some macroeconomic implications of alternative compensation systems a basic theme of this paper is the idea that some structural reform of employee compensation arrangements is necessary to make reasonable price stability compatible with reasonably full employment in this view even the best designed macroeconomic policies are much too aggregative to get at the heart of the stagflation problem the ultimate solution involves going inside the workings of a modern capitalist economy and correcting the underlying structural flaw directly on the level of the individual firm stagflation represents an especially intractable policy dilemma for macroeconomics without a decisive tendency of the economic system to remain near full employment there is a strong prima facie case for fighting recessions by exogenously stimulating aggregate demand but the usual keynesian expansionary policies tend to impart an inflationary inertia that is difficult to choke off and of course the basic strategy for fighting inflation is to cool down the economy by restrictive monetary and fiscal policy thereby increasing unemployment and closing the viscous circle because the practical macroeconomic policies for dealing with unemployment and inflation are so diametrically opposed stagflation is a pervasive structural problem when for whatever reason there is basically an unfavourable short run tradeoff between unemployment and inflation economic policy tends to vacillate between expansion of demand to fight unemployment and restriction of demand to fight inflation polarising the electorate and distracting society from dealing effectively with its underlying real economic problems even the difficulty of attaining external balance in foreign accounts is largely a spillover into the international payments arena of an inability to achieve an acceptable internal balance between full employment and price stability this paper takes what might be called a comparative systems approach to the problem of stagflation at the heart of modern industrial capitalism is an incredibly complicated system of overlapping monopolistic competitors 2 a starting point for the paper is the realisation that the coordination difficulty which can cause some systems to suffer involuntary unemployment is not inherent in laissez faire private enterprise per se it is closely tied to one particular property of a conventional wage payment system namely compensation of each firm s employees is stuck to an outside numeraire whether money or a cost of

testing dependence between gdp and tourism s growth rates abstract the main aim of this paper is to link the economic behaviour and statistical properties of gdp and tourism receipts growth rates through modelling the dependence to that end two developed economies such as the united kingdom non tourist oriented and spain tourist oriented and an emerging economy such as croatia tourist oriented are considered as case studies therefore a copula based garch approach is employed to describe the dependence structure between gdp and tourism receipts growth rates in this respect any causality and cointegration between tourism and gdp could justify public policies that promote a more efficient public resource allocation in the tourism industry additionally evidence of dependence between growth rates can justify the extent and direction of these policies results indicate that there is a significant asymmetric and positive dependence between tourism and gdp growth rates for the three countries studied though only for croatia is it time varying over time

tourism as a long run economic growth factor the spanish case this paper examines the role of tourism in the spanish long run economic development the tourism led growth hypothesis is confirmed through cointegration and causality testing the results indicate that at least during the last three decades economic growth in spain has been sensible to persistent expansion of international tourism the increase of this activity has produced multiplier effects over time external competitivity has also been proved in the model to be a fundamental variable for spanish economic growth from the empirical analysis it can be inferred the positive effects on income that government policy in the adequacy of supply as well as in the promotion of tourist activity may bring about

the contribution of tourism development to economic growth in the korean economy abstract this study investigates the causal relations between tourism growth and economic expansion for the korean economy by using engle and granger two stage approach and a bivariate vector autoregression var model two principle results emerge from this study first the results of a cointegration test indicate that there is no long run equilibrium relation between two series second the outcomes of granger causality test imply the one way causal relationship of economic driven tourism growth the hypothesis of tourism led economic growth is not held in the korean economy this consequence is supported by testing the sensitivity of causality test under different lag selections along with the optimal lag

exploring the relationship among co2 emissions real gdp energy consumption and tourism in the eu and candidate countries evidence from panel models robust to heterogeneity and cross sectional dependence a major criticism to the existing energy growth environment literature we notice is the selection of methodology panel estimation techniques that fail to consider both heterogeneity and cross sectional dependence across countries may cause forecasting errors the other concern related to the literature is that only a small number of studies analyze the influence of tourism on co2 emissions even though tourism sector has potential for affecting the environment to fulfill the mentioned gaps in the literature this study analyzes the relationship among carbon emissions real income energy consumption and tourism for a panel of the eu and candidate countries over the period 1995 2011 by using heterogeneous panel estimation techniques with cross sectional dependence results from the cadf and the cips panel unit root tests show that the analyzed variables become stationary at their first differences the lm bootstrap panel cointegration test indicates the presence of a long run relationship among the analyzed variables results from the ols with fixed effects the fmols the dols and the group mean estimator reveal that energy consumption contributes to the level of emissions while real income and tourism mitigate co2 emissions the emirmahmutoglu kose panel granger causality test suggests that there is one way causality running from tourism to carbon emissions and two way causality between co2 emissions and energy consumption and between real income and co2 emissions policy implications are further discussed

energy consumption and gdp in developing countries a cointegrated panel analysis in this paper we re investigate the co movement and the causality relationship between energy consumption and gdp in 18 developing countries using data for the period 1975 to 2001 recently developed tests for the panel unit root heterogeneous panel cointegration and panel based error correction models are employed the empirical results provide clear support of a long run cointegration relationship after allowing for the heterogeneous country effect the long run relationship is estimated using a full modified ols the evidence shows that long run and short run causalities run from energy consumption to gdp but not vice versa this result indicates that energy conservation may harm economic growth in developing countries regardless of being transitory or permanent

welfare effects of expansions in equilibrium models of an electricity market with fuel network the welfare of electricity producers and consumers depends on congestion in the transmission grid generation costs that consist mainly of fuel costs and strategic behavior we formulate a game theoretic model of an oligopolistic electricity market where generation costs are derived from a fuel supply network the game consists of a fuel dispatcher that transports fuels at minimum cost to meet generator demands generators that maximize profit in cournot competition and an independent system operator iso that sets nodal prices to balance electricity supply with linear demand functions we prove the existence of an equilibrium if fuel supplies are unlimited the same equilibria hold in a simplified version of the game in which each generator optimizes its fuel acquisition from the network in some very simple examples under different assumptions about the rationality of generators with respect to iso decisions paradoxical effects on total welfare can occur from expanding either electricity transmission capacity or the transportation capacity of low cost fuel we find some instances in which the paradox occurs only under bounded rationality of the generators others where it occurs only if the generators are fully rational and still others where it occurs to different degrees under the two rationality assumptions

tourism and economic growth nexus revisited a panel causality analysis for the case of the mediterranean region abstract tourism is perceived as an important source of foreign exchange that is used for financing economic growth this study offers a modern approach to tourism led growth and investigates the causal relationship between tourism and economic growth in the european asian and african countries that border the mediterranean sea the study uses panel data for the period 1998 2011 and adopts a panel granger causality analysis developed by dumitrescu and hurlin 2012 to assess the contribution tourism makes to economic growth in each country the results indicate that the direction of causality between tourism and economic growth depends on the country group and tourism indicator furthermore the european countries are better able to generate growth from tourism in the mediterranean region

