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Sample records for price relationships effects

  1. The price-perceived quality relationship

    DEFF Research Database (Denmark)

    Völckner, Franziska; Hofmann, Julian

    2009-01-01

    The authors conducted a meta-analysis of study results on the price-perceived quality relationship published from 1989 to 2006. The findings show that the price effect on perceived quality has decreased. Furthermore, the price–quality relationship is stronger in studies that use a within-subjects...

  2. The composite barrel of retail prices and its relationship to crude oil prices

    International Nuclear Information System (INIS)

    Balabanoff, S.

    1993-01-01

    This paper challenges assumptions about the relationship between refinery gate prices, retail prices paid by consumers and crude oil prices. The analysis presented here considers their relationship within the context of the Organization of Petroleum Exporting Countries' (OPEC's) composite barrel statistics, which includes taxes and other government policy effects on prices. Speed of adjustment and retail price response to taxes are analysed with respect to crude import prices. OPEC's composite barrel is explained and evaluated. Test results are summarized. (UK)

  3. Gasoline Prices and Their Relationship to Drunk-Driving Crashes

    OpenAIRE

    Guangqing Chi; Xuan Zhou; Timothy McClure; Paul Gilbert; Arthur Cosby; Li Zhang; Angela Robertson; David Levinson

    2010-01-01

    This study investigates the relationship between changing gasoline prices and drunk-driving crashes. Specifically, we examine the effects of gasoline prices on drunk-driving crashes in Mississippi by age, gender, and race from 2004Ð2008, a period experiencing great fluctuation in gasoline prices. An exploratory visualization by graphs shows that higher gasoline prices are generally associated with fewer drunk-driving crashes. Higher gasoline prices depress drunk- driving crashes among younger...

  4. An electricity price model with consideration to load and gas price effects.

    Science.gov (United States)

    Huang, Min-xiang; Tao, Xiao-hu; Han, Zhen-xiang

    2003-01-01

    Some characteristics of the electricity load and prices are studied, and the relationship between electricity prices and gas (fuel) prices is analyzed in this paper. Because electricity prices are strongly dependent on load and gas prices, the authors constructed a model for electricity prices based on the effects of these two factors; and used the Geometric Mean Reversion Brownian Motion (GMRBM) model to describe the electricity load process, and a Geometric Brownian Motion(GBM) model to describe the gas prices; deduced the price stochastic process model based on the above load model and gas price model. This paper also presents methods for parameters estimation, and proposes some methods to solve the model.

  5. Effect of oil price on Nigeria’s food price volatility

    Directory of Open Access Journals (Sweden)

    Ijeoma C. Nwoko

    2016-12-01

    Full Text Available This study examines the effect of oil price on the volatility of food price in Nigeria. It specifically considers the long-run, short-run, and causal relationship between these variables. Annual data on oil price and individual prices of maize, rice, sorghum, soya beans, and wheat spanning from 2000 to 2013 were used. The price volatility for each crop was obtained using Generalized Autoregressive Conditional Heteroskedascity (GARCH (1, 1 model. Our measure of oil price is the Refiner acquisition cost of imported crude oil. The Augmented Dickey–Fuller and Phillip–Perron unit root tests show that all the variables are integrated of order one, I (1. Therefore, we use the Johansen co-integration test to examine the long-run relationship. Our results show that there is no long-run relationship between oil price and any of the individual food price volatility. Thus, we implement a VAR instead of a VECM to investigate the short-run relationship. The VAR model result revealed a positive and significant short-run relationship between oil price and each of the selected food price volatility with exception of that of rice and wheat price volatility. These results were further confirmed by the impulse response functions. The Granger causality test result indicates a unidirectional causality from oil price to maize, soya bean, and sorghum price volatilities but does not show such relationship for rice and wheat price volatilities. We draw some policy implications of these findings.

  6. Another look on the relationships between oil prices and energy prices

    International Nuclear Information System (INIS)

    Lahiani, Amine; Miloudi, Anthony; Benkraiem, Ramzi; Shahbaz, Muhammad

    2017-01-01

    This paper employs the Quantile Autoregressive Distributed Lags (QARDL) model developed recently by Cho et al. (2015) to investigate the pass-through of oil prices to a set of energy prices. This approach allows analyzing simultaneously short-term connections and long-run cointegrating relationships across a range of quantiles. It also provides insights on the short-run predictive power of oil prices in predicting energy prices while accounting for the cointegration between oil prices and each of the considered energy prices in low, medium and high quantiles. Two key findings emerge from this paper. First, all considered energy prices are shown to be cointegrated with oil price across quantiles meaning that a stationaryequilibriumrelationship exists between single energy price and oil price. Second, we find evidence that oil price is a significant predictor of individual petroleum products prices and natural gas in the short run. This paper has important policy implications for forecasters, energy policy-makers and portfolio managers. - Highlights: • The pass-through of oil prices to a set of energy prices is investigated for US economy. • All considered energy prices are shown to be cointegrated with oil price across quantiles. • Oil price is a significant predictor of individual petroleum products prices in the short run. • Oil price also predicts natural gas prices in the short run.

  7. Pricing effects on food choices.

    Science.gov (United States)

    French, Simone A

    2003-03-01

    Individual dietary choices are primarily influenced by such considerations as taste, cost, convenience and nutritional value of foods. The current obesity epidemic has been linked to excessive consumption of added sugars and fat, as well as to sedentary lifestyles. Fat and sugar provide dietary energy at very low cost. Food pricing and marketing practices are therefore an essential component of the eating environment. Recent studies have applied economic theories to changing dietary behavior. Price reduction strategies promote the choice of targeted foods by lowering their cost relative to alternative food choices. Two community-based intervention studies used price reductions to promote the increased purchase of targeted foods. The first study examined lower prices and point-of-purchase promotion on sales of lower fat vending machine snacks in 12 work sites and 12 secondary schools. Price reductions of 10%, 25% and 50% on lower fat snacks resulted in an increase in sales of 9%, 39% and 93%, respectively, compared with usual price conditions. The second study examined the impact of a 50% price reduction on fresh fruit and baby carrots in two secondary school cafeterias. Compared with usual price conditions, price reductions resulted in a four-fold increase in fresh fruit sales and a two-fold increase in baby carrot sales. Both studies demonstrate that price reductions are an effective strategy to increase the purchase of more healthful foods in community-based settings such as work sites and schools. Results were generalizable across various food types and populations. Reducing prices on healthful foods is a public health strategy that should be implemented through policy initiatives and industry collaborations.

  8. Price Relationships in the Petroleum Market: An Analysis of Crude Oil and Refined Product Prices

    International Nuclear Information System (INIS)

    Asche, Frank; Gjoelberg, Ole; Voelker, Teresa

    2001-08-01

    In this paper the relationships between crude oil and refined product prices are investigated in a multivariate framework. This allows us to test several (partly competing) assumptions of earlier studies. In particular, we find that the crude oil price is weakly exogenous and that the spread is constant in some but not all relationships. Moreover, the multivariate analysis shows that the link between crude oil prices and several refined product prices implies market integration for these refined products. This is an example of supply driven market integration and producers will change the output mix in response to price changes. (author)

  9. Price relationships in the petroleum market. An analysis of crude oil and refined product prices

    International Nuclear Information System (INIS)

    Asche, Frank; Gjoelberg, Ole; Volker, Teresa

    2003-01-01

    In this paper the relationships between crude oil and refined product prices are investigated in a multivariate framework. This allows us to test several (partly competing) assumptions of earlier studies. In particular, we find that the crude oil price is weakly exogenous and that the spread is constant in some but not all relationships. Moreover, the multivariate analysis shows that the link between crude oil prices and several refined product prices implies market integration for these refined products. This is an example of supply driven market integration and producers will change the output mix in response to price changes

  10. Price relationships in the petroleum market: an analysis of crude oil and refined product prices

    International Nuclear Information System (INIS)

    Asche, F.; Gjoelberg, O.; Voelker, T.

    2003-01-01

    In this paper the relationships between crude oil and refined product prices are investigated in a multivariate framework. This allows us to test several (partly competing) assumptions of earlier studies. In particular, we find that the crude oil price is weakly exogenous and that the spread is constant in some but not all relationships. Moreover, the multivariate analysis shows that the link between crude oil prices and several refined product prices implies market integration for these refined products. This is an example of supply driven market integration and producers will change the output mix in response to price changes. (author)

  11. Exchange Rate – Relative Price Nonlinear Cointegration Relationship in Malaysia

    OpenAIRE

    Venus Khim-Sen Liew; Chee-Keong Choong; Evan Lau; Kian-Ping Lim

    2005-01-01

    The finding of exchange rate–relative price nonlinear cointegration relationship in Malaysia, among others, suggests that nonlinear Purchasing Power Parity (PPP) equilibrium may be regarded as reference point in judging the short run misalignment of the Ringgit currency and thereby deducing effective policy actions. Moreover, economists who wish to extend the simple PPP exchange rate model into the more complicated monetary exchange models may do so comfortably, at least in the text of Malays...

  12. A survey on the effects of aggressive marketing, price leadership and product focus on marketing channels in relationship-oriented marketing

    Directory of Open Access Journals (Sweden)

    Ali Ghanbarzad

    2014-04-01

    Full Text Available In this paper, we have performed a survey to study the effects of aggressive marketing, price leadership and product focus on marketing channels in relationship-oriented marketing. The study adopts a model developed earlier by Rokkan and Haugland (2002 [Rokkan, A. I., & Haugland, S. A. (2002. Developing relational exchange: effectiveness and power. European Journal of Marketing, 36(1/2, 211-230.]. The study has been executed among all managers of a firm named PET Technologies. There were 30 managers working for the proposed case study of this paper and we have designed a questionnaire in Likert scale and distributed it among all managers of this firm. Cronbach alpha is calculated as 0.931, which is well above the minimum acceptable level of 0.70. The results have confirmed that all thee marketing strategies influence on relationship-oriented marketing, positively.

  13. Testing causal relationships between wholesale electricity prices and primary energy prices

    International Nuclear Information System (INIS)

    Nakajima, Tadahiro; Hamori, Shigeyuki

    2013-01-01

    We apply the lag-augmented vector autoregression technique to test the Granger-causal relationships among wholesale electricity prices, natural gas prices, and crude oil prices. In addition, by adopting a cross-correlation function approach, we test not only the causality in mean but also the causality in variance between the variables. The results of tests using both techniques show that gas prices Granger-cause electricity prices in mean. We find no Granger-causality in variance among these variables. -- Highlights: •We test the Granger-causality among wholesale electricity and primary energy prices. •We test not only the causality in mean but also the causality in variance. •The results show that gas prices Granger-cause electricity prices in mean. •We find no Granger-causality in variance among these variables

  14. The price-perceived quality relationship: A meta-analytic review and assessment of its determinants

    DEFF Research Database (Denmark)

    Völckner, Franziska; Hofmann, Julian

    2007-01-01

    The authors conducted a meta-analysis of study results on the price-perceived quality relationship published from 1989 to 2006. The findings show that the price effect on perceived quality has decreased. Furthermore, the price–quality relationship is stronger in studies that use a within-subjects...

  15. CAUSAL RELATIONSHIPS BETWEEN GRAIN, MEAT PRICES AND EXCHANGE RATES

    Directory of Open Access Journals (Sweden)

    Naveen Musunuru

    2017-10-01

    Full Text Available Understanding agricultural commodity price relationships are important as they help producers improve their awareness regarding production costs and ultimately aid in income determination. The present paper empirically examines the dynamic interrelationships among grain, meat prices and the U.S. dollar exchange rate. Johansen cointegration tests reveal no cointegrating relationships among the study variables. Majority of the commodities studied in the paper exhibited unidirectional causality except for corn and lean hogs. The vector autoregression (VAR model results indicate that the grain and meat prices are influenced by their own past prices. The role of exchange rates is found to be limited in linking the agricultural commodities.

  16. Modeling the Effect of Oil Price on Global Fertilizer Prices

    NARCIS (Netherlands)

    P-Y. Chen (Ping-Yu); C-L. Chang (Chia-Lin); C-C. Chen (Chi-Chung); M.J. McAleer (Michael)

    2010-01-01

    textabstractThe main purpose of this paper is to evaluate the effect of crude oil price on global fertilizer prices in both the mean and volatility. The endogenous structural breakpoint unit root test, the autoregressive distributed lag (ARDL) model, and alternative volatility models, including the

  17. Dynamics relationship between stock prices and economic variables in Malaysia

    Science.gov (United States)

    Chun, Ooi Po; Arsad, Zainudin; Huen, Tan Bee

    2014-07-01

    Knowledge on linkages between stock prices and macroeconomic variables are essential in the formulation of effective monetary policy. This study investigates the relationship between stock prices in Malaysia (KLCI) with four selected macroeconomic variables, namely industrial production index (IPI), quasi money supply (MS2), real exchange rate (REXR) and 3-month Treasury bill (TRB). The variables used in this study are monthly data from 1996 to 2012. Vector error correction (VEC) model and Kalman filter (KF) technique are utilized to assess the impact of macroeconomic variables on the stock prices. The results from the cointegration test revealed that the stock prices and macroeconomic variables are cointegrated. Different from the constant estimate from the static VEC model, the KF estimates noticeably exhibit time-varying attributes over the entire sample period. The varying estimates of the impact coefficients should be better reflect the changing economic environment. Surprisingly, IPI is negatively related to the KLCI with the estimates of the impact slowly increase and become positive in recent years. TRB is found to be generally negatively related to the KLCI with the impact fluctuating along the constant estimate of the VEC model. The KF estimates for REXR and MS2 show a mixture of positive and negative impact on the KLCI. The coefficients of error correction term (ECT) are negative in majority of the sample period, signifying the stock prices responded to stabilize any short term deviation in the economic system. The findings from the KF model indicate that any implication that is based on the usual static model may lead to authorities implementing less appropriate policies.

  18. THE RELATIONSHIP BETWEEN SCARCITY OF NATURAL RESOURCES AND THEIR REAL PRICES

    Directory of Open Access Journals (Sweden)

    Roland Toth

    2011-01-01

    Full Text Available There has been a long running concern about resource depletion. Some argue this concern is misplaced, while others consider it to be an urgent problem requiring immediate action. Economists suggest that long term prices, adjusted for inflation (real prices, provide a useful and effective indicator of resource scarcity. This study tests this hypothesis in consideration of the accepted theory that traditional price deflators, such as the US consumer price index, overestimate inflation-, and accordingly-, are likely to underestimate long term commodity prices. To investigate the usefulness of real prices as an indicator of scarcity, a case study of two metals considered to be expensive (platinum and rhodium and two considered to be relatively inexpensive (copper and lead was used. Real long term price indices were constructed and econometric analysis used to determine the direction and significance of long-term price trends and whether real prices were correlated with other scarcity indicators such as the Reserves-toproduction ratio. The results show, when an appropriate adjustment is made to the deflator, long-run trends in real metal prices are all upward, and there is a significant relationship between the real prices and scarcity indicators, such as the reserves-to-production ratios, for platinum and rhodium, but not for copper and lead. These findings suggest that real prices of platinum and rhodium are more affected by their scarcity, while copper and lead prices are likely to be more dependent on other factors such as high substitutability with other virgin and recycled materials.

  19. Relationship between Gold and Oil Prices and Stock Market Returns

    Directory of Open Access Journals (Sweden)

    Muhammad Mansoor Baig

    2013-10-01

    Full Text Available This study objective to examine the relationship between gold prices, oil prices and KSE100 return. This study important for the investor whose want to invest in real assets and financial assets. This study helps investor to achieve the portfolio diversification. This study uses the monthly data of gold prices, KSE100, and oil prices for the period of 2000 to 2010 (monthly. This study applied Descriptive statistics, Augmented Dickey Fuller test Phillip Perron test, Johansen and Jelseluis Co-integration test, Variance Decomposition test to find relationship. This study concludes that Gold prices growth, Oil prices growth and KSE100 return have no significant relationship in the long run. This study provides information to the investors who want to get the benefit of diversification by investing in Gold, Oil and stock market. In the current era Gold prices and oil prices are fluctuating day by day and investors think that stock returns may or may not affected by these fluctuations. This study is unique because it focuses on current issues and takes the current data in this research to help the investment institutions or portfolio managers.

  20. The relationship between renewable energy assets and crude oil prices : an empirical analysis with emphasis on the effects of the financial crisis

    OpenAIRE

    Grøm, Halvdan Alexander

    2013-01-01

    In this thesis I have analysed the relationship between renewable energy stocks and the price of crude oil. As a part of my analysis I have provided a basic economic overview of the research period and how the value of renewable energy stocks and crude oil is determined. In order to analyse this relationship I have utilized a Vector Autoregressive Model (VAR) in addition to a Vector Error Correction Model (VECM). My findings indicate that the aforementioned assets follow a simi...

  1. Modeling the relationship between the oil price and global food prices

    International Nuclear Information System (INIS)

    Chen, Sheng-Tung; Kuo, Hsiao-I; Chen, Chi-Chung

    2010-01-01

    The growth of corn-based ethanol production and soybean-based bio-diesel production following the increase in the oil prices have significantly affect the world agricultural grain productions and its prices. The main purpose of this paper is to investigate the relationships between the crude oil price and the global grain prices for corn, soybean, and wheat. The empirical results show that the change in each grain price is significantly influenced by the changes in the crude oil price and other grain prices during the period extending from the 3rd week in 2005 to the 20th week in 2008 which implies that grain commodities are competing with the derived demand for bio-fuels by using soybean or corn to produce ethanol or bio-diesel during the period of higher crude oil prices in these recent years. The subsidy policies in relation to the bio-fuel industries in some nations engaging in bio-fuel production should be considered to avoid the consequences resulting from high oil prices. (author)

  2. Expectations, learning, and the changing relationship between oil prices and the macroeconomy

    Energy Technology Data Exchange (ETDEWEB)

    Milani, Fabio [Department of Economics, 3151 Social Science Plaza, University of California, Irvine, CA 92697-5100 (United States)

    2009-11-15

    This paper estimates a structural general equilibrium model to investigate the changing relationship between the oil price and macroeconomic variables. The oil price, through the role of oil in production and consumption, affects aggregate demand and supply in the model. The assumption of rational expectations is relaxed in favor of learning. Oil prices, therefore, affect the economy through an additional channel, i.e. through their effect on the formation of agents' beliefs. The estimated learning dynamics indicates that economic agents' perceptions about the effects of oil prices on the economy have changed over time: oil prices were perceived to have large effects on output and inflation in the 1970s, but only milder effects after the mid-1980s. Since expectations play a large role in the determination of output and inflation, the effects of oil price increases on expectations can magnify the response of macroeconomic variables to oil price shocks. In the estimated model, in fact, the implied responses of output and inflation to oil price shocks were much more pronounced in the 1970s than in 2008. Therefore, through the time variation in the impact of oil prices on beliefs, the paper can successfully explain the observed weakening of the effects of oil price shocks on real activity and inflation. (author)

  3. Expectations, learning, and the changing relationship between oil prices and the macroeconomy

    International Nuclear Information System (INIS)

    Milani, Fabio

    2009-01-01

    This paper estimates a structural general equilibrium model to investigate the changing relationship between the oil price and macroeconomic variables. The oil price, through the role of oil in production and consumption, affects aggregate demand and supply in the model. The assumption of rational expectations is relaxed in favor of learning. Oil prices, therefore, affect the economy through an additional channel, i.e. through their effect on the formation of agents' beliefs. The estimated learning dynamics indicates that economic agents' perceptions about the effects of oil prices on the economy have changed over time: oil prices were perceived to have large effects on output and inflation in the 1970s, but only milder effects after the mid-1980s. Since expectations play a large role in the determination of output and inflation, the effects of oil price increases on expectations can magnify the response of macroeconomic variables to oil price shocks. In the estimated model, in fact, the implied responses of output and inflation to oil price shocks were much more pronounced in the 1970s than in 2008. Therefore, through the time variation in the impact of oil prices on beliefs, the paper can successfully explain the observed weakening of the effects of oil price shocks on real activity and inflation. (author)

  4. Theft in Price-Volatile Markets: On the Relationship between Copper Price and Copper Theft

    OpenAIRE

    Sidebottom, A.; Belur, J.; Bowers, K.; Tompson, L.; Johnson, S. D.

    2011-01-01

    Recently, against a backdrop of general reductions in acquisitive crime, increases have been observed in the frequency of metal theft offences. This is generally attributed to increases in metal prices in response to global demand exceeding supply. The main objective of this article was to examine the relationship between the price of copper and levels of copper theft, focusing specifically on copper cable theft from the British railway network. Results indicated a significant positive correl...

  5. The empirical relationship between energy futures prices and exchange rates

    International Nuclear Information System (INIS)

    Sadorsky, P.

    2000-01-01

    This paper investigates the interaction between energy futures prices and exchange rates. Results are presented to show that futures prices for crude oil, heating oil and unleaded gasoline are co-integrated with a trade-weighted index of exchange rates. This is important because it means that there exists a long-run equilibrium relationship between these four variables. Granger causality results for both the long- and short-run are presented. Evidence is also presented that suggests exchange rates transmit exogenous shocks to energy futures prices. 22 refs

  6. Left-digit price effects on smoking cessation motivation.

    Science.gov (United States)

    MacKillop, James; Amlung, Michael T; Blackburn, Ashley; Murphy, James G; Carrigan, Maureen; Carpenter, Matthew J; Chaloupka, Frank

    2014-11-01

    Cigarette price increases have been associated with increases in smoking cessation, but relatively little is known about this relationship at the level of individual smokers. To address this and to inform tax policy, the goal of this study was to apply a behavioural economic approach to the relationship between the price of cigarettes and the probability of attempting smoking cessation. Adult daily smokers (n=1074; ie, 5+ cigarettes/day; 18+ years old; ≥8th grade education) completed in-person descriptive survey assessments. Assessments included estimated probability of making a smoking cessation attempt across a range of cigarette prices, demographics and nicotine dependence. As price increases, probability of making a smoking cessation attempt exhibited an orderly increase, with the form of the relationship being similar to an inverted demand curve. The largest effect size increases in motivation to make a quit attempt were in the form of 'left-digit effects,' (ie, maximal sensitivity across pack price whole-number changes; eg, US$5.80-6/pack). Significant differences were also observed among the left-digit effects, suggesting the most substantial effects were for price changes that were most market relevant. Severity of nicotine dependence was significantly associated with price sensitivity, but not for all indices. These data reveal the clear and robust relationship between the price of cigarettes and an individual's motivation to attempt smoking cessation. Furthermore, the current study indicates the importance of left-digit price transitions in this relationship, suggesting policymakers should consider relative price positions in the context of tax changes. Published by the BMJ Publishing Group Limited. For permission to use (where not already granted under a licence) please go to http://group.bmj.com/group/rights-licensing/permissions.

  7. Commodity derivatives pricing with inventory effects

    DEFF Research Database (Denmark)

    Bach, Christian; Dziubinski, Matt P.

    We introduce tractable models for commodity derivatives pricing with inventory and volatility eects, and illustrate with applications to the oil market. We contribute to the existing literature in several respects. First, whereas the previous literature uses futures data for investigating...... the relationship between inventory and volatility, we use the information available in options traded on futures. Second, performance assessment in the previous literature has primarily evolved around explaining moments of data or forecasting prices of futures. Instead, we asses the performance of our model...... by considering both the ability of explaining prices in-sample and out-of-sample - assessing both the pricing-performance and the hedging-performance of the models. Third, we model the futures surface rather than the spot price process, and from the no-arbitrage relationship between spot and futures prices we...

  8. Asymmetric Price Effects of Competition

    NARCIS (Netherlands)

    Lach, S.; Moraga Gonzalez, J.L.

    2017-01-01

    When price dispersion is prevalent, a relevant question is what happens to the whole distribution of equilibrium prices when the number of firms changes. Using data from the gasoline market in the Netherlands, we find, first, that markets with N competitors have price distributions that first-order

  9. Asymmetric price effects of competition

    NARCIS (Netherlands)

    Lach, S.; Moraga González, José

    2017-01-01

    When price dispersion is prevalent, a relevant question is what happens to the whole distribution of equilibrium prices when the number of firms changes. Using data from the gasoline market in the Netherlands, we find, first, that markets with N competitors have price distributions that first‐order

  10. Analyzing the effects of past prices on reference price formation

    OpenAIRE

    van Oest, R.D.; Paap, R.

    2004-01-01

    textabstractWe propose a new reference price framework for brand choice. In this framework, we employ a Markov-switching process with an absorbing state to model unobserved price recall of households. Reference prices result from the prices households are able to remember. Our model can be used to learn how many prices observed in the past are used for reference price formation. Furthermore, we learn to what extent households have sufficient price knowledge to form an internal reference price...

  11. Lead lag relationships between futures and spot prices

    Energy Technology Data Exchange (ETDEWEB)

    Asche, Frank; Guttormsen, Atle G

    2002-01-01

    In this paper we examine the relationship between spot and futures prices. This is traditionally done by testing for cointegration with the Engle and Granger methodology, before one specifies an error correction models in order to draw inference about causality. This approach, although appealing for its simplicity, is problematic on at least two accounts. First, the approach is only valid given an exogeneity assumption, which is what one wants to test, and second, given that there are several contracts with different times to expiration, bivariate specifications cannot capture all the relevant information. We show that both problems can be avoided if the tests are carried out in a multivariate framework like the Johansen test. An empirical application is carried out on futures prices for gas oil. Findings indicate that futures prices leads spot prices, and that futures contracts with longer time to expiration leads contracts with shorter time to expiration. (author)

  12. Reassessing the empirical relationship between the oil price and the dollar

    International Nuclear Information System (INIS)

    Coudert, Virginie; Mignon, Valérie

    2016-01-01

    This paper aims at reassessing the empirical relationship between the real price of oil and the U.S. dollar real effective exchange rate over the 1974–2015 period. We find that changes in both variables are now linked by a negative relationship, going from the dollar exchange rate to the real oil price. However, the same relationship is found positive when ending the sample in the mid-2000s, in line with the previous literature. To understand and investigate this evolution, we rely on a nonlinear, smooth transition regression model in which the oil price-dollar nexus depends on the dynamics followed by the U.S. currency. Our results show that the relationship is negative most of the times but turns positive when the dollar hits very high values, as in the early eighties. - Highlights: •We reassess the relationship between the real oil price and the dollar over the 1974–2015 period. •Changes in the two variables are linked by a negative relationship over the whole period. •The link between both variables is positive over the subsample ending in the mid-2000s. •We estimate a nonlinear model in which the oil price-dollar nexus depends on the evolution the dollar. •The relationship is negative most of the times, except when the dollar hits very high values.

  13. Relationship between efficiency and predictability in stock price change

    Science.gov (United States)

    Eom, Cheoljun; Oh, Gabjin; Jung, Woo-Sung

    2008-09-01

    In this study, we evaluate the relationship between efficiency and predictability in the stock market. The efficiency, which is the issue addressed by the weak-form efficient market hypothesis, is calculated using the Hurst exponent and the approximate entropy (ApEn). The predictability corresponds to the hit-rate; this is the rate of consistency between the direction of the actual price change and that of the predicted price change, as calculated via the nearest neighbor prediction method. We determine that the Hurst exponent and the ApEn value are negatively correlated. However, predictability is positively correlated with the Hurst exponent.

  14. Causal Relationship Between Relative Price Variability and Inflation in Turkey:

    Directory of Open Access Journals (Sweden)

    Nebiye Yamak

    2016-09-01

    Full Text Available This study investigates the causal relationship between inflation and relative price variability in Turkey for the period of January 2003-January 2014, by using panel data. In the study, a Granger (1969 non-causality test in heterogeneous panel data models developed by Dumitrescu and Hurlin (2012 is utilized to determine the causal relations between inflation rate relative price variability. The panel data consists of 4123 observations: 133 time observations and 31 cross-section observations. The results of panel causality test indicate that there is a bidirectional causality between inflation rate and relative price variability by not supporting the imperfection information model of Lucas and the menu cost model of Ball and Mankiw.

  15. What is behind the increase in oil prices? Analyzing oil consumption and supply relationship with oil price

    International Nuclear Information System (INIS)

    Gallo, Andres; Mason, Paul; Shapiro, Steve; Fabritius, Michael

    2010-01-01

    The continuing increases in oil prices have renewed the argument over the real culprits behind these movements. The growth in demand for oil in international markets, especially from the United States and China, is often identified as the main source of consumption pressure on prices, and thus the upward trend in oil prices. This paper uses unit root tests with two endogenous breaks to analyze the characteristics of oil prices, production, and consumption for several countries. By taking into account structural breaks, we find that many countries' oil consumption and oil prices are stationary, while other countries' are not. We also perform causality tests to determine the direction of any possible relationship between oil price and oil consumption and production. Our statistical analysis reveals that production variables cause oil prices, while oil prices tend to cause consumption. As a result, we claim that the blame for the recent fluctuations in oil prices is more appropriately associated with supply factors, not consumption influences. (author)

  16. The Effects of Changing Input Costs on Food Prices

    OpenAIRE

    R. McFall Lamm; Paul C. Westcott

    1981-01-01

    The relationships between changes in food sector input costs and retail food prices are examined. Results indicate that increases in factor prices pass quickly to consumers, within two quarters for most foods. In addition, rising farm-level prices and substantial increases in nonfarm resource prices appear to explain why food prices rose more rapidly than nonfood prices in the 1970s. The analysis is based on a twenty-equation econometric model of the food-price determination process, specifie...

  17. Analyzing the effects of past prices on reference price formation

    NARCIS (Netherlands)

    R.D. van Oest (Rutger); R. Paap (Richard)

    2004-01-01

    textabstractWe propose a new reference price framework for brand choice. In this framework, we employ a Markov-switching process with an absorbing state to model unobserved price recall of households. Reference prices result from the prices households are able to remember. Our model can be used to

  18. Macro economy, stock market and oil prices. Do meaningful relationships exist among their cyclical fluctuations?

    International Nuclear Information System (INIS)

    Filis, George

    2010-01-01

    This paper examines the relationship among consumer price index, industrial production, stock market and oil prices in Greece. Initially we use a unified statistical framework (cointegration and VECM) to study the data in levels. We then employ a multivariate VAR model to examine the relationship among the cyclical components of our series. The period of the study is from 1996:1 to 2008:6. Findings suggest that oil prices and the stock market exercise a positive effect on the Greek CPI, in the long run. Cyclical components analysis suggests that oil prices exercise significant negative influence to the stock market. In addition, oil prices are negatively influencing CPI, at a significant level. However, we find no effect of oil prices on industrial production and CPI. Finally, no relationship can be documented between the industrial production and stock market for the Greek market. The findings of this study are of particular interest and importance to policy makers, financial managers, financial analysts and investors dealing with the Greek economy and the Greek stock market. (author)

  19. The Effect of Price: Early Observations.

    Science.gov (United States)

    Hunter, Karen

    Scientific journal publishers have very little commercial experience with electronic full text distribution and it is difficult to segregate the effect of pricing on user acceptance and behavior. This paper examines some of the known experiences and ongoing and proposed experiments to get a sense of the interaction of pricing and user acceptance…

  20. Analysis of relationships between hourly electricity price and load in deregulated real-time power markets

    International Nuclear Information System (INIS)

    Lo, K.L.; Wu, Y.K.

    2004-01-01

    Risk management in the electric power industry involves measuring the risk for all instruments owned by a company. The value of many of these instruments depends directly on electricity prices. In theory, the wholesale price in a real-time market should reflect the short-run marginal cost. However, most markets are not perfectly competitive, therefore by understanding the degree of correlation between price and physical drivers, electric traders and consumers can manage their risk more effectively and efficiently. Market data from two power-pool architectures, both pre-2003 ISO-NE and Australia's NEM, have been studied. The dynamic character of electricity price is mean-reverting, and consists of intra-day and weekly variations, seasonal fluctuations, and instant jumps. Parts of them are affected by load demands. Hourly signals on both price and load are divided into deterministic and random components with a discrete Fourier transform algorithm. Next, the real-time price-load relationship for periodic and random signals is examined. In addition, time-varying volatility models are constructed on random price and random load with the GARCH model, and the correlation between them analysed. Volatility plays a critical role on evaluating option pricing and risk management. (author)

  1. The relationship between advertising, price, and nursing home quality.

    Science.gov (United States)

    Kash, Bita A; Miller, Thomas R

    2009-01-01

    Theoretically, nursing homes should engage in advertising for the following two reasons: (a) to improve awareness of the services offered in a particular market and (b) to signal high-quality services. In this study, we build upon results from prior studies of nursing home advertising activity, market competition, and quality. The purpose of this study was to examine the association between advertising expenses, price, and quality. We focused on answering the question: Do nursing homes use advertising and price to signal superior quality? The Texas Nursing Facilities Medicaid Cost Report, the Texas Quality Reporting System, and the Area Resource File were merged for the year 2003. We used three alternative measures of quality to improve the robustness of this exploratory analysis. Quality measures were examined using Bonferroni correlation coefficient analysis. Associations between advertising expenses and quality were evaluated using three regression models predicting quality. We also examined the association of the price of a private bed per day with quality. Advertising expenses were not associated with better nursing home quality as measured by three quality scales. The average price customers pay for one private bed per day was associated with better quality only in one of the three quality regression models. The price of nursing home care might be a better indicator of quality and necessary to increase as quality of care is improved in the nursing homes sector. Because more advertising expenditures are not necessarily associated with better quality, consumers could be mislead by advertisements and choose poor quality nursing homes. Nursing home administrators should focus on customer relationship management tools instead of expensive advertising. Relationship management tools are proven marketing techniques for the health services sector, usually less expensive than advertising, and help with staff retention and quality outcomes.

  2. Relationships among energy price shocks, stock market, and the macroeconomy: evidence from China.

    Science.gov (United States)

    Cong, Rong-Gang; Shen, Shaochuan

    2013-01-01

    This paper investigates the interactive relationships among China energy price shocks, stock market, and the macroeconomy using multivariate vector autoregression. The results indicate that there is a long cointegration among them. A 1% rise in the energy price index can depress the stock market index by 0.54% and the industrial value-adding growth by 0.037%. Energy price shocks also cause inflation and have a 5-month lag effect on stock market, which may result in the stock market "underreacting." The energy price can explain stock market fluctuations better than the interest rate over a longer time period. Consequently, investors should pay greater attention to the long-term effect of energy on the stock market.

  3. The devil is in the details: An investigation of the relationships between conflict, food price and climate across Africa.

    Science.gov (United States)

    Raleigh, Clionadh; Choi, Hyun Jin; Kniveton, Dominic

    2015-05-01

    This study investigates the relationship between violent conflict, food price, and climate variability at the subnational level. Using disaggregated data on 113 African markets from January 1997 to April 2010, interrelationships between the three variables are analyzed in simultaneous equation models. We find that: (i) a positive feedback exists between food price and violence - higher food prices increase conflict rates within markets and conflict increases food prices; (ii) anomalously dry conditions are associated with increased frequencies of conflict; and (iii) decreased rainfall exerts an indirect effect on conflict through its impact on food prices. These findings suggest that the negative effects of climate variability on conflict can be mitigated by interventions and effective price management in local markets. Creating environments in which food prices are stable and reliable, and markets are accessible and safe, can lower the impacts of both climate change and conflict feedbacks.

  4. Analysing the relationship between wholesale and end-user prices in the Nordic electricity market

    International Nuclear Information System (INIS)

    Lewis, P.E.; Johnsen, T.A.; Naervae, T.; Wasti, S.

    2004-09-01

    Efficient pricing in a deregulated market means prices which closely reflect the cost of obtaining electricity in the wholesale market. This research report analyses and explains the relationship between wholesale prices (especially Spot Prices) and end-user prices for residential, industrial and commercial users in the Finnish, Swedish and Norwegian electricity markets. The report primarily analyses the closeness of wholesale and end-user price patterns (the primary tracking period is 1998-2003, focusing especially closely on Finland and the period 2002-2003). The report reveals that Finnish, Norwegian and Swedish end- user prices can all be said to follow spot prices (and other wholesale prices) to a greater or lesser extent. The relationship is however complex and, especially regarding spot prices, clearly closest in Norway, followed by Sweden and then Finland. Whilst, overall, Finnish prices seem quite competitive and Nordic end-user prices currently seem to be extremely similar, there is some cause for concern in Finland. In particular, very few customers have spot based tariffs; wholesale prices (including spot prices) appear to sometimes have been used as an excuse for end-user price rises; Finnish suppliers have often been slow to respond to post-spike spot price reductions; offer prices are currently often higher than standard variable prices; and suppliers seem quite free to follow any pricing strategy, regardless of the presence of competition. Six factors are identified which influence end-user prices and their relationship with wholesale (and particularly spot) prices: hydro-dependency; concentration and entry barriers; cultural and historical determination; legislation; pricing strategies; the competitive environment. The report additionally specifically illustrates a wide variety of possible supplier strategies which might explain Finnish end-user pricing. Spot prices seem to provide only a minor explanation for Finnish end-user prices. (orig.)

  5. The crucial relationship among energy commodity prices: Evidence from the Spanish electricity market

    International Nuclear Information System (INIS)

    Moutinho, Victor; Vieira, Joel; Carrizo Moreira, Antonio

    2011-01-01

    The main purpose of this article is twofold to analyze: (a) the long-term relation among the commodities prices and between spot electricity market price and commodity prices, and (b) the short-term dynamics among commodity prices and between electricity prices and commodity prices. Data between 2002 and 2005 from the Spanish electricity market was used. Econometric methods were used in the analysis of the commodity spot price, namely the vector autoregression model, the vector error correction model and the granger causality test. The co-integration approach was used to analyze the long-term relationship between the common stochastic trends of four fossil fuel prices. One of the findings in the long-term relation is that the prices of fuel and the prices of Brent are intertwined, though the prices of Brent ten to 'move' to reestablish the price equilibrium. Another finding is that the price of electricity is explained by the evolution of the natural gas series. - Highlights: → We model energy commodity prices in the Spanish electricity market. → We examine the short and long-term relationships among commodities prices. → We examine short and long-term relationships using co-integration techniques. → We found that in the long run the prices of fuel and Brent are intertwined. → The evolution of price of electricity is explained by the evolution of price of gas.

  6. Transatlantic natural gas price and oil price relationships - an empirical analysis

    International Nuclear Information System (INIS)

    Vasquez Josse, C.I.; Neumann, A.

    2006-09-01

    Markets for natural gas in industrialized countries have witnessed profound changes in the past two decades. Trade of natural gas at spot markets in North America and Europe expanded and intensified significantly as a direct result of liberalization efforts. We test the relationships of weekly prices for crude oil and natural gas on either side of the Atlantic Basin between 1999 and 2005. Applying co-integration methodology we identify a move toward integration of historically and geographically separated markets for the homogeneous commodity natural gas. (authors)

  7. Negative price-image effects of appealing store architecture

    DEFF Research Database (Denmark)

    Zielke, Stephan; Toporowski, Waldemar

    2012-01-01

    Retailers often worry about the negative effects of appealing exterior architecture on their store's price image, especially the price-level perception and the ease of price evaluation. Findings from prior laboratory experiments support these concerns, while field studies find no such effects. Th....... The availability of price information neutralizes the negative effects of appealing architecture on the price-level perception, but not on the ease of price evaluation....

  8. Effect of firm variables on patent price

    Directory of Open Access Journals (Sweden)

    Shyam Sreekumaran Nair

    2012-03-01

    Full Text Available In this study, using singleton patent auction price data from Ocean Tomo, LLC, we analyse the effect of firm variables on patent price. Patents owned by small firms attract higher price than patents owned by large firms, if they engage in multi-country filings. The patents owned by small firms get cited more than the patents owned by large firms. The patents owned by individual inventors attract a higher price than the patents owned by organisations when multi-country filings are not included. We believe that the lack of resources is preventing individual inventors from engaging in multi-country filings and maximising the revenue from their invention. A larger representative data should be used to replicate the results before generalising it.

  9. Is the price effect on fuel consumption symmetric? some evidence from an empirical study

    International Nuclear Information System (INIS)

    Sentenac Chemin, E.

    2009-04-01

    We generally consider that the price elasticity of the energy demand is quite small. But it appears that strong increases in gasoline price lead to modifications in consumer behaviours. The high volatility of petroleum prices and thus gasoline prices and the strong increases since the beginning of 2000 justify an analysis of price effects on gasoline consumption. Thus, in this paper, we estimate the effects of price variations on gasoline consumption, in the short and the long-term, in two countries: the United States and India. We use a co-integration modelling to test for long-run relationship between gasoline consumption, income, price and vehicle ownership in the two countries. We use an error correction model to test for short-run prices effects and more precisely for asymmetric effects on demand of increases and decreases in gasoline prices. The main conclusions are the following. - The United States: (1) The long-term price elasticity is relatively high for an industrialised country because gasoline taxes are low (2) Households are more sensitive to a price increase than a price decrease. - India: (1) Price elasticity in the long-run is quite high but is quite small in the short run. It is not surprising for an emergent country (2) It seems that there is no asymmetric effect of price variations on gasoline consumption. (author)

  10. The relationship between global oil price shocks and China's output: A time-varying analysis

    International Nuclear Information System (INIS)

    Cross, Jamie; Nguyen, Bao H.

    2017-01-01

    We employ a class of time-varying Bayesian vector autoregressive (VAR) models on new standard dataset of China's GDP constructed by to examine the relationship between China's economic growth and global oil market fluctuations between 1992Q1 and 2015Q3. We find that: (1) the time varying parameter VAR with stochastic volatility provides a better fit as compared to it's constant counterparts; (2) the impacts of intertemporal global oil price shocks on China's output are often small and temporary in nature; (3) oil supply and specific oil demand shocks generally produce negative movements in China's GDP growth whilst oil demand shocks tend to have positive effects; (4) domestic output shocks have no significant impact on price or quantity movements within the global oil market. The results are generally robust to three commonly employed indicators of global economic activity: Kilian's global real economic activity index, the metal price index and the global industrial production index, and two alternative oil price metrics: the US refiners' acquisition cost for imported crude oil and the West Texas Intermediate price of crude oil. - Highlights: • A class of time-varying BVARs is used to examine the relationship between China's economic growth and global oil market fluctuations. • The impacts of intertemporal global oil price shocks on China's output are often small and temporary in nature. • Oil supply and specific oil demand shocks generally produce negative movements in China's GDP growth while oil demand shocks tend to have positive effects. • Domestic output shocks have no significant impact on price or quantity movements within the global oil market.

  11. Assessing the effect of oil price on world food prices: Application of principal component analysis

    International Nuclear Information System (INIS)

    Esmaeili, Abdoulkarim; Shokoohi, Zainab

    2011-01-01

    The objective of this paper is to investigate the co-movement of food prices and the macroeconomic index, especially the oil price, by principal component analysis to further understand the influence of the macroeconomic index on food prices. We examined the food prices of seven major products: eggs, meat, milk, oilseeds, rice, sugar and wheat. The macroeconomic variables studied were crude oil prices, consumer price indexes, food production indexes and GDP around the world between 1961 and 2005. We use the Scree test and the proportion of variance method for determining the optimal number of common factors. The correlation coefficient between the extracted principal component and the macroeconomic index varies between 0.87 for the world GDP and 0.36 for the consumer price index. We find the food production index has the greatest influence on the macroeconomic index and that the oil price index has an influence on the food production index. Consequently, crude oil prices have an indirect effect on food prices. - Research Highlights: →We investigate the co-movement of food prices and the macroeconomic index. →The crude oil price has indirect effect on the world GDP via its impacts on food production index. →The food production index is the source of causation for CPI and GDP is affected by CPI. →The results confirm an indirect effect among oil price, food price principal component.

  12. The international coffee price and its effect on the retail price\tfor\tthe\tfive\tmain\tcities\tin\tColombia

    Directory of Open Access Journals (Sweden)

    Julio César Alonso Cifuentes

    2016-09-01

    Full Text Available This study examines the relationship between the international coffee price and retail coffee prices in the five main cities in Colombia through cointegration tests, Granger causality tests, and impulse-response functions. The evidence points to the existence of a long-term relationship between the retail prices in the five main cities and the world coffee price. This relationship has a unidirectional causality of international coffee prices to retail coffee prices.The magnitude of the transmission of the international global price remains for 36 months or more for most retail coffee prices.

  13. Is the price effect on fuel consumption symmetric? Some evidence from an empirical study

    International Nuclear Information System (INIS)

    Sentenac-Chemin, Elodie

    2012-01-01

    We generally consider that the price elasticity of the energy demand is quite small. But it appears that strong increases in gasoline price lead to modifications in consumer behaviors. The high volatility of petroleum prices and the strong increases since the beginning of 2000 justify an analysis of price effects on gasoline consumption. We estimate the effects of price variations on gasoline consumption, in the United States and India. We use a co-integration modelling to test for long-run relationship between gasoline consumption, income, price and vehicle ownership in the two countries. We use an error correction model to test for short-run prices effects and more precisely for asymmetric effects on demand of increases and decreases in gasoline prices. The main conclusions are the following. Concerning the United States, the long-term price elasticity is relatively high for an industrialised country because gasoline taxes are low, but we show that households are more sensitive to a price increase than a price decrease. About India, price elasticity in the long-run is quite high but is quite small in the short-run. It is not surprising for an emergent country. It seems that there is no asymmetric effect of price variations on gasoline consumption.

  14. Effect of the 1973 oil price embargo

    International Nuclear Information System (INIS)

    Goel, R.K.; Morey, M.J.

    1993-01-01

    This paper focuses on the effect of the oil shock of 1973 on US gasoline demand by examining the price elasticities of demand before and after the 1973 embargo. Price elasticities provide useful input to the development of public policy dealing with taxation and pollution control. The extensive data used include state level observations for nearly three decades spanning 1952-80. We apply non-parametric regression methods that are more appropriate to our investigation than traditional parametric techniques. Unlike standard regression techniques, non-parametric methods neither assume a functional form for the demand relation nor restrict the distribution of the dependent variable. Our results show that the mean price elasticity of gasoline demand for the USA was - 0.243 for 1952-73 and the corresponding number for 1973-80 was - 0.576, statistically different at the 5% level of significance. The relatively higher price elasticity in the post-embargo period is consistent with the hypothesis that consumers sought substitutes and restricted their consumption in response to prices as well as social responsibility. The policy implications of these results are also discussed. (author)

  15. Increase of food commodities prices and their relationship with biofuels

    International Nuclear Information System (INIS)

    Ortiz-Alvarez, Marianela; Piloto-Rodríguez, Ramón

    2017-01-01

    Biofuels are without any doubt, an alternative to the actual energy matrix. In this work, through the analysis of the main influencing factors in the increase of food commodities prices, is demonstrated that this phenomena is not exclusive due to biofuels production. Comparing the food commodities prices with biofuels production and petroleum prices respectively, a stronger correlation between food and petroleum prices was observed, demonstrating the strong influence of the conventional energy market on agricultural products. (author)

  16. 18 CFR 2.17 - Price discrimination and anticompetitive effect (price squeeze issue).

    Science.gov (United States)

    2010-04-01

    ... INTERPRETATIONS Statements of General Policy and Interpretations Under the Federal Power Act § 2.17 Price... 18 Conservation of Power and Water Resources 1 2010-04-01 2010-04-01 false Price discrimination and anticompetitive effect (price squeeze issue). 2.17 Section 2.17 Conservation of Power and Water...

  17. Relationships between oil price shocks and stock market: An empirical analysis from China

    International Nuclear Information System (INIS)

    Cong Ronggang; Wei Yiming; Jiao Jianlin; Fan Ying

    2008-01-01

    This paper investigates the interactive relationships between oil price shocks and Chinese stock market using multivariate vector auto-regression. Oil price shocks do not show statistically significant impact on the real stock returns of most Chinese stock market indices, except for manufacturing index and some oil companies. Some 'important' oil price shocks depress oil company stock prices. Increase in oil volatility may increase the speculations in mining index and petrochemicals index, which raise their stock returns. Both the world oil price shocks and China oil price shocks can explain much more than interest rates for manufacturing index

  18. Relationships between oil price shocks and stock market: An empirical analysis from China

    DEFF Research Database (Denmark)

    Cong, Ronggang; Wei, Yi-Ming; Jiao, Jian-Ling

    2008-01-01

    This paper investigates the interactive relationships between oil price shocks and Chinese stock market using multivariate vector auto-regression. Oil price shocks do not show statistically significant impact on the real stock returns of most Chinese stock market indices, except for manufacturing...... index and some oil companies. Some “important” oil price shocks depress oil company stock prices. Increase in oil volatility may increase the speculations in mining index and petrochemicals index, which raise their stock returns. Both the world oil price shocks and China oil price shocks can explain...

