• KDI Journal of Economic Policy
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• v.27 no.1
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• pp.1-38
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• 2005

Our paper aims to estimate a household consumption function in the presence of liquidity constraints as well as household characteristics. Empirical findings from a Korean cross-sectional data (National Survey of Household Income and Expenditure) reveal that several family characteristics, such as household size, number of working members, children in school, and educational level and age of the household head, turn out to be critical determinants of household consumption. Especially, the influence of household size on consumption decision is shown to be highly significant, not only indirectly through its impact on household income, but also directly by affecting the household's preference for consumption itself. While, the other family characteristics primarily influences household income. Our paper distinguishes itself from existing literature in that it greatly improves the explanatory power of the estimated household consumption function by measuring the degree of the liquidity constraint rather than simply identifying its presence. Based on the assumption that the present value of human capital is a function of household characteristics, the degree of the liquidity constraint is represented by the underestimated portion of the human capital. Such a method of implementing the liquidity constraint is useful in treating various types of assets according to their liquidity. Finally, our estimated household consumption function is applied to decompose cross-sectional variances of consumption inequality. The analysis confirms that the overall alleviation in liquidity constraints in Korea after the 1997 currency crisis reduced consumption inequality despite the worsening of income inequality and changes in the demographic composition of family characteristics during the same period.

• The Journal of the Korea Contents Association
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• v.11 no.9
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• pp.459-468
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• 2011

This study was to analyze the relationship of leisure constraint, boredom and satisfaction among the private security agents. To attain the goal of this study, the employee of private security organization located in Seoul, 2011 year were sampled 400 peoples by purposive sampling method. The result of reliability check up was here below; over Cronbach's ${\alpha}$=.587. To analyze materials, reliability analysis, factor analysis, T test and F test, multiple regression analysis and path analysis were used as statistic analysis techniques. The conclusion are here below. First, leisure constraints, boredom and satisfaction have a difference in demographic and socio-economic characteristics. Second, leisure constraints influence on the leisure boredom. Third, leisure constraints influence on the leisure satisfaction. Fourth, leisure constraints influence directly, indirectly on leisure boredom and satisfaction. Leisure boredom is very important variable connecting leisure constraints and satisfaction.

• Korea Real Estate Review
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• v.28 no.1
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• pp.39-52
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• 2018

The purpose of this study was to analyze the housing tenure choice decisions of older households, with focus on the activity constraints of the householders. For analysis, the probit model based on the data of the householders over 55 years of age from the 2015 KLIPS data was implemented. The research findings indicate that the ownership choice probability decreases when the head of the household has activity or social activity constraints. If there is an activity restriction, it is considered that the possibility of self-residence will be low due to the increase in medical expenses, the possibility of participation in economic activities will be low, the possibility of early retirement will be high, and the income will decrease. Therefore, if the head of the household has a personal or social activity constraint, such case is more likely to be categorized as falling under the poor residential group. This result suggests that the activity constraint can be utilized as a useful index for the housing welfare policy considering physical vulnerability.

• International Area Studies Review
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• v.15 no.1
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• pp.173-193
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• 2011

Most of the research regarding economic effects of policy loans has thus far been focused on whether policy loans can improve the financial status or the management performance of small and medium enterprises (SMEs). Unlike previous researches, this study implemented an empirical analysis focused on the contribution of policy loans to easing the liquidity restriction of investment. To analyze whether investment liquidity restriction can be alleviated or not, this study attempted an empirical analysis utilizing the nonlinear Euler equation induced through optimization of investment and GMM (generalized method of moments) as its analysis methodology. With the SMEs that received policy financing from the Small and medium Business Corporation (SBC) in 2004, this study analyzed three years of panel data before(2001~2003) and after(2004~2006) receipt of policy loans. According to the empirical results, it appears that policy loans had effects on resolving liquidity restriction of investment, implying that policy financing eases the liquidity restriction of SME investment and would contribute to the growth and development of SMEs. Further, I checked robustness of empirical results using Tobin's q model. The empirical results also support that policy loans help to resolve liquidity constraint. With these results, it is understood that the critical view to date, which has emphasized the ineffectiveness of policy financing due to it having no or insignificant economic effects, may be wrong.

• Journal of Institute of Control, Robotics and Systems
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• v.7 no.10
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• pp.867-873
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• 2001

The purpose of this study is to find analytic solution of determining the optimal capacity (lot-size) of multiproduct acyclic multistage production and inventory system to meet the finished product demand under the constraint of finite intermediate storage. Intermediate storage is a practical way to mitigate the material flow imbalance through the line of supply and demand chain. However, the cost of constructing and operating storage facilities is becoming substantial because of increasing land value, environmental and safety concern. Therefore, reasonable decision-making about the capacity of processes and storage units is an important subject for industries. The industrial solution for this subject is to use the classical economic lot sizing method, EOQ/EPQ(Economic Order Quantity/Economic Production Quantity) model, incorporated with practical experience. But EOQ/EPQ model is not suitable for the chemical plant design with highly interlinked processes and storage units because it is developed based on single product and single stage. This study overcomes the limitation of the classical lot sizing method. The superstructure of the plant consists of the network of serially and/or parallelly interlinked non-continuous processes and storage units. The processes transform a set of feedstock materials into another set of products with constant conversion factors. A novel production and inventory analysis method, PSW(Periodic Square Wave) model, is applied to describe the detail material flows among equipments. The objective function of this study is minimizing the total cost composed of setup and inventory holding cost. The advantage of PSW model comes from the fact that the model provides a set of simple analytic solutions in spite of realistic description of the material flows between processes and storage units. the resulting simple analytic solution can greatly enhance the proper and quick investment decision for the preliminary plant design problem confronted with economic situation.

