• Journal of Distribution Research
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• v.17 no.1
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• pp.37-63
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• 2012

In franchise business, exclusive sales territory (sometimes EST in table) protection is a very important issue from an economic, social and political point of view. It affects the growth and survival of both franchisor and franchisee and often raises issues of social and political conflicts. When franchisee is not familiar with related laws and regulations, franchisor has high chance to utilize it. Exclusive sales territory protection by the manufacturer and distributors (wholesalers or retailers) means sales area restriction by which only certain distributors have right to sell products or services. The distributor, who has been granted exclusive sales territories, can protect its own territory, whereas he may be prohibited from entering in other regions. Even though exclusive sales territory is a quite critical problem in franchise business, there is not much rigorous research about the reason, results, evaluation, and future direction based on empirical data. This paper tries to address this problem not only from logical and nomological validity, but from empirical validation. While we purse an empirical analysis, we take into account the difficulties of real data collection and statistical analysis techniques. We use a set of disclosure document data collected by Korea Fair Trade Commission, instead of conventional survey method which is usually criticized for its measurement error. Existing theories about exclusive sales territory can be summarized into two groups as shown in the table below. The first one is about the effectiveness of exclusive sales territory from both franchisor and franchisee point of view. In fact, output of exclusive sales territory can be positive for franchisors but negative for franchisees. Also, it can be positive in terms of sales but negative in terms of profit. Therefore, variables and viewpoints should be set properly. The other one is about the motive or reason why exclusive sales territory is protected. The reasons can be classified into four groups - industry characteristics, franchise systems characteristics, capability to maintain exclusive sales territory, and strategic decision. Within four groups of reasons, there are more specific variables and theories as below. Based on these theories, we develop nine hypotheses which are briefly shown in the last table below with the results. In order to validate the hypothesis, data is collected from government (FTC) homepage which is open source. The sample consists of 1,896 franchisors and it contains about three year operation data, from 2006 to 2008. Within the samples, 627 have exclusive sales territory protection policy and the one with exclusive sales territory policy is not evenly distributed over 19 representative industries. Additional data are also collected from another government agency homepage, like Statistics Korea. Also, we combine data from various secondary sources to create meaningful variables as shown in the table below. All variables are dichotomized by mean or median split if they are not inherently dichotomized by its definition, since each hypothesis is composed by multiple variables and there is no solid statistical technique to incorporate all these conditions to test the hypotheses. This paper uses a simple chi-square test because hypotheses and theories are built upon quite specific conditions such as industry type, economic condition, company history and various strategic purposes. It is almost impossible to find all those samples to satisfy them and it can't be manipulated in experimental settings. However, more advanced statistical techniques are very good on clean data without exogenous variables, but not good with real complex data. The chi-square test is applied in a way that samples are grouped into four with two criteria, whether they use exclusive sales territory protection or not, and whether they satisfy conditions of each hypothesis. So the proportion of sample franchisors which satisfy conditions and protect exclusive sales territory, does significantly exceed the proportion of samples that satisfy condition and do not protect. In fact, chi-square test is equivalent with the Poisson regression which allows more flexible application. As results, only three hypotheses are accepted. When attitude toward the risk is high so loyalty fee is determined according to sales performance, EST protection makes poor results as expected. And when franchisor protects EST in order to recruit franchisee easily, EST protection makes better results. Also, when EST protection is to improve the efficiency of franchise system as a whole, it shows better performances. High efficiency is achieved as EST prohibits the free riding of franchisee who exploits other's marketing efforts, and it encourages proper investments and distributes franchisee into multiple regions evenly. Other hypotheses are not supported in the results of significance testing. Exclusive sales territory should be protected from proper motives and administered for mutual benefits. Legal restrictions driven by the government agency like FTC could be misused and cause mis-understandings. So there need more careful monitoring on real practices and more rigorous studies by both academicians and practitioners.

