Framework For Economic Analysis Research Articles

A Crash Course in Differential Games and Applications

The methodology of differential games is a combination of optimal control theory and game theory. It is the natural framework for economic analysis with strategic interaction and dynamical optimization. The theory gained traction by seminal papers in the early seventies, and it gradually found its way into economics. The purpose of this paper is to make theory and applications of differential games easily accessible by explaining the basics and by developing some characteristic applications. The core of the theory focuses on the open-loop and the multiple Markov-perfect Nash equilibria that use the maximum principle and dynamic programming as the techniques to solve the optimal control problems. The applications are the game of international pollution control and the game of managing a lake, which is an example of an ecological system with tipping points. Finally, it is interesting to note that the discovery of time-inconsistency in the open-loop Stackelberg equilibrium had a huge impact on macroeconomics, since policy making under rational expectations is a Stackelberg differential game.

Mathematical modelling of quantifying bioethanol fuel production from pineapple waste

Lack of confidence in potential bioenergy production and net benefit hinders rapid implementations of such sustainable energy productions from different waste sources. With the aim of accelerating real-life implementations of more bioenergy productions, this paper presents development of a simple mathematical model, which can be used to evaluate potential bioethanol production capacity from pineapple waste under different input conditions. Based on an earlier experimental study, the mathematical model was developed depending on three contributing factors; pH, temperature and substrate concentration as considered in the earlier experimental study. Results from the developed mathematical formulation were compared with the experimental data from the earlier original study. It is found that the developed model is quite capable to estimate potential bioethanol productions from pineapple waste. Model estimated results are having a coefficient of correlation of 0.84 with the measured data. Standard errors of the model’s estimations are also quite low; RMSE = 0.49, MAE = 0.39 and RAE = 0.06. To facilitate a wider industrial generation, a basic mathematical model framework for economic analysis is proposed involving evaluation of net present values of expected future yields, as well as costs (initial and maintenance). Such mathematical model of economic analysis will help stakeholders on selecting optimum input parameters in achieving targeted benefit through optimised energy consumption.

Predicting forward osmosis performance with synthesized polyamide-based membrane: An integrated machine learning (MATLAB and ANN) and economic analysis framework

Forward Osmosis (FO) has emerged as a highly promising membrane-based water treatment process owing to its intrinsic advantages, such as low energy requirements and the potential for high water recovery. The lab-prepared highly efficient thin film composite (TFC) FO membranes that were used in this research work. The resultant polyamide-based FO membrane showed exceptional performance, notably achieving a high-water flux of 60.94 ± 3.5 L/m2.h and a constrained solute flux of 1.52 ± 0.08 g/m2.h. Machine learning methodologies are strategically employed in this study to construct predictive models for FO membrane performance. Notably, the accuracy of the van't Hoff equation's linear assumption is significantly enhanced by introducing an osmotic pressure calculation based on water activity, considering the nuanced effects of external and internal concentration polarization. The research employs MATLAB software alongside an artificial neural network (ANN) to develop predictive models. MATLAB facilitates the creation of a comprehensive theoretical model, offering insights into forecasting water flux through FO membranes by systematically analyzing diverse membrane parameters and their impact on performance. Concurrently, the ANN model was employed to predict the permeate flux for the laboratory-scale FO membrane system, utilizing the input parameters within the network's training range (R2 > 0.91). An economic assessment is also conducted to estimate the projected membrane cost, a pivotal determinant of system viability. Collectively, these investigations yield valuable insights into the intricacies of FO membrane design and optimization, elucidating their performance dynamics in water treatment and allied applications. This research significantly contributes to the ongoing quest to develop more efficient and precise membrane processes.

A Conceptual Framework for Economic Analysis of Different Law Enforcement Drones

The widespread use of drones in various fields has initiated a discussion on their cost-effectiveness and economic impact. This article analyzes in detail a methodological evaluation framework for the levelized cost of drone services for law enforcement purposes. Based on the data availability, we compared two vehicles: Phantom 4 Pro and Thunder-B. Moreover, we calculated their levelized costs per surveillance time and trip distance. Our approach helps users calculate the real costs of their vehicles’ services and produce equations for rapid estimations. We observed economies of scale for time and distance and showed differentiations per aircraft capacity. Furthermore, using the produced equations, we formulated a case study and compared the costs in a 4 km area constantly monitored by the two types of drones to support the best vehicle selection. We found that the Phantom 4 Pro costs less than the Thunder-B drone, for example. Thus, we demonstrate how, by applying this methodology beforehand, decision makers can select the most appropriate vehicle for their needs based on cost. Cost research estimations will improve UAV use and will help policymakers include UAV technology in crime prevention programs, especially when more data are available.

