Search results for: residual income valuation model

Authors: Sandra Cecilia Bautista-Rodríguez, Vladimir Melgarejo

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Climate change, loss of ecosystems, increasing poverty, increasing marginalization of rural communities and declining food security are global issues that require urgent attention. In this regard, a great deal of research has focused on how agroecosystems respond to these challenges as they provide ecosystem services (ES) that lead to higher levels of resilience, adaptation, productivity and self-sufficiency. Hence, the valuing of ecosystem services plays an important role in the decision-making process for the design and management of agroecosystems. This paper aims to define the link between ecosystem service valuation methods and ES value dimensions in agroecosystems from ecological economics and agroecology. The method used to identify valuation methodologies was a literature review in the fields of Agroecology and Ecological Economics, based on a strategy of information search and classification. The conceptual framework of the work is based on the multidimensionality of value, considering the social, ecological, political, technological and economic dimensions. Likewise, the valuation process requires consideration of the ecosystem function associated with ES, such as regulation, habitat, production and information functions. In this way, valuation methods for ES in agroecosystems can integrate more than one value dimension and at least one ecosystem function. The results allow correlating the ecosystem functions with the ecosystem services valued, and the specific tools or models used, the dimensions and valuation methods. The main methodologies identified are multi-criteria valuation (1), deliberative - consultative valuation (2), valuation based on system dynamics modeling (3), valuation through energy or biophysical balances (4), valuation through fuzzy logic modeling (5), valuation based on agent-based modeling (6). Amongst the main conclusions, it is highlighted that the system dynamics modeling approach has a high potential for development in valuation processes, due to its ability to integrate other methods, especially multi-criteria valuation and energy and biophysical balances, to describe through causal cycles the interrelationships between ecosystem services, the dimensions of value in agroecosystems, thus showing the relationships between the value of ecosystem services and the welfare of communities. As for methodological challenges, it is relevant to achieve the integration of tools and models provided by different methods, to incorporate the characteristics of a complex system such as the agroecosystem, which allows reducing the limitations in the processes of valuation of ES.

Keywords: ecological economics, agroecosystems, ecosystem services, valuation of ecosystem services

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Authors: Wei-Neng Wang, Jhy-Yuan Shieh, Jhy-Hwa Chen, Juin-Jen Chang

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This paper incorporate tax evasion into a one-sector real business cycle (RBC) model to explores the quantitative interrelations between income tax rate and equilibrium (in)determinacy, and income tax rate is endogenously determined in order to balance the government budget. We find that the level of the effective income tax rate is key factor for equilibrium (in)determinacy, instead of the level of income tax rate in a tax evasion economy. Under an economy with tax evasion, the higher income tax rate is not sufficiently to lead to equilibrium indeterminate, it must combine with a necessary condition which is the lower fraction of tax evasion and that can result in agents' optimistic expectations to become self-fulfilling and sunspot fluctuation more likely to occur. On the other hand, an economy with tax evasion can see its macroeconomy become more stabilize, and a higher fraction of income tax evasion may has a stronger stabilizing effect.

Keywords: tax evasion, balanced-budget rule, equlibirium (in)determinacy, effective income tax rate

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Authors: Kazeem Adesina Dauda, Waheed Babatunde Yahya

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To design a tree that maximizes within-node homogeneity, there is a need for a homogeneity measure that is appropriate for event history data with multiple risks. We consider the use of Deviance and Modified Cox-Snell residuals as a measure of impurity in Classification Regression Tree (CART) and compare our results with the results of Fiona (2008) in which homogeneity measures were based on Martingale Residual. Data structure approach was used to validate the performance of our proposed techniques via simulation and real life data. The results of univariate competing risk revealed that: using Deviance and Cox-Snell residuals as a response in within node homogeneity classification tree perform better than using other residuals irrespective of performance techniques. Bone marrow transplant data and double-blinded randomized clinical trial, conducted in other to compare two treatments for patients with prostate cancer were used to demonstrate the efficiency of our proposed method vis-à-vis the existing ones. Results from empirical studies of the bone marrow transplant data showed that the proposed model with Cox-Snell residual (Deviance=16.6498) performs better than both the Martingale residual (deviance=160.3592) and Deviance residual (Deviance=556.8822) in both event of interest and competing risks. Additionally, results from prostate cancer also reveal the performance of proposed model over the existing one in both causes, interestingly, Cox-Snell residual (MSE=0.01783563) outfit both the Martingale residual (MSE=0.1853148) and Deviance residual (MSE=0.8043366). Moreover, these results validate those obtained from the Monte-Carlo studies.

