• Journal of Distribution Science
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• v.11 no.10
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• pp.55-62
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• 2013

Purpose - The purpose of this study is to suggest a risk factor that significantly explains foreign currency risk premia. In recent years, some studies have found that the performance of the simultaneous consumption risk model improves considerably when tested on foreign currency portfolios, which are constructed based on the international interest rates differentials. However, this paper focuses on the long-run consumption risk factor. In our empirical research, we found that the real excess returns of high interest rate currency portfolios depreciate on average, when the future American long-run consumption growth rate appears low. This makes the high interest rate currency portfolios have relatively high risk premia. Meanwhile, the real excess returns of low interest rate currency portfolios appreciate on average, under the same conditions, which results in relatively low risk premia for these portfolios. Therefore, this long-run consumption risk factor might explain why low interest rate currencies do not appreciate as much as the interest rate differential, and why high interest rate currencies do not depreciate as much as the interest rate differential. Research design, data, methodology - In our explanation, we provide new evidence on the success of long-run consumption risks in currency risk premia by focusing on the long-run consumption risks borne by American representative investors. To uncover the hidden link between exchange rates and long-run consumption growth, we set the eight currency portfolios as our basic assets, which have been built based on the foreign interest rates of eighty countries. As these eight currency portfolios are rebalanced every year, the first group always contains the lowest interest rate currencies, and the last group contains the highest interest rate currencies. Against these basic eight currency portfolios, we estimate the long-run consumption risk model. We use recursive utility framework and the stochastic discount factor that depends on the present value of expected future consumption growth rates. We find that our model is optimized in the two-year period of constructing the durable consumption expectation factor. Our main results surprisingly surpass the performance of the existing benchmark simultaneous consumption model in terms of R², relatively risk aversion coefficient γ, and p-value of J-test. Results - The performance of our model is superior. R², relatively risk aversion coefficient γ, and p-value of J-test of our long-run durable consumption model are 90%, 93%, and 65.5%, respectively, while those of EZ-DCAPM are 87%, 113%, and 62.8%, respectively. Thus, we can speculate that the risk premia in foreign currency markets have been determined by the long-run consumption risk. Conclusions - The aggregate long-run consumption growth risk explains a large part of the average change in the real excess returns of foreign currency portfolios. The real excess returns of high interest rate currency portfolios depreciate on average when American long-run consumption growth rate is low, and the real excess returns of low interest rate currency portfolios appreciate under the same conditions. Thus, the low interest rate currency portfolios allow investors to hedge against aggregate long-run consumption growth risk.

• Journal of the Korean Operations Research and Management Science Society
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• v.14 no.2
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• pp.43-52
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• 1989

The present paper analyzes performance of a variant of rate-of-return regulation called the ex-post adjustment regulation put in effect in the Korean petroleum refinery sector. Unlike the traditional rate-of-return regulation on a monopoly, the regulation is first for the oligopolistic industry as a whole and second of the ex post nature. Under the regulation, at the end of each year, each firm is responsible to pay a certain portion of the excess of the total realized profits in the industry over the allowed profits. It is shown that if the excess profits are completely collected(including the interests), the social optimum can be realized. When only a portion of the excess profits can be collected, the regulation generally increases consumer surplus by making the firms more competitive. Each individual firm's production under the regulation depends on whether the firm's output is regarded as a strategic substitute or complement of other firms'output.

• Journal of The Korean Astronomical Society
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• v.39 no.1
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• pp.19-24
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• 2006

We carried out CO survey toward IR-excess clouds using SRAO 6-m telescope in search of molecular $H_2$. These clouds, which show far-infrared excess over what is expected from HI column density, are considered to be candidates of molecular clouds. In order to find new high Galactic latitude clouds, we made mapping observations for 14 IR-excess clouds selected from Reach et al.(1998) in $^{12}CO$ J = 1 - 0 line, supplementing the similar survey in southern hemisphere (Onishi et al. 2001). $^{12}CO$ emission is detected from three IR-excess clouds among 14 objects. Three newly detected clouds exhibit somewhat clumpy morphology and column densities amount to ${\sim}10^{21}\;cm^{-2}$. One of three clouds, DIR120-28, show discrepancy between IR-excess center and CO emission center. It seems that IR-excess may not be an effective tracer of molecular gas. Instead, optical depth$(\tau)$ excess, i.e., IR-excess corrected for temperature dependence, may be more effective tracer of molecular clouds, since, by combining statistics from both hemispheres, we found that the detection rate is higher for IR-excess clouds with lower dust temperature.

• Korean Journal of Veterinary Research
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• v.35 no.3
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• pp.631-633
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• 1995

70 cows with abomasal torsion and 71 cows with right-side displacement of the abomasum were examined to determine whether the preoperative blood base-excess concentration could be used both as a prognostic indicator for postoperative recovery in cows with abomasal torsion and as an aid in differentiating between abomasal torsion and right-side displacement of the abomasum. The survival rate of cows with abomasal torsion decreased as the base-excess concentration decreased(P=0.08). There was a significant difference(P<0.025) among base-excess ranges between abomasal torsion and right-side displacement of the abomasum. Most cows with base-excess concentrations ${\geq}15.0mEq/L$ and ${\leq}-0.5mEq/L$ had abomasal torsion, rather than right-side displacement of the abomasum.

