This paper proposes an Optimal Power Flow (OPF) algorithm by Direct Load Control (DLC) programs to optimize the operational cost of smart grids considering various scenarios based on different constraints. The cost function includes active power production cost of available power sources and a novel flexible load curtailment cost associated with DLC programs. The load curtailment cost is based ...

We report on a real-time demand response experiment with 100 controllable devices. The reveals several key challenges in the deployment of program, including time delays, uncertainties, characterization errors, multiple timescales, and nonlinearity, which have been largely ignored previous studies. To resolve these practical issues, we develop implement two-level multi-loop control structure in...

The Balassa-Samuelson effect is usually seen as the prime explanation of the continuous real appreciation of central and east European (CEE) transition countries' currencies against their western counterparts. The response of a small country's real exchange rate to various shocks is derived in a simple model. It is shown that productivity shocks work not only through a Balassa-type supply chann...

A dynamic stochastic general equilibrium monetary model with incomplete asset markets, nominal price rigidities and market imperfections is developed to shed light on the role of exchange rate and its relation with current account dynamics in the formulation of monetary policy. In the recent literature, labelled as new open economy macroeconomics (NOEM), the dynamics of current account do not m...

This paper is concerned with clustering in demand. We present a discrete choice model of consumption that incorporates habit formation and information exchange among consumers in fixed social networks. We provide an analytical solution to a special case of the model by using technical tools from chemistry and biology. We demonstrate the validity of these results for the general case numerically...