nep-cmp New Economics Papers
on Computational Economics
Issue of 2009‒06‒03
seven papers chosen by
Stan Miles
Thompson Rivers University

  1. Restructuring Facility Networks under Economy of Scales By Marta Sofia R. Monteiro; Dalila B. M. M. Fontes; Fernando A. C. C. Fontes
  2. The Simulation of the Educational Output over the Life Course: The GAMEO Model By Pierre Courtioux; Stéphane Gregoir; Dede Houeto
  3. A 'Live' Version of the HOS Model in Excel By John Gilbert
  4. Economywide impact of avian flu in Ghana: A dynamic CGE model analysis By Diao, Xinshen
  6. Is combination of nodal pricing and average participation tariff the best solution to coordinate the location of power plants with lumpy transmission investments? By Vincent Rious; Philippe Dessante; Yannick Perez
  7. HIV/AIDS, growth and poverty in KwaZulu-Natal and South Africa: Integrating firm-level surveys with demographic and economywide modeling By Thurlow, James; George, Gavin; Gow, Jeff

  1. By: Marta Sofia R. Monteiro (Faculdade de Economia, Universidade do Porto, LIAAD-INESC L.A.,UP); Dalila B. M. M. Fontes (Faculdade de Economia, Universidade do Porto, LIAAD-INESC L.A.,UP); Fernando A. C. C. Fontes (Faculdade de Engenharia, Universidade do Porto, ISR-Porto, UP)
    Abstract: In this work we address the facility network restructuring problem. This problem is closely related to location/allocation and set covering problems. However, none of the above includes all its complexity nor involves all the decision types. Due to the presence of economies of scale, another type of complexity arises since we must minimize a concave cost function. Therefore we are extending current literature by considering a new problem. For this problem a local search heuristic is proposed, where an initially feasible solution, obtained by solving a related linear problem, is improved by a slope scaling procedure and then by drop and swap operations. Computational results showing the effectiveness and efficiency of the solution procedure are reported.
    Keywords: Location, Allocation, Covering, Concave Optimization, Heuristics
    JEL: C61 C44
    Date: 2009–06
  2. By: Pierre Courtioux (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I); Stéphane Gregoir (CEREMADE - CEntre de REcherches en MAthématiques de la DEcision - CNRS : UMR7534 - Université Paris Dauphine - Paris IX); Dede Houeto (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris)
    Abstract: The paper presents the GAMEO model. It is a dynamic microsimulation model which aims at analyse educational output. It develops a generational approach and put the stress on the ditribution of educational output differentiated by type an level of degree.
    Keywords: microsimulation; education
    Date: 2009–06–08
  3. By: John Gilbert (Department of Economics and Finance, Utah State University)
    Abstract: We present a numerical version of the factor proportions (Heckscher-Ohlin-Samuelson) model of production in a small economy, built in Excel. The model features the most common graphical devices used to explain the model properties. It differs from earlier work in that the solution is embedded in the sheet, making the use of the Solver add-in unnecessary. The equilibrium values and graphics respond instantly to changes in parameters/exogenous variables. The model can be used to demonstrate the Stolper-Samuelson and Rybczynski theorems, as well as other scenarios.
    Keywords: Heckcher-Ohlin-Samuelson model, Factor proportions
    JEL: A2 D5 F1
    Date: 2009–06–10
  4. By: Diao, Xinshen
    Abstract: "We use a dynamic CGE model to quantitatively assess the economywide impact of HPAI in Ghana. The likely effect of an avian flu outbreak is modeled as demand or supply shocks to the poultry sector. Our analysis shows that, while chicken is a quite small sector of the Ghanaian economy, the shock in chicken demand due to consumers' anxieties is the dominant factor in causing chicken production to fall. The indirect effect on soybean and maize that are used as chicken feed is also large. Under the worst-case scenario, soybean production will fall by 37 percent and maize by 6.4 percent. However, the economywide impact on both AgGDP and GDP is very small. In the worst-case scenario, in which chicken production falls by 70 percent in 2011, AgGDP falls by only 0.4 percent and GDP is almost unchanged. However, the livelihood impacts of a HPAI outbreak could be significant for some sections of the population in Ghana particularly those involved in the poultry sector. Micro-level analysis of chicken producers' livelihood, therefore, is necessary." from authors' abstract
    Keywords: Avian influenza Developing countries, General equilibrium model, Computable general equilibrium (CGE) modeling, Food safety, Water quality, Water policies,
