• The Korean Journal of Financial Management
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• v.25 no.3
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• pp.111-130
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• 2008

This paper compares long term equilibrium relation of KOSPI 200 which is underling stock and its futures by using general method fractional cointegration instead of existing integer cointegration. Existence of integer cointegration between two price time series gives much wider information about long term equilibrium relation. These details grasp long term equilibrium relation of two price time series as well as reverting velocity to equilibrium by observing difference coefficient of error term when it renounces from equilibrium relation. The result of this study reveals existence of long term equilibrium relation between KOSPI200 and futures which follow fractional cointegration. Difference coefficient, d, of 'two price time series error term' satisfies 0 < d < 1/2 beside bandwidth parameter, m(173). It means two price time series follow stationary long memory process. This also means impulse effects to balance price of two price time series decrease gently within hyperbolic rate decay. It indicates reverting speed of error term is very low when it bolts from equilibrium. It implies to market maker, who is willing to make excess return with arbitrage trading and hedging risk using underling stock, how invest strategy should be changed. It also insinuates that information transition between KOSPI 200 Index market and futures market does not working efficiently.

• Journal of applied mathematics & informatics
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• v.7 no.1
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• pp.247-255
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• 2000

The purpose of this paper is to give new existence theorems of equilibrium in abstract economies with uncountable number of agents and general preference correspondences.

• Environmental and Resource Economics Review
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• v.16 no.3
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• pp.653-682
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• 2007

In this study, multi-sectoral partial equilibrium and computable general equilibrium models of Taiwan are used to investigate the direct and indirect effects of energy price increases on overall economies and agro-food sector in Taiwan. The results suggest that agricultural prices, production cost would increase between 0.27% to 1.88%, and a reduction in GDP around 0.39% to 0.54 %. The negative impact on livestock sector is slightly higher than that on the crop sector. Negative impacts are also observed in the employment and wages. The rising oil price has the potential to discourage production of energy-intensive activity because of the possibility of substitution and adaptations. The growth rate of real GDP will shrink by 0.64% to 1.06% and CPI will increase by 1.17% to 1,95%. Both the agriculture and non-agricultural sector also respond by raising output prices by 0.80% to 1.33%. The rising international oil price has urged the government to take policy actions like using alternative fuels such as biodiesel, bioethanol, and adopting measures to cut down on energy consumptions mainly in transportation sectors in response to public concern over economic shocks.

• KDI Journal of Economic Policy
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• v.35 no.3
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• pp.1-38
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• 2013

This study investigates the welfare implications of BTL projects using a general equilibrium model with the public sector and public-private partnerships. We show that when the government is not allowed to run budget deficits but private firms is able to overcome the financial constraint, BTL projects performed by public-private partnerships (PPPs) could be a good alternative and improve the welfare of the model economy. This paper quantitatively investigates excessive expansion of PPP projects and several alternatives to retrieve welfare losses caused by such an expansion. Assuming that future rents of BTL projects are not taken into account, we find the welfare losses up to 20 percent relative to conventional government projects. Finally, we show that it would be possible to reduce the losses by transforming the fully depreciated capital stock of the government projects into much smaller new PPP projects.

• International Journal of Railway
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• v.1 no.1
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• pp.12-19
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• 2008

Starting her business operation on January 5 2007, Taiwan High Speed Rail(THSR) shapes a new time-space frame for Taiwan western corridor, where more than 90% of national population lives around and more than 95% gross domestic product created from. Comparing with the four-hour traveling time by highway before 2007, THSR reduces the time required to one and half hours from Taipei to Kaohsiung. It will not only benefit the communication along the island from north to south, but also change the location advantages/disadvantages for all cities in these regions. Therefore, this paper establishes a spatial computable general equilibrium model(SCGE Model) to simulate the economic effect of High Speed Rail(HSR). This SCGE model divides Taiwan economy into fifteen geographic regions and thirteen industries. Each region has three sectors: household sector, transportation sector, and industries sector. Following the behavior function of economic theories, the general equilibrium can be achieved simultaneously. Thus, gross regional product (GRP), capital formation, employment income and welfare/utility level can be all observed by calculating the different economic result between cases with-/ without-HSR. Besides, this model presents the social welfare benefit from HSR operation, the polarization phenomenon among regions and within certain region, unbalance distribution of welfare along the HSR line, and industries development divergence among regions etc. These major findings should be useful for regional development policy making.