The Effects of Judicial Reorganization of Companies on the cost of credit in Brazil and its social impacts

The present study aims to analyze whether the institute of judicial reorganization of companies has viability in the context of Economic Analysis of Law, taking into account its reflexes on the cost of credit in Brazil and consequently on society as a whole. The method of approach followed was empirical-dialectical, using bibliographic and legislative research. In conclusion, it was verified that the institute of judicial reorganization of companies, in the current national scenario, does not have viability in face of the theoretical framework of Economic Analysis of Law, considering that it provides short-term benefits only to those who participate directly in its process.

A STUDY ON THE ECONOMIC ANALYSIS FRAMEWORK OF THE ARCTIC ENERGY PLANT CONSTRUCTION PROJECT

The construction projects in the Arctic region are considered highly uncertain due to the extremely cold construction environment. In this study, we presented an economic analysis framework applying rainbow options that can consider multiple uncertainties. The economic feasibility of oil & gas plant construction projects is mainly affected by fluctuation in oil price and construction cost. Thus, we considered oil price and construction cost fluctuation as main uncertainties. The proposed framework consists of five steps and aimed to be validated through a case study conducted in the Canadian context: (1) estimate construction cost uncertainty (estimate the volatility of construction cost with Monte-Carlo Simulation); (2) estimate oil price uncertainty (estimate the volatility of oil price with geometric Brownian motion); (3) Economic data can be categorized into project data and market data, and detailed data is defined and quantified; (4) the economic feasibility of the project is assessed using the quadrinomial lattice method, which is one of the techniques used to calculate real options; and (5) optimize project decision making. The research findings hold significant meaning as we propose a framework for evaluating the economic feasibility of an energy plant construction project using rainbow options. Furthermore, it is anticipated that the utilization of the proposed framework can enhance the profitability and make a significant contribution to investors planning to embark on energy plant construction projects.

Essential aspects of unit economics and its application in project activities

Subject. The concepts of unit economics are increasingly becoming part of economic practice. This is primarily due to the development of technological entrepreneurship, which is encouraged at the State level. However, in domestic economic science, there is still no consensus on what exactly is unit economics, its boundaries, methods, and specifics of application. Objectives. The article aims to consider unit economics from the standpoint of theoretical and methodological approach in relation to its use in project activities, rather than in terms of the general economic analysis. Methods. The study employs methods of analysis, synthesis, logical-epistemological and logical analysis, induction and deduction. Results. The paper offers definitions of unit economics in broad and narrow senses, takes steps to reveal the methodological essence of this approach, considers the most popular concepts of unit economics, defines reasons for its extension in Russia, barriers and prospects. The findings can be useful for the unit economics concept development, its formalization. The proposed classification features can help develop express analysis tools. The main areas of application include economic analysis, project activity, evaluation of investment project efficiency. Conclusions. Unit economics as a direction within the framework of economic analysis has not been fully formed. The unit-calculation toolkit is practice-oriented, which is an additional institutional barrier to its adoption by the economic scientific community. The development of unit-tools, application in project activities, and introduction into the system of higher education in the training of economists are inevitable.

Overseas compliance risk prevention for multinational corporations in a law and economics perspective: empirical evidence from Chinese MNCs

PurposeThis paper aims to investigate whether executive compensation and internal control can prevent overseas compliance risks through the mediating influence of multinational corporation (MNC) legitimacy and the moderating role of institutional distance.Design/methodology/approachBased on a law and economics perspective and the “bad apple,” the “red barrel” and the “bad cellar” theory of business misconduct, this paper constructs a systematic framework of “compliance motivation MNC legitimacy overseas compliance risk prevention” from the individual, organizational and systematic levels and uses data of Chinese MNCs for empirical analysis.FindingsEmpirical data from Chinese MNCs show that overseas compliance risks are comprehensively affected by the factors of the individual, organizational and systematic levels. Higher executive compensation and internal control will reduce MNCs’ overseas compliance risks through MNC legitimacy acquisition; institutional distance hinders the positive effect of internal control on MNC legitimacy and therefore aggravates overseas compliance risks.Practical implicationsThis paper contributes to the understanding of the overseas law-abiding and offence behavior of MNCs from a law and economics perspective and offers valuable insights on how to prevent the ever-increasing overseas compliance risks.Originality/valueAlthough the literature has analyzed the factors of compliance behavior, they are not interrelated, let alone integrated in a systematic risk prevention framework. This paper applies a law and economic analysis framework to the study of the overseas compliance risks for the first time.

