• Journal of the military operations research society of Korea
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• v.27 no.1
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• pp.28-38
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• 2001

A transportation problem amy have multiple optimal solutions, if an optimal solution to the problem is degenerate. This study derives a condition, under which multiple degenerate optimal solutions exist, fro ma current degenerate optimal transportation tableau by utilizing the homogeneous equation obtained from the closed loops connecting degenerate basic variable and non-basic variables, and discusses a method of generating alternative degenerate optimal solutions and their associated transportation tableaus. Each degenerate optimal solution may not have the same range of feasibility in sensitivity analysis on supply and demand quantity due to different set of shadow prices which multiple degenerate solution have.

• Journal of Environmental Policy
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• v.8 no.3
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• pp.115-138
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• 2009

The purpose of this paper is to clarify the main components of economic growth and the effects of environmental factorson productivity by comparing traditional productivity growth and environmentally-adjusted productivity growth in 28 Chinese regions based on growth accounting analysis. To do this, we measured the shadow prices of SOx for the 28 Chinese regions. This study found that the annualized growth rate of output in the 28 Chinese regions was almost 10.07% for 1999-2005, though the growth rate was higher in the eastern region than in the middle and western regions. The average traditional productivity was 3.58%, again with the eastern region showing the highest level. The average environmentally-adjusted productivity of the three regions was about 3.56%, which is similar to the level of traditional productivity. This implies that activities regarding pollution reductions in the 28 Chinese regions have not been practiced, even though environmental regulations have been strengthened. Therefore, the regional and central governments should strengthen environmental regulations and strictly enforce them.

• Environmental and Resource Economics Review
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• v.15 no.4
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• pp.673-692
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• 2006

In order to test for the dynamic optimality condition for the use of nonrenewable resource, it is necessary to estimate the shadow value of the resource in situ. In the previous literatures, a time series for in situ price has been derived either as the difference between marginal revenue and marginal cost or by differentiating with respect to the quantity of ore extracted the restricted cost function in which the quantity of ore is quasi-fixed. However, not only inconsistent estimates are likely to be generated due to the nonmalleability of capital, but the estimate of marginal revenue will be affected by market power. Since firms will likely fail to minimize the cost of the reproducible inputs subject to market prices under realistic circumstances where imperfect factor markets, strikes, or government regulations are present, the shadow in situ values obtained by estimating the restricted cost function can be biased. This paper provides a valid methodology for checking the dynamic optimality condition for a nonrenewable resource by using the input distance function. Our methodology has some advantages over previous ones: only data on quantities of inputs and outputs are required; nor is the maintained hypothesis of cost minimization required; adoption of linear programming enables us to circumvent autocorrelated errors problem caused by use of time series or panel data. The dynamic optimality condition for domestic coal mining does not hold for constant discount rates ranging from 2 to 20 percent over the period 1970~1993. The dynamic optimality condition also does not hold for variable rates ranging from fourth to four times the real interest rate.

• Korean Journal of Agricultural Science
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• v.24 no.1
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• pp.63-74
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• 1997

This study is aimed at identifying the value of marginal products(VMP) of agricultural labor, capital and land. The resources are the major portion of input costs of agricultural projects. To appraise economic feasibility of agricultural projects, the real value of the resources would be estimated by VMP of the inputs rather than by distorted actual market prices such as rural wages, rent and interest. To convert the market wage rate into shadow wage rate, covertion factor of 0.90 would be appicable based on the study results. To evaluate the right of way and compensation, VMP of land is recommendable to apply in land pricing rather than actural land rent prevailing in rural area which has been underrated on account of labor shortage and difficulty of farming. Discount rate as a opportunity cost of capital should be applied 7-8% considering the VMP of capital and interest rate of foreign loan from IBRD and ADB. For the successful appraisal of the agricultural projects, the recommendation of this study would be applied in the future.

• The Journal of Information Systems
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• v.5
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• pp.21-41
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• 1996

Linear programming has become an important tool in decision-making of modern business management. This remarkable growth can be traced to the pioneering efforts of many individuals and research organizations. The popular using of personal computers make it very easy to process those complicated linear programming models. Furthermore advanced linear programming software packages assist us to solve L.P. models without any difficult process. Even though the advanced L.P. professional packages, the needs of more detailed deterministic elements for business decisions have forced us to apply dynamic approaches for more resonable solutions. For the purpose of these problems applying to the "Mathematica" packages which is composed of mathematic tools, the simplex processes show us the flexible and dynamic decision elements included to any other professional linear programming tools. Especially we need proper dynamic variables to analyze the shadow prices step by step. And applying SAS(Statistical Analysis System) packages to the L.P. problems, it is also one of the best way to get good solution. On the way trying to the other L.P. packages which are prepared for Spreadsheets i.e., MS-Excel, Lotus-123, Quatro etc. can be applied to linear programming models. But they are not so much useful for the problems. Calculating simplex tableau is an important method to interpret L.P. format for the optimal solution. In this paper we find out that the more detailed and efficient techniques to interpret useful software of mathematica and SAS for business decision making of linear programming. So it needs to apply more dynamic technique of using of Mathematica and SAS multiple software to get more efficient deterministic factors for the sophiscated L.P. solutions.

