aggregate investment and consistent intertemporal technologies it is frequent practice to model an industry or economy as if it were a single agent solving a single optimization problem a model of firm behavior which has had extensive use as an aggregative model is the adjustment cost model of investment we assume there are a number of competitive firms in an industry that choose investment paths to maximize their present value the technologies of the firms exhibit capital stock adjustment costs for general concave technologies of the firms there is no aggregate concave technology that can represent the technological possibilities available to the industry we find conditions on the technologies of the firms that are necessary and sufficient for the existence of an aggregate technology that can consistently model the industry s behavior and discuss their empirical implications

dynamic adjustment in the us beef market with imports abstract this paper hypothesizes that while there are important qualitative differences in domestic beef and imported beef beef and cattle imports also represent attempts by the us beef processing and wholesale sector to adjust to short run changes in supply and demand dynamic production theory is applied to the problem to test for this adjustment process and presents a production theory approach to meat trade that has previously been included in demand functions the results of this analysis suggest that the method used provides a reasonable and appropriate representation of the import behavior of the us processing and wholesale beef sector

production subsidy and countervailing duties in vertically related markets the hog pork case between canada and the united states this paper analyzes u s countervailing import duties aimed at offsetting the effects of a canadian hog production subsidy approximate countervailing duty formulae for two alternative objectives are derived the permissible range of these duties is illustrated and empirical evidence is provided to restore equilibrium at the presubsidy level in the u s hog market a countervailing duty on hog imports suffices this duty should be less than the unit hog production subsidy to restore equilibrium in both the u s hog and pork markets countervailing duties on both hog and pork imports are required such duties should be less than the unit subsidy and the duty on pork should be less than the duty on hogs

modeling the global relationships among economic growth energy consumption and co2 emissions abstract the relationships among economic growth energy consumption and greenhouse gas emissions needs to be paid attention since the characteristics of global warming is from economy and greenhouse gas emissions this study employs a panel cointegration and vector error correction model to discuss the dynamic economy energy environment nexus for 188 countries for the periods of 1993 2010 the empirical results indicate that there exist long run relationships between economic growth energy consumption and carbon dioxide emissions for all countries it is worth noting that energy consumption negatively affects gdp in the world as a whole and developing countries but not in developed countries and the unidirectional causality from energy consumption to carbon dioxide emissions exists both on developing and developed countries that means the developed countries should take more responsibility on the energy efficiency and mitigating greenhouse gas emissions ghge on other hand environmental regulations related to the prevention of environmental degradation as the economy grows need to be adopted by all countries

the causality relationship between energy consumption and gdp in g 11 countries revisited abstract this paper explores whether energy conservation policies can be implemented in countries with the same level of development that is is restraining energy consumption without compromising economic growth feasible in all industrialized countries a new granger non causality testing procedure developed by toda and yamamoto 1995 journal of econometrics 66 225 250 is applied to re investigate the relationship if any between energy consumption and income in 11 major industrialized countries the results clearly do not support the view that energy consumption and income are neutral with respect to each other except in the case of the united kingdom germany and sweden where a neutral relationship is found bi directional causality in the united states and uni directional running from energy consumption to gdp in canada belgium the netherlands and switzerland are found this indicates that energy conservation may hinder economic growth in the latter five countries further the causality relationship appears to be uni directional but reversed for france italy and japan which implies that in these three countries energy conservation may be viable without being detrimental to economic growth

turn on the lights macroeconomic factors affecting renewable energy in pakistan the objective of the study is to examine the relationship between macroeconomic factors i e population growth urbanization industrialization exchange rate price level food production index and live stock production index and renewable energy in pakistan over a period of 1975 2012 in addition this study uses oil rent as an intervening variable to overcome the biasness of the single equation model the results indicate that macroeconomic factors positively contributed to renewable energy consumption in pakistan the causality test indicate that there is a unidirectional causality running towards macroeconomic factors to renewable energy in pakistan however renewable energy granger cause oil rent but not via other route in addition there is bidirectional causality between exchange rate and live stock production in pakistan variance decomposition analysis shows that economic growth has a major contribution to increase renewable energy in pakistan

