what separates us sources of resistance to globalization with increasing sophistication economists have been estimating gravity equations for five decades robust evidence shows that borders and distance impede trade by much more than tariffs or transports costs can explain we therefore advocate investigation of other sources of resistance despite the greater difficult involved in measuring and modelling them from our selective review of recent findings a unifying explanation emerges a legacy of historical isolation and conflict forged a world economy in which neither tastes nor information are homogeneously distributed cultural difference and inadequate information manifest themselves most strongly at national borders and over distance

bank integration and state business cycles we investigate how integration of bank ownership across states has affected economic volatility within states in theory bank integration could cause higher or lower volatility depending on whether credit supply or credit demand shocks predominate in fact year to year fluctuations in a state s economic growth fall as its banks become more integrated via holding companies with banks in other states as the bank linkages between any pair of states increase fluctuations in those two states tend to converge we conclude that interstate banking has made state business cycles smaller but more alike i introduction the united states banking system was once anything but united until 1978 every state in the union barred banks from other states so instead of one national banking system we had more like 50 little banking systems one per state 1 once states opened their borders to out of state banks bank holding companies marched in and bought up or merged with banks all over the country in 1975 just 10 percent of the bank assets in the typical state were owned by a multistate bank holding company by 1994 this interstate bank asset ratio had risen to 60 percent figure i our paper investigates how the advent of interstate banking integration in the united states has affected economic volatility within states with the united states balkanized banking system the fate of a state and its banks were closely tied as went the state so went the banks the farm price deflation in the early 1980s bankrupted many farmers and many farm banks falling oil prices in the mid 1980s wiped out a lot of texans and a lot of texas banks shocks to commodity prices probably caused these contractions but frictions in the banking sector may have aggravated them by allowing a freer flow of bank capital and lending among states we maintain that interstate banking will reduce the drag that banking frictions can have on economic contractions

the impact of wind power generation on the electricity price in germany abstract this paper investigates the relationship between intermittent wind power generation and electricity price behaviour in germany using a garch model i evaluate the effect of wind electricity generation on the level and the volatility of the electricity price in an integrated approach the results show that variable wind power reduces the price level but increases its volatility this paper s results also indicate that regulatory change has stabilised the wholesale price the electricity price volatility has decreased in germany after a modification of the marketing mechanism of renewable electricity this gives confidence that further adjustments to regulation and policy may foster a better integration of renewables into the power system

bilateral trade flows the gravity equation and functional form the gravity equation has been frequently and successfully used for nearly thirty years to further understanding of the determinants of bilateral trade flows across countries and subsequently to analyze commercial policy measures a maintained hypothesis by the applied literature on international trade as gravity equation loglinearity is questioned in this paper since the possibility of a general functional form is open through box cox transformations using data corresponding to the sixteen oecd most developed countries from 1964 to 1987 the authors reach the conclusion that the optimal functional form is slightly yet statistically different from the loglinear form in every year of the sample and they are able to propose one unique functional form suitable for all the sample period copyright 1993 by mit press

region division of china s carbon market based on the provincial municipal carbon intensity abstract the difference of carbon trading prices among emission trading scheme pilots may hinder the unified carbon market that china s government plans to establish in 2017 to achieve this goal this study develops a regional carbon market mode based on the similarity of thirty provinces municipalities carbon intensity by the aid of logarithmic mean divisia index autoregressive and dynamic time warping models according to the dynamic clustering result we divide these provinces municipalities into three sub markets that are the western eastern and central markets furthermore we propose the carbon emission modes corresponding to each sub market namely the energy dependence mode western market sustainable economy mode eastern market and industrial upgrading mode central market briefly we suggest that the unified market should be firstly divided into some sub markets finally we propose some critical routes as well as corresponding managerial implications for establishing such unified market

