preconditions windows of opportunity and innovation strategies successive leadership changes in the regional jet industry abstract we analyse the drivers of two successive leadership changes in the regional or mid sized jet market a particularly dynamic segment of the commercial aircraft industry in the first instance bombardier a canadian newcomer assumed leadership over the incumbents bae and fokker in 1995 in 2005 the brazilian firm embraer became the market leader in terms of number of regional jet deliveries our theoretical framework considers discontinuities in the building blocks of sectoral innovation systems as windows of opportunity for which challenger firms can devise strategic responses allowing them to assume market leadership it also considers preconditions as necessary capabilities limiting the number of potential challenger companies the analysis of leadership change shows that more efficient engines and technological improvements in subsystems changing oil prices business cycles liberalization of air transport services scope clauses and government interventions provided technological demand and regulatory windows of opportunity launching new aircraft families an architectural innovation targeting the 50 and the 100 120 seat niche markets gave first bombardier s crj family and later embraer s e jet family the leadership the fate of failed challengers and incumbents point to the importance of incumbent traps technological and financial capabilities the timing of windows of opportunity speedy strategic response a proper evaluation of future demand and sheer luck as long lead times and sunk costs entrap incumbents and other inadequately responding companies

much ado about ideas the cognitive factor in economic policy this article examines recent works that investigate how ideas acquire influence over economic policy choice the revival of interest in the material power of ideas stems from discontent with the inability of rational interest based models to explain particular policy outcomes except by resorting to auxiliary assumptions the works under review primarily apply ideas approaches as supplementary analytical devices to clarify the dynamics of policy choices these studies succeed in illuminating the interpenetration of interests and ideas in order to plumb the problematic variability of interest formation and the degree of public influence over economic policy parameters the bolder thesis that ideas have a force of their own independent of all interests is however misconceived and unproved

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

optimal bidding of a group of wind farms in day ahead markets through an external agent in deregulated electricity markets producers offer their energy to the day ahead market as the subsidies for renewable producers are becoming lower and lower they have to adapt to market prices this paper models the energy trading in the day ahead market for wind power producers different strategies are proposed for this purpose 1 several wind farms offering their energy separately to the day ahead market 2 the same strategy as in 1 but compensating the imbalance among different wind farms and 3 a joint offer involving several wind farms through an external agent in order to minimize the imbalances between the offer and the final power generation the strategies are modeled with stochastic mixed integer linear programming and conditional value at risk is used to consider the risk assessment the expected profit including risk aversion is maximized for each wind power producer and for the set of wind power producers in the case of a joint offer a comparison of the different cases is described in detail in a case study and relevant conclusions are provided

latin america s new economic model micro responses and economic restructuring abstract this paper introduces a special issue on the microeconomics of latin america under the new economic model nem the paper reviews the rationale and policies of the nem and analyzes the impact of the reforms at the macroeconomic sectoral and microeconomic levels at the firm level the contributions to this issue demonstrate that a considerable adjustment process is taking place as sectoral structural change indices demonstrate however this has not resulted in widespread shifts of resources between sectors nor has it resulted in significant improvement in overall employment productivity and growth the authors analyze the reasons for this disjuncture and suggest policy alternatives

a review on promoting share of renewable energy by green trading mechanisms in power system abstract in order to promote the development of renewable energy power generation many countries have issued corresponding policies meanwhile some green trading mechanisms have been implemented in power industry and this paper has mainly presented a review on promoting share of renewable energy by green trading mechanisms in power system with a focus on promotion effects of three mechanisms feed in tariff renewable portfolio standard and emission trading scheme apart from a review summaries comparisons and an outlook for future study are also presented our review suggests that feed in tariff and renewable portfolio standard can effectively increase the share of renewable energy power and lead to renewable resource diversity in addition emission trading also provides stimulus for development of renewable energy besides mitigation of carbon emission