    Date: 2009
  5. By: Seckin Sunal (Department of Economics, Yildiz Technical University)
    Abstract: Use of computable general equilibrium (CGE) models in analyzing development policies has long been a popular approach. The first models about economic policy issues of developing countries can be dated as far as 1960’s. Since then, a wide span of modelling techniques, model specifications and a variety of subjects have extensively been cherished by economists. In this study a comparison is made between development-oriented CGE models that have been built before and after 1990. The periodization is formed according to the differences observed in CGE models in terms of model specifications, modelling approaches, issues analyzed and techniques used. Due to limitations on accession to publications that belong to the period before 1990, data and findings from former surveys are utilized. Models that belong to the period after 1990 are selected by a random methed. A table that summarizes these models is given at the appendix.
    Keywords: Computable General Equilibrium Models, Developing Countries, Model Comparison
    JEL: C68 D58 O12
    Date: 2009
  6. By: Vincent Rious; Philippe Dessante; Yannick Perez
    Abstract: This paper evaluates the opportunity and efficiency to introduce a two-part tariff to coordinate the location of power plants with lumpy transmission investments. Nodal pricing sends the short run component of such a two-part tariff and we study the case where the average participation tariff sends the long run one. We argue that this solution is helpful because the average participation tariff tackles lumpiness of transmission capacity while being as cost-reflective as possible. Our proposition is evaluated based on a double optimization model where a TSO minimizes the transmission cost while a generator minimizes its own cost that may take into account network constraints and include the average participation tariff. Numerical simulations are performed on a two-node network evolving during twenty years with increasing demand. The joint implementation of nodal pricing and the average participation tariff stays the best combination to coordinate as efficiently as possible the generation and transmission investments, although the optimal set of generation and transmission investments may not be reached because of transmission lumpiness. The simulations show also that implementing locational network tariffs is prioritary over implementing nodal pricing to coordinate more efficiently the location of generation with lumpy transmission investment. In the considered examples, the average participation tariff allows a more efficient location of generation even when the congestion management scheme being redispatch sends no short run locational signal.
    Keywords: Generation investment; Lumpy transmission investment; Long run coordination; Locational signals; Efficiency evaluation
    JEL: D61 H23 K23 L94
    Date: 2009–02–25
  7. By: Thurlow, James; George, Gavin; Gow, Jeff
    Abstract: "This paper estimates the economic impact of HIV/AIDS on KwaZulu-Natal (KZN) and the rest of South Africa (RSA). We extend previous studies by employing an integrated analytical framework that combines the following: firm-level surveys of workers' HIV prevalence by sector and occupation; a demographic model that produces both population and workforce projections; and a regionalized economywide model linked to a survey-based micro-simulation module. This framework permits a full macro-microeconomic assessment. The results indicate that HIV/AIDS greatly reduces annual economic growth, mainly by lowering the long-term rate of technical change. However, the impacts on income poverty are small, and inequality is reduced by HIV/AIDS. This is because high unemployment among low-income households minimizes the economic costs of increased mortality. In contrast, slower economic growth hurts higher-income households despite the lower prevalence of HIV among these households. We conclude that the increase in economic growth achieved through addressing HIV/AIDS is sufficient to offset the population pressure this move will place on income poverty. Moreover, incentives to mitigate HIV/AIDS lie not only with poorer infected households, but also with uninfected higher-income households. Our findings reveal that HIV/AIDS will place a substantial burden on future economic development in KZN and RSA, confirming the need for policies to curb the economic costs of this pandemic." from authors' abstract
    Keywords: HIV/AIDS, Growth, Poverty, Development strategies, KwaZulu-Natal,
    Date: 2009

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