Iltae Kim

• PhD
• Professor (Full) at Chonnam National University

This chapter explores the development of economic theory incorporating uncertainty and the measures of risk and risk aversion and examines two main topics in the analysis of choice under uncertainty. One is to find selection rules governing the choice behavior under uncertainty, and the other is to analyze the comparative static effects on the choi...

In the development and dynamics of modern society, information and risk are notable keywords not only in the living level but also in economic activities. The feature of this book is to examines various hot topics of applied economy from the point of the view of the economics of information and risk. Particularly, it examines how information and ri...

This chapter clarifies some relationships among the subclasses of FSD shifts and R-S increases in risk and shows that most subsets of CDF changes are defined by imposing restrictions on the ratio between an initial and a final PDFs or CDFs. This chapter also summarizes the comparative statics results regarding the subclasses of FSD shifts and R-S i...

This chapter reviews cumulative distribution function (CDF) difference approach, the ratio approach, and the deterministic transformation approach specifying common restrictions to impose on the changes in the random variable and examines definitions, graphical examples and the comparative statics results of subsets of First-degree Stochastic Domin...

This chapter overviews several subsets of Rothschild-Stiglitz (R-S) increases in risk and examines definitions, graphical examples and the comparative statics results of the subsets of R-S increases in risk. This chapter also gives some properties among the subclasses of R-S increases in risk.

This book examines interesting new topics in applied economics from the perspectives of the economics of information and risk, two fields of economics that address the consequences of asymmetric information, environmental risk and uncertainty for the nature and efficiency of interactions between individuals and organizations. In the economics of in...

Job creation and economic growth are considered as main issues in economic policies around the world. Specifically Korea has experienced low and jobless economic growth in the recent past. Employment problem is one of the sensitive issues framing national and regional economic policies in Korea. In this context, it is important to capture the relat...

This book analyzes the various problems of growth, trade and public policy from the perspective of applied economics, based on research in areas such as public policies, trade and regulation, and development economics. Part 1 investigates the broad problems of growth and regional economy, focusing on economic developments in Japan and Korea. Part 2...

This paper examines the effect of regional total factor productivity (TFP) on local employment growth using regional panel data from 2000 to 2014 in Korea. The employment equation derived from the constant elasticity of substitution production function is a function of wage rate, capital stock, and regional TFP. The demand for labor accounts for dy...

This paper derives the evaluation indicators relating to the mechanism and success factors of culture industrial cluster from the successful cases of culture industry in foreign countries and provides policy implications for the successful construction of culture industrial cluster by comparing with the survey of Gwang-Ju city's culture content com...

By using the techniques of the Malliavin calculus, we investigate the asymptotic behavior of the weighted qq-variations of continuous Gaussian process of the form Bt=∫0tK(t,s)dW(s), where WW is the standard Brownian motion and KK is a square integrable kernel. In particular, in the case of fractional Brownian motion with the Hurst parameter HH, the...

This paper presents a Cournot duopoly model based on a con-dition when firms are facing cost uncertainty under risk neutrality and risk aversion. Each firm conjectures about the rival's output level, and its cost function is assumed to be unknown to its rival. The Cournot model shows that the expected utility maximizing firms, under risk aversion,...

This paper proposes a 'left-side monotone likelihood ratio' (L-MLR) order which is a more restrictive concept than the 'monotone probability ratio' (MPR) order and generalizes the comparative static result for the MPR change to the non-linear case in the standard one-argument decision model. The L-MLR defines an order on random distribution that li...

This paper examines the effects of uncertainty on an individual's own contribution to the provision of the collective good using an impure public good model. Two types of uncertainty analyzing free-riding behavior are evaluated: (i) uncertainty surrounding the contributions of others to the public characteristic and (ii) uncertainty surrounding the...

Various studies have examined whether increased uncertainty about the non-Nash response of others to an individual's voluntary contribution to a public good affects that individual's contribution so as to mitigate the free-rider problem. We extend this single-agent approach to the analysis of a symmetric equilibrium. We provide conditions on group...

This paper re-examines the comparative statics effects of increases in both the lump-sum and proportional components of an unemployment-insurance benefit on saving and labor supply. We analyze a two-period model of labor supply and saving that incorporates a known probability of being unemployed in the future. We show that, given risk aversion and...

