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

a bibliometric analysis of research on carbon tax from 1989 to 2014 abstract as one of the most cost effective means of emission reduction carbon tax has attracted considerable attention from economists and international organizations and has led to a large number of related research using the bibliometric method this paper characterizes the carbon tax literature from 1989 to 2014 based on the network database platform of web of science the results indicate that the usa occupies a leading position in the carbon tax field the vrije university amsterdam massachusetts institute of technology and stanford university were the most productive research institutes energy policy 143 has been the most productive journal followed by energy economics 44 and energy 38 in general the cooperation of authors institutes and nations are continuing to strengthen however the growth rate at the author level was significantly higher than the others in addition the current key research areas in the carbon tax field based on co keyword analysis are as follows climate change and relevant policy carbon emissions trading socio economic effects of carbon tax renewable energy endogenous technological change and carbon capture and storage the results of this paper will help researchers grasp the current research in the carbon tax field but also provide a supporting role for future work

group lending repayment incentives and social collateral abstract in this paper we investigate the impact on repayment rates of lending to groups which are made jointly liable for repayment this type of scheme especially in the guise of the grameen bank in bangladesh has received increasing attention we set up and analyze the repayment game which group lending gives rise to our analysis suggests that such schemes have both positive and negative effects on repayment rates the positive effect is that successful group members may have an incentive to repay the loans of group members whose projects have yielded insufficient return to make repayment worthwhile the negative effect arises when the whole group defaults even when some members would have repaid under individual lending we also show how group lending may harness social collateral which serves to mitigate its negative effect

bankable permits for the control of environmental pollution abstract intertemporal trading of emission permits banking is often identified as one of three promising market mechanisms for controlling pollution along with averaging and trading surprisingly the efficiency properties of permit banking systems have not been investigated using a simple optimal control model this paper investigates firms incentives for banking or borrowing emission permits and compares the emission and output streams firms would choose with the socially optimal solution we find that in many cases firms will suboptimally choose excessive damage and output levels in early periods and correspondingly too few in later periods if given the opportunity to freely move emissions between time periods we propose a simple alternative trading scheme we term modified banking that counters this problem and should be no more difficult for an environmental authority to implement than a straigth banking system

a general equilibrium analysis on the impacts of regional and sectoral emission allowance allocation at carbon trading market abstract it is critical to adapt to climate change and reduce the overall carbon emissions china announced its nationally determined contributions ndc at the paris climate conference in 2015 the carbon cap and trade scheme which plays a key role in carbon emissions abatement is an effective policy for china to achieve its ndc this study focuses on the allocation of regional and sectoral initial carbon emission allowances in shanghai an impact evaluation on the macro economy carbon trading markets and participating sectors for the year 2030 was conducted by applying a computable general equilibrium cge model the results show that the carbon cap and trade scheme would cause a 3 4 gdp loss and an 8 9 welfare loss in 2030 the carbon price would be 161 2 usd t and 147 2 usd t under the two representative scenarios the allocation of initial allowances would have a significant impact on both carbon market scale and sectoral trading behaviors the power generation sector and the petrol oil sector would undertake the greatest output loss while the metal smelting sector would become the main seller furthermore the initial allowances allocation under a certain abatement target would hardly affect sectoral production but remarkably affect trade behaviors at the carbon trading markets

weaving straw into gold managing organizational tensions between standardization and flexibility in microfinance this article explores how organizations balance the pressures to pursue efficiency through standardization with the need to remain responsive to local needs the study combines rich ethnography with detailed loan data to show that both standardization and flexibility through relational ties provide substantial organizational benefits but also carry significant costs thus no strategy is inherently superior and their coexistence generates the best results such coexistence however creates contradictions that must be managed here i use microfinance as a strategic setting and gain analytic leverage from the random assignment across branches of loan officers who exhibit significant heterogeneity in rule enforcement styles some enforce rules strictly whereas others frequently bend them to respond to client needs i find that loan officers with relational styles exercise discretion productively to enhance organizational performance yet their effectiveness is contingent on the presence of rule enforcing peers as evidenced by the significant underperformance of branches with a high concentration of officers of either type in contrast branches that contain discretionary diversity or a balance between enforcement styles perform best this is not due to diversity per se but because loan officers process decisions in local credit committees committees that contain discretionary diversity generate a productive tension that induces participants to justify decisions along broader organizational goals thus maintaining a productive balance between standardization and flexibility implications for organizational theory and practice are discussed

