Money for nothing?: The net costs of medical training

A Masters Thesis, presented as part of the requirements for the award of a Research Masters Degree in Economics from NOVA – School of Business and Economics

The Regulatory Choice between a Label and a Minimum-Quality Standard, 2005

This paper revisits the issue of the regulatory choice between a mandatory label and a minimum-quality standard. When the cost of regulation is relatively low, we show that the socially optimal choice depends on the producers’ cost structure for complying with regulation and improving quality. Under a marginal cost for improving quality, the mandatory labeling is sufficient for reaching the socially optimal level of quality. Under a fixed cost for improving quality, we show that each instrument or the combination of both instruments may emerge at the equilibrium.

A Simple Access Pricing Rule to Achieve the Ramsey Outcome in Two-Way Access

In this paper, I consider a general and informationally effcient approach to determine the optimal access rule and show that there exists a simple rule that achieves the Ramsey outcome as the unique equilibrium when networks compete in linear prices without network-based price discrimination. My approach is informationally effcient in the sense that the regulator is required to know only the marginal cost structure, i.e. the marginal cost of making and terminating a call. The approach is general in that access prices can depend not only on the marginal costs but also on the retail prices, which can be observed by consumers and therefore by the regulator as well. In particular, I consider the set of linear access pricing rules which includes any fixed access price, the Efficient Component Pricing Rule (ECPR) and the Modified ECPR as special cases. I show that in this set, there is a unique access rule that achieves the Ramsey outcome as the unique equilibrium as long as there exists at least a mild degree of substitutability among networks' services.

O impacto das energias renováveis na economia dos países emergentes: o caso de Cabo Verde

A elevada dependência dos combustíveis fósseis é uma das principais dificuldades sentidas no actual sistema energético de Cabo Verde. O preço dos combustíveis constitui um peso significativo, representando cerca de 70%, da estrutura de custos do preço de energia eléctrica. Com este trabalho, pretende-se analisar o impacto das energias renováveis no sistema energético e na economia de Cabo Verde, destacando a sua contribuição para a formação do PIB, no Preço, na Balança de Pagamentos, no Emprego, e no Serviço da Dívida, e estabelecer uma comparação com as ilhas da Macaronésia, em particular a Região Autónoma dos Açores. Contribuindo assim, para a discussão que poderá demonstrar que o potencial de renováveis por explorar, trará benefícios económicos para o país, pois a expectativa é superar os 50% de taxa de penetração de Energias Renováveis na produção de electricidade em Cabo Verde até 2020. Prevê-se que o consumo de electricidade que em 2010 era de 335 MWh, duplique até o ano de 2020, atingindo os 670 GWh. Segundo estudos efectuados, o país possui um potencial estimado de 2.600 MW de Energias Renováveis, tendo sido analisados mais de 650 MW em projectos concretos com custos de produção possivelmente inferiores aos dos combustíveis fósseis. Cabo Verde goza de boas condições para o aproveitamento de Energias Renováveis, mas a contribuição desse potencial, sobretudo eólica e solar, continuam muito limitado, pelo que o país deverá apostar no incremento da utilização dessas formas de energia para reduzir a dependência externa em matéria de energia. The high dependence on fossil fuels is one of the main difficulties in the current energy system in Cape Verde. The price of fuel is a significant, accounting for about 70%, and the cost structure of the price of electricity. With this work, seeks to analyze the impact of renewable energy in the energy system and the economy of Cape Verde, highlighting their contribution to the formation of BIP, in the Balance of Payments, in Employment, and the Service of Debt, and to draw a comparison with the islands of Macaronésia, in particular the Autonomous Region of Azores. Thus contributing to the discussion that may show that the potential of renewable energy by exploring will bring economic benefits to the country, because the expectation is to exceed the 50% penetration rate of Renewable Energy in the production of electricity in Cape Verde until 2020. It is estimated that the consumption of electricity in 2010 was 335 MWh, will double by the year 2020, reaching the 670 GWh. According to studies carried out, the country has an estimated potential of 2,600 MW of Renewable Energy, having been analyzed more than 650 MW in concrete projects with production costs possibly less than the fossil fuels. Cape Verde enjoys good conditions for the use of renewable energy, but the contribution of this potential, especially wind and solar, are still very limited, so that the country should invest in increasing the use of these forms of energy to reduce the dependence on foreign sources of energy.

