

increasingly important• The cultural dimension is where and

how the mediation with the new and the external occurs

• Culture cannot be underestimated

Page 32: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

A Sub -Model Of Cultural Change:

Understanding the Dynamics

Page 33: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

A Three -Tiered Model

Explaining Cultural Dynamics and How Cultures Change

Page 34: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Intellectual Domain

Perceptual Domain

Physical Domain

Page 35: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Theoretical Ethics

Intellectual Domain

Perceptual Domain

Physical Domain

Page 36: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Theoretical Ethics

Practical Ethics

Intellectual Domain

Perceptual Domain

Physical Domain

Page 37: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Theoretical Ethics

Practical Ethics

Social Praxis

Intellectual Domain

Perceptual Domain

Physical Domain

Page 38: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Theoretical Ethics

Practical Ethics

Social Praxis

Intellectual Domain

Perceptual Domain

Physical Domain

Page 39: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Theoretical Ethics

Practical Ethics

Social Praxis

Social Values

Intellectual Domain

Perceptual Domain

Physical Domain

Page 40: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Theoretical Ethics

Practical Ethics

Social Praxis

Social Values

Individual Behavior

Intellectual Domain

Perceptual Domain

Physical Domain

Page 41: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Theoretical Ethics

Practical Ethics

Social Praxis

Social Values

Individual Behavior

Intellectual Domain

Perceptual Domain

Physical Domain

Page 42: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Theoretical Ethics

Practical Ethics

Social Praxis

Social Values

Individual Behavior

Intellectual Domain

Perceptual Domain

Physical Domain

Quran

Page 43: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Theoretical Ethics

Practical Ethics

Social Praxis

Social Values

Individual Behavior

Intellectual Domain

Perceptual Domain

Physical Domain

Quran

Sunna of the Prophet

Page 44: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Theoretical Ethics

Practical Ethics

Social Praxis

Social Values

Individual Behavior

Intellectual Domain

Perceptual Domain

Physical Domain

Quran

Sunna of the ProphetGreek and Latin influences

Page 45: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Theoretical Ethics

Practical Ethics

Social Praxis

Social Values

Individual Behavior

Intellectual Domain

Perceptual Domain

Physical Domain

Quran

Sunna of the ProphetGreek and Latin influences

Local Influences

Page 46: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Theoretical Ethics

Practical Ethics

Social Praxis

Social Values

Individual Behavior

Intellectual Domain

Perceptual Domain

Physical Domain

Quran

Sunna of the ProphetGreek and Latin influences

Local Influences

Modernizing Influences

Page 47: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Theoretical Ethics

Practical Ethics

Social Praxis

Social Values

Individual Behavior

Intellectual Domain

Perceptual Domain

Physical Domain

Quran

Sunna of the ProphetGreek and Latin influences

Local Influences

Modernizing Influences

Page 48: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Theoretical Ethics

Practical Ethics

Social Praxis

Social Values

Individual Behavior

Intellectual Domain

Perceptual Domain

Physical Domain

Quran

Sunna of the ProphetGreek and Latin influences

Local Influences

Modernizing Influences

Page 49: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Theoretical Ethics

Practical Ethics

Social Praxis

Social Values

Individual Behavior

Intellectual Domain

Perceptual Domain

Physical Domain

Quran

Sunna of the ProphetGreek and Latin influences

Local Influences

Modernizing Influences

Physical Change

Page 50: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Theoretical Ethics

Practical Ethics

Social Praxis

Social Values

Individual Behavior

Intellectual Domain

Perceptual Domain

Physical Domain

Quran

Sunna of the ProphetGreek and Latin influences

Local Influences

Education

Modernizing Influences

Physical Change

Page 51: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Theoretical Ethics

Practical Ethics

Social Praxis

Social Values

Individual Behavior

Intellectual Domain

Perceptual Domain

Physical Domain

Quran

Sunna of the ProphetGreek and Latin influences

Local Influences

Mass Media

Education

Modernizing Influences

Physical Change

Page 52: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Theoretical Ethics

Practical Ethics

Social Praxis

Social Values

Individual Behavior

Intellectual Domain

Perceptual Domain

Physical Domain

Quran

Sunna of the ProphetGreek and Latin influences

Local Influences

New Ideas

Mass Media

Education

Modernizing Influences

Physical Change

Page 53: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Transactions and Trust

Page 54: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Transactions And Trust

