Topic
Shadow price
About: Shadow price is a research topic. Over the lifetime, 2231 publications have been published within this topic receiving 67825 citations. The topic is also known as: Shadow price.
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TL;DR: This paper analyses the stability and fairness of two classes of rate control algorithm for communication networks, which provide natural generalisations to large-scale networks of simple additive increase/multiplicative decrease schemes, and are shown to be stable about a system optimum characterised by a proportional fairness criterion.
Abstract: This paper analyses the stability and fairness of two classes of rate control algorithm for communication networks. The algorithms provide natural generalisations to large-scale networks of simple additive increase/multiplicative decrease schemes, and are shown to be stable about a system optimum characterised by a proportional fairness criterion. Stability is established by showing that, with an appropriate formulation of the overall optimisation problem, the network's implicit objective function provides a Lyapunov function for the dynamical system defined by the rate control algorithm. The network's optimisation problem may be cast in primal or dual form: this leads naturally to two classes of algorithm, which may be interpreted in terms of either congestion indication feedback signals or explicit rates based on shadow prices. Both classes of algorithm may be generalised to include routing control, and provide natural implementations of proportionally fair pricing.
5,566 citations
TL;DR: A model of the demand for the commodity "good health" is constructed and it is shown that the shadow price rises with age if the rate of depreciation on the stock of health rises over the life cycle and falls with education if more educated people are more efficient producers of health.
Abstract: The aim of this study is to construct a model of the demand for the commodity "good health." The central proposition of the model is that health can be viewed as a durable capital stock that produces an output of healthy time. It is assumed that individuals inherit an initial stock of health that depreciates with age and can be increased by investment. In this framework, the "shadow price" of health depends on many other variables besides the price of medical care. It is shown that the shadow price rises with age if the rate of depreciation on the stock of health rises over the life cycle and falls with education if more educated people are more efficient producers of health. Of particular importance is the conclusion that, under certain conditions, an increase in the shadow price may simultaneously reduce the quantity of health demanded and increase the quantity of medical care demanded.
4,532 citations
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01 Jan 2000TL;DR: The shadow price approach to the estimation and decomposition of economic efficiency was proposed in this paper, which incorporated exogenous influences on efficiency change and productivity change, and the estimation of technical efficiency was discussed.
Abstract: 1. Introduction 2. Analytical foundations 3. The estimation of technical efficiency 4. The estimation and decomposition of cost efficiency 5. The estimation and decomposition of profit efficiency 6. The shadow price approach to the estimation and decomposition of economic efficiency 7. Incorporating exogenous influences on efficiency 8. The estimation of efficiency change and productivity change.
3,396 citations
TL;DR: In this paper, a directional distance function is used as a component in a new productivity index that readily models joint production of goods and bads, credits firms for reductions in bads and increases in goods, and does not require shadow prices of bad outputs.
2,003 citations
1,907 citations