• KDI Journal of Economic Policy
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• v.37 no.4
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• pp.1-20
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• 2015

We examine the validity of popular exchange rate models such as the purchasing power parity (PPP) hypothesis and the monetary model for Korean won/US dollar exchange rate. Various specification tests demonstrate that Korean data are more favorable for both models based on time-varying cointegration coefficients as compared to those based on constant cointegration coefficients. When the abilities to predict future exchange rates between those models based on time-varying cointegration coefficients are compared, an in-sample analysis shows that the time-varying PPP (monetary model) has better predictive power over horizons shorter (longer) than one year. Results from an out-of-sample analysis indicate that the time-varying PPP outperforms models based on constant cointegration coefficients when predicting future exchange rate changes in the long run.

• Journal of Radiation Industry
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• v.17 no.1
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• pp.111-118
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• 2023

The International Commission on Radiological Protection (ICRP) 103 recommends a cost-benefit analysis method as an auxiliary tool for scientific and rational decision-making for the principle of optimization of radiological protection. In order to conduct a cost-benefit analysis, the safety improvement of nuclear power by regulation must be measured and converted into monetary terms. The improvement of nuclear safety can be measured by reducing the radiation exposure dose of the people, and it is necessary to determine the coefficient to convert the radiation exposure dose into money. The monetary coefficient is calculated as the product of the statistical life value (VSL) and the nominal risk coefficient. In order to derive the monetary coefficient, the willingness to pay (WTP) can be estimated using the contingent valuation method (CVM), which quantifies the value of non-market goods by converting them into monetary units. WTP can be estimated based on the random utility model, which is the basic model for bivariate selection type conditional value measurement data. Statistical life value can be calculated using the estimated WTP and reduction in early mortality, and a monetary coefficient can be derived.

• KDI Journal of Economic Policy
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• v.31 no.2
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• pp.1-13
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• 2009

The monetary model suggests that nominal exchange rates between two countries will be determined by important macroeconomic variables. The existence of a cointegrating relationship among these fundamental variables is the backbone of the monetary model. In a recent paper, Rapach and Wohar (2002, Journal of International Economics) advance the literature by testing for linear cointegration in the monetary model using a century of data to increase power. They find evidence of cointegration in five or six of ten countries. We extend their work to the nonlinear framework by performing threshold cointegration tests that allow for asymmetric adjustments in two regimes. Asymmetric adjustments in exchange rates can occur, for example, if transactions costs are present or if policy makers react asymmetrically to changing fundamentals. Moreover, whereas Rapach and Wohar (2002) found it necessary to exclude the relative output variable in some cases to maintain the validity of their cointegration tests, we can include this variable as a stationary covariate to increase power. Overall, using their same long-span data, we find more support for cointegration in a nonlinear framework.

• Analyses & Alternatives
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• v.7 no.2
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• pp.147-178
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• 2023

While most of countries today are opposing the issuance of private-led cryptocurrency, nevertheless they are actively jumping into the issuance of government-led digital currency such as CBDC. This article aims to find an answer to this dual attitude of countries. To achieve the purpose, this article finds out the characteristics of political power and economic interest that digital currency has and applies it to the international dimension of the Bretton Woods II System. Then come up to the conclusion that the answer can be found in the fact that the current dual attitude of countries is closely related to the crisis of the international monetary order. The Bretton Woods II System, which led the world economy through reckless monetary expansion based on credit currency, exposed its limitations through the 2008 global financial crisis and put countries into difficulties. In this situation, the cryptocurrency, which appeared by raising the issue of the monopoly power of the central authority in issuing currency, had no choice but to act as an opportunity to drive countries further and further into a corner. This article views CBDC as a national response to address these issues. In other words, countries maintain their monetary power by absorbing the challenge of private digital currency at the government level through CBDC, and use this as a stepping stone to reorganize the international monetary order in crisis with the intention to use it as a means to their advantage. That is what this article is trying to argue.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.5
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• pp.507-518
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• 2022

This study aimed to measure the monetary and non-monetary effects on brand awareness at hypermarkets in Riyadh. The independent variable consists of three sub-variables: price reductions, free samples, and purchasing vouchers. The research population has all Saudi and non-Saudi buyers in Riyadh. The figures show that the population size reached 3.87 million in 2019. The proportional stratification sampling technique and the recommended sample size were 387 buyers. The five-point Likert scale with the fully structured questionnaire was used. The study concldes the effect of free samples on brand awareness while there was no effect of monetary instruments. The results show that the three sales promotion incentives (price reduction, free samples, and purchasing vouchers) moderately affected brand awareness and a key role in explaining consumer behavior, so the significant impact was proved. In summary, this study showed that price reductions have the power of creating the perception of buyers at hypermarkets in Riyadh. Non-cash instruments were more effective than cash instruments in enhancing brand awareness at the hypermarkets in the Saudi market. So, the price reductions and purchasing vouchers have less power in conducting communication-based awareness. Building awareness and improving brand image through free samples were most visible in communication strategy.

