generating real persistent effects of monetary shocks how much nominal rigidity do we really need abstract this paper attempts to assess whether money can generate persistent economic fluctuations in dynamic general equilibrium models of the business cycle we show that a small nominal friction in the goods market can make the response of output to monetary shocks large and persistent if it is amplified by real wage rigidity in the labor market we also argue that for plausible levels of real wage rigidity a small degree of nominal stickiness is sufficient for money to produce economic fluctuations as persistent as those observed in the data

is the current regulation of the viii division european anchovy optimal this paper sets out to assess the workability of the regulation currently in force in the european anchovy fishery of the viii division particular attention is paid to the importance of the institutional regime in the allocation of natural resources the study uses a bio economic approach and takes into account the fact that not only the european union and the individual countries involved but also some of the resource users or appropriators intervene in its management in order to compare the effectiveness of the rules which at the various levels have been set up to restrict exploitation of the resource the anchovy fishery is simulated in two extreme situations open access and sole ownership the results obtained by effective management will then be contrasted with those obtained from the maximum and zero profit objectives related with the two above mentioned scenarios thus if the real data come close to those derived from the sole ownership model it will have to be acknowledged that the rules at present in force are optimal if on the other hand the situation more closely approach the results obtained from the open access model we will endeavour in our conclusions to provide suggestions for economic policy measures that might improve the situation in the fishery

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

on the economically optimal exploitation of a renewable resource the case of a convex environment and a convex return function we investigate optimal policies for the exploitation of a renewable resource subject to a concave growth function and a convex return function we prove an important result on the elasticity of the objective function and apply it to give a characterization of the optimal harvesting paths in this class of models in particular we derive conditions such that all optimal programs converge to a fixed point or to a cycle of finite period and hence result in the conservation of the resource we also show which assumptions guarantee that extinction of the stock is optimal that nonconvex preferences or technologies cause problems for economic theory is well known as our model can formally be interpreted as an optimal growth model with nonconcave utility function our results are a further contribution on the dynamics of optimal paths in the general class of economic models with nonconcavities journal of economic literatureclassification numbers c61 e32 q20

the norwegian winter herring fishery a story of technological progress and stock collapse in the 1970s herring stocks in the northeast atlantic were nearly fished to extinction this collapse is usually attributed to technological advances we investigate the empirical impact of technological shocks on herring stocks we show evidence that the power block was the principal factor in the demise of the stock we also look at the sensitivity of catch to stock size and technological shocks we measure a significant stock effect in the 1950s contrary to what we expect a simulation model indicates that this could have been caused by an increasing range of the fishing fleet due to ongoing technological progress

coordinated fuzzy constrained optimal power dispatch for bilateral contract balancing electricity and ancillary services markets this paper proposes a coordinated fuzzy constrained optimal power dispatch cfcopd algorithm for bilateral contract balancing electricity and ancillary services markets the cfcopd problem is decomposed into social welfare fuzzy maximization subproblem which is solved by mixed integer fuzzy linear programming miflp and combined reactive power cost and cost of real power loss fuzzy minimization subproblem which is solved by fuzzy linear programming flp the proposed cfcopd algorithm is tested on the modified ieee 30 bus system and the thai power 424 bus system the dispatch results show that the social welfare of the fuzzy constrained competitive electricity and ancillary services price ceasp scheme with bilateral contract curtailment bids is higher than those of competitive electricity price cep scheme and ceasp scheme with and without bilateral contract curtailment bids leading to a lower average electricity price

optimal monetary policy responses to relative price changes abstract an optimizing model with a flexible price sector and a sticky price sector is presented to analyze the effects of relative price changes on inflation fluctuations the relative price of the flexible price good represents a shift parameter of the new keynesian phillips curve the optimal monetary policy is to target sticky price inflation rather than a broad inflation measure although stabilizing the relative price around its efficient value is one of the appropriate goals of the central bank stabilizing sticky price inflation is sufficient for achieving this goal an optimal monetary policy for a small open economy is also discussed

an economic analysis of sardine fishing in the gulf of valencia spain abstract the optimal management of a particular fishery is illustrated using data describing previous fishery exploitation relevant biological and economic relationships are estimated then the optimum levels of catches effort and stock are calculated the prices that if implemented would ensure the current efficient exploitation of the fishery are also calculated finally the welfare gains that can be achieved by a movement from the freemarket equilibrium to the socially optimum solution are demonstrated

