financial integration and business cycles in a small open economy abstract the purpose of this study is to examine a dynamic stochastic general equilibrium framework with financial and informational frictions and foreign borrowing in the case of money growth and technology shocks for a small open economy and to analyze the implications of varying degrees of financial integration for aggregate fluctuations and propagation mechanisms in the economy the existence of informational asymmetries among the agents in the model necessitates financial intermediation in the economy moreover there is uncertainty involved in the production process which leads to collateralized borrowing by firms and therefore has to be taken into account in the design of the loan contracts between firms and financial intermediaries it is shown that increasing financial integration amplifies the effect of a positive temporary monetary shock on output consumption investment labor demand and loans whereas it has barely any implication for the impact of a positive temporary technology shock on the economy

resource allocation and use under collective rights and labour management in peruvian coastal agriculture a critical issue in the evaluation of labour management as a development policy is its impact on production in an effort to contribute to that evaluation and to the economics of labour management this study analyses production data collected from cooperative firms established by the peruvian agrarian reform the data present an unusual opportunity for careful microeconomic analysis of the reform itself as well as an opportunity to confront and refine existing propositions about the effects of the collective property rights of labour management on production property rights may affect production because of their effort on incentives for conventional resource allocation decisions they may also affect intrafirm principal agent decisions which determine the intensity with which given resources are utilised beginning with ward s i 958 paper a number of theoretical studies have compared labour managed and capitalist resource allocation and an approximate consensus has emerged about conditions under which differences occur in this study measures of the allocative behaviour of peruvian firms are estimated and compared with the theoretically expected behaviour of both capitalist and peasant agricultural producers the impact of collective ownership on the intensity of resource utilisation i e technical efficiency of the observable production function arouses greater theoretical dispute than the resource allocation question a collective assignment of property rights may weaken supervisory authority which can control free rider externality problems within the production process on the other hand participation of labour in management may foster cooperative attitudes and other social control devices which can fulfill the same functions as hierarchical supervision existing literature offers the competing hypotheses that labour management leads either to a breakdown in intrafirm coordination and the observable technical efficiency of production as jensen and meckling i 979 claim or to an improvement as vanek i 969 claims the results of the present paper do not unequivocably support either view instead they portray a diversity in labour managed production performance and suggest the importance of policy and institutional factors which condition the impact of labour management on production the results also provide a

on nonparametric supply response analysis in this paper we explore the usefulness of nonparametric methods in the investigation of production behavior and the estimation of price elasticities of output supply and input demand functions the approach can handle the situation where some data points are not consistent with production theory the method is illustrated by estimating supply demand elasticities of outputs and inputs in u s agriculture

the price elasticity of electricity demand in south australia abstract in this paper the price elasticity of electricity demand representing the sensitivity of customer demand to the price of electricity has been estimated for south australia we first undertake a review of the scholarly literature regarding electricity price elasticity for different regions and systems then we perform an empirical evaluation of the historic south australian price elasticity focussing on the relationship between price and demand quantiles at each half hour of the day this work attempts to determine whether there is any variation in price sensitivity with the time of day or quantile and to estimate the form of any relationships that might exist in south australia

spatial allocation and the shadow pricing of product characteristics abstract the paper considers an industry transforming primary commodities farm products into processed commodities food products it focuses on the allocation of embedded characteristics carbohydrate protein etc both across space and among commodities the approach generates a spatial competitive market equilibrium of production consumption transformation and trade for both primary and processed commodities along with the spatial distribution of shadow prices for the product characteristics the model provides a basis for analyzing the allocation and pricing of agricultural products food products and characteristics in spatial markets the empirical usefulness of the model is illustrated in the context of regional resource allocation in the u s dairy sector

long and short run elasticities of residential electricity consumption in china a partial adjustment model with panel data abstractwhile it has stabilized in developed world the per capita residential electricity consumption rec in developing countries such as china is growing very rapidly and this trend is very likely to continue built upon a provincial level panel data we employ a partial adjustment model to investigate the future trend of rec in china and factors that affect it we estimate the income and price short term and long term elasticities for urban and rural china respectively and compare the results with rec studies in other countries or regions the findings provide useful information to understand how the rec would grow in china as household income increases and how effective that price could be as an intervention tool