Keywords: within-node homogeneity, Martingale residual, modified Cox-Snell residual, classification and regression tree

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Authors: Li Sheng

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Based on an extended post-Keynesian model, we find that the association between the savings rate and income inequality is negative if savers’ funds are borrowed by spending households for consumption but positive if savings are channeled to investing firms for production. A negative association, such as the one that exists in the U.S., hinges on an income illusion created by an asset bubble and cheap credit. Thus, financial globalization leads consumption and income inequality to diverge, and the divergence is more extreme if lower-income groups have higher debt ratios. A positive association, such as the one that exists in China, relates to liquidity constraints faced by consumers such that consumption inequality closely follows income inequality. Our results imply that income inequality must be reduced in both types of countries to increase savings in deficit economies with negative associations and to reduce savings in surplus economies with positive associations.

Keywords: savings rate, income inequality, financial globalization, global imbalances

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Authors: Shibo Wei, Ting Jiang

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Convolutional-recurrent neural networks (CRN) have achieved much success recently in the speech enhancement field. The common processing method is to use the convolution layer to compress the feature space by multiple upsampling and then model the compressed features with the LSTM layer. At last, the enhanced speech is obtained by deconvolution operation to integrate the global information of the speech sequence. However, the feature space compression process may cause the loss of information, so we propose to model the upsampling result of each step with the residual LSTM layer, then join it with the output of the deconvolution layer and input them to the next deconvolution layer, by this way, we want to integrate the global information of speech sequence better. The experimental results show the network model (RES-CRN) we introduce can achieve better performance than LSTM without residual and overlaying LSTM simply in the original CRN in terms of scale-invariant signal-to-distortion ratio (SI-SNR), speech quality (PESQ), and intelligibility (STOI).

Keywords: convolutional-recurrent neural networks, speech enhancement, residual LSTM, SI-SNR

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Authors: Quang Dong Dang

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This paper examines the possible effects of stock market developments by channels on income and wealth inequality. We use the Bayesian Multilevel Model with the explanatory variables of the market’s channels, such as accessibility, efficiency, and market health in six selected countries: the US, UK, Japan, Vietnam, Thailand, and Malaysia. We found that generally, the improvements in the stock market alleviate income inequality. However, stock market expansions in higher-income countries are likely to trigger income inequality. We also found that while enhancing the quality of channels of the stock market has counter-effects on wealth equality distributions, open accessibilities help reduce wealth inequality distributions within the scope of the study. In addition, the inverted U-shaped hypothesis seems not to be valid in six selected countries between the period from 2006 to 2020.

Keywords: Bayesian multilevel model, income inequality, inverted u-shaped hypothesis, stock market development, wealth inequality

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Authors: M. Ndaw, G. Mendy, S. Ouya

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Risk management in banking sector is a key issue linked to financial system stability and its importance has been elevated by technological developments and emergence of new financial instruments. In this paper, we improve the model previously defined for quantifying internal control impact on banking risks by automatizing the residual criticality estimation step of FMECA. For this, we defined three equations and a maturity coefficient to obtain a mathematical model which is tested on all banking processes and type of risks. The new model allows an optimal assessment of residual criticality and improves the correlation rate that has become 98%.