quota enforcement in resource industries self reporting and differentiated inspections quotas are frequently used in the management of renewable resources and emissions however in many industries there is concern about their basic effectiveness due to non compliance we develop an enforcement model of a quota regulated resource and focus on a situation with significant non compliance and exogenous constraints on fines and enforcement budget we propose a new enforcement system based on self reporting of excess extraction and explicit differentiation of inspection rates depending on compliance history we use differentiated inspections to induce firms to self report excess extraction this system increases the effectiveness of the quota by allowing the regulator to implement a wider range of aggregate extraction targets than under traditional enforcement while ensuring an efficient allocation of extraction in addition inspection costs can be reduced without reductions in welfare

optimal dispatch under transmission contracts open transmission access is now the most topical issue in power system deregulation power system operation poses the greatest challenge to a competitive environment incorporating open transmission access and there are some fundamental operational problems that are still unresolved this paper seeks to provide an approach to the power dispatch problem in a structure dominated by bilateral and multilateral transmission contracts a framework for price based operation under these conditions is developed and a methodology for optimal transmission dispatch is proposed the case study results illustrate that the proposed market arrangement and operating mechanisms are compatible with this new business environment

production economics and optimal stock size in a north atlantic fishery this paper contains an analysis of a fishery production function and an empirical analysis of the north sea herring fishery an intertemporal profit function is defined by introducing stock dynamics and the concept of a sole resource manager some new results with respect to the relationship between the optimal stock level and production technology are derived estimates of the optimal stock level for herring are also presented

cost structure and capacity utilisation in multi product industries an application to the basque trawl industry to empirically study production structure and the capacity level at which vessels are harvesting a short run translog cost function is estimated from the estimated parameters two capacity utilisation measures are calculated ray returns to scale and a dual capacity utilisation measure both capacity utilisation measures suggest that there is excess capacity in the basque trawler fleet these measures are also estimated annually and they indicate the same conclusion the basque trawler fleet can therefore gain from increased production levels

sectoral comovement monetary policy shocks and input output structure the comovement of output across the sector producing nondurables i e nondurable goods and services and the sector producing durables is well established in the monetary business cycle literature however standard sticky price models that incorporate sectoral heterogeneity in price stickiness i e sticky nondurables prices and flexible durables prices cannot generate this feature we argue that an input output i o structure provides a solution to this problem here we develop a two sector model with an i o structure which is calibrated to the u s economy in the model each sector s output affects those of the others by acting as an intermediate input this connection between the sectors provides a channel through which sectoral comovement is induced

maximum economic yield fishery management in the face of global warming abstract this paper deals with fishery management in the face of the ecological and economic effects of global warming to achieve this a dynamic bioeconomic model and model based scenarios are considered in which the stock s growth function depends on the sea surface temperature the model is empirically calibrated for the french guiana shrimp fishery using time series collected over the period 1993 2009 three fishing effort strategies are then compared under two contrasted ipcc climate scenarios rcp 8 5 and rcp 2 6 a first harvesting strategy maintains the status quo in terms of fishing effort a more ecologically oriented strategy based on the closure of the fishery is also considered a third strategy which relates to maximum economic yield mey is based on the optimisation of the net present value derived from fishing the results first show that status quo fishing intensity combined with global warming leads to the collapse of the fishery in the long run secondly it turns out that the closure strategy preserves stock viability especially under the optimistic climate scenario thirdly the mey strategy makes it possible to satisfy bioeconomic performances requirements with positive stock and profit once again especially under the optimistic warming scenario consequently mey emerges as a relevant bioeconomic strategy in terms of adaptation to climate change but only in connection with climate change mitigation

embodied and disembodied technical change in fisheries an analysis of the sete trawl fishery 1985 1999 overfishing and excess capacity in mostfisheries around the world have generated considerableand increasing concern about their biological and economic performance ramifications theseproblems in part stem from substantialinvestment in technical improvements to boats andequipment in fishing fleets which exacerbatesexcess fishing capacity and low returns tofishing effort and investment given regulatoryand biological constraints however little attempt hasbeen made to quantify the extent or effects oftechnical change in fisheries in this paper we usedetailed data on innovation patterns for 19vessels in the sete trawl fleet of southernfrance to evaluate the contributions oftechnical change to catch rates we find thatembodied technical change enhanced productivity by approximately one percent per year between 1985 and 1999 but that external disembodied events counteractedthis trend causing a net output decline ofabout three percent per year

