durable goods theory for real world markets the early 1970s witnessed three major advances in durable goods theory swan 1970 1971 and sieper and swan 1973 on optimal durability coase 1972 on time inconsistency and akerlof 1970 on adverse selection this paper surveys durable goods theory starting with these three contributions where much of the focus is on recent literature and on models that explain real world phenomena in addition to the ideas found in the contributions of swan coase and akerlof topics covered include why producers sometimes practice planned obsolescence the role of adverse selection in new car leasing and reasons for aftermarket monopolization

durable goods monopolists durable goods monopolists face special problems because the sale of their products creates a secondhand market not controlled by the monopolist to the extent the monopolist is able to rent his product rather than sell it or to make binding promises about his future production such problems are ameliorated given the inability to do the above the monopolist is led to producing goods less durable than those produced by either competitive firms or monopolist returns a reverse averch johnson result that monopolist sellers may invest less in fixed costs including plant modernization and research and development than would the renters is shown it is also shown that even though sellers have less monopoly power than renters and nondurable goods monopolists it is possible that the seller will cause a greater deadweight loss than the other types of monopolies

have domestic or foreign factors driven european external imbalances abstract this paper examines whether domestic or foreign net saving predominantly influences an economy s international borrowing and lending with reference to the experience of western european economies that have had sizable current account surpluses and deficits since the turn of the century it proposes that if an international lender country s current account surplus is positively negatively related to its real long term interest rate then foreign domestic factors are driving its external imbalance on the contrary for a foreign borrower country if its current account deficit is positively negatively related to its real long term interest rate domestic foreign factors drive its external imbalance on this basis it shows econometrically for major european lender economies germany the netherlands switzerland and sweden that external imbalances this decade were mainly determined by foreign factors though by domestic factors for norway for major borrower economies italy spain portugal ireland and the united kingdom the results were not significant implying that neither domestic nor foreign factors predominated over this time

pricing a network good to deter entry of a network good we show that the installed user base of a network good can serve a preemptive function similar to that of an investment in capacity if the entrant s good is incompatible with the incumbent s good and there are network externalities in demand consequently the threat of entry can lead the incumbent to set low prices we identify some factors that should be considered in thinking about the welfare eiects of entry deterrence in this and similar models i introduction both sides in us v microsoft seem to agree that microsoft s pricing of windows does not correspond to short run pro t maximization by a monopolist schmalensee s direct testimony argues that microsoft s low prices are due at least in part to its concern that higher prices would encourage other rms to develop competing operating systems while this idea may seem intuitive it has been seen as controversial by some commentators e g hall and hall 1999 because neither side has proposed a formal model where such limit pricing would make sense in response this paper develops a highly simpli ed model of complete information limit pricing based on the idea that the installed base of a network good can ll a preemptive role similar to that of investment in physical capacity to model the role of the incumbent s installed base we assume that there are overlapping generations of consumers each of whom lives for two periods and purchases only when young we also assume there are only two types of consumers and we further assume that the distribution of values is such that the incumbent s steady state pro t is highest when it

indicators for sustainable energy development a multivariate cointegration and causality analysis from tunisian road transport sector this paper studies causal mechanism between indicators for sustainable energy development related to energy consumption from tunisian road transport sector the investigation is made using the johansen cointegration technique and the environmental kuznets curve ekc approach it examines the nexus between transport value added road transport related energy consumption road infrastructure fuel price and co2 emissions from tunisian transport sector during the period of 1980 2010 empirical results show that road transport related energy consumption transport value added transport co2 emissions and road infrastructure are mutually causal in the long run these results do not support the hypothesis of neutrality between energy and income for the tunisian road transport sector also there is a unidirectional causality running from fuel price to road transport related energy consumption with no feedback in both the short and long runs the fuel price and the road infrastructure are significant in the causal chain though the estimated long run cointegrated equation we conclude that there is an inverse n shaped relation between transport value added and transport co2 emissions with income turning point respectively equal to 75 and 579 constant 2000 tnd prices therefore our empirical findings refute the hypothesis of an inverted u shaped ekc for transport co2 emissions in tunisia the findings of this study have a number of policy implications economic growth environmental degradation energy and transportation policies should be recognized in order to improve the energy efficiency in transport sector all measures that should reduce petroleum consumption and greenhouse gas emissions without affecting economic growth may be undertaken the policymakers in tunisia should plan urban transport relocate production units improve fuel efficient vehicles and reinforce legislation on controlling emissions in order to copying with policies based on low carbon development and climate resilient strategies

