• Journal of Labour Economics
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• v.33 no.3
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• pp.1-23
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• 2010

Extension of mandatory retirement age (MRA) differs from other labor supply increases in that it induces a change in the incentive to save for retirement. A simple general equilibrium model indicates that extension of MRA can lead to a decrease in life-time income and social welfare as it excessively discourages domestic savings and thus capital accumulation. However, in an open economy where capital inflow allows capital input in production to remain constant despite lower domestic capital stock, extension of MRA likely increases worker welfare. In such case, extension of MRA can contribute to expansion of hiring demands through lowering wages or mitigating upward pressures on wages.

• Journal of the Korean Institute of Gas
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• v.24 no.6
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• pp.34-46
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• 2020

In order to supply stable natural gas in the future, it is necessary to forecast the demand in advance and secure the quantity of supply. In this paper, we propose a method of estimating the demand function of industrial natural gas, which is the core of the increase of domestic natural gas demand in the future. The cross-sectional data of 304 domestic industries were used to estimate the demand function of the industrial natural gas, and the effect of industry specific characteristics such as capital investment, manufacturing cost. Finally, the least absolute deviation estimation method which is robust to outliers and does not assume the homogeneity of the error term and the normality, And the results were derived. In addition, the economic value of industrial city gas was estimated using the price elasticity of industrial city gas. Therefore, it can be seen that the continuous expansion and supply of city gas to the industrial sector is beneficial at the national level, and the government needs to promote expansion through the industrial city gas support policy.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.17 no.10
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• pp.39-45
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• 2016

This study analyses the macroeconomic effects of the direct payment system (DPS) for environment-friendly agriculture in Korea. We utilized the applied general equilibrium model (AGE model) for the general agricultural sector as well as the environmentally-friendly agricultural sector. We considered several scenarios based on various direct payment amounts to measure and analyze economic impacts. Scenario 1 considers the current direct payment system. Scenario 2 examines an additional 5% increase from the direct payment amount in scenario 1. Scenario 3 reviews an increase of 10% in direct payment amount while Scenario 4 considers an additional increase of 15% compared with Scenario 1. Lastly, scenario 5 examines a 20% increase in direct payment amounts compared with scenario 1. In addition, the baseline considers conditions prior to the introduction of the direct payment system. The simulation analysis results show that capital formation, production volume, and labor productivity increased in the environment-friendly agricultural sector. In contrast, employment in the environment-friendly agricultural sector decreased. The price of environment-friendly agricultural products following the introduction of the DPS remain consistent with the price of environment-friendly agricultural product before introducing the DPS. This results from price elasticity of supply and demand are inelastic, and there is no change in the income of consumers during the analysis period. However, additional research is necessary for improvement of the model using complementary statistical data for the environmental-friendly agriculture sector.

• Korean Chemical Engineering Research
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• v.56 no.1
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• pp.6-13
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• 2018

Utilizing the heat of cooling water discharge of coal-fired power plant, pipeline investment costs for businesses that supply heat to agricultural facilities near power plants increase in proportion to installation distance. On one hand, the distance from the power plant is a factor that brings difficulties to secure economic efficiency. On the other, if the installation distance is short, there is a problem of securing the heating demands, facility houses, which causes economical efficiency to suffer. In this study, the economic efficiency of 1km length of standard heat pipeline was evaluated. The sensitivity of the heat pipe to the new length variation was analyzed at the level of government subsidy, amount of heating demand and the incremental rate of pipeline with additional government subsidy. As a result of the analysis, it was estimated that NPV 131 million won and IRR 15.73%. The sensitivity analysis showed that NPV was negative when the length of heat pipe facility exceeded 2.6 km. If the government supports 50% of the initial investment, the efficiency is secured within the estimated length of 5.3 km, and if it supports 80%, the length increases within 11.4 km. If the heat demand is reduced to less than 62% at the new length of the standard heat pipe, it is expected economic efficiency is not obtained. If the ratio of government subsidies to initial investment increases, the elasticity of the new bloc will increase, and the fixed investment, which is the cost of capital investment for one unit of heating demand, will decrease. This would result in a reduction in the cost of production per unit, and it would be possible to supply heat at a cheaper price level to the facility farming. Government subsidies will result in the increased economic availability of hot plumbing facilities and additional efficiencies due to increased demand. The greater government subsidies to initial investment, the less farms cost due to the decrease in the price per unit. The results of the study are significant in terms of the economic evaluation of the effectiveness of the government subsidy for the thermal power plant heat utilization project. The implication can be applied to any related pilot to come.