sectoral price rigidity and aggregate dynamics abstract this paper studies the business cycle implications of sectoral heterogeneity in price rigidity using a highly disaggregated multi sector model the model is estimated by the simulated method of moments using a mix of aggregate and sectoral u s data the frequencies of price changes implied by our estimates are consistent with those reported in micro based studies we show that heterogeneity in price rigidity is the primary factor explaining the heterogeneity in the responses of sectoral output and inflation to a monetary policy shock we also find that ignoring sectoral heterogeneity in price rigidity leads to the mismeasurement of the relative importance of aggregate and sector specific shocks in aggregate and sectoral fluctuations

cartels and dynamic contracts in sharefishing abstract this paper studies a principal agent model of a fishery where cooperative vessel owners the principal hire unorganized fishermen agents to operate the vessels on each vessel fishermen s remuneration is a share of the value of the catch the results show that harvest shares of myopic fishermen will be reduced when cartels are established intertemporal optimization of the resource use by the cartel is accompanied by the problem of the cartel s viability share contracts are traditionally motivated by risk sharing and by the avoidance of labor monitoring the results of this paper suggest new important reasons for the commonness of share contracts in fishing sharefishing is a self adaptive and time consistent remuneration system as it automatically accomodates differences in individual crews labor supplies due to differences in fishermen s skills and cost factors an essential result found that supports harvest sharing is the relative simplicity of the social management policy optimal regulation is accomplished by a constant subsidy on the price of fish the subsidy policy is time consistent and does not change as the stock level changes the paper also addresses conditions under which stock extinction does not occur in sharefishing

existence and determination of competitive equilibrium in unit commitment power pool auctions price setting and scheduling alternatives the existence determination and effects of competitive market equilibrium for unit commitment power pool auctions are investigated in this paper when an equilibrium does not exist under specific situations conflictive multiple optimal primal solutions may exist when an equilibrium exists multiple primal solutions do not represent conflicts of interest the existence or nonexistence of competitive equilibrium can be determined if the dual problem is solved to optimality if equilibrium does not exist there is excess supply at the optimal dual solution which can be used to define priority orders and price setting alternatives to determine a final schedule and avoid the conflicts of interest and revenue deficiency under disequilibrium the optimal dual variables are not market clearing prices a nonuniform pricing rule that avoids the flaws and complications of other pricing rules such as maximum average cost and price minimization auctions is proposed in the paper the proposed scheduling and price setting alternatives show that unit commitment models can be used in a market environment

property rights in a fishery regulatory change and firm performance a new method is introduced and applied to the british columbia halibut fishery to analyze changes in productivity of firms harvesting a natural capital stock the index number technique decomposes the contributions of output prices variable input prices fixed inputs and productivity to firm profits adjusted for changes in the natural capital stock an application of the method is given using micro level data from a common pool resource the indexes provide a ready made comparison of all firms to the most profitable firm per unit of resource stock benchmarking with the decompositions also allows firms and regulators to improve overall industry performance by allowing them to analyze what components are contributing most to relative economic profits

sharing a fish stock when distribution and harvest costs are density dependent we studied cooperative and competitive solutions for managing a trans boundary fish stock that has a stock size dependent distribution and harvesting costs using norwegian spring spawning nss herring clupea harengus as a case study this is among the first studies to investigate the effect of a dynamic distribution in a partition function game framework i e including externalities the special feature of nss herring is that it comes under the sole ownership of norway when the stock size is sufficiently low the three players in our game are differentiated by stock ownership cost per unit effort and stock elasticity of harvest we find that cost asymmetry improves the likelihood of forming a stable grand coalition as harvesting load can be assigned to each fishing zone according to a player s relative cost level and the density of fish a dynamic distribution increases the bargaining power of norway because of her ability to control both the total stock and the stock shares in different zones especially during the stock transition years however the bargaining power of norway may disappear if her cost of harvesting exceeds that of the other players this loss of bargaining power can take on two forms first a dynamic distribution may encourage a minor player to free ride because norway needing a coalition partner to improve her cost effectiveness would be less inclined to retaliate as retaliation hurts her ally as much as the free rider second in a stable grand coalition norway is not guaranteed to receive an allocation of benefit shares in proportion to not to say in excess of her stock ownership at the current stock condition the strategy where norway reduces stock abundance below the level where the stock becomes non migratory is found attractive only if the discounting rate is sufficiently high