Análise de Reantabilidade através da Margem de Contribuição

Este trabalho versa sobre a análise de rentabilidade através da margem de contribuição e tem por objectivo evidenciar como a margem de contribuição pode ser utilizada pelos gestores, na rentabilidade dos clientes, dos produtos, dos canais de distribuição e dos segmentos de mercado em que as empresas operam. O estudo está assente num referencial teórico que faz incursões nos principais conceitos conexos ao tema principal nomeadamente: análise custo – volume – resultado, métodos apuramento dos resultados na óptica da absorção e da contribuição, e a curva ABC. Na aplicação prática, procurámos utilizar alguns instrumentos de gestão nomeadamente o ponto de equilíbrio, apuramento dos resultados por segmentos de clientes, negócios e territórios de comercialização e a aplicação da curva de experiência ABC. O caso de estudo incide sobre a empresa nacional de moagem (Moave S.A) e restringe-se ao plano de produção e embalagem através do pequeno ensaque. O processo de colecta de dados foi obtido directamente das informações fornecidas pela Direcção da empresa, nomeadamente os produtos a serem embalados, a estrutura de custos, o plano de produção, a capacidade máxima da máquina e o calendário de trabalho diário e mensal. Os resultados evidenciaram que a utilização da margem de contribuição como ferramenta de gestão, constitui um importante instrumento de análise e avaliação da rentabilidade dos produtos, dos clientes, dos canais de distribuição bem como dos territórios de comercialização. This work focuses on the analysis of profitability through contribution margin and aims to highlight the contribution margin can be used by managers, in the profitability of customers, products, distribution channels and market segments in which companies operate. The study is based on the referential theoretical that makes inroads in key concepts related to the main topic, namely: cost analysis – volume – result, methods of clearance results in optical absorption and contribution, and ABC. In practice, we try to use some management tools in the balance, such as breakeven point, clearance of results by segments of customers, business and marketing territories and the application of experience curve ABC. The case study focuses on the national milling company (Moave s.a), and restricts itself to plan production and packaging through small bagging. The process of collecting data was obtained directly from the information provided by the management of the undertaking, in particular the products to be packed, the cost structure, the production plan, the maximum capacity of the machine and the daily work schedule and monthly. The results showed that the use of the contribution margin as a management tool constitutes an important instrument of analysis and assessment of the profitability of products, customers, distribution channels and marketing territories.

A simple access pricing rule to achieve the Ramsey outcome for interconnected networks

This paper considers a general and informationally efficient approach to determine the optimal access pricing rule for interconnected networks. It shows that there exists a simple rule that achieves the Ramsey outcome as the unique equilibrium when networks compete in linear prices without network-based price discrimination. The approach is informationally efficient in the sense that the regulator is required to know only the marginal cost structure, i.e. the marginal cost of making and terminating a call. The approach is general in that access prices can depend not only on the marginal costs but also on the retail prices, which can be observed by consumers and therefore by the regulator as well. In particular, I consider the set of linear access pricing rules which includes any fixed access price, the Efficient Component Pricing Rule (ECPR) and the Modified ECPR as special cases. I show that in this set, there is a unique rule that implements the Ramsey outcome as the unique equilibrium independently of the underlying demand conditions.

A Walrasian theory of commodity money: Paradoxical results

The objective of this note is to analyze some implications of the model of commodity money described in Banerjee and Maskin (1996) which may seem paradoxical. In order to do this, we incorporate a general production cost structure into the model. We focus on two different results. First, the existence of technologies that make counterfeiting a commodity more difficult may exclude it from being used as medium of exchange. Second, allocative distortions due to problems of asymmetric information may become larger in the presence of such technologies.

SwissParam: a fast force field generation tool for small organic molecules.

