the carbon footprint of uk households 1990 2004 a socio economically disaggregated quasi multi regional input output model this paper presents a socio economically disaggregated framework for attributing co2 emissions to people s high level functional needs based around a quasi multi regional input output qmrio model the study in theory takes into account all co2 emissions that arise from energy used in production of goods and services to satisfy uk household demand whether the emissions occur in the uk or abroad results show that co2 emissions attributable to households were 15 above 1990 levels in 2004 and that although absolute decoupling occurred between household expenditure and co2 during the uk s switch from coal to gas in the early 1990s since then only slight relative decoupling is evident the proportion of co2 that arises outside uk borders in support of uk consumption is rising and reducing these emissions is particularly problematic in a global trading system investigation into the carbon footprint of different segments of the uk population shows wide variation the segment with the highest carbon footprint emits 64 more co2 than the segment with the lowest results show that recreation and leisure are responsible for over one quarter of co2 emissions in a typical uk household in 2004 we conclude that expanding lifestyle aspirations are significant factors in driving household co2 emissions but the study also emphasizes that attention must be paid to the infrastructures and institutions that result in considerable amounts of co2 being locked up in basic household activities through which people meet their everyday needs for subsistence protection and communication with family and friends the findings highlight the sheer scale of the challenge facing uk policy makers and suggest that policies should be targeted towards segments of society responsible for the highest carbon footprints

an analysis of the driving forces of energy related carbon dioxide emissions in china s industrial sector abstract both energy consumption and the growth of carbon dioxide co2 emissions in china are attributed to the industrial sector energy conservation and co2 emissions reduction in china s industrial sector is decisive for achieving a low carbon transition we analyze the change of energy related co2 emissions in china s industrial sector from 1991 to 2010 based on the logarithmic mean divisia index lmdi method results indicate that industrial activity is the major factor that contributes to the increase of industrial co2 emissions while energy intensity is the major contributor to the decrease of co2 emissions industry size shows a varying trend interchanging intervals of growth along the study period moreover both energy mix and carbon intensity of energy use have negative effects on the increase of co2 emissions the cointegration method is adopted to further explore determinants of co2 emissions in china s industrial sector results show that there exists a long run relationship between industrial co2 emissions and affecting factors such as co2 emissions per unit of energy consumption industrial value added labor productivity and fossil fuel consumption china s industrial co2 emissions are mainly attributed to the coal dominated energy structure policy suggestions are thus provided to reduce industrial co2 emissions in china

co2 emissions of china s food industry an input output approach in a joint u s china statement on climate change the chinese government declared to peak co2 emissions around 2030 this demonstrates the government s determination to deal with carbon emission and climate change although the food industry is not a carbon emission intensive industry its large scale makes the emission reduction in the industry very important based on the input output structural decomposition method this paper calculates the co2 emissions of china s food industry from 1991 to 2012 and decomposes the change in co2 emissions of the industry during 1992 1997 1997 2002 2002 2007 and 2007 2010 into four main effects emission factor energy structure energy intensity and total output including four sub effects intermediate use domestic final demand import substitution and export extension the results show that changes in co2 emissions in the food industry mainly depends on total output effect and energy intensity effect energy intensity effect is the most important factor reducing co2 emissions as it reduced cumulative 213 million tons mt co2 emissions of the industry among total output effect the effects of intermediate use and domestic final demand are the two biggest contributors to carbon emissions finally we provide some policy advices for constraining and reducing co2 emissions of china s food industry the advices include increasing r d investment and the substitution of energy with other input factors to decrease energy intensity increasing the added value of the food industry optimizing the energy structure with more clean and low carbon energy and maintaining the prices of raw materials of the food industry i e agricultural products with taxes or subsidies

contagion as a wealth effect financial contagion is described as a wealth effect in a continuous time model with two risky assets and three types of traders noise traders trade randomly in one market long term investors provide liquidity using a linear rule based on fundamentals convergence traders with logarithmic utility trade optimally in both markets asset price dynamics are endogenously determined numerically as functions of endogenous wealth and exogenous noise when convergence traders lose money they liquidate positions in both markets this creates contagion in that returns become more volatile and more correlated contagion reduces benefits from portfolio diversification and raises issues for risk management during the f inancial panic associated with the default of the russian government in august 1998 and the subsequent collapse of the hedge fund long term capital management numerous hedge funds banks and securities firms tried simultaneously to reduce exposures to a variety of financial instruments such as russian bonds brazilian stocks u s mortgages spreads between on therun and off the run government securities and spreads between swaps and u s treasuries although the fundamental values of these positions would appear to have little correlation during this financial crisis the asset prices in these markets exhibited the following common empirical pattern 1 financial intermediaries suffered losses as prices moved against their positions 2 market depth and liquidity decreased simultaneously in several markets 3 the volatility of prices increased simultaneously in several markets and

income inequality in france 1901 1998 this paper uses data from income tax returns 1915 98 wage tax returns 1919 98 and inheritance tax returns 1902 94 in order to compute homogeneous yearly estimates of income wage and wealth inequality for twentieth century france the main conclusion is that the decline in income inequality that took place during the first half of the century was mostly accidental in france and possibly in a number of other countries as well wage inequality has been extremely stable in the long run and the secular decline in income inequality is for the most part a capital income phenomenon holders of large fortunes were badly hurt by major shocks during the 1914 45 period and they were never able to fully recover from these shocks probably because of the dynamic effects of progressive taxation on capital accumulation and pretax income inequality

imperfect competition information heterogeneity and financial contagion this study examines how heterogeneity of private information may induce financial contagion using a model of multi asset trading in which the three main channels of contagion through financial linkages in the literature correlated information correlated liquidity and portfolio rebalancing are ruled out by construction i show that financial contagion can still be an equilibrium outcome when speculators receive heterogeneous fundamental information risk neutral speculators trade strategically across many assets to mask their information advantage about one asset asymmetric sharing of information among them prevents rational market makers from learning about their individual signals and trades with sufficient accuracy incorrect cross inference about terminal payoffs and contagion ensue when used to analyze the transmission of shocks across countries my model suggests that the process of generation and disclosure of information in emerging markets may explain their vulnerability to financial contagion jel d82 g14 g15

decomposing final energy use for heating in the residential sector in austria abstract in austria a considerable number of measures have been implemented to reduce final energy use for residential heating since the 1990s the aim of this analysis is to investigate why despite these implemented measures final energy use for heating has not decreased in the expected way the impact of eight factors on final energy use for heating is quantified by applying the logarithmic mean divisia index lmdi i method the dataset covers the sector of private households in austria for the period from 1993 to 2009 the main findings of the analysis are 1 while technical improvements reduce final energy use for heating significantly rising comfort needs nearly outweigh these savings 2 consumer behaviour reduces calculated final energy use considerably 3 the extent of this reduction is declining significantly in the period observed 4 the growing share of single family houses has increased energy demand for heating in the observed period though a reversal of this trend is detected from 2007 onwards 5 the impact of growing floor space per person is the major effect revealed by the analysis 6 weather conditions have a major impact on annual fluctuations of energy consumption