  19. Exchange Rate – Relative Price Nonlinear Cointegration Relationship in Malaysia

    OpenAIRE

    Venus Khim-Sen Liew; Chee-Keong Choong; Evan Lau; Kian-Ping Lim

    2005-01-01

    The finding of exchange rate–relative price nonlinear cointegration relationship in Malaysia, among others, suggests that nonlinear Purchasing Power Parity (PPP) equilibrium may be regarded as reference point in judging the short run misalignment of the Ringgit currency and thereby deducing effective policy actions. Moreover, economists who wish to extend the simple PPP exchange rate model into the more complicated monetary exchange models may do so comfortably, at least in the text of Mala...

  20. Rockets and Feathers: The Asymmetric Effect between China’s Refined Oil Prices and International Crude Oil Prices

    Directory of Open Access Journals (Sweden)

    Yufeng Chen

    2017-03-01

    Full Text Available This paper employs an asymmetric error-correction model (AECM, and uses monthly data on wholesale prices of gasoline and diesel products in China and international crude oil prices from February 2006 to October 2013 to examine whether China’s gasoline and diesel prices adjust asymmetrically to international crude oil price changes. Our empirical results suggest that increases and decreases in international oil prices have asymmetric effects on both wholesale prices of gasoline and diesel fuel in China, and that both increases and decreases in international oil prices have a greater effect on diesel prices than on gasoline prices in China. If there is no change in the maximum retail price, the asymmetry results from the transmission of wholesale prices in China with international oil prices. However, if there is a change in maximum retail prices, both international oil prices and maximum retail prices cause the asymmetry.

  1. The relationship among energy prices and energy consumption in China

    International Nuclear Information System (INIS)

    Yuan, Chaoqing; Liu, Sifeng; Wu, Junlong

    2010-01-01

    The pricing mechanism for energy is not in line with the international standards, because the energy prices are controlled by the government partly or completely in China. Chinese government made a lot of efforts to improve the pricing mechanism for energy. The relations between Chinese energy prices and energy consumption are the foundations to reform the mechanism. In this paper, the relations between Chinese energy consumption and energy prices are researched by cointegration equations, impulse response functions, granger causality and variance decomposition. The cointegration relations among energy prices, energy consumption and economic outputs show that higher energy price will decrease energy consumption in Chinese industrial sectors but will not reduce the economic output in the long run. The cointegration relation between energy price and household energy consumption shows that higher energy price will decrease household energy consumption in the long run and increase it in the short run. So Chinese government should deepen the reform of pricing mechanism for energy, and increase the energy prices reasonably to save energy. (author)

  2. EFFECTIVE ANNUAL INTEREST SIGNIFIANCE ON BANKING PRODUCTS PRICE STRUCTURE

    Directory of Open Access Journals (Sweden)

    Medar Lucian-Ion

    2011-06-01

    Full Text Available The importance of the products and services prices can be found in the reference price, that customer must compare it with the price of the last made acquisition. The price of the banking product, that includes the effective annual intrest rate (EAI, is a guide price including all the cost elements related to banking products and services. The price of the products promoted through lending activities, is affected by the exchange rate of national and foreign currency, available on the money market. The role of the banking fee is very important in the specific services and bank products price formation.

  3. Durable-Goods Monopolists, Network Effects and Penetration Pricing

    OpenAIRE

    Cyrus C.Y. Chu; Hung-Ken Chien

    2005-01-01

    We study the pricing problem of a durable-goods monopolist. With network effects, consumption externalities among heterogeneous groups of consumers generate a discontinuous demand function. Consequently, the lessor has to offer a low price in order to reach the mass market, whereas the seller has the option to build a customer base by setting a lower initial price and raise the price later in the mass market, which explains the practice of introductory pricing. Contrary to the existing litera...

  4. Effects of house prices on health: New evidence from Australia.

    Science.gov (United States)

    Atalay, Kadir; Edwards, Rebecca; Liu, Betty Y J

    2017-11-01

    Recent house price variation has strongly affected households' housing wealth and debt, yet the non-economic consequences of these changes in housing wealth are still poorly understood. Using a sample of 19,000 individuals from the Household, Income and Labour Dynamics in Australia Survey (HILDA) for 2001-2015, we examine the relationship between house price fluctuations and individual health by exploiting large exogenous changes in house prices in Australia. We find that an increase in local house prices is associated with a positive effect on the physical health of outright owners and a negative effect on the physical and mental health of renters. Improvements in physical health for outright owners can be partially attributed to health-related investments and behaviours such as a reduction in weight, an increase in physical exercise and an increase in time allocated to home production. These findings support the presence of a health-wealth gradient through the wealth mechanism distinct from the effects of local area amenities and macroeconomic conditions. Our findings highlight some of the often-overlooked social impacts - both positive and negative - of fluctuations in the housing market. Copyright © 2017 Elsevier Ltd. All rights reserved.

  5. Relationship between performance measurements and sale price of ...

    African Journals Online (AJOL)

    Unknown

    Abstract. The sale prices of 1 609 Dorper rams sold between 1990 and 1999 were compared with their measured performances. An analysis of variance was carried out in order to determine which variables influenced sale price. The most importance factors were classification (stud vs. commercial), auction weight and coat ...

  6. Retail price as an outcome measure for the effectiveness of drug law enforcement.

    Science.gov (United States)

    Bright, David A; Ritter, Alison

    2010-09-01

    One outcome measure of law enforcement effectiveness is the reduction in drug consumption which occurs as a result of law enforcement interventions. A theoretical relationship between drug consumption and retail price has promoted the use of retail price as a surrogate measure for consumption. In the current article, retail price is examined as a potential outcome measure for the effectiveness of law enforcement. The predictions regarding the relationship between law enforcement intensity and price are only partially supported by research. Explanations for the disconnect between the drug law enforcement activity and retail price include: rapid adaptation by market players, enforcement swamping, assumptions of rational actors, short-run versus long-run effects, structure of the illicit market, simultaneous changes that affect price in perverse ways, the role of violence in markets, and data limitations. Researchers who use retail price as an outcome measure need to take into account the complex relationship between drug law enforcement interventions and the retail price of illicit drugs. Viable outcome measures which can be used as complements to retail price are worth investigation. Copyright 2009 Elsevier B.V. All rights reserved.

  7. Dynamic Relationship between Crude Oil Price, Exchange Rate and ...

    African Journals Online (AJOL)

    DrNneka

    Second, since Hamilton (1983) documented the impact of crude oil price volatility .... Hariri,2013) sourced from the U.S. Energy Information Administration (EIA). .... is explained by identifying the relative importance of a variable in generating.

  8. The Relationship Between Electricity Price and Wind Power Generation in Danish Electricity Markets

    DEFF Research Database (Denmark)

    Hu, Weihao; Chen, Zhe; Bak-Jensen, Birgitte

    2010-01-01

    of competitive electricity markets in some ways, is chosen as the studied power system. The relationship between the electricity price (both the spot price and the regulation price) and the wind power generation in an electricity market is investigated in this paper. The spot price, the down regulation price...... and the up regulation price generally decreases when the wind power penetration in the power system increases. The statistical characteristics of the spot price for different wind power penetration are analyzed. The findings of this paper may be useful for wind power generation companies to make the optimal...... bidding strategy and may be also useful for the optimal operation of modern power systems with high wind power penetrations....

  9. The relationship between spot and futures prices in the Nord Pool electricity market

    International Nuclear Information System (INIS)

    Botterud, Audun; Kristiansen, Tarjei; Ilic, Marija D.

    2010-01-01

    We analyze 11 years of historical spot- and futures prices from the hydro-dominated Nord Pool electricity market. We find that futures prices tend to be higher than spot prices. The average convenience yield is therefore negative, but varies by season and depends on the storage levels in hydro reservoirs. The average realized return on holding a long position in the futures market is also negative. The negative convenience yield and risk premium contrast empirical findings in most other commodity markets. We argue that differences between the supply and demand sides in terms of risk preferences and the ability to take advantage of short-term price variations can contribute to explain the observed relationship between spot- and futures prices. In addition, our analysis shows that the relationship between spot and futures prices is clearly linked to the physical state of the system, such as hydro inflow, reservoir levels, and demand. (author)

  10. Slow oil shocks and the 'weakening of the oil price-macroeconomy relationship'

    International Nuclear Information System (INIS)

    Naccache, Theo

    2010-01-01

    Many papers have been documenting and analysing the asymmetry and the weakening of the oil price-macroeconomy relationship as off the early eighties. While there seems to be a consensus about the factors causing the asymmetry, namely adjustment costs which offset the benefits of low energy prices, the debate about the weakening of the relationship is not over yet. Moreover, the alternative oil price specifications which have been proposed by, and to restore the stability of the relationship fail to Granger cause output or unemployment in post-1980 data. By using the concept of accelerations of the oil price, we show that the weakening of this relationship corresponds to the appearance of slow oil price increases, which have less impact on the economy. When filtering out these slow oil price variations from the sample, we manage to rehabilitate the causality running from the oil price to the macroeconomy and show that far from weakening, the oil price accelerations-GDP relationship has even been growing stronger since the early eighties. (author)

  11. Effect of the accuracy of price forecasting on profit in a Price Based Unit Commitment

    International Nuclear Information System (INIS)

    Delarue, Erik; Van Den Bosch, Pieterjan; D'haeseleer, William

    2010-01-01

    This paper discusses and quantifies the so-called loss of profit (i.e., the sub-optimality of profit) that can be expected in a Price Based Unit Commitment (PBUC), when incorrect price forecasts are used. For this purpose, a PBUC model has been developed and utilized, using Mixed Integer Linear Programming (MILP). Simulations are used to determine the relationship between the Mean Absolute Percentage Error (MAPE) of a certain price forecast and the loss of profit, for four different types of power plants. A Combined Cycle (CC) power plant and a pumped storage unit show highest sensitivity to incorrect forecasts. A price forecast with a MAPE of 15%, on average, yields 13.8% and 12.1% profit loss, respectively. A classic thermal power plant (coal fired) and cascade hydro unit are less affected by incorrect forecasts, with only 2.4% and 2.0% profit loss, respectively, at the same price forecast MAPE. This paper further demonstrates that if price forecasts show an average bias (upward or downward), using the MAPE as measure of the price forecast might not be sufficient to quantify profit loss properly. Profit loss in this case has been determined as a function of both shift and MAPE of the price forecast. (author)

  12. Effects of series compensation on spot price power markets

    International Nuclear Information System (INIS)

    Shrestha, G.B.; Wang Feng

    2005-01-01

    The operation of a deregulated power market becomes more complex as the generation scheduling is dependent on suppliers' and consumers' bids. With large number of transactions in the power market changing in time, it is more likely for some transmission lines to face congestion. Series compensation, such as TCSC, with its ability to directly control the power flow can be very helpful to improve the operation of transmission networks. The effects of TCSC on the operation of a spot price power market are studied in this paper using the modified IEEE 14-bus system. Optimal Power Flow incorporating TCSC is used to implement the spot price market. Linear bids are used to model suppliers' and consumers' bids. Issues of location and cost of TCSC are discussed. The effects of levels of TCSC compensation on wide range of system quantities are studied. The effects on the total social benefit, the spot prices, transmission congestion, total generation and consumption, benefit to individual supplier and consumer etc. are discussed. It is demonstrated that though use of TCSC makes the system more efficient and augments competition in the market, it is not easy to establish general relationships between the levels of compensation and various market quantities. Simulation studies like these can be used to assess the effects of TCSC in specific systems. (Author)

  13. A High-Dimensional, Multivariate Copula Approach to Modeling Multivariate Agricultural Price Relationships and Tail Dependencies

    Science.gov (United States)

    Xuan Chi; Barry Goodwin

    2012-01-01

    Spatial and temporal relationships among agricultural prices have been an important topic of applied research for many years. Such research is used to investigate the performance of markets and to examine linkages up and down the marketing chain. This research has empirically evaluated price linkages by using correlation and regression models and, later, linear and...

  14. Effects of Dutch mineral policies on land prices.

    NARCIS (Netherlands)

    Boots, M.G.; Oude Lansink, A.G.J.M.; Peerlings, J.H.M.

    1998-01-01

    Land prices were analyzed by shadow prices of individual
    farms and an exogenous supply of land,
    taking account of mineral surplus taxes and farm
    characteristics. Mineral policies have a substantial
    effect on land prices in the Netherlands and result
    in more extensive dairy

  15. The Influence Of Brand Relationship, Brand Satisfaction, And Perceived Price Towards Brand Loyalty In PT X’S Customer, Indonesia

    Directory of Open Access Journals (Sweden)

    Danang Prihandoko

    2016-09-01

    Full Text Available The goal of this research was to examine the influence of Brand Relationship, Brand Satisfaction, and Perceived Price towards Brand Loyalty by using multiple regression analysis. This research was a combination of qualitative and quantitative studies where the results of the questionnaire would be summarized and described in the form of tables and graphs. The result shows the three hypothesis that Brand Relationship and Brand Satisfaction have a positive influence towards Brand Loyalty meanwhile Perceived Price does not have a positive influence or less effect towards Brand Loyalty to all PT X’s customer.

  16. Effects of Idiosyncratic Volatility in Asset Pricing

    Directory of Open Access Journals (Sweden)

    André Luís Leite

    2016-04-01

    Full Text Available This paper aims to evaluate the effects of the aggregate market volatility components - average volatility and average correlation - on the pricing of portfolios sorted by idiosyncratic volatility, using Brazilian data. The study investigates whether portfolios with high and low idiosyncratic volatility - in relation to the Fama and French model (1996 - have different exposures to innovations in average market volatility, and consequently, different expectations for return. The results are in line with those found for US data, although they portray the Brazilian reality. Decomposition of volatility allows the average volatility component, without the disturbance generated by the average correlation component, to better price the effects of a worsening or an improvement in the investment environment. This result is also identical to that found for US data. Average variance should thus command a risk premium. For US data, this premium is negative. According to Chen and Petkova (2012, the main reason for this negative sign is the high level of investment in research and development recorded by companies with high idiosyncratic volatility. As in Brazil this type of investment is significantly lower than in the US, it was expected that a result with the opposite sign would be found, which is in fact what occurred.

  17. The lead-lag relationships between spot and futures prices of natural gas

    Science.gov (United States)

    Zhang, Yahui; Liu, Li

    2018-01-01

    The lead-lag relationships between spot and futures markets are of great interest for academics. Previous studies neglect the possibility of nonlinear behaviors which may be caused by asymmetry or persistence. To fill this gap, this paper uses the MF-DCCA method and the linear and nonlinear causality tests to explore the causal relationships between natural gas spot and futures prices in the New York Mercantile Exchange. We find that spot and futures prices are positive cross-correlated, the natural gas futures can linearly Granger cause spot price, and there are bidirectional nonlinear causality relationships between natural gas spot and futures prices. Further, we explore the sources of nonlinear causality relationships, and find that the volatility spillover can partly explain the nonlinear causality and affect their cross-correlations.

  18. Relationship between performance measurements and sale price of ...

    African Journals Online (AJOL)

    Unknown

    The main advantage is that the buyer is purchasing a ram that has been selected for traits of economic importance and is adapted to the specific environment in which it is expected to perform. The aim of this study was to determine the extent to which the performance of animals in a veld-ram club influences the price buyers ...

  19. The relationship between oil price shocks and China's macro-economy. An empirical analysis

    International Nuclear Information System (INIS)

    Du, Limin; Yanan, He; Wei; Chu

    2010-01-01

    This paper investigates the relationship between the world oil price and China's macro-economy based on a monthly time series from 1995:1 to 2008:12, using the method of multivariate vector autoregression (VAR). The results show that the world oil price affects the economic growth and inflation of China significantly, and the impact is non-linear. On the other hand, China's economic activity fails to affect the world oil price, which means that the world oil price is still exogenous with respect to China's macro-economy in time series sense, and China has not yet had an oil pricing power in the world oil markets. The structural stability tests demonstrate that there is a structural break in the VAR model because of the reforms of China's oil pricing mechanism, thus it is more appropriate to break the whole sample into different sub-samples for the estimation of the model. (author)

  20. Modelling world gold prices and USD foreign exchange relationship using multivariate GARCH model

    Science.gov (United States)

    Ping, Pung Yean; Ahmad, Maizah Hura Binti

    2014-12-01

    World gold price is a popular investment commodity. The series have often been modeled using univariate models. The objective of this paper is to show that there is a co-movement between gold price and USD foreign exchange rate. Using the effect of the USD foreign exchange rate on the gold price, a model that can be used to forecast future gold prices is developed. For this purpose, the current paper proposes a multivariate GARCH (Bivariate GARCH) model. Using daily prices of both series from 01.01.2000 to 05.05.2014, a causal relation between the two series understudied are found and a bivariate GARCH model is produced.

  1. ECONOMICAL PLANS EFFECTS ON CHARCOAL PRICES

    Directory of Open Access Journals (Sweden)

    José Luiz Pereira Rezende

    2007-06-01

    Full Text Available Energy is essential for human needs satisfaction. With the evolution of machinery, man becomes more and more dependent on the energy stocked in fossil fuels, comparatively to the primitive economy. Wood charcoal is a thermal-reducer used in Brazilian pig iron and steel industries, and its price is formed in an oligopsonic market. Over time, the charcoal prices have varied in function of endogenous and exogenous factors, needing, therefore, to be deflated so that they can be compared in two or more points in time. This work analyzed the variations of charcoal real prices, in national currency; compared and analyzed the real charcoal price in nominal and in real US Dollar and; analyzed the real prices of charcoal, comparatively to the real oil prices. The analyses were accomplished in the period from January 1975 to December 2002. The time series of charcoal prices, in domestic currency were deflated using IGP-DI, considering august, 1994=100, and charcoal prices were also converted to American dollar and deflated using CPI, considering the period 1982-84=100. It was compared, then, the real and nominal charcoal prices. It concluded that the real charcoal prices in Brazilian domestic currency, or in American dollar, presented a decreasing tendency along time. The inflationary disarray, in the 80´s and the first half of the 90 ´s, provoked a big price variation in the period; from the beginning the XXI century, charcoal prices were more influenced by the exchange rate; in the energy crisis period, charcoal prices suffered big changes that, however, did not persist along time.

  2. Pharmaceutical pricing, price controls, and their effects on pharmaceutical sales and research and development expenditures in the European Union.

    Science.gov (United States)

    Vogel, Ronald J

    2004-08-01

    Each country in the European Union (EU) currently employs direct price controls or permutations of direct price controls, such as reference pricing or limitations on returns to capital. Some countries also use volume controls. A new proposal that is being discussed would have all of the countries in the EU adopt uniform pricing for each pharmaceutical. This paper analyzes the economic effects of free-market pricing individual-country price controls, and uniform EU price controls. Microeconomic and mathematical models were used to simulate and predict probable economic outcomes in a comparative static setting. Price controls may be in the form of price ceilings or price floors. Both forms of price control generate deadweight economic losses in the short run and long run. A uniform EU price for each pharmaceutical sold there would have elements of a price ceiling in some of the countries and of a price floor in other countries. The deadweight loss incurred would be a function of the level at which the uniform price was set by the EU and the price elasticity of demand for each pharmaceutical in each country. Economic efficiency is maximized in both the short run and long run when prices are set in freely competitive markets. An additional important dimension of Ramsey pricing within a competitive context is that it generates funds for investment in pharmaceutical research and development, which enhances economic efficiency in the long run.

  3. Prices and Price Setting

    NARCIS (Netherlands)

    R.P. Faber (Riemer)

    2010-01-01

    textabstractThis thesis studies price data and tries to unravel the underlying economic processes of why firms have chosen these prices. It focuses on three aspects of price setting. First, it studies whether the existence of a suggested price has a coordinating effect on the prices of firms.

  4. Capuchin monkeys do not show human-like pricing effects

    Science.gov (United States)

    Catapano, Rhia; Buttrick, Nicholas; Widness, Jane; Goldstein, Robin; Santos, Laurie R.

    2014-01-01

    Recent work in judgment and decision-making has shown that a good's price can have irrational effects on people's preferences. People tend to prefer goods that cost more money and assume that such expensive goods will be more effective, even in cases where the price of the good is itself arbitrary. Although much work has documented the existence of these pricing effects, unfortunately little work has addressed where these price effects come from in the first place. Here we use a comparative approach to distinguish between different accounts of this bias and to explore the origins of these effects. Specifically, we test whether brown capuchin monkeys (Cebus apella) are also susceptible to pricing effects within the context of an experimentally trained token economy. Using a capuchin population previously trained in a token market, we explored whether monkeys used price as an indicator of value across four experiments. Although monkeys demonstrated an understanding of which goods had which prices (consistently shifting preferences to cheaper goods when prices were increased), we observed no evidence that such price information affected their valuation of different kinds of goods. These results suggest that human pricing effects may involve more sophisticated human-unique cognitive capacities, such as an understanding of market forces and signaling. PMID:25520677

  5. Capuchin monkeys do not show human-like pricing effects

    Directory of Open Access Journals (Sweden)

    Rhia eCatapano

    2014-12-01

    Full Text Available Recent work in judgment and decision-making has shown that a good’s price can have irrational effects on people’s preferences. People tend to prefer goods that cost more money and assume that such expensive goods will be more effective, even in cases where the price of the good is itself arbitrary. Although much work has documented the existence of these pricing effects, unfortunately little work has addressed where these price effects come from in the first place. Here we use a comparative approach to distinguish between different accounts of this bias and to explore the origins of these effects. Specifically, we test whether brown capuchin monkeys (Cebus apella are also susceptible to pricing effects within the context of an experimentally trained token economy. Using a capuchin population previously trained in a token market, we explored whether monkeys used price as an indicator of value across four experiments. Although monkeys demonstrated an understanding of which goods had which prices (consistently shifting preferences to cheaper goods when prices were increased, we observed no evidence that such price information affected their valuation of different kinds of goods. These results suggest that human price effects may involve more sophisticated human-unique cognitive capacities, such as an understanding of market forces and signaling.

  6. Capuchin monkeys do not show human-like pricing effects.

    Science.gov (United States)

    Catapano, Rhia; Buttrick, Nicholas; Widness, Jane; Goldstein, Robin; Santos, Laurie R

    2014-01-01

    Recent work in judgment and decision-making has shown that a good's price can have irrational effects on people's preferences. People tend to prefer goods that cost more money and assume that such expensive goods will be more effective, even in cases where the price of the good is itself arbitrary. Although much work has documented the existence of these pricing effects, unfortunately little work has addressed where these price effects come from in the first place. Here we use a comparative approach to distinguish between different accounts of this bias and to explore the origins of these effects. Specifically, we test whether brown capuchin monkeys (Cebus apella) are also susceptible to pricing effects within the context of an experimentally trained token economy. Using a capuchin population previously trained in a token market, we explored whether monkeys used price as an indicator of value across four experiments. Although monkeys demonstrated an understanding of which goods had which prices (consistently shifting preferences to cheaper goods when prices were increased), we observed no evidence that such price information affected their valuation of different kinds of goods. These results suggest that human pricing effects may involve more sophisticated human-unique cognitive capacities, such as an understanding of market forces and signaling.

  7. Pharmaceutical policies: effects of reference pricing, other pricing, and purchasing policies.

    Science.gov (United States)

    Acosta, Angela; Ciapponi, Agustín; Aaserud, Morten; Vietto, Valeria; Austvoll-Dahlgren, Astrid; Kösters, Jan Peter; Vacca, Claudia; Machado, Manuel; Diaz Ayala, Diana Hazbeydy; Oxman, Andrew D

    2014-10-16

    Pharmaceuticals are important interventions that could improve people's health. Pharmaceutical pricing and purchasing policies are used as cost-containment measures to determine or affect the prices that are paid for drugs. Internal reference pricing establishes a benchmark or reference price within a country which is the maximum level of reimbursement for a group of drugs. Other policies include price controls, maximum prices, index pricing, price negotiations and volume-based pricing. To determine the effects of pharmaceutical pricing and purchasing policies on health outcomes, healthcare utilisation, drug expenditures and drug use. We searched the Cochrane Central Register of Controlled Trials (CENTRAL), part of The Cochrane Library (including the Effective Practice and Organisation of Care Group Register) (searched 22/10/2012); MEDLINE In-Process & Other Non-Indexed Citations and MEDLINE, Ovid (searched 22/10/2012); EconLit, ProQuest (searched 22/10/2012); PAIS International, ProQuest (searched 22/10/2012); World Wide Political Science Abstracts, ProQuest (searched 22/10/2012); INRUD Bibliography (searched 22/10/2012); Embase, Ovid (searched 14/12/2010); NHSEED, part of The Cochrane Library (searched 08/12/2010); LILACS, VHL (searched 14/12/2010); International Political Science Abstracts (IPSA), Ebsco (searched (17/12/2010); OpenSIGLE (searched 21/12/10); WHOLIS, WHO (searched 17/12/2010); World Bank (Documents and Reports) (searched 21/12/2010); Jolis (searched 09/10/2011); Global Jolis (searched 09/10/2011) ; OECD (searched 30/08/2005); OECD iLibrary (searched 30/08/2005); World Bank eLibrary (searched 21/12/2010); WHO - The Essential Drugs and Medicines web site (browsed 21/12/2010). Policies in this review were defined as laws; rules; financial and administrative orders made by governments, non-government organisations or private insurers. To be included a study had to include an objective measure of at least one of the following outcomes: drug use

  8. The effects of agricultural trade openness on food price transmission in Latin American countries

    Directory of Open Access Journals (Sweden)

    Insa Flachsbarth

    2014-11-01

    Full Text Available Trade of agricultural commodities has grown significantly in most Latin American countries (LAC over the last two decades. However, after the international food price surges in 2006-08 and 2011-12 concerns about food access of the poor arose. Within a panel framework containing six LAC (Argentina, Brazil, Chile, Colombia, Mexico and Peru, we used a single equation error correction model to identify possible cointegrating relationships between the food consumer price index (CPI and a set of trade related and domestic variables. The main focus of the study was to examine how different levels of trade openness impact international food price transmission to domestic markets. Our results confirm that deeper market integration increases global price transmission elasticities. In other words, more agricultural trade openness proves to elevate food CPIs during global price spikes. Thus, for poor consumers world price shocks can be deteriorating in the short-run and domestic food prices will slowly converge to a higher long-run equilibrium. Especially in increasingly integrated economies, effective policies to buffer food price shocks should be put in place, but must be carefully planned with the required budget readily available. We also found that exchange rate appreciations can buffer price shocks to a certain extent and that monetary policies seem to be an appropriate means for stabilizing food prices to safeguard food access of the poor population.

  9. A reexamination of the crude oil price-unemployment relationship in the United States

    International Nuclear Information System (INIS)

    Uri, N.D.; Boyd, R.

    1996-01-01

    This study begins by asking whether fluctuations in the price of crude oil have affected employment and the rate of unemployment in the US. After reviewing previous assessments of the issue, the existence of an empirical relationship between the rate of unemployment and crude oil price volatility is established using Granger causality. Subsequently, the nature of the relationship is estimated with the results suggesting that at least three full years are required before the measurable impact of a percentage change in the real price of crude oil on the change in unemployment is exhausted. Finally, the structural stability of the functional relationship between the change in unemployment and the volatility of the price of crude oil and the percentage change in gross national product is examined

  10. House prices and the macroeconomic environment in Turkey: The examination of a dynamic relationship

    Directory of Open Access Journals (Sweden)

    Yıldırım Mustafa Ozan

    2017-01-01

    Full Text Available The aim of this paper is to examine the dynamic relationship between house prices, income, interest rates, housing permits, and share prices in Turkey, using Structural Vector Autoregressive (SVAR models. This paper uses both monthly and quarterly data for the Turkish economy and applies four different SVAR models to reveal this dynamic relationship over the 2003-2016 period. The results show statistically significant and substantial relationships between the variables. The analysis also shows that house prices and housing permits as housing market variables are very sensitive to monetary policy and income shocks. The key finding of the study for policymakers is that a change in mortgage rates is the factor that most changes house prices. The study also shows that the housing market plays an important role in transferring monetary policy to the real economy in Turkey.

  11. The effect of costs and regulation on electricity prices

    International Nuclear Information System (INIS)

    Schlaf, E.P.

    1991-01-01

    Two distinct econometric tests were performed to determine if state price regulation of public utilities has had a measurable impact on retail electricity prices. The results of both tests agree that, during the 1971-1985 period, average national electricity prices in each of the three major consuming sectors and the four Census regions were below the level which would have been preferred by profit-maximizing monopolists. Electricity consumers received price benefits during the sample period as a result of regulation. The first test of the effectiveness of state price regulation used a 'revealed preference' approach by comparing the actual prices set by regulatory commissioners with prices and outcomes predicted by three competing theories of regulatory motivation. The second test of the effectiveness of price regulation combined traditional cost function inputs with regulatory variables in reduced-form price equations to determine whether the amount of regulatory intensity, as measured by the number of staff members per regulated utility, is associated with declining electricity prices and whether appointed commissioners allow higher prices than elected commissioners

  12. The welfare effects of different pricing schemes for electricity distribution in Finland

    International Nuclear Information System (INIS)

    Kopsakangas-Savolainen, Maria

    2004-01-01

    The main components of electricity prices can be divided into the wholesale price, the price of network operations and taxes. Even if the wholesale price is determined efficiently, total welfare can be significantly disturbed if network operations are priced inefficiently. In this study, we calculate network prices based on four alternative methods. These are marginal cost pricing, Ramsey pricing, FDC-pricing and optimal two-part tariffs. The welfare effects on the prevailing pricing system are compared. We show that potentially significant improvements in welfare can be achieved by using marginal cost prices or optimal two-part tariffs. Also Ramsey pricing indicates that prevailing prices are inefficient

  13. The welfare effects of different pricing schemes for electricity distribution in Finland

    International Nuclear Information System (INIS)

    Kopsakangas-Savolainen, Maria

    2004-01-01

    The main components of electricity prices can be divided into the wholesale price, the price of network operations and taxes. Even if the wholesale price is determined efficiently, total welfare can be significantly disturbed if network operations are priced inefficiently. In this study, we calculate network prices based on four alternative methods. These are marginal cost pricing, Ramsey pricing, FDC-pricing and optimal two-part tariffs. The welfare effects on the prevailing pricing system are compared. We show that potentially significant improvements in welfare can be achieved by using marginal cost prices or optimal two-part tariffs. Also Ramsey pricing indicates that prevailing prices are inefficient. (Author)

  14. The Relationship Between Brand Awareness and Price Levels Toward Purchase Intention: An Experiment with Luxury Perfumes

    Directory of Open Access Journals (Sweden)

    Deonir De Toni

    2014-08-01

    Full Text Available Luxury products carry with them different and complementary meanings. However, the symbolic meanings, manifested through its extrinsic attributes such as brand and price, are strongly related to their image and often outperform intrinsic attributes. This study aims to understand the role of brand and price on purchase intention, perception of quality and value in luxury goods. From an experiment with factorial design of order 2 (brand: known, unknown x 2 (price: high, low, it was found that purchase intention both in situations of low prices as high prices is significantly higher for luxury perfume known brands; the perception of quality for perfume known brands is significantly greater than that for unknown brands, regardless of the price level. Other findings indicate that the relationship between brand awareness and purchase intention is mediated by perceived quality and the relationship between price perception and purchase intention is mediated by perceived value. Thus, the study results allow a better understanding of the role of brand and price in the consumption of luxury products. 

  15. Capuchin monkeys do not show human-like pricing effects

    OpenAIRE

    Catapano, Rhia; Buttrick, Nicholas; Widness, Jane; Goldstein, Robin; Santos, Laurie R.

    2014-01-01

    Recent work in judgment and decision-making has shown that a good's price can have irrational effects on people's preferences. People tend to prefer goods that cost more money and assume that such expensive goods will be more effective, even in cases where the price of the good is itself arbitrary. Although much work has documented the existence of these pricing effects, unfortunately little work has addressed where these price effects come from in the first place. Here we use a comparative a...

  16. New Evidence on the Price Effects of Cigarette Tax Competition.

    Science.gov (United States)

    Carpenter, Christopher S; Mathes, Michael T

    2016-05-01

    Multiple studies have shown that cigarette taxes are more than fully passed through to cigarette prices and that access to a nearby state with a lower cigarette tax also reduces local cigarette prices. We study two other sources of tax competition: nearby Native American reservations and online sales. Using quarterly data on local cigarette prices from 1976-2003, we show that the opening of a Native American casino within 25 miles of a city center is associated with a $0.016-$0.027 lower per-pack price, while a 50 percentage point increase in internet penetration is associated with a $0.22-$0.25 per-pack price reduction. These effects are not observed for other local prices for which there is no potential tax savings. Our results further our understanding of how tax competition affects local cigarette prices and provide context to studies linking Native American reservations and internet penetration to cigarette smuggling.

  17. Detecting the Spatially Non-Stationary Relationships between Housing Price and Its Determinants in China: Guide for Housing Market Sustainability

    Directory of Open Access Journals (Sweden)

    Yanchuan Mou

    2017-10-01

    Full Text Available Given the rapidly developing processes in the housing market of China, the significant regional difference in housing prices has become a serious issue that requires a further understanding of the underlying mechanisms. Most of the extant regression models are standard global modeling techniques that do not take spatial non-stationarity into consideration, thereby making them unable to reflect the spatial nature of the data and introducing significant bias into the prediction results. In this study, the geographically weighted regression model (GWR was applied to examine the local association between housing price and its potential determinants, which were selected in view of the housing supply and demand in 338 cities across mainland China. Non-stationary relationships were obtained, and such observation could be summarized as follows: (1 the associations between land price and housing price are all significant and positive yet having different magnitudes; (2 the relationship between supplied amount of residential land and housing price is not statistically significant for 272 of the 338 cities, thereby indicating that the adjustment of supplied land has a slight effect on housing price for most cities; and (3 the significance, direction, and magnitude of the relationships between the other three factors (i.e., urbanization rate, average wage of urban employees, proportion of renters and housing price vary across the 338 cities. Based on these findings, this paper discusses some key issues relating to the spatial variations, combined with local economic conditions and suggests housing regulation policies that could facilitate the sustainable development of the Chinese housing market.

  18. Viewpoint On the Climate Change Effects of High Oil Prices

    International Nuclear Information System (INIS)

    Vielle, M.; Viguier, L.

    2005-11-01

    Some commentators claim that the oil market has achieved within a few months what international bureaucrats have struggled to obtain in a decade of international climate negotiations. The fallacy of the oil price argument is that substitutions and income effects that would result from higher oil prices are not considered. Using a computable general equilibrium model, we show that high oil prices cannot serve as substitutes for effective climate policies.

  19. Causality relationship between the price of oil and economic growth in Japan

    International Nuclear Information System (INIS)

    Hanabusa, Kunihiro

    2009-01-01

    This paper investigates the relationship between the price of oil and economic growth in Japan during the period from 2000 to 2008 using an exponential generalized autoregressive conditional heteroskedasticity (EGARCH) model. We employ a residual cross-correlation function (CCF) approach developed by [Cheung, Y.W., Ng, N.K., 1996. A causality-in-variance test and its application to financial market prices. Journal of Econometrics 72, 33-48]. The empirical results reveal that the economic growth rate Granger-causes the change of oil price in mean and variance and the change of oil price Granger-causes the economic growth rate in mean and variance. Previous studies have analyzed the response of economic activity to oil price shocks. However, we analyze the causality relations for both means and variances, and identify the direction of information flow and the timing of causation. (author)

  20. The Price-Concentration Relationship in Early Residential Solar Third-Party Markets

    Energy Technology Data Exchange (ETDEWEB)

    Pless, Jacquelyn [Univ. of Oxford (United Kingdom); Langheim, Ria [Center for Sustainable Energy, San Francisco, CA (United States); Machak, Christina [Center for Sustainable Energy, San Francisco, CA (United States); Hellow, Henar [Center for Sustainable Energy, San Francisco, CA (United States); Sigrin, Ben [National Renewable Energy Lab. (NREL), Golden, CO (United States)

    2017-01-01

    The market for residential solar photovoltaic (PV) systems in the United States has experienced tremendous growth over the past decade, with installed capacity more than doubling between 2014 and 2016 alone (SEIA, 2016). As the residential market continues to grow, it prompts new questions about the nature of competition between solar installers and how this competition, or lack thereof, affects the prices consumers are paying. It is often assumed that more competition leads to lower prices, but this is not universally true. For example, some studies have shown that factors such as brand loyalty could lead to a negative relationship between concentration and price in imperfectly competitive markets (Borenstein, 1985; Holmes, 1989). As such, the relationship between prices and market concentration is an open empirical question since theory could predict either a positive or negative relationship. Determining a relationship between prices and market concentration is challenging for several reasons. Most significantly, prices and market structure are simultaneously determined by each other -- the amount of competition a seller faces influences the price they can command, and prices determine a seller's market share. Previous studies have examined recent PV pricing trends over time and between markets (Davidson et al., 2015a; Davidson and Margolis 2015b; Nemet et al., 2016; Gillingham et al., 2014; Barbose and Darghouth 2015). While these studies of solar PV pricing are able to determine correlations between prices and market factors, they have not satisfactorily proven causation. Thus, to the best of our knowledge, there is little work to date that focuses on identifying the causal relationship between market structure and the prices paid by consumers. We use a unique dataset on third-party owned contract terms for the residential solar PV market in the San Diego Gas and Electricity service territory to better understand this relationship. Surprisingly, we find

  1. Investigation of Causal Relationship between Stock Prices and Trading Volume using Toda and Yamamoto Procedure

    Directory of Open Access Journals (Sweden)

    Sushil BAJAJ

    2014-11-01

    Full Text Available The present study probes the relationship between the stock prices and trading volume. For achieving this purpose, daily data of adjusted closing stock prices, trading volume of 39 individual securities and S&P CNX Nifty from January 1, 1998 to May 31, 2013 have been used. In this study, instead of applying ordinary Granger causality test to investigate the relationship between stock prices and trading volume, Toda and Yamamoto (1995 procedure has been applied for analyzing the data. Lag length chosen by AIC and FPE criterion has been insured by running Lagrange Multiplier (LM test and causality determined by Toda and Yamamoto test has also been confirmed by using VAR methodology. Although, Toda and Yamamoto and VAR test produced little dissimilar results, nevertheless, the empirical analysis provides sufficient grounds to declare the presence of interaction between stock prices and trading volume.

  2. The Effects of Oil Price Shocks on Turkish Business Cycle: A Markov Switching Approach

    Directory of Open Access Journals (Sweden)

    Vasif Abiyev

    2015-10-01

    Full Text Available Purpose - The purpose of this study is to investigate the relationship between oil price changes and the output growth in Turkey. Design/methodology/approach - The data were taken from International Financial Statistics databases, consisting of monthly data for the period 1986:01-2014:09. Different univariate Markov - switching regime autoregressive models are specified and estimated. Among them we selected univariate MSIH(3 - AR(2 model for output and extended it to verify if the inclusion of various asymmetric oil price shocks as an exogenous variable improves the ability of the Markov switching model. Four different oil price shocks are considered. Findings - We find that among various oil price shocks, only net oil price increases have negative effects on output growth and mitigate the magnitude of some recessionary periods in Turkey. However, it doesn’t strongly explain the behavior of business cycle in Turkey. Research limitations/implications - Our results suggest that the inclusion of other fundamental financial factors in the bivariate Markov switching model of aggregate economic activity and oil price changes becomes important to explicitly detect the negative impact of oil price shocks on output in Turkey. Originality/value - Our results support the existence of a negative relationship between oil price increases and output growth mentioned in the literature and empirical studies on Turkey.

  3. The relationship between innovation and price variation process innovations and product; La Relacion entre innovacion y variacion de los precios innovaciones de proceso y de producto

    Energy Technology Data Exchange (ETDEWEB)

    Gonzalez, X.; Miles-Touya, D.; Pazo, C.

    2012-07-01

    The aim of this study is to analyze the relationship between innovation and price changes, distinguishing between process and product innovations. The former directly affects production costs, the changes of which could be transferred to prices. The latter enables companies to differentiate their products vertically or horizontally and increases the consumers willingness to pay, which may lead companies to raise prices. The results show that firms that introduce product innovations are more likely to raise prices and firms that introduce process innovations are more likely to reduce them. The magnitudes of the effects are different. (Author)

  4. Gasoline Prices and Their Relationship to Rising Motorcycle Fatalities, 1990–2007

    Science.gov (United States)

    Stimpson, Jim P.; Hilsenrath, Peter E.

    2009-01-01

    Motor vehicle accidents are the leading cause of death among young adults. Although automobile fatalities have declined in recent years, motorcycle fatalities are rapidly increasing. The purpose of our research was to quantify the relationship between changing fuel prices and motorcycle fatalities. Our findings suggest that people increasingly rely on motorcycles to reduce their fuel costs in response to rising gasoline prices. We estimate that use of motorcycles and scooters instead of 4-wheeled vehicles results in over 1500 additional motorcycle fatalities annually for each dollar increase in gas prices. Motorcycle safety should receive more attention as a leading public health issue. PMID:19696374

  5. China and the relationship between the oil price and the dollar

    International Nuclear Information System (INIS)

    Benassy-Quere, Agnes; Mignon, Valerie; Penot, Alexis

    2007-01-01

    We study cointegration and causality between the real price of oil and the real price of the dollar over the 1974-2004 period. Our results suggest that a 10% rise in the oil price coincides with a 4.3% appreciation of the dollar in the long run, and that the causality runs from oil to the dollar. Through the development of a theoretical model, we then investigate possible reasons why this relationship could be reversed in the future due to the emergence of China as a major player on both the oil and the foreign exchange markets

  6. Agricultural Commodities and Crude Oil Prices: An Empirical Investigation of Their Relationship

    Directory of Open Access Journals (Sweden)

    Eleni Zafeiriou

    2018-04-01

    Full Text Available Within the last few decades, the extended use of biodiesel and bioethanol has established interlinkages between energy markets and agricultural commodity markets. The present work examines the bivariate relationships of crude oil–corn and crude oil–soybean futures prices with the assistance of the ARDL cointegration approach. Our findings confirm that crude oil prices affect the prices of agricultural products used in the production of biodiesel, as well as of ethanol, validating the interaction of energy and agricultural commodity markets. The practical value of the present work is that the findings provide policy makers with insight into the interlinkages between agricultural and energy markets to promote biodiesel or bioethanol by affecting crude oil prices. The novelty of the present work stands on the use of futures prices that incorporate all available information and thus are more appropriate to identify supply and demand shocks and price spillovers than real prices. Finally, the period of study includes extremely low, as well as extremely high, crude oil prices and the results illustrate that biofuels cannot be substituted for crude oil and protect economies from energy volatility.

  7. Effect of price display on brand luxury perceptions

    OpenAIRE

    Parguel , Béatrice; Delécolle , Thierry; Valette-Florence , Pierre

    2014-01-01

    Based on two experimental studies, this paper investigates the impact of price display in the luxury sector on perceived brand luxury and brand attitude. Using a sample of students, Study1 shows that price display is associated with higher perceived quality, uniqueness, and conspicuousness for a fictitious luxury brand presented in a store window. Using two real luxury brands and a larger sample of consumers, Study 2 confirms the positive effect of price display on the brand’s perceived consp...

  8. THE EFFECTS OF CHANGING MARGIN LEVELS ON FUTURES OPTIONS PRICE

    Institute of Scientific and Technical Information of China (English)

    Yanling GU; Juan LI

    2006-01-01

    The paper studies the effects of changing margin levels on the price of futures options and how to organize a market maker's position. Black model (1976) becomes a special case of this paper.The paper prices futures options by duplicating them and adopting the theory of Backward Stochastic Differential Equations (BSDEs for short). Furthermore, the price of a futures option is the unique solution to a nonlinear BSDE.

  9. ARE PRICING POLICIES EFFECTIVE TO CHANGE CAR USE?

    Directory of Open Access Journals (Sweden)

    Geertje SCHUITEMA

    2007-01-01

    Results revealed that under pricing policies most people did not intend to change their car use. Pricing policies were relatively more effective when prices increased significantly. Especially visiting and shopping trips were affected, while commuting trips were hardly affected. Moreover, respondents were most likely to reduce their car use for short trips, which are an important source of CO2 emissions and local air pollution.

  10. Welfare and distribution effects of water pricing policies

    NARCIS (Netherlands)

    Ruijs, A.J.W.

    2007-01-01

    In this paper, distribution and welfare effects of changes in block price systems are evaluated. A method is discussed to determine, for a Marshallian demand function, equivalent variation in case of a block price system. The method is applied to analyze welfare and distribution effects of changing

  11. Price

    International Nuclear Information System (INIS)

    Anon.

    1991-01-01

    The price terms in wheeling contracts very substantially, reflecting the differing conditions affecting the parties contracting for the service. These terms differ in the manner in which rates are calculated, the formulas used, and the philosophy underlying the accord. For example, and EEI study found that firm wheeling rates ranged from 20 cents to $1.612 per kilowatt per month. Nonfirm rates ranged from .15 mills to 5.25 mills per kilowatt-hour. The focus in this chapter is on cost-based rates, reflecting the fact that the vast majority of existing contracts are based on rate designs reflecting embedded costs. This situation may change in the future, but, for now, this fact can't be ignored

  12. SECOND ROUND EFFECTS AND PASS-THROUGH OF FOOD PRICES TO INFLATION IN KENYA

    Directory of Open Access Journals (Sweden)

    Roseline Nyakerario Misati

    2015-07-01

    Full Text Available In the recent past, the Kenyan economy experienced persistent inflationary pressures, partly attributed to food price spikes. However, the quantitative role of food prices in inflation is not well understood or formally empirically analyzed in Kenya yet food occupies a weight of 36 percent in the consumer price index and contributes a monthly average of over 40 percent to overall inflation. Based on monthly data covering the period 1997-2012, this paper attempts to fill this gap by examining the relationship between food prices and inflation. The study used gap models and Phillips curve approaches to estimate the passthrough effects of food prices to both overall inflation and non-food non-fuel inflation. Based on gap models, the results confirm presence of second round effects from food prices to inflation while estimations of the Phillips curve suggest a domestic food price pass-through of 0.49 to overall inflation and 0.38 to non-food non-fuel inflation. The world food prices pass-through to overall inflation and non-food non-fuel inflation are estimated at 0.09 and 0.08, respectively. Thus this paper recommends usage of headline inflation to estimate trend inflation, enhanced communication to mitigate second round effects and that while monetary policy is very critical in anchoring inflationary expectations, there is mutual gain from a supportive fiscal policy in addressing supply side shocks.

