short run price and income elasticity of gasoline demand evidence from lebanon abstract we empirically estimate the demand for gasoline in the presence of multiple shifts caused by structural breaks using monthly data from lebanon covering the period 2000 m1 2010 m12 consistent with most studies in the literature our study reports that gasoline is price and income inelastic in the short run however when a single and multiple breaks are introduced the consumers responsiveness to gasoline price and income increase since both price and income elasticity are sensitive to structural changes a policy that pleads for a flat excise tax may not be optimal with respect to either the cyclical pattern of government revenues or the internalization of international environment standards

elements for the development of public policies in the residential sector of mexico based in the energy reform and the energy transition law abstract mexico has entered in an important dynamic of structural changes in the energy area proof of this it is the energy reform 2013 and the energy transition law published the last december 24th 2015 thus it is important to carry out studies of the impacts of future politics in the consumption of the population so this study estimate an energy demand system using microdata collected from 97 817 households in a national households income and expenditure survey enigh acronyms in spanish encuesta nacional de ingresos y gastos de los hogares in the 20 years period from 1994 to 2014 the magnitudes of all the fuels are smaller than one indicating that electricity lpg gasoline and public transport are normal goods while lpg is the most inelastic energy source the geographic factor shows that households in the north of mexico tend to consume more gasoline whereas in the south of the country the lowest share of lpg expenditure is reported the rigorous evaluation of energy demanded in households will help policy makers to put forward more efficient reforms

the quality effect does financial liberalization improve the allocation of capital abstract we document evidence of a quality effect of financial liberalization on allocative efficiency as measured by dispersion in tobin s q across firms we predict that financial liberalization by equalizing access to credit is associated with reduced variation in expected marginal returns we test this prediction using a new financial liberalization index and firm level data for five emerging markets india jordan korea malaysia and thailand we find robust evidence that financial liberalization rather than financial deepening is associated with improved allocative efficiency

on electricity consumption and economic growth in china abstract the invention and application of the electric power technology triggered the second industrial revolution in human history which marked the human society entered the age of electricity electricity provides the sustainable power for economic and social development with the rapid development of economy the electricity consumption is also increasing the increase of electricity consumption has further promoted the progress of the industrial economy in order to achieve the goal of improving the level of economic development while reducing energy consumption it is necessary to reveal the relationship between electricity consumption and economic growth this study is an extensive overview of the literature surrounding this topic in this paper we focus on the relationship between electricity consumption and economic growth in china we first analyze the general situation of china s electricity consumption and economic development then we explore the relationship between china s electricity consumption and economic growth from three dimensions i e the time dimension the regional dimension and the industrial dimension finally we study the key issues in the research of the relationship between electricity consumption and economic growth including variable selection model construction and results discussion this work suggests that the nature of the nexus in china should and can be explored from a wider perspective by developing a suitable integrated methodological framework

income diversification and risk does ownership matter an empirical examination of indian banks abstract we examine the impact of ownership on income diversification and risk for indian banks over the period 2001 2009 we investigate both the determinants of non interest income and the impact of diversification on various profitability and insolvency risk measures for public sector private domestic and foreign banks we document that ownership does matter in the pursuit of non interest income relative to private domestic banks public sector banks earn significantly less fee income while foreign banks report higher fee income public sector banks with higher levels of governmental ownership are significantly less likely to pursue non interest income sources fee based income significantly reduces risk measured by profitability variables for public sector banks default risk is also reduced for these banks from a regulatory perspective it appears that diversification benefits india s public sector banks our research has implications for the changes in the risk profile for banks in emerging banking markets pursuing non interest revenue sources

the dynamics of energy policy in lebanon when research politics and policy fail to intersect this paper is an exploratory study on energy policymaking in lebanon aiming at investigating the contributing factors to the absence of evidence informed policy by analyzing the relation between energy related research and policy it uses a qualitative approach in which two complementary types of data sources are employed data was mainly obtained from in depth semi structured interviews conducted with 40 key stakeholders the data was further enhanced by an extensive review of related documents available in the public domain as well as research related activities data were analyzed using iterative thematic content analysis which findings served to illustrate the theoretical perspectives in the relevant prevailing literature on linking policy and research this paper suggests that the politicization of energy policy the nature of the generated evidence and the lack of communication of evidence among policy actors as well as the weak and non institutionalized links between researchers and policymakers have posed as an obstacle to an effective efficient and evidence based policy there is a dearth of academic studies that have investigated this issue from a policy perspective the analysis lays the foundation for much needed future studies on the country s energy policy by identifying the participants mapping out the process and providing policy recommendations

