energy distribution and economic growth an empirical test for china abstract in this paper we consider whether economic growth in china could be constrained by the physical development of the energy distribution network specifically we structurally test the network theory of electricity distribution of dalgaard and strulik 2011 using city level data for china in their paper they argue that the relationship between the size of the economy measured by capital per capita and electricity consumption per capita is governed by a simple power law with capital having an exponent bounded between and depending on the efficiency of the network we use data for 224 cities in china between 2002 and 2007 to observe whether structural estimates match those of dalgaard and strulik 2011 for 50 us states where they find the exponent in the power law connecting capital with electricity to be 2 3 our results provide an estimate of the power law component to a little higher than the 2 3 found for the us which provides broad support for the model when we look at different time periods we observe what appears to be a fall in the efficiency of the energy distribution network towards the end of our period

factor inputs and japanese manufacturing trade structure the japanese international trade structure in manufactured goods has been analyzed using cross section regression analysis in which labor capital human capital and energy are regressed on japanese net exports exports and imports with the world oecd and developing countries for 1967 and 1975 skill and wage differential measures have been utilized for the measuring of human capital contrary to the dualism found in earlier studies the estimated results show that in 1967 japan exported unskilled labor intensive goods with respect to the developing countries as well as the oecd countries in 1975 japan exported capital intensive goods to all regions and imported unskilled labor intensive goods from the world and the developing countries skilled labor intensive goods were imported from the oecd countries in both years drastic changes between 1967 and 1975 are noted japanese exports shifted from unskilled labor intensive goods to capital intensive goods while imports did the opposite this result conforms to the changes in unskilled labor and capital usage in japan and her major trading partners

the factor content of foreign trade in the factor proportions trade theory the heckscher ohlin theory the factor content of the pattern of trade plays a major role both in theoretical and in empirical investigations it is therefore valuable to identify restrictions on permissible vectors of the factor content of trade which necessarily hold in equilibrium if certain restrictions are empirically testable they can be used for preliminary testing of the theory before a more thorough examination is undertaken or they can be used to reject the theory it is my intention to develop in this paper a set of restrictions on the vectors of the factor content of trade which can be used for these purposes it is well known that autarky commodity prices impose restrictions on possible patterns of trade these restrictions provide a precise prediction of the pattern of trade for a two country two commodity world in the sense that the exporter of a good is readily identifiable from autarky price data as the country with the lower relative price of the good i will start by showing that in the presence of factor price equalisation autarky factor rewards impose restrictions on the factor content of trade patterns which are completely analogous to the restrictions imposed by autarky commodity prices on the commodity patterns of trade this result is in line with the view that in the factor proportions model trade in commodities represents indirect trade in factor services unfortunately these restrictions rely on autarky information and they are therefore not very useful for empirical work in order to overcome this difficulty i explore an alternative approach i argue that common predictions of the factor content of trade flows which are based on post trade observable data the data relevant for empirical studies rely on unnecessarily restrictive assumptions i e the assumption that preferences are homothetic and identical across countries and the assumption of factor price equalisation the assumption of identical homothetic preferences seems to be necessary when factor price equalisation is assumed because in this case there is an indeterminancy in the pattern of production nevertheless the two assumptions taken together imply the same factor content of a country s net import vector from the rest of the world for every equilibrium production pattern however in a many country world the factor content of bilateral trade flows depends on the realised production patterns and they cannot therefore be predicted i will show that in the absence of factor price equalisation which many

the factor content of international trade without factor price equalization abstract within the basic two factor multi commodity model of a two country world the present paper shows that international factor price equalization is unnecessary for deriving the heckscher ohlin theorem in its factor content version according to which the bundle of goods exported by the capital abundant country will use more capital and less labour than the bundle exported from the labour abundant country the factor content version remains valid when the model is generalized to include trade impediments intermediate goods or additional countries except perhaps if the first of these extensions is combined with either of the other two