foundations of dynamic monopoly and the coase conjecture subgame perfect equilibria are characterized for a market in which the seller quotes a price each period assume zero costs positive interest rate continuum of buyers and some technical conditions if buyers valuations are positive then equilibrium is unique buyers strategies are stationary and the price sequence is determinant along the equilibrium path but possibly randomized elsewhere otherwise a continuum of stationary equilibria can exist but at most one with analytic strategies coase s conjecture is verified for stationary strategies reducing the period length drives all prices to zero or the least valuation connections to bargaining models are described journal qf economic literature classification

the current account in the macroeconomic adjustment process macroeconomic adjustments to changes in the economic environment are to a large extent conditioned by the intertemporal choices of economic agents when agents face an intertemporal budget constraint a decision to alter current indebtedness implies changes in future consumption possibilities and will be based on expectations of the entire future path of key variables and not only current variables a formal model to show how today s current account is a function of both current and future economic variables is presented the determination of the current account under classical assumptions of market clearing and continuous full employment is emphasized

price competition and compatibility in the presence of positive demand externalities in many cases the benefit to a consumer of a product increases with the number of other users of the same product these demand interdependencies are referred to in the literature as positive demand externalities or network externalities this paper examines the dynamic pricing behaviors of an incumbent and a later entrant with special attention to the impacts of demand externalities compatibility and competition on prices and profits defining market power as the ability to price above a competitor without losing market share we show how demand externalities and installed base combine to confer market power we model optimal pricing as a differential game with the optimal price trajectory established as nash open loop controls for a duopoly durable goods market with strong demand externalities the results show an increasing price trajectory can be optimal as expected a new entrant is better off if its products are compatible with those of the incumbent especially when demand externalities are strong and the installed base of the incumbent is large less intuitively the incumbent as well may be better off agreeing on common standards the comparison of monopoly and duopoly shows that under strong demand externalities and a small installed base the incumbent profits from compatible entry

dynamic duopoly with congestion effects abstract we analyze duopolistic competition between horizontally differentiated firms selling durable goods or services subject to congestion at each point of time new customers buy one unit of the commodity from one of the firms by comparing present prices and future congestion rates we study the linear markov equilibrium of this game which exists and is unique when firms are not too different the existence of negative consumption externalities is shown to soften the price competition moreover we show that the firm with the larger capacity has at the steady state a larger market share a higher price and a lower congestion rate the price of an entrant decreases gradually after entry while the price of the incumbent rises the faster the speed of convergence to the steady state is the stronger is the congestion effect

the role of exchange rate for current account a panel data analysis abstract the goal of this paper is to address the role of the real effective exchange rate fundamentals misalignment and volatility for the current account using a panel data analysis for a set of 58 countries over the period of 1994 2014 the results suggest that exchange rate misalignment is relevant for current account adjustment where countries with a more appreciated depreciated exchange rate face a worse better current account performance regarding the role of other control variables current account adjustment is affected by the savings rate where higher lower values are associated with better worse current account performance corroborating the lessons from the consumption smoothing approach there is also evidence of a positive effect for the lagged current account persistence effect for emerging and less developed countries there is evidence of a significant role played by monetary independence where more less monetary independence is associated with better worse current account performance

