Basic Economic Model Research Articles

Economic growth in China and India: The potential role of population

From 1980 through 2020, the rate of population growth declined in both China and India, but the decline was far more pronounced in China. During the same period, per capita income increased substantially in both China and India, but the increase was far more pronounced in China. The fact that China and India are similar in many important respects (ancient cultures, large populations, etc.), but implemented substantially different population control policies during the 1980–2020 interval, suggests an equivalence to a quasi-controlled experiment, of the sort that very rarely occurs in the real world. The control would be India, with a relatively conventional population control policy, and the experiment would be China, with its relatively drastic population control policy. This research investigates the possibility of a causal relation between differential population growth and differential economic growth in China and India. It is shown that the simulation of a basic economic growth model in which population growth is a key exogenous determinant, and which utilizes the same economic relationships and numerical parameter values for both China and India, produces time paths of growth in per capita income that closely resemble the empirical Chinese and Indian time paths. This finding supports the hypothesis that a significant factor in China's remarkable economic growth over the last four decades has been its equally remarkable population control policy.

Strategies In Managing Horticultural Businesses In Indonesia (Article Review)

Indonesia is called an agrarian country because of its fertility, beauty, and natural wealth, the agricultural sector is one of the leading sectors in the economy where agriculture is a business activity that includes the cultivation of food crops, one of which is in the field of horticulture. This study aims to determine the strategy in the management, business development of horticultural products. In this review of the journal entitled "strategy in the management of horticultural businesses in Indonesia", several kinds of research methods were found, such as: (1) Descriptive analysis research method, namely, statistics used to analyze data by describing or describing the data used. has been collected as it is without intending to make generally accepted conclusions or generalizations, (2) Survey research methods, namely, data collection using questionnaires which are then carried out by respondents, (3) Location Quotien analysis research methods, namely, an analysis used as one of the basic economic model approaches, is relevant and can be used as a technique to identify the distribution of agricultural commodities.In general, horticultural commodities have a comparative advantage as well as a competitive advantage, but the comparative advantage parameter is lower than the competitive advantage. Competitive.

AN INVESTIGATION ON MALAYSIA CONSUMER’S WILLINGNESS-TO-PAY FOR WATER USING INCOME AND USE OF GOODS

It is quite common for people to under value public goods (like water); mainly because they are often provided for the public to use at the discretion of the government (e.g., with subsidy, discount) unlike other economic goods (like commercial products) offered for buyers at market price by practitioners. In Malaysia, the government subsidizes the price of water for the public to ensure they have easy access to drinking water and affordability. With continued increase of water demand, consumption and wastage, low water tariff is suggested as one of many factors contributing towards Malaysian public’s inefficient water use. To curb inefficiency, the government is suggested to practice high water tariff; this however is a sensitive issue since the public views water both as a public (social) good and is a human right. So, the question of how much one is willing to pay (WTP) becomes an important issue to explore. WTP refers to the final decision made on how much cash the consumer is willing to pay for a supply of water. In Malaysia’s case, WTP is linked to whether the public is willing to pay more for water services as they are used to paying less in the past. Ranges of water pricing consumers are willing to pay to get water provision in different countries have been reported in the literature; income and use of the good are the common economic determinants to measure WTP. This study investigates the role played by income and use of goods as components of basic economic model in influencing consumers’ WTP to pay more for water tariff. The online survey was participated by 252 household representatives (paid water users) in Malaysia. From one-way ANOVA tests carried out, this study found that both income and use of goods acted as determinants of WTP.

Dynamic economic dispatch of power system based on DDPG algorithm

With the rapid developments of renewable energy sources, the uncertainty of the power supply will bring new challenges to scheduling problems, and conventional scheduling strategies may lose their effectiveness. The current general scheduling strategies need to model the uncertainty of the environment, while it is difficult to achieve a high degree of accuracy in the power system with high penetration rate of new energy, which will directly affect the scheduling result. In response to this problem, this paper studies the economic dispatch of power systems based on deep deterministic policy gradient (DDPG),which avoids the uncertainty modeling of the environment in principle. Combined with the basic economic dispatch model, this paper has defined a learning mode of the algorithm and built an algorithm framework of economic dispatch of power system based on DDPG. The results of the experiment show that proposed algorithm is highly adaptable to random fluctuation of renewable energy.