co2 emissions and economic development china s 12th five year plan abstract for the period of the 12th five year plan 2011 2015 the chinese government has decided to reconsider and adjust its policies on economic development because of the pressures of co 2 emissions and fossil energy consumption the current paper adopts the logarithmic stochastic impacts by regression on population affluence and technology stirpat model to simulate the relationship between co 2 emissions and other economic development factors in china three groups of outliers are found using samples from 1989 to 2008 and the partial least square pls regularity test method the outlier analysis reveals three important areas for co 2 reduction a decreasing the share of coal to the total energy consumption and replacing it with non fossil energies b controlling vehicles used in the cities as well as c adjusting industrial structure furthermore based on the social and economic realities of china the current paper designs six feasible development scenarios for the period covered by the 12th five year plan and predicts the values of each factor in each scenario the values can test the implementation of china s co 2 control development concept the experiences obtained by outlier analysis can be of significant reference value for realizing the predicted scenarios

analysis on major drivers of cement consumption during the urbanization process in china abstract accompanying by the rapid urbanization process of china unprecedented amounts of cement have been poured into urban construction over the last decade since research is still scarce on the factors underlying the cement consumption the motivation of this paper is to provide insight into cement based socioeconomic metabolism and to improve understanding of the linkage between human activities and cement consumption to explore the key impact factors of cement consumption an extended stirpat model is exploited in this paper to examine the effect of population gross domestic product gdp per capita cement consumption intensity fixed investment and urbanization level with regional panel data of china from 2005 to 2013 the empirical results indicate that fixed investment and gdp per capita are the decisive driving factors of cement consumption the unbalanced investment between infrastructure and people s livelihood reflects bias urbanization policy in china inverted u shaped nexus between cement consumption and urbanization as well as gdp per capita are observed in the empirical results moreover regional heterogeneities are taken into account in the model estimation on the ground of the empirical findings several policy recommendations are provided for policy makers it is suggested that policy makers should take account of the regional discrepancy and implement a sustainable urbanization strategy to curtail cement consumption only when excessive fixed investment is curbed does the enthusiasm of cement consumption calm down

financial contagion and attention allocation this paper explains financial contagion between two stock markets with uncorrelated fundamentals by fluctuations in international investors attention allocation we model the process of attention allocation that underlies portfolio investment in international markets using investors who face information processing constraints investors optimally allocate more attention to a region hit by a financial crisis to the detriment of other markets the resulting endogenous increase in uncertainty causes a reduction in the capacity to bear risks by international investors that induces them to liquidate their positions in all risky assets hence there is a collapse in stock prices around the world we show that the degree of non anticipation of a crisis is crucial for the existence of contagion using data from the east asian crisis and the number of news stories about thailand in the financial times relative to news stories about argentina brazil and chile as a proxy for the relative attention allocated to the asian stock market we find evidence consistent with two key predictions of our model first the higher the volatility of the originator market the more relative attention allocated to this market and second the more relative attention allocated to the originator market the higher the volatility of the other markets our findings support the attention reallocation channel as a transmission mechanism of financial crises between regions during the period from january 1997 to july 1998

urban household energy use in tanzania prices substitutes and poverty abstract this paper presents the findings of the tanzanian urban household energy survey undertaken as part of the tanzania urban energy project household energy use varies by income group according to local fuel availability considerable differences between the marginal costs of supplying fuels and market prices paid by consumers have led to major misallocations of resources when the results of this survey are compared to the results of the 1987 household energy survey a significant shift by households toward kerosene and electricity away from fuelwood charcoal and lpg is shown to have taken place these shifts toward modern fuels are consistent with the claims of the households in the 1990 survey and can largely be explained by fuel prices finally an assessment of the lifeline tariff and the kerosene cross subsidy demonstrate that the latter is a more effective method of ensuring the basic energy needs of the urban and rural poor

a chinese sky trust distributional impacts of carbon charges and revenue recycling in china abstract the introduction of carbon charges on the use of fossil fuels in china would have a progressive impact on income distribution this outcome which contrasts to the regressive distributional impact found in most studies of carbon charges in industrialized countries is driven primarily by differences between urban and rural expenditure patterns if carbon revenues were recycled on an equal per capita basis via a sky trust the progressive impact would be further enhanced low income mainly rural households would receive more in sky trust dividends than they pay in carbon charges and high income mainly urban households would pay more than they receive in dividends thus a chinese sky trust would contribute to both lower fossil fuel consumption and greater income equality

ghg emissions embodied in macao s internal energy consumption and external trade driving forces via decomposition analysis abstract as a member of the kyoto protocol macao faces the enormous challenge to tackle with energy conservation and greenhouse gas ghg emission reduction though many studies have been devoted to understanding macao s ghg emissions from energy consumption and external trade an investigation of the underlying driving forces is still absent therefore this study decomposed the energy related emissions change and imbalance in embodied emissions of external trade during 2000 2011 respectively by using the logarithmic mean divisia index lmdi method the economic scale effect and energy structure change were identified as the main driving factors of macao s increasing energy related emissions while trade structure and embodied emission intensity contributed to make macao a net importer of embodied emissions however some variations can be seen during the period concerned then the underlying reasons for the two decomposition results were further investigated on account of the results and analysis instructive policy implications can be put forward for macao to better proceed with energy conservation and emissions reduction

decomposition analysis of gas consumption in the residential sector in ireland abstract to date decomposition analysis has been widely used at the macro economic level and for in depth analyses of the industry and transport sectors however its application in the residential sector has been rare this paper uses the log mean divisia index i lmdi i methodology to decompose gas consumption trends in the gas connected residential sector in ireland from 1990 to 2008 which despite an increasing number of energy efficiency policies experienced total final consumption growth of 470 the analysis decomposes this change in gas consumption into a number of effects examining the impact over time of market factors such as a growing customer base varying mix of dwelling types changing share of vacant dwellings changing size of new dwellings the impact of building regulations policy and other factors such as the weather the analysis finds the most significant effects are changing customer numbers and changing intensity the analysis also quantifies the impact of building regulations and compares it with other effects such as changing size of new dwellings by comparing the historical impact on gas consumption of policy factors and non policy factors this paper highlights the challenge for policy makers in achieving overall energy consumption reduction

co2 emissions from household consumption in india between 1993 94 and 2006 07 a decomposition analysis abstract co 2 emission from anthropogenic activities is one of the major causes of global warming india being an agriculture dependent country global warming would mean monsoon instability and consequent food scarcity natural disasters and economic concerns however with proper policy interventions co 2 emissions can be controlled input output analysis has been used to estimate direct and indirect co 2 emissions by households for 1993 94 1998 99 2003 04 and 2006 07 complete decomposition analysis of the changes in co 2 emissions between 1993 94 and 2006 07 has been done to identify the causes into pollution energy intensity structure activity and population effects according to broad household consumption categories results indicate that activity structure and population effects are the main causes of increase in co 2 emission from household fuel consumption to identify the causes at the sectoral level a second decomposition has been done for changes between 2003 04 and 2006 07 to identify the causes in the next stage finally alternative energy policy options have been examined for each consumption category to reduce emissions combined strategies of technology upgradation fuel switching and market management in order to reduce co 2 emissions for sectors like batteries other non electrical machinery construction and electronic equipments including television for which all the effects are positive need to be adopted

