• Title/Summary/Keyword: Econometric Approaches

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Riding a Bike Not Owned by Me in Bad Air: Big Data Analysis on Bike Sharing

  • Taekyung Kim
    • Asia pacific journal of information systems
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    • v.29 no.3
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    • pp.414-427
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    • 2019
  • The sharing economy has significantly changed the way of living for years. The emergence and expansion of sharing economy empowered by the mobile information technologies and intellectual algorithms reconfigure how people use transportation means. In this paper, the bike sharing phenomenon is highlighted. Combining a big data set provided by the Seoul government about user logs and air quality data set, the empirical findings reveal that temperature change is tightly associated bike sharing activities. Also, the concentration of particulate matter is weakly related to bike sharing, but the trend should be carefully examined. By considering external environmental factors to bike sharing businesses, this work is differentiated. To further understand empirical data, data mining methods and econometric approaches were adopted.

A Study on the Common RPN Model of Failure Mode Evaluation Analysis(FMEA) and its Application for Risk Factor Evaluation (위험 요인 평가를 위한 FMEA의 일반 RPN 모형과 활용에 관한 연구)

  • Cho, Seong Woo;Lee, Han Sol;Kang, Juyoung
    • Journal of Korean Society for Quality Management
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    • v.50 no.1
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    • pp.125-138
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    • 2022
  • Purpose: Failure Mode and Effect Analysis (FMEA) is a widely utilized technique to measure product reliability by identifying potential failure modes. Even though FMEA techniques have been studied, the form of Risk Priority Number (RPN) used to evaluate risk priority in FMEA is still questionable because of its shortcomings. In this study, we suggest common RPN(cRPN) to resolve shortcomings of the traditional RPN and show the extensibility of cRPN. Methods: We suggest cRPN which is based on Cobb-Douglas production function, and represent the various application on weighting risk factors, weighted RPN in a mathematical way, and show the possibility of statistical approach. We also conduct numerical study to examine the difference of the traditional RPN and cRPN as well as the potential application from the analysis on marginal effects of each risk factor. Results: cRPN successfully integrates previously suggested approaches especially on the relative importance of risk factors and weighting RPN. Moreover, we analyze the effect of corrective actions in terms of econometric analysis using cRPN. Since cRPN is rely on the reliable mathematical model, there would be numerous applications using cRPN such as smart factory based on A.I. techniques. Conclusion: We propose a reliable mathematical model of RPN based on Cobb-Douglas production function. Our suggested model, cRPN, resolves various shortcomings such as consideration of the relative importance, the effect of combinations among risk factors. In addition, by adopting a reliable mathematical model, quantitative approaches are expected to be applied using cRPN. We find that cRPN can be utilized to the field of industry because it is able to be applied without modifying the entire systems or the conventional actions.

Impact of Working Capital Management on Firm's Profitability: Empirical Evidence from Vietnam

  • NGUYEN, Anh Huu;PHAM, Huong Thanh;NGUYEN, Hang Thu
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.3
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    • pp.115-125
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    • 2020
  • This paper investigates the impact of working capital management on the firm's profitability. The research sample includes 119 non-financial listed companies on Vietnam stock market over a period of 9 years from 2010 to 2018. Two statistical approaches include Ordinary least squares (OLS) and fixed effects model (FEM) are employed to address econometric issues and to improve the accuracy of the regression coefficients. The empirical results show the negative and significant impacts of the working capital management, which measured by cash conversion cycle (CCC) and three components of the CCC including accounts receivable turnover in days (ARD), inventory turnover in days (INVD), and accounts payable turnover in days (APD) on the firm's profitability measured by return on assets (ROA) and Tobin's Q. It implies that firms can increase profitability by keeping the optimization of the working capital management measured by the CCC, which includes shortening the time to collect money from clients, accelerating inventory flow and hold the low payment time to creditors. Besides, the profitability of firms was impacted by the sale growth rate, firm size, leverage, and age. Therefore, this paper provides a new insight to managers on how to improve the firm's profitability with working capital management.

