nep-cmp New Economics Papers
on Computational Economics
Issue of 2011‒11‒14
twenty papers chosen by
Stan Miles
Thompson Rivers University

  1. Agent Teams and Evolutionary Computation: Optimizing Semi- Parametric Spatial Autoregressive Models By Tamás Krisztin; Matthias Koch
  2. WHY FUZZY ANALYTIC HIERARCHY PROCESS APPROACH FOR TRANSPORT PROBLEMS? By Senay Oguztimur
  3. Redistributive effects of indirect taxes: comparing arithmetical and behavioral simulations in Uruguay By Verónica Amarante; Marisa Bucheli; Cecilia Olivieri; Ivone Perazzo
  4. The regional economic impacts of biofuels: A review of multisectoral modelling techniques and evaluation of applications By Grant Allan
  5. Income tax deduction of commuting expenses and tax funding in an urban CGE study: the case of German cities By Georg Hirte; Stefan Tscharaktschiew
  6. Interregional Interdependence among Ecuadorian Provinces: An Input-Output Analysis By Eduardo Haddad; Juan Manuel Samaniego; Alexandre Porsse; Santiago Ochoa; Luiz Gustavo Souza
  7. Five Issues in the Design of Income Support Mechanisms: The Case of Italy By Colombino, Ugo
  8. Information and Search on the Housing Market: An Agent-based Model By John Mc Breen; Florence Goffette-Nagot; Pablo Jensen
  9. The TIGER Model: Application of detailed passenger and freight transport in a regional CGE setting By Christophe Heyndrickx; Olaf Koops; Olga Ivanova
  10. The SUSTRUS model: a CGE model on regional level for sustainability policies in Russia By Christophe Heyndrickx; Natalia Tourdyeva; Victoria Alexeeva-Talebi
  11. Hierarchical IPF: Generating a synthetic population for Switzerland By Kirill Mueller; Kay W. Axhausen
  12. An evaluation of overseas oil investment projects under uncertainty using a real options based simulation model By Lei Zhu; ZhongXiang Zhang; Ying Fan
  13. Modelling firm (re-)location choice in UrbanSim By Balz R. Bodenmann
  14. Modeling the growth effects of regional knowledge production: The GMR-Europe model and its applications for EU Framework Program policy impact simulations By Attila Varga; Péter Járosi; Tamás Sebestyén
  15. High Dimensional Low Rank and Sparse Covariance Matrix Estimation via Convex Minimization By Xi Luo
  16. The Zurich case study of UrbanSim By Patrick Schirmer; Christof Zöllig; Kirill Müller; Balz Bodenmann; Kay Axhausen
  17. A Computable General Equilibrium Analysis of Electric Vehicle Society in Toyohashi City, Japan By Shamsunnahar Khanam; Yuzuru Miyata; Yan Liu
  18. Price Rigidity and Strategic Uncertainty An Agent-based Approach By Robert Somogyi; Janos Vincze
  19. A multi-agent simulation approach to sustainability in tourism development By Elena Maggi; Fabrizio Stupino; Franco Fredella
  20. Computing Tournament Solutions using Relation Algebra and REL VIEW. By Rudolf Berghammer; Agnieszka Rusinowska; Harrie de Swart

  1. By: Tamás Krisztin; Matthias Koch
    Abstract: Classical spatial autoregressive models share the same weakness as the classical linear regression models, namely it is not possible to estimate non-linear relationships between the dependent and independent variables. In the case of classical linear regression a semi-parametric approach can be used to address this issue. Therefore an advanced semi- parametric modelling approach for spatial autoregressive models is introduced. Advanced semi-parametric modelling requires determining the best configuration of independent variable vectors, number of spline-knots and their positions. To solve this combinatorial optimization problem an asynchronous multi-agent system based on genetic-algorithms is utilized. Three teams of agents work each on a subset of the problem and cooperate through sharing their most optimal solutions. Through this system more complex relationships between the dependent and independent variables can be derived. These could be better suited for the possibly non-linear real-world problems faced by applied spatial econometricians.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1687&r=cmp
  2. By: Senay Oguztimur
