• The Korean Journal of Applied Statistics
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• v.27 no.6
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• pp.1017-1028
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• 2014

Well-known Bayes and empirical Bayes estimators have a disadvantage in respecting to overshink the parameter estimator error; therefore, a constrained Bayes estimator is suggested by matching the first two moments. Also traditional loss function such as mean square error loss function only considers the precision of estimation and to consider both precision and goodness of fit, balanced loss function is suggested. With these reasons, constrained Bayes estimators under balanced loss function is recommended for non-life insurance pricing.; however, most studies focus on the performance of estimation since Bayes risk of newly suggested estimators such as constrained Bayes and constrained empirical Bayes estimators under specific loss function is difficult to derive. This study compares the Bayes risk of several Bayes estimators under two different loss functions for estimating the risk in the auto insurance business and indicates the effectiveness of the newly suggested Bayes estimators with regards to Bayes risk perspective through auto insurance real data analysis.

• Journal of Korean Society of Transportation
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• v.32 no.4
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• pp.357-368
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• 2014

So far, land use-transportation models have been used exclusively for numerical analysis. A recent theoretical endeavor now enables us to derive the first-order derivative of the model's welfare function with respect to policy variables. I extend this methodology into the institutional setting where toll revenues are recycled through labor income tax. In this setting, the first-order derivative is composed of (1) the increase in welfare due to reduced congestion, and (2) the decrease in welfare due to interaction with the existing labor income tax. This result coincides with existing theory in the non-spatial model.

• The Korean Journal of Applied Statistics
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• v.15 no.1
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• pp.57-71
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• 2002

We introduce three types of exponential survival models, such as simple model, change-point model and finite mixture model in this paper. Among these models, in order to choose the best model, the model choice method is proposed using Gelfand and Ghosh(1998)'s idea. Then to avoid the computational difficulties, data augmentation method (Tanner and Wong, 1987) and Gibbs sampler (Gelfand and Smith, 1990) are employed. Our methodology is applied to both simulated data and Stangl (1991)'s On-impramint Hydrochloride data.

• Environmental and Resource Economics Review
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• v.21 no.1
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• pp.93-127
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• 2012

We estimate how much KEPCO can save their loss and how much social welfare can be increased by applying the real-time pricing instead of current regulated retail price in the electricity market in order to analyze the problem of the regulated retail price which is fixed below the marginal cost. We estimate the demand functions of peak time and off-peak time in summer (June to August) and winter (December to February). We construct the supply function based on hourly step-wise linear marginal cost functions, too. We find that the increase of social welfare will be 67 billion won in summer if the fixed retail price is changed into the real-time pricing scheme. The total 705 billion won will be transferred from consumer surplus to producer surplus and the rest (67 billion won) will be saved from the reduction of deadweight loss among KEPCO's loss. In winter, the increase of social surplus will be 225 billion won and 1,174 billion won of KEPCO's loss will be transferred from consumer surplus. As a result, we conclude that the regulation of the retail price in the electricity market induces the social welfare loss and KEPCO suffers a huge loss.

• The KIPS Transactions:PartC
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• v.12C no.4 s.100
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• pp.571-580
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• 2005

In fast long-distance networks, TCP's congestion control algorithm has the problem of utilizing bandwidth effectively. Several window-based congestion control protocols for high-speed and large delay networks have been proposed to solve this problem. These protocols deliberate mainly three properties : scalability, TCP-friendliness, and RTT-fairness. These protocols, however, cannot satisfy above three properties at the same time because of the trade-off among them This paper presents a new window-based congestion control algorithm, called EM (Exponential Increase/ Multiplicative Decrease), that simultaneously supports all four properties including fast convergence, which is another important constraint for fast long-distance networks; it can support scalability by increasing congestion window exponentially proportional to the time elapsed since a packet loss; it can support RTT-fairness and TCP-friendliness by considering RTT in its response function; it can support last fair-share convergence by increasing congestion window inversely proportional to the congestion window just before packet loss. We evaluate the performance of EIMD and other algorithms by extensive computer simulations.

• KDI Journal of Economic Policy
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• v.46 no.1
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• pp.91-129
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• 2024

The Bank of Korea, through a legal amendment in 2011 following the financial crisis, was entrusted with the additional responsibility of financial stability beyond its existing mandate of price stability. Since then, concerns have been raised about the prolonged increase in household debt compared to income conditions, which could constrain consumption and growth and increase the possibility of a crisis in the event of negative economic shocks. The current accumulation of financial imbalances suggests a critical period for the government and central bank to be more vigilant, ensuring it does not impede the stable flow of our financial and economic systems. This study examines the applicability of the Integrated Inflation Targeting (IIT) framework proposed by the Bank for International Settlements (BIS) for macro-financial stability in promoting long-term economic stability. Using VAR models, the study reveals a clear increase in risk appetite following interest rate cuts after the financial crisis, leading to a rise in household debt. Additionally, analyzing the central bank's conduct of monetary policy from 2000 to 2021 through DSGE models indicates that the Bank of Korea has operated with a form of IIT, considering both inflation and growth in its policy decisions, with some responsiveness to the increase in household debt. However, the estimation of a high interest rate smoothing coefficient suggests a cautious approach to interest rate adjustments. Furthermore, estimating the optimal interest rate rule to minimize the central bank's loss function reveals that a policy considering inflation, growth, and being mindful of household credit conditions is superior. It suggests that the policy of actively adjusting the benchmark interest rate in response to changes in economic conditions and being attentive to household credit situations when household debt is increasing rapidly compared to income conditions has been analyzed as a desirable policy approach. Based on these findings, we conclude that the integrated inflation targeting framework proposed by the BIS could be considered as an alternative policy system that supports the stable growth of the economy in the medium to long term.