Output Restriction Research Articles

Biological parameters of fish stock estimation in Cirata Reservoir (West Java, Indonesia): A comparative analysis of bio-economic models

Anna Z, Handaka AA, Maulina I, Rizal A, Hindayani P. 2017. Biological parameters of fish stock estimation in Cirata Reservoir (West Java, Indonesia): A comparative analysis of bio-economic models. Biodiversitas 18: 1468-1474. Fish resources in reservoirs such as Cirata have a strategic value, especially for the surrounding community in terms of fulfilling the need for nutricious food, subsistence, and economic purposes. Unfortunately, until now there has been no serious attention from the government to develop and manage fish resources in these waters. From time series data it can be seen that there is a decrease in fish production, which is an indication of a decrease of fish stock, which has a negative impact on the wellfare of surrounding commmunity, as well as the sustainability of fish resources and their ecosystems. To meet the food safety and economic needs of the community, a healthy and sustainable fish resource is a must, characterized by sustainable inputs and outputs, so that the stock of fish resources will be maintained. In order to fulfill this need, a basic understanding of the biological and economic conditions of the dynamics of fish resources in these waters as a basis for sustainable management is needed. Research was conducted to calculate the biological parameters of fish resources through Fox, CYP, Walters Hilborn and Schnute algorithms, using quarterly catch and effort data from 2011 to 2015, collected from secondary and cross checking data. Furthermore, using price and cost data series, adjusted by consumer price index, the variable of input, output and economic rent of sustainable, optimal and open access management regimes were analyzed. The results of the study indicate that the most statistically appropriate model for estimating biological parameters in Cirata are the Fox and CYP models, and fisheries management using the optimal regime provides the most efficient results, where fewer inputs will result in the maximum profit. The research suggests the need for immediate enforcement of management rules based on sustainable management regimes through input or output restrictions on capture fisheries in Cirata Reservoirs.

Environmental regulatory stringency and the market for abatement goods and services in China

We provide an examination of the linkage between environmental regulation stringency and the demand for and supply of abatement goods and services. To that end we construct a five-equation simultaneous model that links environmental regulation stringency to abatement output through various underlying simultaneous mechanisms. This system is then estimated using a panel of 679 eco-firms in 78 industrial Chinese cities during the implementation period of collection and use of pollution discharge fees (promulgated by the Chinese State Council) from 2003 to 2007. We find that higher fees are generally associated with higher abatement supply but for some industries – notably wastewater treatment – there is evidence of ‘output restriction’, meaning that higher charges lead to a reduction in supply for established firms.

Paying Medicare Advantage plans: To level or tilt the playing field

Medicare beneficiaries are eligible for health insurance through the public option of traditional Medicare (TM) or may join a private Medicare Advantage (MA) plan. Both are highly subsidized but in different ways. Medicare pays for most of costs directly in TM, and subsidizes MA plans based on a “benchmark” for each beneficiary choosing a private plan. The level of this benchmark is arguably the most important policy decision Medicare makes about the MA program. Many analysts recommend equalizing Medicare’s subsidy across the options – referred to in policy circles as a “level playing field.” This paper studies the normative question of how to set the level of the benchmark, applying the versatile model developed by Einav and Finkelstein (EF) to Medicare. The EF framework implies unequal subsidies to counteract risk selection across plan types. We also study other reasons to tilt the field: the relative efficiency of MA vs. TM, market power of MA plans, and institutional features of the way Medicare determines subsidies and premiums. After review of the empirical and policy literature, we conclude that in areas where the MA market is competitive, the benchmark should be set below average costs in TM, but in areas characterized by imperfect competition in MA, it should be raised in order to offset output (enrollment) restrictions by plans with market power. We also recommend specific modifications of Medicare rules to make demand for MA more price elastic.

Measuring the Capacity Utilization of Public District Hospitals in Tunisia: Using Dual Data Envelopment Analysis Approach.