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

marginal abatement costs of co2 emissions in the thermal power sector a regional empirical analysis from china abstract quantifying marginal abatement costs of co2 emissions are beneficial to estimate mitigation potentials and costs of china s regional thermal power sector based on the panel data of 30 provinces from 2004 to 2013 this study estimates the technical efficiency reduction potential and marginal abatement costs of co2 emissions from the thermal power sector in china using a parametric quadratic directional output distance function a regression analysis is undertaken to identify the factors that drive marginal abatement costs the main results are 1 the mean value of directional output distance function in china s thermal power sector is 0 0449 indicating that inefficient production of chinese thermal power sector accounts for 4 49 co2 emissions could be mitigated by accumulated 1 22 billion ton in the past ten year which is approximate 4 49 of total co2 emissions 2 the national weighted average marginal abatement costs of co2 emissions are 316 51 yuan ton which is far higher than carbon price in the current ets emission trading system pilots in china implying that carbon price does not inflect supply and demand of carbon allowance 3 the regression results show that the marginal abatement costs positively connect with regional power scale namely a 1 increase in power scale will result in a 13 8 increase technology level coal supply and power structure are negatively correlated with marginal abatement costs namely a 1 increase in technology level coal supply and power structure will result respectively in a 30 41 4 38 and 77 7 decrease

interfirm relationships and informal credit in vietnam trading relations in vietnam s emerging private sector are shaped by two market frictions the difficulty of locating trading partners and the absence of legal enforcement of contracts examining relational contracting we find that a firm trusts its customer enough to offer credit when the customer finds it hard to locate an alternative supplier a longer duration of trading relationship is associated with larger credit as is prior information gathering customers identified through business networks receive more credit these network effects are enduring suggesting that networks are used to sanction defaulting customers

deposit insurance and wealth effects the value of being too big to fail this paper investigates the effect on bank equity values of the comptroller of the currency s announcement that some banks were too big to fail and that for those banks total deposit insurance would be provided using an event study methodology we find positive wealth effects accruing to tbtf banks with corresponding negative effects accruing to non included banks we demonstrate that the magnitude of these effects differed with bank solvency and size we also show that the policy to which the market reacted was that suggested by the wall street journal and not that actually intended by the comptroller the role of deposit insurance has become a topic of increasing debate advocates argue that by removing the incentive to run deposit insurance protects individual financial institutions from instability in the intermediation process thereby providing stability to the financial system as a whole 1 the recent rise in bank failures and the concomitant crises in the s l industry however demonstrate that this stability is not guaranteed moreover critics note that deposit insurance may introduce incentive problems and wealth effects into the financial system both of which can impede the effective functioning of any deposit insurance system these problems have prompted concern about the structure of the current deposit insurance system and have led to numerous proposals regarding its restructuring 2 this paper investigates one aspect of this debate by analyzing the effect on bank equity values of the policy decision to insure completely some banks but not others specifically in september 1984 the comptroller of the currency testified before congress that some banks were simply too big to fail tbtf and that for those banks total deposit insurance would be provided while not explicitly naming the banks the comptroller admitted that this policy would apply to the eleven largest banks using an event study methodology we analyze

hazards of the market the continuity and dissolution of interorganizational market relationships the authors propose a theory of the market as an intertemporal process that integrates multiple theoretical perspectives using event history methods thery analyze the dissolution of interorganizational market ties between advertising agencies and their clients as a function of three forces competition power and institutional forces the informal rules of exchange institutionalized in the emergence phase of the advertising services market include exclusivity sole source and loyalty infrequent switching they find that most exchange relationships between advertising agencies and their clients are indeed exclusive and most last for several years but competition power and institutional forces support or undermine these rules most institutional forces reduce the risk of dissolution of agency client ties powerful advertising agencies mobilize resources to increase tie stability but powerful clients mobilize resources to increase or decrease stability competition is the weakest market force but it has a consistent and substantial effect on tie dissolution competition always increases the risk of dissolution they conclude that the market is institutionalized as imperfectly repeated patterns of exchange because competition and changing norms about the duration of market ties destabilize market relationships