  13. The Effect on the Indicators of Unemployment of International Crude Oil Price Volatility: Empirical Findings on the Case of Turkey

    Directory of Open Access Journals (Sweden)

    Birol Erkan

    2011-12-01

    Full Text Available Oil prices may have an impact on economic activity through various transmission channels. A number of recent studies have emphasized the role of oil prices and macro-economic variables. The aim of this paper is to study the short-term/longterm relationship between oil prices and unemployment in Turkey. The most common cause of increasing oil prices over the last thirty years has been a decrease in supply. Prices increased during the early 1970s as OPEC reduced supply. Again prices increased in the late 1970s and early 1980s as the collapse of the government of the Shah of Iran and subsequent war between Iran and Iraq threatened supply. We applied Granger causal modals to determine if oil prices “Granger Caused” unemployment for data between 2005:01 and 2009:12 in Turkey. However, we performed Vector Autoregressive Model (VAR to determine the relationship between to variables in question, to estimate these relationships and to determine the delay values. As a result, long-term relationship between oil prices and unemployment rate are available in Turkey, and changes in the unemployment rate do not affect oil prices, oil prices changes affect the unemployment rate (this effect is the opposite direction

  14. Identifying the oil price-macroeconomy relationship. An empirical mode decomposition analysis of US data

    International Nuclear Information System (INIS)

    Oladosu, Gbadebo

    2009-01-01

    This paper employs the empirical mode decomposition (EMD) method to filter cyclical components of US quarterly gross domestic product (GDP) and quarterly average oil price (West Texas Intermediate - WTI). The method is adaptive and applicable to non-linear and non-stationary data. A correlation analysis of the resulting components is performed and examined for insights into the relationship between oil and the economy. Several components of this relationship are identified. However, the principal one is that the medium-run component of the oil price has a negative relationship with the main cyclical component of the GDP. In addition, weak correlations suggesting a lagging, demand-driven component and a long-run component of the relationship were also identified. Comparisons of these findings with significant oil supply disruption and recession dates were supportive. The study identifies a number of lessons applicable to recent oil market events, including the eventuality of persistent oil price and economic decline following a long oil price run-up. In addition, it was found that oil market related exogenous events are associated with short- to medium-run price implications regardless of whether they lead to actual supply losses. (author)

  15. Trade linkages and macroeconomic effects of the price of oil

    International Nuclear Information System (INIS)

    Korhonen, Iikka; Ledyaeva, Svetlana

    2010-01-01

    In this paper we assess the impact of oil price shocks on oil-producer and oil-consuming economies. VAR models for different countries are linked together via a trade matrix, as in Abeysinghe (2001). As expected, we find that oil producers (here, Russia and Canada) benefit from oil price shocks. For example, a large oil shock leading to a price increase of 50% boosts Russian GDP by about 6%. However, oil producers are hurt by indirect effects of positive oil price shocks, as economic activity in their exporter countries suffers. For oil consumers, the effects are more diverse. In some countries, output falls in response to an oil price shock, while other countries seem to be relatively immune to oil price changes. Finally, indirect effects are also detected for oil-consumer countries. Those countries, which trade more with oil producers, gain indirect benefits via higher demand from oil-producing countries. In general, the largest negative total effects from positive oil price shocks are found for Japan, China, the USA, Finland and Switzerland, while other countries in our sample seem to have fared quite well during recent positive oil price shocks. The indirect effects are negative for Russia, Finland, Germany and Netherlands. (author)

  16. Dynamics Of The Relationship Between Bank Loans And Stock Prices In Saudi Arabia

    OpenAIRE

    Saud Almutair

    2015-01-01

    The objective of this study is to find the dynamics of the relationship between bank loans and stock prices in Saudi Arabia using quarterly data for the period 1998 to 2013. The estimation methodology consists of a cointegration test, an error correction model estimation, and VAR Granger Causality. The study confirms the long-run relationship between credit card loans (CCLOAN) and Saudis stock market index (SSPI). We found a positive relationship between SSPI and bank loans, supporting the ec...

  17. Effect of Price Determinants on World Cocoa Prices for Over the Last Three Decades: Error Correction Model (ECM Approach

    Directory of Open Access Journals (Sweden)

    Lya Aklimawati

    2013-12-01

    Full Text Available High  volatility  cocoa  price  movement  is  consequenced  by  imbalancing between power demand and power supply in commodity market. World economy expectation and market  liberalization would lead to instability on cocoa prices in  the  international  commerce.  Dynamic  prices  moving  erratically  influence the benefit  of market players, particularly  producers. The aim of this research is  (1  to  estimate  the  empirical  cocoa  prices  model  for  responding  market dynamics and (2 analyze short-term and long-term effect of price determinants variables  on cocoa prices.  This research  was  carried out by  analyzing  annualdata from 1980 to 2011, based on secondary data. Error correction mechanism (ECM  approach was  used  to  estimate the  econometric  model  of  cocoa  price.The  estimation  results  indicated  that  cocoa  price  was  significantly  affected  by exchange rate IDR-USD, world gross domestic product,  world inflation, worldcocoa production, world cocoa consumption, world cocoa stock and Robusta prices at varied significance level from 1 - 10%. All of these variables have a long run equilibrium relationship. In long run effect, world gross domestic product, world  cocoa  consumption  and  world  cocoa  stock  were  elastic  (E  >1,  while other  variables  were  inelastic  (E  <1.  Variables  that  affecting  cocoa  pricesin  short  run  equilibrium  were  exchange  rate  IDR-USD,  world  gross  domestic product,  world  inflation,  world  cocoa  consumption  and  world  cocoa  stock. The  analysis  results  showed  that  world  gross  domestic  product,  world  cocoa consumption  and  world  cocoa  stock  were  elastic  (E  >1  to  cocoa  prices  in short-term.  Whereas,  the  response  of  cocoa  prices  was  inelastic  to  change  of exchange rate IDR-USD and world inflation.Key words: Price

  18. Prices, technology development and the rebound effect

    International Nuclear Information System (INIS)

    Birol, F.; Keppler, J.H.

    2000-01-01

    Energy efficiency is the critical parameter for policies that aim at reducing energy consumption while maintaining or even boosting economic growth. The two main options to influence energy efficiency are changes in relative prices, i.e., raising the price of energy through economic instruments, or to introduce new technologies which increase the productivity of each unit of energy. This paper is based on the notion that in an equilibrium economy the marginal economic productivity is identical for all factors, i.e., energy, labour, knowledge and capital. From this premise two main conclusions can be drawn. First, any change in price or technology will have an impact on the whole economy by creating feedbacks through the substitution of factors of production and goods, as well as increased wealth. Second, the two policy approaches, changing relative prices and technology development, are not opposite to each other. They are the two faces of the same reality and should be developed and promoted simultaneous and consistently. (Author)

  19. Modelling of capital asset pricing by considering the lagged effects

    Science.gov (United States)

    Sukono; Hidayat, Y.; Bon, A. Talib bin; Supian, S.

    2017-01-01

    In this paper the problem of modelling the Capital Asset Pricing Model (CAPM) with the effect of the lagged is discussed. It is assumed that asset returns are analysed influenced by the market return and the return of risk-free assets. To analyse the relationship between asset returns, the market return, and the return of risk-free assets, it is conducted by using a regression equation of CAPM, and regression equation of lagged distributed CAPM. Associated with the regression equation lagged CAPM distributed, this paper also developed a regression equation of Koyck transformation CAPM. Results of development show that the regression equation of Koyck transformation CAPM has advantages, namely simple as it only requires three parameters, compared with regression equation of lagged distributed CAPM.

  20. THE LOW PRICE EFFECT ON THE POLISH MARKET

    Directory of Open Access Journals (Sweden)

    Adam Zaremba

    2014-06-01

    Full Text Available In this paper we investigate the characteristics of the low price anomaly, which implies higher returns to stocks with a low nominal price. The research aims to broaden academic knowledge in a few ways. Firstly, we deliver some fresh evidence on the low price effect from the Polish market. Secondly, we analyze the interdependence between the low price effect and other return factors: value, size and liquidity. Thirdly, we investigate whether the low price effect is present after accounting for liquidity. Fourthly, we check to see whether the low price effect is robust to transaction costs. The paper is composed of three main sections. In the beginning, we review the existing literature. Next, we present the data sources and research methods employed. Finally, we discuss our research findings. Our computations are based on all the stocks listed on the Warsaw Stock Exchange (WSE in the years 2003-2013. We have concluded that the low price effect is present on the Polish market, although the statistical significance is very weak and it disappears entirely after accounting for transaction costs and liquidity.

  1. The relationship between crude oil spot and futures prices: Cointegration, linear and nonlinear causality

    International Nuclear Information System (INIS)

    Bekiros, Stelios D.; Diks, Cees G.H.

    2008-01-01

    The present study investigates the linear and nonlinear causal linkages between daily spot and futures prices for maturities of one, two, three and four months of West Texas Intermediate (WTI) crude oil. The data cover two periods October 1991-October 1999 and November 1999-October 2007, with the latter being significantly more turbulent. Apart from the conventional linear Granger test we apply a new nonparametric test for nonlinear causality by Diks and Panchenko after controlling for cointegration. In addition to the traditional pairwise analysis, we test for causality while correcting for the effects of the other variables. To check if any of the observed causality is strictly nonlinear in nature, we also examine the nonlinear causal relationships of VECM filtered residuals. Finally, we investigate the hypothesis of nonlinear non-causality after controlling for conditional heteroskedasticity in the data using a GARCH-BEKK model. Whilst the linear causal relationships disappear after VECM cointegration filtering, nonlinear causal linkages in some cases persist even after GARCH filtering in both periods. This indicates that spot and futures returns may exhibit asymmetric GARCH effects and/or statistically significant higher order conditional moments. Moreover, the results imply that if nonlinear effects are accounted for, neither market leads or lags the other consistently, videlicet the pattern of leads and lags changes over time. (author)

  2. Money Price Relationship under the Currency Board System: The Case of Argentina

    OpenAIRE

    Selahattin Togay; Nezir Kose

    2009-01-01

    In this study, the endogenous money hypothesis is examined for the Argentinean economy employing exogeneity tests by using monthly data for the time period 1991-2001 within the frame of money and price relationship in a Currency Board-like system. Empirical results support the hypothesis which suggests that money supply is endogenous.

  3. Students' Demand for Smartphones: Structural Relationships of Product Features, Brand Name, Product Price and Social Infuence

    Science.gov (United States)

    Suki, Norazah Mohd

    2013-01-01

    Purpose: The study aims to examine structural relationships of product features, brand name, product price and social influence with demand for Smartphones among Malaysian students'. Design/methodology/approach: Data collected from 320 valid pre-screened university students studying at the pubic higher learning institution in Federal Territory of…

  4. Road pricing and road safety : possible effects on road safety of 23 variants of road pricing.

    NARCIS (Netherlands)

    Eenink, R.G. Dijkstra, A. Wijnen, W. & Janssen, S.T.M.C.

    2007-01-01

    The Nouwen Committee (National Platform Paying Differently for Mobility) advised the Cabinet in 2005 about the introduction of a system of road pricing. Part of this advice consisted of a calculation of the expected road safety effects of such a system. In a letter to the Minister of Transport, SWOV

  5. Domestic and Foreign Effects on Prices in an Open Economy

    DEFF Research Database (Denmark)

    Juselius, Katarina

    1994-01-01

    Domestic price determination in Denmark is investigated using three kinds of macro-economic explanations: (1) internal labor mar­ ket theories describing the relation between price and wage inflation, (2) pure monetarist theories describing the effect of excess money on the inflation rate, and (3...... model. The results stand up as quite strong evidence against the Lucas critiqueDomestic price determination in Denmark is investigated using three kinds of macro-economic explanations: (1) internal labor mar­ ket theories describing the relation between price and wage inflation, (2) pure monetarist...... found to be the main determinants of the inflation rate. Among these, the domestic effects were small compared to the foreign effects. The em­ pirical results strongly favored a backward-looking behavioral model in terms of structurally stable parameters as opposed to a forward- looking expectations...

  6. The role of enduring involvement in the relationship between reference price and price acceptance in the context of multichannel choice

    OpenAIRE

    Gyulavári, Tamás; Kolos, Krisztina; Kenesei, Zsófia

    2011-01-01

    Understanding online price acceptance and its determining factors can be essential if the companies try to manage different type of channels. The paper aimed to reveal the role of enduring involvement in price acceptance in a multichannel (online and offline) context. The study revealed that the hedonic value of shopping can increase the negative intention of price acceptance in the online channel, but also explored that for the segment without shopping motivations a similar price level can b...

  7. The effect of excise tax increases on cigarette prices in South Africa.

    Science.gov (United States)

    Linegar, Daniel J; van Walbeek, Corne

    2018-01-01

    The effectiveness of excise tax increases as a tool for reducing tobacco consumption depends largely on how the tax increases impact the retail price. We estimate this relationship in South Africa for 2001-2015. Statistics South Africa provided disaggregated cigarette price data, used in the calculation of the Consumers' Price Index. Data on the excise tax per cigarette were obtained from Budget Reviews prepared by the National Treasury of South Africa. Regression equations were estimated for each month. The month-on-month change in cigarette prices in February through April was regressed against March's excise tax change to estimate the pass-through coefficient. For the other 9 months, the month-on-month change in cigarette price was regressed against monthly dummy variables to determine the size of the non-tax-related price increase in each of these months. The analysis was performed in both nominal and real (inflation-adjusted) terms. Expressed in real terms, the excise tax was undershifted. A R1.00 (one rand) increase in the excise tax is associated with an increase in the retail price of cigarettes of R0.90 in the pre-2010 period, and R0.49 in the post-2010 period. In the pre-2010 period, the tobacco industry increased the retail price of cigarettes in July/August, independent of the excise tax increase. The discretionary July/August price increases largely disappeared after 2010, primarily because the market became more competitive. The degree of excise tax pass-through, and the magnitude of discretionary increases in cigarette prices, is significantly determined by the competitive environment in the cigarette market. © Article author(s) (or their employer(s) unless otherwise stated in the text of the article) 2018. All rights reserved. No commercial use is permitted unless otherwise expressly granted.

  8. The effect of excise tax increases on cigarette prices in South Africa

    Science.gov (United States)

    Linegar, Daniel J; van Walbeek, Corne

    2018-01-01

    Introduction The effectiveness of excise tax increases as a tool for reducing tobacco consumption depends largely on how the tax increases impact the retail price. We estimate this relationship in South Africa for 2001–2015. Data Statistics South Africa provided disaggregated cigarette price data, used in the calculation of the Consumers’ Price Index. Data on the excise tax per cigarette were obtained from Budget Reviews prepared by the National Treasury of South Africa. Methods Regression equations were estimated for each month. The month-on-month change in cigarette prices in February through April was regressed against March’s excise tax change to estimate the pass-through coefficient. For the other 9 months, the month-on-month change in cigarette price was regressed against monthly dummy variables to determine the size of the non-tax-related price increase in each of these months. The analysis was performed in both nominal and real (inflation-adjusted) terms. Findings Expressed in real terms, the excise tax was undershifted. A R1.00 (one rand) increase in the excise tax is associated with an increase in the retail price of cigarettes of R0.90 in the pre-2010 period, and R0.49 in the post-2010 period. In the pre-2010 period, the tobacco industry increased the retail price of cigarettes in July/August, independent of the excise tax increase. The discretionary July/August price increases largely disappeared after 2010, primarily because the market became more competitive. Conclusion The degree of excise tax pass-through, and the magnitude of discretionary increases in cigarette prices, is significantly determined by the competitive environment in the cigarette market. PMID:28341767

  9. Causal Relationship Between Relative Price Variability and Inflation in Turkey: Evidence from Panel Data

    Directory of Open Access Journals (Sweden)

    Nebiye Yamak

    2016-06-01

    Full Text Available This study investigates the causal relationship between inflation and relative price variability in Turkey for the period of January 2003-January 2014, by using panel data. In the study, a Granger (1969 non-causality test in heterogeneous panel data models developed by Dumitrescu and Hurlin (2012 is utilized to determine the causal relations between inflation rate relative price variability. The panel data consists of 4123 observations: 133 time observations and 31 cross-section observations. The results of panel causality test indicate that there is a bidirectional causality between inflation rate and relative price variability by not supporting the imperfection information model of Lucas and the menu cost model of Ball and Mankiw.

  10. Stock price dynamics and option valuations under volatility feedback effect

    Science.gov (United States)

    Kanniainen, Juho; Piché, Robert

    2013-02-01

    According to the volatility feedback effect, an unexpected increase in squared volatility leads to an immediate decline in the price-dividend ratio. In this paper, we consider the properties of stock price dynamics and option valuations under the volatility feedback effect by modeling the joint dynamics of stock price, dividends, and volatility in continuous time. Most importantly, our model predicts the negative effect of an increase in squared return volatility on the value of deep-in-the-money call options and, furthermore, attempts to explain the volatility puzzle. We theoretically demonstrate a mechanism by which the market price of diffusion return risk, or an equity risk-premium, affects option prices and empirically illustrate how to identify that mechanism using forward-looking information on option contracts. Our theoretical and empirical results support the relevance of the volatility feedback effect. Overall, the results indicate that the prevailing practice of ignoring the time-varying dividend yield in option pricing can lead to oversimplification of the stock market dynamics.

  11. THE EFFECTS OF SWINGS IN GLOBAL WHEAT PRICES ON THE DOMESTIC MARKETS IN AFGHANISTAN

    Directory of Open Access Journals (Sweden)

    Najibullah Hassanzoy

    2016-10-01

    Full Text Available The recent shocks in global prices of cereals and the spillover effects of trade restrictive policies adversely affected domestic markets, particularly in the net food importing countries such as Afghanistan. This paper investigates the effects of 2007–2008 spikes in global wheat prices on the dynamics of price transmission and long-run equilibrium relationship between global and domestic wheat markets. The findings indicate that domestic and global wheat markets may be cointegrated in Regime-I (pre-break, Regime-II (post-break and the overall sample period. Moreover, the elasticity of price transmission and speed of adjustment towards the long-run equilibrium are substantially different between the two regimes, i.e., they appear to be larger in Regime-I as compared to Regime-II. Similarly, the effect of a shock in global wheat prices on domestic wheat markets might be long-lasting in Regime-I but transitory in Regime-II. This research underlines the need for mitigating the adverse effect of spikes in global wheat prices on domestic wheat markets in the context of a landlocked net food importing country.

  12. Estimation of several political action effects of energy prices

    Directory of Open Access Journals (Sweden)

    Andrew B. Whitford

    2016-01-01

    Full Text Available One important effect of price shocks in the United States has been increased political attention paid to the structure and performance of oil and natural gas markets, along with some governmental support for energy conservation. This article describes how price changes helped lead to the emergence of a political agenda accompanied by several interventions, as revealed through Granger causality tests on change in the legislative agenda.

  13. The Fall of Oil Prices and the Effects on Biofuels.

    Science.gov (United States)

    Reboredo, Fernando H; Lidon, Fernando; Pessoa, Fernanda; Ramalho, José C

    2016-01-01

    This analysis is focused on the effect of the abrupt decline of oil prices on biofuels, particularly second-generation ethanol. The efforts to decrease the production costs of biofuels, especially cellulosic ethanol (CE), will be greatly threatened if current oil prices remain low, especially since production is not slowing. Only huge state subsidies could alleviate this threat, but the challenge is to persuade citizens that this sacrifice is worthwhile. Copyright © 2015 Elsevier Ltd. All rights reserved.

  14. Oil price fluctuations and Its effect on GDP growth

    OpenAIRE

    Gonzalez , Aaron; Nabiyev, Sherzod

    2009-01-01

    During the year of 2008, the world has experienced historically high oil prices reaching an all time high of 147 USD per barrel in midsummer. The extreme volatility of what is consider the number one source of energy reopened discussions about energy sustainability and the plausible effects of an oil shock in the global economy.   How reliable oil price is as an economic variable predicting fluctuations in GDP growth remains controversial. Several models have been developed by scholars target...

  15. OPEC announcements and their effects on crude oil prices

    International Nuclear Information System (INIS)

    Lin, Sharon Xiaowen; Tamvakis, Michael

    2010-01-01

    We investigate evidence on the effects of OPEC announcements on world oil prices by examining announcements from both official conferences and ministerial meetings on major international crudes, including the key benchmarks and several other heavy and light grades. With data from 1982 to 2008, we use event study methodology and find differentiation in the magnitude and significance of market responses to OPEC quota decisions under different price bands. We also find some (weak) evidence of differentiation between light and heavy crude grades. (author)

  16. The relationship between gasoline price and patterns of motorcycle fatalities and injuries.

    Science.gov (United States)

    Zhu, He; Wilson, Fernando A; Stimpson, Jim P

    2015-06-01

    Economic factors such as rising gasoline prices may contribute to the crash trends by shaping individuals' choices of transportation modalities. This study examines the relationship of gasoline prices with fatal and non-fatal motorcycle injuries. Data on fatal and non-fatal motorcycle injuries come from California's Statewide Integrated Traffic Records System for 2002-2011. Autoregressive integrated moving average (ARIMA) regressions were used to estimate the impact of inflation-adjusted gasoline price per gallon on trends of motorcycle injuries. Motorcycle fatalities and severe and minor injuries in California were highly correlated with increasing gasoline prices from 2002 to 2011 (r=0.76, 0.88 and 0.85, respectively). In 2008, the number of fatalities and injuries reached 13,457--a 34% increase since 2002, a time period in which inflation-adjusted gasoline prices increased about $0.30 per gallon every year. The majority of motorcycle riders involved in crashes were male (92.5%), middle-aged (46.2%) and non-Hispanic white (67.9%). Using ARIMA modelling, we estimated that rising gasoline prices resulted in an additional 800 fatalities and 10,290 injuries from 2002 to 2011 in California. Our findings suggest that increasing gasoline prices led to more motorcycle riders on the roads and, consequently, more injuries. Aside from mandatory helmet laws and their enforcement, other strategies may include raising risk awareness of motorcyclists and investment in public transportation as an alternative transportation modality to motorcycling. In addition, universally mandated training courses and strict licensing tests of riding skills should be emphasised to help reduce the motorcycle fatal and non-fatal injuries. Published by the BMJ Publishing Group Limited. For permission to use (where not already granted under a licence) please go to http://group.bmj.com/group/rights-licensing/permissions.

  17. Assessment of the relationship between oil prices and US oil stocks

    Energy Technology Data Exchange (ETDEWEB)

    Saif Ghouri, Salman [Business Environment Section, Corporate Planning Department, Qatar Petroleum, Doha (Qatar)]. E-mail: ghouri@qp.com.qa

    2006-11-15

    This paper qualitatively and quantitatively analyzes the relationship between US monthly ending oil stocks position with that of West Texas Intermediate (WTI) oil prices from February 1995 to July 2004. The paper concludes if other things are held constant, WTI is inversely related to the petroleum products (PPP), combined petroleum products and crude oil (CPPP), crude oil alone (Crude), total oil stocks including petroleum products, crude oil and strategic petroleum reserves SPR (Total), total gasoline (TGO), total distillate (TDO). It could not establish a statistically significant and negative relationship with SPR when run alone. One percent increase (decrease) in CPPP, PPP, Crude, Total, TGO and TDO leads to decrease (increase) in WTI, respectively, by 0.70, 0.43, 0.37, 0.97, 0.26 and 0.21 percent. Oil prices are largely influenced by total crude and Crude and PPP inventories levels while modestly with variations in gasoline and distillate stocks levels. Despite a healthy increase of over 22 percent in SPR from January 2001 to April 2004, it did not result in easing of oil prices. Primarily because SPR are meant for security of supply concern and are only released under extreme conditions by the President of United States, they are neither meant for the purposes of balancing supply-demand gap nor for the stability of oil prices. The aggressive SPR buildup in recent years is related to international terrorism, geopolitical situation in the Middle East, particularly in Iraq, that encourages US government to enhance its SPR to meet any short-term eventuality. The analyst must keep a close eye on CPPP and the total oil stocks variation to forecast WTI in the short run whilst gasoline and distillate influence oil prices modestly in the short run. SPR, on the other hand, are expected to play a pivotal role in balancing oil prices and in providing a critical resource for the economy in case of any major shortfall in the long run.

  18. Assessment of the relationship between oil prices and US oil stocks

    International Nuclear Information System (INIS)

    Saif Ghouri, Salman

    2006-01-01

    This paper qualitatively and quantitatively analyzes the relationship between US monthly ending oil stocks position with that of West Texas Intermediate (WTI) oil prices from February 1995 to July 2004. The paper concludes if other things are held constant, WTI is inversely related to the petroleum products (PPP), combined petroleum products and crude oil (CPPP), crude oil alone (Crude), total oil stocks including petroleum products, crude oil and strategic petroleum reserves SPR (Total), total gasoline (TGO), total distillate (TDO). It could not establish a statistically significant and negative relationship with SPR when run alone. One percent increase (decrease) in CPPP, PPP, Crude, Total, TGO and TDO leads to decrease (increase) in WTI, respectively, by 0.70, 0.43, 0.37, 0.97, 0.26 and 0.21 percent. Oil prices are largely influenced by total crude and Crude and PPP inventories levels while modestly with variations in gasoline and distillate stocks levels. Despite a healthy increase of over 22 percent in SPR from January 2001 to April 2004, it did not result in easing of oil prices. Primarily because SPR are meant for security of supply concern and are only released under extreme conditions by the President of United States, they are neither meant for the purposes of balancing supply-demand gap nor for the stability of oil prices. The aggressive SPR buildup in recent years is related to international terrorism, geopolitical situation in the Middle East, particularly in Iraq, that encourages US government to enhance its SPR to meet any short-term eventuality. The analyst must keep a close eye on CPPP and the total oil stocks variation to forecast WTI in the short run whilst gasoline and distillate influence oil prices modestly in the short run. SPR, on the other hand, are expected to play a pivotal role in balancing oil prices and in providing a critical resource for the economy in case of any major shortfall in the long run

  19. A CAUSAL RELATIONSHIP BETWEEN OIL PRICES CURRENT ACCOUNT DEFICIT, AND ECONOMIC GROWTH: AN EMPIRICAL ANALYSIS FROM FRAGILE FIVE COUNTRIES

    Directory of Open Access Journals (Sweden)

    Yuksel BAYRAKTAR

    2016-09-01

    Full Text Available The main objective of this study is to determine the impact of oil prices in the Fragile-Five countries (Brazil, Indonesia, South Africa, India, and Turkey on current account deficit and growth. In this study, the method of panel data analysis was used and the period of 1980-2014 was examined. The Levin, Lin, & Chu panel; Im, Pesaran, and Shin W-stat; ADF-Fisher Chi-square; and PP-Fisher Chi-square unit root tests were used to determine the stability of data before panel data analysis. The results of the study can be expressed as follows. i There was a statistically meaningful relationship in oil prices with both GDP and the current account deficit. While there was a positive correlation between oil prices and GDP, there was a negative relationship between oil prices and current account deficit. ii No long-term relationship was found between GDP and oil prices; there was a long-term relationship between current account deficit and oil prices as determined by the cointegration tests. iii Causality test also showed the presence of a bidirectional relationship between GDP and oil prices.  Causality between oil prices and the current account deficit was one-way from the variable of oil price to the variable of current account deficit.

  20. Growth and oil price: A study of causal relationships in small Pacific Island countries

    Energy Technology Data Exchange (ETDEWEB)

    Jayaraman, T.K. [School of Economics, Faculty of Business and Economics, The University of the South Pacific, Laucala Bay Road, Suva (Fiji); Choong, Chee-Keong [Department of Economics and Finance, Faculty of Business and Finance, Universiti Tunku Abdul Rahman (Perak Campus), Jalan Universiti, Bandar Barat, 31900 Kampar, Perak Darul Ridzuan (Malaysia)], E-mail: choongck@utar.edu.my

    2009-06-15

    This paper investigates the nexus between economic growth and oil price in small Pacific Island countries (PICs). Except Papua New Guinea, none of the 14 PICs has fossil any fuel resources. Consequently, the other 13 PICs are totally dependent on oil imports for their economic activities. Since PICs have limited foreign exchange earning capacities, as they have a very narrow range of exports and are highly dependent on foreign aid, high oil prices in recent months have seriously tested their economic resilience. This paper applies the ARDL bounds testing methodology to four selected PICs, Samoa, Solomon Islands, Tonga and Vanuatu, which have consistent and reliable time series of data, with a view to assess the impact of oil price on economic growth. The findings are that oil price, gross domestic product and international reserve are cointegrated in all the four PICs. Further, both in the long and short runs, we observe that there is a uni-directional relationship as causality linkage runs only from oil price and international reserves to economic growth. The paper makes some policy recommendations.

  1. Growth and oil price. A study of causal relationships in small Pacific Island countries

    Energy Technology Data Exchange (ETDEWEB)

    Jayaraman, T.K. [School of Economics, Faculty of Business and Economics, The University of the South Pacific, Laucala Bay Road, Suva (Fiji); Choong, Chee-Keong [Department of Economics and Finance, Faculty of Business and Finance, Universiti Tunku Abdul Rahman (Perak Campus), Jalan Universiti, Bandar Barat, 31900 Kampar, Perak Darul Ridzuan (Malaysia)

    2009-06-15

    This paper investigates the nexus between economic growth and oil price in small Pacific Island countries (PICs). Except Papua New Guinea, none of the 14 PICs has fossil any fuel resources. Consequently, the other 13 PICs are totally dependent on oil imports for their economic activities. Since PICs have limited foreign exchange earning capacities, as they have a very narrow range of exports and are highly dependent on foreign aid, high oil prices in recent months have seriously tested their economic resilience. This paper applies the ARDL bounds testing methodology to four selected PICs, Samoa, Solomon Islands, Tonga and Vanuatu, which have consistent and reliable time series of data, with a view to assess the impact of oil price on economic growth. The findings are that oil price, gross domestic product and international reserve are cointegrated in all the four PICs. Further, both in the long and short runs, we observe that there is a uni-directional relationship as causality linkage runs only from oil price and international reserves to economic growth. The paper makes some policy recommendations. (author)

  2. Growth and oil price: A study of causal relationships in small Pacific Island countries

    International Nuclear Information System (INIS)

    Jayaraman, T.K.; Choong, Chee-Keong

    2009-01-01

    This paper investigates the nexus between economic growth and oil price in small Pacific Island countries (PICs). Except Papua New Guinea, none of the 14 PICs has fossil any fuel resources. Consequently, the other 13 PICs are totally dependent on oil imports for their economic activities. Since PICs have limited foreign exchange earning capacities, as they have a very narrow range of exports and are highly dependent on foreign aid, high oil prices in recent months have seriously tested their economic resilience. This paper applies the ARDL bounds testing methodology to four selected PICs, Samoa, Solomon Islands, Tonga and Vanuatu, which have consistent and reliable time series of data, with a view to assess the impact of oil price on economic growth. The findings are that oil price, gross domestic product and international reserve are cointegrated in all the four PICs. Further, both in the long and short runs, we observe that there is a uni-directional relationship as causality linkage runs only from oil price and international reserves to economic growth. The paper makes some policy recommendations.

  3. The effect of oil price volatility on strategic investment

    International Nuclear Information System (INIS)

    Henriques, Irene; Sadorsky, Perry

    2011-01-01

    In this paper, we investigate how oil price volatility affects the strategic investment decisions of a large panel of US firms. This paper uses key insights from the real options literature to develop a model of a company's strategic investment and shows how changes in oil price volatility can impact strategic investment decisions. The model is estimated using recently developed generalized method of moment estimation techniques for panel data sets. Empirical results are presented to show that there is a U shaped relationship between oil price volatility and firm investment. This is consistent with the predictions from the strategic growth options literature. The results should be useful to decision makers, investors, managers, policy makers and others who need to make strategic investment decisions in an uncertain world. (author)

  4. THE EFFECT OF GASOLINE PRICE ON ECONOMIC SECTORS IN NIGERIA

    Directory of Open Access Journals (Sweden)

    Philip Ifeakachukwu Nwosa

    2013-01-01

    Full Text Available This paper examined the long-run and short-run relationship between gasoline price and sectoral output in Nigeria for the period from 1980 to 2010. Six sectors (agriculture; manufacturing; building and construction; wholesale and retail; transportation and communication of the economy were examined. The long run regression estimate showed that gasoline price is a significant determinant output in all sectors examined with exception to the building and construction sector while the short run error correction estimate revealed that only output of the agriculture and the manufacturing sectors of the Nigerian economy is affect by gasoline price increase in the short run. The study recommended among others the need for the government to ensure adequate power supply in order to reduce the over reliance of economics sectors on gasoline as a prime source of power.

  5. Customer Perception On Products Pricing Service Quality Towards Customers Quality Relationships And Loyalty Of Domestic Airlines Indonesia

    Directory of Open Access Journals (Sweden)

    Hasniaty

    2015-08-01

    Full Text Available Aviation services industry is an important industry that holds Indonesia. Indonesia has approximately 17 thousand islands scattered with a long coastline over 5000 kilometers. Air transport is an essential component for connecting approximately 250 million people with a population growth of 1.49 percent annually. Air transport services become business areas that are needed by todays modern society. This study aims to quantify the relationship between customer perceptions on the concept or product price service quality and relationship quality on customer loyalty of domestic airline in Indonesia. This study took a sample of 300 respondents. The data analyzed using SEM Structural Equation Modeling. The results of this study is theoretical findings suggests that the product has a significant positive effect on trust customer satisfaction and loyalty but positive effect is insignificant on commitment. The price has significant positive effect on trust commitment satisfaction but positive effect is insignificant on loyalty. Service quality has a significant positive effect on trust commitment satisfaction but positive effect is insignificant on loyalty. Trust has significant positive effect on satisfaction and loyalty. Commitment has significant positive effect on loyalty but positive effect is insignificant on loyalty. Satisfaction has significant positive effect on satisfaction and loyalty.

  6. High prices for rare species can drive large populations extinct: the anthropogenic Allee effect revisited.

    Science.gov (United States)

    Holden, Matthew H; McDonald-Madden, Eve

    2017-09-21

    Consumer demand for plant and animal products threatens many populations with extinction. The anthropogenic Allee effect (AAE) proposes that such extinctions can be caused by prices for wildlife products increasing with species rarity. This price-rarity relationship creates financial incentives to extract the last remaining individuals of a population, despite higher search and harvest costs. The AAE has become a standard approach for conceptualizing the threat of economic markets on endangered species. Despite its potential importance for conservation, AAE theory is based on a simple graphical model with limited analysis of possible population trajectories. By specifying a general class of functions for price-rarity relationships, we show that the classic theory can understate the risk of species extinction. AAE theory proposes that only populations below a critical Allee threshold will go extinct due to increasing price-rarity relationships. Our analysis shows that this threshold can be much higher than the original theory suggests, depending on initial harvest effort. More alarmingly, even species with population sizes above this Allee threshold, for which AAE predicts persistence, can be destined to extinction. Introducing even a minimum price for harvested individuals, close to zero, can cause large populations to cross the classic anthropogenic Allee threshold on a trajectory towards extinction. These results suggest that traditional AAE theory may give a false sense of security when managing large harvested populations. Copyright © 2017 Elsevier Ltd. All rights reserved.

  7. Heterogeneous Effects of a Nonlinear Price Schedule for Outpatient Care.

    Science.gov (United States)

    Farbmacher, Helmut; Ihle, Peter; Schubert, Ingrid; Winter, Joachim; Wuppermann, Amelie

    2017-10-01

    Nonlinear price schedules generally have heterogeneous effects on health-care demand. We develop and apply a finite mixture bivariate probit model to analyze whether there are heterogeneous reactions to the introduction of a nonlinear price schedule in the German statutory health insurance system. In administrative insurance claims data from the largest German health insurance plan, we find that some individuals strongly react to the new price schedule while a second group of individuals does not react. Post-estimation analyses reveal that the group of the individuals who do not react to the reform includes the relatively sick. These results are in line with forward-looking behavior: Individuals who are already sick expect that they will hit the kink in the price schedule and thus are less sensitive to the co-payment. Copyright © 2016 John Wiley & Sons, Ltd. Copyright © 2016 John Wiley & Sons, Ltd.

  8. The Effects of Oil Price Changes And Exchange Rate Volatility On Unemployment: Evidence From Malaysia

    Directory of Open Access Journals (Sweden)

    Mohd Shahidan Shaari

    2016-01-01

    Full Text Available The study aims to examine the effects of oil price and exchange rate on unemployment in Malaysia. The empirical analysis commence by analyzing the time series property of data. The Johansen VAR-based co-integration technique was applied to examine the long run relationship between exchange rate, oil price and unemployment and found the long run relationship does exist. The vector error correction model was performed to check the short run dynamics and found that the short run dynamics are influenced by the estimated long run equilibrium. Granger causality was done and found that oil price does not affect unemployment but exchange rate has an influence on unemployment. Therefore, putting the exchange rate under control should be implemented to control unemployment.

  9. Wind energy and electricity prices. Exploring the 'merit order effect'

    International Nuclear Information System (INIS)

    Morthost, P.E.; Ray, S.; Munksgaard, J.; Sinner, A.F.

    2010-04-01

    This report focuses on the effect of wind energy on the electricity price in the power market. As the report will discuss, adding wind into the power mix has a significant influence on the resulting price of electricity, the so called merit order effect (MOE). The merit order effect has been quantified and discussed in many scientific publications. This report ends the first phase of a study on the MOE, evaluating the impact of EWEA's 2020 scenarios on future European electricity prices. The basic principles of the merit order effect are provided in the first part of the document. The literature review itself contains methods and tools not only to quantify the merit order effect but also in order to forecast its future range and volume.

  10. Cost-effectiveness and pricing of antibacterial drugs.

    Science.gov (United States)

    Verhoef, Talitha I; Morris, Stephen

    2015-01-01

    Growing resistance to antibacterial agents has increased the need for the development of new drugs to treat bacterial infections. Given increasing pressure on limited health budgets, it is important to study the cost-effectiveness of these drugs, as well as their safety and efficacy, to find out whether or not they provide value for money and should be reimbursed. In this article, we systematically reviewed 38 cost-effectiveness analyses of new antibacterial agents. Most studies showed the new antibacterial drugs were cost-effective compared to older generation drugs. Drug pricing is a complicated process, involving different stakeholders, and has a large influence on cost-effectiveness. Value-based pricing is a method to determine the price of a drug at which it can be cost-effective. It is currently unclear what the influence of value-based pricing will be on the prices of new antibacterial agents, but an important factor will be the definition of 'value', which as well as the impact of the drug on patient health might also include other factors such as wider social impact and the health impact of disease. © 2015 The Authors. Chemical Biology & Drug Design Published by John Wiley & Sons Ltd.

  11. Relationship on the Price Sensitivity and Actual Market Acceptance Degree of Metallic Materials

    Directory of Open Access Journals (Sweden)

    Jing Muxue

    2017-01-01

    Full Text Available In order to find out the relationship between the price sensitivity and actual market acceptance degree of metallic materials, the database ensemble learning model is proposed in this paper. Due to the variety and class imbalance of customers, a database marketing model based on supervised clustering and ensemble learning is used for the model. The results show that the database ensemble learning model can thus improve the calculation accuracy and time-efficiency substantially.

  12. A Non-linear "Inflation-Relative Prices Variability" Relationship: Evidence from Latin America

    OpenAIRE

    Mª Ángeles Caraballo Pou; Carlos Dabús; Diego Caramuta

    2006-01-01

    This paper presents evidence on a non-linear "inflation-relative prices variability" relationship in three Latin American countries with very high inflation experiences: Argentina, Brazil and Peru. More precisely, and in contrast to results found in previous literature for similar countries, we find a non-concave relation at higher inflation regimes, i.e. when inflation rate surpasses certain threshold. This non-concavity is mainly explained by the unexpected component of inflation, which sug...

  13. Labor demand effects of rising electricity prices: Evidence for Germany

    International Nuclear Information System (INIS)

    Cox, Michael; Peichl, Andreas; Pestel, Nico; Siegloch, Sebastian

    2014-01-01

    Germany continues to play a pioneering role in replacing conventional power plants with renewable energy sources. While this might be beneficial with respect to environmental quality, it also implies increasing electricity prices. The extent to which this is associated with negative impacts on employment depends on the interrelationship between labor and electricity as input factors in the production process. In this paper, we estimate cross-price elasticities between electricity and heterogeneous labor for the German manufacturing sector. We use administrative linked employer–employee micro-data combined with information on sector-level electricity prices and usage over the period 2003–2007. We find positive, but small conditional cross-price elasticities of labor demand with respect to electricity prices, which means that electricity as an input factor can be replaced by labor to a limited extent when the production level is held constant. In the case of adjustable output, we find negative unconditional cross-price elasticities, implying that higher electricity prices lead to output reductions and to lower labor demand, with low- and high-skilled workers being affected more than medium-skilled. Resulting adverse distributional effects and potential overall job losses may pose challenges for policy-makers in securing public support for the German energy turnaround. - Highlights: • We estimate cross-price elasticities for electricity and labor in manufacturing. • We use linked employer–employee micro-data from Germany for 2003 to 2007. • We find a weak substitutability between electricity and labor for constant output. • We find complementarity between electricity and labor for adjustable output. • Low- and high-skilled workers are more affected than medium-skilled

  14. Effects of reference pricing in pharmaceutical markets: a review.

    Science.gov (United States)

    Galizzi, Matteo Maria; Ghislandi, Simone; Miraldo, Marisa

    2011-01-01

    This work aims to provide a systematic and updated survey of original scientific studies on the effect of the introduction of reference pricing (RP) policies in Organisation for Economic Co-operation and Development (OECD) countries. We searched PubMed, EconLit and Web of Knowledge for articles on RP. We reviewed studies that met the inclusion criteria established in the search strategy. From a total of 468 references, we selected the 35 that met all of the inclusion criteria. Some common themes emerged in the literature. The first was that RP was generally associated with a decrease in the prices of the drugs subject to the policy. In particular, price drops seem to have been experienced in virtually every country that implemented a generic RP (GRP) policy. A GRP policy applies only to products with expired patents and generic competition, and clusters drugs according to chemical equivalence (same form and active compound). More significant price decreases were observed in the sub-markets in which drugs were already facing generic competition prior to RP. Price drops varied widely according to the amount of generic competition and industrial strategies: brand-named drugs originally priced above RP values decreased their prices to a greater extent. A second common theme was that both therapeutic RP (TRP) and GRP have been associated with significant and consistent savings in the first years of application. A third general result is that generic market shares significantly increased whenever the firms producing brand-named drugs did not adopt one of the following strategies: lowering prices to RP values; launching new dosages and/or formulations; or marketing substitute drugs still under patent protection. Finally, concerning TRP, although more evidence is needed, studies based on a large number of patient-level observations showed no association between the RP policy and health outcomes.

  15. A model for the effects of psychological pricing in Gabor-Granger price studies

    NARCIS (Netherlands)

    Wedel, M; Leeflang, PSH

    We present a model of consumers' price sensitivity that explicitly deals with the existence of so-called psychological price levels or odd prices, i.e. prices ending in an odd number. The model is formulated in a latent class framework, in which splines are used to model utility as a function of

  16. Effects of beverage alcohol price and tax levels on drinking: a meta-analysis of 1003 estimates from 112 studies.

    Science.gov (United States)

    Wagenaar, Alexander C; Salois, Matthew J; Komro, Kelli A

    2009-02-01

    We conducted a systematic review of studies examining relationships between measures of beverage alcohol tax or price levels and alcohol sales or self-reported drinking. A total of 112 studies of alcohol tax or price effects were found, containing 1003 estimates of the tax/price-consumption relationship. Studies included analyses of alternative outcome measures, varying subgroups of the population, several statistical models, and using different units of analysis. Multiple estimates were coded from each study, along with numerous study characteristics. Using reported estimates, standard errors, t-ratios, sample sizes and other statistics, we calculated the partial correlation for the relationship between alcohol price or tax and sales or drinking measures for each major model or subgroup reported within each study. Random-effects models were used to combine studies for inverse variance weighted overall estimates of the magnitude and significance of the relationship between alcohol tax/price and drinking. Simple means of reported elasticities are -0.46 for beer, -0.69 for wine and -0.80 for spirits. Meta-analytical results document the highly significant relationships (P price measures and indices of sales or consumption of alcohol (aggregate-level r = -0.17 for beer, -0.30 for wine, -0.29 for spirits and -0.44 for total alcohol). Price/tax also affects heavy drinking significantly (mean reported elasticity = -0.28, individual-level r = -0.01, P prices and taxes are related inversely to drinking. Effects are large compared to other prevention policies and programs. Public policies that raise prices of alcohol are an effective means to reduce drinking.

  17. Crude oil price dynamics: A study on effects of market expectation and strategic supply on price movements

    Science.gov (United States)

    Jin, Xin

    Recent years have seen dramatic fluctuations in crude oil prices. This dissertation attempts to better understand price behavior. The first chapter studies the behavior of crude oil spot and futures prices. Oil prices, particularly spot and short-term futures prices, appear to have switched from I(0) to I(1) in early 2000s. To better understand this apparent change in persistence, a factor model of oil prices is proposed, where the prices are decomposed into long-term and short-term components. The change in the persistence behavior can be explained by changes in the relative volatility of the underlying components. Fitting the model to weekly data on WTI prices, the volatility of the persistent shocks increased substantially relative to other shocks. In addition, the risk premiums in futures prices have changed their signs and become more volatile. The estimated net marginal convenience yield using the model also shows changes in its behavior. These observations suggest that a dramatic fundamental change occurred in the period from 2002 to 2004 in the dynamics of the crude oil market. The second chapter explores the short-run price-inventory dynamics in the presence of different shocks. Classical competitive storage model states that inventory decision considers both current and future market condition, and thus interacts with spot and expected future spot prices. We study competitive storage holding in an equilibrium framework, focusing on the dynamic response of price and inventory to different shocks. We show that news shock generates response profile different from traditional contemporaneous shocks in price and inventory. The model is applied to world crude oil market, where the market expectation is estimated to experience a sharp change in early 2000s, together with a persisting constrained supply relative to demand. The expectation change has limited effect on crude oil spot price though. The world oil market structure has been studied extensively but no

  18. Effects of interest rate, exchange rate and their volatilities on stock prices: evidence from banking industry of Pakistan

    Directory of Open Access Journals (Sweden)

    Syed Tehseen JAWAID

    2012-08-01

    Full Text Available This study investigates the effects of exchange rate, interest rates, and their volatilities on stock prices of banking industry of Pakistan. Cointegration results suggests the existance of significant negative long run relationship between exchange rate and short term interest rate with stock prices. On the other hand, positive and significant relationship exists between volatilities of exchange rate and interest rate with stock prices. Causality analysis confirms bidirectional causality between exchange rate and stock prices. Whereas, unidirectional causality runs from short term interest rate to stock prices. Sensitivity analysis confirms that the results are robust. It is suggested that investors should invest in banking sector stocks when exchange rate and interest rates are highly volatile. The result also supports the view that exchange rate and interest rate can be used as an indicator for investment decision making in banking sector stocks.

  19. Domestic and foreign effects on prices in an open economy

    DEFF Research Database (Denmark)

    Juselius, Katarina

    1992-01-01

    Domestic price determination in Denmark is investigated using three kinds of macroeconomic explanations: (1) internal labor market theories describing the relation between price and wage inflation, (2) pure monetarist theories describing the effect of excess money on the inflation rate. and (3...... found to be the main determinants of the inflation rate. Among these, the domestic effects were small compared to the foreign effects. The empirical results strongly favored a backward-looking behavioral model in terms of structurally stable parameters as opposed to a forward-looking expectations model...

  20. On the relationship between financial measures and contractor pricing strategy: Empirical tests in the defense aerospace industry

    OpenAIRE

    Moses, O. Douglas

    1987-01-01

    This report includes two separate but related empirical studies of the relationship between financial measures for defense aerospace contractors and pricing strategies adopted by contractors. Two pricing strategies are identified: skimming and penetration. Collectively the findings indicate that the adoption of a particular pricing strategy is associated with the financial condition of the contractor as reflected in measures of risk, asset utilization and organizational slack. Keywords: Finan...

  1. Effects of food price shocks on child malnutrition

    DEFF Research Database (Denmark)

    Arndt, Thomas Channing; Hussain, M. Azhar; Salvucci, Vincenzo

    2016-01-01

    A propitiously timed household survey carried out in Mozambique over the period 2008/2009 permits us to study the relationship between shifts in food prices and child nutrition status in a low income setting. We focus on weight-for-height and weight-for-age in different survey quarters characteri...... production year, as substantially increasing malnutrition amongst under-five children in Mozambique....

  2. The Effects of Inflation and Pricing Policies on College Enrollments.

    Science.gov (United States)

    Ostar, Allan W.

    Some of the effects of inflation and pricing policies on college costs are discussed, and it is shown that rising college costs have a negative effect upon student opportunity and access. Continual escalation of tuition and fees can lead to a shrinking of the higher education enterprise. Federal efforts (and state efforts to the extent that they…

  3. Relationship Between Energy Prices, Monetary Policy and Inflation; A Case Study of South Asian Economies

    Directory of Open Access Journals (Sweden)

    Atiq-ur-Rehman

    2014-01-01

    Full Text Available Monetary policy tools, including money supply and interest rate, are the most popular instruments to control inflation around the globe. It is assumed that a tight monetary policy, either in form of reduction in money supply or an increase in interest rate, will reduce inflation by reducing aggregate demand in an economy. However, monetary policy could be counterproductive if cost side effects of monetary tightening prevail. High energy prices may increase the cost of production by reducing aggregate supply in the economy. If tight monetary policy is used to reduce this cost push inflation, the cost side effect of energy prices will add to cost side effects of monetary tightening and will become dominant. In this case, the monetary policy could be counterproductive. Furthermore, simultaneous reduction in aggregate supply and aggregate demand will bring twofold reduction in output. Therefore greater care is needed in the use of monetary policy in the situation of cost push inflation. This article investigates the presence of cost side effect of monetary transmission mechanism, the role of international oil prices in domestic inflation, and implications for monetary policy. The findings suggest that both monetary policy and oil prices have cost side effects on inflation and monetary tightening could be counterproductive if used to reduce energy pushed inflationary trend.

