cooperative and noncooperative r d in duopoly with spillovers contrary to the usual assumption made in most oligopoly models relations among firms are seldom of a wholly cooperative or noncooperative type in many situations they compete in some fields while they cooperate in others an important example is the case of cooperative research efforts bringing fierce competitors together two types of agreement are observed first r d cooperation can take place at the so called precompetitive stage companies share basic information and efforts in the r d stage but remain rivals in the market place 1 a second type of agreement involves an extended collusion between partners creating common policies at the product level the usual justifications of this extension are the difficulties of protecting intellectual property the idea is then to allow partners who have achieved inventions together to also control together the processes and products which embody the results of their collaboration in order to recuperate jointly their r d investments 2 what could be expected from these types of agreement is a reduction in r d expenditures because of less wasteful duplication and a reduction of total production because of more reprinted from the american economic review 78 5 1133 1137 1988 center for operations research econometrics 1348 louvain la neuve belgium we are grateful to jean

total factor carbon emission performance of the chinese transportation industry a bootstrapped non radial malmquist index analysis this paper proposes a non radial malmquist co2 emission performance index nmcpi for measuring dynamic changes in total factor co2 emission performance over time this index enables the consideration of non radial slacks in the conventional malmquist co2 emission index mcpi the nmcpi is calculated based on a non radial directional distance function derived by several data envelopment analysis dea models furthermore nmcpi could be decomposed into an efficiency change ec index and technological change tc index a bootstrapping approach is conducted to introduce statistical inferences into the nmcpi and its decompositions based on the proposed indices the dynamic co2 emission performance change and its decompositions of the chinese regional transportation industry from 2002 to 2010 are investigated the empirical results demonstrate that the total factor carbon emission performance of the transportation industry as a whole decreased by 32 8 over the period and this reduction was primarily caused by technological decline

the distribution of earnings in an equilibrium search model with state dependent offers and counteroffers we construct an equilibrium job search model with on the job search in which firms implement optimal wage strategies under full information in the sense that they leave no rent to their employees and counter the offers received by their employees from competing firms productivity dispersion across firms results in wage mobility both within and across firms workers may accept wage cuts to move to firms offering higher future wage prospects equilibrium productivity dispersion across ex ante homogeneous firms can be endogenously generated productivity dispersion then generates a nontrivial wage distribution which is generically thin tailed as typically observed in the data

experimental comparison of impact of auction format on carbon allowance market abstract carbon allowances auctions are a good way to achieve the carbon allowance allocations under international agreements to address global climate change based on an economic experiment this paper compares three possible carbon allowance auction formats uniform price auction discriminatory price auction and english clock auction with heterogeneous bidders coal power plants and gas power plants from four perspectives carbon price auction efficiency demand withholding and fluctuations in power supplies possibilities of collusion among bidders and impacts of allowance banking and penalty price on bidders behaviors under different auction formats are also examined the results show that 1 when there are relatively more bidders and there are no obvious communications between them despite there being some tacit collusion efficiency of english clock auction is greater than the other two formats 2 when there are relatively fewer bidders and there are obvious communications between them explicit collusions are observed under english clock auction in this case discriminatory price auction helps prevent collusion to some extents 3 in the banking scenario more speculations are observed while penalty price exacerbates price volatility

when strong ties are strong networks and youth labour market entry the conditions under which young workers find their first real post graduation jobs are important for their future careers and insufficiently documented given their potential importance for young workers welfare to study these conditions and in particular the role played by social ties we use a swedish population wide linked employer employee data set of graduates from all levels of schooling that includes detailed information on family ties neighbourhoods schools class composition and parents and children s employers over a period covering years with both high and low unemployment together with measures of firm performance we find that strong social ties parents are an important determinant for where young workers find their first job the effects are larger if the graduate s position is weak low education bad grades during high unemployment years and when information on potential openings are likely to be scarce on the hiring side by contrast the effects are larger if the parent s position is strong long tenure high wage and if the parent s plant is more productive the youths appear to benefit from the use of strong social ties through faster access to jobs and by better labour market outcomes as measured a few years after entry in particular workers finding their entry jobs through strong social ties are considerably more likely to remain in this job while experiencing better wage growth than other entrants in the same plant firms also appear to benefit from these wage costs relative to comparable entrants starting at a lower base they also benefit on the parents side parents wage growth drops dramatically exactly at the entry of one of their children in the plant although this is a moment when firm profits tend to be growing indeed the firm side benefits appear large enough for at least small firms to increase job creation at the entry level in years when a child of one of their employees graduates

a multi criteria decision analysis model for carbon emission quota allocation in china s east coastal areas efficiency and equity abstract the allocation of carbon emission quotas is recognized as a fundamental and critical step towards the establishment of an effective nationwide carbon emissions trading cet market in china this paper aims to examine the quota allocation pertaining to china s east coastal areas these regions are pioneers in reformation and the domestic heavy emitters in this paper a multi criteria decision analysis model is proposed this model is based on the principles of efficiency and equity in order to reflect the true efficiency of carbon emissions a weighted russell direction distance model is employed three criteria namely capacity responsibility and potential are used to evaluate the degrees of equity furthermore different situations are set to evaluate the related indicators the results indicate the following 1 industrial provinces have less carbon emission quota increments 2 the yangtze river delta economic zone has notably improved energy efficiency and future quota increments correspond with the zone s current carbon emissions 3 circum bohai sea economic zone will be a major buyer of carbon emission quotas while pan pearl river delta economic zone currently receives surplus quota 4 the overall allocation of quotas converts from uneven to even as a result of gdp growth these results provide a reference for collaborative regional reductions in carbon emissions and for the construction of a cet market