Selection of countermeasure portfolio for shipping safety with consideration of investment risk aversion

This paper proposes optimization models to select shipping safety countermeasure portfolios with consideration of the investment risk preferences of decision-makers. The formulation is extended from the basic economic safety model, where losses are scenario-specific and are expressed as a function of the countermeasure selection variables based on analysing the chain of events along accident paths. Conditional value-at-risk is introduced to measure the investment risk represented by the worst-case cost. Several single -objective programming models are formulated first to optimize the safety-related costs using either the expectation criterion in risk-neutral environments or the conditional value-at-risk criterion in risk-averse environments. Then a bi-objective model is presented by combining those two criteria. Simulation results indicate that the best countermeasures for the expectation objectives are different from those for the conditional value-at-risk objectives. Such findings provide shipping safety investment planners insights in balancing not only the active investment and the accident loss but the return and the risk of the investment, to achieve a selection of countermeasures that is cost-effective as well as leads to low costs in extreme situations.

Towards a Novel Computer-Aided Optimization of Microreactors: Techno-Economic Evaluation of an Immobilized Enzyme System

Immobilized multi-enzyme cascades are increasingly used in microfluidic devices. In particular, their application in continuous flow reactors shows great potential, utilizing the benefits of reusability and control of the reaction conditions. However, capitalizing on this potential is challenging and requires detailed knowledge of the investigated system. Here, we show the application of computational methods for optimization with multi-level reactor design (MLRD) methodology based on the underlying physical and chemical processes. We optimize a stereoselective reduction of a diketone catalyzed by ketoreductase (Gre2) and Nicotinamidadenindinukleotidphosphat (NADPH) cofactor regeneration with glucose dehydrogenase (GDH). Both enzymes are separately immobilized on magnetic beads forming a packed bed within the microreactor. We derive optimal reactor feed concentrations and enzyme ratios for enhanced performance and a basic economic model in order to maximize the techno-economic performance (TEP) for the first reduction of 5-nitrononane-2,8-dione.

The unilateral gift economy conjecture

I offer the conjecture that unilateral maternal provisioning constitutes a basic economic model for all with implications and a logic of its own. Market exchange is a derivative of this model, which contradicts it and creates its own area of life. The two models interact without our awareness because we have not taken unilateral gifting seriously. Renaming exploitation as the taking of unilateral gifts reveals another way to connect the dots between unwaged housework, surplus labor and ‘nature services’, and these are also connected to colonialism, corporate globalization and ecological devastation.

ЭКОНОМИЧЕСКАЯ ЭФФЕКТИВНОСТЬ РЕАЛИЗАЦИИ БИЗНЕС-МОДЕЛИ ЖИЗНЕННОГО ЦИКЛА В МАШИНОСТРОЕНИИ

Despite the active development of the product lifecycle concept in the real sector of economy, Russian companies in the engineering industry are just beginning experiments with this business model and product lifecycle contracts (or performance-based lifecycle product support). Probably, one of the reasons is that enterprises cannot objectively assess the economic efficiency of this business model: sometimes the sources of economic efficiency and possible economic risks are not obvious to them. Moreover, enterprises do not have a basic economic model that would help to assess the potential financial result of a project fulfilled in a lifecycle business model. In this regard, it is important to analyze and explain the reasons for the economic efficiency of lifecycle contracts with using of global practical experience, as well as international research of this topic. As a result, it is necessary to formulate a principled approach to assessing the effectiveness of such projects in comparison with projects implemented within the classic product business model. In the article, the authors analyze the sources of economic efficiency of projects fulfilled in the product lifecycle model in mechanical engineering industry. The authors point out the potential risks, which can affect the economic result of the project. The article also presents a principled formula for assessing the cost of a lifecycle contract and an example of calculating the economic efficiency of such a contract in aircraft engine project.

A note on cooperative hunting (Holmstrom and Fabella meet the Dumagat of Tanay)

This paper examines social institutions and norms related to cooperative big game hunting by introducing these explicitly into the basic economic model used to analyze moral hazard in teams [Holmstrom 1982]. Features built into Holmstrom’s basic model include effort to locate and acquire game, trophy taking and carcass sharing among members of a hunting party. The insights offered here are inspired by the norms of the Dumagat of Tanay in hunting, meat sharing and trophy taking. Among the Dumagat, the individual who acquires the game takes the head and the feet as trophy. The rest of the carcass is divided up along the lines described by Fabella’s [1988] natural team sharing formula. JEL classification: J23, J24

The economics of shrimp disease

Shrimp is not only one of the world’s most valuable aquaculture species, but also a species that encounter high economic losses due to diseases. Diseases are sufficiently important to influence global supply and prices for longer periods. Profitability is the driving force behind shrimp farming and high profits associated with the absence of disease largely determines where shrimp production does take place; i.e. prevalence of disease leads to geographic relocation. In this paper, a basic economic model for the impact of the disease on a shrimp farm is provided and a Monte Carlo simulation is provided to illustrate the impact of disease on economic risk. Improved technologies, knowledge, and governance are important elements utilized in the mitigation of diseases in various shrimp producing countries. Economic aspects such as profitability in the absence and presence of diseases and cost of treatment determines the global production of shrimp along with shaping technologies and production systems.