home biased gravity the role of migrant tastes in international trade abstract immigrants tend to buy products from their home countries as a result the more immigrants of a given ethnicity a country has the more it will tend to import from those immigrants countries of origin this effect of migrant heterogeneity is ignored by the standard gravity literature that assumes homogeneous preferences among resident consumers this paper embeds that observed regularity into a structural gravity model gravity derived from the almost ideal demand system generates bilateral trade shares with three distinct components ethnic composition of the resident population bilateral trade cost and per capita income using international trade and transnational migration data among 40 countries this paper estimates the home bias of each ethnic group in tastes the results show that consumers tastes for products from their country of origin deviate from unbiased levels by 35 percent on average ethnic taste bias is found to explain half of the trade bias counterfactuals suggest that anti immigration policy significantly impedes trade with immigrants countries of origin

the excess sensitivity of layoffs and quits to demand excessive layoffs in bad times and excessive quits in good times both stem from the same weakness in practical employment arrangements the specific nature of worker firm relations creates a situat

staggered price setting translog preferences and endogenous persistence abstract this paper generates persistent real effects of a monetary disturbance in the context of staggered price setters the model combines two related and reinforcing features a translog demand structure and a particular input output production structure these features offer a rationale why a firm when computing its own optimal contract price is influenced by the prices set in other overlapping contracts practically the two features interact in a positive manner and provide a way to generate significant endogenous persistence

european emission trading scheme and competitiveness a case study on the iron and steel industry abstract we quantify the impact of the european emission trading scheme ets on the two dimensions of competitiveness production and profitability for the iron and steel industry among those covered by the scheme this sector is one of the most exposed since it is both highly co 2 intensive and relatively open to international trade we also examine the robustness of these results to various assumptions marginal abatement cost curve trade and demand elasticities as well as pass through rates and updating of allocation rules of which the latter two are scarcely debated we conclude that for this sector competitiveness losses are small we prove this conclusion to be robust hence arguments against tightening the environmental stringency of the ets in phase ii are not justified on grounds of competitiveness loss our systematic sensitivity analysis allows us to identify the important assumptions for each output variable it turns out that pass through rates and updating rules are significant despite being often implicit and least debated in existing analyses

discretionary fiscal responses to the covid 19 pandemic we analyse discretionary fiscal responses to the covid 19 pandemic we distinguish policies for three phases of the pandemic 1 acute overall disruption 2 initial recovery phase and 3 the longer term we analyse measures already taken in 1 and consider measures relevant for 2 we distinguish between lump sum subsidies such as deferral of tax payments which may ease financial constraints and measures which intentionally affect incentives we also identify factors that are important given the short term nature of the measures

carbon trading in the policy mix the kyoto protocol is stimulating the development of emissions trading schemes at the national and international levels these are being introduced alongside existing policy instruments such as carbon taxes and negotiated agreements leading to complex problems of policy interaction but the topic of policy interaction remains under researched this paper aims to improve understanding of such interactions by examining the conditions under which a cap and trade scheme for carbon dioxide emissions may usefully coexist with carbon energy taxes support mechanisms for renewable electricity and policies to promote energy efficiency the paper argues that each of these instrument combinations may be acceptable provided they contribute to either improving the static or dynamic efficiency of the trading scheme or delivering other valued policy objectives but since the coexisting instruments may raise overall abatement costs while contributing nothing further to emission reductions the objectives and trade offs within the policy mix must be explicit

forecasting financial volatilities with extreme values the conditional autoregressive range carr model we propose a dynamic model for the high low range of asset prices within fixed time intervals the conditional autoregressive range model henceforth carr the evolution of the conditional range is specified in a fashion similar to the conditional variance models as in garch and is very similar to the autoregressive conditional duration acd model of engle and russell 1998 extreme value theories imply that the range is an efficient estimator of the local volatility e g parkinson 1980 hence carr can be viewed as a model of volatility out of sample volatility forecasts using the s p500 index data show that the carr model does provide sharper volatility estimates compared with a standard garch model

international trade without ces estimating translog gravity this paper derives a micro founded gravity equation in general equilibrium based on a translog demand system that allows for endogenous markups and substitution patterns across goods in contrast to standard ces based gravity equations trade is more sensitive to trade costs if the exporting country only provides a small share of the destination country s imports as a result trade costs have a heterogeneous impact across country pairs with some trade flows predicted to be zero i test the translog gravity equation and find strong empirical support in its favor

