Andrea Karim El Meligi, M. Ciaschini, Yousaf Ali Khan, R. Pretaroli, F. Severini, C. Socci
In this paper, an effort is made to enrich the current input–output (I–O) methodologies employed for studying disruptive events, by extending the I–O framework and including all the phases of the circular flow of income into the overall disaster impact. In this respect, the Inoperability Extended Multisectoral Model is created and implemented in order to estimate the higher‐order effects in terms of value added and disposable income. The social accounting matrix, referred to the United Kingdom, is constructed and proposed as a starting point for assessing the effects of a system perturbation related to the eruption of the Volcano Eyjafjallajokull, in mid‐April 2010, which affected air transport services due to the full closure of the U.K.'s airspace for several days. Finally, the ranking of those commodities and institutional sectors which are badly affected can provide guidance to policymakers in order to minimize the overall impact on the economy.
{"title":"The Inoperability Extended Multisectoral Model and the Role of Income Distribution: A U.K. Case Study","authors":"Andrea Karim El Meligi, M. Ciaschini, Yousaf Ali Khan, R. Pretaroli, F. Severini, C. Socci","doi":"10.1111/roiw.12368","DOIUrl":"https://doi.org/10.1111/roiw.12368","url":null,"abstract":"In this paper, an effort is made to enrich the current input–output (I–O) methodologies employed for studying disruptive events, by extending the I–O framework and including all the phases of the circular flow of income into the overall disaster impact. In this respect, the Inoperability Extended Multisectoral Model is created and implemented in order to estimate the higher‐order effects in terms of value added and disposable income. The social accounting matrix, referred to the United Kingdom, is constructed and proposed as a starting point for assessing the effects of a system perturbation related to the eruption of the Volcano Eyjafjallajokull, in mid‐April 2010, which affected air transport services due to the full closure of the U.K.'s airspace for several days. Finally, the ranking of those commodities and institutional sectors which are badly affected can provide guidance to policymakers in order to minimize the overall impact on the economy.","PeriodicalId":299310,"journal":{"name":"Econometrics: Mathematical Methods & Programming eJournal","volume":"2 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124558840","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In this paper we explore a new approach to find any prime numbers up a fixed n 2 N. The proposed procedure does not run like a sieve and it is easy to implement, since it uses just assignments and subtractions. The algorithm and its extensions proposed give improvements about the memory requirement, with upgradeable runtime performances. Moreover, we note that our approach is very suitable for a parallel computing. These results solve, in our opinion, a lot of issues which many of sieves suffer, especially when large numbers are considered.
{"title":"A New Algorithm to Find Prime Numbers","authors":"Daniele Bufalo, Michele Bufalo, Raffaele Tetta","doi":"10.2139/ssrn.3437832","DOIUrl":"https://doi.org/10.2139/ssrn.3437832","url":null,"abstract":"In this paper we explore a new approach to find any prime numbers up a fixed n 2 N. The proposed procedure does not run like a sieve and it is easy to implement, since it uses just assignments and subtractions. The algorithm and its extensions proposed give improvements about the memory requirement, with upgradeable runtime performances. Moreover, we note that our approach is very suitable for a parallel computing. These results solve, in our opinion, a lot of issues which many of sieves suffer, especially when large numbers are considered.","PeriodicalId":299310,"journal":{"name":"Econometrics: Mathematical Methods & Programming eJournal","volume":"100 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-08-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132087292","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Motivated by common practices in maintenance and healthcare operations, in which diagnostic activities precede service, we study the problem of scheduling jobs with random processing times on a server that can test jobs (i.e., perform a diagnostic procedure) prior to serving them in order to observe their durations. On one hand, testing utilizes the server and increases service delays, but on the other hand, testing reduces uncertainty and informs future scheduling decisions, which contributes to reducing overall delays.
We consider two cases in which tests are either optional or mandatory prerequisites for processing heterogeneous jobs whose random processing times (and in some cases weights) are statistically different. For several interesting cases of optional testing problems, we develop an adaptive shortest processing time (SPT) rule, which characterizes the optimal policy using intuitive testing thresholds given by closed-formulas. We then show that a generalization of these thresholds forms an optimal index policy for mandatory testing problems.
Our work provides tools for analyzing similar problems, as well as practical insights on how to prioritize uncertainty reduction efforts, in order to reduce delays in service systems.