econometric modeling of electricity consumption in post war lebanon this paper applies econometric models to investigate determinants of electrical energy consumption in post war lebanon the impact of the gross domestic product gdp proxied by total imports ti and degree days dd on electricity consumption is investigated over different time spans covering the period from 1993 to 1997 the time spans are chosen according to the rationing level of electricity supply for the 1993 1994 time span ti is found to be a significant determinant of energy consumption whereas dd has a negative correlation this inconsistency might be attributed to an extensive rationing policy followed during this period for the 1995 1997 time span which includes reduced rationing period 1995 all electrical energy consumption determinants are found to be significant at the 5 significance level analysis results for the rationing free 1996 1997 time span also show the significance of ti and dd at the 5 level furthermore cointegration analysis for the 1995 1997 and 1996 1997 subsets reveals the existence of a long run relationship between all variables in addition error correction models for both subsets are developed to predict short run dynamics finally statistical performance measures such as mean square error mean average deviation and mean average percentage error are presented for all models

demand for gasoline in kuwait an empirical analysis using cointegration techniques abstract this paper estimates the demand for gasoline in kuwait for the period 1970 1989 using a cointegration and error correction model ecm it is found that gasoline demand is inelastic with respect to price in the short and long run and while it is elastic in the long run gasoline demand is inelastic with respect to income in the short run this suggests that gasoline demand response to income changes is higher in the long run than in the short run furthermore gasoline consumption adjusts towards its long run level with about 52 of the adjustment occurring in the first year

the demand for residential electricity in south africa abstract this paper examines the residential demand for electricity in south africa as a function of real gross domestic product per capita and the price of electricity during the period 1978 2005 we make use of the bounds testing approach to cointegration within an autoregressive distributed framework suggested by pesaran et al 2001 bounds testing approaches to the analysis of level relationships journal of applied econometrics 16 3 289 326 following the literature we use a linear double logarithmic form using income and price as independent variables in the empirical analysis in the long run we find that income is the main determinant of electricity demand while electricity price is insignificant

the effects of foreign strategic investors on business models in china s commercial banks does ownership structure matter abstractintroducing foreign strategic investors fsis is a vital step in the ownership reforms of china s banking industry using china s data from 1995 to 2014 we employ propensity score matching and difference in differences approaches to investigate the effects of fsis on the business models of chinese banks including income structure and funding structure we find that fsis significantly influence income structure the bank s non interest income nii share significantly rises after introducing fsis the higher ownership shares of fsis are associated with the higher nii share and the nii share has been increased when fsis assign directors or senior managers to chinese banks we also report that the effects of fsis on income structure are weaker in state owned banks than those in other banks and ownership concentration weakens the links between fsis and income structure finally this article shows that fsis have no significant influence on funding structure these findings will be informative and

bank ownership and performance does politics matter this paper uses a new dataset to reassess the relationship between bank ownership and bank performance providing separate estimations for developing and industrial countries it finds that state owned banks located in developing countries tend to have lower profitability and higher costs than their private counterparts and that the opposite is true for foreign owned banks the paper finds no strong correlation between ownership and performance for banks located in industrial countries next in order to test whether the differential in performance between public and private banks is driven by political considerations the paper checks whether this differential widens during election years it finds strong support for this hypothesis

foreign bank diversification and efficiency prior to and during the financial crisis does one business model fit all diversified and focused business models may affect foreign bank efficiency differently we investigate whether there is an optimal business model along three business dimensions assets funding and income and which business model is optimal for foreign banks in a financial center we apply recently developed non parametric methods with bootstrap to estimate group efficiency to test for differences across groups and finally to analyze the link between bank efficiency and diversification measures using luxembourg bank data that include the financial crisis we find that there is no unique business model the most efficient business model appears to be a focused asset funding and income strategy banks organizational forms play a role branches may be preferable to subsidiaries prior to the financial crisis whereas bank subsidiaries perform better than branches during the financial crisis however branches diversified in assets funding and income exploit efficiency advantages during the financial crisis