• Journal of The Korean Society of Grassland and Forage Science
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• v.34 no.2
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• pp.129-140
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• 2014

This study was performed to evaluate the effects of replacing basic total mixed ration (TMR) with fermented soybean curd, Artemisia princeps Pampanini cv. Sajabal, and spent coffee grounds by-product on rumen microbial fermentation in vitro. Soybean in the basic TMR diet (control) was replaced by the following 9 treatments (3 replicates): maximum amounts of soybean curd (SC); fermented SC (FSC); 3, 5, and 10% FSC + fermented A. princeps Pampanini cv. Sajabal (1:1, DM basis, FSCS); and 3, 5, 10% FSC + fermented coffee meal (1:1, DM basis, FSCC) of soybean. FSC, FSCS, and FSCC were fermented using Lactobacillus acidophilus ATCC 496, Lactobacillus fermentum ATCC 1493, Lactobacillus plantarum KCTC 1048, and Lactobacillus casei IFO 3533. Replacing dairy cow TMR with FSC treatment led to a pH value of 6 after 8 h of incubation-the lowest value measured (p<0.05), and FSCS and FSCC treatments were higher than SC and FSC treatment after 6 h (p<0.05). Gas production was higher in response to 3% FSC and FSCC treatments than the control after 4-10 h. Dry matter digestibility was increased 0-12 h after FSC treatment (p<0.05) and was the highest after 24 h of 10% FSCS treatment. $NH_3-N$ concentration was the lowest after 24 h of FSC treatment (p<0.05). Microbial protein content increased in response to treatments that had been fermented by the Lactobacillus spp. compared to control and SC treatments (p<0.05). The total concentration of volatile fatty acids (VFAs) was increased after 6-12 h of FSC treatment (p<0.05), while the highest acetate proportion was observed 24 h after 5% and 10% FSCS treatments. The FSC of propionate proportion was increased for 0-10 h compared with among treatments (p<0.05). The highest acetate in the propionate ration was observed after 12 h of SC treatment and the lowest with FSCS 3% treatment after 24 h. Methane ($CH_4$) emulsion was lower with A. princeps Pampanini cv. Sajabal and spent coffee grounds treatments than with the control, SC, and FSC treatments. These experiments were designed to replace the by-products of dairy cow TMR with SC, FSC, FSCS, and FSCC to improve TMR quality. Condensed tannins contained in FSCS and FSCC treatments, which reduced $CH_4$ emulsion in vitro, decreased rumen microbial fermentation during the early incubation time. Therefore, future experiments are required to develop a rumen continuous culture system and an in vivo test to optimize the percentages of FSC, FSCS, and FSCC in the TMR diet of the dairy cows.

• Journal of Intelligence and Information Systems
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• v.19 no.2
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• pp.125-140
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• 2013

We call a data set in which the number of records belonging to a certain class far outnumbers the number of records belonging to the other class, 'imbalanced data set'. Most of the classification techniques perform poorly on imbalanced data sets. When we evaluate the performance of a certain classification technique, we need to measure not only 'accuracy' but also 'sensitivity' and 'specificity'. In a customer churn prediction problem, 'retention' records account for the majority class, and 'churn' records account for the minority class. Sensitivity measures the proportion of actual retentions which are correctly identified as such. Specificity measures the proportion of churns which are correctly identified as such. The poor performance of the classification techniques on imbalanced data sets is due to the low value of specificity. Many previous researches on imbalanced data sets employed 'oversampling' technique where members of the minority class are sampled more than those of the majority class in order to make a relatively balanced data set. When a classification model is constructed using this oversampled balanced data set, specificity can be improved but sensitivity will be decreased. In this research, we developed a hybrid model of support vector machine (SVM), artificial neural network (ANN) and decision tree, that improves specificity while maintaining sensitivity. We named this hybrid model 'hybrid SVM model.' The process of construction and prediction of our hybrid SVM model is as follows. By oversampling from the original imbalanced data set, a balanced data set is prepared. SVM_I model and ANN_I model are constructed using the imbalanced data set, and SVM_B model is constructed using the balanced data set. SVM_I model is superior in sensitivity and SVM_B model is superior in specificity. For a record on which both SVM_I model and SVM_B model make the same prediction, that prediction becomes the final solution. If they make different prediction, the final solution is determined by the discrimination rules obtained by ANN and decision tree. For a record on which SVM_I model and SVM_B model make different predictions, a decision tree model is constructed using ANN_I output value as input and actual retention or churn as target. We obtained the following two discrimination rules: 'IF ANN_I output value <0.285, THEN Final Solution = Retention' and 'IF ANN_I output value ${\geq}0.285$, THEN Final Solution = Churn.' The threshold 0.285 is the value optimized for the data used in this research. The result we present in this research is the structure or framework of our hybrid SVM model, not a specific threshold value such as 0.285. Therefore, the threshold value in the above discrimination rules can be changed to any value depending on the data. In order to evaluate the performance of our hybrid SVM model, we used the 'churn data set' in UCI Machine Learning Repository, that consists of 85% retention customers and 15% churn customers. Accuracy of the hybrid SVM model is 91.08% that is better than that of SVM_I model or SVM_B model. The points worth noticing here are its sensitivity, 95.02%, and specificity, 69.24%. The sensitivity of SVM_I model is 94.65%, and the specificity of SVM_B model is 67.00%. Therefore the hybrid SVM model developed in this research improves the specificity of SVM_B model while maintaining the sensitivity of SVM_I model.

