the speed of the invisible hand abstract very little attention has been devoted to incorporating dynamic elements into empirical models of market structure and performance consequently there has been little progress in settling the issue of whether the market structure profits relationship is more than just a temporary phenomenon in this study an estimation equation is developed which allows for incomplete adjustment of past profits from expected future profits where expected profits depends on present and expected future changes in market structure the model is estimated pooling panel data across industries the findings indicate that adjustment to abnormal profits is relatively quick market share adjustments are non instantaneous and that inclusion of industry specific effects is important the results suggest that previous studies are susceptible to specification bias from omitted variables

habits costly investment and current account dynamics abstract we analyze the current account dynamics for a small country model with habit forming consumers and costly investment the model has several empirical and policy implications i it is consistent with stylized facts regarding the effects of productivity shocks and increases in fiscal spending and regarding the savings investment co movement ii the long run effect of a temporary shock on net foreign assets is often opposite to that of a permanent shock iii under strong habit persistence the welfare dynamics are sluggish so that a beneficial tax financed fiscal policy may have a harmful hangover effect on welfare

energy consumption and sustainable economic welfare in g7 countries a comparison with the conventional nexus abstract this is an empirical study on the causal relationship between sustainable economic welfare growth and energy consumption for canada france germany italy japan uk and the usa using a multivariate panel framework with variables such as employment capital energy consumption and r d the short and long run relationships are compared with those produced from the commonly known so far energy gdp gross domestic product growth relationship results mainly show that in the long run g7 economies can reduce energy consumption without compromising sustainable economic welfare in the short run though both gdp and economic welfare are very much dependent on energy consumption for their materialization of growth sustainable or not the current paper follows the tendency of new economics that shift their focus therein and propagate the use of sustainable welfare in place of the criticized gdp the calculation of the index for sustainable economic welfare isew reveals that uk closely followed by usa have the largest gap on average 52 and 50 respectively between their gdp and sustainable economic welfare japan is experiencing a steadily widening gap while canada is the most sustainable country among g7

exchange rates and foreign direct investment an imperfect capital markets approach we examine the connection between exchange rates and foreign direct investment that arises when globally integrated capital markets are subject to informational imperfections these imperfections cause external financing to be more expensive than internal financing so that changes in wealth translate into changes in the demand for direct investment by systematically lowering the relative wealth of domestic agents a depreciation of the domestic currency can lead to foreign acquisitions of certain domestic assets we develop a simple model of this phenomenon and test for its relevance in determining international capital flows

energy consumption real income and temporal causality results from a multi country study based on cointegration and error correction modelling techniques abstract unlike previous studies on the causal relationship between energy consumption and economic growth this paper illustrates how the finding of cointegration i e long term equilibrium relationship between these variables may be used in testing granger causality based on the most recent johansen s multivariate cointegration tests preceded by various unit root or non stationarity tests we test for cointegration between total energy consumption and real income of six asian economies india pakistan malaysia singapore indonesia and the philippines non rejection of cointegration between variables rules out granger non causality and imples at least one way of granger causality either unidirectional or bidirectionial secondly by using a dynamic vector error correction model we then analyse the direction of granger causation and hence the within sample granger exogeneity or endogeneity of each of the variables thirdly the relative strength of the causality is gauged through the dynamic variance decomposition technique by decomposing the total impact of an unanticipated shock to each of the variables beyond the sample period into proportions attributable to shocks in the other variables including its own in the bivariate system results based on these tools of methodology indicate that while all pair wise relationships shared common univariate integrational properties only relationships for three countries india pakistan and indonesia were cointegrated for these countries temporal causality results were mixed with unidirectional causality from energy to income for india exactly the reverse for indonesia and mutual causality for pakistan the vdcs were not inconsistent with these results and provided us with an additional insight as to the relatively more dominant direction of causation in pakistan simple bivariate vector autoregressive models for the three non cointegrated systems did not indicate any direction of causality significantly in either direction

energy consumption and gdp causality relationship in g 7 countries and emerging markets abstract the causality relationship between energy consumption and income is a well studied topic in energy economics this paper studies the time series properties of energy consumption and gdp and reexamines the causality relationship between the two series in the top 10 emerging markets excluding china due to lack of data and g 7 countries we discover bi directional causality in argentina causality running from gdp to energy consumption in italy and korea and from energy consumption to gdp in turkey france germany and japan hence energy conservation may harm economic growth in the last four countries

bounds test approach to cointegration and causality between nuclear energy consumption and economic growth in india abstract this paper attempts to examine the dynamic relationship between economic growth nuclear energy consumption labor and capital for india for the period 1969 2006 applying the bounds test approach to cointegration developed by pesaran et al 2001 we find that there was a short and a long run relationship between nuclear energy consumption and economic growth using four long run estimators we also found that nuclear energy consumption has a positive and a statistically significant impact on india s economic growth further applying the toda and yamamoto 1995 approach to granger causality and the variance decomposition approach developed by pesaran and shin 1998 we found a positive and a significant uni directional causality running from nuclear energy consumption to economic growth without feedback this implies that economic growth in india is dependent on nuclear energy consumption where a decrease in nuclear energy consumption may lead to a decrease in real income for a fast growing energy dependent economy this may have far reaching implications for economic growth india s economic growth can be frustrated if energy conservation measures are undertaken without due regard to the negative impact they have on economic growth