growth de regulation and rent seeking in post war british economy abstractpost war political consensus about the need for government action to rectify market failure began to unravel in the 1970s and even the need for prudential control of banking and finance began to be challenged by the start of the 1980s regulatory oversight was relaxed in the belief that emerging techniques in financial engineering would render irrelevant fears of sharp periodic downturns that have historically been the consequence of lightly regulated finance the outcome of this new policy embracing the idea of unregulated markets to deliver greater prosperity is disappointing we find that the average growth rate of uk gdp and output per person employed for three decades from the start of liberalization was no greater than that in the previous three post war decades cyclical fluctuations were deeper a remarkable feature of the second period is the sharp rise in income inequality in favour of the very top earners an illusion of greater prosperity for a wider segment may have been created in

asymmetric price movements and borrowing constraints a rational expectations equilibrium model of crises contagion and confusion this study proposes a rational expectations equilibrium model of crises and contagion in an economy with information asymmetry and borrowing constraints consistent with empirical observations the model finds 1 crises can be caused by small shocks to fundamentals 2 market return distributions are asymmetric and 3 correlations among asset returns tend to increase during crashes the model also predicts 1 crises and contagion are likely to occur after small shocks in the intermediate price region 2 the skewness of asset price distributions increases with information asymmetry and borrowing constraints and 3 crises can spread through investor borrowing constraints

imperfect competition in a multi security market with risk neutrality the central purpose of this paper is to develop a model of insider trading i e trading based on private information in the context of an imperfectly competitive multi security market with risk neutral agents imperfect competition allows us to consider strategic behavior and a multi security market lets us study the effect of a correlated environment on equilibrium we employ the informational assumption that market makers can observe all order flows and so portfolio diversification arises in this model for strategic reasons given correlated fundamentals market makers can potentially learn about every security from each order flow this causes even a risk neutral trader who does not face short selling restrictions to refrain from determining the demand for each security independently this contrasts with traditional multi asset models which focus on the incentive to reduce portfolio variance or the effect of short selling restrictions or budget constraints under imperfect competition correlation has two effects one ceteris paribus it allows the uninformed to learn from additional variables since each order flow could potentially have information about all payoffs on the other hand it creates an incentive for informed traders to restrict what others can learn from public information thus our analysis can be viewed as an application to the multi security heterogeneous information model in admati 1985 of the imperfectly competitive equilibrium concept which kyle 1985 first applied to the single security homogeneous information model of grossman and stiglitz 1980 our principal results include an explicit characterization of a linear equilibrium as a function of three general covariance matrices associated with payoffs noise trading and errors in private signals under general covariance structures we show that there always exists an equilibrium in which the relationship between the vector of prices and the vector of order flows is governed by a symmetric positive definite matrix the plan of the paper is as follows in section 2 we introduce our model we derive the equilibrium in section 3 and section 4 comments on the properties of the equilibrium the proofs of the results are in the appendix

illiquidity contagion and liquidity crashes liquidity providers often learn information about an asset from prices of other assets we show that this generates a self reinforcing positive relationship between price informativeness and liquidity this relationship causes liquidity spillovers and is a source of fragility a small drop in the liquidity of one asset can through a feedback loop result in a very large drop in market liquidity and price informativeness a liquidity crash this feedback loop provides a new explanation for comovements in liquidity and liquidity dry ups it also generates multiple equilibria

extreme wage inequality pay at the very top we provide new evidence on the growth in pay at the very top of the wage distribution in the united kingdom sectoral decompositions show that workers in the financial sector have accounted for the majority of the gains at the top over the last decade new results are also presented on the pay of ceos in the united kingdom we show how improved measurement of pay points to a stronger pay performance link than previously estimated this link is stronger and more symmetric for those firms in which institutional investors play a larger role

foreign portfolio investors before and during a crisis different categories of foreign portfolio investors in korea have differences as well as similarities in their trading behavior before and during the currency crisis first non resident institutional investors are always positive feedback traders whereas resident investors were negative feedback contrarian traders before the crisis but switch to be positive feedback traders during the crisis second individual investors herd significantly more than institutional investors non resident institutional as well individual investors herd significantly more than their resident counterparts third differences in the western and korean news coverage are correlated with differences in net selling by non resident investors relative to resident investors

indirect carbon emissions of urban households in china patterns determinants and inequality abstract the urban household sector is considered to be an essential source of climate change in order to obtain detailed information concerning the description of household consumption activities this paper combined consumer lifestyle approach and input output analysis to estimate indirect carbon emissions of urban household from 2002 to 2012 besides we further analysed the driving forces and inequality of indirect carbon emissions the results showed that the total indirect carbon emissions during the study period increased rapidly rising from 894 08 mtco2 to 1957 03 mtco2 more than 58 of carbon emissions were from 40 of the high income population the highest income group 10 of total urban households deduced 21 of urban indirect carbon emissions the per capita carbon emissions of different households showed a remarkable disparity and the per capita carbon emissions of high income groups decreased from 2011 to 2012 the effective mitigation efforts should focus on reducing carbon intensity and shifting consumption structure for high inequality consumption activities caused by rich households rich urban households should consume less goods and services from this consumption activities for high inequality consumption activities caused by low income households the redistribution of income from rich to poor and low carbon intensity lifestyles may be better options to reduce carbon emissions and inequalities of urban households

drivers of intersectoral metal consumption intensity in china a combined input output and sensitivity analysis abstract as a country with a high level of metal consumption china must urgently formulate effective policies to improve its metal use efficiency this article identifies the key sectors with the highest metal consumption intensity mci and investigates the effect of the pure technical and final demand coefficients on the mci of key sectors using a combined input output and sensitivity analysis the results show that the average mci of key industries increased from 7 37 tonnes per ten thousand yuan to 32 13 tonnes per ten thousand yuan during the period from 2002 to 2012 and the manufacturing and processing of the metals sector n14 revealed the greatest mci moreover the elasticity of the mci in terms of the pure technical and final demand coefficients of key sectors also increased rapidly from 2002 to 2012 and the number of corresponding transactions leading to the increase in key sectoral mci significantly increased in terms of the elasticity of the technical coefficients their sensitivity exceeded that of the pure technical coefficients in most cases due to the influence of the demand structure and direct transactions between sectors had important impacts on the mci in most key industries meanwhile almost all the sectors exerted direct or indirect effects on the mci of the mining of metal ores industry n4 in addition the manufacturing of general and special purpose machinery n16 manufacturing of electrical machinery and apparatus n18 and construction n22 exerted influences on most sectors concerning the final demand coefficient elasticity the gross fixed capital formation of most sectors induced the greatest elasticity in the corresponding sectors and the greatest elasticity of all the sectors was related to the gross fixed capital formation of n22

fee speech signaling risk sharing and the impact of fee structures on investor welfare the fee structure used to compensate investment advisers is central to the study of fund design and affects investor welfare in at least three ways i by influencing the portfolioselection incentives of the adviser ii by affecting risk sharing between adviser and investor and iii through its use as a signal of quality by superior investment advisers in this paper we describe a model in which all of these features are present and use it to compare two popular and contrasting forms of fee contracts the fulcrum and the incentive types from the standpoint of investor welfare while the former has some undeniably attractive features that have in particular been used by regulators to justify its mandatory use in a mutual fund context we find surprisingly that it is the latter that is often more attractive from the standpoint of investor welfare our model is a flexible one our conclusions are shown to be robust to many extensions of interest the results are also extended to consider unrestricted fee structures and competitive markets for fund managers