effects of financial development economic growth and trade on electricity consumption evidence from post fukushima japan abstract this study examines the long run and short run effects of financial development economic growth export imports and capital on the japanese energy predicaments as a result of the foregoing energy crisis in the country to ensure a robust outcome the study applied the extended cobb douglas production function and used time series data from 1970 to 2012 following to this structural break unit root test ardl bounds test approach to cointegration and the johansen cointegration test were applied in addition the vecm granger causality framework was used in determining the causal relationship between the variables the findings of the study establish that in the long run a 1 rise in financial development economic growth exports and imports in japan will exert a significant pressure on the japanese electricity consumption by 0 2429 0 5040 0 0921 and 0 2193 respectively however capital was found to decline energy consumption in all material respect in the short run the study discovered how a 1 rise in the dynamics of financial development economic growth exports and imports to add to the japanese electricity predicaments by 0 2210 0 5840 0 0521 and 0 2031 respectively the existence of the feedback relationship between most of the variables was discovered while economic growth exports imports and trade openness were found to granger cause electricity consumption the study advocates the adoption of massive but competitive renewable energy system in japan how it should be done and why it should be done are carefully set by this study

identifying the free riders a simple algorithm for determining who will contribute to a public good abstract when a heterogeneous group of people provide themselves with a pure public good the resulting nash equilibrium outcome will divide the group into contributors and free riders this paper proposes a general algorithm for discovering which individuals in the group fall into which of these two classes the algorithm is based on identifying for each individual how much of the public good must be provided by others to drive that individual s contribution to zero

inequality and club formation abstract we study the relationship between social segmentation and income inequality by means of the economic theory of clubs with private provision of the club good after having characterized the core partition of society in clubs and investigating its characteristics we show how the clubs sizes depend on income distribution and compare segmentation profiles arising in societies characterized by different inequality patterns

trade policy preferences and factor abundance abstract this paper provides a theoretical and empirical analysis of public opinion towards free trade investigating cleavages both between and within countries we study the distributional effects of trade policy in a neoclassical heckscher ohlin economy with not just two but many input factors in production we demonstrate that the factor price changes induced by trade policy are negatively associated with the factor content of free trade and therefore factor abundance using large scale international survey data we test whether these predicted distributional effects are reflected in the trade policy preferences of workers with different labor market skills in order to isolate the effects of factor abundance from other skill related confounding factors we employ a within skill group estimator that exploits the cross country variation in factor abundance in line with theory the data show that individuals whose skills are in more abundant domestic supply have significantly more positive attitudes towards trade

solow 1956 as a model of cross country growth dynamics despite the widespread popularity of the solow growth model much of the recent empirical work based on the classic framework misrepresents a crucial feature of the model namely the growth rate of technological progress assumed to be exogenous in the solow model is often identied as being constant across countries this simplication of the behavior of technological progess runs counter to the evidence and has had a number of signican t implications for the interpretation of the solow model one implication has been an overemphasis on the role of factor accumulation in explaining cross country income dieren tials in addition the commonly cited empirical result that the speed of conditional convergence is slower than predicted by the solow model is a function of this inaccurate assumption about technology rather than due to a failure of the model itself

multiple cones factor price differences and the factor content of trade abstract this paper examines the theoretical predictions of the multi cone heckscher ohlin model and the empirical evidence for it i extend helpman 1984 by identifying additional restrictions that characterize the free trade equilibrium i illustrate that the complete set of restrictions are the building blocks of a multi cone factor content specification which is the factor content dual to alan deardorff s 1979 well known chain of comparative advantage goods prediction the theoretical analysis implies that the existing tests of helpman are incomplete applying the complete set of restrictions to choi and krishna s data set of 8 oecd countries i find limited empirical support this is compatible with previous studies suggesting that oecd countries do not occupy different cones

estimation of the depreciation rate of physical and r d capital in the u s total manufacturing sector i introduction numerous studies on production and cost the sources of productivity and endogenous growth have recognized the pivotal role of the physical capital stock studies at various levels of aggregation over assets and industries have emphasized the crucial role of investment in plant and equipment in the growth of demand and productive capacity it is clearly recognized by economists and policymakers that knowledge capital approximated by rd 1986 to measure the depreciation rates of the stock of rd 1980 in the literature on dynamic demand models such an approach was first adopted by epstein and denny 1980 and more recently by kollintzas and choi 1985 for a single capital good and on a theoretical level in bernstein and nadiri 1987a 1987b the paper is organized as follows the specification of the model is presented in section ii section iii is devoted to a discussion of the data and to the presentation of the parameter estimates of the model in section iv we present the empirical results for the depreciation rates for physical and r d capital and compare them with those reported in the literature we compare the physical capital stock estimates generated by our model with the official capital stock estimates produced by u s department of commerce bureau of economic analysis in this section we also present our estimates of the decomposition of gross investment into replacement and expansion investment for both physical and r d capital these decompositions are important from the vantage point of public policy analysis

