Economic Models - Convex Optimization

Introduction
of the key concepts. The authors have outlined a framework for advancing
enterprise integration modeling based on the state-of-the art techniques.
Anna Maria Mauza in a path breaking research presents a model suitable
for an efficient budget management of a health service unit, by applying goal
programming. She analyzes all the details needed to formulate the proper
model, in order to successfully apply goal programming, in an attempt to
satisfy the expectations of the decision maker in the best possible way,
providing at the same time alternative scenarios considering various socioeconomic
factors.
In the section for policy analysis, Iacone and Orsi applied a small macroeconometric
model to ascertain if the inflation dynamics and controls for
Poland, Czech Republic, and Slovenia, are compatible with the remaining
EU member countries. They found that the real exchange rate is the most
effective instrument to stabilize inflation whereas direct inflation control
mechanisms may be ineffective in certain cases. These experiments are
very useful to design anti-inflation policies in open economies.
AthanasiosAthanasenas investigated the co-integration dynamics of the
credit–income nexus, within the economic growth process of the post-war
US economy, over the period from 1957 up to 2007. Given the existing
empirical research on the credit-lending channel and the established relationship
between financial intermediation and economic growth in general,
the main purpose is to analyze in detail the causal relationship between
finance and growth by focusing on bank credit and income GNP, in the
post-war US economy. This is a new application of an innovative technique
of co-integration analysis with emphasis on system stability analysis. The
results show that there is no short-run effect of credit changes on income
changes, but only in the long-run, credit affects money income.
The book covers most of the important areas of economics with the basic
analytical framework to formulate a logical structure and then suggest and
implement methods to quantify the structure to derive applicable policies.
We hope the book would be a source of joy for anyone interested to make
economics a useful discipline to enhance human welfare rather than being
a sterile discourse devoid of reality.
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