adverse selection and the financial accelerator many economists believe that credit market distortions create a financial accelerator which destabilizes the economy this paper shows that when credit market distortions arise from adverse selection they sometimes stabilize the economy rather than destabilize it the stabilizing forces are closely related to forces that cause overinvestment in static models when investment projects are equity financed or when contracts are written optimally the distortions always stabilize the economy thus stabilizing equilibria are a robust feature of the model the empirical distinction between accelerator and stabilizer equilibria is subtle many empirical tests are unable to distinguish between accelerator and stabilizer equilibria

tourism and temperature effects on the electricity consumption of the hospitality sector abstract the european union has recently presented a strategic long term vision for a climate neutral economy by 2050 considering that climate change is a serious concern for europeans a great socio economic transformation is necessary affecting all economic sectors on the one hand the european union considers that it is necessary to achieve net zero greenhouse gas emissions by 2050 on the other hand sectors need to adapt to a warming climate focusing on the tourism sector and using panel data referring to 12 spanish mediterranean provinces and the 1999 2014 time period this study tests the tourist stays and temperature effects on the electricity consumption of the hospitality sector by estimating extended energy environmental kuznets curves for the sector the results show that this curve is not supported instead electricity consumption progressively increases as tourism grows in addition the results indicate that temperature variables have notable influence over electricity use with a positive influence of global warming on electricity consumption finally results also show positive relationships between overnight stays in hotels with higher star ratings and electricity use while no significant price effects are observed electricity saving measures and renewable electricity generation promotion are recommended especially in the highest energy consuming establishments

the impact of china s economic reforms on agricultural productivity growth this paper presents a method for assessing the relative importance of price increases and strengthened individual incentives due to the introduction of the responsibility system for the post 1978 increase in china s agricultural productivity data on post 1978 chinese agricultural performance suggest that a little over three quarters of the measured productivity increase is due to payment system changes and the remainder to price increases we also use our method to calculate incentive indices giving an estimate of the fraction of their marginal product that peasants received under the pre 1978 regime

monetary policy in emerging markets can liability dollarization explain contractionary devaluations abstract in emerging markets external debt is denominated almost entirely in large developed country currencies such as the u s dollar this liability dollarization offers a channel through which exchange rate variation can lead to business cycle instability when firms assets are denominated in domestic currency and liabilities are denominated in foreign currency an exchange rate depreciation worsens firms balance sheets which leads to higher capital costs and contractions in capital spending to illustrate this i construct a quantitative sticky price small open economy model in which a monetary policy induced devaluation leads to a persistent contraction in output in this model fixed exchange rates offer greater stability than an interest rule that targets inflation

residential electricity demand in spain new empirical evidence using aggregate data this paper presents an empirical analysis on residential demand for electricity this analysis has been performed using aggregate panel data at the province level for 47 spanish provinces for the period from 2000 to 2008 for this purpose we estimated a log log demand equation for electricity consumption using a dynamic partial adjustment approach this dynamic demand function has been estimated using a two step system gmm estimator proposed by blundell and bond 1998 the purpose of this empirical analysis is to highlight some of the characteristics of spanish residential electricity demand particular attention has been paid to the influence of price income and weather conditions on electricity demand the estimated short and long run own price elasticities are negative as expected but lower than 1 furthermore weather variables have a significant impact on electricity demand

production organization and efficiency during transition an empirical analysis of east german agriculture enterprise restructuring is expected to improve efficiency in transition economies with data from former east germany we compare the efficiency of family farms and partnerships with large scale successor organizations of the collective and state farms lsos using parametric and nonparametric techniques we show that lsos display lower technical efficiency than do family farms and partnerships but that this difference is small and declining during transition mainly as a result of structural changes in agriculture family farms are not as scale efficient as partnerships and lsos and partnerships are superior to all other organizational forms