the european commission s sustainable consumption and production and sustainable industrial policy action plan abstract the promotion of sustainable consumption and production patterns is enshrined as a key objective in the renewed european union sustainable development strategy eu sds sustainable consumption and production is arguably the most challenging aspect of the eu sds it requires changes to the way products and services are designed produced used and disposed of taking into account producer and consumer behaviours this paper reviews the european commission s communication on the sustainable consumption and production and sustainable industrial policy action plan introduced on july 16 2008 the paper examines the priority areas identified for action the means adopted to improve energy and environmental performance of products as well as uptake by consumers the paper concludes that the absence of mandatory quantifiable targets and deadlines and a reliance on both cross sectoral and multi level relationships are likely to weaken the ability of the action plan s fundamental objective of decoupling economic growth from resource use

decomposition of co2 emissions change from energy consumption in brazil challenges and policy implications this study evaluates the changes in co2 emissions from energy consumption in brazil for the period 1970 2009 emissions are decomposed into production and consumption activities allowing computing the full set of energy sources consumed in the country this study aims to develop a comprehensive and updated picture of the underlying determinants of emissions change from energy consumption in brazil along the last four decades including for the first time the recently released data for 2009 results demonstrate that economic activity and demographic pressure are the leading forces explaining emission increase on the other hand carbon intensity reductions and diversification of energy mix towards cleaner sources are the main factors contributing to emission mitigation which are also the driving factors responsible for the observed decoupling between co2 emissions and economic growth after 2004 the cyclical patterns of energy intensity and economy structure are associated to both increments and mitigation on total emission change depending on the interval the evidences demonstrate that brazilian efforts to reduce emissions are concentrated on energy mix diversification and carbon intensity control while technology intensive alternatives like energy intensity has not demonstrated relevant progress residential sector displays a marginal weight in the total emission change

advertising in competitive markets in this paper small firms sell a homogeneous good to small consumers under conditions of free entry but consumers receive price information only through firms advertising in equilibrium every firm on the continuous price distribution buys less advertising than is socially optimal the result is robust if firms advertise in just one medium if readers of different advertising media are positively correlated excess advertising can occur in media used exclusively to advertise discount prices copyright 1991 by american economic association

negotiations and exclusivity contracts for advertising exclusive advertising on a given media outlet is usually profitable for an advertiser because consumers are less aware of competing products however for such arrangements to exist media must benefit as well we examine conditions under which such exclusive advertising contracts benefit both advertisers and media outlets referred to as stations by illustrating that exclusive equilibria arise in a theoretical model of the media advertisers and consumers who participate in both the product and media markets in the model stations sell advertising space to advertisers and broadcast advertising messages to consumers conditions leading to higher equilibrium levels of advertising can be unprofitable for advertisers because high levels of advertising make consumers better informed and thus lead to fiercer product price competition as a result media stations may be less profitable as well because their payoff is determined as a fraction of the advertiser surplus generated in the product market stations mitigate this effect by offering advertisers exclusive advertising contracts with such contracts consumers are less informed about competing products yielding higher producer surplus it is profitable for stations to offer exclusivity when commercial advertising is an important means for advertisers to inform consumers about their products

productivity growth in u s agriculture under dynamic adjustment a dynamic measure of productivity growth adjusted for deviations from the long run equilibrium is established within an adjustment cost framework an empirical application to u s agriculture is presented which permits identifying the dynamic linkages between technical change and productivity growth in u s agriculture total factor productivity as dynamically measured grew at 1 50 per annum the combined effect of scale quality adjusted input growth and long run disequilibrium input use contributes only 3 44 of the growth while technical change dominates the growth of total factor productivity

climate change adaptation a study of fuel choice and consumption in the us energy sector abstract using cross sectional data this paper estimates a national energy model of fuel choice by both households and firms consumers in warmer locations rely relatively more heavily on electricity rather than natural gas oil and other fuels they also use more energy climate change will likely increase electricity consumption on cooling but reduce the use of other fuels for heating on net american energy expenditures will likely increase resulting in welfare damages that increase as temperatures rise for example if the us warms by 5 c by 2100 we predict annual welfare losses of 57 billion

