a globally flexible almost ideal demand system the almost ideal demand system is combined with the fourier expenditure system subject to the assumption that preferences are of the price independent generalized logarithmic class the resulting demand system has the desirable features of each of its components aggregate demand equations are consistent with preferences of a representative consumer and consistent estimates of elasticities are obtained for all observed prices application of the new demand system to u s consumption of meats and fish reveals that it fits the data well and that the restriction to the usual specification is rejected

the merit order effect of wind and river type hydroelectricity generation on turkish electricity prices abstract the environmental concerns and dependency on gas imports push turkish policy makers to find ways of increasing the share of renewable sources in electricity generation providing incentives for renewable energy in the form of feed in tariffs is one of the measures to achieve this goal basing on the data of turkish electricity market operator we quantified the magnitude of the price effects of wind and river type hydro generations on hourly average of day ahead prices we find that wind and river type hydro plants reduced the spot electricity prices during the period of 2012 2017 and despite these resources get the same incentives their impacts on the spot prices and price volatility are different this can be useful for a more comprehensive cost benefit analysis aimed at differentiating incentive schemes the paper also discusses possible underlying reasons of these different impacts such as high seasonality of hydro generation and volatility of wind generation finally we show that assuming more than 75 of the price reductions were reflected into the consumer prices in turkey the net impact of wind and river type hydro generation on final consumer prices would be negative this finding contributes to the discussions on renewable energy incentive mechanisms

integrated markup rules for optimal pricing decisions in expanding markets for organic produce in expanding markets firms face uncertainty about demand response to changing conditions and the appropriate pricing response inclusion of retail demand factors in explaining markup decisions by wholesalers is crucial to accurate evaluation of the effects of price and market changes on profitability we apply an integrated demand and markup model to markets for organic broccoli and carrots where wholesalers set markups facing retail demand the estimated integrated system includes crossequation restrictions on organic and conventional prices received from retail publicity about food safety scares and availability of a competing certification programme the results show that organic wholesalers behave strategically in response to observable demand factors as they expand into fresh produce markets wholesalers arbitrage markups across items to increase market share combining crop specific and overall market information to decide on appropriate responses wholesalers also attempt to moderate markups in r

evaluating prior beliefs in a demand system the case of meat demand in canada an almost ideal demand system for meats is estimated using canadian data a bayesian approach is used to impose inequality restrictions on substitution elasticities via monte carlo integration and importance sampling in order to conform with prior beliefs about curvature and monotonicity restrictions and substitution relationships results are more consistent with the concavity and monotonicity restrictions from demand theory than with the added restriction that all meats are substitutes

trade and trade policy with imperfect competition the case of identical products and free entry abstract this paper analyses intra industry trade between economies containing an imperfectly competitive industry in which firms produce a homogeneous output production is subject to increasing returns to scale and there is free entry and exit of firms trade is shown to unambiguously increase welfare by reducing the degree of monopoly in each market and increasing firm size the effects of differences in technology and endowments on the pattern of trade and welfare are examined import tariffs are shown to raise welfare in the country employing the tariff and the welfare implications of various types of industry subsidy are examined

price relationships between qualitatively differentiated agricultural products organic and conventional wheat in germany organic agriculture which produces commodities that can be qualitatively differentiated from conventional food products has grown into an important market in many countries the dynamics of commodity prices in both sectors are partly interdependent but are also shaped by independent determinants and have rarely been studied we analyze organic food markets and their interdependencies with conventional markets in the context of wheat markets in germany which have been subject to a number of fundamental changes during the last two decades based on institutional market characteristics we suggest a flexible markov switching asymmetric time series model we find a pronounced temporal sequence of market phases that differ in their asymmetric dynamics and the extent to which the organic price is influenced by the conventional price organic wheat prices tend to be increasingly connected to prices of conventional wheat

