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Economic analysis and operations research: Optimization techniques in quantitative economic models.
3.w
Book Reviews
sector) does not give very different results from a two-sector model. Chapter 4 deals with the general problem of intertemporal consumption. The conclusions are that labor both in agricul?ure and manufacturing, will save very little but will work harder to increase the chances of future survival by consuming more (adequate diet and other needs). ‘The next chapters alre concerned with the e ffecis of international trade. A rising growth rate of exports tends to hinder the growth of real wages, so the government should not devote its efforts to that sector, in general. In Chapter 6 it is shown that
importation of food producible within the country should be reduced to zero, either by tariffs or export taxes. The latter policy will yield the government more revenue. Improved terms of trade benefit landowners but not labor. Chapter 7 contains a treatment in the uncertainty of world prices for exports. If tkc current price is low, exports should not be stocked until next year unless the clrpectedincrease in world price at least equals interest plus storage costs, which will rarely be the case in peacetime. Chapter 8 treats the problem of increasing agricultural production. Improved marketin,g facilities can help, as well as irrigation facilities. However the author draws rather negative conclusions about the use of new seed varieties, These will be adopted1only if the improvement of yield at high input levels (water, fertilizer) is greater than the square of the decline in yield at very low input ?--As. Chapters 9 and 10 contain empiricial studies of supply and demand functions for food.
F. W. Roush Mathematics Research Group Alabama State University Montgomery, AL 36101, USA
Jati K. Sengupta and Karl .A. Fox, Economic Analysis and Operations
Research: Optimization Techniques in Quantitative Mudek Amsterdam: North-Holland, 1969.
Economic
In the preface, the authors state that the purpose of the book is to present opera-
tions research to professional economists. The treatment of operations research is wide-ranging but highly condensed. The economic models ted which operations research is applied, many of which represent orginal research of the authors, are presented in detail. C%pter J is an introduction and historical review. Chapter 2 surveys linear programming including the simplex method, duality, relation to the Kuhn-Tucker conditions, linear fractional programming, integer linear programming, decomposition methods, decentralization methods of Arrow and Hurwicz, delegation models of Wopmans,, and recursive lin.ear programming. Chapter 3 covers duality in non.
321
linear programming, computational methods, quadratic programmillg, applications to investment, control theory, applications to the firm in particular the Modigliani Hohn model, and dynamic programming. Chapt.er 4 is on sensitivity analysis. The methods of parametric programming, perturbation analysis, stability analysis, and error analysis in Pinear programming are considered, as well as sensitivity ana,lysis in nonlinear programming and an application to farm production. Chapter 5 is on probabilistic methods in programming Chapter 6 gives applications to production-inventory models, optimal capacity expansion models, models involving Markov processes, and critical path analysis. Chapter 7 is a review of educational models involving long-ferm investment, teacher assignment, optimal admissions policy, faculty recruitmen:, decentralized planning, and growth planning. Chapter 8 is on decentralizat;.Jn models, in particular retail competition and rcgionalization of national economic policies. Chapter 9 discusses non-market social systems. I--.M‘. R ouslr
Mathematics Rmearch Group Alabama 5 tate Universit> Montgomery, AL 36101, USA
George D. Chacko, Technological Forecontrol: and Policy. Amsterdam: North-Holland, 1975.