benchmarking in the european union emissions trading system abatement incentives abstract this paper investigates abatement incentives for allowance allocation based on output and sector specific benchmarks here called output based allocation or benchmarking special attention is given to updated allocation and we assume that allowances can be traded with other sectors open cap we confirm earlier studies that output based allocation based on ex ante data provide the same abatement incentives as auction or grandfathering and also confirm that output based allocation with updated output and ex ante benchmarks provides as high abatement incentives as auction but constitutes a production subsidy however we also find that benchmarking with updated output and updated benchmarks reduces abatement incentives somewhat but less so than updated grandfathering an allocation rule where the sector cap is prescribed ex ante for instance based on historic emissions and distributed to installations in proportion to their updated production preserves full abatement incentives and avoids some of the costs associated with the determination of benchmarks however this rule also constitutes a production subsidy which decreases with industry concentration if a sector is split into smaller groups each with one benchmark per sub sector benchmarking evolves toward grandfathering since benchmarking is conditioned on production this allocation method protects production from leakage i e migrating to areas where firms face no emissions cost this may actually be the most compelling reason for choosing benchmarking

street crime and street culture a model shows how reputation concerns can support widespread street crime a street culture where the direct incentives for such behavior are weak there are social benefits to street reputations but those benefits are dominated when reputation concerns draw into crime those who obtain no direct gain from it the model matches facts about violent crime that a standard model cannot easily explain including low monetary returns disproportionate victimization of the young and poor and high variance in rates across small distances the model generates novel implications for policy and social science including a negative effect of social capital

an on the job search model of crime inequality and unemployment we extend simple search models of crime unemployment and inequality to incorporate on the job search this is valuable because although simple models are useful on the job search models are more interesting theoretically and more relevant empirically we characterize the wage distribution unemployment rate and crime rate theoretically and use quantitative methods to illustrate key results for example we find that increasing the unemployment insurance replacement rate from 53 to 65 percent increases unemployment and crime rates from 10 and 2 7 percent to 14 and 5 2 percent we show multiple equilibria arise for some fairly reasonable parameters in one case unemployment can be 6 or 23 percent and crime 0 or 10 percent depending on the equilibrium

impact of emission regulation policies on chinese power firms reusable environmental investments and sustainable operations abstract this study investigates the impact of emission regulation policies i e emergency response policy versus long term protection policy on the investment levels of reusable environmental facilities e g desulphurization pumps used by coal fired power plants in china to improve their sustainable operations to set up a baseline for further analysis and compare the impact of emission regulation policies an improved framework for performance evaluation of sustainable operations is developed in this study by integrating classical data envelopment analysis dea and exponential learning curve the proposed mathematical models are applied into an empirical study of 27 major million kw coal fired power plants in mainland china empirical analysis shows that the interactions among official emission regulation policies reusable environmental investment rei and sustainable operations management of coal fired power plants in china several policy suggestions are provided for power firm managers and policy makers in china specifically we suggest that the chinese government should implement long term protection policies in less developed regions instead of emergency response policies

regional allocation of carbon emission quotas in china evidence from the shapley value method abstract it is an important task for china to allocate carbon emission quotas among regions so as to realize its carbon reduction targets and establish the national cap and trade carbon market meanwhile it is supposed to be cost effective to jointly reduce china s carbon emissions through some collaborative activities among regions then a natural question is how to allocate the quotas among regions in light of the collaboration for this purpose the shapley value method is adopted and the results show that first the regions with higher gdp higher carbon outflow and higher carbon reduction connection should be allocated more carbon quotas moreover when the collaboration is considered the optimal allocation of carbon quotas among regions will change significantly compared to the basic quotas by the entropy method and the central region is allocated the largest proportion of carbon quota among regions which indicates its largest radiation effect besides the collaboration between the central region and northern coast region and that between the central region and the eastern region should be paid close attention these results may provide insightful support for decision makers to promote collaborative carbon reduction and allocate carbon quotas in china

urban poverty and juvenile crime evidence from a randomized housing mobility experiment this paper uses data from a randomized housing mobility experiment to study the effects of relocating families from high to low poverty neighborhoods on juvenile crime outcome measures come from juvenile arrest records taken from government administrative data our e ndings seem to suggest that providing families with the opportunity to move to lower poverty neighborhoods reduces violent criminal behavior by teens

comparisons of initial carbon allowance allocation rules in an o2o retail supply chain with the cap and trade regulation abstract this paper focuses on an o2o retail supply chain in the context of low carbon environment the decision models are constructed under three cases without cap and trade regulation cap and trade regulation based on grandfathering mechanism and cap and trade regulation based on benchmarking mechanism the emission reduction strategies of the supply chain members in the three cases are then discussed the paper compares the effects of the grandfathering and benchmarking mechanisms on the firm s decisions profits and social welfare firstly the results show that the unit carbon quota plays a decisive role in firm s decisions compared with the grandfathering methodology the benchmarking one can more effectively push manufacturers to produce low carbon products and motivate retailers to promote low carbon products secondly it is profitable for the retailer to cooperate with a manufacturer who has lower emission reduction cost simultaneously the retailer will prefer the benchmarking mechanism to the grandfathering mechanism thirdly for the government it is beneficial to use grandfathering mechanism for low carbon emission firms and use benchmarking mechanism for high carbon emission firms also the paper provides government and firms with conditions where the benchmarking allocation method is more suitable for sustainable development the government s decision on benchmarks is a critical factor in maximizing the social welfare