{"title":"An Adaptive SPT Rule for Scheduling and Testing Heterogeneous Jobs","authors":"R. Levi, T. Magnanti, Yaron Shaposhnik","doi":"10.2139/ssrn.3435113","DOIUrl":"https://doi.org/10.2139/ssrn.3435113","url":null,"abstract":"Motivated by common practices in maintenance and healthcare operations, in which diagnostic activities precede service, we study the problem of scheduling jobs with random processing times on a server that can test jobs (i.e., perform a diagnostic procedure) prior to serving them in order to observe their durations. On one hand, testing utilizes the server and increases service delays, but on the other hand, testing reduces uncertainty and informs future scheduling decisions, which contributes to reducing overall delays. <br><br>We consider two cases in which tests are either optional or mandatory prerequisites for processing heterogeneous jobs whose random processing times (and in some cases weights) are statistically different. For several interesting cases of optional testing problems, we develop an adaptive shortest processing time (SPT) rule, which characterizes the optimal policy using intuitive testing thresholds given by closed-formulas. We then show that a generalization of these thresholds forms an optimal index policy for mandatory testing problems.<br><br>Our work provides tools for analyzing similar problems, as well as practical insights on how to prioritize uncertainty reduction efforts, in order to reduce delays in service systems.","PeriodicalId":299310,"journal":{"name":"Econometrics: Mathematical Methods & Programming eJournal","volume":"37 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-08-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114950096","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The problems of non-concave utility maximization appear in many areas of finance and economics, such as in behavior economics, incentive schemes, aspiration utility, and goal-reaching problems. Existing literature solves these problems using the concavification principle. We provide a framework for solving non-concave utility maximization problems, where the concavification principle may not hold and the utility functions can be discontinuous. In particular, we find that adding bounded portfolio constraints, which makes the concavification principle invalid, can significantly affect economic insights in the existing literature. Theoretically, we give a new definition of viscosity solution and show that a monotone, stable, and consistent finite difference scheme converges to the solution of the utility maximization problem.
{"title":"Non-Concave Utility Maximization without the Concavification Principle","authors":"M. Dai, S. Kou, Shuaijie Qian, Xiangwei Wan","doi":"10.2139/ssrn.3422276","DOIUrl":"https://doi.org/10.2139/ssrn.3422276","url":null,"abstract":"The problems of non-concave utility maximization appear in many areas of finance and economics, such as in behavior economics, incentive schemes, aspiration utility, and goal-reaching problems. Existing literature solves these problems using the concavification principle. We provide a framework for solving non-concave utility maximization problems, where the concavification principle may not hold and the utility functions can be discontinuous. In particular, we find that adding bounded portfolio constraints, which makes the concavification principle invalid, can significantly affect economic insights in the existing literature. Theoretically, we give a new definition of viscosity solution and show that a monotone, stable, and consistent finite difference scheme converges to the solution of the utility maximization problem.","PeriodicalId":299310,"journal":{"name":"Econometrics: Mathematical Methods & Programming eJournal","volume":"57 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-07-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122750975","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper proposes a general higher order operator splitting scheme for diffusion semigroups using the Baker-Campbell-Hausdorff type commutator expansion of non-commutative algebra and the Malliavin calculus. An accurate discretization method for the fundamental solution of heat equations or the heat kernel is introduced with a new computational algorithm which will be useful for the inference for diffusion processes. The approximation is regarded as the splitting around the Euler-Maruyama scheme for the density. Numerical examples for diffusion processes are shown to validate the proposed scheme.