Keywords: risk, control, banking, FMECA, criticality

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Authors: Mu-Yen Chen, Min-Hsuan Fan, Chia-Chen Chen, Siang-Yu Jhong

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In recent years, real estate prediction or valuation has been a topic of discussion in many developed countries. Improper hype created by investors leads to fluctuating prices of real estate, affecting many consumers to purchase their own homes. Therefore, scholars from various countries have conducted research in real estate valuation and prediction. With the back-propagation neural network that has been popular in recent years and the orthogonal array in the Taguchi method, this study aimed to find the optimal parameter combination at different levels of orthogonal array after the system presented different parameter combinations, so that the artificial neural network obtained the most accurate results. The experimental results also demonstrated that the method presented in the study had a better result than traditional machine learning. Finally, it also showed that the model proposed in this study had the optimal predictive effect, and could significantly reduce the cost of time in simulation operation. The best predictive results could be found with a fewer number of experiments more efficiently. Thus users could predict a real estate transaction price that is not far from the current actual prices.

Keywords: artificial neural network, Taguchi method, real estate valuation model, investors

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Authors: Alicja Reuben, Amira Annabi

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In this paper, we explore the relationship between the selection of valuation techniques by investment banks and the banks’ risk perceptions and performance in the context of the theory of performativity. We use inferential statistics to study these relationships by building a unique dataset based on the disclosure of 12 investment banks’ 2012-2015 annual financial statements. Moreover, we create two constructs, namely intensity of use and risk perception. We measure the intensity of use as a frequency metric of how often a particular bank adopts valuation techniques for a particular asset or liability. We measure risk perception based on disclosed ranges of values for unobservable inputs. Our results are twofold: we find a significant negative correlation between (1) intensity of use and investment bank performance and (2) intensity of use and risk perception. These results indicate that a performative process takes place, and the valuation techniques are enacting their environment.

Keywords: language, linguistics, performativity, financial techniques

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Authors: Petra Buzkova, Milos Kopa

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Reliability of the credit default swap market had been questioned repeatedly during the EMU debt crisis. The article examines whether this development influenced sovereign EMU CDS prices in general. We regress the CDS market price on a model risk neutral CDS price obtained from an adopted reduced form valuation model in the 2009-2013 period. We look for a break point in the single-equation and multi-equation econometric models in order to show the changes in relations between CDS market and model prices. Our results differ according to the risk profile of a country. We find that in the case of riskier countries, the relationship between the market and model price changed when market participants started to question the ability of CDS contracts to protect their buyers. Specifically, it weakened after the change. In the case of less risky countries, the change happened earlier and the effect of a weakened relationship is not observed.

Keywords: chow stability test, credit default swap, debt crisis, reduced form valuation model, seemingly unrelated regression

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Authors: Xiaoying Guo, Xiangyun Wang, Chunhua Jia

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Web page has been one of the most important way of knowing the world. Humans catch a lot of information from it everyday. Thus, understanding where human looks when they surfing the web pages is rather important. In normal scenes, the down-top features and top-down tasks significantly affect humans’ eye movement. In this paper, we investigated if the conventional visual salience algorithm can properly predict humans’ visual attractive region when they viewing the web pages. First, we obtained the eye movement data when the participants viewing the web pages using an eye tracker. By the analysis of eye movement data, we studied the influence of visual saliency and thinking way on eye-movement pattern. The analysis result showed that thinking way affect human’ eye-movement pattern much more than visual saliency. Second, we compared the results of web page visual salience region extracted by Itti model and Spectral Residual (SR) model. The results showed that Spectral Residual (SR) model performs superior than Itti model by comparison with the heat map from eye movements. Considering the influence of mind habit on humans’ visual region of interest, we introduced one of the most important cue in mind habit-fixation position to improved the SR model. The result showed that the improved SR model can better predict the human visual region of interest in web pages.

