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on Computational Economics |
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Issue of 2006‒01‒29
five papers chosen by |
| By: | Hector Chade (Dept. of Economics, Arizona State University); Lones Smith (Dept. of Economics, University of Michigan) |
| Abstract: | We introduce and solve a new class of "downward-recursive" static portfolio choice problems. An individual simultaneously chooses among ranked stochastic options, and each choice is costly. In the motivational application, just one may be exercised from those that succeed. This often emerges in practice, such as when a student applies to many colleges. We show that a greedy algorithm finds the optimal set. The optimal choices are "less aggressive" than the sequentially optimal ones, but "more aggressive" than the best singletons. The optimal set in general contains gaps. We provide a comparative static on the chosen set. |
| Keywords: | college application, submodular optimization, greedy algorithm, directed search |
| JEL: | C61 D83 J64 |
| Date: | 2006–01 |
| URL: | http://d.repec.org/n?u=RePEc:cwl:cwldpp:1556&r=cmp |
| By: | Goldengorin, Boris; Jäger, Gerold (Groningen University) |
| Abstract: | It is widely confirmed by many computational experiments that a greedy type heuristics for the Traveling Salesman Problem (TSP) produces rather poor solutions except for the Euclidean TSP. The selection of arcs to be included by a greedy heuristic is usually done on the base of cost values. We propose to use upper tolerances of an optimal solution to one of the relaxed Asymmetric TSP (ATSP) to guide the selection of an arc to be included in the final greedy solution. Even though it needs time to calculate tolerances, our computational experiments for the wide range of ATSP instances show that tolerance based greedy heuristics is much more accurate an faster than previously reported greedy type algorithms |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:rugsom:05a11&r=cmp |
| By: | Dorothée Boccanfuso (GREDI, Faculte d'administration, Université de Sherbrooke); Luc Savard (GREDI, Faculte d'administration, Université de Sherbrooke) |
| Abstract: | In this paper, we construct the first country specific CGE model for Mali with a micro-simulation component to analyze the poverty and inequality changes of removing cotton subsidies in developed countries. We used the macro-accounting approach proposed by Chen and Ravallion (2004). This issue has attracted significant attention as is has contributed to stall the broader trade agenda. Research on the issue has been mainly done with partial equilibrium analysis with a few exceptions. We use the first CGE-micro-simulation model to investigate. A 17 sectors CGE model with almost 5000 households is used to demonstrate that removal of subsidies on cotton will contribute to significant decrease in poverty in Mali. Our results show that combining the cotton subsidies removal to other agricultural subsidies does not attenuate the positive effects observed. We also show that the subsidies removal would marginally contribute to decrease inequality in Mali. |
| Keywords: | computable general equilibrium model, micro-simulation, poverty analysis, income distribution, agricultural subsidies |
| JEL: | D58 D31 I32 Q17 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:shr:wpaper:06-04&r=cmp |
| By: | Pekka Sulamaa; Mika Widgrén |
| Keywords: | free trade, regionalism, GTAP model, F15; F17 |
| Date: | 2005–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:rif:dpaper:985&r=cmp |
| By: | Sutherland H (Institute for Social & Economic Research) |
| Abstract: | Static microsimulation models are based on household micro-data and are designed to estimate the revenue cost and distributional and incentive effects of tax and benefit policy changes. They are invaluable for the design and evaluation of policy reforms. Static models allow us to hold constant many variables so that we can focus on the aspects of interest. This paper illustrates the range of ways in which static microsimulation can help us to develop policy to reduce child poverty, with reference to some concrete simulation exercises. It also outlines the situations where other types of modelling are complementary and attempts to put all modelling in perspective. The first illustration shows how static microsimulation has been used to gauge the effect on child poverty of the recent UK tax-benefit reforms. The second illustration presents some early results from EUROMOD which explore the relationships between child poverty and the scale of cash benefits and tax concessions targeted on children in four countries of the European Union: Denmark, France, Spain and the UK. |
| Keywords: | Child poverty; Microsimulation; Policy reform; European Union |
| JEL: | C8 I3 |
| Date: | 2447–11 |
| URL: | http://d.repec.org/n?u=RePEc:ese:emodwp:em5/01&r=cmp |