supply and demand factors for organic produce although the organic produce industry is growing dramatically little is known about market structure we estimate a system of reduced form equations to evaluate supply and demand factors that influence equilibrium farm price and quantity in wholesale markets for organic broccoli carrots and lettuce in the long run demand factors dominate supply factors reduced wholesaling costs increased margins by which organic wholesale price exceeds nonorganic price and higher consumer income stimulate both farm price and output increasing the nonorganic farm price decreases equilibrium quantity of organics market expansion strategies should target consumers and wholesalers

profit shifting and trade agreements in imperfectly competitive markets profit shifting and trade agreements in imperfectly competitive markets do new rationales for trade agreements arise once imperfectly competitive markets are allowed we consider several trade models that feature imperfectly competitive markets and argue that the basic rationale for a trade agreement is in fact the same rationale that arises in perfectly competitive markets in all of the models that we consider and whether or not governments have political economic objectives the only rationale for a trade agreement is to remedy the inefficient terms of trade driven restrictions in trade volume we also show that the principles of reciprocity and nondiscrimination continue to be efficiency enhancing in these settings

an almost ideal demand system incorporating habits an analysis of expenditures on food and aggregate commodity groups breusch t s and a r pagan the lagrange multiplier test and its applications to model specification in econometrics the review of economic studies 47 jan 1980 239 254 eden benjamin the insurance buying gambler economic inquiry 18 july 1980 504 508 henderson charles f estimation of variance and covariance components biometrics 9 june 1953 226 252 hill daniel h deborah a ott lester d taylor and james m walker incentive payments in time of day electricity pricing experiments the arizona experiment this review 65 feb 1983 59 65 maddala g s and t d mount a comparative study of alternative estimators for variance components models used in econometric applications journal of the american statisticalassociation 68 june 1973 324 328 selby e b and w beranek sweepstakes contests analysis strategies and survey american economic review 71 mar 1981 189 195 spence michael and richard zeckhauser the effect of the timing of consumption decisions and the resolution of lotteries on the choice of lotteries econometrica 40 mar 1972 401 403 wallace thomas d and ashiq hussain the use of error components models in combining cross section with time series data econometrica 37 jan 1969 55 72 winett richard a and michael t nietzel behavioral ecology contingency management of consumer energy use american journal of community psychology 3 june 1975 123 133

economic guideline about financial utilization of flat plate solar collectors fpscs for the consumer segment in the city of eskisehir abstract solar energy systems yield energy savings relative to conventional systems by considering the ecological balance although it still has barriers the most commonly used system of this type is fpsc in turkey which produces hot water by absorbing solar energy through fpscs this study is a kind of guidance about utilization of fpscs in eskisehir that concentrates on a consumer segment the aim of the study is displaying the necessity of transition to renewable energy systems in the local free markets where the place of domestic resources the data is supplied from an original hand collected survey and turkish governmental institutions such as the central bank of the republic of turkey cbrt and the turkish statistical institute turkstat that is used for a possible scenario to show how these systems can become an extensive investment and financed in the city the most significant finding is purchasing a fpsc device which is a rational and profitable investment decision for households in the economic conditions of eskisehir this type of energy system has certain costs including installation credit and annual maintenance costs however after they have been set up fpsc systems yield many ecological advantages that more than offset the associated costs such as fuel savings over the long term and exemptions from tax payments that apply to other types of fuels these advantages benefit both the environment on a global scale and the region in which the system is constructed therefore the global and local economy can improve its structure by utilizing fpscs

recent incentives for renewable energy in turkey abstract recently the importance of renewable energy sources has increased significantly as climate change has become an important long term threat to global ecosystems and the world economy in the face of increased concern about climate change and high fossil fuel costs together with a reduction in the primary energy sources such as oil natural gas and coal alternative energy sources renewables are increasingly needed to respond to the threat of climate change and growing energy demand in the world recent developments in turkey such as the liberalization of the electricity market and improvements in the renewable legislations have accelerated the growth process and investment opportunities in the field of renewable energy turkey s naturally endowed potential for renewables such as solar geothermal and wind also accompanied these developments and attracted world attention to this market in turkey renewable energy sources have gained great importance in the last decades due to growing energy demand and incentive policies which foster the utilization of renewable energy sources this study aims to explore the availability and potential of renewable energy sources in turkey and discuss the government policies and economic aspects