• Proceedings of the KSR Conference
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• 2007.11a
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• pp.1896-1912
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• 2007

Starting her business operation on January 5 2007, Taiwan High Speed Rail (THSR) shapes a new time-space frame for Taiwan western corridor, where more than 90% of national population lives around and more than 95% gross domestic product created from. Comparing with the four-hour traveling time by highway before 2007, THSR reduces the time required to one and half hours from Taipei to Kaohsiung. It will not only benefit the communication along the island from north to south, but also change the location advantages/disadvantages for all cities in these regions. Therefore, this paper establishes a spatial computable general equilibrium model (SCGE Model) to simulate the economic effect of High Speed Rail (HSR). This SCGE model divides Taiwan economy into fifteen geographic regions and thirteen industries. Each region has three sectors: household sector, transportation sector, and industries sector. Following the behavior function of economic theories, the general equilibrium can be achieved simultaneously. Thus, gross regional product (GRP), capital formation, employment income and welfare/utility level can be all observed by calculating the different economic result between cases with-/ without-HSR. Besides, this model presents the social welfare benefit from HSR operation, the polarization phenomenon among regions and within certain region, unbalance distribution of welfare along the HSR line, and industries development divergence among regions etc. These major findings should be useful for regional development policy making.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.1
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• pp.543-550
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• 2021

The purpose of the study is to investigate the simulated effects of the Philippine tax reform, which is called Tax Reform for Acceleration and Inclusion Law, on household income and occupational choice. The study utilized the Family Income Expenditure Survey and tax collection as input to Computable General Equilibrium-Top Down Behavioral Microsimulation approach to determine the effect of Philippine tax reform on household income and occupational choice. The results of the study show that the household income in the Philippines will increase due to the implementation of the Philippine tax reform. Also, the study had found that tax reform results drive the household to shift from being farming entrepreneur to salaried workers since the utility derived from being workers is much higher compared to the utility derived from being entrepreneur. The findings of this research suggest that the Philippine Tax Reform for Acceleration and Inclusion Law is beneficial to the household since their income would increase, which will further result to an increase in their capability to buy goods and services. However, the tax reform would also lead to imbalance between the distribution of numbers of workers across sectors such as entrepreneurial farming, entrepreneurial non-farming, and wage sector.

• Journal of Korea Trade
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• v.25 no.4
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• pp.88-107
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• 2021

Purpose - Using a model that highlights Ricardian comparative advantage and Cournot competition, I derive theoretical predictions on how bilateral measures of trade intensity, specialization, and intra-industry are interrelated, and how Ricardian productivity differences affect these measures. We test the predictions using trade and production data, and confirm them. Design/methodology - A simple two-country general equilibrium model is constructed to derive theory-based bilateral indexes. We then test the relationships among them using panel data for 35 countries and 14 industries between 1996 and 2008. Findings - Bilateral trade intensity is increasing in specialization, as in the classical trade theory, and in intra-industry trade, as in the new trade theory. However, productivity differences positively affect specialization, and negatively affect intra-industry trade. These effects cancel each other; thus productivity differences have little impact on trade intensity. Originality/value - This paper provides a comprehensive conceptual framework for understanding the relationship among trade intensity, specialization, intra-industry trade, and productivity differences. We derive theory-consistent measures of specialization, intra-industry trade, and productivity differences. Moreover, we reevaluate the empirical relevance of these variables for the study of gravity equations. This paper is also an effort to capture oligopolistic competition in a general equilibrium framework, interests in which recently resurged.

• The Journal of Asian Finance, Economics and Business
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• v.10 no.2
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• pp.183-193
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• 2023

This paper proposes and examines the economic impact of infrastructure improvement on the San-En-Nanshin region in the Chubu area of Japan. We develop a single transportation computable general equilibrium (CGE) model for each subregion within the San-En-Nanshin region. The explicit modeling of the transportation infrastructure is defined based on interregional commuting flows and business trips, considering the spatial structure of the San-En-Nanshin economy. A CGE model is integrated with an interregional transportation network model to enhance the framework's potential for understanding the infrastructure's role in regional development. To evaluate the economic impact of transportation improvement, we analyze the interrelationship between travel time savings and regional output and income. The economic impact analysis under the CGE framework reveals how transportation facilities and systems affect firm and household behavior and therefore induce changes in the production and consumption of commodities and transportation services. The proposed theoretical model was tested by using data from the 2005 IO tables of each subregion and the 2006 transport flow dataset issued by the Ministry of Land, Infrastructure, Transport, and Tourism in Japan. As a result, the paper confirms the positive effect of transportation investment on the total output and income of the studied region. Specifically, we found that while economic benefits typically appear in urban areas, rural areas can still potentially benefit from transportation improvement projects.

• Korean Journal of Agricultural Science
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• v.49 no.1
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• pp.31-43
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• 2022

The global trade environment is rapidly changing. The spread of COVID-19 promotes digitalization, and online transactions are becoming the new normal. Currently, Korea is actively introducing information and communication technology (ICT) that uses the internet of things (IoT) in relation to agriculture. However, few studies have analyzed the impact of digitalization on trade in the agricultural sector. Thus, the purpose of this study is to examine how the introduction of digital technology can affect the economy and trade of Korea. In this study, we estimate the impact of introducing digital technologies using the computable general equilibrium (CGE) model. The results of this analysis indicate that the GDP could increase by 3.82% to 10.53%. Also, agricultural production and trade according to the model will significantly increase to 8.67% and 5.72%, respectively, through a productivity increase from Blockchain, IoT, and artificial intelligence (AI) technologies, despite logistics inefficiencies. Although the effects of digitalization could be significant, farmers are still struggling to introduce digital technologies, stemming from the fact that government support systems are concentrated in only a few sub-sectors. In this regard, support in this area must be expanded and diversified according to the current environment of agriculture in Korea.