agency relationships in family firms theory and evidence does owner management necessarily eliminate the agency costs of ownership drawing on agency literature and on the economic theory of the household we argue that private ownership and owner management expose privately held owner managed firms to agency threats ignored by jensen s and meckling s 1976 agency model private ownership and owner management not only reduce the effectiveness of external control mechanisms they also expose firms to a self control problem created by incentives that cause owners to take actions which harm themselves as well as those around them jensen 1994 p 43 thus shareholders have incentive to invest resources in curbing both managerialand owner opportunism we extend this thesis to the domain of the family firm after developing hypotheses which describe how family dynamics and specifically altruism exacerbate agency problems experienced by these privately held owner managed firms we use data obtained from a large scale survey of family businesses to field test our hypotheses and find evidence which suggests support for our proposed theory finally we discuss the implications of our theory for research on family and other types of privately held owner managed firms

causes and effects of vertical intergration this paper sets out to define new measures of industry average forward and backward integration and incorporate them into an empirical stucture conduct performance model results suggest that integration is encouraged where there are relatively few firms in an industry and if sales are increasing forward integration occurs in reaction to large outgoing distribution margins backward integration acts to increase concentration at least in some parts of the manufacturing sector integratin has a complex and interactive effect on profitability serving sometimes to raise profitability and sometimes to lower it

the causal relationship between energy use and economic growth in switzerland abstract this paper investigates the relationships between energy consumption and economic growth in switzerland over the period 1950 2010 we apply bounds testing techniques to different energy types separately robustness tests are performed by including additional variables and restricting the analysis to the period after 1970 the results show that there exist robust long run relationships going from real gdp toward heating oil and electricity consumption the relationship between heating oil and gdp is in fact bidirectional although weaker from heating oil toward gdp than in the reverse direction when investigating the period 1970 2010 only the estimate of the long run income elasticity of electricity consumption loses statistical significance and that for heating oil becomes negative those results imply a possible decoupling between gdp growth and energy consumption so that energy conservation policies are not necessarily expected to have a negative impact on swiss economic growth

nuclear energy consumption and economic growth in nine developed countries this article attempts to test the causal relationship between nuclear energy consumption and real gdp for nine developed countries for the period 1971 2005 by including capital and labour as additional variables using a modified version of the granger causality test developed by toda and yamamoto 1995 we found a unidirectional causality running from nuclear energy consumption to economic growth in japan netherlands and switzerland the opposite uni directional causality running from economic growth to nuclear energy consumption in canada and sweden and a bi directional causality running between economic growth and nuclear energy consumption in france spain the united kingdom and the united states in spain the united kingdom and the usa increases in nuclear energy consumption caused increases in economic growth implying that conservation measures taken that reduce nuclear energy consumption may negatively affect economic growth in france japan netherlands and switzerland increases in nuclear energy consumption caused decreases in economic growth suggesting that energy conservation measure taken that reduce nuclear energy consumption may help to mitigate the adverse effects of nuclear energy consumption on economic growth in canada and sweden energy conservation measures affecting nuclear energy consumption may not harm economic growth

endogenous competition and strategic foreign investment direct foreign investment exerts a significant influence on domestic market structure in both developed and emerging economics an increased proportion of international commerce now takes the form of intrafirm trade and much of this trade involves foreign sourcing of production by domestic firms firms with such multinational production are also frequently the dominant firms in their domestic markets 1 several rationales exist for foreign investment and production by domestic firms most involve the effects of some inherent asymmetry between rival firms the possession by one firm of some internal advantage such as proprietary knowledge from research expenditures or superior management and marketing techniques could yield a cost advantage related explanations involve firms reacting to foreign entry in their domestic markets by sourcing labour intensive production abroad differential access to foreign subsidy programs the desire to secure access to a foreign market under the expectation of future import barriers sunk costs of entering a market under random fluctuations in the real exchange rate or a desire to hedge real exchange rate risk through diversification of production locations 2 while these explanations are plausible each relies on the existence of exogenous asymmetries between rival firms or on a corporate aversion to risk and imperfections in financial markets this paper offers a novel explanation for direct foreign investment in terms of its strategic value identical and risk neutral firms may engage in direct foreign investment and the timing of this can endogenously determine domestic market structure when uncertainty exists about production costs in a foreign location and the industry producing for the domestic market is concentrated direct foreign investment and production may occur because uncertainty over the relative costs of production at a foreign plant offers a

taxation or regulation looking for a good anti smoking policy abstract this paper investigates the relative ability of two anti smoking policies taxes and regulation in inducing reductions in cigarette consumption and in providing incentives to stop smoking or not to start to our results based on canadian data show that cigarette demand responds to taxes elasticity of 0 28 but not to regulation while the converse is true for the proportion of smokers in the population