    Abstract: The evaluation of transport projects has become increasingly complex. Different aspects have to be taken into account and the consequences of the problems are usually far reaching and the different policy alternatives are numerous and difficult to predict. Several pressure or action groups have also emerged causing an even more complex decision making process. The use of multi criteria analysis for the evaluation of transport projects has increased due to this increasing complexity of the problem situation. At the same time, the importance of stakeholders within this evaluation process should have been recognized. Researches on transport projects are generally carried out to provide information to policymakers that have to operate within restrictive parameters (political, economical, social, etc…). Researchers should therefore take greater account of the different priorities of stakeholders such as policymakers, private enterprises and households. These stakeholders should be incorporated explicitly in the evaluation process. The Analytic Hierarchy Process is one of the Fuzzy Multiple Criteria Decision Making methods. It can be applied in a very broad range of applications of decision problems. Logistics, urban planning, public politics, marketing, finance, education, economics are a part of this wide application area. In transport subjects it can be used for the evaluation of transport policy measures or decision making problems. Due to its wide range application area, it has been an exciting research subject for many different field researchers. The aim of this paper is to introduce AHP method and to offer how to benefit it for the preference of urban planners in transport problems. This paper is composed of two main parts. First part consists of the literature survey regarding with the AHP and its application areas. The advantage of methods had been mentioned. Second part focuses on a sample application of AHP technique. The study uses AHP technique to determine the selection criteria in the transhipment port selection decision-making process. Keywords: Analytic Hierarchy Process, Multi criteria analysis, Transshipment port selection.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p438&r=cmp
  3. By: Verónica Amarante (Instituto de Economía, Facultad de Ciencias Económicas y de Administración, Universidad de la República); Marisa Bucheli (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República); Cecilia Olivieri (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República); Ivone Perazzo (Instituto de Economía, Facultad de Ciencias Económicas y de Administración, Universidad de la República)
    Abstract: In this brief paper we compare the redistributive effect of a VAT reform using an arithmetical and a behavioral microsimulation model. We analyze the effects of the elimination of the VAT for a basket of goods which is intensively consumed by the poorest population. Our microsimulations are based on data from the expenditure survey. The behavioral model uses the Quadratic Almost Ideal Demand System (QUAIDS) proposed by Banks et al (1997). Our results indicate that the change in the VAT implies a redistributive effect of small magnitude. The comparison of redistributive effects under the arithmetic and the behavioral simulation reveals that they are very similar.
    Keywords: fiscal redistribution, income inequality, taxes
    JEL: D31 H23 H20
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:ude:wpaper:2311&r=cmp
  4. By: Grant Allan (Department of Economics, Fraser of Allander Institute, University of Strathclyde)
    Abstract: The regional economic impact of biofuel production depends upon a number of interrelated factors: the specific biofuels feedstock and production technology employed; the sector’s embeddedness to the rest of the economy, through its demand for local resources; the extent to which new activity is created. These issues can be analysed using multisectoral economic models. Some studies have used (fixed price) Input-Output (IO) and Social Accounting Matrix (SAM) modelling frameworks, whilst a nascent Computable General Equilibrium (CGE) literature has also begun to examine the regional (and national) impact of biofuel development. This paper reviews, compares and evaluates these approaches for modelling the regional economic impacts of biofuels.
    Keywords: biofuels; economic modelling; input-output; social accounting matrix; computable general equilibrium.
