rafmacalaba/datause-encoder-data huggingface dataset:
including several in Europe and the United Kingdom, have the highest retail prices<sup>3</sup> and the conundrum also exists within the states in the United States.<sup>4</sup> The key research questions, therefore, that we address in this paper are as follows:

1. Is the design of the existing wholesale electricity market robust enough and compatible with carbon reduction policies, i.e., is the status quo good enough to deliver a decarbonized power system;<sup>5</sup> or

2. Are there adjustments needed in some of the existing features of a market or to augment the market with some mechanism (e.g., a heavier reliance on bilateral contracts, mandatory mechanisms like must-run contracts, administered prices for part of the generation and vested contracts or some other form of cost-of-service regulation to maintain resource adequacy);<sup>6</sup> or 3. Is there, in fact, a need to rethink market design quite differently, e.g., an organized long term market (OLTM)?<sup>7</sup> In order to address these questions, we present a summary of the critical literature that supports each of the three propositions to form our own views on the need for changes to the market design in the short, medium, and long term. We follow this up with a discussion on the available modeling methodologies and an analytical framework that may be used to empirically test these alternative market design constructs. A quantitative analysis will eventually be needed to arrive at a definitive answer which is likely to differ for each country's context. However, this is a significant ask and is not covered in this paper.

> 3 Please refer to: https://www.globalpetrolprices.com/electricity_prices/

> 4 Please refer to: https://www.forbes.com/sites/brianmurray1/2019/06/17/the-paradox-of-declining-renewable- <u>costs-and-rising-electricity-prices/?sh=79547bd561d5</u>

> 5 Frank Wolak noted that “ _The basic features of an efficient short-term wholesale market design do not need to change to accommodate a significantly larger share of zero marginal cost intermittent renewable energy from wind and solar resources. A large share of controllable zero marginal cost generation does not create any additional market_ _<u>design challenge relative to a market with a large share of controllable positive marginal cost generation. In both</u> instances, generation unit owners must recover their fixed costs from sales of energy, ancillary services, and longterm resource adequacy products._ ” (Wolak, 2021)

> 6 Some of the ISOs in the US are already doing this and there are several ad-hoc mechanisms elsewhere too to manage resource adequacy that are outside markets, e.g., maintaining semi-retired coal plants in a mothballed state for a side payment, “reserve generators” that kick in based on physical or market-based signals, crossborder trade agreements that sit outside the market, special provisions for ancillary services, etc.

7(P. L. Joskow, 2019) and also the RFF workshop material in December 2020 available online: <u>ttps://www.rff.org/events/workshops/market-design-for-the-clean-energy-transition-advancing-long-termapproaches/.</u> 4
Table 7

# Minimum Wage Endogeneity

<!-- Start of picture text --> Dependent variable: annual Dependent variable: annual<br>change in the log of change in minimum wage (1<br>the minimum wage if raised, 0 otherwise)<br>Explanatory variables<br>Tobit estimates Logit estimates<br>(A) (B) (C) (D)<br>Change in the log of terms of 0.3193** 0.3177** 2.7294** 2.7325**<br>trade (lagged two years) (2.042) (2.036) (2.162) (2.116)<br>Change in the log of output at 1.0943 ** 1.0774 ** 7.3127 ** 7.1094 **<br>constant prices (lagged one year) (2.480) (2.420) (2.211) (2.116)<br>Change in the log of consumer 1.1033 ** 1.0924 ** 9.0364 ** 9.0920 **<br>prices (lagged one year) (3.312) (3.228) (3.520) (3.440)<br>Country-specific No Yes No Yes<br>dummy variables<br>Independent term -0.2508 ** -1.8457 **<br>(-5.064) (-6.587)<br>Number of observations 187 187 187 187<br>Pseudo R 2 0.185 0.207 0.116 0.134<br>Chi-square test 24.49 27.47 24.91 28.76<br><!-- End of picture text --> Note: All variables are defined at the country level. Values in parentheses are "t" statistics. Significant coefficients at the 5 and 1 percent level are indicated by one and two asterisks respectively.

38
Arzaghi M. and J.V. Henderson, 2008. Networking Off Madison Avenue, _Review of Economic Studies_ 75: 1011‐1038.

Asabere, P. and K. Owusu‐Banahene. (1983). Population Density Function for Ghanaian (African) Cities. Journal of Urban Economics, 14: 370‐379 Atack, J., & Margo, R. A. 1998. Location, Location, Location! The Price Gradient for Vacant Urban Land: New York, 1835 to 1900. Journal of Real Estate Finance & Economics, 16(2), 151‐172.

