• East Asian Economic Review
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• v.21 no.2
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• pp.167-197
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• 2017

I build a small open economy (SOE) dynamic stochastic general equilibrium (DSGE) model to investigate the effect of a heterogeneous wage contract between regular and temporary workers on a macroeconomic volatility in a financially fragile economy. The imperfect financial market condition is captured by a quadratic financial adjustment cost for borrowing foreign assets, and the labor market friction is captured by a Nash bargaining process which is only available to the regular workers when they negotiate their wages with the firms while the temporary workers are given their wage which simply equals the marginal cost. As a result of impulse responsesto a domestic productivity shock, the higher elasticity of substitution between two types of workers and the lower weight on the regular workers in the firm's production process induce the higher volatilities in most variables. This is reasoned that the higher substitutability creates more volatile wage determination process while the lower share of the regular workers weakens their Nash bargaining power in the contract process.

• KDI Journal of Economic Policy
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• v.41 no.3
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• pp.1-38
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• 2019

Given capital market imperfections, an entrepreneur can alleviate financial frictions by creating a pyramidal business group in which a parent firm offers its subsidiary firm internal finance. This endogenous creation of pyramidal business groups can beget asymmetric financial frictions between business-group firms and stand-alone firms. I build a model to show that these asymmetric financial frictions can have sizable effects on resource allocation. On one hand, the financial advantage of pyramidal business groups can foster productive firms by incorporating them as subsidiaries. On the other hand, the asymmetrically large amount of external capital controlled by pyramidal business groups can be expended by unproductive business-group firms and push up the equilibrium price of capital. The model suggests that with fine investor protection or low financial frictions, the benefits of pyramidal business groups can be dominated by their costs because the probability of fostering productive subsidiaries diminishes as the efficiency of external capital markets improves, while the prevalence of pyramidal business groups is not attenuated due to their continuing asymmetric financial advantage.

• KDI Journal of Economic Policy
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• v.42 no.4
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• pp.59-90
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• 2020

U.S. monetary policy has been claimed to generate global spillover and to destabilize other small open economies. We analyze the effects of certain identified U.S. monetary shocks on gross capital flows in the Korean economy using the local projection method. Consistent with previous results on other small open economies, we initially confirm that U.S. interest rate hikes are dynamically correlated with foreign outflows and residents' inflows. That is, not only are they correlated with withdrawals by foreigners but they are also correlated with those by domestic (Korean) investors. The results are mostly driven by portfolio flows. Second, however, the marginal response to a U.S. monetary policy shock is, on average, subdued if we focus on the sample periods after the Global financial crisis of 2007-2008 (henceforth, global financial crisis). We conjecture a possible reason behind the change, an institutional change related to financial friction. If the degree of pledgeability of the value of net worth increases, the marginal responses by both investors would drop with a U.S. monetary policy shock, consistent with our findings.

• Proceedings of the Korean Society for Noise and Vibration Engineering Conference
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• 2005.05a
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• pp.322-325
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• 2005

The separation mechanism is installed to separate a note one by one from the stacked notes and the overlap type, one of separation mechanism, has been used a lot in financial equipments like ATM. This paper has compared and estimated analysis results using finite element method with experimental results over various parameters such as conditions of note, overlap value, roller shapes, which affect the friction force (resistance) exerting on notes between rollers. Consequently, the effect of various parameters on the performance of overlap type separation mechanism can be known and optimal shape and overlap value can be obtained.

• International Journal of Naval Architecture and Ocean Engineering
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• v.13 no.1
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• pp.306-320
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• 2021

To ensure safe port operations around the world, it is important to solve mooring problems. In particular, the many ports that face open seas have difficulties with long-period waves. As a countermeasure, the installation of a breakwater is proposed for mooring safety. However, this often cannot be put into practice because of financial issues. Instead, port terminals control berthing schedules with weather forecasting. However, mooring problems remain unsolved, because of inaccurate wave forecasting. To quantify the current situation, numerical simulations are presented with ship motions, fender deflections, and rope tensions. In addition, novel simulations for mooring ropes are proposed considering tension, friction, bending fatigue, and temperature. With this novel simulation, the optimal mooring method in terms of safety and economic efficiency was confirmed. In terms of safety, the optimal mooring method is verified to minimize dangerous mooring situations. Moreover, the optimal mooring method shows economic benefits and efficiency. It can help to reinforce the safety of port terminals and improve the efficiency of port operations.