• East Asian Economic Review
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• v.18 no.3
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• pp.301-335
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• 2014

In this paper, we consider a small open economy under the New Keynesian model with unemployment of Gal$\acute{i}$ (2011a, b) to discuss the design of the monetary policy. Our findings can be summarized in three parts. First, even with the existence of unemployment, the optimal policy is to minimize variance of domestic price inflation, wage inflation, and the output gap when both domestic price and wage are sticky. Second, stabilizing unemployment rate is important in reducing the welfare loss incurred by both technology and labor supply shocks. Therefore, introducing the unemployment rate as an another argument into the Taylor-rule type interest rate rule will be welfare-enhancing. Lastly, controlling CPI inflation is the best option when the policy is not allowed to respond to unemployment rate. Once the unemployment rate is controlled, however, stabilizing power of CPI inflation-based Taylor rule is diminished.

• KDI Journal of Economic Policy
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• v.40 no.1
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• pp.67-83
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• 2018

We have hypothesized that nuclear risk is significantly inversely related to the distance from residences to nuclear power plants and that the level of life satisfaction of residents therefore increases with the distance. We empirically explore the relationship between Ulsan citizens' life satisfaction levels and the distance between their residences and the Kori and Wolsong nuclear power plants (NPP) based on the life satisfaction approach (LSA). The dataset we used covers only Ulsan citizens from the biennial Ulsan Statistics on Citizen's Living Condition and Consciousness of 2014 and 2016. Controlling for micro-variables such as education, work satisfaction, gender, marital status, and expenditures, we found a statistically significant relationship between life satisfaction and the distance between the residences and the nuclear power plants. Nuclear negative externalities including (i) health and environmental impact, (ii) radioactive waste disposal, and (iii) the effect of severe accidents can be quantified in terms of LS units and monetary units. We were able to calculate the monetary value of NPP externalities at $277 per kilometer of distance for Kori and $280 per kilometer of distance for Wolsong at constant 2015 prices. These estimates are quite different from the traditional estimates made with the contingent valuation method, whereas they are similar to the findings of LSA studies abroad. Hence, the need to adopt the LSA in South Korea and policy implications are demonstrated.

• Nuclear Engineering and Technology
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• v.29 no.1
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• pp.78-84
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• 1997

The specific purpose of this study is to develop the numerical guide for the cost-benefit analysis of ORE ($/person-Sv reduction) to meet the criterion of ALARA in the design stage of the KNGR. In deriving the guide, the risk factor which is defined by the risk to unit collective radiation exposure dose (deaths/person-Sv) and the monetary value of human life ($/death) are required. The risk factor has been estimated from various clinical data accumulated for a number of years and continuously modified. And the monetary value of human life is usually quantified using the human capital approach. In this study, the risk to radiation exposure perceived by a group of people is investigated through an extensive poll survey conducted among university students in order to modify the existing risk factor for radiation exposure. And in evaluating the monetary value of human life, the QOL factor is introduced in order to incorporate the degree of public welfare or quality of life. As a result of study, a value within the range of 151, 000~172, 000 dollars per person-Sv reduction is recommended as the appropriate interim numerical guide for cost-benefit analysis of ORE to meet the criterion of ALARA in the design stage of the KNGR. A poll survey was also conducted in order to see whether the public acceptance cost of nuclear power should be incorporated in developing the guide, and the result of study shooed that such a cost does not need to be considered.

• Environmental and Resource Economics Review
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• v.27 no.1
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• pp.139-160
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• 2018

Using survey data of selected 1,349 individuals nationwide in Korea, we measure the influencing factors for the acceptance of nuclear power and estimates the probability of acceptance under several scenarios with different percentages of monetary compensation. Results of panel probit demonstrate that nuclear risk aversion tendency was found to be higher in case of female, younger age, past experience of extreme event such as an earthquake. However, the residents' residency nearby the nuclear power plant was not related to the risk-aversion tendency. In addition, we found that the nuclear acceptance is improved when the monetary compensation rate is increased. Although the policy demand intended to reduce GHG emissions in South Korea, the expansion of nuclear power is not be easy due to the occurrence of recent strong earthquakes because the risk attitude of an individual is influenced by subjective assessments formed through direct and indirect experiences of natural disasters such as an earthquake. Our results suggest that the opposition to construction of nuclear power plant is expected to be further intensified especially when combined with the experiences of threatening earthquakes. As a result, the debate and policy conflicts of nuclear power plants will consistently continue and large social costs are apparent for the acceptance of nuclear power plant.

• Nuclear Engineering and Technology
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• v.53 no.7
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• pp.2396-2406
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• 2021

The Pacific Earthquake Engineering Research (PEER) Center has been developing a performance-based earthquake engineering (PBEE) methodology, which is based on explicit determination of performance, e.g., monetary losses, in a probabilistic manner where uncertainties in earthquake ground motion, structural response, damage estimation, and losses are explicitly considered. To carry out the PEER PBEE procedure for a component of the nuclear power plant (NPP) such as the cable tray system, hazard curve and spectra were defined for two hazard levels of the ground motions, namely, operation basis earthquake, and safe shutdown earthquake. Accordingly, two sets of spectral compatible ground motions were selected for dynamic analysis of the cable tray system. In general, the PBEE analysis of the cable tray in NPP was introduced where the resulting floor motions from the time history analysis (THA) of the NPP structure should be used as the input motion to the cable tray. However, for simplicity, a finite element model of the cable tray was developed for THA under the effect of the selected ground motions. Based on the structural analysis results, fragility curves were generated in terms of specific engineering demand parameters. Loss analysis was performed considering monetary losses corresponding to the predefined damage states. Then, overall losses were evaluated for different damage groups using the PEER PBEE methodology.