• Title/Summary/Keyword: Economic constraint

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A Study on Demand-side Wage Subsidy (노동수요 측면의 임금보조정책 연구)

  • YOO, Hanwook
    • KDI Journal of Economic Policy
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    • v.33 no.2
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    • pp.111-143
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    • 2011
  • As the 'jobless growth' is developing into a worldwide phenomenon, many countries try to recover a virtuous relationship between the growth and employment using various wage subsidy programs. This study focuses on wage subsidy to employers, labor demand-side wage subsidy for which one can think of two types-a tax credit(a flat wage subsidy) and a social insurance premium exemption(a proportional wage subsidy). For job creation, Korean government reintroduced a tax credit to small and medium-sized enterprises(SMEs) which have increased their employment level in 2010. But many experts has continuously insisted that it should be replaced with a social insurance premium exemption arguing only a few SMEs benefit from the tax credit as most of them are actually not paying any corporate or general income tax bills. However, as the insurance premium exemption accompanies an increase in the amount of budget with the coverage widen, one cannot confirm its cost effectiveness over the tax credit. This paper aims to provide a theoretical analysis to derive some formal conditions under which a social insurance premium exemption creates more jobs than a tax credit does given a budget constraint. We show that the former's dominance over the latter depends on whether there exists a dead zone of social insurance or not. If there does not exist a dead zone, a social insurance premium exemption is more desirable in many cases, whereas one cannot guarantees its dominance over a tax credit if there exists a dead zone. Therefore in order to realize its dominance, the government should minimize a dead zone so that most SMEs effectively benefit from the insurance premium exemption. In addition, applying discriminative exemption rates which reflect each firm's job conditions such as wage level and labor demand/supply sensitivity, the government try to enhance job creation effect.

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On Promoting the Coastal Transport of Container (컨테이너 연안해송 활성화에 관한 연구 -부산항을 중심으로-)

  • Roh H.S.;Lee C.Y.
    • Journal of Korean Port Research
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    • v.7 no.1
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    • pp.43-58
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    • 1993
  • There has been fast progress in economy in Korea derived by a consecutive five-year plan program for economic development started in the early 1960's. In the field of transportation, rapid changes in the technological environment of transportation and communication have brought a revolution of the transport system, of which inter-modal transportation through containerisation is typical. Because of the rapidly growing traffic volumes of cargo, especially container traffic, and lack of investment into transport infrastructure in the past, both road and railway are beyond their capacity. As a result, the public-road network has suffered a serious congestion problem. For instance, in relation to the corridor between Seoul and Pusan, today, it takes about 14 hours for the journey of container trailer through Kyongbu Expressway, for which it used to take only 7 hours in 1986. For the railway, though the congestion problem is not very serious compared with the road sector, a shortage of capacity on certain main lines has emerged as a problem as railway traffic has increased. Furthermore, the further expansion of the system in near future is difficult due to burden of higher construction the cost. Unlike these two modes, coastal shipping, which has been paid relatively less attention for commodity transport in Korea, shows no constraint in this respect. In addition, it is the most cost efficient mode of transport. This work therefore aims to make a proposal for the alternative inland transportation mode, which is to promote the coastal transport of container. Three obstructing factors for the promotion of the coastal transport are investigated and some solutions for those are suggested as follows : First, it appears to be essential to provide exclusive ports for the coastal shipping, that comply with simplification, specialization and rationalization. The optimum size of berths on the exclusive ports in Pusan port is estimated as 16-20. We found that it needs periodical study and publicity on the advantages from the adoption of the coastal mode. Inducing competition in the coastal shipping market is also necessary. For the supply of the fleet in the coastal shipping, chartering of the surplus ships in the oversea shipping is found to be more desirable than new shipbuilding. Second, to solve the fragmentation of the companies which wish to participate in the coastal transport, government has to implement the subsidy policy. The encouragement of participation of the shipping lines engaging in Korea-Japan run and Korea-East South Asia run, into coastal shipping also needs to be considered cautiously. Third, simplification of the document for entry in ports is needed for rational coastal shipping management. We can use B/L (Bill of Lading) for coastal shipping as a prerequisite to get the indemnity by P & I Club. The reduction of the government controls on entering and leaving the ports also needs.