subjective performance measures in optimal incentive contracts objective measures of performance are seldom perfect in response incentive contracts often include important subjective components that mitigate incentive distortions caused by imperfect objective measures this paper explores the combined use of subjective and objective performance measures in respectively implicit and explicit incentive contracts naturally objective and subjective measures often are substitutes sometimes strikingly so we show that if objective measures are sufficiently close to perfect then no implicit contracts are feasible because the firm s fallback position after reneging on an implicit contract is too attractive we also show however that objective and subjective measures can reinforce each other if objective measures become more accurate then in some circumstances the optimal contract puts more weight on subjective measures because the improved objective measures increase the value of the ongoing relationship and so reduce the firm s incentive to renege we also analyze the use of subjective weights on objective performance measures and provide case study evidence consistent with our analyses

relational contracts and the theory of the firm relational contracts informal agreements sustained by the value of future relationships are prevalent within and between firms we develop repeated game models showing why and how relational contracts within firms vertical integration differ from those between nonintegration we show that integration affects the parties temptations to renege on a given relational contract and hence affects the best relational contract the parties can sustain in this sense the integration decision can be an instrument in the service of the parties relationship our approach also has implications for joint ventures alliances and networks and for the role of management within and between firms

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

inertia and change in the early years employment relations in young high technology firms this paper considers processes of organizational imprinting in a sample of 100 young high technology companies it examines the effects of a pair of initial conditions the founders models of the employment relation and their business strategies our analyses indicate that these two features were well aligned when the firms were founded however the alignment has deteriorated over time due to changes in the distribution of employment models in particular the star model and commitment model are less stable than the engineering model and the factory model despite their instability these two blueprints for the employment relation have strong effects in shaping the early evolution of these firms in particular firms that embark with these models have significantly higher rates of replacing the founder chief executive with a non founder as well as higher rates of completing an initial public stock offering some implications of these findings for future studies of imprinting and inertia in organizations are discussed

revenue ranking of discriminatory and uniform auctions with an unknown number of bidders an important managerial question is the choice of the pricing rule we study whether this choice depends on the uncertainty about the number of participating bidders by comparing expected revenues under discriminatory and uniform pricing within an auction model with affiliated values stochastic number of bidders and linear bidding strategies we show that if uncertainty about the number of bidders is substantial then the discriminatory pricing generates higher expected revenues than the uniform pricing in particular the first price auction might generate higher revenues than the second price auction therefore uncertainty about the number of bidders is an important factor to consider when choosing the pricing rule we also study whether eliminating this uncertainty i e revealing the number of bidders is in the seller s interests and discuss the existence of an increasing symmetric equilibrium

carbon emissions trading scheme exploration in china a multi agent based model abstract to develop a low carbon economy china launched seven pilot programs for carbon emissions trading cet in 2011 and plans to establish a nationwide cet mechanism in 2015 this paper formulated a multi agent based model to investigate the impacts of different cet designs in order to find the most appropriate one for china the proposed bottom up model includes all main economic agents in a general equilibrium framework the simulation results indicate that 1 cet would effectively reduce carbon emissions with a certain negative impact on the economy 2 as for allowance allocation the grandfathering rule is relatively moderate while the benchmarking rule is more aggressive 3 as for the carbon price when the price level in the secondary cet market is regulated to be around rmb 40 per metric ton a satisfactory emission mitigation effect can be obtained 4 the penalty rate is suggested to be carefully designed to balance the economy development and mitigation effect and 5 subsidy policy for energy technology improvement can effectively reduce carbon emissions without an additional negative impact on the economy the results also indicate that the proposed novel model is a promising tool for cet policy making and analyses

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

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

emissions variability in tradable permit markets with imperfect enforcement and banking abstract in this laboratory experiment on emissions trading subjects face exogenous random emissions shocks after making production and emission control plans in some sessions subjects can bank their unused permits for future use after a reconciliation trading period following the shock realization subjects report their emissions to the regulatory authority and are placed in different inspection groups depending on their compliance history we identify important interactions between banking compliance and enforcement banking smoothes out the price variability arising from imperfect emissions control price stability comes at a cost however since noncompliance and emissions are significantly greater when banking is allowed

