• Title/Summary/Keyword: Economic risks

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Effects of Fiscal Policy on Labor Markets: A Dynamic General Equilibrium Analysis (조세·재정정책이 노동시장에 미치는 영향: 동태적 일반균형분석)

  • Kim, Sun-Bin;Chang, Yongsung
    • KDI Journal of Economic Policy
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    • v.30 no.2
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    • pp.185-223
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    • 2008
  • This paper considers a heterogeneous agent dynamic general equilibrium model and analyzes effects of an increase in labor income tax rate on labor market and the aggregate variables in Korea. The fiscal policy regarding how the government uses the additional tax revenue may take the two forms: 1) general transfer and 2) earned income tax credit (EITC). The model features are as follows: 1) Workers are heterogeneous in their productivity. 2)Labor is indivisible, hence the analysis focuses on the variation in labor supply through the extensive margin in response to a change in fiscal policy. 3) The incomplete markets are introduced, so individual workers can not perfectly insure themselves against risks related to stochastic changes in income or employment status. 4) The model is of general equilibrium, hence it is equiped to analyze the feedback effect of changes in aggregate variables on individual workers' decisions. In the case of general transfer policy, the government equally distributes the additional tax revenue to all workers regardless of their employment states. Under this policy, an increase in the labor income tax rate dampens work incentives of individual workers so that the aggregate employment rate decreases by 1% compared with the benchmark economy. In the case of EITC policy, only employed workers whose labor incomes are below a certain EITC ceiling are eligible for the EITC benefits. Unlike the general transfer policy, the EITC induces low-income workers to participate the labor market to be eligible for EITC benefits. Hence, the aggregate employment rate may increase by 2.7% at the maximum. As the EITC ceiling increases, too many workers can collect the EITC but the benefits per worker becomes too little so that the increase in employment rate is negligible. By and large, this study demonstrates that EITC may effectively raise the aggregate employment rate, and that it can be a useful policy tool in response to the decrease in the labor force due to population aging as observed in Korea recently.

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Disaster Risk Assessment using QRE Assessment Tool in Disaster Cases in Seoul Metropolitan (서울시 재난 사례 QRE 평가도구를 활용한 재난 위험도 평가)

  • Kim, Yong Moon;Lee, Tae Shik
    • Journal of Korean Society of Disaster and Security
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    • v.12 no.1
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    • pp.11-21
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    • 2019
  • This study assessed the risk of disaster by using QRE(Quick Risk Estimation - UNISDR Roll Model City of Basic Evaluation Tool) tools for three natural disasters and sixteen social disasters managed by the Seoul Metropolitan Government. The criteria for selecting 19 disaster types in Seoul are limited to disasters that occur frequently in the past and cause a lot of damage to people and property if they occur. We also considered disasters that are likely to occur in the future. According to the results of the QRE tools for disaster type in Seoul, the most dangerous type of disaster among the Seoul city disasters was "suicide accident" and "deterioration of air quality". Suicide risk is high and it is not easy to take measures against the economic and psychological problems of suicide. This corresponds to the Risk ratings(Likelihood ranking score & Severity rating) "M6". In contrast, disaster types with low risk during the disaster managed by the city of Seoul were analyzed as flooding, water leakage, and water pollution accidents. In the case of floods, there is a high likelihood of disaster such as localized heavy rains and typhoons. However, the city of Seoul has established a comprehensive plan to reduce floods and water every five years. This aspect is considered to be appropriate for disaster prevention preparedness and relatively low disaster risk was analyzed. This corresponds to the disaster Risk ratings(Likelihood ranking score & Severity rating) "VL1". Finally, the QRE tool provides the city's leaders and disaster managers with a quick reference to the risk of a disaster so that decisions can be made faster. In addition, the risk assessment using the QRE tool has helped many aspects such as systematic evaluation of resilience against the city's safety risks, basic data on future investment plans, and disaster response.