price and variety in the spokes model the spokes model of nonlocalized spatial competition provides a new analytical tool for dierentiated oligopoly and a representation of spatial monopolistic competition an increase in the number of rms leads to lower equilibrium prices when consumers have relatively high product valuations but surprisingly to higher equilibrium prices for in termediate consumer valuations new entry alters consumer and social welfare through price market expansion and matching eects with free entry the market may pro vide too many or too few varieties from a social welfare perspective and the equilibrium price remains above marginal cost even when the number of rms is arbitrarily large

licensing policy and technology adoption in standard setting organizations the standard setting organizations decisions on licensing policy and standard s technological specification and the ensuing implications for social welfare are analyzed the author finds the conditions under which a licensing rule that grants monopoly power to the licensors whose technology is adopted in the standard can be employed by the members of the consortium ex post licensing moreover it is shown that the adoption of ex post licensing might lead to the inefficient exclusion of an efficient stand alone licensor finally the author discusses the conditions under which a policy of ex ante licensing can be less efficient than ex post licensing jel k21 l15 l24 l42

renewable energy for sustainable electrical energy system in india abstract present trends of electrical energy supply and demand are not sustainable because of the huge gap between demand and supply in foreseeable future in india the path towards sustainability is exploitation of energy conservation and aggressive use of renewable energy systems potential of renewable energy technologies that can be effectively harnessed would depend on future technology developments and breakthrough in cost reduction this requires adequate policy guidelines and interventions in the indian power sector detailed markal simulations for power sector in india show that full exploitation of energy conservation potential and an aggressive implementation of renewable energy technologies lead to sustainable development coal and other fossil fuel gas and oil allocations stagnated after the year 2015 and remain constant up to 2040 after the year 2040 the requirement for coal and gas goes down and carbon emissions decrease steeply by the year 2045 25 electrical energy can be supplied by renewable energy and the co2 emissions can be reduced by 72 as compared to the base case scenario

the non existence of pairwise proof equilibrium abstract private bilateral contracting between a supplier and competing customers admits multiple equilibria we show that requiring equilibrium to be pairwise proof immune to bilateral deviations by the supplier and any customer can imply non existence of equilibrium in normal environments

residential electricity demand dynamics in turkey abstract this article provides fresh empirical evidences for the income and price elasticies of the residential energy demand both in the short run and long run for turkey over the period 1968 2005 using the bounds testing procedure to cointegration the computed elasticities of income and price are consistent with the previous studies and as expected the long run elasticities are greater than the short run elasticities an augmented form of granger causality analysis is implemented among residential electricity income price and urbanization in the long run causality runs interactively through the error correction term from income price and urbanization to residential energy but the short run causality tests are inconclusive the parameter stability of the short run as well as long run coefficients in the residential energy demand function are tested the results of these tests display a stable pattern

choosing the competition and patent licensing this article examines licensing as a means of choosing the competitors which a patentee monopolist will face in the period after the patent expires the queue of entrants consists of two firms which differ in their relative strengths as competitors for example by size or level of marginal cost by structuring the industry to be composed of weak competitors the incumbent is able to prolong its dominant position in the industry after the patent expires examples are presented in which the evidence suggests that choosing the competition was an important motivation of the licensor s behavior

the diversification and financial performance of us credit unions abstract for us credit unions revenue from non interest sources has increased significantly in recent years we investigate the impact of revenue diversification on financial performance for the period 1993 2004 the impact of a change in strategy that alters the share of non interest income is decomposed into a direct exposure effect reflecting the difference between interest and non interest bearing activities and an indirect exposure effect which reflects the effect of the institution s own degree of diversification on both risk adjusted and unadjusted returns measures a positive direct exposure effect is outweighed by a negative indirect exposure effect for all but the largest credit unions this may imply that similar diversification strategies are not appropriate for large and small credit unions small credit unions should eschew diversification and continue to operate as simple savings and loan institutions while large credit unions should be encouraged to exploit new product opportunities around their core expertise

