valuation of dynamic reactive power support services for transmission access competitive procurement of reactive power support services is rapidly becoming a reality for deregulated electricity markets it has resulted in a great need to quantify the value of reactive power support from var sources this article presents research results on the development of new concepts and schemes for equitable reactive power support valuation performance characteristics of the proposed method are determined and practical application issues are addressed the validity of the method is verified through sensitivity studies this work emphasizes that the valuation of reactive power support services should be based on their contributions to system security and stability the dynamic var is the primary concern for the reactive power valuation problem

pricing for system security power tariffs security in power systems refers to the ability of the system to withstand imminent disturbances contingencies maintaining security is an issue which must be addressed at the system level it is shown in this paper however that it is possible to maintain power system security in an operating environment with many participants power companies independent power producers co generators consumers each attempting to optimize their own benefit through pricing incentives and appropriate information exchange rates for power generation consumption and for an offer to use during a contingency as well as information on the probability distribution of contingency need for each participant are derived so that individual optimization will lead to the socially optimal solution in which power system security is optimized and the aggregate benefit is maximized

social polarisation and socioeconomic segregation in a welfare state the case of oslo this paper looks at the competing theses of polarising convergence and policy related divergence in the study of socioeconomic segregation using data from oslo norway it is shown that the level of segregation has remained fairly stable or has even declined in spite of increasing income inequality this spatial stabilisation is causally related to a more flexible design in city planning and policy it is however not a development in accordance with the welfare state approach proposed by chris hamnett and some other scholars rather we observe a perverse effect where social democracy has been helped by opposition policies in consequence the paper suggests the use of models of action and the identification of closed and open processes of change

determination of network rental components in a competitive electricity market the locational marginal pricing lmp based settlement results in a surplus collected by the system operator from the consumers the nonlinear transmission losses and the constrained operation of the power system due to operating limits such as power flow limits on transmission lines cause the accumulation of this surplus this accumulated revenue referred to as the network rental in this paper has two main components loss rental and constraint rental this paper develops a method to calculate these different rental components paid by each consumer by combining the power flow tracing and kkt optimality conditions this yields quantitative determination of how each consumer has overpaid in the form of loss rental and constraint rental which in turn can be used to get a better insight of how the rental is accumulated simple three and four bus systems are used to demonstrate the proposed method

on the equilibrium properties of locational sorting models abstract important to many models of location choice is the role of local interactions or spillovers whereby the payoffs from choosing a location depend in part on the number or attributes of other individuals or firms that choose the same or nearby locations in equilibrium this paper develops the equilibrium properties of a broadly applicable and readily estimable class of sorting models that allow location decisions to depend on both fixed local attributes including unobserved attributes and local interactions describes the conditions under which equilibria exist and are unique and provides a test for uniqueness in empirical analyses of sorting equilibrium

transmission access and pricing with multiple separate energy forward markets california s congestion management protocols provide comparable access and prices to all users of the transmission system power exchange and bilateral contract parties the users implicitly bid for capacity on major transmission paths between zones the independent system operator iso allocates the available transmission capacity on these paths so that it maximizes the value of this capacity as measured by the users bids everyone scheduling flow on a congested path is charged the marginal cost based price for using the path the iso keeps each party s portfolio of generation and load individually in balance when adjusting schedules to relieve congestion on interzonal paths by keeping the portfolios of the different parties separate the iso clears its transmission market without arranging energy trades between parties parties are responsible for arranging their own trades the iso does not become involved in the energy forward markets

using maimonides rule to estimate the effect of class size on scholastic achievement the twelfth century rabbinic scholar maimonides proposed a maximum class size of 40 this same maximum induces a nonlinear and nonmonotonic relationship between grade enrollment and class size in israeli public schools today maimonides rule of 40 is used here to construct instrumental variables estimates of effects of class size on test scores the resulting identiecation strategy can be viewed as an application of donald campbell s regression discontinuity design to the class size question the estimates show that reducing class size induces a signiecant and substantial increase in test scores for fourth and efth graders although not for third graders when asked about their views on class size in surveys parents and teachers generally report that they prefer smaller classes this may be because those involved with teaching believe that smaller classes promote student learning or simply because smaller classes offer a more pleasant environment for the pupils and teachers who are in them mueller chase and walden 1988 social scientists and school administrators also have a longstanding interest in the class size question class size is often thought to be easier to manipulate than other school inputs and it is a variable at the heart of policy debates on school quality and the allocation of school resources in many countries see e g robinson 1990 for the united states ofsted 1995 for the united kingdom and moshel ravid 1995 for israel this broad interest in the consequences of changing class size

the social ecology of the post fordist global city economic restructuring and socio spatial polarisation in the toronto urban region numerous authors have asserted that globalisation and occupational changes associated with post fordist economic restructuring have led to a growth in intraurban social disparity and even polarisat

competitive procurement of ancillary services by an independent system operator this paper discusses the competitive procurement of ancillary services by an independent system operator iso the paper assumes the existence of an underlying market for energy and explains why this energy market must be accompanied by a market for ancillary services these services include operating reserves and automatic generation control agc both of which may require generators that are infra marginal in the energy market to choose between supplying energy or ancillary services the paper discusses the design of an auction for these services that has formed the basis for the california iso s ancillary services market the paper also discusses the real time dispatch of ancillary services

