• Environmental and Resource Economics Review
• /
• v.18 no.1
• /
• pp.139-158
• /
• 2009

With the sample of Middle East crude oil imported to South Korea, this study empirically analyzes the effectiveness of the risk management strategies using derivatives such as futures and options. Assuming the hedging period of one to twelve months, it considers a spot purchasing strategy, 1 : 1 futures hedge strategy, OLS-based minimum-variance futures hedge strategy, buying call option strategy, and collar transaction strategy. According to the ex-ante result, using the derivatives of futures or options makes lower the procurement costs when the crude oil prices is increasing. With the hedging period less than or equal to six months, the hedging strategy using futures turns out to be superior in terms of procurement cost reduction and hedging effectiveness improvement. In contrast, the hedging strategies of buying call option and collar transaction would generate better results when the hedging program last over six months.

• Proceedings of the Korean Institute of Information and Commucation Sciences Conference
• /
• 2018.05a
• /
• pp.114-115
• /
• 2018

Recently in Bitcoin raising a social issue is sometimes called a horizontal and decentralized digital virtual currency utilizing the Blockchain technology such as a type of password currency. On the other hand, the Blockchain, which is a distributed ledger shared on P2P networks and it was first used in Bitcoin. These technologies are regarded as technologies that can be applied diversely in other fields, and are attracting high social interest. Looking at recent trends in the virtual currency market such as Bitcoin, price movements have increased since the Japanese government approved the virtual currency as a means of settlement last year. Therefore, we try to present theoretical practical suggestion through the viewpoint of the Blockchain technology which is core technology of Bitcoin based on innovative technology.

• Journal of Labour Economics
• /
• v.29 no.3
• /
• pp.49-74
• /
• 2006

Even though the foreign currency crisis in 1997 and the introduction of Inflation Targeting(IT) have been considered as key factors for current low inflation, there have been few attempts to explain what is the contribution of the dynamics of wage and price to the low inflation. This study is to analyze the relation between wage and price especially focusing on how it through the economic events using cointegration instability tests. The result shows that the short and long-run relation between two have variables have changed through the period of 1997~1999. In the first subperiod, wage tended to respond immediately to inflation shocks, whereas price responded to wage shocks in a long-run. Moreover, the cointegration coefficient of price was equal to 1. In the second subperiod, however, the dynamics from price to wage has been weakened and the real wage has declined apparently. These findings mean that the workers have failed to raise their wage at the rate of inflation, that is, the so-called wage-price spiral was broken for the second subperiod. The implication of this study is that the relatively weak bargaining power of workers, or the condition of labor market, is one of the primary factors of the current low inflation.

• KDI Journal of Economic Policy
• /
• v.34 no.1
• /
• pp.29-52
• /
• 2012

During the global financial turmoil in 2007-2008, deviation from the covered interest parity (CIP) between the Korean won and US dollar through the foreign exchange swap has escalated in its magnitude beyond 1,000bp in November 2008, and it still persists around 100bp level. In this paper, we examine a newly developed margin based asset pricing model using Kalman filter approach and show that the escalation of the CIP deviation is found to be significantly related to the global dollar funding illiquidity and country-specific funding conditions. Furthermore, we find evidence that the poor funding conditions (or higher margins) are driven by the general money market illiquidity and may lead to higher funding illiquidity, which suggests the reinforcing effects of the liquidity spiral. We also show that the supply of dollar liquidity and improved funding conditions help alleviate the deviations from the parity, however the persistent anomaly is found to be related to the high level of volatility in the FX swap market.

• Journal of Energy Engineering
• /
• v.7 no.1
• /
• pp.131-137
• /
• 1998

This paper discusses definition, concepts, approach methods, application areas, and evaluation of avoided generation costs based on the Korea's official long-term generation expansion plan. The main objective to evaluate avoided costs of resources is to supply decision makers with the breakeven costs of the resources. For the evaluation of avoided costs based on the Korea's generation system, we consider a DSM option which has 1,000MW peak savings, load factor with 70 percents, and life-time with 25 years. The DSM resource can save the fuel spending and capacity additions of a electric utility during its life time. The capacity and fuel savings are evaluated from two different cashflows with and without the DSM option, which are supplied with on the basis of the generation system optimization model (WASP-II), independently. The breakeven kWh costs of the DSM option is projected to be 31.3 [won/kWh], which is composed of generation capacity and fuel avoided costs with 15.0[won/kWh] and 16.3[won/kWh], respectively.