wage rigidity and job creation recent research in macroeconomics emphasizes the role of wage rigidity in accounting for the volatility of unemployment fluctuations we use worker level data from the cps to measure the sensitivity of wages of newly hired workers to changes in aggregate labor market conditions the wage of new hires unlike the aggregate wage is volatile and responds almost one to one to changes in labor productivity we conclude that there is little evidence for wage rigidity in the data

local social capital and geographical mobility in the north of europe club membership is higher than in the south but the frequency of contacts with friends relatives and neighbors is lower we link this fact to another one the low geographical mobility rates in the south of europe relative to the north to interpret these facts we build a model of local social capital and mobility investing in local ties is rational when workers do not expect to move to another region we find that observationally close individuals may take different paths characterized by high local social capital low mobility and high unemployment vs low social capital high propensity to move and higher employment probability employment protection reinforces the accumulation of local social capital and thus reduces mobility european data supports the theory within a country and at the individual level more social capital is associated with lower mobility

the impact of china s carbon allowance allocation rules on the product prices and emission reduction behaviors of ets covered enterprises abstract it is an important task for china to allocate carbon emission allowance to realize its carbon reduction target and establish carbon trading market china has designed several allocation rules within seven pilot regions what influence those rules may cause is closely related with the enthusiasm of emission trading scheme ets covered enterprises participation in carbon market and more importantly with the mechanism design and sustainable development of carbon market for this purpose the multi stage profit model is developed to analyze the ets covered enterprises product prices and emission reduction behaviors under different allocation rules the results show that first under the rules of grandfathering self declaration and auctioning when deciding the optimal product price and optimal carbon emission reduction those enterprises may focus on maximizing current stage profit however under the rule of benchmarking those enterprises may care more about the impact of current decisions on the profit in next stage second the optimal product price policy is positively correlated with the price of the same kind products consumers low carbon awareness and government subsidy finally along with the increase of carbon price consumers low carbon awareness and government subsidy and the decrease of carbon emission cap those enterprises tend to reduce carbon emissions

the cyclicality of the user cost of labor abstract the user cost of labor is the expected difference between the present discounted value of wages paid to a worker hired in the current period and that paid to a worker hired in the next period analogous to the price of any long term asset the user cost not wage is the relevant price for a firm that is considering adding a worker i construct its counterpart in the data and estimate that it is substantially more procyclical than average wages or wages of newly hired workers i demonstrate an application of the finding using the textbook search and matching model

agglomeration city size and crime this paper analyzes the relationship between crime and agglomeration where the land labor product and crime markets are endogenously determined our main theoretical findings are the following i better accessibility to jobs decreases crime in the short run but may increase crime in the long run ii the per capita crime rate increases with city size iii when allowing for endogenous policing lower commuting costs make the impact of police on crime more efficient

carbon leakage grandfathering as an incentive device to avert firm relocation emission allowances are sometimes distributed for free in an early phase of a cap and trade scheme to reduce adverse effects on the profitability of firms this paper investigates whether grandfathering can also be used to avert the relocation of firms to countries with lower carbon prices we show that under certain conditions relocation can be averted in the long run even if the grandfathering scheme is phased out over time and immediate relocation is profitable in its absence this requires that the permit price triggers sufficient investments into low carbon technologies or abatement capital that create a lock in effect which makes relocation unprofitable

on the design of optimal grandfathering schemes for emission allowances to meet its commitment under the kyoto protocol the eu plans to implement an emissions trading system whith grandfathering of allowances besides having distributional impacts the choice of the grandfathering scheme may affect efficiency if firms anticipate how future allocations depend on upcoming decisions in this paper we determine central design rules for optimal grandfathering within a simple two period model we find that for small open trading systems where allowance prices are exogenous first best second period grandfathering schemes must not depend on firm specific decisions in the first period second best schemes correspond to a ramsey rule of optimal tax differentiation and are generally based on both previous emissions and output however ofr closed emissions trading systems i e endogeneous allowance prices firstand second best rules coincide and must not depend on previous output levels they consist of an assignment proportional to the emissions in the first period plus a term which does not depend on firm specific decisions in either of the two periods

what accounts for the decline in crime in this article we analyze recent trends in aggregate property crime rates in the united states we propose a dynamic equilibrium model that guides our quantitative investigation of the major determinants of observed patterns of crime our main findings can be summarized as follows first the model is capable of reproducing the drop in crime between 1980 and 1996 second the most important factors that account for the observed decline in property crime are the higher apprehension probability the stronger economy and the aging of the population third the effect of unemployment on crime is negligible fourth the increased inequality prevented an even larger decline in crime overall our analysis can account for the behavior of the time series of property crime rates over the past quarter century

a fuzzy stochastic model for carbon price prediction under the effect of demand related policy in china s carbon market abstract the establishment of china s carbon market has an obvious policy oriented feature and the carbon price is easily affected by demand related policies within a compliance period as prior models cannot help with clear simulation of the volatility of carbon price in china this paper develops a fuzzy stochastic model to predict such price under the effect of demand related policy first we quantify corporate final profit obtained from carbon trading based on different free allowance policies to measure the actual allowance demand in the carbon market second based on such demand we add the fuzzy number in each parameter of a stochastic differential equation and then develop a fuzzy stochastic model that can help to analyse the effect of demand related policy on carbon price in the immature carbon market third by analysing the demand related policy formulated in the second developing phase of the shanghai environment and energy exchange from nov 17 in 2016 through our model we predict the price trend after each demand related policy publication experimental results reveal the accurate fitting effect of the developed model that can help to estimate the supply and demand in the carbon market and evaluate the effectiveness of current carbon trading policy as well further our model can provide a robust theoretical implication for both corporate carbon trading strategies and governmental regulations on carbon demand related policy

