• Environmental and Resource Economics Review
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• v.15 no.4
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• pp.673-692
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• 2006

In order to test for the dynamic optimality condition for the use of nonrenewable resource, it is necessary to estimate the shadow value of the resource in situ. In the previous literatures, a time series for in situ price has been derived either as the difference between marginal revenue and marginal cost or by differentiating with respect to the quantity of ore extracted the restricted cost function in which the quantity of ore is quasi-fixed. However, not only inconsistent estimates are likely to be generated due to the nonmalleability of capital, but the estimate of marginal revenue will be affected by market power. Since firms will likely fail to minimize the cost of the reproducible inputs subject to market prices under realistic circumstances where imperfect factor markets, strikes, or government regulations are present, the shadow in situ values obtained by estimating the restricted cost function can be biased. This paper provides a valid methodology for checking the dynamic optimality condition for a nonrenewable resource by using the input distance function. Our methodology has some advantages over previous ones: only data on quantities of inputs and outputs are required; nor is the maintained hypothesis of cost minimization required; adoption of linear programming enables us to circumvent autocorrelated errors problem caused by use of time series or panel data. The dynamic optimality condition for domestic coal mining does not hold for constant discount rates ranging from 2 to 20 percent over the period 1970~1993. The dynamic optimality condition also does not hold for variable rates ranging from fourth to four times the real interest rate.

• Journal of Korea Technology Innovation Society
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• v.5 no.1
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• pp.59-71
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• 2002

Risk, or exposure to uncertainty, is an inherent of risk-adjusted discount rate. It is therefore important part factor in the determination of risk-adjusted discount rate. This paper suggests the method to quantify risk and explains the process how to transfer quantified risk into incremental discount rate. The estimates of underlying risks will help determine the size of appropriate risk-adjusted discount rate with logical and scientific way when the technology valuation is made.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2000.04a
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• pp.82-84
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• 2000

통화시간에 대한 할인율 적용 혹은 짧은 통화에 요금을 부과하지 않은 정책 등 마케팅활동의 효과분석 및 마케팅전략을 수립하는데 있어서 통화시간 분석은 매우 중요하다. 기존연구들은 설명변수의 도입이 편리한 비례위험함수(proportional hazard function) 을 활용해 왔다. 그러나 이 방법은 추정이 용이하지 않다는 약점을 갖고 있다. 특히 통화행태를 설명하기위해 다양한 설명변수를 도입하는 경우, 기존에 상용화된 통계패키지로 추정하는데 한계점을 갖고 있다. 본 연구에서는 추정의 용이성에 초점을 맞추어, 실무자들이 손쉽게 통화시간에 대한 마케팅 노력의 효과를 분석할 수 있는 분석방법론을 제시하고, 제시된 분석방법을 이용하여 판촉활동 (요금할인)이 통화대기시간과 통화시간에 미치는 영향을 실증분석 하고 있다.

• Journal of the Korean Association of Geographic Information Studies
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• v.6 no.4
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• pp.1-15
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• 2003

Recently, urban information system(UIS) has been developed and utilized by local governments in Korea and has become a key means of urban informatization of local governments. When UIS is conducted only for FM oriented internal utilization regardless of its cost-efficiency, however, its cost-benefit structure could be distorted seriously. The study utilizes benefit cost analysis technique and applied the technique to a model case of Chungju UIS selected by National GIS team. Chungju City developed its GIS for the management of roads and urban planning in 1993. At its beginning, the system was an efficient model with relatively strong cost-benefit structure and could produce positive net benefit 10 years' after its construction. When the city began to develop its facility management with the financial assistance from central government in 1998, however, its cost-benefit structure became distorted. As a result, it is delayed for the UIS to produce positive net benefit until the year of 2015. Using benefit cost ratio, discount rate and Mobile GIS, the study also conducts a sensitivity analysis.

• Environmental and Resource Economics Review
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• v.12 no.4
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• pp.663-686
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• 2003

This study is aimed at analyzing the effectiveness of TAC policy using a bioeconomic model. A surplus-production model is used as a population dynamic model, from which the yellowedge grouper is estimated to be overfished. As a result, a 10-year rebuilding plan using the TAC policy is established. According to the result of model, under the well-enforced system, the target stock biomass is achieved during the rebuilding period. Especially, in order to accomplish the target stock biomass, the annual quota should be allocated much less than 342 tons that NMFS recommended. The NPV over a 25-year under the TAC policy Is predicted to be less than under the status quo. The economic gains under the variable-catch TAC policy is less than under the constant-catch TAC policy as the interest rate decreases, while the NPV under the constant-catch is greater than under the variable-catch TAC policy when the interest rate is high.

