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on Computational Economics |
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Issue of 2012‒02‒08
seven papers chosen by |
| By: | Pérez Sainz de Rozas, Gloria; Garín Martín, María Araceli |
| Abstract: | The aim of this technical report is to present some detailed explanations in order to use the solver CPLEX within COIN-OR environment. In particular, we describe how to download, install and use the corresponding source code and libraries under Windows and Linux operating systems. We will use an example taken from the literature, with the experimental code and files written in C++, to describe the whole process of editing, compiling and running the executable, to solve this optimization problem by using this software. In the case of the Windows environment, a C++ compiler is also needed. We will use the Visual C++ 2010 Express Edition. |
| Keywords: | CPLEX, COIN-OR, C++, |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:ehu:biltok:5504&r=cmp |
| By: | Matt P. Dziubinski (Aarhus University and CREATES) |
| Abstract: | We present and evaluate a numerical optimization method (together with an algorithm for choosing the starting values) pertinent to the constrained optimization problem arising in the estimation of the GARCH models with inequality constraints, in particular the Simplied Component GARCH Model (SCGARCH), together with algorithms for the objective function and analytical gradient computation for SCGARCH. |
| Keywords: | Constrained optimization, GARCH, infeasibility, inference under constraints, nonlinear programming, performance of numerical algorithms, SCGARCH, sequential quadratic programming |
| JEL: | C32 C51 C58 C61 C63 C88 |
| Date: | 2012–01–25 |
| URL: | http://d.repec.org/n?u=RePEc:aah:create:2012-03&r=cmp |
| By: | Yeboah, Anthony; Naanwaab, Cephas; Yeboah, Osei; Owens, John; Bynum, Jarvetta |
| Abstract: | We assess the economic feasibility of a 10 MMGY biodiesel plant using a Monte Carlo Cash Flow model programmed in Excel using @Risk, a simulation and risk analysis software. The model incorporates stochastic components to capture uncertainty in the analysis. The stochastic components are mainly variables that may exhibit risk, such as input prices, output prices, and expected revenues, and these are assigned probability distributions in the model. The model is programmed with three output variables: stream of revenues, profits/loss, and the resulting net present value (NPV) over ten year forecast period. Results from the cash flow analysis show that average expected revenues from the sale of biodiesel and co-products will be $48.5 million and total operating costs of $42.05 million per year. The economic feasibility of this biodiesel production plant is determined from the model calibration and sensitivity analysis. Using a discount rate of 7.5%, the simulated average NPV is $16.8 million and since this is positive, it indicates the project may be economically feasible subject to model assumptions. We find that the likelihood of the NPV greater than zero is 61% on average. Sensitivity and scenario analysis show that the NPV is most affected by fluctuations in biodiesel price, canola seed price, and the price of seed meal. |
| Keywords: | Economic feasibility, biodiesel, monte carlo simulations, risk analysis, sensitivity analysis., Agribusiness, Production Economics, Resource /Energy Economics and Policy, Risk and Uncertainty, |
| Date: | 2012–02–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea12:119729&r=cmp |
| By: | Vassalos, Michael; Dillon, Carl; Coolong, Tim |
| Abstract: | This study combines whole farm economic analysis with biophysical simulation techniques in order to achieve a twofold objective. First, the study seeks to develop a multiple enterprise vegetable farm model with a production and marketing decision interface and, second, to determine optimal production practices for Kentucky vegetable growers. Three vegetable crops are examined: tomatoes, bell peppers and sweet corn. The findings indicate that the risk associated with vegetable production can be significantly mitigated with diversification of production mix and with a greater number of transplanting dates. However, this reduction in risk comes at a high cost in terms of expected net returns. |
| Keywords: | vegetable production, mean-variance, biophysical simulation, farm management, Farm Management, C61, C63, D81, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea12:120016&r=cmp |
| By: | Watkins, K. Bradley; Hristovska, Tatjana; Anders, Merle M. |
| Abstract: | Irrigation fuel costs represent a significant portion of rice production expenses. Multiple inlet (MI) irrigation represents a water saving alternative to conventional flood irrigation. This study uses simulation to calculate the range of monetary benefits to MI in rice production. Water savings from MI relative to conventional flood irrigation along with rice yields, rice prices, and prices for key production inputs (diesel and fertilizer) are simulated, and stochastic rice net returns above variable and fixed expenses are calculated for different pump lifts with and without MI. Monetary benefits to MI are measured as the difference in net returns with and without MI. The results indicate MI monetary benefits depend greatly on pump lift and the presence or absence of a yield increase. Monetary benefits to MI increase as pump lifts become larger, and relatively small increases in yield resulting from MI irrigation can greatly enhance its payoff. |
| Keywords: | cost, cumulative distribution functions, multiple inlet irrigation, net return, rice, stochastic, Farm Management, |
| Date: | 2012–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea12:119655&r=cmp |
| By: | Jansen, Jim; Lubben, Bradley; Stockton, Matthew |
| Abstract: | This study evaluates the policy effects of alternative program designs for federal revenue-based farm income safety net programs. Eight representative farms across Nebraska are used to stochastically simulate the financial impact of changing the current farm crop revenue-based safety net with a state revenue trigger against potential alternative programs involving guarantees at the district, county, or farm level. Results indicate that decreasing the aggregation of the revenue guarantee increases expected farm-level payments and program costs for the revenue-based safety net. |
| Keywords: | agricultural policy, farm bill, farm programs, government payments, representative farms, risk management, simulation, Agricultural and Food Policy, Farm Management, Risk and Uncertainty, Q12, Q18, |
| Date: | 2012–01–17 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea12:119784&r=cmp |
| By: | Niels Vermeer; Wouter Vermeulen |
| Abstract: | Does brownfield redevelopment warrant government support? We explore several external benefits in an urban general equilibrium framework. Preferences are modelled such that demand for housing units in the city is downward sloping, which yields a more general setup than the extreme open and closed city cases. We shed light on the relative importance of general equilibrium effects of nonmarginal redevelopment projects and we isolate the external benefits of the removal of a local nuisance, the exploitation of agglomeration economies and the preservation of open space at the urban fringe. A numerical application indicates that local nuisance and agglomeration effects may push social returns significantly beyond the value of redeveloped land that accrues to its owner. However, depending on the price elasticity of urban housing demand and the strength of agglomeration economies, the amount of preserved greenfield land may be small and it only generates additional benefits to the extent that direct land use policies fail to internalize its value as open space. |
| Keywords: | brownfield redevelopment, land use externalities, urban general equilibrium,benefit-cost analysis |
| JEL: | R13 R21 R52 |
| Date: | 2012–01 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0099&r=cmp |