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The Optimal Project Combination for Urban Regeneration New Deal Projects (도시재생 뉴딜사업의 최적 사업지구 선정조합에 관한 연구)

  • Park, Jae Ho;Geem, Zong Woo;Yu, Jung Suk
    • Korea Real Estate Review
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    • v.28 no.1
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    • pp.23-37
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    • 2018
  • The genetic algorithm (GA) and branch and bound (B&B) methods are the useful methods of searching the optimal project combination (combinatorial optimization) to maximize the project effect considering the budget constraint and the balance of regional development with regard to the Urban Regeneration New Deal policy, the core real estate policy of the Moon Jae-in government. The Ministry of Land, Infrastructure, and Transport (MOLIT) will choose 13 central-city-area-type projects, 2 economic-base-type projects, and 10 public-company-proposal-type projects among the numerous projects from 16 local governments while each government can apply only 4 projects, respectively, for the 2017 Urban Regeneration New Deal project. If MOLIT selects only those projects with a project effect maximization purpose, there will be unselected regions, which will harm the balance of regional development. For this reason, an optimization model is proposed herein, and a combinatorial optimization method using the GA and B&B methods should be sought to satisfy the various constraints with the object function. Going forward, it is expected that both these methods will present rational decision-making criteria if the central government allocates a special-purpose-limited budget to many local governments.

Rationality of Passengers' Route Choice Considering Smart Card Tag Constraints : Focused on Seoul Metropolitan Subway Network (교통카드 Tag 제약을 반영한 통행자 경로선택에 대한 합리성 평가 연구 : 수도권 지하철 네트워크를 중심으로)

  • Lee, Mee Young;Nam, Doohee;Shim, Dae Young
    • The Journal of The Korea Institute of Intelligent Transport Systems
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    • v.19 no.6
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    • pp.14-25
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    • 2020
  • This research proposes a methodology to evaluate the rationality of passengers' route choice who make trips within Seoul metropolitan subway based on smart card data. The rationality of user route choice is divided into the degree of determinacy and similarity concepts as basic principle. Determinacy is the degree to which the route selected by the passenger is identical to the system optimal path. Similarity indicates the degree to which the route is similar to the system optimal path. The K-path search method is used for path enumeration, which allows for measurement of determinacy. To assess determinacy within similarity, transfer tag data of private operators is used. Consequently, the concept of similarity applied to the model is such that the passenger's path choice is identical to the path taken using the tag reader. Results show that the determinacy of appearance of the shortest path (K=1) is 90.4%, while the similarity of appearance as K=(2-10) is 7.9%, summing to 98.3%. This indicates that trips on the metropolitan subway network are being rationally explained. 1.7% of irrational trips are attributed to the unexplainable error term that occurs due to the diversity of passengers.

A Study on the Optimal Site Selection by Constraint Mapping and Park Optimization for Offshore Wind Farm in the Southwest Coastal Area (서남해 연안 해상풍력 발전단지 지리적 적합지 선정 및 최적배치에 관한 연구)

  • Jung-Ho, Kim;Geon-Hwa, Ryu;Hong-Chul, Son;Young-Gon, Kim;Chae-Joo, Moon
    • The Journal of the Korea institute of electronic communication sciences
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    • v.17 no.6
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    • pp.1145-1156
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    • 2022
  • In order to effectively secure site suitability for the development of large-scale offshore wind farms, it is essential to minimize the environmental impact of development and analyze the conflicts of benefit between social, ecological, and economic core values. In addition, a preliminary review of site adequacy must be preceded in order not to collide with other used areas in the marine spatial plan. In addition, it is necessary to conduct local meteorological characteristics analysis including wind resources near Jeollanam-do area before project feasibility study. Therefore, wind resource analysis was performed using the observation data of the meteorological mast installed in Wangdeungnyeo near Anmado, Yeonggwang, and the optimal site was selected after excluding geographical constraints related to the location of the offshore wind farm. In addition, the annual energy production was calculated by deriving the optimal wind farm arrangement results suitable for the local wind resources characteristics based on WindSim SW, and it is intended to be used as basic research data for site discovery and selection of suitable sites for future offshore wind farm projects.

