nep-cmp New Economics Papers
on Computational Economics
Issue of 2014‒02‒08
six papers chosen by
Stan Miles
Thompson Rivers University

  1. Integrated technological-economic modeling platform for energy and climate policy analysis By Patrícia Fortes; Alfredo Marvão Pereira; Rui M. Pereira; Júlia Seixas
  2. Faster Comparison of Stopping Times by Nested Conditional Monte Carlo By Fabian Dickmann; Nikolaus Schweizer
  3. The Relative Significance of EPAs in Asia-Pacific By KAWASAKI Kenichi
  4. Efficiency of coordinate descent methods on huge-scale optimization problems By NESTEROV, Yurii
  5. A new formulation of the European day-ahead electricity market problem and its algorithmic consequences By MADANI, Mehdi; VAN VYVE, Mathieu
  6. Improving Fairness and Efficiency in Matching with Distributional Constraints: An Alternative Solution for the Japanese Medical Residency Match By Goto, Masahiro; Iwasaki, Atsushi; Kawasaki, Yujiro; Yasuda, Yosuke; Yokoo, Makoto

  1. By: Patrícia Fortes (CENSE, Departamento de Ciências e Engenharia do Ambiente, Faculdade de Ciências e Tecnologia, Universidade Nova de Lisboa); Alfredo Marvão Pereira (Department of Economics, The College of William and Mary); Rui M. Pereira (Department of Economics, The College of William and Mary); Júlia Seixas (CENSE, Departamento de Ciências e Engenharia do Ambiente, Faculdade de Ciências e Tecnologia, Universidade Nova de Lisboa)
    Abstract: Computable general equilibrium (CGE) and bottom-up models each have unique strengths and weakness in evaluating energy and climate policies. This paper describes the development of an integrated technological, economic modelling platform (HYBTEP), built through the soft-link between the bottomup TIMES and the CGE GEM-E3 models. HYBTEP combines cost minimizing energy technology choices with macroeconomic responses, which is essential for energy-climate policy assessment. HYBTEP advances on other hybrid tools by assuming ‘full-form’ models, integrating detailed and extensive technology data with disaggregated economic structure, and ‘full-link’, i.e., covering all economic sectors. Using Portugal as a case study, we examine three scenarios: i) the current energyclimate policy, ii) a CO2 tax, and iii) renewable energy subsidy, with the objective of assessing the advantages of HYBTEP vis-à-vis bottom-up approach. Results show that the economic framework in HYBTEP partially offsets the increase or decrease in energy costs from the policy scenarios, while TIMES sets a wide range of results, dependent of energy services-price elasticities. HYBTEP allows the computation of the economic impacts of policies while considers technological detail. Moreover, the hybrid platform increases the transparency of policy analysis by making explicit the mechanisms through which energy demand evolves, resulting in high confidence for decision-making.
    Keywords: bottom-up, top-down, hybrid modeling, energy-climate policy
    Date: 2014–01–25
    URL: http://d.repec.org/n?u=RePEc:cwm:wpaper:148&r=cmp
  2. By: Fabian Dickmann; Nikolaus Schweizer
    Abstract: We show that deliberately introducing a nested simulation stage can lead to significant variance reductions when comparing two stopping times by Monte Carlo. We derive the optimal number of nested simulations and prove that the algorithm is remarkably robust to misspecifications of this number. The method is applied to several problems related to Bermudan/American options. In these applications, our method allows to substantially increase the efficiency of other variance reduction techniques, namely, Quasi-Control Variates and Multilevel Monte Carlo.
    Date: 2014–02
    URL: http://d.repec.org/n?u=RePEc:arx:papers:1402.0243&r=cmp
  3. By: KAWASAKI Kenichi
    Abstract: This paper analyzes the relative significance of regional Economic Partnership Agreements (EPAs) in Asia-Pacific. The economy-wide impacts of tariff removals and reductions in non-tariff measures (NTMs) are estimated by using a Computable General Equilibrium (CGE) model of global trade. The Trans-Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership (RCEP) are shown to complement each other rather than be competitors. The income gains of Asia-Pacific Economic Cooperation (APEC) economies as a whole account for 1.2 per cent of regional GDP by the TPP, 1.0 per cent by the RCEP, and 4.3 per cent by the Free Trade Area of the Asia-Pacific (FTAAP). Meanwhile, larger economic benefits are expected from NTMs reductions in addition to tariff removals. It is thus essential to reform domestic markets in order to enjoy greater economic benefits from international EPAs.
    Date: 2014–01
    URL: http://d.repec.org/n?u=RePEc:eti:dpaper:14009&r=cmp
  4. By: NESTEROV, Yurii
    URL: http://d.repec.org/n?u=RePEc:cor:louvrp:-2511&r=cmp
  5. By: MADANI, Mehdi (Université catholique de Louvain, Louvain School of Management, Belgium); VAN VYVE, Mathieu (niversité catholique de Louvain, CORE and Louvain School of Management, Belgium)
    Abstract: A new formulation of the optimization problem implementing European market rules for non- convex day-ahead electricity markets is presented, that avoids the use of complementarity constraints to express market equilibrium conditions, and also avoids the introduction of auxiliary binary variables to linearise these constraints. Instead, we rely on strong duality theory for linear or convex quadratic optimization problems to recover equilibrium constraints imposed by most of European power exchanges facing indivisible orders. When only so-called stepwise preference curves are considered to describe continuous bids, the new formulation allows to take full advantage of state-of-the-art solvers, and in most cases, an optimal solution together with market clearing prices can be computed for large-scale instances without any further algorithmic work. The new formulation also suggests a very competitive Benders-like decomposition procedure, which helps to handle the case of interpolated preference curves that yield quadratic primal and dual objective functions, and consequently a dense quadratic constraint. This procedure essentially consists in strengthening classical Benders cuts locally. Computational experiments on real data kindly provided by main European power exchanges (Apx-Endex, Belpex and Epex spot) show that in the linear case, both approaches are very efficient, while for quadratic instances, only the decomposition procedure is tractable and shows very good results. Finally, when most orders are block orders, and instances are combinatorially very hard, the new MILP approach is substantially more efficient.
    Keywords: Auctions/bidding, market coupling, equilibrium prices, mixed integer programming, large scale optimization
    JEL: C61 D44
    Date: 2014–01–24
    URL: http://d.repec.org/n?u=RePEc:cor:louvco:2013074&r=cmp
  6. By: Goto, Masahiro; Iwasaki, Atsushi; Kawasaki, Yujiro; Yasuda, Yosuke; Yokoo, Makoto
    Abstract: Regional imbalance of doctors is a serious issue in many countries. In an attempt to average the geographical distribution of doctors, the Japanese government introduced ``regional caps'' recently, restricting the total number of medical residents matched within each region. Motivated by this policy change, Kamada and Kojima (2013) proposed a mechanism called the flexible deferred acceptance mechanism (FDA) that makes every doctor weakly better off than the current system. In this paper, we further study this problem and develop an alternative mechanism that we call the priority-list based deferred acceptance mechanism (PLDA). Both mechanisms enable hospitals in the same region to fill their capacities flexibly until the regional cap is filled. FDA lets hospitals take turns to (tentatively) choose the best remaining doctor, while PLDA lets each region directly decide which doctor is (tentatively) matched with which hospital based on its priority list. We show that PLDA performs better than FDA in terms of efficiency and fairness through theoretical and computational analyses.
    Keywords: distributional constraints, medical residency matching, school admission, stability, fairness, nonwastefulness, efficiency, strategy-proofness, matching with contracts
    JEL: C71 C78 D61
    Date: 2014–02
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:53409&r=cmp

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