  4. On the Output-Inflation Relationship When Price and Quantity Adjustments are Costly

    DEFF Research Database (Denmark)

    Danziger, Leif; Kreiner, Claus Thustrup

    A vast literature analyzes the real effects of price-adjustment costs assuming that quantity adjustments are costless. In this paper, we analyze whether the presence of quantity-adjustments costs, which presumably are significant, change the traditional results on the impact of inflation....... In particular, recent findings suggest that quantity-adjustment costs may remove the linkage between output and inflation. We show that this is not the case when inflation is anticipated. On the contrary, quantity-adjustment costs may significantly amplify the consequences of price-adjustment costs...

  5. Relationship between the Uncompensated Price Elasticity and the Income Elasticity of Demand under Conditions of Additive Preferences.

    Science.gov (United States)

    Sabatelli, Lorenzo

    2016-01-01

    Income and price elasticity of demand quantify the responsiveness of markets to changes in income and in prices, respectively. Under the assumptions of utility maximization and preference independence (additive preferences), mathematical relationships between income elasticity values and the uncompensated own and cross price elasticity of demand are here derived using the differential approach to demand analysis. Key parameters are: the elasticity of the marginal utility of income, and the average budget share. The proposed method can be used to forecast the direct and indirect impact of price changes and of financial instruments of policy using available estimates of the income elasticity of demand.

  6. Relationship between the Uncompensated Price Elasticity and the Income Elasticity of Demand under Conditions of Additive Preferences.

    Directory of Open Access Journals (Sweden)

    Lorenzo Sabatelli

    Full Text Available Income and price elasticity of demand quantify the responsiveness of markets to changes in income and in prices, respectively. Under the assumptions of utility maximization and preference independence (additive preferences, mathematical relationships between income elasticity values and the uncompensated own and cross price elasticity of demand are here derived using the differential approach to demand analysis. Key parameters are: the elasticity of the marginal utility of income, and the average budget share. The proposed method can be used to forecast the direct and indirect impact of price changes and of financial instruments of policy using available estimates of the income elasticity of demand.

  7. Causal Relationship Between Islamic Bonds, Oil Price and Precious Metals: Evidence From Asia Pacific

    Directory of Open Access Journals (Sweden)

    Metadjer Widad

    2018-05-01

    Full Text Available Sukuk or Islamic bonds as new “Halal” securities had wildly expanded in Muslim and non-Muslim capital markets. So, this study aims to investigate the causal relationship between Islamic bonds (sukuk, oil and precious metals “silver and gold” prices in Asia pacific. This study used VAR model relying on daily data. The findings of Granger causality test and impulse-responses analysis results provide substantial evidence in favor of the relation between sukuk and the commodity market variables (oil, gold, and silver meanwhile and unlike many empirical studies, don’t we have found that oil doesn’t cause changes in precious metals prices. Therefore, the idea that Islamic financial markets provide diversification benefits and they are safe havens during oil crisis cannot be supported empirically.DOI: 10.15408/aiq.v10i2.7171

  8. Effectiveness of tax and price policies in tobacco control.

    Science.gov (United States)

    Chaloupka, Frank J; Straif, Kurt; Leon, Maria E

    2011-05-01

    Over 20 experts on economics, epidemiology, public policy and tobacco control were asked by the International Agency for Research on Cancer (IARC) to evaluate the strength of the available evidence on the effects of tax and price policies to prevent and reduce tobacco use. Draft papers presenting and assessing the evidence on the following topics were developed by the experts in an 8-month period prior to the meeting: tobacco industry pricing strategies and tax related lobbying; tax, price and aggregate demand for tobacco; tax, price and adult tobacco use, use among young people and use among the poor; tax avoidance and tax evasion; and the economic and health impact of tobacco taxation. Subsequently, papers were peer reviewed, revised and resubmitted for final discussion at a 6-day meeting at IARC in Lyon, France, where a consensus evaluation of 18 concluding statements using the pre-established criteria of the IARC Cancer Prevention Handbooks took place. Studies published (or accepted for publication) in the openly available scientific literature were the main source of evidence for the review and evaluation; other types of publications were included when appropriate. In support of 12 of the 18 conclusions, the experts agreed that there was sufficient evidence of effectiveness of increased tobacco excise taxes and prices in reducing overall tobacco consumption and prevalence of tobacco use and improvement of public health, including by preventing initiation and uptake among young people, promoting cessation among current users and lowering consumption among those who continue to use. For the remaining six concluding statements the evidence was strong (four statements) or limited (two statements). The evidence presented and assessed in IARC Handbook volume 14 documents the effectiveness of tax and price policies in the control of tobacco use and improvement of public health.

  9. The Empirical Analysis of the Dynamic Prices Relationship between Cotton Spot Market and Futures Market in Xinjiang

    Institute of Scientific and Technical Information of China (English)

    2011-01-01

    The thesis analyzes the causal relationship between the cotton spot,and the tendency and impact of prices of futures markets in Xinjiang by using ADF test,co-integration analysis,Granger causality test and other econometric methods in order to discuss the interacted relationship between futures market prices of cotton and spot market prices since the futures of cotton in Xinjiang go public.The results of empirical analysis show that the spot market prices of cotton and the futures market prices in Xinjiang fluctuate prominently in the short run and tend to counterpoise in the long run;the futures market of cotton plays the role of leading the spot market prices of cotton in Xinjiang,while the spot market prices of cotton in Xinjiang impacts little on the futures market prices.The corresponding countermeasures are put forward.The government should continuously perfect the construction of the futures market of cotton in Xinjiang,so as to exert the function of price discovery and the function of hedging,and promote the development of cotton industry in Xinjiang.

  10. The effects of the vegetable prices insurance on the fluctuation of price: Based on Shanghai evidences

    Science.gov (United States)

    Qu, Chunhong; Li, Huishang; Hao, Shuai; Zhang, Xuebiao; Yang, Wei

    2017-10-01

    Taking Shanghai as an example, the influence of the vegetable price insurance on the fluctuation of prices was analyzed in the article. It was found that the sequence of seasonal fluctuations characteristics of leafy vegetable prices was changed by the vegetable cost-price insurance, the period of price fluctuation was elongated from 12-to-18 months to 37 months, and the influence of random factors on the price fluctuations was reduced in some degree. There was still great space for innovation of the vegetable prices insurance system in Shanghai. Some countermeasures would be suggested to develop the insurance system to better to play the role of insurance and promote the market running more smoothly in Shanghai such as prolonging the insurance cycle, improving the price information monitoring mechanism and innovating income insurance products and so on.

  11. Price vector effects in choice experiments: an empirical test

    International Nuclear Information System (INIS)

    Hanley, Nick; Wright, Robert E.; Adamowicz, Wiktor

    2005-01-01

    This paper investigates whether the preference and willingness-to-pay estimates obtained from the choice experiment method of estimating non-market values are sensitive to the vector of prices used in the experimental design. We undertake this test in the context of water quality improvements under the European Union's new Water Framework Directive. Using a mixed logit model, which allows for differing scale between the two samples, we find no significant impact of changing the price vector on estimates of preferences or willingness-to-pay. (author) (Choice modelling; Non-market valuation; Design effects; Water Framework Directive)

  12. The Pricing Effects of Heritage at an Iconic Hotel

    Directory of Open Access Journals (Sweden)

    Bradford T. Hudson

    2015-05-01

    Full Text Available Historic hotels are a recognized product type in the lodging industry and may be found in significant numbers throughout the globe. The purpose of this article is to validate the notion that heritage can be an important element of the consumer value proposition for older hotels, by demonstrating that an iconic hotel with a distinct historical identity is able to attain a price premium over newer hotels with comparable operating characteristics. This exploratory study is based on qualitative field research conducted by the author, and quantitative analysis of pricing data that was collected by a regional hotel industry association over a five year period. The author concludes that heritage does indeed have a positive effect on the ability to attain a price premium at historic hotels, especially for leisure travelers.

  13. Advertising and price effectiveness over the business cycle

    NARCIS (Netherlands)

    Gijsenberg, Maarten; van Heerde, Harald; Dekimpe, Marnik G.; Steenkamp, Jan-Benedict E. M.

    2009-01-01

    In this study, the authors conduct a systematic investigation on the evolution in the effectiveness of two important marketing mix instruments, advertising and price, over the business cycle. Analyses are based on 163 branded products in 37 mature CPG categories in the UK, and this for a period of

  14. The Effects of Market Structure on Television News Pricing.

    Science.gov (United States)

    Wirth, Michael O.; Wollert, James A.

    Multiple regression techniques were used to examine the business side of local television news operations for November 1978. Research questions examined the effect of several variables on local television news prices (advertising rates), including type of ownership, network affiliation/signal type, market size, cable network penetration, market…

  15. Investor structure and the price-volume relationship in a continuous double auction market: An agent-based modeling perspective

    Science.gov (United States)

    Zhang, Wei; Bi, Zhengzheng; Shen, Dehua

    2017-02-01

    This paper investigates the impact of investor structure on the price-volume relationship by simulating a continuous double auction market. Connected with the underlying mechanisms of the price-volume relationship, i.e., the Mixture of Distribution Hypothesis (MDH) and the Sequential Information Arrival Hypothesis (SIAH), the simulation results show that: (1) there exists a strong lead-lag relationship between the return volatility and trading volume when the number of informed investors is close to the number of uninformed investors in the market; (2) as more and more informed investors entering the market, the lead-lag relationship becomes weaker and weaker, while the contemporaneous relationship between the return volatility and trading volume becomes more prominent; (3) when the informed investors are in absolute majority, the market can achieve the new equilibrium immediately. Therefore, we can conclude that the investor structure is a key factor in affecting the price-volume relationship.

  16. Does Competition Have an Effect on Price and Quality in Physiotherapy?

    Science.gov (United States)

    Pekola, Piia; Linnosmaa, Ismo; Mikkola, Hennamari

    2017-10-01

    We estimate the effect of competition on quality and prices in physiotherapy organised and financed by the Social Insurance Institution of Finland for disabled individuals. Within the physiotherapy market, firms participate in competitive bidding, prices are determined by the market, services are free at the point of use and firms are allowed to react to patient choice only by enhancing quality. Firm-level data (n = 854) regarding quality and price were analysed. Using 2SLS estimation techniques, we analysed the relationship between quality and competition, and price and competition. Our study found that competition has a negative (yet weak) effect on quality. Prices on the other hand are not affected by competition. The result is likely caused by imperfect information, because it seems that the Social Insurance Institution of Finland has provided too little information for patients to make adequate choices about proper service providers. We argue that by publishing quality information, it is possible to ease the decision-making of patients and influence the quality strategies of firms active in the physiotherapy market. Moreover, we found that competition appeared as an exogenous variable in this study. Copyright © 2016 John Wiley & Sons, Ltd. Copyright © 2016 John Wiley & Sons, Ltd.

  17. Evidence on the nature and extent of the relationship between oil prices and equity values in the UK

    International Nuclear Information System (INIS)

    El-Sharif, Idris; Brown, Dick; Burton, Bruce; Nixon, Bill; Russell, Alex

    2005-01-01

    A number of recent studies have found a link between movements in crude oil prices and equity values. However, the literature concentrates almost exclusively on North American and Australian data and is primarily conducted at a stock market-wide level. The present study therefore investigates the relationship between the price of crude oil and equity values in the oil and gas sector using data relating to the United Kingdom, the largest oil producer in the European Union. The evidence indicates that the relationship is always positive, often highly significant and reflects the direct impact of volatility in the price of crude oil on share values within the sector. (Author)

  18. The Effects of High and Volatile Oil Prices

    International Nuclear Information System (INIS)

    Artus, Patrick; Autume, Antoine d'; Chalmin, Philippe; Chevalier, Jean-Marie; Coeure, Benoit; Kalantizs, Yannick; Klein, Caroline; Guesnerie, Roger; Callonnec, Gael; Gaudin, Thomas; Moisan, Francois; Lescaroux, Francois; Clerc, Marie; Marcus, Vincent; Lalanne, Guy; Pouliquen, Erwan; Simon, Olivier; Mignon, Valerie

    2010-01-01

    demand into play (this is estimated at around 0.2 in the short term and around 0.4 over the longer term for fuel demand) and possibly caused behavioural changes such as those seen in France and described in the report. The other explanation is related to energy and environmental policies, which have helped reduce oil demand. However, the strong growth expected in emerging markets is likely to increase global demand for oil by several million barrels per day by 2014. This reflects the expectation that the number of cars on the road worldwide will double by 2030, and it seems unlikely that tougher environmental constraints will contain these trends. Half of this growth will come from Asia. Such an increase in global oil demand will only be sustainable if it is accompanied by higher prices that will enable the exploitation of new unconventional oil fields or fields with high production costs. As regards volatility, the authors first repeat that there are real determinants at play: the level of oil prices encourages or discourages investment in production capacity. Low oil prices slow capacity investments and therefore limit future supply, which then causes prices to rise, thereby providing an incentive to invest and develop supply. However, neither these (endogenous) irregularities in the investment programs of oil companies and exporting countries nor changing demand trends alone can account for the sharp rise in prices between 2002 and 2008 and the very sudden drop that followed in July-August 2008. A number of observers believe that the explanation lies in speculation on the oil market. The report's authors sift through all the arguments for and against this theory. While it is undeniable that speculation has developed on the oil futures market, the authors question two key points: was this speculation really focused on an oil price rally, and could it have such a significant retroactive effect on spot prices? Their conclusions recognise that speculation was indeed

  19. The relationship between electricity consumption, electricity prices and GDP in Pakistan

    International Nuclear Information System (INIS)

    Jamil, Faisal; Ahmad, Eatzaz

    2010-01-01

    This study analyzes the relationship among electricity consumption, its price and real GDP at the aggregate and sectoral level in Pakistan. Using annual data for the period 1960-2008, the study finds the presence of unidirectional causality from real economic activity to electricity consumption. In particular, growth in output in commercial, manufacturing and agricultural sectors tend to increase electricity consumption, while in residential sector, growth in private expenditures is the cause of rising electricity consumption. The study concludes that electricity production and management needs to be better integrated with overall economic planning exercises. This is essential to avoid electricity shortfalls and unplanned load shedding.

  20. The effect of house price changes on cohort consumption in Turkey

    Directory of Open Access Journals (Sweden)

    Evren Ceritoğlu

    2017-09-01

    Full Text Available This paper analyzes the relationship between house prices and household consumption in Turkey. We utilize twelve consecutive waves of the Turkish Statistical Institute (TURKSTAT Household Budget Surveys (HBS from 2003 to 2014. We construct a pseudo-panel data set using birth-year cohorts following Deaton (1985. We find that house price changes have a positive and significant effect on the growth of cohort consumption. Moreover, the effect of house price changes is stronger for home-owners and it intensifies as we move from young cohorts to old cohorts. We observe that there is a marginally significant and relatively weak relationship between the growth of cohort consumption and house price changes for tenants. However, our pooled sample set is restricted to young and middle-aged cohorts for tenants. In addition, we find that the rise of home-ownership ratio increases the growth of cohort consumption, while the spread of having outstanding housing debt depresses the growth of cohort consumption. Therefore, our empirical findings are in favor of the wealth channel argument.

  1. The effect of state renewable portfolio standards on consumer participation in green pricing programs

    Science.gov (United States)

    Maltese, James L.

    In the last several years, two mechanisms for increasing the supply of renewable electricity have become increasingly popular: renewable portfolio standards, a state policy of mandating increased production of green power; and green pricing programs, which allow customers to purchase green power through their utilities. These mechanisms have been effective in increasing the adoption of renewable energy; however, it is unclear whether they interact in a way that is mutually beneficial or counterproductive. It is important to understand the effect of renewable portfolio standards on the voluntary market for green energy, especially as Congress considers a nationwide portfolio standard. The effectiveness of a renewable portfolio standard may be undercut if it leads customers to purchase less green power. This study analyzes the relationship between the passage and implementation of a renewable portfolio standard and two measures of enrollment in utility green pricing programs. Using eight years of data for all fifty states, the study utilizes multiple regression analysis with fixed-effects estimation. The results indicate that the passage of a renewable portfolio standard has a positive and statistically significant effect on green pricing enrollment within the state. At the same time, the rate at which states increase the stringency of the renewable portfolio standard is found to have no effect on enrollment. Although further study is needed to determine if additional factors are responsible for the observed increase in green pricing enrollment, this study provides evidence that such programs do not harm, and may in fact encourage, voluntary purchases of green power.

  2. Exploring the relationship between cigarette prices and smoking among adults: a cross-country study of low- and middle-income nations.

    Science.gov (United States)

    Kostova, Deliana; Tesche, Jean; Perucic, Anne-Marie; Yurekli, Ayda; Asma, Samira

    2014-01-01

    Evidence on the relationship between cigarette prices and adult smoking in low- and middle-income countries (LMICs) is relatively limited. This study offers new descriptive evidence on this relationship using data from a set of 13 LMICs. We use Global Adult Tobacco Survey (GATS) cross-country data from approximately 200,000 participants aged 15 and older. Estimates on the relationship between prices and adult smoking were obtained from logit models of smoking participation and ordinary least squares models of conditional cigarette demand. Higher prices were associated with lower demand across countries, in terms of both smoking prevalence and daily number of cigarettes smoked among smokers. Our estimates suggest that the total price elasticity of cigarette demand in LMICs is approximately -0.53. We find that higher socioeconomic status (SES), represented through wealth and education effects is associated with lower chance of smoking overall, but among existing smokers, it may be associated with a larger number of cigarettes smoked. After controlling for a set of individual demographic and country characteristics, cigarette prices retain a significant role in shaping cigarette demand across LMICs. Because higher SES is associated with a reduced chance of smoking overall but also with increased daily consumption among current smokers, optimal tobacco tax policies in LMICs may face an added need to accommodate to shifting SES structures within the populations of these countries.

  3. Long-term projections for electricity and gas prices

    International Nuclear Information System (INIS)

    Borggrefe, Frieder; Lochner, Stefan

    2009-01-01

    The article analyses potential developments of wholesale electricity prices in Germany until 2030. The relevant determinants and their effects on prices are shown. Several projections demonstrate the impact of future fuel prices taking the political framework into account. The importance of carbon and gas prices - and the latter's relationship to oil prices - are discussed extensively. Although forecasting electricity prices is associated with great uncertainties, the article illustrates the relative impacts of the various price determinants and their interactions. (orig.)

  4. Obtaining fruit and vegetables for the lowest prices: pricing survey of different outlets and geographical analysis of competition effects.

    Science.gov (United States)

    Pearson, Amber L; Winter, Pieta R; McBreen, Ben; Stewart, Georgia; Roets, Rianda; Nutsford, Daniel; Bowie, Christopher; Donnellan, Niamh; Wilson, Nick

    2014-01-01

    Inadequate fruit and vegetable (F&V) consumption is an important dietary risk factor for disease internationally. High F&V prices can be a barrier to dietary intake and so to improve understanding of this topic we surveyed prices and potential competition between F&V outlet types. Over a three week early autumn period in 2013, prices were collected bi-weekly for 18 commonly purchased F&Vs from farmers' markets (FM) selling local produce (n = 3), other F&V markets (OFVM) (n = 5), supermarkets that neighbored markets (n = 8), and more distant supermarkets (n = 8), (in urban Wellington and Christchurch areas of New Zealand). Prices from an online supermarket were also collected. A total of 3120 prices were collected. Most F&Vs (13/18) were significantly cheaper at OFVMs than supermarkets. Over half of the F&Vs (10/18) were significantly cheaper at nearby compared to distant supermarkets, providing evidence of a moderate 'halo effect' in price reductions in supermarkets that neighbored markets. Weekend (vs midweek) prices were also significantly cheaper at nearby (vs distant) supermarkets, supporting evidence for a 'halo effect'. Ideal weekly 'food basket' prices for a two adult, two child family were: OFVMs (NZ$76), online supermarket ($113), nearby supermarkets ($124), distant supermarkets ($127), and FMs ($138). This represents a savings of $49 per week (US$26) by using OFVMs relative to (non-online) supermarkets. Similarly, a shift from non-online supermarkets to the online supermarket would generate a $13 saving. In these locations general markets appear to be providing some substantially lower prices for fruit and vegetables than supermarkets. They also appear to be depressing prices in neighboring supermarkets. These results, when supplemented by other needed research, may help inform the case for interventions to improve access to fruit and vegetables, particularly for low-income populations.

  5. Obtaining fruit and vegetables for the lowest prices: pricing survey of different outlets and geographical analysis of competition effects.

    Directory of Open Access Journals (Sweden)

    Amber L Pearson

    Full Text Available AIMS: Inadequate fruit and vegetable (F&V consumption is an important dietary risk factor for disease internationally. High F&V prices can be a barrier to dietary intake and so to improve understanding of this topic we surveyed prices and potential competition between F&V outlet types. METHODS: Over a three week early autumn period in 2013, prices were collected bi-weekly for 18 commonly purchased F&Vs from farmers' markets (FM selling local produce (n = 3, other F&V markets (OFVM (n = 5, supermarkets that neighbored markets (n = 8, and more distant supermarkets (n = 8, (in urban Wellington and Christchurch areas of New Zealand. Prices from an online supermarket were also collected. RESULTS: A total of 3120 prices were collected. Most F&Vs (13/18 were significantly cheaper at OFVMs than supermarkets. Over half of the F&Vs (10/18 were significantly cheaper at nearby compared to distant supermarkets, providing evidence of a moderate 'halo effect' in price reductions in supermarkets that neighbored markets. Weekend (vs midweek prices were also significantly cheaper at nearby (vs distant supermarkets, supporting evidence for a 'halo effect'. Ideal weekly 'food basket' prices for a two adult, two child family were: OFVMs (NZ$76, online supermarket ($113, nearby supermarkets ($124, distant supermarkets ($127, and FMs ($138. This represents a savings of $49 per week (US$26 by using OFVMs relative to (non-online supermarkets. Similarly, a shift from non-online supermarkets to the online supermarket would generate a $13 saving. CONCLUSIONS: In these locations general markets appear to be providing some substantially lower prices for fruit and vegetables than supermarkets. They also appear to be depressing prices in neighboring supermarkets. These results, when supplemented by other needed research, may help inform the case for interventions to improve access to fruit and vegetables, particularly for low-income populations.

  6. The dynamics of a nonlinear relationship between crude oil spot and futures prices. A multivariate threshold regression approach

    International Nuclear Information System (INIS)

    Huang, Bwo-Nung; Yang, C.W.; Hwang, M.J.

    2009-01-01

    This paper segments daily data from January of 1986 to April of 2007 into three periods based on certain important events. Both periods I and II indicate that the spot prices in general are higher than futures prices as was well-known in the literature. Only period-III (2001/9/11-2007/4/30) displays a reverse phenomenon: futures prices, in general, exceed spot prices. When the absolute value of a basis (futures-spot) is greater than the threshold value in the arbitrage area (regime 1 and 3), at least one of the error correction coefficients, representing adjustment towards equilibrium, is statistically significant. That is, there exists a tendency in the oil market in which prices move toward equilibrium. With respect to the short-run dynamic interaction between spot price change ((delta)s t ) and futures price change ((delta)f t ), our results indicate that when the spot price is higher than futures price, and the basis is less than certain threshold value (regime 3), there exists at least one causal relationship between (delta)s t and (delta)f t . Conversely, when the futures price is higher than spot price and the basis is higher than certain threshold value (regime 1), there exists at least one causal relationship between (delta)s t and (delta)f t . Finally, we use the method suggested by Diebold and Mariano [Diebold, Francis X., Mariano, Roberto S., 1995. Comparing predictive accuracy. Journal of Business and Economic Statistics 13 (3), 253-263] to compare the predictive power between the linear and nonlinear models. Our empirical results indicate that the in-sample prediction of the nonlinear model is clearly superior to that of the linear model. (author)

  7. The effect of electricity prices on industry in Germany

    International Nuclear Information System (INIS)

    Roepenack, A. von

    1992-01-01

    The contribution gives a survey of the general consumption of electricity in the (former) Federal Republic of Germany from 1980 until 1990 and illustrates the effect of electricity prices on industry - safety of the site, competition, influences on prices for electricity, intensity of electricity, comparison to gross increase in value. In addition, the influence of politics on electricity prices is examined. Among other things, we owe the success of our industry on the international market to the increase in our use of electric power. This is the basis of our success in rationalization and our status on the world market. The dependency of industry and industrial products on this form of energy has increased and will continue to do so. Thus the politicians have little room to act if they do not want to influence industry in a negative way. On the basis of the situation described here, electricity prices which are competitive internationally are an essential prerequisite for the future of our economy. (orig./HSCH) [de

  8. The effect of proportional v. value pricing on fountain drink purchases: results from a field experiment.

    Science.gov (United States)

    Gollust, Sarah E; Tang, Xuyang; Runge, Carlisle Ford; French, Simone A; Rothman, Alexander J

    2018-05-15

    Reducing sugar-sweetened beverage consumption is a public health priority, yet finding an effective and acceptable policy intervention is challenging. One strategy is to use proportional pricing (a consistent price per fluid ounce) instead of the typical value-priced approach where large beverages offer better value. The purpose of the present study was to evaluate whether proportional pricing affects the purchasing of fountain beverages at a university cinema concession stand. Four price strategies for beverages were evaluated over ten weekends of film screenings. We manipulated two factors: the price structure (value pricing v. proportional pricing) and the provision of information about the price per fluid ounce (labels v. no labels). The key outcomes were the number and size of beverages purchased. We analysed data using regression analyses, with standard errors clustered by film and controlling for the day and time of purchase. A university cinema concession stand in Minnesota, USA, in spring 2015. University students. Over the study period (360 beverages purchased) there were no significant effects of the proportional pricing treatment. Pairing a label with the standard value pricing increased the likelihood of purchasing large drinks but the label did not affect purchasing when paired with proportional pricing. Proportional prices did not significantly affect the size of beverages purchased by students at a university cinema, but adding a price-per-ounce label increased large drink purchases when drinks were value-priced. More work is needed to address whether pricing and labelling strategies might promote healthier beverage purchases.

  9. Prices of agricultural commodities, biofuels and fossil fuels in long-run relationships: a comparative study for the USA and Europe

    DEFF Research Database (Denmark)

    Groth, Tanja; Bentzen, Jan

    2013-01-01

    Time-series data for the USA and Europe representing prices of agricultural commodities, biofuels and fossil fuels are used for a comparative analysis of long-run price relationships. There is some evidence for cointegration between ethanol and gasoline, especially for the USA, and in the case...... of biodiesel, stronger evidence of cointegration between biodiesel, diesel and soya oil for both the USA and Europe. Finally, biofuel prices do not seem to influence agricultural commodity prices or fossil fuel prices....

  10. CONTAGIOUS EFFECTS OF OIL PRICES ON ASIAN STOCK MARKETS’ BEHAVIOUR

    Directory of Open Access Journals (Sweden)

    Jok-Tong Wan

    2016-05-01

    Full Text Available The main objective of this study is to examine the stock markets’ shock due to the effect of the price of oil in the East Asia Region. Particularly, this study examines if there is stock market interdependence during global oil price shocks (sudden changes for a sample of five total oil importers (the Philippines, Hong Kong SAR, Taiwan, South Korea, and Japan, four net oil importers (Indonesia, Singapore, Thailand, and China, and one net oil exporter (Malaysia between 1999 and 2014. From the result, an oil price change is collectively found to have a small but significant positive impact on the stock markets, in particular where a sudden decrease in oil prices tends to cause a stock market downturn and volatility. The world economy’s spending, financial investments in oil futures and foreign investment by oil rich nations are some underlying motives for inducing this oil-stock positive relation. The same direction of time-varying conditional correlations is found across East Asian stock markets during negative oil price shocks. The integration among East Asian stock markets is inducing the oil shock contagion to be transmitted from direct oil-affected countries (South Korea, Hong Kong, and Singapore to non-direct oil affected countries’ (Japan and Taiwan stock markets. In spite of a long practiced ASEAN+3 macroeconomics surveillance process and Early Warning System (EWS which can be customized for stock markets to prevent or detect the oil risk, hedging against initial oil-affected stock markets and a stronger influence by the East Asian countries in the global world of oil and capital investment are strongly suggested.

  11. Effects of long-term price increases for oil

    International Nuclear Information System (INIS)

    Voehringer, F.; Mueller, A.; Boehringer, C.

    2007-03-01

    This comprehensive report for the Swiss Federal Office of Energy (SFOE) takes a look at the effects of higher oil prices in the long-term. Scenarios examined include those with high oil prices of 80 to 140 dollars per barrel and those with drastic shortages resulting from peak extraction in the years 2010 and 2020. Long-term economic balances form the basis of the report, short-term influences and psychological effects are not addressed. The possible dangers for the earth's climate caused by the substitution of oil by coal-based products are discussed, as well as the sequestration of carbon dioxide. Ethanol and the associated conflicts of land use are examined and the decreasing cost-effectiveness of co-generation power generation is looked at. Alternatives such as atomic power, hydropower, solar energy, geothermal energy, biogas and wind power are discussed. The effect of the changing energy scene on economic growth and welfare aspects in Switzerland are examined. The authors conclude that high oil prices have considerable impacts on the economy and are not a substitute for an internationally co-ordinated climate policy

  12. Energy disruptions, interfirm price effects and the aggregate economy

    International Nuclear Information System (INIS)

    Huntington, Hillard G.

    2003-01-01

    In an economy with many imperfect competitors (monopolistic competition), firms that pass through higher oil prices during a disruption will affect the demand for firms in other industries. Firms that charge higher prices for their final product will include the effect on their own final product in their private decisions but will exclude the effect on the final products of other firms. Although a pecuniary externality, these actions will reduce society's welfare, unlike the case of a perfectly competitive market. This situation creates a societal risk that is much wider than an externality in any single market. Policy interest shifts from one of punishing Persian Gulf oil producers to one of cushioning an industrialized economy from sudden disruptions caused by political and military conflicts. Although the value of reducing oil use depends upon a number of unknown parameters with wide distributions, a representative numerical example suggests that it may approach 5 US dollars per barrel. (Author)

  13. Using Residential Solar PV Quote Data to Analyze the Relationship Between Installer Pricing and Firm Size

    Energy Technology Data Exchange (ETDEWEB)

    O' Shaughnessy, Eric [National Renewable Energy Lab. (NREL), Golden, CO (United States); Margolis, Robert [National Renewable Energy Lab. (NREL), Golden, CO (United States)

    2017-04-01

    The vast majority of U.S. residential solar PV installers are small local-scale companies, however the industry is relatively concentrated in a few large national-scale installers. We develop a novel approach using solar PV quote data to study the price behavior of large solar PV installers in the United States. Through a paired differences approach, we find that large installer quotes are about higher, on average, than non-large installer quotes made to the same customer. The difference is statistically significant and robust after controlling for factors such as system size, equipment quality, and time effects. The results suggest that low prices are not the primary value proposition of large installer systems. We explore several hypotheses for this finding, including that large installers are able to exercise some market power and/or earn returns from reputations.

  14. Dynamic Relationships between Price and Net Asset Value for Asian Real Estate Stocks

    Directory of Open Access Journals (Sweden)

    Kim Hiang LIOW

    2018-03-01

    Full Text Available This paper examines short- and long-term behavior of the price-to net asset value ratio in six Asian public real estate markets. We find mean-reverting behavior of the ratio and spillover effects, where each of the examined public real estate markets correlates with other markets. Additionally, the unexpected shock correlating with the price-to-net asset value ratio in one market has a positive or negative correlation with the ratios of other markets. Our results offer fresh insights to portfolio managers, policymakers, and academic researchers into the regional and country market dynamics of public real estate valuation and cross-country interaction from the long-term and short-term perspectives.

  15. Effects of Dividends on Stock Prices in Nepal

    OpenAIRE

    Rabindra Joshi

    2012-01-01

    This paper examines the impact of dividends on stock price in the context of Nepal. A majority of earlier studies conducted in developed countries show that dividend has a strong effect than retained earnings. The study examines whether this is consistent in the context of Nepal (or not) and the implication particularly to the banking and non-banking sector. To achieve the objective of the study, a descriptive and analytical research design has been administered. The secondary data are used t...

  16. Russian gas price reform and the EU-Russia gas relationship: Incentives, consequences and European security of supply

    International Nuclear Information System (INIS)

    Spanjer, Aldo

    2007-01-01

    In order to provide a comprehensive picture on the relationship between Russia and the EU, the focus should be on both the external energy relationship as well as Russia's internal organization. This paper sets out to do this by combining both strands of research in order to arrive at recommendations for Europe on the way to adjust its energy policy towards Russia. The emphasis is on whether or not Russia should impose unified gas pricing. Main conclusions are that the perceived advantages of unified Russian gas pricing to Russia as well as Europe are in fact overstated and that EU security of supply might worsen under unified gas prices. Three policy recommendations are that EU policy should (1) more explicitly acknowledge the interdependence between Russia and Europe; (2) not push Russia towards unified gas pricing; and (3) not take for granted any increase in Russian exports flowing to Europe

  17. The effect of the implementation of low price medicine policy on medicine price in China: A retrospective study.

    Science.gov (United States)

    Guan, Xiaodong; Yang, Mingchun; Man, Chunxia; Tian, Ye; Shi, Luwen

    2018-04-30

    In an effort to relieve the pressure of drug shortages, the Chinese government implemented Low-price Medicines (LPM) policy to raise the price cap in July 2014. The purpose of this study is to examine the effect of the implementation of this policy on drug price in China. Price data of 491 LPM, including 218 low-price chemical medicines (LPCM) and 273 low-price traditional Chinese medicines (LPTCM), were collected from 699 hospitals. We used interrupted time series design to identify the variation of monthly Laspeyres Indexes (LI) and Paasche Indexes (PI) for LPM, LPCM, and LPTCM. The result demonstrated that although LPM expenditures increased, the proportion of LPM expenditures accounting for all medicine expenditures fell from 3.6% to 3.2%. After the implementation of LPM policy, there was a significant increasing trend in LPM-PI, LPCM-PI, and LPTCM-PI. The trend in LPM-LI and LPCM-LI was found from descending to rising. However, for LPTCM, the trend in the LI remained to decrease after the policy implementation. Despite the LPM policy had an increasing impact on the LPM drug price, the proportion of LPM expenditures accounting for all medicine expenditures did not increase. More efforts are needed in the future to promote the rational drug use in China. Copyright © 2018 John Wiley & Sons, Ltd.

  18. Effect of Carcass Traits on Carcass Prices of Holstein Steers in Korea

    Science.gov (United States)

    Alam, M.; Cho, K. H.; Lee, S. S.; Choy, Y. H.; Kim, H. S.; Cho, C. I.; Choi, T. J.

    2013-01-01

    The present study investigated the contribution of carcass traits on carcass prices of Holstein steers in Korea. Phenotypic data consisted of 76,814 slaughtered Holsteins (1 to 6 yrs) from all over Korea. The means for live body weight at slaughter (BWT), chilled carcass weight (CWT), dressing percentage (DP), quantity grade index (QGI), eye muscle area (EMA), backfat thickness (BF) and marbling score (MS), carcass unit price (CUP), and carcass sell prices (CSP) were 729.0 kg, 414.2 kg, 56.79%, 64.42, 75.26 cm2, 5.77 mm, 1.98, 8,952.80 Korean won/kg and 3,722.80 Thousand Korean won/head. Least squares means were significantly different by various age groups, season of slaughter, marbling scores and yield grades. Pearson’s correlation coefficients of CUP with carcass traits ranged from 0.12 to 0.62. Besides, the relationships of carcass traits with CSP were relatively stronger than those with CUP. The multiple regression models for CUP and CSP with carcass traits accounted 39 to 63% of the total variation, respectively. Marbling score had maximum economic effects (partial coefficients) on both prices. In addition, the highest standardized partial coefficients (relative economic weights) for CUP and CSP were calculated to be on MS and CWT by 0.608 and 0.520, respectively. Path analyses showed that MS (0.376) and CWT (0.336) had maximum total effects on CUP and CSP, respectively; whereas BF contributed negatively. Further sub-group (age and season of slaughter) analyses also confirmed the overall outcomes. However, the relative economic weights and total path contributions also varied among the animal sub-groups. This study suggested the significant influences of carcass traits on carcass prices; especially MS and CWT were found to govern the carcass prices of Holstein steers in Korea. PMID:25049722

  19. DEMAND FOR TURKEY MEAT: PRICE EFFECT OR SPENDING EFFECT

    Directory of Open Access Journals (Sweden)

    Miguel Angel Martinez Damian

    2016-08-01

    Full Text Available Turkey meat is a white meat demand in Mexico, however, its consumption is still low. In order to explore the convenience of expanding the market and foresee if the industry should compete in price or expenditure, the aim of this work is to study the demand for turkey meat as part of a protein basket; that consists of beef, chicken, pork and egg. Methodologically an almost ideal demand model was used, in an economic sense, this model allows an optimal assignment representation through budget share equations as a function of prices and real expenditure within the bundle. With statistical information from secondary sources, the results showed that the demand for turkey meat responds inelastically to price, and that the response on spending is almost one. With the estimates of price and expenditure growth rates, in terms of an expansion policy in the turkey market, results conclude that spending is the most relevant factor in demand, followed to a lesser extent by price.

  20. Effects of price and availability on abortion demand.

    Science.gov (United States)

    Gohmann, S F; Ohsfeldt, R L

    1993-10-01

    This study explained the variation in US state abortion demand due to the price of services, the net of insurance cost of birth services, the ability to pay, contraceptive use, individual attitudes regarding abortion, and government policy affecting cost of benefits of terminating an unintended pregnancy or of carrying to birth. The empirical model uses pooled data from 48 states for 1982, 1984, 1985, and 1987. Prices are deflated to 1977 dollars. Another two-staged least squares model is based on cross-sectional state level data for 1985. The dependent variable is the log of abortion per 1000 pregnancies. Other variables pertain to income, education, labor force, family planning, tax, aid to families with dependent children, religion, and abortion-related measures. The results of the cross-sectional analysis are consistent with Medoff's and Garbacz's findings. The estimated coefficient of per capita income is positive with a point elasticity ranging from 0.62 to 1.0. The model with the most complete specifications has an abortion price elasticity range from -0.75 to -1.3 and is statistically significant when religion measures are excluded. The Hausman test shows the pro-choice variable significantly correlated with the error term. The net price of birth services is not statistically significant. Catholic religion and no religion are only significant when the abortion provider variable is excluded. The suggestion is that the effect of Catholicism is ambiguous. In the pooled analysis, the fixed effects model is used to control for abortion attitudes and other unobserved factors. Abortion demand includes abortion per 1000 pregnancies, the ratio of abortions to pregnancies, and the logarithm of abortions per 1000 pregnancies. Higher income is associated with a higher abortion rate and elasticities of 0.76 and 0.35 and is associated with a higher pregnancy rate. The abortion ratio is found to be elastic with respect to price, and price elasticities are sensitive to

  1. Effect of Energy Efficiency Standards on Natural Gas Prices

    Energy Technology Data Exchange (ETDEWEB)

    Carnall, Michael; Dale, Larry; Lekov, Alex

    2011-07-26

    in its price as seen at the wellhead (Wiser 2007). The magnitude of the effect on price relative to the demand reduction, and the mechanism through which it occurs, is less well established. This report attempts to quantify the potential effects of reduced demand for natural gas in the residential sector, in response to the implementation of an energy efficiency standard for water heaters.

  2. ASSESSING THE RELATIONSHIP BETWEEN MARKET FACTORS AND REGIONAL PRICE DYNAMICS IN U.S. CATTLE MARKETS

    OpenAIRE

    Walburger, Allan M.; Foster, Kenneth A.

    1997-01-01

    Regional live cattle prices are decomposed into two components: (a) a trend common to all regional cattle price series and (b) regional deviations or price dynamics around that trend. Tests are developed to determine if market factors are related to the regional price deviations around a common trend. Slaughter volume, distance between a market and the next closest, and forward contract deliveries are significantly related to price deviations from the estimated common trend.

  3. The Effects of Price and Health Consciousness and Satisfaction on the Medical Tourism Experience.

    Science.gov (United States)

    Park, JungKun; Ahn, Jiseon; Yoo, Weon Sang

    The objective of this study was to analyze the effects of price and health consciousness on medical tourism. Accordingly, we explore the utility of the theory of planned behavior for assessing the relationships between several variables and explain consumers' intentions to be repeat medical tourists. A 26-item questionnaire was developed, and data were collected from 407 patients who visited South Korea for medical purposes. Structural equation modeling was used to analyze the data. The results indicate that medical tourists' price consciousness was significant with respect to their satisfaction with medical and travel services. However, health consciousness also influenced their decision-making process. The study results reveal that health consciousness did not have a significant effect on tourists' satisfaction with medical travel services. Although this study was conducted in South Korea, the findings may be relevant elsewhere. When developing products and services for the medical tourism industry, policymakers and service providers should focus on the importance of cost-effectiveness.

  4. THE EFFECT OF VESSEL SUPPLY ON SHIP-DEMOLITION PRICES

    Directory of Open Access Journals (Sweden)

    Nikos Kagkarakis

    2017-02-01

    Full Text Available The ship-demolition is one of the four main markets that form the shipping industry and plays an important role on the seaborne trade, as it mitigates imbalances between supply and demand for transportation services by adjusting the merchant fleet supply. The aim of this study is to examine whether the factors that determine the supply of vessels for demolition are capable of affecting materially the ship-demolition price formation. The availability of ships for demolition is primarily a function of the fleet’s age and the conditions on the freight and secondhand markets. The analysis is conducted on the crude tanker and the bulk carrier segments and the vector autoregressive model methodology is employed, whereby the effect of both the supply and the demand factors on the ship-demolition prices is examined. The results indicate that the supply side has limited effect on the price formation in the industry, which is driven by the demand for the steel-scrap commodity.

  5. Utility green pricing programs: a statistical analysis of program effectiveness

    International Nuclear Information System (INIS)

    Ryan, W.; Scott, O.; Lori, B.; Blair, S.

    2005-01-01

    Utility green pricing programs represent one way in which consumers can voluntarily support the development of renewable energy. The design features and effectiveness of these programs varies considerably. Based on a survey of utility program managers in the United States, this article provides insight into which program features might help maximize both customer participation in green pricing programs and the amount of renewable energy purchased by customers in those programs. We find that program length has a substantial impact on customer participation and purchases; to achieve higher levels of success, utilities will need to remain committed to their product offering for some time. Our findings also suggest that utilities should consider higher renewable energy purchase thresholds for residential customers in order to maximize renewable energy sales. Smaller utilities are found to be more successful than larger utilities, and we find some evidence that providing private benefits to nonresidential participants can enhance success. Interestingly, we find little evidence that the cost of the green pricing product greatly impacts customer participation and renewable energy sales, at least over the narrow range of premiums embedded in our data set, and for the initial set of green power purchasers. (author)

  6. Effects of regulation on drug launch and pricing in interdependent markets.

    Science.gov (United States)

    Danzon, Patricia M; Epstein, Andrew J

    2012-01-01

    This study examines the effect of price regulation and competition on launch timing and pricing of new drugs. Our data cover launch experience in 15 countries from 1992 to 2003 for drugs in 12 major therapeutic classes. We estimate a two-equation model of launch hazard and launch price of new drugs. We find that launch timing and prices of new drugs are related to a country's average prices of established products in a class. Thus to the extent that price regulation reduces price levels, such regulation directly contributes to launch delay in the regulating country. Regulation by external referencing, whereby high-price countries reference low-price countries, also has indirect or spillover effects, contributing to launch delay and higher launch prices in low-price referenced countries. Referencing policies adopted in high-price countries indirectly impose welfare loss on low-price countries. These findings have implications for US proposals to constrain pharmaceutical prices through external referencing and drug importation.

  7. S-shape relationship between customer satisfaction and willingness to pay premium prices for high quality cured pork products in Spain.

    Science.gov (United States)

    Cotes-Torres, Alejandro; Muñoz-Gallego, Pablo A; Cotes-Torres, José Miguel

    2012-03-01

    This paper explores 2 different probabilistic models explaining willingness to pay premium prices for high-quality cured products from the swine industry. Seven cured pork products (sausage, fuet, ham, loin, shoulder, salami and pepperoni) were studied in 9 food-stores in Valladolid, Spain. Consumers of the products were interviewed (686 completed surveys). It was found by using mixed effect statistical models that the relationship between willingness to pay a premium price and customer satisfaction had nonlinear behavior, following an S-shape with inverted slope which was the first empirical evidence of this type of behavior in meat products in real market conditions. It was also established that the interaction between satisfaction and current expenditure on the product was significant and indispensable for explaining consumers' willingness to pay premium price for cured pork products. Copyright © 2011 Elsevier Ltd. All rights reserved.

  8. Plant life extensions for German nuclear power plants? Controversial discussion on potential electricity price effects

    International Nuclear Information System (INIS)

    Matthes, Felix C.; Hermann, Hauke

    2009-06-01

    The discussions on electricity price effects in case of the plant life extension of German nuclear power plants covers the following topics: (1) Introduction and methodology. (2) Electricity generation in nuclear power plants and electricity price based on an empirical view: electricity generation in nuclear power plants and final consumption price for households and industry in the European Union; electricity generation in nuclear power plants and electricity wholesale price in case of low availability of nuclear power plants in Germany; comparison of electricity wholesale prices in Germany and France. (3) Model considerations in relation to electricity prices and nuclear phase-out. (4) Concluding considerations.

  9. Are Price Limits Effective? An Examination of an Artificial Stock Market.

    Science.gov (United States)

    Zhang, Xiaotao; Ping, Jing; Zhu, Tao; Li, Yuelei; Xiong, Xiong

    2016-01-01

    We investigated the inter-day effects of price limits policies that are employed in agent-based simulations. To isolate the impact of price limits from the impact of other factors, we built an artificial stock market with higher frequency price limits hitting. The trading mechanisms in this market are the same as the trading mechanisms in China's stock market. Then, we designed a series of simulations with and without price limits policy. The results of these simulations demonstrate that both upper and lower price limits can cause a volatility spillover effect and a trading interference effect. The process of price discovery will be delayed if upper price limits are imposed on a stock market; however, this phenomenon does not occur when lower price limits are imposed.

  10. Price, technology, and ore reserves, ch. 2

    International Nuclear Information System (INIS)

    McAllister, A.L.

    1976-01-01

    Factors determining ore reserves in view of future uses are investigated: existing mining technologies, new techniques, price-technology relationship, effects of the use of different energy sources, exploration techniques, and price change are discussed. The effect of price and technology on reserves of specific commodities is dealth with. A section is also devoted to uranium

  11. Gold price effect on stock market: A Markov switching vector error correction approach

    Science.gov (United States)

    Wai, Phoong Seuk; Ismail, Mohd Tahir; Kun, Sek Siok

    2014-06-01

    Gold is a popular precious metal where the demand is driven not only for practical use but also as a popular investments commodity. While stock market represents a country growth, thus gold price effect on stock market behavior as interest in the study. Markov Switching Vector Error Correction Models are applied to analysis the relationship between gold price and stock market changes since real financial data always exhibit regime switching, jumps or missing data through time. Besides, there are numerous specifications of Markov Switching Vector Error Correction Models and this paper will compare the intercept adjusted Markov Switching Vector Error Correction Model and intercept adjusted heteroskedasticity Markov Switching Vector Error Correction Model to determine the best model representation in capturing the transition of the time series. Results have shown that gold price has a positive relationship with Malaysia, Thailand and Indonesia stock market and a two regime intercept adjusted heteroskedasticity Markov Switching Vector Error Correction Model is able to provide the more significance and reliable result compare to intercept adjusted Markov Switching Vector Error Correction Models.

  12. Chaotic structure of oil prices

    Science.gov (United States)

    Bildirici, Melike; Sonustun, Fulya Ozaksoy

    2018-01-01

    The fluctuations in oil prices are very complicated and therefore, it is unable to predict its effects on economies. For modelling complex system of oil prices, linear economic models are not sufficient and efficient tools. Thus, in recent years, economists attached great attention to non-linear structure of oil prices. For analyzing this relationship, GARCH types of models were used in some papers. Distinctively from the other papers, in this study, we aimed to analyze chaotic pattern of oil prices. Thus, it was used the Lyapunov Exponents and Hennon Map to determine chaotic behavior of oil prices for the selected time period.

