• The Transactions of The Korean Institute of Electrical Engineers
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• v.66 no.1
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• pp.23-26
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• 2017

Social Welfare is useful concept for evaluating the effectiveness of an economic policy in micro economics. This paper focuses on Social Welfare(SW) of electricity market incorporating demand response(DR). Competition between DR and generation company is modeled as a simple bid function. DR function can be considered as an negative generation(called Negawatt) and as an element of modified demand function. These two approaches result in the same demand reduction, generation power, and the market price. However, SW in the modified demand function approach is not identical to SW in the Negawatt approach. It makes the numerical index of DR effectiveness less persuasive. This paper proposes modified definition of SW in the demand function approach. The proposed definition of SW leads the DR effectiveness index to be identical to that in the Negawatt approach.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.57 no.1
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• pp.20-24
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• 2008

A bid-based pool(BBP) model is representative of energy market structure in a number of restructured electricity markets. Supply function equilibrium(SFE) models of interaction better match what is explicitly required in the bid formats of typical BBP markets. Many of the results in the SFE literature involve restrictive parametrization of the bid cost functions. In the SFE models, two parameters, intercept and slope, are available for strategic bidding. This paper addresses the realistic competition format that players can choose both parameters arbitrarily. In a fixed demand function, equilibrium conditions for generation company's profit maximization have a degree of freedom, which induces multi-equilibrium. So it is hard to choose a convergent equilibrium. However, consideration of stochastic demand function makes the equilibrium conditions independent each other based on the amount of variance of stochastic demand function. This variance provides the bidding players with incentives to change the slope parameter from an equilibrium for a fixed demand function until the slope parameter equilibrium.

• Journal of Biosystems Engineering
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• v.29 no.5 s.106
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• pp.441-450
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• 2004

This study was performed to estimate mid and long term demands of a tractor, a rice transplanter, a combine and a grain dryer by using logistic curve function and Markov chain model. Field survey was done to decide some parameters far logistic curve function and Markov chain model. Ceiling values of tractor and combine fer logistic curve function analysis were 209,280 and 85,607 respectively. Based on logistic curve function analysis, total number of tractors increased slightly during the period analysed. New demand for combine was found to be zero. Markov chain analysis was carried out with 2 scenarios. With the scenario 1(rice price $10\%$ down and current supporting policy by government), new demand for tractor was decreased gradually up to 700 unit in the year 2012. For combine, new demand was zero. Regardless of scenarios, the replacement demand was increased slightly after 2003. After then, the replacement demand is decreased after the certain time. Two analysis of logistic owe function and Markov chain model showed the similar trend in increase and decrease for total number of tractors and combines. However, the difference in numbers of tractors and combines between the results from 2 analysis got bigger as the time passed.

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.52 no.2
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• pp.107-113
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• 2003

In a deregulated electric power market, a demand function to consider the characteristics of electric power consumers should be required. It is essential that the optimal power flow algorithm with object function of social welfare maximization using the demand function for a competitive electric power market is applied to resolve in a point of economic benefits as well as the security of power systems. Therefore, in this paper, we implement the optimization problem based on linear programming to consider the characteristics of electric power consumers using the demand function and analyze not only the nodal cost for generations and demands but also the variation of demands as a function of the characteristics of electric power consumers through numerical studies.

• Environmental and Resource Economics Review
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• v.19 no.3
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• pp.633-658
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• 2010

In this paper, we estimate the Translog cost function in Korean manufacturing, using capital (K), labor (L), material (M), electricity (E), fuel (F) data over the period from 1970 to 2005. Especially, this paper investigates the impact of imposing concavity in the estimation of a Translog cost function. Although the value of log-likelihood is somewhat reduced in a concavity imposed function rather than a function which is not, a concavity imposed function satisfies regularity conditions (monotonicity, positivity, concavity) at all data points. We also calculate price elasticities using a concavity imposed Translog cost function. Electricity complements capital so electricity demand increases as capital demand increases. Meanwhile, electricity substitutes labor, fuel, and material. These results show that Korean manufacturing experienced a structural change of increase in electricity demand.

• IE interfaces
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• v.16 no.4
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• pp.400-410
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• 2003

Most of the demand forecasting which have been studied is about long-term time series over 15 years demand forecasting. In this paper, we set up the most optimal ARIMA model for the short-term time series demand forecasting and suggest demand forecasting system for short-term time series by appraising suitability and predictability. We are going to use the univariate ARIMA model in parallel with the bivariate transfer function model to improve the accuracy of forecasting. We also analyze the effect of advertisement cost, scale of branch stores, and number of clerk on the establishment of marketing policy by applying statistical methods. After then we are going to show you customer's needs, which are number of buying products. We have applied this method to forecast the annual sales of refrigerator in four branch stores of A company.