comparing structural decomposition analysis and index to analyze and understand historical changes in economic environmental employment or other socio economic indicators it is useful to assess the driving forces or determinants that underlie these changes two techniques for decomposing indicator changes at the sector level are structural decomposition analysis sda and index decomposition analysis ida for example sda and ida have been used to analyze changes in indicators such as energy use co2 emissions labor demand and value added the changes in these variables are decomposed into determinants such as technological demand and structural effects sda uses information from input output tables while ida uses aggregate data at the sector level the two methods have developed quite independently which has resulted in each method being characterized by specific unique techniques and approaches this paper has three aims first the similarities and differences between the two approaches are summarized second the possibility of transferring specific techniques and indices is explored finally a numerical example is used to illustrate differences between the two approaches

decomposing the change of co2 emissions a joint production theoretical approach this paper presents an alternative decomposition method to explore the driving forces of change in carbon emissions by using distance functions estimated by data envelopment analysis the proposed approach can isolate the effects of changes in gdp composition and energy supply composition on the change of carbon emissions in addition it is capable of identifying the effects of changes in different input ratios which may be very important if there are substitution effects among different inputs moreover the proposed model can measure the effects of changes in good and bad output technical efficiencies consequently this decomposition technique allows a change of carbon emissions to be decomposed into contributions from ten factors which provides more insights for policy makers we apply this model to decompose carbon emissions in 25 oecd counties and china for the sample countries as a whole the empirical results indicate that the economic growth is the crucial driver to carbon emissions increase while the changes in gdp composition and capital energy ratio are two main drivers to carbon emissions reduction in particular we discuss in detail the driving forces of china s carbon emissions change in order to propose some valuable policy implications for china from an international perspective

income inequality in the united states 1913 1998 this paper presents new homogeneous series on top shares of income and wages from 1913 to 1998 in the united states using individual tax returns data top income and wages shares display a u shaped pattern over the century our series suggest that the large shocks that capital owners experienced during the great depression and world war ii have had a permanent effect on top capital incomes we argue that steep progressive income and estate taxation may have prevented large fortunes from fully recovering from these shocks top wage shares were flat before world war ii dropped precipitously during the war and did not start to recover before the late 1960s but are now higher than before world war ii as a result the working rich have replaced the rentiers at the top of the income distribution

financialisation and capital accumulation in the non financial corporate sector a theoretical and empirical investigation on the us economy 1973 2003 recent research has explored the growing financialization process in the u s and other advanced economies the term is a catch all phrase used to denote important changes in the structure of non financial corporations balance sheets including the growth of income from financial subsidiaries and investment as well as growth in the transfer of earnings to financial markets in the forms of interest payments dividend payments and stock buybacks this paper seeks to empirically explore the relationship between financialization in the u s economy and real investment at the firm level using data from a sample of non financial corporations from 1973 to 2003 i find a negative relationship between real investment and financialization first increased financial investment and increased financial profit opportunities may have crowded out real investment by changing the incentives of firm managers and directing funds away from real investment second increased payments to the financial markets may have impeded real investment by decreasing available internal funds shortening the planning horizons of the firm management and increasing uncertainty these two channels can help explain the negative relationship i find between investment and financialization

promises and pitfalls in environmentally extended input output analysis for china a survey of the literature abstract as the world s largest developing economy china plays a key role in global climate change and other environmental impacts of international concern environmentally extended input output analysis ee ioa is an important and insightful tool seeing widespread use in studying large scale environmental impacts in china calculating and analyzing greenhouse gas emissions carbon and water footprints pollution and embodied energy this paper surveys the published articles regarding ee ioa for china in peer reviewed journals and provides a comprehensive and quantitative overview of the body of literature examining the research impact environmental issues addressed and data utilized the paper further includes a discussion of the shortcomings in official chinese data and of the potential means to move beyond its inherent limitations

on crises contagion and confusion abstract since the tequila crisis of 1994 1995 the asian flu of 1997 and the russian virus of 1998 economists have been busy producing research on the subject of contagion yet few studies have examined empirically through which channels the disturbances are transmitted if there are indeed fundamental reasons for the spillovers we observe we attempt to fill this gap by analyzing how both trade links and the largely ignored financial sector links influence the pattern of fundamentals based contagion we examine the role of international bank lending the potential for cross market hedging and bilateral and third party trade in the propagation of crises

the lmdi approach to decomposition analysis a practical guide in a recent study ang energy policy 32 2004 compared various index decomposition analysis methods and concluded that the logarithmic mean divisia index method is the preferred method since the literature on the method tends to be either too technical or specific for most potential users this paper provides a practical guide that includes the general formulation process summary tables for easy reference and examples

international real business cycles we ask whether a two country real business cycle model can account simultaneously for domestic and international aspects of business cycles with this question in mind we document a number of discrepancies between theory and data the most striking discrepancy concerns the correlations of consumption and output across countries in the data outputs are generally more highly correlated across countries than consumptions in the model we see the opposite

government intervention and strategic trading in the u s treasury market we study the impact of permanent open market operations pomos by the federal reserve on u s treasury market liquidity using a parsimonious model of speculative trading we conjecture that i this form of government intervention improves market liquidity contrary to conclusions drawn by existing literature and ii the extent of this improvement depends on the market s information environment evidence from a novel sample of federal reserve pomos during the 2000s indicates that bid ask spreads of on the run treasury securities decline when pomos are executed by an amount increasing in proxies for information heterogeneity among speculators fundamental volatility and pomo policy uncertainty consistent with our model

the impact of china s differential electricity pricing policy on power sector co2 emissions abstract this article investigates the impact of china s differential electricity pricing policy on power sector co 2 emissions using the logarithmic mean divisia index method the differential pricing policy intended to reduce energy intensity in manufacturing is being implemented in eight electricity intensive industries the study finds that during 2004 2009 the policy accounted for a drop of roughly 115 twh in electricity use which amounted to a reduction of 82 million tons of co 2 emissions the policy has been most effective in reducing electricity use in the nonferrous metal smelting and rolling industry and least effective in the ferrous metal smelting and rolling industry because the differential pricing policy has had significantly different effects across industries improving the policy s design and implementation going forward will require a more detailed understanding and analysis of how it can be better tailored to individual industries

what drives intersectoral co2 emissions in china abstract aiming to identify the intersectoral linkage of larger co2 emissions sectors this paper studies the co2 emissions elasticity of technical and final demand coefficients using the input output technique the results show that the greatest emission coefficient elasticities are those related to transactions between construction and manufacture of non metallic mineral products between gross fixed capital formation and construction and between agriculture and processing and manufacture of food and production and supply of electric power and heat power and mining and washing of coal all these transactions between these sectors imply that co2 emissions control policy only for a specific sector maybe have no obvious co2 emissions mitigations if national government promote the growth of those sectors which have the biggest emission coefficient sensitivity with it now chinese government formulates the policy to promote new type urbanization urbanization will cause the gross fixed capital formation in construction and the more demands for the products of manufacture of non metallic mineral products production smelting and pressing of ferrous metals and supply of electric power and heat power so how to balance the carbon emissions in larger emissions sectors and rapid urbanization is a big challenge for decision makers