why do only the g7 2 countries among united nations members discuss about international public goods a simulation study abstractthis article investigates why only the group of 7 plus china and russia g7 2 countries among 194 united nations members discuss about international public goods by simulating the heterogeneity of income prices and preference parameters on the total provisions and the number of free riders we find that the number of contributors for international public goods is 15 under the 194 member countries while the others are free riders in addition the contributors are the top 15 powerful countries with largest dropout value over the world then the discussion with only 15 countries for public goods is meaningful as large as the heterogeneity of parameters is the number of contributors becomes closer to g7 2

measurement of the factor content of foreign trade with traded intermediate goods abstract in a recent article helpman 1984 develops readily testable bilateral restrictions in a model of international trade which preserves the spirit of heckscher ohlin trade theory important in any empirical exploration of the heckscher ohlin model is the decision of whether to employ direct or direct plus indirect calculations in determining the factor content of trade this paper extends helpman s analysis to a world of freely traded intermediate goods and shows that direct factor content calculations are the theoretically appropriate measure for use in evaluating these empirical implications of the heckscher ohlin model

a specification test of the heckscher ohlin theory abstract under strong assumptions the heckscher ohlin model predicts not only that factor endowment differences alone determine trade patterns but that they do so in a particularly simple way the factor content of trade should be a linear function of national and world factor endowments the evident empirical shortcomings of this simple relationship need not however imply the more general empirical failure of endowment based trade theories this paper provides empirical evidence consistent with a more general endowment based model by showing that the strong heckscher ohlin relationship excludes important additional channels through which factor endowments affect the pattern of trade

a dynamic multi stage data envelopment analysis model with application to energy consumption in the cotton industry abstract data envelopment analysis dea is a non parametric method for evaluating the relative efficiency of homogenous decision making units dmus with multiple inputs and outputs in this paper we present a dynamic multi stage dea dms dea approach to evaluate the efficiency of cotton production energy consumption in the proposed model the farms which consume resources i e fertilizers seeds and pesticides to produce cotton are assumed to be the dmus inputs not consumed during a planning period are carried over to the next period in the planning horizon initially a dms dea model is used to determine the overall efficiency of the dmus with dynamic inputs next the efficiency score of each dmu is calculated for each time period in the planning horizon we demonstrate the applicability of the proposed method and exhibit the efficacy of the procedures and algorithms with a real life case study of energy consumption in the cotton industry