estimating intertemporal supply response in the fed beef market a partial adjustment model with monthly lag structures on expected output and input prices is used to estimate intertemporal supply behavior of fed beef previous research has provided conflicting supply elasticities the present work reconciles the conflicts by integrating different lengths of run into cattle marketing and placement decisions for example the model dynamics incorporate short run changes in cattle asset values and long run adjustments in resource use empirical results provide no evidence of short run supply fixity supply elasticities switch from negative to positive over time

dynamic adjustment in the u s dairy industry a dual model is used to examine the dynamic structure of the u s dairy industry properties implied by the theory of the competitive firm and independent adjustment of two quasi fixed inputs labor and herd size are tested and not rejected instantaneous adjustment however is soundly rejected for each quasi fixed input input adjustment to optimal levels is estimated to take about two years for labor and ten for cows quality adjustments of the labor and cow series do not fully embody the technological change that has occurred in this industry over the study period

retracted factors affecting commercial energy consumption in pakistan progress in energy the purpose of this study is to identify major macroeconomic factors that enhance energy consumption for pakistan through the cointegration error correction model and granger causality tests over a 32 year time period i e between 1980 and 2011 the study employed the bivariate cointegration technique to estimate the long run relationship between the variables an error correction model was used to determine the short run dynamics of the system while granger causality test was used to find the directions between these variables the study investigates the relation between four energy consumption variables i e oil petroleum consumption gas consumption electricity consumption and coal consumption and four macroeconomic factors which have further sub classifications i e balance of payment bop factors i e exports imports trade deficit worker s remittances and current account balance fuel factors i e carbon dioxide emissions natural resource depletion and net forest depletion agricultural crops yield per hectare i e wheat rice sugarcane maize and cotton and industrial production items i e beverages cigarettes motor tyres motor tubes cycle tyres and cycle tubes in order to manage robust data analysis the result confirms the long run relationship between total commercial energy consumption and macroeconomic factors in pakistan as oil petroleum consumption increases exports fuel factors agricultural crops yield per hectare and industrial items however the intensity of these factors are different in nature carbon dioxide emissions net forest depletion beverages motor tyres and motor tubes are more elastic with oil petroleum consumption however oil petroleum consumption decreases trade deficit and workers remittances in pakistan gas electricity and coal consumption increases agricultural crops yield per hectare and industrial production which shows that as agriculture and industry modernizes energy demand increases energizing the food production chain is an essential feature of agricultural development which is a prime factor in helping to achieve food security in pakistan the empirical results only moderately support the conventional view that energy consumption has significant long run casual effect on macroeconomic variables in pakistan the present study finds evident of unidirectional causality between the commercial energy consumption factors and macroeconomic factors in pakistan however there is some bidirectional causality exist which is running between electricity consumption ec and exports ec to imports ec to carbon emissions ec to natural resource depletion nrd and ec to wheat the results conclude that macroeconomic variables tend to positively respond to total primary energy consumption this indicates that increasing total commercial energy consumption may cause growth variables which show that pakistan is an input driven economy

alternative estimates of fed beef supply response to risk supply response models for fed beef incorporating risk by including both the mean and variance of output price are developed estimated and compared six different estimates of the mean and variance are obtained from futures prices arima processes and naive adaptive and rational expectations models empirical estimates are compared using nonnested testing procedures and indicate that the choice of the expectations model significantly influences elasticity estimates and whether supply response is positive or negative empirical evidence does not support any one model in particular suggesting that expectations are heterogenous rather than homogenous most agricultural production is characterized by a lag between the time input decisions are made and the time output actually reaches the market as a result supply response functions are based on the hypothesis that quantity produced depends on known input prices and producers expectations of output price expectations frequently have been modeled based solely on past prices examples include naive expectations adaptive expectations extensively reviewed by askari and cummings and autoregressive integrated moving average arima schemes gardner as well as others have used futures prices to estimate producers expected prices although chavas pope and kao found that futures prices are not good proxies for producers expectations