a multiperiod generalized network flow model of the u s integrated energy system part i model description this paper is the first of a two part paper presenting a multiperiod generalized network flow model of the integrated energy system in the united states part i describes the modeling approach used to evaluate the economic efficiencies of the system wide energy flows from the coal and natural gas suppliers to the electric load centers under the proposed problem formulation fuel supply and electricity demand nodes are connected via a transportation network and the model is solved for the most efficient allocation of quantities and corresponding prices the methodology includes physical economic and environmental aspects that characterize the different networks part ii of this paper provides numerical results that demonstrate the application of the model

stochastic security for operations planning with significant wind power generation in their attempt to cut down on greenhouse gas emissions from electricity generation several countries are committed to install wind power generation up to and beyond the 10 20 penetration mark however the large scale integration of wind power represents a challenge for power system operations planning because wind power 1 cannot be dispatched in the classical sense and 2 its output varies as weather conditions change this warrants the investigation of alternative short term power system operations planning methods capable of better coping with the nature of wind generation while maintaining or even improving the current reliability and economic performance of power systems to this end this paper formulates a short term forward electricity market clearing problem with stochastic security capable of accounting for nondispatchable and variable wind power generation sources the principal benefit of this stochastic operation planning approach is that when compared to a deterministic worst case scenario planning philosophy it allows greater wind power penetration without sacrificing security

profit sharing as a cure for unemployment some doubts abstract in this paper we argue that given that a wage system is preferred to profit sharing in an insider outsider model tax incentives to encourage profit sharing could be dissipated by the use of cosmetic schemes the same may also be true in models in which unions care about employment hence we should be cautious about accepting weitzman s claim that profit sharing will reduce unemployment

investigating the influence of tourism on economic growth and carbon emissions evidence from panel analysis of the european union the study investigates the influence of tourism on economic growth and co2 emissions in the empirical analysis unit root and cointegration tests using panel data of european union countries from 1988 to 2009 are performed to examine the long run equilibrium relationship among tourism co2 emissions economic growth and foreign direct investment fdi results from panel cointegration techniques and fixed effects models indicate that a long run equilibrium relationship exists among these variables furthermore tourism co2 emissions and fdi have high significant positive effect on economic growth economic growth in turn shows a high significant positive impact on co2 emissions while tourism and fdi incur a high significant negative impact on co2 emissions

growth effects of leisure tourism and the level of economic development abstractthis study examines 1 whether leisure tourism can contribute to economic growth and 2 if it does whether its growth effects are constant across levels of economic development leisure tourism differs from business tourism in the causal relation with economic growth in addition the natural and heritage related resources for leisure tourism are limited and not reproducible this notion has a significant implication for the relationship between the growth effects of leisure tourism and the level of economic development thus the current study focuses on leisure tourism and controls for the effects of business tourism as an economy grows the growth effects of leisure tourism are expected to diminish due to a lack of continued productivity improvement in the tourism industry the empirical findings in this research reveal that leisure tourism contributes to economic growth at an early stage of economic development but its contribution becomes weaker as the economy develops

time varying linkages between tourism receipts and economic growth in south africa the causal link between tourism receipts and gdp has recently become a major focus in the tourism economics literature results obtained in recent studies about the causal link appear to be sensitive with respect to the countries analysed sample period and methodology employed considering the sensitivity of the causal link we use rolling window and time varying coefficient estimation methods to analyse the parameter stability and granger causality based on a vector error correction model vecm when applied to south africa for the period 1960 2011 the findings are as follows results from the full sample vecm indicate that there is no granger causality between tourism receipts and gdp while the findings from the time varying coefficients model based on the state space representation show that tourism receipts have positive predictive content for gdp for the entire period with the exception of the period between 1985 and 1990 full sample time varying causality tests show bidirectional strong causal

change in energy related co2 carbon dioxide emissions in portuguese tourism a decomposition analysis from 2000 to 2008 abstract tourism is an activity with great potential in portugal at a time of economic crisis tourism is seen as an opportunity to boost the economy and provide sustainable economic growth this strategic path based on tourism has to be accomplished in order to make better use of the economic advantages but at the same time respecting the environment and environmental goals to which portugal is committed so it becomes important to analyze what effects contribute more to emissions in this sector as well as which tourism subsectors are more responsible for the increase of emissions the objective of this work is to identify the effects in which co2 carbon dioxide emissions in tourism can be broken down and analyzed as well as their evolution and which of them has more importance in determining emissions for that in this study a decomposition technique based on logarithmic mean divisia index was used in the 2000 2008 period for five tourism subsectors in portugal in general tourism activity is the most important effect energy mix carbon intensity and energy intensity effects also proved important

profit shares bargaining and unemployment i introduction weitzman 1987 has argued that in an economy with long term unemployment due to extra competitive wages profit sharing can eliminate this unemployment by lowering the marginal cost of labor jackman 1988 provides additional microfoundations for this claim by modeling long term unemployment as arising from an externality in decentralized wage setting in that model a mandated profit share lowers wages and raises net profits thereby inducing the entry of firms into the market unambiguously lowering unemployment and leaving the real wage unchanged in general equilibrium the generality of this result is put into question by holmlund 1990 who considers a similar case but with the capital stock fixed economy wide and shows that profit sharing may raise or lower unemployment depending on standard properties of the production function in that short run model firms implicitly operate on downward sloping labor demand curves so profit sharing expands employment only to the degree that it reduces wages in general equilibrium if the labor demand elasticity is great enough the general equilibrium effect of profit sharing is to raise wages and lower employment holmlund also shows that his result is independent of whether the profit share is bargained over or mandated in models with variable capital the question of the effect of profit sharing on employment does not reduce to the question of its effect on wages the introduction of profit sharing also affects net profitability and so may lead to an inflow or withdrawal of capital in the market in the long run further influencing employment in jackman s model employment unambiguously increases however jackman only considers a mandated profit share under monopoly union wage setting leaving the impact of bargaining over profit shares and wages unresolved further substantial structural differences in the models of jackman and holmlund make direct comparisons of these models difficult in the present paper i present a model in the spirit of holmlund s but with free entry of firms subject to overhead costs and show that under nash wage bargains the effect of profit sharing on both employment and compensation depends on whether the profit share is bargained over or mandated as well as on the profit accounting used to determine share payments of particular interest is the possibility that profit sharing may reduce both aggregate employment and total compensation per worker due to general equilibrium effects no such possibility exists in the models of jackman and holmlund profit sharing employment and bargaining as is well known if nash bargaining is over both wages and employment then profit sharing leaves microeconomic employment and incomes unchanged further under unilateral employment setting by firms nash union wage and profit share bargains emulate nash bargains over wages and employment pohjola 1987 anderson and devereux 1989 johnson 1990 in partial equilibrium the ability to bargain over either profit shares or employment in addition to wages raises employment and is pareto improving in general equilibrium however reservation utilities may rise enough to cause wages to rise and employment to fall this is shown by layard and nickell 1990 for bargaining over employment and by holmlund 1990 for bargaining over profit shares both models are short run models in which the capital stocks are fixed economy wide holmlund goes further to show that the same mechanism also operates for mandated profit shares in the long run model presented here holmlund s result for bargained profit shares continue to hold as does layard and nickell s for bargained employment though for different reasons the introduction of profit sharing does not produce upward wage pressure since free entry eliminates profits and thus any direct effect of profit sharing on reservation utilities rather employment is reduced if it reduces profitability and so yields exit of capital sufficient to offset the positive effect of reduced wages on employment