The drug discovery process has been deeply transformed recently by the use of computational ligand-based or structure-based methods, helping the lead compounds identification and optimization, and finally the delivery of new drug candidates more quickly and at lower cost. Structure-based computational methods for drug discovery mainly involve ligand-protein docking and rapid binding free energy estimation, both of which require force field parameterization for many drug candidates. Here, we present a fast force field generation tool, called SwissParam, able to generate, for arbitrary small organic molecule, topologies, and parameters based on the Merck molecular force field, but in a functional form that is compatible with the CHARMM force field. Output files can be used with CHARMM or GROMACS. The topologies and parameters generated by SwissParam are used by the docking software EADock2 and EADock DSS to describe the small molecules to be docked, whereas the protein is described by the CHARMM force field, and allow them to reach success rates ranging from 56 to 78%. We have also developed a rapid binding free energy estimation approach, using SwissParam for ligands and CHARMM22/27 for proteins, which requires only a short minimization to reproduce the experimental binding free energy of 214 ligand-protein complexes involving 62 different proteins, with a standard error of 2.0 kcal mol(-1), and a correlation coefficient of 0.74. Together, these results demonstrate the relevance of using SwissParam topologies and parameters to describe small organic molecules in computer-aided drug design applications, together with a CHARMM22/27 description of the target protein. SwissParam is available free of charge for academic users at www.swissparam.ch.

Bargaining efficiency and screening: An experimental investigation

This paper investigates whether information about fairness types canbe useful in lowering dispute costs and enhancing bargaining efficiency.An experiment was conducted in which subjects were first screened usinga dictator game, with the allocations chosen used to separate participantsinto two types. Mutually anonymous pairs of subjects then bargained, witha dispute cost structure imposed. Sorting with identification reducesdispute costs; there are also significant differences in bargainingefficiency across pairing types. Information about types is crucial forthese differences and also strongly affects the relative bargainingsuccess of the two types and the hypothetical optimal bargaining strategy.

Una exploración completa de los costes de servicio de residuos sólidos

La literatura económica sobre los servicios municipales de residuos sólidos en España es muy escasa, aun cuando estos servicios han sido objeto d'intensas reformas organizativas y regulatorias. En esta investigación se estudia su estructura de costes con el objetivo de explicar la variabilidad entre los municipios de los costes soportados por el servicio. Se determina una función de costes y se estima de forma paramétrica. Los resultados del análisis empírico permiten estudiar la existencia de economías de escala con el output, y el efecto de algunos factores directamente asociados con el servicio como el grado de residuos selectivos, la frecuencia de recogida o la existencia de instalaciones de depósito en el municipio. Además, se analiza el impacto sobre los costes de otros factores como la densidad de población, los niveles salariales, la estacionalidad y la forma de producción, pública o privada.

Una exploración completa de los costes de servicio de residuos sólidos

La literatura económica sobre los servicios municipales de residuos sólidos en España es muy escasa, aun cuando estos servicios han sido objeto d'intensas reformas organizativas y regulatorias. En esta investigación se estudia su estructura de costes con el objetivo de explicar la variabilidad entre los municipios de los costes soportados por el servicio. Se determina una función de costes y se estima de forma paramétrica. Los resultados del análisis empírico permiten estudiar la existencia de economías de escala con el output, y el efecto de algunos factores directamente asociados con el servicio como el grado de residuos selectivos, la frecuencia de recogida o la existencia de instalaciones de depósito en el municipio. Además, se analiza el impacto sobre los costes de otros factores como la densidad de población, los niveles salariales, la estacionalidad y la forma de producción, pública o privada.