sectoral shifts and cyclical unemployment a substantial fraction of cyclical unemployment is better characterized as fluctuations of the frictional or natural rate than as deviations from some relatively stable natural rate shifts of employment demand between sectors of the economy necessitate continuous labor reallocation since it takes time for workers to find new jobs some unemployment is unavoidable this paper presents evidence that most of the unemployment fluctuations of the seventies unlike those in the sixties were induced by unusual structural shifts within the u s economy simple time series models of layoffs and unemployment are constructed that include a measure of structural shifts within the labor market these models are estimated and a derived natural rate series is constructed

crime and social interactions the high variance of crime rates across time and space is one of the oldest puzzles in the social sciences this variance appears too high to be explained by changes in the exogenous costs and benefits of crime we present a model where social interactions create enough covariance across individuals to explain the high cross city variance of crime rates this model provides an index of social interactions which suggests that the amount of social interactions is highest in petty crimes moderate in more serious crimes and almost negligible in murder and rape

job information networks neighborhood effects and inequality this paper explores the theoretical and empirical literature to examine the use by different social groups of informal sources of information provided by friends relatives and acquaintances during job search and its consequences for the job market it also addresses the role of network structure and size the resource endowments of contacts and nature of the links between contacts to explain differences in the effects of job information networks in doing so the paper also turns to the sociology literature on job information networks and provides an economic perspective on such sociological concepts as strong versus weak ties inbreeding distance from structural holes etc the paper distinguishes between models of exogenous job information networks that is where individuals obtain job related information through a given social structure and endogenous job information networks which are social networks that result from individuals uncoordinated actions the paper pays special attention to such issues as physical and social proximity and sharing of information and discusses them in the context of the recent social interactions and neighborhood effects literature finally the paper outlines a model that integrates job information networks where interactions occur in business cycle frequencies with the dynamics of human capital formation which include the joint effects of parental community and neighborhood human capital and are set in life cycle frequencies for the purpose of organizing suggestions for future research and examining earned income inequality

carbon emissions quotas in the chinese road transport sector a carbon trading perspective abstract in response to the growing need to reduce carbon emissions it is necessary to explore the design of carbon trading mechanisms and discuss allocation options for the transport sector this paper examines the allocation of carbon quotas with the introduction of an emissions trading scheme ets in the chinese road transport sector aiming to simulate the allocation of carbon emissions quotas we forecast vehicle possession using a gray forecast model and trend extrapolation consider the carbon dioxide co2 emissions of the transport sector using a top down approach and design three policy scenarios we provide the following findings first vehicle possession in the road transport sector and carbon emissions both display an increasing trend reaching 180 million units and 6 6 billion tons by 2020 respectively second the road transport sector has the largest carbon quota under the benchmark scenario and the smallest under a low carbon scenario the difference between these two scenarios is 2 7 billion tons of carbon emissions finally we design a carbon emissions trading mechanism for the transport sector based on china s special development period and provide a sensitivity analysis

on the political economy of income redistribution and crime this article analyzes a general equilibrium model in which agents choose to specialize in either legitimate or criminal activities expenditures on police to apprehend criminals as well as income redistribution are determined endogenously through majority voting we investigate how crime redistribution and police expenditures depend on characteristics of the underlying distribution of income earning abilities and on the apprehension technology our model accounts for the positive correlation between inequality and crime the positive correlation between expenditures on police and redistribution and the lack of correlation between crime and redistribution observed in u s data

equilibrium wage dispersion and interindustry wage differentials this paper develops a search theoretic explanation of interindustry wage differentials given coordination problems in the labor market the probability of filling a vacancy is an increasing function of the wage offered in equilibrium firms that find vacancies more costly will offer higher wages the model thus explains the persistence of interindustry wage differentials and their correlation with industry average capital labor ratio and profitability additionally the model predicts that high wage firms will receive more applications per job opening and that wages in the labor market will behave as strategic complements

carbon allowance auction design of china s emissions trading scheme a multi agent based approach in this paper a multi agent based ets simulation model is proposed for carbon allowance auction design in china in the proposed model two main agents i e the government the ets implementer and the firms in different sectors the ets targets are considered under the ets policy all agents make various decisions individually according to their own goals and interact with each other through three main markets the commodity market the primary carbon auction market and the secondary carbon trading market different popular auction designs are introduced into the ets formulation to offer helpful insights into china s ets design 1 generally the ets would lead to positive effects on china s carbon mitigation and energy structure improvement but a negative impact on economy 2 as for auction forms the uniform price design is relatively moderate while the discriminative price design is quite aggressive in both economic damage and emissions reduction 3 as for carbon price the uniform price auction might generate a slightly higher market clearing price than the discriminative price auction and the prices under two auction rules fluctuate about rmb 40 per metric ton 4 as for carbon cap the total allowances in the carbon auction market should be carefully set to well balance economic growth and mitigation effect