china s changing energy intensity trend a decomposition analysis china experienced a dramatic decline in energy intensity from the onset of economic reform in the late 1970s until 2000 but since then the rate of decline slowed and energy intensity actually increased in 2003 most previous studies found that most of the decline was due to technological change but disagreed on the role of structural change to the best of our knowledge no decomposition study has investigated the role of inter fuel substitution in the decline in energy intensity or the causes of the rise in energy intensity since 2000 in this paper we use logarithmic mean divisia index lmdi techniques to decompose changes in energy intensity in the period 1980 2003 we find that 1 technological change is confirmed as the dominant contributor to the decline in energy intensity 2 structural change at the industry and sector sub industry level actually increased energy intensity over the period of 1980 2003 although the structural change at the industry level was very different in the 1980s and in the post 1990 period 3 structural change involving shifts of production between sub sectors however decreased overall energy intensity 4 the increase in energy intensity since 2000 is explained by negative technological progress 5 inter fuel substitution is found to contribute little to the changes in energy intensity

the demand for road diesel in canada abstract in this paper we estimate the demand for road diesel in canada using aggregate annual data for the period 1986 2008 using a partial adjustment model pam we find short and long run price elasticities of 0 43 and 0 8 respectively however using cointegration techniques we obtain price elasticities that are 30 to 50 lower the short run elasticity with respect to gdp per capita is evaluated at 0 5 with the pam and 1 55 with cointegration in the long run both estimation techniques indicate an income elasticity around 0 9 our results underline the importance of controlling for the expansion of the primary sector which has been characterizing the canadian economy in the 2000s

avoiding market dominance product compatibility in markets with network effects as is well recognized market dominance is a typical outcome in markets with network effects a firm with a larger installed base offers a more attractive product which induces more consumers to buy its product which produces a yet bigger installed base advantage such a setting is investigated here but with the main difference that firms have the option of making their products compatible when firms have similar installed bases they make their products compatible in order to expand the market nevertheless random forces could result in one firm having a bigger installed base in which case the larger firm may make its product incompatible we find that strategic pricing tends to prevent the installed base differential from expanding to the point that incompatibility occurs this pricing dynamic is able to neutralize increasing returns and avoid the emergence of market dominance

network effects aftermarkets and the coase conjecture a dynamic markovian approach this paper investigates the expansion of the network of a monopolist firm that produces a durable good and is also involved in the corresponding aftermarket we characterize the markov perfect equilibrium of the continuous time dynamic game played by the monopolist and the forward looking consumers under the assumption that consumers benefit from the subsequent expansion of the network the paper contributes to the theoretical discussion on the validity of the coase conjecture analyzing whether coase s prediction that the monopolist serves the market in a twinkling of an eye remains valid in our setup we conclude that the equilibrium network development may actually be gradual contradicting coase s conjecture we find that a necessary condition for such a result is the existence of aftermarket network effects that accrue at least partly to the monopolist firm

a note on expanding networks and monopoly pricing we obtain explicitly the optimal path of prices for a monopolist operating in a network industry during a finite number of periods we describe this optimal path as a function of network intensity and horizon length and show that the prices are increasing in time and that for very low network intensity or very high horizon length the monopolist will offer the good at zero price in the initial period

monopoly pricing with network externalities abstract how should a monopolist price a durable good or a new technology that is subject to network externalities in particular should the monopolist set a low introductory price to attract a critical mass of adopters in this paper we provide intuition as to when and why introductory pricing might occur in the presence of network externalities incomplete information about demand or asymmetric information about costs is necessary for introductory pricing to occur in equilibrium when consumers are small

capital flows and saving in latin america and asia a reinterpretation abstract both theory and the empirical evidence for a broad range of countries have identified a negative relationship between domestic and foreign saving still based on the experience of the 1990s a popular view has emerged that domestic and foreign saving are positively related in asia and negatively related in latin america we argue that this popular discussion does not discriminate between trends in domestic saving which are very different in the two regions and the cyclical component of saving which is linked to capital flows we show that when trend and cyclical components of domestic saving and capital flows are properly taken into account the two regions do not differ in the short run response of domestic saving to capital inflows we conclude that the main differences pertain to the long run behavior of saving rates which are driven by trends in demographic factors per capita gdp and other factors that have little to do with fluctuations in capital flows