Managing unreliability in automotive supply networks - an extension of the joint economic lot size model

Within assembly network supply chains, supply disruptions can occur on every supplier-buyer link. Managing this network unreliability can help to reduce schedule instability and increases the overall efficiency of the supply chain accordingly. In this line, a stylised assembly network supply chain model is proposed with two suppliers and a single buyer using the joint economic lot sizing approach. This supply network can be disrupted by a shortage occurring at one of the two suppliers due to random machine breakdowns, which consequently creates dependent requirements variations affecting both the buyer and the entire network. First, the basic joint economic lot sizing model is extended by the said schedule instability. Second, a solution approach is presented concerning the determination of optimal lot sizes, the investment into the reliability of the supply network as well as the determination of safety stocks. Furthermore, the sensitivity of relevant model parameters is investigated by means of a numerical example. Managerial implications are accordingly derived focusing on the reliability of the supply network members and internal incentive structures.

Methodological fundamentals of quality management theory in condition of digital economy

Theory and practice of quality management are still under longstanding crisis which is most evidently manifested in conditions of digital economy. This article is addressing a conceptually new approach to solving the problem of quality management system development. Lack of progress in solving this problem is caused by (I) mismatch between today’s basic economic model and economic practices and, as a consequence, (II) failure to solve it within the scope of recommendations obtained in limited subject field. Referring to analysis of centuries-long experience of scientific development the authors investigate potential directions of quality management system development. The paper substantiates necessity to address the background of methodology — a science dealing with functioning and using of practical recommendations which already exist in this sphere. As a result, this subject acquires the features of interdisciplinary character — interfacing economical, general systematical and general methodological disciplines. It should be mentioned that so far problems presented herein have not been completely investigated and further more profound and detailed survey is required. Results obtained make it possible to expand potential directions of economic theory improvement and development. This paper has, to a greater extent, a prearranged character, is innovative by its nature and may be interesting for experts specialized in economy and related disciplines.

The effects of cash transfers on adult labor market outcomes

ᅟThe basic economic model of labor supply has a very clear prediction of what we should expect when an adult receives an unexpected cash windfall: they should work less and earn less. This intuition underlies concerns that many types of cash transfers, ranging from government benefits to migrant remittances, will undermine work ethics and make recipients lazy. We discuss a range of additional channels to this simple labor-leisure trade-off that can make this intuition misleading in low- and middle-income countries, including missing markets, price effects from conditions attached to transfers, and dynamic and general equilibrium effects. We use this as a lens through which to examine the evidence on the adult labor market impacts of a wide range of cash transfer programs: government transfers, charitable giving and humanitarian transfers, remittances, cash assistance for job search, cash transfers for business start-up, and bundled interventions. Overall, cash transfers that are made without an explicit employment focus (such as conditional and unconditional cash transfers, and remittances) tend to result in little to no change in adult labor. The main exceptions are transfers to the elderly and to some refugees, who reduce work. In contrast, transfers made for job search assistance or business start-up tend to increase adult labor supply and earnings, with the likely main channels being the alleviation of liquidity and risk constraints.JEL ClassificationO15, J22, I38, H23

Natural Capital Changes in Poland – Integrating Spatial and Economic Approach

In the context of decision making, the main challenge is the assessment of changes in natural capital stocks due to conversion of ecosystems for development purposes. Ecosystems are basically a spatial concept, so the natural approach is to use GIS to evaluate land cover changes. Basic economic model of competing land uses allows us to formulate the criteria of economic rationality in the management of natural capital. The goal of this paper is a preliminary application of the criteria coming from the economic model of land uses to assess changes in land cover in Poland in the years 2000-2012.

The “Spice” Trade

There are currently over 170 synthetic cannabinoids monitored by the European Union Early Warning System, making it the single largest group of new psychoactive substances, often marketed as “legal” replacements to cannabis. The Internet, coupled with cheap and efficient shipping, has allowed countries like China and India to become the chemical and pharmaceutical wholesalers and retailers to the world. These companies ship synthetic cannabinoids to Europe, where they are processed and packaged into a range of products, smokable herbal mixtures being the most common one. The herbal mixtures, often referred to as “Spice,” are then sold via online shops on the surface web, using sophisticated marketing techniques, potentially generating high profits. We decided to use available data on the synthetic cannabinoid 5F-MDMB-PINACA to estimate those profits. After making an inventory of the required materials and the typical retail price, we made a lower and upper bound profit estimation. We found that the return on costs varies between 3.3 and 24.4 after the first production and rises to a range between 5.5 and 42.5. By applying a basic economic model, our estimations show that profits in this type of business are substantial.

