nep-cmp New Economics Papers
on Computational Economics
Issue of 2008‒07‒14
four papers chosen by
Stan Miles
Thompson Rivers University

  1. The Multiproduct Parallel Assembly Lines Balancing Problem: Model and Optimization Procedure By Armin Scholl; Nils Boysen
  2. The impact of demographic uncertainty on public finances in the Netherlands By Alex Armstrong; Nick Draper; Ed Westerhout
  3. International spillovers of domestic reforms By Arjan Lejour; Hugo Rojas-Romagosa
  4. How Much Intraregional Exchange Rate Variability Could a Currency Union Remove? The Case of ASEAN+3 By Duo Qin; Tao Tan

  1. By: Armin Scholl (Chair of Decision Analysis and Management Science, Friedrich-Schiller-University Jena); Nils Boysen (Chair of Operations Management, Friedrich-Schiller-University Jena)
    Abstract: A production system which consists of a number of parallel assembly lines is considered. On each line a certain product is manufactured observing a common cycle time. By arranging the lines in a favourable manner, it is possible to increase efficiency of the production system by combining stations of neighbouring lines when balancing them. The objective is to minimize the number of operators required. This problem is called Multiproduct Parallel Assembly Lines Balancing Problem (MPALBP) and has previously been considered by Gökçen, Agpak, and Benzer (Internat. J. Product. Economics 103, 600-609). In the paper on hand, we give a detailed problem description and model the problem as a binary linear program. Furthermore, an exact solution approach based on an extension of the well-known branch and bound procedure SALOME is proposed. Computational experiments show that this procedure clearly outperforms other approaches as it is able to solve small- to medium-sized problem instances to optimality and provides good heuristic solutions for large-sized problems.
    Keywords: assembly line balancing, parallel assembly lines, combinatorial optimization, branch-and-bound
    Date: 2008–07–03
    URL: http://d.repec.org/n?u=RePEc:jen:jenjbe:2008-13&r=cmp
  2. By: Alex Armstrong; Nick Draper; Ed Westerhout
    Abstract: The expected increase in the ratio of retirees to workers that is due to population ageing is sure to increase pressure on public finances and the Dutch economy in the coming decades. However, because of the uncertainty regarding future demographic developments, the exact extent of the problem is unknown. This paper presents stochastic simulations, i.e. simulations that combine the CGE model of the Dutch economy GAMMA with stochastic population projections.
    Keywords: Demographic Uncertainty; Public Finance; Stochastic Simulations
    JEL: C68 H68 J11
    Date: 2008–04
    URL: http://d.repec.org/n?u=RePEc:cpb:discus:104&r=cmp
  3. By: Arjan Lejour; Hugo Rojas-Romagosa
    Abstract: Using the CGE model WorldScan, we assess the benefits for the EU member states of jointly reaching four of the Lisbon targets (i.e. 70% employment, skills upgrades, increased R&D expenditures and administrative burden reductions of 25%), compared with the alternative when each country unilaterally pursues these reforms. With this approach, we estimate the associated international spillovers of joint EU coordination. Spillovers associated with R&D expenditures are a key factor. When the R&D target is jointly reached in the EU, output almost doubles and consumption experiments an even greater increase. The other three targets also produce positive spillovers, but of a much lower magnitude.
    Keywords: International Policy Spillovers; CGE models; R&D spillovers
    JEL: F42 C68 O33
    Date: 2008–05
    URL: http://d.repec.org/n?u=RePEc:cpb:discus:105&r=cmp
  4. By: Duo Qin (Queen Mary, University of London); Tao Tan (Tianjin University of Finance and Economics)
    Abstract: A multilateral currency union removes the intraregional exchange rates but not the union rate variability with the rest of the world. The intraregional exchange rate variability is thus latent. A two-step procedure is developed to measure the variability. The measured variables are used to model inflation and intraregional trade growth of individual union members. The resulting models form the base for counterfactual simulations of the union impact. Application to ASEAN+3 shows that the intraregional variability consists of mainly short-run shocks, which have significantly affected the inflation and trade growth of major ASEAN+3 members, and that a union would reduce inflation and promote intraregional trade on the whole but the benefits facing each member vary and may not be significant enough to warrant a vote for the union.
    Keywords: Currency union, Latent variables, Dynamic factor model, Simulation
    JEL: F02 F40 O19 O53
    Date: 2008–07
    URL: http://d.repec.org/n?u=RePEc:qmw:qmwecw:wp631&r=cmp

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