• Proceedings of the KSR Conference
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• 2001.05a
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• pp.44-51
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• 2001

To account for uncertainties involved in an economic analysis of project, sensitivity analysis are usually being done in Korea. Though useful for policy analysis, but it larks explicit consideration of probability of occurring certain events considered in the sensitivity analysis. Risk analysis otherwise can explicitly account for the probability of certain event which has dire impact on project viability, such as cost, discount rate, and size of benefit. This paper reports experience of applying risk analysis method for economic evaluation of railroad investment. Probability distribution of event has paramount impact on the risk analysis results, while not many prior researches dealt with these issues. Probability distribution of rolling stock cost and operating cost, in addition to those cost variables, are developed considering railway demand in this study. Case study results are reported. Issues in applying risk analysis are reported in addition to further research direction.

• Proceedings of the KSR Conference
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• 2005.11a
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• pp.1276-1280
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• 2005

The Maglav system project affects communities and are usually funded by public agencies. Evaluation of this project that considerably impact whole communities requires public involvement. This specific requirement of transportation projects determines the method of their evaluation as the impacts are estimated from the transportation economic point of view. Especially evaluation criteria must reflect the needs of the interested parties and should consider all foreseeable benefits and losses caused by the Maglav project. To select evaluation criteria and evaluation method may help a decision--maker in making a best selection for a Maglav project.

• Journal of Preventive Medicine and Public Health
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• v.55 no.5
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• pp.415-423
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• 2022

Economic evaluations in the healthcare are used to assess economic efficiency of pharmaceuticals and medical interventions such as diagnoses and medical procedures. This study introduces the main concepts of economic evaluation across its key steps: planning, outcome and cost calculation, modeling, cost-effectiveness results, uncertainty analysis, and decision-making. When planning an economic evaluation, we determine the study population, intervention, comparators, perspectives, time horizon, discount rates, and type of economic evaluation. In healthcare economic evaluations, outcomes include changes in mortality, the survival rate, life years, and quality-adjusted life years, while costs include medical, non-medical, and productivity costs. Model-based economic evaluations, including decision tree and Markov models, are mainly used to calculate the total costs and total effects. In cost-effectiveness or costutility analyses, cost-effectiveness is evaluated using the incremental cost-effectiveness ratio, which is the additional cost per one additional unit of effectiveness gained by an intervention compared with a comparator. All outcomes have uncertainties owing to limited evidence, diverse methodologies, and unexplained variation. Thus, researchers should review these uncertainties and confirm their robustness. We hope to contribute to the establishment and dissemination of economic evaluation methodologies that reflect Korean clinical and research environment and ultimately improve the rationality of healthcare policies.

• International Journal of Highway Engineering
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• v.20 no.1
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• pp.147-156
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• 2018

PURPOSES : The purpose of this study is to analyze the characteristics of the weight values of evaluation items by traffic safety project type. METHODS : In general, a large-scale investment in projects such as the traffic safety project requires economic analyses to be performed in advance. However, there is an argument for considering special characteristics of the traffic safety project. Therefore, this study conducted characteristic analysis of the weight values of evaluation items. The analysis consisted of two steps. The first step was hypothesis verification using analysis of variance (ANOVA). In this process, the authors examined whether the weight of evaluation items is the same regardless of the traffic safety project type. Based on the first step's results, the authors proceeded to the second step. The objective of this step was to analyze how different the weight values are by traffic safety project type using an analytic hierarchy process. RESULTS : According to the ANOVA test results, the benefit to cost ratios have different weight values based on traffic safety project type at the 0.01 significance level. The policy evaluation items, such as the plans connection, resident opinion, and regional equity, also showed the same results except that the result for the related plans connection was statistically significant at the 0.05 level. Based on the first step's result, the AHP analysis in the second step showed that the traffic safety projects for vulnerable users and pedestrians have very low weight values in economic evaluation factors compared with other safety project types. The weight values for vulnerable users and pedestrians were 0.29 and 0.26, respectively, in economic evaluation items. On the other hand, the weight values for other safety project types were around 0.6. Among the policy evaluation items, resident opinion showed a higher weight value than other factors, such as connection and regional equity items. CONCLUSIONS : The social and economic impact of a traffic safety project varies by project type and project characteristics. Although the economic approach is overarching and a reasonable methodology is applied for large-scale projects, it should be noted that the safety issue, especially for transportation of vulnerable uses, requires a non-economical approach. Based on the analysis results, this study suggests that the priority of the projects should be determined by separating them into independent assessment groups depending on their characteristics.

• 한국벤처창업학회:학술대회논문집
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• 2007.04a
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• pp.79-99
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• 2007

This paper evaluates the economic effect of the IT SoC Industrial Foundation Composition Project. The evaluation was done in three steps. The first step was to estimate the contribution effect of the fabless small and medium venture business' sales. The step includes interview with all the CEOs of the firms under the support of the Enterprise Incubation System, The second step was to apply input-output analysis and then estimate the production inducement effect. The last step was to compare the results of estimation with the costs of the project. We have concluded this project had achieved 6.3 times greater economic effect compared to the budget. The reason for the large economic effect is that the project provided various infrastructures to the small and medium venture businesses.