Framework for Economic Potential Analysis of Marine Transportation: A Case Study for Route Choice Between the Suez Canal Route and the Northern Sea Route

This paper presents a new framework for economic analysis of marine transportation, where uncertainty is given more attention than in the current research. A new quantitative method combined with the importance ranking method is used to access the uncertainty of evidence and for fusion of evidence from multiple sources. The Bayesian network model is chosen as a tool to convey the uncertainty from one variable to another variable. Finally, with the help of information flow method, key factors are selected for sensitivity analysis. This framework is applied to a case study of maritime transportation from Shanghai to Rotterdam, aiming to investigate the economic potential of the Arctic routes and to explore the possibility of Arctic routes as a substitute for the traditional routes. A well-trained Bayesian network shows that the traditional routes will still dominate marine transportation in the near future. Sensitivity analysis reveals the asymmetric impact of key factors on the plan choice.

Estimating the Economic Value of Change in Ecosystem Habitat Quality in South Korea Using an Integrated Environmental and Economic Analysis

Jeju Island is one of the most prominent ecotourism destinations in South Korea and has steadily been the subject of land-use development. In this study, the economic value and benefits of habitat quality changes on Jeju Island were estimated through an integrated environmental and economic analysis linking the unit values of ecosystem services to the physical habitat quality measures predicted by the InVEST Habitat Quality Model. A choice experiment survey was conducted to estimate the willingness-to-pay for the changes in habitat quality at 12 tourist sites using a hybrid econometric model. The results indicate the presence of heterogeneity in respondents’ preferences for ecotourism destinations. Visitors were most sensitive to changes in the habitat quality level among three attributes: on-site facilities, information and interpretation services, and habitat quality. Based on the willingness-to-pay for each tourist site, the total benefit resulting from the improvement of habitat quality in the 12 tourist sites is substantial. The integrated environmental and economic analysis framework used in this study would effectively produce plausible economic values generated by environmental goods and services. The findings also provide a basis for considering the importance of economic benefits provided by ecosystem services in decision-making.

Global sensitivity based prioritizing the parametric uncertainties in economic analysis when co-locating photovoltaic with agriculture and aquaculture in China

Teaming up photovoltaic (PV) with agriculture or aquaculture, namely, the agrivoltaics and aquavoltaics, create novel energy-food-(land or water) nexus offering mutual benefits potentially. At present, the profitability of these nexuses is still not well quantified, but it is usually what investors are most concerned about. Hence, an economic analysis framework is proposed to benchmark the profitability of both agrivoltaics and aquavoltaics systems, and further prioritize the most influencing factors for the project economy. The framework is applied in China indicating that the average simple payback period (SPP) ranges between 6.2–6.6 years for agrivoltaics projects, and 9.5–10.1 years for aquavoltaics projects. Capital cost of PV, solar resource richness, and feed-in-tariff are top three influencing factors for the profitability of both agrivoltaics and aquavoltaics systems. The national implementing potential of agrivoltaics and aquavoltaics would be up to 112 GW for agrivoltaics and 564 GW for aquavoltaics in China. Overall, compared to PV-only configuration, agrivoltaics and aquavoltaics contribute to more terms of Sustainable Development Goals to a greater extent, which could be emerging PV deployment patterns during the era of no subsidy on PV feed-in-tariff.

An Islamic Theoretical Framework for Economic Analysis

Conventional economics despite its scientific approach and positive arguments failed to solved the current economic problems of the humanity. There are two reasons for such failure; one reason is the positivity of its nature which hinders it from playing active role in controlling human behavior. And the second reason is that its basic postulates by themselves are the causes of the creation of the economic problems. This state of the affairs, necessitate, a complete departure from the contemporary conventional wisdom, in search of solution, to an alternative framework. An Islamic framework of economic analysis could present a viable alternative in the context, due to its dynamic nature, combining both material and spiritual aspects of human economic behaviors. Therefore, this article attempts to provide some insights into the early efforts by Muslim scholars in development the science of Islamic economics. It also underscores the inadequacy of the conventional economics theory and its causes, and the need for formulation of Islamic theory of economics. Philosophical framework of Islamic economics along with some major axioms of Islamic ethics, shaping Islamic outlook on economics are also dealt with. The distinctive features of an Islamic framework for economic analysis are also delineated in this article. Using an analytical approach, the article concludes the urgency of the need for the articulation of a comprehensive Islamic framework for Islamization of economic, hence, solving the contemporary economic problems of the humanity.