explaining saving investment correlations national saving and investment rates are highly positively correlated in virtually all countries this is puzzling as it apparently implies a low degree of international capital mobility this paper shows that the observed positive correlation between national saving and investment rates arises naturally within a quantitatively restricted equilibrium model with perfect mobility of financial and physical capital the model is consistent with the fact that saving investment correlations are larger for larger countries but are still substantial for small countries further the model is consistent with the finding that current account deficits tend to be associated with investment booms copyright 1993 by american economic association

sector decomposition of china s national economic carbon emissions and its policy implication for national ets development abstract uncovering the contributions of each sector s driving factors to the growth of national economic carbon emissions has great significance for china in developing its nationwide emission trading scheme ets the paper applies the index decomposition analysis ida and logarithmic mean divisia index lmdi model to discuss the underlying drivers behind china s national economic carbon emissions during the period 1996 2012 from both sector and factor decomposition perspectives and accordingly offers policy proposals for china s national ets development major conclusions include 1 six heavy industry sectors the transport storage post sector and the construction sector are the largest contributors and hence proposed for incorporation into the ets s coverage 2 the rapid expansion of economic output dominantly increases carbon emissions the design of cap on emissions should allow for a proper increment and establish a new entrant reserve to coordinate economic development 3 as the dynamics of carbon emissions vary markedly across sectors allowance allocation needs to consider the changing sectoral structure of emissions 4 the combined effects of sectoral energy intensity and structure changes largely offset carbon emissions benchmarking is suggested as an ideal allocation mechanism and the setup of sectoral carbon intensity benchmark should synthetically evaluate the potential impacts of related factors 5 manufacturer based manner and carbon offset mechanism are respectively recommended for the initial implementation of carbon trading in the transport storage post sector and the construction sector

co2 emissions from household consumption at the provincial level and interprovincial transfer in china abstract china is under great pressure to reduce co2 emissions ces meanwhile china s economy is more reliant on domestic consumption particularly household consumption than on exports so to achieve large scale ces reduction for china there is urgent need to study the co2 emissions from household consumption ces hc based on the environmentally extended multiregional input output model this paper not only calculates both the direct co2 emissions from household consumption dces ch and the indirect co2 emissions from household consumption ices ch at the provincial level in china but also splits ices ch into domestic and foreign ces the findings of this paper are as follows 1 between 2002 and 2012 ces hc in china increased significantly by 2 27 times from 1306 17 mt in 2002 to 2971 01 mt in 2012 the co2 emissions from urban household consumption ces uhc in china accounted for 75 of the total ces hc in 2012 2 the per capita ces hc in china increased from 1 02 t person in 2002 to 2 19 t person in 2012 there was a prominent disparity in the total ces and per capital ces hc among the provinces in china the per capita ces hc were larger in provinces with a higher level of urbanization and higher per capita income 3 the large scale interprovincial transfer of ices caused by household consumption mainly occurred either within the yangtze river delta the pearl river delta and the jing jin ji region or among these three regions in addition to service the household consumption the energy abundant provinces transferred a considerable amount of ces to eastern coastal provinces to achieve ces reduction consumption based strategies such as lifestyle changes should be required in parallel with strategies to reduce emission intensities on the producer side in china urban households should take more responsibility for the reduction of ces in china the interprovincial carbon leakage should be taken into account when making policies for ces reduction in china

imperfect competition among informed traders we analyze competition among informed traders in the continuous time kyle 1985 model as foster and viswanathan 1996 do in discrete time we explicitly describe the unique linear equilibrium when signals are imperfectly correlated and confirm the conjecture of holden and subrahmanyam 1992 that there is no linear equilibrium when signals are perfectly correlated one result is that at some date and at all dates thereafter the market would have been more informationally efficient had there been a monopolist informed trader instead of competing traders the relatively large amount of private information remaining near the end of trading causes the market to approach complete illiquidity copyright the american finance association 2000

impact of interest rate surprises on islamic and conventional stocks and bonds abstract this paper studies the impact of interest rate news surprises on islamic and conventional stock and bond indices using a dataset which covers interest rate announcements and forecasts as well as stock and bond indices in three islamic and eight non islamic countris we find that interest rate surprises tend to have a smaller impact on the returns and volatility of islamic than conventional bonds because islamic bonds are structured to avoid explicit interest rates however interest rate surprises have about the same or bigger impact on the returns and volatility of islamic relative to conventional stocks despite the low amounts of cash and debt holdings of firms comprising islamic stock indices

managers investors and crises mutual fund strategies in emerging markets the authors address the trading strategies of mutual funds in emerging markets the data set they develop permits analyses of these strategies at the level of individual portfolios a methodologically novel feature of their analysis they disentangle the behavior of fund managers from that of investors for both managers and investors they strongly reject the null hypothesis of no momentum trading funds momentum trading is positive they systematically buy winners and sell losers contemporaneous momentum trading buying current winners and selling current losers is stronger during crises and stronger for fund investors than for fund managers lagged momentum trading buying past winners and selling past losers is stronger during noncrises and stronger for fund managers investors also engage in contagion trading selling assets from one country when asset prices fall in another these findings are based on data about mutual funds that represent only 10 percent of the market capitalization in the countries considered were it a larger share of the market finding counterparties for their trades the investors who buy when they sell and sell when they buy would be difficult and the premise that funds respond to contemporaneous returns rather than causing them would become tenuous

regional and sectoral attribution to percentage changes in the european divisia carbonization index abstract concerns on rising concentrations of co2 in the atmosphere and global warming have increased in recent years numerous environmental studies analyze the trends in co2 emissions and their main drivers in this paper we focus on the dynamics of the carbonization effect as a driving force for co2 emissions in the european union eu by implementing the sato vartia logarithmic mean divisia index method the trend of european emissions in the 2000 2010 period is factorized by both sector and country the analysis stresses the relevance of the carbonization and intensity effects in order to reduce emissions then based on so called attribution analysis we present a new theoretical framework that enables the attribution of both economic sector and individual eu member state to percentage changes in the carbonization index results show strong concentration of this reducing influence in some big economies in fact germany the united kingdom france and italy have contributed by more than 50 industry emerges as the most influential sector contributing to offset any improvement in the carbonization index our findings suggest strategies aiming at encouraging innovation technical change research on higher quality energies fuel substitution and installation of abatement technologies particularly in the industrial sector of large economies

south korea s 1980s financial reforms good bye financial repression maybe hello new institutional restraints abstract south korea s financial reforms in the 1980s have been consistent with high rates of savings and financial deepening but they have not followed liberal reform lines the korean financial system operates under the umbrella of an industrial policy and economic goals have been attained by means of investments in institutions rather than by exclusive reliance on the price mechanism