Economies of Scale and Scope in Hospitals (병원의 규모와 범위의 경제)

  • Ham, U-Sang
    • Health Policy and Management
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    • v.18 no.1
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    • pp.21-42
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    • 2008
  • This study investigates economies of scale, cost complementarity and economies of scope for healthcare organizations using econometric approaches. The economies of scale appear to exist in each service provided by a hospital such as inpatient treatment services, outpatient treatment services, and other patient treatment services, respectively. When we test all services in aggregate level, it also indicates that the healthcare industry on average exhibits the economies of scale of 6 percent, which implies that scaling up hospital sizes will bring substantial cost savings to them Evidence shows that cost complementarity exists between outpatient services and other services for patients and, i.e., these other services for patients experience the reduction in marginal costs as the outputs of the outpatient services increase. For the economies of scope, they are present in most service areas; aggregate level services, outpatient services, and other services for patients, respectively. Inpatient treatment services, however, do not show any evidence of the economies of scope. Results show that the economies of scope are achieved by the general hospital type that provides all service areas such as inpatient treatments, outpatient treatments, and other services for patients. The existence of the economies of scope provides the rationale for extending the existing line of business in a hospital into more diverse areas of services where its benefit comes in the form of cost savings. In sum, it overall provides evidence that the M&As in this industry are encouraged to achieve cost reductions from the economies of scale and scope by changing the size and the output mix.

Bank Dividend Policy and Degree of Total Leverage

  • TRAN, Dung Viet
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.2
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    • pp.53-64
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    • 2020
  • We provide one of the first investigation on the impact of the degree of total leverage to the dividend policy of bank. We use a large sample of US bank holding companies from 2000:Q1 to 2017:Q4 to shed light our research question. Our empirical analysis provides consistent evidence that banks with high degree of total leverage (i.e. banks with a relatively high fixed-to-variables costs) are less likely to pay dividends, and they spend a lower fraction of incomes to pay back shareholders, suggesting a higher conservatism in dividend policy of banks subject to high degree of total leverage. The evidence remains unchanged with alternative econometric approaches, alternative measures of dividend policy and degree of total leverage. We further document that this higher conservatism is strengthened for a sample of banks with low franchise value during the financial crises. Our result suggests that the conservatism in dividend policy of banks with high degree of total leverage seems to be related to the precautionary motives aimed at preserving corporate resources under financial distress. Our study contributes to the literature of cost structure and dividend policy by pointing out that the impacts of the degree of fixed-to-variable expenses to dividend policy are extended to the case of banks.

Estimating CIF-FOB Margins of Korea's Imports at Country and Product Level (한국 수입의 국가별, 품목별 CIF-FOB 마진 추정)

  • Seung-Kwan Shin
    • Korea Trade Review
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    • v.47 no.4
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    • pp.53-68
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    • 2022
  • It has great significance to estimate CIF-FOB margins of international trade. It certainly helps develop statistics on transport costs of international trade and provides basic data for econometric analysis of transport costs. It also contributes much to our standing the correlation between the margins and trade partners' geographical distance as well as one between the margins and trading products. However, the quality issue of international trade statistics renders it very difficult to derive trustworthy CIF-FOB margin estimates. Utilizing various analytical approaches, this study intended to acquire credible estimates of CIF-FOB margins for Korea's total imports and for country/product specific imports data. Major findings are as follows. First, the average of CIF-FOB margins of Korea's total imports is 7.3% and is generally declining. Second, country level analysis provides credible estimates for CIF-FOB margins of Korea's imports from four partners (Japan, the US, Australia, and Brazil). The differences in margins among these four countries are caused by geographical distance and characteristics of traded products. Third, product level analysis reveals that the margins of gold and passenger vehicles are fairly low while those of primary products tend to be high.