cooperation in microcredit borrowing groups identity sanctions and reciprocity in the production of collective goods cooperation to produce collective goods is widespread in society and yet so is its failure theorists have identified competing mechanisms for facilitating group cooperation including group identity sanctions and reciprocity here i use empirical data to explore how these mechanisms influence cooperation in the natural laboratory of microcredit borrowing groups microcredit makes loans to high risk borrowers through borrowing groups in which individuals access to credit is dependent on the behavior of other members of the group thereby creating a social dilemma for members and an opportunity to observe cooperation in real world groups by analyzing both collective goods production loans and compliance repayment i find that the competing mechanisms have differential effects group identity sanctions and reciprocity are all associated with more borrowing in the group only reciprocity however limits loan delinquency and is associated with group longevity suggesting both that collective goods p

the use of loan sales and standby letters of credit by commercial banks abstract this paper examines the incentives banks have to engage in off balance sheet activities such as commercial loan sales and the issuance of standby letters of credit slcs i show that loan sales and loans backed by slcs have payoff characteristics similar to secured debt like secured debt off balance sheet activities permit banks to sell a portion of the cash flows associated with new investment oppurtunities this ability permits banks to invest in loans with positive net present values that they would pass up if restricted to deposit financing an examination of the risk premium on large certificates of deposit provides evidence consistent with the model

emissions trading with shares and coupons when control over discharges is uncertain abstract two important decisions in designing markets for tradable emissions permits are whether to allow banking of permits coupons and whether to allow trading in entitlements to future permits shares banking is predicted to reduce price instability when firms trade in a reconciliation market after the quantity of emissions has been determined tradable shares are a common feature in proposals for emissions trading in canada we conduct a laboratory experiment to investigate how bankable coupons and tradable shares affect efficiency and prices under uncertainty cognitive demands on the subjects are reduced by computerized advice on the optimal allocation of coupons across periods and the implied marginal values of coupons and shares banking share trading and uncertainty conditions are introduced in a complete factorial design with three observations per cell high efficiencies are observed across all treatments uncertainty in the control of emissions leads to substantial price instability when banking is not allowed banking virtually eliminates the instability but reduces the efficiency of the market institution share trading reduces trading volumes increases price stability and improves efficiency

why does china s carbon intensity decline and india s carbon intensity rise a decomposition analysis on the sectors abstract as more attention paid to global warming the international community argues that developing countries should take more carbon reduction responsibility china and india the top two developing countries confronted heavy pressure to handle the dilemma of environmental protection or economic increase in this context we switched focus to carbon intensity defined as carbon emission per unit of economic output to investigate carbon performance and economic performance simultaneously in this study we fully considered the impact of sector heterogeneity on carbon intensity that is we decomposed the carbon intensity of the 56 industries which subsequently reclassified into 18 industries in china and india using the data from wiod world input output database the results indicate that 1 india s carbon intensity presented a constant increasing trend while china appeared a stable decreasing trend and the former exceeded the latter since 2009 2 all industries of china exerted efforts to decrease carbon intensity conversely india only had a few industries decreasing carbon intensity 3 energy intensity significantly decreased china s carbon intensity while increased india s carbon intensity surprisingly 4 in general structure effect made negative contribution to carbon intensity improvement in china while positive in india specifically economic structure had a positive impact on china and india though the impact was minor for the former significant for the latter energy structure slightly promoted india s carbon intensity to decrease on the contrary it was the largest inhibitor to china this research will not only promote low carbon economy development of china and india but also provide scientific and practical references to other developing countries

on the design of a credit agreement with peer monitoring this paper analyses the optimal design of collective credit agreements with joint responsibility first we demonstrate that these agreements can potentially induce peer monitoring reduce the incidence of strategic default and enhance the lender s ability to elicit debt repayments the resulting benefits in terms of extended credit should however be weighted against the higher monitoring effort that such agreements impose upon participant borrowers second we show that the relative benefits from peer monitoring are maximized when risks are positively correlated across borrowers and also when the size of the group is neither too small due to a joint responsibility cost sharing and commitment effects nor too large due to a free riding effect third we compare among different monitoring structures