an overview of the driving forces behind energy demand in china s construction industry evidence from 1990 to 2012 abstract the rapid urbanization in china has produced a large demand for energy in the past decades it is therefore urgent to have an understanding of the driving forces behind the energy increase in the construction industry this study applies structural decomposition analysis sda to quantify the effects of driving factors from insight into consumption and production the results show that the energy consumption trajectory of china s construction industry is the result of competition between the effect of increasing final demand and improvement in energy efficiency although the effect of consistent efforts in structure optimization by the central government was significant from 2007 to 2012 the potential to save much energy still lies in structure optimization in energy production and final demand according to the projection structural upgrades in economy would be the most important factor for energy reduction in 2020 scenario analysis further indicated that the percentage change of energy increments in 2020 can be reduced at 22 of 2010 level under the optimistic scenario sector aggregation analysis revealed that more aggregates would increase uncertainty to some extent and result in a misinterpretation of the importance of the underlying factors according to the quantitative analysis in this study the percentage change of total embodied energy consumption in the construction industry should be limited below 25 of 2010 level at the end of the 13th five year plan

household consumption associated fossil fuel demand and carbon dioxide emissions the case of greece between 1990 and 2006 abstract this paper explores how greece s household consumption has changed between 1990 and 2006 and its environmental implications in terms of fossil fuel demand and carbon dioxide co2 emissions the results show that the 44 increase in greece s household expenditure between 1990 and 2006 was accompanied by a 67 increase in fossil fuel demand of this total indirect demand accounted for approximately 60 throughout the 16 year period increasing by 56 overall whereas direct fossil fuel demand grew by 80 the results also show that associated co2 emissions increased by 60 resulting in a relative decoupling from energy demand this relative decoupling is shown to be due to fossil fuel mix changes from the supply side rather than action from consumers these insights highlight the opportunities for demand side policies to further reduce fossil fuel demand and co2 emissions allowing greece to set more proactive and ambitious post kyoto targets

the unholy trinity of financial contagion over the last 20 years some financial events such as devaluations or defaults have triggered an immediate adverse chain reaction in other countries which we call fast and furious contagion yet on other occasions similar events have failed to trigger any immediate international reaction we argue that fast and furious contagion episodes are characterized by the unholy trinity i they follow a large surge in capital flows ii they come as a surprise and iii they involve a leveraged common creditor in contrast when similar events have elicited little international reaction they were widely anticipated and took place at a time when capital flows had already subsided

calculation and decomposition of indirect carbon emissions from residential consumption in china based on the input output model abstract based on the input output model and the comparable price input output tables the current paper investigates the indirect carbon emissions from residential consumption in china in 1992 2005 and examines the impacts on the emissions using the structural decomposition method the results demonstrate that the rise of the residential consumption level played a dominant role in the growth of residential indirect emissions the persistent decline of the carbon emission intensity of industrial sectors presented a significant negative effect on the emissions the change in the intermediate demand of industrial sectors resulted in an overall positive effect except in the initial years the increase in population prompted the indirect emissions to a certain extent however population size is no longer the main reason for the growth of the emissions the change in the consumption structure showed a weak positive effect demonstrating the importance for china to control and slow down the increase in the emissions while in the process of optimizing the residential consumption structure the results imply that the means for restructuring the economy and improving efficiency rather than for lowering the consumption scale should be adopted by china to achieve the targets of energy conservation and emission reduction

decomposing inequality in energy related co2 emissions by source and source increment the roles of production and residential consumption abstract using provincial data on energy related co2 emissions in china from 1997 to 2014 and the co2 emission gini coefficient ceg this study evaluates china s spatial inequality in energy related co2 emissions further we decompose this inequality and its variation from the perspectives of production and residential energy consumption using the source decomposition and source increment decomposition methods this paper presents a new ceg source increment decomposition method that can achieve complete decomposition the results reveal a downward trend in china s overall production sector and residential sector co2 emissions inequality although the gini coefficient of co2 emissions from the residential sector is larger than that from the production sector the contribution of the latter to the overall ceg is higher the impacts of the spatial inequality of co2 emissions from china s production and residential sectors depend on the type of energy the concentration effect is the primary factor responsible for inducing changes in china s overall and production sector co2 emissions inequality but it is not the only dominant factor for the residential sector co2 emissions inequality

top incomes in the long run of history a recent literature has constructed top income shares time series over the long run for more than twenty countries using income tax statistics top incomes represent a small share of the population but a very significant share of total income and total taxes paid hence aggregate economic growth per capita and gini inequality indexes are sensitive to excluding or including top incomes we discuss the estimation methods and issues that arise when constructing top income share series including income definition and comparability over time and across countries tax avoidance and tax evasion we provide a summary of the key empirical findings most countries experience a dramatic drop in top income shares in the first part of the twentieth century in general due to shocks to top capital incomes during the wars and depression shocks top income shares do not recover in the immediate postwar decades however over the last thirty years top income shares have increased substantially in english speaking countries and in india and china but not in continental european countries or japan this increase is due in part to an unprecedented surge in top wage incomes as a result wage income comprises a larger fraction of top incomes than in the past finally we discuss the theoretical and empirical models that have been proposed to account for the facts and the main questions that remain open

on the volatility and comovement of u s financial markets around macroeconomic news announcements the objective of this paper is to provide a deeper insight into the links between financial markets and the real economy to that end we study the short term anticipation and response of u s stock treasury and corporate bond markets to the first release of surprise u s macroeconomic information specifically we focus on the impact of these announcements not only on the level but also on the volatility and comovement of those assets returns we do so by estimating several extensions of the parsimonious multivariate garch dcc model of engle 2002 for the excess holding period returns on seven portfolios of these asset classes we find that both the process of price formation in each of those financial markets and their interaction appear to be driven by fundamentals yet our analysis reveals a statistically and economically significant dichotomy between the reaction of the stock and bond markets to the arrival of unexpected fundamental information we also show that the conditional mean volatility and comovement among stock treasury and corporate bond returns react asymmetrically to the information content of these surprise announcements overall the above results shed new light on the mechanismsbywhichnewinformationisincorporatedintopriceswithinandacrossu s financial markets

equilibrium asset prices and exchange rates abstract in a two country two good world we construct an intertemporal international general equilibrium for two logarithmic representative agents financial markets are fully integrated and independently incomplete the equilibrium expected rate of change of the exchange rate increases with the differential of interest rates and the volatility of the domestic equity markets and decreases with the covariance between domestic and foreign equity markets the equilibrium volatility of the exchange rate is the sum of the volatilities due to idiosyncratic factors in the financial markets and a term that represents the difference of weights in the common international factor

rural household energy consumption the effects of access to electricity evidence from south africa this paper examines household energy consumption patterns in rural areas in the light of energy transition theories in particular the study aims to identify the effects of access to electricity on fuel choice the analysis uses data from an extensive household survey conducted in south africa and examines the prevalence of different fuels energy expenditure the end uses of fuels and multiple fuel use patterns it is concluded that evidence exists for the presence of an energy transition in rural households largely driven by income access to electricity affects the nature of this transition and there is weak evidence to suggest that it accelerates the process

the impact of household consumption patterns on emissions in spain abstract the aim of this paper is to analyse the relationship between household consumption patterns and pollution in the spanish economy the analysis was carried using a social accounting matrix sam for the spanish economy prepared for 1999 taking the final demand of households as the exogenous account in the sam framework and combining this with the information provided by the household budget continuous survey on income and consumption ine 1999 we analyse the pollution produced by both the economy and households in order to satisfy consumption requirements we also consider the effects of income inequality on expenditure levels establishing a link between income level consumption patterns propensity to consume and co2 emissions