free entry and social inefficiency our goal is to provide a simple yet general exposition of the conditions under which the number of entrants in a free entry equilibrium is excessive insufficient or optimal our analysis compares the number of firms that enter a market when there is free entry with the number that would be desired by a social planner who is unable to control the behavior of firms once they are in the market that is we consider the second best problem of choosing the welfare maximizing number of firms while we take as given their noncompetitive behavior after entry we demonstrate that the crucial conditions for establishing the presence of an entry bias can be stated quite simply in terms of the outcome of the postentry game played by entrants in contrast to previous work we do not need to model this postentry game explicitly

bank ownership privatization and performance evidence from a transition country abstract this paper combines the static effect of ownership and the dynamic effect of privatization on bank performance in china over 1995 2010 reporting a significantly higher performance by private intermediaries joint stock commercial banks and city commercial banks relative to state owned commercial banks however publicly traded banks subject to multiple monitoring and vetting in capital markets perform better regardless of ownership status the privatization of banks has improved performance with respect to revenue inflow and efficiency gains in the short or long run initial public offerings the positive long run effect is more relevant and significant for banking institutions with minority foreign ownership moreover this paper innovatively estimates interest income efficiency and non interest income efficiency at the same time the results suggest that chinese banks are much more efficient in generating interest income than raising non interest revenue although the latter aspect has improved significantly during the sample period

privatization matters bank efficiency in transition countries abstract to investigate the impact of bank privatization in transition countries we take the largest banks in six relatively advanced countries namely bulgaria the czech republic croatia hungary poland and romania income and balance sheet characteristics and efficiency measures computed from stochastic frontiers are compared across four bank ownership types our empirical results support the hypotheses that foreign owned banks are most efficient and government owned banks are least efficient in addition the importance of attracting a strategic foreign owner in the privatization process is confirmed however counter to the conjecture that foreign banks cherry pick the most profitable opportunities we find that domestic banks have a local advantage in pursuing fee for service business finally we show that both the method and the timing of privatization matter to performance specifically voucher privatization does not lead to increased efficiency and early privatized banks are more efficient than later privatized banks even though we find no evidence of a selection effect

energy models for demand forecasting a review abstract energy is vital for sustainable development of any nation be it social economic or environment in the past decade energy consumption has increased exponentially globally energy management is crucial for the future economic prosperity and environmental security energy is linked to industrial production agricultural output health access to water population education quality of life etc energy demand management is required for proper allocation of the available resources during the last decade several new techniques are being used for energy demand management to accurately predict the future energy needs in this paper an attempt is made to review the various energy demand forecasting models traditional methods such as time series regression econometric arima as well as soft computing techniques such as fuzzy logic genetic algorithm and neural networks are being extensively used for demand side management support vector regression ant colony and particle swarm optimization are new techniques being adopted for energy demand forecasting bottom up models such as markal and leap are also being used at the national and regional level for energy demand management

modelling energy demand of developing countries are the specific features adequately captured abstract this paper critically reviews existing energy demand forecasting methodologies highlighting the methodological diversities and developments over the past four decades in order to investigate whether the existing energy demand models are appropriate for capturing the specific features of developing countries the study finds that two types of approaches econometric and end use accounting are commonly used in the existing energy demand models although energy demand models have greatly evolved since the early seventies key issues such as the poor rich and urban rural divides traditional energy resources and differentiation between commercial and non commercial energy commodities are often poorly reflected in these models while the end use energy accounting models with detailed sectoral representations produce more realistic projections as compared to the econometric models they still suffer from huge data deficiencies especially in developing countries development and maintenance of more detailed energy databases further development of models to better reflect developing country context and institutionalizing the modelling capacity in developing countries are the key requirements for energy demand modelling to deliver richer and more reliable input to policy formulation in developing countries