    JEL: D57 D58 R13 R11
    Date: 2011–10
    URL: http://d.repec.org/n?u=RePEc:str:wpaper:11-30&r=cmp
  5. By: Georg Hirte; Stefan Tscharaktschiew
    Abstract: Germany like many other European countries subsidize commuting by granting the right to deduct commuting expenses from the income tax base. This regulation has often been changed and has regularly been under debate during the last decades. The pros (e.g. causing efficiency gains with respect to the spatial allocation of labor) and cons (e.g. causing urban sprawl) are well documented. Nonetheless, there is need for further research. For reasons of tractability the few models applied in the tax deduction related literature are based on restrictive assumptions particularly concerning the design of the income taxation scheme and the structure of households (neglecting household heterogeneity) and, most importantly, they do not integrate labor supply and location decision problems simultaneously. Here, for the first time, those and more features are taken into account in a full spatial general equilibrium simulation approach calibrated to an average German city. This model is applied to calculate the impacts of tax deductions on an urban economy thereby considering different funding schemes. Our results suggest that the tax deduction level currently chosen is below the optimal level in the case of income tax funding. If a change in the tax base occurs, e.g. toward consumption tax or energy tax funding, the optimal size of the subsidy should be even higher. Furthermore, the different policy packages cause a very differentiated pattern regarding welfare distribution, environmental (COâ‚‚ emissions) and congestion effects. We also find surprisingly small effects on urban sprawl characterized by suburbanization of residences and jobs and increasing commuting distances.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p274&r=cmp
  6. By: Eduardo Haddad; Juan Manuel Samaniego; Alexandre Porsse; Santiago Ochoa; Luiz Gustavo Souza
    Abstract: In this paper, we explore the structural characteristics of the interregional input-output system developed for Ecuador for the year 2007. As part of an ongoing project that aims to develop an interregional CGE model for the country, this database was developed under conditions of limited information. It provides the opportunity to better understand the spatial linkage structure associated with the national economy in the context of its 22 provinces, 15 sectors and 60 different products. This exploratory analysis is based on the description structural coefficients and the use of traditional input-output techniques. Finally, we further explore the spatial linkage structure by looking at the decomposition of final demand components. It is hoped that this exercise might result in a better appreciation of a broader set of dimensions that might improve our understanding of the integrated interregional economic system in Ecuador.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p836&r=cmp
  7. By: Colombino, Ugo (University of Turin)
    Abstract: Differently from most European countries and despite the recommendations on the part of the European Commission, Italy still misses a sufficiently systematic and nationwide mechanism of income support. In this paper we want to explore the feasibility, the desirability and the features of a universal policy of minimum income in Italy. We use a microeconometric model and a social welfare methodology in order to evaluate various alternatives mechanisms. We simulate the effects and the social welfare performance of 30 reforms resulting from six versions of five basic types of income support mechanism: guaranteed minimum income (GMI), universal basic income (UBI), wage subsidy (WS) and two mixed systems: GMI+WS and UBI+WS. As welfare evaluation criteria we adopt the Gini Social Welfare function and the Poverty-Adjusted Gini Social Welfare function. All the reforms are calibrated so as to preserve fiscal neutrality. The simulation adopts a methodology that allows for market equilibrium and ensures a consistent comparative statics interpretation of the results. Universal and non mean-tested transfers (possibly complemented by wage subsidy) emerge as desirable and feasible features of the income support mechanism. In the most realistic scenarios, the social-welfare-optimal policies are a modest unconditional transfer amounting to 40% of the poverty line complemented by a 10% wage subsidy or – depending on the social welfare criterion – a more generous unconditional transfer (100% of the poverty line). The reforms can be financed by proportionally increasing the current marginal tax rates and widening the tax base to include all personal incomes. The set of universalistic policies that are preferable to the current system is very large and gives the opportunity of selecting a best reform according to many different criteria.
    Keywords: design of income support mechanisms, basic income, guaranteed minimum income, wage subsidy, discrete choice, labour supply, simulation of tax reforms, equilibrium microsimulation
    JEL: C35 C53 H31 J22
    Date: 2011–10
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp6059&r=cmp
  8. By: John Mc Breen; Florence Goffette-Nagot; Pablo Jensen