• Journal of Food Hygiene and Safety
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• v.34 no.3
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• pp.251-262
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• 2019

In this study, we analyzed Korean dietary habits with food intake data from the Korea National Health and Nutrition Examination Survey (KNHANES) and the Korea Centers for Disease Control and Prevention and we proposed a set of management guidelines for future Korean dietary habits. A total of 839 food items (1,419 foods) were analyzed according to the food catagories in "Food Code", which is the representative food classification system in Korea. The average total daily food intake was 1,585.77 g/day, with raw and processed foods accounting for 858.96 g/day and 726.81 g/day, respectively. Cereal grains contributed to the highest proportion of the food intake. Over 90% of subjects consumed cereal grains (99.09%) and root and tuber vegetables (95.80%) among the top 15 consumed food groups. According to the analysis by item, rice, Korean cabbage kimchi, apple, radish, egg, chili pepper, onion, wheat, soybean curds, potato, cucumber and pork were major (at least 1% of the average daily intake, 158.6 g/day) and frequently (eaten by more than 25% of subjects, 5,168 persons) consumed food items, and Korean spices were at the top of this list. In the case of kimchi, the proportion of intake of Korean cabbage kimchi (64.89 g/day) was the highest. In the case of alcoholic beverages, intake was highest by order of beer (63.53 g/day), soju (39.11 g/day) and makgeolli (19.70 g/day), and intake frequency was high in order of soju (11.3%), beer (7.2%), and sake (6.6%). Analysis results by seasonal intake trends showed that cereal grains have steadily decreased and beverages have slightly risen. In the case of alcoholic beverage consumption frequency, some kinds of makgeolli, wine, sake, and black raspberry wine have decreased gradually year by year. The consumption trend for kimchi has been gradually decreasing as well.

• Korean Journal of Heritage: History & Science
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• v.55 no.3
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• pp.74-100
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• 2022

The purpose of this study was to investigate the characteristics of Chinese seowons and to obtain data based on the characteristics of waterscapes unique to Korean seowons. The conclusion of this study from the results of investigation and analysis of the location, water system, and design characteristics of 10 representative traditional seowons in China including Yuelu Seowon(嶽麓書院) conducted based on literature research and field observation is as follows. The water system of Chinese seowons is dualized into an inner and an outer water system, and in general, two and a maximum of three water bodies are superimposed on the outside. The locations of seowons are classified into five types: Four double-sided round water type sites, three converted face water type sites, one three-sided round water type site, a four-sided round water type, and a waterproofing type(依山傍水型). Therefore, compared to the typical Korean seowon facing water in the front and a mountain in the back(背山面水型), the Chinese seowons showed a highly hydrophilic property. The water shapes of the external water system were meandering(46.0%), mooring(36.0%), and broad and irregular(9.0%). In addition, water conception(水態) were streams(31.8%), rivers(27.3%), springs(13.6%), falls(9.1%), lakes(4.5%) and ponds(4.5%), in that order. As for waterscapes of the water system inside the seowon, there were seven in Akrok Seowon and four in Mansong Seowon, indicating a comparatively higher number of waterscapes. Since the 27 detailed waterscapes in 10 seowons that were the subject of the study were classified into six types including ponds and half-moon ponds, they appeared to be more diverse than the Korean seowon. It is noteworthy that in the interior waterscape of the traditional Chinese seowon, the ritualistic order, where at least one half-moon pond or square pond(方池) was arranged, is well displayed. In particular, the half-moon pond(伴池), which is difficult to find in Korean seowon, was found to be a representative waterscape element, accounting for 42.8%. If the square pond of Nanxi Seowon based on Zhu Xi's poem 「Gwanseoyugam(觀書有感)」 is also treated as a square-shaped half-moon pond, the proportion of half-moon ponds in the waterscape will be as high as 50%. The pond shapes consisted of 28% square, 24% each for free curve and round shape, 20% for semi-moon shape, and 3.8% for mountain stream type. This seems to differ greatly from the square-shaped Korean seowon. On the other hand, there were a total of 10 types of structures related to the waterscape inside the Chinese seowon: 11(26.8%) pavilion and bridge sites, five gate room sites(牌坊: 16.5%), four gate and tower sites(樓, 1.4%), two Jae sites(齋, 6.2%), and one site each(3.1%) of Heon(軒), Sa(祠), Dae(臺), and Gak(閣). In particular, the pavilions inside seowon were classified into three types: landscape pavilion(景觀亭 27.2%), tombstone pavilion(碑亭, 18.2%), and banquet pavilion(宴集亭, 54.5%). In general, it was confirmed that the half-moon pond with a pedestal bridge, and the pavilion were the major components with a high degree of connection that dominate the waterscape inside the Chinese seowon.