reputation in bargaining and durable goods monopoly this paper analyzes durable goods monopoly in an infinite horizon discrete time game we prove that as the time interval between successive offers approaches zero all seller payoffs between zero and static monopoly profits are supported by subgame perfect equilibria this reverses a well known conjecture of coase alternatively one can interpret the model as a sequential bargaining game with one sided incomplete information in which an uninformed seller makes all the offers our folk theorem for seller payoffs equally applies to the set of sequential equilibria of this bargaining game

product line decisions and the coase conjecture we show that the coase conjecture does not hold when a durable goods monopolist also sells nondurable goods that are demand related to the durable the presence of nondurable complements or substitutes reduces the rate at which the monopolist introduces the durable into the market the price of the durable does not converge to marginal cost we analyze the incentives of a monopolist to extend his product line to a durable or a nondurable most significantly the profit from adding a durable to the product line disappears as the time between offers becomes short we study the effects of entry into markets for nondurables and their implications for merger policy

decomposing the decoupling of co2 emissions and economic growth in brazil abstract this paper examines the occurrence of a decoupling between the growth rates in economic activity and co 2 emissions from energy consumption in brazil from 2004 to 2009 this decoupling was highlighted when economic activity and co 2 emissions moved in opposite directions in 2009 more generally we observe several periods of relative decoupling in brazil but not to the extent witnessed in 2009 to identify the determinants of emissions change we develop a decomposition model based on a log mean divisia index lmdi framework the results indicate that the carbon intensity and energy mix are the main determinant of emissions reduction in brazil between 2004 and 2009 modifications in the economy structure are also associated to emission mitigation in the period such evidence demonstrates similarities with events of decoupling registered for the interval 1980 1994 in brazil finds from brazil differ from observations in other countries in which improvement in energy intensity has been the most common determinant of emissions reduction

dynamic monopoly pricing with network externalities abstract in this paper we study the optimal dynamic monopoly pricing for a good which exhibits positive network externalities when network externalities are of sufficient magnitude we show that contrary to the coase theorem 1 there is no time inconsistency problem 2 subgame perfect equilibrium prices increase as time passes from this point of view positive network externalities allow the monopoly to commit itself credibly to increasing future prices ce papier etudie la tarification optimale intertemporelle d un monopole qui vend un bien exhibant des externalites positives de reseau lorsque ces externalites sont suffisamment importantes nous montrons que contrairement au theoreme de coase 1 il n y a pas de probleme d incoherence temporelle 2 les prix d equilibre parfait croissent avec le temps de ce point de vue les externalites positives de reseau permettent au monopole de s engager crediblement sur une politique de prix futurs a la hausse

depreciation erodes the coase conjecture if a durable good monopolist produces at constant marginal costs and the good depreciates there exists a family of strong markov perfect equilibrium smpe one member of this family entails instantaneous production of the level of stock produced in a competitive equilibrium this is consistent with the coase conjecture other smpe in the family entail steady state production at a stock level lower than in the competitive equilibrium there may be a jump to these steady states or they may be approached asymptotically monopoly profits are positive in these equilibria and the coase conjecture fails

snowball a dynamic oligopoly model with indirect network effects abstract allowing for innovation dynamics in the software market this paper studies the conditions under which standardization in the hardware market arises and persists over time in the model software firms repeatedly invest in quality upgrades compete in the product market and make exit as well as entry decisions the results show that in general excess inertia does not occur a platform becomes the standard in a market only if it is better than the competing platforms furthermore low overall rates of innovation always lead to variety conversely the higher the speed of innovation the more likely standardization is

