Defining efficient policies in a general equilibrium model: a multi-objective approach

Macroeconomic policy makers are typically concerned with several indicators of economic performance. We thus propose to tackle the design of macroeconomic policy using Multicriteria Decision Making (MCDM) techniques. More specifically, we employ Multiobjective Programming (MP) to seek so-called efficient policies. The MP approach is combined with a computable general equilibrium (CGE) model. We chose use of a CGE model since they have the dual advantage of being consistent with standard economic theory while allowing one to measure the effect(s) of a specific policy with real data. Applying the proposed methodology to Spain (via the 1995 Social Accounting Matrix) we first quantified the trade-offs between two specific policy objectives: growth and inflation, when designing fiscal policy. We then constructed a frontier of efficient policies involving real growth and inflation. In doing so, we found that policy in 1995 Spain displayed some degree of inefficiency with respect to these two policy objectives. We then offer two sets of policy recommendations that, ostensibly, could have helped Spain at the time. The first deals with efficiency independent of the importance given to both growth and inflation by policy makers (we label this set: general policy recommendations). A second set depends on which policy objective is seen as more important by policy makers: increasing growth or controlling inflation (we label this one: objective-specific recommendations).

A Hardware Implementation of a Run-Time Scheduler for Reconfigurable Systems

New generation embedded systems demand high performance, efficiency and flexibility. Reconfigurable hardware can provide all these features. However the costly reconfiguration process and the lack of management support have prevented a broader use of these resources. To solve these issues we have developed a scheduler that deals with task-graphs at run-time, steering its execution in the reconfigurable resources while carrying out both prefetch and replacement techniques that cooperate to hide most of the reconfiguration delays. In our scheduling environment task-graphs are analyzed at design-time to extract useful information. This information is used at run-time to obtain near-optimal schedules, escaping from local-optimum decisions, while only carrying out simple computations. Moreover, we have developed a hardware implementation of the scheduler that applies all the optimization techniques while introducing a delay of only a few clock cycles. In the experiments our scheduler clearly outperforms conventional run-time schedulers based on As-Soon-As-Possible techniques. In addition, our replacement policy, specially designed for reconfigurable systems, achieves almost optimal results both regarding reuse and performance.

Designing Efficient Subsidy Policies in a Regional Economy: A Multicriteria Decision-Making (MCDM)-Computable General Equilibrium (CGE) Approach

Since policy-makers usually pursue several conflicting objectives, policy-making can be understood as a multicriteria decision problem. Following the methodological proposal by André and Cardenete (2005) André, F. J. and Cardenete, M. A. 2005. Multicriteria Policy Making. Defining Efficient Policies in a General Equilibrium Model, Seville: Centro de Estudios Andaluces. Working Paper No. E2005/04, multi-objective programming is used in connection with a computable general equilibrium model to represent optimal policy-making and to obtain so-called efficient policies in an application to a regional economy (Andalusia, Spain). This approach is applied to the design of subsidy policies under two different scenarios. In the first scenario, it is assumed that the government is concerned just about two objectives: ensuring the profitability of a key strategic sector and increasing overall output. Finally, the scope of the exercise is enlarged by solving a problem with seven policy objectives, including both general and sectorial objectives. It is concluded that the observed policy could have been Pareto-improved in several directions.

Intertemporal and spatial location of disposal facilities

The optimal capacities and locations of a sequence of landfills are studied, and the interactions between these characteristics are considered. Deciding the capacity of a landfill has some spatial implications since it affects the feasible region for the remaining landfills, and some temporal implications because the capacity determines the lifetime of the landfill and hence the moment of time when the next landfills should be constructed. Some general mathematical properties of the solution are provided and interpreted from an economic point of view. The resulting problem turns out to be non-convex and, therefore, it cannot be solved by conventional optimization techniques. Some global optimization methods are used to solve the problem in a particular case in order to illustrate how the solution depends on the parameter values.