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Economic Models - Convex Optimization

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Health Service Management 167<br />

WRITE(out,*)’ Composite index and the final rate of salary increase’<br />

WRITE(out,’(/)’)<br />

Deficit=Total_Deficit*a ; sortR=R ; Salary=Salary_f/members<br />

! Perform ranking operation<br />

CALL SORTQQ(LOC(sortR),groups,SRT$REAL4)<br />

DO i=1,groups<br />

s=R(i)<br />

DO j=1,groups<br />

IF(sortR(j) == s) scores(i)= j<br />

ENDDO ; ENDDO<br />

! Compute composite index<br />

Rsmall=R/100. ; Y=Rsmall*Salary ; s=SUM(Y)<br />

Employees=SUM(Members)<br />

rate=(y*100)/s/100. ; X=rate*deficit/Employees<br />

s=SUM(X)<br />

rate=(x*100.)/s/100. ; s=SUM(X) ; X=rate*Members<br />

s=SUM(X)<br />

Rate=(X*100.)/s/100. ; s=SUM(Rate) ; X=rate*scores<br />

s=SUM(X)<br />

rate=(X*100)/s/100. ; s=SUM(rate) ; X=Deficit*rate<br />

! Compute revised annual rates of salary increase<br />

Y=Salary_f-X<br />

Logvector=(LOG(Y/Salary_in))/ planning_hor<br />

newrate=(EXP(logvector) -1.)*100.<br />

WRITE(out,*) ’ Index Reduction Final Salary New rate’<br />

DO i=1,groups<br />

WRITE(out,’(1X,F9.6,2X,F10.3,4X,F10.2,6X,F6.4)’) Rate(i)&<br />

&, X(i), Y(i), newrate(i)<br />

ENDDO<br />

END<br />

7. Final Results<br />

In the last column of Table 7, the revised coefficients c i are stated. These<br />

new coefficients are to be considered in Eq. (2), and in the corresponding<br />

restrictions seeing in Eq. (6) for the final run. Also, the objective in Eq. (13)<br />

has been slightly reformed as follows:<br />

min z = (10P 1 d1 − + 9P 1d2 − + 8P 1d3 − + 7P 1d4 − + 6P 1d − 5 + 5P 1d6<br />

−<br />

+ 4P 1 d − 7 + 3P 1d − 8 + 2P 1d − 9 + P 1d − 10 ) + (P 2d − 37 + P 2d − 38<br />

+ P 2 d − 39 + 3P 2d − 42 + 2P 2d + 44 ) + P 3<br />

31∑<br />

i=22<br />

di − ∑36<br />

+ P 4<br />

+ (P 5 d − 40 + P 5d − 41 ) + (P 6d − 21 + 2P 6d − 11 + 2P 6d − 12<br />

i=32<br />

+ 3P 6 d − 13 + 4P 6d − 14 + 5P 6d − 15 + 6P 6d − 16 + 7P 6d − 17 + 8P 6d − 18<br />

+ 9P 6 d − 19 + 10P 6d − 20 ) + P 7d − 43 .<br />

d − i

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