Keywords: web page salience region, eye-tracker, spectral residual, visual salience

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Authors: Mulugeta Fola, Mengistu Ketema, Kumilachew Alamerie

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Watershed provides vast economic benefits within and beyond the management area of interest. But most watersheds in Ethiopia are increasingly facing the threats of degradation due to both natural and man-made causes. To reverse these problems, communities’ participation in sustainable management programs is among the necessary measures. Hence, this study assessed the households’ willingness to pay for watershed management practices through a contingent valuation study approach. Double bounded dichotomous choice with open-ended follow-up format was used to elicit the households’ willingness to pay. Based on data collected from 275 randomly selected households, descriptive statistics results indicated that most households (79.64%) were willing to pay for watershed management practices. A bivariate Probit model was employed to identify determinants of households’ willingness to pay and estimate mean willingness to pay. Its result shows that age, gender, income, livestock size, perception of watershed degradation, social position, and offered bids were important variables affecting willingness to pay for watershed management practices. The study also revealed that the mean willingness to pay for watershed management practices was calculated to be 58.41 Birr and 47.27 Birr per year from the double bounded and open-ended format, respectively. The study revealed that the aggregate welfare gains from watershed management practices were calculated to be 931581.09 Birr and 753909.23 Birr per year from double bounded dichotomous choice and open-ended format, respectively. Therefore, the policymakers should make households to pay for the services of watershed management practices in the study area.

Keywords: bivariate probit model, contingent valuation, watershed management practices, willingness to pay

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Authors: Ahmed M. Ashteyat

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Artificial Neural Network (ANN) models have been widely used in material modeling, inter-correlations, as well as behavior and trend predictions when the nonlinear relationship between system parameters cannot be quantified explicitly and mathematically. In this paper, ANN was used to predict the residual modulus of elasticity (RME) of self compacted concrete (SCC) damaged by heat. The ANN model was built, trained, tested and validated using a total of 112 experimental data sets, gathered from available literature. The data used in model development included temperature, relative humidity conditions, mix proportions, filler types, and fiber type. The result of ANN training, testing, and validation indicated that the RME of SCC, exposed to different temperature and relative humidity levels, could be predicted accurately with ANN techniques. The reliability between the predicated outputs and the actual experimental data was 99%. This show that ANN has strong potential as a feasible tool for predicting residual elastic modulus of SCC damaged by heat within the range of input parameter. The ANN model could be used to estimate the RME of SCC, as a rapid inexpensive substitute for the much more complicated and time consuming direct measurement of the RME of SCC.

Keywords: residual modulus of elasticity, artificial neural networks, self compacted-concrete, material modeling

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Authors: Oladipo Joseph Ajayi, Yakubu Muhammed, Caleb Galadima

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This study was conducted to examine the income diversification of smallholder farmers in Bosso Local Government area of Niger state, Nigeria. The specific objectives were to examine the socio-economic characteristics of the farmers, identify the sources of income among the farmers, determine the pattern of income diversification and evaluate the determinants of income diversification of farmers in the study area. A multi-stage sampling technique was used to select 94 respondents for the study. Primary data were used, and these were collected with aid of a well structured interview schedule. Descriptive statistics, diversity index, and Tobit regression model were employed to analyze the data. The mean age of the farmers was 44 years. The average household size was 8 members per household, and the average farming experience was 12 years. 21.27 percent did not have formal education. It was further found that 69.1 percent of the respondents had an income diversity index of 0.3-0.4. This indicated that their level of income diversification was moderately low. The determinants of income diversification in the study area were education, household size, marital status, and primary income. These variables were positively related to income diversification. The study revealed that diversification into various income sources has helped to increase household income to sustain the family demands even though their level of income diversification was low within the study area.