  13. On the Effects of Suggested Prices in Gasoline Markets

    NARCIS (Netherlands)

    R.P. Faber (Riemer); M.C.W. Janssen (Maarten)

    2008-01-01

    textabstractThis article analyzes the role of suggested prices in the Dutch retail market for gasoline. Suggested prices are announced by large oil companies with the suggestion that retailers follow them. There are at least two competing rationales for the existence of suggested prices: they may

  14. The effect of expected energy prices on energy demand: implications for energy conservation and carbon taxes

    International Nuclear Information System (INIS)

    Kaufmann, R.K.

    1994-01-01

    This paper describes an empirical method for estimating the effect of expected prices on energy demand. Data for expected oil prices are compiled from forecasts for real oil prices. The effect of expectations on energy demand is simulated with an expectation variable that proxies the return on investment for energy efficient capital. Econometric results indicate that expected prices have a significant effect on energy demand in the US between 1975 and 1989. A model built from the econometric results indicates that the way in which consumers anticipate changes in energy prices that are generated by a carbon tax affects the quantity of emissions abated by the tax. 14 refs., 4 figs., 1 tab

  15. The Economics of Style : Measuring the Price Effect of Neo-Traditional Architecture in Housing

    NARCIS (Netherlands)

    Buitelaar, E.; Schilder, Frans

    2017-01-01

    Vintage effects have received considerable attention from economists in the context of house prices. Although strongly related, the impact of architectural building styles on prices has not been studied yet. Using a cross-sectional hedonic price analysis including building styles of recently

  16. Effects of Trade Liberalization on Domestic Prices: Some Evidence from Tunisian Manufacturing

    OpenAIRE

    Saggay, Ali; Heshmati, Almas; Adel Dhif, Mohamed

    2006-01-01

    This paper presents estimates of the competitive effects of trade liberalization on domestic pricing behaviour of Tunisian manufacturing industries. The theoretical framework is based on a dynamic flexible adjustment model of price determination in a small open economy. It investigates the process of adjustment in price level toward a desired level. The adjustment process is both industrial and time-specific. The empirical results show that, in the long run, domestic price responds greatly to...

  17. Optimal software pricing in the presence of piracy and word-of-mouth effect

    OpenAIRE

    Liu, Yipeng; Cheng, Hsing Kenneth; Tang, Qian Candy; Eryarsoy, Enes

    2011-01-01

    We develop an analytical model that embeds empirical findings on software diffusion to examine optimal pricing strategies for a spreadsheet software product under coalescing effects of piracy and word-of-mouth through its entire life cycle. We find that the demand of the innovators has the most significant impact on the firm’s pricing decision. Our research recommends market skimming pricing strategy if innovators’ demand is high and the market penetration pricing strategy is preferred otherw...

  18. Do payers value rarity? : An analysis of the relationship between disease rarity and orphan drug prices in Europe

    NARCIS (Netherlands)

    Medic, Goran; Korchagina, Daria; Young, Katherine Eve; Toumi, Mondher; Postma, Maarten Jacobus; Wille, Micheline; Hemels, Michiel

    2017-01-01

    Background and Objective: Orphan drugs have been a highlight of discussions due to their higher prices than non-orphan drugs. There is currently no European consensus on the method of value assessment for orphan drugs. This study assessed the relationship between the prevalence of rare diseases and

  19. The asymmetric effect of coal price on the China's macro economy using NARDL model

    Science.gov (United States)

    Hou, J. C.; Yang, M. C.

    2016-08-01

    The present work endeavors to explore the asymmetric effect of coal price on the China's macro economy by applying nonlinear autoregressive distributed lag (NARDL) model for the period of January 2005 to June 2015. The obtained results indicate that the coal price has a strong asymmetric effect on China's macro economy in the long-run. Namely one percent increase in coal price leads to 0.6194 percent of the China's macro economy increase; and while the coal price is reduces by 1 percent, the China's macro economy will decrease by 0.008 percent. These data indicate that when coal price rises, the effect on China's macro economy is far greater than the price decline. In the short-run, coal price fluctuation has a positive effect on the China's macro economy.

  20. Effects of pricing policy in traffic and transport. Overview of knowledge

    International Nuclear Information System (INIS)

    Geilenkirchen, G.P.; Geurs, K.; Van Essen, H.P.; Schroten, A.; Boon, B.

    2010-05-01

    Pricing policies play an important role in transport policy making. The results of pricing policy studies, however, are often debated. This report presents a literature overview of the price sensitivities of transport demand and the effects of transport pricing policies in passenger transport, freight transport and aviation. The study concludes that the demand for passenger and freight transport is typically inelastic; the relative price change is greater than the resulting change in transport demand. Fuel demand for cars, public transport demand and air travel demand are, however, relatively sensitive to price changes. Car use is relatively insensitive to price changes. The demand for road freight is, in contrast to what is often assumed, relatively sensitive to changes in total transport costs. Relatively little empirical evidence is available on the impacts of pricing policies on rail freight transport, shipping and aviation. [nl

  1. The Influence of Brand Relationship, Brand Satisfaction, and Perceived Price Towards Brand Loyalty in PT X'S Customer, Indonesia

    OpenAIRE

    Prihandoko, Danang

    2016-01-01

    The goal of this research was to examine the influence of Brand Relationship, Brand Satisfaction, and Perceived Price towards Brand Loyalty by using multiple regression analysis. This research was a combination of qualitative and quantitative studies where the results of the questionnaire would be summarized and described in the form of tables and graphs. The result shows the three hypothesis that Brand Relationship and Brand Satisfaction have a positive influence towards Brand Loyalty meanwh...

  2. Biofuel and Food-Commodity Prices

    Directory of Open Access Journals (Sweden)

    David Zilberman

    2012-09-01

    Full Text Available The paper summarizes key findings of alternative lines of research on the relationship between food and fuel markets, and identifies gaps between two bodies of literature: one that investigates the relationship between food and fuel prices, and another that investigates the impact of the introduction of biofuels on commodity-food prices. The former body of literature suggests that biofuel prices do not affect food-commodity prices, but the latter suggests it does. We try to explain this gap, and then show that although biofuel was an important contributor to the recent food-price inflation of 2001–2008, its effect on food-commodity prices declined after the recession of 2008/09. We also show that the introduction of cross-price elasticity is important when explaining soybean price, but less so when explaining corn prices.

  3. Aim High or Go Low? Pricing Strategies and Enrollment Effects when the Net Price Elasticity Varies with Need and Ability

    Science.gov (United States)

    Curs, Bradley R.; Singell, Larry D., Jr.

    2010-01-01

    Detailed data on individual applicants to a large public university are used to demonstrate that net price responsiveness decreases with need and ability. Enrollment effects are simulated and show a movement towards a high tuition/high aid (low tuition/low aid) policy significantly lowers (raises) tuition revenue with a modest increase (decrease)…

  4. Testing For Seasonal Cointegration and Error Correction: The U.S. Pecan Price-Inventory Relationship

    OpenAIRE

    Ibrahim, Mohammed; Florkowski, Wojciech J.

    2005-01-01

    Using time series data we examine behavior of pecan prices and inventories at zero and seasonal frequencies, given results of seasonal cointegration tests. Both, seasonally unadjusted and adjusted quarterly data are used (1991-2002). Results suggest that, first, shelled and total pecan inventories and shelled pecan prices have common unit roots at both the non-seasonal and seasonal frequencies; second, there is no long run equilibrium between pecan prices and shelled or total inventories when...

  5. Using Residential Solar PV Quote Data to Analyze the Relationship Between Installer Pricing and Firm Size

    Energy Technology Data Exchange (ETDEWEB)

    O' Shaughnessy, Eric [National Renewable Energy Lab. (NREL), Golden, CO (United States); Margolis, Robert [National Renewable Energy Lab. (NREL), Golden, CO (United States)

    2017-05-19

    We use residential solar photovoltaic (PV) quote data to study the role of firm size in PV installer pricing. We find that large installers (those that installed more than 1,000 PV systems in any year from 2013 to 2015) quote higher prices for customer-owned systems, on average, than do other installers. The results suggest that low prices are not the primary value proposition of large installers.

  6. 40 CFR 312.29 - The relationship of the purchase price to the value of the property, if the property was not...

    Science.gov (United States)

    2010-07-01

    ... 40 Protection of Environment 27 2010-07-01 2010-07-01 false The relationship of the purchase price... COMMUNITY RIGHT-TO-KNOW PROGRAMS INNOCENT LANDOWNERS, STANDARDS FOR CONDUCTING ALL APPROPRIATE INQUIRIES Standards and Practices § 312.29 The relationship of the purchase price to the value of the property, if the...

  7. Effect of floating pricing policy: An application of system dynamics on oil market after liberalization

    Energy Technology Data Exchange (ETDEWEB)

    Wu, Jung-Hua, E-mail: hwaa@mail.ncku.edu.tw [Department of Resources Engineering, National Cheng Kung University, Tainan 701, Taiwan (China); Huang, Yi-Lung [Exploration and Development Research Institute, Chinese Petroleum Corporation, Taiwan, No. 1, Dayuan, Wenfa Road, Miaoli City, Miaoli County 36042, Taiwan (China); Liu, Chang-Chen [Department of Resources Engineering, National Cheng Kung University, Tainan 701, Taiwan (China)

    2011-07-15

    Upon the implementation of the floating price mechanism, Taiwan's gasoline and diesel prices returned to market mechanism, which terminated the phenomenon of the public paying for the losses of the state-owned oil company-Chinese Petroleum Corporation, Taiwan (CPC). Furthermore, the relatively low production costs of the privately owned Formosa Petrochemical Corporation (FPCC) disclosed the pricing mechanism of CPC, which inspired FPCC to adopt pricing strategy in order to increase the market share. This study aims to establish a system dynamics model to analyze the effects of the floating price mechanism on Taiwan's gasoline and diesel markets. This Model is divided into four sub-systems. The model of this study passed several validation tests, and hence, is able to provide a 'virtual laboratory' for policy-makers to conduct simulation and scenario analysis. The simulation results indicate (a) feedback mechanism of expected revenues and pricing strategy could efficiently simulate the FPCC pricing mechanism, (b) price competition strategy could increase FPCC revenues, although the effect on market share is not remarkable, and (c) FPCC has a higher gas-station growth rate. Scenario analyses found (a) lowering oil security stockpile would not change FPCC's pricing strategy and (b) FPCC prefers to follow CPC pricing when it has more gas stations. - Highlights: > System dynamics model analyzes the effects of oil markets' floating price mechanism. > Feedback mechanism of expected revenues could efficiently simulate pricing mechanism. > Price competition strategy could increase FPCC revenues. > Lowering oil security stockpile, FPCC's pricing strategy would not change. > FPCC prefers to follow CPC pricing when it has more gas stations.

  8. Effect of floating pricing policy: An application of system dynamics on oil market after liberalization

    International Nuclear Information System (INIS)

    Wu, Jung-Hua; Huang, Yi-Lung; Liu, Chang-Chen

    2011-01-01

    Upon the implementation of the floating price mechanism, Taiwan's gasoline and diesel prices returned to market mechanism, which terminated the phenomenon of the public paying for the losses of the state-owned oil company-Chinese Petroleum Corporation, Taiwan (CPC). Furthermore, the relatively low production costs of the privately owned Formosa Petrochemical Corporation (FPCC) disclosed the pricing mechanism of CPC, which inspired FPCC to adopt pricing strategy in order to increase the market share. This study aims to establish a system dynamics model to analyze the effects of the floating price mechanism on Taiwan's gasoline and diesel markets. This Model is divided into four sub-systems. The model of this study passed several validation tests, and hence, is able to provide a 'virtual laboratory' for policy-makers to conduct simulation and scenario analysis. The simulation results indicate (a) feedback mechanism of expected revenues and pricing strategy could efficiently simulate the FPCC pricing mechanism, (b) price competition strategy could increase FPCC revenues, although the effect on market share is not remarkable, and (c) FPCC has a higher gas-station growth rate. Scenario analyses found (a) lowering oil security stockpile would not change FPCC's pricing strategy and (b) FPCC prefers to follow CPC pricing when it has more gas stations. - Highlights: → System dynamics model analyzes the effects of oil markets' floating price mechanism. → Feedback mechanism of expected revenues could efficiently simulate pricing mechanism. → Price competition strategy could increase FPCC revenues. → Lowering oil security stockpile, FPCC's pricing strategy would not change. → FPCC prefers to follow CPC pricing when it has more gas stations.

  9. Modelling price and volatility inter-relationships in the Australian wholesale spot electricity markets

    International Nuclear Information System (INIS)

    Higgs, Helen

    2009-01-01

    This paper examines the inter-relationships of wholesale spot electricity prices among the four regional electricity markets in the Australian National Electricity Market (NEM): namely, New South Wales, Queensland, South Australia and Victoria using the constant conditional correlation and Tse and Tsui's (Tse, Y.K., Tsui, A.K.C., 2002. A multivariate generalised autoregressive conditional heteroscedasticity model with time-varying correlations. Journal of Business and Economic Statistics 20 (3), 351-362.) and Engle's (Engle, R., 2002. Dynamic conditional correlation: a sample class of multivariate generalized autoregressive conditional heteroskedasticity models. Journal of Business and Economic Statistics 20 (3), 339-350.) dynamic conditional correlation multivariate GARCH models. Tse and Tsui's (Tse, Y.K., Tsui, A.K.C., 2002. A multivariate generalised autoregressive conditional heteroscedasticity model with time-varying correlations. Journal of Business and Economic Statistics 20 (3), 351-362.) dynamic conditional correlation multivariate GARCH model which takes account of the Student t specification produces the best results. At the univariate GARCH(1,1) level, the mean equations indicate the presence of positive own mean spillovers in all four markets and little evidence of mean spillovers from the other lagged markets. In the dynamic conditional correlation equation, the highest conditional correlations are evident between the well-connected markets indicating the presence of strong interdependence between these markets with weaker interdependence between the not so well-interconnected markets. (author)

  10. Financial effects of pharmaceutical price regulation on R&D spending by EU versus US firms.

    Science.gov (United States)

    Golec, Joseph; Vernon, John A

    2010-01-01

    EU countries closely regulate pharmaceutical prices, whereas the US does not. This paper shows how price constraints affect the profitability, stock returns and R&D spending of EU and US firms. Compared with EU firms, US firms are more profitable, earn higher stock returns and spend more on R&D. We tested the relationship between price regulation and R&D spending, and estimated the costs of tight EU price regulation. Although results show that EU consumers enjoyed much lower pharmaceutical price inflation, we estimated that price controls cost EU firms 46 fewer new medicines and 1680 fewer research jobs during our 19-year sample period. Had the US used controls similar to those used in the EU, we estimate it would have led to 117 fewer new medicines and 4368 fewer research jobs in the US.

  11. The Effects of Brand Loyalty on Competitive Price Promotional Strategies

    OpenAIRE

    Jagmohan S. Raju; V. Srinivasan; Rajiv Lal

    1990-01-01

    This paper analyzes the role played by brand loyalty in determining optimal price promotional strategies used by firms in a competitive setting. (Loyalty is operationalized as the minimum price differential needed before consumers who prefer one brand switch to another brand.) Our objective is to examine how loyalties toward the competing brands influence whether or not firms would use price promotions in a product category. We also examine how loyalty differences lead to variations in the de...

  12. Pricing Model for Dual Sales Channel with Promotion Effect Consideration

    OpenAIRE

    Chuiri Zhou

    2016-01-01

    We focus on the pricing strategy of a dual sales channel member when his/her online retailer faces an upcoming overloaded express delivery service due to the sales peak of online shopping, especially referring to the occurring affairs in China. We characterize the pricing problem of the dual selling channel system as a two-period game. When the price discount is only provided by the online seller, we find that the prices of the traditional channel and the online channel in the two periods are...

  13. How Should they Affect Pricing Decisions? Difficult Comparison Effect

    Directory of Open Access Journals (Sweden)

    Angela Eliza MICU

    2007-01-01

    Full Text Available In most companies, there is ongoing conflict between managers in charge of covering costs (finance and accounting and managers in charge of satisfying customers (marketing and sales. Accounting journals warn against prices that fail to cover full costs, while marketing journals argue that customer willingness-to-pay must be the sole driver of prices. The conflict between these views wastes company resources and leads to pricing decisions that are imperfect compromises. Profitable pricing involves an integration of costs and customer value. To achieve that integration, however, both need to let go of misleading ideas and form a common vision of what drives profitability.

  14. Welfare Effects of Tax and Price Changes Revisited

    DEFF Research Database (Denmark)

    Munk, Knud Jørgen

    Dixit's 1975 paper "Welfare Effects of Tax and Price Changes" constitutes a seminal contribution to the theory of tax reform analysis within a second-best general equilibrium framework. The present paper clarifies ambiguities with respect to normalisation which have led to misinterpretation of some...... of Dixit's analytical results. It proves that a marginal tax reform starting from a proportional tax system will improve social welfare if it increases the supply of labour, whatever the rule of normalisation adopted, and shows that this result provides the key to understanding what determines the optimal...... commodities the insight that the optimal tax system is determined as a trade-off between two objectives: 1) to encourage the supply of labour to the market, and 2), to limit the distortion of the pattern of consumption of produced commodities. This insight cannot be illustrated by simulation studies using...

  15. The effect of global oil price shocks on China's metal markets

    International Nuclear Information System (INIS)

    Zhang, Chuanguo; Tu, Xiaohua

    2016-01-01

    This paper investigated the impacts of global oil price shocks on the whole metal market and two typical metal markets: copper and aluminum. We applied the autoregressive conditional jump intensity (ARJI) model, combining with the generalized conditional heteroscedasticity (GRACH) method, to describe the volatility process and jump behavior in the global oil market. We separated the oil price shocks into positive and negative parts, to analyze whether oil price volatility had symmetric impacts on China’s metal markets. We further used the likelihood ratio test to examine the symmetric effect of oil price shocks. In addition, we considered the jump behavior in oil prices as an input factor to investigate how China’s metal markets are affected when jumps occur in the global oil market, in contrast to the existing research paying little attention to this issue. Our results indicate that crude oil price shocks have significant impacts on China's metal markets and the impacts are symmetric. When compared with aluminum, copper is more easily affected by oil price shocks. - Highlights: • We investigated the effect of oil price shocks on China’s metal markets. • The oil price shocks had significant impacts on China's metal markets • The oil price shocks on China's metal markets were symmetric. • Copper is more easily affected by oil price shocks than aluminum.

  16. The entry of Colombian-sourced heroin into the US market: the relationship between competition, price, and purity.

    Science.gov (United States)

    Rosenblum, Daniel; Unick, George Jay; Ciccarone, Daniel

    2014-01-01

    There have been large structural changes in the US heroin market over the past 20 years. Colombian-sourced heroin entered the market in the mid-1990s, followed by a large fall in the price per pure gram and the exit of Asian heroin. By the 2000s, Colombian-sourced heroin had become a monopoly on the east coast and Mexican-sourced heroin a monopoly on the west coast with competition between the two in the middle. We estimate the relationship between these changes in competitive market structure on retail-level heroin price and purity. We find that the entry of Colombian-sourced heroin is associated with less competition and a lower price per pure gram of heroin at the national level. However, there is wide variation in changes in market concentration across the US. Controlling for the national fall in the heroin price, more competition in a region or city is associated with a lower price per pure gram. Copyright © 2013 Elsevier B.V. All rights reserved.

  17. Principles, effects and problems of differential power pricing policy for energy intensive industries in China

    International Nuclear Information System (INIS)

    Lin, Boqiang; Liu, Jianghua

    2011-01-01

    The Chinese government canceled the preferential power pricing policies for energy intensive industries and imposed a reverse differential pricing policy in order to promote energy efficiency and the adjustment and upgrading of the industrial structure. This article analyzes the principles of China's differential power pricing policy, the externalities of energy and the modified Ramsey pricing rule, and also points out the policy implications of China's differential power pricing policy. In our samples, we investigate eight power intensive products in the Henan province with respect to their power consumption per unit (power intensity), electricity cost, total cost, the electricity tariff and profit, in order to test the effects of the differential power pricing policy. The results show that the primary effect of the differential power pricing policy is that enterprises decrease their total costs and improve their productive efficiencies in advance, in anticipating a higher electricity tariff. -- Research highlights: → The article suggests a modified Ramsey pricing model where demand elasticity is replaced by elasticity of energy consumption and polluting elasticity to internalize the negative externality of high energy intensive industry. → The article assesses the effects of differential pricing policy through on-site survey of high energy intensive industries in Henan province and analyzes the reasons behind those effects. → The article presents the lessons and policy implications of implementing differential pricing policy aimed at energy conservation and emission reduction.

  18. Pricing Model for Dual Sales Channel with Promotion Effect Consideration

    Directory of Open Access Journals (Sweden)

    Chuiri Zhou

    2016-01-01

    Full Text Available We focus on the pricing strategy of a dual sales channel member when his/her online retailer faces an upcoming overloaded express delivery service due to the sales peak of online shopping, especially referring to the occurring affairs in China. We characterize the pricing problem of the dual selling channel system as a two-period game. When the price discount is only provided by the online seller, we find that the prices of the traditional channel and the online channel in the two periods are higher while the overloaded degree of express delivery is lower and the overloaded delivery services can decrease the profits of both channels. When the price discounts are provided by both traditional and online sellers, we find that the derived Nash price equilibrium of both channels includes five possible combinations of prices. Both traditional and online sellers will choose their price strategies, respectively, according to their cost advantages which are affected by the overloaded degree of express delivery.

  19. The third oil shock: The effects of lower oil prices

    Energy Technology Data Exchange (ETDEWEB)

    Pearce, J

    1983-01-01

    This book assesses how oil prices have affected other elements of the economy and assesses the costs and benefits that could result from lower oil prices for different groups of countries. The book also analyses the extent of OPEC's influence, the consumers countries' needs for energy security and the altered role of the oil industry.

  20. Price Conduction Mechanism of China’s Wheat Industry Chain Based on VECM

    OpenAIRE

    ZHU, Haiyan

    2015-01-01

    With the aid of the VECM (vector error correction model), this paper studied dynamic effect of wheat price and flour price conduction mechanism in the wheat industry chain. Study results indicate that in a long term, wheat price and flour price have equilibrium relationship. Through threshold co-integration test, it found that there is no threshold co-integration relationship between wheat price and flour price. This can be adjusted using the linear error correction mode (LECM). In a short te...

  1. Effective Drinking Water Pricing, A Case Study of Arak City

    Directory of Open Access Journals (Sweden)

    Seyyedhosein Sajjadifar

    2017-03-01

    Full Text Available Drinking water pricing is a major challenge facing the water and wastewater industry in Iran where decisions of water pricing are essentially based on social, legal, administrative, and financial criteria with only a slight heed, if any, paid to economic considerations. Generally speaking, the price of water in Iran reflects a percentage fraction of the costs of water production and distribution while an economterically efficient model of water pricing is absent. This failure to account for economic considerations in water pricing has turned water into a commodity supplied either at a very low price or free of charge in cases. The current situation of water scarcity which is complicated by a multitude of environmental problems can only be ascribed to the present water pricing policies. It is, therefore, essential for the water sector to employ economic tools, adopt relevant approaches, and execute optimized strategic policies in an attempt to reduce the negative impacts of the imminent water crisis. Based on the above considerations, the present study was designed to investigate and review optimal water pricing policies at Arak Water and Wastewater Authority which functions as a business offering both domestic and non-domestic water services. The cost function considered is a translog one and the seemingly unrelated regressions are used for estimation. Results show that the domestic water price levied from customers covers only 33% of the total production and delivery costs such that Arak Water & Wastewater Authority practices the economy of scale in producing both domestic and non-domestic water. Considering the fact that pricing based on the marginal cost under the conditions of economy of scale leads to financial losses for Arak W&W Authority, it seems appropriate to calculate the second best price as suggested by Frank Ramsey. Thus, the marginal cost was combined with the price elasticity for the domestic water demand in the different

  2. The taxation effect on gasoline price asymmetry nexus: Evidence from both sides of the Atlantic

    International Nuclear Information System (INIS)

    Polemis, Michael L.; Fotis, Panagiotis N.

    2014-01-01

    This paper explores the degree of competition in various gasoline markets and infers possible causes of price asymmetry across the globe. For this purpose we use the Dynamic Ordinary Least Square method in order to estimate price asymmetry in twelve European countries and the United States for a sample of weekly observations which spans the period from June 1996 to August 2011. The results indicate the common perception that less competitive gasoline markets exhibit price asymmetry, while highly competitive gasoline markets follow a symmetric price adjustment path. Finally, the inclusion of taxes (VAT and excise tax) into retail gasoline prices, supports the existence of price asymmetry in many European countries. - Highlights: • We examine the possible causes of gasoline price asymmetry across the globe. • We investigate the effect of taxation on the retail gasoline price adjustments. • There is a symmetric gasoline price response in the EU wholesale level. • Less competitive gasoline markets exhibit price asymmetry. • The oligopolistic structure of the gasoline markets inflates price asymmetry

  3. Moderating factors of immediate, gross, and net cross-brand effects of price promotions

    NARCIS (Netherlands)

    C. Horváth (Csilla); D. Fok (Dennis)

    2013-01-01

    textabstractThis article examines cross-price promotional effects in a dynamic context. Among other things, we investigate whether previously established findings hold when consumer and competitive dynamics are taken into account. Five main influential effects (asymmetric price effect, neighborhood

  4. Drug Pricing Program Ceiling Price and Manufacturer Civil Monetary Penalties Regulation. Final rule; further delay of effective date.

    Science.gov (United States)

    2017-09-29

    The Health Resources and Services Administration (HRSA) administers section 340B of the Public Health Service Act (PHSA), known as the "340B Drug Pricing Program" or the "340B Program." HRSA published a final rule on January 5, 2017, that set forth the calculation of the ceiling price and application of civil monetary penalties. The final rule applied to all drug manufacturers that are required to make their drugs available to covered entities under the 340B Program. On August 21, 2017, HHS solicited comments on further delaying the effective date of the January 5, 2017, final rule to July 1, 2018 (82 FR 39553). HHS proposed this action to allow a more deliberate process of considering alternative and supplemental regulatory provisions and to allow for sufficient time for additional rulemaking. After consideration of the comments received on the proposed rule, HHS is delaying the effective date of the January 5, 2017, final rule, to July 1, 2018.

  5. Relationship between oil prices, interest rate, and unemployment. Evidence from an emerging market

    International Nuclear Information System (INIS)

    Dogrul, H. Guensel; Soytas, Ugur

    2010-01-01

    While the interrelation between oil price changes, economic activity and employment is an important issue that has been studied mainly for developed countries, little attention has been devoted to inquiries on fluctuations in the price of crude oil and its impact on employment for small open economies. Adopting an efficiency wage model for equilibrium employment that does not require any assumptions regarding labor supply, this paper contributes to the literature by investigating the causality between unemployment and two input prices, namely energy (crude oil) and capital (real interest rate) in an emerging market, Turkey for the period 2005:01-2009:08. Applying a relatively new technique, the Toda-Yamamoto procedure, we find that the real price of oil and interest rate improve the forecasts of unemployment in the long run. This finding supports the hypothesis that labor is a substitute factor of production for capital and energy. (author)

  6. Effect of Ramping Requirement and Price Cap on Energy Price in a System with High Wind Penetration

    OpenAIRE

    Martin, Sebastián; Smeers, Yves; Aguado-Sanchez, Jose Antonio

    2015-01-01

    The European power market is currently retiring or mothballing large capacities of conventional plants, and at the same time incorporating a significant amount of non-dispatchable renewable generation, in particular wind. We analyse the mothballing process (and the resulting system) and study how they are affected by a price cap implemented in the energy only market, and by a possible implementation of ramping products in the system. Sebastian Martin, Yves Smeers, and Jose Aguado. Effect o...

  7. Relationship of mother and child food purchases as a function of price: a pilot study.

    Science.gov (United States)

    Epstein, Leonard H; Dearing, Kelly K; Handley, Elizabeth A; Roemmich, James N; Paluch, Rocco A

    2006-07-01

    To our knowledge, there are no data on parental influences on child purchasing behavior of healthy or unhealthy foods. Mothers and children in ten families were given 5.00 US dollars to purchase portions of preferred fruits/vegetables and high energy-dense snack foods for each of ten trials of price manipulations. For five of the trials the price of the fruit/vegetable increased in price from 0.50 US dollars to 2.50 US dollars (in 0.50 US dollar increments), while the price of the energy-dense snack food remained constant at 1.00 US dollar. For the remaining five trials, the commodity that previously rose in price remained constant at 1.00 US dollars and the other commodity varied from 0.50 US dollars to 2.50 US dollars. Same-price elasticity was shown for both the child and parent purchases, and parent purchases were significantly related to child purchases of both healthy (regression estimate = 0.46, p snack food items were positively related to family socioeconomic status, and negatively related to child age. These results indicate that parental food choice and purchasing behaviors may play a role in the development of children's purchasing of both healthy and unhealthy foods.

  8. FAS 33: accurately recording effects of changing prices.

    Science.gov (United States)

    Sage, L G

    1987-02-01

    FAS 33 addresses the problem of distortion in conventional historical cost financial statements because of changing prices. It requires 1300 business enterprises to report selected changing price data on a supplementary basis. It has been demonstrated that it is also feasible and beneficial for hospitals to present price disclosures as supplementary information to their financial statements. The possible application of FAS 33 is supported on the basis that the accounting and reporting methods of healthcare institutions are similar to the accounting and reporting practices of profit-seeking entities.

  9. The effects of the energy price reform on households consumption in Iran

    International Nuclear Information System (INIS)

    Moshiri, Saeed

    2015-01-01

    The substantial subsidizing of energy prices over the years has led to high energy consumption, inefficiencies, fiscal pressures, and environmental problems in Iran. To address the increasing socio-economic problems associated with the energy subsidies, the government embarked on an aggressive energy price reform through which energy subsidies were removed and cash handouts were given to all households in 2010. In this paper, I analyze the effectiveness of the energy price reform in Iran by estimating energy demand elasticities for households in different income groups. I apply a two-stage consumer optimization model and estimate the system of energy expenditures shares using the household budget survey data for the period 2001–2008. The results show that the overall price elasticities of demand are small, but income elasticities are close to one. The results also indicate heterogeneous responses to energy price and income changes in different income groups. Specifically, the urban households show stronger response to price changes, but rural households, particularly mid-income households, to income changes. These findings suggest that the current policy of price increases would not solely be able to reduce energy consumption and, therefore, it should be geared towards increasing energy efficiency through a series of price and non-price measures. - Highlights: • The effectiveness of the recent energy price reform in Iran is analyzed. • Energy demand elasticities for households in different income groups are estimated. • A two-stage optimization model was applied to estimate the system of equations using micro-data for 2001–2008. • The price elasticities are small and income elasticities rather large, but responses are heterogeneous. • A price and non-price reform policy package is needed for different income groups and regions

  10. Canary tomato export prices: comparison and relationships between daily seasonal patterns

    Directory of Open Access Journals (Sweden)

    G. Martin-Rodriguez

    2013-10-01

    Full Text Available Statistical procedures are proposed to describe, compare and forecast the behaviour of seasonal variations in two daily price series of Canary tomato exported to German and British markets, respectively, over the last decade. These seasonal patterns are pseudo-periodic as the length of the seasonal period changes frequently in dependence of market conditions. Seasonal effect at a day in the harvesting period is defined as a spline function of the proportion of the length of such a period elapsed up to such a day. Then, seasonal patterns for the two series are compared in terms of the area between the corresponding spline functions. The ability of these models to capture the dynamic process of change in the seasonal pattern is useful to forecasting purpose. Furthermore, an analytical tool is also proposed to obtain forecasts of the seasonal pattern in one of these two series from the forecasts of the seasonal pattern in the other one. These procedures are useful for farmers in developing strategies related to the seasonal distribution of tomato production exported to each market.

  11. The Likely Effects of Price Increases on Commissary Patronage: A Review of the Literature

    Science.gov (United States)

    2015-01-01

    beverages across all poten- tial retail outlets. Food away from home, soft drinks, juice, meats, and fruit are found to be most responsive to price ...commissary products is likely responsive to price changes, though the overall demand for food and nonalcoholic beverages is relatively unresponsive... pricing , and to suggest a strategy to gather the information needed to estimate the relevant effects more precisely. This research was conducted within

  12. Effects of unit-based garbage pricing : A differences-in-differences approach

    NARCIS (Netherlands)

    Allers, Maarten A.; Hoeben, Corine

    Using a unique 10-year dataset of all 458 Dutch municipalities, we apply a differences-in-differences approach to estimate the effect of unit-based pricing on household waste quantities and recycling. Community-level studies of unit-based pricing typically do not include fixed effects at the local

  13. Moderating Factors of Immediate, Dynamic, and Long-run Cross-Price Effects

    NARCIS (Netherlands)

    C. Horváth (Csilla); D. Fok (Dennis)

    2008-01-01

    textabstractIn this article the authors describe their comprehensive analysis of moderating factors of cross-brand effects of price changes and contribute to the literature in five major ways. (1) They consider an extensive set of potential variables influencing cross-brand effects of price changes.

  14. Pricing and Promotion Effects on Low-Fat Vending Snack Purchases: The CHIPS Study.

    Science.gov (United States)

    French, Simone A.; Jeffery, Robert W.; Story, Mary; Breitlow, Kyle K.; Baxter, Judith S.; Hannan, Peter; Snyder, M. Patricia

    2001-01-01

    Examined the effects of pricing and promotion strategies on purchases of low-fat snacks from vending machines set up at secondary schools and worksites in Minnesota. Analysis of sales data indicated that reducing relative prices on low-fat snacks was very effective in promoting lower-fat snack purchases from vending machines in both settings. (SM)

  15. The effects of affiliations on the initial public offering pricing

    OpenAIRE

    Geranio, Manuela; Mazzoli, Camilla; Palmucci, Fabrizio

    2017-01-01

    This paper studies the impact of affiliations between lead managers, venture capitalists, and institutional investors on the Initial Public Offering (IPO) pricing. Using a sample of 1996 US IPOs issued between 1997 and 2010, we find that affiliations strongly and positively affect the offer price by improving the information production process. We also show that the underpricing is affected by affiliations because of conflicts of interest that exist between the players: when an institutional ...

  16. Dynamic Pricing in Cloud Manufacturing Systems under Combined Effects of Consumer Structure, Negotiation, and Demand

    Directory of Open Access Journals (Sweden)

    Wei Peng

    2017-01-01

    Full Text Available In this study, we proposed a game-theory based framework to model the dynamic pricing process in the cloud manufacturing (CMfg system. We considered a service provider (SP, a broker agent (BA, and a dynamic service demander (SD population that is composed of price takers and bargainers in this study. The pricing processes under linear demand and constant elasticity demand were modeled, respectively. The combined effects of SD population structure, negotiation, and demand forms on the SP’s and the BA’s equilibrium prices and expected revenues were examined. We found that the SP’s optimal wholesale price, the BA’s optimal reservation price, and posted price all increase with the proportion of price takers under linear demand but decrease with it under constant elasticity demand. We also found that the BA’s optimal reservation price increases with bargainers’ power no matter under what kind of demand. Through analyzing the participants’ revenues, we showed that a dynamic SD population with a high ratio of price takers would benefit the SP and the BA.

  17. Price effects on the smoking behaviour of adult age groups.

    Science.gov (United States)

    Franz, G A

    2008-12-01

    To provide a cigarette price elasticity reference for adult age groups, and to estimate the smoking behaviour changes in US adults in light of unprecedented state excise tax increases on cigarettes during the 1990s. Individual-level data from the Behavioral Risk Factor Surveillance System for 1993-2000 were merged with state-level cigarette price and tax data. Data were analysed for different age groups using a weighted least squares regression framework. The outcome variables measured were whether an individual was a smoker, whether he/she had tried to quit smoking during the previous year, and how many cigarettes were smoked per day among the total population and among active smokers. This study confirmed previous results that younger individuals are more responsive to price changes than older individuals. Although older age groups are less sensitive to price changes, their smoking behaviour changes are still statistically significant. This study found that while older individuals are less responsive to price changes than younger individuals, their behavioural changes due to cigarette price increases should not be ignored.

  18. The Impact Discounts and the Price-Quality Effect Have on the Choice of an Institution of Higher Education.

    Science.gov (United States)

    Quigley, Charles J., Jr.; Bingham, Frank G., Jr.; Notarantonio, Elaine M.; Murray, Keith

    1999-01-01

    A survey of 303 potential college students and their parents found that high price and low price institutions are evaluated higher on quality attributes than are moderately priced institutions. Further, discounts (such as financial aid) were found to have little effect on the attendance decision. Implications for the pricing strategies used by…

  19. Developing a module for estimating climate warming effects on hydropower pricing in California

    International Nuclear Information System (INIS)

    Guégan, Marion; Uvo, Cintia B.; Madani, Kaveh

    2012-01-01

    Climate warming is expected to alter hydropower generation in California through affecting the annual stream-flow regimes and reducing snowpack. On the other hand, increased temperatures are expected to increase hydropower demand for cooling in warm periods while decreasing demand for heating in winter, subsequently altering the annual hydropower pricing patterns. The resulting variations in hydropower supply and pricing regimes necessitate changes in reservoir operations to minimize the revenue losses from climate warming. Previous studies in California have only explored the effects of hydrological changes on hydropower generation and revenues. This study builds a long-term hydropower pricing estimation tool, based on artificial neural network (ANN), to develop pricing scenarios under different climate warming scenarios. Results suggest higher average hydropower prices under climate warming scenarios than under historical climate. The developed tool is integrated with California's Energy-Based Hydropower Optimization Model (EBHOM) to facilitate simultaneous consideration of climate warming on hydropower supply, demand and pricing. EBHOM estimates an additional 5% drop in annual revenues under a dry warming scenario when climate change impacts on pricing are considered, with respect to when such effects are ignored, underlining the importance of considering changes in hydropower demand and pricing in future studies and policy making. - Highlights: ► Addressing the major gap in previous climate change and hydropower studies in California. ► Developing an ANN-based long-term hydropower price estimation tool. ► Estimating climate change effects on hydropower demand and pricing in California. ► Investigating the sensitivity of hydropower operations to future price changes. ► Underlining the importance of consideration of climate change impacts on electricity pricing.

  20. Economic and political power relationships and price formation in strategic materials markets. The example of oil

    International Nuclear Information System (INIS)

    Mortazavi, M.

    1998-01-01

    The more and more generalized substitution of coordination trading mechanisms by administrated regulation forms on the world petroleum scene has led some authors to sustain the idea that oil prices can be durably fixed on a competitive market, like any ordinary good. By analysing the limits of the Hotellinian optimization approach, this work tries to demonstrate that: conformably to a theoretical trend initiated by the works of P.H. Frankel, integration and concentration are two elements indispensable to the proper operation of the petroleum domain. A non-organized market leads to a prices fight and to the reinforcement of the main actors. It demonstrates also that the interdependence between economy and politics has always been an important factor in prices making. The history of petroleum political economics has been and remains largely connected to the power relations established between governments for the share of profits. This work stresses on the necessity of the implementation by the main actors of a back-to-integration and cooperation strategy to stabilize the market and the prices and to make possible the implementation of energy mastery and environment protection policies. On the other hand, the examination of the present day situation, characterized by a very unequal share of profits and by an upstream weakness of prices and investments, reveals the existence of tension factors susceptible to start up a new oil crisis in the coming years. (J.S.)

  1. Dynamic Pricing of Fashion-Like Multiproducts with Customers’ Reference Effect and Limited Memory

    OpenAIRE

    Liu, Mengqi; Bi, Wenjie; Chen, Xiaohong; Li, Guo

    2014-01-01

    We study a fashion retailer’s dynamic pricing problem in which consumers present reference effect and memory window. Based on the theory of Baucells et al. (2011), we propose a new reference-price updating mechanism in fashion and textile (FT) industry where consumers have a bounded memory window and anchor on the first and most recent price in any memory window. Moreover, we study the impacts of this mechanism on optimal pricing policy for a retailer selling multiple fashion-like products an...

  2. Does stock price synchronicity effect information content of reported earnings? Evidence from the MENA region

    Directory of Open Access Journals (Sweden)

    Omar Farooq

    2016-08-01

    Full Text Available This paper documents the effect of stock price synchronicity on the value relevance of reported earnings in the MENA region during the period between 2009 and 2013. Our results show that the information content of reported earnings increases with increase in stock price synchronicity. We document higher impact of earnings on returns for firms with higher stock price synchronicity. We argue that firms with high synchronicity have better information environment. As a result, these firms disclose information that is of high quality. We also show that information conveyed through stock price synchronicity is more important than information conveyed through traditional governance mechanisms

  3. Consideration on the price stability – financial stability relationship in the context of financial globalization

    Directory of Open Access Journals (Sweden)

    Marius Apostoaie

    2010-12-01

    Full Text Available This study is focused upon the involvement of the central banks regarding the fulfillment of the two main objectives: price  stability and financial stability. These two key concepts are part of an old and ongoing debate that the current turmoil has revived, and that is whether monetary policy should aim, or not, at ensuring financial stability in parallel to its main objective of price stability. On both sides there are solid and well known arguments. In the beginning of the study I have  considered a literature review with regard to price and financial stability issues. After that I have tried to shed some light (from a theoretical point of view on the nature and dynamics of the fundamental interlinkages between the two aspects and there implications on the central banks and the economy. Finally I outline some general conclusions that have emerged in the present study.

  4. The effect of alcohol price on dependent drinkers' alcohol consumption.

    Science.gov (United States)

    Falkner, Carolyn; Christie, Grant; Zhou, Lifeng; King, Julian

    2015-12-18

    To investigate the current purchasing behaviours of a group of dependent drinkers and their potential response to future increases in the price of alcohol. 115 clients undergoing medical detoxification completed an anonymous survey about their daily alcohol consumption, its cost, their response to potential price increases and strategies previously used when unable to afford alcohol. Mean and median number of standard drinks consumed per day was 24, at a median cost of $25 NZD (95%CI $22, $30). Thirty-six per cent (95%CI 26%, 46%) of the group bought alcohol at $1 or less per standard drink, and the median number of drinks consumed per day (30) by this group was significantly higher (p=0.0028) than the rest of the sample (22.5). The most common strategy used if no money was available to purchase alcohol was to forgo essentials. If facing a potential price rise, 77% (95%CI 69%, 85%) would switch wholly or partially to a cheaper product and 13% (95%CI 8%, 21%) would cut down their drinking. Although the majority of our group would be financially impacted by an increase in the minimum price per standard drink, any potential impacts would be most significant in those buying the cheapest alcohol (who also drink the most), suggesting that minimum pricing may be an important harm minimisation strategy in this group. A minimum price per standard drink would limit the possibility of switching to an alternate cheaper product and likely result in an overall reduction in alcohol consumption in this group. Stealing alcohol, or the use of non-beverage alcohol, were seldom reported as previous strategies used in response to unaffordable alcohol and fears of such are not valid reasons for rejecting minimum pricing to reduce general population consumption.

  5. PRICE AND PRICING STRATEGIES

    OpenAIRE

    SUCIU Titus

    2013-01-01

    In individual companies, price is one significant factor in achieving marketing success. In many purchase situations, price can be of great importance to customers. Marketers must establish pricing strategies that are compatible with the rest of the marketing mix. Management should decide whether to charge the same price to all similar buyers of identical quantities of a product (a one-price strategy) or to set different prices (a flexible price strategy). Many organizations, especially retai...

  6. Investigating the effect of emotional and social stimulants of store atmosphere and prices on the customers' satisfaction and loyalty

    Directory of Open Access Journals (Sweden)

    Alireza Mosayebi

    2013-06-01

    Full Text Available Nowadays, it is impossible for retailers to establish a competitive and successful store in the marketplace through making a distinction in the outer facades of their stores, altering the pricing system, and diversifying the products offered in the store, due to the intense competition emerged in retailing markets. This leads the retailing markets to a new concept of marketplace, which is called “teaser retailing”. In this research, we first explain some related variables such as emotional and social stimulants, emotional-perceptual indicators, price of product, customer satisfaction, and customer loyalty. Then we investigate the impact of emotional and social stimulants and price of products on emotional-perceptual indicators as well as the relationship between emotional-perceptual indicators and customer satisfaction, and finally the relationship between customer satisfaction and his/her loyalty. The first hypothesis was associated with the effect of the store emotional stimulants on emotional-perceptual indicators and it was not confirmed. After investigation of the second hypothesis, it was cleared that the store social stimulants affects the buyer's emotional-perceptual indicators in purchasing point. On the other hand, the third hypothesis indicated that price of products affects the buyer's emotional-perceptual indicators in purchasing point. The fourth hypothesis indicated that emotional-perceptual indicators affect the customer satisfaction, and finally the fifth one indicated that the customer satisfaction leads to his/her loyalty.

  7. Evaluating the effects of urban congestion pricing: Geographical accessibility versus social surplus

    NARCIS (Netherlands)

    Tillema, T.; Verhoef, E.T.; van Wee, G.P.; van Amelsfort, D.

    2011-01-01

    In urbanised areas around the world, road pricing policies are considered more and more frequently, the aim often being to alleviate (some of the) external traffic-related costs. To assess the effects of a proposed road pricing measure, several evaluation measures can be used, coming from different

  8. Evaluating the effects of urban congestion pricing : geographical accessibility versus social surplus

    NARCIS (Netherlands)

    Tillema, Taede; Verhoef, Erik; van Wee, Bert; van Amelsfort, Dirk; van Wee, G.P

    2011-01-01

    In urbanised areas around the world, road pricing policies are considered more and more frequently, the aim often being to alleviate (some of the) external traffic-related costs. To assess the effects of a proposed road pricing measure, several evaluation measures can be used, coming from different

  9. Net effects of gasoline price changes on transit ridership in U.S. urban areas.

    Science.gov (United States)

    2014-12-01

    Using panel data of transit ridership and gasoline prices for ten selected U.S. urbanized areas over the time period of 2002 to 2011, : this study analyzes the effect of gasoline prices on ridership of the four main transit modesbus, light rail, h...

  10. A Hierarchical Bayes Error Correction Model to Explain Dynamic Effects of Price Changes

    NARCIS (Netherlands)

    D. Fok (Dennis); R. Paap (Richard); C. Horváth (Csilla); Ph.H.B.F. Franses (Philip Hans)

    2005-01-01

    textabstractThe authors put forward a sales response model to explain the differences in immediate and dynamic effects of promotional prices and regular prices on sales. The model consists of a vector autoregression rewritten in error-correction format which allows to disentangle the immediate

  11. The asymmetric effects of oil price and monetary policy shocks. A nonlinear VAR approach

    International Nuclear Information System (INIS)

    Rahman, Sajjadur; Serletis, Apostolos

    2010-01-01

    In this paper we investigate the asymmetric effects of oil price shocks and monetary policy on macroeconomic activity, using monthly data for the United States, over the period from 1983:1 to 2008:12. In doing so, we use a logistic smooth transition vector autoregression (VAR), as detailed in Terasvirta and Anderson (1992) and Weise (1999), and make a distinction between two oil price volatility regimes (high and low), using the realized oil price volatility as a switching variable. We isolate the effects of oil price and monetary policy shocks and their asymmetry on output growth and, following Koop et al. (1996) and Weise (1999), we employ simulation methods to calculate Generalized Impulse Response Functions (GIRFs) to trace the effects of independent shocks on the conditional means of the variables. Our results suggest that in addition to the price of oil, oil price volatility has an impact on macroeconomic activity and that monetary policy is not only reinforcing the effects of oil price shocks on output, it is also contributing to the asymmetric response of output to oil price shocks. (author)

  12. Renewable Energy and Negative Externalities: The Effect of Wind Turbines on House Prices

    NARCIS (Netherlands)

    Dröes, M.I.; Koster, H.R.A.

    2016-01-01

    In many countries, wind turbines are constructed as part of a strategy to reduce dependence on fossil fuels. In this paper, we measure the external effect of wind turbines on the transaction prices of nearby houses. A unique Dutch house price dataset covering the period 1985–2011 is used, as well as

  13. Renewable energy and negative externalities: the effect of wind turbines on house prices

    NARCIS (Netherlands)

    Dröes, M.I.; Koster, H.R.A.