bank reforms foreign ownership and financial stability abstract numerous studies have focused on foreign ownership of banks but instead of linkages to financial stability they typically analyzed other issues and used country level data this article fills the gap in the literature by applying the gmm techniques on dynamic panels using bank level data for asian countries to investigate the impact of foreign ownership on financial stability as well as whether the relation between foreign ownership and stability changes under different conditions of bank reforms in the host country specifically we reach five conclusions first the existence of the home field advantage hypothesis is supported nevertheless when considering the effects of bank reforms the global advantage hypothesis holds second an inverse u shaped relation between foreign ownership and stability is supported third a higher degree of credit control liberalization mitigates the negative effect of foreign ownership on stability fourth liberalization of interest rate control and banking supervision do enhance stability fifth and finally we confirm a significantly negative relation between an explicit deposit and stability

modelling electricity demand in ghana revisited the role of policy regime changes as policy regime changes demand elasticities are unlikely to be constant since individuals change how they form their expectations and this will change the estimated decision rules in this paper the time varying nature of electricity demand elasticities prior to and post the economic reform period in ghana is analysed using the fm ols three different sample periods pre reform post reform and full period was used in the analysis the result from the full sample period revealed that in the long run electricity demand is significantly affected by industry efficiency industry value added and real per capita gdp urbanization rate however has no significant effect the pre reform estimate showed lower income output and urbanization elasticities but higher industry energy efficiency elasticity relative to the post reform period this suggests that technological change in the pre reform period has been energy saving whilst technological change in the post reform period has been energy consuming the result further showed evidence of changing structure of the economy from the more energy intensive sector to the less energy intensive sector after the reform government should renew her effort in promoting energy saving technologies in the industrial sector and adjust the industrial structure to encourage the expansion of low energy intensive industries or high technology efficient industries

deposit insurance coverage ownership and banks risk taking in emerging markets abstract we ask how deposit insurance systems and ownership of banks affect the degree of market discipline on banks risk taking market discipline is determined by the extent of explicit deposit insurance as well as by the credibility of non insurance of groups of depositors and other creditors furthermore market discipline depends on the ownership structure of banks and the responsiveness of bank managers to market incentives an expected u shaped relationship between explicit deposit insurance coverage and banks risk taking is influenced by country specific institutional factors including bank ownership we analyze specifically how government ownership foreign ownership and shareholder rights affect the disciplinary effect of partial deposit insurance systems in a cross section analysis of industrial and emerging market economies as well as in emerging markets alone the coverage that maximizes market discipline depends on country specific characteristics of bank governance this risk minimizing deposit insurance coverage is compared to the actual coverage in a group of countries in emerging markets in eastern europe and asia

the effects of reform on china s bank structure and performance abstract this paper investigates the relationship between market structure and performance in china s banking system from 1985 to 2002 a period when this sector was subject to gradual but notable reform using panel data estimation techniques both the market power and efficient structure hypotheses are tested in addition the model is extended to consider issues such as the impact of bank size ownership and whether the big four banks enjoy a quiet life on average x efficiency declined significantly and most banks were operating below scale efficient levels estimation of the structure performance models lends some support to the relative market power hypothesis in the early period the reforms had little impact on the structure of china s banking sector though the joint stock banks became relatively more x efficient there was no evidence to support the quiet life hypothesis probably because strict interest rate controls prevented the state banks from earning monopoly profits thus the ongoing liberalisation of interest rates should be accompanied by reduced concentration overall to improve competitive structure new policies should be directed at encouraging market entry and increasing the market share of the most efficient banks

fee versus royalty licensing in a cournot duopoly model abstract this paper finds that royalty licensing can be superior to fixed fee licensing for the patent holding firm when the cost reducing innovation is non drastic the reason for this result is that the patent holding firm enjoys a cost advantage over the licensee under royalty licensing while the two firms compete on equal footing under fixed fee licensing

double marginalization and cost pass through weyl fabinger and cowan meet spengler and bresnahan reiss consider the classical double marginalization problem of single product successive monopolies we show that the ratio of the cost pass through at the final sale relative to that at the wholesale level is characterized by the curvature of inverse demand in the final market we also apply cowan s 2012 method which utilizes the idea of pass through in an analysis of third degree price discrimination to compare consumer surplus under vertical integration and separation

the role of demandable debt in structuring optimal banking arrangements demandable debt finance by banks warrants explanation because it entails costs of bank suspension liquidation and idle reserve holdings an explanation is developed in which demandable debt provides incentive compatible intermediation where the banker has comparative advantage in allocating investment funds but may act against the interests of uninformed depositors demandable debt attracts funds by giving depositors an option to force liquidation its usefulness in transacting follows from information sharing between monitors and nonmonitors copyright 1991 by american economic association