Keywords: diversification, income, households, smallholder farmers

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Authors: Karolína Vozková, Matěj Kuc

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Net fee and commission income is one of the key elements of a bank’s core income. In the current low-interest rate environment, this type of income is gaining importance relative to net interest income. This paper analyses the effects of bank and country specific determinants of net fee and commission income on a set of cooperative banks from European countries in the 2007-2014 period. In order to do that, dynamic panel data methods (system Generalized Methods of Moments) were employed. Subsequently, alternative panel data methods were run as robustness checks of the analysis. Strong positive impact of bank concentration on the share of net fee and commission income was found, which proves that cooperative banks tend to display a higher share of fee income in less competitive markets. This is probably connected with the fact that they stick with their traditional deposit-taking and loan-providing model and fees on these services are driven down by the competitors. Moreover, compared to commercial banks, cooperatives do not expand heavily into non-traditional fee bearing services under competition and their overall fee income share is therefore decreasing with the increased competitiveness of the sector.

Keywords: cooperative banking, dynamic panel data models, net fee and commission income, system GMM

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Authors: Hao Chen, Bo Guo, Ping Jiang

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Residual life (RL) estimation based on multi-phase nonlinear Wiener process was studied in this paper, which is significant for complicated products with small samples. Firstly, nonlinear Wiener model with random parameter was introduced and multi-phase nonlinear Wiener model was proposed to model degradation process of products that were nonlinear and separated into different phases. Then the multi-phase RL probability density function based on the presented model was derived approximately in a closed form and parameters estimation was achieved with the method of maximum likelihood estimation (MLE). Finally, the method was applied to estimate the RL of high voltage plus capacitor. Compared with the other three different models by log-likelihood function (Log-LF) and Akaike information criterion (AIC), the results show that the proposed degradation model can capture degradation process of high voltage plus capacitors in a better way and provide a more reliable result.

Keywords: multi-phase nonlinear wiener process, residual life estimation, maximum likelihood estimation, high voltage plus capacitor

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Authors: Brenda R. Berca, Jessica S. Vieira, Lucas G. Candido, Matheus C. Ferreira, Paulo S. A. Lopes Filho, Rafaella O. Baracho

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This study aims to estimate the economic value environmental services sustained by Flamboyant Lourival Louza Municipal Park in Goiânia, Goiás, Brazil. The Flamboyant Park is one of the most relevant urban parks, and it is located near a stadium, a shopping center, and two supercenters. In order to define the methods used for the valuation of Flamboyant Park, the first step was carrying out bibliographical research with the view to better understand which method is most feasible to valuate the Park. Thus, the following direct methods were selected: travel cost, hedonic pricing, and contingent valuation. In addition, an indirect method (replacement cost) was applied at Flamboyant Park. The second step was creating and applying two surveys. The first survey aimed at the visitors of the park, addressing socio-economic issues, the use of the Park, as well as its importance and the willingness the visitors, had to pay for its existence. The second survey was destined to the existing trade in the Park, in order to collect data regarding the profits obtained by them. In the end, the characterization of the profile of the visitors and the application of the methods of contingent valuation, travel cost, replacement cost and hedonic pricing were obtained, thus monetarily valuing the various ecosystem services sustained by the park. Some services were not valued due to difficulties encountered during the process.

Keywords: contingent valuation, ecosystem services, economic environmental valuation, hedonic pricing, travel cost

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Authors: M. A. Askari, M. A. Nazari, P. Perrier, Y. Payan

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Growth and remodeling of biological structures have gained lots of attention over the past decades. Determining the response of living tissues to mechanical loads is necessary for a wide range of developing fields such as prosthetics design or computerassisted surgical interventions. It is a well-known fact that biological structures are never stress-free, even when externally unloaded. The exact origin of these residual stresses is not clear, but theoretically, growth is one of the main sources. Extracting body organ’s shapes from medical imaging does not produce any information regarding the existing residual stresses in that organ. The simplest cause of such stresses is gravity since an organ grows under its influence from birth. Ignoring such residual stresses might cause erroneous results in numerical simulations. Accounting for residual stresses due to tissue growth can improve the accuracy of mechanical analysis results. This paper presents an original computational framework based on gradual growth to determine the residual stresses due to growth. To illustrate the method, we apply it to a finite element model of a healthy human face reconstructed from medical images. The distribution of residual stress in facial tissues is computed, which can overcome the effect of gravity and maintain tissues firmness. Our assumption is that tissue wrinkles caused by aging could be a consequence of decreasing residual stress and thus not counteracting gravity. Taking into account these stresses seems therefore extremely important in maxillofacial surgery. It would indeed help surgeons to estimate tissues changes after surgery.