electricity consumption and economic growth a time series experience for 17 african countries abstract while the availability of electricity by itself is not a panacea for the economic and social problems facing africa the supply of electricity is nevertheless believed to be a necessary requirement for africa s economic and social development this paper tests the long run and causal relationship between electricity consumption per capita and real gross domestic product gdp per capita for 17 african countries for the period 1971 2001 using a newly developed cointegration test proposed by pesaran et al 2001 and using a modified version of the granger causality test due to toda and yamamoto 1995 the advantage of using these two approaches is that they both avoid the pre testing bias associated with conventional unit root and cointegration tests the empirical evidence shows that there was a long run relationship between electricity consumption per capita and real gdp per capita for only 9 countries and granger causality for only 12 countries for 6 countries there was a positive uni directional causality running from real gdp per capita to electricity consumption per capita an opposite causality for 3 countries and bi directional causality for the remaining 3 countries the result should however be interpreted with care as electricity consumption accounts for less than 4 of total energy consumption in africa and only grid supplied electricity is taken into account

modeling the causal linkages between nuclear energy renewable energy and economic growth in developed and developing countries abstract this article investigates the causal relationship between two types of energy variables and economic growth using dynamic simultaneous equation panel data models for 17 developed and developing countries our results indicate that there is a unidirectional causality running from nuclear consumption to economic growth in belgium and spain while a unidirectional causality running from economic growth to nuclear consumption is supported in bulgaria canada netherlands and sweden a bidirectional relationship appears in argentina brazil france pakistan and the usa while no causality exists in finland hungary india japan switzerland and the u k second the results for the second nexus among renewable energy and economic growth show that there is a unidirectional causality running from renewable consumption to economic growth in hungary india japan netherlands and sweden while there exist a unidirectional running from economic growth to renewable consumption in argentina spain and switzerland a bidirectional relationship is supported in belgium bulgaria canada france pakistan and the usa while no causality exists in brazil finland and switzerland third we find the existence of a bidirectional causality between nuclear consumption and economic and a unidirectional causality running from economic growth to renewable energy consumption for the global panel

causal relationship between energy consumption and gdp revisited the case of korea 1970 1999 abstract causal relationship between energy consumption and economic growth is investigated applying a multivariate model of capital labor energy and gdp usual btu energy aggregate is substituted with a divisia aggregate in an attempt to mitigate aggregation bias to test for granger causality in the presence of cointegration among the variables we employ a vector error correction model rather than a vector autoregressive model empirical results for korea over the period 1970 1999 suggest a long run bidirectional causal relationship between energy and gdp and short run unidirectional causality running from energy to gdp the source of causation in the long run is found to be the error correction terms in both directions

a theory of rational addiction we develop a theory of rational addiction in which rationality means a consistent plan to maximize utility over time strong addiction to a good requires a big effect of past consumption of the good on current consumption such powerful complementarities cause some steady states to be unstable they are an important part of our analysis because even small deviations from the consumption at an unstable steady state can lead to large cumulative rises over time in addictive consumption or to rapid falls in consumption to abstention our theory also implies that cold turkey is used to end strong addictions that addicts often go on binges that addicts respond more to permanent than to temporary changes in prices of addictive goods and that anxiety and tensions can precipitate an addiction

energy and economic growth in the usa a multivariate approach abstract this paper examines the causal relationship between gdp and energy use for the period 1947 90 in the usa the relationship between energy use and economic growth has been examined by both biophysical and neoclassical economists in particular several studies have tested for the presence of a causal relationship in the granger sense between energy use and economic growth however these tests do not allow a direct test of the relative explanatory powers of the neoclassical and biophysical models a multivariate adaptation of the test vector autoregression var does allow such a test a var of gdp energy use capital stock and employment is estimated and granger tests for causal relationships between the variables are carried out although there is no evidence that gross energy use granger causes gdp a measure of final energy use adjusted for changing fuel composition does granger cause gdp

price knowledge in household demand for utility services a household s decision to acquire price knowledge is endogenous in the demand for utility services and may affect elasticities and consumption levels a simultaneous equation model with endogenous switching is developed to evaluate the effects of price knowledge and other sources of heterogeneity results indicate informed households were more responsive to average and marginal price signals informed households also use less water but this is due to heterogeneity rather than price knowledge controlling for heterogeneity price knowledge actually increases monthly water usage the implications of accounting for differences in price knowledge in utility demand modeling and demand management policy are discussed

hyteresis in import prices the beachhead effect this paper shows that temporary real exchange rate fluctuations can have persistent hysteretic effects on trade specifically when market entry costs are sunk sufficiently large exchange rate shocks alter domestic market structure and thereby induce hysteresis this simple result has strong implications for exchange rate theory t rade policy and estimation of trade equations empirical evidence su ggests that the recent dollar overvaluation induced hysteresis in u s import prices namely the aggregate pass through equation of exchange rates to import prices shifted in the 1980s the shift s nature and timing is broadly consistent with the hysteresis hypothesis copyright 1988 by american economic association