trade in environmental goods evidences from an analysis using elasticities of trade costs negotiations on the liberalization of environmental goods egs and services within the wto doha round mandated in november 2001 are facing specific challenges conflicting interests and differing perceptions of the benefits of increased trade in egs were reflected in different approaches proposed for determining egs using import data of 34 organisation for economic co operation and development oecd member countries and from a sample of 167 countries from 1995 to 2012 we discuss the trade effect of reducing barriers on egs we analyze the lists of egs proposed by the asia pacific economic cooperation and oecd using a translog gravity model we found that removing tariff barriers for egs will have a modest impact because for the biggest importers and exporters elasticities of trade costs are very low while for most trading relationships they are very high making it difficult for exporters to maintain their markets overall our results suggest that because of their substantial effect on international trade future negotiations on egs should also address the issues of standards and nontariff barriers

application of flexible function forms in climate change research theoretical regularity and model selection abstract demand systems are widely applied to the energy and fuel demand research as result of growing concerns over climate change and global warming especially these issues in cities however in existing literature on consumer demand the authors too often ignore the theoretical regularity conditions or do not report the results of full regularity checks as a consequence the duality theory and second order conditions for optimizing behavior are invalid in face of the real world problem and the conclusions or suggestions proposed based on the empirical researches are thereby inappropriate and even misleading driven by the gap between theoretical models and practical problems we estimate the demand for road passenger transport in china which is considered to be one of the most important sources of air pollution in city using three flexible functional forms the rotterdam model the almost ideal demand system aids and the quadratic aids quaids we focus on all theoretical regularities positivity monotonicity curvature adding up homogeneity and symmetry and argue that unless there is a coincidence flexible functional forms are subject to certain theoretical regularities and that all these regularities are equally important both in theory and in practice empirical estimation shows that the aids model is the only model that is able to provide theoretically consistent estimation of the demand for road passenger transport in china our results also imply that the private transportation is elastic in price changes compared to urban public transportation and intercity public transportation we bridge the gap between theoretical modelling and empirical research on consumer energy fuel demand especially in the research about consumer demand for energy intensive products and services our study points out a crucially important fact that the researchers and policy makers must pay attention to the regularities of the theoretical modelling in the practical applications

testing for weak form efficiency of crude palm oil spot and future markets new evidence from a garch unit root test with multiple structural breaks there is a sizeable literature that tests for weak form efficiency in commodity and energy spot and future prices while many studies now allow for multiple structural breaks to address the criticism that conventional unit root tests have low power to reject the unit root null in the presence of structural change the extant literature overlooks the fact that conventional unit root tests are biased in the presence of conditional heteroscedasticity we apply a recently developed generalized autoregressive conditional heteroscedasticity garch unit root test with multiple structural breaks to crude palm oil spot and future prices and find much more evidence against weak form efficiency than that found using tests that fail to allow for conditional heteroscedasticity our results point to the importance of allowing for heteroscedasticity when testing for efficiency in commodity and energy spot and future prices

paying a visit the dalai lama effect on international trade is political compliance a precondition for healthy trade relations with china the chinese government frequently threatens that meetings between its trading partners officials and the dalai lama will be met with animosity and ultimately harm trade ties with china we run a gravity model of exports to china from 159 partner countries between 1991 and 2008 to test the extent to which bilateral tensions affect trade with autocratic china in particular we investigate empirically whether countries that receive the dalai lama despite china s opposition experience a significant reduction of their exports to china in order to account for the potential endogeneity of meetings with the dalai lama the number of tibet support groups and the travel pattern of the tibetan leader are used as instruments our empirical results support the idea that countries officially receiving the dalai lama at the highest political level are punished through a reduction of their exports to china however this dalai lama effect is only observed for the hu jintao era and not for earlier periods furthermore we find that this effect is mainly driven by reduced exports of machinery and transport equipment and that it disappears two years after a meeting took place