Avendaño A. and H. Enríquez. 2012. Polycentric structure and the co‐agglomeration of economic activities in Bogota: A nonparametric perspective. Universidad Sergio Arboleda, Working Paper number 010394 Banerjee, A., E. Duflo and N. Qian, 2012. On the Road: Transportation Infrastructure and Economic Development, NBER Working Paper 17897.

Barlet M., A. Briant and L. Crusson. 2013. Location patterns of service industries in France: A distance‐ based approach. Regional Science and Urban Economics 43: 338–351 Barke, M., 1986. Transport and Trade. Oliver & Boyd.

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26
_Segment overview:_ There appears to be no restriction on telemarketing to banks’ customer bases. This is likely to be the major focus of the newly acquired insurance subsidiaries. Past sales data, which saw Bancassurance account for a peak of 60 percent of Life insurance sales in 2010, are not a good indicator of future performance, following the banning of insurers’ staff and agents from bank branches. Accounting changes that will encourage insurers to focus on regular premium contracts also pose a challenge to the previous Bancassurance business model.

_Consumer protection:_ Extensive requirements have been introduced in recent years to protect bank customers purchasing insurance products:

- Branch Bancassurance agreements must have a term of at least one year

- and be signed at the head office level. Respective responsibilities must be clearly defined.

- A bank branch may not have agreements with more then three insurers.

- Staff selling insurance products must hold Insurance Agent Professional

- Qualification Certificates. Insurance staff are not allowed to operate out of bank branches.

- Investment-linked contracts (including variable annuities) may not be sold

- at deposit, and counters and the sales staff involved must have at least 12 months experience and 40 hours of special training.

- Insurers must separate the accounting for their Bancassurance business.

- The skill level of the bank staff involved should match product complexity.

- Unit-linked sales must be accompanied by a ―know your customer

- exercise,‖ and the resultant analysis must be signed by the customer and the sales person.

- Contracts with a term of more than one year sold by banks must be

- accompanied by a ―bring to attention letter‖ laying out relevant product risks and a signed document in the consumer’s own handwriting confirming that they were appropriately informed.

- Insurers are required to follow up within the cooling off period to ensure

- that the contract is acceptable.

- Commission caps apply in practice.

A complaints function exists within the insurance association, and consumers can file complaints with a supervisor.

# **Malaysia**

_Regulation:_ Bancassurance is actively supported in Malaysia because it is seen to lead to a more efficient financial system. Banks may own insurers but insurers may not own banks. Bank staff who sell insurance products are required to satisfy the same minimum qualification and continuous professional development requirements as insurance agents, and to comply with the same code of ethics.

38
globalization involves significant worker movements across sectors and skills. Specifically, we find that increased international competition induces skill acquisition, decreases skill downgrading, and induces workers to move industry.

The remainder of the paper is organized as follows. In Section 2 we outline the empirical methodology. In Section 3 we describe the data and present some descriptive statistics about workers’ transitions. Section 4 discusses the empirical estimates, and Section 5 concludes.

# **2 Empirical Strategy**

## **2.1 Effect of increased international competition on the returns to skill**

Our analysis consists of two parts. First, we investigate whether increased import competition leads to higher returns to skill within an industry and, therefore, incentives for skill acquisition. Second, whether it also induces skill-upgrading by the industry’s existing workforce.

In order to argue for a causal effect of international competition, we identify two exogenous changes in international competition at the industry level. First, we use a quasi-natural experiment consisting of the strong appreciation of the Portuguese currency in 1989-1992 and pre-existing differences in trade exposure across industries in a differences-in-differences estimation. Second, we make use of source-weighted real exchange rates at the industry level where the weights are given by the import shares of different countries in the base period (1990). Appreciation of the home currency leads to increased international competition for national firms for two reasons: it reduces the prices that foreign competitors can offer in the home country market; and it encourages entry by increasing the number of potential foreign firms that can sell in the home country. As argued by Revenga (1992), Bertrand (2004) and Guadalupe (2007), exchange rate movements are largely unpredicted and exogenous to the behavior of firms and workers within each industry.