Breeding Status and Management System Improvement of Pseudemys concinna and Mauremys sinensis Designated as Invasive Alien Turtles in South Korea (법적지정 생태계교란생물의 사육 현황과 관리 개선 방안 - 리버쿠터와 중국줄무늬목거북을 중심으로)

  • Kim, Philjae;Yeun, Sujung;An, Hyeonju;Kim, Su Hwan;Lee, Hyohyemi
    • Ecology and Resilient Infrastructure
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    • v.7 no.4
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    • pp.388-395
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    • 2020
  • Exotic species have been imported for economic purposes, but more recently, an increasing number of animals are imported as pets. With the increasing popularity of two species of turtles, Mauremys sinensis and Pseudemys concinna, the number of pet turtle owners has gradually increased since 2014. The number of turtles increased by 180 in 2017 and 281 in 2019. However, these turtle species have been abandoned to nature, owing to their long lifespans and the changes in conditions of pet owners. The two turtle species have been designated as invasive alien species (AIS) in Korea considering their ecological risks, and the Biological Diversity Act prohibits their release. The owners of Mauremys sinensis and Pseudemys concinna are required to submit the "Application for Approval of Breeding and Grace for AIS" document. In this study, the breeding conditions for the two turtle species were investigated by analyzing the information in the submitted applications for six months (e.g., the suitability of breeding facilities, number of turtles, breeding period, type of pet adoption, and local district of pet owner). A total of 614 cases were analyzed. Because only 58% of breeders provided suitable breeding conditions, breeding information and responsible pet ownership training should be offered to prevent abandonment in natural ecosystems. In addition, continuous monitoring is necessary to prepare for potential problems caused by the lack of information in many applications and the one-off licensing policy.

A Study on the Difficulties Faced by High School Science Teachers in Operating LMO Laboratories (고등학교 LMO 실험실 운영에서 과학교사가 갖는 어려움에 관한 연구)

  • Seongjae Lee;Jiwon Yeo;Sang-Hak Jeon
    • Journal of The Korean Association For Science Education
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    • v.43 no.1
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    • pp.1-15
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    • 2023
  • As the social and economic value of living modified organisms (LMOs) increase, so do the potential risks they pose to humans and the environment. Therefore, all laboratories using LMOs must establish an LMO laboratory in accordance with the standards required by regulations. Recently, in high school, LMO-related experimental programs have been developed for their educational effects. Also, in this case, it is necessary to comply with the regulation for LMO laboratories. However, high schools are still unfamiliar with the LMO laboratory, and it is difficult for teachers to manage an LMO laboratory because its implementation applies the same standards to general research institutes. In this study, we used causal chain analysis to discover the difficulties each teacher faced while setting up an LMO laboratory by examining three cases. The difficulties experienced by teachers are as follows: the first problem is "reluctance to set up an LMO laboratory," because of "administrative tasks for laboratory registration" and "difficulty in persuading colleagues." The second problem is a difficulty for teachers to operate LMO laboratory in blind spots, due to "inflexible installation and closure," "medical waste disposal," and "LMO education that does not fit the school context." Through this study, although the difficulty of running an LMO laboratory is caused by a lack of necessity and insufficient consideration of the school context, the more fundamental cause was a lack of collaborative planning between the educational field and the operating institutions. The teachers who participate in this research suggest that "using shared LAB" and "preparing opportunities for knowledge sharing" can be considered as strategies for operating the school's LMO laboratory. We feel that this study will provide a useful reference for teachers or schools planning to build an LMO laboratory.

The Determination of Trust in Franchisor-Franchisee Relationships in China (중국 프랜차이즈 시스템에서의 본부와 가맹점간 신뢰의 영향요인)