• Journal of The Korean Society of Agricultural Engineers
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• v.52 no.2
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• pp.1-9
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• 2010

This study was carried out to comparison of coefficient of consolidation and the prediction of excess pore water pressure in agricultural reservoir on soft clay ground. For the purpose of verification of the proposed equation, laboratory model tests and field tests were performed and excess pore water pressure was compared to those predicted with the Terzaghi's method. The predicted excess pore water pressure according to ponding was very applicable to practice because it was close to the observed data. Also, for the comparison of coefficient of consolidation, the oedometer, constant rate of strain (CRS), and Rowe cell tests were performed. The coefficient of consolidation at the Rowe cell and CRS tests showed a greate increase than in the oedometer test. The ratio of the vertical and horizontal coefficient of consolidation showed a large difference according to various tests method and mixing ratio. Therefore, it is recommended that careful attention should be paid to predicting the required consolidation period in agricultural reservoir.

• Geomechanics and Engineering
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• v.8 no.2
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• pp.187-220
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• 2015

Soil disturbance induced by installation of mandrel driven vertical drains decreases the in situ horizontal hydraulic conductivity of the soil in the vicinity of the drains, decelerating the consolidation rate. According to available literature, several different profiles for the hydraulic conductivity variation with the radial distance from the vertical drain, influencing the excess pore water pressure dissipation rate, have been identified. In addition, it is well known that the visco-plastic properties of the soil also influence the excess pore water pressure dissipation rate and consequently the settlement rate. In this study, a numerical solution adopting an elastic visco-plastic model with nonlinear creep function incorporated in the consolidation equations has been developed to investigate the effects of disturbed zone properties on the time dependent behaviour of soft soil deposits improved with vertical drains and preloading. The employed elastic visco-plastic model is based on the framework of the modified Cam-Clay model capturing soil creep during excess pore water pressure dissipation. Besides, nonlinear variations of creep coefficient with stress and time and permeability variations during the consolidation process are considered. The predicted results have been compared with V$\ddot{a}$sby test fill measurements. According to the results, different variations of the hydraulic conductivity profile in the disturbed zone result in varying excess pore water pressure dissipation rate and consequently varying the effective vertical stresses in the soil profile. Thus, the creep coefficient and the creep strain limit are notably influenced resulting in significant changes in the predicted settlement rate.

• Journal of the Korean Society of Combustion
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• v.10 no.2
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• pp.26-34
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• 2005

The performance of oxygen combustion with $CO_2$ feeding was investigated in a pyrex tube furnace. The inverse type multi-hole burner was used for improving mixing and wide operating range. It introduced oxygen, fuel, and oxygen, respectively, from center tube to outer tubes. Oxygen combustion characteristics with excess oxygen ratio, oxygen feeding ratio, and $CO_2$ feeding flow rate were studied to optimize the operating condition and to apply the oxygen combustion with recirculation of flue gas to a real furnace. This paper presents results on the effect of $CO_2$ feeding flow rate on the structure of the flames and concentrations of NO and CO emissions. The visible flame length was shortest due to well mixing between fuel and oxygen when the oxygen feeding ratio was 0.25. The NO emission was reduced drastically regardless of excess oxygen ratio when the $CO_2$ feeding flow rate was larger than 15 lpm. The CO emission is varied by changing the $CO_2$ feeding flow rate but the CO emission characteristics is highly affected by excess oxygen ratio. When the excess oxygen ratio is below $\lambda=1.1$, the CO emission increased as the $CO_2$ feeding flow rate increased.

• 한국연소학회:학술대회논문집
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• 2005.10a
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• pp.162-169
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• 2005

The performance of oxygen combustion with $CO_2$ feeding was investigated in a pyrex tube furnace. The inverse type multi-hole burner was used for improving mixing and wide operating range. It introduced oxygen, fuel, and oxygen, respectively, from center tube to outer tubes. Oxygen combustion characteristics with excess oxygen ratio, oxygen feeding ratio, and $CO_2$ feeding flow rate were studied to optimize the operating condition and to apply the oxygen combustion with recirculation of flue gas to a real furnace. This paper presents results on the effect of $CO_2$ feeding flow rate on the structure of the flames and concentrations of NO and CO emissions. The visible flame length was shortest due to well mixing between fuel and oxygen when the oxygen feeding ratio was 0.25. The NO emission was reduced drastically regardless of excess oxygen ratio when the $CO_2$ feeding flow rate was larger than 15 lpm. The CO emission is varied by changing the $CO_2$ feeding flow rate but the CO emission characteristics is highly affected by excess oxygen ratio. When the excess oxygen ratio is below ${\lamda}=1.1$, the CO emission increased as the $CO_2$ feeding flow rate increased.

• Proceedings of the KSME Conference
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• 2003.11a
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• pp.1139-1144
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• 2003

This paper addresses a theoretical study to calculate the amount of the stored energy due to vacancies during high-strain-rate deformation. The study concerns the role of excess vacancies, which can play an important role to increase the amount of stored energy. Molecular dynamics simulation using a 3D model is carried out and the result clearly shows that the excess vacancies are credited to generation of the stored energy.

• Journal of the Korean Ceramic Society
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• v.27 no.8
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• pp.1020-1026
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• 1990

The effect of heating rate on the microstructural evolution during sintering of PZT ceramics has been investigated. In case of PZT powder compacts containing excess of PbO, fast heating caused incomplete rearrangement of solid grains in a liquid, resulting in lower density and inhomogeneous pore shape ; on contrary, slow heating resulted in better densification. In contrast, in case of compacts without excess PbO, the densification was enhanced by fast heating due to suppression of the grain growth.