the multivariate flexible accelerator model its empirical restrictions and an application to u s manufacturing this paper derives an exhaustive set of restrictions implied by the multistock flexible accelerator specification of the adjustment cost model for the firm the flexible accelerator specification of the demand for capital and labor is estimated using u s manufacturing annual data for the 1947 1976 period the consistency of the data with the model is examined by testing the validity of the derived restrictions finally the conditions which permit aggregation over firms are determined and tested empirically the flexible accelerator specification has been popular in the empirical literature on interrelated investment and employment decisions see nadiri and rosen 38 coen and hickman 10 and schramm 40 more recent examples include sargent 39 berndt fuss and wavermann 4 berndt and morrison 6 and meese 34 under suitable assumptions the specification may be rationalized by the adjustment cost model of the firm eisner and strotz 13 lucas 30 mortensen 35 extends the work of lucas and derives some empirically testable restrictions of the accelerator specification that are implied by the adjustment cost framework the broad objective of this paper is to provide a more rigorous and comprehensive test of the adjustment cost model than is presently found in the literature this objective is achieved in three stages first we offer an alternative derivation of the mortensen restrictions and more importantly we prove theorem 1 that his restrictions are exhaustive i e we establish an integrability result for the flexible accelerator adjustment cost model second the flexible accelerator specification of the demand for capital and labor is estimated using total u s manufacturing annual data for the 1947 76 period it is assumed that firms minimize expected production costs subject to a technology which implies that capital and labor stocks are costly to adjust while a third factor materials is freely adjustable the consistency of the data with the adjustmentcost framework is examined by testing for the validity of the derived restrictions further we test the validity of some separability restrictions on the adjustmentcost technology that to varying degrees are imposed a priori in all of the cited empirical studies finally we provide a complete characterization of the individual firm technologies which justify the common assumption of the existence of a representative firm this problem of aggregation over firms which has been

greenhouse gas emissions energy consumption and economic growth a panel cointegration analysis from canadian industrial sector perspective abstract this paper investigates the long run and the causal relationship between greenhouse gas emissions energy consumption and economic growth for canadian industrial sectors over the period 1990 2007 the empirical findings suggest that in the long run equilibrium energy consumption has a positive and statistically significant impact on greenhouse gas emissions whereas a non linear relationship is found between greenhouse gas emissions and economic growth consistent with the environmental kuznets curve the short run dynamics conveys that there is a unidirectional granger causality running from energy consumption to greenhouse gas emissions from economic growth to greenhouse gas emissions and a weak unidirectional causality running from greenhouse gas emissions to energy consumption from economic growth to energy consumption in the long run however there seems to be a weak one way causality flowing from energy consumption and economic growth to greenhouse gas emissions

the practice of econometrics classic and contemporary provides hands on experience of econometrics with estimation and inference each chapter begins with a discussion of economic theory underlying the application

energy consumption carbon emissions and economic growth in china abstract this paper investigates the existence and direction of granger causality between economic growth energy consumption and carbon emissions in china applying a multivariate model of economic growth energy use carbon emissions capital and urban population empirical results for china over the period 1960 2007 suggest a unidirectional granger causality running from gdp to energy consumption and a unidirectional granger causality running from energy consumption to carbon emissions in the long run evidence shows that neither carbon emissions nor energy consumption leads economic growth therefore the government of china can purse conservative energy policy and carbon emissions reduction policy in the long run without impeding economic growth

informative advertising competition this paper investigates informative price advertising in an established product hotelling duopoly where firms compete for shares of a fixed market prices are uncertain because firms costs are private information for a sufficiently low cost of advertising advertising necessarily arises in equilibrium also the less balanced the initial distributions over costs the greater the potential for informative advertising moreover whenever firms use informative advertising it increases the firms expected profits and social welfare relative to the outcome without advertising