unemployment insurance and short time compensation the effects on layoffs hours per worker and wages we analyze two unemployment insurance systems in one unemployed workers receive benefits while those on reduced hours do not as in north america at least until recently in the other short time compensation is paid to workers on reduced hours as in europe the first system causes inefficient temporary layoffs for some parameters the latter does not but implies inefficient hours per worker some evidence is presented regarding these effects despite policymakers recent enthusiasm for short time compensation the clear implication of this project is that changes should come on the tax not benefit side of the system

how does germany s green energy policy affect electricity market volatility an application of conditional autoregressive range models abstract based on a dynamic model for the high low range of electricity prices this article analyses the effects of germany s green energy policy on the volatility of the electricity market using european energy exchange data from 2000 to 2015 we find rather high volatility in the years 2000 2009 but also that the weekly price range has significantly declined in the period following the year 2009 this period is characterised by active regulation under the energy industry law enwg the eu emissions trading directive etd and the renewable energy law eeg in contrast to the preceding period price jumps are smaller and less frequent especially for day time hours implying that current policy measures are effective in promoting renewable energies while simultaneously upholding electricity market stability this is because the regulations strive towards a more and more flexible and market oriented structure which allows better integration of renewable energies and supports an efficient alignment of renewable electricity supply with demand

hours layoffs and unemployment insurance funding theory and practice in an international perspective the strikingly different behaviour of important economic aggregates in the united states and other industrial countries has received surprisingly little attention from economists among recent exceptions however gordon i 982 has shown that wages and hours of work are much more flexible in the united kingdom and japan than in the united states such relative hours variability is confirmed in a macro analysis by capdevielle and alvarez i98i and at micro level by sengenberger and kohler i982 the latter authors are concerned with labour market adjustment within the u s and west german automobile industries between i 97 i and i 980 estimates of the german workeroutput elasticity are found to be less than half that of the united states while the german hours elasticity is twice the united states figure at the national aggregate level capdevielle and alvarez also reveal much greater employment variability in the united states than in most other oecd countries in the years following the i973 74 opec supply shock much in line with these employment hours observations moy and sorrentino i98i argue that after

the expansion of renewable energies and employment effects in germany the promotion of electricity produced from renewable energy is a high priority of the european union as well of its member states the german government wants to increase the share of renewable energies from about 5 to 12 by 2010 to attain this goal the german government has introduced compulsory compensation schemes for electricity produced from renewable energy fed into the public grid this paper examines the economic impact of this policy employing an econometric model particular emphasis was given to employment effects in general we distinguish two effects 1 an expansive effect resulting from additional investments and 2 a contractive effect resulting from an increase in the production cost of power the first effect will dominate during the first years and lead to an increase in employment of approximately 33 000 new jobs however the contractive effect will offset these gains and lead to a slightly negative employment balance by 2010

dual labor markets at work fitting duration models on an inflow sample of jobs in germany starting in 2002 to 2010 the author investigates the impact of employers use of temporary agency work on regular workers job stability in line with dual labor market theory the author finds that nontemporary jobs are significantly more stable when employers use temporary agency workers the rise in job stability stems mainly from reduced transitions into nonemployment suggesting that nontemporary workers are safeguarded against involuntary job losses the findings are robust to controlling for unobserved permanent employer characteristics and changes in the observational window that comprises the labor market disruption of the great recession

analysis of existing building energy saving policies in japan and china building sector accounts for a large percentage of the total national energy consumption in most of the countries thus it is critical to formulate and implement appropriate energy saving policies in the building sector this paper focuses on energy saving policies in the building sector by conducting a comparative study between japan and china the exiting building energy saving bes policies actual effectiveness of policy implementation and obstacles to the effective policy implementation are compared in sequence related policies are categorized into four groups control and regulatory instruments economic market based instruments fiscal instruments and information and voluntary actions policy effect analysis identifies that bes policies have promoted building energy saving in both japan and china obstacles comparison reveals that japan and china shared many obstacles including high transaction costs and lack of applicable methodology compared with japan china is suffering more obstacles such as inefficient enforcement insufficient levels of information and awareness and immature financial regulation system based on the previous findings common suggestions for overcoming these obstacles of bes policies in japan and china are presented such as the accurate methods of baseline identification and emission accountings innovative incentives and more capacity building activities distinct suggestions for japan and china are also added by considering their own situations so that both countries can further improve their bes policies