• Journal of Ginseng Research
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• v.30 no.3
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• pp.172-180
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• 2006

The purpose of this study is classifying types of American ginseng and estimating their production cost and revenue by the types. Usually, the American ginseng can be classified as 4 different types; wild ginseng(WG), wild simulated ginseng(WSG), woods grown ginseng(WGG), and field cultivated ginseng(FCG). This paper estimates costs and benefits for FCG, WGG, and WSG per acre. The WGG & WSG are produced under the tree at mountain while the FCG is produced at large scale farm with machinery. Annual profit for the FCG is $2,222 while that of the WGG and the WSG are $2,759 and $3,799 per acre. Although quantity produced per acre for the WGG and WSG(600lbs and 160lbs) are much smaller than that of the FCG(3,000lbs), prices per pound for the WGG and WSG($125, 375$) are higher than that of the FCG($24). In addition, production costs for the WGG and WSG are lower than that of the FCG because of the costs for seeds, shadow facility, and chemicals are different by the types of production.

• Environmental and Resource Economics Review
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• v.28 no.1
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• pp.61-93
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• 2019

This study is to apply Hedonic Price Method in analyzing residents' preferences for three types of urban green space (UGS, rivers, urban parks, and forests) near the apartment complexes in Seoul. Based on hedonic price function estimation results, residents in Seoul preferred for the urban amenity that was provided by the view and accessibility (in terms of both within 10 minutes and distance) of rivers and urban parks near the apartment complexes, but not forests. The annual benefits calculated using the shadow prices are about 550~600 thousand won for the urban park views and about 800 thousand won for the accessibility, which is 2-3 times higher than river views and accessibility. On the other hand, forest views and accessibility did not have significant effects on apartment prices, except the view of Bukhan mountain for the residents of Gangbuk area. Based on the empirical results, Seoul residents' preferences for urban parks would have important implications for the urban park sunset program that will be initiated from July 2020.

• Environmental and Resource Economics Review
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• v.22 no.3
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• pp.459-479
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• 2013

To assess the feasibility of 'low carbon, sustainable growth' policy pursued of the Chinese government, this paper first measures technical efficiency, $CO_2$ shadow prices, and indirect Morishima elasticity of substitution between capital and energy for 24 of manufacturing sectors in Beijing and Chongqing, in which China launched pilot carbon emissions trading scheme, by estimating the input distance function. Based on these results, then the potential for $CO_2$ reduction, cost savings from emissions trading, and the effectiveness of capital investment in reducing $CO_2$ are compared across industries and provinces. In 2010, manufacturing industries in Beijing and Chongqing could potentially reduce the largest $CO_2$ emissions, amounting 5.2 and 17 million tons, respectively, by achieving 100% technical efficiency. While, on average, Chongqing has a comparative advantage in the cost savings from carbon trading over Beijing, Beijing is more likely to reduce $CO_2$ by expanding capital investment.

• Korean Journal of Agricultural Science
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• v.29 no.1
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• pp.66-83
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• 2002

The economic feasibility analysis including benefit-cost ratio and internal rate of return of a land consolidation and on-farm development project was mainly depended upon the direct benefits and costs arising during project life. Therefore the projects were neglected in allocating the government's financial funds and loans on account of the low economic rate of return of the project. Accordingly the extended benefit-cost analysis method should be introduced and adapted to cover not only the benefit s such as non-market values of environmental and food security fun ct ions of the project but also market values of the project outputs. The main purposes of this study are (1) to prepare a guide line for economic feasibility analysis based on the IBRD and ADB guidelines, (2) to estimate the benefits from productivity increase, labor saving, savings of O&M cost of farm mechanization and project facilities, savings of farmer's burden for their public health, increasing environmental and public functional value of paddy fields, improving food security condition and formation of peaceful and uncontroversial rural society by implementing the land consolidation and on-farm development, (3) to introduce the newly adapted analytical method as the extended benefit cost analysis which could make possible to be included the values of non-market goods such as the food security and the environmental public function of paddy fields. To carry out this study, the existing publications on the guidelines for economic agricultural projects were reviewed and consultation was made with a For the post evaluation study of the land consolidation and on-farm development project, field survey in Jigok and other comparative area were made to get available information. According to the project completion report, Jigok land consolidation and on-farm development project has 55ha of benefit area out of 69ha of gross area. The project was started in November 11th, 2000 and completed october 30th, 2001. The total project costs were amounted to 2,548 million won and the annual project benefits were estimated at 335million won evaluated by domestic market prices. The ERR(Economic Rate of Return) and SRR(Social Rate of Return) of the project based on the shadow pricing system were estimated at 4.4% and 16% respectively. On the other hand, the ERR and SRR based on the domestic market value system were amounted to 6.37% and 14.62%. In conclusion, Korean land consolidation and on-farm development projects have not carried out from the view point of economic rate of return under shadow pricing system but from the view point of domestic pricing system. For the future feasibility studies on land consolidation projects have to be carried out including the non-market values as environmental and food security function of the projects.

• Proceedings of the Korea Technology Innovation Society Conference
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• 2001.11a
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• pp.169-186
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• 2001

The researches about the general flow of new product development process was achieved in various field. But there was little discussion about the methodologies and tools used in that process. So we suggest new DEA model as the methodology that determines sustainable price and quality attributes and this can substitute econometric hedonic methodology. To make smooth surface composed of quality attributes and price, we use QC-DEA model. Additionally we make AR-QC DEA model by introducing AR to reflect consumer perceptions on quality attributes. AR-QC DEA overcomes the limits of parametric methodology and represents product-specific shadow prices, so it is possible to supply the information about quality attributes and price combination in new product development process and to simulate easily whether new product can exist in the market. Finally by empirical research on notebook computer we can show that AR-QC DEA has the ability to explain market change.