electricity consumption in g7 countries a panel cointegration analysis of residential demand elasticities this article applies recently developed panel unit root and panel cointegration techniques to estimate the long run and short run income and price elasticities for residential demand for electricity in g7 countries the panel results indicate that in the long run residential demand for electricity is price elastic and income inelastic the study concludes that from an environmental perspective there is potential to use pricing policies in the g7 countries to curtail residential electricity demand and thus curb carbon emissions in the long run

abuse of dominance and licensing of intellectual property patent thickets layers of licenses a firm needs to be able to offer products that embody technologies owned by multiple firms and licensing policies have drawn increasing scrutiny from policy makers patent thickets involve complementary products which gives rise to double marginalization the so called royalty stacking problem and has the potential to retard diffusion of new technologies and reduce consumer welfare this paper examines the impact of licensing policies of one or more upstream owners essential intellectual property ip on the downstream firms that require access to that ip the terms under which downstream firms can access this ip affects entry decisions product diversity prices and welfare we consider both the case in which a single party controls the essential ip and the case in which different parties control complementary pieces of essential ip we compare the outcome of several alternative standard licensing arrangements such as flat rate access fees royalty percentages per unit fees patent pools and cross licensing arrangements with or without vertical integration we first consider the case where there is a single upstream owner of essential ip increasing the number of licenses enhances product variety which creates added value but it also intensifies downstream competition which dissipates profits we derive conditions under which the upstream ip monopoly will then want to provide an excessive or insufficient number of licenses relative to the number that maximizes consumer surplus or social welfare when there are multiple owners of essential ip royalty stacking can reduce the number of the downstream licensees but also the downstream equilibrium prices the consumers face the paper derives conditions determining whether this reduction in downstream price and variety is beneficial to consumers or society finally the paper explores the impact of alternative licensing policies with fixed license fees or royalties expressed as a percentage of the price an upstream ip owner cannot control the intensity of downstream competition in contrast volume based license fees i e per unit access fees do permit an upstream owner to control downstream competition and to replicate the outcome of complete integration the paper also shows that vertical integration can have little impact on downstream competition and licensing terms when ip owners charge fixed or volume based access fees

electricity demand and conservation potential in the chinese nonmetallic mineral products industry newhuadu business school research fund ministry of education foundation 10jzd0018 10jbg013 china sustainable energy program g 1103 13921 national social science foundation 09zd050

fee versus royalty reconsidered for an outsider innovator in a cournot oligopoly royalty licensing could be superior to both fixed fee and auction the result depends on a simple fact that has been overlooked in the existing literature namely the number of licenses can take only integer values

vertical mergers and market foreclosure ythe model in this paper illustrates three effects of vertical mergers when both stages are oligopolistic and vertically integrated and unintegrated producers coexist first the merging firm increases its final good output second the resulting backward shift in the residual demand curve facing unintegrated final good producers ylowers their demand for the intermediate good third the merged firm withdraws from the intermediate good market the increased concentration pushes the intermediate good price upward which effect dominates depends on market structure under some conditions a vertical merger causes the price of the final good to increase

welfare reducing licensing abstract in this paper we characterize situations where licensing a cost reducing innovation to a rival firm using two part tariff contracts a fixed fee plus a linear per unit of output royalty reduces social welfare we show that it occurs if i the firms compete in prices ii the innovation is large enough but not drastic and iii the goods are close enough substitutes moreover we show that regardless of the type of competition first the optimal contract always includes a positive royalty and second even drastic innovations are licensed whenever the goods are not homogeneous

fees versus royalties and the private value of a patent we compare how much profit an owner of a patented cost reducing invention can realize by licensing it to an oligopolistic industry producing a homogeneous product by means of a fixed fee or a per unit royalty our analysis is conducted in terms of a noncooperative game involving n 1 players the inventor and the n firms in this game the inventor acts as a stackelberg leader and it has a unique subgame perfect equilibrium in pure strategies it is shown that licensing by means of a fixed fee is superior to licensing by means of a royalty for both the inventor and consumers only a drastic innovation is licensed to a single producer