does social capital reduce crime abstract we investigate the effects of civic norms and associational networks on crime rates civic norms may attach guilt and shame to criminal behavior thus increasing its opportunity cost associational networks may increase returns to noncriminal activities and raise detection probabilities but they may also work as communication channels for criminals and may offer official cover to criminal activities the empirical assessment of these effects poses serious problems of endogeneity omitted variables measurement error and spatial correlation italy s great variance in social and economic characteristics its homogeneity in policies and institutions and the availability of historical data on social capital in its regions allow us to minimize the first two problems to tackle the last two problems we use report rate adjusted crime rates and estimate a spatial lag model we find that both civic norms and associational networks have a negative and significant effect on property crimes across italia

does emission permit allocation affect co2 cost pass through a theoretical analysis abstract carbon emissions trading may result in co 2 cost pass through and its rate is influenced by a number of factors this paper theoretically investigates how emission permit allocation affects co 2 cost pass through rate by developing a nash cournot oligopolistic market equilibrium model we find that the derived co 2 cost pass through rates are consistent when grandfathering and auctioning rules are used for permit allocation which are higher than that for benchmarking rule it has also been found that the magnitude of co 2 cost pass through rate is relevant to the type of definition product market structure and average carbon intensity of the industry we suggest that policy makers first use benchmarking rule to attract firms to participate at the early stage of emissions trading system ets and then take auctioning rule when ets is well developed

international equity and differentiation in global warming policy ne of the major obstacles to reaching a comprehensive agreement on global warming is the setting of greenhouse gas emission reduction targets for individual countries long standing tensions between industrialized and developing countries have raised the issue of equity in burden sharing moreover individual industrialized nations have pleaded special circumstances and have sought differentiation in their obligations this paper analyzes alternative rules for distributing tradable carbon dioxide emissions permits a non linear programming model which distinguishes between allocation based and outcome based rules is used to analyze the relative welfare outcomes the model is applied to the world body of nations and yields several important policy implications

identifying the effect of unemployment on crime abstract in this paper we analyze the relationship between unemployment and crime using u s state data we estimate the effect of unemployment on the rates of seven felony offenses we control extensively for state level demographic and economic factors and estimate specifications that include state specific time trends state effects and year effects in addition we use prime defense contracts and a state specific measure of exposure to oil shocks as instruments for unemployment rates we find significantly positive effects of unemployment on property crime rates that are stable across model specifications our estimates suggest that a substantial portion of the decline in property crime rates during the 1990s is attributable to the decline in the unemployment rate the evidence for violent crime is considerably weaker however a closer analysis of the violent crime of rape yields some evidence that the employment prospects of males are weakly related to state rape rates

principles of network development and evolution an experimental study this paper reports on an experimental investigation of the evolution of networks and the individual decision making processes that guide it inasmuch as there is no history of experimental work on network formation part of the paper is devoted to the formulation of problems that can be examined experimentally the results are that networks composed of decentralized decision makers are capable of overcoming complex coordination and learning problems and converge to stationary when it does not occur significant and persistent inefficiencies can result the models of equilibration based on the principle of nash equilibrium are more reliable than models based on the alternative principles of efficiency seeking or focalness of the network configuration however individual decision making within networks is not in accordance with the simple decision rules of nash best response instead we observed complicated strategies that appear to trade short term profits in order to signal to and teach other agents the strategies required for long term profit maximization

wages rents and the quality of life this study focuses on the role of wages and rents in allocating workers to locations with various quantities of amenities the theory demonstrates that if the amenity is also productive then the sign of the wage gradient is unclear while the rent gradient is positive the theory is extended to include the housing market and nontraded goods these extensions require little modification of the conclusion the empirical work on wages shows that the regional wage differences can be explained largely by these local attributes with the use of site price data implicit prices are estimated and quality of life rankings for the cities are computed

do inequality unemployment and deterrence affect crime over the long run abstractdo inequality unemployment and deterrence affect crime over the long run regional studies this paper investigates the long run relationship between crime inequality unemployment and deterrence using us state level data from 1978 to 2013 the novelty is to use non stationary panels with a factor structure the results show that 1 a crime theoretical model fits the long run relationship well 2 income inequality and unemployment have a positive impact on crime whereas that of deterrence is negative 3 the effect of income inequality on crime is larger when inequality is measured on a wider population proportion and 4 property crime is generally highly sensitive to the deterrence effect of police

examining the economic and environmental effects of emissions policies in china a bayesian dsge model abstract the purpose of this study is to build an energy emissions economy dynamic stochastic general equilibrium model to examine the economic and environmental effects of the carbon tax and carbon intensity target the model is calibrated to china s economy the results show that both the carbon tax and carbon intensity target policies have a negative effect on china s economy and environment however the carbon tax exerts more negative effects on the economy and environment than the carbon intensity target moreover the carbon tax shock lasts shorter than the carbon intensity target shock the findings additionally indicate that the effects of the increase in the productivity of energy sectors are greater than those of the increase in the productivity of other sectors thanks to the low carbon technology shock china s carbon dioxide emissions will reduce and output will increase taken together this study highlights the key policy implications associated with the results

emission allowances and mitigation costs of china and india resulting from different effort sharing approaches to meet ambitious global climate targets mitigation effort in china and india is necessary this paper presents an analysis of the scientific literature on how effort sharing approaches affect emission allowances and abatement costs of china and india we find that reductions for both china and india differ greatly in time across and within approaches and between concentration stabilisation targets for china allocated emission allowances in 2020 are substantially below baseline projections moreover they may be below 2005 emission levels particularly for low concentration targets below 490 ppm co2 eq effort sharing approaches based on allocating reduction targets lead to relatively lower reductions for china than approaches that are based on allocating emission allowances for 2050 emission allowances for china are 50 80 below 2005 levels for low concentration targets with minor differences between approaches still mitigation costs of china including emissions trading remain mostly below global average according to literature chinese emission allowances peak before 2025 2030 for low concentration targets india s emission allowances show high increases compared to 2005 levels if emission trading is allowed financial revenues from selling credits might compensate mitigation costs in most approaches even for low concentration targets india s emission allowances peak around 2030 2040 for all concentration targets c 2012 elsevier ltd all rights reserved

