This paper examines, for a sample of Flemish school leavers, the relation between objective over-education and job satisfaction by applying a shadow price approach. We differentiate between direct effects of over-education and indirect effects via other job characteristics that are associated with over-education. Additional fixed-effects estimates are executed to account for individual heteroge...

The productivity of real-world systems is often limited by so-called bottlenecks. Hence, usually companies are not only interested in finding the best ways to schedule their current resources so that their benefits are maximized (optimization), but, in order to increase the productivity, they also conduct some analysis to find bottlenecks in their system and eliminate them in the most efficient...

While absence of arbitrage in frictionless financial markets requires price processes to be semimartingales, non-semimartingales can be used to model prices in an arbitrage-free way, if proportional transaction costs are taken into account. In this paper, we show, for a class of price processes which are not necessarily semimartingales, the existence of an optimal trading strategy for utility m...

The ability to discover equilibrium prices efficiently makes auctions an effective way to trade goods. One of the recent trends in the development of auctions is combinatorial auctions. Combinatorial auctions allow the simultaneous sale of more than one item. In the existing literature, the factor of transportation cost has not been considered in combinatorial auctions. In this paper, we formul...

When energy prices increased suddenly and unexpectedly in 1973-74 and 1979-80, a portion of the long-lived capital stock in U.S. manufacturing was rendered economically less valuable. In this paper we develop an analytical framework, consistent with the theory of cost and production, that provides an appealing structural interpretation of this capital revaluation phenomenon. In the spirit of a ...

This paper sets out my comments on DEFRA's new guidance on how to price greenhouse gas emissions – 'carbon' for short – into economic appraisal in the UK. The DEFRA paper begins by drawing a distinction between the social cost of carbon and the shadow price of carbon for use in government economic appraisal in the UK. While the terminology is confusing, this is an improvement on previous guidan...

New panel data from India are used to examine the relationship between farm size and productivity based on a model incorporating agency costs favoring family workers, scaledependent returns to mechanization arising from the fact that a larger contiguous land area is better-suited for high-capacity machinery, and falling credit costs with owned land. The model provides guidance for imputing the ...

We study the capacity allocation problem in service overlay networks (SON)s with state-dependent connection routing based on revenue maximization. We formulate the dimensioning problem as one in profit maximization and propose a novel model with several new features. In particular the proposed methodology employs an efficient approximation for state dependent routing that reduces the cardinalit...