tax incentives and job creation in the tourism sector of brazil s sudene area summary in recent decades a significant number of developing countries have implemented fiscal incentives programs for the tourism industry as part of their regional development policies the main objective of these programs is to increase local investment and employment as tourism activities are labor intensive little evidence is available however to assess the effect of these policies on job creation in emerging markets in this paper we analyze a program of fiscal incentives introduced by the brazilian federal government in the sudene area in 2002 and in which tourism firms were eligible to participate through a difference in difference estimation we compare the change in the logarithm of local employment in the sudene municipalities before and after 2002 to the change in the same outcome in a group of municipalities that were not affected by the program although our empirical analysis does not measure the efficiency of a similar fiscal policy it is the first one in the literature to show its effectiveness it provides evidence that the fiscal incentives led to a substantial increase in tourism employment in the sudene area we find that over the period 2002 09 municipal tourism employment was on average 30 higher than in the absence of the intervention this result is robust and is not the consequence of either displacement effects or job destruction in neighboring municipalities that had not been targeted by the tax incentives we finally discuss some limitations of our analysis that might open avenues for future research in the field

tourism led growth hypothesis in the top ten tourist destinations new evidence using the quantile on quantile approach this paper examines the empirical validity of the tourism led growth hypothesis in the top ten tourist destinations in the world china france germany italy mexico russia spain turkey the united kingdom and the united states using the quantile on quantile qq approach and a new index of tourism activity that combines the most commonly used tourism indicators this methodology recently introduced by sim and zhou 2015 provides an ideal framework with which to capture the overall dependence structure between tourism development and economic growth the empirical results primarily show a positive relation between tourism and economic growth for the ten countries considered with substantial variations across countries and across quantiles within each country the weakest links are noted for china and germany possibly because of the limited importance of the tourism sector relative to other major economic activities in those countries important country specific policy implications may be drawn from these findings

effects of budgetary constraints on international tourism expenditures abstract this paper implements a logistic transition regression model to examine the relationships between gdp per capita and international tourism expenditures across countries in 2001 2010 by types of savings regimes while studies have focused on the effect of income on international tourism expenditures none consider the nonlinear smooth transition status of savings and its impacts on discretionary spending and hence expenditure on tourism the impact of income on tourism expenditures can vary under different savings regimes the results show that in a low savings regime the effect of an increase in the gdp per capita on international tourism expenditures is more pronounced in a high savings regime there is strong motivation for precautionary savings and tourism is considered a luxury therefore such spending is crowded out by an increase in savings as gdp per capita increases although international tourism expenditures also increase with gdp per capita they do so at a slower rate these findings establish an accurate understanding of the effects of savings on international tourism expenditures

profit sharing in a unionised economy with imperfect competition abstract this paper sets up a simple model of a unionised economy and shows that the introduction of profit sharing unambiguously reduces the unemployment rate the result arises because unions are assumed to care about the employment of their members but cannot bargain over employment directly profit sharing reduces the perceived cost in terms of worker income foregone of increasing employment in the firm in the economy as a whole the equilibrium unemployment rate falls

dynamic economic dispatch feasible and optimal solutions dynamic economic dispatch is an extension of the conventional economic dispatch problem that takes into consideration the limits on the ramp rate of the generating units this paper examines the factors that affect the feasibility and optimality of solutions to this problem it proposes two new solution methods the first is guaranteed to find a feasible solution even when the load profile is nonmonotonic the second is an efficient technique for finding the optimal solution the results obtained with these methods are compared with those obtained using previously published methods

stochastic optimization model to study the operational impacts of high wind penetrations in ireland a stochastic mixed integer linear optimization scheduling model minimizing system operation costs and treating load and wind power production as stochastic inputs is presented the schedules are updated in a rolling manner as more up to date information becomes available this is a fundamental change relative to day ahead unit commitment approaches the need for reserves dependent on forecast horizon and share of wind power has been estimated with a statistical model combining load and wind power forecast errors with scenarios of forced outages the model is used to study operational impacts of future high wind penetrations for the island of ireland results show that at least 6000 mw of wind 34 of energy demand can be integrated into the island of ireland without significant curtailment and reliability problems

a multi period market design for markets with intertemporal constraints the participation of renewable energy storage and resources with limited fuel inventory in electricity markets has created the need for optimal scheduling and pricing across multiple market intervals for resources with intertemporal constraints in this paper a new multi period market model is proposed to enhance the efficiency of markets with such type of resources it is also the first market design that links a forward market and a spot market through the coordination of schedule and price under the multi period paradigm achieving reliability economic efficiency and dispatch following incentives simultaneously the forward market solves a multi period model with a long look ahead time horizon whereas the spot market solves a series of multi period dispatch and pricing problems with a shorter look ahead time horizon on a rolling basis by using the forward schedules and opportunity costs of intertemporal constraints as a guideline the spot market model is able to produce economically efficient dispatch solutions as well as prices that incentivize dispatch following under the perfect forecast condition the proposed scheme is applied to the dispatch and pricing of energy storage resources numerical experiments show that the proposed scheme outperforms the traditional myopic method in terms of economic efficiency dispatch following and reliability

profit sharing and employment stability this paper tests the hypothesis that workers whose compensation packages contain a profit sharing component are less susceptible to layoff in the face of negative shocks to product demand than are workers paid a fixed time based wage the theory is tested on two data sets one a household survey and the other a survey of small businesses conducted by the authors the characteristics of profit sharing among small businesses by and large meet the theoretical requirements for stabilizing employment and the authors do find evidence in both samples to support the hypothesis the evidence however is of borderline statistical significance and is therefore more suggestive than definitive

