Stochastic and Global Optimization

1. Front Matter

   Pages i-xi

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2. Topographical Differential Evolution Using Pre-calculated Differentials

   • M. M. Ali, A. Törn

   Pages 1-17

3. Optimal Tax Depreciation in Stochastic Investment Model

   • V. I. Arkin, A. D. Slastnikov

   Pages 19-32

4. Global Optimisation of Chemical Process Flowsheets

   • I. D. L. Bogle, R. P. Byrne

   Pages 33-48

5. One-dimensional Global Optimization Based on Statistical Models

   • James M. Calvin, Antanas Žilinskas

   Pages 49-63

6. Animated Visual Analysis of Extremal Problems

   • Gintautas Dzemyda

   Pages 65-91

7. Test Problems for Lipschitz Univariate Global Optimization with Multiextremal Constraints

   • Domenico Famularo, Paolo Pugliese, Yaroslav D. Sergeyev

   Pages 93-109

8. Numerical Techniques in Applied Multistage Stochastic Programming

   • Karl Frauendorfer, Gido Haarbrücker

   Pages 111-127

9. On the Efficiency and Effectiveness of Controlled Random Search

   • Eligius M. T. Hendrix, Pilar M. Ortigosa, Inmaculada Garcia

   Pages 129-145

10. Discrete Backtracking Adaptive Search for Global Optimization

    • Birna P. Kristinsdottir, Zelda B. Zabinsky, Graham R. Wood

    Pages 147-174

11. Parallel Branch-and-bound Attraction Based Methods for Global Optimzation

    • Kaj Madsen, Julius Žilinskas

    Pages 175-187

12. On Solution of Stochastic Linear Programs by Discretization Methods

    • K. Marti

    Pages 189-207

13. The Structure of Multivariate Models and the Range of Definition

    • Vydūnas Šaltenis, Vytautas Tiešis

    Pages 209-219

14. Optimality Criteria for Investment Projects Under Uncertainty

    • Sergey A. Smolyak

    Pages 221-233

15. Back Matter

    Pages 234-236

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In the paper we propose a model of tax incentives optimization for inve- ment projects with a help of the mechanism of accelerated depreciation. Unlike the tax holidays which influence on effective income tax rate, accelerated - preciation affects on taxable income. In modern economic practice the state actively use for an attraction of - vestment into the creation of new enterprises such mechanisms as accelerated depreciation and tax holidays. The problem under our consideration is the following. Assume that the state (region) is interested in realization of a certain investment project, for ex- ple, the creation of a new enterprise. In order to attract a potential investor the state decides to use a mechanism of accelerated tax depreciation. The foll- ing question arise. What is a reasonable principle for choosing depreciation rate? From the state’s point of view the future investor’s behavior will be rat- nal. It means that while looking at economic environment the investor choose such a moment for investment which maximizes his expected net present value (NPV) from the given project. For this case both criteria and “investment rule” depend on proposed (by the state) depreciation policy. For the simplicity we will suppose that the purpose of the state for a given project is a maximi- tion of a discounted tax payments into the budget from the enterprise after its creation. Of course, these payments depend on the moment of investor’s entry and, therefore, on the depreciation policy established by the state.

• STATISTICA
• computer science
• discrete optimization
• efficiency
• global optimization
• mathematics
• optimization
• statistics

• Institute of Mathematics and Informatics, Vilnius, Lithuania

  Gintautas Dzemyda, Vydūnas Šaltenis, Antanas Žilinskas

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