• East Asian Economic Review
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• v.23 no.3
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• pp.227-260
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• 2019

This paper offers a comprehensive view of international risk sharing and of related policy issues from the perspective of the European Union. The traditional analyses contemplate three risk-sharing channels: the capital markets channel (through cross border portfolio investments), international transfers and the credit markets channel (via savings). Comparative analyses reveal that, on average, about 80% of the shock remains unsmoothed in Europe while only about 18% of the shock is transmitted to consumers within the US. From aggregated figures, there is space for improving, particularly, the cross-border investments channel in Europe. In this sense, the completion of the Banking and Capital Markets Union are expected to boost risk sharing across European member states. We also review new additional issues usually not contemplated by the traditional literature as depreciation, migration and the role of sovereigns and two new additional channels recently considered in the literature: government consumption and the real exchange rate. Finally, we also examine recent analysis related to the geographic distribution of risk sharing.

• Journal of Digital Convergence
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• v.10 no.8
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• pp.91-96
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• 2012

The purpose of this study is to examine the rationality for public organizations' cost allocation method through the case of special post offices. The proper use of allocation method is crucial to promote and nurture the public organization sector. On that note, this paper presents how to apply the proper estimation method. The cost allocation method is to split the total expense into appropriate services and departments. Using the basic expense rate and the standard depreciation rate and area at each post office, the total cost is calculated into the cost per person and area. As a result, the correct cost can be assigned through allocation per according service unit.

• Asian Journal of Business Environment
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• v.9 no.3
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• pp.5-9
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• 2019

Purpose - This paper examines whether fiscal and monetary expansion would affect output in Australia. Research design, data, and methodology - An extended IS-LM model which describes the equilibrium in the goods market and the money market is applied. The real effective exchange rate and the real stock price are included in order to determine whether there may be any substitution or wealth effect. The sample consists of Annual data ranging from 1990 to 2018. The GARCH process is used in empirical work to correct for potential autoregressive conditional heteroscedasticity. Results - Expansionary fiscal policy reduces output; whereas, expansionary monetary policy raises output. In addition, real appreciation of the Australian dollar, a lower U.S. interest rate, a higher real stock price or a lower expected inflation would increase output. The finding that expansionary fiscal policy has a negative impact on real GDP suggests that the negative crowding-out effect on private spending dominates the positive impact. Conclusions - Fiscal prudence needs to be pursued. Real depreciation of the Australian dollar hurts output. Monetary tightening in the U.S. generates a negative effect on Australia's output. A healthy stock market is conducive to economic growth as higher stock prices tend to result in the wealth and other positive effects, increasing consumption and business spending.

• The Journal of the Korea Contents Association
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• v.9 no.3
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• pp.49-57
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• 2009

This paper has proposed Flow Holding Time based Link State Update(LSU) Algorithm that can improve the performance of the existing LSU algorithms. As the existing LSU algorithms are based on the network traffic information, the proposed algorithm is based on flow holding time so we can minimize the LSU message overhead and has not had a strong influence on the depreciation of QoS routing performance. We apply a flow holding time in order to decrease the number of LSU message. We have evaluated the performance of the proposed model and the existing algorithms on MCI simulation network using the performance metric as the QoS routing blocking rate and the mean update rate per link, it thus appears that we have verified the performance of this algorithm.

• Journal of the Korea Society of Computer and Information
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• v.14 no.5
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• pp.133-139
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• 2009

This paper has proposed Flow Holding Time based Link State Update(LSU) Algorithm that has minimized the LSU message overhead in QoS routing and has not had a strong influence on the depreciation of QoS routing performance. We apply a flow holding time in order to decrease the number of LSU message. We have evaluated the performance of the proposed model and the existing algorithms on MCI simulation network using the performance metric as the QoS routing blocking rate and the mean update rate per link, it thus appears that we have verified the performance of this algorithm.

• Journal of the Korea Convergence Society
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• v.8 no.10
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• pp.231-238
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• 2017

In this study, we selected interest rates and won/dollar, won/yen, won/yuan to find out the indicators affecting domestic exports in the age of convergence. Correlation, regression analysis, indicator analysis and model analysis were performed for 210 months since January 2000. As a result, the correlation between exports and won/dollar, won/yuan, won/yen was negative(-). Therefore the directions were different from each other. In regression analysis, only interest rate and won/dollar were statistically significant for export. In the coefficient, interest rate calculated positive(+) and won/dollar was negative(-). It is interpreted that the won/dollar depreciation positively affects export growth. In this study if the won/dollar exchange rate falls, exports will increase. This is different from previous studies. Therefore, it is necessary to review the posterior relationship by time difference. Korea is highly dependent on exports. Therefore, the study on the indicators affecting exports to increase exports should continue.