• Earthquakes and Structures
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• v.20 no.3
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• pp.295-307
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• 2021

The gap provided between adjacent structures in the metropolitan cities is mostly narrow due to architectural and financial issues. Consequently, structural pounding occurs between adjacent structures during earthquakes. It causes damages, ranging from minor local to more severe ones, especially in the case of seismically isolated buildings, due to their higher displacements. However, due to the increased flexibility of isolated buildings, the problem could become more detrimental to such structures. The effect of the seismic pounding of moat walls on the response of buildings isolated by Triple Friction Pendulum Bearing (TFPB) is investigated in this paper. To this propose, two symmetric three-dimensional models, including single-story and five-story buildings, are modeled in Opensees. Nonlinear Time History Analyses (NTHA) are performed for seismic evaluation. Also, five different sizes with four different sets of friction coefficients are considered for base isolators to cover a whole range of base isolation systems with various geometry configurations and fundamental period. The results are investigated in terms of base shear, buildings' drift, and roof acceleration. Results indicated a profound effect of poundings against moat walls. In situations of potential pounding, in some cases, the influence of impact on seismic responses of multistory buildings was more remarkable.

• Journal of the Korean Society of Manufacturing Technology Engineers
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• v.22 no.4
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• pp.652-657
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• 2013

In this study, we developed a counting method for non-contact ID cards using an optical fiber displacement sensor instead of the traditionally used friction counting method. The proposed method has the advantage of high speed and automated measurement. For counting non-contact ID cards, an H-type optical fiber sensor, jig part, and counting program are developed separately to build the system and adjust it. Through the experimental test results, it was confirmed that counting is possible with one type of international ID card and one type of financial security card based on ISO7810. Furthermore, by applying the proposed method to 100 ID cards 100 times repeatedly, it was confirmed that it has high accuracy and an error ratio of 0%. We experimentally demonstrated that the proposed counting method for non-contact ID cards using an optical fiber displacement sensor can perform measurements with high accuracy and high speed.

• The Southeast Asian review
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• v.27 no.1
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• pp.193-219
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• 2017

The year 2016 in Cambodia witnessed the regression of Cambodian democracy. Political oppression and manipulation executed by the ruling Cambodian People's Party destroyed democracy and civil society. The patronage politics operating on the age-old patron-client relations was invigorated as the financial demands for populist policies amounted. The economy continued its growth in 2016. Yet serious problems embedded in its very structure began to surface as the situation in and outside became less promising. Concerning international relations, the year 2016 marked conspicuous pro-China policies, which may cause unexpected friction with neighboring countries in the future.

• KDI Journal of Economic Policy
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• v.14 no.2
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• pp.189-203
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• 1992

Any money model should address the most important phenomenon of a monetary economy, which is the phenomenon of the rate of return dominance. Even if the holding returns on financial or nonfinancial assets are higher than the rate of return on fiat money holding, which is typically zero, people still hold and use money. In a period of accelerating inflation, number of dominating assets increases continuously, yet people continue to hold and use money. Wallace's (1980) overlapping generations model cannot address the rate of return dominance phenomenon. His model does not capture the mediun of exchange role of fiat money. In this paper, an overlapping types model of fiat money is constructed, in which different types of consumers have different preferences on different types of goods, are endowed with different types of goods, are located at seperated regions, and live for only two periods. In this model, people hold and use money despite the dominating assets, even if inflation accelates. Money in this case serves as a pure medium of exchange, whereas in Wallace's model, money serves as a pure store of value, and money disappears if a dominating asset exists. An interesting feature of the overlapping types model presented in this paper is that money does not provide a cheap approximation to an idealized and efficient real allocation. A monetary economy is always superior to a nonmonetary economy, because money helps overcome the incompleteness of the overlapping types friction. In a monetary economy, however, a pareto optimal allocation cannot always be achieved, because money cannot always overcome the overlapping types friction itself. Therefore, with the criterion of optimality of real allocations, the monetary economy is more optimal than a nonmonetary economy but less optimal than a complete Arrow-Debreu economy. This feature has important implications on macro modelling. Because of the difficulty in introducing money into a macro model in an essential and endogenous manner as in the overlapping types model of this paper, a macro model typically ignores money and studies real allocations without the money factor. The possible inefficiencies of a monetary economy, relative to a complete real Arrow-Debreu economy, may indicate differences in real allocations between the two models.