Rui Henrique Alves

Differential Evolutionary Particle Swarm Optimization (DEEPSO): A Successful Hybrid

This paper explores, with numerical case studies, the performance of an optimization algorithm that is a variant of EPSO, the Evolutionary Particle Swarm Optimization method. EPSO is already a hybrid approach that may be seen as a PSO with self-adaptive weights or an Evolutionary Programming approach with a self-adaptive recombination operator. The new hybrid DEEPSO retains the self-adaptive properties of EPSO but borrows the concept of rough gradient from Differential Evolution algorithms. The performance of DEEPSO is compared to a well-performing EPSO algorithm in the optimization of problems of the fixed cost type, showing consistently better results in the cases presented.

Fiscal Federalism in the European Union: How Far Are We?

Almost 60 years have gone by since Robert Schuman’s famous speech (Schuman, 1963), in which he described the ‘European federation’ as the ultimate goal of the integration process that was beginning at that time. However, the results of this process are clearly different for the two perspectives that comprise it: economics and politics.

Can the North–South trade regime explain intra- and inter-country productivity differences?

The literature identifies North–South disparities in Total Factor Productivity (TFP), which, in turn, justify the bulk of international income differences. By building a dynamic, general equilibrium model of North–South technological-knowledge diffusion with scale-invariant growth, we extend the literature in several directions: (i) growth is driven by Schumpeterian R&D and by high and low-skilled human-capital accumulation; (ii) three trade regimes are considered; (iii) sectoral and aggregate TFP measures are computed; (iv) the extent to which the North–South trade regime explains intra-country TFP and inter-country TFP differences is evaluated. In particular, the results suggest that intra-country TFP differences increase and inter-country TFP differences fall when countries are more interdependent.

Endogenous growth and European fiscal rules

We develop a general equilibrium endogenous growth model of a monetary union between two countries that differ in economic dimension and level of development. By solving transitional dynamics towards the steady state, we examine the impact of fiscal shocks that may lead to excessive deficits. Results suggest that the individual and the whole impact of such deficits depend on which country they occur. In such context, we argue that the small and less developed country should be allowed to temporarily run an excessive deficit, in order to improve economic convergence within the union.

PAR/PST location and sizing in power grids with wind power uncertainty

This paper presents a new stochastic programming model for PAR/PST definition and location in a network with a high penetration of wind power, with probabilistic representation, to maximize wind power penetration. It also presents a new optimization meta-heuristic, denoted DEEPSO, which is a variant of EPSO, the Evolutionary Particle Swarm Optimization method, borrowing the concept of rough gradient from Differential Evolution algorithms. A test case is solved in an IEEE test system. The performance of DEEPSO is shown to be superior to EPSO in this complex problem.

ECONOMIC GROWTH EFFECTS OF AN INTERNATIONAL CRISIS

We develop a general equilibrium endogenous growth model where final goods are produced in either the exporter sector or the importer sector, in order to analyze the short, medium and long-run growth effects of an external demand shock induced by an international crisis, such as the current one. Depending on the policy response, such a shock might (or might not) severely affect competitiveness, wage inequality, the economic growth rate and the technological-knowledge bias. This bias controls the paths towards the new steady state. The model shows that countries with balanced public finances can accommodate the external shock and that the intervention should be prompt, as the delay is costly. Results appear to be supported by empirical evidence.