Economic Phenomena, Economic Analysis, and Its Statistical Applicability: Focusing on the Developments of Econometrics and Challenging Issues (경제현상과 경제분석, 그리고 통계학적 응용성 - 계량경제학의 발전과 과제를 중심으로 -)

  • Kim, Chiho
    • The Korean Journal of Applied Statistics
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    • v.28 no.6
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    • pp.1075-1091
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    • 2015
  • This paper reviews the developments of econometric analysis and seeks a statistical applicability to current economic phenomena. During the last half century, economic analysis has progressed continuously, analyzing and predicting a broad variety of economic phenomena. In the center of this progress lies the remarkable contribution of econometrics and mathematical statistics. New economic research environment has been recently created via developments of IT and the spread of internet and SNSs. Economic phenomena has become increasingly complicated along with more volatile and sophisticated economic analysis. In that context, it can be suggested that there is a need to move beyond current economic paradigms and adapt new approaches such as complex theory and econophysics, all of which posits as a challenge for econometrics and statistics.

Climate Change, Agricultural Productivity, and their General Equilibrium Impacts: A Recursive Dynamic CGE Analysis (기후변화에 따른 농업생산성 변화의 일반균형효과 분석)

  • Kwon, Oh-Sang;Lee, Hanbin
    • Environmental and Resource Economics Review
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    • v.21 no.4
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    • pp.947-980
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    • 2012
  • This study analyzes the long-run impacts of climate change on Korean agriculture and economy. We estimate the impacts of climate change on the productivities of major agricultural products including rice, dairy and livestock using both a simulation approach and a semiparametric econometric model. The former predicts a decline in productivity while the latter predicts an increase in productivity due to climate change, especially for rice. A recursive dynamic CGE model is used to analyze the general equilibrium impacts of productivity change under the two different scenarios, derived from the two productivity analysis approaches. The loss of GDP in 2050 is 0.2% or 0.02% of total GDP depending on the scenario. It is shown that the losses in dairy and livestock sectors are larger than that in rice sector, although the losses in those two non-rice sectors have been ignored by most existing works.

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The Effect of Vocational Training on Employment Outcome in Korea's Training Credit Program (내일배움카드제 훈련이 취업성과에 미치는 영향)

  • Kim, Yong-seong
    • Journal of Labour Economics
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    • v.43 no.1
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    • pp.1-34
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    • 2020
  • As the economic environment rapidly changes, the ability to flexibly adapt has become a vital skill which is primarily attained through education and training. Subsequently, it is essential that the effects of vocational eduction and training are closely examined to see if they are fulfilling their goals; specifically, whether they bolster the chances of gaining employment. To that end, the endogenous aspects of training variables must be controlled. This study critically assesses the approaches of current literature in regards to tackling the endogeneity issue, and investigates the effects of vocational training through various econometric models. The results failed to reveal any positive effects of Korea's vocational training on employment. However, the negative effects were also not large enough to be significant. Additionally, the marginal effects were weaker for women and older age groups-which show a disparity between men and women-than for men and younger age groups, respectively. A more comprehensive and in-depth analysis will be needed of these results using recent data and detailed information about the training process.

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A Study on Estimating Regional Water Demand and Water Management Policy (물 수요함수 추정과 지역 물 관리 정책 연구)

  • Lim, Dongsoon
    • Journal of Digital Convergence
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    • v.16 no.7
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    • pp.1-8
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    • 2018
  • In Korea, water supply capacity and facility investments had been emphasized around the 1980s. The water pricing have gained focuses in water policy since the 1990s. This study analyzes a water demand and estimates the relation of water demand and other socio-economic variable, using econometric models on the city of Busan. Water price and income are two key elements to explain water demand. Modeling approach using translog function provides better results, and water demand responds positively to population and income. Energy and water prices are negative factors in deciding water demand. It is requested that water pricing needs to reflect more production costs. Alternative approaches such as water saving facilities by household and use of digital water information should be emphasized for efficient water management in a local community.