technological change and managerial ability evidence from a malaysian artisanal fishery technological progress can improve economic development but its role in the harvest of common resources has received little attention we study the relationship between skill and the use of electronic and mechanical innovations in the productivity of malaysian artisanal fishers surprisingly electronics users do not define the frontier and mechanical winch adopters produced well inside it we show that if technology is a skill substitute rather than a complement then it helps less efficient users catch up to the production frontier policy makers must balance the implications for participation rates and resource depletion against gains for the least skilled participants

growth accounting in a fishery abstract since 1950 the real value of fish catches in norway has about doubled while the number of fishermen has declined by about 85 percent this has made it possible to maintain fishermen s incomes roughly on par with other occupational groups in norway it is investigated to what extent this increase in labor productivity is due to accumulation of capital increasingly abundant fish stocks or technological progress since the capital stock in recent years is not much greater in real terms than in the early 1960s it is tempting to ascribe most of the increase in labor productivity to technical progress this however would leave out the role of fish stocks if stocks have increased over this period this would explain some of what otherwise appears as a technical progress using data on labor capital fish catches and fish stock abundance 1961 2004 the development of total factor productivity is examined ignoring changes in fish stocks total factor productivity is estimated to have increased by 0 8 percent per year accounting for changes in fish stocks raises this to 1 7 4 3 percent per year depending on the importance assigned to stocks as factors of production

the local effects of an innovation evidence from the french fish market in this paper we investigate the effect on quality quantity and prices of an innovative fishing gear introduced for a subsample of vessels on a single wholesale fish market in france estimations are conducted using transaction data over the 2009 2011 period during which the innovation was introduced using a difference in differences approach around the discontinuity we find that for the treated the innovation has a large effect on quality 29 2 percentage points and prices 23 2 percentage points a shift in caught fish species is observed and new targeted species are fished very intensively we also quantify the treatment effect on the treated market from aggregate market data using factor models and a synthetic control approach we find a sizable effect of the innovation on market quality which is consistent with non treated vessels adapting their fishing practices to remain competitive the innovation has no effect on market quantities and prices

real and nominal propagation of nominal shocks the role of real and nominal propagation mechanisms in generating persistent real effects of nominal shocks is analysed analytically in a fully specified intertemporal general equilibrium model while neither a real propagation mechanism capital acccumulation with one period nominal contracts nor nominal propagation staggered nominal contracts in the absence of any real propagation can generate plausible impulse responses with strong persistence it is shown that the two mechanisms interact so as to strengthen persistence possibly unit roots and generate more plausible impulse responses

a conceptional analysis of dynamics and production in bioeconomic models harvesting functions and stock dynamic equations in age structured bioeconomic models are generalized in order to incorporate density dependence using this generalization anything from completely uniformly distributed fish to extreme schooling can be analyzed the classical beverton holt model comes out as a special case of the generalized model the generalization can be applied both for simulation as well as for optimization purposes given appropriate software conceptual analysis indicates that pulse fishing seems to become less and less economically profitable as we move from uniformly distributed fish to schooling species this has important implications for how fish stocks ought to be managed copyright 2010 oxford university press

inflation and productive activity in a multiple matching model of money abstract this paper investigates the relationship between money growth inflation and productive activity in a dynamic general equilibrium multiple matching framework where trade frictions are manifested by limited consumption variety productive activity and matching in the goods market are endogenized by a time allocation decision of work and search effort we find that a high degree of complementarity between participation in the labor and goods markets creates a channel by which inflation can positively influence production and output this feature arises when household preferences for consumption variety is sufficiently large and it can also lead to the multiplicity of monetary equilibria

search for a monetary propagation mechanism abstract this paper examines a monetary propagation mechanism in an economy where exchanges in goods and labor markets involve costly search it is shown that an increase in the money growth rate increases steady state employment and output when the money growth rate is low but reduces steady state employment and output when the money growth rate is already high the model produces persistent hump shaped responses in employment and output to money growth shocks even when the shocks have no persistence the model also generates desirable features in job vacancy sales inventory and the velocity of money all these features emerge here in an economy with perfectly flexible prices and wages journal of economic literatureclassification numbers e40 e30

the role of monetary shocks in equilibrium business cycle theory three examples abstract we study three equilibrium business cycle models that differ according to the mechanism through which monetary growth shocks affect the economy these include models with inflation tax effects with staggered nominal wage contracts and with unanticipated inflation effects we review some monetary features of business cycles in postwar us data and compare these with the same properties computed for the artificial economies our goal is to identify the features of the business cycle that these mechanisms help to explain the features that remain puzzling and how the form of the mechanism matters