    Abstract: We simulate a closed rental housing market with search and matching frictions, in which both landlord and tenant agents may be imperfectly informed of the characteristics of the market. The model hypotheses are set so as to match a rent posting search model in the spirit of search models of the labor market. In the simulations, landlords decide what rent to post based on the expected effect of the rent on the time-on-the-market (TOM) required to find a tenant. Each tenant observes their idiosyncratic preference for a random offer and decides whether to accept the offer or continue searching, based on their imperfect knowledge of the distribution of offered rents. The steady state to which the simulation evolves shows price dispersion, nonzero search times and vacancies. We further assess the effects of altering the level of information for landlords. Landlords are better off when they have less information. In that case they underestimate the TOM and so the steady-state of the market moves to higher rents. However, when landlords with different levels of information are present on the market, the better informed are consistently better off. The model setup also allows the analysis of market dynamics. It is observed that dynamic shocks to the discount rate can provoke overshoots in rent adjustments due in part to landlords use of outdated information in their rent posting decision.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1395&r=cmp
  9. By: Christophe Heyndrickx; Olaf Koops; Olga Ivanova
    Abstract: The present paper describes the construction and first empirical application of the TIGER model (TIGER is an abbreviation of “Transport and Infrastructure General Equilibrium model for Regionsâ€). The TIGER model belongs to the group of regional CGE models, applying a mix of conventional modelling techniques used in standard computable general equilibrium models and New Economic Geography elements. The TIGER model can be used to evaluate transport policies on economic and environmental effects. Innovative features of the TIGER model are the detailed modelling of the transport sector and modelling of commuting and migration decisions. The approach of the TIGER model is to model cross-border related transport policies on a disaggregate level, with freight and passenger transport flows, allowing for different transport modes (road, water, rail), distinguishing between public and private transport, and for different transport motives. Commuting trips will be modelled in detail, by a location-attraction function, jointly determining area of residence and place of work. The TIGER model is constructed as a regional model on the NUTS-3 level for Belgium, the Netherlands, Luxemburg and a part of Germany, where regions are linked by interregional trade flows, transport trips and migration. In a similar way the model can be extended to all NUTS-3 regions in Europe. This paper will relate on the construction of the database for the model and the addition of innovative elements in the model, necessary to model transnational passenger and freight flows. The construction of the model is based on the available data in the TRANSTOOLS database. The detail offered by the TIGER model allows for a quantitative evaluation of effects of several transport policies with a transnational dimension in the Benelux and Germany. We will present results of the TIGER model based on a current project in the Benelux.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1571&r=cmp
  10. By: Christophe Heyndrickx; Natalia Tourdyeva; Victoria Alexeeva-Talebi
    Abstract: The present paper describes the construction and first empirical application of the SUSTRUS model (the name of the model refers to “Sustainable Russiaâ€). This model will be the main result of the same-named EU funded project. The SUSTRUS model belongs to the group of regional CGE models, applied to analyze policies with a strong social, economic and environmental dimension. The SUSTRUS model can be used to assist policy makers in their choice of medium and long-term sustainability policies, for the implementation of the EU strategy for sustainable development in Russia as well as an efficient incorporation of the sustainability goals into the existing Russian policy tools on regional and federal levels. The SUSRUS model is constructed as a regional model on federal level, where regions are linked by interregional trade flows, a federal government level and migration. This paper will relate on the calibration of the database for the model and the addition of innovative elements in the model, necessary to model the link between the environmental, social, economic and international modules. The main data sources for the model are the public databases of Rosstat and the micro-level household data from the Russia Longitudinal Monitoring Survey (RLMS). Calibration of the model database was performed by a flexible cross-entropy minimization sub model and standard applied general equilibrium techniques. The general structure of the model will be discussed, focusing on the innovative features of the model and the link between the environmental and economic modules. The application of the model will be shown by a simulation exercise and a presentation of the main results.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1565&r=cmp
  11. By: Kirill Mueller; Kay W. Axhausen
    Abstract: Agent-based microsimulation models for land use or transportation simulate the behavior of agents over time, although at different time scales and with different goals. For both kinds of models, the initial step is the definition of agents and their relationships. Synthesizing the population of agents often is the only solution, due to privacy and cost constraints. In this paper, we assume that the model simulates persons grouped into households, and a person/household population needs to be synthesized. However, the methodology presented here can be applied to other kinds of agent relationships as well, e.g. persons and jobs/workplaces or persons and activity chains. Generating a synthetic population requires (a) reweighting of an initial population, taken from census or other survey data, with respect to current constraints, and (b) choosing the households that belong to the generated population. The reweighting task can be performed using an Iterative Proportional Fitting (IPF) procedure; however, IPF cannot control for attributes at both person and household levels. A frequently applied pattern is to estimate household-level weights using IPF, so that they match the control totals for the households, and then, using these weights, to generate a population of households that best fits the person-level control totals. We propose an algorithm that estimates household-level weights that fit the control totals at both person and household levels. This eliminates the need to account for person-level control during the generation of synthetic households. The algorithm essentially performs a proportional fitting in the domains of both households and persons, and introduces an entropy-minimizing fitting step to switch between these two domains. We evaluate the performance of our algorithm by generating a synthetic population for Switzerland and checking it against the complete Swiss census.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p305&r=cmp