sources of stagnation in sub saharan africa abstract this paper investigates the sources of economic stagnation in sub saharan africa during the 1970s several policy variables are considered as well as a set of environmental variables which include climate violence export prices and other exogenous factors the paper uses statistical analysis in an attempt to identify the relative importance of the policy variables and the environmental variables taken as groups it also seeks to identify particular policy variables which seem to have been most significant in determining growth outcomes the technique employed for investigation is reduced form econometric estimation in a preliminary analysis the impact of the international trade environment on average economic performance in africa during the period since independence is investigated the results suggest an extremely close relationship between movements in export prices and average performance throughout the 20 year period a second econometric exercise investigates the joint impacts of environmental and policy variables on growth in a cross section of african states since 1970 the spirit of the approach is exploratory and a relatively large number of variables are constructed and tested through multivariate analysis a primary finding is that the environmental variables seem to have had more impact on growth as a group than the policy variables this finding must be qualified however by the continuing lack of some important policy variables agricultural price data have not yet become available in sufficient quantity for cross section analysis nor have several important human resource variables and indices of the use of resources in the public domain among the policy variables which have been used for the analysis those identified with retrenchment during periods of declining commodity prices seem most significant primary among these are the real effective exchange rate and some measures of effectiveness in foreign exchange reallocation during periods when imports must contract severely in the final section of the paper the cross section results are used for a counterfactual analysis of the growth experiences of individual african states measures of growth opportunity cost are constructed which suggest the degree to which errors in management and uncontrollable circumstances have held states below their potential growth paths the results suggest that some success stories may owe much to good luck while some failures may well be due less to bad management than to adverse circumstances

security of electricity supply at the generation level problem analysis abstract since the very beginning of the restructuring process back in 1982 in chile the ability of an electricity market to provide the system with the required level of security of supply has been put into question the mistrust on the ability of the market left to its own devices to provide sufficient generation availability when needed is more and more leading to the implementation of additional regulatory mechanisms this matter is undoubtedly gaining importance and it has taken a key role in the energy regulators agendas in this paper we revisit this discussion under the light of thirty years of electricity market experience we analyze the different reasons why although ideally the market is supposed to provide itself an adequate security of supply at the generation level this result is still far from being achieved in practice

a multinomial choice model of neighborhood effects this paper provides a model of individual decisionmaking in the presence of neighborhood effects by neighborhood effects we refer to interdependencies between individual decisions and the decisions and characteristics of others within a common neighborhood as such neighborhood effects are forms of social interactions in fact the terms would seem to be interchangeable in many contexts within economics there has developed an increasing recognition that neighborhood effects play a possibly major role in explaining a range of individual behaviors rich empirical and theoretical literatures have developed a failing of much of this work is the absence of strong connections between theory and empirics this paper addresses this limitation by providing a model of multinomial choice with neighborhood effects the model represents a generalization of the binary choice model of william brock and steven durlauf 2001a b the model is econometrically implementable and so has the potential of allowing for structural estimation of neighborhood effects section i outlines a basic choice model with neighborhood effects section ii specializes the structure using a multinomial logit framework section iii considers econometric implementation section iv discusses some limitations of the framework and proposes some research directions proofs of all theorems may be found in brock and durlauf 2001c

why aren t countries rich weak states and bad neighbourhoods this article challenges a common viewpoint that the policy choices made by state leaders are central to explanations of economic growth it argues that there are two possible flaws in this viewpoint first that state leaders have a free choice in policy decisions second that it is policies that in large part determine growth rates using a set of variables designed to capture the weakness of the policy autonomy of the state and possible non policy influences on growth rates the article concludes that initial conditions are a better determinant of wealth and growth than free policy choice

estimating ethnic preferences using ethnic housing quotas in singapore there are many policies around the world aimed at integrating groups gender ethnic national in education employment immigration and housing in the case of housing since prices may not internalize externalities in residential location choices we need to know preferences for welfare analysis this paper estimates people s taste for living with own ethnic groups ethnic preferences using unique policy variation from the ethnic housing quotas in singapore my approach combines policy induced variation commonly used in reduced form settings with a non parametric identi cation strategy in a structural demand estimation framework a la berry levinsohn and pakes 1995 i nd that all groups have strong preferences to live with at least some other

financial storage rights should energy storage buy and sell power at wholesale prices like utilities and generators or should its physical and financial operation be asynchronyous as with transmission lines in the first case storage straightforwardly profits through intertemporal arbitrage also known as load shifting and peak shaving in this paper the latter case referred to as passive storage is examined because passive storage does not make nodal price transactions new mechanisms are necessary for its integration into electricity markets this issue is addressed by further developing the analogy between energy storage and transmission specifically financial rights are defined for storage and tracing is extended to multiperiod power flows linked by storage like flowgate transmission rights the new financial storage rights redistribute the system operator s merchandising surplus and enable risk averse market participants to hedge against nodal price volatility resulting from storage congestion simple examples are given demonstrating the implementation of the new mechanisms game theoretic analysis suggests that financial storage rights mitigate gaming when both the generator and load bid strategically

