OTHER TECHNICAL PAPERS
Nov 13, 2009

Uncertainty Analysis of Interdependencies in Dynamic Infrastructure Recovery: Applications in Risk-Based Decision Making

Publication: Journal of Infrastructure Systems
Volume 15, Issue 4

Abstract

The development of preparedness strategies for natural and malevolent man-made hazards and approaches with which to compare such investments is fraught with uncertainty. The dynamic inoperability input-output model (DIIM) quantifies the inoperability that propagates through interdependent sectors following a disruptive event and then diminishes with time. This approach has been shown to quantify the efficacy of preparedness strategies for interconnected sectors of the economy. Work presented in this paper strengthens the DIIM with a multiobjective approach—the uncertainty DIIM—that evaluates the inherent uncertainty in the parameters of interdependency and its impact on projected economic loss calculated using the DIIM. Preparedness strategies can then be compared based on projected economic loss and on their sensitivity to changes in the interdependent nature of infrastructure sectors. Additionally, key sector analyses are discussed, where sectors are ranked according to their sensitivity to changes in interdependent relationships. Such enumeration of key sectors allows decision makers to focus on certain sensitive infrastructure sectors for the development of preparedness strategies. The models developed in this paper are illustrated with numerical examples.

Get full access to this article

View all available purchase options and get full access to this article.

Acknowledgments

The writers wish to thank professor Joost R. Santos and Professor James H. Lambert of the Center for Risk Management of Engineering Systems and Dr. Ed Hall of the UNSPECIFIEDResearch Computing Support Group, all from the University of Virginia, for their valuable comments and assistance during the development of the ideas described in this paper. They also thank the reviewers whose comments contributed greatly to their work.