the general validity of the heckscher ohlin theorem despite a number of attempts to extend it the heckscher ohlin theorem remains woefully restricted in terms of the generality of the assumptions needed for its proof in its traditional form as a statement about the commodity composition of trade the theorem is valid only in the highly abstract environment of the two factor two good twocountry model that has been the mainstay of trade theory for half a century a weaker version of the theorem involving the factor content of trade rather than its commodity composition has been proved for any number of factors goods and countries but this generality has so far been bought only at the cost of other and perhaps equally restrictive assumptions 2 the purpose of this paper is to provide statements and proofs of the heckscher ohlin h o theorem that are more general than those currently available the approach taken is similar to that used in my 1980 article for an extension of the theory of comparative advantage in terms of correlations between autarky prices and trade in section i i lay out the assumptions on which the analysis is based these assumptions provide the outlines of a reasonably general model in which there may be any numbers of goods and factors and in which factor prices may be equalized or not trade impediments in the form of tariffs or export taxes are permitted though transportation costs are not 3 in section ii i discuss the difficulty of inferring the factor content of trade in a world of unequal factor prices and i provide several alternative definitions of that concept for use later in the paper these together with the assumptions of section i are used in section iii to prove a theorem on the value at autarky prices of the factor content of trade in section iv this theorem is used to prove a first corollary that makes a more direct statement about the pattern of trade it says that worldwide there must be a negative correlation between the factor content of trade by factor and country and the corresponding autarky factor prices it is precisely these autarky factor prices that constitute the ohlin measure of factor scarcity therefore the corollary provides a formal statement of the general idea that countries tend to export the services of those factors which they have in relative abundance and it may be regarded as a generalization of the factor content version of the h o theorem finally a generalization of the commodity version of the theorem is proved in section v the concept of a covariance is generalized university of michigan i have benefitted greatly from the comments of paul degrauwe wolfgang mayer michael mussa carl simon and robert stern as well as others who participated in seminars at the universities of michigan chicago and cincinnati and at the national bureau of economic research an anonymous referee also made valuable comments with additional goods and factor price equalization the theorem runs afoul of the indeterminacy of production and trade noted by paul samuelson 1953 and james melvin 1968 without factor price equalization trade impediments and intermediate production can cause reversals of the pattern of trade as shown in my 1979 article if additional factors and countries are also added it becomes difficult even to state the theorem let alone to prove it 2melvin stated such a theorem for the three good two factor case and jaroslav vanek 1968 proved it for the general case but only by assuming factor price equalization trent bertrand 1972 and jon harkness 1979 were able to drop the factor price equalization assumption but replaced it with restrictions on consumption of either goods or factors by country of origin it is unclear to me however that these restrictions can ever be met in a model that is otherwise plausible harkness 1978 has also used the factor content version of the theorems as the motivation for a regression equation relating commodity trade to factor intensities this bears some resemblance to my analysis below in section v see however james anderson 1981 and edward leamer and harry bowen 1981 who have criticized his result with a reply by harkness 1981 3for ease of exposition i do not allow here for transportation costs these were included in an earlier version of this paper following the technique in my 1980 article

who are the members of the international club this article proposes pragmatic methods that incorporate recent contributions to public good theory to identify the members of the international club and how they select new members this article also suggests simple applications to the recent problems in international clubs such as the euro and nato

a test of the heckscher ohlin vanek theorem the leontief commonplace abstract this paper provides a logically complete empirical test of the hov theorem for the united states by comparing measures of factor intensities trade and factor endowments under the appropriate computations of the factor contents of trade and production u s data are shown to diverge often from their values as predicted by hov as a result it appears that paradoxical outcomes may be common in empirical applications of the theorem

the participation decision versus the level of participation in an environmental treaty a spatial probit analysis abstract this paper represents treaty participation as a two stage game for which nations first decide whether or not to participate and then they choose their level of participation the resulting subgame perfect equilibrium is used to derive a reduced form equation for estimating and separating the influences of the variables at the two decision stages this spatial probit equation forms the basis for a full information maximum likelihood estimator that accounts for the simultaneity bias associated with public good spillins at both stages when the procedure is applied to the helsinki protocol we find that the strategic influence of a variable may drastically differ depending upon which stage is scrutinized

does human capital matter for energy consumption in china this article investigates the dynamic relationship between human capital and energy consumption using chinese provincial data over the period 1990 2010 considering for cross sectional dependence and parameter heterogeneity across space and over time we identify a significant and negative human capital energy consumption relationship in china specifically we find that a 1 increase in human capital reduces energy consumption by a range between 0 18 and 0 45 furthermore this negative relationship can be attributed to stronger accumulation of post school human capital in eastern china this finding suggests that energy conservation in china could be achieved by improving post school human capital components such as on the job training experience and learning by doing

international aid from the recipient perspective public or private good input assistance abstractthis article proposes a theoretical model from the recipient perspective that considers what type of assistance a donor country should provide public good assistance or private good assistance we investigate the effects of migration and free riders under both types of assistance we empirically apply this model to the rapidly growing economies and a large official development assistance disbursement for east asia

technology endowments and the factor content of bilateral trade we derive testable restrictions relating the factor content of bilateral trade to bilateral differences in technology and endowments this departs from the heckscher ohlin vanek theorem which compares the factor content of net trade with factor abundance we test the theoretical restrictions using a unique dataset that covers 41 developed and developing countries with disparate endowments and technology we find evidence supporting the predictions in addition 1 the factor content predictions perform best for country pairs with larger endowment differences and 2 for trade between capital abundant countries ricardian international technology differences matter more than heckscher ohlin factor endowment differences