The first identification strategy has been employed by Guadalupe (2007) using UK data at the worker-industry level focusing on the effect of international competition on returns to skills. The data used by Guadalupe (2007) are worker-industry level, therefore abstracting from potential effects of firm heterogeneity (e.g. in compensation and retention policies) on workers’ earnings and compositional effects that may arise from workers switching across firms. In this paper we exploit the worker-firm-industry level of detail of the Portuguese data to account for these effects by controlling for firm characteristics and including worker-firm fixed effects.

4
|**3**|Incentives Linked to Generation/Production tax-credits|
|---|---|
|**4**|Income Tax Holidays/Exemptions|
|**5**|Trade-related Incentives|
|| Customs DutyExemptions|
|| Absence of Local Content Requirements|
|**6**|Other Tax Exemptions (VAT, Excise etc)|

An examination of the presence or absence of these policies, regulations and incentives in South Asia reveals that India, as expected, scores high for the presence of both cross-cutting and sector-specific policies, regulations and incentives. Only in wind does Pakistan score above India, due to Pakistan‘s income tax holidays. India is the only country that has deployed tradable instruments to facilitate entities‘ obligation to purchase RE. Pakistan scores higher than Sri Lanka for the presence of policies, regulations and incentives in all sectors. **A higher CIRI score, however, does not mean that a country is attracting higher levels of investment or even that it offers a better climate for RE investors. It merely indicates that a country has put in place more policies, regulations and incentives to** **_attract_ investors.** Whether this contributes to creating a more attractive investment climate depends on a number of other factors, including effective implementation. As the findings from the private sector consultations reveal, many investors, particularly foreign firms, are still hesitant to invest in Pakistan owing to the prevailing political and security climate, despite the offer of very attractive terms and conditions. Hence, the binary nature of CIRI analysis reveals just one side of the story. As discussed earlier it needs to be complemented with surveys of private sector to get a complete picture.

The tables below indicate the existence or absence of policies, regulations and incentives for gridconnected RE investment in India, Pakistan and Sri Lanka. Scores are on a scale of 10 (which indicates the presence of key RE policies, regulations and incentives). The presence of an indicator gives a country a score of 1 and its absence a score of zero. Equal weights (carrying a value of 1) have been assumed for each indicator set. One can, in principle, change the weights of various categories to arrive at a revised scoring scheme. However, care must be taken to ensure that the weighting schemes are consistent with private sector perceptions of the policies, regulations and incentives. As noted earlier, Nepal, Bangladesh and Maldives have not been included in the scoring due to their emphasis on off-grid deployment and relatively underdeveloped state of grid-connected RE, as well as the absence of required policies, regulations and incentives.

16
happiness studies that use relative income as explanatory variable. As fixed effects tend to be variables representing communities or areas, they may be at similar levels of aggregation than the reference group used to measure relative income. This increases the likelihood of correlation between relative income and fixed effects. In a review of studies on the relation between income inequality and happiness, Verme (2011) has shown how in empirical models multicollinearity between fixed effects and core explanatory variables may explain the empirical heterogeneity of results. Addressing this problem is not simple and often boils down to a trade-off between losing on the explanatory power of the model and depicting more accurately the sign and significance of the inequality-happiness relation.

_Omitted variables_ . It is widely recognized that happiness models can explain only a limited part of the variation in happiness witness the fact that the R squared and pseudo-R squared obtained from these models are typically low. It is possible therefore that the real explanation behind variations in happiness lie behind some of the omitted variables. Di Tella and MacCulloch (2005a) examined a series of potential omitted variables which could explain why increasing income has not led to more happiness using Eurobarometer and US GSS data. Variables used included life expectancy, pollution, unemployment, inflation, hours worked, divorce rate, crime and income inequality. Their results show that most of these variables are correlated with life satisfaction as expected. However, their inclusion as right-hand side variables does not explain why rising income has not produced rising well-being. That is because these additional variables have mostly _also_ improved over time without increasing happiness. In their own words: “introducing omitted variables worsens the income-without-happiness paradox”. While these tests are not conclusive, the fact that the explanatory power of the happiness models is very low indicates that the results on relative income should be taken with caution. Significance of the relative income variable simply indicates that this is a variable that contributes with income and among many other unobserved variables to wellbeing.