the valuation of fdic deposit insurance using option pricing estimates when congress set the premium rate for fdic deposit insurance in the banking act of 1935 which authorized a permanent federal insurance system neither experience nor theory could offer much guidance regarding an appropriate fee structure although rates have since been periodically revised the fdic has yet to attempt to set the insurance rate at a ifair level that is a level equal to administrative costs plus the ex ante value of the insurance such a premium is the rate that would be charged by competitive private insurers however7 the garn st germain act of 1982 directed the fdic to consider the feasibility of a risk based premium structure in response the fdic has suggested a trial system in which each insured bank will be placed in one of three risk classes based on credit and interest rate risk relative to capital and a premium rate will be assigned to each group those rates will be determined in part by the loss experience of the entire banking system fdic 1983 another approach to the determination of the appropriate insurance premium has been offered by merton 1977 who suggested using the analogous relationship between deposit guarantees and put options to value fdic insurance in this paper we follow merton s suggestion and calculate bank specific estimates of the proper premium for deposit insurance for the banks in our sample we find that fdic rates greatly exceed estimates of the fair value of the insurance derived from the blackscholes 1972 option pricing model

repayment frequency and default in microfinance evidence from india in stark contrast to bank debt contracts most micro finance contracts require that repayments start nearly immediately after loan disbursement and occur weekly thereafter even though economic theory suggests that a more flexible repayment schedule would benefit clients and potentially improve their repayment capacity micro finance practitioners argue that the fiscal discipline imposed by frequent repayment is critical to preventing loan default in this paper we use data from a field experiment which randomized client assignment to a weekly or monthly repayment schedule and find no significant effect of type of repayment schedule on client delinquency or default our findings suggest that among micro finance clients who are willing to borrow at either weekly or monthly repayment schedules a more flexible schedule can significantly lower transaction costs without increasing client default jel 012 016 022

when can carbon abatement policies increase welfare the fundamental role of distorted factor markets abstract this paper employs analytical and numerical models to assess the welfare effects of a revenue neutral carbon tax and nonauctioned carbon emissions permits taking into account preexisting tax distortions in factor markets the presence of preexisting taxes significantly raises the general equilibrium costs of both policies this cost increase is much greater under emissions permits since this policy does not generate revenues to reduce distortionary taxes under our central estimates emissions permits cannot increase welfare unless environmental damages exceed about 18 per ton of carbon in contrast an appropriately scaled carbon tax is welfare improving so long as environmental damages are positive

a tripartite equilibrium for carbon emission allowance allocation in the power supply industry abstract in the past decades there has been a worldwide multilateral efforts to reduce carbon emissions in particular the cap and trade mechanism has been regarded as an effective way to control emissions this is a market based approach focused on the efficient allocation of initial emissions allowances based on the grandfather allocation method this paper develops an alternative method derived from boltzmann distribution to calculate the allowances further with fully considering the relationship between the regional authority power plants and grid company a three level multi objective model for carbon emission allowance allocations in the power supply industry is presented to achieve tripartite equilibrium the impacts on electricity output carbon emissions and carbon intensity of the allocation method allocation cap and emission limits are assessed the results showed that the greatest impact was seen in the emission limits rather than the allocation cap or allocation method it also indicated that to effectively achieve reduction targets it is necessary to allocate greater allowances to lower carbon intensity power plants these results demonstrated the practicality and efficiency of the proposed model in seeking optimal allocation policies

optimal emission taxes for full internalization of environmental externalities abstract the present study proposes a set of optimal emissions fees that could be used to reduce the damages caused by industrial pollution the approach we use allows for the setting of pollution taxes at their economically appropriate level in particular tax rates are computed for china india and 19 sub saharan african countries all other world regions are grouped according to income level such as low income lower middle income upper middle income and high income economies our results show that constructed optimal pollution taxes range as high as 2 9 per 1 dollar of output for heavy manufacturing in the high income countries and as low as 0 01 in the service sectors of the low income countries these results show that a full internalization of the damages in each sector calls for raising the tax rates in some sectors and lowering them in others

leaving a legacy position imprints and successor turnover in young firms this article considers how local firm histories influence individual turnover rates in organizations we argue that position imprints the legacies left by the first incumbents of particular functional positions constrain subsequent position holders we show that the functional experience of the person who creates a position influences the turnover rate of successors who later occupy that position when the first position holder has an atypical background all successors experience high turnover rates individuals who are both typical with respect to the normative environment and similar to the position imprint have the lowest turnover rates surprisingly we find lower turnover rates among individuals who match the position imprint even if they violate normative expectations thus contrary to institutional theory predictions we find that local firm histories dominate in revealing how social structures emerge within firms and affect individual outcomes our research revisits core topics of bureaucratiza

