Multi-period Analysis Research Articles

A choice‐theoretic analysis of a corporate tax holiday versus a subsidy

This paper attempts to compare the effect of a corporate tax holiday with that of a subsidy on the behaviour of the individual firm. Assuming the subsidy equals the amount of tax paid by a firm operating under the subsidy system, we find that the firm's net profit will be greater under the tax holiday than under the subsidy regime. Similarly, if the subsidy exceeds the tax by an amount that would equalize the profits made by the (“marginal”) firm under the two regimes, then it is found that firms with higher than “average” unit costs would opt for the subsidy system; conversely, firms with a low cost structure would maximize profits by selecting the tax holiday. Finally, a multiperiod analysis of the particular choice facing prospective manufacturers in Ciskei, shows that the firm would normally choose the subsidy system except if the current tax exceeded the subsidy at the output level representing maximum profit under the tax holiday.

The Mechanics, Determinants and Management of Working Capital Investment

A multiperiod analysis of working capital investment is outlined. An attempt is also made to clarify the objects of working capital management by reference to wealth maximisation orthodoxy.

Modelling the Dynamic Effects of Multiperiod Allocation Decisions

Decisions regarding the allocation of demand centres to distribution facilities over a multiperiod planning horizon have disjointed single-period implications. However, interperiod effects of assignment decisions are potentially as significant. Often these dynamic forces are neglected in distribution system planning. This paper focuses on approaches for analyzing the consequences of interperiod allocation relationships. A mathematical program is developed to provide a comprehensive treatment of dynamic implications and their interactions with single-period effects. Then, special cases of the model are examined. The paper shows that these specific approaches contain dynamic counterparts of treatments which are used in static (single-period) formulations. The general model and its special cases are the basis of a conceptual structure that is presented as a frame of reference for multiperiod allocation analysis.

Amplitudes and Frequencies of δ Scuti Stars: Systematics

Delta Scuti stars are short-period pulsating A/F stars situated on or above the main sequence. They often pulsate with two more excited modes. The knowledge of the period lengths and period ratios is very important to deduce the nature of the pulsation modes, e.g. is the pulsation radial or nonradial? Furthermore, these values provide valuable information on the interior structure of these stars.The determination of the period ratios from the light curves is difficult, since only a few cycles can be covered during a night. The small amplitudes of about 0.01 mag in some variables also makes the multiperiod analysis difficult. While every star should be considered on its own merit, a rough estimate of about 5 nights per deduced period appears to be a minimum requirement. Even then different analyses can give different results. A recent example is the star 38 Cnc (=BT Cnc). An excellent set of observations by Guerrero, Mantegazza and Scardia (1979) gave three periods with nonradial period ratios and a good fit. Our subsequent analysis of the same data gave three radial periods with an even better fit!

HR 1170 and HR 7331, two nonradial Delta Scuti pulsators

Multiperiod analysis of the photometry of HR 1170 and HR 7331 by the MFF (multiple-frequency fitting method) yield period ratios of 0.919 and 0.939, respectively, for these stars. These period ratios are consistent with the interpretation of nonradial pulsation in delta Scuti-type stars. Taking these together with the previously known nonradial pulsator, 1 Mon, a linear relation seems to emerge between rotational velocity and period ratio, although the discovery of more nonradial pulsators is necessary in order to firmly establish this relationship.

Equilibrium Stochastic Choice and Market Penetration Theories: Derivations and Comparisons

We show in this paper the formal connection between brand switching models and multiperiod analysis of brand choice behavior. A formal, well-defined stochastic process is developed from stochastic choice premises which permits analysis of any event or combination of events in terms of subsets of the market. The formal connection between single-brand analysis and multi-brand analysis is demonstrated. The parameters of the stochastic process involve the market shares and a measure of the heterogeneity of the population. This information is sufficient to permit the estimation of aggregate brand switching on adjacent trials or brand penetration and multiple brand purchasing over sequences of purchase occasions.

Taxation and investment behaviour under uncertainty ? A multiperiod portfolio analysis

This paper deals with the effects of a proportional income tax with full loss offset provisions on optimal investment behaviour under uncertainty. For convenience we only consider investments in two assets: one risky asset with a random rate of return and one riskless asset with a secure rate of return. We shall see that for a certain class of intertemporal preferences the total tax effects on the optimal investment in the risky asset can be separated in a saving effect and a portfolio effect with the former influencing the optimal level of savings and the latter influencing the composition of the optimal savings, i.e., the choice between investments in the risky and riskless asset.

The Credit Granting Decision

A series of probabilistic models are formulated for the credit granting policy of a firm. First, a single-period analysis is presented for the two-action problem, “give credit or do not give credit.” Then a multi-period analysis for the same problem is presented, showing that the single-period analysis ignores important future benefits. The multi-period analysis contains a Bayesian approach to revisions of the probability of collection as collection experience is gained. The multi-period analysis is modified by adding discounting to reflect the time value of money and a probability that the customer will cease purchasing. Next, a dynamic programming formulation of the multi-period problem is presented, and this formulation is then adapted to include a decision on how much credit to offer. The paper closes with a series of remarks concerning the practical application of the analysis.

Lifetime Portfolio Selection under Uncertainty: The Continuous-Time Case

OST models of portfolio selection have M been one-period models. I examine the combined problem of optimal portfolio selection and consumption rules for an individual in a continuous-time model whzere his income is generated by returns on assets and these returns or instantaneous growth rates are stochastic. P. A. Samuelson has developed a similar model in discrete-time for more general probability distributions in a companion paper [8]. I derive the optimality equations for a multiasset problem when the rate of returns are generated by a Wiener Brownian-motion process. A particular case examined in detail is the two-asset model with constant relative riskaversion or iso-elastic marginal utility. An explicit solution is also found for the case of constant absolute risk-aversion. The general technique employed can be used to examine a wide class of intertemporal economic problems under uncertainty. In addition to the Samuelson paper [8], there is the multi-period analysis of Tobin [9]. Phelps [6] has a model used to determine the optimal consumption rule for a multi-period example where income is partly generated by an asset with an uncertain return. Mirrless [5] has developed a continuous-time optimal consumption model of the neoclassical type with technical progress a random variable.