voluntary emission trading potential of turkey abstract climate change is likely to cause serious market failures and carbon trading as a market instrument can help correct its negative impacts the global carbon markets established to combat climate change include regulatory and voluntary markets turkey cannot utilise regulatory carbon markets under the kyoto protocol as a result of her unique position in the unfccc some offsetting projects in turkey have benefitted only voluntary emission trading for the reduction of ghg emissions due to on going climate change negotiation under the unfccc it seems that turkey will not use the current regulatory carbon markets thus turkey should promote the use of and participation in voluntary carbon markets in this article emission reduction potential via energy efficiency renewable energy and solid waste management and corresponding offsetting of credits with their estimated prices is investigated for the period between 2013 and 2020 the emission reduction potential for energy efficiency renewable energy and solid waste management projects are estimated at 403 312 and 356 million tons of co 2 equivalent emissions respectively totalling 1 071 million tons of co 2 equivalent the total revenue of the carbon certificates are estimated in the range of 19 775 33 386 million us dollars for the same period

short time work benefits revisited some lessons from the great recession the great recession triggered a resurgence of short time work stw throughout the oecd several countries introduced stw from scratch or significantly expanded the scope of the programmes already in place in some countries like italy japan and germany between 2 5 and 5 of the workforce participated in stw schemes at the trough of the recession in this paper we analyse the rationale for stw benefits and their effects on labour adjustment from both a cross country and a time series perspective we find that stw actually contributed to reduce job losses during the great recession however the number of jobs saved according to our macroeconomic and microeconomic estimates is smaller than the number of participants in these schemes and the full time equivalent jobs involved pointing in some countries to sizeable deadweight costs other institutions like plant level bargaining over hours wages and employment levels may be more effective than stw in encouraging adjustment along the intensive margins in the presence of temporary shocks our results also suggest that stw cannot be readily extended to countries having much different institutional configurations as the demand for stw is very much affected by other institutions such as employment protection legislation and the degree of centralization of collective bargaining furthermore stw must be temporary as during upturns may actually negatively affect employment we also find that specific design features of stw such as experience rating and disincentives to 100 reductions in working hours are important in improving the cyclical properties of stw tito boeri and herbert bruecker

navigating the great recession the impact of working time accounts in germany the existence of working time accounts played an important role in overcoming the negative effects of the great recession in germany the authors analysis of data on establishments with a works co

cross border commuting and consuming an empirical investigation abstractthis article contributes to our understanding of cross border activity in general and the determinants of cross border trade in particular by focusing on the part of cross border sales that arise due to work related cross border crossings of households we analyse empirically how cross border consumption expenditures vary across product and services categories as well as household characteristics using representative household survey data of cross border commuters to luxembourg in total these households spend an estimated 17 of their gross annual income across the border contributing about 10 to the total household final consumption expenditure hfce in luxembourg cross border expenditure is linked to individual and household related characteristics and to distance between home and work cross border commuters systematically exploit arbitrage opportunities that arise because of existing price level index differences between the country of work and the country of residence

pass through of exchange rates and competition between floaters and fixers this paper studies how a rise in the share of u s imports from china or any country with a fixed exchange rate could disproportionately lower pass through of exchange rates to u s import prices we develop a theoretical model showing how changes in the competitive environment induce exporters from other countries to lower markups in response to a dollar depreciation thereby moderating pass through the model indicates that a particular local bias condition is necessary for this effect and that free entry amplifies it the model also produces an approximately log linear structural equation for pass through regressions including the china share panel regressions over 1993 2006 indicate that the rising share of trade from china or from all countries with fixed exchange rates can explain a decline in pass through by about onefifth of its size

protection and performance we examine the linkages between import policy and export performance extending classic macroeconomic trade effects to more recent concepts from the modern literature on gravity models we also examine these effects empirically with a panel of global and bilateral trade spanning 15 years our emphasis on the role of import policy i e tariffs of exporters as an explanation of trade volumes contrasts with the recent emphasis on importer policy in the gravity literature it also reinforces the growing body of evidence on the importance of economic environmental policy and infrastructure conditions in explaining relative export performance and is in line with the literature on global value chains