advanced pricing in electrical systems i theory this paper sets forth a comprehensive theory for the real time pricing of electricity that includes selected ancillary services and extends the theory to incorporate constraints on power quality and environment impact that often influence the operation of a power system this paper is part i of a two paper set it sets forth the mathematical development of the extended model for real time pricing the formulation is novel in that it combines the dynamic equations for load frequency control with the static equations of a constrained optimal power flow part ii derives optimal nodal specific real time prices for both real and reactive power the prices derived include additive premia or opportunity costs reflecting the effects of voltage regulation maintenance of generation and transmission reserves regulation of frequency and tie line flows removal and or control of power harmonics and others

trade liberalisation and the poverty of nations a review article trade liberalisation and the poverty of nations a p thirlwall and penelope pacheco lopez cheltenham edward elgar 2009 pp 264 59 95 and 19 95 isbn 978 1 84720 822 4 and 978 1 84844 814 8 th

the quest for a balanced ethnic mix singapore s ethnic quota policy examined to achieve a balanced ethnic mix singapore has implemented an ethnic quota policy on public housing since 1 march 1989 with 86 per cent of the population living in public housing this policy has immense repercussions on the configuration of the ethnic residential landscape this article examines the impact of the quota policy on the buying and renting as well as the selling or letting of public housing the differential response by the various ethnic groups is revealed the policy per se may not achieve its intended impact and may ironically have the least impact on the group it was most intended for integration policies must be more holistic in approach and more sympathetic in execution

the shocking origins of political transitions evidence from earthquakes do earthquakes trigger political transitions using a rich panel dataset of 160 countries observed over 1950 2007 we find that earthquake shocks measured in terms of the effect of ground motion amplitude on death toll have two contradicting effects on political change on the one hand earthquakes drive transitions into democracy due to an affective shock which we interpret to be the reaction of citizens by which they hold the incumbent government responsible for earthquake damages on the other hand earthquakes indirectly hasten transitions into a less democratic regime because they increase the income level contemporaneously possibly due to short term emergency response and recovery expenditures and thus raising the opportunity cost of contesting the incumbent government overall we show that while not leading to a full fledged regime transition earthquake shocks open a new democratic window of opportunity but this window is narrowed by improved economic conditions

reliability differentiated pricing of spinning reserve this paper derives the spinning reserve pricing policy implied by the reliability differentiated pricing model and illustrates the importance of such a pricing policy the purchase of additional spinning reserve capacity at the prices derived leads to benefits for the customers through reduced real and reactive power prices and improved reliability of the power system and for the power system as a whole through reduced societal costs and less investment in system reinforcements the magnitudes and behavior of the optimal prices for real and reactive spinning reserve are illustrated in two case studies one case study determines reliability differentiated prices of real and reactive power for a sample four area power system with and without spinning reserve purchase and the optimal purchase prices for both real and reactive power spinning reserve capacities the results of this case study show that when reliability differentiated pricing is extended to both real and reactive power reserve it leads to benefits for customers and the power system as a whole a second case study examines the locational dependence of optimal prices for real and reactive reserves on the operating status of equipment in the 24 bus ieee reliability test system it is concluded that even small amounts of reliable reserve capacity purchase from neighboring electric utilities can improve the reliability of the power system and lower expected real and reactive power prices leading to gains in social welfare

ethnic enclaves and immigrant labor market outcomes quasi experimental evidence i examine the effects of the ethnic enclave size on labor market outcomes of immigrants i account for ability sorting into enclaves by exploiting a danish spatial dispersal policy under which refugees were randomly dispersed across locations first i find strong evidence that refugees with unfavorable unobserved characteristics self select into ethnic enclaves second a relative standard deviation increase in the ethnic enclave size increases annual earnings by 18 on average irrespective of skill level third further findings are consistent with the explanation that ethnic networks disseminate job information which increases the job worker match quality and thereby the hourly wage rate

real time pricing to assist in load frequency control we study the use of real time prices to assist in the control of frequency and tie line deviations in electric power systems the role of such prices if any would yield the practical limit to the trend in electric power systems of varying prices on ever faster time scales the application of prices in electric power systems to increase the efficient use of resources is an established technique the pricing schemes can be classified by time scales energy adjustment charges vary seasonally or monthly while time of day rates vary two or three times per day the power brokering system of 18 florida utilities operates on an hourly time scale in a spot price market of buyers and sellers of electric power prices adapt to system operation conditions such as changes in system lambda the effect of generation shortages and the effect of line overloads the fastest spot price that has been implemented to date is 30 minutes most implementations involve 1 hour time steps which may be prespecified 24 hours in advance on a five minute time scale is system lambda a shadow price used internally by electric utilities for economic dispatch a key assumption of spot pricing and economic dispatch is that the power system is in quasi steady state i e power system dynamics involving frequency voltage etc are ignored and only kirchoff s laws for network are considered the paper explores pricing at time scales where the quasi steady state assumption is no longer valid