• Journal of Korea Trade
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• v.25 no.1
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• pp.34-46
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• 2021

Purpose - This paper aims to analyze the impact of the terms of trade, export price, and import price on the Korean economy (that is, real GDP, CPI, money market rate, and real effective exchange rate), and vice versa in the simple vector autoregression. Design/methodology - We impose two assumptions, i.e., diagonality and bloc exogeneity, to correctly identify the impact of a factor to the others in the structural equation. With two contemporaneous assumptions in the structural VAR, this paper investigates the impacts of the terms of trade on the Korean economy and vice versa. Findings - Impulse responses to the shocks in the terms of trade and Korean economy show that 1) an impact of the terms of trade on the economy is different in export prices and in import prices. A higher export price is beneficial to the economy while a higher import price hurts the economy, and 2) an increase in real effective exchange rate and in interest rate constrains domestic production and lowers consumer prices. Originality/value - Unlike the conventional perception that a depreciation of a currency would promote exports and domestic production at the price of inflation, our result shows the opposite, and 3) real GDP and consumer prices are positively correlated. That is, an increase in real GDP does not only cause inflation, but an increase in consumer prices also promote domestic production. Yet, the only difference is that export prices and import prices end up higher with an increase in real GDP, but lower with inflation.

• The Journal of the Korea Contents Association
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• v.20 no.3
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• pp.245-253
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• 2020

If the conversion rate of jeonse price to monthly rent is the market interest rate or the landlord's expected return, then the conversion rate of jeonse price to monthly rent in the country should be the same. However, the conversion rate of jeonse price to monthly rent has always been higher than the market interest rate. This study identifies the supply cost components of rental housing as a risk premium in the presence of current housing prices, market interest rates, depreciation costs, holding taxes, and leases, and identifies the relationship between the current housing prices and each factor. Housing rent is expressed as the current price. This overcomes the shortcomings that implicitly assume fluctuations in housing prices or do not include current housing prices in the conversion rate of jeonse price to monthly rent. This study found that the conversion rate of jeonse price to monthly rent is the required rate of return or required rate of renter, not market interest rate, by expressing the supply cost of rental housing as a combination of components. This not only explained the fact that the conversion rate of jeonse price to monthly rent was always higher than the market interest rate, but also explained the regional differences. It also explained why the conversion rate of jeonse price to monthly rent varies by type of housing.

• The Journal of Industrial Distribution & Business
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• v.10 no.2
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• pp.65-75
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• 2019

Purpose - Along with Chinese exchange rate's reform advancement, the issue of exchange rate of RMB has increasingly become the heated focus in the world. In July 2005, China carried out the reform of the exchange rate system, and this behavior has aroused the attention of the world. However, the dispute on whether the theory of purchasing power parity holds or not in China still exists. As such, this paper will attempt to explore whether the purchasing power parity is significant in China. Research design, data, and methodology - The monthly data from July 2005 to December 2017 will be employed to analyze the nominal exchange rate of RMB against the US dollar and the nominal exchange rate of RMB against the euro. Based on these datum, an empirical analysis will be conducted under the unit root test and the cointegration test to exploit the significance of purchasing power parity in China. Results - The findings of this paper reveal that an increase in China's consumer price index will lead to an increase in the RMB exchange rate, which will lead to the depreciation of RMB. Concomitantly, an increase in the consumer price index in the US and Europe will result in a decrease in the RMB exchange rate, which will lead to an appreciation of RMB. In general, in terms of the US, if US consumer price index increases by 1%, China's nominal exchange rate against US dollar will decrease by 0.905%; if China's consumer price index increases by 1%, China's nominal exchange rate against US dollar will increase by 0.648%. In terms of Europe, if Europe consumer price index increases by 1%, China's nominal exchange rate against euro will decrease by 0.277%; If China's consumer price index increases by 1%, China's nominal exchange rate against euro will increase by 0.235%. Conclusions - Generally speaking, the empirical evidences this paper provided show that the purchasing power parity theory has a certain explanatory ability for the decision of RMB exchange rate. As such, the purchasing power parity cannot hold completely, and China's government should continue to deepen the reform of the exchange rate system to improve China's exchange rate market.

• Journal of the Korea Society of Computer and Information
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• v.17 no.6
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• pp.75-81
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• 2012

This paper has proposed Message Count Control Mechanism based Link State Update(LSU) Algorithm that has not had a strong influence on the depreciation of QoS routing performance. Most existing LSU algorithms have the limit that cannot control the count of LSU message. Especially, adaptive algorithms have a bad performance when traffic are excessive and fickle. We classify as the importance of LSU message that have a influence on available bandwidth and determine the transmission of the message according to update rate per a unit of time. We have evaluated the performance of the proposed model and the existing algorithms on MCI simulation network using the performance metric as the QoS routing blocking rate and the mean update rate per link, it thus appears that we have verified the performance of this algorithm.