Should the Ethanol Blender's Credit Be Eliminated?

In December 2010, one U.S. legislative action was largely overlooked in the popular press: the one-year extension of the 45-cent-per-gallon Volumetric Ethanol Excise Tax Credit (VEETC), commonly known as the “blender's credit.” Both proponents and opponents of the blender's credit liked to cite data to support their positions. Proponents pointed out the number of jobs created by new ethanol plants, while opponents cited unfavorable energy balances from the use of ethanol and the overall budgetary impact of the blender's credit. What was less clear—but potentially much more important than the selective data cited by advocates and critics of ethanol—was the overall impact of the blender's credit on the U.S. economy. In particular, to what extent did the ethanol subsidy—by influencing the allocation of resources to the ethanol market—act as a drag on efficiency in the U.S. economy? This case presents a history of ethanol in the U.S. and an overview of the market for ethanol-based motor fuel, including data on demand and supply fundamentals. It also discusses the broader U.S. energy market, as well as the U.S. market for corn. The case reviews other policy interventions besides the ethanol tax credit that have an impact on the market for ethanol-based motor fuel, such as tariffs and mandates. Finally, it surveys the ways other countries around the world, such as Brazil, have supported the use of ethanol-based fuel.Provides a vehicle for teaching the basic economic model of government subsidies using supply and demand curves. Enable students to determine the deadweight loss of the ethanol tax credit for the year 2006. Enables discussion of the possible benefits of the ethanol tax credit including reducing reliance on foreign oil and reducing carbon emissions. Careful interpretation of the economic evidence in the case is essential for students to develop a coherent point of view on these potential benefits.

Use of a proactive herd management system in a dairy farm of northern italy: technical and economic results

Reproductive and economic data were recorded before and one year after the installation of Herd Navigator™ in a dairy farm with AMS (Automatic Milking System) located in a mountain area of Northern Italy. Number of days open reduced from 166 to 103 days, number of days between the first and second insemination decreased from 45 to 28 days, and days for identifying an abortion were 80 % less, from 31 to 6 days. The preliminary results highlight the usefulness of the proactive herd management system installed for the reproduction management. A basic economic model is proposed to evaluate the potential economic benefits coming from the introduction of this technology. The model considers the benefits deriving from the reduction of reproduction problems and, consequently, of days open. Considering the effects related to the above mentioned aspects in a case study involving 60 dairy cows, a return on investment over 5 years has been calculated.

Use of a proactive herd management system in a dairy farm of northern italy: technical and economic results

Reproductive and economic data were recorded before and one year after the installation of Herd Navigatorâ„¢ in a dairy farm with AMS (Automatic Milking System) located in a mountain area of Northern Italy. Number of days open reduced from 166 to 103 days, number of days between the first and second insemination decreased from 45 to 28 days, and days for identifying an abortion were 80 % less, from 31 to 6 days. The preliminary results highlight the usefulness of the proactive herd management system installed for the reproduction management. A basic economic model is proposed to evaluate the potential economic benefits coming from the introduction of this technology. The model considers the benefits deriving from the reduction of reproduction problems and, consequently, of days open. Considering the effects related to the above mentioned aspects in a case study involving 60 dairy cows, a return on investment over 5 years has been calculated.

Mezzi di comunicazione di massa e pluralismo: un approccio economico

The paper reviews the ongoing economic literature on media markets but with a sharper focus on the pluralism issue. The authors start with the basic economic model to describe how the media market functions and then use the model to illustrate the key economic contributions according to the two-sided market, media bias and media capture. The paper ultimately addresses the pluralism issue, incorporating both the provision of and the demand for information.

The Social Entrepreneur as Trailblazer: A Non-Normative Role for Social Enterprise in a Market Economy

This paper advances the field of social entrepreneurship by developing a basic economic model of the social entrepreneur as a profit-deviating firm. We then demonstrate how profit deviation lowers the effective operating costs of the firm, allowing social entrepreneurs to recognize, evaluate, and exploit previously unconsidered opportunities. In doing so, social entrepreneurs may generate knowledge spillovers by providing valuable ex-post entry information regarding the expected costs of a venture, thereby providing a public good to latent entrepreneurs in the commercial sector. Based on this new information, the latter may then enter markets previously considered unprofitable, leading to market development and growth. We illustrate the range of market conditions that are relevant for the social entrepreneur and provide one industry- and one company-focused case study to illustrate the model. The model and evidence provide a complementary role for the social entrepreneur beyond the production of collective goods.