simultaneous service allocation by average sensitivity method ancillary services and other interconnected services are important especially in a competitive operation environment since these services are costs related they should be allocated in order to send the correct price signal to market participants an average sensitivity method is proposed for allocating services to simultaneous transactions it can provide results close to power flow based methods while requiring as little computational time as traditional sensitivity based approaches except for rare cases it satisfies the requirement of allocation quantity allocation ratio and application feasibility test results indicate that the average sensitivity method is a successful allocation algorithm

estimating neighborhood choice models lessons from a housing assistance experiment we use data from a housing assistance experiment to estimate a model of neighborhood choice the experimental variation effectively randomizes the rents which households face and helps identify a key structural parameter access to two randomly selected treatment groups and a control group allows for out of sample validation of the model we simulate the effects of changing the subsidy use constraints implemented in the actual experiment we find that restricting subsidies to even lower poverty neighborhoods would substantially reduce take up and actually increase average exposure to poverty furthermore adding restrictions based on neighborhood racial composition would not change average exposure to either race or poverty jel i32 i38 r23 r38

locational marginal price sensitivities within an optimal power flow market clearing framework this paper provides expressions to compute the sensitivities of locational marginal prices with respect to power demands sensitivities with respect to other parameters can also be obtained an example and a case study are used to illustrate the expressions derived

what do we know about economic growth or why don t we know very much summary the last 10 years has seen an explosion in cross country econometric studies of growth driven by two factors new mathematical models of the growth process that lend themselves to econometric testing and new data sets that make such testing possible this paper looks at a selective review of these studies it concludes that the results are disappointing in that no model has proven robust to trial by repeated regression the paper suggests some reasons for this including that the tested models tend to be ahistorical and over simple in terms of their causal accounts it concludes with possible lessons for econometric work in this area 2000 elsevier science ltd all rights reserved

interpreting the tariff growth correlation of the late 19th century immediately following world war ii many economists believed that a trade policy based on import substitution would best promote economic development subsequent experience instead revealed the costs of protectionism anne 0 krueger 1997 in the late 19th century as well many political economists such as friedrich list advocated import tariffs to promote the growth of domestic manufacturing in countries that were behind the industrial leader then the united kingdom unlike the recent period however the late 19th century experience is often interpreted as confirming the wisdom of import substitution recent work by kevin h o rourke 2000 and michael a clemens and jeffrey g williamson 2001 has strengthened this impression by finding a positive correlation between import tariffs and economic growth across countries from 1875 to 1914 such a correlation does not establish a causal relationship between tariffs and growth but it is tempting to view the correlation as constituting evidence that protectionist or inward oriented trade strategies were successful during this period this paper argues that such a conclusion is unwarranted and that the tariff growth correlation should be interpreted with great care first several individual country experiences in the late 19th century are not consistent with the view that import substitution promoted growth for example the two most rapidly expanding high tariff countries of the period argentina and canada grew because capital imports helped stimulate export led growth in agriculturalstaples products not because of protectionist trade policies second most land abundant countries such as argentina and canada imposed high tariffs to raise government revenue and revenue tariffs have a different structure than protective tariffs the fact that labor scarce land abundant countries had a high potential for growth and also tended to impose high revenue generating tariffs confounds the inference that high tariffs were responsible for their strong economic performance during this period

running a more complete market with the slp iv acopf the acopf is at the core of competitive electricity market design it is the only ac based algorithm that simultaneously co optimizes real and reactive power dispatch for steady state operations on ac power systems in practice independent system operators isos oversimplify the physical problem and settle the markets on locational marginal price lmps based on real power but do not price reactive power dispatch or voltage control this work proposes a market dispatch and pricing procedure based on the acopf to provide a more complete pricing mechanism we formulate the dual problem of the slp iv acopf as shown in 1 which is a successive linear program shown to solve the acopf to an acceptable quality of convergence to a best known solution with linear scaling of computational time in proportion to network size therefore the dual problem is also a linear program as a result the marginal value pricing of the optimal solution to the dual problem supports the market dispatch due to strong duality i e this solution technique results in a revenue adequate and more complete market design furthermore we show how to distribute the complete real time market settlements the analysis includes a direct comparison to dcopf based approaches similar to those applied in current iso markets

components of nodal prices for electric power systems a method is presented to provide a detailed description of each nodal price for electric power systems by breaking down each nodal price into a variety of parts corresponding to the concerned factors such as generations transmission congestion voltage limitations and other constraints or elements this complete information for nodal prices can be used not only to improve the efficient usage of power grid and congestion management but also to design a reasonable pricing structure of power systems or to provide economic signals for generation or transmission investment several numerical examples demonstrate this approach

socio tenurial polarization in the united kingdom 1953 83 the income evidence family expenditure survey data show a widening gap between the incomes of households in different tenures during the period 1953 to 1983 in particular a major gap has opened up between the two major tenures as the median income of owner occupied households relative to the national average has risen whereas that for local authority tenants has fallen sharply recent years have seen an acceleration of these trends and the local authority sector is now increasingly characterised by those on low incomes