autoregressive modelling and money income causality detection abstract a step wise procedure based on granger s concept of causality and abaike s final prediction error criterion is suggested as a practical means to identify the order of lags of each variable in a multivariate autoregressive process the model seems useful because it can serve as a reduced form formulation to avoid imposing often spurious or false restrictions of the model it also provides a reasonably powerful test of causality the idea is applied to u s postwar money and income data it is found that between m1 and gnp a bivariate feedback model fits the data best between m2 and gnp a one way causal model from money to income performs better diagnostic checks applied to our model seem to indicate the adequacy of our approach

rational exuberance at the mall addiction to carrying a credit card balance the becker murphy model of rational addiction is tested with new zealand credit card debt data the results clearly favour the rational addiction model over the myopic backward looking model the estimated short run and long run price elasticities are 0 58 and 2 32 respectively and the estimated rate of time preference is 6 7 per quarter

causal relationship between nuclear energy consumption and economic growth a multi country analysis this paper attempts to investigate the causal relationship between nuclear energy consumption and economic growth using the data from six countries among 20 countries that have used nuclear energy for more than 20 years until 2005 to this end time series techniques including the tests for unit roots co integration and granger causality are employed to argentina france germany korea pakistan and switzerland the main conclusion is that the causal relationship between nuclear energy consumption and economic growth is not uniform across countries in the case of switzerland there exists bi directional causality between nuclear energy consumption and economic growth this means that an increase in nuclear energy consumption directly affects economic growth and that economic growth also stimulates further nuclear energy consumption the uni directional causality runs from economic growth to nuclear energy consumption without any feedback effects in france and pakistan and from nuclear energy to economic growth in korea however any causality between nuclear energy consumption and economic growth in argentina and germany is not detected

a multivariate cointegration analysis of the role of energy in the us macroeconomy abstract this paper extends my previous analysis of the causal relationship of gdp and energy use in the usa in the post war period a majority of the relevant variables are integrated justifying a cointegration analysis the results show that cointegration does occur and that energy input cannot be excluded from the cointegration space the results are plausible in terms of macroeconomic dynamics the results are similar to my previous granger causality results and contradict claims in the literature based on bivariate models that there is no cointegration between energy and output

hysteresis and export targeting abstract a direct and largely untested implication of hysteresis concerns the extent of market entering and leaving in response to large movements in exchange rates this note examines for 359 4 digit u s sic industries data on the distribution of u s exports by country of destination a proxy for the number of markets served from 1978 to 1987 and relates changes in these distributions to overall exchange rate movements we seek to explain differences in the response across industries on the basis of differences in sunk costs the empirical results are generally consistent with the hysteresis approach while in periods of general dollar depreciation firms spread exports more widely across foreign markets this effect is seen to be limited in industries with relatively large distribution and media advertising costs for which much of the costs of establishing export networks may be sunk

motives for private transfers over the life cycle an analytical framework and evidence for peru abstract this paper tests for the motives for private income transfers we consider two motives altruism and exchange the question of private transfer motives is important because such motivation can influence the effects of public income transfers on the distribution of income using a household survey for peru we find that transfer amounts received increase with recipient pre transfer income which contradicts a key prediction of the strong form of the altruism hypothesis but is consistent with exchange we also find that capital market imperfections are likely to be an important cause of private transfers and that social security benefits crowd out the incidence of private transfers

electricity consumption and economic growth evidence from korea abstract this paper investigates the short and long run causality issues between electricity consumption and economic growth in korea by using the co integration and error correction models it employs annual data covering the period 1970 2002 the overall results show that there exists bi directional causality between electricity consumption and economic growth this means that an increase in electricity consumption directly affects economic growth and that economic growth also stimulates further electricity consumption

consumer switching costs and private information abstract we consider a standard model of consumer switching costs with demand uncertainty where firms observe private information about demand given this private information each firm forms beliefs over different demand realizations as well as beliefs over the other firm s information the main result here is that in the first period if firms observe information suggesting that future demand is likely to be high they will price aggressively sacrificing current profits for higher market share and the expectation of higher future profits

oil prices nuclear energy consumption and economic growth new evidence using a heterogeneous panel analysis abstract this paper applies panel data analysis to examine the short run dynamics and long run equilibrium relationships among nuclear energy consumption oil prices oil consumption and economic growth for developed countries covering the period 1971 2006 the panel cointegration results show that in the long run oil prices have a positive impact on nuclear energy consumption suggesting the existence of the substitution relationship between nuclear energy and oil the long run elasticity of nuclear energy with respect to real income is approximately 0 89 and real income has a greater impact on nuclear energy than do oil prices in the long run furthermore the panel causality results find evidence of unidirectional causality running from oil prices and economic growth to nuclear energy consumption in the long run while there is no causality between nuclear energy consumption and economic growth in the short run