Corruption and Organised Crime Signalling Indicators for Foreign Investors as Applied to Eastern European Countries

The former communist countries in Central and Eastern Europe and, implicitly, their economies, went through specific and sometimes asymmetric developments since the fall of the “iron curtain” at the end of the 1980s. During those years, they faced many challenges to create a secure and predictable economic environment for individuals and businesses, local or foreign. We propose a framework that considers legal, social, and economic indicators which can be used by foreign investors to make wise and efficient business decisions. Our main purpose is to expand the traditional economic analysis framework and enrich it with new institutional and societal indicators from the social, quality of life and legal layers of research. This new landscape could offer relevant information on vulnerabilities that could favour organized crime and corruption in some Central and Eastern European countries, a factor that foreign investors may need to address before deciding to invest in the region.
 Keywords: foreign direct investments, organised crime, corruption, economic vulnerabilities, GDP

A parallel computing simulation-based multi-objective optimization framework for economic analysis of building energy retrofit: A case study in Iran

The building sector represents a large share of rising global energy demand. Improving energy efficiency in existing building stock is a crucial strategy. Adopting the best energy retrofitting strategy in a specific building is a challenging task due to a plethora of possible combinations of retrofit measures and mutually contrasting objective functions. In addition, peculiar conditions of Iran, such as extremely subsidized energy prices, and step utility tariffs, escalate the challenges of building energy retrofit. Accordingly, the current study presents a simulation-based multi-objective optimization framework characterized by parallel processing structure and results-saving archive. The framework is implemented by integrating MATLAB® as an optimization engine with EnergyPlus as a dynamic energy simulator to minimize primary energy consumption and discounted payback period while maximizing the net present value. The algorithm explores a vast domain of possible solutions including, building envelope, cooling and heating systems, and renewable energy sources. The framework is applied to a single-family residence located in Iran. Three different scenarios are examined with reference to prospective energy pricing policies to evaluate their effect on the attractiveness of energy retrofit projects. For each scenario, final solutions are selected from respective Pareto fronts according to cost-optimality and energy-efficiency criteria and considering budget constraints. The results indicate that even though significant reductions in primary energy consumption can be achieved, implementing energy retrofit under the current energy pricing policy in Iran would not yield economic benefits. However, the elimination of subsidies along with offering incentives for building energy retrofits presents promising outcomes.

Economic Analysis of Tax Law from a Sustainable Perspective

Since sustainable taxation requires certain tax designs, the question arises if tax rules are adequate from a sustainability perspective. Answering this question presupposes a framework of economic analysis of law. The mainstream approach of economic analysis of law deduces social order rules from the general value of neoclassical efficiency. Yet, efficiency is not an adequate social order value for sustainable tax law, and neoclassical theory is not an adequate underlying theory. Thus, the present Article outlines a framework that discusses how to design sustainable tax rules. It emphasizes that this framework needs methodological rules, empirically confirmed theories like the political-cultural market approach, and the reference to ethical concepts of relevant social values (in contrast to dogmatizing efficiency). This Article argues that Sustainable Development Goals (SDGs) in general are adequate social order values for an economic analysis of tax law. On this basis, the Article outlines how to develop a sustainable tax law. It shows that a decision-neutral tax law is neither realizable nor reasonable. Furthermore, it argues that the substantiation of achieving more equality (SDG 10), e.g., the interpretation of ability to pay, the discussion of companies’ fair shareof tax, or the discussion of whether a one-book system is adequate requires detailed theoretical and ethical analysis. The same holds for answering the question whether environmental taxes are an adequate means to motivating actors to behave in an eco-friendly way (SDGs 7, 11, 12). Even this Article’s short analysis shows that tax rules that are in line with sustainability will differ considerably from tax rules that comply with the mainstream approach of economic analysis of law.

