The Downs-Thomson Effect in a Markov Process

1997 ◽  
Vol 11 (3) ◽  
pp. 327-340 ◽  
Author(s):  
Bruce Calvert
Keyword(s):  
Markov Process ◽  
Thomson Effect ◽  
Journey Time ◽  
Routing Policy ◽  
Long Run ◽  
Service Rates ◽  
Pass Through ◽  
Queues In Parallel

Suppose customers pass through a network of two queues in parallel. A statedependent routing policy gives individuals their quickest journey. The Downs-Thomson effect is any increase in the long-run expected journey time caused by an increase in the service rates. This effect may occur.

Minimizing Mean Response Time In Batch-Arrival Non-Observable Systems With Single-Server FIFO Queues Operating In Parallel

2021 ◽  
Author(s):  
Mikhail Konovalov ◽  
Rostislav Razumchik
Keyword(s):  
Response Time ◽  
Arrival Time ◽  
Time Instant ◽  
Single Server ◽  
State Information ◽  
Mean Response Time ◽  
Routing Policy ◽  
Long Run ◽  
Service Rates ◽  
Routing Policies

Consideration is given to a dispatching system, where jobs, arriving in batches, cannot be stored and thus must be immediately routed to single-server FIFO queues operating in parallel. The dispatcher can memorize its routing decisions but at any time instant does not have any system's state information. The only information available is the batch/job size and inter-arrival time distributions, and the servers' service rates. Under these conditions, one is interested in the routing policies which minimize the job's long-run mean response time. The single-parameter routing policy is being proposed which, according to the numerical experiments, outperforms best routing rules known by now for non-observable dispatching systems: probabilistic and deterministic. Both the batch-wise and job-wise assignments are studied. Extension to systems with unreliable servers is also addressed.

Symmetric and asymmetric adjustment of bank deposit interest rates: empirical evidence from Kenya

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Moses Nzuki Nyangu ◽  
Freshia Wangari Waweru ◽  
Nyankomo Marwa
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Interest Rates ◽  
Asymmetric Adjustment ◽  
Deposit Rate ◽  
Content Type ◽  
Long Run ◽  
Adjustment Speed ◽  
Short Run ◽  
Pass Through

PurposeThis paper examines the sluggish adjustment of deposit interest rate categories with response to policy rate changes in a developing economy.Design/methodology/approachSymmetric and asymmetric error correction models (ECMs) are employed to test the pass-through effect and adjustment speed of deposit rates when above or below their equilibrium levels.FindingsThe findings reveal an incomplete pass-through effect in both the short run and long run while mixed results of symmetric and asymmetric adjustment speed across the different deposit rate categories are observed. Collusive pricing arrangement behavior is supported by deposit rate categories that adjust more rigidly upwards than downwards, while negative customer reaction behavior is supported by deposit rate categories that adjust more rigidly downwards than upwards.Practical implicationsEven though the findings indicate an aspect of increased responsiveness over the period, the sluggish adjustment of deposit rates imply that monetary policy is still ineffective and not uniform across the different deposit rate categories.Originality/valueTo the best of the authors' knowledge, this is the first study to empirically examine both symmetric and asymmetric adjustment behavior of deposit interest rate categories in Kenya. The findings are key to policy makers as they provide insights on how long it takes to adjust different deposit rate categories to monetary policy decisions. In addition, the behavior of deposit rates partly explains why interest rates capping was imposed in Kenya in 2016.

ANALYZING THE ASYMMETRIC EFFECTS OF CRUDE OIL PRICE CHANGES ON CHINA’S PETROLEUM PRODUCT PRICES

2020 ◽  
pp. 1-20
Author(s):  
XIANCHUN LIAO ◽  
JUNGHO BAEK
Keyword(s):  
Crude Oil ◽  
Oil Prices ◽  
Price Transmission ◽  
Gasoline Prices ◽  
Distributed Lag ◽  
Nonlinear Ardl ◽  
Crude Oil Prices ◽  
Long Run ◽  
Pass Through ◽  
Asymmetric Cointegration