    2014-01-01

    In many countries, wind turbines are constructed as part of a strategy to reduce dependence on fossil fuels. In this paper, we measure the external effect of wind turbines on the transaction prices of nearby houses. A unique house price dataset covering the period 1985-2011 is used, including the

  14. 77 FR 56243 - Options Price Reporting Authority; Notice of Filing and Immediate Effectiveness of Proposed...

    Science.gov (United States)

    2012-09-12

    ... SECURITIES AND EXCHANGE COMMISSION [Release No. 34-67791; File No. SR-OPRA-2012-05] Options Price Reporting Authority; Notice of Filing and Immediate Effectiveness of Proposed Amendment to the Plan for...'') \\1\\ and Rule 608 thereunder,\\2\\ notice is hereby given that on August 27, 2012, the Options Price...

  15. The asymmetric effects of oil price and monetary policy shocks. A nonlinear VAR approach

    Energy Technology Data Exchange (ETDEWEB)

    Rahman, Sajjadur [Department of Economics, University of Saskatchewan, Saskatoon (Canada); Serletis, Apostolos [Department of Economics, University of Calgary, Calgary (Canada)

    2010-11-15

    In this paper we investigate the asymmetric effects of oil price shocks and monetary policy on macroeconomic activity, using monthly data for the United States, over the period from 1983:1 to 2008:12. In doing so, we use a logistic smooth transition vector autoregression (VAR), as detailed in Terasvirta and Anderson (1992) and Weise (1999), and make a distinction between two oil price volatility regimes (high and low), using the realized oil price volatility as a switching variable. We isolate the effects of oil price and monetary policy shocks and their asymmetry on output growth and, following Koop et al. (1996) and Weise (1999), we employ simulation methods to calculate Generalized Impulse Response Functions (GIRFs) to trace the effects of independent shocks on the conditional means of the variables. Our results suggest that in addition to the price of oil, oil price volatility has an impact on macroeconomic activity and that monetary policy is not only reinforcing the effects of oil price shocks on output, it is also contributing to the asymmetric response of output to oil price shocks. (author)

  16. The Effects of Price Discrimination on the Elasticity of Demand for Higher Education.

    Science.gov (United States)

    Weinberg, Ira

    The purpose of this study was to determine what effect price discrimination (differential pricing) would have on institutional gross-fee income. Enrollment and tuition data were gathered from all schools in one particular market area for the years 1969-72. In this situation it was determined that overall demand for higher education was highly…

  17. Least Squares Inference on Integrated Volatility and the Relationship between Efficient Prices and Noise

    DEFF Research Database (Denmark)

    Nolte, Ingmar; Voev, Valeri

    The expected value of sums of squared intraday returns (realized variance) gives rise to a least squares regression which adapts itself to the assumptions of the noise process and allows for a joint inference on integrated volatility (IV), noise moments and price-noise relations. In the iid noise...

  18. Effectiveness of the management of price risk methodologies for the corn market based on trading signals

    Directory of Open Access Journals (Sweden)

    W. Rossouw

    2013-03-01

    Full Text Available Corn production is scattered geographically over various continents, but most of it is grown in the United States. As such, the world price of corn futures contracts is largely dominated by North American corn prices as traded on the Chicago Board of Trade. In recent years, this market has been characterised by an increase in price volatility and magnitude of price movement as a result of decreasing stock levels. The development and implementation of an effective and successful derivative price risk management strategy based on the Chicago Board of Trade corn futures contract will therefore be of inestimable value to market stakeholders worldwide. The research focused on the efficient market hypothesis and the possibility of contesting this phenomenon through an application of a derivative price risk management methodology. The methodology is based on a combination of an analysis of market trends and technical oscillators with the objective of generating returns superior to that of a market benchmark. The study found that market participants are currently unable to exploit price movement in a manner which results in returns that contest the notion of efficient markets. The methodology proposed, however, does allow the user to consistently achieve returns superior to that of a predetermined market benchmark. The benchmark price for the purposes of this study was the average price offered by the market over the contract lifetime, and as such, the efficient market hypothesis was successfully contested

  19. An Empirical Investigation of Consumer Price Perception and Reputation Dimensions’ Effects on Attitude Toward Private Label Brands

    OpenAIRE

    Chen, Haidong; Sadeque, Saalem

    2007-01-01

    The study empirically investigated the effects of consumer price perception dimension and reputation dimension on attitude toward private label brands among young Swedish consumers. Consumer price perception dimension includes value consciousness, price consciousness, and price-quality association factors. Reputation dimension includes retailer’s reputation, existence of word-of-mouth (WOM), positive WOM, and negative WOM. Previous studies have found that factors under the consumer price perc...

  20. The Effect of Wind Power on Electricity Prices in Denmark

    DEFF Research Database (Denmark)

    Jonsson, Tryggvi; Madsen, Henrik

    This report is the result of a special course taken by the author at IMM DTU under the guidance of professor Henrik Madsen. The aim of the project is to analyze the influence wind energy has on the electricity spot price in Western Denmark and investigate how information about wind power production...... can be used to model the electricity spot price. Various model types were tried, giving very different performance. Here, only the models that performed best are discussed in order to keep focus on the projects goal....

  1. Static and Dynamic Pricing Strategies in a Closed-Loop Supply Chain with Reference Quality Effects

    Directory of Open Access Journals (Sweden)

    Zhichao Zhang

    2018-01-01

    Full Text Available Remanufacturing of returned products has been increasingly recognized in industries as an effective approach to face environmental responsibility, government regulations, and increased awareness of consumers. In this paper, we address a closed-loop supply chain (CLSC in which the manufacturer produces the brand-new products, as well as the remanufactured goods while the retailer sells these products to customers. We consider several different scenarios: the manufacturer and the retailer adopt a steady-state price or a dynamic price with reference quality effects in a centralized case; either, neither or both the manufacturer and the retailer price dynamically with reference quality effects, respectively, in a decentralized model. We solve the problem with the retailer recycling the sold copies and deduce the optimal pricing strategies while the manufacturer in charge of recovering the used items in such a CLSC. The result shows that dynamic pricing strategies are much more profitable for the supply chain and its members when compared with pricing statically; the dynamic pricing strategies with time-varying quality characterized by reference quality are more suited to a long-term and cooperative closed-loop supply chain. Moreover, the optimal recycling fraction relies on the recovery cost coefficient and proves to be uniform despite adopting a dynamic price and quality in all distinct cases.

  2. Effects of yearling sale purchase price, exercise history, lameness, and athletic performance on purchase price of Thoroughbreds at 2-year-old in-training sales.

    Science.gov (United States)

    Preston, Stephanie A; Brown, Murray P; Chmielewski, Terese L; Trumble, Troy N; Zimmel, Dana N; Hernandez, Jorge A

    2012-12-01

    To determine the effects of yearling sale purchase price, exercise history, lameness, and athletic performance (speed) on purchase price of 2-year-old in-training Thoroughbreds and to compare the distance exercised within 60 days prior to 2-year-old in-training sales between horses with high yearling sale purchase prices versus those with low yearling sale purchase prices and between horses with lameness during training and those without lameness during training. Prospective study. 51 Thoroughbreds. Thoroughbreds purchased at a yearling sale were trained prior to resale at 2-year-old in-training sales. Amount of exercise and lameness status during training and speed of horses at 2-year-old in-training sales were determined. Data were analyzed via the Wilcoxon rank sum test and ANOVA. Median purchase price of horses at 2-year-old in-training sales was $37,000. The 2-year-old in-training sale purchase price was associated with yearling sale purchase price and distance galloped within 60 days prior to and speed recorded at 2-year-old in-training sales. Horses with high yearling sale purchase prices typically had high 2-year-old in-training sale purchase prices, had low distances galloped within 60 days prior to 2-year-old in-training sales, and were classified as fast at 2-year-old in-training sales. Lameness alone was not associated with 2-year-old in-training sales purchase price. However, lameness was associated with a low distance galloped before 2-year-old in-training sales, particularly for horses with a high yearling sale purchase price; this finding suggested that yearling sale purchase price can affect training management decisions for horses with lameness.

  3. Oil price and food price volatility dynamics: The case of Nigeria

    Directory of Open Access Journals (Sweden)

    Ijeoma C. Nwoko

    2016-12-01

    Full Text Available This study examines the long and short run relationships between oil price and food price volatility as well as the causal link between them. The study used annual food price volatility index from FAO from 2000 to 2013 and crude oil price from U.S. Energy Information and Administration (EIA from 2000 to 2013. The Johansen and Jesulius co-integration test revealed that there is a long run relationship between oil price and domestic food price volatility. The vector error correction model indicated a positive and significant short run relationship between oil price and food price volatility. The Granger causality test revealed a unidirectional causality with causality running from oil price to food price volatility but not vice versa. It is recommended that policies and interventions that will help reduce uncertainty about food prices such as improved market information, trade policies and investment in research and development among others should be encouraged. Also to reduce the effect of oil price shock, it is recommended that government should subsidise pump price of refined oil, seek alternative sources of energy and there should be less dependence on oil for fertilizer production.

  4. Plutonium dose-effect relationship

    International Nuclear Information System (INIS)

    Matsuoka, Osamu

    1976-01-01

    Dose in internal exposure to Pu was investigated, and dose-effect relationship was discussed. Dose-effect relationship in internal exposure was investigated by means of two methods, which were relationship between dose and its effect (relationship between μ Ci/Kg and its effect), and exposure dose and its effects (rad-effect), and merits and demerits of two methods were mentioned. Problems in a indication method such as mean dose were discussed with respect to the dose in skeleton, the liver and the lung. Pu-induced osteosarcoma in mice rats, and beagles was described, and differences in its induction between animals were discussed. Pulmonary neoplasma induced by 239 PuO 2 inhalation in beagles was reported, and description was made as to differences in induction of lung cancer between animals when Pu was inhaled and was taken into the lung. A theoretical and experimental study of a extrapolation of the results of the animal experiment using Pu to human cases is necessary. (Serizawa, K.)

  5. The Effect of Food Prices on Inflation in the Republic of Serbia

    Directory of Open Access Journals (Sweden)

    Radukić Snežana

    2015-05-01

    Full Text Available In the Republic of Serbia, food accounts for a significant share in the consumer price index through which the inflation is statistically expressed. Therefore, in considerations of the basic factors of increase in the general price level, a special emphasis is placed on the specific features of the market of agricultural-food products. The aim of this research is to peruse the effect of the characteristics of the food market in Serbia on the inflation rate. High volatility of food prices is present because of the instability of this market, mainly due to seasonal fluctuations of supply and the effect of natural factors. Bearing in mind that the increase in food prices is the main determinant of the increase in the inflation rate, the indirect state control is very important so as to maintain price stability. Special importance is attached to the following instruments of economic policy: commodity reserves, storage policy, and fiscal and foreign trade policy.

  6. Exploratory study on the effect of discount pricing strategies for new product introduction

    Science.gov (United States)

    Mat Zaib, Nurul Afiqah; Bazin, Nor Erne Nazira; Mustaffa, Noorfa Haszlinna

    2013-04-01

    Rapid introduction of new product into the market has resulted in growing competition between retailers. Nowadays, retailers compete with one another in order to increase revenue and to maintain their position in the marketplace. This situation has forced the retailers to enhance their strategic management as well as creating competitive advantages. Generally, this situation can be observed in highly demanded product such as fashion goods and high technology electronic devices (smart phone, notebook). The consequence from the intense competition and new product introduction is difficulties in retailers pricing management. Retailers are now facing with complexity in making decisions on suitable pricing strategies and discount level for new product in association with the product life cycle. Thus, this research aims to investigate the suitable discount pricing strategies that can be integrated in every phase of product life cycle. This paper presents relationships between the discount pricing and the stages in the product life cycle in the form of conceptual diagram and mathematical expression. A system dynamic approach is used for developing the conceptual diagram and formulating the mathematical expression for the discount pricing strategies to visualize the relationship between discount pricing and product life cycle.

  7. EFFECTS OF OIL PRICE SHOCKS ON THE ECONOMIC SECTORS IN MALAYSIA

    Directory of Open Access Journals (Sweden)

    Mohd Shahidan Shaari

    2013-10-01

    Full Text Available This paper aims to examine the effects of oil price shocks on economic sectors in Malaysia. A unit root test was conducted, in which data were shown to be non-stationary in all levels, and stationary in the first difference for all variables. The co-integration model was applied, and the results indicated that one co-integrating equation exists, suggesting the long-term effects of oil prices on the agriculture, construction, manufacturing, and transportation sectors. Finally, Grange causality test was performed, and the results implied that in Malaysia, oil price shocks can affect agriculture, similar to Hanson et al. (2010. Oil price instability also influences the performance of the agriculture sector, contrary to the results of Alper and Torul (2009. In addition, the construction sector was found to be dependent on oil prices. Therefore, the current study has an important implication for the Malaysian government in formulating policies on oil prices. The Malaysian government needs to control the price to ensure that unstable price will not harm the agriculture, manufacturing, and construction sectors.

  8. Dynamic Pricing of Fashion-Like Multiproducts with Customers’ Reference Effect and Limited Memory

    Directory of Open Access Journals (Sweden)

    Mengqi Liu

    2014-01-01

    Full Text Available We study a fashion retailer’s dynamic pricing problem in which consumers present reference effect and memory window. Based on the theory of Baucells et al. (2011, we propose a new reference-price updating mechanism in fashion and textile (FT industry where consumers have a bounded memory window and anchor on the first and most recent price in any memory window. Moreover, we study the impacts of this mechanism on optimal pricing policy for a retailer selling multiple fashion-like products and analyze optimal price’s steady state, monotonicity, and convergence. For two-product case, we find that, for otherwise identical products, the steady-state price of a core product is lower than that of a noncore product. We compute the retailer’s loss of revenue if he incorrectly assumes the reference-price effect to be at the product level and prices the products individually. Further, as illustrated with numerical results, our model is a flexible way to make pricing strategy if the retailer can anticipate the length of consumers’ memory window.

  9. 340B Drug Pricing Program Ceiling Price and Manufacturer Civil Monetary Penalties Regulation. Final rule; further delay of effective date.

    Science.gov (United States)

    2017-05-19

    The Health Resources and Services Administration (HRSA) administers section 340B of the Public Health Service Act (PHSA), referred to as the "340B Drug Pricing Program" or the "340B Program." HRSA published a final rule on January 5, 2017, that set forth the calculation of the ceiling price and application of civil monetary penalties. The final rule applied to all drug manufacturers that are required to make their drugs available to covered entities under the 340B Program. In accordance with a January 20, 2017, memorandum from the Assistant to the President and Chief of Staff, entitled "Regulatory Freeze Pending Review," HRSA issued an interim final rule that delayed the effective date of the final rule published in the Federal Register (82 FR 1210, (January 5, 2017)) to May 22, 2017. HHS invited commenters to provide their views on whether a longer delay of the effective date to October 1, 2017, would be more appropriate. After consideration of the comments received on the interim final rule, HHS is delaying the effective date of the January 5, 2017 final rule, to October 1, 2017.

  10. Cross-border electricity market effects due to price caps in an emission trading system: An agent-based approach

    International Nuclear Information System (INIS)

    Richstein, Jörn C.; Chappin, Emile J.L.; Vries, Laurens J. de

    2014-01-01

    The recent low CO 2 prices in the European Union Emission Trading Scheme (EU ETS) have triggered a discussion whether the EU ETS needs to be adjusted. We study the effects of CO 2 price floors and a price ceiling on the dynamic investment pathway of two interlinked electricity markets (loosely based on Great Britain, which already has introduced a price floor, and on Central Western Europe). Using an agent-based electricity market simulation with endogenous investment and a CO 2 market (including banking), we analyse the cross-border effects of national policies as well as system-wide policy options. A common, moderate CO 2 auction reserve price results in a more continuous decarbonisation pathway. This reduces CO 2 price volatility and the occurrence of carbon shortage price periods, as well as the average cost to consumers. A price ceiling can shield consumers from extreme price shocks. These price restrictions do not cause a large risk of an overall emissions overshoot in the long run. A national price floor lowers the cost to consumers in the other zone; the larger the zone with the price floor, the stronger the effect. Price floors that are too high lead to inefficiencies in investment choices and to higher consumer costs. - Highlights: • Cross-border effects of CO 2 policies were investigated with an agent-based model. • The current EU ETS might cause CO 2 price shocks and CO 2 price volatility. • A CO 2 auction reserve price does not lower welfare, but lowers CO 2 price volatility. • A national CO 2 price floor lowers consumer cost in the other countries. • A CO 2 price ceiling does not lead to an overshoot of emissions

  11. The deregulation effects of Finnish electricity markets on district heating prices

    International Nuclear Information System (INIS)

    Linden, Mikael; Peltola-Ojala, Paeivi

    2010-01-01

    This paper investigates an empirical econometric panel data model in order to test deregulation and regional market structure effects on district heating prices in Finland for period 1996-2002. The data was collected from 76 district heating firms throughout Finland. Special emphasis is placed on the modeling of policy-induced competition, which began in year 1999, regional based fuel selection, local market structures, and distribution network sharing effects. The results imply that the local structures of energy production and sales have an important role to play in the formation of market prices and that the price lowering effects of energy market deregulation are permanent. (author)

  12. Least Squares Inference on Integrated Volatility and the Relationship between Efficient Prices and Noise

    OpenAIRE

    Nolte, Ingmar; Voev, Valeri

    2009-01-01

    The expected value of sums of squared intraday returns (realized variance)gives rise to a least squares regression which adapts itself to the assumptions ofthe noise process and allows for a joint inference on integrated volatility (IV),noise moments and price-noise relations. In the iid noise case we derive theasymptotic variance of the regression parameter estimating the IV, show thatit is consistent and compare its asymptotic efficiency against alternative consistentIV measures. In case of...

  13. Evaluating the Relationship between the Population Trends, Prices, Heat Waves, and the Demands of Energy Consumption in Cities

    Directory of Open Access Journals (Sweden)

    Katherine S. Fu

    2015-11-01

    Full Text Available The demands of energy consumption have been projected as a key factor that affects an economy at the city, national, and international level. Contributions to total U.S. greenhouse gas emissions in 2012 by various urban sectors include electricity (31%, transportation (28%, industry (20%, agriculture (10%, and commercial and residential (10%. Yet the heavy demands of energy consumption in the cities by residents, commercial businesses, industries, and transportation are important for maintaining and sustaining sufficient economic growth. The purpose of this study is to investigate the relationships between population trends, historical energy consumptions, the changes of average electricity price, average annual temperature, and extreme weather events for three selected cities: New York, Chicago, and Los Angeles. These cities are exemplary of, metropolitan areas in the East, Middle, and the Western regions of the U.S. We find that the total energy consumptions of New York, Chicago, and Los Angeles are influenced to various degrees by changes in population, temperature and the average price of electricity and that only one city, Los Angeles, does price significantly affect electricity use. This finding has implications for policy making, suggesting that each city’s climate, size and general economic priorities must be considered in developing climate change mitigation strategies and incentives.

  14. Petroleum price

    International Nuclear Information System (INIS)

    Chevallier, B.

    2009-01-01

    The 'AFTP' conference on 'petroleum prices' organized by Total last March, tries to explain the different aspects of the crisis we undergo for July 2007 and its consequential effects on the petroleum markets (supply, demand evolvements, impacts on reserves, prices, refining...). (O.M.)

  15. Industrial pricing in Brazil in the 2010s: The pass-through effect

    Directory of Open Access Journals (Sweden)

    Felipe Câmara

    2017-01-01

    Full Text Available The aim of this paper is to discuss the impact of costs on industrial inflation in Brazil. Assuming that inflation is mainly cost-push, this paper estimates the exchange rate pass-through on industrial prices. Based on Kalecki’s price equation, the paper explores data from the producer price index from 2010 onward. One of the main findings is that more than 60% of the inflationary acceleration in the industrial prices can be explained by exchange rate devaluations. The econometric exercise also showed that when demand increases, even if labor unit costs do not change, firms increase their profit margin. Finally, the paper questions the effectiveness of the inflation targeting policy, when the diagnosis to the pressure on prices comes from the costs, and not from demand.

  16. State Approaches to Demand Reduction Induced Price Effects: Examining How Energy Efficiency Can Lower Prices for All

    Energy Technology Data Exchange (ETDEWEB)

    Taylor, Colin [Oak Ridge National Lab. (ORNL), Oak Ridge, TN (United States); Hedman, Bruce [Oak Ridge National Lab. (ORNL), Oak Ridge, TN (United States); Goldberg, Amelie [Oak Ridge National Lab. (ORNL), Oak Ridge, TN (United States)

    2015-12-01

    Effects (DRIPE) as a real, quantifiable benefit of energy efficiency and demand response programs. DRIPE is a measurement of the value of demand reductions in terms of the decrease in wholesale energy prices, resulting in lower total expenditures on electricity or natural gas across a given grid. Crucially for policymakers and consumer advocates, DRIPE savings accrue not only to the subset of customers who consume less, but to all consumers. Rate-paying customers realize DRIPE savings when price reductions across an electricity or natural gas system are passed on to all retail customers as lower rates (depending upon regulation and market structure, residual savings may be wholly or partially retained by utilities). DRIPE savings, though seemingly small in terms of percent price reductions or dollars per household, can amount to hundreds of millions of dollars per year across entire states or grids. Therefore, accurately assessing DRIPE benefits can help to ensure appropriate programs are designed and implemented for energy efficiency measures. This paper reviews the existing knowledge and experience from select U.S. states regarding DRIPE (including New York and Ohio), and the potential for expanded application of the concept of DRIPE by regulators. Policymakers and public utility commissions have a critical role to play in setting the methodology for determining DRIPE, encouraging its capture by utilities, and allocating DRIPE benefits among utilities, various groups of customers, and/or society at large. While the methodologies for estimating DRIPE benefits are still being perfected, policymakers can follow the examples of states such as Maryland and Vermont in including conservative DRIPE estimates in their resource planning.

  17. Pharmaceutical pricing in emerging markets: effects of income, competition, and procurement.

    Science.gov (United States)

    Danzon, Patricia M; Mulcahy, Andrew W; Towse, Adrian K

    2015-02-01

    This paper analyzes determinants of ex-manufacturer prices for originator and generic drugs across countries. We focus on drugs to treat HIV/AIDS, TB, and malaria in middle and low-income countries (MLICs), with robustness checks to other therapeutic categories and the full income range of countries. We examine the effects of per capita income, income dispersion, competition from originator and generic substitutes, and whether the drugs are sold to retail pharmacies versus tendered procurement by non-government organizations. The cross-national income elasticity of prices is 0.27 across the full income range of countries but is 0.0-0.10 between MLICs, implying that drugs are least affordable relative to income in the lowest income countries. Within-country income inequality contributes to relatively high prices in MLICs. Although generics are priced roughly 30% lower than originators on average, the variance is large. Additional generic competitors only weakly affect prices, plausibly because generic quality uncertainty leads to competition on brand rather than price. Tendered procurement that imposes quality standards attracts multinational generic suppliers and significantly reduces prices of originator and generic drugs, compared with their respective prices to retail pharmacies. © 2013 The Authors Health Economics Published by John Wiley & Sons Ltd.

  18. Effect of perceived Price, Brand Image, perceived Quality and Trust on Consumer’s buying Preferences

    Directory of Open Access Journals (Sweden)

    B. Afsar

    2014-06-01

    Full Text Available The study investigates the effect of factors such as perceived price, brand image, perceived quality and trust on consumers' evaluative judgments for beautification products. Results showed that brand image has positive and significant impact on consumer trust. Increase in perceived quality and trust depicted increase in a particular brand preference. Decrease in perceived price showed significant and positive impact on brand preference. This study measured the effect of brand image, price, quality and consumer trust information on how individuals subjectively evaluate a brand.

  19. The Effect of Managerial Ability on Future Stock Price Crash Risk: Evidence from Korea

    Directory of Open Access Journals (Sweden)

    Soo Yeon Park

    2017-12-01

    Full Text Available This study examines the effect of managerial ability on subsequent stock price crash risk using listed firm data in Korea. Compared to some financially advanced countries, the influence of managers is particularly more powerful in Korea, as ownership and management are not effectively separate in most Korean firms. In addition, we considered the effect of large business groups called Chaebol, which is family-run conglomerates with unique corporate governance system that hugely affect the Korean economy. It is important to recognize determinants of the stock price crash risk which would result in doubt on going concern to enhance the company’s sustainable management. Hence, this study focuses on the managerial ability as one of the main factors of the stock price crash risk. We use the measures of firm-specific stock price crash risk based on Hutton et al. (2009. Managerial ability is estimated through a Data Envelopment Analysis (DEA and tobit regressions following Demerjian et al. (2012. From the empirical tests, there is a negative association between managerial ability and stock price crash risk. This suggests that managers with a higher ability release more voluntary disclosure to signal their ability, ultimately lowering the subsequent stock price crash risk. We also find that firms in large business groups, Chaebol, weaken the negative association between managerial ability and subsequent stock price crash risk.

  20. The Welfare Effects of Price Advertising with Basket Shopping: Structural Estimates from Supermarket Promotions

    DEFF Research Database (Denmark)

    Gao, Cixiu

    2015-01-01

    This paper empirically examines welfare effects of the informative price advertising in the supermarket retail industry, using structural estimation approaches and individual scanner data. Supermarket retailers use promotions (advertised price cuts) to announce sales as a competing instrument...... promotion intensities are socially excessive. Moreover, the welfare implications are determined by the two opposite effects of price advertising: (1) the informing and therefore welfare-improving effect, and (2) the welfare-harming effect that higher transportation costs incur when promotions are used....... Using a spatial model that accounts for consumer shopping behavior and retailer pricing behavior, I structurally estimate consumer demand and the marginal costs of promotion, following the discrete choice literature and moment inequality approach. The simulation results numerically show that the private...

  1. The effects of unit pricing system upon household solid waste management: The Korean experience

    Energy Technology Data Exchange (ETDEWEB)

    Hong, S.

    1999-09-01

    Initial effects of adoption of a unit pricing system paired with aggressive recycling programs appear to be substantial. This paper explores the impact of price incentives under the unit pricing system on household solid waste generation and recycling in Korea. The author employs a simultaneous equation model considering the feedback effects between total waste generation and recycling. Estimation results using 3017 Korean household survey data indicate that a rise in waste collection fee induces households to recycle more wastes. However, this effect is partially offset by decreases in source-reduction efforts due to the feedback effects, resulting in relatively lower price elasticity of demand for solid waste collection services. This implies that household demand for solid waste collection services will not decrease much with additional increases in the collection fee, unless further recycling incentives such as more frequent recyclable pickup services are accompanied.

  2. 75 FR 64753 - Options Price Reporting Authority; Notice of Filing and Immediate Effectiveness of Proposed...

    Science.gov (United States)

    2010-10-20

    ...-OPRA-2003-01. OPRA reorganized as a limited liability company effective as of January 1, 2010, and the current OPRA Plan is entitled ``Limited Liability Company Agreement of Options Price Reporting Authority...

  3. Effect of nuclear power generation on the electricity price in Korea

    International Nuclear Information System (INIS)

    Lee, Man Kee; Song, Kee Dong; Kim, Seung Soo; Kim, Sung Kee; Lee, Yung Kun

    1994-12-01

    The main purpose of this study is to estimate the effect of nuclear power generation on the electricity price by analysing electricity supply sector. The effects on electricity price changes are estimated in terms of following respects: - Restriction on the additional introduction of nuclear power plant. - CO 2 emission quantity control and carbon tax. A computer model by using Linear Programming optimization technique was also developed for these analyses. 10 figs, 12 tabs, 32 refs. (Author)

  4. The effects of price and perceived quality on the behavioural economics of alcohol, amphetamine, cannabis, cocaine, and ecstasy purchases.

    Science.gov (United States)

    Goudie, Andrew J; Sumnall, Harry R; Field, Matt; Clayton, Hannah; Cole, Jon C

    2007-07-10

    Behavioural economic models of substance use describe the relationship between changes in unit price and consumption. However, these models rarely take account of the perceived quality (i.e. potency) of controlled drugs. Therefore we investigated the effects of both price and quality on the decision to purchase controlled drugs by polysubstance misusers. Forty current polysubstance misusers (29 males, 11 females; mean age 23.8) were recruited into the study. Participants were asked to hypothetically purchase drugs from a price list of alcohol, amphetamine, cannabis, cocaine and ecstasy at different levels of quality and price (i.e. better quality drugs cost more money). The disposable income available for those purchases was systematically varied in order to determine the impact of income on the decision to purchase drugs. Demand for both normal and strong alcohol was income inelastic. Demand for both poor and average quality cannabis and ecstasy was income inelastic, but demand for good quality cannabis and ecstasy was income elastic. The demand for poor quality cocaine was income inelastic, with the demand for both average and good quality cocaine being income elastic. Participants reported too few purchases of amphetamine, which precluded behavioural economic analysis. These results suggest that, like other goods, controlled drugs are purchased based upon the consumer's interpretations of their relative value. Therefore, it is probable that the purchase and subsequent use of controlled drugs by polysubstance misusers will be heavily influenced by the economic environment.

  5. On the long run effects of market splitting: Why more price zones might decrease welfare

    International Nuclear Information System (INIS)

    Grimm, Veronika; Martin, Alexander; Weibelzahl, Martin; Zöttl, Gregor

    2016-01-01

    In liberalized electricity markets we observe different approaches to congestion management. While nodal pricing is implemented in Canada and some markets in the United States, European markets are split up into a limited number of price zones with uniform prices, in order to at least partially realize the benefits of regional price differentiation. Zonal boundaries often coincide with national borders, but some countries are also split into multiple zones. In this paper we shed light on possible negative welfare effects of market splitting that arise in a model where investment incentives in new generation capacity are taken into account if zones are misspecified. We show that standard approaches to configure price zones – on the basis of projected nodal price differences or congested transmission capacity – may fail to suggest reasonable zone specifications. Also an adjustment of Available Transfer Capacities (ATCs) between zones or a switch to flow-based market splitting does not ensure positive welfare effects. Our analysis suggests that a careful and detailed evaluation of the system is needed to ensure a reasonable zone configuration. - Highlights: •We analyze investment and production in energy only markets with market splitting. •Market splitting can lead to decreased welfare even for reasonably chosen zones. •We identify the reasons for the negative impact of introducing prices zones.

  6. THE EFFECT OF MACROECONOMIC VARIABLES ON BANKING STOCK PRICE INDEX IN INDONESIA STOCK EXCHANGE

    Directory of Open Access Journals (Sweden)

    Laduna R.

    2018-01-01

    Full Text Available Stock price index can be regarded as a barometer in the measuremet of a nation’s economic condition, besides it can also be used in conducting statistical analysis on the current market. Stock is the proof of one’s share in a company in the form of securities issued by the listed go-public companies. This study was conducted to measure the effect of macroeconomic variables such as inflation, interest rate, and exchange rate on banking stock price index in Indonesia stock exchange or Bursa Efek Indonesia (BEI. The results of study show that inflation and exchange rate posively influence the stock price index. The positive effect of the exchange rate shows that issuers who were positively affected by Rupiah (IDR depreciation appear to be the most dominant group. Meanwhile, the interest rate or Suku Bunga (SBI has a negative effect. Lower interest rate stimulates higher investments and better economic activities which increase the stock price.

  7. Does it actually feel right? A replication attempt of the rounded price effect.

    Science.gov (United States)

    Harms, Christopher; Genau, Hanna A; Meschede, Carolin; Beauducel, André

    2018-04-01

    How does the roundedness of prices affect product evaluations? The 'rounded price effect' postulates that depending on the context, rounded or non-rounded prices increase the purchase likelihood of consumers. The study presented here is a replication attempt of these findings and the proposed mediation of the effect through a sense of 'feeling right' when evaluating the product. p -Curve analysis and the R-Index are used to assess the robustness of the originally reported statistics since original data were not available. A pre-registered replication of study 5 from the original article was conducted in a sample of N =588 participants. For both the original product and one alternative product neither an interaction between price roundedness and context, nor a mediation through 'a sense of feeling right' was found. Our results suggest that the effect is either smaller than originally reported or contingent on other, not investigated factors. Further studies might investigate contingencies in larger samples.

  8. The Effect of Macroeconomic Factors on Stock Prices of Swiss Real Estate Companies

    Directory of Open Access Journals (Sweden)

    Marie Ligocká

    2016-01-01

    Full Text Available Stock values of companies listed on stock exchanges could be influenced by many factors. The aim of this article is to examine existence and character of relationship between stock prices of selected Swiss real estate companies and macroeconomic fundamentals (GDP, interest rate, price level. The existence of long-run equilibrium relationship between stock prices and macroeconomic fundamentals is tested with the Johansen cointegration. The short run dynamics between the variables is examined by Vector Error Correction modelling and the Granger causality test. During the period 2005 – 2014 we revealed a long‑run equilibrium for five of the six analyzed stocks. We also confirmed that macroeconomic variables and the interest rate in particular, can explain a long-run behavior of stock prices. By contrast, macroeconomic variables are usually short in explanation of short‑run dynamics of stock prices. However, the results differ substantially among the stocks and, hence, they prevent us from drawing any general conclusion for the entire real estate sector in Switzerland.

  9. Effects of asymmetric medical insurance subsidy on hospitals competition under non-price regulation.

    Science.gov (United States)

    Wang, Chan; Nie, Pu-Yan

    2016-11-15

    Poor medical care and high fees are two major problems in the world health care system. As a result, health care insurance system reform is a major issue in developing countries, such as China. Governments should take the effect of health care insurance system reform on the competition of hospitals into account when they practice a reform. This article aims to capture the influences of asymmetric medical insurance subsidy and the importance of medical quality to patients on hospitals competition under non-price regulation. We establish a three-stage duopoly model with quantity and quality competition. In the model, qualitative difference and asymmetric medical insurance subsidy among hospitals are considered. The government decides subsidy (or reimbursement) ratios in the first stage. Hospitals choose the quality in the second stage and then support the quantity in the third stage. We obtain our conclusions by mathematical model analyses and all the results are achieved by backward induction. The importance of medical quality to patients has stronger influence on the small hospital, while subsidy has greater effect on the large hospital. Meanwhile, the importance of medical quality to patients strengthens competition, but subsidy effect weakens it. Besides, subsidy ratios difference affects the relationship between subsidy and hospital competition. Furthermore, we capture the optimal reimbursement ratio based on social welfare maximization. More importantly, this paper finds that the higher management efficiency of the medical insurance investment funds is, the higher the best subsidy ratio is. This paper states that subsidy is a two-edged sword. On one hand, subsidy stimulates medical demand. On the other hand, subsidy raises price and inhibits hospital competition. Therefore, government must set an appropriate subsidy ratio difference between large and small hospitals to maximize the total social welfare. For a developing country with limited medical resources

  10. Effects of price manipulations on consumer behavior in sheltered workshop token economy.

    Science.gov (United States)

    Schroeder, S R; Barrera, F J

    1976-09-01

    The consumer behavior of institutionalized retarded clients in a sheltered workshop token economy were evaluated by changing prices in the workshop store. In the first experiment we found that clients displayed elasticity of demand in that raising the prices of frequently purchased goods reduced the frequency and amount spent on more expendable items. Results from the second experiment showed that this change in spending pattern was not due to the relative modal unit price of item classes. The regulation of demand for consumer goods is a potentially useful way to maintain economic balance and effectiveness of a token economy.

  11. Modelling weather effects for impact analysis of residential time-of-use electricity pricing

    International Nuclear Information System (INIS)

    Miller, Reid; Golab, Lukasz; Rosenberg, Catherine

    2017-01-01

    Analyzing the impact of pricing policies such as time-of-use (TOU) is challenging in the presence of confounding factors such as weather. Motivated by a lack of consensus and model selection details in prior work, we present a methodology for modelling the effect of weather on residential electricity demand. The best model is selected according to explanatory power, out-of-sample prediction accuracy, goodness of fit and interpretability. We then evaluate the effect of mandatory TOU pricing in a local distribution company in southwestern Ontario, Canada. We use a smart meter dataset of over 20,000 households which is particularly suited to our analysis: it contains data from the summer before and after the implementation of TOU pricing in November 2011, and all customers transitioned from tiered rates to TOU rates at the same time. We find that during the summer rate season, TOU pricing results in electricity conservation across all price periods. The average demand change during on-peak and mid-peak periods is −2.6% and −2.4% respectively. Changes during off-peak periods are not statistically significant. These TOU pricing effects are less pronounced compared to previous studies, underscoring the need for clear, reproducible impact analyses which include full details about the model selection process. - Highlights: • We study models for the effect of weather on residential electricity demand. • We evaluate the effect of mandatory TOU pricing in a local distribution company in Ontario, Canada. • We find the effect of TOU pricing to be less pronounced compared to previous studies.

  12. Cryptocurrency price drivers: Wavelet coherence analysis revisited.

    Science.gov (United States)

    Phillips, Ross C; Gorse, Denise

    2018-01-01

    Cryptocurrencies have experienced recent surges in interest and price. It has been discovered that there are time intervals where cryptocurrency prices and certain online and social media factors appear related. In addition it has been noted that cryptocurrencies are prone to experience intervals of bubble-like price growth. The hypothesis investigated here is that relationships between online factors and price are dependent on market regime. In this paper, wavelet coherence is used to study co-movement between a cryptocurrency price and its related factors, for a number of examples. This is used alongside a well-known test for financial asset bubbles to explore whether relationships change dependent on regime. The primary finding of this work is that medium-term positive correlations between online factors and price strengthen significantly during bubble-like regimes of the price series; this explains why these relationships have previously been seen to appear and disappear over time. A secondary finding is that short-term relationships between the chosen factors and price appear to be caused by particular market events (such as hacks / security breaches), and are not consistent from one time interval to another in the effect of the factor upon the price. In addition, for the first time, wavelet coherence is used to explore the relationships between different cryptocurrencies.

  13. Unraveling the photovoltaic technology learning curve by incorporation of input price changes and scale effects

    International Nuclear Information System (INIS)

    Yu, C.F.; van Sark, W.G.J.H.M.; Alsema, E.A.

    2011-01-01

    In a large number of energy models, the use of learning curves for estimating technological improvements has become popular. This is based on the assumption that technological development can be monitored by following cost development as a function of market size. However, recent data show that in some stages of photovoltaic technology (PV) production, the market price of PV modules stabilizes even though the cumulative capacity increases. This implies that no technological improvement takes place in these periods: the cost predicted by the learning curve in the PV study is lower than the market one. We propose that this bias results from ignoring the effects of input prices and scale effects, and that incorporating the input prices and scale effects into the learning curve theory is an important issue in making cost predictions more reliable. In this paper, a methodology is described to incorporate the scale and input-prices effect as the additional variables into the one factor learning curve, which leads to the definition of the multi-factor learning curve. This multi-factor learning curve is not only derived from economic theories, but also supported by an empirical study. The results clearly show that input prices and scale effects are to be included, and that, although market prices are stabilizing, learning is still taking place. (author)

  14. Price consciousness and purchase intentions for new food products: the moderating effect of product category knowledge when price is unknown

    OpenAIRE

    Hansen, Håvard

    2013-01-01

    This is an Accepted Manuscript of an article published by Taylor & Francis in JOURNAL of FOOD PRODUCTS MARKETING in July 2013, available online: http://wwww.tandfonline.com/ 10.1080/10454446.2013.724363. This study examines the degree to which consumers’ price consciousness affects their purchase intentions for a newly introduced product when the price of the product is unknown. Based on data from 186 consumers exposed to a new product offering, the results show that price consciousness...

  15. Pricing risk and ambiguity: the effect of perspective taking.

    Science.gov (United States)

    Trautmann, Stefan T; Schmidt, Ulrich

    2012-01-01

    In the valuation of uncertain prospects, a difference is often observed between selling and buying perspectives. This paper distinguishes between risk (known probabilities) and ambiguity (unknown probabilities) in decisions under uncertainty and shows that the valuation disparity increases under ambiguity compared to risk. It is found that both the comparative versus noncomparative evaluation of risky and ambiguous prospects and the uniqueness of the valuation perspective (either seller or buyer) moderate this increase in the disparity under ambiguity. The finding is consistent with recent theoretical accounts of pricing under uncertainty. We discuss implications for market behaviour and for the ambiguity paradigm as a research tool.

  16. Arbitrage Pricing, Capital Asset Pricing, and Agricultural Assets

    OpenAIRE

    Louise M. Arthur; Colin A. Carter; Fay Abizadeh

    1988-01-01

    A new asset pricing model, the arbitrage pricing theory, has been developed as an alternative to the capital asset pricing model. The arbitrage pricing theory model is used to analyze the relationship between risk and return for agricultural assets. The major conclusion is that the arbitrage pricing theory results support previous capital asset pricing model findings that the estimated risk associated with agricultural assets is low. This conclusion is more robust for the arbitrage pricing th...

  17. Oil price and the dollar

    International Nuclear Information System (INIS)

    Coudert, V.; Mignon, V.; Penot, A.

    2007-01-01

    Oil prices and the United States (US) dollar exchange rate are driving the evolution of the world economy. This paper investigated long-term relationships between oil prices and the US effective exchange rate. An empirical study was performed on oil prices and the dollar real effective exchange rate between 1974 to 2004. The impact of the dollar exchange rate was also explored, and the effects of oil prices on supply and demand were considered. A dynamic partial equilibrium framework study was evaluated in order to compare how other countries used revenues from oil exports in dollars. The study showed that both variables had similar evolutions when price fluctuations were low. Strong increases in the dollar were associated with lower oil prices. However, adjustment speeds of the dollar real effective exchange rate was slow. Co-integration and causality tests showed that oil prices influenced the exchange rate, and that the link between the 2 variables was transmitted through the country's net foreign asset position. It was concluded that higher oil prices improved US net foreign asset position in relation to other countries, and had a positive impact on dollar appreciation. 24 refs., 6 tabs., 1 fig

  18. Food versus fuel: What do prices tell us?

    International Nuclear Information System (INIS)

    Zhang Zibin; Lohr, Luanne; Escalante, Cesar; Wetzstein, Michael

    2010-01-01

    Sorting out the impacts of biofuels on global agricultural commodity prices is impossible without turning to data and distinguishing between the short-run versus the long-run impacts. Using time-series prices on fuels and agricultural commodities, the aim is to investigate the long-run cointegration of these prices simultaneously with their multivariate short-run interactions. Results indicate no direct long-run price relations between fuel and agricultural commodity prices, and limited if any direct short-run relationships. In terms of short-run price movements, sugar prices are influencing all the other agricultural commodity prices except rice. With sugar the number one world input for ethanol, results indicate increased ethanol production is potentially influencing short-run agricultural commodity prices. Overall, results support the effect of agricultural commodity prices as market signals which restore commodity markets to their equilibria after a demand or supply event (shock).

  19. The Asymmetric Effects of Oil Price Changes on the Economic Activities in Indonesia

    Directory of Open Access Journals (Sweden)

    Rina Juliet Artami

    2018-01-01

    Full Text Available This paper analyzes the asymmetric impact of oil price changes on the economic growth of and inflation in Indonesia by using the vector autoregression (VAR model for the period from 1990Q1 to 2016Q4. The results show that the impact of oil price changes on the gross domestic product (GDP is asymmetric, as a drop in oil prices decreases the GDP, whereas an increase in oil prices does not significantly affect GDP. It is crucial for Indonesia to reduce its dependency on oil, mainly as its primary source of revenue, and also consider utilizing more sources of renewable energy. At the same time, the effects of both the positive and negative changes in oil prices are found to be not statistically significant to inflation. The lack of impact of oil price changes on inflation can explain by the implementation of the fuel price subsidy in Indonesia.DOI: 10.15408/sjie.v7i1.6052

  20. Simulating the Effects of Various Pricing Scenarios on Water Tariff System

    Directory of Open Access Journals (Sweden)

    saeid Yazdani

    2015-03-01

    Full Text Available Water demand management policies and water pricing tools have important effects on optimal water allocation. An important water pricing policy is determining suitable water tariffs for urban water uses. In this regard, the emphasis laid by the targeted subsidy law on water pricing based on supply cost will have a great impact on the price of water and on water resources management. Based on these considerations, the present study was designed and conducted in 2010-2011 to identify proper water prices for Golestan Province under the targeted subsidy law. For this purpose, the economic value of water as veiwed by urban users was estimated using the contingent valuation method. In a second stage, the average cost approach was employed to determine the cost of water production from surface and ground water resources from the viewpoint of suppliers. Finally, the present water tariffs, the economic value of water, and the average cost of water production obtained in the previous sategs were compared to evaluate various scenarios of water pricing under the targeted subsidy law. Based on our findings, a stepwise water pricing system that strikes a balance between the economic value of water and water production cost is recommended for implementation in order achieve simultaneous improvements in both water demand and supply management.

  1. The Effects of Oil Price Shocks on IIP and CPI in Emerging Countries

    Directory of Open Access Journals (Sweden)

    Yukino Sakashita

    2016-09-01

    Full Text Available In this paper, we investigate the effects of oil price shocks on the production and price level in five emerging countries through comparison with the United States, using a two-block structural VAR model of the global crude oil market proposed by Kilian and Park (see International Economic, vol. 50, 2009, pp. 1267–1287. Our main finding is that the effect of oil price shocks on the index of the industrial production (IIP and consumer price index (CPI in emerging countries also depends on where the changes fundamentally come from (this is also the case for the United States. We also found that some emerging countries showed unique impulse response patterns, the shapes of which are different from those of the United States and there are differences in impulse response patterns among emerging countries.

  2. EFFECTS OF OIL AND NATURAL GAS PRICES ON INDUSTRIAL PRODUCTION IN THE EUROZONE MEMBER COUNTRIES

    Directory of Open Access Journals (Sweden)

    Yılmaz BAYAR

    2014-04-01

    Full Text Available Industrial production is one of the leading indicators of gross domestic product which reflects the overall economic performance of a country. In other words decreases or increases in industrial production point out a contracting or expanding economy. Therefore, changes in prices of oil and natural gas which are the crucial inputs to the industrial production are also important for the overall economy. This study examines the effects of changes in oil and natural gas prices on the industrial production in the 18 Eurozone member countries during the period January 2001-September 2013 by using panel regression. We found that oil prices and natural gas prices had negative effect on industrial production in the Eurozone member countries.

  3. Afforestation to mitigate climate change: impacts on food prices under consideration of albedo effects

    Science.gov (United States)

    Kreidenweis, Ulrich; Humpenöder, Florian; Stevanović, Miodrag; Bodirsky, Benjamin Leon; Kriegler, Elmar; Lotze-Campen, Hermann; Popp, Alexander

    2016-08-01

    Ambitious climate targets, such as the 2 °C target, are likely to require the removal of carbon dioxide from the atmosphere. Afforestation is one such mitigation option but could, through the competition for land, also lead to food prices hikes. In addition, afforestation often decreases land-surface albedo and the amount of short-wave radiation reflected back to space, which results in a warming effect. In particular in the boreal zone, such biophysical warming effects following from afforestation are estimated to offset the cooling effect from carbon sequestration. We assessed the food price response of afforestation, and considered the albedo effect with scenarios in which afforestation was restricted to certain latitudinal zones. In our study, afforestation was incentivized by a globally uniform reward for carbon uptake in the terrestrial biosphere. This resulted in large-scale afforestation (2580 Mha globally) and substantial carbon sequestration (860 GtCO2) up to the end of the century. However, it was also associated with an increase in food prices of about 80% by 2050 and a more than fourfold increase by 2100. When afforestation was restricted to the tropics the food price response was substantially reduced, while still almost 60% cumulative carbon sequestration was achieved. In the medium term, the increase in prices was then lower than the increase in income underlying our scenario projections. Moreover, our results indicate that more liberalised trade in agricultural commodities could buffer the food price increases following from afforestation in tropical regions.

  4. Pricing and Trust

    DEFF Research Database (Denmark)

    Huck, Steffen; Ruchala, Gabriele K.; Tyran, Jean-Robert

    -competitive (monopolistic) markets. We then introduce a regulated intermediate price above the oligopoly price and below the monopoly price. The effect in monopolies is more or less in line with standard intuition. As price falls volume increases and so does quality, such that overall efficiency is raised by 50%. However......We experimentally examine the effects of flexible and fixed prices in markets for experience goods in which demand is driven by trust. With flexible prices, we observe low prices and high quality in competitive (oligopolistic) markets, and high prices coupled with low quality in non...