ex post pricing in the co optimized energy and reserve market this paper discusses an alternative to the ex post pricing model currently under development within iso new england s iso ne ancillary service market since iso ne s real time ancillary service market co optimizes both energy and reserve products ex post pricing is needed for both energy and reserve a co optimization approach for ex post pricing requires defining complex pricing rules and implementing heuristics to ensure consistent binding constraints with the ex ante dispatch in order to avoid complexity and uncertainty of required heuristics a new ex post pricing schema is proposed to calculate the ex post energy and reserve prices in a decoupled way while recognizing the coupling effect of energy and reserve in the proposed approach ex post energy prices are first computed by incorporating the ex ante marginal opportunity cost of reserve in the energy offer the ex post reserve prices are then calculated by considering the ex post marginal opportunity cost of energy this approach simplifies the implementation of ex post pricing rules in the iso ne market numerical examples are presented to further demonstrate the validity of this approach

tipping and the dynamics of segregation schelling dynamic models of segregation journal of mathematical sociology 1 1971 143 186 showed that extreme segregation can arise from social interactions in white preferences once the minority share in a neighborhood exceeds a tipping point all the whites leave we use regression discontinuity methods and census tract data from 1970 through 2000 to test for discontinuities in the dynamics of neighborhood racial composition we find strong evidence that white population flows exhibit tipping like behavior in most cities with a distribution of tipping points ranging from 5 to 20 minority share tipping is prevalent both in the suburbs and near existing minority enclaves in contrast to white population flows there is little evidence of nonlinearities in rents or housing prices around the tipping point tipping points are higher in cities where whites have more tolerant racial attitudes

political regimes and economic growth arguments that relate regimes to growth focus on property rights pressures for immediate consumption and the autonomy of dictators while everyone seems to agree that secure property rights foster growth it is controversial whether democracies or dictatorships better secure these rights the main mechanism by which democracy is thought to hinder growth is pressure for immediate consumption which reduces investment only states that are institutionally insulated from such pressures can resist them and democratic states are not the main argument against dictatorships is that authoritarian rulers have no interest in maximizing total output these views are summarized in turn

measuring market power in the ready to eat cereal industry the ready to eat cereal industry is characterized by high concentration high price cost margins large advertising to sales ratios and numerous introductions of new products previous researchers have concluded that the ready to eat cereal industry is a classic example of an industry with nearly collusive pricing behavior and intense nonprice competition this paper empirically examines this conclusion in particular i estimate price cost margins but more importantly i am able empirically to separate these margins into three sources i that which is due to product differentiation ii that which is due to multi product firm pricing and iii that due to potential price collusion the results suggest that given the demand for different brands of cereal the first two effects explain most of the observed price cost margins i conclude that prices in the industry are consistent with noncollusive pricing behavior despite the high price cost margins leading firms are able to maintain a portfolio of differentiated products and influence the perceived product quality it is these two factors that lead to high price cost margins

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

tariffs and growth in the late 19th century the paper estimates the correlation between tariffs and economic growth in the late 19th century in the context of three types of growth equation unconditional convergence equations conditional convergence equations and factor accumulation models it does so for a panel of ten countries between 1875 and 1914 tariffs were positively correlated with growth in these countries during this period economic theory is ambiguous as regards the relationship between trade policy and growth the growth literature of the past decade has produced an impressive array of models in which protection can either increase or reduce long run growth rates grossman and helpman 1991 rivera batiz and romer 1991 stokey 1991 young 1991 such theoretical ambiguity invites empirical research while new growth theory is ambiguous on the subject the new empirical growth literature has produced a consensus that free trade is positively associated with growth based on evidence from the late 20th century but see rodrlguez and rodrik 1999 for a sceptical review of the literature the clear

household location and race estimates of a multinomial logit model a multinomial logit model of household location choice in which families choose from a number of mutually exclusive residential location is estimated regression results indicate that the locational choices of white and black households are importantly but differently affected by their socioeconomic characteristics in that regard black suburbanization patterns are little influenced by large simulated changes in household characteristics findings suggest that policies which focus on the educational and earnings opportunities of blacks would likely be largely ineffectual in fostering the integration of predominantly white suburban communities copyright 1989 by mit press

is australia s home ownership rate really stable an examination of change between 1975 and 1994 australia has exhibited a remarkably stable home ownership rate of 70 per cent for over thee decades however this paper questions whether this rate is sustainable decomposition techniques based on tenure choice models are used to provide evidence of changing homeownership patterns in australia between 1975 and 1994 the results indicate a distinct change in home ownership propensities which is neither uniform across age groups nor uniform for different household types with both the same and with different levels of income a number of tentative explanations are proposed each of which provides the basis for further research on the factors affecting household tenure decisions this is essential if the potential for a significant decline in home ownership is to be seen as a matter of concern