heterogeneous creditors and the market value of bank ldc loan portfolios abstract a standard proposition used in many empirical studies is that the value of an ldc loan does not depend on the identity of the lender i test this proposition using bank securities prices and prices for ldc loans trading in the secondary market i find significant cross sectional differences in the sensitivity of bank stocks to changes in the price of ldc loans differences in sensitivity appear to be related to changes in bank exposure to ldcs i also find evidence consistent with the hypothesis that cds are implicitly insured

market discipline and bank subordinated debt note a lengthy literature in banking has addressed the question of whether the market prices of liabilities respond to individual bank risk taking activity that is whether any market disciplines exists however despite the obvious importance of this question the current record has led to no consensus on the issue results have been contradictory in this journal alone hannan and hanweck 1988 conclude that the market does extract at least some price for risk taking while avery belton and goldberg 1988 find no such evidence in this study we argue that this line of inquiry has a serious f law in that it fails to use theoretical models of bank instrument valuation to determine the appropriate testing of market discipline therefore the empirical models have lacked the necessary exactness to isolate the appropriate null hypotheses to redress this shortcoming and advance the methodology of this area of the literature we use a pricing model which comes to the banking area from the options pricing literature to look at the yield spread on bank liabilities using this model it is clear that the value of large uninsured bank liabilities cannot be described as a linear monotonic function of risk moreover current bank regulation affects the assumed role risk measures play in the pricing of such debt instruments both of these complications mean that simple regressions are not likely to adequately address the relationship between the value of debt and underlying risk in the final section we empirically investigate the presence of market discipline using contingent claims pricing we find that accounting measures of bank risk still have little predictive value in explaining yield spreads and therefore offer little evidence of meaningful market discipline

peer monitoring and credit markets a major problem for institutional lenders is ensuring that borrowers exercise prudence in the use of the funds so that the likelihood of repayment is enhanced one partial solution is peer monitoring having neighbors who are in a good position to monitor the borrower be required to pay a penalty if the borrower goes bankrupt peer monitoring is largely responsible for the successful financial performance of the grameen bank of bangladesh and of similar group lending programs elsewhere but peer monitoring has a cost it transfers risk from the bank which is in a better position to bear risk to the cosigner in a simple model of peer monitoring in a competitive credit market this article demonstrates that the transfer of risk leads to an improvement in borrowers welfare

risk based capital adequacy standards for a sample of 43 major banks abstract the paper extends the option theoretic framework for the estimation of risk adjusted deposit premiums to the calculation of risk based capital adequacy standards based on market data for equity and the book value of debt the model solves for the market value of the capital infusion required to lower the implied deposit premium to acceptable levels of risk this capital infusion can then be translated into market value capital adequacy standards and book value capital asset ratios the determination of which is within the current statutory discretion of regulatory agencies the model is empirically applied to a sample of 43 major u s banks

uncertainty risk and trust russian and american credit card markets compared the strategies that russian and american banks use to evaluate the creditworthiness of prospective credit card holders are compared drawing on knight s theory of risk and uncertainty the authors argue that uncertainty inherent in any credit transaction can only be reduced to measurable risk if there are institutions that create stability over time categorize events properly and allow for verification and accumulation of information in the united states the gradual evolution of institutions underpinning rational calculation permits the transformation of uncertainty into risk in russia however such institutions are absent and a great degree of uncertainty prevails in consumer credit using data from original fieldwork in moscow this study demonstrates that when actors face uncertainty and are unable to calculate risk they rely on trust russian banks use and extend their existing social ties or in some cases build new ties they also exploit cardholders own networks unrelated to the bank to increase their accountability through anchoring these strategies however keep the market embedded limited in size and uninsurable the authors conclude that calculation of probabilities and economic rationality in its formal sense is not an innate human ability but a social capacity that exists courtesy of institutional arrangements

a reexamination of the over or under pricing of deposit insurance this study shows how fair deposit insurance premia can be calculated using data on bank stock prices interest rate movements and income and balance sheet accounts fair insurance premia are estimat ed under the alternative assumptions that the fdic provides either a limited term variable rate or unlimited term insurance cont ract to banks the paper s results suggest that for nearly all of the large commerical banks in the sample the actual insurance premium c harged by the fdic falls between the bounds of fair limited term and unlimited term insurance premia copyright 1987 by ohio state university press