  5. Relating price strategies and price-setting practices

    NARCIS (Netherlands)

    Ingenbleek, P.T.M.; Lans, van der I.A.

    2013-01-01

    Purpose - This article addresses the relationship between price strategies and price-setting practices. The first derive from a normative tradition in the pricing literature and the latter from a descriptive tradition. Price strategies are visible in the market, whereas price-setting practices are

  6. Price-Efficiency Relationship for Photovoltaic Systems on a Global Basis

    Directory of Open Access Journals (Sweden)

    Mehmet Sait Cengiz

    2015-01-01

    Full Text Available Solar energy is the most abundant, useful, efficient, and environmentally friendly source of renewable energy. In addition, in recent years, the capacity of photovoltaic electricity generation systems has increased exponentially throughout the world given an increase in the economic viability and reliability of photovoltaic systems. Moreover, many studies state that photovoltaic power systems will play a key role in electricity generation in the future. When first produced, photovoltaic systems had short lifetimes. Currently, through development, the technology lifecycle of photovoltaic systems has increased to 20–25 years. Studies showed that photovoltaic systems would be broadly used in the future, a conclusion reached by considering the rapidly decreasing cost of photovoltaic systems. Because price analysis is very important for energy marketing, in this study, a review of the cost potential factors on photovoltaic panels is realized and the expected cost potential of photovoltaic systems is examined considering numerous studies.

  7. Is a Price Increase Policy Enough for Adolescent Smokers?: Factors Affecting the Effectiveness of Increasing Cigarette Prices Among Korean Adolescent Smokers.

    Science.gov (United States)

    Lee, Yong Suk; Kim, Hong-Suk; Kim, Hyung-Do; Yoo, Ki-Bong; Jang, Sung-In; Park, Eun-Cheol

    2016-10-01

    Cigarette pricing policy is one tool for controlling smoking behavior on a national scale. It is unclear, however, what effects such policy has on adolescents and which characteristic subgroups of adolescents are more or less sensitive to cigarette pricing policy. Our data came from the 2013 Korea Youth Risk Behavior Web-based Survey. The dependent variable was whether or not a participant was classified as a "persistent smokers," defined as a smoker who would continue smoking despite any price increase. Other variables of interest were smoking days (quantity), previous attempts to stop smoking, and previous education on smoking cessation. The statistical analysis was performed using weighted data and the SURVEYFREQ and SURVEYLOGISTIC procedures in SAS 9.3. Among 7094 adolescent smokers (5349 males and 1745 females), 19.9% of males and 25.1% of females reported as persistent smokers. Compared with light smokers, heavy smokers are more likely to be persistent smokers (male: odds ratio [OR] = 2.45, 95% confidence interval [CI] = 2.04-2.95, P value policy than mild smokers, pricing policy alone is not enough to reduce the societal burden caused by smoking. We suggest that additional cessation policy is needed along with pricing policy for adolescents with heavier smoking behavior in Korea. This study shows that heavy smokers are more likely to be persistent smokers despite the cigarette price increase policy, compared with light smokers in Korean adolescents. Because heavier smokers were less sensitive to pricing policy than mild smokers, pricing policy alone is not enough to reduce the societal burden caused by smoking. We suggest that additional tobacco control policies should be evaluated and effective ones implemented in addition to cigarette prices to reduce smoking among regular adolescent smokers. © The Author 2016. Published by Oxford University Press on behalf of the Society for Research on Nicotine and Tobacco. All rights reserved. For permissions, please e

  8. Effects of anchoring and adjustment in the evaluation of product pricing.

    Science.gov (United States)

    Elaad, Eitan; Sayag, Neta; Ezer, Aliya

    2010-08-01

    Anchoring and adjustment comprise a heuristic that creates expectations. Two types of anchors were applied on participants' evaluation of products: the price reference of the product (maximum, minimum, or no price reference) and the context in which the products were evaluated (the prestige of the shopping center). Results showed that both factors anchored evaluations of products' value. Context effects were explained by the different expectations of visitors in prestigious (looking for quality) and less prestigious (seeking a bargain) centers.

  9. The effect of rising food prices on food consumption: systematic review with meta-regression.

    Science.gov (United States)

    Green, Rosemary; Cornelsen, Laura; Dangour, Alan D; Turner, Rachel; Shankar, Bhavani; Mazzocchi, Mario; Smith, Richard D

    2013-06-17

    To quantify the relation between food prices and the demand for food with specific reference to national and household income levels. Systematic review with meta-regression. Online databases of peer reviewed and grey literature (ISI Web of Science, EconLit, PubMed, Medline, AgEcon, Agricola, Google, Google Scholar, IdeasREPEC, Eldis, USAID, United Nations Food and Agriculture Organization, World Bank, International Food Policy Research Institute), hand searched reference lists, and contact with authors. We included cross sectional, cohort, experimental, and quasi-experimental studies with English abstracts. Eligible studies used nationally representative data from 1990 onwards derived from national aggregate data sources, household surveys, or supermarket and home scanners. The primary outcome extracted from relevant papers was the quantification of the demand for foods in response to changes in food price (own price food elasticities). Descriptive and study design variables were extracted for use as covariates in analysis. We conducted meta-regressions to assess the effect of income levels between and within countries on the strength of the relation between food price and demand, and predicted price elasticities adjusted for differences across studies. 136 studies reporting 3495 own price food elasticities from 162 different countries were identified. Our models predict that increases in the price of all foods result in greater reductions in food consumption in poor countries: in low and high income countries, respectively, a 1% increase in the price of cereals results in reductions in consumption of 0.61% (95% confidence interval 0.56% to 0.66%) and 0.43% (0.36% to 0.48%), and a 1% increase in the price of meat results in reductions in consumption of 0.78% (0.73% to 0.83%) and 0.60% (0.54% to 0.66%). Within all countries, our models predict that poorer households will be the most adversely affected by increases in food prices. Changes in global food prices will

  10. Response of residential electricity demand to price: The effect of measurement error

    International Nuclear Information System (INIS)

    Alberini, Anna; Filippini, Massimo

    2011-01-01

    In this paper we present an empirical analysis of the residential demand for electricity using annual aggregate data at the state level for 48 US states from 1995 to 2007. Earlier literature has examined residential energy consumption at the state level using annual or monthly data, focusing on the variation in price elasticities of demand across states or regions, but has failed to recognize or address two major issues. The first is that, when fitting dynamic panel models, the lagged consumption term in the right-hand side of the demand equation is endogenous. This has resulted in potentially inconsistent estimates of the long-run price elasticity of demand. The second is that energy price is likely mismeasured. To address these issues, we estimate a dynamic partial adjustment model using the Kiviet corrected Least Square Dummy Variables (LSDV) (1995) and the Blundell-Bond (1998) estimators. We find that the long-term elasticities produced by the Blundell-Bond system GMM methods are largest, and that from the bias-corrected LSDV are greater than that from the conventional LSDV. From an energy policy point of view, the results obtained using the Blundell-Bond estimator where we instrument for price imply that a carbon tax or other price-based policy may be effective in discouraging residential electricity consumption and hence curbing greenhouse gas emissions in an electricity system mainly based on coal and gas power plants. - Research Highlights: → Updated information on price elasticities for the US energy policy. → Taking into account measurement error in the price variable increase price elasticity. → Room for discouraging residential electricity consumption using price increases.

  11. Response of residential electricity demand to price: The effect of measurement error

    Energy Technology Data Exchange (ETDEWEB)

    Alberini, Anna [Department of Agricultural Economics, University of Maryland (United States); Centre for Energy Policy and Economics (CEPE), ETH Zurich (Switzerland); Gibson Institute and Institute for a Sustainable World, School of Biological Sciences, Queen' s University Belfast, Northern Ireland (United Kingdom); Filippini, Massimo, E-mail: mfilippini@ethz.ch [Centre for Energy Policy and Economics (CEPE), ETH Zurich (Switzerland); Department of Economics, University of Lugano (Switzerland)

    2011-09-15

    In this paper we present an empirical analysis of the residential demand for electricity using annual aggregate data at the state level for 48 US states from 1995 to 2007. Earlier literature has examined residential energy consumption at the state level using annual or monthly data, focusing on the variation in price elasticities of demand across states or regions, but has failed to recognize or address two major issues. The first is that, when fitting dynamic panel models, the lagged consumption term in the right-hand side of the demand equation is endogenous. This has resulted in potentially inconsistent estimates of the long-run price elasticity of demand. The second is that energy price is likely mismeasured. To address these issues, we estimate a dynamic partial adjustment model using the Kiviet corrected Least Square Dummy Variables (LSDV) (1995) and the Blundell-Bond (1998) estimators. We find that the long-term elasticities produced by the Blundell-Bond system GMM methods are largest, and that from the bias-corrected LSDV are greater than that from the conventional LSDV. From an energy policy point of view, the results obtained using the Blundell-Bond estimator where we instrument for price imply that a carbon tax or other price-based policy may be effective in discouraging residential electricity consumption and hence curbing greenhouse gas emissions in an electricity system mainly based on coal and gas power plants. - Research Highlights: > Updated information on price elasticities for the US energy policy. > Taking into account measurement error in the price variable increase price elasticity. > Room for discouraging residential electricity consumption using price increases.

  12. Cross-border electricity market effects due to price caps in an emission trading system : An agent-based approach

    NARCIS (Netherlands)

    Richstein, J.C.; Chappin, E.J.L.; De Vries, L.J.

    2014-01-01

    The recent low CO2 prices in the European Union Emission Trading Scheme (EU ETS) have triggered a discussion whether the EU ETS needs to be adjusted. We study the effects of CO2 price floors and a price ceiling on the dynamic investment pathway of two interlinked electricity markets (loosely based

  13. Oil prices, SUVs, and Iraq. An investigation of automobile manufacturer oil price sensitivity

    Energy Technology Data Exchange (ETDEWEB)

    Cameron, Ken [United States Navy (United States); Schnusenberg, Oliver [Department of Accounting and Finance, Coggin College of Business, The University of North Florida, 1 UNF Drive, Jacksonville, FL 32224 (United States)

    2009-05-15

    There has been much speculation about the recent upsurge in crude oil prices and the effect it will have on the economy and business. The objective of this paper is to investigate the relationship between oil prices and stock prices of automobile manufacturers. We add an oil price factor, measured alternatively by the excess change in WTI crude oil prices or the excess return on an energy ETF, to the Fama-French three-factor model over the period March 20, 2001 to September 30, 2008. Our dependent variable is the excess return on a price-weighted index of automobile manufacturers. Results indicate that oil prices add value to the pricing model, particularly for manufacturers specializing in SUVs and for a subperiod following the Iraq invasion on March 19, 2003. (author)

  14. Effect of food prices on the prevalence of obesity among young adults.

    Science.gov (United States)

    Han, E; Powell, L M

    2011-03-01

    To examine the extent to which various food prices were associated with the obesity status of young adults. Retrospective cohort study of 6537 men and 5324 women in the USA using panel data from the Monitoring the Future Surveys (1992-2003), which were merged with two food-at-home and one food-away-from-home price measures from the American Chamber of Commerce Researchers Association. Longitudinal individual random effect and fixed effect models were estimated. This study found that food prices did not have a significant effect on the prevalence of obesity among young female adults. For young adult men, an individual random effect estimator suggested that a 10% increase in the price of fast food was associated with a 13.2% decrease in the probability of obesity, but this effect lost its economic and statistical significance once individual fixed effects were controlled for in the estimation. Overall, the results imply that observed time-varying individual characteristics, such as working status, marital status and school enrolment status, may over-ride the effect of changes in food prices for young adults. More research employing longitudinal data is necessary to determine if food subsidies or taxes, particularly soft drink and fast food taxes or subsidies for fruit and vegetables, could be effective policy measures to curtail the increasing prevalence of obesity among young adults. Copyright © 2010 The Royal Society for Public Health. Published by Elsevier Ltd. All rights reserved.

  15. The distinct economic effects of the ethanol blend wall, RIN prices and ethanol price premium due to the RFS

    NARCIS (Netherlands)

    Gorter, de H.; Drabik, D.

    2015-01-01

    The ethanol blend wall and high RIN prices has become a controversial policy issue. We develop a model showing how RIN prices reflect the costs of overcoming the blend wall, namely biodiesel consumed in excess of its mandate and expansion of E85 sales. These costs are very high and are shown to be

  16. Photovoltaic systems for Malaysian islands: Effects of interest rates, diesel prices and load sizes

    International Nuclear Information System (INIS)

    Lau, K.Y.; Tan, C.W.; Yatim, A.H.M.

    2015-01-01

    Standalone diesel systems have been widely used on Malaysian islands due to the isolated locations of the islands. Nevertheless, the high diesel prices and the high cost of transporting diesel to islands cause the use of standalone diesel systems to be uneconomical. This study analyzes the feasibility of implementing PV (photovoltaic) systems as alternatives to standalone diesel systems by considering the effects of annual real interest rates, diesel prices and load sizes, using the HOMER (hybrid optimization of multiple energy resources) software. The results indicate that, at the ordinary diesel price of $ 0.61/L, low interest rates (0–3%) are desirable for the implementation of hybrid PV/diesel with battery systems over standalone diesel systems, regardless of the load sizes. Although different load sizes may affect the decisions on the implementation of PV systems at higher interest rates (6–9%), these effects become less pronounced as the price of diesel increases to $ 1.22/L or higher. Also, under high diesel prices, the choice of optimal system configurations obtained for small load sizes should be applicable for larger load sizes, albeit with different component ratings. Although the current study is intended for Malaysian islands, the findings can be generalized for other places with similar solar radiation levels. - Highlights: • Photovoltaic systems for Malaysian islands have been analyzed using HOMER. • Interest rates, diesel prices and load sizes affect optimal system configurations. • Effects of interest rates and load sizes reduce with increasing diesel prices. • Photovoltaic systems' implementation is feasible at high diesel prices. • The findings can be generalized for places with similar solar radiation levels

  17. Applicability of Investment and Profitability Effects in Asset Pricing Models

    Directory of Open Access Journals (Sweden)

    Márcio André Veras Machado

    2017-11-01

    Full Text Available This study aims to investigate whether investment and profitability are priced and if they partially explain the variations of stock returns in the Brazilian stock market, according to the Fama and French’s (2015 five-factor model. By using time series and cross-section regression, we found that book-to-market, momentum and liquidity are associated with stock returns whereas investment and profitability were not significant. We also found that there is no investment premium in Brazil. Therefore, motivated by the importance of B/M, momentum and liquidity to the Brazilian stock market, as well as by the poor performance of profitability and investment, we document that Keene and Peterson’s (2007 five-factor model is superior to all other models, especially the five-factor model by Fama and French (2015.

  18. THE EFFECTS OF PRICE AND INCOMES ON CONSUMER DEMAND

    Directory of Open Access Journals (Sweden)

    Adrian Tănase

    2012-12-01

    Full Text Available The complexity of consumption can only be explained by identifying and analysing all the factors acting upon the carrier of demand, and in a given time and space, they have a higher or a lower importance, which makes it impossible to find a hierarchy. However, in societies characterized by a low standard of living, prices and incomes have a strong impact on consumer behaviour. Consequently, this paper approaches one of the most stringent issues, which interest specialists, governing bodies, mass-media and, last but not least, population. In the entire paper we analyse the population’s consumption, i.e. food, non-food products and services, by categories of households, from the economic, statistic and sociologic viewpoints. The paper ends with a brief presentation of conclusions and suggestions regarding the analysis and improvement of population’s consumption.

  19. Is the depressive effect of renewables on power prices contagious? A cross border econometric analysis

    International Nuclear Information System (INIS)

    Phan, Sebastien; Roques, Fabien

    2015-04-01

    European power markets have become more integrated and the implementation of market coupling has reinforced the efficiency of cross-border trading. This paper investigates empirically the impact of renewables growth in Germany on German and French power price volatility. We find that renewables depress power prices on average and increase volatility not only domestically but also across borders. We also leverage market resiliency data to investigate the impact of increases in interconnection capacity. We find that power price volatility would decrease in France despite some contagion effects of volatility from German renewables production. Our findings have important policy implications as they demonstrate the need to coordinate cross-border support policies for renewables in order to mitigate the impact of volatility on power prices in coupled power markets. (authors)

  20. The world market for soybeans: price transmission into Brazil and effects from the timing of crop and trade

    Directory of Open Access Journals (Sweden)

    Frederico A. Turolla

    2007-08-01

    Full Text Available This paper investigates the price transmission in the world market for soybeans using time series econometrics models. The theoretical model developed by Mundlack and Larson (1992 is based on the Law of the One Price, which assumes price equalization across all local markets in the long run and allows for deviations in the short run. The international market was characterized by three relevant soybean prices: Rotterdam Port, Argentina and the United States. The paper estimates the elasticity of transmission of these prices into soybean prices in Brazil. There were carried causality and cointegration tests in order to identify whether there is significant long-term relationship among these variables. There was also calculated the impulse-response function and forecast error variance decomposition to analyze the transmission of variations in the international prices over Brazilian prices. An exogeneity test was also carried out so as to check whether the variables respond to short term deviations from equilibrium values. Results validated the Law of the One Price in the long run. In line with many studies, this paper showed that Brazil and Argentina can be seen as price takers as long as the speed of their adjustment to shocks is faster than in the United States, the latter being a price maker.

  1. Are Alcohol Taxation and Pricing Policies Regressive? Product-Level Effects of a Specific Tax and a Minimum Unit Price for Alcohol.

    Science.gov (United States)

    Vandenberg, Brian; Sharma, Anurag

    2016-07-01

    To compare estimated effects of two policy alternatives, (i) a minimum unit price (MUP) for alcohol and (ii) specific (per-unit) taxation, upon current product prices, per capita spending (A$), and per capita consumption by income quintile, consumption quintile and product type. Estimation of baseline spending and consumption, and modelling policy-to-price and price-to-consumption effects of policy changes using scanner data from a panel of demographically representative Australian households that includes product-level details of their off-trade alcohol spending (n = 885; total observations = 12,505). Robustness checks include alternative price elasticities, tax rates, minimum price thresholds and tax pass-through rates. Current alcohol taxes and alternative taxation and pricing policies are not highly regressive. Any regressive effects are small and concentrated among heavy consumers. The lowest-income consumers currently spend a larger proportion of income (2.3%) on alcohol taxes than the highest-income consumers (0.3%), but the mean amount is small in magnitude [A$5.50 per week (95%CI: 5.18-5.88)]. Both a MUP and specific taxation will have some regressive effects, but the effects are limited, as they are greatest for the heaviest consumers, irrespective of income. Among the policy alternatives, a MUP is more effective in reducing consumption than specific taxation, especially for consumers in the lowest-income quintile: an estimated mean per capita reduction of 11.9 standard drinks per week (95%CI: 11.3-12.6). Policies that increase the cost of the cheapest alcohol can be effective in reducing alcohol consumption, without having highly regressive effects. © The Author 2015. Medical Council on Alcohol and Oxford University Press. All rights reserved.

  2. The effects of utility DSM programs on electricity costs and prices

    Energy Technology Data Exchange (ETDEWEB)

    Hirst, E.

    1991-11-01

    More and more US utilities are running more and larger demand-side management (DSM) programs. Assessing the cost-effectiveness of these programs raises difficult questions for utilities and their regulators. Should these programs aim to minimize the total cost of providing electric-energy services or should they minimize the price of electricity? This study offers quantitative estimates on the tradeoffs between total costs and electricity prices. This study uses a dynamic model to assess the effects of energy-efficiency programs on utility revenues, total resource costs, electricity prices, and electricity consumption for the period 1990 to 2010. These DSM programs are assessed under alternative scenarios. In these cases, fossil-fuel prices, load growth, the amount of excess capacity the utility has in 1990, planned retirements of power plants, the financial treatment of DSM programs, and the costs of energy- efficient programs vary. These analyses are conducted for three utilities: a ``base`` that is typical of US utilities; a ``surplus`` utility that has excess capacity, few planned retirements, and slow growth in fossil-fuel prices and incomes; and a ``deficit`` utility that has little excess capacity, many planned retirements, and rapid growth in fossil-fuel prices and incomes. 28 refs.

  3. The effects of utility DSM programs on electricity costs and prices

    Energy Technology Data Exchange (ETDEWEB)

    Hirst, E.

    1991-11-01

    More and more US utilities are running more and larger demand-side management (DSM) programs. Assessing the cost-effectiveness of these programs raises difficult questions for utilities and their regulators. Should these programs aim to minimize the total cost of providing electric-energy services or should they minimize the price of electricity This study offers quantitative estimates on the tradeoffs between total costs and electricity prices. This study uses a dynamic model to assess the effects of energy-efficiency programs on utility revenues, total resource costs, electricity prices, and electricity consumption for the period 1990 to 2010. These DSM programs are assessed under alternative scenarios. In these cases, fossil-fuel prices, load growth, the amount of excess capacity the utility has in 1990, planned retirements of power plants, the financial treatment of DSM programs, and the costs of energy- efficient programs vary. These analyses are conducted for three utilities: a base'' that is typical of US utilities; a surplus'' utility that has excess capacity, few planned retirements, and slow growth in fossil-fuel prices and incomes; and a deficit'' utility that has little excess capacity, many planned retirements, and rapid growth in fossil-fuel prices and incomes. 28 refs.

  4. Effects of fuel price fluctuation on individual CO2 traffic emissions : empirical findings from pseudo panel data

    NARCIS (Netherlands)

    Yang, D.; Timmermans, H.J.P.

    2012-01-01

    Globalized concerns about greenhouse gasses and increased energy consumptions have stimulated research in transportation about the relationships between fuel prices and emissions. Many researchers have found that higher fuel price can reduce fuel consumption and CO2 emissions through a number of

  5. Lead-lag effects between Brent Crude Futures and its respective spot prices

    Directory of Open Access Journals (Sweden)

    Diego Garcia Angelico

    2017-03-01

    Full Text Available This article aims the analyses of the causality and temporal precedence relationships between the spot and futures prices of Brent oil, those last ones inherent to financial markets. In order to achieve this objective, the main tools used were: Johansen cointegration test; Granger causality/Block Exogeneity Wald test (GCBEW; generalized impulse response function and variance decomposition of forecast errors, those three last ones were estimated based in a Vector Error Correction Model (VEC, adjusted to the analyzed variables. The results indicated that, for the stipulated period, there was a pricing lightweight leadership from the futures contracts to the prices of spot market. However, as a conclusion of the article, the understanding is that this small difference, calculated in several econometric tools, cannot be considered enough to indicate that the Brent oil future market would be distorting its respective spot prices, despite the economic fundamentals of the physical market, such as production, consumption and stockpiling processes. Therefore, management decisions in industries exposed to crude oil prices should be aware of both physical and future markets’ prospections.

  6. The effects of oil price shocks on output and inflation in China

    International Nuclear Information System (INIS)

    Zhao, Lin; Zhang, Xun; Wang, Shouyang; Xu, Shanying

    2016-01-01

    Crude oil price shocks derive from many sources, each of which may bring about different effects on macro-economy variables and require completely different designs in macro-economic policy; thus, distinguishing the sources of oil price fluctuations is crucial when evaluating these effects. This paper establishes an open-economy dynamic stochastic general equilibrium (DSGE) model with two economies: China and the rest of the world. To assess the effects of oil price shocks, the CES production function is extended by adding oil as an input. Based on the model, the effects of four types of oil price fluctuations are evaluated. The four types of oil price shocks are supply shocks driven by political events in OPEC countries, other oil supply shocks, aggregate shocks to the demand for industrial commodities, and demand shocks that are specific to the crude oil market. Simulation results indicate the following: Oil supply shocks driven by political events mainly produce short-term effects on China's output and inflation, while the other three shocks produce relatively long-term effects; in addition, demand shocks that are specific to the crude oil market contribute the most to the fluctuations in China's output and inflation.

  7. THE CONCEPT OF TRANSFER PRICING SYSTEM IN RUSSIAN FEDERATION

    Directory of Open Access Journals (Sweden)

    Alexey S. Besfamilnyy

    2016-01-01

    Full Text Available The article presents the author's denition of transfer prices and transfer pricing based on the analysis of the current legislation in Russia as well as on current economic practice. Considered state regulation of transfer pricing for the purpose of harmonization of relationship between government and business. Given the denition of the transfer pricing system in Russian Federation and the description of its main parts and connections between them, necessary for effective functioning.

  8. On the effects of search attributes on price variability: An empirical investigation on quality wines

    Directory of Open Access Journals (Sweden)

    Seccia Antonio

    2017-01-01

    Full Text Available The choice of a bottle of wine is affected by the presence of attributes that are searched by consumers and can be evaluated before the purchase. The aim of the paper is to analyze the effect of some search attributes on wine price variability applying the Hedonic Price Model. It allows explaining how the price of wine varies depending on its main quality attributes. The analysis has been based on a sample of wines made in Puglia, Italian region characterized by a tradition in wine production and consumption. Data have been collected from a wine guidebook considering the years 2008–2013. The study provided a measure of the market value of some search attributes for wines produced in Puglia. Attributes as alcoholic content, age and score given by experts, influence price variability allowing wines to obtain a premium price, such as the most known Protected Designation of Origin (PDO and some Protected Geographical Indication (PGI. The name of the variety seems not to have high influence with the exception of less known and locally grown varieties. Results may be of interest for marketers and policy makers of wine industry. Managerial implications could refer to the importance of differentiation strategies aimed to market segmentation and to the pricing strategy. Policymakers could also find interesting hints about the influence of the different appellations and the importance of minor autochthonous grape varieties.

  9. Reform of refined oil product pricing mechanism and energy rebound effect for passenger transportation in China

    International Nuclear Information System (INIS)

    Lin, Boqiang; Liu, Xia

    2013-01-01

    Improving energy efficiency is the primary method adopted by the Chinese government in an effort to achieve energy conservation target in the transport sector. However, the offsetting effect of energy rebound would greatly reduce its real energy-saving potentials. We set up a Linear Approximation of the Almost Ideal Demand System Model (LA-AIDS model) to estimate the rebound effect for passenger transportation in China. Real energy conservation effect of improving energy efficiency can also be obtained in the process. The result shows that the rebound effect is approximately 107.2%. This figure signifies the existence of ‘backfire effect’, indicating that efficiency improvement in practice does not always lead to energy-saving. We conclude that one important factor leading to the rebound effect, is the refined oil pricing mechanism. China's refined oil pricing mechanism has been subjected to criticism in recent years. The results of simulation analysis show that the rebound could be reduced to approximately 90.7% if the refined oil pricing mechanism is reformed. In this regard, we suggest further reforms in the current refined oil pricing mechanism. - Highlights: ► We set up the LA-AIDS model to estimate traffic service demand for urban residents. ► The size of the rebound effect for passenger transportation in China is evaluated. ► The rebound effect for passenger transportation in China is 107.2%. ► Reform of oil pricing could reduced the rebound to 90.7%. ► Reform of oil pricing might be an effective method for mitigating rebound effect

  10. The response of the Beijing carbon emissions allowance price (BJC) to macroeconomic and energy price indices

    International Nuclear Information System (INIS)

    Zeng, Shihong; Nan, Xin; Liu, Chao; Chen, Jiuying

    2017-01-01

    In 2013, China opened pilot carbon emission trading markets in seven provinces, where carbon emission allowances have now been traded for more than two years. In this paper, we employ a structural VAR model and the price of the Beijing carbon emission allowance to study the dynamic relationships among the price of the carbon emission allowance, economic development and the price of energy. This paper's data cover the period from April 2, 2014 to November 6, 2015. This paper provides information that will be helpful to both investors and governmental policy makers. The results show that (1) an increase of one standard deviation in the coal price leads to an initial increase of approximately 0.1% in the Beijing carbon price. After 2 days, there is a decrease of less than 0.1%, and the price gradually increases by approximately 0.1% after 30 days; (2) the price of the Beijing carbon emission allowance is mainly affected by its own historical price; (3) the Beijing carbon emission allowance price, crude oil price, natural gas price and economic development have positive – albeit non-significant – correlations. - Highlights: • This paper examines the response of the Beijing carbon emission allowance price. • A rise in coal prices will have different effects in different lag stages. • There are positive correlations between the BJC and economic development.

  11. Asymmetric Effects of Global Liquidity Expansion on Foreign Portfolio Inflows, Exchange Rates, and Stock Prices

    Directory of Open Access Journals (Sweden)

    Dong-Eun Rhee

    2014-06-01

    Full Text Available This paper examines the effects of global liquidity expansion on advanced and emerging economies by using panel VAR methodology. The results show that global liquidity expansion tends to boost economy by increasing GDP growth and stock prices. However, we find that the effects are asymmetric. The effects of global liquidity on GDP and stock prices are greater and more persistent in emerging economies than in liquidity recipient advanced economies. Moreover, global liquidity appreciates emerging economies' exchange rates more persistently than those of advanced economies. Lastly, while global liquidity expansion increases foreign portfolio investment inflows to Asian countries and liquidity recipient advanced economies, there is no evidence for Latin American countries.

  12. Effect of Price Determinants on World Cocoa Prices for Over the Last Three Decades: Error Correction Model (ECM) Approach

    OpenAIRE

    Lya Aklimawati; Teguh Wahyudi

    2013-01-01

    High  volatility  cocoa  price  movement  is  consequenced  by  imbalancing between power demand and power supply in commodity market. World economy expectation and market  liberalization would lead to instability on cocoa prices in  the  international  commerce.  Dynamic  prices  moving  erratically  influence the benefit  of market players, particularly  producers. The aim of this research is  (1)  to  estimate  the  empirical  cocoa  prices  model  for  responding  market dynamics and (2) ...

  13. Implications for Firms with Limited Information to Take Advantage of Reference Price Effect in Competitive Settings

    Directory of Open Access Journals (Sweden)

    Junhai Ma

    2017-01-01

    Full Text Available This paper studies internal reference price effects when competitive firms face reference price effects and make decisions based on partial information, where their decision-making mechanism is modeled by a dynamic adjustment process. It is shown that the evolution of this dynamic adjustment goes to stabilization if both adjustment speeds are small and the complexity of this evolution increases in adjustment speeds. It is proved that the necessary condition for flip bifurcation or Neimark-Sacker bifurcation will occur with the increase of adjustment speed in two special cases. What is more, numerical simulations show that these bifurcations do occur. Then, the impacts of parameters on stability and profits are investigated and some management insights for firms with limited information to take advantage of reference price effects are provided.

  14. The merit-order effect: A detailed analysis of the price effect of renewable electricity generation on spot market prices in Germany

    International Nuclear Information System (INIS)

    Sensfuss, Frank; Ragwitz, Mario; Genoese, Massimo

    2008-01-01

    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. (author)

  15. EU emission trading scheme and the effect on the price of electricity

    International Nuclear Information System (INIS)

    2004-01-01

    The Electricity Market Working Group and the Climate Change Policy Working Group of the Nordic Council of Ministers, has commissioned ECON Analysis to prepare this report. The report analyses the demand and supply of GHG emission allowances and the price of emission allowances for the period 2005-2007 and 2008-2012 and the effect on the electricity price in the Nordic electricity market. The demand for emissions allowances has then been estimated for different scenarios, with different assumption on burden sharing between sectors and international participation and the supply of emission allowances is determined by the marginal abatement costs. Based on available information on abatement costs the supply of allowances is then estimated. The market balance between the demand and supply for allowances then determines the price of emission allowances. The effect on the electricity price is simulated with ECON's model for the Nordic power market to quantitatively estimate the effect from emissions trading on the electricity price, production, consumption, trade, etc. (BA)

  16. Effects of land and building usage on population, land price and passengers in station areas: A case study in Fukuoka, Japan

    OpenAIRE

    Zhuang, Xinyu; Zhao, Shichen

    2017-01-01

    This study uses multiple regression to investigate the effects of land and building use on population, land price, and passengers. Initially, we abstract annual data on land and buildings usage within a radius of 0 m–400 m for railway stations and 400 m–800 m for subway stations in Fukuoka, Japan by using the GIS. We then analyze the relationships between 13 factors of land use and 8 factors of building usage, as well as the related population, land price, and passengers using the quantitativ...

  17. The pricing effect of the common pattern in firm-level idiosyncratic volatility: Evidence from A-Share stocks of China

    Science.gov (United States)

    Su, Zhi; Shu, Tengjia; Yin, Libo

    2018-05-01

    Inspired by Herskovic et al. (2016), we investigate the pricing effect of the firm-level common idiosyncratic volatility (CIV) in China's A-Share market. Return tests indicate that lower CIV risk loadings bring higher returns significantly, while the pricing function of market volatility (MV) is inconsistent. Strategy that goes long the highest CIV-beta quintile and short the lowest CIV-beta quintile brings an annualized average return of 5%-7%. Our findings supplement Herskovic et al. (2016) by confirming a significantly negative relationship between CIV and stock returns in a developing market.

  18. Relationship between price and money stock in Iranian economy (1961-2008

    Directory of Open Access Journals (Sweden)

    Mohammad Reza Babaei Semirumi

    2009-12-01

    Full Text Available The main purpose of this paper is to investigate the relationship between money and inflation in the Iranian economy with cagan(1956 money demand function . In doing so,I have first reviewed theoretical and empirical literature of causality throughout the world and then it be used Granger’s method for detecting causality between money and inflation in the Iranian economy. according to this working paper elasticity of demand for real balances in money market toward inflation for Iranian economy are approximately 0.9 and Money is exogenous reward to WPI,CPI and PPI in Iranian economy.

  19. Estimated Effects of Different Alcohol Taxation and Price Policies on Health Inequalities: A Mathematical Modelling Study.

    Directory of Open Access Journals (Sweden)

    Petra S Meier

    2016-02-01

    Full Text Available While evidence that alcohol pricing policies reduce alcohol-related health harm is robust, and alcohol taxation increases are a WHO "best buy" intervention, there is a lack of research comparing the scale and distribution across society of health impacts arising from alternative tax and price policy options. The aim of this study is to test whether four common alcohol taxation and pricing strategies differ in their impact on health inequalities.An econometric epidemiological model was built with England 2014/2015 as the setting. Four pricing strategies implemented on top of the current tax were equalised to give the same 4.3% population-wide reduction in total alcohol-related mortality: current tax increase, a 13.4% all-product duty increase under the current UK system; a value-based tax, a 4.0% ad valorem tax based on product price; a strength-based tax, a volumetric tax of £0.22 per UK alcohol unit (= 8 g of ethanol; and minimum unit pricing, a minimum price threshold of £0.50 per unit, below which alcohol cannot be sold. Model inputs were calculated by combining data from representative household surveys on alcohol purchasing and consumption, administrative and healthcare data on 43 alcohol-attributable diseases, and published price elasticities and relative risk functions. Outcomes were annual per capita consumption, consumer spending, and alcohol-related deaths. Uncertainty was assessed via partial probabilistic sensitivity analysis (PSA and scenario analysis. The pricing strategies differ as to how effects are distributed across the population, and, from a public health perspective, heavy drinkers in routine/manual occupations are a key group as they are at greatest risk of health harm from their drinking. Strength-based taxation and minimum unit pricing would have greater effects on mortality among drinkers in routine/manual occupations (particularly for heavy drinkers, where the estimated policy effects on mortality rates are as

  20. Estimated Effects of Different Alcohol Taxation and Price Policies on Health Inequalities: A Mathematical Modelling Study

    Science.gov (United States)

    Meier, Petra S.; Holmes, John; Angus, Colin; Ally, Abdallah K.; Meng, Yang; Brennan, Alan

    2016-01-01

    Introduction While evidence that alcohol pricing policies reduce alcohol-related health harm is robust, and alcohol taxation increases are a WHO “best buy” intervention, there is a lack of research comparing the scale and distribution across society of health impacts arising from alternative tax and price policy options. The aim of this study is to test whether four common alcohol taxation and pricing strategies differ in their impact on health inequalities. Methods and Findings An econometric epidemiological model was built with England 2014/2015 as the setting. Four pricing strategies implemented on top of the current tax were equalised to give the same 4.3% population-wide reduction in total alcohol-related mortality: current tax increase, a 13.4% all-product duty increase under the current UK system; a value-based tax, a 4.0% ad valorem tax based on product price; a strength-based tax, a volumetric tax of £0.22 per UK alcohol unit (= 8 g of ethanol); and minimum unit pricing, a minimum price threshold of £0.50 per unit, below which alcohol cannot be sold. Model inputs were calculated by combining data from representative household surveys on alcohol purchasing and consumption, administrative and healthcare data on 43 alcohol-attributable diseases, and published price elasticities and relative risk functions. Outcomes were annual per capita consumption, consumer spending, and alcohol-related deaths. Uncertainty was assessed via partial probabilistic sensitivity analysis (PSA) and scenario analysis. The pricing strategies differ as to how effects are distributed across the population, and, from a public health perspective, heavy drinkers in routine/manual occupations are a key group as they are at greatest risk of health harm from their drinking. Strength-based taxation and minimum unit pricing would have greater effects on mortality among drinkers in routine/manual occupations (particularly for heavy drinkers, where the estimated policy effects on

  1. Estimated Effects of Different Alcohol Taxation and Price Policies on Health Inequalities: A Mathematical Modelling Study.

    Science.gov (United States)

    Meier, Petra S; Holmes, John; Angus, Colin; Ally, Abdallah K; Meng, Yang; Brennan, Alan

    2016-02-01

    While evidence that alcohol pricing policies reduce alcohol-related health harm is robust, and alcohol taxation increases are a WHO "best buy" intervention, there is a lack of research comparing the scale and distribution across society of health impacts arising from alternative tax and price policy options. The aim of this study is to test whether four common alcohol taxation and pricing strategies differ in their impact on health inequalities. An econometric epidemiological model was built with England 2014/2015 as the setting. Four pricing strategies implemented on top of the current tax were equalised to give the same 4.3% population-wide reduction in total alcohol-related mortality: current tax increase, a 13.4% all-product duty increase under the current UK system; a value-based tax, a 4.0% ad valorem tax based on product price; a strength-based tax, a volumetric tax of £0.22 per UK alcohol unit (= 8 g of ethanol); and minimum unit pricing, a minimum price threshold of £0.50 per unit, below which alcohol cannot be sold. Model inputs were calculated by combining data from representative household surveys on alcohol purchasing and consumption, administrative and healthcare data on 43 alcohol-attributable diseases, and published price elasticities and relative risk functions. Outcomes were annual per capita consumption, consumer spending, and alcohol-related deaths. Uncertainty was assessed via partial probabilistic sensitivity analysis (PSA) and scenario analysis. The pricing strategies differ as to how effects are distributed across the population, and, from a public health perspective, heavy drinkers in routine/manual occupations are a key group as they are at greatest risk of health harm from their drinking. Strength-based taxation and minimum unit pricing would have greater effects on mortality among drinkers in routine/manual occupations (particularly for heavy drinkers, where the estimated policy effects on mortality rates are as follows: current tax

  2. Financial Position and House Price Determination : An Empirical Study of Income and Wealth Effects

    NARCIS (Netherlands)

    Steegmans, J.W.A.M.|info:eu-repo/dai/nl/377458708; Hassink, W.H.J.|info:eu-repo/dai/nl/090437411

    This paper examines the effect of the relative financial position of buyers and sellers on house prices, distinguishing between income and wealth effects. Using administrative data from the Netherlands (2006–2010) that combine transaction data, house characteristics, and household characteristics of

  3. Effectiveness of unit-based pricing of waste in the Netherlands: Applying a general equilibrium model

    NARCIS (Netherlands)

    van Beukering, P.J.H.; Bartelings, H.; Linderhof, V.G.M.; Oosterhuis, F.H.

    2009-01-01

    Differential and variable rates (DVR) in waste collection charging give a price incentive to households to reduce their waste and increase recycling. International empirical evidence confirms the effectiveness of DVR schemes, with limited unwanted side effects. In the Netherlands, currently some 20%

  4. Effectiveness of unit-based pricing of waste in the Netherlands: applying a general equilibrium model

    NARCIS (Netherlands)

    Beukering, van P.J.H.; Bartelings, H.; Linderhof, V.G.M.; Oosterhuis, F.H.

    2009-01-01

    Differential and variable rates (DVR) in waste collection charging give a price incentive to households to reduce their waste and increase recycling. International empirical evidence confirms the effectiveness of DVR schemes, with limited unwanted side effects. In the Netherlands, currently some 20%

  5. Collusion through Price Ceilings? In Search of a Focal-Point Effect

    NARCIS (Netherlands)

    Engelmann, D.; Müller, W.

    2008-01-01

    With this study we resume the search for a collusive focal-point effect of price ceilings in laboratory markets. We argue that market conditions in previous studies were unfavorable for collusion which may have been responsible for not finding such a focal-point effect. Our design aims at maximizing

  6. Collusion through price ceilings? In search of a focal-point effect

    NARCIS (Netherlands)

    Engelmann, D.; Müller, W.

    2011-01-01

    We resume the search for a collusive focal-point effect of price ceilings in laboratory markets. We argue that market conditions in previous studies were unfavorable for collusion which may have been responsible for not finding such a focal-point effect. Our design aims at maximizing the likelihood

  7. EFFECT OF GOLD PRICE VOLATILITY ON STOCK RETURNS:EXAMPLE OF TURKEY

    Directory of Open Access Journals (Sweden)

    Filiz YILDIZ CONTUK

    2013-01-01

    Full Text Available This study analyzes the effect of fluctuations in gold prices on ISE 100 indexusing daily prices and the index data from 01.01.2009 to 31.12.2012. The rawdata has been converted into earningsyields and analyzed. The study firstdetermines whether or not the use of aGARCH model would beappropriate usinga heteroskedasticity test. The test resultsshow that there was an ARCH effect inboth variables, and that GARCH modeling could be used. The results obtainedfrom MGARCH modeling show that gold and stock exchange yields have beenaffected both by their own shocks and by shocks of each other

  8. Pricing and promotion effects on low-fat vending snack purchases: the CHIPS Study.

    Science.gov (United States)

    French, S A; Jeffery, R W; Story, M; Breitlow, K K; Baxter, J S; Hannan, P; Snyder, M P

    2001-01-01

    OBJECTIVES: This study examined the effects of pricing and promotion strategies on purchases of low-fat snacks from vending machines. METHODS: Low-fat snacks were added to 55 vending machines in a convenience sample of 12 secondary schools and 12 worksites. Four pricing levels (equal price, 10% reduction, 25% reduction, 50% reduction) and 3 promotional conditions (none, low-fat label, low-fat label plus promotional sign) were crossed in a Latin square design. Sales of low-fat vending snacks were measured continuously for the 12-month intervention. RESULTS: Price reductions of 10%, 25%, and 50% on low-fat snacks were associated with significant increases in low-fat snack sales; percentages of low-fat snack sales increased by 9%, 39%, and 93%, respectively. Promotional signage was independently but weakly associated with increases in low-fat snack sales. Average profits per machine were not affected by the vending interventions. CONCLUSIONS: Reducing relative prices on low-fat snacks was effective in promoting lower-fat snack purchases from vending machines in both adult and adolescent populations. PMID:11189801

  9. The effect of ethanol listing on corn prices: Evidence from spot and futures markets

    International Nuclear Information System (INIS)

    Demirer, Rıza; Kutan, Ali M.; Shen, Fanglin

    2012-01-01

    The use of corn for ethanol has been the topic of heated discussions in the media and among policy makers. As part of this debate, some observers have argued that the use of corn in the production of ethanol has had adverse effects on corn prices. This paper contributes to this reviving debate by examining the impact of the listing of ethanol futures in the Chicago Board of Trade on the spot and futures prices for corn. We find a significant listing effect, indicating that the listing of ethanol has had a positive contribution to both price and volatility in the corn market, especially in the spot and the shorter maturity futures contracts, and mostly through its interaction with trading volume in the corn market. We discuss the policy implications of the findings for investors and its relevance for the ongoing debate on US energy policy. We conclude with some suggestions for future research.

  10. Heterogeneity in the response to gasoline prices: Evidence from Pennsylvania and implications for the rebound effect

    International Nuclear Information System (INIS)

    Gillingham, Kenneth; Jenn, Alan; Azevedo, Inês M.L.

    2015-01-01

    The consumer response to changing gasoline prices has long interested economists and policymakers, for it has important implications for the effects of gasoline taxation and vehicle energy efficiency policies. This study examines both the elasticity of driving with respect to changing gasoline prices and heterogeneity in this elasticity by geography, the fuel economy of the vehicle, and the age of the vehicle. We use detailed annual vehicle-level emissions inspection test data from Pennsylvania that include odometer readings, inspection zip codes, and extensive vehicle characteristics. We estimate a short-run gasoline price elasticity of driving demand of − 0.10, and find substantial heterogeneity in this responsiveness. The elasticity is largely driven by low fuel economy vehicles, as well as vehicles between 3 and 7 years old. Our findings help reconcile some of the recent literature and provide guidance on the magnitude of the direct rebound effect from light duty vehicle energy efficiency policies.

  11. Oil price fluctuations and the Nigerian economy

    International Nuclear Information System (INIS)

    Ayadi, O.F.

    2005-01-01

    The single most important issue confronting a growing number of world economies today is the price of oil and its attendant consequences on economic output. Several studies have taken the approach of Hamilton (1983) in investigating the effect of oil price shocks on levels of gross domestic product. The focus of this paper is primarily on the relationship between oil price changes and economic development via industrial production. A vector auto regression model is employed on some macroeconomic variables from 1980 through 2004. The results indicate that oil price changes affect real exchange rates, which, in turn, affect industrial production. However, this indirect effect of oil prices on industrial production is not statistically significant. Therefore, the implication of the results presented in this paper is that an increase in oil prices does not lead to an increase in industrial production in Nigeria. (author)

  12. Solutions for wood-based bio-energy price discovery

    Energy Technology Data Exchange (ETDEWEB)

    Teraes, Timo [FOEX Indexes Ltd., Helsinki (Finland)], e-mail: timo@foex.fi

    2012-11-01

    Energy prices are highly volatile. This volatility can have serious ill-effects on the profitability of companies engaged in the energy business. There are, however, a number of price risk management tools which can be used to reduce the problems caused by price volatility. International trade of wood pellets and wood chips is rapidly growing. A good price transparency helps in developing the trade further. In order to meet the renewable energy targets within the EU, further growth of volumes is needed, at least within Europe and from overseas supply sources to the European markets. Reliable price indices are a central element in price risk management and in general price discovery. Exchanges have provided, in the past, the most widely known price discovery systems. Since 1990's, an increasing number of price risk management tools has been based on cash settlement concept. Cash settlement requires high quality benchmark price indices. These have been developed by the exchanges themselves, by trade press and by independent price benchmark provider companies. The best known of these benchmarks in forest industry and now also in wood-based bioenergy products are the PIX indices, provided by FOEX Indexes Ltd. This presentation discusses the key requirements for a good price index and the different ways of using the indices. Price relationships between wood chip prices and pellet prices are also discussed as will be the outlook for the future volume growth and trade flows in woodchips and pellets mainly from the European perspective.