  • Shin, Geon-Cheol;Ma, Yaokun
    • Journal of Global Scholars of Marketing Science
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    • v.18 no.2
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    • pp.65-88
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    • 2008
  • Since the implementation of economic reforms in 1978, the Chinese economy grows rapidly at an average annul growth rate of 9% over the post two decades. Franchising has been widely recognized as an important source of entrepreneurial activity. Trust is important in that it facilitates relational exchanges by permits partners to transcend short-run inequities or risks to concentrate on long-term profits or gains. In the relationship between the franchisors and franchisees, trust has been described as an important source of competitive advantage. However, little research has been done on the factors affecting trust in Chinese franchisor-franchisee relationships. The purpose of this study is to investigate what factors affect the trust in the franchise system in China, and to provide guidelines and insights to franchisors which enter Chinese market. In this study, according to Morgan and Hunt (1994), trust is defined as the extending when one party has confidence in an exchange partner's reliability and integrity. We offered a conceptual model of the empirical study. The model shows that the factors affecting the trust include franchisor's supports, communication, satisfaction with previous outcome and conflict. We also suggested the franchisor's supports and communication like to enhance the franchisee's satisfaction with previous outcome, and the franchisor's supports, communication and he franchisee's satisfaction with previous outcome tend to decrease conflict. Before the formal study, a pretest involving exploratory interviews with owners from three franchisees was conducted to make sure the questionnaire was relevant and clear to the respondents. The data were collected using trained interviewers to carry out personal interviews with the aid of an unidentified, muti-page, structured questionnaire. The respondents comprised of owners, managers, and owner managers of franchisee-owned food service franchises located in Beijing, China. Even though a total of 256 potential franchises were initially contacted, the finally usable sample consisted of 125 respondents. As expected, the sampling method was successful in soliciting respondents with waried personal and firm characteristics. Self-administrated questionnaires were used for all measures. And established scales were used to measure the latent constructs in this study. The measures tapped the franchisees' perceptions of the relationship with the referent franchisor. Five-point Likert-type scales ranging from "strongly disagree" (=1) to "strongly agree" (=7) were used throughout the constructs (trust, eight items; support, five items; communication, four items; satisfaction, six items; conflict, three items). The reliability measurements traditionally employed, such as the Cronbach's alpha, were used. All the reliabilities were greater than.80. The proposed measurement model was estimated using SPSS 12.0 and AMOS 5.0 analysis package. We conducted A series of exploratory factor analyses and confirmatory factor analyses to assess the convergent validity, discriminant validity, and reliability. The results indicate reasonable overall fits between the model and the observed data. The overall fit of measurement model were $X^2$= 159.699, p=0.004, d.f. = 116, GFI =.879, NFI =.898, CFI =.969, IFI =.970, TLI =.959, RMR =.058. The results demonstrated that the data reasonably fitted the model. We also examined construct reliability and reliability and average variance extracted (AVE). The construct reliability of each construct was greater than.80 and the AVE of each construct was greater than.50. According to the analysis of Structure Equation Modeling (SEM), the results of path model indicated an adequate fit of the model: $X^2$= 142.126, p = 0.044, d.f. = 115, GFI =.892, NFI =.909, CFI =.981, IFI =.981, TLI =.974, RMR =.057. As hypothesized, the results showed that it is strategically important to establish trust in a franchise system, and the franchisor's supports, communication and satisfaction with previous outcome tend to reinforce franchisee's trust. The results also showed trust seems to decrease as the experience of conflict episodes increases. And we also noticed that franchisor's supports and communication tend to enhance the franchisee's satisfaction with previous outcome, and communication tend to decrease conflict. If the trust between the franchisor and franchisee can be established in a franchise system, franchising offers many benefits and reduces many costs. To manage a mutual trust of relationship with their franchisees, franchisor's should provide support effectively to their franchisees. Effective assistant services have direct effect on franchisees' satisfaction with previous outcome and trust in franchisor. Especially, franchise sales process, orientation, and training in the start-up period are key elements for success of the franchise system. Franchisor's support is an accumulated separate satisfaction evaluation with different kind of service provided by the franchisor. And providing support definitely can improve the trustworthy image of the franchisor. In the franchise system, conflicts of interests and exertions of different power sources are very common. The experience of conflict episodes seems to negatively relate to trust. Therefore, it is important to reduce the negative side of the relationship conflicts. Communication actually plays a broader role in reducing conflict and establish mutual trust in franchisor-franchisee relationship. And effective communication between franchisors and franchisees can improve franchisees' satisfaction toward the franchise system. As the diversification of Chinese markets, both franchisors and franchisees must keep the relevant, timely, and reliable communication. And it is very important to improve the quality of communication. Satisfaction with precious outcomes seems to positively relate to trust. Franchisors and franchisees that are highly satisfied with the previous outcomes that flow from their relationship will perceive their partner as advancing their goal achievement. Therefore, it is necessary for both franchisor and their franchisees to make the welfare of partner with effort. Little literature has focused on what factors affect the trust between franchisors and their franchisees in China. This study developed the hypotheses regarding the factors affecting trust in the transaction relationship. The results of data analysis supported the hypotheses strongly. There are certain limitations in this study. First, we may point out that some other factors missed in this study could be significantly important. Second, the context of this study, food service industry, limits its potential generalizability for all franchise systems. More studies in different categories of franchise system are needed to broaden its generalizability. Third, the model was tested empirically in a sample in Beijing, more empirical tests of the proposed model in other Chinese areas are needed. Finally, the analysis in this study was solely based on the perception of franchisees and the opinions of franchisors were not included.

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