Keywords: finite element method, growth, residual stress, soft tissue

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Authors: Saba Arif, Anam Nadeem, Roman Kalvin, Tanzeel Rashid, Burhan Ali, Juntakan Taweekun

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Currently, the energy crisis is taking serious attention. Globally, industries and building are major share takers of energy. 72% of total global energy is consumed by residential houses, markets, and commercial building. Additionally, in appliances air conditioners are major consumer of electricity; about 60% energy is used for cooling purpose in houses due to HVAC units. Energy demand will aid in determining what changes will be needed whether it is the estimation of the required energy for households or instituting conservation measures. Bottom-up model is one of the most famous methods for forecasting. In current research bottom-up model of air conditioners' energy consumption in all income classes in comparison with seasonal variation and hourly consumption is calculated. By comparison of energy consumption of all income classes by usage of air conditioners, total consumption of actual demand and current availability can be seen.

Keywords: air conditioning, bottom up model, income classes, energy demand

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Authors: F. Husem, M. E. Turan, Y. Sun, H. Ahlatci, I. Tozlu

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Residual stress and fatigue crack growth rates are important to determine mechanical behavior of rails. This study aims to make relationship between residual stress and fatigue crack growth values in rails. For this purpose, three R260 quality rails (0.6-0.8% C, 0.6-1.25 Mn) were chosen. Residual stress of samples was measured by cutting method that is related in railway standard. Then samples were machined for fatigue crack growth test and analyze was completed according to the ASTM E647 standard which gives information about parameters of rails for this test. Microstructure characterizations were examined by Light Optic Microscope (LOM). The results showed that residual stress change with fatigue crack growth rate. The sample has highest residual stress exhibits highest crack growth rate and pearlitic structure can be seen clearly for all samples by microstructure analyze.

Keywords: residual stress, fatigue crack growth, R260, SEM, ASTM E647

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Authors: A. Mukrimah, M. Mohd Parid, H. F. Lim

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Wetland ecosystem has valuable resources that contribute to national income generation and public well-being, either directly by resources that have a market value or indirectly by resources that have no market value. Economic approach is used to evaluate the resources to determine the best use of wetland resources and should be emphasized in policy development planning. This approach is to prevent imbalance in the allocation of resources and welfare benefits. A case study was conducted in 2016 to assess the economic value of wetland ecosystem services at Pulau Kukup National Parks (PKNP). This study has applied dichotomous choice survey design Contingent Valuation Method (CVM) to investigate empirically the willingness-to-pay (WTP) by the public. The study interviewed 400 household respondents at Pontian, Johor. Analysis showed 81% of household interviewed were willing to contribute to the Wetland Conservation Trust Fund. The results also indicated that on average a household was willing to pay RM87 annually. By taking into account 21,664 households in Pontian district in 2016, public’s contribution to conserves wetland ecosystem at PKNP was calculated to be RM1, 884,334. From the public’s interest to contribute to the conservation of wetland ecosystem services at PKNP, it indicates that more concerted effort is needed by both the federal and state governments to conserve and rehabilitate the mangrove ecosystem in Malaysia.