This paper proposes the concept of a ``simple increase in risk across r in the K-L-L-S sense'' (sIRK (r)) for the subset of K-L-L-S increases in risk defined by Kroll, Leshno, Levy, and Spector (1995; called K-L-L-S) that extends the Rothschild-Stiglitz definition of risk to a larger set of cumulative distribution functions that could not be classi...

This paper introduces a new concept of left-side strong increases in risk (L-SIR) that extends the definition of strong increases in risk (SIR). We also provide somewhat stronger restrictive set of risk-averse decision-makers with a non-negative third derivative utility (prudence) to obtain an appealing comparative statics result for L-SIR. Copyrig...

This paper proposes a new concept, a left-side relatively weak increase in risk (L-RWIR) order, that extends the definition of a relatively weak increase in risk (RWIR) order. We show that, for the class of linear payoffs, one can obtain an appealing comparative statics result for L-RWIR shifts imposing additional restrictions on risk preferences o...

This paper examines the effects of demand uncertainty on price and product quality for the price- and quality-setting firm in the context of a general profit relation. It is shown that a firm reduces price but also improves quality in response to changes in demand risk when the expected utility function is submodular. Comparative statics prediction...

This article examines the results of an optimal output tax and an optimal ad valorem tax for a polluting oligopolist under demand uncertainty and then compares them with conventional results under an assumption of certainty. We show that, for general representations of uncertainty, the optimal tax under uncertainty is less than that under certainty...

The main purpose of this paper is to investigate the impact of futures markets on the optimal production decisions and hedging behaviour of a competitive, risk-averse firm when both the exchange rate and costs are risky. We demonstrate that the introduction of risk into the cost function causes the separation property and the full hedging theorem n...

The decision model with two choice variables and two random variables, an extension of Feder, or Just and Pope, is examined here. Under the mean-standard deviation framework we derive the comparative statics results concerning the effects of a change in the mean, variance and covariance of the random parameters. Some restrictions on the random vari...

The paper investigates comparative statics effects of changes in uncertainty for a general family of problems that encompasses both the portfolio and saving decisions. Conditions are derived on preferences that are necessary and sufficient for unambiguous comparative statics predictions. The paper consolidates and completes the statement of restric...

This paper proposes an optimal nonlinear effluent-charge system forenvironmental pollution control. This system achieves the first-bestoptimum through a self-selecting mechanism under asymmetric information.The proposed system can also control the level of revenues so as to reducethe excess burden of environmental taxation, and discriminate among t...

We examine cross-effects for central dominance changes in the random payoff to one activity on the willingness of a risk averter to undertake or expand a second. This willingness is enhanced for quasilinear payoffs when activities are cost substitutes.

This paper analyzes the effects of taxation on the output levels of a multiproduct competitive firm under price uncertainty introducing several types of tax system; a proportional profit tax, a specific tax, and an ad valorem sales tax. We derive conditions on attitudes toward risk bearing and on the shape of the cost function that are sufficient t...

Uncertainty about prospective changes in tax rates may increase factor supplies and, hence, the tax base, permitting a reduction in tax rates that could result in a net increase in welfare. Under empirically relevant assumptions about attitudes towards risk, the authors find that, when an individual exclusively saves or works, the tax base rises in...

This paper presents a modified model for a deteriorating inventory system determining price and production levels.Specifically, the exponential distribution is used to represent the distribution of the time to deterioration. The optimal production quantity is derived under conditions of continuous review, deterministic demand and no shortage. The m...

This paper introduces the new type of a 'truncated increase in risk' (TIR) which is an increase in risk in the Kroll, Leshno, Levy and Spector (1995; called K-L-L-S) sense, based on a concept of an increase in risk with truncated distributions that reveals real economic phenomena such as guaranteed minimum or imposed maximum prices. We also show th...

This paper estimates a stochastic production frontier using time-series data for the aggregate Korean economy in 1977-2005 to examine whether public infrastructure stock reduces aggregate technical inefficiency in the gross domestic product. A stochastic production frontier is estimated in first-differenced form, and the one-sided residuals are reg...

Thesis (Ph. D.)--University of Georgia, 1989. Directed by Ronald S. Warren, Jr. Includes bibliographical references (leaves 97-107).