A customized transition towards smart homes: A fast framework for economic analyses

Smart homes allow optimized energy usage, allowing households to reduce electricity bills or even make profits. By 2020, 20% of all households in Europe will be expected to become smart homes. Although smart homes seem to be the future for homes, many customers have the perception that a transition from current homes to smart ones is unprofitable. Adopting a smart home concept requires investments for which the households desire a positive return. A question in this context is the following: for a given household, when and/or what set of home appliances/technologies should be acquired so that the investment made by householder has a positive financial return? The available tool to answer that question can be time-consuming from a practical perspective. Based on our previous work, this paper proposes a framework to help the transition from current houses to smart homes considering customized electricity usage and economic measures. A tree algorithm is developed to decrease the time needed by an economic analysis of each possible acquisition combination of smart appliances or equipment for a given user. The proposed framework is tested on 40 cases covering all Brazilian capital cities, whose results are available online and may be used directly as an approximation for economic analyses. An example of one case is described in detail. Results show that the proposed tree algorithm is able to reduce days of CPU time to solve the problem and Net Present Value should be used as an economic measure to answer the aforementioned question.

Perineural local anaesthetic catheter after major lower limb amputation trial (PLACEMENT): results from a randomised controlled feasibility trial

ObjectivesTo determine the feasibility of undertaking a randomised controlled effectiveness trial evaluating the use of a perineural catheter (PNC) after major lower limb amputation with postoperative pain as the primary...

Effect of promotion pressure and financial burden on investment in public–private partnership infrastructure projects in China

By identifying the political motives of officials and local governments, this study aims to provide a new political economic analysis framework for understanding China's incentives for investing in public–private partnership (PPP) infrastructure projects. Chinese urban panel data for the period 2013–17 were used to examine the mechanisms of promotion pressure and financial burden in relation to investments in PPP infrastructure projects. Based on our findings, the following policy recommendations are proposed: standardise the behaviour of local government officials in promoting PPP projects, establish a lifelong accountability mechanism for PPP project performance, establish a mechanism for local government debt risk assessment and prevention, and avoid the risk of local debt arising from over‐investment in PPP infrastructure projects. Moreover, a match should be formed between local economic infrastructure planning and investment plans to avoid over‐ or under‐investment.

Economic analysis of producing vital statistics using civil registration data in Lao People\u2019s Democratic Republic

The government of Lao People’s Democratic Republic (PDR) is currently in the preparation stage of a 5-year project that will establish an electronic civil registration and vital statistics (CRVS) system. The authors of this paper adapted a framework for economic analysis developed by Jimenez-Soto et al. (Jimenez-Soto et al., PLoS ONE 9(8): e106234, 2014) to assess the cost-effectiveness of producing vital statistics in Lao PDR using data from a complete electronic CRVS system, compared to using data from other sources, such as the 2015 Population and Housing Census and the 2017 Lao Social Indicator Survey (LSIS). Of 20 types of vital statistics (including birth statistics, fertility rates, and death statistics), a complete and accurate CRVS system can produce all 20 of these vital statistics, while the 2015 Census can produce 17, and the 2017 LSIS and the current civil registration system can produce 4 each. A cost-effectiveness analysis of different data sources for producing vital statistics over a 20-year projection showed that a complete and accurate CRVS system ranked best, followed by population census and population-based survey. In addition to enabling vital statistics to be produced cost-effectively, a robust civil registration system would also support improving the efficiency of public service delivery, leading to further cost savings for the country.

An economic framework for analysis of network architectures: SDN and MPLS cases

As new networking architectures such as 5G start materializing in the next era of communication revolution, economic and operational facets of these future networks drive researchers to rethink about their capabilities of flexibility, agility, programmability, and cost-effectiveness. These are the main features to make networks like 5G (fifth-generation) possible and available for societies shortly because they are the fundamental catalysts to achieve economic success in a network. It is vital for network owners to analyze and understand economic aspects of a network architecture before deciding to invest in it. In this article, we introduce a framework utilizing an activity-based approach for the techno-economic analysis of network architectures. In particular, we perform an economic analysis of SDN (Software Defined Networking) technology and MPLS (Multiprotocol Label Switching) technology in order to understand how programmable networking, i.e., SDN technology, affects the network economics compared to traditional networking, i.e., MPLS technology. To this end, we firstly conduct a quantitative analysis exploiting an activity-based approach for CAPEX (Capital Expenditure) and OPEX (Operational Expenditure) calculations of a network. Secondly, we evaluate the architectures above concerning their economic performances using two metrics: Unit Service Cost Scalability metric and Cost-to-Service metric. Also, we present mathematical models to calculate certain cost parts of a network. Also, we compare different popular SDN control plane models, Centralized Control Plane (CCP), Distributed Control Plane (DCP), and Hierarchical Control Plane (HCP), to understand their economic impact with regards to the defined metrics. We use video as the service with different traffic patterns for the comparison. This work aims at being a useful primer to providing insights regarding which technology and control plane model(s) are appropriate for a specific service, i.e., video, for network owners to plan their investments.