• The Journal of Korean Institute of Communications and Information Sciences
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• v.36 no.4B
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• pp.412-421
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• 2011

An economic ship routing means to sail a ship with a goal of minimizing the fuel consumption by utilizing weather forecast information, and many such systems have been recently developed. Most of them assume that sailing is carried out with a constraint like a fixed output of engine-power or a fixed sailing speed. However, if the output of engine-power is controlled, it is possible to reduce the fuel consumption by sailing a ship under a relatively good weather condition. In this paper, we propose a novel economic ship routing system which can search optimal outputs of the engine-power for each part of a path by employing an evolutionary strategy. In addition, we develope an $A^*$ algorithm to find the shortest path and a method to enhance the degree of curve representation. These make the proposed system applicable to an arbitrary pair of departure and destination points. We compared our proposed system with another existing system not controlling output of the engine-power over 36 scenarios in total, and observed that the former reduced the estimated fuel consumption than the latter by 1.3% on average and the maximum 5.6% with little difference of estimated time of arrival.

• Structural Engineering and Mechanics
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• v.49 no.1
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• pp.65-80
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• 2014

This paper reports on the development of a minimum cost design model and its application for obtaining economic designs for reinforced High Strength Concrete (HSC) T-sections in bending under ultimate limit state conditions. Cost objective functions, behavior constraint including material nonlinearities of steel and HSC, conditions on strain compatibility in steel and concrete and geometric design variable constraints are derived and implemented within the Conjugate Gradient optimization algorithm. Particular attention is paid to problem formulation, solution behavior and economic considerations. A typical example problem is considered to illustrate the applicability of the minimum cost design model and solution methodology. Results are confronted to design solutions derived from conventional design office methods to evaluate the performance of the cost model and its sensitivity to a wide range of unit cost ratios of construction materials and various classes of HSC described in Eurocode2. It is shown, among others that optimal solutions achieved using the present approach can lead to substantial savings in the amount of construction materials to be used. In addition, the proposed approach is practically simple, reliable and computationally effective compared to standard design procedures used in current engineering practice.

• Journal of the Korean Regional Science Association
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• v.11 no.1
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• pp.31-60
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• 1995

The distribution of economic activity over a mutually exclusive and exhaustive categorical industry-region matrix is modeled as a composition of two random components: the probability-like share distribution of jobs and the dynamic evolution of absolute aggregates. The former describes the individual activity location choice by comparing the predicted profitability of the current industry-region pair against that of all other alternatives based on the available information on industry-specific, region specific, or activity specific attributes. The latter describes the time evolution of macro-level aggregates using a dynamic reduced from model. With the seperation of micro choice behavior and macro dynamic aggregate constraint, the usual independence and identicality assumptions become consistent with the activity share distribution, hence multi-regional industrial migration can be represented by a set of probability evolution equations in a conservative Markovian from. We call this a Micro-Macro Composition Approach since the product of the aggregate prediction and the predicted activity share distribution gives the predicted activity distribution gives the predicted activity distribution which explicitly considers the underlying individual choice behavior. The model can be applied to interesting practical problems such as the plant location choice of multinational enterprise, the government industrial ploicy to attract international firms, and the optimal tax-transfer mix to influence activity location choice. We consider the latter as an example.

• East Asian Economic Review
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• v.24 no.4
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• pp.441-468
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• 2020

Capital inflows have a strong presence that influences destination countries' development of institutions, which can in turn help resuscitate a stopped economy and re-attract capital that was lost during crises such as the recent public health crisis. While the previous literature emphasizes the mechanism that foreign investors press or even threaten the local government for change, this paper explores empirically whether institutional improvement can be achieved through the channel that host countries voluntarily reform institutions in anticipation of potential investments predicted by the exogenous geographical and cultural characteristics of the recipient countries. Given that countries with better institutional quality can accumulate larger FDI stocks, we still find that the need for more FDI, in contrast to FPI and debt, gives higher incentives to host countries to strategically improve their institutions before seeking capital overseas. Moreover, the predicted FDI exerts more prominent impacts on institutions on constraining elite than those involved in launching a business, enforcing contracts, and protecting properties. The results imply that a long-run plan for upgrading elite constraint institutions is crucial for a post-pandemic FDI reboot.

• Plant Journal
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• v.5 no.1
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• pp.40-44
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• 2009

This study presents an operational technique to maximize the profit of a cogeneration power plant under cost-based pool power market. In benefit side energy sale profit, heat sale profit, and supplementary fund profit for electric power industry are included and the changeable cost was considered in cost side. The profit of a cogeneration power plant is varied enormously by the operation conditions, and constraint conditions. The result of this case study can be used as a reference to a cogeneration power plant under the same power trading system.