Modeling and mitigation of supply-demand mismatches

In this thesis, I develop analytical models to price the value of supply chain investments under demand uncer¬tainty. This thesis includes three self-contained papers. In the first paper, we investigate the value of lead-time reduction under the risk of sudden and abnormal changes in demand forecasts. We first consider the risk of a complete and permanent loss of demand. We then provide a more general jump-diffusion model, where we add a compound Poisson process to a constant-volatility demand process to explore the impact of sudden changes in demand forecasts on the value of lead-time reduction. We use an Edgeworth series expansion to divide the lead-time cost into that arising from constant instantaneous volatility, and that arising from the risk of jumps. We show that the value of lead-time reduction increases substantially in the intensity and/or the magnitude of jumps. In the second paper, we analyze the value of quantity flexibility in the presence of supply-chain dis- intermediation problems. We use the multiplicative martingale model and the "contracts as reference points" theory to capture both positive and negative effects of quantity flexibility for the downstream level in a supply chain. We show that lead-time reduction reduces both supply-chain disintermediation problems and supply- demand mismatches. We furthermore analyze the impact of the supplier's cost structure on the profitability of quantity-flexibility contracts. When the supplier's initial investment cost is relatively low, supply-chain disin¬termediation risk becomes less important, and hence the contract becomes more profitable for the retailer. We also find that the supply-chain efficiency increases substantially with the supplier's ability to disintermediate the chain when the initial investment cost is relatively high. In the third paper, we investigate the value of dual sourcing for the products with heavy-tailed demand distributions. We apply extreme-value theory and analyze the effects of tail heaviness of demand distribution on the optimal dual-sourcing strategy. We find that the effects of tail heaviness depend on the characteristics of demand and profit parameters. When both the profit margin of the product and the cost differential between the suppliers are relatively high, it is optimal to buffer the mismatch risk by increasing both the inventory level and the responsive capacity as demand uncertainty increases. In that case, however, both the optimal inventory level and the optimal responsive capacity decrease as the tail of demand becomes heavier. When the profit margin of the product is relatively high, and the cost differential between the suppliers is relatively low, it is optimal to buffer the mismatch risk by increasing the responsive capacity and reducing the inventory level as the demand uncertainty increases. In that case, how¬ever, it is optimal to buffer with more inventory and less capacity as the tail of demand becomes heavier. We also show that the optimal responsive capacity is higher for the products with heavier tails when the fill rate is extremely high.

Standardizing Customized Features of a Configurable Product

Työn päätavoitteena on arvioida hissien automaattiovien usein toistuvien asiakaskohtaisesti räätälöityjen tuoteominaisuuksien vakioimisen kannattavuutta KONEen Hyvinkään tehtaalla. Työssä arvioidaan myös massaräätälöinnin periaatteiden soveltuvuutta erikoisovien toimitusprosessiin sekä toimintoperusteisen kustannustiedon tarpeellisuutta tuoteominaisuuksia koskevien päätösten teossa. Asiakaskohtaisesti räätälöity ovituotanto jaettiin kategorioihin, joiden volyymeja ja tuotemuutosten tekoon käytettyjä suunnittelutuntimääriä analysoimalla selvitettiin, muodostaako jokin räätälöitävä tuoteominaisuus riittävän suuren kappalemääräisen kysynnän tai suunnittelutuntien kulutuskohteen, jotta ominaisuuden vakiointi olisi kannattavaa. Ovien kustannusrakenne-esimerkkien avulla selvitettiin myös suunnittelun osuus kokonaiskustannuksista. Analyysien perusteella todettiin asiakaskohtaisten muutosten olevan hajanaisia ja vain muutaman ominaisuuden osalta muodostuvan tarpeeksi suuri ja yhtenäinen kokonaisuus, joka olisi taloudellisesti kannattavaavakioida. Monimutkaisen tuoterakenteen vuoksi massaräätälöinnin opit eivät ole suoraan kopioitavissa hissien erikoisovien toimitusprosessiin, mutta sisältävät hyödyllisiä toimintamalleja prosessin kehittämiseen.

