• Title/Summary/Keyword: Diseconomy of scale

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Schemes for the Environmentally Sound and Sustainable Development of Groundwater Resources (지하수자원의 환경적으로 지속가능한 개발 방안)

  • Hong, Sang-Pyo;Kim, Jung-Wuk
    • Journal of Environmental Impact Assessment
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    • v.5 no.2
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    • pp.49-57
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    • 1996
  • On the basis of sustainable long-term water resources planning, the development of ground water resources should be interlocked with the surface water development In considering the intertemporal equity, overpumping of groundwater may diminish or eliminate the groundwater resources stock of post-generations. Regulatory landuse zoning for groundwater resources recharge area is indispensable measures to prevent groundwater pollution. Adequate treatment of polluted water from various sources such as municipal sewage, industrial wastewater, landfill site leachate, and abandoned boring wells, is also necessary for groundwater protection. To preserve groundwater resources as common property goods, groundwater use tax should be imposed upon the large scale groundwater use. Finally, the establishment of groundwater development license system is recommended to achieve the social optimal production and to avoid external diseconomy.

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R&D Investment and Operational Efficiency Analysis of IT Firms : Comparative Analysis of Service and Manufacturing Sectors (IT 기업의 R&D 투자 및 운영 효율성 분석 : 서비스업 및 제조업의 비교를 중심으로)

  • Kim, Changhee;Lee, Gyusuk;Kim, Soowook
    • Journal of Information Technology Services
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    • v.15 no.2
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    • pp.51-63
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    • 2016
  • In this study, we conducted a comparative analysis of R&D investment efficiency and operational efficiency of IT firms using Data Envelopment Analysis (DEA). We categorized thirteen sample firms into two groups-IT manufacturing and IT service-after an extensive literature review on IT industry classification. We adopted an output-oriented two-stage DEA model suggested by Banker et al. (1984) with total asset and R&D investment as input variables. Then, we constructed investment efficiency and operational efficiency by using Return on Equity (ROE) and Return on Asset (ROA) as intervening variables and operating income and Earnings Per Share (EPS) as output variables. The outcome of the analysis is summarized as follows. First of all, IT manufacturing firms were more efficient (57% on average) than IT service firms. To be specific, IT service firms showed decreasing returns to scale (DRS) with diseconomy of scale. In contrast, IT service firms showed higher operational efficiency (81.5% on average) than IT manufacturing firms. Also, we conducted a Mann-Whitney U test to compare the output of IT service firms and IT manufacturing firms. Lastly, we found a negative correlation ($R^2$ = -.754) between R&D investment efficiency and operational efficiency which infers the trade-off between two constructs

A Study on an Estimation of Optimum Rice Farm Size (수작농가(水稻作農家)의 적정영농규모계측(適正營農規模計測)에 관(關)한 연구(硏究) -강원도 철원군 평야지역 농가를 중심으로-)

  • Kim, Jong-Pil;Lim, Jae-Hwan
    • Korean Journal of Agricultural Science
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    • v.32 no.1
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    • pp.81-94
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    • 2005
  • This study is aimed at giving the basic information for individual farm households to make decisions for optimizing their farm sizes and for the government to implement farm size optimization policies through the identification of combinations among rice production factors in plain areas like Cheolwon district and the suggestion of the optimal farm sizes of individual farmers based on the scale of economy calculated. The data of agricultural production costs of 50 rice farmers in the plain area which is located in Dongsong-eup Cholwon district, Kangwon province were used in the analysis. The 'translog' cost function among various methods which is a flexible function type was adopted to calculate the scale of economy in rice production. Seemingly unrelated regression(SUR) method was used in forecasting functions and processing other statistics by SHAZAM which is one of the computer aid program for quantitative econometric analysis. In conclusion, the long-run average cost(LAC) curve showed 'U-shape' which was different from 'L-type' one which was shown in the previous studies by others. The lowest point of the LAC was 9.764ha and the concerned production cost amounted to 633 Won/kg. Based on these results, it have to be suggested that around 10 ha of paddy is the target size for policy assistances to save costs under the present level of farming practices and technology. The above results show that the rice production costs could be saved up to 10ha in Cheolwon plain area which is a typical paddy field. However, land use, land condition, land ownership and manager's ability which may affect scale of economy should be considered. Furthermore, reasonable management will have to be realized by means of labor saving technology and cost saving management skill like enlargement of farm size of rice.

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Disparity between Rural and Urban Living Area Based on Regional Interaction - Focused on Busan-Ulsan mega city - (지역 간 상호연계에 기반 한 농촌과 도시 간 생활권의 차이 - 부산.울산 광역도시권을 중심으로 -)

  • Kim, Hyun-Joong;Kang, Dong-Woo;Cho, Deok-Ho;Lee, Seong-Woo
    • Journal of Korean Society of Rural Planning
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    • v.16 no.4
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    • pp.61-75
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    • 2010
  • Daily living area can be delimited differently depending on what area is to be focused. Based on regional interaction, the present study empirically analyzed the difference between living areas focusing on rural area and ones relying on urban area. We established two types of living areas in Busan-Ulsan mega city with different focus areas (rural versus urban), using travel OD data (2006). According to the result, the fonn of spatial clusters in urban living area differed from that of spatial clusters in rural area; the boundaries of living area were not fit to those of administrative areas in both types; and living areas in both types tended to extend over more than two administrative areas. The results cast some implications concerning spatial planning and policy for living area delimitation. First, since the spatial structure and interconnection of urban area differs to those of rural area, it is required to delimit living areas discriminatively depending on the objectives of the spatial plan. Additionally, the living area should be established more specifically and systematically by further subdividing the form of spaces depending on the objectives and types of the plan. Second, the administrative areas should be consolidated now that the difference of boundaries of administrative and living areas lead to inconvenience of residents, increased administration costs and scale diseconomy. Lastly, the living areas should be delimited by the metropolitan or mega city planning and thus be reflected to its offsprings.