As the world’s second-largest crude oil consumer, China depends on imports for approximately 60% and domestic production for approximately 40%, of its oil demand. Therefore, it is very interesting to assess the pass-through effects of both domestic and international crude oil prices to gasoline and diesel prices. After the short- and long-run investigations using the nonlinear autoregressive distributed lag (ARDL) methodology of Shin et al. [Shin, Y, BC Yu and M Greenwood-Nimmo (2014). Modelling asymmetric cointegration and dynamic multipliers in a nonlinear ARDL framework” Festschrift in Honor of Peter Schmidt: Econometric Methods and Applications, R Sickels and W Horrace (eds.), pp. 281–314. Springer.], we find overwhelming evidence supporting the asymmetric price transmission mechanism between crude oil prices and gasoline prices in both the short- and long-run. In the case of diesel prices, on the other hand, the asymmetry effects seem likely to be a long-run phenomenon.

Bias optimal admission control policies for a multiclass nonstationary queueing system

2002 ◽  
Vol 39 (01) ◽  
pp. 20-37 ◽  
Author(s):  
Mark E. Lewis ◽  
Hayriye Ayhan ◽  
Robert D. Foley
Keyword(s):  
Optimal Policy ◽  
Queueing System ◽  
Sufficient Conditions ◽  
System Capacity ◽  
Average Reward ◽  
Finite Capacity ◽  
Long Run ◽  
Optimal Policies ◽  
Service Rates ◽  
Long Run Average Reward

We consider a finite-capacity queueing system where arriving customers offer rewards which are paid upon acceptance into the system. The gatekeeper, whose objective is to ‘maximize’ rewards, decides if the reward offered is sufficient to accept or reject the arriving customer. Suppose the arrival rates, service rates, and system capacity are changing over time in a known manner. We show that all bias optimal (a refinement of long-run average reward optimal) policies are of threshold form. Furthermore, we give sufficient conditions for the bias optimal policy to be monotonic in time. We show, via a counterexample, that if these conditions are violated, the optimal policy may not be monotonic in time or of threshold form.

scholarly journals An attribution analysis of soybean price volatility in China: global market connectedness or energy market transmission?

2020 ◽  
pp. 1-12
Author(s):  
Youwang Zhang ◽  
Chongguang Li ◽  
Yuanyuan Xu ◽  
Jian Li
Keyword(s):  
Price Volatility ◽  
Global Market ◽  
Energy Price ◽  
Policy Makers ◽  
Market Participants ◽  
Long Run ◽  
Soybean Price ◽  
Short Run ◽  
Pass Through ◽  
The Impact

This study examines the impact of international soybean price and energy price on Chinese soybean price. Applied to monthly data over the period of 2007-2017, results show that both international soybean price and energy price have significant impacts on Chinese soybean price, while the impact from global soybean market tends to be more profound. First, we find that in the long run the cumulative pass-through elasticity of Chinese soybean price to international soybean price is greater than the elasticity to international energy price. Second, in the short run, international soybean price shocks transmit more quickly to Chinese soybean price. Our results shed new light on the determinants of soybean price volatility in China, and provide meaningful implications on the price risk management for market participants and policy makers.

Customer routing to different servers with complete information

1989 ◽  
Vol 21 (4) ◽  
pp. 861-882 ◽  
Author(s):  
Zvi Rosberg ◽  
Parviz Kermani
Keyword(s):  
Complete Information ◽  
Service Rate ◽  
Dependent Rate ◽  
Routing Policy ◽  
State Dependent ◽  
Long Run ◽  
Ideal Situation ◽  
Ideal System ◽  
Holding Cost ◽  
Routing Policies

In this paper we consider a queueing system having n exponential servers, each with its own queue and service rate. Customers arrive according to a Poisson process with rate λ, and upon arrival each customer must be routed to some server's queue. No jockeying amongst the queues is allowed and each server serves its queue according to a first-come-first-served discipline.Each server i, 1 ≦ i ≦ n, provides service with a state-dependent rate μ(i)(k), k = 0, 1, …. In addition, at every queue i, there is a deterministic holding cost which occurs at rate h(i)(k) while there are k customers at the queue.An admissible routing policy is a policy that assigns each arriving customer to one of the queues. A decision at time t may be randomized and dependent on the queue lengths and decisions till time t. An optimal routing policy is an admissible policy that minimizes the long-run average holding cost.In this study, we bound the optimal cost from below, by considering an ideal system, where each server optimally selects a given proportion of customers, irrespective of other servers' selections. From this ideal system we construct a class of admissible routing policies, the overflow routing class, that approximates the ideal situation for each server. Finally, we evaluate the policies and compare them to the lower bound.