multiplicative structural decomposition analysis of aggregate embodied energy and emission intensities abstract aggregate intensity indicators such as the ratio of a country s energy and emissions to its gdp are often used by researchers and policymakers to study energy and environmental performance this paper analyzes the relationship between energy or emissions and value added or gdp from a different viewpoint namely from the demand rather than the production perspective using the input output i o framework the aggregate embodied intensity aei defined as the ratio of embodied energy or emissions to embodied value added can be defined at the aggregate final demand category and sectoral levels the total aggregate intensity can be presented as a weighted sum of the aeis at the final demand category or sectoral level changes of the aei at different levels can be decomposed to identify the driving forces using multiplicative sda a study using the latest 2007 and 2012 datasets of china indicates that a its aggregate intensity of co 2 emissions was mainly determined by the aei in investment and b the emission intensity effect generally contributed the most to the aei ratio changes at different levels the proposed framework can be applied to other aggregate intensity indicators and extended to multi country region analysis

measuring multi product banks market power using the lerner index abstract the aggregate lerner index is a popular composite measure of multi product banks market power based on total assets as the single aggregate output factor we show that the aggregate lerner index only qualifies as a consistently aggregated lerner index if three conditions hold under these conditions the aggregate lerner index reduces to a weighted average of the product specific lerner indices we test the three conditions for a sample of u s banks covering the years 2011 2017 all three conditions are rejected and we show that they may cause an economically relevant bias to the aggregate lerner index depending on the economic context as a general solution we propose using the always consistently aggregated weighted average lerner index whenever a composite lerner index is needed

the on the run liquidity phenomenon abstract we test the implications of a model of multi asset speculative trading in which liquidity differentials between on the run and off the run u s treasury bonds ensue from endowment shocks in the presence of two realistic market frictions information heterogeneity and imperfect competition among informed traders and a public signal our evidence suggests that i off on the run liquidity differentials are economically and statistically significant even after controlling for several of the bonds intrinsic characteristics such as duration convexity repo rates or term premiums and ii off on the run liquidity differentials are smaller immediately following bond auction dates and larger when the uncertainty surrounding the ensuing auction allocations is high when the dispersion of beliefs across informed traders is high and when macroeconomic announcements are noisy consistent with our model

the indirect energy consumption and co2 emission caused by household consumption in china an analysis based on the input output method in recent decades china s rapid economy development has been coupling with the steadily increasing household consumption which in turn leads to ever growing energy consumption and co2 emission with a focus on the decade of 2000 2010 this study examines the energy consumption and co2 emission caused by household consumption using the input output method as well as the influencing factors of the indirect co2 emission the results show that first the indirect energy consumption and co2 emission appear the main parts of total energy consumption and co2 emission caused by household consumption accounting for 69 77 and 77 84 respectively second the indirect co2 emission indicates an increasing trend mainly driven by per capita household consumption and energy intensity finally the five sectors with relatively higher direct or total co2 emission intensity are the key sectors for reducing co2 emission in china i e 1 production and distribution of electric power and heat power pdeh 2 smelting and pressing of metals spm 3 processing of petroleum coking processing of nuclear fuel ppcpn 4 manufacture of non metallic mineral products mnm and 5 manufacture of chemical materials mcm

driving forces of residential co2 emissions in urban and rural china an index decomposition analysis abstract there exist many differences between urban and rural china among which residential co 2 emissions arising from energy consumption is a major one in this paper we estimate and compare the energy related co 2 emissions from urban and rural residential energy consumption from 1991 to 2004 the logarithmic mean divisia index decomposition analysis is then applied to investigate the factors that may affect the changes of the co 2 emissions it is found that energy intensity and the income effects respectively contributed most to the decline and the increase of residential co 2 emissions for both urban and rural china in urban china the population effect was found to contribute to the increase of residential co 2 emissions with a rising tendency however in rural china the population effect for residential co 2 emissions kept decreasing since 1998

evaluation of electricity supply sustainability and security multi criteria decision analysis approach abstract electricity supply plays a significantly important role in national economy and society development accordingly the evaluation of electricity supply sustainability and security as an early warning method is beneficial for the decision makers policy makers to take various measures to enhance electricity supply sustainability and security this study aims at developing a multi criteria decision analysis framework for electricity supply sustainability and security evaluation and a total of nine metrics i e shannon weiner index electricity import dependence supply adequacy rural electrification rate electric power losses ratio residential consumption ratio electricity per gross domestic product electric power consumption per capita and fossil fuel dependence in four dimensions including availability and security of supply affordability and reliability energy and economic efficiency and environmental stewardship were employed for electricity supply sustainability and security evaluation fuzzy analytic hierarchy process which allows the users to use linguistic terms to express their opinions was used to determine the weights of the criteria which represent their relative importance in the evaluation of electricity supply sustainability and security grey rational analysis was used to prioritize the status of electricity supply sustainability and security of different countries in different years the electricity supply sustainability and security of the five major emerging national economies brazil russia india china and south africa was studied in chinese perspective by the proposed method

revisiting drivers of energy intensity in china during 1997 2007 a structural decomposition analysis the decline of china s energy intensity slowed since 2000 during 2002 2005 it actually increased reversing the long term trend therefore it is important to identify drivers of the fluctuation of energy intensity we use input output structural decomposition analysis to investigate the contributions of changes in energy mix sectoral energy efficiency production structure final demand structure and final demand category composition to china s energy intensity fluctuation during 1997 2007 we include household energy consumption in the study by closing the input output model with respect to households results show that sectoral energy efficiency improvements contribute the most to the energy intensity decline during 1997 2007 the increase in china s energy intensity during 2002 2007 is instead explained by changes in final demand composition and production structure changes in final demand composition are mainly due to increasing share of exports while changes in production structure mainly arise from the shift of chinese economy to more energy intensive industries changes in energy mix and final demand structure contribute little to china s energy intensity fluctuation from the consumption perspective growing exports of energy intensive products and increasing infrastructure demands explain the majority of energy intensity increase during 2002 2007

driving forces of rapid co2 emissions growth a case of korea abstract this study aims to investigate korea s final demand structure and its impacts on co 2 emissions in order to reduce co 2 emissions and develop environmental policy directions based on the environmentally extended input output model this study adopts a two step approach 1 to estimate the embodied emissions and their intensities for 393 sectors induced by final demand and 2 to calculate the driving factors of emission growth between 2003 and 2011 and then evaluate the result by using structural decomposition analysis sda the findings of this study demonstrate that the impact of composition change in export with less embodied emission intensities tends to offset the increase in co 2 emission by the export scale growth the relatively low residential electricity price has resulted in the rapid growth of household electricity consumption and significantly contributed to emissions growth the result of sda indicates that korea s final demand behavior yielded high carbonization over the same period the findings suggest that korean government should promote exports in industries with less embedded co 2 in order to protect environments in addition emission information of each product and service should be provided for consumers to change their purchase patterns towards contributing to low carbon emissions as active players