a panel study of nuclear energy consumption and economic growth abstract this study examines the relationship between nuclear energy consumption and economic growth for sixteen countries within a multivariate panel framework over the period 1980 2005 pedroni s 1999 2004 heterogeneous panel cointegration test reveals there is a long run equilibrium relationship between real gdp nuclear energy consumption real gross fixed capital formation and the labor force with the respective coefficients positive and statistically significant the results of the panel vector error correction model finds bidirectional causality between nuclear energy consumption and economic growth in the short run while unidirectional causality from nuclear energy consumption to economic growth in the long run thus the results provide support for the feedback hypothesis associated with the relationship between nuclear energy consumption and economic growth

nuclear energy consumption and economic growth in oecd countries cross sectionally dependent heterogeneous panel causality analysis the purpose of this study is to determine the direction causality between nuclear energy consumption and economic growth in oecd countries the empirical model that includes capital and labor force as the control variables is estimated for the panel of fourteen oecd countries during the period 1980 2007 apart from the previous studies in the nuclear energy consumption and economic growth relationship this study utilizes the novel panel causality approach which allows both cross sectional dependency and heterogeneity across countries the findings show that there is no causality between nuclear energy consumption and economic growth in eleven out of fourteen cases supporting the neutrality hypothesis as a sensitivity analysis we also conduct toda yamamoto time series causality method and find out that the results from the panel causality analysis are slightly different than those from the time series causality analysis thereby we can conclude that the choice of statistical tools in analyzing the nature of causality between nuclear energy consumption and economic growth may play a key role for policy implications

structure and performance with profit measures based on stock market prices the theory that there is a causal relationship between industry structure conduct and performance is the fundamental premise in the field of industrial organization the most carefully researched component of that general theory is the hypothesis that increasing industrial concentration will give rise to increasing profits this traditional view is important not only because of its prominence in the academic analysis of industrial markets but also because of its implications for government policy especially antitrust policy the traditional view typically has been tested by treating an accounting based measure of industry profit as the dependent variable with concentration and other structural variables as independent variables within a cross section of manufacturing industries at a given point in time numerous papers have found that concentration has a positive impact on profits the methodology adopted in this paper is different the profit measures are based on stock market prices and are adjusted for risk this is an improvement because accounting methods are so poorly adapted to the measurement of economic profit and because risk may vary with concentration 2 39 another methodological innovation is the choice of time series over cross section analysis the question asked is whether the change over time in each industry s level of concentration had an impact on profits this minimizes the problem of omitted or inaccurately measured independent variables since there should be less change in basic structural characteristics over short time periods within an industry than between industries at a single point in time 2 a second important advantage is freedom from a basic assumption of crosssection studies the assumption that the relationship between concentration and profit is homogeneous across industries if the assumption is invalid empirical results are subject to bias two tests 7 26 have firmly rejected the homogeneity assumption 3

market concentration contestability and sunk costs this paper provides an exploratory assessment of the theory of contestability that is based on a diverse sample of industries and introduces a new important determinant of market concentration the results of the paper indicate that the variables determining the degree of contestability of markets are significant correlates of market concentration sunk costs account for a substantial portion of the sample variance of concentration even after technological factors are controlled for copyright 1990 by mit press

illicit drug use and labour market achievement evidence from the uk this study using data from the british crime survey bcs examines the effect of drug use on occupational achievement it starts by attempting to overcome the identification problem that results from the limited set of drug use questions presented in the bcs taking this into account and allowing for the endogeneity of drug use in equations for unemployment and labour market outcomes that a mild positive association with soft drugs and occupational achievement is observed that diminishes with age this relationship holds for males but not for females in contrast it is also found that past use of hard drugs significantly increases the likelihood of current unemployment although it appears to be unrelated to occupational success conditional on achieving employment

exchange rate pass through when market share matters the authors investigate the pass through from exchange rates to import prices when firms future demands depend on their current market shares they show that profit maximizing foreign firms may either raise or lower their dollar export prices when the dollar appreciates temporarily i e the pass through may be perverse and that current import prices may be more sensitive to expected future exchange rates than to current exchange rates they present evidence that suggests the behavior of expected future exchange rates may provide a clue to the puzzling recent behavior of u s import prices copyright 1989 by american economic association

economic growth and energy consumption revisited evidence from linear and nonlinear granger causality the relationship between energy consumption and economic growth is considered as an imperative issue in energy economics previous studies have ignored the nonlinear behavior which could be caused by structural breaks in this study both linear and nonlinear granger causality tests are applied to examine the causal relationship between energy consumption and economic growth for a sample of asian newly industrialized countries as well as the u s this study finds evidence supporting a neutrality hypothesis for the united states thailand and south korea however empirical evidence on philippines and singapore reveals a unidirectional causality running from economic growth to energy consumption while energy consumption may have affected economic growth for taiwan hong kong malaysia and indonesia policy implications are also discussed