persistency in sticky price models abstract nominal rigidities imply that nominal shocks have an impact effect which may be propagated by standard mechanisms however the nominal adjustment process may in itself be a propagation mechanism causing persistent effects of nominal shocks this may be caused by inertia in nominal wage and price adjustment arising due to input output networks or multiperiod nominal contracting as captured in models with staggered price wage decisions it has recently been contested whether staggering can account for persistency of any quantitative importance this paper reviews the theory and empirical evidence on this issue and it is concluded that staggering may be a quantitative important propagation mechanism

the endogeneity problem in applied fisheries econometrics a critical review the purpose of this essay is to bring attention to some serious problems that exist in econometric application of fisheries economic models these problems in application are serious to the point of impeding our ability to do policy work this essay will focus on two areas of econometric application first the violation of the fundamental exogeneity condition for applied econometrics e varepsilon x 0 where varepsilon is a stochastic error term and x is a matrix of right hand side explanatory variables and second the inappropriate use of data that is available for analysis both problems deal with the econometric issues of omitted and proxy variables i will also comment on data necessary to carry out proper fisheries econometric research and policy analysis simulation techniques based on a known population regression equation are used to illustrate the extent of the empirical problems injecting real data into the simulations shows the bias that we can bring forward to the policy arena

some evidence on factor intensity and price rigidity abstract this paper establishes a new empirical finding the degree of labor intensity and the degree of price flexibility are negatively correlated across industrial sectors in the u s economy this finding suggests that varying factor intensity can potentially generate different degrees of price stickiness across sectors and remove the need to exogenously impose the latter of course labor intensity is just one more feature in addition to others like the durability of goods produced and the degree of competition that can explain some of the heterogeneity in price durations across sectors

combined pool bilateral dispatch i performance of trading strategies this three paper series deals with the dispatch of power networks under mixed pool bilateral trading the major questions examined are i to what degree does the relative level of pool versus bilateral trading influence performance in terms of individual power levels costs prices revenues and expenditures ii what is the comparative performance of mixed trading with firm and nonfirm bilateral contracts under various curtailment strategies and iii is the revenue derived from the pool and bilateral trading consistent with the corresponding unbundled costs the above issues are sequentially addressed in each of the three parts the eventual goal of these results is to help generator and load serving entities choose appropriate relative levels of pool versus bilateral trades while considering risk economic performance as well as physical constraints this paper proposes a one step optimal power flow model that dispatches the pool in combination with the privately negotiated bilateral contracts while minimizing cost and accounting for both losses and congestion in part i notions of pool bilateral demand and generation as well as a number of technical and economic performance measures for each competing entity are defined this dissection of total and individual financial measures according to pool or bilateral trading allows the market participant to evaluate the profitability of each component of its chosen pool bilateral mix a number of simulation results illustrate the effect of varying the relative levels of pool bilateral trading on the values of individual performance measures

the transmission of monetary policy in a multisector economy this article constructs and estimates a sticky price dynamic stochastic general equilibrium model with heterogeneous production sectors firms in different sectors vary in their price rigidity production technology and the combination of material and investment inputs in particular firms buy inputs from all sectors using the actual input output matrix and capital flow table of the u s economy by relaxing the standard assumption of symmetry this model allows idiosyncratic sectoral dynamics in response to monetary policy shocks the model is estimated by the generalized method of moments using sectoral and aggregate u s time series

optimal dispatch of a system based on offers and bids a mixed integer lp formulation the federal energy regulatory commission s ferc orders 888 and 889 will have far reaching consequences on the operation and dispatch of electric power systems a common element of the change is that of dispatching the system based on offers and bids to sell and buy unbundled commodities this paper formulates and solves the optimal dispatch problem as a mixed integer linear program such a formulation allows the acceptance of offers with minimum takes arising from generator characteristics

inventory theoretic money demand and relative price dynamics we construct a two goods inventory theoretic money demand model and find that the model implies in a monetary contraction the decline in the prices of low cash intensity goods durables or luxuries outpaces that of high cash intensity goods nondurables or necessities using u s data we show that our model s predictions are consistent with the data