eco resorts vs mainstream accommodation providers an investigation of the viability of benchmarking environmental performance abstract per capita energy and water consumption figures of five fully accredited eco resorts were benchmarked against 11 hotels 13 condominium complexes and six caravan parks located in three major tourist destinations in queensland australia somewhat surprisingly it appears some eco resorts fail to achieve above average standards with respect to these dimensions of environmental performance the most efficient resource consumption outcomes were evident where resource use efficiency was factored in at the early stage of resort planning a noteworthy observation was that none of the businesses investigated could provide data for waste and wastewater production the problems of developing a benchmarking process for the consumption of water and electricity by accommodation providers are discussed a major obstacle was found in the fact that consumption rates are influenced by a multitude of site specific characteristics such as age of building building size and layout nature of operation extent of communal facilities climate etc with such a large number of factors affecting energy and water consumption one is drawn into the problem of how many benchmarking groups need to be developed in order for benchmarking accommodation complex resource consumption to be a meaningful exercise this also renders problematic the development of environmental compliance accreditation criteria the study s findings renew concerns about the focus of some industry administered green accreditation schemes and the emphasis placed on their role as a key instrument for promoting more sustainable outcomes for the tourist accommodation sector

electricity demand in tunisia this paper examines the global electricity demand in tunisia as a function of gross domestic product in constant price the degree of urbanization the average annual temperature and the real electricity price per kwh this demand will be examined employing annual data over a period spanning almost thirty one years from 1976 to 2006 a long run relationship between the variables under consideration is determined using the vector autoregressive regression the empirical results suggest that the electricity demand in tunisia is sensitive to its past value any changes in gross domestic product and electricity price the electricity price effects have a negative impact on long run electricity consumption however the gross domestic product and the past value of electricity consumption have a positive effect moreover the causality test reveals a unidirectional relationship between price and electricity consumption our empirical findings are effective to policy makers to maintain the electricity consumption in tunisia by using the appropriate strategy

tourism development energy consumption and environmental kuznets curve trivariate analysis in the panel of developed and developing countries abstract the study investigates the relationship between economic growth carbon dioxide emissions tourism development energy demand domestic investment and health expenditures with an aim to test the validity of the environmental kuznets curve ekc hypothesis in the panel of three diversified world s region including east asia pacific european union and high income oecd and non oecd countries the study covers the period of last nine years i e 2005 2013 the study used the principal component analysis pca to construct tourism development index which is the amalgamation of number of tourists arrivals tourism receipts and international tourism expenditures the results validate the inverted u shaped relationship between carbon emissions and per capita income in the region the results further substantiate the following causal relationships i e i tourism induced carbon emissions ii energy induced emissions iii investment induced emissions iv growth led tourism v investment led tourism and vi health led tourism development in the region

the performance of private and cooperative socialist organization postwar yugoslav agriculture socialist enterprises in yugoslav agriculture show higher levels of productivity than private producers the author examines the sources of these differences with total factor productivity estimates based on sectoral aggregate cobb douglas production functions which permit separation of environmental policy and organizational effects the results support the following conclusions cooperative socialist enterprises are not inherently inefficient and can even outperform private producers both types of producers were responding to their environment and their differential rates of technological change reflect the different constraints they faced and socialist enterprises exhibited technology adoption behavior similar to nonsocialist enterprises elsewhere copyright 1987 by mit press

is private farming more efficient than socialized agriculture this paper examines the technical efficiency of state and private farms in poland for the period 1960 74 we find that the average technical efficiency of the two types of farms does not differ although the dispersion of efficiency levels is greater among state farms than among private ones we do find clear evidence of allocative inefficiency with state farms oversupplied with fertilizer and machinery

