http://hdl.handle.net/10400.3/1124 Sat, 13 Oct 2018 12:36:27 GMT 2018-10-13T12:36:27Z http://hdl.handle.net/10400.3/4840 Título: Operational asset replacement strategy : a real options approach Autor: Zambujal, João; Duque, João Resumo: This article analyses the problem of replacement by investigating the optimal moment of investment replacement in a given tax environment with a given depreciation policy. An operation and maintenance cost minimization model, based on the definition of equivalent annual cost, is applied to a real options paradigm. The developed methodology allows for an innovative evaluation of the flexibility of replacement process analysis. A new two- factor evaluation function is introduced to quantify decisions of asset replacement under a unique cycle environment. This study improves upon previous findings in the literature as it accounts for autonomous salvage value processes. Based on partial differential equations, this model achieves a general analytical solution and particular numerical solution. The results differ significantly from those observed in one-factor models by showing evidence of over-evaluation in optimal levels of replacement, and by confirming suspicions that different types of uncertainties produce non-monotonous effects on the optimal replacement level. The scientific contribution of this study lies in new and stronger approaches to equivalent annual cost literature, supplying an algorithm for operation and maintenance cost minimization that is conditioned by autonomous salvage value. This study also contributes to the real options literature by developing of a two-factor model with Brownian processes applied to asset replacement. Thu, 01 Jan 2009 00:00:00 GMT http://hdl.handle.net/10400.3/4840 2009-01-01T00:00:00Z http://hdl.handle.net/10400.3/4839 Título: Azormod dynamic general equilibrium model for Azores Autor: Fortuna, Mário; Bayar, Ali; Mohora, Cristina; Opese, Masudi; Sisik, Suat Resumo: The main objective of this paper is to present a multi-sectoral, multi-regional dynamic modelling platform of the Azores economy integrated within the European and global context. The platform will have the highest capabilities of analysis and forecasting in Azores for problems related to structural sectoral and regional issues, agriculture, labour markets, public finance, trade, EU funds, regional development, environment, and energy. The modelling platform is intended to act as an analytical and quantitative support for policy-making. Sun, 01 Mar 2009 00:00:00 GMT http://hdl.handle.net/10400.3/4839 2009-03-01T00:00:00Z http://hdl.handle.net/10400.3/4838 Título: Analysing the impacts of closure of a military base using a dynamic CGE model Autor: Bayar, Ali; Mohora, Cristina; Fortuna, Mário; Rege, Sameer; Sisik, Suat Resumo: Military bases are commonplace in many countries and may have a significant impact in the communities where they are integrated. Impacts of military bases have been analysed through different perspectives. Our aim is to analyse their economic impact. The importance of military bases has become a topic of discussion particularly when base closures or base activity reductions are under consideration. In a previous paper the authors looked at the issue using a static CGE model applied to the analysis of the economic impact of a US base located in the island of Terceira in the Azores. In the current paper a dynamic model is used to study the same issue, using more recent data and disaggregating the impact among different household categories. A base closure scenario is created and the impacts traced through various economic indicators. It is concluded that GDP falls, relative to the base scenario for a number of years recovering after some time, assuming that worsened trade balances are compensated by other transfers. This fall is prompted by a fall in employment, personal income and consumption. The model also predicts that the impact hurts different household income groups with diverse intensity. Lower income households are hurt more in relative terms but generate a smaller absolute impact. With time, the negative impact tapers off for most income groups except for the lowest which keeps on loosing more until the end of the simulation period. Sun, 01 Mar 2009 00:00:00 GMT http://hdl.handle.net/10400.3/4838 2009-03-01T00:00:00Z http://hdl.handle.net/10400.3/4837 Título: Measuring the impacts of personal and corporate income tax cuts on a small island open economy Autor: Bayar, Ali; Fortuna, Mário; Mohora, Cristina; Opese, Masudi; Sisik, Suat Resumo: In 1999, subsequent to a legislative review, the authorities of the Azores, an autonomous region of Portugal, decided to reduce income tax rates applicable locally by 30% in the case of corporate income and by 20% in the case of personal income. There was no debt or transfer compensation for this tax reduction, meaning that the regional budget was reduced by the equivalent amount of the tax reduction. The current paper analyses the impact of such a shock on various macro and micro variables pertaining to the Azorean economy, including social welfare, using a dynamic CGE model comprising forty five sectors, six household groups, three government levels and four trading partners. It is concluded that the short run impact on GDP is, as expected, negative, given that the marginal propensity to save of the private sector is positive and there was no compensating policy. There is an initial increase in unemployment due to the cut in government expenditures. In the long run, however, the impact becomes positive due to increased investment and private consumption. The stronger effect comes from the reduction in personal income taxes, a much greater proportion of all taxes collected in the region. Real wages net of personal income taxes rise as does the labour supply. The impact of the policy is shown to be positive for all household income groups, as evaluated through equivalent variation. The lowest income group ends up benefiting the most, in relative terms. Sun, 01 Mar 2009 00:00:00 GMT http://hdl.handle.net/10400.3/4837 2009-03-01T00:00:00Z