An Algorithmic Measurement of Technical Progress

In this paper we propose a measure of technological progress which is based on the information embedded in standard input-output tables. Well known duality properties enables one to establish a connection between the quantities necessary as inputs and the associated output and some auxiliary prices (like the wage-profit curves). We claim that properly tailored wage-profit frontiers may provide a basis for the measurement of technological progress. But the computation of these wage-profit frontiers is not trivial. A brute force algorithm for the computation of the wage-profit frontiers has high combinatorial complexity that would make its precise computation intractable. But thanks to an efficient algorithm that we have been able to devise we can now compute it. We consider this to be an important and original contribution. Here we present and apply this algorithm. Due to this improvement we can now use these wage-profit frontiers as benchmarks against which to measure technological progress: two new indices have been defined. These new tools have have been applied to the OECD input-output data 1970-2005 and the reslts are presented here.Technological Change, Convergence, Input-output analysis, Technological Frontier, Computational Techniques

Stock Market Predictability in the MENA: Evidence from New Variance Ratio Tests and Technical Trade Analysis

The objective of this paper is to test for predictability in the Middle-Eastern North African (MENA) markets by investigating both the weak-form efficiency hypothesis (WFEMH) and the presence of abnormal returns. Starting with tests for the random-walk hypothesis, we use daily data returns and a battery of econometric tests including unit-root analysis, individual and multiple variance ratio, wild bootstrapping and non-parametric tests based on ranks. Our results suggest that only the region’s largest markets, Israel and Turkey, follow a random walk. Turning to technical trade analysis, our results reinforce the hypothesis of stock market predictability. Both variable moving average (VMA) and trade range breaking (TRB) trade rules yield significant abnormal returns. We complete the analysis with profit simulations based on the breakeven costs computation methodology and taking into account local transaction costs. Our findings highlight the presence of significant portfolio investment opportunities in the MENA.Emerging markets, stock market predictability, portfolio analysis.

An Optimal Control Theory for the Traveling Salesman Problem and Its Variants

We show that the traveling salesman problem (TSP) and its many variants may be modeled as functional optimization problems over a graph. In this formulation, all vertices and arcs of the graph are functionals; i.e., a mapping from a space of measurable functions to the field of real numbers. Many variants of the TSP, such as those with neighborhoods, with forbidden neighborhoods, with time-windows and with profits, can all be framed under this construct. In sharp contrast to their discrete-optimization counterparts, the modeling constructs presented in this paper represent a fundamentally new domain of analysis and computation for TSPs and their variants. Beyond its apparent mathematical unification of a class of problems in graph theory, the main advantage of the new approach is that it facilitates the modeling of certain application-specific problems in their home space of measurable functions. Consequently, certain elements of economic system theory such as dynamical models and continuous-time cost/profit functionals can be directly incorporated in the new optimization problem formulation. Furthermore, subtour elimination constraints, prevalent in discrete optimization formulations, are naturally enforced through continuity requirements. The price for the new modeling framework is nonsmooth functionals. Although a number of theoretical issues remain open in the proposed mathematical framework, we demonstrate the computational viability of the new modeling constructs over a sample set of problems to illustrate the rapid production of end-to-end TSP solutions to extensively-constrained practical problems.Comment: 24 pages, 8 figure

Computation in the Analysis of Techno-Economic of the Production of Al2O3 (Aluminum Oxide) Nanoparticles through Precipitation Method

This study aims to demonstrate computation in the techno-economic analysis of the production of aluminum oxide (Al2O3) using the precipitation method on an industrial scale. This evaluation is based on the perspective of technical and economic evaluation. Several economic evaluation parameters were analyzed to obtain potential information from the manufacture of Al2O3 nanoparticles based on gross profit margin, payback period, and cumulative net present value. The results of this study identified that the manufacture of Al2O3 nanoparticles using the precipitation method could be done industrially. Based on the engineering perspective, Al2O3 nanoparticles can be produced as much as 6.9 tons and earn an annual profit of 144,635.69 USD with a period of 20 years. To ensure that this project can be carried out, an economic evaluation is made based on estimates of ideal and non-ideal conditions, including tax increases, sales changes, raw material prices, utility prices, and labor’s salary. This study is expected to provide information for the manufacture of Al2O3 nanoparticles using the precipitation method on an industrial scale

The effective tax burden of companies in the member states of the EU : the perspective of a multinational investor

This study presents estimates of the effective levels of company taxation in the 15 Member States of the EU. The study is established from the perspective of a multinational investor and provides relevant qualitative and quantitative information about the company tax regimes in the EU Member States which are in force in 2001. The main aim of the study is to compute and to compare effective marginal tax rates (EMTR) on domestic investment in all 15 EU Member States. A secondary aim is to work out the impact of the different tax drivers on the effective tax burden, i.e. to analyse how the EMTRs of the Member States are influenced by the tax systems, the different types of profit and non-profit taxes, the tax bases and the tax rates. The computation of the EMTR and the quantitative analysis is based on the well known approach of King and Fullerton which is also used, for example, in international tax burden comparison by the OECD and the European Commission. We refer to a typical manufacturing company as a base case. This company – which has the legal structure of a corporation – is characterised by a particular combination of investments and forms of finance. We considered five different types of investment: intangibles, industrial buildings, machinery, financial assets and inventories. The financing policy considered three sources of finance: new equity capital, retained earnings and debt. The calculations take into account the most relevant tax provisions. Relating to company taxation, we considered the corporation tax, additional profit taxes and non-profit taxes, the tax rates and the most relevant aspects of the tax base. Chapter B presents a brief and well structured overview on the company tax regimes in the EU Member States