Page 55: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

CULTURAL ASPECTS

SOCIAL STRUCTURE

ECONOMIC STRUCTURE

PROGRESS STAGNATION BREAKDOWN

NEW SOCIAL POSITION

SOCIAL CHANGE

VALUES INSTITUTIONS

START POSITION

TRANSACTIONS

EXTERNAL INFLUENCES

EXTERNAL INFLUENCES

Page 56: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Transactions

Page 57: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

There was outstanding work done on this by Coleman in his magisterial Foundations of

Social Theory

James S. Coleman(1926 – 1995)

Page 58: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Barter Exchange

A B

g + s

g + s

Page 59: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Exchange with Promise to Pay

g + s

Pa

A B Time 1

g + s

Pa

A B Time 2

Page 60: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Exchange with third party promise to pay

g + s

Pa

A B Time 1

g + s

Pa

B C Time 2

g + s

Pa

A C Time 3

Page 61: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Exchange with promise of a Central Bank

g + s g + s

g + s g + s

A Central Bank

E

B D

C

Pa Pa

Pa Pa

Pa Pa

Pb Pd

Page 62: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Cashless System with Central Clearinghouse

B

E

A

C

D

g + s g + s

g + s g + s g + s

g + s

Clearinghouse

Page 63: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Role of Party Machine in Political Exchange

Legislation

Votes for reelection

Votes for legislators

Money and jobs

Legislation

Money

Machine

Voters

Business Legislators

Page 64: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Party Machine as Credit Institution in the Political System

Money

Voters

Business Legislation Legislators

VotesMachineas a clearinghouse of credit

Page 65: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Transaction involving voters, TV, interest groups and legislative candidates

Voters

Interest groups

Television

Legislative candidates

Performers

Entertainment

Attention of voters

Money

Promises

Votes

Money

Attention of voters

Entertainment

Access PromisesMoney

Page 66: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Cultural Transactions

Page 67: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality
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Page 75: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Tipping Points

Page 76: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Systems crash when you cross Tipping Points

Page 77: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality
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Page 79: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Testing Steel Rods

Page 80: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Apply Tension,

Pull on them till they break

Page 81: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Stress(load)

Strain(elongate)

Page 82: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Stress(load)

Strain(elongate)

Page 83: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Stress(load)

Strain(elongate)

Page 84: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Stress(load)

Strain(elongate)

Page 85: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Stress(load)

Strain(elongate)

Page 86: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Stress(load)

Strain(elongate)

Page 87: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Effe

ctiv

enes

s

Number of Connections

Page 88: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

Effe

ctiv

enes

s

Number of Connections

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Effe

ctiv

enes

s

Tipping Point

Number of Connections

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Effe

ctiv

enes

s

Tipping Point

Number of Connections

AnotherTippingPoint ?

Page 91: Lecture -- 7 -- Startsuper7/51011-52001/51491.pdf · 2014-01-31 · Lecture -- 7 -- Start. Outline 1. Science, Method & Measurement 2. On Building An Index 3. Correlation & Causality

The Problem

• We are not sure of the shape of the graph

• Is it the whole graph we are looking at?

• We don’t know where we are on the graph!

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For example:

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But we need to start…

• But we have to start somewhere…• We need the work being done on

sustainable indicators now• Incomplete knowledge is better than

no knowledge at all• So lets improve…

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BUT…

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Purely descriptive models can help in basic understanding of

possible causalities and identification of likely

intervention points

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Predictive models are needed for policy analysis. This requires quantification.

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Quantitative Analysis complements Qualitative

analysis and frequently under-girds it.

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Measuring Trust in Transactions

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Can we quantify such things as trust ?

Can we model it?

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Trust-worthiness

and potential loss and potential

gain

Probability Probability Probability Probability

of of of of

trustworthinesstrustworthinesstrustworthinesstrustworthiness

Potential loss / potential gain

1.0

0.9

0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

00 2 4 6 8 10

Confidence mean

Brother

Friend

Lover

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Formula for potential Loss/Gain

P = chance of receiving gain (the probability that the trustee is trustworthy)

L = potential loss (if trustee is untrustworthy)

G = potential gain (if trustee is trustworthy)

Decision: yes if P is greater than L

1-P G

indifferent if P equals L

1-P G

no if P is less than L

1-P G

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Trust in Government

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Economic growth and trust in Government are closely related

Trust in Government4.5

4

3.5

3

2.5

2

1.5

1

0.5

00-4 -2 2 4 6 8

Growth of per capita GDP (percent per year)

Russia1995

Czech Republic

1995x

x

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Social Capital and Social Integration and Disintegration

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Social Capital and Social Integration and Disintegration

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Topics for another discussion

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For Now…

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Are we sinking? Or Swimming?

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We want everyone swimming

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We want to all fly together…

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Thank You

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