Keywords: environmental economy, economic valuation, choice experiment, Pulau Kukup national parks

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Authors: Anurag Niranjan, Michael Fitzpatrick, Yin Jin Janin, Jazeel Chukkan, Niall Smyth

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Fillet welds are used in joining longitudinal stiffeners in ship structures. Welding residual stresses in fillet welds are generally distributed in a non-uniform manner, as shown in previous research the residual stress redistribution occurs under the cyclic loading that is experienced by such joints during service, and the combination of the initial residual stress, local constraints, and loading can alter the stress field in ways that are extremely difficult to predict. As the residual stress influences the crack propagation originating from the toe of the fillet welds, full understanding of the residual stress field and how it evolves is very important for structural integrity calculations. Knowledge of the residual stress redistribution in the presence of a flaw is therefore required for better fatigue life prediction. Moreover, defect assessment procedures such as BS7910 offer very limited guidance for flaw acceptance and the associated residual stress redistribution in the assessment of fillet welds. Therefore the objective of this work is to study a surface-breaking flaw at the weld toe region in a fillet weld under cyclic load, in conjunction with residual stress measurement at pre-defined crack depths. This work will provide details of residual stress redistribution under cyclic load in the presence of a crack. The outcome of this project will inform integrity assessment with respect to the treatment of residual stress in fillet welds. Knowledge of the residual stress evolution for this weld geometry will be greatly beneficial for flaw tolerance assessments (BS 7910, API 591).

Keywords: fillet weld, fatigue, residual stress, structure integrity

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Authors: H. Gholami, M. Jalali Azizpour

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For materials such as hard coating whose stresses state are difficult to obtain by a widely used method called high-speed hole-drilling method (ASTM Standard E837). It is important to develop a non contact method. This process itself imposes an additional stresses. The through thickness residual stress of st37 steel using elector-discharge was investigated. The strain gage and dynamic strain indicator used in all cases was FRS-2-11 rosette type and TML 221, respectively. The average residual stress in depth of 320 µm was -6.47 MPa.

Keywords: HVOF, residual stress, thermal spray, WC-Co

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Authors: Yu-Shan Hsu

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This paper studies a two-sector growth model with a technology of social constant returns and with a utility that features either a zero or a positive income effect on the demand for leisure. The purpose is to investigate how the existence of aggregate instability or equilibrium indeterminacy depends on both the intensity of the income effect on the demand for leisure and the value of the labor supply elasticity. The main finding is that when there is a factor intensity reversal between the private perspective and the social perspective, indeterminacy arises even if the utility has a positive income effect on leisure demand. Moreover, we find that a smaller value of the labor supply elasticity increases the range of the income effect on leisure demand and thus increases the possibility of equilibrium indeterminacy. JEL classification: E3; O41

Keywords: indeterminacy, non-separable preferences, income effect, labor supply elasticity

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Authors: D. Sersab, M. Aberkane

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Residual stresses, in high-density polyethylene (HDPE) pipes, result from a nonhomogeneous cooling rate that occurs between the inner and outer surfaces during the extrusion process in manufacture. Most known methods of measurements to determine the magnitude and profile of the residual stresses in the pipe wall thickness are layer removal and ring slitting method. The combined layer removal and ring slitting methods described in this paper involves measurement of the circumferential residual stresses with minimal local disturbance. The existing methods used for pipe geometry (ring slitting method) gives a single residual stress value at the bore. The layer removal method which is used more in flat plate specimen is implemented with ring slitting method. The method permits stress measurements to be made directly at different depth in the pipe wall and a well-defined residual stress profile was consequently obtained.

Keywords: residual stress, layer removal, ring splitting, HDPE, wall thickness

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Authors: Aklilu Zeleke

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A cross-sectional study was conducted in order to understand the effect of wet and dry seasons on the free residual chlorine and bacteriological contamination of the Addis Ababa (Ethiopia) water supply system. Water samples were taken at 30 selected distribution points and analyzed for Free Residual Chlorine and bacteriological analysis total coliforms and fecal coliform). It was found that some of the bacteriological data and Free Residual Chlorine levels are below the recommended values and beyond the maximum tolerable limits recommended by World Health Organization and Ethiopian National Standards. Water quality during the dry season is better than that of the wet season. There is a strong relationship between Free Residual Chlorine levels in drinking water and its bacteriological quality.