Background: Public district hospitals (PDHs) in Tunisia are not operating at full plant capacity and underutilize their operating budget. Methods: Individual PDHs capacity utilization (CU) is measured for 2000 and 2010 using dual data envelopment analysis (DEA) approach with shadow prices input and output restrictions. The CU is estimated for 101 of 105 PDH in 2000 and 94 of 105 PDH in 2010. Results: In average, unused capacity is estimated at 18% in 2010 vs. 13% in 2000. Of PDHs 26% underutilize their operating budget in 2010 vs. 21% in 2000. Conclusion: Inadequate supply, health quality and the lack of operating budget should be tackled to reduce unmet user’s needs and the bypassing of the PDHs and, thus to increase their CU. Social health insurance should be turned into a direct purchaser of curative and preventive care for the PDHs.

Truthful multi-unit multi-attribute double auctions for perishable supply chain trading

This paper aims to propose multi-attribute double auctions for perishable supply chain trading (PSCT). We first construct a multi-unit/single-unit multi-attribute double auction (MS-MDA) for PSCT where suppliers can submit bids on a single unit of one item (i.e., single output restriction). We then relax the single output restriction and propose a multi-unit multi-attribute double auction (M-MDA) for PSCT in which each supplier offers multiple units of one item. Both the MS-MDA and M-MDA mechanisms are incentive compatible, individually rational, budget balanced and computationally efficient. The computational study shows that all proposed mechanisms are of high allocation efficiency and practically implementable.

Long-run restrictions and survey forecasts of output, consumption and investment

We consider the extent to which long-horizon survey forecasts of consumption, investment and output growth are consistent with theory-based steady-state values, and whether imposing these restrictions on long-horizon forecasts will enhance their accuracy. The restrictions that we impose are consistent with a two-sector model in which the variables grow at different rates in steady state. The restrictions are imposed by an exponential-tilting of simple auxiliary forecast densities. We show that imposing the consumption–output restriction yields modest improvements in the long-horizon output growth forecasts, and larger improvements in the forecasts of the cointegrating combination of consumption and output: the transformation of the data on which accuracy is assessed plays an important role.

Simulation and analysis of a stand-alone solar-wind and pumped-storage hydropower plant

This work presents the simulation and evaluation of a renewable hybrid power plant for off-grid fully autonomous operation on an intermediate-sized island in the Aegean Sea. A stand-alone energy system including storage facilities is simulated, optimized and analyzed relying on real-case weather and demand data of a relatively large remote community. Optimization of the power plant structure shows that to ensure continuous off-grid energy generation, even under extreme conditions, the combination of more than one renewable technology is required. The hybrid power plant consists of a pumped-storage hydropower plant, photovoltaic cells and wind turbines. Energy surplus of the power plant is used in the incorporated electrolyzer to generate a secondary product, hydrogen. Robust operation of the plant results in 48% of the energy generated stemming from the photovoltaic system and 52% from the wind turbines. The pumped-storage hydropower plant has a mean annual power output of 1.0 MW. The total mean annual efficiency of the hybrid plant is found to be 14.4%. Although stand-alone operation was achieved with the proposed plant, this requirement led to net energy output restrictions, capacity oversizing and large storage facilities.

Testing for the Ratchet Effect: Evidence from a Real-Effort Work Task

The refers to a phenomenon where workers whose compensation is based on productivity strategically restrict their output, relative to their capability, because they rationally anticipate that high levels of output will be met with increased or ratcheted-up expectations in the future. While there is ample anecdotal evidence suggesting the presence of the ratchet effect in real workplaces, it is difficult to actually empirically identify output restriction among workers. In this study, we implement a novel experimental design using a real-effort work task and a piece-rate incentive scheme to directly test for the presence of the ratchet effect using two different methods for evaluating productivity: (i) when productivity is evaluated based on the output of each individual worker, and (ii) when productivity is evaluated collectively based on the output of a group of workers. We find strong evidence of the ratchet effect when productivity is evaluated at the individual-level. However, we find very little evidence of the ratchet effect when productivity is evaluated collectively at the group-level. We attribute the latter result to the free-riding incentive that emerges when productivity is evaluated at the group-level. Furthermore, we find the ratchet effect re-emerges if workers are able to communicate. Our experimental design, combined with using a real-effort work task, also allows us to shed light on an important dynamic implication of the ratchet effect that has not yet been examined in the literature – the role of the ratchet effect on future productivity via learning-by-doing.

