Abstract
The official commemorative coins have exhibited an extraordinary increase in price during the last ten years. This has been accompanied by a commensurate increase in the sale of new issues. In 1973 alone, the Israeli Treasury generated a net profit of over 5 million dollars from the sale of commemorative coins. The Bank of Israel was interested in safeguarding the future profit generating potential of minting new coins and in learning how decisions relating to minting policy influence the long-range profits. Therefore, (1) the relationship between various coin characteristics and economic data, and the market price of old issues, as well as (2) the relationship between the profit from a new issue and the gains experienced from older issues and other coin characteristics, were determined using regression analysis. Based on the above, a dynamic model was constructed to show the relationship between the controllable variables (various minting policies) and the long-range present value of the net profit to be generated by them. Since the derivation of an optimal analytic solution seemed infeasible, several minting policies were simulated, and as a result a set of improved policies recommended.
| Original language | English |
|---|---|
| Pages (from-to) | 130-138 |
| Number of pages | 9 |
| Journal | European Journal of Operational Research |
| Volume | 8 |
| Issue number | 2 |
| DOIs | |
| State | Published - 1 Jan 1981 |
ASJC Scopus subject areas
- Computer Science (all)
- Modeling and Simulation
- Management Science and Operations Research
- Information Systems and Management