Scandizzo has contributed to the field of economics by studying
economic development,
real options theory,
computable general equilibrium models, and the evaluation of risk and uncertainty.
Mauritius, and the
Yucatán Peninsula.
Economic development and policy analysis In an article co-authored with John Dillon and published in the
American Journal of Agricultural Economics, Scandizzo reported on a study employing mind games techniques to assess how subsistence farmers in Northeast Brazil respond to the pervasive uncertainties of their environment. Building on his research findings in the area, he published other articles and the volume
The Agricultural Economy of Northeast Brazil. This book encapsulated the findings of his research project and farm level surveys in the region, exploring its agricultural challenges and opportunities, and evaluating the effects of policies on productivity, sustainability, and rural development. In collaboration with Vincenzo Atella, Scandizzo published the book
The COVID-19 Disruption and the Global Health Challenge, reporting on a study on the genesis and impact of the pandemic on the global economy. Both in the book and related studies, he has addressed the new One Health paradigm, considering health as a peculiar common good, a global resource that intersects human behavior and social choices in a complex and pervasive way.
Cost benefit analysis Cost-benefit analysis is a central theme in much of Scandizzo's research and contributions to professional practices. He has developed and applied methodologies that enhance the accuracy and reliability of economic evaluations.
Risk and uncertainty evaluation Scandizzo examined the significant effects of government market interventions on agricultural efficiency, trade, investment, employment, and income distribution in developing countries, using various methodologies across six country case studies. Alongside Colin Bruce and Ernst Lutz, he found that government intervention in agricultural commodity markets in developing countries often heavily taxes the sector, discourages production, subsidizes consumption, and negatively impacts foreign exchange earnings. In a study published in the
American Journal of Agricultural Economics, Scandizzo assessed how
rational expectations in agricultural production affect market efficiency under risk, demonstrating that competitive market equilibria can be simulated in sector wide mathematical programming models, and illustrated these concepts using a linear programming model for a subsector in Mexico. He also presented a method for solving agricultural sector models under risk to achieve competitive outputs and prices, by using a quadratic programming problem and suggesting linearization techniques for practical solutions. In further studies, conducted in collaboration with Odin Knudsen, published in the
American Journal of Agricultural Economics, as well as in other journals, he explored the possibility of incorporating social demand and supply in cost-benefit analysis, by taking into account of externalities, but remaining within the framework of a market economy. Together with Peter B.R. Hazell and Jock Anderson, Scandizzo co-authored
Risky Agricultural Markets: Price Forecasting and the Need for Intervention Policies discussing how farmers' decisions influence agricultural market efficiency through price-yield correlation in forecasts, proposing policies like production quotas and price stabilization to address market inefficiencies. Additionally, he analyzed risk attitudes among small farm owners and sharecroppers in Brazil using choice experiments, finding that most subsistence farmers are risk-averse, with variations influenced by income levels and other socioeconomic factors.
Real options Scandizzo originated innovations in option theory, applying the concept of value of waiting under uncertainty to various types of non-standard transactions, such as concessions, carbon trading, extortions, and imitators-innovators interaction. In a series of studies co-authored with Odin Knudsen and Marco Ventura, he introduced the concept of liability option, defined as the liability counterpart of the usual waiting option, which arises when the exercise of a real option on the part of its holder implies a threat for a different party.
Climate change and economic policy Scandizzo emphasized the importance of understanding and developing methods to mitigate the effects of climate change on the economy. In the book
Adapting to Climate Changes: How to Evaluate Strategies and Projects, he explored the theoretical aspects of
climate change adaptation, distinguishing between adaptation and adaptability, advocating strategies to enhance adaptive capacity as crucial capital and contingent wealth. He presented a new method for making robust policy decisions under high uncertainty, using option value techniques to identify economically beneficial choices across different scenarios, demonstrated through a pilot exercise in Campeche.
Computable general equilibrium models In an article co-authored with Roger Norton and published in
Operation Research, Scandizzo introduced a method for solving computable general equilibrium (CGE) models using linear programming, adaptable to market controls and distortions, and suitable for both general and non-general equilibrium scenarios. The insights and techniques from this article have been further developed in subsequent works, some of which are documented in a volume (co-edited with Federico Perali), "The New Generation of Computable General Equilibrium Models: Modeling the Economy." This book discusses the evolution of CGE models, covering their theory, applications, methodological advancements, and case studies. In subsequent contributions, the same authors have presented an analysis that integrates
Dynamic Stochastic General Equilibrium (DSGE) models with Computable General Equilibrium (CGE) models to evaluate policy interventions and explore economic-environmental trade-offs, emphasizing capital dynamics and scarcity indicators for sustainable development. ==Awards and honors==