DYNAMIC ASSIGNMENT OF DEDICATED AND FLEXIBLE SERVERS IN TANDEM LINES

2007 ◽  
Vol 21 (4) ◽  
pp. 497-538 ◽  
Author(s):  
Sigrún Andradóttir ◽  
Hayriye Ayhan ◽  
Douglas G. Down
Keyword(s):  
Average Throughput ◽  
Buffer Space ◽  
Dynamic Assignment ◽  
Flexible Servers ◽  
Long Run ◽  
Cross Training ◽  
Service Rates ◽  
Dedicated Servers ◽  
Flexible Server

Consider a system of queuing stations in tandem having both flexible servers (who are capable of working at multiple stations) and dedicated servers (who can only work at the station to which they are dedicated). We study the dynamic assignment of servers to stations in such systems with the goal of maximizing the long-run average throughput. We also investigate how the number of flexible servers influences the throughput and compare the improvement that is obtained by cross-training another server (i.e., increasing flexibility) with the improvement obtained by adding a resource (i.e., a new server or a buffer space). Finally, we show that having only one flexible server is sufficient for achieving near-optimal throughput in certain systems with moderate to large buffer sizes (the optimal throughput is attained by having all servers flexible). Our focus is on systems with generalist servers who are equally skilled at all tasks, but we also consider systems with arbitrary service rates.

scholarly journals An empirical study of exchange rate pass-through in China

2012 ◽  
Vol 59 (2) ◽  
pp. 135-156 ◽  
Author(s):  
Xiaowen Jin
Keyword(s):  
Exchange Rate ◽  
Linear Model ◽  
Inflation Rate ◽  
Exchange Rate Regime ◽  
Flexible Exchange Rate ◽  
Exchange Rate Policy ◽  
Chinese Government ◽  
Long Run ◽  
Pass Through ◽  
Exchange Rate Pass Through

This paper seeks to estimate exchange rate pass-through in China and investigate its relationship with monetary policy. Linear and VAR models are applied to analyze robustness. The linear model shows that, over the long run, a 1% appreciation of NEER causes a decline in the CPI inflation rate of 0.132% and PPI inflation rate of 0.495%. The VAR model supports the results of the linear model, suggesting a fairly low CPI pass-through and relatively higher PPI pass-through. Furthermore, this paper finds that, with the fixed exchange rate regime, CPI pass-through remains higher. The exchange rate regimes influence on CPI pass through, combined with the fact that appreciation diminishes inflation, suggests that the Chinese government could pursue a more flexible exchange rate policy. In addition, reasons for low exchange rate pass-through for CPI are analyzed. The analysis considers price control, basket and weight of Chinese price indices, distribution cost, and imported and non-tradable share of inputs.

How Structural Macroeconomic Shocks Can Explain Exchange Rate Pass-Through in Developing Countries: A Common Trend Approach

2009 ◽  
Vol 9 (2) ◽  
pp. 1850161 ◽  
Author(s):  
Karim Barhoumi
Keyword(s):  
Developing Countries ◽  
Exchange Rate ◽  
Traditional Approach ◽  
Macroeconomic Shocks ◽  
Structural Shocks ◽  
Long Run ◽  
The Exchange Rate ◽  
Pass Through ◽  
New Formulation ◽  
Exchange Rate Pass Through

This paper investigates the exchange rate pass-through in 12 developing countries during the period 1980-2001 by adopting a new formulation. Rather than considering the traditional approach based on the exogenous exchange rate movement through correlation between exchange rate and prices, we focus on fundamental macroeconomic shocks that affect both exchange rate and prices. In order to do that, we employ long-run restrictions à la Blanchard and Quah (1989) to identify the different shocks through an open economic macroeconomic model (ISLM framework). We use the common trends approach proposed by Warne et al (1992). This allows us to calculate the pass-through as the responses of the exchange rate, CPI and import prices to the supply, the relative demand, the nominal and the foreign prices shocks. We show that the pass-through ratio in developing countries is different when considering different structural shocks.

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