Prospects, Problems,
This book discusses fxecasting and control of future technology, including the most promising areai of future problems, risks, social, environmental, ethical, and political issues, and :he relation of innovation to corporate management. The specific areas emphasizcxi are e:lergy, artificial intelligence, and genetic engineering. The first chapter discl:sses the need for new methods of interdisciplinary work in Linguistics”, and for a democratic government 113f science, “Interdisciplinary science, the “College of Copnizance”, which would establish and enforce regul,ations on scientific research m areas such as genetic engineering which may pose serious dangers for mankind. The second, third, and fourth chapters discuss innovation in corporations in relation to personnel, product feasibility, and profits. Chapter 5 is on risk, probability, and decision making. Chapter 6 surveys potential energy sources. Chapter 7 discusses the Allen Newell-Herbert Simon theory of problem-sol\*ing, work of Victor Glushkov 01: b’initeautomata, and a model of the brain due to Michael Arbib and Richard Didday. Chapter 8 is on the genetic code. Chapter 9 develops several principles of scientific discovery. Chapter 10 is on energy and r Jllution. The author recommends fast breeder reactors as the best near-time snJrce of energy. As solutions to pollution problems,
Book Reviews
sector) does not give very different results from a two-sector model. Chapter 4 deals with the general problem of intertemporal consumption. The conclusions are that labor both in agricul?ure and manufacturing, will save very little but will work harder to increase the chances of future survival by consuming more (adequate diet and other needs). ‘The next chapters alre concerned with the e ffecis of international trade. A rising growth rate of exports tends to hinder the growth of real wages, so the government should not devote its efforts to that sector, in general. In Chapter 6 it is shown that
importation of food producible within the country should be reduced to zero, either by tariffs or export taxes. The latter policy will yield the government more revenue. Improved terms of trade benefit landowners but not labor. Chapter 7 contains a treatment in the uncertainty of world prices for exports. If tkc current price is low, exports should not be stocked until next year unless the clrpectedincrease in world price at least equals interest plus storage costs, which will rarely be the case in peacetime. Chapter 8 treats the problem of increasing agricultural production. Improved marketin,g facilities can help, as well as irrigation facilities. However the author draws rather negative conclusions about the use of new seed varieties, These will be adopted1only if the improvement of yield at high input levels (water, fertilizer) is greater than the square of the decline in yield at very low input ?--As. Chapters 9 and 10 contain empiricial studies of supply and demand functions for food.
F. W. Roush Mathematics Research Group Alabama State University Montgomery, AL 36101, USA
Jati K. Sengupta and Karl .A. Fox, Economic Analysis and Operations
Research: Optimization Techniques in Quantitative Mudek Amsterdam: North-Holland, 1969.
Economic
In the preface, the authors state that the purpose of the book is to present opera-
tions research to professional economists. The treatment of operations research is wide-ranging but highly condensed. The economic models ted which operations research is applied, many of which represent orginal research of the authors, are presented in detail. C%pter J is an introduction and historical review. Chapter 2 surveys linear programming including the simplex method, duality, relation to the Kuhn-Tucker conditions, linear fractional programming, integer linear programming, decomposition methods, decentralization methods of Arrow and Hurwicz, delegation models of Wopmans,, and recursive lin.ear programming. Chapter 3 covers duality in non.
321
linear programming, computational methods, quadratic programmillg, applications to investment, control theory, applications to the firm in particular the Modigliani Hohn model, and dynamic programming. Chapt.er 4 is on sensitivity analysis. The methods of parametric programming, perturbation analysis, stability analysis, and error analysis in Pinear programming are considered, as well as sensitivity ana,lysis in nonlinear programming and an application to farm production. Chapter 5 is on probabilistic methods in programming Chapter 6 gives applications to production-inventory models, optimal capacity expansion models, models involving Markov processes, and critical path analysis. Chapter 7 is a review of educational models involving long-ferm investment, teacher assignment, optimal admissions policy, faculty recruitmen:, decentralized planning, and growth planning. Chapter 8 is on decentralizat;.Jn models, in particular retail competition and rcgionalization of national economic policies. Chapter 9 discusses non-market social systems. I--.M‘. R ouslr
Mathematics Rmearch Group Alabama 5 tate Universit> Montgomery, AL 36101, USA
George D. Chacko, Technological Forecontrol: and Policy. Amsterdam: North-Holland, 1975.
Prospects, Problems,
This book discusses fxecasting and control of future technology, including the most promising areai of future problems, risks, social, environmental, ethical, and political issues, and :he relation of innovation to corporate management. The specific areas emphasizcxi are e:lergy, artificial intelligence, and genetic engineering. The first chapter discl:sses the need for new methods of interdisciplinary work in Linguistics”, and for a democratic government 113f science, “Interdisciplinary science, the “College of Copnizance”, which would establish and enforce regul,ations on scientific research m areas such as genetic engineering which may pose serious dangers for mankind. The second, third, and fourth chapters discuss innovation in corporations in relation to personnel, product feasibility, and profits. Chapter 5 is on risk, probability, and decision making. Chapter 6 surveys potential energy sources. Chapter 7 discusses the Allen Newell-Herbert Simon theory of problem-sol\*ing, work of Victor Glushkov 01: b’initeautomata, and a model of the brain due to Michael Arbib and Richard Didday. Chapter 8 is on the genetic code. Chapter 9 develops several principles of scientific discovery. Chapter 10 is on energy and r Jllution. The author recommends fast breeder reactors as the best near-time snJrce of energy. As solutions to pollution problems,