_Non-linearity, concavity and convexity of the utility function_ . It is also very little understood whether the relation between income and satisfaction is non-linear and what function would best describe this relation. One of the explanations of the Easterlin paradox is that, as a country become richer, income becomes less relevant for happiness. This would imply decreasing marginal returns from income (as predicted by orthodox economic theory) and a concave utility function. Many papers test this hypothesis using different sets of data (cross-section, longitudinal or panel data) but a few use variables transformations of income and relative income that would allow looking at the shape of the utility function.

17
**Table E.2** Utilization Data **(Cll** patients) **at** REMEF

||**Aug.**89|**Sapt.**89|
|---|---|---|
|**New**Cases|**138**|16S|
|Follow-up<br>**Visits**|147|162|
|Hospitalizations|19|3|
|**Deliveries**|3|4|
|**Transfers**|**0**|**1**|
|Growth<br>Monitoring<br>Visits|35|26|
|<br>**Dwes**of**Vaccines**<br>Administered|128|141|

REMEF's staff is dedicated and quality of care seems very high. The facility was extremely clean, bright, well-supplied and well-equipped. Technical assistance in organization of management systems and in management training would be well-placed, to assure continued evaluation and success of this health insurance experiment. The PASS may also wish to conduct a more detailed analysis of the costs associated with the plan, especially the plan's policy of paying for the treatment costs of all cases referred to other providers.

## 2. Masisi Health Zone Insurance Plan

The rural h, alth zone of Masisi is located in the Kivu Region, covering a population of approximate.y 214,240. Only recently started, the health zone benefits from the assistance of a Belgian Cooperation Zonal Chief Medical Officer who has had previous experience starting-up the zone of Kirotche, in the same region. Masisi has a 142-bed reference hospital and 19 health centers or health posts. To increase econcmic access to health services the zone began offering a health insurance plan in 1988. The Medicin Chef de Zone (MCZ) delivered a presentation about the insurance plan at the SANRU national conference in 1989. Since the research team for this study did not have time to visit Masisi, this section is based on the MCZ's presentation at the SANRU conference, as well as conversations with staff from the Belgian Cooperation and SANRU.

# _24._ Terms of the Insurance Plan

The plan covers all hospital services including deliveries and chronic care. The premium charged in 1989 was 150 Z (S0.42) per person per year, calculated on an actuarial basis assuming a hospitalization rate of 4.9%, an average cost per hospitalization of 2,000 Z (about SI I in 1988), and a _5G%_ margia for inflation. Premiums are invested in the purchase of drugs for the central pharmacy. The hospital bills the plan for services rendered to members. Members are identified by a membership card which is compared to a membership register kept at the hospital.

Enrollment of members takes place at the health center and community level, with the assistance of village health workers and health center nurses. Family enrollment was not required in the past, but is now seen as an important ingredient to financial sustainability, as discussed below.

## 2, SUtilization and Success of the Plan

Enrollment figures are unknown, but the experience of the first year showed that enrollment was low and the plan was in deficit after only six months of operation. The MCZ attributes SO
The effect of FDI on structural transformation and school enrollment also hinges on the characteristics of such FDI. Only export-oriented FDI has had a significant impact of moving labor from agriculture into industry and services. While both export-oriented and domestic market-seeking FDI promote high school and college enrollment, domestic market-seeking FDI has had a much larger effect as such FDI has higher demand for skilled labor. Similarly, high-skill FDI shock has a larger effect on structural transformation and school enrollment than low-skill FDI shock.

Finally, the impact of FDI on school enrollment also varies by age group and gender. The effect on high school enrollment is the largest for teenagers between the ages of 16 and 18, and the effect on college enrollment is larger for 19- to 25-year-olds. Boys seem to benefit slightly more than girls in terms of high school and college enrollment.

The findings of this paper have important policy implications. Many low- and middle-income countries aspire to boost aggregate productivity by creating more and better jobs in the formal sector, in industry and services sectors, and by improving their human capital. Attracting manufacturing FDI, especially exportoriented FDI could catalyze the structural transformation process, while domestic market-seeking FDI and skill-intensive FDI are more beneficial for human capital accumulation. The type of FDI a country attracts is largely determined by its own endowments, development stage and policies, which in turn affect the development trajectory of the country. Policy makers in developing countries need to align their FDI policy and promotion strategies with broader development objectives to maximize the benefits brought by FDI.

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