does the debt market assess large banks risk time series evidence from money center cds abstract uninsured bank liabilities should offer a promised yield that compensates depositors for their expected default losses however the conjectural guarantees available to large u s banking firms makes it questionable whether large depositors should or do feel themselves exposed to credit risk prior papers have evaluated the determinants of bank risk premia using cross sectional data with relatively inconclusive results this paper investigates the same issue in a methodologically independent fashion using time series data on specific banks daily offering rates during the period may 1982 through july 1988 we find that cd rates paid by large money center banks include significant default risk premia

assessing the operational performance and maturity of the carbon trading pilot program the case study of beijing s carbon market on november 28 2013 beijing s carbon emissions trading opened on beijing s environmental exchange as one of the pilot cities beijing has been pursuing low carbon development strategies under state intervention and market regulation this paper chooses the carbon market a medium through which beijing manages emission reduction as the object of study firstly we compare the basic construction circumstances of beijing with other pilot cities then we qualitatively analyze the development of beijing s carbon market from the perspective of transaction status execution of the contract and improvement of the policies and regulations finally we use the topsis model to develop a comprehensive evaluation system of beijing s carbon market it is used to quantitatively evaluate the operational performance and maturity of the mechanism the results show that beijing s carbon market has good comprehensive capabilities ranking second place among seven pilot markets but the maturity of beijing s carbon market is relatively poor for insufficient market liquidity its operations are well managed but economic efficiency still need to be improved the depth of transaction and the effect of reduction in emissions make it meaningful therefore in order to improve the construction of beijing s carbon market measures should be taken as follows 1 strengthening the quota management and increasing carbon trading activity to avoid poor market liquidity 2 accelerating emission reduction actions and encouraging technology innovation such as carrying out several policies and measures supporting new energy and energy saving emission reduction and increasing investment and subsidy in research and development for the technology innovation of firms etc 3 improving regulatory mechanism and enhancing the disclosure of carbon trading such as drawing lessons from the eu emission trading scheme ets about measuring reporting and verification system mrv

the benefits of lending relationships evidence from small business data this paper empirically examines how ties between a firm and its creditors affect the availability and cost of funds to the firm we analyze data collected in a survey of small firms by the small business administration the primary benefit of building close ties with an institutional creditor is that the availability of financing increases we find smaller effects on the price of credit attempts to widen the circle of relationships by borrowing from multiple lenders increases the price and reduces the availability of credit in sum relationships are valuable and appear to operate more through quantities rather than prices

building sustainable hybrid organizations the case of commercial microfinance organizations we explore how new types of hybrid organizations organizations that combine institutional logics in unprecedented ways can develop and maintain their hybrid nature in the absence of a ready to w

experimental comparisons of auctions under single and multi unit demand i introduction the study of multiple unit auctions is important because of their widespread use and the high value of goods sold examples include auctions of u s treasury debt cut flowers wine foreign exchange and other financial and monetary instruments moreover since auctions are often proposed by economists as a method of sale for other goods as in mcmillan 1994 the use of auctions can be expected to increase in the future many different auction rules are used to sell these diverse commodities and auction rule changes are often suggested usually with the intention of increasing revenue or improving the allocations and thus there is a considerable and increasing number of known auction formats evaluating new or comparing different auction mechanisms using field tests can be very costly and risky however experimental methods can and have been used by economists to study the behavioral characteristics of different auction procedures kagel 1995 provides a recent comprehensive survey most experimental studies consider the behavior of auctions when there is a single unit to be sold a few studies such as cox et al 1984 1985 and mccabe et al 1990 1991 study multiple unit auctions in environments in which each bidder demands at most one object from a set of identical objects being sold the studies of smith 1967 belovicz 1979 miller and plott 1985 and burns 1985 consider multi unit demand environments these are environments in which bidders have demand for multiple identical units and are permitted to purchase multiple units of the commodity sold the extension to multi unit demand is important since the presence of multi unit demand is a characteristic of many auctions in the field including all of the examples above in this study we consider the behavior of two types of multi unit auction under both single unit and multi unit demand we construct a laboratory environment which we use to study an english clock ec which is a special type of english auction and a sealed bid auction with lowest accepted bid pricing sb in the sb each bidder pays a per unit price equal to the lowest accepted bid the ec was chosen because it is known to provide highly efficient allocations in auctions of single unit goods and therefore is likely to be suggested for many field applications the sb was chosen because of its widespread use which makes its outcomes a useful basis of comparison for the outcomes of the english clock auction 1 however we do not attempt to represent a particular field situation here instead since our interest is in understanding the basic properties of the auctions we chose an experimental design that enables us to make simple comparisons across treatments and with previous and possibly future studies the design enables us to perform simple testing of game theoretic models in some of the treatments in our view the difference between single and multi unit demand is critical as we discuss in section ii many of the results of auction theory that are valid in single unit demand environments no longer apply in multi unit demand environments suggesting that the observed behavior of auctions might also differ between the two environments therefore we isolate the effects of multi unit demand by conducting single unit demand experiments under identical market demand and supply conditions as the multi unit demand experiments these and other aspects of the experimental design are described in detail in section iii the results and a discussion are given in sections iv and v respectively ii institutions theory and previous studies the english clock auction this variant of the english auction was modeled by milgrom and weber 1982 and studied by mccabe et al 1990 1991 in our version the auction begins with all bidders publicly and simultaneously announcing their initial quantity demanded at price zero if there is excess demand the price is increased by a small increment and the bidders then announce new quantities demanded