tradeable carbon permit auctions how and why to auction not grandfather abstract an auction of carbon permits is the best way to achieve domestic carbon caps designed to limit global climate change to minimize administrative costs permits would be required at the level of oil refineries natural gas pipe lines natural gas liquid sellers and coal processing plants to maximize liquidity in secondary markets permits would be fully tradable and bankable the government would conduct quarterly auctions a standard ascending clock auction in which price is gradually raised until there is no excess demand would provide reliable price discovery an auction is preferred to grandfathering giving companies permits based on historical output or emissions because it allows reduced tax distortions provides more flexibility in distribution of costs provides greater incentives for innovation and reduces the need for politically contentious arguments over the allocation of rents

a structural model of crime and inequality in colombia economic theory suggests that inequality should influence crime positively yet the evidence in favor of that hypothesis is weak pure cross sectional analyses show significant positive effects but cannot control for fixed effects time series and panel data point to a variety of results but few turn out being significant the hypothesis maintained in this paper is that it is a specific part of the distribution rather than the overall distribution as summarized by conventional inequality measures that is most likely to influence the rate of property crime in a given society using a simple theoretical model and panel data in seven colombian cities over a fifteen year period a structural model is proposed that permits identifying the precise segment of the population whose relative income best explains time changes in crime jel k42 d63 o15

the impact on electric power industry under the implementation of national carbon trading market in china a dynamic cge analysis abstract as the largest carbon emissions source sector electric power industry is undoubtedly a principal part of the carbon trading market in china aimed at researching the impact on power industry beyond establishing the national carbon trading market a dynamic computable general equilibrium cge model embedded with carbon trading block is introduced in this paper subsequently we design 8 scenarios of which illustrate corresponding industry carbon emissions baselines and free quotas ratios the main simulation results are as follows the implementation of carbon emissions trading would bring a certain negative impact on the overall economy real gdp will be reduced by about 0 08 0 52 in 2030 though low free quotas ratio will cause a relatively high loss of gdp this negative impact would be eliminated in the long run in addition carbon emissions trading would also promote the clean production of electricity indeed the electric power industry would reach carbon emissions peak around 2020 relative to scenarios without carbon trading carbon emissions would reduce more than 1000 million tons in 2030 when industry carbon emissions baseline declines at an annual rate of 2 consequently the carbon market can achieve a more significant reduction in carbon emissions with the influencing of quotas fully auctioned scenario

crime inequality and unemployment there is much discussion of the relationships between crime inequality and unemployment we construct a model where all three are endogenous we find that introducing crime into otherwise standard models of labor markets has several interesting implications for example it can lead to wage inequality among homogeneous workers also it can generate multiple equilibria in natural but previously unexplored ways hence two identical neighborhoods can end up with different levels of crime inequality and unemployment we discuss the effects of anti crime policies like changing jail sentences as well as more traditional labor market policies like changing unemployment insurance this abstract was borrowed from another version of this item

optimizing cooperative carbon emission reduction among enterprises with non equivalent relationships subject to carbon taxation abstract getting enterprises to reduce carbon emissions cooperatively is an effective way of sharing the burden of carbon taxation it is easier for core enterprises to promote cooperation because of their dominant positions in the supply chain the main goal of this paper is to provide a potential method for the core enterprise to organize this cooperation successfully we explore how core enterprises should allocate their reduction investments and coordinate the selection of technology upgrade strategies so as to maximize their profits without disrupting the profits of cooperating enterprises for a supply chain where there are non equivalent relationships between enterprises the main hypotheses are that each enterprise only produces one product and each production process in each enterprise can only select one production technology and the intermediate products are mainly traded among cooperative enterprises a model based on independent carbon emission reduction model i is first constructed and used to analyze each enterprises basic information when they reduce carbon emission without cooperation considering total costs profits and so on then based on this information a model including cooperation is proposed model ii in model ii the enterprises are divided into core and cooperative enterprises and both capital and technical cooperation are considered a multi agent system is presented to simulate the negotiations between the enterprises and is then used to solve model ii finally a numerical example is considered to examine the feasibility of the proposed model the results indicate that a cooperative carbon emission reduction strategy has more advantages than the independent carbon emission reduction approach a notable advantage is that it can further rationalize the emission reduction structure of the supply chain through rational allocation of reduction investments and thus further restores profits

intergenerational correlation and social interactions in education we propose a dynastic model where individuals are born into an educated or uneducated environment that they inherit from their parents we study the impact of social interactions on the correlation in parent child educational status independently of any parent child interaction when the level of social interactions is decided by a social planner we show that the correlation in education status between generations decreases very fast as social interactions increase in turn when the level of social interactions is decided by the individuals themselves we show that the intergenerational correlation still decreases although less rapidly than with exogenous social interactions

search for a theory of organized crimes abstract casual empirical observations reveal no systematic relationship between the overall crime rate and organized criminal activity we develop a search theoretic framework to study the interactions not only between formal labor and crime sectors but also between individual and organized crimes in equilibrium individual and organized criminals face different arrest risks success rates reward structures and outside options we characterize agents occupational choices the gang s hierarchical structure and the responses of unemployment crime rates and crime composition to changes in labor market conditions and crime deterrence policies we further assess the effectiveness of arrest versus punishment policies in deterring individual and organized crimes