individual rationality and the zonal attachment principle three stock migration models shared fish stocks migrate across borders between different countries exclusive economic zones this paper discusses the individual rationality of fish sharing agreements based on the zonal attachment of such stocks three types of migrations are considered i a common stock that grows and reproduces and is then distributed in given proportions between two countries zones at the beginning of each fishing season ii sub stocks that breed and grow independently in their separate zones but spill over between zones according to relative abundance iii a stock that grows and breeds in one country s zone but migrates into the zone of another if it exceeds a certain size it is shown that in all these cases the minor partner in a fish sharing agreement may not have an incentive to cooperate unless he gets a larger share of the cooperative profits than that corresponds to his share of the stock this is particularly likely to happen when the unit cost of fish does not depend on the stock an exception could occur if stock migration depends on the stock level the major partner could then keep the entire stock by fishing it down to a critical level

viewpoint induced innovation in fisheries and aquaculture abstract some classical economists most notably malthus predicted that scarcity would undermine long term human well being john stuart mill in contrast predicted that the threat of scarcity creates incentives for innovation that help to avoid some of the worst outcomes popular claims of marine ecologists often apply the malthusian narrative to supplies of seafood yet global supplies have continued to grow we examine the modern seafood industry and evaluate mill s claims about innovation we argue that the mechanisms that mill discusses innovation in response to and in anticipation of scarcity account for much of what we see scarcities induce technological policy and market innovations that enable seafood supplies to grow and these innovations can build on each other the challenge for policy makers is to avoid knee jerk responses to malthusian narratives and craft policy responses that encourage innovation while recognizing physical limits of ocean resources

sticky price and limited participation models of money a comparison abstract we provide new evidence that models of the monetary transmission mechanism should be consistent with at least the following facts after a contractionary monetary policy shock the aggregate price level responds very little aggregate output falls interest rates initially rise real wages decline by a modest amount and profits fall we compare the ability of sticky price and limited participation models with frictionless labor markets to account for these facts the key failing of the sticky price model lies in its counterfactual implications for profits the limited participation model can account for all the above facts but only if one is willing to assume a high labor supply elasticity 2 percent and a high markup 40 percent the shortcomings of both models reflect the absence of labor market frictions such as wage contracts or factor hoarding which dampen movements in the marginal cost of production after a monetary policy shock 1997 elsevier science b v

sluggish inflation and optimizing models of the business cycle abstract many researchers have added sticky prices to quantitative business cycle models i simulate several of these models in order to evaluate their success at reproducing two features of us data the lagged reaction of inflation to monetary growth and the persistence of inflation

sticky price models and durable goods the inclusion of a durable goods sector in sticky price models has strong and unexpected implications even if most prices are flexible a small durable goods sector with sticky prices may be sufficient to make aggregate output react to monetary policy as though most prices were sticky in contrast flexibly priced durables with sufficiently long service lives can undo the implications of standard sticky price models in a limiting case flexibly priced durables cause monetary policy to have no effect on aggregate output our analysis suggests that durable goods prices are the most relevant data for calibrating price rigidity jel e21 e23 e31 e52

utilization of real time balancing market for transmission system control under uncertainty an algorithm facilitating automated purchase of energy on real time balancing market is proposed in this paper the main inputs of the algorithm are a prediction of the area control error its uncertainty in the form of a standard deviation and a set of previously procured ancillary services contracted power reserves available for power balance control the algorithm evaluates all possible power balance scenarios for the closest hour in a probabilistic manner and gives a cost optimal recommendation for the real time balancing market demand a case study on realistic data for the czech republic control area was performed by simulation of the power balance control with a monte carlo simulator of the czech transmission system the results showed potential for savings on the regulation energy costs

reactive power as an ancillary service this paper addresses the problem of reactive power procurement by an independent system operator iso in deregulated electricity markets a reactive bid structure is proposed in the context of a reactive power market based on the reactive power price offers and technical constraints involved in reactive power planning a two tier approach is developed to determine the most beneficial reactive power contracts for the iso the reactive capability of a generator and therefore the opportunity costs in providing reactive power is also included in the model uncertainty in reactive demand and in reactive bids of participating parties is incorporated through monte carlo simulations and the expected reactive power procurement plan for the iso is hence determined the cigre 32 bus network approximately representing the swedish system is used for the studies