a sustainable biogas model in china the case study of beijing deqingyuan biogas project according to the paris agreement china has the ambition to develop non fossil energy which will account for 20 of the total energy consumption in 2030 china has abundant biomass potential implying the bioenergy should be an important option of non fossil energy in this analysis we present an representative biogas project the deqingyuan project dqy in beijing and conduct a cost benefit analysis for the whole value chain dqy is the first large scale biogas project in china that utilizes 100 chicken manure as a feedstock and integrates biogas production with ecological agriculture using advanced technologies dqy uses 80 000 t of chicken manure and 100 000 t of sewage each year to produce biogas which generates 14 million kwh of power annually and obtains an additional revenue of rmb 8 million yuan each year through the clean development mechanism cdm operating as an example of a sustainable bioenergy model dqy accomplishes the full use of a recycled resource while showing consideration for animal welfare during the entire production which is a fundamental component of the new rural energy strategy the circular economy model of dqy plays a prominent role in reducing greenhouse gas emissions mitigating pollution and increasing employment among other benefits this paper aims to conduct a comprehensive analysis of the typical demonstration model dqy in utilization of agricultural waste in china and further proposes a general development model of chinese biogas in the future

planning carbon emission trading for beijing s electric power systems under dual uncertainties in this study a full infinite interval stochastic mixed integer programming fimp method is developed for planning carbon emission trading cet under dual uncertainties fimp has advantages in uncertainty reflection and policy analysis particularly when the input parameters are provided as crisp and functional intervals as well as probabilistic distributions the developed fimp is applied to a real case study for managing carbon dioxide co2 emissions with trading scheme of beijing s electric power system eps electric power industry is one of the major sources of co2 emission in china it is essential to accumulate relevant experience to provide a reliable basis for establishing a regional or national cet market so as to prepare for docking with the international market this is the first attempt to introduce cet scheme into beijing s eps to mitigate co2 emissions the solutions for energy supply electricity generation carbon quota allocation and capacity expansion are obtained they cannot only be used for formulating co2 reduction policies and assessing the associated economic implications in purchasing emission permits or bearing economic penalties but also facilitate analyzing various policies when pre regulated electricity generation plans and pre defined co2 emission schemes are violated

a matter of relational style loan officer consistency and exchange continuity in microfinance social scientists have long considered what mechanisms underlie repeated exchange three mechanisms have garnered the majority of this attention formal contracts relational contracts and relationally embedded social ties although each mechanism has its virtues all three exhibit a common limitation an inability to fully explain the continuation and stability of intertemporal exchange between individuals and organizations in the face of change drawing on extensive quantitative data on approximately 450 000 microfinance loans made by a microfinance institution in mexico from 2004 to 2008 that include random assignment of loan officers this research proposes the concept of relational styles to help explain how repeated exchange is possible in the face of personnel change we define relational styles as systematically reoccurring patterns of interaction employed by social actors within and across exchange relationships in this paper between microfinance clients and loan officers we show that relati