  12. By: Lei Zhu (Center for Energy and Environmental Policy Research, Institute of Policy and Management, Chinese Academy of Sciences); ZhongXiang Zhang (East-West Center); Ying Fan (Center for Energy and Environmental Policy Research, Institute of Policy and Management, Chinese Academy of Sciences)
    Abstract: This paper applies real options theory to establish an overseas oil investment evaluation model that is based on Monte Carlo simulation and is solved by the Least Squares Monte-Carlo method. To better reflect the reality of overseas oil investment, our model has incorporated not only the uncertainties of oil price and investment cost but also the uncertainties of exchange rate and investment environment. These unique features have enabled our model to be best equipped to evaluate the value of oil overseas investment projects of three oil field sizes (large, medium, small) and under different resource tax systems (royalty tax and production sharing contracts). In our empirical setting, we have selected China as an investor country and Indonesia as an investee country as a case study. Our results show that the investment risks and project values of small sized oil fields are more sensitive to changes in the uncertainty factors than the large and medium sized oil fields. Furthermore, among the uncertainty factors considered in the model, the investment risk of overseas oil investment may be underestimated if no consideration is given of the impacts of exchange rate and investment environment. Finally, as there is an important tradeoff between oil resource investee country and overseas oil investor, in medium and small sized oil investment negotiation the oil company should try to increase the cost oil limit in production sharing contract and avoid the term of a windfall profits tax to reduce the investment risk of overseas oil fields.
    JEL: Q41 Q43 Q48 G31 O13 O22 C63
    Date: 2011–11
    URL: http://d.repec.org/n?u=RePEc:ewc:wpaper:wp121&r=cmp
  13. By: Balz R. Bodenmann
    Abstract: Over the last decade, low economic growth rates resulted in intensified competition between nations, regions, and towns in trying to attract new firms and inhabitants. In particular, the establishment of new firms has become one of the most vital objectives of governments and public authorities all over Europe. To raise the attractiveness of a region, different instruments have been used: tax reductions, incentives for new establishments, as business destination promotion activities, supply of outstanding infrastructure and public services. On the one hand, this paper investigates effects of different possible options for cantonal and municipal authorities’ intent to attract firms: improvements in transport infrastructure, designation of new building zones, and last but not least tax reductions. These actions have been tested by simulating the decisions of existing firms. The parameters for these simulations have been estimated with a discrete choice model using data of the cantons St.Gallen and both Appenzell as well as Zurich. On the other hand, the paper aims to provide an approach to implement these models in UrbanSim. UrbanSim is a software-based simulation system for supporting planning and analysis of urban development, incorporating the interactions between land use, transportation, the economy, and the environment. At the moment, UrbanSim is adapted to an European context (see the according research project SustainCity, www.sustaincity.eu).
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1091&r=cmp
  14. By: Attila Varga; Péter Járosi; Tamás Sebestyén
    Abstract: This paper introduces the Geographic Macro and Regional (GMR) model for NUTS-2 regions of the Euro zone. This model consists of three blocks: the TFP, the SCGE and the MACRO blocks. The model is built for impact analysis of policies targeting intangible assets in the forms of R&D, human capital and social capital. The analysis can be done both at the regional and the EU macroeconomic levels. Policy simulations on the growth impacts of the 6th European Framework Program illustrate the capabilities of the complex model system.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1426&r=cmp
  15. By: Xi Luo
    Abstract: This paper introduces a general framework of covariance structures that can be verified in many popular statistical models, such as factor and random effect models. The new structure is a summation of low rank and sparse matrices. We propose a LOw Rank and sparsE Covariance estimator (LOREC) to exploit this general structure in the high-dimensional setting. Analysis of this estimator shows that it recovers exactly the rank and support of the two components respectively. Convergence rates under various norms are also presented. The estimator is computed efficiently using convex optimization. We propose an iterative algorithm, based on Nesterov's method, to solve the optimization criterion. The algorithm is shown to produce a solution within O(1/t^2) of the optimal, after any finite t iterations. Numerical performance is illustrated using simulated data and stock portfolio selection on S&P 100.