after kyoto alternative mechanisms to control global warming after more than a decade of negotiations and planning under the framework convention on climate change fccc the first binding international agreement to control the emissions of greenhouse gases has come into effect in the kyoto protocol the first budget period of 2008 2012 is at hand moreover the scientific evidence on greenhouse warming strengthens steadily as observational evidence of warming accumulates the institutional framework of the protocol has taken hold solidly in the european union s emissions trading scheme ets which covers almost half of europe s carbon dioxide emissions notwithstanding this apparent success the kyoto protocol is widely seen as somewhere between troubled and terminal early troubles came with the failure to include the major developing countries along with lack of an agreedupon mechanism to include new countries and extend the agreement to new periods the major blow came when the united states withdrew from the treaty in 2001 by 2002 the protocol covered only 30 percent of global emissions while the hard enforcement mechanism in the ets accounts for about 8 percent of global emissions even if the current protocol is extended models indicate that it will have little impact on global temperature change unless there is a dramatic breakthrough or a new design the protocol threatens to be seen as a monument to institutional overreach nations are now beginning to consider the structure of climate change policies for the period after 2008 to 2012 some countries states cities companies and even universities are adopting their own climate change policies are there in fact alternatives to the scheme of tradable emissions permits embodied in the protocol the fact is that alternative approaches have not had a serious hearing among natural scientists or among policymakers what are some alternatives for global public goods there are three potential approaches command and control regulation quantity oriented market approaches and taxor price based regimes of these only the tradable quantity and the price like regimes have any hope of being reasonably efficient under a tradable quantity approach an agreement proceeds by setting limits on emissions by different countries the limits are partially or wholly transferable among countries this is the approach taken under the kyoto protocol this approach has very limited international experience under existing protocols such as the cfc chlorofluorocarbon mechanisms and somewhat broader experience under national trading regimes such as the u s sulfur dioxide regime a radically different approach is to use harmonized prices fees or taxes as a method of coordinating policies among countries this approach has no international experience in the environmental area although it has modest experience nationally in such areas as the u s tax on ozone depleting chemicals on the other hand the use of harmonized price type measures has extensive international experience in fiscal and trade policies such as with the harmonization of taxes in the european union and harmonized tariffs in international trade these thoughts on the structure of international agreements to control global warming should not be regarded as negotiating strategies

the merit order effect a detailed analysis of the price effect of renewable electricity generation on spot market prices in germany the german feed in support of electricity generation from renewable energy sources has led to high growth rates of the supported technologies critics state that the costs for consumers are too high an important aspect to be considered in the discussion is the price effect created by renewable electricity generation this paper seeks to analyse the impact of privileged renewable electricity generation on the electricity market in germany the central aspect to be analysed is the impact of renewable electricity generation on spot market prices the results generated by an agent based simulation platform indicate that the financial volume of the price reduction is considerable in the short run this gives rise to a distributional effect which creates savings for the demand side by reducing generator profits in the case of the year 2006 the volume of the merit order effect exceeds the volume of the net support payments for renewable electricity generation which have to be paid by consumers

organizing business ecosystems in emerging electric vehicle industry structure mechanism and integrated configuration the paper develops the structure of business ecosystems operating mechanisms and integrated configuration models by examining multiple case studies of electric vehicle ev producers in china and the eu germany france and denmark the ev ecosystem can be categorized into four paradigms using a target market mainstream or niche innovation and growth context advanced economies or emerging economies these four paradigms are advanced mainstream advanced niche emerging mainstream and emerging niche this research also explores three key operating mechanisms with which to organize ev business ecosystems namely vision developing platform organizing and institution re configuring as a latecomer compared with western paradigms the development of chinese ev industry is more openly engaged with vision development platform organization and institution reconfiguration such as government regulation

