Browsing by Author "Young, Richard D."
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Item An implicit enumeration algorithm employing surrogate constraints for solving linear programs with zero-one variables(1978) Dimitriou, John I.; Young, Richard D.In this paper, an implicit enumeration algorithm is illustrated. Surrogate constraints were used in a special way, to modify and thus obtain) another version of implicit enumeration for solving zero-one problems. For unity and completeness of the paper a brief background is given on the basic ideas of implicit enumeration, and on how surrogate constraints are normally used. Then the algorithm and its rules follow, as special cases of the general considerations. Finally a computer code illustrates the practicality of the method. Further research can be done, to determine how surrogate constraints affect the efficiency of the algorithm, the number of iterations and the computational time.Item External debt in the Peruvian economy: 1972-1978(1982) Olaechea, Mariana; Smith, Gordon W.; Soligo, Ronald; Young, Richard D.This thesis examines the public and publicly guaranteed medium and long-term external debt situation of the Peruvian economy during the period 1972-1978. Two studies that aim at predicting potential debt servicing problems in a particular country-year, examined in this study, are applied to the Peruvian economy for the period following the debt reschedulings undertaken in 1968 and 1969. The results obtained from applying both econometric debt early warning systems to the Peruvian case show that, as expected, both systems overestimated the number and likelihood of actual formal reschedulings for the Peruvian economy; the debt rescheduling, in fact, took place in 1978. The faulty predictions were chiefly accounted for by the deficiencies of the debt service ratio as an indicator of possible debt servicing problems and by the balance of payments financing, which essentially, is not accounted for in both systems.Item Japanese investments in Taiwan(1977) Huang, Lih-Yun; Young, Richard D.The present paper undertakes an examination of multinational investments from the point of view of the host country. The contributions of foreign investments are often overestimated. Due to the resource commitments to the parent company,.foreign affiliates may have a bias favoring purchase of inputs from the parent country; and the bulk of production is exported either back to the parent country or to third countries. Because of this tendency, increasing investment by multinational firms eventually may lead the host country to become a footloose base economy. This would heighten the vulnerability of the host country’s economy to the economic and political vagaries of international commodity markets. To examine the above statements, some instances of Japanese investment in Taiwan are considered. The study suggests, for three major Japanese investment industries--electronic and electrical appliances, chemicals, and textiles--as long as Japanese can supply the inputs, Japanese firms tend to import more from Japan than local firms, and export about the same amounts back to Japan.Item Overvaluation of the exchange rate: the Peruvian case, 1968-1975(1979) Mendoza, Valdemaro J.; Soligo, Ronald; Smith, Gordon W.; Young, Richard D.Between 1968 and 1975 the exchange rate became increasingly overvalued in Peru. During the same period.the government began to participate increasingly in the economy implementing a massive investment program. Expansionary fiscal and monetary policies supported its activities and resulted in an increase in the level of domestic demand over the production possibilities of the country. The current account balance deteriorated progressively reaching in 1975 a deficit of a magnitude never before experienced by the economy. Both, the overvaluation of the exchange rate and the overspending policy contributed to the formation of the trade disequilibriums. In 1975 international reserves were depleted and the first of a series of devaluations which would continue during 1976 and 1977- took place. The analysis of the effects of the overvaluation and the devaluation of the exchange rate is undertaken in terms of a two goods model of tradables and non-tradables under the small country assumption. An overvalued exchange rate favors the absorption of tradables while resources are shifted towards the sectors of production of non-tradables. To improve the balance of trade, a devaluation will have to reduce the domestic absorption of tradables and increase their level of production, if full employment of resources or short run inmobility of factors exist, devaluation will have to rely in the reduction in the level of domestic absorption to improve the balance of trade. In the long run, devaluation will favor a composition of absorption compatible with domestic production. The main conclusions of the analysis of the effects of the overvaluation and the devaluation in Peru are: i) The overvaluation by itself could not explain either the significant Increase in the demand for imports, or the increase in the domestic demand for exportables; ii) The nature of the Peruvian imports and exportables permits the conclusion that the trade disequilibriums resulted principally from the increase in domestic demand; iii) The principal effect of the overvaluation was manifested in the allocation of resources; iv) The initial effects of the devaluations was not strong enough to significantly improve the trade balance. However, exports increased and imports were reduced in the short run due to the reduction in the level of domestic