tourism development and economic growth a closer look at panels abstract this paper applies the new heterogeneous panel cointegration technique to re investigate the long run comovements and causal relationships between tourism development and economic growth for oecd and nonoecd countries including those in asia latin america and sub sahara africa for the 1990 2002 period on the global scale after allowing for the heterogeneous country effect a cointegrated relationship between gdp and tourism development is substantiated it is also determined that tourism development has a greater impact on gdp in nonoecd countries than in oecd countries and when the variable is tourism receipts the greatest impact is in sub sahara african countries additionally the real effective exchange rate has significant effects on economic growth finally in the long run the panel causality test shows unidirectional causality relationships from tourism development to economic growth in oecd countries bidirectional relationships in nonoecd countries but only weak relationships in asia our empirical findings have major policy implications

deliverable robust ramping products in real time markets the increasing penetration of variable energy resources has led to more uncertainties in power systems flexible ramping products frp have been adopted by several electricity markets to manage the uncertainties we reveal that neglected line congestion for frp may not only cause infeasibility but also result in a failure of cost recovery to address the deliverability issues on frp this paper proposes a new concept deliverable robust ramping products drrp in real time markets the drrp includes generation ramping reserve and generation capacity reserve the drrp is deliverable and immunized against any predefined uncertainty it also fully addresses the bid cost recovery issue caused by the line congestion in existing frps the prices of drrp are derived within the affine adjustable robust optimization aaro framework these prices can be used to identify valuable reserves among available reserves and quantify the values of flexible resources that provide reserves this paper also proposes a general approach to obtaining the time decoupled prices for drrp and generation which can be used for the market settlement of the first interval only in real time markets simulations on a 3 bus system and the ieee 118 bus system are performed to illustrate the concept of drrp and the advantages of drrp compared to existing frp

the implications of tourism specialisation in the long run an econometric analysis for 13 oecd economies abstract the paper aims to illumine the longrun impact of specialisation in tourism it is shown that specialisation in tourism may not be deleterious for economic welfare once the terms of trade are considered conditions for an improvement in welfare are laid out and their existence tested by econometric methods within an almost ideal demand system formulation of tourist expenditure for 13 oecd economies the analysis uses cointegration techniques and novel sequential break dating procedures evaluated where the time dimension is small the values of the estimated parameters suggest that long run growth may not be harmed by tourism specialisation

exploring the effects of international tourism on china s economic growth energy consumption and environmental pollution evidence from a regional panel analysis abstract this study explores the effects of international tourism on china s economic growth energy consumption and environmental pollution as proxied by co 2 emissions in a multivariate framework using regional panel data over the period 1995 2011 our findings suggest that the tourism induced ekc hypothesis does not exist in central china and is merely weakly supported in eastern and western china however results show that tourism has a negative impact on co 2 emissions in the eastern region which contradicts with our perception to some extent panel causality tests show that the directions of causality in both short and long runs are mixed among regions nevertheless our findings reveal that tourism causally affects economic growth and co 2 emissions in the long run thus tourism led growth hypothesis is verified under all three scenarios our findings also suggest that in all three regions there is bidirectional causality between economic growth and co 2 emissions overall these results imply that low carbon tourism in china should be continuously supported which provides significant insights to policy makers at various government levels

profit sharing and employment variability microeconomic evidence on the weitzman theory this study tests an important implication of weitzman s profit sharing theory the prediction that profit sharing firms will have more stable employment than fixed wage firms using panel data on 2 976 publicly traded companies for the years 1971 85 profit sharing manufacturing firms are found to have had smaller employment decreases than other manufacturing firms during business downturns when the unemployment rate increased by one point manufacturing firms in which all employees participated in a profit sharing pension plan had a 2 0 decrease in employment compared to a 3 1 decrease for nonprofit sharing manufacturing firms no significant differences in employment stability were found however between profit sharing and non profit sharing firms in the non manufacturing sector

profit sharing risk sharing and firm size implications of efficiency wages by taking account of output fluctuations this paper constructs a synthesis of profit sharing and efficiency wage models to highlight the role of the risk attitudes of the firm and its employees we show contrary to the traditional efficiency wage theory that in a profit sharing economy unemployment is no longer a necessary device to induce work effort and consequently the labor market equilibrium may be characterized by full employment such a result is more likely to be true when the economy is characterized by small sized firms in addition we also provide a preliminary sketch of the situations in which the firm chooses a profit sharing program or a fixed wage one and discuss how a firm determines its pay parameters and employment in response to output fluctuations

tourism and economic development the beach disease abstract this paper analyses empirically the danger of a dutch disease effect in tourism dependent countries in the long run data on 134 countries of the world over the period 1970 2007 is used in a first step the long run relationship between tourism and economic growth is analysed in a cross country setting the results are then checked in a panel data framework on gdp per capita levels that allows to control for reverse causality non linearity and interactive effects it is found that there is no danger of a beach disease effect on the contrary tourism dependent countries do not face real exchange rate distortion and deindustrialisation but higher than average economic growth rates investment in physical capital such as for instance transport infrastructure is complementary to investment in tourism

tourism expansion tourism uncertainty and economic growth new evidence from taiwan and korea abstract this study examines the causal relationship between tourism expansion and economic growth in two asian countries taiwan and south korea an egarch m model with uncertainty factors is employed to examine the direction of causality between tourism expansion and economic growth as well as the impulse impacts of uncertainty on both variables the results indicate that the tourism led economic growth hypothesis is supported for taiwan while a reciprocal causal relationship is found for south korea the significant impacts of uncertainty on growth are also identified

financial development and economic growth evidence from panel unit root and cointegration tests abstract in this paper we investigate the long run relationship between financial depth and economic growth trying to utilize the data in the most efficient manner via panel unit root tests and panel cointegration analysis in addition we use threshold cointegration tests and dynamic panel data estimation for a panel based vector error correction model the long run relationship is estimated using fully modified ols for 10 developing countries the empirical results provide clear support for the hypothesis that there is a single equilibrium relation between financial depth growth and ancillary variables and that the only cointegrating relation implies unidirectional causality from financial depth to growth

pricing energy and ancillary services in integrated market systems by an optimal power flow a detailed ac opf based formulation for procuring pricing and settling energy and ancillary service in simultaneous auctions by integrated market systems is presented the paper provides clear definitions of locational marginal prices for energy and ancillary service marginal prices in terms of lagrange multipliers the characteristics of the prices are analyzed especially when economic substitution among ancillary services is required the paper also evaluates the conditions under which opportunity costs are incurred to units that provide ancillary services it is particularly shown that the intuitive belief that the provision of regulation down service does not incur opportunity cost to the provider in general is not true