Performance Target Revisions in Incentive Contracts: Do Information and Trust Reduce Ratcheting and the Ratchet Effect?

ABSTRACT In this study, we examine a setting where principals use past performance to annually revise performance targets, but do not fully incorporate the past performance information in their target revisions. We argue that this situation is driven by some principals and agents having an implicit agreement where the principal “allows” the agent to receive economic rents from positive performance-target deviations that are the result of superior effort or transitory gains by not revising targets upward, while the agent “accepts” target revisions by not restricting output when these revisions are the result of structural changes in the operation's true economic capacity. Although both the principal and the agent can benefit from an implicit agreement, we argue that for the implicit agreement to be maintainable, the principal either needs information on the cause of the performance-target deviation or there needs to be trust between the principal and the agent. Using archival data across multiple years and independent bank units, we find a pattern of ratchet attenuation and output restriction that is consistent with the existence of implicit agreements for those principal-agent dyads where information asymmetry is sufficiently reduced or mutual trust exists. Data Availability: Data used in this study cannot be made public due to a confidentiality agreement with the participating firm.

IMPLEMENTATION OF PREDICTIVE MULTIVARIABLE DMC CONTROLLER IN A PILOT PLANT

This study aims to implement the predictive multivariable DMC controller in a real plant and compare it to multi-loop PID. The practical application is made in a pilot plant located in the IFES / Serra, where pressure and level are controlled with pump speed and valve opening. Tuning of the DMC controller is obtained through a simulator based on genetic algorithm. The plant responses to step using multi-loop PID and DMC are compared with and without constraints on valve opening and pump speed. The DMC controller is also tested with output restriction (pressure and level). The didactic interface developed with LabVIEW software is used to interact with MATLAB and CompactRIO controller, allowing the use of MATLAB optimization functions in the implementation of the DMC controller.

Adaptive neural control of nonlinear MIMO systems with time-varying output constraints.

In this paper, adaptive neural control is investigated for a class of unknown multiple-input multiple-output nonlinear systems with time-varying asymmetric output constraints. To ensure constraint satisfaction, we employ a system transformation technique to transform the original constrained (in the sense of the output restrictions) system into an equivalent unconstrained one, whose stability is sufficient to solve the output constraint problem. It is shown that output tracking is achieved without violation of the output constraint. More specifically, we can shape the system performance arbitrarily on transient and steady-state stages with the output evolving in predefined time-varying boundaries all the time. A single neural network, whose weights are tuned online, is used in our design to approximate the unknown functions in the system dynamics, while the singularity problem of the control coefficient matrix is avoided without assumption on the prior knowledge of control input's bound. All the signals in the closed-loop system are proved to be semiglobally uniformly ultimately bounded via Lyapunov synthesis. Finally, the merits of the proposed controller are verified in the simulation environment.

Positive Effect of PV's Constant Leading Power-Factor Operation in Power System

Overvoltage problem due to highly penetrated photovoltaic power generation (PV) has been regarded as the foremost concern in distribution network. To find an economical solution for the problem, the authors focus in the inherent ability of present distribution network and PV, and examine whether PV's Constant Leading Power-Factor Operation can mitigate the overvoltage problem enough or not. Simulation based on accurate distribution system model, which is aggregated from many loads/PV using Y-connection aggregation method, has revealed that combination of PV's Constant Leading Power-Factor Operation and distribution transformer's Line voltage Drop Compensator (LDC) has important positive effects for solving the problem. Distribution system voltage is kept within the statutory voltage. Frequency of PV output restriction due to overvoltage is reduced. Frequency of tap change on on-Load Tap Changer (LTC) and Step Voltage Regulator (SVR) is also reduced. In addition, no negative effects are recognized in trunk power system.