References

Anderson, C. W., Santos, J. R., and Haimes, Y. Y. (2007). “A risk-based input-output methodology for measuring the effects of the August 2003 Northeast blackout.” Econ. Sys. Res., 19(2), 183–204.
Andrijcic, E., and Horowitz, B. (2006). “A macro-economic framework for evaluation of cyber security risks related to protection of intellectual property.” Risk Anal., 26(4), 907–923.
Barker, K. (2008). “Extensions of inoperability input-output modeling for preparedness decisionmaking: Uncertainty and inventory.” Ph.D. dissertation, Univ. of Virginia, Charlottesville, Va.
Boin, A., and McConnell, A. (2007). “Preparing for critical infrastructure breakdowns: The limits of crisis management and the need for resilience.” J. Contingen. Crisis Manage., 15(1), 50–59.
Bullard, C. W., III, and Sebald, A. V. (1977). “Effects of parametric uncertainty and technological change in input-output models.” Rev. Econ. Stat., 59(1), 75–81.
Cai, J., and Leung, P. (2004). “Linkage measures: A revisit and a suggested alternative.” Econ. Sys. Res., 16(1), 63–83.
Cardoso, D. M., and Sousa, J. F. (2003). “Numerical tools for multi-attribute ranking problems.” Networks, 41(4), 229–234.
Cella, G. (1984). “The input-output measurement of interindustry links.” Oxford Bull. Econom. Statist., 46(1), 73–84.
Chankong, V., and Haimes, Y. Y. (1983). Multiobjective decision making: Theory and methodology, North-Holland, Amsterdam.
Chankong, V., and Haimes, Y. Y. (2008). Multiobjective decision making: Theory and methodology, Dover, New York.
Chenery, H. B., and Watanabe, T. (1958). “International comparisons of the structure of production.” Econometrica, 26(4), 487–521.
Crowther, K. G., and Haimes, Y. Y. (2005). “Application of the inoperability input–output model (IIM) for systemic risk assessment and management of interdependent infrastructures.” Syst. Eng., 8(4), 323–341.
Crowther, K. G., and Haimes, Y. Y. (2009). “Development of the multiregional inoperability input/output model (MRIIM) for spatial explicitness in preparedness of interdependent regions.” System Engineering, in press.
Crowther, K. G., Haimes, Y. Y., and Taub, G. (2007). “Systemic valuation of strategic preparedness with illustrations from Hurricane Katrina.” Risk Anal., 27(5), 1345–1364.
Department of Homeland Security. (2004). National response plan, Office of the Secretary of Homeland Security, Washington, D.C.
Department of Homeland Security. (2005). National planning scenarios. Version 20.1, Office of the National Security Council, Washington, D.C.
Department of Homeland Security. (2006). National infrastructure protection plan, Office of the Secretary of Homeland Security, Washington, D.C.
Dietzenbacher, E. (1992). “The measurement of interindustry linkages: Key sectors in the Netherlands.” Econ. Model., 9(4), 419–437.
Dorfman, R. (1973). “Wassily Leontief’s contribution to economics.” Swed. J. Econ., 75(4), 430–449.
Goicoechea, A., and Hansen, D. R. (1978). “An input-output model with stochastic parameters for economic analysis.” AIIE Trans., 10(3), 285–291.
Haimes, Y. Y. (1982). “Modeling of large scale systems in a hierarchical-multiobjective framework.” Large scale systems, Y. Y. Haimes, ed., North-Holland, Amsterdam, 1–17.
Haimes, Y. Y. (2004). Risk modeling, assessment, and management, 2nd Ed., Wiley, New York.
Haimes, Y. Y., and Chittister, C. G. (2005). “A roadmap for quantifying the efficacy of risk management of information security and interdependent SCADA systems.” Journal of Homeland Security and Emergency Management, 2(2), 12.
Haimes, Y. Y., Crowther, K. G., and Horowitz, B. M. (2008). “Homeland security preparedness: Balancing protection with resilence in emergent systems.” Systems Engineering, 11(4), 287–308.
Haimes, Y. Y., and Hall, W. A. (1977). “Sensitivity, responsivity, stability, and irreversibility as multiobjectives in civil systems.” Adv. Water Resour., 1, 71–81.
Haimes, Y. Y., Horowitz, B. M., Lambert, J. H., Santos, J. R., Crowther, K., and Lian, C. (2005a). “Inoperability input-output model for interdependent infrastructure sectors. I: Theory and methodology.” J. Infrastruct. Syst., 11(2), 67–79.
Haimes, Y. Y., Horowitz, B. M., Lambert, J. H., Santos, J. R., Crowther, K., and Lian, C. (2005b). “Inoperability input-output model for interdependent infrastructure sectors. II: Case studies.” J. Infrastruct. Syst., 11(2), 80–92.
Haimes, Y. Y., and Jiang, P. (2001). “Leontief-based model of risk in complex interconnected infrastructures.” J. Infrastruct. Syst., 7(1), 1–12.
Haimes, Y. Y., Kaplan, S., and Lambert, J. H. (2002). “Risk filtering, ranking, and management framework.” Risk Anal., 22(2), 383–397.
Heal, G., Kearns, M., Kleindorfer, P., and Kunreuther, H. (2006). “Interdependent security in interconnected networks.” Seeds of disaster, roots of response: How private action can reduce public vulnerability, P. E. Auerswald, L. M. Branscomb, T. M. La Porte, and E. O. Michel-Kerjan, eds., Cambridge University Press, New York, 258–275.
Jiang, P., and Haimes, Y. Y. (2004). “Risk management for Leontief-based interdependent systems.” Risk Anal., 24(5), 1215–1229.
Kujawski, E. (2006). “Multi-period model for disruptive events in interdependent systems.” Syst. Eng., 9(4), 281–295.
Lahr, M. L., and Dietzenbacher, E. (2001). Input-output analysis: Frontiers and extensions, Palgrave, New York.
Larichev, O. I., and Moshkovich, H. M. (1995). “ZAPRO-LM—A method and system for ordering multiattribute alternatives.” Eur. J. Oper. Res., 82(3), 503–521.
Leontief, W. W. (1936). “Quantitative input and output relations in the economic system of the United States.” Rev. Econ. Stat., 18(3), 105–125.
Leontief, W. W. (1951a). “Input-output economics.” Sci. Am., 185(4), 15–21.
Leontief, W. W. (1951b). The structure of the American economy, 1919–1939: An empirical application of equilibrium analysis, 2nd Ed., International Arts and Sciences Press, New York.
Leontief, W. W. (1966). Input-output economics, Oxford University Press, New York.
Leung, M., Haimes, Y. Y., and Santos, J. R. (2007). “Supply- and output-side extensions to the inoperability input-output model for interdependent infrastructures.” J. Infrastruct. Syst., 13(4), 299–310.
Li, D., and Haimes, Y. Y. (1988). “The uncertainty sensitivity index method (USIM) and its extension.” Naval Res. Logistics Quart., 35(6), 655–672.
Lian, C. (2006). “Extreme risk analysis of dynamic interdependent infrastructures and sectors of the economy with applications to financial modeling.” Ph.D. dissertation, University of Virginia, Charlottesville, Va.
Lian, C., and Haimes, Y. Y. (2006). “Managing the risk of terrorism to interdependent infrastructure systems through the dynamic inoperability input-output model.” Syst. Eng., 9(3), 241–258.
Luenberger, D. G. (2003). Linear and nonlinear programming, 2nd Ed., Springer, New York.
McCormick, N. J. (1981). Reliability and risk analysis, Academic Press, New York.
Miller, R. E., and Blair, P. D. (1985). Input-output analysis: Foundations and extensions, Prentice-Hall, Englewood Cliffs, N.J.
Okuyama, Y. (2007). “Economic model for disaster impact analysis: Past, present, and future.” Econ. Sys. Res., 19(2), 115–124.
Pannell, D. J. (1997). “Sensitivity analysis of normative economic models: Theoretical framework and practical strategies.” Agric. Econ., 16(2), 139–152.
Pate-Cornell, M. E. (1996). “Uncertainties in risk analysis: Six levels of treatment.” Reliab. Eng. Syst. Saf., 54(2–3), 95–111.
Percoco, M. (2006). “A note on the inoperability input-output model.” Risk Anal., 26(3), 589–594.
Percoco, M., Hewings, G. J. D., and Senn, L. (2006). “Structural change decomposition through a global sensitivity analysis of input-output models.” Econ. Syst. Res., 18(2), 115–131.
Quandt, R. E. (1958). “Probabilistic errors in the Leontief system.” Naval Res. Logistics Quarterly, 5, 155–170.
Quandt, R. E. (1959). “On the solution of probabilistic Leontief systems.” Naval Res. Logistics Quarterly, 6, 295–305.
Rasmussen, P. (1956). Studies in intersectoral relations, North-Holland, Amsterdam.
Rose, A. (1995). “Input-output economics and computable general equilibrium models.” Struct. Change Econ. Dyn., 6(3), 295–304.
Sage, A. P. (1977). Methodology for large-scale systems, McGraw-Hill, New York.
Santos, J. R. (2006). “Inoperability input-output modeling of disruptions to interdependent economic systems.” Syst. Eng., 9(1), 20–34.
Santos, J. R., and Haimes, Y. Y. (2004). “Modeling the demand reduction input-output (I-O) inoperability due to terrorism of interconnected infrastructures.” Risk Anal., 24(6), 1437–1451.
Sebald, A. V., and Bullard, C. W., III. (1976). “Simulation of effects of uncertainty in large linear models.” Proc., 76 Bicentennial Conf. on Winter Simulation, 135–143.
Sonis, M., and Hewings, G. J. D. (1992). “Coefficient change in input-output models: Theory and applications.” Econ. Sys. Res., 4(2), 143–157.
Taleb, N. N. (2007). The black swan: The impact of the highly improbable, Random House, New York.
Taylor, K., and McNabb, R. (2007). “Business cycles and the role of confidence: Evidence for Europe.” Oxford Bull. Econom. Statist., 69(2), 185–208.
Turkington, D. A. (2002). Matrix calculus and zero-one matrices, Cambridge University Press, Cambridge, U.K.
West, G. R. (1986). “A stochastic analysis of an input-output model.” Econometrica, 54(2), 363–374.
Zimmerman, R. (2005). “Critical infrastructure and interdependencies.” McGraw Hill handbook of homeland security, D. Kamien, ed., McGraw-Hill, New York, 523–545.