corporate governance tourism growth and firm performance evidence from publicly listed tourism firms in five middle eastern countries this study explores the under researched relationship between corporate governance and firm performance in tourism companies we employ instrumental variable modelling using 2sls for publicly listed firms in five countries in the middle east board independence is found to be positively related to firm performance and stock performance suggesting that having independent directors among board members will improve overall firm performance board size shows opposing results large boards enhance firm profitability however small boards exhibit more efficient stock performance finally we support the tourism led growth hypothesis in our selected sample these findings have empirical implications for policy makers governments and academics

comment on can the share economy conquer stagflation the main thrust of nordhaus paper seems to me to be the following there is no such thing as an excess demand for labor in a share economy and any propositions following from such an idea are at least suspect and probably wrong in my view the concept of excess demand for labor is merely a heuristic device that many people find useful as a way of thinking about what is happening in a share economy in a short run when pay parameters are quasi fixed relative to everything else but absolutely nothing substantive depends on using this phrase or even understanding what it means a reader of my economic journal article 1983 should understand this point quite clearly a shortrun equilibrium is there defined for a situation where pay parameters are quasi fixed and every other variable in the system including labor can be freely changed then a long run equilibrium where pay parameters are also free to vary is defined the basic result is that small changes in the neighborhood of a long run equilibrium may produce short run unemployment in a quasi fixed wage system but not in a quasi fixed share system this result is robust to various assumptions about labor mobility and survives a number of other alterations let me rephrase the basic argument without ever making use of the concept of excess demand for labor suppose that there are two kingdoms old lakeland and new lakeland which are physically identical in every way the economies of both identical twin kingdoms consist exclusively of fishing from the numerous privately owned lakes and exporting all of the fish at given world prices in old lakeland the monarch has decreed that the money wages to be paid throughout the year at each lake are to be posted on january 1 of that year and cannot be altered until january 1 of the next year in new lakeland the monarch has decreed that payment at each lake shall consist of a share of the value of the fish caught per worker the share fraction applying throughout the year is to be posted on january 1 of that year and cannot be altered until january 1 of the next year in both economies once the pay parameters wages or share fractions are posted workers are free to migrate to that highest paying lake which will employ them suppose that the world price of fish has been steady for as long

tourism development energy consumption and environmental kuznets curve trivariate analysis in the panel of developed and developing countries abstract the study investigates the relationship between economic growth carbon dioxide emissions tourism development energy demand domestic investment and health expenditures with an aim to test the validity of the environmental kuznets curve ekc hypothesis in the panel of three diversified world s region including east asia pacific european union and high income oecd and non oecd countries the study covers the period of last nine years i e 2005 2013 the study used the principal component analysis pca to construct tourism development index which is the amalgamation of number of tourists arrivals tourism receipts and international tourism expenditures the results validate the inverted u shaped relationship between carbon emissions and per capita income in the region the results further substantiate the following causal relationships i e i tourism induced carbon emissions ii energy induced emissions iii investment induced emissions iv growth led tourism v investment led tourism and vi health led tourism development in the region

unemployment persistence under profit sharing abstract in a simple dynamic model with an employment externality generated by union bargaining an increase in a mandated rate of profit sharing reduces not only the steady state unemployment rate but also the persistence of unemployment out of steady state

scheduling and pricing for expected ramp capability in real time power markets higher variable renewable generation penetrations are occurring throughout the world on different power systems these resources increase the variability and uncertainty on the system which must be accommodated by an increase in the flexibility of the system resources in order to maintain reliability many scheduling strategies have been discussed and introduced to ensure that this flexibility is available at multiple timescales to meet variability that is the expected changes in system conditions two recent strategies have been introduced time coupled multi period market clearing models and the incorporation of ramp capability constraints to appropriately evaluate these methods it is important to assess both efficiency and reliability but it is also important to assess the incentive structure to ensure that resources asked to perform in different ways have the proper incentives to follow these directions which is a step often ignored in simulation studies we find that there are advantages and disadvantages to both approaches we also find that look ahead horizon length in multi period market models can impact incentives this paper proposes scheduling and pricing methods that ensure expected ramps are met reliably efficiently and with associated prices based on true marginal costs that incentivize resources to do as directed by the market case studies show improvements of the new method

mobility and modality trends in us state personal income we examine the mobility and modality trends in us state per capita personal income and its components during the 1929 1999 period we find strong evidence of convergence for states but that the tendency towards convergence and the associated mobility within the distribution varies during the period and especially for the 1980s our analysis of convergence by income component suggests that transfer income contributes more to the observed convergence than does asset income we also note that distributional mobility need not be accompanied by high rank mobility and find that trends toward convergence in the us have tended to preserve rank ordering cet article cherche a examiner les tendances de mobilite et de modalitequant aux revenus personnels par tete et a ses composants aux etats unis pendant la periode qui va de 1929 a1999 il s avere de fortes preuves d une convergence entre etats qui varie au cours de la periode etudiee et qui va de pair avec une variation de la mobilite associee au sein de

profit related pay prose discovered this paper estimates that in 1984 43 percent of british private sector establishments had some form of profit related pay regression results do not show that these establishments had statistically significant better financial performance cross ta bulations do not suggest that the establishments with income sharing schemes had noticeably greater employment growth or better industrial relations copyright 1988 by royal economic society

profit sharing in internal labour markets a main point of weitzman s analysis of profit sharing is that although profit sharing may result in a pareto superior configuration it is not stable under free choices of payment mechanisms weitzman i987 p ioi insiders who face virtually zero probability of unemployment given the set of possible shocks the economy faces will always prefer the fixed wage payment to a profit sharing system since the latter system would result in the firm hiring outsiders and lowering the pay of insiders thus if all the parameters of pay are bargained over in a single firm or industry the profit sharing parameter is zero on the other hand if profit sharing were introduced from outside in all the firms of the economy the macroeconomic impact higher employment and lower prices would offset the negative impact on insiders pay to say it with weitzman s words if every firm converted to profit sharing there would be no outsider unemployed workers to hire and the insiders would be no worse off p i02 weitzman suggests correcting this macroeconomic externality with a subsidy for profit sharing in the form of a reduced rate of tax on income that workers derive from their share of company profits the debate on weitzman s proposal has focused mainly on the effectiveness of subsidies and on efficiency wage considerations see the surveys by estrin et al i986 wadhwani i987 and rees i990 so far little has been done to examine the robustness of the proposition that insiders who face a close to zero probability of unemployment always prefer a wage to a share system so that in equilibrium profit related pay is zero 1 this proposition is obviously a central feature of weitzman s proposal because it implies that without government intervention profit sharing should not be observed this is not very satisfactory if one considers the empirical evidence suggesting that profit related pay is widespread in japan see freeman and weitzman i987 and present both in the united kingdom see blanchflower and oswald i988 and the united states see mitchell et al i990 as remarked by rees this empirical evidence suggests that a desirable feature of the equilibrium should be that the bargain between insiders and the firm yield a corner solution with zero profit sharing in some well specified circumstances and an internal solution with positive profit sharing in others the purpose of this paper is to present an example of such an equilibrium where the factor determining whether we have a corner or an internal solution is the nature of promotion in a hierarchical firm the key idea is to introduce

