Vladimír Gazda

Tax optimization in an agent-based model of real-time spectrum secondary market

The wireless communication industry is an essential sector boosting economic progress worldwide. The structure of the legacy wireless communication market, characterised by static licensing schemes, is moving towards real-time secondary spectrum markets. While the technological body of spectrum trading has been discussed in detail, from an economic perspectives there are still a lot of gaps in understanding how these transactions affect the economy of future communication standards. A challenging aspect of the real-time spectrum market deployment is the implementation of the appropriate tax system that impacts the market structure. With regards to this, we aim to build an agent-based model of the real-time secondary spectrum market in which various taxes including value-added tax, corporate tax, consumption tax and fixed tax, are employed. The relations between selected tax type rates and the hypothetical revenue of the national regulator is established using Laffer curves. The results of the analysis confirm the existence of a tax distortion, i.e. a system deviation from the efficient system functioning affected by the tax introduction. To measure the complexity of the tax strategies and the emergent tax distortion, an original approach based on Euclidean metrics defined over a vector space of the system performance indicators was proposed. This approach was later applied in parallel with the traditional Harberger’s triangle methodology. We found that the constrained optimisation with the tax distortion restrictions provide satisfactory results regarding the stability of the tax distortion measure. Therefore, we propose the application of the most effective corporate tax optimisation complemented by selected additional tax types.

Fiscal Decentralization and Public debt in the European Union

This paper analyses the relationship between fiscal decentralization and the level of the public debt in the twenty seven member countries of the European Union. Our panel data analysis points to the importance of size as fiscal decentralization reduces public debt in large and small countries, but not in medium - size countries. In addition, our results show that the number of government levels and average size of the lowest government unit is insignificant with respect to the public debt in these countries.

An Agent-Based Economy Model of Real-Time Secondary Market for the Cognitive Radio Networks

The evolution of the cognitive radio network theory often presents economics-based methods and free market principles in the administration of network functioning. We present here, an application of the agent-based model in the case of an economy consisting of five primary users and secondary users (SUs) uniformly distributed in the linear region. We show that the price-based demand evolution and price competition play a significant role only in an “economizable” network loading band, while in both the low-loading and the over-loading state, the market rules fail. On the contrary, in the economizable loading state, the price competition, demand sensitivity and specific SUs’ locations work well, underpinning the known economic rules.

Agent-based modeling of the cooperative spectrum management with insurance in cognitive radio networks

We propose and numerically analyze an agent-based simulation model of the spectrum frequency trading mechanism, where the heterogeneous agents take on the role of primary users. The interactions with the demand of the secondary users are considered. The model is constructed on the basis of Bak-Sneppen model of coevolution where the extremal dynamics is used to activate the low profitable users. Here, the strategies of the primary users are coevolving. They are characterized by the spectrum prices and cooperation intensity levels. The primary users interact indirectly by means of the demand stimulation of the secondary users and an insurance pool, which is provided by the spectrum exchange management system. The existence of the insurance pool is motivated by the needs of avoidance of the financial losses. The simulation results indicate the reliability of the insurance mechanism. In addition, several notable phenomena have emerged from the interactions of agents. The price increase resulting from the spontaneously formed oligopolistic practices of agents is considered as the most emergent feature of the model.

Frequency spectrum allocation in an agent-based model of real-time spectrum secondary market

A significant increase in wireless communication has been observed in the last decade. Traditional fixed spectrum allocation presents limitations to better spectrum utilization. Real-time secondary spectrum market seems to be appropriate approach to eliminating the problem of spectrum scarcity. Economic aspects of the new approach are still only partially investigated. Besides the conventional wholesale market with wholesale price paid for frequency spectrum, we introduce new system of allocation based on tax paid by operators for unused frequency spectrum. We aim to build an agent-based model of the real-time secondary spectrum market to compare two systems of spectrum allocation. We performed parameter sensitivity analysis and robustness against initial conditions. The results of the simulation show different impact on licence owners revenue as well as operators revenue.

On the Interdependence of the Financial Market and Open Access Spectrum Market in the 5G Network

Modern 5G networks offer a large space for innovation and a completely new approach to addressing network functioning. A fixed spectrum assignment policy is a significant limitation of today’s wireless communication network practice and is to be replaced by a completely new approach called dynamic spectrum access (DSA). However, there is no general agreement on the organization of the DSA. Some studies suggest that open access market can be inspired by the electricity or financial markets. It allows to treat operators with region coverage as investors entering the market and trading the spectra on an on-demand basis. Because investors operate in both the financial markets and the markets for spectra, new interference between both markets emerges. Our paper shows how the risk-free rate of return stemming from the financial markets influences the techno-economic properties of the network. We show that, for low risk-free returns, the spectrum market becomes oversupplied, which keeps service prices very low and spectrum trading volumes large. In contrast, if risk-free returns are high, then spectrum trading volumes decline and the market becomes price sensitive; in other words, economic rules begin to work better.

The economy model of the multi-homing based dynamic spectrum access networks

The multi-homing technique in the dynamic spectrum access networks presents the key mechanism to improve the overall spectrum utilization and social surplus of the end-users willing to communicate. In general, multi-homing allows the enduser to switch dynamically among the operators and together with other bunch of protocols are being developed in the IETF. They aim for better utilizing the network resources and thus improving the quality of service and experience (QoS/QoE) of the end-users. In our paper we present the agent-based application of the multi-homing technique, where the focus is paid on the investigation of the economy impacts on the overall network functioning of such a type. We show that the price-based demand evolution and price competition effects the network functioning only in the certain range of the network utilization. In this specific utilization range, the price competition, demand sensitivity and specific end-users location work well, conforming with the known economic rules.

Spatial Real-Time Price Competition in the Dynamic Spectrum Access Markets.

We present the agent-based model of the real-time spectrum trading market. Real-time means that the frequency spectrum is allocated to the operators in real-time and thus, the capacities of the operators are dynamically varying. The agent-based model consists of the two levels. The first level (the wholesale market) deals with the spectrum distribution towards the operators, where the operators compete for the spectrum resources. The second level (the retail market) presents the place where the operators compete with each-other to provide their services to the end-users. In our model, the operators are assumed to be heterogeneous in terms of the quality of service (QoS) perception. The heterogeneity of the operators exists due to the different placement of their base-stations (BTSs) in the investigated region. The BTS in the middle of the region is naturally favored, because of the unique spectral efficiency it provides to the end-users. We numerically analyze the volumes of the frequency spectra purchased by the operators, average revenue and the retail price of the operators under the consideration of three different pricing mechanisms.

On the Structure of European Economic and Monetary Union – Clues from the Data and Economic Intuition

Abstract In this work we aim to shed light on the dynamics of the convergence/divergence macroeconomic indicators of the EU-15 countries. The empirical distance-based approach is applied to evaluate the differences of the member states and localize the core-periphery issues of unionization.

Mutual Debts Compensation as Graph Theory Problem

The article deals with a serious problem of many postcommunist countries i.e. firms’ financial insolvency as a result of their mutual debts. Some authors proposed graph theory application in solution of the problem. Creditor - debtor relationship is modelled by a digraf of unpayable debtsG = (V Ey), where the set of vertices V represents the firms and the set of edges E represents the creditor—debtor relationship. Function y assigns positive value of debt to each of the edges. The role of ministry of finance in mutual debts compensation process is discussed in the article.