institutional challenges caused by the integration of renewable energy sources in the european electricity sector the integration of large amounts of variable renewable energy poses fundamental challenges to the operation and governance of the energy system in this article we address the main institutional challenges that are caused by the integration of variable renewable energy sources like solar and wind energy in the european power system we first address how the variable and unpredictable nature of wind and solar energy increases the demand for flexible resources and we discuss potential sources of flexibility next we elaborate on how the need for more flexibility challenges the prevailing market design of todays liberalized power systems furthermore we discuss the key areas where there is a need for a more integrated approach to research and policy making the need for a more integrated approach is motivated by exposing a number of critical interdependencies between technical and institutional sub systems

a reconsideration of import substitution this paper studies the origins of an import substitution strategy of development summarizes the consequences of that strategy and reviews the problems that led to its failure the fundamental difficulty was its discouragement of the indigenous social learning necessary for sustained independent development the emergence of an outward oriented minimal government strategy is due to the success of korea and taiwan this strategy fails to recognize that social learning requires a strong role for national agents and that this role can be penalized by undue openness an effective strategy must protect and induce domestic learning without penalizing exporting

modeling demand response based on utility function considering wind profit maximization in the day ahead market abstract in this paper behavior of electricity customers is modeled using utility function the utility function which measures customer s preferences is an important concept in microeconomics this function interprets how a rational consumer would make consumption decisions based on the utility function an economic demand model is developed as a function of customer risk aversion behavior to consider the effect of incentive payment on electricity consumption the proposed model is designed to maximize the individual customer s welfare under incentive based demand response dr programs then the dr is used to maximize wind power profit in the day ahead market to this end the wind power producer can either use real time balancing market or dr to cope with the energy submitted in the day ahead market and the delivered energy to determine the day ahead and balancing market prices a probabilistic two step market clearing optimization is solved considering uncertainties of wind power and behavior of electricity customers the results show that as risk aversion behavior increases more incentive payment is needed to convince the customer to reduce his her demand the numerical results demonstrate effectiveness of the proposed dr model in improving the wind generation profit in the day ahead market

coupling of cleaner production with a day ahead electricity market a hypothetical case study during the last 25 years day ahead electricity markets are continuously expanding and the amount of energy being traded through them is increasing moreover there is a possibility for production facilities to act directly on a day ahead market as independent market players the aim of this paper is to analyse the potential for reduction of variable costs of an arbitrary production facility consisting of high efficient combined heat and power chp grid connection and production unit thermal and products storage and photovoltaic pv panels costs are reduced by offsetting the expensive electricity with the use of thermal and products storage and optimization of power flows variable costs are together with the costs of a raw material directly related to input costs of energy in the form of a fossil fuel derivatives and or electricity two hypothetical cases will be analysed 1 production facility with installed pv acting as a prosumer and 2 production facility without the installed pv acting only as a consumer from the market point of view mathematical model consists of two sub models which are solved in a coupled manner the optimization of cost reduction by retaining the output product distribution and model for obtaining the day ahead market clearing price of electricity the results show that coupling of market modelling with optimization of running costs for an arbitrary production facility can be used for estimation of market clearing price and optimization of power flows within the production facility

the consumption function under exponential utility abstract a recent article by cantor derived a closed form solution for the consumer optimization problem with exponential utility and normal income shocks this paper derives solutions without imposing the normality assumption and investigates the effect of risk in this more general setting

the political economy of strategic trade policy and the brazil canada export subsidies saga in this paper we study the on going trade dispute between canada and brazil on export subsidies in the aircraft industry and the reasons for its escalation this is a peculiar case of strategic trade policy insofar as the good i e regional jets is heavily dependent on sub systems that are imported in the two countries the hypothesis that the dispute solely derives from the search for rents and externalities is therefore incomplete without downplaying the role of interest politics we argue that in both countries ideas about the goals of trade policy have an important place in explaining why this dispute drags on for canada the belief in a rules based trading regime has led it to strongly oppose violations while insecurity about its competitiveness has led to a variety of government schemes to support firms in advanced sectors like aerospace for brazil its place as a leader of the developing world acted as a rallying point for government and firms alike the research also argues that the wto process has actually made a resolution of the dispute more difficult by making it too costly for firms and countries to comply with the costs of losing