effects of tourism on regional asymmetries empirical evidence for portugal abstract this study uses a vector autoregressive approach to estimate the regional effects of tourism in portugal with the ultimate objective of assessing tourism s role in reducing regional asymmetries we identify the locations where tourism generates higher effects for each region as well as the regions where tourism generates the strongest effects on the country s economic performance this issue is of particular interest from the side of the country s authorities since tourism is a strategic sector to promote national and regional convergence the study s findings suggest that tourism has contributed to the concentration of economic activity in the largest region of the country and to reduce the gap between the second and the third largest regions some regions benefit more from tourism located in other regions than tourism located in each region and tourism in all regions generate positive effects on the country s economic performance

oil prices tourism income and economic growth a structural var approach for european mediterranean countries abstract in this study a structural var model is employed to investigate the relationship among oil price shocks tourism variables and economic indicators in four european mediterranean countries in contrast with the current tourism literature we distinguish between three oil price shocks namely supply side aggregate demand and oil specific demand shocks overall our results indicate that oil specific demand shocks contemporaneously affect inflation and the tourism sector equity index whereas these shocks do not seem to have any lagged effects by contrast aggregate demand oil price shocks exercise a lagged effect either directly or indirectly to tourism generated income and economic growth the paper does not provide any evidence that supply side shocks trigger any responses from the remaining variables results are important for tourism agents and policy makers should they need to create hedging strategies against future oil price movements or plan for economic policy developments

tourism and economic development a survey this article surveys the literature on tourism and economic development identifying the contribution that tourism can make to development including foreign currency income and employment and the costs that it entails single equation and system of equations models for estimating tourism demand are provided indicating developing countries potential to benefit from increasing expenditure on tourism but their susceptibility to deterioration in price competitiveness the main sectors of tourism supply transportation tour operators travel agents and accommodation are examined and the importance of cross country integration between firms is highlighted the article argues that many of the problems associated with the use of environmental resources for tourism stem from market failure and it considers methods for increasing sustainably the returns from them

comparative economic performance of conventional and profit sharing firms abstract this paper compares the various economic properties of conventional firms and profit sharing firms the properties contrasted include wage level employment output price total economic rents and industry efficiency the firms operate in an oligopolistic industry with a labor union in general profit sharing firms outperform non sharing firms however there exist counterexamples in which non sharing firms can outperform sharing firms to test the robustness of the results the analysis is conducted for a variety of oligopolistic industries quantity setting pricesetting and joint collusion

assessing environmental economic and reliability impacts of flexible ramp products in miso s electricity market abstract increased variability and uncertainty of net electrical load due to high penetration of wind and solar power augments the need for dispatching conventional generators with sufficient ramping capability rc needed to balance demand with supply having sufficient rc reduces the need of last minute dispatch schedule modifications which cause cost reliability and environmental outcomes that reduce the benefits of renewables the midcontinent independent system operator miso has modified its unit commitment and economic dispatch algorithms to account for the economic value of provisioning adequate rc levels this paper explores the outcomes of this modified market clearing process by simulating 10 minute operations of a scaled miso test system for three representative months under low and high wind penetration scenarios changes in system performance are quantified by comparing system costs scarcity events pricing energy prices generation fuel mix wind power curtailment and co 2 emissions between the conventional market clearing algorithm and one with flexible rc products results indicate that adding rc products lowers co 2 emissions and system costs facilitates wind integration and improves reliability these benefits are robust to changes in the market clearing algorithm parameters such as over under generation penalties and reserve scarcity prices

is tourism an engine for economic recovery theory and empirical evidence abstract the purpose of this study is to examine the causal relationships between tourism development and economic growth for this purpose the dumitrescu and hurlin 2012 technique was employed to analyze the casual link between tourism development and economic growth in seven european countries the results showed that there is bidirectional causality between growth in tourism receipts and economic growth suggesting that economic growth and tourism development are interdependent and that tourism development stimulates economic growth and vice versa in these countries theoretical and practical implications are discussed within the realms of growth conservation feedback and neutrality hypotheses

profit sharing and relative consumption mandatory profit sharing can represent a pareto improvement if labour supply is excessive due to relative consumption effects profit sharing reduces wages if the rise in profit income keeps total income constant there will only be a pareto improving substitution effect

electricity and natural gas interdependency comparison of two methodologies for coupling large market models within the european regulatory framework power generation growth based on natural gas fired power plants ngfpps has lead to increasing interactions between electric power and natural gas industries more companies are progressively and simultaneously participating as big players in both markets however each company has traditionally been settled in one side holding a particular competitive advantage electric power generation companies mainly know how to operate their generation assets whereas gas companies mainly know how to manage their gas supply contracts and make use of often regulated gas assets multi product energy companies have even created independent departments which decisions are usually taken uncoordinatedly in any case companies or departments usually support their decision making process in mathematical tools which represent each market with detail this paper presents two methodologies for coupling two interdependent electricity and gas market models formulated as optimization problems each methodology fulfills different department wishes the electricity perspective methodology maximizes electricity market profits after calculating equivalent gas contracts with the gas market model in contrast the gas perspective methodology minimizes gas operation costs after obtaining the relationship between the marginal revenue and the gas consumption with the electricity market model this coordinated solution would allow companies to obtain synergies resulting in a competitive advantage over other companies that operate uncoordinatedly in both markets

profit sharing unions and investments the pay parameters in a profit sharing system are likely to be determined by collective bargaining between unions and employers in this case employment will not necessarily be higher under profit sharing than under a fixed wage system for a fixed capital stock the most likely case is that profit sharing is better for unions and worse for employers than a fixed wage system with endogenous investments both parties may be worse off under profit sharing than under a fixed wage system this might be one of the reasons why we in fact do not observe much profit sharing under collective bargaining