Effect of Capital Market Return On Insurance Coverage : A Financial Economic Approach (투자수익(投資收益)이 보험수요(保險需要)에 미치는 영향(影響)에 관한 이론적(理論的) 고찰(考察))

  • Hong, Soon-Koo
    • The Korean Journal of Financial Management
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    • v.10 no.1
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    • pp.249-280
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    • 1993
  • Recent financial theory views insurance policies as financial instruments that are traded in markets and whose prices reflect the forces of supply and demand. This article analyzes individual's insurance purchasing behavior along with capital market investment activities, which will provide a more realistic look at the tradeoff between insurance and investment in the individual's budget constraint. It is shown that the financial economic concept of insurance cost should reflect the opportunity cost of insurance premium. The author demonstrates the importance of riskless and risky financial assets in reaching an equilibrium insurance premium. In addition, the paper also investigates how the investment income could affect the four established theorems on traditional insurance literature. At the present time in Korea, the price deregulation is being debated as the most important current issue in insurance industry. In view of the results of this paper, insurance companies should recognize investment income in pricing their coverage if insurance prices are deregulated. Otherwise. price competition may force insurance companies to restrict coverage or to leave the market.

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Morbidity Patterns and Health Care Behavior of Residents in Urban Low Income Area (도시영세지역(都市零細地域) 주민(住民)의 상병(傷病)및 의료이용(醫療利用) 양상(樣相) -대구직할시를 중심으로-)

  • Woo, Kuck-Hyeun
    • Journal of Preventive Medicine and Public Health
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    • v.18 no.1
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    • pp.25-39
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    • 1985
  • This study was conducted to assess the morbidity and medical facilities utilization patterns of the residents in urban low income area. Study population included 2,002 family members of 468 households in the low income area (LA) of Nam-san 4 Dong, Jung Gu of Taegu city and 1,709 family members of 374 households in surrounding neighbourhood control area (CA). Well trained nursing school students interviewed mainly with housewives according to the pretested questionaire between July 1 and July 30, 1984. Age-sex distribution of the study population in LA was similar to that in CA. The average monthly income of a household in LA was 236,000 won and 356,000 won in CA. Educational level of the residents in LA was lower than that in CA; average years of school education of the 20 years old or above in LA was 6.9 years compared with 8.5 years in CA. The average family members per room in LA was 2.6 and 2.2 in CA, and proportion of Medicaid program beneficiary was 29.4% in LA and 1.9% in CA. Prevalence rate of illness during 15-day period was 131 per 1,000 population in LA and 71 in CA(p<0.01) and that of the chronic illness for 1 year was 134 per 1,000 population in LA and 89 in CA(p<0.01). The most common illness experienced during 15 days was respiratory disease(24.0% in LA ana 29.8% in CA) and followed by gastro-intestinal disorders(21.0% in LA, 20.6% in CA). Injury or poisoning was 10.3% in LA and 3.3% in CA. Castro-intestinal disorder was the most common chronic illness in both LA (22.7%) and CA (21.7%), and followed by musculoskeletal disease in LA and neuralgia in CA. Mean activity restricted days among the persons with illness during 15-day period was 4.0 days in LA and 2.2 days in CA. Among persons with illness during 15 days, 17.9% in LA and 11.6% in CA did not seek any medical treatment and the most frequently utilized medical facility was pharmacy in LA (35.5%) and local clinic or hospital OPD in CA (42.1%). Among persons with chronic illness, 15.2% in LA and 9.2% in CA did not seek for medical treatment, and residents in LA as well as residents in CA utilized local clinic or hospital OPD more frequently than pharmacy or drugstores, especially those who have medical insurance. The most common reason for not treating illness experienced during 15-day period and chronic illness was economical constraint in both LA and CA. The higher prevalence rate of illness during 15-day period and chronic illness in LA than that in CA seems to be highly correlated with their lower economic status and educational level and crowded living condition. The utilization pattern of medical facilities was associated with the medical security status. A program to improve the economic status and living condition should be integrated with the health program to promote the health of the population in low income area.