Information & Authors

Information

Published In

Go to Journal of Infrastructure Systems
Journal of Infrastructure Systems
Volume 15Issue 4December 2009
Pages: 394 - 405

History

Received: Feb 28, 2008
Accepted: Apr 7, 2009
Published online: Nov 13, 2009
Published in print: Dec 2009

Permissions

Request permissions for this article.

Authors

Affiliations

Kash Barker [email protected]
Lecturer, School of Industrial Engineering, Univ. of Oklahoma, 202 West Boyd St., Rm. 124 Norman, OK 73019 (corresponding author). E-mail: [email protected]
Yacov Y. Haimes
L.R. Quarles Professor of Systems and Information Engineering Director, Center for Risk Management of Engineering Systems, Univ. of Virginia, 112 Olsson Hall, Charlottesville, VA 22903.

Metrics & Citations

Metrics

Citations

Download citation

If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.

Cited by

View Options

Get Access

Access content

Please select your options to get access

Log in/Register Log in via your institution (Shibboleth)
ASCE Members: Please log in to see member pricing

Purchase

Save for later Information on ASCE Library Cards
ASCE Library Cards let you download journal articles, proceedings papers, and available book chapters across the entire ASCE Library platform. ASCE Library Cards remain active for 24 months or until all downloads are used. Note: This content will be debited as one download at time of checkout.

Terms of Use: ASCE Library Cards are for individual, personal use only. Reselling, republishing, or forwarding the materials to libraries or reading rooms is prohibited.
ASCE Library Card (5 downloads)
$105.00
Add to cart
ASCE Library Card (20 downloads)
$280.00
Add to cart
Buy Single Article
$35.00
Add to cart

Get Access

Access content

Please select your options to get access

Log in/Register Log in via your institution (Shibboleth)
ASCE Members: Please log in to see member pricing

Purchase

Save for later Information on ASCE Library Cards
ASCE Library Cards let you download journal articles, proceedings papers, and available book chapters across the entire ASCE Library platform. ASCE Library Cards remain active for 24 months or until all downloads are used. Note: This content will be debited as one download at time of checkout.

Terms of Use: ASCE Library Cards are for individual, personal use only. Reselling, republishing, or forwarding the materials to libraries or reading rooms is prohibited.
ASCE Library Card (5 downloads)
$105.00
Add to cart
ASCE Library Card (20 downloads)
$280.00
Add to cart
Buy Single Article
$35.00
Add to cart

Media

Figures

Other

Tables

Share

Share

Copy the content Link

Share with email

Email a colleague

Share