dual track or academic route for auditors does it matter in the netherlands auditors can be trained in a part time educational track in which students combine working and studying or in a full time educational track the former training is relatively firm specific whereas the latter training is relatively general applying human capital theory we expect higher wage growth for full time educated auditors than for dual educated auditors furthermore full time educated auditors may have better outside options than part time educated auditors this may make it easier for them to switch employers than for the part time educated auditors the predictions on tenure and wages of differently educated auditors are supported by the estimation results in this paper the part time dual track appears an important route for students from a lower socioeconomic background

review and comparison of demand response options for more effective use of renewable energy at consumer level abstract power grids have faced major challenges such as increasing consumption peak demand and co 2 emission distributed generation dg as a solution to these issues is affected by source intermittency grid side limited storage capabilities and supply demand mismatch in order to achieve more benefits and profits for both customers and the utility integrated demand management techniques can be used this paper reviews the issues caused by high penetration of renewables in power production depending on utility characteristics in addition several methods in the literature were reviewed and their both single and combined use was investigated with a comparison study in turkey in field data based simulations consumption of refrigerators were scheduled according to the output of a small scale pv system and changes in consumption in a year were calculated the results were analyzed and compared with each other from the standpoint of change in amount of power taken from grid number of active operation hours shifted to solar periods change in annual consumption and achievable savings in electricity bills in addition to the analysis and comparison of several management methods the paper also proposes a number of terms that widens applicability and can be used in decision making processes

flexible parametric estimation of duration and competing risk models in this paper we specify and estimate a flexible parametric proportional hazards model the model specification is flexibly parametric in the sense that the baseline hazard is non parametric while the effect of the covariates takes a particular functional form we also add parametric heterogeneity to the underlying hazard model specification we specify a flexible parametric proportional competing risks model which permits unrestricted correlation among the risks unemployment duration data are then analysed using the flexible parametric duration and competing risks specifications we find an important effect arising from the exhaustion of unemployment insurance and significantly different hazards for the two types of risks new jobs and recalls

do wages rise with job seniority many previous studies have found a strong positive effect of job seniority tenure on wages this paper re examines the evidence using a simple instrumental variables scheme to deal with the fact that tenure is likely to be related to unobserved individual and job characteristics that affect the wage we use the variation of tenure over a given job match as the principal instrumental variable for tenure the variation in tenure over the job is uncorrelated by construction with the fixed individual and job match specific components of the error term of the wage equation our main finding is that the partial effect of tenure on wages is small and that general labour market experience and job shopping account for most wage growth over a career the strong cross section relationship between tenure and wages is due primarily to heterogeneity bias prior researchers see mincer and jovanovic 1981 bartel and borjas 1981 borjas 1981 cline 1979 and mellow 1981 and many others have established that job seniority has a strong positive relationship with wage rates in a cross section or a cross section time series of individuals in this paper we re evaluate the evidence concerning the partial effects on wages of job seniority tenure and total labour market experience the extent to which wages rise with tenure is important for several reasons first and foremost the wage tenure profile is a fundamental question about the structure of earnings over careers second the wage tenure profile is a key determinant of the extent to which the earnings power of individuals is tied to specific jobs and it is important for assessment of the losses suffered by displaced workers hamermesh 1984 third evidence that wages rise with job tenure has been used to explain the decline in quits with tenure since the wage growth on the current job lowers the probability that the worker will locate a superior alternative a growing theoretical literature surveyed in parsons 1984 has taken the evidence of a strong wage tenure profile at face value and sought to provide an explanation for the relationship the most prominent explanation is the theory of specific human capital oi 1962 becker 1962 mincer 1974 parsons 1972 kuratani 1973 and hashimoto 1980 in which the growth of wages with tenure holding experience constant is attributed to the worker s share of investments in firm specific skills more recently lazear 1981 has presented a supervision model of wage growth in which firms defer compensation as a means of inducing workers not to shirk freeman 1977 and harris and holmstrom 1982 provide an explanation for wage growth based on an insurance motive salop and salop 1976 nickell 1976 and guasch and weiss 1982 present adverse selection models of wage growth in which firms use a wage tenure profile as a