• Korean Journal of Veterinary Service
• /
• v.17 no.3
• /
• pp.208-226
• /
• 1994

From January to December 1993, 3,385 bulk milk samples were collected from 293 herds in Inchon area. Standard plate counts(SPC) and somatic cell counts(SCC) were performed by the method of milk collection, the situation of raising management and monthly. The results obtained are summarized as follows : 1, Annual average SPC and SCC were respectively 638,000 cfu /mm and 647,000 cells /mm. SPC showed an abrupt decrease from January-1,088,000 cfu /mm to December-279,000 cfu /mm, but SCC showed a slow change from January-1,017,000 cells /mm to December -673,000 cells /mm 2. Variation on milk quality(annual average SPC) was shown a wide difference between everyday collection-575,000 cfu /mm and every other day collection-1,243,000 cfu /mm ac-cording to frequency of milk collection from dairy farms. However, there was a little difference In SCC. 3. In the raising scale, average SPC were the lowest in 16~25mi1king cows, and average SCC were the lowest in above 25milking cows. 4. According to types of milking machine, average SPC and SCC of dairy farms that are equipped with pipeline system were respectively 361,000 cfu /mm and 591,000 cells /mm. Those of dairy farms with bucket system were 549,000 cfu /me and 559,000 cells /mm. 5. In the types of management, average SPC an SCC of dairy farms with hired herdsman were 288,000 cfu /mm and 559,000 cells /mm. Those of dairy farms with self-management were 526,000 cfu /mm and 568,000 cells /mm.

• KDI Journal of Economic Policy
• /
• v.33 no.2
• /
• pp.41-79
• /
• 2011

This study examines the compensation scheme for the executives and risk-taking behavior in the Korean banks. Theoretically, shareholders prefer risky asset choice to the optimal one due to the limited liability feature of reward, and stock-based executive compensation may induce choices favorable to the shareholder. We empirically test this risk-taking hypothesis using Korean banks' data. Since only the stock option data is available under the current disclosure system, we limit our analysis to examine the relationship between the compensation through stock option and the risk of banks. The result provides no evidence that stock option compensations increase the risk of banks, which is contrary to the theoretical prediction and preceding studies in the US. This may be due to any factor that the executive reward data omit, or regulation effects on the bank management.

• Journal of the Economic Geographical Society of Korea
• /
• v.22 no.4
• /
• pp.592-609
• /
• 2019

This study attempts to expand the leverage cycle theory using the subprime real estate investors. The leverage cycle theory has demonstrated asset price fluctuations irrelevant to changes in fundamentals through the restructuring of transaction composition centered on optimistic buyers. However, it needs to understand how this theory works in the depressed housing market with low-income residential regions to explain the geographic origins of the financial crisis. In the depressed housing market, the subprime real estate investors focused on low-income residential regions. Through this spatial focus, the low-income residential regions solely have real estate investor-oriented composition of new purchase transactions in the depressed housing market. The discovery of the subprime real estate investors as new actors lays the foundation for applying the leverage cycle theory to the depressed housing market which has been a underserved area for capital investment. This attempt illustrates how the geographical reinterpretation of an economic theory reestablishes spatio-temporal context of economic phenomena.

• The Journal of Society for e-Business Studies
• /
• v.22 no.4
• /
• pp.117-128
• /
• 2017

The increased national utilization of Bitcoin results in multiple complications. Therefore, there are continuous debates on the subject, the main point being how to characterize Bitcoin's asset nature. The following study bases, focusing on the function value, justifies Bitcoin's asset characterization. Using regression analysis to construct relations between gold and indexes such as CPI, DXY, and S&P500 as well as the relation between Bitcoin and the previously mentioned indexes, the question of whether gold and Bitcoin reacted in a similar fashion to the same indicators was examined. The results conclude that Bitcoin has similarities with gold, showing that it is risk averse and an investable commodity in lieu to profitability when it comes to inflation and currency value. When considered with price volatility, the main force behind the function of investment asset, categorizing Bitcoin as a high-risk financial investment asset rather than as a currency within the system would be more effective for management.

• Proceedings of the Korean Institute of Information and Commucation Sciences Conference
• /
• 2013.05a
• /
• pp.382-384
• /
• 2013

LED is much brighter than the traditional incandescent, and low power consumption. Development and commercialization of LED fluorescent lamp is made in order to improve efficient fluorescent lamps with this existing and environmental problems. Because, unlike fluorescent lamps, it is not possible to directly use AC power to the unidirectional element having a polarity, LED requires a power supply. The power supply function is lowered as compared with the fluorescent lamp common in terms of maintenance costs because of the high price large. In this study, we constructed a circuit that can be controlled with a constant current in order to eliminate a phenomenon that brightness of the light which rectifies the AC power supply easy to place in the power supply due to the current change due to the voltage fluctuation is changed, in maintenance, I would like to propose how to develop a device which can be easily replaced less expensive composed of interchangeable modules of Plug in / out method to distinguish the LED module this.