{"title":"Operator Splitting Around Euler-Maruyama Scheme and High Order Discretization of Heat Kernels","authors":"Yuga Iguchi, T. Yamada","doi":"10.2139/ssrn.3510133","DOIUrl":"https://doi.org/10.2139/ssrn.3510133","url":null,"abstract":"This paper proposes a general higher order operator splitting scheme for diffusion semigroups using the Baker-Campbell-Hausdorff type commutator expansion of non-commutative algebra and the Malliavin calculus. An accurate discretization method for the fundamental solution of heat equations or the heat kernel is introduced with a new computational algorithm which will be useful for the inference for diffusion processes. The approximation is regarded as the splitting around the Euler-Maruyama scheme for the density. Numerical examples for diffusion processes are shown to validate the proposed scheme.","PeriodicalId":299310,"journal":{"name":"Econometrics: Mathematical Methods & Programming eJournal","volume":"223 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134194758","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Many countries have undertaken market-oriented reforms of the power sector over the past four decades. However, the literature has not investigated whether the reforms have contributed to economic development. This study aims to assess the potential macroeconomic impacts of an element of the power sector reform process that China started in 2015. It uses an energy sector TIMES model and a computable general equilibrium model. The study finds that the price of electricity in China would be around 20 percent lower than the country is likely to experience in 2020, if the country follows the market principle to operate the power system. The reduction in the price of electricity would spill over throughout the economy, resulting in an increase in gross domestic product of more than 1 percent in 2020. It would also increase household income, economic welfare, and international trade.
{"title":"How Much Would China Gain from Power Sector Reforms? An Analysis Using Times and CGE Models","authors":"G. Timilsina, Jun Pang, Xi Yang","doi":"10.1596/1813-9450-8908","DOIUrl":"https://doi.org/10.1596/1813-9450-8908","url":null,"abstract":"Many countries have undertaken market-oriented reforms of the power sector over the past four decades. However, the literature has not investigated whether the reforms have contributed to economic development. This study aims to assess the potential macroeconomic impacts of an element of the power sector reform process that China started in 2015. It uses an energy sector TIMES model and a computable general equilibrium model. The study finds that the price of electricity in China would be around 20 percent lower than the country is likely to experience in 2020, if the country follows the market principle to operate the power system. The reduction in the price of electricity would spill over throughout the economy, resulting in an increase in gross domestic product of more than 1 percent in 2020. It would also increase household income, economic welfare, and international trade.","PeriodicalId":299310,"journal":{"name":"Econometrics: Mathematical Methods & Programming eJournal","volume":"23 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-06-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116659560","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Insurance products can be optimized with emerging decentralized technology. We propose the use of cryptocurrencies as claims on future cash flows of an underwriting business operated by a Decentralized Autonomous Organization (DAO). The design of our DAO allows for decentralized collaboration (i) among DAO underwriters as well as (ii) between underwriters and consumers. In this decentralized system, the tokens essentially substitute for reputation. Financial distress or bankruptcy of an individual underwriter does not have to affect either customers or the DAO as the insurance contracts are backed by encumbered tokens. The structure of incentives embedded in the design has the potential to lower capital requirements and the related need for capital regulation.
{"title":"Decentralized Underwriting","authors":"C. Calcaterra, Wulf A. Kaal, V. K. Rao","doi":"10.2139/ssrn.3396542","DOIUrl":"https://doi.org/10.2139/ssrn.3396542","url":null,"abstract":"Insurance products can be optimized with emerging decentralized technology. We propose the use of cryptocurrencies as claims on future cash flows of an underwriting business operated by a Decentralized Autonomous Organization (DAO). The design of our DAO allows for decentralized collaboration (i) among DAO underwriters as well as (ii) between underwriters and consumers. In this decentralized system, the tokens essentially substitute for reputation. Financial distress or bankruptcy of an individual underwriter does not have to affect either customers or the DAO as the insurance contracts are backed by encumbered tokens. The structure of incentives embedded in the design has the potential to lower capital requirements and the related need for capital regulation.","PeriodicalId":299310,"journal":{"name":"Econometrics: Mathematical Methods & Programming eJournal","volume":"4 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-05-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114949153","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Liangheng Chen, Eugene Choo, Alfred Galichon, Simon Weber
In this paper, we argue that models coming from a variety of fields share a common structure that we call matching function equilibria with partial assignment. This structure revolves around an aggregate matching function and a system of nonlinear equations. This encompasses search and matching models, matching models with transferable, non-transferable and imperfectly transferable utility, and matching with peer effects. We provide a proof of existence and uniqueness of an equilibrium as well as an efficient algorithm to compute it. We show how to estimate parametric versions of these models by maximum likelihood. We also propose an approach to construct counterfactuals without estimating the matching functions for a subclass of models. We illustrate our estimation approach by analyzing the impact of the elimination of the Social Security Student Benefit Program in 1982 on the marriage market in the United States.