a meta analysis on the price elasticity and income elasticity of residential electricity demand abstract price elasticity and income elasticity can quantitatively measure the impact of price volatility and income diversity on household electricity demand to analyze household electricity demand and better identify the main factors affecting residential electricity demand elasticity in previous literature a meta analysis based on a comprehensive and systematic summary of 103 articles is presented in this study the influencing factors are identified with a weighed least squares wls linear regression model to evaluate their strength the price elasticities and income elasticities are discussed from three dimensions namely short term long term and unmarked the results show that residential electricity demand is almost price inelastic and income inelastic in the short term but in the long term some residential electricity demand is price elastic and income elastic the results also reveal that residential electricity demand elasticity is affected by many factors such as time interval and sample period these conclusions can support the formulation of more effective electricity price and energy policy

legalization trade liberalization and domestic politics a cautionary note if the purpose of legalization is to enhance international cooperation more may not always be better achieving the optimal level of legalization requires finding a balance between reducing the risks of opportunism and reducing the potential negative effects of legalization on domestic political processes the global trade regime which aims to liberalize trade has become increasingly legalized over time increased legalization has changed the information environment and the nature of government obligations which in turn have affected the pattern of mobilization of domestic interest groups on trade from the perspective of encouraging the future expansion of liberal trade we suggest some possible negative consequences of legalization arguing that these consequences must be weighed against the positive effects of legalization on increasing national compliance since the weakly legalized gatt institution proved sufficient to sustain widespread liberalization the case for further legalization must be strong to justify far reaching change in the global trade regime

trade policy issues and empirical analysis interest in u s trade policy has been stimulated in recent years by the massive american trade deficit by the belief that intervention by foreign governments in international markets has given other countries a competitive edge over the united states and by concern about the increase in protectionism among industrial countries in turn major analytical developments in international economics have revolutionized trade theory broadening its scope both by introducing in a more formal manner such concepts as imperfect competition increasing returns product differentiation and learning effects and by including the study of political and economic factors that shape trade policy decisions this collection of papers the result of a conference held by the nber applies these new trade theories to existing world cases and also presents complementary empirical studies that are grounded in more traditional trade theories the volume is divided into four parts the papers in part 1 consider the problem of imperfect competition empirically assessing the economic effect of various trade policies introduced in industries in which the new trade theory seems to apply those in part 2 isolate the effects of protection from the influences of the many economic changes that accompany actual periods of protection and also examine how the effects from exogenous changes in economic conditions vary with the form of protection part 3 provides new empirical evidence on the effect of foreign production by a country s firms on the home country s exports finally in part 4 two key bilateral issues are analyzed recent u s japanese trade tensions and the incident involving the threat of the imposition of countervailing duties by the united states on canadian softwood lumber

trade disputes in the commercial aircraft industry t he recent launch of airbus s new super jumbo the a 380 has provoked yet another trade conflict between the united states and european union eu in the aircraft industry the industry has strained trade relationship between the us and the eu ever since the airbus s entry into the market in 1974 these tensions tapered with the signing of the 1992 us eu agreement on trade in civil aircraft the 1992 agreement in fact boeing and airbus shortly considered cooperating on the superjumbo project during the early 1990s but the collaboration faltered because the two sides disagreed on the commercial viability of the aircraft while airbus forecasted that over the next 20 years airlines would demand approximately 1 500 superjumbos yielding around 345 billion in revenues boeing s projections were much more reserved it forecasted only 700 planes hence boeing doubted the project could break even the economist 2001 as a result airbus proceeded with the development of the new aircraft on its own like in previous airbus s programmes the eu will provide some direct financial support to airbus to partially cover the a 380 s 12 billion launch costs us trade officials question the legitimacy of this financial arrangement especially since boeing doubts the commercial viability of the project their objections are illustrated in the 2000 foreign trade barriers report of the us trade representative