nineteenth century development experience and lessons for today abstract this article reviews the results of a major comparative quantitative study of 19th century economic development and discusses their relevance to today s development policy applying classificatory measures of institutional and economic influences and a novel principal components technique the study demonstrated that institutions were overwhelmingly important to both the pace and structure of economic development but institutions interacted with economic influences very differently in countries at different levels of development and along diverse paths of economic growth in spite of important differences in the international and technological contexts of growth between today and the 19th century fundamental similarities remain now as then government policies determine the nature of market systems property rights and the distribution of assets and thus how far domestic economic growth spreads but favorable impacts of government policies on the structure of economic growth can be expected only where political institutions limit elite control of assets land institutions spread a surplus over subsistence widely and domestic education and skills are well diffused

discrete choice with social interactions this paper provides an analysis of aggregate behavioural outcomes when individual utility exhibits social interaction effects we study generalized logistic models of individual choice which incorporate terms reflecting the desire of individuals to conform to the behaviour of others in an environment of noncooperative decisionmaking laws of large numbers are generated in such environments multiplicity of equilibria in these models which are equivalent to the existence of multiple self consistent means for average choice behaviour will exist when the social interactions exceed a particular threshold local stability of these multiple equilibria is also studied the properties of the noncooperative economy are contrasted with the properties of an economy in which a social planner determines the set of individual choices finally a likelihood function based on the theoretical model is given and conditions for the econometric identifiability of the model are established

the legal environment banks and long run economic growth this paper examines the relationship between the legal system and banlding development and traces this connection through to long run rates of per capita gdp growth capital stock growth and productivity growth the data indicate that countries where the legal system 1 emphasizes creditor rights and 2 rigorously enforces contracts have better developed banks than countries where laws do not give a high priority to creditors and where enforcement is lax furtherrnore the exogenous component of banking development the component defined by the legal environment is positively and robustly associated with per capita growth physical capital accumulation and productivity growth this paper addresses two questions first do crosscountry differences in the legal rights of creditors the efficiency of contract enforcement and the origin of the legal system explain cross country differences in the level of banking development second do better developed banks cause faster economic development that is is the component of banking development defined by the legal environment positively associated with long run rates of economic growth capital accumulation and productivity growth examining the relationship between the legal system and banking development is valuable irrespective of issues associated with long run growth first banks may influence the level of income per capita and the magnitude of cyclical fluctuations bernanke and gertler 1989 1990 second many economists stress that understanding the evolution of legal and financial systems is essential for understanding economic development north 1981 engerman and sokoloff 1996 consequently quantitative information on the relationship between the legal environment and banks will improve our understanding of business cycles and the process of economic development furthermore examining the causal links between banks and economic growth has both conceptual and policy implications on the conceptual front a long literature debates the importance of banks in economic development starting as early as bagehot 1873 economists have argued that better banks banks that are better at identifying creditworthy firms mobilizing savings pooling risks and facilitating transactions

advanced pricing in electrical systems ii implications part i of this paper set forth a mathematical formulation of a model for real time pricing of electricity that included selected ancillary services and extended the theory to incorporate constraints on power quality and environment impact that often influence the operation of a power system derived herein are optimal real time prices for both real and reactive power the optimal prices are temporally and spatially differentiated the prices derived include additive premia or opportunity costs reflecting the effects of voltage regulation maintenance of generation and transmission reserves regulation of frequency and tie line flows removal and or control of power harmonics and others this paper concludes with a discussion of the implications of the optimal prices for pricing of both retail and wholesale services

a penalty scheme for reducing electricity price volatility the deregulation of electric power systems in many parts of the world has changed the mechanism of electricity pricing unlike the fixed price in conventional power systems electricity price varies with time and location in the new deregulated environment electricity prices in a restructured power system can be highly volatile due to the random nature of system failures and demands it is therefore very difficult for the independent system operator iso to control the price and associated risk the high prices beyond control have resulted in significant impacts on customers as well as on system operation this paper proposes a penalty scheme for reducing electricity price volatility caused by failures in generation companies gencos or transmission companies transcos in this scheme gencos and transcos will be penalized if their equipment failures result in unexpected price changes the price decomposition technique is used to evaluate the price components caused by random failures the penalty can be calculated based on the difference of electricity price components between the normal state and the contingency states moreover a simplified schema which is based on profit analysis is also proposed in this paper the proposed penalty scheme not only gives the gencos and transcos an incentive to improve their reliabilities but also provides a flexible tool for the iso to control the system price risk the possible shortcomings of the proposed schema are also specified in the paper the ieee rts is analyzed to illustrate the technique

a reactive power capacity market using annual auctions this paper presents a new approach to design reactive power capacity markets under this approach annual auctions to procure reactive power capacity are conducted by the system operator two products are defined reactive power generation and absorption capacity which can be supplied by different independent var sources such as generators svcs capacitor banks and shunt reactors reactive power capacity is allocated using an optimization algorithm that matches capacity bids and system reactive power needs for peak and low demand hours the reactive power requirements are calculated taking into account system contingencies and the dynamic performance of the var sources under these situations another key proposal of the paper is the distribution of costs of the reactive power capacity market to the agents responsible for contingencies according to the use of the service by each market participant this remuneration approach provides fair and efficient economic signals to all market participants the applicability of the approach is illustrated with two case studies