{"title":"Matching Function Equilibria with Partial Assignment: Existence, Uniqueness and Estimation","authors":"Liangheng Chen, Eugene Choo, Alfred Galichon, Simon Weber","doi":"10.2139/ssrn.3387335","DOIUrl":"https://doi.org/10.2139/ssrn.3387335","url":null,"abstract":"In this paper, we argue that models coming from a variety of fields share a common structure that we call matching function equilibria with partial assignment. This structure revolves around an aggregate matching function and a system of nonlinear equations. This encompasses search and matching models, matching models with transferable, non-transferable and imperfectly transferable utility, and matching with peer effects. We provide a proof of existence and uniqueness of an equilibrium as well as an efficient algorithm to compute it. We show how to estimate parametric versions of these models by maximum likelihood. We also propose an approach to construct counterfactuals without estimating the matching functions for a subclass of models. We illustrate our estimation approach by analyzing the impact of the elimination of the Social Security Student Benefit Program in 1982 on the marriage market in the United States.","PeriodicalId":299310,"journal":{"name":"Econometrics: Mathematical Methods & Programming eJournal","volume":"9 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-05-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129428752","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Symmetry is a fundamental concept in modern physics and other related sciences. Being such a powerful tool, almost all physical theories can be derived from symmetry, and the effectiveness of such an approach is astonishing. Since physicists do not actually believe that symmetry is a fundamental feature of nature, it seems more likely it is a fundamental feature of human cognition. According to evolutionary psychologists, humans have a sensory bias for symmetry. The unconscious quest for symmetrical patterns has developed as a solution to specific adaptive problems related to survival and reproduction. Therefore, it comes as no surprise that some fundamental concepts in behavioral economics necessarily involve symmetry. The purpose of this paper is to draw attention to the role of symmetry in decision-making and to illustrate how it can be algebraically operationalized through the use of mathematical group theory.
{"title":"Fundamentals of Behavioral Economics: Role of Symmetry in Irrational Choice","authors":"Ivan Kožić","doi":"10.2139/ssrn.3108421","DOIUrl":"https://doi.org/10.2139/ssrn.3108421","url":null,"abstract":"Symmetry is a fundamental concept in modern physics and other related sciences. Being such a powerful tool, almost all physical theories can be derived from symmetry, and the effectiveness of such an approach is astonishing. Since physicists do not actually believe that symmetry is a fundamental feature of nature, it seems more likely it is a fundamental feature of human cognition. According to evolutionary psychologists, humans have a sensory bias for symmetry. The unconscious quest for symmetrical patterns has developed as a solution to specific adaptive problems related to survival and reproduction. Therefore, it comes as no surprise that some fundamental concepts in behavioral economics necessarily involve symmetry. The purpose of this paper is to draw attention to the role of symmetry in decision-making and to illustrate how it can be algebraically operationalized through the use of mathematical group theory.","PeriodicalId":299310,"journal":{"name":"Econometrics: Mathematical Methods & Programming eJournal","volume":"120 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-05-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128346231","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We examine the effect of immigration on the host-country economy in the dynamic model that can deal with secular unemployment. Immigration has contrasting effects, depending on the economic state of the host country. If it suffers from unemployment, an influx of immigrants worsens unemployment and decreases consumption by natives. If instead the host country has full employment, immigration boosts native consumption while maintaining full employment, provided that immigrants are not too numerous. An influx of too many immigrants however can trigger stagnation. We also find that immigrants’ remittances are harmful to natives under full employment but beneficial under secular stagnation.
{"title":"Immigration and Secular Stagnation","authors":"Kaz Miyagiwa, Yoshiyasu Ono","doi":"10.2139/ssrn.3387136","DOIUrl":"https://doi.org/10.2139/ssrn.3387136","url":null,"abstract":"We examine the effect of immigration on the host-country economy in the dynamic model that can deal with secular unemployment. Immigration has contrasting effects, depending on the economic state of the host country. If it suffers from unemployment, an influx of immigrants worsens unemployment and decreases consumption by natives. If instead the host country has full employment, immigration boosts native consumption while maintaining full employment, provided that immigrants are not too numerous. An influx of too many immigrants however can trigger stagnation. We also find that immigrants’ remittances are harmful to natives under full employment but beneficial under secular stagnation.","PeriodicalId":299310,"journal":{"name":"Econometrics: Mathematical Methods & Programming eJournal","volume":"31 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116243505","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：