Tree parsing for tree-adjoining machine translation

Tree parsing is an important problem in statistical machine translation. In this context, one is given (a) a synchronous grammar that describes the translation from one language into another and (b) a recognizable set of trees; the aim is to construct a finite representation of the set of those derivations that derive elements from the given set, either on the source side (input restriction) or on the target side (output restriction). In tree-adjoining machine translation the grammar is a kind of synchronous tree-adjoining grammar. For this case, only partial solutions to the tree parsing problem have been described, some being restricted to the unweighted case, some to the monolingual case. We introduce a class of synchronous tree-adjoining grammars which is effectively closed under input and output restrictions to weighted regular tree languages, i.e. the restricted translations can again be represented by grammars in the same class; this enables, e.g. cascading restrictions. Moreover, we present an algorithm that constructs these grammars for input and output restriction.

Economic Rationalities of Governance and Ambiguity in the Criminalization of Cartels

In July 2009, Australia introduced criminal offences and jail for collusive conduct (price fixing, output restriction, market allocation and bid rigging) in markets. The substance of the justification for criminalization of cartel conduct is 'blindly' economic. It does not spring from a sense of moral or political outrage at collusion in the market. Rather, it is justified on the basis of effective regulatory technique, the need to deter economically harmful behaviour. This paper examines the rationality of anti-cartel law from the point of view of the 'legal consciousness' of 25 business people who have faced enforcement action for cartel conduct. Their justifications for their own behaviour in light of the law tell us about how they believe the law can be legitimated. This is compared with policy and scholarly rationales for criminal anti-cartel law. The paper finds that, among business people who have been made subject to the anti-cartel law, there are similar differences and ambiguities about the rationale for criminal anti-cartel law, and the very meaning of acting economically, as there are among scholars and policy elites. This pinpoints one place of instability in the legitimacy of economic rationalities of regulation and governance in action. © 2012 The Author.

Field-of-use restrictions in licensing agreements

A widely used clause in license contracts – the field-of-use restriction (FOUR) – precludes licensees from operating outside of the technical field specified. When a technology has several distinct applications, FOUR allow the licensor to divide up his rights and attribute them to the lowest-cost producer in each field of use. This can improve production efficiency. With complex technologies, however, the boundaries of fields of use may be difficult to codify, entailing a risk of licensees' rights overlapping. We explore how this affects the optimal license contract in a moral hazard framework where the licensor's effort determines the probability of overlap. We show that depending on the contracting environment, the license agreement may include output restrictions and non‐linear royalty schemes.

The Precarious State of the Liver After a Fontan Operation: Summary of a Multidisciplinary Symposium

As the cohort of survivors with the single-ventricle type of congenital heart disease grows, it becomes increasingly evident that the state of chronically elevated venous pressure and decreased cardiac output inherent in the Fontan circulation provides the substrate for a progressive decline in functional status. One organ at great risk is the liver. Wedged between two capillary beds, with the pulmonary venous bed downstream, which typically has no pulsatile energy added in the absence of a functional right ventricle, and the splanchnic bed upstream, which may have compromised inflow due to inherent cardiac output restriction characteristic of the Fontan circulation, the liver exists in a precarious state. This review summarizes a consensus view achieved at a multidisciplinary symposium held at The Children’s Hospital of Philadelphia in June 2011. The discussion includes current knowledge concerning the hemodynamic foundations of liver problems, the diagnostic tools available, the unique histopathology of the liver after the Fontan operation, and proposed mechanisms for hepatic fibrosis at the cellular level. At the completion of the symposium, a consensus recommendation was made by the authors’ group to pursue a new prospective protocol for clinical evaluation of the liver for all patients in our practice 10 years after the Fontan operation.

Optimal Policy Combinations of Abatement Subsidy and Pollution Tax in Vertical Oligopolies

This article investigates environmental regulations on eco-industry in vertical oligopolies, in which the upstream industry produces abatement goods reducing pollutants and the downstream industry produces consumption goods emitting pollutants. We devise the optimal combination of appropriate policy instruments and show that an optimal pollution tax should be used for the negative externality and output restrictions in final production, and an optimal abatement subsidy should incorporate the effect of upstream market restrictions on abatement activity. We also examine the welfare effect of the subsidy policy on the abatement technology in tax/subsidy combination.