nuclear energy consumption commercial energy consumption and economic growth in south asia bootstrap panel causality test abstract the objective of the study is to investigate the causal relationship among nuclear energy consumption commercial energy consumption i e oil consumption gas consumption electricity consumption and coal consumption and economic growth in south asian countries namely afghanistan bangladesh bhutan india maldives nepal pakistan and sri lanka over the period of 1975 to 2010 data is analyzed by bootstrap panel granger causality method the results reveal that nuclear energy consumption granger causes economic growth in nepal and pakistan while commercial energy consumption i e oil consumption granger causes economic growth in bangladesh bhutan maldives nepal and srilanka gas consumption granger causes economic growth in bangladesh bhutan india and maldives electricity consumption granger causes economic growth in india and srilanka finally coal consumption granger causes economic growth in bangladesh bhutan nepal and srilanka on the other side economic growth granger causes nuclear energy consumption in pakistan economic growth granger causes oil consumption in bhutan maldives and srilanka economic growth granger causes gas consumption in nepal srilanka and pakistan finally economic growth granger causes electricity consumption economic growth granger causes coal consumption in all south asian countries the findings show that the nature of causality between nuclear energy consumption economic growth and commercial energy consumption economic growth is in favor of the neutrality hypothesis in most of the countries

nuclear energy consumption oil consumption and economic growth in g 6 countries bootstrap panel causality test abstract this study applies bootstrap panel granger causality to test whether energy consumption promotes economic growth using data from g 6 countries over the period of 1971 2010 both nuclear and oil consumption data are used in this study regarding the nuclear consumption economic growth nexus nuclear consumption causes economic growth in japan the uk and the us economic growth causes nuclear consumption in the us nuclear consumption and economic growth show no causal relation in canada france and germany regarding oil consumption economic growth nexus we find that there is one way causality from economic growth to oil consumption only in the us and that oil consumption does not granger cause economic growth in g 6 countries except germany and japan our results have important policy implications for the g 6 countries within the context of economic development

an international literature survey on energy economic growth nexus evidence from country specific studies in this paper an extensive review of the rapidly growing in the literature on the nexus between economic growth and four types of energy consumption total energy consumption electricity consumption nuclear consumption and renewable consumption the various hypotheses associated with the causal interaction between these variables along with a survey of the empirical literature are also discussed the survey focuses on country coverage periods modeling techniques and empirical conclusions a general observation from these studies that results are found to be sensitive to methodology and type of energy considered the empirical results for the specific countries surveyed show that i for energy consumption growth nexus 29 supported the growth hypothesis 27 the feedback hypothesis 23 the conservation hypothesis and 21 the neutrality hypothesis ii for the electricity consumption growth nexus 40 supported the growth hypothesis 33 the feedback hypothesis and 27 conservation hypothesis iii for the nuclear consumption growth nexus 60 supported the neutrality hypothesis and 40 the growth hypothesis and iv for the renewable consumption growth nexus 40 supported the neutrality hypothesis 40 the conservation hypothesis and 20 the growth hypothesis these mixed results may be attributed to the different used data selected variables and econometric approaches undertaken

literature survey on the relationships between energy environment and economic growth abstract the aim of this study is to exhibit an exhaustive survey which is related to the great flight of the literature of energy environment growth nexus at the individual and regional scale studies covering the period from 1978 to 2014 the survey takes into consideration the sample country region etc periods covering econometric strategies and conclusions our survey is based on the causality direction among i the energy use variables electricity nuclear renewable and non renewable and output growth ii between economic growth and environment and between the three variables at the same time globally these surveys provide paradoxical and not conclusive results which energy consumption can boost economic growth through the productivity enhancement and it can boost also the environmental damages through the enhancement of pollutant emissions our survey sheds more the lights on the energy environment growth literature by giving an extensive listing 1978 2014 of these causal linkages among the energy use variables environment and economic growth for both individual and collective cases there is a unanimous consensus about the importance of dealing with such dynamic relationship which is seems to be a cornerstone element in setting any ambition strategies energy ecological and economics

electricity generation mix and economic growth what role is being played by nuclear sources and carbon dioxide emissions in france abstract the gradual trend towards the electrification of economies has raised new challenges focusing on france this paper uses monthly data from january 2010 to november 2014 to study the challenge of the simultaneous integration of various sources of generation and their relationship with economic growth for the analysis of the dynamics of interaction between electricity sources the auto regressive distributed lag ardl bounds test approach was shown to be appropriate as it allows short and long run effects to be distinguished the results showed that nuclear energy has been a huge driver of economic growth in france and at the same time leads to an environment with lower co 2 emissions renewables were shown to exert a negative effect on economic growth which could be due to lack of investment in other sources of production due to the resilient position held by nuclear sources the substitution effect among sources is noticeable the robustness of the results was checked using annual data from 1970 until 2012 and the results were comparable to those from the monthly data

rational habit formation abstract this paper discusses consumer demand under rational habit formation if consumer tastes change endogenously through habit stocks depending on past consumption the rational consumer will make allowance of the future habit forming effects of current consumption a model with rational habit formation is made formally equivalent to an intertemporal consumer model without habit formation by redefining the cost of consumption and wealth the cost of consumption is obtained by adding the cost of future induced consumption to the rental price of the commodity the extended wealth concept is obtained by subtracting the cost of the initial stocks of habits and the cost of future physically necessary consumption from wealth the paper also investigates the implication of rational habit formation for constructing one period cost of living indices