price competition when consumer behavior is characterized by conformity or vanity it has long been recognized that the pleasure of consuming a good may be affected by the consumption choice of other consumers in some cases social pressures may lead to conformity in some others individuals may feel the need of exclusiveness under the form of vanity such externalities have proven to be important in several markets however the market implication of these externalities are still unclear to investigate them we propose to combine the consumption externality model and the spatial duopoly model when conformity is present but not too strong both firms remain in business but price competition is fiercer and results in lower prices the market share of the large firm increases with the population size as the population keeps rising the large firm may serve the entire market and set a price that has the nature of a limit price when conformity is strong enough different equilibria may exist in most of these equilibria a single firm captures the whole market at the other extreme when vanity is at work price competition is relaxed

tying investment and the dynamic leverage theory the idea that an incumbent supplier may tie two complementary products to fend off potential entrants is popular among practitioners yet is not fully understood in formal economic theory this article makes sense of the argument by formally deriving a dynamic version of the old leverage doctrine we show that when an incumbent monopolist faces the threat of entry in all complementary components tying may make the prospects of successful entry less certain discouraging rivals from investing and innovating tie in sales may reduce consumer and total economic welfare copyright 2001 by the rand corporation

energy intensity in road freight transport of heavy goods vehicles in spain abstract this paper examines the factors that have influenced the energy intensity trend of the spanish road freight transport of heavy goods vehicles over the period 1996 2012 this article aims to contribute to a better understanding of these factors and to inform the design of measures to improve energy efficiency in road freight transport the paper uses both annual single period and chained multi period multiplicative lmdi ii decomposition analysis the results suggest that the decrease in the energy intensity of spanish road freight in the period is explained by the change in the real energy intensity index lower energy consumption per tonne kilometre transported which is partially offset by the behaviour of the structural index greater share in freight transport of those commodities the transportation of which is more energy intensive the change in energy intensity is analysed in more depth by quantifying the contribution of each commodity through the attribution of changes in divisia indices

dynamic price competition with network effects i consider a dynamic model of competition between two proprietary networks consumers die and are replaced with a constant hazard rate and firms compete for new consumers to join their network by offering network entry prices i derive a series of results pertaining to a existence and uniqueness of symmetric equilibria b monotonicity of the pricing function e g larger networks set higher prices c network size dynamics increasing dominance vs reversion to the mean and d firm value how it varies with network effects finally i apply my general framework to the study of termination charges in wireless telecommunications i consider various forms of regulation and examine their impact on firm profits and market share dynamics

network externalities and the coase conjecture abstract this paper addresses two general questions first what is the effect of market structure on the development of a network in a dynamic model with rational expectations secondly is the intuition that network externalities are economies of scale on the demand side correct these questions are examined in a model of durable good production in the presence of network externalities two results are presented first the coase conjecture fails in its strongest sense when network benefits are increasing in the current network size secondly a committed monopolist may be socially preferable to a time consistent producer when network externalities are sufficiently large the analysis indicates an analogy between network externalities and learning by doing

aid econometrics lessons from a stochastic growth model abstract this paper evaluates the standard empirical methods employed in the study of foreign aid when the data generating process is a calibrated stochastic growth model in which aid recipients make optimal investment and consumption decisions when recipients receive a stochastic flow of aid and wish to smooth consumption standard methods fail to distinguish between the response to transient and permanent aid shocks and hence yield misleading results concerning the object of interest to policy makers the long run impact of aid

network effects market structure and industry performance abstract this paper analyzes oligopolistic markets with network externalities exploiting a minimal complementarity structure on the model primitives that allows for pure network goods we prove existence of non trivial fulfilled expectations equilibrium we formalize the concept of industry viability investigate its determinants and show that it improves with more firms in the market and or by technological progress these results enlighten some well known conclusions from case studies in the management strategy literature we also characterize the effects of market structure on industry performance which depart substantially from ordinary markets the approach relies on lattice theoretic methods supplemented with basic insights from nonsmooth analysis