• The Journal of Fisheries Business Administration
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• v.42 no.2
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• pp.69-83
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• 2011

This paper estimates demand functions of oyster as Kimchi's ingredients of capital area, other areas excluding a capital area, and a whole area in Korea to forecast its demand quantities in 2011~2015. To estimate oyster demand function, this paper uses pooled data produced from Korean housewives over 30 years old in 2009 and 2010. Also, this paper adopts several econometrics methods such as Ordinary Least Squares and Feasible Generalized Least Squares. First of all, to choose appropriate variables of oyster demand functions by area, this paper carries out model's specification with joint significance test. Secondly, to remedy heteroscedasticity with pooled data, this paper attempts residual plotting between estimated squared residuals and estimated dependent variable and then, if it happens, undertakes White test to care the problem. Thirdly, to test multicollinearity between variables with pooled data, this paper checks correlations between variables by area. In this analysis, oyster demand functions of a capital area and a whole area need price of the oyster, price of the cabbage for Gimjang, and income as independent variables. The function on other areas excluding a capital area only needs price of the oyster and income as ones. In addition, the oyster demand function of a whole area needed White test to care a heteroscedasticity problem and demand functions of the other two regions did not have the problem. Thus, first model was estimated by FGLS and second two models were carried out by OLS. The results suggest that oyster demand quantities per a household as Kimchi's ingredients are going to slightly increase in a capital area and a whole area, but slightly decrease in other areas excluding a capital area in 2011~2015. Also, the results show that oyster demand quantities as kimchi's ingredients for total household targeting housewives over 30 years old are going to slightly increase in three areas in 2011~2015.

• Journal of Agricultural Extension & Community Development
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• v.23 no.4
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• pp.387-403
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• 2016

This paper estimated the demand function of the cuts of Korean beef and imported beef by using the consumer panel and retail price data from the Korean Agro-Fisheries & Food Trade Corporation, and the weather data from the Korea Meteorological Administration with an log-log model and AIDS model. The results show that the preference for cuts of beef used for cooked soup, steamed dish, Changjorim are more elastic than cuts used for roasting when there is a change in price and income in the estimation of demand function of Korean beef. On the other hand, consumers respond sensitively with the demand of roasting part compared to steamed dish, Changjorim, soup when there is change in price and income in the estimation of demand function of imported beef. The results indicate that there is substitutional relationship between Korean beef and imported beef, because Korean beef cuts used for roasting can substitute for imported roasting part and the same relationship applies to steamed dish, soup, Changjorim. In addition, family number, family member, husband job, purchasing place, means of transportation, purchasing time, weather are statistically significant.

• Proceedings of the KIEE Conference
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• 2005.11b
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• pp.168-170
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• 2005

At present Cournot model is one of the most commonly used theories to analyze the gaming situation in oligopoly market. But there exist several problems to apply this model to electricity market. The representative one is to obtain the inverse demand curve able to be induced from the relationship between market price and demand response. In Cournot model, each player offers their generation quantity to accomplish maximum profit, which is accomplished by reducing their quantity compared with available total capacity. As stated above, to obtain the probable Cournot equilibrium to reflect real market situation, we have to induce the correct demand function first of all. Usually the correlation between price and demand appears on the long-term basis through the statistical data analysis (for example, regression analysis) or by investigating consumer utility functions of several consumer groups classified as residential, industrial, and commercial. However, the elasticity has a tendency to change continuously according to the total market demand size or the level of market price. Therefore it should be updated as trading period passes by. In this paper we propose a method for inducing and updating this price elasticity of demand function for more realistic market equilibrium

• KSII Transactions on Internet and Information Systems (TIIS)
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• v.9 no.8
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• pp.3249-3257
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• 2015

The smart convergence environment, in which all industries are converged around ICT infrastructure -- with the eventual inclusion of both industry and culture -- looms. With the emergence of new convergence industries such as smart medicine, smart cities, and smart automobiles, the ICT infrastructure is recognized as the foundation of the overall economy. As such, the importance of the next generation of information and communication construction businesses, which constructs the ICT infrastructure, is highlighted under the smart convergence paradigm environment; various multilateral policies to foster the information and communication construction business -- led by the Ministry of Science, ICT, and Future Planning -- are being implemented. Like other infrastructure industries, however, the estimation of the demand function of the information and communication construction business overall is essential for effectively establishing promotional policies for information and communication construction businesses. However, there has been no study which theoretically estimates the market demand function in the information and communication construction business thus far. The pursuit of a creative economy is a national agenda, as the significance of accelerating the ICT infrastructure is emphasized. Therefore, this paper seeks to estimate quantitatively the demand function in the information and communication construction business using empirical data and a statistical model and then to present policy implications which will aid the development of the information and communication construction business.