coal lumps vs electrons how do chinese bulk energy transport decisions affect the global steam coal market this paper demonstrates the ways in which dierent chinese bulk energy transport strategies aect the future steam coal market in china and in the rest of the world an increase in chinese demand for steam coal will lead to a growing need for additional domestic infrastructure as production hubs and demand centers are spatially separated and domestic transport costs could inuence the future chinese steam coal supply mix if domestic transport capacity is available only at elevated costs chinese power generators could turn to the global trade markets and further increase steam coal imports increased chinese imports could then yield signicant changes in steam coal market economics on a global scale this eect is analyzed in china where coal is mainly transported by railway and in another setting where coal energy is transported as electricity for this purpose a spatial equilibrium model for the global steam coal market has been developed one major nding is that if coal is converted into electricity early in the supply chain worldwide marginal costs of supply are lower than if coal is transported via railway furthermore china s dependence on international imports is signicantly reduced in this context allocation of welfare changes particularly

the evolving design of rto ancillary service markets abstract although the markets for ancillary services at the north american independent system operators are often structured in quite different ways there is an emerging set of core design elements that represent a rough consensus as to what the optimal design configuration for ancillary services should be albeit with some regional variation this paper looks back at how the design of ancillary services markets has recently evolved to put this development in context thereafter it examines the methods by which ancillary services are procured by highlighting the procurement practices at a number of different independent system operators principally those in california new york new england texas and the pjm interconnection in an attempt to tease out the remaining reasons why the ancillary service markets are still so different this is important as there are many innovations that are not rooted in regional differences but reflect genuine technical advances and economic efficiency gains and can be replicated across other isos to produce more efficient designs greater reliability and lower costs

the simple macroeconomics of profit sharing this paper is in the spirit of the temporary equilibrium approach to macroeconomics it basically extends that framework to cover a profit sharing system and then compares the macroeconomic characteristics with those of the more familiar wage system a first preliminary step is to demonstrate how a microeconomic model of monopolistic competition can be built up into a junior member of the keynesian macro family the methodology is to create from first principles including a careful formulation of a monopolistically competitive product market structurea natural underpinning for the standard aggregate demand specification the primary goal of the paper is to apply the integrated monopolistic competitionkeynesian type apparatus described above to investigate the macroeconomic properties of a profit sharing economy the existence of a consistent general framework covering both cases invites meaningful comparisons that indicate clearly why an economy based on profit sharing principles possesses natural immunity to stagflation by contrast the wage economya system we have largely accepted without critically examining its macroeconomic consequences is more prone to suffer from unemployment and inflation the policy implications for aggregate demand management in wage and share systems are analyzed and contrasted in writing this paper my philosophy has been to not shirk from using those reasonable parameterizations and functional forms which yield nice crisp results and permit me to focus sharply on the essential logic of basic issues it is certainly possible to present the main results in a somewhat more general formulation as the astute reader will appreciate but i fear only at some cost of distracting attention from those central features i wish to highlight

wind power integration and power system flexibility an empirical analysis of extreme events in germany under the new negative price regime abstract in this article the flexibility of the german power market with respect to the integration of an increasing share of electricity from renewable energy sources was analysed flexibility limiting system components which cause negative prices are explained and illustrated for the german market the decision of the european energy exchange in leipzig to allow negative price bids is then explained the empirical data illustrate the flexibility of conventional generating capacities in germany from october 2008 to december 2009 of the 86 h of negative spot prices 19 h were significantly negative with prices of at least 100 mwh these extreme hours were analysed in greater detail by the examination of different system components thereby load wind power infeed and conventional generation by fuel type were observed as well as the market for negative tertiary reserve as indicators for market tightness although the market situations were found to be severe under the current conditions it could have been much worse in order to enable the market to clear at all times policy recommendations are provided and long run implications of an increasing res e share on the conventional generation capacity are discussed the article concludes with an outlook on additional power system flexibility options

can the share economy conquer stagflation this paper analyzes weitzman s contention that a share economy will significantly improve the unemployment inflation tradeoff it is shown that the argument rests on a critical proposition that share contracts lead to labor s being in perpetual excess demand the basis of this proposition is challenged using a wide variety of models of the labor market the paper concludes that the microeconomics of share economies differs little from that of wage economies and that a widespread introduction of share contracts is unlikely to improve macroeconomic performance

micro economic determinants of tourist expenditure a quantile regression approach abstract we assess the effect of the main determinants of tourist expenditure by applying both linear and quantile regression models to individual micro data collected by a survey addressed to non resident tourists who spent their holidays in sardinia during the period april october 2012 we find that in addition to income and foreign nationality tourist expenditure is crucially driven by trip related party size stay length accommodation sea and sun typology and transport modality and psychographic characteristics repeated visits and holiday motivations moreover our results indicate that the effects vary with respect to the expenditure component and the level of spending thus confirming the high complexity of the tourism product higher positive effects were found for heavy spenders in the case of foreign nationality previous visits and notoriety motivated holidays while party size and the number of visited sites contribute to reducing the level of expenditure for light spending tourists

steady state unemployment under profit sharing this paper demonstrates how asymmetric treatment of high seniority insider workers and non tenured outsiders gives rise to bad macroeconomic st eady states in a wage economy the framework uses a nash bargaining solution where workers may bargain over pay but firms control hiring profit sharing is then considered as an alternative payment mechanism having the automatically corrective incentive property that employers want to hire more outsiders given the assumptions of the model it is shown that widespread profit sharing results in lower unemployment and more output even though it is individually rational for insiders to prefer wages over profit shares copyright 1987 by royal economic society

seasonality and regional productivity in the spanish accommodation sector abstract this study quantifies the impact of peak demand and seasonality on regional productivity in the spanish accommodation sector we then identify factors affecting seasonal fluctuations and their relative contributions to regional variations in seasonality the results show that demand for accommodation in the peak season mainly determines productivity thus improving a region s attractiveness as a tourist destination is most effective for tourism based regional development in addition reducing seasonal variations has a non negligible impact on productivity a decomposition analysis reveals that providing climate independent tourist attractions and attracting business travelers are effective in reducing seasonality

the relationship between energy consumption energy prices and economic growth time series evidence from asian developing countries this paper estimates the causal relationships between energy consumption and income for india indonesia the philippines and thailand using cointegration and error correction modelling techniques the results indicate that in the short run unidirectional granger causality runs from energy to income for india and indonesia while bidirectional granger causality runs from energy to income for thailand and the philippines in the case of thailand and the philippines energy income and prices are mutually causal the study results do not support the view that energy and income are neutral with respect to each other with the exception of indonesia and india where neutrality is observed in the short run c 2000 elsevier science b v all rights reserved jel classifications c22 q43 q48