Keywords: addis ababa, wet season, dry season, free residual chlorine

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Authors: Shai Sarussi

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Let S be an integral domain with field of fractions F and let A be an F-algebra. An S-subalgebra R of A is called S-nice if R∩F = S and the localization of R with respect to S \{0} is A. Denoting by W the set of all S-nice subalgebras of A, and defining a notion of open sets on W, one can view W as a T0-Alexandroff space. Thus, the algebraic structure of W can be viewed from the point of view of topology. It is shown that every nonempty open subset of W has a maximal element in it, which is also a maximal element of W. Moreover, a supremum of an irreducible subset of W always exists. As a notable connection with valuation theory, one considers the case in which S is a valuation domain and A is an algebraic field extension of F; if S is indecomposed in A, then W is an irreducible topological space, and W contains a greatest element.

Keywords: integral domains, Alexandroff topology, prime spectrum of a ring, valuation domains

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Authors: Vinayak Bassi, Rajpreet Singh

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Over the years, with the emergence of sophisticated computers and algorithms, finance has been quantified using computational prowess. Asset valuation has been one of the key components of quantitative finance. In fact, it has become one of the embryonic steps in determining risk related to a portfolio, the main goal of quantitative finance. This study comprises a drawing comparison between valuation output generated by two stochastic dynamic models, namely Black-Scholes and Dupire’s bi-dimensionality model. Both of these models are formulated for computing the valuation function for a portfolio of European options using Monte Carlo simulation methods. Although Monte Carlo algorithms have a slower convergence rate than calculus-based simulation techniques (like FDM), they work quite effectively over high-dimensional dynamic models. A fidelity gap is analyzed between the static (historical) and stochastic inputs for a sample portfolio of underlying assets. In order to enhance the performance efficiency of the model, the study emphasized the use of variable reduction methods and customizing random number generators to implement parallelization. An attempt has been made to further implement the Dupire’s model on a GPU to achieve higher computational performance. Furthermore, ideas have been discussed around the performance enhancement and bottleneck identification related to the implementation of options-pricing models on GPUs.

Keywords: monte carlo, stochastic models, computational finance, parallel programming, scientific computing

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Authors: Malcolm Abbott, Angela Tan-Kantoor

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The purpose of this paper is to look at the varieties of ways in which regulators have undertaken asset valuations in Australia of government business enterprises as part of utility regulation. Regulation of the monopoly elements, through use of a building block approach, led to a need to estimate regulated asset bases. This development has had an influence on the manner in which Australian companies (both government and privately owned ones) have valued assets for the purpose of financial reporting. As the regulators in Australia did not always use a consistent approach it had meant that a variety of ways have been used to value the assets of government owned enterprises, and meant a varied impact on asset valuation more generally.

Keywords: sset valuation, regulation, government business enterprises

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Authors: I. Inthanongsone, C. Drebenstedt, J. C. Bongaerts, P. Sontamino

Abstract:

The major concern in evaluating the value of mining projects related to the deficiency of the traditional discounted cash flow (DCF) method. This method does not take uncertainties into account and, hence it does not allow for an economic assessment of managerial flexibility and operational adaptability, which are increasingly determining long-term corporate success. Such an assessment can be performed with the real options valuation (ROV) approach, since it allows for a comparative evaluation of unforeseen uncertainties in a project life cycle. This paper presents an economic evaluation model for open pit mining projects based on real options valuation approach. Uncertainties in the model are caused by metal prices and cost uncertainties and the system dynamics (SD) modeling method is used to structure and solve the real options model. The model is applied to a case study. It can be shown that that managerial flexibility reacting to uncertainties may create additional value to a mining project in comparison to the outcomes of a DCF method. One important insight for management dealing with uncertainty is seen in choosing the optimal time to exercise strategic options.

Keywords: DCF methods, ROV approach, system dynamics modeling methods, uncertainty

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