• Environmental and Resource Economics Review
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• 제15권5호
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• pp.961-974
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• 2006

This paper estimates output and price elasticities of the industrial water in order to provide the government with tools that help make educated decisions with regard with the water provision policies rendering the latter more efficient. The estimated output elasticity produces useful insights on the role of industrial water as an input into the production process while the estimate of price elasticity enablesus to forecast the effects of various water pricing policies. This paper employs the marginal productivity method in order to estimate the abovementioned elasticities. The magnitude of the estimated output elasticity imply that the value of industrial water is much higher than its average price while the price elasticity estimate suggests that the water pricing policy can be an effective tool of controlling the demand for industrial water.

• Journal of Korea Water Resources Association
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• 제40권11호
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• pp.869-876
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• 2007

This paper estimates the output and price elasticities of disaggregated industrial water in order to afford some information for improving the efficiency of government water policy. This paper uses the marginal productivity method for estimating the output and price elasticities of industrial water. The estimated output elasticity shows that the value of industrial water is much higher than the average price of industrial water and the estimated price elasticity shows that the water pricing policy is effective for controlling the demand of industrial water.

• Journal of Korea Society of Industrial Information Systems
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• 제19권3호
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• pp.115-125
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• 2014

This paper has two purposes. The first is to suggest the new and simple method to derive a regional input-output model from the national input-output table published by the Bank of Korea. The interregional input-output table has not been devised in spite of its potential use while the national table has been made every five years with the revised version during each five years. Second, this paper aims to derive Kangwon interregional input-output model from the national model using the regional supply proportion of industry and to analyze the effect of medical tourism industry on the regional economy of Kangwon Province. The paper measures, in particular, the effect of medical tourism industry on the financial self-sufficiency of Kangwon Province using the estimated output elasticity of tax revenue with the autoregressive distributed lag scheme ADL(1,1) in which the dependent variable and the single explanatory variable are each lagged once.

• The Journal of Asian Finance, Economics and Business
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• 제7권6호
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• pp.379-385
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• 2020

The effect of research and development (R&D) expenditure on firm output is an interesting topic, but hardly explored in developing countries due to the unavailability of data. This study investigates this topic in the context of Vietnam by utilizing a novel dataset of 343 firms listed on the Vietnam Stock Exchange in the 2010-2018 period. The effect of R&D expenditure is examined under the production function framework. In order to obtain the robustness of the quantitative results, we estimate the production function with two coherent techniques including the OLS and 2-SLS. An instrumental variable regression technique is adopted to avoid the endogeneity problem between R&D expenditure and other variables. In our empirical analysis, we find that R&D expenditure has a positive and significant impact on output growth. The finding is robust in both OLS and 2-SLS frameworks. Besides, the output elasticity to R&D expenditure of our result is much higher than the estimated elasticity of other countries. The results imply that a 1% increase in R&D expenditure in Vietnam will help to expand the output more than a 1% increase in R&D investment in other countries. The findings from our paper provide important implications for firm managers, investors, and policymakers in Vietnam.

• Journal of Korean Society of Forest Science
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• 제98권2호
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• pp.148-155
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• 2009

The objective of this study is to know market structures of softwood logs being imported to South Korea from log producing countries. Import demand of softwood logs imported to South Korea from America, New Zealand and Chile is fixed as a function of log prices, the lagged dependent variable and output. On the basis of the adaptive expectations model, linear regression models that the explanatory variables included and the lagged dependent variable were estimated by Seemingly Unrelated Regression Equations (SURE). The short-run and long-run own price elasticity of America's softwood log import demand is -1.738 and -4.250 respectively. Then long-run elasticity is much higher than short-run elasticity. Short-run and long-run crosselasticity of New Zealand's softwood log import demand with respect to American's softwood log import price are inelastic at 0.505 and 0.883 respectively. Short-run and long-run cross-elasticity of Chile's softwood log import demands with respect to American's softwood log import prices were highly elastic at 2.442 and 4.462 respectively. Long-run elasticity was almost twice as high as short-run elasticity.

