General Economic Equilibrium As a Unifying Concept in Energy - Economic Modeling
Article Abstract:
In the pristine model of general economic equilibrium producers and consumers are assumed to take prices for their inputs and outputs as given. A market equilibrium solution is obtained when the prices of all products lead to equal amounts of supply and demand for each. The mathematical properties of this model provide a rich and powerful unifying foundation for much of modern microeconomic theory. However, in many practical applications it is difficult or impossible to develop the data, and formulate and solve the equations required to implement the model of general economic equilibrium in its most general form. In practice, generality of formulation is often sacrificed for ease of computation and interpretation. These tradeoffs allow the latest breakthroughs in optimization algorithms and computer technology to be applied in the analysis of important societal problems. A potential drawback associated with this otherwise desirable trend is that the analysis could become infatuated with the use of particular algorithms, and lose sight of the restrictive simplifying assumptions they imply. The present paper includes a comparison of the simplifying assumptions required in four of the most popular types of energy-economic models with respect to the model of general economic equilibrium. This comparison helps sharpen our appreciation for the tradeoffs between generalization of formulation and ease of computation and interpretation that are available. The concept of general economic equilibrium is employed to provide a common framework for four ostensibly different approaches to large-scale modeling: (1) variable-coefficient input-output theory. (2) process network methodology. (3) linear programming and (4) general nonlinear optimization. The similarities and the differences of the four approaches are isolated within this framework. This comparison makes both the absolute and the relative strengths and weaknesses of the models more transparent. (Reprinted by Permission of Publisher.)
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1985
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Modeling Data and Process Quality in Multi-Input, Multi-Output Information Systems
Article Abstract:
This paper presents a general model to assess the impact of data and process quality upon the outputs of multi-user information-decision systems. The data flow-data processing quality control model is designed to address several dimensions of data quality at the collection, input, processing and output stages. Starting from a data flow diagram of the type used in structured analysis, the model yields a representation of possible errors in multiple intermediate and final outputs in terms of input and process error functions. The model generates expressions for the possible magnitudes of errors in selected outputs. This is accomplished using a recursive-type algorithm which traces systematically the propagation and alteration of various errors. These error expressions can be used to analyze the impact that alternative quality control procedures would have on the selected outputs.The paper concludes with a discussion of the tractability of the model for various types of information systems as well as an application to a representative scenario. (Reprinted by Permission of Publisher.)
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1985
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Modeling the Effect of Decreased Food Intake on the Activity Pattern of an Individual
Article Abstract:
A queueing model can describe the effect of decreases in food energy intake on the activity pattern of an individual. Lower energy activity is substituted for higher-energy activity. The model was validated by monitoring activities of ten male subjects under normal food intake and under a restricted diet.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1983
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