employment inequality why do the low skilled work less now abstract low skilled prime age men are less likely to be employed than high skilled prime age men and the differential has increased since the 1970s i build a search model encompassing three explanations 1 automation and trade reduced the demand for low skilled workers 2 health welfare and recreational gaming computer technology reduced the supply of low skilled workers and 3 factors affecting job search such as online job boards reduced frictions for high skilled workers i find a shift in demand away from low skilled workers was the leading cause a shift in supply had little effect and search frictions actually reduced employment inequality

what causes violent crime this study uses panel data of intentional homicide and robbery rates for a sample of developed and developing countries for the period 1970 1994 based on information from the united nations world crime surveys to analyze the determinants of national crime rates both across countries and over time a simple model of the incentives to commit crimes is proposed which explicitly considers possible causes of the persistence of crime over time criminal inertia a panel data based gmm methodology is used to estimate a dynamic model of national crime rates this estimator controls for unobserved country speci ce ects the joint endogeneity of some of the explanatory variables and the existence of some types of measurement errors a icting the crime data the results showthat increases in income inequality raise crime rates crime tends to be countercyclical and criminal inertia is signi cant 2002 elsevier science b v all rights reserved

strong and weak ties in employment and crime this paper analyzes the interplay between social structure and information exchange in two competing activities crime and labor we consider a dynamic model in which individuals belong to mutually exclusive two person groups referred to as dyads there are multiple equilibria if jobs are badly paid and or crime is profitable unemployment benefits have to be low enough to prevent workers for staying too long in the unemployment status because they are vulnerable to crime activities if instead jobs are well paid and or crime is not profitable unemployment benefits have to be high enough to induce workers to stay unemployed rather to commit crime because they are less vulnerable to crime activities also in segregated neighborhoods characterized by high interactions between peers a policy only based on punishment and arrest will not be efficient in reducing crime it has to be accompanied by other types of policies that take into account social interactions

reflections on the double dividend debate we survey the history of carbon taxation the range of market based instruments mbis of environmental control and the state of the double dividend debate in order to suggest directions for future research into mbis returning mbi revenues as lower distortionary taxes rather than as lump sums raises aggregate welfare but we favour mbis which raise little or no revenue for reasons of political acceptability to interest groups at the same time the overall case for any environmental improvement is weaker because of general equilibrium interactions with prior distortionary taxes research seems most necessary on quantifying the efficiency benefits of market control of heterogeneous polluters the benefits of environmental improvement the tax interaction effect and the various information costs of an mbi all on a case by case basis for different pollutants and places

neighbourhood income inequality and property crime this paper examines the relationship between income inequality and property crime using census block group data from three us cities nashville tn portland or and tucson az this paper is one o

crime and economic incentives we explore the role that economic incentives particularly changes in wages at the bottom end of the wage distribution play in determining crime rates we use data on the police force areas of england and wales between 1975 and 1996 and find relative falls in the wages of low wage workers lead to increases in crime we carry out a number of experiments with different wage measures including a wage measure that accounts for the effects of changes in the composition of employment these reinforce the picture of a strong association between the low wage labor market and crime the result that incentives play a central role is reinforced further by the strong impact on crime of deterrence measures and of a measure of the returns to crime

how urbanization affect employment and social interactions we develop a model where the unemployed workers in the city can find a job either directly or through weak or strong ties we show that in denser areas individuals choose to interact with more people and meet more random encounters weak ties than in sparsely populated areas we also demonstrate that for a low urbanization level there is a unique steady state equilibrium where workers do not interact with weak ties while for a high level of urbanization there is a unique steady state equilibrium with full social interactions we show that these equilibria are usually not socially efficient when the urban population has an intermediate size because there are too few social interactions compared to the social optimum finally even when social interactions are optimal we show that there is over urbanization in equilibrium

the long run and causal analysis of energy growth openness and financial development on carbon emissions in turkey abstract the aim of this paper is to examine the causal relationship between financial development trade economic growth energy consumption and carbon emissions in turkey for the 1960 2007 period the bounds f test for cointegration test yields evidence of a long run relationship between per capita carbon emissions per capita energy consumption per capita real income the square of per capita real income openness and financial development the results show that an increase in foreign trade to gdp ratio results an increase in per capita carbon emissions and financial development variable has no significant effect on per capita carbon emissions in the long run these results also support the validity of ekc hypothesis in the turkish economy it means that the level of co 2 emissions initially increases with income until it reaches its stabilization point then it declines in turkey in addition the paper explores causal relationship between the variables by using error correction based granger causality models

accounting for mismatch unemployment we investigate unemployment due to mismatch in the us over the past three decades we propose an accounting framework that allows us to estimate the overall amount of mismatch unemployment as well as the contribution of each of the frictions that caused the mismatch mismatch is quantitatively important for unemployment and the cyclical behavior of mismatch unemployment is very similar to that of the overall unemployment rate geographic mismatch is driven primarily by wage frictions mismatch across industries is driven by wage frictions as well as barriers to job mobility we nd virtually no role for worker mobility frictions

the effects of social networks on employment and inequality we develop a model where agents obtain information about job opportunities through an explicitly modeled network of social contacts we show that employment is positively correlated across time and agents moreover unemployment exhibits duration dependence the probability of obtaining a job decreases in the length of time that an agent has been unemployed finally we examine inequality between two groups if staying in the labor market is costly and one group starts with a worse employment status then that group s drop out rate will be higher and their employment prospects will be persistently below that of the other group

