• East Asian Journal of Business Economics (EAJBE)
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• v.4 no.4
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• pp.1-7
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• 2016

This paper has studied the impacts of the exchange rate, government debt as a percent of GDP and other relevant macroeconomic variables on aggregate output in the Philippines. A simultaneous-equation model consisting of aggregate demand and short-run aggregate supply is applied. The dummy variable technique is employed to detect whether the slope and intercept of the real effective exchange rate may have changed. Real depreciation during 1998.Q1 - 2006.Q3, real appreciation during 2006.Q4 - 2016.Q1, a lower domestic debt as a percent of GDP, a lower real interest rate, a higher stock price or a higher lagged real oil price would raise aggregate output. Recent trends of real peso appreciation, declining domestic debt as a percent of GDP, lower real interest rates, and rising stock prices are in line with the empirical results and would promote economic growth. The authorities may need to continue to pursue fiscal prudence and maintain a stronger peso as the positive effect of real appreciation dominates its negative effect in recent years.

• Journal of KIBIM
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• v.11 no.2
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• pp.43-53
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• 2021

The 'public agency oil joint purchase system' was introduced to lower public sector oil prices and contribute to the stability of the overall consumer oil market. The present study used spatial regression to analyze the factors affecting domestic gasoline price, focusing on the impact of potential implicit collusion among gas stations in determining domestic gasoline prices. Also, this study investigated the effect the location characteristics of the market convention gas stations and government offices on the pressure of price competition in the market and the gasoline price at general gas stations. To summarize the results of the spatial lag model (SLM), the individual characteristics of gas stations such as convenience stores (+), self-fuelling (-), commercial areas (+), subway stations (+), population density (-), and sales (-) are correlated to gasoline prices at gas stations, and the institutional location factors of gas stations (+) affected the average of 9 won per liter, 11 won per liter. In order to solve these problems, the establishment of a monitoring system reflecting the location characteristics of the region and the ongoing review of the system should be carried out. In addition, separate, expanded and promotional measures should be prepared for the convenience of general and public oil buyers.

• Journal of Distribution Science
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• v.16 no.4
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• pp.83-88
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• 2018

Purpose - This study conducts an empirical analysis on gasoline pricing of Korean retail gas stations focusing on spatial effects. Unlike previous studies, the study uses an official land price for a proxy of the importance of location, and also allows the spatial effects from other competing gas stations as well. Research design, data, and methodology - In collection of data, we obtain more abundant data than those of previous studies. The gasoline prices used in the study are 909,084 observations as daily data from January 1 to July 31 of the year 2016. A proxy for the land price is collected by linking official public land price data with address information on each gas station. For the estimation, the study employs the Panel Spatial Dubin Model to make the best use of the collected location information. Results - As expected, spatial properties of gas stations have significant effects on the gasoline price. As the price per square meter increases by 100 thousands won, the price of gasoline rises 9 won per liter. Among other characteristics, the price increases by 16 won per liter if the station has a convenience store, and about 5 won if it has a car wash service. Gasoline price in Singapore accounted for 26% of variations in domestic gasoline prices. SK Energy and GS Caltex are the top brands in terms of price. The study also finds prices and other important properties of competing gas stations have significant effects on others' prices. Prices of competing gas station have a positive relationship with those of others. If a competing gas station raises the price, the gas station also raises the price, and lowering the price lower the price. Among brands, GS Caltex has the greatest downward pressure on nearby gas stations. Conclusions - The study confirms that location value of gas stations affect their gasoline prices, and the prices of the competing gas stations also have a significant effects on their prices. It suggests that the prices in the competing retail areas tend to be synchronized with each other.

• Environmental and Resource Economics Review
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• v.21 no.1
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• pp.69-92
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• 2012

This paper analyzed price asymmetry of domestic petroleum products by distribution stage. Analyzing the asymmetry by distribution stage, we can investigate the gap between analysis results and consumers' perception. For the first stage, we analyzed asymmetries between retail prices including tax and the spot prices of crude oil. The results show that retail price increases more quickly in response to the crude oil prices rise than to the crude oil prices fall as consumers' perception. For the second stage, we analyzed asymmetry of international petroleum product prices in Korean Won with the change in the crude oil spot prices. The results show that international petroleum product prices increase higher in response to the crude oil prices increase than to the crude oil prices decrease. For the final stage, we examined the asymmetry of wholesale price and retail price with the change in the international petroleum product prices in Korean Won. The results show that wholesale prices increase more quickly in response to the crude oil prices rise than to the international petroleum product prices fall. The retail prices, however, decrease more quickly in response to the crude oil prices fall than to the international petroleum product prices rise.

• Environmental and Resource Economics Review
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• v.20 no.4
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• pp.663-688
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• 2011

Since the liberalization of petroleum product prices in 1997, there has been persistent suspicion with regard to asymmetry in the movement of petroleum product prices in Korea. In particular, academics and consumer groups suggest that prices decided by refining companies and gas stations have moved asymmetrically compared with international petroleum product prices. The primary aim of this study is to determine, using the Error Correction Model, to perform multi-country asymmetry analysis including the United States, the United Kingdom, Germany, France, Italy and Japan. We shows that comparison of domestic prices with international prices in the six countries mentioned above revealed a fairly low level of asymmetry in those countries, although some asymmetry was found in some countries at various times within the period of analysis. To explain the different degrees of asymmetry between countries, this study looked at asymmetry in the United States, Germany and Italy and sought correlations between each country's oil industry structure and its level of competition.