long lived private information and imperfect competition we develop a multi period auction model in which multiple privately informed agents strategically exploit their long lived information we show that such traders compete aggressively and cause most of their common private information to be revealed very rapidly in the limit as the interval between auctions approaches zero market depth becomes infinite and all private information is revealed immediately these results are in contrast to those of kyle 1985 in which the monopolistic informed trader causes his information to be incorporated into prices gradually and when the interval between auctions is vanishingly small market depth is constant over time fama 1970 defines a strong form efficient market as one in which security prices fully reflect all available information including both publicly and privately held information in a pioneering and influential article kyle 1985 develops a model in which a single privately informed trader with long lived information optimally exploits his monopoly power over time kyle s 1985 main results are i the informed trader trades in a gradual manner so that his information is incorporated into prices at a slow almost linear rate and ii when auctions are held continuously the depth of the market is constant over time however kyle s 1985 assumption of a single informed trader is strong in the sense that in actual financial markets it is reasonable to expect that at least a few players will have access to private information and will trade in the knowledge that they will face competition with other informed agents in the market 1 we develop a multi period auction model in which multiple strategic informed traders optimally exploit their long lived informational advantage we thus explore the restrictiveness of kyle s assumption of a single informed trader and also examine

exploring the relationship between urbanization energy consumption and co2 emission in mena countries abstract this study explored the relationship between urbanization energy consumption and co2 emission in the mena countries the panel model was utilized taking the period 1980 2009 into consideration pedroni cointegration test results showed that urbanization energy consumption and co2 emission were cointegrated the dynamic ols results also showed that there was a long run bi directional positive relationship between urbanization energy consumption and co2 emission however the significance of the long run relationship between urbanization energy consumption and co2 emission varied across the countries based on their level of income and development moreover long and short run bi directional causal relationships were found between the variables based on the granger causality test results from the results of this study it is important for the urban planners and policy makers in the mena countries to slow the rapid increase in urbanization the level of energy consumption and co2 emission in the mena countries increased more than double thus slowing down the urbanization level can help reduce the level of pollution and energy consumption in addition the increased energy efficiency implementation of energy savings projects energy conservation and energy infrastructure outsourcing reduce the level of pollution produced by urban areas

asset management fees and the growth of finance from 1980 to 2006 the financial services sector of the united states economy grew from 4 9 percent to 8 3 percent of gdp a substantial share of that increase was comprised of increases in the fees paid for asset management this paper examines the significant increase in asset management fees charged to both individual and institutional investors despite the economies of scale that should be realizable in the asset management business the asset weighted expense ratios charged to both individual and institutional investors have actually risen over time if we exclude index funds an innovation that has made market returns available even to small investors at close to zero expense fees have risen substantially as a percentage of assets managed one could argue that the increase in fees charged by actively managed funds could prove to be socially useful if it reflected increasing returns for investors from active management or if it was necessary to improve the efficiency of the market for investors who availed themselves of low cost passive index funds but neither of these arguments can be supported by the data actively managed funds of publicly traded securities have consistently underperformed index funds and the amount of the underperformance is well approximated by the difference in the fees charged by the two types of funds moreover it appears that there was no change in the efficiency of the market from 1980 to 2011 arbitrage opportunities to obtain excess risk adjusted returns do not appear to have been available at any time during the early part of the period passive portfolios that bought and held all the stocks in a broad based market index substantially outperformed the average active manager

why do markets move together an investigation of u s japan stock return comovements this article explores the fundamental factors that affect cross country stock return correlations using transactions data from 1988 to 1992 we construct overnight and intraday returns for a portfolio of japanese stocks using their nyse traded american depository receipts adrs and a matched sample portfolio of u s stocks we find that u s macroeconomic announcements shocks to the yen dollar foreign exchange rate and treasury bill returns and industry effects have no measurable influence on u s and japanese return correlations however large shocks to broadbased market indices nikkei stock average and standard and poor s 500 stock index positively impact both the magnitude and persistence of the return correlations stock return cross country covariances play a key role in international finance changes in these covariances affect the volatility of portfolios and asset prices as these covariances increase one expects that a fewer domestic risks are internationally diversifiable so portfolio volatility increases b the risk premium on the world market portfolio increases 1 c the cost of capital increases for individual firms and d the domestic version of the capm becomes increasingly inadequate 2 despite the important economic consequences of changes in cross country covariances the determinants of the levels and dynamics of these covariances have been little studied from an academic

factorial decomposition of co2 emissions a generalized divisia index approach abstract this paper introduces a novel approach to estimating the impact of the major factors driving co 2 emissions gdp energy consumption population their carbon intensities and other related indicators that may be chosen arbitrarily the suggested approach is based on the generalization of the divisia index to interconnected factors the approach also extends the kaya identity by explicitly including gross domestic product and energy consumption a computer program in r language aimed at automating the calculations is supplied factorial analysis of the united states and china s co 2 emissions is provided as an example of application

informed speculation with imperfect competition competitive rational expectations models have the unsatisfactory property dubbed the schizophrenia problem by hellwig that each trader takes the equilibrium price as given despite the fact that he influences that price an examination of information aggregation in a non competitive rational expectations model using a nash equilibrium in demand functions shows that the schizophrenia problem is avoided by having each trader take into account the effect his demand has on the equilibrium price given a distribution of private information across traders prices reveal less information than in the competition equilibrium and prices no longer become fully informative in the limit as noise trading vanishes or as traders become risk neutral with small traders the model may become one of monopolistic competition not perfect competition in contrast to the competitive model a reasonable model of endogenous acquisition of costly private information is obtained even when traders are risk neutral

market power in a securities market with endogenous information a rational expectations model of a securities market is developed in which one agent the monopolist behaves like a stackelberg leader and other agents behave competitively two information structures one in which each agent has identical information and the other in which each agent has independent information are examined equilibrium is shown to exist and is characterized in both cases but monopoly has a significant effect on the equilibrium only in the latter the optimal strategy of the stackelberg leader is also studied and it is shown that he will not randomize his strategy by adding white noise to his demand function even though this obfuscates the information content of the market price

information aggregation in a noisy rational expectations economy abstract this paper analyzes a general equilibrium model of a competitive security market in which traders possess independent pieces of information about the return of a risky asset each trader conditions his estimate of the return both on his own private source of information and price which in equilibrium serves as a noisy aggregator of the total information observed by all traders a closed form characterization of the rational expectations equilibrium is presented a counter example to the existence of fully revealing equilibrium is developed

on trees and logs abstract in this paper we contrast the main workhorse model in asset pricing theory the lucas 1978 tree model lt model to a benchmark model in financial equilibrium theory the real assets model ra model it is commonly believed that the two models entail similar conclusions since the lt model is a special case of the ra model but this is simply wrong implications of these models can be strikingly at odds indeed under the widely used log linear specification of households preferences we show that for a large set of initial endowments the lt model even with potentially complete financial markets admits only peculiar financial equilibria in which the stock market is completely degenerate in that all stocks offer the same investment opportunity and yet allocation is pareto optimal we investigate why the lt model is so much at variance with the ra model and uncover new results on uniqueness of financial equilibria and introduction of portfolio constraints obtaining in the lt model but not in the ra model