the current account in developing countries a perspective from the consumption smoothing approach according to the consumption smoothing view a high degree of capital mobility implies that agents are able to fully smooth their consumption in the face of shocks this article develops aframework to test whether indeed the current account in developing countries acts as a buffer to smooth consumption in the face of shocks to national cash flow which is defined as output less investment less government expenditure using vector autoregression analysis we estimate the optimal consumption smoothing current account with data from a sample of forty five developing countries we find that for a majority of the countries the hypothesis offull consumption smoothing cannot be rejected suggesting that capital mobility may after all be quite high in this group of countries

current accounts in debtor and creditor countries the authors reexamine a classic question in international economics what is the current account response to a transitory income shock such as a temporary improvement in the terms of trade a transfer from abroad or unusually high production to answer this question they construct a world equilibrium model in which productivity varies across countries and international borrowing and lending take place to exploit good investment opportunities despite its conventional ingredients the model generates the novel prediction that favorable income shocks lead to current account deficits in debtor countries and current account surpluses in creditor countries evidence from thirteen oecd countries broadly supports this theoretical prediction

durable goods monopoly increasing marginal cost and depreciation this paper combines increasing marginal cost and depreciation in a continuous time model of a durable goods monopolist in contrast to the case of increasing marginal cost but no depreciation analysed by kahn and the case of depreciation with constant marginal cost analysed by bond and samuelson steady state output in this model is less than in the competitive case a turnpike result shows that choice of a long enough time horizon can make the equilibrium path of output in a finite horizon game arbitrarily close to the path of the infinite horizon game

current account deficits in africa stylized facts and basic determinants abstract this article analyzes the behavior of current account deficits in africa the findings are that deficits are i not very persistent ii positively linked with domestic growth iii strongly linked with public and private savings suggesting that fiscal consolidation in imf supported programs may be relatively effective iv linked with aid flows so as to close the external gap and v linked with currency depreciation and the terms of trade

external shocks consumption smoothing and capital mobility in india evidence from an intertemporal optimization approach we examine the solvency of india s current account ca in the post liberalization period using intertemporal optimization approach to the ca using quarterly data ranging from 1996q1 to 2014q2 we

capital mobility in developing countries some measurement issues and empirical estimates an economy s financial integration with the outside world the extent of capital mobility across its borders is a key determinant of some of its most important macroeconomic properties yet little is known about this characteristic of many developing economies an important stumbling block in the empirical assessment of financial integration openness is the many approaches to measuring it the author describes and evaluates different tests of capital mobility surveys existing evidence and applies four tests of capital mobility to assess the degree to which the many developing countries tested have achieved integration with the world financial markets the four tests are the 1 magnitude of gross capital flows 2 uncovered interest rate parity 3 strength of saving investment correlations and 4 behavior of domestic consumption over time the evidence suggests that most developing countries can be considered to be financially open in only 18 of the 57 developing countries classified did the data fail to show financial openness and that many countries may be experiencing an increased degree of integration with world financial markets

durable good monopolies with rational expectations and replacement sales a monopoly producer of a durable good is examined under the previously uninvoked assumption that the good depreciates and hence that replacement sales must occur if a fixed stock of the good is to be maintained we find two ways in which the no depreciation result that the monopoly will always at least eventually produce a stock equal to that produced by a competitive market may not hold if the length of the trading period is nonzero the limiting stock produced by the firm will be lower than the competitive stock to ensure the profitability of future replacement sales if the firm is able to constrain its production capacity it may choose a constraint that always binds in the sense that it will be impossible for the firm to achieve a stock equal to the competitive stock