the duration of the smoking habit i introduction most smokers smoke out of habit once the habit is ended many of smoking s most harmful effects decline rather quickly preventing and ending cigarette addiction is therefore the straightest path toward preventing the health damage done by cigarette smoking consequently the related questions of why people start smoking and why they quit are central to formulating and evaluating effective antismoking policies duration or hazard models are designed to measure the probability of transition between states and are thus ideal for investigating the structural determinants of the transition between addiction and non addiction nevertheless most previous work in the economics literature uses the aggregate smoking participation rate defined as the percentage of people who currently smoke or an individual s probability of participation rather than a hazard rate to measure the attractiveness of habitual smoking this paper models the hazard rates of both starting and quitting the cigarette smoking habit the starting hazard rate is the probability that an individual will start smoking in a given time period conditional on being a nonsmoker until then the quitting hazard rate is the probability of quitting smoking in a given time period conditional on being a smoker since the starting date both of these rates should rise and fall in response to changes in the attractiveness of smoking the two rates will respond differently to different stimuli since the starting hazard reflects the point of view of nonsmokers and the quitting hazard reflects the point of view of smokers hazard or duration models possess several advantages over smoking participation models most obviously smoking participation rates cannot directly distinguish between increased starting rates and decreased quitting rates but the hazard models can also in a participation rate model it is difficult to control for the effect of the duration of the habit whereas duration models are designed specifically to allow for and measure the dependence of the hazard rate on duration another advantage is that the participation rate at any one time will oversample the number of long term smokers relative to those who had a short term habit whereas a duration model is designed to avoid this source of bias one drawback however is that because of their inherent panel nature the data requirements of duration models are somewhat more difficult to satisfy as shall be seen the only previous work in the economics literature that estimates the hazard rate of starting smoking is douglas and hariharan 1994 my paper improves upon douglas and hariharan in at least three important ways first it estimates the hazard rate of quitting smoking as well as that of starting second it takes into account variation in state level regulation third its time varying covariate model allows hazard rates to respond dynamically to changes in cigarette price regulation and information variables the use of time varying covariates is important because it brings the empirical model into much closer accord with theory the decision whether or not to start or quit smoking is an ongoing decision made one day at a time on the basis of current information the hazard of starting is greatest when the cost of the habit appears lowest and its benefit appears highest this comparison of cost and benefit changes through time as price information income and life cycle variables change while douglas and hariharan 1994 used price information from the potential smoker s most vulnerable age on the theory that its marginal effect is greatest at that time the model used in this paper allows each individual s hazard rate to respond to changes in price and public information as they occur the leading theoretical model of the decision to smoke is the rational addiction model of becker and murphy 1988 which assumes that consumers of addictive goods begin smoking only after fully weighing the costs and benefits of the habit

regime dependent causality relationship between energy consumption and gdp growth evidence from oecd countries this study empirically investigates the energy consumption gdp growth nexus for the period from 1971 to 2016 for 26 oecd countries the prevailing studies in the literature use limited econometric

perverse consequences of the gatt export subsidies and switching costs gatt permits its members to retaliate against unfair trade practices committed by its signatories however gatt imposes requirements on this retaliation these include establishing injury to the pertinent industry in the offended country requiring that the unfair practice be currently in existence and mandating that duties not exceed the dumping or subsidy margin because the injury requirement gives the foreign government a period lead in introducing the export subsidy the home government is unable to completely restore the competitive balance when switching costs are present because of these restrictions thus gatt may induce the behavior that it seeks to deter copyright 1996 by the london school of economics and political science

exchange rate pass through for strategic pricing and advertising abstract this paper builds a model in the new empirical industrial organization framework bresnahan t 1989 industries and market power in schmalensee r willig r eds handbook of industrial organization north holland amsterdam to estimate exchange rate pass through in price and advertising price cost margins market structure and firm conduct are estimated endogenously allowing for precise estimation of the degree of and reasons for incomplete pass through i demonstrate that price and advertising pass through are functions of demand cost and market conduct in the short run in the long run the market conduct and cost technologies are in turn determined by the exchange rate movements 1997 elsevier science b v

alcoholism work and income this article reports on an empirical analysis of the relationships between alcoholism and income and working we show that the relationships between alcoholism and labor market success have important age or life cycle dimensions we present evidence that alcoholism may affect income more by restricting labor market participation than by affecting the wages of workers finally we demonstrate that the effects of alcoholism on earnings depend on the extent to which one controls for other covariates associated with alcoholism as such we suggest that there may be important indirect as well as direct effects of alcoholism on labor market success