inversion of real time spot prices in the direction of real power flow in a transmission line an increasing number of electricity markets employing some form of spot pricing however limited experience of the behavior of spot prices exists this paper introduces and investigates one particular aspect of pricing behavior observed in the new zealand spot market known as price inversion spot prices are generally calculated using some form of opf or power flow software the phenomena of price inversion is investigated using the dc power flow implemented in the new zealand spot market and using a full ac power flow price inversion is shown to be dependent on the physical characteristics of the power system the economic implications of price inversion are also discussed

ethnic enclaves and the economic success of immigrants evidence from a natural experiment recent immigrants tend to locate in ethnic enclaves within metropolitan areas the economic consequence of living in such enclaves is still an unresolved issue we use an immigrant policy initiative in sweden when government authorities distributed refugee immigrants across locales in a way that may be considered exogenous this policy initiative provides a unique natural experiment which allows us to estimate the causal effect on labor market outcomes of living in enclaves we find substantive evidence of sorting across locations when sorting is taken into account living in enclaves improves labor market outcomes for instance the earnings gain associated with a standard deviation increase in ethnic concentration is in the order of four to five percent

price sensitivity of demand for prescription drugs exploiting a regression kink design this paper investigates price sensitivity of demand for prescription drugs using drug purchase records for at 20 random sample of the danish population we identify price responsiveness by exploiting exogenous variation in prices caused by kinked reimbursement schemes and implement a regression kink design thus within a unifying framework we uncover price sensitivity for different subpopulations and types of drugs the results suggest low average price responsiveness with corresponding price elasticities ranging from 0 08 to 0 25 implying that demand is inelastic individuals with lower education and income are however more responsive to the price also essential drugs that prevent deterioration in health and prolong life have lower associated average price sensitivity

wheeling of power under deregulated environment of power system a bibilographical survey the power industry is moving rapidly from regulated conventional setup to a deregulated environment there is an urgent need to keep a track of international experiences and activities taking place in this emerging field this paper gives a bibliographical survey and general backgrounds of research and development in the field of power system wheeling under deregulated environment based on over 170 published articles wheeling in general and the establishment of wheeling rate in particular are subjects of extensive debate today this will be very much useful for all countries especially those developing countries which are moving toward the unbundling of electricity supply industry esi the collected literature have been divided into many section so that new researchers do not face any difficulty for obtaining literature particularly in the area of wheeling of power under deregulated environment

decomposition model and interior point methods for optimal spot pricing of electricity in deregulation environments in this paper an integrated optimal spot pricing model is presented first the proposed model includes the detailed derivation of optimal nodal specific real time prices for active and reactive powers and the method to decompose them into different components corresponding to generation loss and many selected ancillary services such as spinning reserve voltage control and security control the features of the proposed model are discussed in relationship to existing pricing models and classical economic dispatch the model is then implemented by modifying existing newton opf methods through interior point algorithms which can effectively avoid go no go gauge i e highly volatile in the calculation of spot prices case studies on 5 bus and ieee 30 bus systems are reported to illustrate the proposed method

the political economy of growth a critical survey of the recent literature this article reviews the recent literature on the political economy of growth focusing on the research that has developed at the intersection of the endogenous growth literature and the new political economy it explores the relationship among four key variables economic growth and capital accumulation political instability political freedom and democratic institutions and income inequality

social segregation housing tenure and social change in dutch cities in the late 1980s contemporary debates about social polarisation and divided cities emphasise common influences on social and economic change in cities the development of a global economy and of global influences on both market systems and on public policy regimes encourages an expectation that there is a convergence in processes and policies affecting cities and a convergence in outcomes in terms of increasingly similar patterns of polarisation and division this paper considers data from britain and the netherlands relating to changes in the housing sector and to social segregation and indicates that emerging patterns are very different socio tenurial polarisation and social segregation are not as marked in the netherlands as in britain and are not changing as fast the discussion arising from these data suggests that concern with globalisation and common influences on change should be balanced with a recognition of the importance of other factors in determining the pattern and pace of change in cities within this it is important to recognise not just differences in housing finance and policy but the degree of social and income inequality and the wider functioning of the welfare state

estimating housing demand with an application to explaining racial segregation in cities we present a three stage nonparametric estimation procedure to recover willingness to pay for housing attributes in the first stage we estimate a nonparametric hedonic home price function in the second stage we recover each consumer s taste parameters for product characteristics using first order conditions for utility maximization finally in the third stage we estimate the distribution of household tastes as a function of household demographics as an application of our methods we compare alternative explanations for why blacks choose to live in center cities while whites suburbanize

segregation and tiebout sorting the link between place based investments and neighborhood tipping abstract segregation has been a recurring social concern throughout human history while much progress has been made to our understanding of the mechanisms driving segregation work to date has ignored the role played by location specific amenities nonetheless policy remedies for reducing group inequity often involve place based investments in minority communities in this paper we introduce an exogenous location specific public good into a model of group segregation we characterize the equilibria of the model and derive the comparative statics of improvements to the local public goods we show that the dynamics of neighborhood tipping depend on the levels of public goods we also show that investments in low public good communities can actually increase segregation