facing up to trump administration mercantilism the 2018 wto trade policy review of the united states as one of the largest trading economies in the wto system us trade policy is reviewed regularly by wto members informed by a trade policy review tpr report this paper discusses the 2018 tpr of the united states the 14th such review undertaken since the entry into force of the wto in 1995 it is the first review of trade policy under the trump administration while the tpr documents the significant changes in us trade policy it does not engage with the mercantilist vision that motivates trade policy under president trump or the apparent desire to engage in trade wars with its major trading partners the lack of discussion of the existential threat to the liberal trading system implied by the drastic changes to us trade policy reduces the salience of the tpr and makes it unclear exactly what purpose it serves

renewable energy in turkey great potential low but increasing utilization and an empirical analysis on renewable energy growth nexus abstract concerns about the exhaustion of fossil energy sources energy security problems and increasing environmental problems have led policy makers to pay greater attention to renewable energy sources all over the world additionally high current account deficits stemming from energy import dependency make substitution of fossil energy with renewable energy a necessity for turkey although turkey has a great potential in terms of renewable energy it has not begun to utilize this great potential until recent years however turkey has many motives to utilize renewable energy further this paper aims to investigate whether renewable energy consumption raises gdp in turkey for this purpose the paper uses data spanning the period 1990 2015 and employs cointegration and causality tests which can present efficient output in small samples the findings indicate that gdp is not related to renewable energy consumption and there is no causality between gdp and renewable energy consumption in turkey in conclusion the paper argues that these findings may stem from the low share of renewable energy in total energy and turkey needs to utilize renewable energy sources further to i meet energy needs for economic activities ii mitigate environmental problems and iii reduce energy import dependency and current account imbalances

does organic command a premium when the food is already local the emergence of community supported agriculture csa farms has been recognized as a new way for small farms to remain competitive while engaging in their local community through direct marketing in this study we report on first revealed preference valuation of csa attributes using data on share prices and csa characteristics for the summer 2012 growing season using data covering 453 csa farms in michigan new york ohio and pennsylvania we develop a hedonic model based on firm level prices to reveal consumer valuations of csa attributes including various types of organic certification we also test for competition in the csa market using a model of firm entry to evaluate whether firms appear perfectly competitive which is a requirement when using firm level prices in our hedonic analysis our results reveal a price premium of approximately 7 for usda organic certification although this value is heterogeneous across states we find no premium associated with competing certified naturally grown programs finally we find that csa farms exhibit little market power and appear to act competitively even with few market entrants

the gatt and the regulation of trade barrier regime dynamics and functions since the second world war complex and changing sets of norms and rules have governed trade relations among most countries they have largely originated from a unique and accidental international organization the general agreement on tariffs and trade gatt we have labeled these norms rules and decision making mechanisms the gatt regime or global trade barriers regime the importance that gatt members have attached to certain norms has shaped the regime s procedural mechanisms rules and implementation of rules classifying those norms as sovereignty or interdependence norms we posit that the strength or autonomy of the regime can be established by analyzing the prominence of the interdependence norms in the issue area we close by exploring some of the functions of the regime in international trade and political relations

introduction epistemic communities and international policy coordination the growing technical uncertainties and complexities of problems of global concern have made international policy coordination not only increasingly necessary but also increasingly difficult if decision makers are unfamiliar with the technical aspects of a specific problem how do they define state interests and develop viable solutions what factors shape their behavior under conditions of uncertainty what are the origins of international institutions and how can we best study the processes through which international policy coordination and order emerge while a variety of analytic approaches have been used to address the problems of international cooperation the approaches have yielded only fragmentary insights at its core the study of policy coordination among states involves arguments about determinism versus free will and about the ways in which the international system is maintained and transformed among the overlapping topics of debate are whether national behavior is determined or broadly conditioned by system level factors unit level factors or some complex interplay between the two whether state policymakers can identify national interests and behave independently of pressures from the social groups they nominally represent and whether states respond consistently to opportunities to create defend or expand their own wealth and power to enhance collective material benefits or to promote nonmaterial values a related question of