Airline Mergers at a Crossroads: Southwest Airlines and Airtran Airways

The proposed merger of Southwest/AirTran could meet with relatively little antitrust enforcement resistance based on the Department of Justice’s (DOJ) public statements in recent airline mergers. For example, claimed efficiencies are likely to get significant weight. Moreover, concerns over eliminating competition on Southwest/AirTran overlap routes could be mitigated because the number of routes is relatively small, there is rivalry (from low-cost carriers (LCCs) and legacies) on some of those routes, and entry may be relatively easy at some affected airports.However, the proposed merger of Southwest and AirTran – the first major merger of LCCs – raises novel issues that may not be captured by analysis that focuses mainly on overlaps between the merging partners in city-pair or airport-pair markets. These novel issues include how the merger could potentially result in: (1) a transition from a point-to- point/hybrid system to a hub-and-spoke network model; (2) changes in the two LCCs’ price discounting strategies; (3) changes in entry or expansion patterns in new and existing markets; and (4) changes in short-term output and/or longer-term capacity decisions. These questions deserve attention in an antitrust review of the proposed merger.For example, combining the Southwest and AirTran systems may stretch the limits of Southwest’s model, pushing the merged company away from a point-to-point or hybrid system and more toward a hub-and-spoke model. If so, then the combined company may be less able to inject the competitive discipline through lower fares, more choice, and entry and expansion than each LCC alone has brought to the industry. With the ranks of the LCCs reduced through a Southwest/AirTran merger, it is also important to consider how effective the rivalry offered by the remaining LCCs will be.Eliminating AirTran also means removing from the market the second largest LCC (based on its presence as a low fare carrier on top routes) and the source of some of the most aggressive price discounting and market entry. Combining the maverick-like AirTran with Southwest could change incentives for the merged company to discount. And because Southwest and AirTran, as LCCs, are closer competitors to each other than to the legacy airlines, potential post-merger price increases (or smaller discounts) may not be captured by standard market share and concentration analysis.Finally, post-merger output restrictions and/or capacity reductions are demonstrated effects of airline mergers that have been largely overlooked in antitrust reviews. Not only do they raise fares, but they reduce choice for consumers. Well-publicized cutbacks at Cincinnati after Delta/Northwest and conditions imposed on United/Continental at Cleveland by the state of Ohio indicate the gravity of these effects. Mergers of LCCs should be no exception to an examination of the potential for post-merger output and capacity reductions. This is particularly true if the merger eliminates competition on routes/airports and the carriers are adept at managing capacity – as is the case in Southwest/AirTran.This White Paper by the American Antitrust Institute (AAI) is the first of what is intended to be a series by the AAI on competition in the U.S. airline industry. It is based on publicly available information – no confidential information was provided to the AAI in the course of preparing this analysis. While we do not make a recommendation as to the legality of the proposed Southwest/Air Tran merger, the paper raises important questions that deserve investigation before a decision is made.

Is All Cartel Activity Evil?*

The new Australian cartel laws prohibit a provision of a contract, arrangement or understanding that inter alia, results in price fixing and output restriction between competitors in the relevant market. This is subject to a recognition that sometimes such conduct can be in the public interest, in which case the Australian Competition and Consumer Commission (ACCC) may grant an authorisation. One such instance may be an activity characterised by substantial externalised cost. An authorisation application would need to provide suitable evidence in support of the underlying case being argued. Traditionally in Australia, such evidence has been qualitative in nature; however, where possible, the ACCC and its counterparts in the EU and New Zealand encourage quantitative estimates. This is a case study of the welfare impact of output restrictions in the Australian beer industry, which is a source of substantial negative externalities. A standard simulation exercise is utilised as an example of how applicants and the competition regulator might combine theoretical and quantitative concepts to better achieve the objectives of the new legislation.

The Aggregate Productivity Effects of Entry and Output Restrictions: An Analysis of License Reform in India

How do restrictions on entry and output affect aggregate productivity? I propose and implement a simple methodology that empirically identifies their separate effects on aggregate TFP and apply it to an analysis of the policy of industrial licensing in India. The licensing policy was notably reformed in the mid-1980s, and I take advantage of this policy experiment to identify the effects of the licensing regime. Using plant-level data covering this period, I find that the reform resulted in an aggregate TFP improvement of nearly 28% in the deregulated sector, and that the reductions in entry and output restrictions stemming from the reform contributed almost equally to this TFP gain.