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Optimum Design of Two Hinged Steel Arches with I Sectional Type (SUMT법(法)에 의(依)한 2골절(滑節) I형(形) 강재(鋼材) 아치의 최적설계(最適設計))

  • Jung, Young Chae
    • KSCE Journal of Civil and Environmental Engineering Research
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    • v.12 no.3
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    • pp.65-79
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    • 1992
  • This study is concerned with the optimal design of two hinged steel arches with I cross sectional type and aimed at the exact analysis of the arches and the safe and economic design of structure. The analyzing method of arches which introduces the finite difference method considering the displacements of structure in analyzing process is used to eliminate the error of analysis and to determine the sectional force of structure. The optimizing problems of arches formulate with the objective functions and the constraints which take the sectional dimensions(B, D, $t_f$, $t_w$) as the design variables. The object functions are formulated as the total weight of arch and the constraints are derived by using the criteria with respect to the working stress, the minimum dimension of flange and web based on the part of steel bridge in the Korea standard code of road bridge and including the economic depth constraint of the I sectional type, the upper limit dimension of the depth of web and the lower limit dimension of the breadth of flange. The SUMT method using the modified Newton Raphson direction method is introduced to solve the formulated nonlinear programming problems which developed in this study and tested out throught the numerical examples. The developed optimal design programming of arch is tested out and examined throught the numerical examples for the various arches. And their results are compared and analyzed to examine the possibility of optimization, the applicablity, the convergency of this algorithm and with the results of numerical examples using the reference(30). The correlative equations between the optimal sectional areas and inertia moments are introduced from the various numerical optimal design results in this study.

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The Effects of Intention Inferences on Scarcity Effect: Moderating Effect of Scarcity Type, Scarcity Depth (소비자의 기업의도 추론이 희소성 효과에 미치는 영향: 수량한정 유형과 폭의 조절효과)

  • Park, Jong-Chul;Na, June-Hee
    • Journal of Global Scholars of Marketing Science
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    • v.18 no.4
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    • pp.195-215
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    • 2008
  • The scarcity is pervasive aspect of human life and is a fundamental precondition of economic behavior of consumers. Also, the effect of scarcity message is a power social influence principle used by marketers to increase the subjective desirability of products. Because valuable objects are often scare, consumers tend to infer the scarce objects are valuable. Marketers often do base promotional appeals on the principle of scarcity to increase the subjective desirability their products among consumers. Specially, advertisers and retailers often promote their products using restrictions. These restriction act to constraint consumers' ability th take advantage of the promotion and can assume several forms. For example, some promotions are advertised as limited time offers, while others limit the quantity that can be bought at the deal price by employing the statements such as 'limit one per consumer,' 'limit 5 per customer,' 'limited products for special commemoration celebration,' Some retailers use statements extensively. A recent weekly flyer by a prominent retailer limited purchase quantities on 50% of the specials advertised on front page. When consumers saw these phrase, they often infer value from the product that has limited availability or is promoted as being scarce. But, the past researchers explored a direct relationship between the purchase quantity and time limit on deal purchase intention. They also don't explored that all restriction message are not created equal. Namely, we thought that different restrictions signal deal value in different ways or different mechanism. Consumers appear to perceive that time limits are used to attract consumers to the brand, while quantity limits are necessary to reduce stockpiling. This suggests other possible differences across restrictions. For example, quantity limits could imply product quality (i.e., this product at this price is so good that purchases must be limited). In contrast, purchase preconditions force the consumer to spend a certain amount to qualify for the deal, which suggests that inferences about the absolute quality of the promoted item would decline from purchase limits (highest quality) to time limits to purchase preconditions (lowest quality). This might be expected to be particularly true for unfamiliar brands. However, a critical but elusive issue in scarcity message research is the impacts of a inferred motives on the promoted scarcity message. The past researchers not explored possibility of inferred motives on the scarcity message context. Despite various type to the quantity limits message, they didn't separated scarcity message among the quantity limits. Therefore, we apply a stricter definition of scarcity message(i.e. quantity limits) and consider scarcity message type(general scarcity message vs. special scarcity message), scarcity depth(high vs. low). The purpose of this study is to examine the effect of the scarcity message on the consumer's purchase intension. Specifically, we investigate the effect of general versus special scarcity messages on the consumer's purchase intention using the level of the scarcity depth as moderators. In other words, we postulates that the scarcity message type and scarcity depth play an essential moderating role in the relationship between the inferred motives and purchase intention. In other worlds, different from the past studies, we examine the interplay between the perceived motives and scarcity type, and between the perceived motives and scarcity depth. Both of these constructs have been examined in isolation, but a key question is whether they interact to produce an effect in reaction to the scarcity message type or scarcity depth increase. The perceived motive Inference behind the scarcity message will have important impact on consumers' reactions to the degree of scarcity depth increase. In relation ti this general question, we investigate the following specific issues. First, does consumers' inferred motives weaken the positive relationship between the scarcity depth decrease and the consumers' purchase intention, and if so, how much does it attenuate this relationship? Second, we examine the interplay between the scarcity message type and the consumers' purchase intention in the context of the scarcity depth decrease. Third, we study whether scarcity message type and scarcity depth directly affect the consumers' purchase intention. For the answer of these questions, this research is composed of 2(intention inference: existence vs. nonexistence)${\times}2$(scarcity type: special vs. general)${\times}2$(scarcity depth: high vs. low) between subject designs. The results are summarized as follows. First, intention inference(inferred motive) is not significant on scarcity effect in case of special scarcity message. However, nonexistence of intention inference is more effective than existence of intention inference on purchase intention in case of general scarcity. Second, intention inference(inferred motive) is not significant on scarcity effect in case of low scarcity. However, nonexistence of intention inference is more effective than existence of intention inference on purchase intention in case of high scarcity. The results of this study will help managers to understand the relative importance among the type of the scarcity message and to make decisions in using their scarcity message. Finally, this article have several contribution. First, we have shown that restrictions server to activates a mental resource that is used to render a judgment regarding a promoted product. In the absence of other information, this resource appears to read to an inference of value. In the presence of other value related cue, however, either database(i.e., scarcity depth: high vs. low) or conceptual base(i.e.,, scarcity type special vs. general), the resource is used in conjunction with the other cues as a basis for judgment, leading to different effects across levels of these other value-related cues. Second, our results suggest that a restriction can affect consumer behavior through four possible routes: 1) the affective route, through making consumers feel irritated, 2) the cognitive making route, through making consumers infer motivation or attribution about promoted scarcity message, and 3) the economic route, through making the consumer lose an opportunity to stockpile at a low scarcity depth, or forcing him her to making additional purchases, lastly 4) informative route, through changing what consumer believe about the transaction. Third, as a note already, this results suggest that we should consider consumers' inferences of motives or attributions for the scarcity dept level and cognitive resources available in order to have a complete understanding the effects of quantity restriction message.