absorption; v) This reduction resulted also in a decrease in the absorption of non-traded goods which determined a decrease in the level of domestic output.Item Scale effects in the Southern Electric Utility industry and the performance of Houston Lighting and Power relative to other southern utilities(1984) Krasner, Thomas P.; Young, Richard D.; Huddle, Donald L.; Blanco, Herminio A.Using an econometric, cost function analysis, the author found large economies of scale, and in some cases, large diseconomies of scale associated with firm size. The regressions supported the findings of previous authors, which suggest the existence of constant returns to scale for fimrs above 4 MW. The effect of capacity factor proved to be minor. Input prices as well as regional and technological distinctions explained significant cost variation. Cost differences between Houston Lighting and Power and the other companies in the sample, whether positive or negative, seemed due to economies of scale and HL&P's wage structure. In most cases these cost differences were minor. HL&P’s recent nuclear and coal construction programs were also considered. HL&P initiated its nuclear construction program in national and regional environments which favored nuclear power. According to cost estimates in the 197s, nuclear generating costs would undercut those of coal or lignite. Like other utilities, HL&P seemed to not anticipate future nuclear cost escalation. Further contributing to its cost overruns, HL&P hired Brown & Root, a contractor without previous nuclear experience, and failed to provide adequate quality control. HL&P's coal construction costs appear reasonable. Its need for new coal plants, however, is debatable.Item Taxation of corporate sector on capital income under the economic recovery tax act of 1981(1983) Hong, Chien-Hui Maria; Zodrow, George; Mieszkowski, Peter; Young, Richard D.The Economic Recovery Tax Act of 1981 included large business and individual tax cuts. The Accelerated Cost Recovery System changes two key provisions for capital cost recovery -- the depreciation allowance and the investment tax credit. The marginal effective corporate tax rates calculated from the cost of capital formula under ACRS are presented in this thesis. The "overall" effective marginal tax rates for different inflation rates are calculated under the new tax law. It considers not only the tax paid by the corporations themselves but also the tax paid by the individuals and institutions that provide capital to the corporate sector. My calculations indicate that ERTA reduces the overall effective marginal tax rate, especially when inflation rate is low. It is found that the overall effective tax rate is sensitive to inflation.Item The internationalization of weapons-system acquisition(1967) Behrman, John Robert; Young, Richard D."The Internationalization of Weapons-Systems Acquisition" examines the strategic and economic aspects of past, present, and future patterns of officially sanctioned or directed armaments trade among the N.A.T.O. allies. The analysis is based on an international trade model adapted to the peculiar strategic objectives and constraints obtaining under contemporary circumstances of production and development. In particular, the thesis relates its view of alternative trade patterns to issues posed by national and international stakes in mobilization base configuration and arms control measures. While not explicitly depicting them in detail, the model is developed against the historical background and financial milieu which impinge on present and prospective institutions through changing modes of political, interpretation. Though not empirically applicable in its present form, the model serves to economically summarize disparate sources of pertinent information and, thus, to contribute to the substantiation of judgments concerning current practices and the prospects for such future developments in the area of international weapons development and production as the proposed Common Defense Market.Item The prospects for competition in the computer software market(1972) Sirchio, Richard John; Young, Richard D.In January of 1969, the Justice Department initiated antitrust proceedings against IBM -- the principal competitor in the computer industry. A major contention in the government's suit was that by setting one price for both the computers it manufactured and the programs used with them, the company had inhibited the development of an independent software market. IBM responded to this suit by announcing that in the future it would separately price many of the programs that it offered its customers. This change caused many industry analysts to project the development of a highly competitive trade for computer programs. Despite the threat of antitrust action and the pricing change, IBM still has powerful incentives to control the supply of software to its computer users. Both the software products themselves and the software producer influence the demand curve for hardware. Furthermore, in the software sector, there exists certain structural features which the company can exploit in inhibiting potential competitors' attempts to enter the market. Scale economy barriers and absolute cost barriers are seen to exist in the software sector. Considering these barriers, it is possible to conceptualize, within the framework of a profit maximizing model encompassing multiple complimentary goods, an output determining policy on the part of IBM designed to exclude entry. Thus this analysis indicates that any prediction as to the future competive nature of the software market is questionable.