• Journal of the Korea Institute of Building Construction
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• v.8 no.1
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• pp.71-76
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• 2008

Recently, the high-rise apartment housings have become a prototype of the urban residential dwelling in Korea and the numbers of one have steadily been increasing. According to this trend, the strength of the construction materials is also fortified to assure the stability and durability of the buildings. Specially, Re-bar of SD500 type is largely used at the construction sites of high-rise building. This study analyzes the current usage of SD500 high-strength re-bar at domestic construction sites. Through the result of this analysis, we develop Economic Evaluation Model that measure economic efficiency of lap splice and coupler splice, which are most commonly used in connection SD500. The evaluation method was applied to construction sites in Seoul in December 2006, and the result revealed that coupler splice is relatively superior in terms of cost efficiency when the re-bar diameter is longer and the concrete strength is lower.

• Journal of Korean Society for Quality Management
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• v.44 no.4
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• pp.869-881
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• 2016

Purpose: The objective of this study is to verify the economic validation of quality management integrated train freight car by analyzing economic evaluation indicators such as benefit and cost, net present value, and inter rate of return. Methods: First, we itemize benefit and cost field by reviewing literatures; Benefit consists of 1)Safety, 2)Operation, and 3)Maintenance; Cost consists of 1)Set-up fee, 2)Wireless internet fee, and 3)Cloud storage using fee. Second, based on these estimated values, we conduct an economic evaluation analysis. Among them, benefit and cost, net present value, and internal rate of return are selected. Results: As a result, all estimated values are highly over criterion of economic validity($$B/C{\geq}_-1$$, $$NPV{\geq}_-0$$, $$IRR{\geq}_-R$$); 1)benefit over cost ratio is 28.22, 2)Net present value is 8,121.66million KRW, and 3)Internal rate of return value is 2272%. Conclusion: The findings of this study will help making a decision when train industry adopts IoT technology for improving the effectiveness.

• Journal of Environmental Impact Assessment
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• v.2 no.2
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• pp.59-71
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• 1993

Evaluation methods are employed in environmental impact assessment to choose between different project site, to determine the required measures to compensate impact and to decide whether the environmental impacts are more important than the social or economic effects of a project. The main obstacles that restrict use of quantitative evaluation method are a Lack of knowledge about the environmental effects (e.g. if impacts on wildlife or landscape amenities are predicted) and the relative importance of economic and social issues compared with nature conservation stability of ecosystem or landscape beauty. In Germany, the most common method for site planning is the "ecological risk analysis". It is a kind of multi-criteria-decision-method based on quantitative and qualitative description and ordinal ranking. The various kinds of "ecological balancing methods" that are more recently developed (within the last decade) to quantify the required amount for compensatory measures instead often use cardinal figures to express the value of ecosystems, the intensity of impacts, the need for additional measures to compensate for long recuperative periods when restoring ecosystems and so on. There are still only a view attempts to quantify decisions between environmental and socio-economic issues. Multicriteria-analysis as well as cost-benifit-analysis was used. Some new approaches which are still in a preliminary status are based on contingent valuation and on calculations for compensatory payments (instead of compensatory measures).

• Journal of Preventive Medicine and Public Health
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• v.49 no.4
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• pp.183-196
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• 2016

Objectives: There is no systematic review on economic evaluations of telemedicine in Japan, despite over 1000 trials implemented. Our systematic review aims to examine whether Japan's telemedicine is cost-saving or cost-effective, examine the methodological rigorousness of the economic evaluations, and discuss future studies needed to improve telemedicine's financial sustainability. Methods: We searched five databases, including two Japanese databases, to find peer-reviewed articles published between January 1, 2000 and December 31, 2014 in English and Japanese that performed economic evaluations of Japan's telemedicine programs. The methodological rigorousness of the economic analyses was assessed with a well-established checklist. We calculated the benefit-to-cost ratio (BCR) when a reviewed study reported related data but did not report the BCR. All cost values were adjusted to 2014 US dollars. Results: Among the 17 articles identified, six studies reported on settings connecting physicians for specialist consultations, and eleven studies on settings connecting healthcare providers and patients at home. There are three cost-benefit analyses and three cost-minimization analyses. The remaining studies measured the benefit of telemedicine only, using medical expenditure saved or users' willingness-to-pay. There was substantial diversity in the methodological rigorousness. Studies on teledermatology and teleradiology indicated a favorable level of economic efficiency. Studies on telehomecare gave mixed results. One cost-benefit analysis on telehomecare indicated a low economic efficiency, partly due to public subsidy rules, e.g., a too short budget period. Conclusions: Overall, telemedicine programs in Japan were indicated to have a favorable level of economic efficiency. However, the scarcity of the economic literature indicates the need for further rigorous economic evaluation studies.

• Proceedings of the KSR Conference
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• 2007.11a
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• pp.1694-1714
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• 2007

This study is to estimate economic benefits of Standardization R&D of Urban Rail System. Benefit was to be realized through standardization of main areas such as train vehicle, railway, power system, and signal system. To derive and calculate the quantitative benefit, the sources of economic impact was divided into three dimensions -operational cost savings, import substitution, and safety effects. Economic effect of the standardization was categorized based on a modified BSC model. Economic benefits from time and labor savings are converted into cost savings. Import substitution and investment multiplier effect have a positive impact in addition to cost savings. The estimation of the standardization R&D of Urban Rail System was conservatively estimated 370 billion Won. Cost effectiveness of standardized safety system was conservatively translated into economic benefit in this analysis. This study provides a practical guide to economic evaluation of the various railway R&D projects.