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 responses of prices at different stages of production to monetary policy shocks this paper examines the responses of prices at different stages of production to monetary policy shocks in aggregate price analysis the var of christiano et al 1996a 1996b is used to identify the policy shock as the federal funds rate innovation and trace out the responses of prices in disaggregate price analysis the adjustment of prices is examined by comparing inflation before and after a recent policy tightening identified by romer and romer 1989 1992 at early stages of production a monetary tightening causes input prices to fall more rapidly and by a larger amount than output prices

technological change and the tragedy of the commons the lofoten fishery over 130 years we analyze the effect of technological change on labor and total factor productivity in the lofoten fishery using detailed data for 130 years our findings support the important role of natural resources in productivity and improvements in welfare in natural resource based industries the total factor productivity has risen faster than labor productivity in the fishery indicating that the considerable technological progress in this industry has to some extent been neutralized by the decline in the fish stock open access to the fish resource most probably led to this situation

key currency status an exorbitant privilege and an extraordinary risk abstract what are the costs and benefits of the dollar s status as the key currency in the international monetary system here we present a calibrated two country model in which all exports are invoiced in the key currency and government bonds denominated in the key currency are held internationally to facilitate trade and as official reserve assets we show that the exorbitant privilege accruing to the key currency country comes from three sources 1 a bond seigniorage that we estimate to be worth about a half a percent of consumption per period to the united states 2 asymmetric responses to exogenous shocks that are worth an additional quarter of a percent of consumption per period and 3 a macroeconomic hegemony in monetary and fiscal policy reflecting the fact that the key currency s policy instruments are more potent but there is also an exorbitant risk to being the key currency country we show that the costs of a potential dumping of key currency bonds are also substantial moreover there appear to be no obvious monetary or fiscal policy responses that would lower the costs significantly

total factor productivity change in the new england groundfish fishery 1964 1993 abstract we develop estimates of total factor productivity tfp change in the new england groundfish fishery from 1964 to 1993 using a procedure similar to squires 1992 rand j econom 23 2 221 236 method which extends standard tfp measurement by including the effect of fluctuations in stock abundance the results indicate that tfp increased on average by 4 4 per year from 1964 to 1993 a higher average rate of increase occurred between 1964 and 1982 possibly due to new technologies e g fishfinders tfp declined at 0 33 annually from 1983 to 1993 due to stringent output and effort control measures

sticky prices the impact of regulation abstract this paper finds that approximately one third of the items in the cpi are governed by price regulations that can slow and add noise to the response of prices to changes in cost or demand conditions consequently regulation is a possible partial explanation of sticky prices in the overall rate of inflation and delayed response to changes in the money supply a survey is used to decompose the cpi into freely determined and regulated sub components evidence is provided that prices in the regulated sector of the economy respond approximately two quarters after prices in the freely determined sector thereby contributing a source of stickiness in overall inflation and in the response of inflation to monetary policy

a note on itqs and optimal investment abstract this paper considers the incentives to invest under an itq management regime when labor is rewarded by the so called share system it is shown that the share system is likely to result in overinvestment under itqs labor market power of crew reflected in a high labor share of the catch might correct for this and might even prevent excessive investment when there is competition for a total catch quota

combined pool bilateral dispatch part ii curtailment of firm and nonfirm contracts this paper deals with the dispatch of power networks under mixed pool bilateral trading the major questions that are examined are the following 1 to what degree does the relative level of pool versus bilateral trading influence performance in terms of individual power levels costs prices and revenues 2 what is the comparative performance of mixed trading with firm and nonfirm bilateral contracts under various curtailment strategies 3 is the revenue derived from the pool and bilateral trading consistent with the corresponding unbundled costs the above questions are sequentially addressed in separate parts of this three part paper the eventual goal of these results is to help generator and load serving entities choose appropriate relative levels of pool versus bilateral trades while considering risk economic performance and physical constraints in part ii two types of bilateral contracts firm and nonfirm are introduced together with their respective curtailment and noncurtailment bids the optimal power flow problem from part i is now modified to accommodate this new type of operation technical and economical performance measures defined in part i namely generation revenues from bilateral and pool sales pool demand payments plus generation and load expenditures to cover transmission loss and congestion management attributed to bilateral exchanges are also used here together with revenues from contract curtailment and expenditures due to noncurtailment bidding simulation results illustrate the effects of firm and nonfirm contracts and their bidding strategies on the relative levels of pool bilateral trading as well as on economic performance of market participants

measuring potential rents in the north sea herring fishery this paper assesses the potential for rent generation in the north sea herring fishery the assessment distinguishes between rents and intra marginal profits the sum of which constitutes variable profits in the fishery a bioeconomic model combining fish population dynamics and the economics of the fishery is constructed to allow the computation of these different components of profits in order to assess the dynamics of both rents and intra marginal profits the model is computed under various assumptions with regard to price costs and discount rates potential total profits are measured at 88 to 89 million annually of which rents make up about 87 million with intra marginal profits measured in the order of only 2 million the study further shows that in this fishery rent is dissipated mainly due to excess effort but also due to suboptimal stock size