the market value of variable renewables the effect of solar wind power variability on their relative price this paper provides a comprehensive discussion of the market value of variable renewable energy vre the inherent variability of wind speeds and solar radiation affects the price that vre generators receive on the market market value during windy and sunny times the additional electricity supply reduces the prices because the drop is larger with more installed capacity the market value of vre falls with higher penetration rate this study aims to develop a better understanding on how the market value with penetration and how policies and prices affect the market value quantitative evidence is derived from a review of published studies regression analysis of market data and the calibrated model of the european electricity market emma we find the value of wind power to fall from 110 of the average power price to 50 80 as wind penetration increases from zero to 30 of total electricity consumption for solar power similarly low value levels are reached already at 15 penetration hence competitive large scale renewable deployment will be more difficult to accomplish than as many anticipate

short time work some long run implications this paper outlines a simple model to examine some long run implications of short time work schemes stws on labor market performance and welfare it is not clear that stws reduce unemployment as the induced wage push discourages job creation

on the timing and efficiency of creative destruction we analyze the timing pace and efficiency of ongoing job reallocation that results from product and process innovation there are strong reasons why an efficient economy ought to concentrate both job creation and destruction during recessions when the opportunity cost of reallocation is lowest incomplete contracting between labor and capital can disrupt this synchronized pattern and decouple creation and destruction transactional difficulties also lead to technological sclerosis characterized by excessively slow renovation government incentives to production may alleviate high unemployment but exacerbate sclerosis in contrast creation incentives increase the pace of reallocation an optimal combination of both policies restores economic efficiency

how carbon offsetting scheme impacts the duopoly output in production and abatement analysis in the context of carbon cap and trade abstract in the context of addressing climate change the carbon emission trading scheme has become one of the main measures adopted by many countries and regions to achieve emission reduction goals noticing this current lack of research based on a duopoly model this paper quantitatively explores the impact of carbon offsetting scheme on both emission trading participants profits and industry s output by drawing on advanced experience of carbon offsetting scheme from developed countries such as us switzerland and eu and thus provides a perspective for government to design optimal aggregate standard for carbon cap and trade results show a negative correlation between enterprises carbon intensity and their equilibrium output in the product market and indicate a threshold for the relative magnitude of the duopoly enterprises carbon intensity above which their absolute output will differ dramatically the incorporation of carbon offsetting scheme into a non offset quota trading scheme will reduce its equilibrium carbon price thereby mitigate its negative impact on industry s total output in the product market by an either linear or quadratic form depending on the design for the proportion ceiling of offsetting quota

the joint design of unemployment insurance and employment protection a first pass unemployment insurance and employment protection are typically discussed and studied in isolation in this paper we argue that they are tightly linked and we focus on their joint optimal design in a simple model with risk averse workers risk neutral firms and random shocks to productivity we show that in the first best unemployment insurance comes with employment protection in the form of layoff taxes indeed optimality requires that layoff taxes be equal to unemployment benefits we then explore the implications of four broad categories of deviations from first best limits on insurance limits on layoff taxes ex post wage bargaining and ex ante heterogeneity of firms or workers we show how the design must be modified in each case finally we draw out the implications of our analysis for current policy debates and reform proposals from the financing of unemployment insurance to the respective roles of severance payments and unemployment benefits

sustaining the emerging carbon trading industry development a business ecosystem approach of carbon traders abstract this paper explores how carbon traders nurture the business ecosystem to sustain the emerging carbon trading industry development we collected primary data from a multinational carbon trader and its ecosystem partners in china through the construction of interviews and documentary the research findings show the carbon trading industry has experienced four stage evolution with different driving forces the carbon trader attracted and organized ecosystem partners to facilitate the cdm project owners to create carbon credits and trade them a systematic business ecosystems approach through the lens of context cooperation and configuration initiated by carbon traders has facilitated the industry development our findings also implicate to industrial practitioners and policymakers for sustaining the emerging industry development at both the current and the post kyoto protocol periods

how to deal with negative power price spikes flexible voluntary curtailment agreements for large scale integration of wind for the large scale integration of electricity from renewable energy sources res e the german system seems to reach its limits in 2009 the electricity wholesale market experienced serious negative prices at times of high wind and low demand the feed in system in germany consists of a fixed feed in price a take off obligation and a res priority rule and in practice only very restrictive use of res e curtailment exactly the latter is the problem we argue that the overall performance of the system would improve seriously by lifting the restrictions on the use of voluntary curtailment agreements while retaining the priority rule as such since generators of res e can only improve under this system reform investment conditions improve leading to higher installed res e capacity this in turn implies that reduced wind output due to curtailment can actually be offset by higher wind output in all periods in which there is no problem