aggregating capacity limiting separable inputs 1 introduction in many empirical studies on productivity researchers frequently need to use data on capital goods in their analyses unfortunately capital goods are extremely heterogeneous and data on them are difficult to capture in a single measure there are many different types and vintages of capital goods in the same firm it is very difficult to gather all information on all capital goods in practice capital goods are aggregated into one input named capital recent studies that aggregate capital goods are fare grosskopf and tyteca 1996 who used the installed generating capacity as capital acemoglu and zilibotti 2001 who applied the perpetual inventory method to recover capital from investment mathijs and swinnen 2001 who adopted the deflated book value of fixed assets as capital and taymaz and saatci 1997 who used the depreciation allowance as capital though each method has its merits there may be information loss during the process of aggregating capital goods five possible types of errors during the aggregation process are identified here they are i error of separability there is a close relation between input aggregation and separability when different capital goods are separable from other inputs it is possible to find an aggregate of capital goods without information loss in this case there is no error of separability if capital goods are not separable from other inputs however and we aggregate them then actually we are approximating the production function by a separable function mak 1988 noted that the success of approximating a nonseparable function depends on whether that function is close enough to a separable function thus when the technology is not separable the error of separability occurs when the production function is not close to a separable function the error of separability is even larger ii error of formula suppose the production function is approximated by a separable function then there is a way to aggregate capital goods if the formula we use to aggregate capital goods cannot give us an aggregation consistent with that separable function then we face the error of formula iii error of measuring opportunity costs some measures of capital require information about prices of capital goods in economic theories all prices of inputs are the opportunity costs of using those respective inputs if the prices used do not reflect opportunity costs then this error occurs iv error of the deflator when we need to add up capital goods bought in different periods by using price information we have to deflate the values if an inappropriate deflator is chosen then there is an error of the deflator v error of accounting practices information reported by firms follows bookkeeping rules the value of fixed assets for example may not be the same as the concept of capital in economics thus investment and fixed assets may be biased this problem is larger when firms in different industries or countries are compared whether or not there is the error of separability depends on the structure of the technology it is beyond the control of researchers though we must cope with the error of separability what we can do is to avoid the other four errors in this paper i link the literature on separability with that on maximum capacity in favor of using the output capacity of plants to aggregate heterogeneous capital goods we find that when some inputs are separable in the production function their maximum capacity can be used as an aggregate measure for them this aggregate measure is economically meaningful and empirically tractable this paper is organized as follows section 2 discusses the properties of capacity limiting inputs section 3 relates capacity limiting inputs to separability section 4 comments on some applications of aggregating captial goods section 5 concludes the paper

international tourism energy consumption and environmental pollution the case of turkey abstract this study investigates the long run equilibrium relationship between tourism energy consumption and environmental degradation as proxied by carbon dioxide co 2 emissions in turkey which attracts more than 30 million tourists per year making it the sixth most visited country in the world the study results reveal that tourism and energy consumption are in a long term equilibrium relationship with co 2 emissions in the tourism induced model co 2 emissions converge to the long term equilibrium path by a 91 01 percent speed of adjustment every year through the channels of tourism energy consumption and aggregate income further the results of the impulse response and variance decompositions reveal that the reaction of energy consumption and therefore co 2 emissions to changes in tourism development is positive and gains strength in the longer periods this implies that tourism development in turkey has resulted not only in considerable increases in energy use but also considerable increases in climate change as demonstrated by the econometric analysis of this study

rural reforms and agricultural growth in china this paper employs province level panel data to assess the contributions of decollectivization price adjustments and other reforms to china s agricultural growth in the reform period decollectivization is found to improve total factor productivity and to account for about half of the output growth during 1978 84 the adjustment in state procurement prices also contributed positively to output growth its impact came mainly from the responses in input use the effect of other market related reforms on productivity and output growth was very small reasons for slowdown in agricultural growth after 1984 are also analyzed copyright 1992 by american economic association

dynamic linkages between sustainable tourism energy health and wealth evidence from top 80 international tourist destination cities in 37 countries this study examines the relationship between sustainable tourism energy health and wealth in a panel of 37 tourists induced countries that covered around top 80 international tourist destination cities the panel generalized method of moments gmm estimator is used to evaluate the dynamic linkages between the variables the results show that inbound tourism has a positive relationship with energy demand health expenditures per capita income fdi inflows trade and carbon dioxide co2 emissions while outbound tourism increases health expenditures international tourism receipts and global financial crisis increases greenhouse gas ghg emissions and co2 emissions respectively economic growth and trade openness both increases inbound tourism while fdi inflows increase tourism receipts the study confirms environmental kuznets curve ekc for co2 emissions and ghg emissions which eventually indicates that growth reduces the environmental impact of economic activity in the premises of international tourism indicators the results further validate the tourism led growth hypothesis in a panel of selected countries