econometric analysis of trade exports imports energy consumption and co2 emission in six regions abstract the aim of this study is to explore the bi directional long run relationship between trade energy consumption trade co 2 emission exports energy consumption exports co 2 emission imports energy consumption and imports co 2 emission 189 countries from six different regions namely asia pacific eastern europe the americas middle east and north africa mena sub saharan africa ssa and western europe were selected the panel fully modified ols fmols was utilized taking the period of 1990 2011 the panel results show that all the regions excluding eastern europe show a long run positive relationship between the trade variables energy consumption and between the trade variable co 2 emission however at the country level the results reveal that the feedback long run positive relationship between the trade variables energy consumption and co 2 emission takes place in most cases when the share of trade of goods and services to gdp is significant and the level of the countries development is high however the negative or the non significant long run relationship between the variables takes place generally in countries when the trade variables do not play a large share in their gdp and when these countries are in early development stages

energy consumption income and carbon emissions in the united states abstract this paper investigates the effect of energy consumption and output on carbon emissions in the united states earlier research focused on testing the existence and or shape of an environmental kuznets curve without taking energy consumption into account we investigate the granger causality relationship between income energy consumption and carbon emissions including labor and gross fixed capital formation in the model we find that income does not granger cause carbon emissions in the us in the long run but energy use does hence income growth by itself may not become a solution to environmental problems

energy consumption economic growth and carbon emissions challenges faced by an eu candidate member abstract this paper investigates the long run granger causality relationship between economic growth carbon dioxide emissions and energy consumption in turkey controlling for gross fixed capital formation and labor the most interesting result is that carbon emissions seem to granger cause energy consumption but the reverse is not true the lack of a long run causal link between income and emissions may be implying that to reduce carbon emissions turkey does not have to forgo economic growth

investment in u s agriculture resource adjustment problems in u s agriculture are motivated against the background of the farm problem the adjustment cost hypothesis is invoked to specify and estimate consistently a system of dynamic investment demand and output supply equations by utilizing recent advances in dynamic duality theory the investment demand equations assume the form of a multivariate flexible accelerator results indicate that labor capital services and land exhibited quasi fixity while intermediate materials were a variable factor this can be construed as a form of asset fixity within aggregate u s agriculture the univariate flexible accelerator hypothesis is rejected

supply response and investment in the canadian food processing industry this paper reports on the estimation of a dynamic model of the food manufacturing industry in canada its major objectives are to analyze the determinants of investments and the production structure of the industry an important finding of the study is that the hypothesis of instantaneous capital adjustment to changing market conditions is statistically rejected capital stock adjustment to optimal levels takes approximately two and one third years another result is that although the industry is responsive to price changes a general pattern of inelastic factor demand and output supply prevails in the short run intermediate run and even in the long run

disaggregate energy consumption and industrial production in south africa abstract this paper tries to assess the relationship between disaggregate energy consumption and industrial output in south africa by undertaking a cointegration analysis using annual data from 1980 to 2005 we also investigate the causal relationships between the various disaggregate forms of energy consumption and industrial production our results imply that industrial production and employment are long run forcing variables for electricity consumption applying the toda h y yamamoto t 1995 statistical inference in vector autoregressions with possibly integrated processes journal of econometrics 66 225 250 technique to granger causality we find bi directional causality between oil consumption and industrial production for the other forms of energy consumption there is evidence in support of the energy neutrality hypothesis there is also evidence of causality between employment and electricity consumption as well as coal consumption causing employment

restrictions on price advertising in this paper the effects of advertising restrictions in an industry producing an undifferentiated product are analyzed when the product is undifferentiated advertising conveys information about price the standard intuition suggests that such prohibitions will raise buyer search costs making demand less elastic this raises price and profits in an industry advertising restrictions provide an indirect means of coordinating pricing strategies in this framework here we consider the cost side of the same argument the efficiency of firms in an industry is allowed to vary and information about costs is private in this environment efficient firms are hurt by advertising restrictions since lower advertised prices constitute their most effective competitive weapon we show that when the number of buyers and sellers is finite there is a nonzero probability that advertising restrictions will reduce every firm s price this occurs when all firms are more efficient than their competitors expect them to be f