identification of endogenous social effects the reflection problem this paper examines the reflection problem that arises when a researcher observing the distribution of behaviour in a population tries to infer whether the average behaviour in some group influences the behaviour of the individuals that comprise the group it is found that inference is not possible unless the researcher has prior information specifying the compisition of reference groups if this information is available the prospects for inference depend critically on the population relationship between the variables defining reference groups and those directly affecting outcomes inference is difficult to implossible if these variables are functionally dependent or are statistically independent the prospects are better if the variables defining reference groups and those directly affecting outcomes are moderately related in the population

market potential and the rise of us productivity leadership abstract today s globalization driven by lower barriers to trade has increased market potential for many nations and led to gains in gdp per capita we test whether this was true in the first wave of globalization by constructing market potential measures for a sample of 27 countries in 1900 and 1910 based on a general equilibrium model of production and trade cross sectional estimates suggest that market potential was an economically significant determinant of gdp per capita at this time to assess welfare effects we then study the general equilibrium impact of raising market potential by eliminating international borders in a quantitative counterfactual calculation for 1900 there are significant gains in real income per capita for all nations we use us per capita output as a benchmark since it attained leadership in this variable from the late 19th century and the literature frequently attributes this to its relatively large domestic market a market unconstrained by trade costs associated with international borders because market potential was already near that of the us the largest european countries do not entirely close their per capita income gaps with the us after removing all border barriers to trade within europe or even globally on the other hand many small european countries could have done so

consolidated dynamic pricing of power system regulation the cost and quality of regulation have been brought to the forefront of power system operations by renewable variability we propose a regulation pricing methodology based on an idea of berger and schweppe in the same manner that locational marginal prices are derived from the dual of economic dispatch let regulation prices be the dual multipliers or costate of an optimal control problem by specializing to the linear quadratic regulator we formulate a regulation pricing policy which in turn allows us to derive statistically correct payments such as imbalance fees we then construct a vickrey clarke groves mechanism to induce selfish agents to honestly report their private valuations and costs of regulation semidefinite programming descriptions of the formulation can be embedded within standard convex economic dispatch constraint sets enabling cooptimization of base load and regulation pricing the approach mechanistically produces prices for any dynamic scenario and can therefore be used to consolidate diverse regulation services we demonstrate this feature by combining traditional frequency regulation area control error and the california independent system operator s flexible ramping product in an example

estimating equilibrium models of sorting across locations while there is growing interest in measuring the size and scope of local spillovers it is well understood that such spillovers cannot be distinguished from unobservable local attributes using solely the observed location decisions of individuals or firms we propose an empirical strategy for recovering estimates of spillovers in the presence of unobserved local attributes for a broadly applicable class of equilibrium sorting models our approach relies on an iv strategy derived from the internal logic of the sorting model itself we show practically how the strategy is implemented provide intuition for our instruments discuss the role of effective choice set variation in identifying the model and carry out a series of monte carlo simulations to demonstrate performance in small samples

framework for energy brokerage system with reserve margin and transmission losses the power industry in the united states is presently participating in a changing business environment while planning to meet future peak demand is still a concern the efficient utilization of existing generation and transmission resources is fast becoming of primary interest this interest suggests to move from cost based market operations to price based market operations in such a business environment a need for a mechanism to determine the pricing of various ancillary services is desired as the ancillary services go together with electrical power transfer the proposed approach develops a novel method of pricing mechanism for reserve margins and transmission losses as a part of the overall transaction in an energy brokerage system the brokerage model described in this paper is based on formulations using linear programming

estimating the distortionary effects of ethnic quotas in singapore using housing transactions abstract desegregation is a key policy issue in many countries i investigate a residential desegregation program in singapore the ethnic housing quotas i show that choice restrictions imposed on apartment blocks above the quota limits constrained could have distortionary effects causing price and quantity differences for constrained versus unconstrained blocks i test these predictions by hand matching more than 500 000 names in the phonebook to ethnicities to calculate ethnic proportions at the apartment block level i can then investigate differences for constrained and unconstrained blocks close to the quota limits and test for sorting around the limits i find that price differences are between 3 and 5 quantity effects are economically significant translating to longer time on market durations selection cannot fully explain these results my results point to challenges in achieving desegregation using quantity restrictions

pricing flexible electricity contracts this paper is concerned with pricing of electricity contracts that allow flexible scheduling of the supply or demand of electric energy the contracts are priced based on the principle of no arbitrage variables of the contracts are used to determine arbitrage opportunities and the price of contracts pricing of flexible contracts involves a scheduling policy by representing the spot price with an appropriate stochastic process the scheduling policy can be found using stochastic dynamic programming simulation examples illustrate the tradeoffs between prices and scheduling flexibility

marginal pricing of harmonic injections proper valuation of harmonic injections and distortion is critical if an efficient solution is to be provided for any harmonic problem which may exist indeed without proper tools to value harmonic distortion it is not possible to quantify the extent of any problem this paper demonstrates that it is possible to develop marginal prices for harmonic injections which will accurately reflect the value of the injections to the rest of the network given an allocation of harmonic pollution rights these prices act to coordinate each member of the network to act in a globally optimal manner