• Transactions of the Korean hydrogen and new energy society
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• v.19 no.4
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• pp.322-330
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• 2008

This paper deals with an economic evaluation of domestic photobiological hydrogen production. We evaluate the economic feasibility of domestic photobiological hydrogen production utilizing green algae and cyanobacteria. In addition, we make some sensitivity analysis of hydrogen production prices by changing the values of input factors such as the price of a photo-bioreactor and the value of solar to hydrogen efficiency. The estimated hydrogen production price of the two-step indirect biophotolysis was 12,099won/kg$H_2$. It is expected that the hydrogen production price by the two-step indirect biophotolysis can be reduced to 2,143won/kg$H_2$ if the solar to hydrogen efficiency is increased to 10% and the price of a photo-bioreactor is decreased to $25/$m^2$. The two-step indirect biophotolysis is evaluated as uneconomical at this time, and we need to enhance the solar to hydrogen efficiency and to reduce the prices of the photo-bioreactor and system facilities.

• Journal of Service Research and Studies
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• v.13 no.3
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• pp.105-126
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• 2023

The domestic used car market continues to grow along with the used car online platform service. The used car online platform service discloses vehicle specifications, accident history, inspection history, and detailed options to service consumers. Most of the preceding studies were predictions of used car prices using vehicle specifications and some options for vehicles. As a result of the study, it was confirmed that there was a nonlinear relationship between used car prices and some specification variables. Accordingly, the researchers tried to solve the nonlinear problem by executing a Machine Learning model. In common, the Regression based Machine Learning model had the advantage of knowing the actual influence and direction of variables, but there was a disadvantage of low Cost Function figures compared to the Decision Tree based Machine Learning model. This study attempted to predict used car prices of six domestic brands by utilizing both vehicle specifications and vehicle options. Through this, we tried to collect the advantages of the two types of Machine Learning models. To this end, we sequentially conducted a regression based Machine Learning model and a decision tree based Machine Learning model. As a result of the analysis, the practical influence and direction of each brand variable, and the best tree based Machine Learning model were selected. The implications of this study are as follows. It will help buyers and sellers who use used car online platform services to predict approximate used car prices. And it is hoped that it will help solve the problem caused by information inequality among users of the used car online platform service.

• Journal of the Korea Institute of Building Construction
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• v.24 no.2
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• pp.273-284
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• 2024

This study investigates the impact of international oil price fluctuations on overseas construction orders secured by domestic and foreign companies. The analysis employs statistical data spanning the past 20 years, encompassing international oil prices, overseas construction orders from domestic firms, and new overseas construction orders from the top 250 global construction companies. The correlation between these variables is assessed using correlation coefficients(R), determination coefficients(R²), and p-values. The results indicate a strong positive correlation between international oil prices and overseas construction orders. The correlation coefficient between domestic overseas construction orders and oil prices is found to be 0.8 or higher, signifying a significant influence. Similarly, a high correlation coefficient of 0.76 is observed between oil prices and new orders from leading global construction companies. Further analysis reveals a particularly strong correlation between oil prices and overseas construction orders in Asia and the Middle East, potentially due to the prevalence of oil-related projects in these regions. Additionally, a high correlation is observed between oil prices and orders for industrial facilities compared to architectural projects. This suggests an increase in plant construction volumes driven by fluctuations in oil prices. Based on these findings, the study proposes an entry strategy for navigating oil price volatility and maintaining competitiveness in the overseas construction market. Key recommendations include diversifying project locations and supplier bases; utilizing hedging techniques for exchange rate risk management, adapting to local infrastructure and market conditions, establishing local partnerships and securing skilled local labor, implementing technological innovations and digitization at construction sites to enhance productivity and cost reduction The insights gained from this study, coupled with the proposed overseas expansion strategies, offer valuable guidance for mitigating risks in the global construction market and fostering resilience in response to international oil price fluctuations. This approach is expected to strengthen the competitiveness of domestic and foreign construction firms seeking success in the international arena.

• Environmental and Resource Economics Review
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• v.24 no.2
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• pp.311-342
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• 2015

We evaluate two main rationales of massive policy intervention of Lee Administration in the Korean transportation fuel market: high market share of domestic refineries, perceived by the Administration as the result of high market concentration, and asymmetry in price adjustment, perceived as the result of collusion. Domestic refineries, huge in capacity and located at seaports, maintain international competitiveness in price. Considering market openness offering preferential treatment to importers, they set domestic prices competitively on the basis of MOPS prices. Yet, the price competitiveness of domestic refineries is so high that they are able to sustain high market share. We confirm that the Korean before-tax consumer prices of gasoline and diesel are lower than Japan's and the weighted averages of 27 EU countries by as much as 159KRW and 21KRW per liter in the case of gasoline and 170KRW and 63KRW in the case of diesel. Price asymmetry is caused by diverse economic and managerial reasons and, as FTC (2005) states, price asymmetry does not immediately imply exercise of market power or collusion. We analyzed price asymmetry in Korea, Japan and 14 EU countries, and found asymmetry in Korea and 11 EU countries in the case of gasoline and in Korea and 8 EU countries in the case of diesel.

• 한국지구물리탐사학회:학술대회논문집
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• 2003.11a
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• pp.669-675
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• 2003

This paper examines structural breaks and asymmetries of prices of four domestic petroleum products, i.e., gasoline, kerosene, diesel, and bunker-C, following the changes in the pricing policies pertaining to petroleum products in Korea from the government-controlled pricing system to the market pricing system. We use the monthly wholesale market price data for the sample period between July 1988 and December 2001. Using the four methods: the Chow test, the CUSUM/CUSUMQ tests, the Bayesian approach and the Dufour test, the structural behaviors of the petroleum product prices are examined. We found that structural change occurred in all petroleum products, with the exception of Kerosene, at the point of pricing policy change from government-controlled to the spot-price related pricing system. We, also conducted asymmetric analysis using the Borenstein, Cameron, and Gilbert (1997)'s model and found evidences of price asymmetry for all four product types, but in different pattern for each product.