market potential and economic development with non homotheticity abstract we investigate the relationship between gdp per capita trade costs demand and income inequality between 1996 and 2011 specifically we apply the aggregate aids based gravity model as developed in fajgelbaum and khandelwal 2016 to a panel of 40 countries to generate a new measure of market potential we then relate this measure of market potential to country level gdp per capita finding a significant positive relationship which performs better than ces based measures of market potential the aids model allows for non homotheticities in demand and the possibility that nations produce goods with higher or lower income elasticities income inequality and gdp per capita of trade partners matter for domestic incomes but interact with these elasticities our paper shows that ldcs that export products with low income elasticities like india and china rank much lower in market potential than in a ces or a translog specification

where at home do exporters produce and export foreign growth can induce changes in production structures across domestic regions through international trade with a two country model with the explicit incorporation of two regions in the home country we show that effects of foreign growth on exports and production to be possibly asymmetric among home regions this foreign growth effect is especially prominent in asia with china emerging as the largest trading country we empirically test our theoretical hypothesis with the data set of japanese regions we find evidence that the growth of asian countries leads to a change in the regional structure of exports and production in japan with respect to an adjacent asian country the growth of a foreign country exerts opposite effects on production among japanese regions

implicit contracts a survey 7mplicit contracts resolve the distribution of uncertainty and utilization of specific human capital between risk averse workers and less risk averse firms incomplete contracts are required to yield involuntary layoffs in contract markets otherwise contracts are efficient and pareto optimal by construction there is a close relation between contract theory and neoclassical labor market theory contracts smooth consumption but increase the volatility of labor supply and labor utilization to demand disturbances because contractural insurance eliminates the income effects of socially diversifiable risks this result is similar to the intertemporal substitution hypothesis however the price mechanism in a contract is substantially different contracts embody a nonlinear two part pricing scheme the lump sum part allocates the income consumption consequences of risks and the marginal pricing part allocates production and labor utilization this implicit pricing mechanism is in all respects flexible though the observed average hourly wage combines both parts and may give the outward appearanceof rigidity furthermore the observed average wage rate in a contract does not reflect marginal conditions necessary for structural econometric estimation indivisibilities appear necessary to account for the split between work sharing and layoffs contracts with private information are also considered in the nonlinear pricing context this abstract was borrowed from another version of this item

together at last trade costs demand structure and welfare abstract we show that relaxing the assumption of ces preferences in monopolistic competition has surprising implications when trade is restricted integrated and segmented markets behave differentl

temporary agency work and the great recession we investigate with german data how the use of temporary agency work has helped establishments to manage the economic and financial crisis in 2008 09 we examine the regular workforce development use of short time work and business performance of establishments that made differential use of temporary agency work prior to the crisis overall our results suggest that establishments with a greater use of temporary agency work coped better with the sharp decline in demand and made less frequent use of government sponsored short time work schemes

carbon trading current schemes and future developments abstract this paper looks at the greenhouse gas ghg emissions trading schemes and examines the prospects of carbon trading the first part of the paper gives an overview of several mandatory ghg trading schemes around the world the second part focuses on the future trends in carbon trading it argues that the emergence of new schemes a gradual enlargement of the current ones and willingness to link existing and planned schemes seem to point towards geographical temporal and sectoral expansion of emissions trading however such expansion would need to overcome some considerable technical and non technical obstacles linking of the current and emerging trading schemes requires not only considerable technical fixes and harmonisation of different trading systems but also necessitates clear regulatory and policy signals continuing political support and a more stable economic environment currently the latter factors are missing the global economic turmoil and its repercussions for the carbon market a lack of the international deal on climate change defining the post kyoto commitments and unfavourable policy shifts in some countries cast serious doubts on the expansion of emissions trading and indicate that carbon trading enters an uncertain period