• Asian Journal of Business Environment
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• 제14권1호
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• pp.23-30
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• 2024

Purpose: The purpose of this research is to explore the macroeconomic model through both static and dynamic equations. The primary objective of this study is to investigate the variations in the elasticity of substitution across changing economic variables within the framework of the Allen-Uzawa production functions. Research, design, data and methodology: The data were drawn from the World Bank's annual central statistical office database from 2010 to 2021 in the United States of America. The level of expenditures and of the public finance sector, macroeconomic data like output, inflation rates, and labor are examined. Results: This study demonstrates the interaction of two equations, clarifying that the macroeconomic model is practical to determining the stability of both static and dynamic equation systems analytically. The Allen-Uzawa equations allow for the verification of macroeconomic model properties, and study results demonstrate an increase in the range of capital uses as a form of mechanization. A constant elasticity of substitution function is derived from the macroeconomic variables. Conclusion: The macroeconomic model, though the analysis of the static and dynamic Allen - Uzawa model, not only facilitates the examination of long-term trends in crucial endogenous variables but also overcomes challenges commonly associated with other mathematical methods. Overall, the analysis promotes economic growth, investment, and employment. The levels of expenditures and the public finance sector, along with macroeconomic data such as output, inflation rates, and labor, are examined.

• Environmental and Resource Economics Review
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• 제29권4호
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• pp.499-520
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• 2020

Input ratio of electricity to other production inputs in the Korean manufacturing sector has been higher than for the other OECD countries. In addition, electricity prices in Korea has been relatively lower than the average of OECD countries. Moreover, electricity sector is responsible for most CO2 emissions in Korea as coal and natural gas account 41.9% and 26.8% of electricity production as of 2018. Therefore, it looks inevitable to raise the electricity tariff for the manufacturing sector in Korea, but there is a concern that increase in the electricity tariff might affect small and medium enterprises (SMEs) more than large firms. This study estimates electricity demand's price and output elasticities for large firms and SMEs in steel industry by employing a time varying parameter model (Kalman filter). The analysis shows that changes in output levels regardless of firms' size affect electricity demands more significantly than do changes in electricity prices. Second, large firms have higher variances for both price and output elasticities of electricity demand. Third, large firms have higher price elasticity but lower output elasticity of electricity demand relative to SMEs. Policy implications are suggested in association with how to reduce electricity demands in the energy-intensive industry.

• Proceedings of the Korean Institute of Navigation and Port Research Conference
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• 한국항해항만학회 2017년도 추계학술대회
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• pp.58-60
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• 2017

In the offshore crane system, the requirements on the operating safety are extremely high due to many external factors. This paper describes a model for studying the dynamic behavior of the offshore crane system. The obtained model allows to evaluate the fluctuations of the load arising from the elasticity of the rope. Especially, in this paper, the authors design control system in which just winch rotation angle and rope tension are used without load position information. The controller design based on input-output feedback linearization theory is presented which can handle the effect of the elasticity of the rope and track the load target trajectory input. Besides that, a full order observer is designed to estimate unknown states. Finally, By the experiment results, the effectiveness of proposed control method is evaluated and verified.

• International Area Studies Review
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• 제15권2호
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• pp.51-76
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• 2011

Since Japanese government took reformative measures of public investment in the period of 2000s, this paper investigates how the economic effects of public investments has improved in the period of 2000s. The empirical findings do not show that the output elasticity with respect to public capital has been higher in the 2000s than that of 1990s. Rather, some output elasticity estimates for 2000s has lowered after the advent of year 2000. In addition, the impact of public capital on the productivity of private capital has not improved in the 2000s compared with that of 1990s in Japan. Another major finding shows that the crowding-out effect of public investment has been stronger in the 2000s than before. Those findings imply that the reforms done by Japanese government in the 2000s regarding public investment do not spread out into the private aggregate production and investment.

• East Asian Economic Review
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• 제21권4호
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• pp.295-315
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• 2017

This paper derives the gravity equation with intermediate goods trade. We extend a standard monopolistic competition model to incorporate intermediate goods trade, and show that the gravity equation with intermediates trade is identical to the one without it except in that gross output should be used as the output measure instead of value added. We also show that the output elasticity of trade is significantly underestimated when value added is used as the output measure. This implies that with the conventional gravity equation, the contribution of output growth can be substantially underestimated and the role of trade costs reduction can be exaggerated in explaining trade expansion, as we demonstrate for the case of Korea's trade growth between 1995 and 2007.