electricity demand elasticities and temperature evidence from panel smooth transition regression with instrumental variable approach abstract this study applies a non linear model i e the recently developed panel smooth transition regression pstr model and takes into account the potential endogeneity biases to investigate the demand function of electricity for 24 oecd countries from the period 1978 2004 our empirical results demonstrate that there is a strongly non linear link among electricity consumption real income electricity price and temperature a result that is new to the literature as real income rises electricity consumption rapidly increases first and after the level of real income exceeds approximately us 2500 its increasing rate turns slow down an increase in electricity price has a negative or no influence on electricity consumption evidence of a u shaped relationship between electricity consumption and temperature is supported and the threshold value of temperature is approximately 53 f which is endogenously determined furthermore the estimated elasticities of time dynamic indicate that electricity demand is income inelastic price inelastic and temperature inelastic as time goes on the absolute elasticities of electricity demand gradually decrease with respect to real gdp and electricity price whereas they gradually increase with respect to temperature suggesting that the impact of temperature on electricity demand is becoming more important in recent years

evolution of the external account under international capital market frictions abstract we analyze the time path for the external account during the convergence process when repudiation risk and moral hazard limit access to international capital markets we show that the transition is divided into three phases and the external account evolves nonmonotonically

understanding the energy gdp elasticity a sectoral approach abstract this paper uses per capita data for 132 countries over 1960 2010 to estimate elasticities of sectoral energy use with respect to national gross domestic product gdp we estimate models in both levels and growth rates and use our estimates to sectorally decompose the aggregate energy gdp elasticity our estimates show that residential energy use is very inelastic to gdp if primary solid biofuels are counted in energy use tallies especially at low income levels residential use of electricity is more tightly linked to gdp as is energy use by the transportation industrial and services sectors agriculture typically accounts for a small share of energy use and has a modest energy gdp elasticity the aggregate energy gdp elasticity tends to be higher for countries at higher income levels in large part because traditional use of primary solid biofuels is less important gasoline prices winter temperature population and land area are among other factors influencing sectoral energy use

the economics of agricultural decollectivization in east central europe and the former soviet union 1989 include both the privatization of agricultural production assets and the restructuring of state and collective farms farm restructuring and more specifically the breakup of large scale agricultural production units into individually operated farms a process we define as decollectivization differ considerably for the various ece and fsu countries differences in decollectivization can be observed across countries between regions within a country and over time we argue that these differences are not random this article identifies the factors that affect the decollectivization process and shows how they are consistent with empirically observed differences in agricultural decollectivization in ece and fsu countries the decollectivization process is a consequence of the decision of collective farm members to leave the collective production framework and start up individual farms factors affecting this decision are the expected productivity and profitability of individual farming relative to collective farming and the costs for individuals to leave the collective farm and start up an individual farm these costs are affected by land reform privatization and decollectivization regulations the relative productivity of individual versus collective farming depends on the distribution of collective farmers productivity the prereform average collective farm productivity and the advantages and disadvantages of individual farming compared to collective farming the literature on decollectivization identifies both advantages and disadvantages in collective production some of which would not extend beyond the transition period disadvantages include high transaction costs associated with the monitoring of labor and inefficiencies due to the right of

efficiency in social versus private agricultural production the case of yugoslavia this paper extends the work of michael l boyd 1987 by examining the question of efficiency in yugoslavian agricultural production using the stochastic production frontier the authors fin d the private sector produces with higher output efficiency than the social sector next they examine regional efficiency differences the authors findings reinforce earlier analysis of the economic impact of regional development policy pursued in yugoslavia less developed republics appeared unable to utilize efficiently the large volume of investment resources allocated from the more developed republics via the central government copyright 1993 by mit press