existence and properties of equilibria for a dynamic game on productive assets abstract we consider a model in which two agents share access to the same stock of a productive asset and study the implications of non cooperative consumption behavior over time under standard assumptions on the production function we construct infinitely many nash equilibria all of which consist of stationary markovian strategies these equilibria result in overconsumption so that the uniquely determined long run asset stock is too low as compared to the cooperative solution however in the limit as the discount rate becomes sufficiently small the stead states generated by the markovian nash equilibria converge to the efficient steady state journal of economic literatureclassification numbers c73 o41 q22

decomposing road freight energy use in the united kingdom applying the techniques of decomposition analysis we estimate the relative contribution of ten variables termed key ratios plus gdp to the change in uk road freight energy use over the period 19892004 inclusive the results are best interpreted as an estimate of the percentage growth in energy consumption that would have resulted from the change in the relevant factor e g length of haul had the other factors remained unchanged the results demonstrate that the main factor contributing to the decoupling of uk road freight energy consumption from gdp was the decline in the value of domestically manufactured goods relative to gdp over the period 19892004 this largely offset the effect of increases in gdp on road freight energy consumption while the decline in domestic manufacturing was to some extent displaced by increases in imports the net effect of these supply factors together with shifts in the commodity mix has been to reduce uk road freight energy consumption by 30 1 the net effect on global carbon dioxide co2 emissions is likely to be somewhat less beneficial since many freight movements associated with the manufacture of imported goods have simply been displaced to other countries

hardware quality vs network size in the home video game industry abstract this paper analyzes competition between multiple proprietary and incompatible hardware systems when indirect network effects are present and software is provided competitively by third party developers a discrete choice demand structure is employed within a game theoretic setting to allow for a continuum of market share possibilities empirical evidence supports the claim that excess inertia is not a pervasive problem two data sets covering the life of the home video game industry yearly from 1976 to 2003 and monthly january 1995 to october 2007 yield three main results 1 market share is 11 4 times more sensitive to hardware quality than network size 2 the number of available games is 3 69 times more sensitive to hardware quality than network size and 3 hardware quality has a larger impact than network size on the probability of hardware success

large shareholders monitoring and ownership dynamics toward pure managerial firms abstract we study ownership dynamics when the manager and the large shareholder both risk neutral simultaneously choose effort and monitoring level respectively to serve their non congruent interests we show that there is a wedge between the valuation of shares by atomistic shareholders and the large shareholder s valuation at the markov perfect equilibrium the large shareholder divests her shares if the incongruence of their interests is mild divestment is drastic all her shares are sold immediately if their interests diverge sharply the divestment is gradual in order to prevent a sharp fall in share price in the limit the firm becomes purely managerial

present value tests of an intertemporal model of the current account abstract this paper first demonstrates that in a simple intertemporal open economy model the current account is equal to the expected decline of the present discounted value of net output of a country net output is defined as gross domestic product less the sum of investment plus government spending it then uses econometric methods for present value models to analyze the current account for four countries in two of these countries the model does a satisfactory job of explaining the current account

feldstein horioka meets a time trend abstract much of the literature relating to the feldstein horioka puzzle misses two major points it is obvious there should be a home bias and that this bias should be falling through time our empirical analysis is consistent with these points

decomposition of aggregate carbon intensity for freight trends from 10 oecd countries for the period 1971 1993 abstract historical patterns of aggregate carbon intensity from freight are different than those from other sectors while aggregate carbon intensity declined for all other sectors aggregate carbon intensity for freight increased the adaptive weighted divisia rolling base year index specification is applied to carbon emissions from the freight sector of 10 oecd countries for the period 1970 1993 increases in aggregate carbon intensity for nine of the countries range from less than 20 to over 150 and may be primarily attributed to shifts in modal structure toward more carbon intensive modes these increases in aggregate carbon intensity are driven primarily by an increase in activity which parallels the growth in gdp furthermore changes in fuel price and vehicle purchase taxes do not appear to be effective instruments for reducing energy consumption for this end use alternative policy options including less carbon intensive fuels and technologies and reduced congestion appear to be better choices