• Economic and Environmental Geology
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• v.46 no.3
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• pp.247-256
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• 2013

In order to improve the quality assurance of the disaster mitigation projects, the economic effect of these projects in the hazardous areas was analysed. Eight project sites were selected for analyses based on the disaster data during the previous 10 years, and the investment effect was evaluated using a benefit cost ratio (B/C). The benefit was estimated using the historical disaster data and presumed to continue for 30 years, while the cost was assumed with the total project cost. Analysis results indicate the B/C ratio is larger than 1 in the difference range, depending on factors such as impact areas and discount rates. According to the analysis results, the average B/C of the eight projects is 4.1 with assuming the discount rate of 4% and the impact diameter of 5 km, which implies that a disaster management project in hazardous areas will give the positive investment effects.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.15 no.11
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• pp.6652-6658
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• 2014

This study evaluated the economic value of the development of an environment-friendly controlling method of mushroom using IRR and NPV. The environment-friendly controlling method of mushrooms was developed by the national institute of horticultural and herbal science in Korea rural development administration. This technology can be used to improve the efficiency and practicality of cultivation of mushroom. The research results show that the technological value of the development of an environment-friendly controlling method of mushroom was evaluated at 135.4 billion won (average), 182.6 billion won (maximum), and 88.1 billion won (minimum) based on the discount rate of 7.3%. The IRR was 1,958.5% - 4,054.4%, which was greater than the discount rate (6%~10%). The NPV was evaluated at 134.8 billion won (average), 218.1 billion won (maximum) and 87.5 billion won (minimum) based on the discount rate of 7.3%. Therefore, the economic validity of the development of an environment-friendly controlling method of mushrooms was identified by the results of a technology evaluation.

• Journal of Radiation Protection and Research
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• v.27 no.2
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• pp.77-80
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• 2002

A more practice approach for the determination of monetary values of the unit collective dose for intervention against long-term exposure following a nuclear accident was proposed. In addition, she monetary values of the unit collective dose estimated from the proposed approach were compared with those estimated from the previous model, which are derived from assumptions of routine exposure and the same values are applied in a nuclear accident without modification, using Korean economic data. The monetary values based on the proposed approach showed a distinct difference depending on inequity in the distribution of individual doses. The discounting rate was also an important factor in determination of monetary values of the unit collective dose.

• Korean Journal of Social Welfare
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• v.57 no.2
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• pp.297-320
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• 2005

This study was attempted to give aids in making 'the Disability Discrimination Act' by estimating the potential Cost-Benefit in case that the discrimination on the disabled is removed. The potential benefits from this Disability Discrimination Act are calculated considering the income increase of the people with disabilities from additional employment for them and the decrease of employment levies and the public assistance benefits. The potential cost was made focusing on the following 2 expenses- the extra expenditures that the owners of companies had to invest from the employment of the disabled and the managing expenses for correcting discrimination organizations. As the result of this estimation, the potential net present value under the 7% discount rate is very high as 12,700,301 million won and the cost-benefit ratio is also great as 96.8. The consequence of the sensitive analysis in changing the discount rate also does not have great changes. As the result of these estimating results, it is known that when the discrimination is solved by the 'Disability Discrimination Act', the pure benefit of our society will become tremendous. After all, it could be said that the need for 'the Disability Discrimination Act' is emphasized and should be emphasized.

• Journal of Navigation and Port Research
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• v.26 no.4
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• pp.383-390
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• 2002

The time cost of ship end cargoes is one of the most important data for decision-making of port investment and operational efficiency. Studies in this area were initiated internationally by Goss and Mann in late 70's and also done in Korea 10 years ago using the same methodology as Goss. The main purpose of this paper is to revisit to estimate the time cost using updated data. The estimation was undertaken sampling data on various investment and operating costs by vessel from 205 vessels, comprising 47.5％ of the notional fleet in Korea as well as on cargoes from international trade statistics. Compared with the study of 10 years ago, major finding of this research is that time costs of liquid and dry bulk carriers have increased, in case of the former type, showing almost doubled cost increase. The increase is deemed to be caused by very expensive LNG carriers. Lowered social discount rate in this study compared with 10 years ago, in general, has mused the costs to stay at similar level to the previous study. Sensitivity tests were conducted using various social discount rates.