• Pediatric Gastroenterology, Hepatology & Nutrition
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• v.1 no.1
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• pp.56-78
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• 1998

Objective: Chronic hepatitis B infection (CHB) occurs in 6% to 10% of population in Korea. In ethinic communities where prevalence of chronic infection is high such as Korea, transmission of hepatitis B infection is either vertical (ie, by perinatal infection) or by close family contact (usually from mothers or siblings) during the first 5 years of life. The development of chronic hepatitis B infection is increasingly more common the earlier a person is exposed to the virus, particularly in fetal and neonatal life. And it progress to cirrhosis and hepatocellular carcinoma, especially in severe liver damage and perinatal infection. Histopathology of CHB is important when evaluating the final outcomes. A numerical scoring system which is a semiquantitatively assessed objective reproducible classification of chronic viral hepatitis, is a valuable tool for statistical analysis when predicting the outcome and evaluating antiviral and other therapies. In this study, a numerical scoring system (Ludwig system) was applied and compared with the conventional histological classification of De Groute. And the comparative analysis of cinical findings, family history, serology, and liver function test by histopathological findings in chronic hepatitis B of children was done. Methods: Ninety nine patients [mean age=9 years (range=17 months to 16 years)] with clinical, biochemical, serological and histological patterns of chronic HBV infection included in this study. Five of these children had hepatocelluar carcinoma. They were 83 male and 16 female children. They all underwent liver biopsies and histologic evaluation was performed by one pathologist. The biopsy specimens were classified, according to the standard criteria of De Groute as follows: normal, chronic lobular hepatitis (CLH), chronic persistent hepatitis (CPH), mild to severe chronic active hepatitis (CAH), or active cirrhosis, inactive cirrhosis, hepatocellular carcinoma (HCC). And the biopsy specimens were also assessed and scored semiquantitatively by the numerical scoring Ludwig system. Serum HBsAg, anti-HBs, HBeAg, anti-HBe, anti-HBc (IgG, IgM), and HDV were measured by radioimunoassays. Results: Male predominated in a proportion of 5.2:1 for all patients. Of 99 patients, 2 cases had normal, 2 cases had CLH, 22 cases had CPH, 40 cases had mild CAH, 19 cases had moderate CAH, 1 case had severe CAH, 7 cases had active cirrhosis, 1 case had inactive cirrhosis, and 5 cases had HCC. The mean age, sex distribution, symptoms, signs, and family history did not differ statistically among the different histologic groups. The numerical scoring system was correlated well with the conventional histological classification. The histological activity evaluated by both the conventional classification and the scoring system was more severe as the levels of serum aminotransferases were higher. In contrast, the levels of serum aminotransferases were not useful for predicting the degree of histologic activity because of its wide range overlapping. When the histological activity was more severe and especially the cirrhosis more progressing, the prothrombin time was more prolonged. The histological severity was inversely related with the duration of seroconversion of HBeAg. Conclusions: The histological activity could not be accurately predicted by clinical and biochemical findings, but by the proper histological classification of the numerical scoring system for the biopsy specimen. The numerical scoring system was correlated well with the conventional histological classification, and it seems to be a valuable tool for the statistical analysis when predicting the outcome and evaluating effects of antiviral and other therapies in chronic hepatitis B in children.

