Recently added articles from The Engineering Economist:
ECONOMIC ANALYSIS OF ELECTRIC POWER TRANSMISSION EXPANSION
Oct 01, 2008; ... When transmission congestion reaches a high level, short-term congestion management tools become more expensive than capital cost investments such as generation or transmission expansion. In such cases, an economics-based investment plan should be developed for the power system. Although there ...
A COMPONENT REPLACEMENT MODEL FOR ELECTRICITY DISTRIBUTION SYSTEMS
Oct 01, 2008; ... A new replacement analysis methodology is developed and demonstrated to determine system-level component replacement schedules for electricity distribution systems composed of sets of heterogeneous assets. The proposed model is an iterative combined dynamic programming and integer programming ...
ENERGY TECHNOLOGY LEARNING THROUGH DEPLOYMENT IN COMPETITIVE MARKETS
Oct 01, 2008; ... Technology learning as observed in experience and learning curves shows that government deployment programs can be efficient tools for technology-led strategies to manage the risk of climate change. But better theoretical understanding is needed to explain observed learning rates and make ...
SHORT-TERM ELECTRIC POWER TRADING STRATEGIES FOR PORTFOLIO OPTIMIZATION
Oct 01, 2008; ... In recent years, there have been significant expansions of the wholesale electricity market where a utility can sell its excess power day-ahead or real-time. In spite of these expansions, traders still in practice make often subjective and haphazard trading decisions based on their experiences ...
OPERATIONAL DECISIONS, CAPITAL STRUCTURE, AND MANAGERIAL COMPENSATION: A NEWS VENDOR PERSPECTIVE
Jul 01, 2008; ... While firm growth critically depends on financing ability and access to external capital, the operations management and engineering economics literature seldom considers the effects of financial constraints on the firms' operational decisions. Another critical assumption in traditional ...
A STUDY ON ESTIMATING INVESTMENT TIMING OF REAL OPTIONS
Jul 01, 2008; ... One of the most critical issues in real options analysis is determining the optimal timing of the irreversible investment during the life of the option. Research indicates that failing to exercise real options on time reduces the project's value much less than predicted. However, the question of ...
CAN WE CAPTURE THE VALUE OF OPTION VOLATILITY?
Jul 01, 2008; ... Volatility is the one parameter that is added to information utilized in traditional discounted cash flow analysis in order to calculate the value of a real option. There is no single, theoretically justified approach for calculating the volatility coefficient for real options. This article ...
A HYBRID DERIVATIVE TRADING SYSTEM BASED ON VOLATILITY AND RETURN FORECASTING
Jul 01, 2008; ... The following proposes a methodology that utilizes a generalized regression neural network to develop a hybrid option trading system that incorporates both volatility and return forecasting. This study focuses on the S&P 500 stock index as being representative of the market. Two different ...
BIAS AND ERROR IN MINE PROJECT CAPITAL COST ESTIMATION
Apr 01, 2008; ... Previous analyses of small samples of mining projects have found that feasibility studies tend to underestimate the as-built capital costs of the project. Our review of 63 international mining and smelting projects confirms that as-built capital costs are, on average, 14% higher than as ...
APPLYING TARGET COSTING IN THE DEVELOPMENT OF MARKETABLE AND ENVIRONMENTALLY FRIENDLY PRODUCTS FROM SWINE WASTE
Apr 01, 2008; ... Management of swine waste generated in the United States is a challenging problem facing engineers, farmers, scientists, regulators, and policy-makers. Technologies for processing and storing swine waste have not been fully developed and refined in a manner acceptable to the public and ...
LETTER TO THE EDITOR: A DISPUTATION BETWEEN THE AUTHORS AND THE REVIEWING EDITOR
Apr 01, 2008; ... Authors Bertisen and Davis are commended for their study of mine project capital cost estimation. They rightly point out that the estimated cost when compared to the actual cost errs usually by underestimating. They analyze the "undershooting" and propose a remedy and also suggest that the ...
2007 ASEE-EED BUSINESS MEETING MINUTES
Jan 01, 2008; ... John Lamancusa attended a portion of the meeting, representing PIC-I. 1. Called to order at 12:35 pm by Chair John Ristroph on June 25, 2007, in Honolulu, Hawaii, at the American Society of Engineering Education Annual Conference and Exposition. 2. Division Best Paper Award. Don ...
PROBABILISTIC DCF ANALYSIS AND CAPITAL BUDGETING AND INVESTMENT-A SURVEY
Jan 01, 2008; ... The article surveys contributions to the literature covering the field of probabilistic discounted cash flow (DCF) analysis of individual capital investments from the earliest contributions of the 1960s to today. Such analysis includes the methods of present worth (net present value), annual ...
SPECIAL ISSUE CALL FOR PAPERS "FINANCIAL ENGINEERING AND ITS IMPACT ON THE TEACHING, RESEARCH, AND PRACTICE OF ENGINEERING ECONOMICS"
Apr 01, 2007; ... While actively practiced for three decades since the introduction of the Black-Scholes options pricing model, "financial engineering" has recently generated considerable interest outside of traditional finance departments and is now attracting the attention of engineers, physicists, and ...
TAKING A MOMENT TO TEACH ENGINEERING ECONOMY
Apr 01, 2007; ... The acquisition of knowledge can be facilitated when previous knowledge or experience can be applied to the learning process. This article describes an approach for teaching engineering economy that utilizes knowledge from previous courses, statics and mechanics of materials, to improve ...
A PROFIT AND LOSS ANALYSIS FOR MAKE-TO-ORDER VERSUS MAKE-TO-STOCK POLICY-A SUPPLY CHAIN CASE STUDY
Apr 01, 2007; ... The make-to-order (MTO) or make-to-stock (MTS) decision is important for contract manufacturers supporting product supply chains. This case study provides an integrated profit and loss investment analysis for MTO versus MTS policy while also quantifying factory cost. The use of discrete-event ...
SOLVING THE WINNER DETERMINATION PROBLEM IN A DIVISIBLE-OBJECT AUCTION
Apr 01, 2007; ... In an auction of a divisible object, bidders' demand functions are often assumed to be nonincreasing, meaning that bidders are willing to pay less or the same price for every additional unit. Under this assumption, the optimal allocation that maximizes the auctioneer's revenue can be found using ...