testing the transport energy environmental kuznets curve hypothesis in the eu27 countries abstract transport activities are essential for economic and social development nevertheless the transport sector has also shown the fastest growth in energy consumption in the european union and its contribution to increasing greenhouse gas emissions merits the thorough attention of academics and policy makers in this paper we analyze the relationship of economic growth and transport activities with transport final energy consumption energy kuznets curves are estimated for a panel data set covering the eu27 countries in the period 1995 2009 for total transport energy use household transport energy use and productive transport energy use all three in absolute and per capita energy use terms the productive transport energy use and gross value added relationship are further considered as per hour worked finally the control variables of energy prices and differences in the economic structures are tested empirical results show that the elasticity of transport energy use with respect to gross value added in per capita terms decreases from a threshold for the three transport energy consumption variables but the turning point of improved environmental quality is not reached in any instance

estimation of elasticity price of electricity with incomplete information abstract the sharp increase in energy prices and growing concern for environmental issues among other things are behind the renewed interest in energy demand estimation however there is scarce academic literature that takes real situation of energy suppliers into account high quality but incomplete data in this paper we propose a useful and rather simple instrument for estimating electricity demand with the incomplete and or imperfect data currently available to suppliers in particular using real expenditure and consumption data on electricity we employ a model of random effects for panel data to estimate residential and industrial electricity demand in spain

how china s urbanization impacts transport energy consumption in the face of income disparity abstract this paper estimates the transport energy consumption of 30 provinces in china from 1997 to 2011 by applying the stirpat model the relationship between urbanization and transport energy consumption using control variables such as population gdp per capita and the proportion of tertiary industry in gdp is investigated considering the disparities of income the impacts of urbanization on transport energy consumption might be distinct therefore this paper estimates the income threshold value and analyzes the effects of urbanization on transport energy consumption in the light of income differential using the panel threshold regression model based on the results some policy suggestions are offered

behavioural and material determinants of production relations in agriculture in this essay we develop a framework for analysing the major institutions governing the production and exchange of output and the primary factors of production in rural areas the analysis incorporates general considerations of risk and information constraints jointly with the principal material attributes of agriculture and of agricultural production factors the framework is used to analyse barriers to the existence of the major intertemporal and factor markets it is applied specifically to land scarce environments for which it provides an internally consistent explanation for many of the well documented institutional features of such settings in addition the analysis provides new implications for among other phenomena the inter relationships among ownership holdings operational scale family size and factor productivity for the scarcity of animal rental markets and use of animals as collateral for the renting out of land by small landowners and for the existence of plantations for certain crops

the dynamic effects of firm level borrowing constraints in this paper i develop a detailed dynamic model of firm behavior in order to see whether financial constraints and endogenous exit are important propagation mechanisms to do this i construct an economy where firms face financial constraints fixed costs and persistent idiosyncratic shocks using numerical methods i analyzehowa large collection of these firmsresponds to aggregate productivity shocks a common result is that financial constraints tend to dampen the economy s initial response to aggregate productivity shocks but equity accumulation and exit dynamics amplify the longer term response the relative sizes of these two effects however are sensitive to firms environments

an activity analysis model of the environmental performance of firms application to fossil fuel fired electric utilities the productivity of firms when some outputs pollution are undesirable has been studied in the literature for some time in this paper we introduce an environmental performance indicator based on the decomposition of overall factor productivity into a pollution index and an input output efficiency index this indicator is compared to the more conventional jaggi and freedman 1992 model results are given for illustrative purposes using data from u s fossil fuel fired electric utilities the rankings of the utilities obtained with the two models show significant divergence which is due to the different ways in which the undesirable outputs are dealt with as well as due to the different possible tradeoffs between the pollutants released into the atmosphere and the resources used as inputs

collective agricultural production a solution for transition economies abstract the paper examines theoretical reasons and provides examples for productivity differences between agricultural service cooperatives and collectives service cooperatives can utilize economies of scale enhance competitiveness and provide technical information advantages that often outweighed problems of free riding low investment and excessive political intervention agricultural collectives while not adding substantial advantages are in addition associated with problems of supervision and effort supply tendencies to substitute casual workers or mechanization for regular members and low investment incentives while collective forms of organization in transition economies respond to high risk and market imperfections they do so inefficiently policies that create conditions for service cooperatives to compete may lead to large productivity gains