employment wages and alcohol consumption in russia 1 introductionconcerns regarding the relationship between alcohol consumption and labor market productivity are well grounded if problem drinking or alcoholism is considered a disease then it may have depressant effects on labor market productivity causing reductions in employment earnings and other labor market outcomes mullahy and sindelar 1993 1996 kenkel and ribar 1994 however there is a medical literature that documents a u shaped relationship between alcohol consumption and the risk of cardiovascular disease according to this literature moderate drinkers have a lower risk of cardiovascular disease than do either abstainers or heavy drinkers beaglehole and jackson 1992 doll et al 1994 consistent with this evidence several economists have found a positive association between moderate drinking and earnings berger and leigh 1988 french and zarkin 1995 heien 1996 hamilton and hamilton 1997 zarkin et al 1998 macdonald and shields 2001 this article investigates the impact of alcohol consumption on employment and wages in russia the primary contributions of the article are twofold first it enhances the economic literature on the relationship between alcohol consumption and labor market behavior by using data from a longitudinal survey the use of a longitudinal data set enables the estimation of a fixed effects model which helps avoid the potential bias caused by unobserved individual factors not captured in cross sectional models the use of a fixed effects model is an important extension to the literature because the data sets used in previous studies are cross sectional and usually lack adequate variables that could serve as identifying instruments to control for the endogeneity of alcohol consumption 1 furthermore the richness of the data set used in this article allows for the application of three alternative measures of alcohol consumption in the empirical analysis this is important because the relationship between alcohol consumption and labor market outcomes may be sensitive to the alcohol measure that is used the second notable contribution of this article is that it provides the first empirical evidence on the association between alcohol consumption and labor market outcomes in russia excessive alcohol consumption is a widespread problem in russia where per capita alcohol consumption is around 14 liters per year the world health organization who considers 8 liters to be a sign that a country has a critical consumption level for health problems quinn judge 1997 furthermore the dramatic fluctuations in mortality rates experienced in russia over the past 15 years have generated considerable attention to the potential effect of alcohol consumption on the overall health of the russian population it is important to investigate how labor market outcomes would be affected by alcohol consumption in a country which demonstrates such dramatic fluctuations in alcohol consumption and mortality consistent with the previous studies cross sectional results generally support the hypothesis of an inverse u shaped relationship between alcohol consumption and wages and employment results from the fixed effect models are found to be quite different from those of cross sectional models the positive effect of alcohol consumption on employment disappears for both males and females once the individual fixed effects are controlled for the results of the wage model lend support to a small and linear return to alcohol consumption but the effects are significant only at the 10 level the fixed effects estimates are smaller in magnitude and estimated with less precision compared with cross sectional estimates section 2 reviews the previous literature section 3 discusses the conceptual issues and empirical strategy section 4 introduces the data set section 5 provides a discussion of the results and sensitivity analyses section 6 concludes the article

nuclear energy consumption oil prices and economic growth evidence from highly industrialized countries this study utilizes the johansen cointegration technique the granger non causality test of toda and yamamoto 1995 the generalized impulse response function and the generalized forecast error variance decomposition to examine the dynamic interrelationship among nuclear energy consumption real oil price oil consumption and real income in six highly industrialized countries for the period 1965 2008 our empirical results indicate that the relationships between nuclear energy consumption and oil are as substitutes in the u s and canada while they are complementary in france japan and the u k second the long run income elasticity of nuclear energy is larger than one indicating that nuclear energy is a luxury good third the results of the granger causality test find evidence of unidirectional causality running from real income to nuclear energy consumption in japan a bidirectional relationship appears in canada germany and the u k while no causality exists in france and the u s we also find evidence of causality running from real oil price to nuclear energy consumption except for the u s and causality running from oil consumption to nuclear energy consumption in canada japan and the u k suggesting that changes in price and consumption of oil influence nuclear energy consumption finally the results observe transitory initial impacts of innovations in real income and oil consumption on nuclear energy consumption in the long run the impact of real oil price is relatively larger compared with that of real income on nuclear energy consumption in canada germany japan and the u s

on the existence of balanced growth equilibrium the authors characterize the class of dynamic models that allow for the most commonly used types of sustained economic growth balanced and asymptotically balanced they show that under a constant returns to scale technology asymptotically constant discount rate and asymptotically constant elasticity of marginal felicity are not only necessary but also sufficient conditions for the existence of a n asymptotically balanced growth equilibrium path the authors provide examples of recursive utility models that accept a n asymptotically balanced growth equilibrium and discuss their implications on cross country differences in growth rates as well as on savings behavior and wealth distribution copyright 1997 by economics department of the university of pennsylvania and the osaka university institute of social and economic research association

a literature survey on energy growth nexus abstract this paper provides a survey of the recent progress in the literature of energy consumption economic growth and electricity consumption economic growth causality nexus the survey highlights that most empirical studies focus on either testing the role of energy electricity in stimulating economic growth or examining the direction of causality between these two variables although the positive role of energy on growth has become a stylized fact there are some methodological reservations about the results from these empirical studies a general observation from these studies is that the literature produced conflicting results and there is no consensus neither on the existence nor on the direction of causality between energy consumption electricity consumption and economic growth as a policy implication to avoid from conflicting and unreliable results the authors may use the autoregressive distributed lags bounds test two regime threshold co integration models panel data approach and multivariate models including new variables such as real gross fixed capital formation labor force carbon dioxide emissions population exchange rates interest rates etc thus the authors should focus more on the new approaches and perspectives rather than by employing usual methods based on a set of common variables for different countries and different intervals of time