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Design and Economic Analysis of Low Pressure Liquid Air Production Process using LNG cold energy (LNG 냉열을 활용한 저압 액화 공기 생산 공정 설계 및 경제성 평가)

  • Mun, Haneul;Jung, Geonho;Lee, Inkyu
    • Korean Chemical Engineering Research
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    • v.59 no.3
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    • pp.345-358
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    • 2021
  • This study focuses on the development of the liquid air production process that uses LNG (liquefied natural gas) cold energy which usually wasted during the regasification stage. The liquid air can be transported to the LNG exporter, and it can be utilized as the cold source to replace certain amount of refrigerant for the natural gas liquefaction. Therefore, the condition of the liquid air has to satisfy the available pressure of LNG storage tank. To satisfy pressure constraint of the membrane type LNG tank, proposed process is designed to produce liquid air at 1.3bar. In proposed process, the air is precooled by heat exchange with LNG and subcooled by nitrogen refrigeration cycle. When the amount of transported liquid air is as large as the capacity of the LNG carrier, it could be economical in terms of the transportation cost. In addition, larger liquid air can give more cold energy that can be used in natural gas liquefaction plant. To analyze the effect of the liquid air production amount, under the same LNG supply condition, the proposed process is simulated under 3 different air flow rate: 0.50 kg/s, 0.75 kg/s, 1.00 kg/s, correspond to Case1, Case2, and Case3, respectively. Each case was analyzed thermodynamically and economically. It shows a tendency that the more liquid air production, the more energy demanded per same mass of product as Case3 is 0.18kWh higher than Base case. In consequence the production cost per 1 kg liquid air in Case3 was $0.0172 higher. However, as liquid air production increases, the transportation cost per 1 kg liquid air has reduced by $0.0395. In terms of overall cost, Case 3 confirmed that liquid air can be produced and transported with $0.0223 less per kilogram than Base case.