• Journal of the Korean Association of Geographic Information Studies
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• v.23 no.3
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• pp.100-119
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• 2020

During recent years, the heat environment and particulate matter (PM₁₀) have become serious environmental problems, as increases in heat waves due to rising global temperature interact with weakening atmospheric wind speeds. There exist urban heat islands and urban pollution islands with higher temperatures and air pollution concentrations than other areas. However, few studies have examined these issues together because of a lack of micro-scale data, which can be constructed from spatial data. Today, with the help of satellite images and big data collected by private telecommunication companies, detailed spatial distribution analyses are possible. Therefore, this study aimed to examine the spatial distribution patterns of urban heat islands and urban pollution islands within Busan Metropolitan City and to compare the distributions of the two phenomena. In this study, the land surface temperature of Landsat 8 satellite images, air temperature and particulate matter concentration data derived from a private automated meteorological observation system were gridded in 30m × 30m units, and spatial analysis was performed. Analysis showed that simultaneous zones of urban heat islands and urban pollution islands included some vulnerable residential areas and industrial areas. The political migration areas such as Seo-dong and Bansong-dong, representative vulnerable residential areas in Busan, were included in the co-occurring areas. The areas have a high density of buildings and poor ventilation, most of whose residents are vulnerable to heat waves and air pollution; thus, these areas must be considered first when establishing related policies. In the industrial areas included in the co-occurring areas, concrete or asphalt concrete-based impervious surfaces accounted for an absolute majority, and not only was the proportion of vegetation insufficient, there was also considerable vehicular traffic. A hot-spot analysis examining the reliability of the analysis confirmed that more than 99.96% of the regions corresponded to hot-spot areas at a 99% confidence level.

• The korean journal of orthodontics
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• v.36 no.1 s.114
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• pp.14-29
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• 2006

Developments in computer technology have made possible the 3-dimensional (3-D) evaluation of hard and soft tissues in orthodontic diagnosis, treatment planning and post-treatment results. In this study, Korean adults with normal occlusion (male 30, female 30) were scanned by a 3-D laser scanner, then 3-D facial images formed by the Rapidform 2004 program (Inus Technology Inc., Seoul, Korea.). Reference planes in the facial soft tissue 3-D images were established and a 3-D coordinate system (X axis-left/right, Y axis-superior/inferior, Z axis-anterior/posterior) was established by using the soft tissue nasion as the zero point. Twenty-nine measurement points were established on the 3-D image and 43 linear measurements, 8 angular measurements, 29 linear distance ratios were obtained. The results are as follows; there were significant differences between males and females in the nasofrontal angle $(male:\;142^{\circ},\;female:\;147^{\circ})$ and transverse nasal prominence $(male:\;112^{\circ},\;female:\;116^{\circ})$ (p<0.05). The transverse upper lip prominence was $107^{\circ}$ in males, $106^{\circ}$ in females and the transverse mandibular prominence was $76^{\circ}$ in both males and females. Li-Me' was 0.4 times the length of Go-Me'(mandibular body length) and the mouth height was also 0.4 times the width of the mouth width. The linear distance ratio from the coronal reference plane of FT, Zy, Pn, ULPm, Li, Me' was -1/-1/1/0.5/0.5/-0.6 respectively. The 3-D facial model of Korean adults with normal occlusion were be constructed using coordinate values and linear measurement values. These data may be used as a reference in 3-D diagnosis and treatment planning for malocclusion and dentofacial deformity patients and applied for 3-D analysis of facial soft tissue changes before and after orthodontic treatment and orthognathic surgery.

• Journal of the Korea Fashion and Costume Design Association
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• v.4 no.1
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• pp.111-130
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• 2002