    Date: 2011–11
    URL: http://d.repec.org/n?u=RePEc:arx:papers:1111.1133&r=cmp
  16. By: Patrick Schirmer; Christof Zöllig; Kirill Müller; Balz Bodenmann; Kay Axhausen
    Abstract: Abstract-- UrbanSim is an open-source software being developed by Waddell and colleagues(Waddell and Ulfarsson, 2004), simulating land use-development in cities based on the choices of households, businesses, land owners and developers, interacting in urban Real Estate markets and with the option to be connected to a transportation simulation. SustainCity is an EU-funded project with twelve European research-institutions1, coordinated by the IVT of the Swiss Federal Institute of Technology Zurich (ETHZ). Within the project of SustainCity2, UrbanSim is being adapted to European conditions by creation of a European version (UrbanSimE) with new calibration of choice-models and additional models for households, demographics and firmographics. Focus will be on the data-structure in Europe as well as the different behaviour of companies, residents and developers. For this UrbanSim will be used in three case studies: Brussels, Paris and Zurich. Although previous studies have been implemented in all of those region, the previous study in Zurich can be considered as a new set up as it uses another version of UrbanSim. This paper will report on the implementation of this parcel-based version of UrbanSim within the Zurich case study of SustainCity. It will refer to the data acquired and necessary as basis for the simulation, discuss the approach of data preparation through PostGIS and report on the new structure of the data-models defined within UrbanSim. Finally the first results of the UrbanSim runs of the Zurich case study will be presented and compared to the runs of previous versions. Keywords: UrbanSim; Urban Simulation; SustainCity; Zurich case study 02.03.2011
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p562&r=cmp
  17. By: Shamsunnahar Khanam; Yuzuru Miyata; Yan Liu
    Abstract: Since the industrialization, the appearance of cities has been enhancing great changes of people's lives by mass production and mass consumption. Because of the human society has been developing through industrialization and urbanization, many environmental problems, such as Green House Gas (GHG) emissions, waste generation have been occurring as well. Thus, city planners and urban policy makers look forward for designing a compact city to attain a sustainable urban system. Because the form of compact city contributes to improve harmful effects of urban sprawl and offers us many benefits, such as less car dependency thus lower emissions, reduce energy consumption, etc. An influential study in 'Cities and Automobile Dependence: An International Sourcebook, 1989' by Peter Newman and Jeff Kenworthy show that the denser urban areas in the developed countries have a greater mixture of land use and lower car dependency, thus trends to lower energy consumption and emissions. However, the suburban cities in the developed countries have a common trend of high car dependency, thus increasing energy consumption and emissions. Thus, in order to reduce GHG (especial focus on CO2) emissions from the suburban areas, this research takes vehicle as subject and is dedicated to introduce an electric vehicle and the low-carbon society. The great advantage of electric vehicles will be to reduce CO2 emissions, but only when the electric automobiles are powered by natural energy, like solar power. If EVs are powered by the electricity generated from coal, gas, petroleum etc., there will be no significant impact for reducing CO2 emissions. Thus, solar energy comes first to our mind to reduce CO2 emissions. We set Toyohashi City as the study region and apply a static computable general equilibrium (CGE) model to analyze the economic impact of realization of electric automobile oriented society in Toyohashi City. Our model will show us how large the economic impact of spread of electric automobiles is, and will offer us a new industrial structure in a Low Carbon Society (LCS) in the world. And this model could be easily extended in other areas of Japan and in other countries to reduce GHG emissions and energy consumption. Keywords: Electric Vehicle (EV), Green House Gas, Low-Carbon Society.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1892&r=cmp
  18. By: Robert Somogyi (Paris School of Economics); Janos Vincze (Institute of Economics - Hungarian Academy of Sciences, Corvinus University of Budapest)
    Abstract: The phenomenon of infrequent price changes has troubled economists for decades. Intuitively one feels that for most price-setters there exists a range of inaction, i.e. a substantial measure of the states of the world, within which they do not wish to modify prevailing prices. However, basic economics tells us that when marginal costs change it is rational to change prices, too. Economists wishing to maintain rationality of price-setters resorted to fixed price adjustment costs as an explanation for price rigidity. In this paper we propose an alternative explanation, without recourse to any sort of physical adjustment cost, by putting strategic interaction into the center-stage of our analysis. Price-making is treated as a repeated oligopoly game. The traditional analysis of these games cannot pinpoint any equilibrium as a reasonable "solution" of the strategic situation. Thus there is genuine strategic uncertainty, a situation where decision-makers are uncertain of the strategies of other decision-makers. Hesitation may lead to inaction. To model this situation we follow the style of agent-based models, by modelling firms that change their pricing strategies following an evolutionary algorithm. Our results are promising. In addition to reproducing the known negative relationship between price rigidity and the level of general inflation, our model exhibits several features observed in real data. Moreover, most prices fall into the theoretical "range" without explicitly building this property into strategies.