EPCM-toimitustapamallin kehittäminen Kvaerner Power Oy:n voimalaitostoimituksiin

Tämän diplomityön päämääränäoli laatia suunnitelma voimalaitoksen toimittamiseksi EPCM-toimitustavalla. Työn keskeisiksi tavoitteiksi asetettiin EPCM-toimitustapaan perustuvan toimitustapakonseptin muodostaminen, toimituksiin liittyvien terminologian selkeyttäminen ja harmonisointi sekä voimalaitoksen suhteellisen kustannusrakenteen laatiminen. Työssä tutkittiin voimalaitostoimituksissa tavanomaisesti käytettyjä sopimustyyppejä, kiinteähintaista sopimusta ja kustannusvoittolisäsopimusta sekä harvinaisemmin käytettyjä kattohinta- ja tavoitekustannussopimusta. Vallitsevat toimitustavat, EPC- ja EPCM-toimitustavat sekä monitoimittajatapa, esiteltiin ja niiden vahvuudet sekä heikkoudet selvitettiin. Projektin ominaisuuksilla, markkinoilla ja tilaajan kyvyllä, asiantuntemuksella sekä resursseilla todettiin olevan vaikutusta toimitustavan valintaan. Lisäksi tehtiin katsaus voimalaitostoimitusten kehitystrendeihin ja projektin riskienhallintaan. Voimalaitoksen laitosjärjestelmäjako kehitettiin ja sitä soveltamalla määritettiin voimalaitoksen suhteellinen kustannusrakenne. Kattilaitoksen osuus voimalaitoksen rakentamiskustannuksista todettiin merkittävimmäksi. Laitosjärjestelmien laitekustannusten havaittiin olevan korkeimmat. EPCM-toimitustapamalli kehitettiin teoriaosan pohjalta ja sen rakenne, organisaatio, sopimustyypit ja -suhteetsekä toimituksen riskien jako kuvattiin. Voimalaitoksen rakentamiskustannuksia vertailtiin eri toimitustavoilla ja EPCM-toimitustapamalli todettiin EPC-toimitustapaa edullisemmaksi.

Paineellisten reaktoreiden projektitoimituksen optimointi

Diplomityössä tavoitteena on saada selvitys, jonka avulla yritys löytää toimitusprojekteistaan parannusta ja huomiota vaativat osa-alueet projektimuotoisten toimitusten kustannusrakennetta ja optimointia tarkastelemalla. Näin yritys voi tulevaisuudessa kehittää projektitoimituksen osa-alueita niin että se voi vastata asiakkaiden asettamiin vaatimuksiin sekä haasteisiin entistä nopeammin ja tarkemmin. Tutkimuksen lähtökohtana ovat projektiajattelu sekä siihen liittyvän toimitusketjun prosessit, joiden avulla lähestytään tutkimuksen ongelmaa ja selvitetään koko toimitusprojektin kehitystä vaativat alueet. Tutkimuksessa vaaditut tiedot saavutettiin vapaamuotoisten haastattelujen, yrityksen dokumentteja tutkimalla sekä yhteistyökumppanien avulla. Projektitoimituksen kokonaisvaltainen kehitys vaatii yhteistyötä ja huomiota toimitusketjun jokaisessa osa-alueessa aina raaka-ainelähteiltä loppukäyttäjälle asti. Näin voidaan saavuttaa tietojen avoimuus ja täsmällisyys, jotta päästään parhaaseen lopputulokseen projektitoimituksen osalta. Erityisesti kustannusrakenteen jakauma tuleehuomioida tulevaisuudessa tarkasti tehtäessä projektitoimitukseen liittyviä ratkaisuja. Esivalmistusasteen tarkastelu asetettiin työn alussa yhdeksi tärkeimmäksi tutkimuskohteeksi. Tarkastelussa havaittiin, että valmistusasteen valinnalla voidaan vaikuttaa lähes puoleen reaktorin kustannusrakenteen mukaisista kustannuksista kuten työ-, kuljetus- ja asennuskustannukseen. Myös materiaalikustannukset ovat suuressa roolissa reaktorinkustannusrakenteessa, joten tähän tulee kiinnittää myös huomiota. Muita tutkittavia tekijöitä, jotka pääasiassa vaikuttivat materiaali- ja asennuskustannuksiin työssä olivat paineastiastandardin ja paineluokan sekä valmistuspaikan valinta. Lisäksi huomioitiin toteutuneiden toimitusten eroavaisuuksia teoreettisiin ratkaisuihin ja etsittiin näistä mahdollisia kehitys- ja kustannussäästökohteita.