nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2006‒03‒18
five papers chosen by
Walter Frisch
University Vienna

  1. Decision Support System for Design and Evaluation of Pipeline Projects By Barua S K; Madhavan T
  2. Computing the Distributions of Economic Models Via Simulation By John Stachurski
  3. Scientific Networks and Co-authorship By Marcel Fafchamps; Marco J. van der Leij; Sanjeev Goyal
  4. Social Choice Theory and the Informational Basis Approach By Kevin Roberts
  5. Agent-Based Computational Economics: A Constructive Approach to Economic Theory By Tesfatsion, Leigh S.

  1. By: Barua S K; Madhavan T
    Abstract: Petronet India Limited (PIL) was created to give impetus to investments in pipeline projects for transportation of petroleum products in the country. Since these projects have a long life and require large investments, correct assessment of location, capacity and financial viability are of critical importance. This paper is based on the study undertaken for PIL to evaluate a few of their pipeline projects. The study resulted in creation of a comprehensive software package that is capable of operational and financial evaluation of pipeline projects based on countrywide view on production and distribution of petroleum products. The core of the package is an LP based optimization model. The package is capable of performing sensitivity analysis to investigate the impact of uncertainty on the proposed project due to from changes in the values of key factors including distribution network and capacities, refining capacities and pattern of demand. •A model is developed for identification of viable pipeline projects, taking into account the demand and capacity additions to production and distribution network for petroleum products in the future. •The model can be used for financial evaluation of such projects based on appropriate assumptions to forecast the investments required as well as the net cash flows from the project. •The solution procedure is implemented for the models developed in the form of a software package that would allow the decision maker to experiment with assumption and generate solutions with ease and with little manual intervention. •The software package developed above is further embellished so that it also provides additional information to the decision maker in the form of reports that contain details of movement of products and the mode combinations used for the movements.
    Date: 2006–03–07
  2. By: John Stachurski
    Abstract: This paper studies the convergence properties of a Monte Carlo algorithm for computing distributions of state variables when the underlying model is a Markov chain with absolutely continuous transition probabilities. We show that the L1 error of the estimator always converges to zero with probability one. In addition, rates of convergence are established for L1 and integral mean squared errors. The algorithm is shown to have many applications in economics.
    Date: 2005
  3. By: Marcel Fafchamps; Marco J. van der Leij; Sanjeev Goyal
    Abstract: Using a database of all published articles in economic journals over the last 30 years, we investigate the determinants of scientific co-authorship. We find that, controlling for pair-wise fixed effects and author productivity, a new collaboration emerges faster if the two authors are more closely connected, either directly or indirectly, through collaborations with others. This effect is strong and robust. It is consistent with a referral model of the formation of scientific collaborations. We also find that large differences in research output between authors favor co-authorship, suggesting that scientific collaboration is more likely between authors with dissimilar ability and experience. This effect disappears if we limit the data to highly productive authors.
    Keywords: Job Referral, Networks, Assortative Matching, Scientific Collaboration, Academia, Economics
    JEL: J41 L14
    Date: 2006
  4. By: Kevin Roberts
    Abstract: For over a quarter of a century, the use of utility information based upon interpersonal comparisons has been seen as an escape route from the Arrow Impossibility Theorem. This paper critically examines this informational basis approach to social choice. Even with comparability of differences and levels, feasible social choice rules must be insensitive to a range of distributional issues. Also, the Pareto principle is not solely to blame for the inability to adopt rules combining utility and non-utility information: if the Pareto principle is not invoked then there is no way of combining utility and non-utility information in a ranking of states unless levels of utility are comparable; with level comparability, information can be combined only in restrictive ways and the notion of giving different independent weight to different considerations is ruled out. If informational bases are viewed as the restriction on information that is available, rather than a theoretical limit on information, then there exist methods to estimate richer informational structures and overcome these difficulties.
    Keywords: Social Choice, Informational Bases, Interpersonal Comparisons, Non-utility Information
    JEL: D63 D71
    Date: 2005
  5. By: Tesfatsion, Leigh S.
    Abstract: This chapter explores the potential advantages and disadvantages of Agent-based Computational Economics (ACE) for the study of economic systems. General points are concretely illustrated using an ACE model of a two-sector decentralized market economy. Six issues are highlighted: Constructive understanding of production, pricing, and trade processes; the essential primacy of survival; strategic rivalry and market power; behavioral uncertainty and learning; the role of conventions and organizations; and the complex interactions among structural attributes, behaviors, and institutional arrangements.
    JEL: B4 C0 C6 D0
    Date: 2006–03–06

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