nep-cmp New Economics Papers
on Computational Economics
Issue of 2008‒02‒02
three papers chosen by
Stan Miles
Thompson Rivers University

  1. A stochastic multiple players multi-issues bargaining model for the Piave river basin By Carlo Carraro; Alessandra Sgobbi
  2. Social influence and neighbourhood effects in the health care market. By Montefiori, Marcello; Resta, Marina
  3. Macroeconomic consequences of migration diversion : a CGE simulation for Germany and the UK By Baas, Timo; Brücker, Herbert

  1. By: Carlo Carraro (Department of Economics, University Of Venice Cà Foscari, Fondazione Eni Enrico Mattei, CEPR, CEPS and CMCC); Alessandra Sgobbi (Fondazione Eni Enrico Mattei and CMCC)
    Abstract: The objective of this paper is to investigate the usefulness of non-cooperative bargaining theory for the analysis of negotiations on water allocation and management. We explore the impacts of different economic incentives, a stochastic environment and varying individual preferences on players’ strategies and equilibrium outcomes through numerical simulations of a multilateral, multiple issues, non-cooperative bargaining model of water allocation in the Piave River Basin, in the North East of Italy. Players negotiate in an alternating-offer manner over the sharing of water resources (quantity and quality). Exogenous uncertainty over the size of the negotiated amount of water is introduced to capture the fact that water availability is not known with certainty to negotiating players. We construct the players’ objective function with their direct input. We then test the applicability of our multiple players, multi-issues, stochastic framework to a specific water allocation problem and conduct comparative static analyses to assess sources of bargaining power. Finally, we explore the implications of different attitudes and beliefs over water availability.
    Keywords: Bargaining, non-cooperative game theory, simulation models, uncertainty
    JEL: C61 C71 C78
  2. By: Montefiori, Marcello; Resta, Marina
    Abstract: This work is intended to analyze the market for health care through a computational approach based on unsupervised neural networks. The paper provides a theoretical framework for a computational model that relies on Kohonen's self organizing maps (SOM), arranged into two layers: in the upper layer the competition dynamics of health care providers is modelled, whereas in the lower level patients behaviour is monitored. Interactions take place both vertically between the layers (in a bi–directional way), and horizontally, inside each level, exploiting neighbourhood features of SOM: signals move vertically from hospitals to patients and vice-versa, but they also spread out sideward, from patient to patient, and from hospital to hospital. The result is a new approach addressing the issue of hospital behaviour and demand mechanism modelling, which conjugates a robust theoretical implementation together with an instrument of deep graphical impact.
    Keywords: self organizing maps; health market; adaptive behaviour; incomplete information; mixed market
    JEL: I18 C60
    Date: 2008–01
  3. By: Baas, Timo (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Brücker, Herbert (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    Abstract: "This paper examines the macroeconomic consequences of the diversion of migration flows away from Germany towards the UK in the course of the EU Eastern Enlargement. The EU has agreed with the new member states from Central and Eastern Europe transitional periods for the free movement of workers. The selective application of migration restrictions during the transitional periods has resulted in a reversal of the pre-enlargement allocation of migration flows from the new member states across the EU: Germany as the main destination before enlargement attracts only modest immigration flows since 2004, while the UK and Ireland which have been only marginally affected by immigration prior to enlargement absorb about 60% of the inflows in the post-enlargement period. The macroeconomic effects of this diversion process is analysed in this paper on the basis of a CGE model which considers wage rigidities. We find that higher migration is associated with larger GDP and employment gains, but also with a smaller wage increase and a smaller decline of the unemployment rate. The diversion of migration flows away from Germany towards the UK yields thus a higher GDP and employment growth in the UK. The joint GDP of Germany and the UK declines by 0.1 per cent as a consequence of the migration restrictions." (author's abstract, IAB-Doku) ((en))
    JEL: F15 F22 C68 J61 J30
    Date: 2008–01–28

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