chinese companies awareness and perceptions of the emissions trading scheme ets evidence from a national survey in china abstract china announced the launch of a national emissions trading scheme ets in 2017 however companies appear show little enthusiasm for participation in the ets in china this paper identifies the factors affecting companies awareness and perceptions of ets by conducting a national survey based on an online questionnaire from may to november 2015 in seven carbon trading pilots the results indicate that companies attitudes towards the ets are positively influenced by government regulations and policy public relations management and estimated economic benefit of these public relations management is the decisive factor and estimated economic benefit is confirmed to be a relatively weak predictor a company s environmental and energy strategy exerts insignificant effects on its preference for the ets although the sampled companies are very willing to save energy and reduce emissions there exists an inverted u shape relationship between a company s level of mitigation technologies and its attitudes towards the ets the carbon price fails to stimulate companies to upgrade mitigation technologies the majority of companies treat participation in the ets only as a means of improving ties with governments as well as of earning a good social reputation rather than as a cost effective mechanism to mitigate greenhouse gas emissions

aligning renewable energy targets with carbon emissions trading to achieve china s indcs a general equilibrium assessment abstract this study evaluates the economic impact of achieving china s intended nationally determined contributions indcs through emissions trading scheme ets and renewable energy policy using a computable general equilibrium cge model we explored the behavior of different sectors in the carbon market carbon trade amount carbon price and the economic impact of an emissions cap and trade on the employment and gdp the results demonstrate that the electricity and aviation sectors have relatively higher mitigation costs and tend to be the main buyers of the carbon credits whereas chemicals nonmetal production iron and steel paper and other manufacturing sectors have relatively lower mitigation costs and tend to be the main sellers carbon trading price and market scale are closely related to various factors such as the emissions quota allocation scheme among sectors coverage of participating sectors and the level of renewable energy development emission trading is also confirmed to be an economically efficient approach that contributes to the achievement of emission reduction targets with less economic cost in order to make full use of this approach policy maker should assign an appropriate emissions quota allocation scheme extend coverage of various sectors and promote the expansion of low carbon technologies such as renewable energy

spatial versus social mismatch the aim of this paper is to provide a new mechanism based on social interactions explaining why distance to jobs can have a negative impact on workers labor market outcomes especially ethnic minorities building on granovetter s idea that weak ties are superior to strong ties for providing support in getting a job we develop a model in which workers who live far away from jobs choose to have less connections to weak ties because of the lack of good public transportation in the us it is costly both in terms of time and money to commute to business centers to meet other types of people who can provide other source of information about jobs if distant minority workers mainly rely on their strong ties who are more likely to be unemployed there is then little chance for them of escaping unemployment it is therefore the separation in both the social and physical space that prevents ethnic minorities from finding a job

a dynamic model of weak and strong ties in the labor market the study develops a simple model where workers can obtain a job through either their strong or weak ties it shows that increasing the time spent with weak ties raises the employment rate of workers it also shows that when the job destruction rate or the job information rate increases workers choose to rely more on their weak ties to find a job the model is extended so unemployed workers can also learn of a vacancy directly from an employer results show that equilibrium employment and time spent with weak ties are sometimes but not in all cases positively related

mismatch shocks and unemployment during the great recession summary we investigate the macroeconomic consequences of fluctuations in the effectiveness of the labor market matching process with a focus on the great recession we conduct our analysis in the context of an estimated medium scale dynamic stochastic general equilibrium model with sticky prices and equilibrium search unemployment that features a shock to the matching efficiency or mismatch shock we find that this shock is not important for unemployment fluctuations in normal times however it plays a somewhat larger role during the great recession when it contributes to raise the actual unemployment rate by around 1 3 percentage points and the natural rate by around 2 percentage points the mismatch shock is the dominant driver of the natural rate of unemployment and explains part of the recent shift of the beveridge curve copyright 2016 john wiley sons ltd

neighborhood effects on crime for female and male youth evidence from a randomized housing voucher experiment the moving to opportunity mto demonstration assigned housing vouchers via random lottery to public housing residents in five cities we use the exogenous variation in residential locations generated by mto to estimate neighborhood effects on youth crime and delinquency the offer to relocate to lower poverty areas reduces arrests among female youth for violent and property crimes relative to a control group for males the offer to relocate reduces arrests for violent crime at least in the short run but increases problem behaviors and property crime arrests the gender difference in treatment effects seems to reflect differences in how male and female youths from disadvantaged backgrounds adapt and respond to similar new neighborhood environments

thieves thugs and neighborhood poverty abstract this paper develops a model of crime analyzing how such behavior is associated with individual and neighborhood poverty the model shows that even under relatively minimal assumptions a connection between individual poverty and both property and violent crimes will arise and moreover neighborhood effects can develop but will differ substantially in nature across crime types a key implication is that greater economic segregation in a city should have no effect or a negative effect on property crime but a positive effect on violent crime using iv methods i show this implication to be consistent with the empirical evidence

rising occupational and industry mobility in the united states 1968 97 we document and analyze the high level and the substantial increase in worker mobility in the united states over the 1968 97 period at various levels of occupational and industry aggregation this is important in light of the recent findings that human capital of workers is largely occupation or industry specific to control for measurement error in occupation and industry coding we develop a method that utilizes the psid retrospective occupation industry supplemental data files we emphasize the importance of our findings for understanding a number of issues such as the changes in wage inequality aggregate productivity job stability and life cycle earnings profiles