on licensing policies in bertrand competition abstract three licensing policies the auction the fee and the royalty are studied in a bertrand type duopoly with differentiated goods the analysis is conducted in terms of a multistage noncooperative game involving an external patentee and two firms each producing a differentiated good in bertrand price competition a principal finding is that for a patentee the royalty may be superior to the other two policies journal of economic literature classification numbers 026 611 621

how to license intangible property we examine the optimal licensing strategy of a research lab selling to firms who are product market competitors we consider an independent lab as well as a research joint venture we show that 1 demands are interdependent and hence the standard price mechanism is not the profit maximizing licensing strategy 2 the seller s incentives to develop the innovation may be excessive 3 the seller s incentives to disseminate the innovation typically are too low 4 larger ventures are less likely to develop the innovation and more likely to restrict its dissemination in those cases where development occurs and 5 a downstream firm that is not a member of the research venture is worse off as a result of the innovation

licensing a new product with non linear contracts this paper looks at a situation where a licensor owns a patent on a technology that allows the production of a new good the licensor seeks to license its innovation to a set of producers that differ according to their marginal cost of producing an existing good we show that the licensor is able to obtain the profit a monopolist would achieve by producing the new good the equilibrium licensing contract specifies both a fixed fee and a royalty scheme based on the production of a licensee le memoire examine la situation ou un detenteur de brevet sur une technologie qui permet de produire un nouveau bien cherche a ceder une autorisation d exploiter cette innovation a un ensemble de producteurs qui ont differents couts marginaux de production d un bien existant on montre que le detenteur de brevet est capable d obtenir le profit qu un monopoleur obtiendrait en produisant le nouveau bien le contrat de licence d equilibre specifie a la fois un paiement forfaitaire et un arrangement de royautes sur la base du volume de production de l exploitant

bank income structure and risk an empirical analysis of european banks the purpose of this paper is to investigate the relationship between bank risk and product diversification in the changing structure of the european banking industry based on a broad set of european banks for the period 1996 2002 our study first shows that banks expanding into non interest income activities present higher risk and higher insolvency risk than banks which mainly supply loans however considering size effects and splitting non interest activities into both trading activities and commission and fee activities we show that the positive link with risk is mostly accurate for small banks and essentially driven by commission and fee activities a higher share of trading activities is never associated with higher risk and for small banks it implies in some cases lower asset and default risks

what precludes the development of noninterest activities in chinese commercial banks from the perspective of the price of interest activities noninterest activities of chinese commercial banks remain sluggish this article examines the price of interest activities and noninterest activities of chinese commercial banks over 2000 2010 based on ols and 2sls regression we find that the price of interest activities has a significant negative effect on the noninterest activities it appears that controlled interest rate is the main hindrance of the development of noninterest activities and the result is consistent with political view we also find that among state owned commercial banks and nonstate owned ones the relationships of interest activities and noninterest activities are differential the link between the price of interest activities and noninterest activities in state owned commercial banks is stronger than that in nonstate owned commercial banks that is the result of different government intervention degree

energy demand substitution and environmental taxation an econometric analysis of eight subsectors of the danish economy abstract this research contains an econometric analysis of energy demand in trade and industry which allows for substitution between electricity and other energy carriers when relative prices change the presence of substitution suggests that taxation can be a means of changing the energy input mix in a more environmental friendly direction for eight subsectors of the danish economy time series 1966 2011 are modeled by means of partial cointegrated vars long run demand relations are identified for all subsectors and robust price elasticities are supported in five cases the results are used in a small impulse response experiment which suggests a potential for taxation to induce substitution of electricity for fossil based energy

the relationship between net interest margin and noninterest income using a system estimation approach abstract this paper examines the determinants of bank net interest margin nim and non traditional banking activities nii a system estimation approach is employed to control for the simultaneity between nim and nii for commercial banks in a group of 28 financially liberalized countries during the period between 1997 and 2004 we find a statistically significant negative relationship between nim and nii for the period between 1997 and 2002 a generally positive but statistically insignificant association between nim and nii is found for the subsequent period 2003 2004 banks increasing involvement in non traditional activities is negatively correlated with risk adjusted profitability measures in the former subperiod suggesting no obvious diversification benefits however the share of noninterest income is positively related to the return on assets roa and the return on equity roe for the latter subsample