    Keywords: Agent-based modeling, Evolutionary algorithm, Price rigidity, Social learning, Strategic Uncertainty
    JEL: L13 C63 B52
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:has:discpr:1135&r=cmp
  19. By: Elena Maggi; Fabrizio Stupino; Franco Fredella
    Abstract: In the last decades the increasing facility in moving and the simultaneous fall of the transportation costs have strongly increased the tourist flows. As a consequence, different destinations, especially those which are rich of natural resources, unable or unready to sustain huge tourism flows, present serious problems of sustainability and Tourism Carrying Capacity (TCC). At the present, it is universally recognized that every tourist destination should plan effective and pro-reactive protection policies of its cultural, environmental and social resources. In order to facilitate policies definition it may be useful to measure the Tourist Carrying Capacity, but the literature has highlighted that this is not an easy task for different reasons: among the others, the complexity and the dynamicity of the concept, the absence of a universally accepted definition and the impossibility of assigning an objective scientific value and to apply a rigorous analysis. Thereby, more recently an alternative, or even complementary, interpretation of TCC has developed; it is called LAC, Limit of Acceptable Changes where the focus shifts from: “How much use an area can tolerate?†to “How much change is acceptable?â€, aiming at evaluating the costs and benefits from alternative management tourism actions. The aim of the paper is to present an innovative framework, based on the LAC approach - MABSiT, Mobile Agent Behavior Simulation in Tourism - developed by the authors, which is composed by five modules: elaboration data, DBMS, ad-hoc maps, agents and ontology. Its modular structure allows to easily study the interactions among the components in order to observe the behavior of the single agents. In an aggregate form, it is possible to define group dynamics, where one possible effect is the influence on the variation of agents’ satisfaction perception in comparison to the surroundings environment. The paper will be structured as follows: an introduction will be followed by a literature review; than the methodology and the framework will be presented and applied to a case study: Vieste, a known maritime destination of South of Italy, which is characterized by high problems of seasonality in the summer. Finally, some conclusions and policy recommendations will be drawn.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p948&r=cmp
  20. By: Rudolf Berghammer (Institut für Informatik - Universität Kiel); Agnieszka Rusinowska (Centre d'Economie de la Sorbonne); Harrie de Swart (Faculty of Philosophy - Erasmus University Rotterdam)
    Abstract: We describe a simple computing technique for the tournament choice problem. It rests upon a relational modeling and uses the BDD-based computer system RelView for the evaluation of the relation-algebraic expressions that specify the solutions and for the visualization of the computed results. The Copeland set can immediately be identified using RelView's labeling feature. Relation-algebraic specifications of the Condorcet non-losers, the Schwartz set, the top cycle, the uncovered set, the minimal covering set, the Banks set, and the tournament equilibrium set are delivered. We present an example of a tournament on a small set of alternatives, for which the above choice sets are computed and visualized via RelView. The technique described in this paper is very flexible and especially appropriate for prototyping and experimentation, and as such very instructive for educational purposes. It can easily be applied to other problems of social choice and game theory.
    Keywords: Tournament, relational algebra, REL VIEW, Copeland set, Condorcet non-losers, Schwartz set, top cycle, uncovered set, minimal covering set, Banks set, tournament equilibrium set.
    JEL: D71 C63 C88
    Date: 2011–10
    URL: http://d.repec.org/n?u=RePEc:mse:cesdoc:11067&r=cmp

This nep-cmp issue is ©2011 by Stan Miles. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.