testing restrictions on a model of japanese meat demand tests for quasi separability net substitutability and perfect substitutability are developed and implemented on an almost ideal demand system model of the japanese meat sector the data set satisfies both symmetry and homogeneity there is evidence of net complimentarity between chicken and dairy beef and chicken and pork the tests indicate that japanese wagyu beef is considered a separate commodity to both imported beef and dairy beef the results also indicate that fish can be treated as separable in the japanese meat demand system

the relative effects of demand and supply on output growth and price change this study demonstrates an analytical model for evaluating the relative importance of demand and supply factors in determining output growth and price change empirical analysis of the 1947 80 data shows that for most industry groups demand effects are more dominant in determining output growth whereas supply effects are more dominant in determining price change the conclusion remains the same when the effects of uncontrollable variables such as taste and technology are excluded the study provides useful information for analyzing the effectiveness of demand and supply management policies in affecting output growth and price change introduction recently the stability and validity of the phillips curve and the effectiveness of demand management policies to deal with stagflation have been questioned by many economists evidence has been accumulated e g eckstein 1984 to suggest that variations in aggregate supply price were the predominant influences on the general price level of the u s economy but little is known about whether demand or supply factors were more dominant in determining economic growth studies on the relative importance of demand and supply factors at the industry level have been very few but the recent studies by houthakker 1979 and 1981 suggested the importance of supply shifts and or economies of

elasticities in aids models in the literature a variety of approaches have been used to calculate demand elasticities in almost ideal demand system aids models of demand it is common to estimate the linear approximate almost ideal demand system la aids instead of the aids when the la aids is estimated all of the previously reported approaches to compute elasticities are theoretically incorrect this paper presents correct formulas for la aids elasticities and illustrates the potential errors from using incorrect computing the almost ideal demand system aids of deaton and muellbauer 1980a b has become popular in recent years anderson and blundell blanciforti and green 1983a b blanciforti green and king chalfant eales and unnevehr fujii khaled and mak fulponi heien and willett murray parsons ray a variety of approaches to computing elasticities has been used and some of the approaches may lead to significant errors this paper clarifies the differences between alternative approaches to estimating demand elasticities in aids models

foreign subsidization and excess capacity abstract the u s steel industry has long held that foreign subsidization and excess capacity has led to its long run demise yet no one has formally examined this hypothesis in this paper we incorporate foreign subsidization considerations into a model based on staiger and wolak s 1992 cyclical dumping framework and illustrate testable implications of both cyclical excess capacity and structural excess capacity stemming from foreign subsidization we then use detailed product and foreign country level data on steel exports to the u s market to estimate these excess capacity effects while the full sample results provide evidence of both cyclical and structural excess capacity effects for exports to the u s market these effects are confined to such a narrow range of country product combinations that it is unlikely that such effects were a significant factor in the fortunes of u s steel firms over the past decades

accounting for changes in tastes health concerns are thought by many to have shifted consumption away from red meats though econometric evidence is mixed testing for structural change is difficult especially when one time series is used for both estimating demand equations and testing their stability specification errors may suggest a shift where none has occurred using nonparametric demand analysis we find that meat consumption patterns in the united states and australia can be explained using only relative prices and expenditures only imposing particular functional forms can reverse the conclusion suggesting that specification errors in econometric demand studies can account for findings of taste changes

willingness to pay for natural organic and conventional foods the effects of information and meaningful labels vague food labels and distorted product claims have persisted in the natural food industry while organic claims can be certified by the u s department of agriculture usda using experimental methods and a sample of randomly selected subjects we test food label and information treatment effects on subjects willingness to pay wtp for organic natural and conventional foods random nth price auctions are used to elicit wtp after subjects received one of five randomly assigned information treatments we find large information effects including asymmetric cross market effects for natural and organic foods perhaps surprising is that organic premiums increase in response to subjects seeing the natural foods industry s perspective on its products demographics effects are also important the results have practical implications for natural and organic food marketing and valuing products where there are vague claims about their attributes