This study performed a structural questionnaire survey and non-structural interview of the ladies apparel manufacturers in Daegu on the qualification for the employees, skills required for job performance, job training, automatic manufacturing systems, and the use of computer. The results are as follows. 1. Almost all of the apparel manufacturing systems were Pair System, except one Line System in one company. In terms of outsourcing, most of the manufacturers answered “yes,” and in 1998 the outsourcing process was sewing, but in the year 2002, outsourcing has been increased :12 manufacturers(57.1%) outsourcing most of the processes except patterning, 3(14.3%) outsourcing the finish of sewing. 2. The workforce of 1998 and that of 2002 shows a significant difference(P＜. 01) between office work and management. The number of office workers has decreased from 15 down to 5.3 people. On the other hand, that of the management has slightly increased from 5.3 to 9.2 people. The number of the manual workers has decreased from 32.2 to 28.7 people. And the number of tailoring and patterning workers has slightly decreased, but the number has increased in sewing from 3.7 to 7.0 people. 3. The wage of an employee shows a significant difference between a sewing assistant(P＜. 01) and a production manager(P＜. 05), and the wage of a sewing assistant, in particular, has slightly raised from ￦905,000 to ￦1,054,000. 4. The qualifications required of employees are “cooperative human relations”(30.8％), “diligence,” and “ability for job analysis”(26.9％), and “positive thinking” (15.4％) in 1998, and “ability for job analysis”(38.5％), “cooperative human relations”(34.6％), and “positive thinking” (15.4％) in 2002. The areas for job openings are significantly different(P＜. 01) depending on the year. Job openings in the design section has increased from 1(3.8％) to 16 manufacturers (61.5％), and decreased in tailoring section from 22(84.6％) to 2 manufacturers(7.7％). Job openings in the sewing section have increased form 2(7.7％) to 6 manufacturers (23.1％). In terms of sex of the employees, there is a significant difference(P＜. 001). 19 companies(73.1％) wanted “male” in 1998, but 8 companies(30.8％) answered that they want “female” and 17 companies(65.4％) answered that “it does not matter.” About the educational background, there was a significant difference between the years. The number of the companies that want junior college graduates with an associate degree has increased(15 companies(57.7％). There was a significant difference(P＜. 05) in major of the employee. The number of the companies that want fashion majors has increased from 5(19.2％) to 20(76.9％). 5. In terms of job skills required, there was no significant difference. In 1998, “production skills” (46.2％) and “ability for job analysis” (26.9％) were required, and in 2002, “ability for job analysis” (42.3％) and “emotional skills” (26.9％). 6. In regard to training for job skills, “fashion professional training” has slightly decreased from 65.4％ in 1998 to 46.2％ in 2002, however, “training for job analysis” has slightly increased from 30.8％ in 1998 to 46.2％ in 2002, which indicates the fact that “fashion professional training” and “ability for job analysis” have been emphasized. 7. The number of the manufacturers purchased apparel CAD has increased from 1(3.8％) to 3(11.5％), and the number of the manufacturers that have no plan for purchase has increased from 16(61.5％) in 1998 to 15(57.7％), still taking up a big proportion. 8. About the use of computers in manufacturing, there is a significant difference(P＜. 05). The number of the manufacturers using computer has increased from 5(19.2％) to 15(57.7％) and that of the manufacturers which do not use computers has decreased from 17(57.7％) to 8(30.8％). 9. In the interviews with the owners of the manufacturers, they pointed that schools should give more weight on practical training courses, the invitation of experts in the specific field, complex production systems, training courses for sewing, field trip courses, and furthering specialty education, personality and vocational education.

• KDI Journal of Economic Policy
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• v.13 no.1
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• pp.115-134
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• 1991

The role of pension plans in the macroeconomy has been a subject of much interest for some years. It has come to be recognized that pension plans may alter basic macroeconomic behavior patterns. The net effects on both savings and labor supply are thus matters for speculation. The aim of the present paper is to provide quantitative results which may be helpful in attaching orders of magnitude to some of the possible effects. We are not concerned with the providing empirical evidence relating to actual behavior, but rather with deriving the macroeconomic implications for a alternative possibilities. The pension plan interacts with the economy and the population in a number of ways. Demographic variables may thus affect both the economic burden of a national pension plan and the ability of the economy to sustain the burden. The tax transfer process associated with the pension plan may have implications for national patterns of saving and consumption. The existence of a pension plan may have implications also for the size of the labor force, inasmuch as labor force participation rates may be affected. Changes in technology and the associated changes in average productivity levels bear directly on the size of the national income, and hence on the pension contribution base. The vehicle for the analysis is a hypothetical but broadly realistic simulation model of an economic- demographic system into which is inserted a national pension plan. All income, expenditure, and related aggregates are in real terms. The economy is basically neoclassical; full employment is assumed, output is generated by a Cobb-Douglas production process, and factors receive their marginal products. The model was designed for use in computer simulation experiments. The simulation results suggest a number of general conclusions. These may be summarized as follows; - The introduction of a national pension plan (funded system) tends to increase the rate of economic growth until cost exceeds revenue. - A scheme with full wage indexing is more expensive than one in which pensions are merely price indexed. - The rate of technical progress is not a critical element in determining the economic burden of the pension scheme. - Raising the rate of benefits affects its economic burden, and raising the age of eligibility may decrease the burden substantially. - The level of fertility is an element in determining the long-run burden. A sustained low fertility rate increases the proportion of the aged in total population and increases the burden of the pension plan. High fertility has inverse effects.