increasing returns and the foundations of unemployment theory current approaches to macroeconomic theory divide roughly into two basic schools of thought one approach typically associated with rational expectations views the economy as basically at or near walrasian market clearing equilibrium in which case it becomes very difficult to explain away convincingly the undeniable persistence at times of involuntary unemployment another approach views the underemployed economy as being in a state of temporary fixed price disequilibrium in which case aside from having to repress suspicions that the essence of effective demand failure might not have to do with prices fixed at wrong values there is a lot of rationalising to be done about why profitable adjustments are so slow this paper argues that something like an internally consistent theory of steady state involuntary unemployment is possible and even plausible the cornerstone of this third approach is increasing returns to scale which blocks unemployed agents from breaking out of a low level equilibrium trap unless there is overall coordination or stimulation a simple model is presented which contains the basic ideas

profit sharing and european unemployment abstract this paper uses three criteria to evaluate profit sharing as a policy to help improve europe s economic performance a reduction of the real wage b expansion of firms profits and c restraint of the wage demand given an expansionary demand stimulus it is shown that under the alternative market structure of perfect competition monopoly and cournot nash oligopoly real wage tends generally to decline with sharing there also exists a positive share parameter such that firms profits will rise lastly if an expansionary demand policy is adopted the union will tend to demand a smaller wage increase under a share system this paper suggests that profit sharing may possess useful important properties that are relevant to the european problem

a comparison of the moderating effect of tourism reliance on the economic development for islands and other countries abstract tourism is usually one of the top industries in most countries especially islands however there is some question as to whether there is a negative potential impact if a country relies too much on tourism as a means of economic development to the detriment of other industries such as manufacturing and agriculture the purpose of this paper is to examine the moderating effect of tourism reliance on the relationship between tourism development and economic development for regular countries and island economies including small island developing states sids this study uses quantile regression on panel data from the wdi database from 1995 through 2014 for all of the countries that report tourism and economic data the findings demonstrate that tourism reliance does have a moderating effect on the relationship between tourism development and economic development for all countries but mainly at higher levels of economic development

a multiperiod generalized network flow model of the u s integrated energy system part ii simulation results this paper is the second of a two part paper and describes the application of a multiperiod generalized network flow model that is used to analyze the economic efficiencies of the energy movements from the coal and natural gas suppliers to the electric load centers providing a simulation tool that captures dynamics of and interdependencies between the coal natural gas and electricity networks the modeling approach mathematical formulation and modeling assumptions are presented in part i this sequel presents and discusses numerical results to illustrate the application of the model the model enables public and private decision makers to carry out comprehensive analyses of a wide range of issues related to the energy sector such as strategic planning economic impact assessment and different regulatory regimes

profit sharing and employee share ownership profit sharing and employee share ownership saul estrin paul grout and sushil wadhwani this paper evaluates the likely effects of linking a part of a worker s pay to the employer s profits it has been suggested by weitzman that this would raise employment by lowering the cost of taking on an extra worker however this can only happen if existing workers are willing to let their share of value added fall and experience of those firms in the uk who already operate profit sharing schemes suggests that the weitzman mechanism is not operative there is however some evidence that profit related pay does boost productivity but there are other ways of raising productivity such as performance related pay which may be more effective productivity enhancing effects are likely to be greatest when employees are involved in decision making as well but this is likely to undermine the weitzman case still further even if the argument that profit sharing raises employment is not compelling it is sometimes suggested that it can do little harm however there is evidence that it may well be inflationary in which case the government would be advised to proceed cautiously we argue that there is very little case for the introduction of a permanent subsidy to encourage increased profit sharing although there may be a case for a temporary one to overcome managerial inertia however there is a danger that a subsidy will promote cosmetic schemes designed to be eligible for the subsidy but which do not reflect any real change in behaviour

the effects of profit sharing on employment wages stock returns and productivity evidence from uk micro data this paper provides evidence based on u k firm level data that 1 the authors cannot reject the view that profit sharing firms view the total level of remuneration as the marginal cost of labor which is contrary to much of weitzman s analysis 2 there is some support for the popular view that profit sharing raises total remuneration and can therefore be inflationary and 3 the introduction of profit sharing does lead to higher productivity but this combined with the employment reducing consequences of 2 leads the authors to conclude that the net employment effect is small and uncertain copyright 1990 by royal economic society

lump sum payments and profit sharing plans in the union sector of the united states economy lump sum payments and profit sharing plans became increasingly prevalent in union contracts in the u s economy in the 1980s this paper analyzes the relationship between lump sums profit sharing labor costs and employment in firm level panel data for the union sector of the u s economy in general the firm level data suggest that profit sharing has a statistically significant effect of lowering labor cost growth profit sharing also appears to increase employment growth and reduce employment variability but these results are not statistically significant this evidence is generally consistent with hypotheses regarding the introduction of performance related pay weitzman 1984 and 1985 the effects of lump sums on the other hand are not consistent with hypotheses regarding performance related pay lump sums do not appear to lower labor cost growth or increase employment growth and increase rather than decrease employment variability copyright 1993 by royal economic society

implementing the share economy in a recent series of papers and books weitzman 11 12 13 has put forward a new policy prescription for the macroeconomy in weitzman s view significant improvements in the performance of the macroeconomy can be achieved by altering key structural relationships specifically the wage contract between workers and firms weitzman labels this approach the share economy because workers wages are no longer contracted for in nominal terms but vary with an index of the firm s performance usually profits that is the workers share in the firm s success or failure the point of weitzman s work is not that participation increases worker s motivation or productivity in weitzman s view share contract wage agreements create a pool of latent excess demand for labor within firms firms then behave in the labor markets as buyers who would expand employment at the going wage if they could this contrasts with the more familiar case where firms are willing to expand employment only if the wage is reduced weitzman s claims for economies implementing share contracts are impressive lower natural unemployment rates less susceptibility to layoffs caused by macroeconomic shocks and reduced inflation in weitzman s world firms are monopolistic competitors operating under increasing returns to scale it is these two features that lead to wage and price inflexibility and therefore to potential unemployment 10 weitzman makes his case for the share economy by examining a transition economy where conversion from a wage system to an equivalent profit sharing system yields the same pay 13 945 even in this case where total payments to workers are identical weitzman shows that the share economy expands output and employment while lowering price 13 945 although conversion to a share economy may seem desirable from a macroeconomic view

optimal response of a thermal unit to an electricity spot market this paper addresses the optimal response of a thermal unit to an electricity spot market the objective is to maximize the unit profit from selling both energy and spinning reserve in the spot market the paper proposes a 0 1 mixed integer linear programming approach that allows a rigorous modeling of i nonconvex and nondifferentiable operating costs ii exponential start up costs iii available spinning reserve taking into account ramp rate restrictions and iv minimum up and down time constraints this approach overcomes the modeling limitations of dynamic programming approaches and is computationally efficient results from realistic case studies are reported