nominal inertia and shock persistence in uk business cycles a structural var methodology is used for uk data to identify and map out the effects of innovations in the money supply employment output wages and prices moreover bands of two standard errors are computed for the impulse response functions so that comment may be made on the significance of the dynamic responses of the variables to the simulated shocks this allows conclusions to be drawn on the persistence of shocks results suggest that output variation is largely determined by aggregate demand shocks over the business cycle frequency importantly evidence is also found of rigidities in the form of price inertia and nominal wage stickiness

limits to the privatization of fishery resources a debate is emerging over the extent to which privatization of fishery resources is socially desirable the pessimists argue that there are strict limits to socially optimal privatization of such resources the optimists maintain that there are no effective limits to privatization and that the decades old fear that privatization could in some cases lead to resource extinction are of theoretical interest only we argue here that these fears are regrettably not baseless and that there are definite limits to socially desirable privatization we discuss means by which such limits could be identified on a fishery by fishery basis

cost structure and capacity in the norwegian pelagic fisheries the parameters of the short run cost function are estimated for three vessel types taking part in the norwegian pelagic fisheries purse seine vessels trawlers and coastal vessels the generalized translog functional form is used estimates of returns to scale are calculated and the results indicate that there are substantial economies of scale in all vessel classes it is further investigated whether excess capacity varies with vessel size and age the analysis suggests increased quotas per vessel to avoid rent dissipation with the total allowable catch given the number of participating vessels must be reduced

landing fees versus fish quotas the relative efficiency of landing fees versus quota controls to achieve given escapement levels is examined the criterion is profit per year over a given time horizon the model employed is a discrete version of the logistic model where growth is influenced by a random variable simulations are used to compare landing fees and quota controls under imprecise stock estimates variable availability of fish and random fish prices while ecological uncertainty combined with imprecise stock estimates favors fee control as shown byweitzman the opposite can be the case under uncertainty about the availability of fish or fish price

productivity measurement in common property resource industries an application to the pacific coast trawl fishery this article measures total factor productivity in industries that exploit resources held in common particular attention is paid to the valuation and specification of in situ commonproperty resources in a neoclassical production technology catchability of the resource and variations in economic capacity utilization an empirical analysis of the open access pacific coast trawl fishing industry demonstrates that disentangling the productivity residual from changes in resource abundance its catchability and variations in capacity utilization hones the productivity residual to finer precision lowering mean productivity growth by about hak removing biological noise from highly variable resources is also important the results are related to aprogram limiting the number of vessels and can contribute to sustainable resource management whenever resources are held in common

the effects of real and monetary shocks in a business cycle model with some sticky prices an established characteristic of macroeconomic fluctuations is the strong positive correlation between variations in the money stock and variations in production income and employment at business cycle frequencies this finding has motivated an enormous literature that has studied the effects of monetary policy disturbances on the real economy and in particular the role of money in business cycles several classes of monetary business cycle models have been developed that feature different channels through which monetary policy can have real effects one model that has been used widely is the keynesian model in which monetary shocks can have important effects on allocations because there are nominal rigidities in prices and or wages the keynesian assumption of sticky nominal prices is often motivated by reference to studies that have analyzed the frequency of nominal price changes the broad conclusion that emerges from this literature is that there are a number of goods that have prices that appear to change infrequently for example carlton 1989 has reported slow changes in nominal transactions prices for producers goods even without long term relationships between buyers and sellers and has documented that delivery lags and other product characteristics frequently change before nominal prces change similarly blinder s survey 1991 of firms shows that prices for many goods change only about once per year while this evidence

productivity development in icelandic norwegian and swedish fisheries this article analyses the total factor productivity tfp performance of fisheries in iceland norway and sweden during the period 1973 to 2003 we measure tfp growth using real gross value added as output and capital input labour input and a stock input index based on the major fish stocks in developed neighbouring countries we expect rapid diffusion of fishing technology innovations contributing to productivity convergence in addition innovations in the public regulation and the industrial organization may also have influenced productivity growth during the period we find that iceland had the highest annual tfp growth accounting for stock changes it amounts to 3 while the corresponding figures for sweden and norway are 2 8 and 0 8 respectively despite best practice fishing technologies being widely available we find no evidence of productivity convergence among the three countries