Pairs trading under transaction costs using model predictive control

Model predictive control with proportional transactions costs provides a good approximation to the optimal trading strategy     

Factor-Market Distortions, Dynamic Stability, and Paradoxical Comparative Statics

In the late 1960s and early 1970s there was a strong revival of interest in the role of factor-market distortions in those branches of our subject which rely on the Lerner–Samuelson two-by-two model of production. Among the legacies from that period were several comparative statical propositions which seemed counterintuitive or paradoxical. However, the revival lost momentum when confronted with Neary's observation that the major paradoxes are associated with unstable equilibria and therefore rarely observed. On the other hand, there are now seen to be several errors in Neary's analysis. For example, in the important case of a closed economy (and, by interpretation, in the case of a large open economy) he overlooked the fact that paradoxes can be associated with stable equilibria.     

The impacts of robotization on macro and sectoral economies within a world econometric model

A world model of industry and trade is developed to evaluate the probable global impact of robotization on the macro and sectoral economies. It is found that robotization in Japan and Korea has a positive impact on their economic growth, whereas robotization in the United States apparently has a negative impact on economic growth. It is also found that the international impacts of robotization in Japan are negative for the United States, but positive for the Korean economy.     

Do TV-aided model lessons in class improve student performance? Evidence from public primary schools in Papua New Guinea

Lack of access to high-quality education remains a serious concern in many developing countries. This is especially the case for rural areas, including islands suffering from a shortage of skilled teachers and sufficient educational equipment. We examine the impact of introducing TV-aided model lessons in class to enhance the quality of teaching (the EQUITV project) on the national examination test scores of Mathematics and “Combined Subject” (a comprehensive subject comprising 30% science and 70% social studies and other topics) as well as English in the final year of primary education in Papua New Guinea. We employ a panel event study to capture the different timings of the intervention across schools over multiple time periods. We find that the project significantly and robustly improved test scores for girls only in English 3 years after the introduction of the project, but no improvement was seen for boys.     

Selecting make-to-stock and postponement policies for different products in a chemical plant: A case study using discrete event simulation

We present a guideline for selecting the inventory management policy for a specialty chemical plant that produces products with limited shelf life, by producing multiple grades of bulk chemical and packaging them into a large variety of bottles. The policy for each product was selected based on a cost-benefit analysis, using the multiple objectives of maximizing the on time order fulfillment, minimizing the production (cleaning and shelf life expiration) and inventory costs. To generate realistic cost estimates, we developed a discrete event simulation model that included demand variability, planning and scheduling policies, and operational details. We evaluated three different policies: make-to-stock (MTS), postponement, and combined MTS/postponement. We also evaluated different storage media and optimized the number of storage units for products selected for postponement. A combined MTS/postponement policy, in which postponement is applied to products with low to medium demand and high expiration provided lowest costs without significantly impacting the customer on time order fulfillment. For all other products, a MTS policy is applied to maximize order fulfillment on time, reduce cleaning costs and to reduce number of storage units.     

Analysis on demand‐ and supply‐side responses during the expansion of health insurance coverage in Vietnam: Challenges and policy implications toward universal health coverage

This study examines how the demand and supply of healthcare services have responded to the expansion of health insurance coverage in Vietnam by using biyearly provincial panel data from 2006 to 2014. The results of our analysis indicate significant progress towards universal health coverage (UHC) in Vietnam, with the expansion of health insurance coverage being accompanied by increases in admissions and inpatient days. However, some concerns remain. Our findings show a positive response of supply capacity only in terms of doctors and nurses at higher‐level hospitals (provincial hospitals), and none in other relevant aspects. Moreover, we find no positive response of the number of outpatient visits. Another concern is the issue of financial protection. The decline in out‐of‐pocket payments is not significant throughout our observation period, suggesting that lowering the cost of healthcare is not straightforward and that the expansion of health insurance coverage alone cannot achieve this. We believe that the Vietnamese experience has valuable implications for other emerging and developing countries, considering that the expansion of health insurance coverage is likely to increase utilization of healthcare services significantly and that the supply side needs to be prepared for the increase.     

PLM education in production design and engineering by e-Learning

These days more attention is being paid to Product Lifecycle Management (PLM) using a technique for managing total product planning, design, manufacturing, sales, and disposal. We researched business processes and education curriculum of the PLM system in manufacturing businesses. We designed the curriculum of PLM education and developed part of a lesson. Most importantly, e-Learning is shown to be an effective tool for achieving educational objectives. We found that not only knowledge and theory but also practical education methods using case studies in an e-Learning environment are necessary for human resources to develop effective PLM.     

Population and Urbanization Trends in Post‐war Japan

This paper analyses the population change and urbanization process in post‐war Japan. We trace the process of population concentration into urban areas, in parallel with economic development after the war. The concentration of population into urban areas can be characterized by three major metropolitan regions: Tokyo, Keihanshin (Kyoto‐Osaka‐Kobe) and Nagoya. We also show that the urbanization process of Japan in the period from 1965 to 1985 can be characterized by two spatial phenomena; firstly, the suburbanization of the existing metropolitan areas and, secondly, the spatial dispersal of urbanized areas.