piracy imitation and optimal copyright policy this article presents a model of optimal copyright policy which incorporates several realistic features which have hitherto been largely ignored first although copyright is understood as a means of encouraging the creation of new works the optimal number of such works is generally not considered second copyright infringement encompasses two different activities subsumed under the same legal umbrella one might either pirate i e illegally copy a work or one might create a new work which is a close imitation of an existing one the mutual recognition of these two features leads to some surprising conclusions relevant to current debate over copyright reform in particular while strong piracy protection encourages overproduction of intellectual property enhanced protection against imitation can mitigate the associated inefficiencies benefitting society

the residential demand for electricity in australia an application of the bounds testing approach to cointegration this paper reports estimates of the long and short run elasticities of residential demand for electricity in australia using the bounds testing procedure to cointegration within an autoregressive distributive lag framework in the long run we find that income and own price are the most important determinants of residential electricity demand while temperature is significant some of the time and gas prices are insignificant our estimates of long run income elasticity and price elasticity of demand are consistent with previous studies although they are towards the lower end of existing estimates as expected the short run elasticities are much smaller than the long run elasticities and the coefficients on the error correction coefficients are small consistent with the fact that in the short run energy appliances are fixed

equilibrium vertical foreclosure reply in ordover saloner and salop 1990 hereafter oss we showed that a downstream duopolist may have an incentive to backward integrate in order to foreclose its downstream rival from a source of upstream supply as a result of the vertical integration the downstream rival s input price increases giving the integrating firm a competitive advantage in the downstream market moreover in equilibrium the foreclosed downstream rival does not find it profitable to negate these effects by integrating itself oss considers a four stage game involving two upstream firms ul and u2 and two downstream firms dl and d2 in the first stage the downstream firms can bid to acquire ul if there is an acquisition say dl acquires ul to form f1 upstream input prices are set in the second stage in the third stage knowing the input prices it faces d2 can attempt to acquire u2 finally in the fourth stage dl and d2 compete a la bertrand with differentiated products in his comment david reiffen 1992 makes three distinct points first he notes that once dl has acquired ul the equilibrium of the subsequent subgame depends critically on how upstream prices are set in the second stage he argues that our results depend on the ability of fl to commit to a high upstream price this criticism previously has been made by oliver hart and jean tirole 1990 we show below that the results in oss do not depend on the ability of fl to commit instead our main result stems from the fact that vertical integration changes the firm s incentives to engage in price cutting in the input market the notion that vertically integrated firms behave differently from unintegrated ones in supplying inputs to downstream rivals would strike a businessperson if not an economist as common sense 1 we show that there is theoretical merit to that common sense view second reiffen argues that the game considered by oss is similar to a game in which there is no vertical integration but rather where a nonintegrated dl has a first mover advantage in the downstream market in such a game dl benefits from the ability to commit to the price that its stackelberg leadership position gives it reiffen considers this to be additional evidence in support of the claim that oss depends critically on fl s ability to commit not on vertical integration we explain why the mechanism by which dl is able to raise its profits in the sequential one shot game considered by reiffen is conceptually quite different from the mechanism by which dl profits from vertical integration in oss third reiffen argues that our results depend on there being only two upstream firms this is correct in the symmetric bertrand model analyzed however as we discuss below our results do obtain as long as the upstream price is decreasing in the number of firms as occurs in many oligopoly models particularly when costs vary across firms the next section summarizes the conceptual problems pertaining to upstream pricing these problems are resolved in section ii by means of simple and natural price ordover department of economics new york university 269 mercer st 7th floor new york ny 10003 saloner graduate school of business stanford university stanford ca 94305 salop georgetown university law center 600 new jersey avenue nw washington dc 20001 we have benefited greatly from several discussions with faruk gul research support from the national science foundation grant 8813943 iri the sloan foundation and the c v starr center for applied economics at nyu is gratefully acknowledged for example the japan u s strategic impediments initiative is predicated on the proposition that the loosely linked japanese firms that form the various keiretsu do discriminate against nonaffiliated firms