  13. Essays in applied macroeconomics: Asymmetric price adjustment, exchange rate and treatment effect

    Science.gov (United States)

    Gu, Jingping

    This dissertation consists of three essays. Chapter II examines the possible asymmetric response of gasoline prices to crude oil price changes using an error correction model with GARCH errors. Recent papers have looked at this issue. Some of these papers estimate a form of error correction model, but none of them accounts for autoregressive heteroskedasticity in estimation and testing for asymmetry and none of them takes the response of crude oil price into consideration. We find that time-varying volatility of gasoline price disturbances is an important feature of the data, and when we allow for asymmetric GARCH errors and investigate the system wide impulse response function, we find evidence of asymmetric adjustment to crude oil price changes in weekly retail gasoline prices. Chapter III discusses the relationship between fiscal deficit and exchange rate. Economic theory predicts that fiscal deficits can significantly affect real exchange rate movements, but existing empirical evidence reports only a weak impact of fiscal deficits on exchange rates. Based on US dollar-based real exchange rates in G5 countries and a flexible varying coefficient model, we show that the previously documented weak relationship between fiscal deficits and exchange rates may be the result of additive specifications, and that the relationship is stronger if we allow fiscal deficits to impact real exchange rates non-additively as well as nonlinearly. We find that the speed of exchange rate adjustment toward equilibrium depends on the state of the fiscal deficit; a fiscal contraction in the US can lead to less persistence in the deviation of exchange rates from fundamentals, and faster mean reversion to the equilibrium. Chapter IV proposes a kernel method to deal with the nonparametric regression model with only discrete covariates as regressors. This new approach is based on recently developed least squares cross-validation kernel smoothing method. It can not only automatically smooth

  14. Short‑Term and Long‑Term Relationships Between Prices of Imported Oil and Fuel Products in the U. S.

    Directory of Open Access Journals (Sweden)

    Václav Adamec

    2016-01-01

    Full Text Available In this study, we analyzed a system of five monthly time series integrated I(1: average price of crude oil imported to the U.S. from OPEC countries (Opec, imported oil price from other than OPEC countries (NonOpec in USD per barrel, average price of regular gasoline in the U.S. (Regular, premium quality gasoline price (Premium and kerosene price (Kerosene in U.S. cents per gallon. Cointegration was established by EG test and the series were analyzed by VECM model with lag selected via BIC criterion. Cointegration rank was determined by the Johansen procedure. According to VECM coefficients, prices of oil from OPEC countries and beyond OPEC exert influence upon all commodity prices in the system, but in a contradictory manner. Responses to innovation shocks in Opec and NonOpec stabilized within 8 to 10 months upon a nonzero shift and further became permanent. Innovation shock in both types of gasoline and Kerosene had only short-term significant impact upon the system. Forecast error variance in all variables is explained mainly by variation in oil prices, especially Opec, which persists with increased horizon. For a short horizon h = 1, FEVDs in gasoline and kerosene prices are primarily made of variation in the respective fuel prices.

  15. Relationship between dimensions of Brand Equity and 4Ps of Marketing Mix - Place, Product, Promotion, & Price: Coca Cola - Consumer Based Qualitative Survey

    OpenAIRE

    Arab, Nazanin

    2018-01-01

    The relationship between dimensions of brand equity (brand association, brand awareness, perceived quality, and customer's loyalty) and 4Ps of marketing mix (product, place, price, and promotion) are examined in this paper. Cross sectional research design while following inductive approach I have explore the relationship between research variables from consumer's perspective. Total 129 participants took part in this survey. Respondents were identified and approached through convenience sa...

  16. Modeling of demand response in electricity markets : effects of price elasticity

    International Nuclear Information System (INIS)

    Banda, E.C.; Tuan, L.A.

    2007-01-01

    A design mechanism for the optimal participation of customer load in electricity markets was presented. In particular, this paper presented a modified market model for the optimal procurement of interruptible loads participating in day-ahead electricity markets. The proposed model considers the effect of price elasticity and demand-response functions. The objective was to determine the role that price elasticity plays in electricity markets. The simulation model can help the Independent System Operator (ISO) identify customers offering the lowest price of interruptible loads and load flow patterns that avoid problems associated with transmission congestion and transmission losses. Various issues associated with procurement of demand-response offerings such as advance notification, locational aspect of load, and power factor of the loads, were considered. It was shown that demand response can mitigate price volatility by allowing the ISO to maintain operating reserves during peak load periods. It was noted that the potential benefits of the demand response program would be reduced when price elasticity of demand is taken into account. This would most likely occur in actual developed open electricity markets, such as Nordpool. This study was based on the CIGRE 32-bus system, which represents the Swedish high voltage power system. It was modified for this study to include a broad range of customer characteristics. 18 refs., 2 tabs., 14 figs

  17. One TV, One Price?

    OpenAIRE

    Jean Imbs; Haroon Mumtaz; Morten O. Ravn; Hélène Rey

    2009-01-01

    We use a unique dataset on television prices across European countries and regions to investigate the sources of differences in price levels. Our findings are as follows: (i) Quality is a crucial determinant of price differences. Even in an integrated economic zone as Europe, rich economies tend to consume higher quality goods. This effect accounts for the lion’s share of international price dispersion. (ii) Sizable international price differentials subsist even for the same television sets. ...

  18. Long-term price and environmental effects in a liberalised electricity market

    International Nuclear Information System (INIS)

    Lise, Wietze; Kruseman, Gideon

    2008-01-01

    This paper studies the effects of endogenous investment decisions in a liberalised electricity market on prices and the environment in the time horizon 2000-2050. Therefore, a computational, game-theoretic, recursive dynamic model is developed. Simulations with the model indicate that perfect competition leads to lower prices and benefits the environment in the form of lower acid and smog emissions. Continued exercise of market power leads to postponed investments and more diversity in the technology portfolio, while under perfect competition there is an earlier switch to gas-based technologies. (author)

  19. Effects of illumination on store atmosphere, price and quality perception, and shopping intention

    DEFF Research Database (Denmark)

    Zielke, Stephan; Schielke, Thomas

    This paper analyzes how store lighting influences store atmosphere, price and quality perception, and the intention to shop in a retail store. A first experiment shows how the number and brightness of light beams influence these dependent variables. Results demonstrate that especially extreme...... combinations of both variables result in higher pleasure and shopping intention, while for price and quality perception different effects cancel each other out. A second experiment shows that orange light results in greater pleasure and shopping intention compared to blue light, when colors are saturated...

  20. The Effect of Pricing and Advertising on Customer Retention in a Liberalizing Market

    NARCIS (Netherlands)

    Polo, Yolanda; Javier Sese, F.; Verhoef, Peter C.

    This study investigates the drivers of customer retention in a liberalizing market. The authors address key, retention issues that allow them to contribute to existing retention research in several critical ways. They (1) examine the effects of pricing and mass advertising, (2) account for (new

  1. The Effect of Pricing and Advertising on Customer Retention in a Liberalizing Market

    NARCIS (Netherlands)

    Polo, Yolanda; Javier Sese, F.; Verhoef, Peter C.

    2011-01-01

    This study investigates the drivers of customer retention in a liberalizing market. The authors address key, retention issues that allow them to contribute to existing retention research in several critical ways. They (1) examine the effects of pricing and mass advertising, (2) account for (new

  2. Estimating Price Effects in an Almost Ideal Demand Model of Outbound Thai Tourism to East Asia

    NARCIS (Netherlands)

    C-L. Chang (Chia-Lin); T. Khamkaew (Tanchanok); M.J. McAleer (Michael)

    2010-01-01

    textabstractThis paper analyzes the responsiveness of Thai outbound tourism to East Asian destinations, namely China, Hong Kong, Japan, Taiwan and Korea, to changes in effective relative price of tourism, total real total tourism expenditure, and one-off events. The nonlinear and linear Almost Ideal

  3. Brand visualization: Effects of "product shape- typeface design" congruence on brand perceptions and price expectations

    NARCIS (Netherlands)

    van Rompay, Thomas Johannes Lucas; Pruyn, Adriaan T.H.

    2008-01-01

    This research addresses effects of congruence of symbolic meanings connoted through product shape and typeface design on brand perceptions and price expectations. Based on processing fluency accounts, it is predicted that shape-typeface congruence, as opposed to shape-typeface incongruence,

  4. 76 FR 78145 - Enhancing Airline Passenger Protections: Limited Extension of Effect Date for Full Fare Price...

    Science.gov (United States)

    2011-12-16

    ...] RIN 2105-AD92 Enhancing Airline Passenger Protections: Limited Extension of Effect Date for Full Fare Price Advertising AGENCY: Office of the Secretary (OST), Department of Transportation (DOT). ACTION... regarding the time period for compliance with a portion of the full fare and other advertising requirements...

  5. Econometric analysis of the effect of marketing costs on grain prices ...

    African Journals Online (AJOL)

    Econometric analysis of the effect of marketing costs on grain prices in Kaduna State of Nigeria. JAL Effiong. Abstract. No Abstract. Journal of Agriculture and Social Research Vol. 6 (1) 2006: pp. 11-14. Full Text: EMAIL FREE FULL TEXT EMAIL FREE FULL TEXT · DOWNLOAD FULL TEXT DOWNLOAD FULL TEXT.

  6. An asset pricing approach to liquidity effects in corporate bond markets

    NARCIS (Netherlands)

    Bongaerts, Dion; de Jong, Frank; Driessen, Joost

    We use an asset pricing approach to compare the effects of expected liquidity and liquidity risk on expected U.S. corporate bond returns. Liquidity measures are constructed for bond portfolios using a Bayesian approach to estimate Roll’s measure. The results show that expected bond liquidity and

  7. Land Prices and Fundamentals

    OpenAIRE

    Koji Nakamura; Yumi Saita

    2007-01-01

    This paper examines the long-term relationship between macro economic fundamentals and the weighted-average land price indicators, which are supposed to be more appropriate than the official land price indicators when analyzing their impacts on the macro economy. In many cases, we find the cointegrating relationships between the weighted-average land price indicators and the discounted present value of land calculated based on the macro economic fundamentals indicators. We also find that the ...

  8. An empirical examination of the relationship between naked shorting and share prices around the announcement of a firm’s need for external capital

    Directory of Open Access Journals (Sweden)

    Austin Murphy

    2012-12-01

    Full Text Available This research finds some empirical evidence that the sale of stock without delivering shares can contribute to pressuring down the equity prices of companies seeking to raise capital. By allowing for the delayed effects on prices of limit orders by naked shorts, a significant negative impact on equity value per share is discovered but only for naked short selling by market makers and only on stocks of firms in urgent need of external financing.

  9. Oil prices and the stock prices of alternative energy companies

    International Nuclear Information System (INIS)

    Henriques, Irene; Sadorsky, Perry

    2008-01-01

    Energy security issues coupled with increased concern over the natural environment are driving factors behind oil price movements. While it is widely accepted that rising oil prices are good for the financial performance of alternative energy companies, there has been relatively little statistical work done to measure just how sensitive the financial performance of alternative energy companies are to changes in oil prices. In this paper, a four variable vector autoregression model is developed and estimated in order to investigate the empirical relationship between alternative energy stock prices, technology stock prices, oil prices, and interest rates. Our results show technology stock prices and oil prices each individually Granger cause the stock prices of alternative energy companies. Simulation results show that a shock to technology stock prices has a larger impact on alternative energy stock prices than does a shock to oil prices. These results should be of use to investors, managers and policy makers. (author)

  10. THE LONG-RUN AND SHORT-RUN EFFECTS OF CRUDE OIL PRICE ON METHANOL MARKET IN IRAN

    Directory of Open Access Journals (Sweden)

    Akbar Komijani

    2013-01-01

    Full Text Available Substituting crude oil exports with value-added petrochemical products is one of the main strategies for policy makers in oil-driven economies to isolating the real sectors of economy from oil price volatility. This policy inclination has led to a body of literature in energy economics in recent decades. As a case study, this paper investigates the short-run and long-run relationship between Iran’s oil price and methanol price which is one of the most important non-oil exports of the oil-exporting country. To do so, the weekly data from 18 Jan. 2009 to 18 Sep. 2011 in a VECM framework is applied. The results show that in the long-run, oil price hikes leads to proportional increase in methanol price while in the short-run, this impact is not significant.

  11. Effects of Working Memory Capacity and Domain Knowledge on Recall for Grocery Prices.

    Science.gov (United States)

    Bermingham, Douglas; Gardner, Michael K; Woltz, Dan J

    2016-01-01

    Hambrick and Engle (2002) proposed 3 models of how domain knowledge and working memory capacity may work together to influence episodic memory: a "rich-get-richer" model, a "building blocks" model, and a "compensatory" model. Their results supported the rich-get-richer model, although later work by Hambrick and Oswald (2005) found support for a building blocks model. We investigated the effects of domain knowledge and working memory on recall of studied grocery prices. Working memory was measured with 3 simple span tasks. A contrast of realistic versus fictitious foods in the episodic memory task served as our manipulation of domain knowledge, because participants could not have domain knowledge of fictitious food prices. There was a strong effect for domain knowledge (realistic food-price pairs were easier to remember) and a moderate effect for working memory capacity (higher working memory capacity produced better recall). Furthermore, the interaction between domain knowledge and working memory produced a small but significant interaction in 1 measure of price recall. This supported the compensatory model and stands in contrast to previous research.

  12. Optimizing Household Chlorination Marketing Strategies: A Randomized Controlled Trial on the Effect of Price and Promotion on Adoption in Haiti.

    Science.gov (United States)

    Ritter, Michael; Camille, Eveline; Velcine, Christophe; Guillaume, Rose-Kerline; Lantagne, Daniele

    2017-07-01

    Household water treatment can reduce diarrheal morbidity and mortality in developing countries, but adoption remains low and supply is often unreliable. To test effects of marketing strategies on consumers and suppliers, we randomized 1,798 households in rural Haiti and collected data on purchases of a household chlorination product for 4 months. Households received randomly selected prices ($0.11-$0.56 per chlorine bottle), and half received monthly visits from sales agents. Each $0.22 drop in price increased purchases by 0.10 bottles per household per month ( P sales agents increased purchases at mid-range prices; however, the additional revenue did not offset visit cost. Choosing the lowest price and conducting visits maximizes chlorine purchase, whereas slightly raising the retail price and not conducting visits maximizes cost recovery. For the equivalent cost, price discounts increase purchases 4.2 times as much as adding visits at the current retail price. In this context, price subsidies may be a more cost-effective use of resources than household visits, though all marketing strategies tested offer cost-effective ways to achieve incremental health impact. Decisions about pricing and promotion for health products in developing countries affect health impact, cost recovery, and cost-effectiveness, and tradeoffs between these goals should be made explicit in program design.

  13. The Effectiveness of Competition Policy and the Price-Cost Margin: Evidence from Panel Data

    OpenAIRE

    Patrick McCloughan; Seán Lyons; William Batt

    2007-01-01

    This paper presents robust panel data econometric evidence suggesting that more effective competition policy curtails the exercise of market power because countries in which competition policy is judged to be more effective are characterised by lower market price-cost margins, controlling for other factors, including market growth, import penetration and spare capacity. The measure of competition policy effectiveness incorporated into our analysis is the annual survey-based ratings of nationa...

  14. Effects of an oil price rise on inflation, output, and the exchange rate in the case of subsidization policy

    Energy Technology Data Exchange (ETDEWEB)

    Zandi, F R

    1982-01-01

    Since the Organization of Petroleum Exporting Countries raised the price of oil by 400% in 1974, the theory of supply inflation has received a great deal of attention. This study analyses the short and long run effects of an oil price rise on output, inflation, and the exchange rate. The study also analyses dynamic adjustments to the oil price rise in cases where oil-price subsidies are provided and where no subsidies are provided. In the no-subsidy case it is shown that the oil price rise can be inflationary or deflationary. The implications of the policy of subsidizing the price of oil is highlighted by taking account of a government budget constraint which in turn leads to the possibility of monetization as a source of financing the deficit, and thereby to higher output relative to the no subsidy case. As to the price level, the possibility is illustrated that subsidization can actually be more inflationary. The important element giving rise to the above possibility is the subsidy induced increase in the money supply. Exchange-rate flexibility is shown not to insulate the domestic price level against an oil price rise. In the long run the rate of inflation and exchange-rate variations are determined by the rate of growth of the money supply. The dynamic adjustment path of price and output is shown to be determined by the rate of adjustment of inflationary expectations.

  15. COSTA RICAN MEAT VALUE CHAIN DESCRIPTION: PRICE TRANSMISSION AS A TOOL

    Directory of Open Access Journals (Sweden)

    Víctor Rodríguez Lizano

    2016-06-01

    Full Text Available Price transmission analysis is an increasing research topic, especially for price taking countries such as Costa Rica. We describe the beef supply chain and provide a numerical implementation of Vector Error Correction Model (VECM of price transmission for the meat market in order to observe the relationship between import prices of meat and their effects on national retail prices. To restore equilibrium, retail prices correct 8% of the error term monthly. Since the meat imports market of Costa Rica is complex, the analysis of others business partners as Nicaragua should be included in order to compare the influence of these in local retail prices

  16. Price and welfare effects of emission quota allocation

    OpenAIRE

    Golombek, Rolf; Kittelsen, Sverre A.C.; Rosendahl, Knut Einar

    2011-01-01

    Abstracts with downloadable Discussion Papers in PDF are available on the Internet: http://www.ssb.no Abstract: We analyze how different ways of allocating emission quotas may influence the electricity market. Using a large-scale numerical model of the Western European energy market, we show that different allocation mechanisms can have very different effects on the electricity market, even if the total emission target is fixed. This is particularly the case if output-based alloca...

  17. Do oil price shocks matter? Evidence for some European countries

    International Nuclear Information System (INIS)

    Cunado, Juncal; Gracia, Fernando Perez de

    2003-01-01

    This paper analyzes the oil price-macro economy relationship by means of analyzing the impact of oil prices on inflation and industrial production indexes for many European countries using quarterly data for the period 1960-1999. First, we test for cointegration allowing for structural breaks among the variables. Second, and in order to account for the possible non-linear relationships, we use different transformation of oil price data. The main results suggest that oil prices have permanent effects on inflation and short run but asymmetric effects on production growth rates. Furthermore, significant differences are found among the responses of the countries to these shocks. (Author)

  18. An illustrative note on the system price effect of wind and solar power. The German case

    International Nuclear Information System (INIS)

    Jaegemann, Cosima

    2014-01-01

    Exposing wind and solar power to the market price signal allows for cost-efficient investment decisions, as it incentivizes investors to account for the marginal value (MV el ) of renewable energy technologies. As shown by Lamont (2008), the MV el of wind and solar power units depends on their penetration level. More specifically, the MV el of wind and solar power units is a function of the respective unit's capacity factor and the covariance between its generation profile and the system marginal costs. The latter component of the MV el (i.e., the covariance) is found to decline as the wind and solar power penetration increases, displacing dispatchable power plants with higher short-run marginal costs of power production and thus reducing the system marginal costs in all generation hours. This so called 'system price effect' is analyzed in more detail in this paper. The analysis complements the work Lamont (2008) in two regards. First of all, an alternative expression for the MV el of wind and solar power units is derived, which shows that the MV el of fluctuating renewable energy technologies depends not only on their own penetration level but also on a variety of other parameters that are specific to the electricity system. Second, based on historical wholesale prices and wind and solar power generation data for Germany, a numerical 'ceteris paribus' example for Germany is presented which illustrates that the system price effect is already highly relevant for both wind and solar power generation in Germany.

  19. Long term fuel price elasticity: effects on mobility tool ownership and residential location choice - Final report

    Energy Technology Data Exchange (ETDEWEB)

    Erath, A.; Axhausen, K. W.

    2010-04-15

    This comprehensive final report for the Swiss Federal Office of Energy (SFOE) examines the long-term effects of fuel price elasticity. The study analyses how mobility tool usage and ownership as well as residence location choice are affected by rising fuel costs. Based on econometric models, long-term fuel price elasticity is derived. The authors quote that the demand reactions to higher fuel prices mainly observed are the reduction of mileage and the consideration of smaller-engined and diesel-driven cars. As cars with natural gas powered engines and electric drives were hardly considered in the survey, the results of the natural gas model can, according to the authors, only serve as a trend. No stable model could be estimated for the demand and usage of electric cars. A literature overview is presented and the design of the survey is discussed, whereby socio-demographical variables and the effects of price and residence changes are discussed. Modelling of mobility tool factors and results obtained are looked at. Finally, residence choice factors are modelled and discussed. Several appendices complete the report.

  20. Effects of Free Float Ratios on Stock Prices: An Application on ISE = Fiili Dolaşım Paylarının Hisse Senedi Fiyatları Üzerine Etkileri: IMKB’de Bir Uygulama

    Directory of Open Access Journals (Sweden)

    M.M. Tuncer ÇALIŞKAN

    2013-07-01

    Full Text Available This study investigates the effect of the free float ratio (FFR on stock return, risk, and trading activity in the Turkish capital market. Daily free float ratios are calculated 194 firms trading on Istanbul Stock Exchange for the period between 25.02.2011 and 09.03.2012. Results show no relationship between free float ratio and price return. On the other hand, trade activity and price volatility are significantly positively correlation with free float ratio.

  1. Estimating the long-run equilibrium relationship. The case of city-gate and residential natural gas prices

    International Nuclear Information System (INIS)

    Arano, Kathleen; Velikova, Marieta

    2010-01-01

    This paper examines market cointegration of city-gate and residential natural gas prices. Cointegration of gas prices across different segments of the industry provides evidence that deregulation has resulted into a more integrated, competitive natural gas industry where gas prices converge into a long-run equilibrium. Our results indicate prices further down the distribution line, the final two points of consumption, are cointegrated for a majority of the US states post open access and retail unbundling, although we find little evidence of perfect market integration. The two price series likewise converge to the long-run equilibrium faster post open access and retail unbundling. Results relative to state level unbundling (choice programs) reveal mixed outcomes with a few states without retail unbundling exhibiting market integration while some states with full unbundling exhibiting non-cointegration. (author)

  2. Distributional effects of the Australian Renewable Energy Target (RET) through wholesale and retail electricity price impacts

    International Nuclear Information System (INIS)

    Cludius, Johanna; Forrest, Sam; MacGill, Iain

    2014-01-01

    The Australian Renewable Energy Target (RET) has spurred significant investment in renewable electricity generation, notably wind power, over the past decade. This paper considers distributional implications of the RET for different energy users. Using time-series regression, we show that the increasing amount of wind energy has placed considerable downward pressure on wholesale electricity prices through the so-called merit order effect. On the other hand, RET costs are passed on to consumers in the form of retail electricity price premiums. Our findings highlight likely significant redistributive transfers between different energy user classes under current RET arrangements. In particular, some energy-intensive industries are benefiting from lower wholesale electricity prices whilst being largely exempted from contributing to the costs of the scheme. By contrast, many households are paying significant RET pass through costs whilst not necessarily benefiting from lower wholesale prices. A more equitable distribution of RET costs and benefits could be achieved by reviewing the scope and extent of industry exemptions and ensuring that methodologies to estimate wholesale price components in regulated electricity tariffs reflect more closely actual market conditions. More generally, these findings support the growing international appreciation that policy makers need to integrate distributional assessments into policy design and implementation. - Highlights: • The Australian RET has complex yet important distributional impacts on different energy users. • Likely wealth transfers from residential and small business consumers to large energy-intensive industry. • Merit order effects of wind likely overcompensate exempt industry for contribution to RET costs. • RET costs for households could be reduced if merit order effects were adequately passed through. • Need for distributional impact assessments when designing and implementing clean energy policy

  3. Twitter as driver of stock price

    OpenAIRE

    Jubbega, Annika

    2012-01-01

    The goal of this research is to examine the dynamic relationship of Twitter and stock price, by examining the effects for the ten most valuable brands according Interbrand (2010): Coca-Cola, IBM, Microsoft, Google, McDonald’s, Intel, Nokia, Disney, Toyota and Cisco. A VAR modelling approach captures the short and long term effects of Twitter to stock price and stock price to Twitter. Effects were found for 5 of the 10 brand. For Coca-Cola and Toyota, the number of brand sentiment tweets dri...

  4. Pricing Mechanism in Information Goods

    OpenAIRE

    Li, Xinming; Wang, Huaqing

    2018-01-01

    We study three pricing mechanisms' performance and their effects on the participants in the data industry from the data supply chain perspective. A win-win pricing strategy for the players in the data supply chain is proposed. We obtain analytical solutions in each pricing mechanism, including the decentralized and centralized pricing, Nash Bargaining pricing, and revenue sharing mechanism.

  5. Energy farming in Dutch desiccation abatement areas. Effects on break-even biomass price

    International Nuclear Information System (INIS)

    Londo, M.; Dekker, J.; Vleeshouwers, L.; De Graaf, H.

    1999-09-01

    Measures in Dutch nature areas to combat desiccation of nature areas often have effects on surrounding agricultural lands, or buffer areas. Generally, these soils become moister, which can lead to lower yields for most common crops. Cultivation of the flooding-tolerant energy crop willow may be an alternative. In this study, the performance of willow production is compared to that of grass for roughage, in buffer areas as well as in a hydrologically optimal situation. Financial consequences are evaluated by calculating the biomass price that makes willow equally competitive to grass (break-even). The effect of high groundwater tables on yields of both crops is estimated using the agro-hydrological model SWAP. The calculated price that gives break-even between willow and grass is lower on wet soils than in a hydrologically optimal situation. At a groundwater table class of II, a groundwater situation quite common in buffer areas, this break-even price is 20% lower. The physical yield of willow is lower than its optimum, but grass yields decrease stronger, making willow more competitive. The biomass price in a hydrologically optimal situation, as calculated in this study, is comparable to values found in other studies. However, this comparison is complicated by differences in assumptions in the cost calculations, and by the fact that grass as roughage has less value added than food crops such as potatoes and wheat. This study contains considerable uncertainties with respect to the data used and the methodology. A sensitivity analysis shows that several parameters with a strong influence on the biomass price have low uncertainties. An uncertain value with strong influence is the optimal willow yield, which could not be estimated on practical data. Methodological limitations of the study, both in the economic comparison between willow and grass and in the yield estimations, are also discussed. 50 refs

  6. The effects of new pricing and copayment schemes for pharmaceuticals in South Korea.

    Science.gov (United States)

    Lee, Iyn-Hyang; Bloor, Karen; Hewitt, Catherine; Maynard, Alan

    2012-01-01

    This study examined the effect of new Korean pricing and copayment schemes for pharmaceuticals (1) on per patient drug expenditure, utilisation and unit prices of overall pharmaceuticals; (2) on the utilisation of essential medications and (3) on the utilisation of less costly alternatives to the study medication. Interrupted time series analysis using retrospective observational data. The increasing trend of per patient drug expenditure fell gradually after the introduction of a new copayment scheme. The segmented regression model suggested that per patient drug expenditure might decrease by about 12% 1 year after the copayment increase, compared with the absence of such a policy, with few changes in overall utilisation and unit prices. The level of savings was much smaller when the new price scheme was included, while the effects of a price cut were inconclusive due to the short time period before an additional policy change. Based on the segmented regression models, we estimate that the number of patients filling their antihyperlipidemics prescriptions decreased by 18% in the corresponding period. Those prescribed generic and brand-named antihyperlipidemics declined by around 16 and 19%, respectively, indicating little evidence of generic substitution resulting from the copayment increase. Few changes were found in the use of antihypertensives. The policies under consideration appear to contain costs not by the intended mechanisms, such as substituting generics for brand name products, but by reducing patients' access to costly therapies regardless of clinical necessity. Thus, concerns were raised about potentially compromising overall health and loss of equity in pharmaceutical utilisation. Copyright © 2011 Elsevier Ireland Ltd. All rights reserved.

  7. The effect of contingency analysis on the nodal prices in the day-ahead market

    International Nuclear Information System (INIS)

    Murphy, Frederic H.; Mudrageda, Murthy; Soyster, Allen L.; Saric, Andrija T.; Stankovic, Aleksandar M.

    2010-01-01

    We look at the effect of modeling branch-outage contingencies on locational marginal prices. To model contingencies in the day-ahead auction, we formulate a two-stage stochastic program. Rather than follow the current practice of including a list of possible contingencies that must be satisfied, we incorporate a larger set of contingencies in the model and allow contingencies to result in load reductions/outages at a cost. The model can be used and interpreted in two ways. One is to look at the tradeoff between reliability and outage costs. Another is to consider the load losses resulting from a contingency to be consumer offers of load reductions in response to line outages as part of the day-ahead auction. In analyzing the model structure, we find that the prices in the model closer in definition to those currently used in the day-ahead auction do not maximize expected surplus because the day-ahead auction produces prices that assume shortages will never occur. This raises issues with the design of auctions with important stochastic elements in the market. We present results for a 68-node grid with 86 branches (lines and transformers) to illustrate how prices and expected values change as the costs of outages are varied.

  8. The effect of the Fukushima nuclear accident on stock prices of electric power utilities in Japan

    International Nuclear Information System (INIS)

    Kawashima, Shingo; Takeda, Fumiko

    2012-01-01

    The purpose of this study is to investigate the effect of the accident at the Fukushima Daiichi nuclear power station, which is owned by Tokyo Electric Power Co. (TEPCO), on the stock prices of the other electric power utilities in Japan. Because the other utilities were not directly damaged by the Fukushima nuclear accident, their stock price responses should reflect the change in investor perceptions on risk and return associated with nuclear power generation. Our first finding is that the stock prices of utilities that own nuclear power plants declined more sharply after the accident than did the stock prices of other electric power utilities. In contrast, investors did not seem to care about the risk that may arise from the use of the same type of nuclear power reactors as those at the Fukushima Daiichi station. We also observe an increase of both systematic and total risks in the post-Fukushima period, indicating that negative market reactions are not merely caused by one-time losses but by structural changes in society and regulation that could increase the costs of operating a nuclear power plant.

  9. ANALYSIS OF THE EFFECT OF MARKET STABILITY FACTORS ON THE CHANGES IN SHARE PRICE

    Directory of Open Access Journals (Sweden)

    Виктор Геннадьевич Семенов

    2013-09-01

    Full Text Available According to fundamental analysis, share price tends to its intrinsic value. An appreciably large body of research has been devoted to foreign stock markets; meanwhile, the Russian stock market has been studied insufficiently. The hypothesis of fundamental analysis of the Russian stock market was tested in this paper. The effect of market stability factors (P/E; P/B; P/CF; P/D on changes in share prices was studied. The data from the financial reports on IFRS – GAAP and the data on share prices of 54 companies over the period of 2003–2013 were used. The results give grounds for claiming that the postulates of fundamental analysis cannot be used for the Russian stock market: the market stability factors do not correlate with the changes in share prices. Next, the possible reasons for this speculative behavior of the Russian stock market were considered. The methods for analyzing the reports and the financial and economic situation in order to determine the company value were proposed in this paper.DOI: http://dx.doi.org/10.12731/2218-7405-2013-9-5

  10. Effects of fundamentals acquisition and strategy switch on stock price dynamics

    Science.gov (United States)

    Wu, Songtao; He, Jianmin; Li, Shouwei

    2018-02-01

    An agent-based artificial stock market is developed to simulate trading behavior of investors. In the market, acquisition and employment of information about fundamentals and strategy switch are investigated to explain stock price dynamics. Investors could obtain the information from both market and neighbors resided on their social networks. Depending on information status and performances of different strategies, an informed investor may switch to the strategy of fundamentalist. This in turn affects the information acquisition process, since fundamentalists are more inclined to search and spread the information than chartists. Further investigation into price dynamics generated from three typical networks, i.e. regular lattice, small-world network and random graph, are conducted after general relation between network structures and price dynamics is revealed. In each network, integrated effects of different combinations of information efficiency and switch intensity are investigated. Results have shown that, along with increasing switch intensity, market and social information efficiency play different roles in the formation of price distortion, standard deviation and kurtosis of returns.

  11. Simple Economics of the Price-Setting Newsvendor Problem

    OpenAIRE

    Michael Salinger; Miguel Ampudia

    2011-01-01

    The Lerner relationship linking the profit-maximizing price to marginal cost and the elasticity of demand generalizes to the price-setting newsvendor, and the result resolves the puzzle over the different effects of additive and multiplicative uncertainty on the solution. Multiplicative uncertainty increases the optimal price because it increases the marginal cost of a unit sold and does not affect the markup factor. Additive uncertainty has no effect on the marginal cost of a unit sold and l...

  12. Debiasing the disposition effect by reducing the saliency of information about a stock's purchase price.

    Science.gov (United States)

    Frydman, Cary; Rangel, Antonio

    2014-11-01

    The disposition effect refers to the empirical fact that investors have a higher propensity to sell risky assets with capital gains compared to risky assets with capital losses, and it has been associated with low trading performance. We use a stock trading laboratory experiment to investigate if it is possible to reduce subjects' tendency to exhibit a disposition effect by making information about a stock's purchase price, and thus about capital gains and losses, less salient. We compare two experimental conditions: a high-saliency condition in which the purchase price of a stock is prominently displayed by the trading software, and a low-saliency condition in which it is not displayed at all. We find that individuals exhibit a disposition effect in the high-saliency condition, and that the effect is 25% smaller in the low-saliency condition. This suggests that it is possible to debias the disposition effect by reducing the saliency with which information about a stock's purchase price is displayed on financial statements and online trading platforms.

  13. The effect of methamphetamine and heroin price on polydrug use: A behavioural economics analysis in Sydney, Australia.

    Science.gov (United States)

    Chalmers, Jenny; Bradford, Deborah; Jones, Craig

    2010-09-01

    A key aim of supply-side drug law enforcement is to reduce drug use by increasing the retail price of drugs. Since most illicit drug users are polydrug users the effectiveness of this strategy depends on the extent to which drug users reduce their overall consumption of drugs. The literature shows that drug users do reduce their consumption of a drug when its price increases. However the extent of that decrease and the implications for the use of other drugs vary across studies. A sample of 101 Australian methamphetamine users was surveyed using a behavioural economics approach. Participants were given a hypothetical fixed drug budget, presented with a range of drug price lists and asked how many units of each drug they would purchase. Methamphetamine and heroin prices were varied independently across trials. While demand for both methamphetamine and heroin was found to be price elastic, elasticity estimates were influenced by the nature of participants' drug dependence. The group least responsive to changes in methamphetamine price were those dependent only on methamphetamine, while the group most responsive were dependent only on heroin. Similar findings emerged in relation to changes in heroin price. Cross-price elasticity analysis showed limited substitution into other drugs as the price of methamphetamine increased. In contrast, for heroin, there was significant substitution into pharmaceutical opioids and to a lesser extent, benzodiazepines and methamphetamine. However, for the most part, the decreases in methamphetamine or heroin consumption outweighed any substitution into other drugs. The reduction in overall drug consumption and expenditure in response to price increases in heroin and methamphetamine observed in this sample lend support to supply-side enforcement strategies that aim to increase retail drug price. Notably, this analysis highlights the importance of accounting for the nature of users' drug dependence in estimating price responsiveness

  14. Oil refining in a CO2 constrained world: Effects of carbon pricing on refineries globally

    International Nuclear Information System (INIS)

    Abdul-Manan, Amir F.N.; Arfaj, Abdullah; Babiker, Hassan

    2017-01-01

    Six aggregated refinery linear programming (LP) models were developed to represent actual refineries in North America, Latin America, Europe (including the CIS), Middle East, Asia (excluding China) and China. The models were used to conduct regional comparative assessments and to evaluate the effects of carbon pricing on refinery operations globally. We found that the average refinery energy efficiencies for the regions were estimated to range from 92.2% to 95.2%. The well-to-refinery gate carbon intensities for gasoline, diesel and jet fuels were estimated to be 17.1 (16.4–19.4), 13.3 (12.5–14.2) and 10.1 (9.6–10.8) gCO2eq/MJ, respectively. If refineries are forced to at least meet the 2014 regional volume demands for oil products, pricing CO 2 would not have an impact on either refinery productions, efficiency or emissions. If refineries are allowed to re-optimize production slates to reduce CO 2 emissions, refineries would opt to increase gasoline yield at the expense of diesel. This is counter intuitive since gasoline has a higher carbon intensity than diesel. The refinery bias against dieselization creates a supply preference toward a less efficient transportation end use. Here, we argue that if carbon pricing is not administered properly, this can lead to emissions leakage from refineries to the road transport sector. - Highlights: • Investigate actual refinery productions in 6 regions globally. • Refineries already operate at the most efficient levels. • Complex refineries tolerate higher CO 2 prices better. • Carbon pricing induces bias against dieselization. • Identify potential emissions leakage.

  15. Accounting for the drug life cycle and future drug prices in cost-effectiveness analysis.

    Science.gov (United States)

    Hoyle, Martin

    2011-01-01

    Economic evaluations of health technologies typically assume constant real drug prices and model only the cohort of patients currently eligible for treatment. It has recently been suggested that, in the UK, we should assume that real drug prices decrease at 4% per annum and, in New Zealand, that real drug prices decrease at 2% per annum and at patent expiry the drug price falls. It has also recently been suggested that we should model multiple future incident cohorts. In this article, the cost effectiveness of drugs is modelled based on these ideas. Algebraic expressions are developed to capture all costs and benefits over the entire life cycle of a new drug. The lifetime of a new drug in the UK, a key model parameter, is estimated as 33 years, based on the historical lifetime of drugs in England over the last 27 years. Under the proposed methodology, cost effectiveness is calculated for seven new drugs recently appraised in the UK. Cost effectiveness as assessed in the future is also estimated. Whilst the article is framed in mathematics, the findings and recommendations are also explained in non-mathematical language. The 'life-cycle correction factor' is introduced, which is used to convert estimates of cost effectiveness as traditionally calculated into estimates under the proposed methodology. Under the proposed methodology, all seven drugs appear far more cost effective in the UK than published. For example, the incremental cost-effectiveness ratio decreases by 46%, from £61, 900 to £33, 500 per QALY, for cinacalcet versus best supportive care for end-stage renal disease, and by 45%, from £31,100 to £17,000 per QALY, for imatinib versus interferon-α for chronic myeloid leukaemia. Assuming real drug prices decrease over time, the chance that a drug is publicly funded increases over time, and is greater when modelling multiple cohorts than with a single cohort. Using the methodology (compared with traditional methodology) all drugs in the UK and New

  16. Effect of information, uncertainty and parameter variability on profits in a queue with various pricing strategies

    Science.gov (United States)

    Sun, Wei; Li, Shiyong

    2014-08-01

    This paper presents an unobservable single-server queueing system with three types of uncertainty, where the service rate, or waiting cost or service quality is random variable that may obtain n(n > 2) values. The information about the realised values of parameters is only known to the server. We are concerned about the server's behaviour: revealing or concealing the information to customers. The n-value assumption and the server's behaviour enable us to consider various pricing strategies. In this paper, we analyse the effect of information and uncertainty on profits and make comparisons between the profits under different pricing strategies. Moreover, as for parameter variability reflected by the number of each parameter's possible choices n, we observe the effect of variable n on all types of profits and find that revealing the parameter information can much more benefit the server with the increase of n.

  17. Use of comparative effectiveness research in drug coverage and pricing decisions: a six-country comparison.

    Science.gov (United States)

    Sorenson, Corinna

    2010-07-01

    Comparative effectiveness research (CER) has assumed an increasing role in drug coverage and, in some cases, pricing decisions in Europe, as decision-makers seek to obtain better value for money. This issue brief comparatively examines the use of CER across six countries--Denmark, England, France, Germany, the Netherlands, and Sweden. With CER gaining traction in the United States, these international experiences offer insights and potential lessons. Investing in CER can help address the current gap in publicly available, credible, up-to-date, and scientifically based comparative information on the effectiveness of drugs and other health interventions. This information can be used to base coverage and pricing decisions on evidence of value, thereby facilitating access to and public and private investment in the most beneficial new drugs and technologies. In turn, use of CER creates incentives for more efficient, high-quality health care and encourages development of innovative products that offer measurable value to patients.

  18. The Effects of Average Revenue Regulation on Electricity Transmission Investment and Pricing

    OpenAIRE

    Isamu Matsukawa

    2005-01-01

    This paper investigates the long-run effects of average revenue regulation on an electricity transmission monopolist who applies a two- part tariff comprising a variable congestion price and a non-negative fixed access fee. A binding constraint on the monopolist fs expected average revenue lowers the access fee, promotes transmission investment, and improves consumer surplus. In a case of any linear or log-linear electricity demand function with a positive probability that no congestion occur...

  19. The Pro-collusive Effect of Increasing the Repose Period for Price Fixing Agreements

    OpenAIRE

    Jeroen Hinloopen

    2005-01-01

    This discussion paper resulted in the publication The B.E. Journal of Economic Analysis & Policy (2007), 7(1), 1135. Intuitively, extending the period of repose for price fixing agreements enhances the effectiveness of competition policy enforcement. This paper proofs this intuition wrong. As extending the repose period reduces cartel members' defection payoff while it leaves unaltered expected compliance profits, it induces cartels to be more stable internally.

  20. Estimated effect of alcohol pricing policies on health and health economic outcomes in England: an epidemiological model.

    Science.gov (United States)

    Purshouse, Robin C; Meier, Petra S; Brennan, Alan; Taylor, Karl B; Rafia, Rachid

    2010-04-17

    Although pricing policies for alcohol are known to be effective, little is known about how specific interventions affect health-care costs and health-related quality-of-life outcomes for different types of drinkers. We assessed effects of alcohol pricing and promotion policy options in various population subgroups. We built an epidemiological mathematical model to appraise 18 pricing policies, with English data from the Expenditure and Food Survey and the General Household Survey for average and peak alcohol consumption. We used results from econometric analyses (256 own-price and cross-price elasticity estimates) to estimate effects of policies on alcohol consumption. We applied risk functions from systemic reviews and meta-analyses, or derived from attributable fractions, to model the effect of consumption changes on mortality and disease prevalence for 47 illnesses. General price increases were effective for reduction of consumption, health-care costs, and health-related quality of life losses in all population subgroups. Minimum pricing policies can maintain this level of effectiveness for harmful drinkers while reducing effects on consumer spending for moderate drinkers. Total bans of supermarket and off-license discounting are effective but banning only large discounts has little effect. Young adult drinkers aged 18-24 years are especially affected by policies that raise prices in pubs and bars. Minimum pricing policies and discounting restrictions might warrant further consideration because both strategies are estimated to reduce alcohol consumption, and related health harms and costs, with drinker spending increases targeting those who incur most harm. Policy Research Programme, UK Department of Health. Copyright 2010 Elsevier Ltd. All rights reserved.

  1. The Effect of Vegetation Productivity on Millet Prices in the Informal Markets of Mali, Burkina Faso and Niger

    Energy Technology Data Exchange (ETDEWEB)

    Brown, M.E. [Department of Geography, University of Maryland, NASA Goddard Space Flight Center, Code 923, Greenbelt, MD 20771 (United States); Pinzon, J.E. [Science Systems and Applications Inc., NASA Goddard Space Flight Center, Code 923, Greenbelt, MD (United States); Prince, S.D. [Department of Geography, University of Maryland, College Park, MD (United States)

    2006-09-15

    Systematic evaluation of food security throughout the Sahel has been attempted for nearly two decades. Food security analyses have used both food prices to determine the ability of the population to access food, and satellite-derived vegetation indices that measure vegetation production to establish how much food is available each year. The relationship between these two food security indicators is explored here using correspondence analysis and through the use of Markov chain models. Two sources of quantitative data were used: 8 km normalized difference vegetation index (NDVI) data from the Advanced Very High Resolution Radiometers (AVHRR) carried on the NOAA series of satellites, and monthly millet prices from 445 markets in Mali, Niger and Burkina Faso. The results show that the growing season vegetation production is related to the price of millet at the annual and the seasonal time scales. If the growing season was characterized by erratic, sparse rainfall, it resulted in higher prices, and well-distributed, abundant rainfall resulted in lower prices. The correspondence between vegetation production and millet prices is used to produce maps of millet prices for West Africa.

  2. New Price, New Hope? An Examination of the Effects of Doubling the Ticket Price in UK Lotto.

    Science.gov (United States)

    Forrest, David; Gulley, O David

    2018-03-01

    The UK Lotto game was introduced in November 1994 with a standard 6/49 format and an entry fee of £1 per ticket. After several years, revenue began to fall despite extensive publicity and a variety of inducements. By 2013, nominal weekly revenue was less than half the 1995 level. In October 2013, the operator doubled the price of a ticket to £2 and made a number of changes to the pay-out structure of smaller prizes. The intent of the changes was to reverse the long downward trend in game revenue by encouraging higher jackpots and offering more pay-out opportunities for each ticket. We use draw by draw revenue and other data to evaluate how players responded to these changes and find that, while ticket sales fell dramatically, total revenue rose following the changes. Primarily this appears to have been the consequence of increased frequency of rollovers (and therefore of more frequent high jackpot draws) rather than ticket price inelasticity. However, although there was a short-term gain in revenue, the changes did not arrest, and indeed seem to have accentuated, the long-run trend decrease in the revenue generated by the game.

  3. Opening the gas market - Effects on energy consumption, energy prices and the environment and compensation measures

    International Nuclear Information System (INIS)

    Dettli, R.; Signer, B.; Kaufmann, Y.

    2001-01-01

    This final report for the Swiss Federal Office of Energy (SFOE) examines the effects of a future liberalisation of the gas market in Switzerland. The report first examines the current situation of the gas supply industry in Switzerland. The contents of European Union Guidelines are described and their implementation in Switzerland is discussed. Experience already gained in other countries is looked at, including market opening already implemented in the USA and Great Britain. The effect of market-opening on gas prices is discussed; the various components of the gas price are examined and comparisons are made with international figures. The pressure of competition on the individual sectors of the gas industry are looked at and the perspectives in the gas purchasing market are examined. The report presents basic scenarios developed from these considerations. Further effects resulting from a market opening are discussed, including those on the structure of the gas industry, its participants, electricity generation, energy use and the environment, consumers in general, security of supply and the national economy. Possible compensatory measures are discussed and factors for increasing efficiency and the promotion of a competitive environment are discussed. In the appendix, two price scenarios are presented

  4. Drug Pricing Reforms

    DEFF Research Database (Denmark)

    Kaiser, Ulrich; Mendez, Susan J.; Rønde, Thomas

    2015-01-01

    Reference price systems for prescription drugs have found widespread use as cost containment tools. Under such regulatory regimes, patients co-pay a fraction of the difference between pharmacy retail price of the drug and a reference price. Reference prices are either externally (based on drug...... prices in other countries) or internally (based on domestic drug prices) determined. In a recent study, we analysed the effects of a change from external to internal reference pricing in Denmark in 2005, finding that the reform led to substantial reductions in prices, producer revenues, and expenditures...... for patients and the health insurance system. We also estimated an increase in consumer welfare but the size effect depends on whether or not perceived quality differences between branded and other drugs are taken into account....

  5. Examining the Effect of World Price Transfer to Domestic Markets for Sensitive and Certain Agricultural Products in Iran

    Directory of Open Access Journals (Sweden)

    M. shabanzadeh

    2016-03-01

    Full Text Available Introduction: Agriculture as one of old sectors of economy has been important role in the supply food for peoples and raw materials. Globalization causes rapid growth of world trade and reduces information and communications costs. Globalization and rapid growth of trade increases the potential benefits of trade for agriculture from various aspects. The potential benefits of trade for agriculture increases from three aspects. Direct increase in the domain of agricultural sector activities for competition in the global market results in the benefits of access to global markets. This is especially true in cases where there is comparative advantage and the indirect effects of increased global trade on non-agricultural sectors that cause the domestic demand for food change from qualitative and quantitative aspects, are the benefits of this event. However, during the process of globalization, how to influence prices in different markets, including the impact of world prices on domestic prices is an important issue in trade policy analysis. During this process domestic prices are directly related to world prices. With this approach, the main objective of this study is to examine the effect of world price transfers to domestic markets for sensitive and certain agricultural products in Iran during 1360-91. Materials and Methods: To achieve this goal in this study, the Armington and the foreign currency elasticity of ten selected agricultural products in Iran including wheat, barley, rice, corn, soybean meal, vegetable oil (soybean and sunflower, sugar, eggs, poultry and beef, have been estimated and examined using Autoregressive Distribution lag Model (ARDL. In order to investigate speed of adjustment or in other words the speed of movement towards equilibrium, typically the error correction model (ECM is used. Existence of cointegration or in other words, long term relationship between a set of economic variables provide the basis for the use of error

  6. Wind Energy Facilities and Residential Properties: The Effect of Proximity and View on Sales Prices

    Energy Technology Data Exchange (ETDEWEB)

    Hoen, Ben; Wiser, Ryan; Cappers, Peter; Thayer, Mark; Sethi, Gautam

    2010-04-01

    With wind energy expanding rapidly in the U.S. and abroad, and with an increasing number of communities considering nearby wind power developments, there is a need to empirically investigate community concerns about wind project development. One such concern is that property values may be adversely affected by wind energy facilities, and relatively little existing research exists on the subject. The present research is based on almost 7,500 sales of single-family homes situated within ten miles of 24 existing wind facilities in nine different U.S. states. The conclusions of the study are drawn from four different hedonic pricing models. The model results are consistent in that neither the view of the wind facilities nor the distance of the home to those facilities is found to have a statistically significant effect on home sales prices.

  7. The effect of OPEC policy decisions on oil and stock prices

    International Nuclear Information System (INIS)

    Guidi, Marco G.D.; Russell, Alexander; Tarbert, Heather

    2006-01-01

    This paper presents evidence of the effects of OPEC policy decisions on the US and UK stock markets, as well as on oil prices, during periods of conflict and non-conflict from 1986 to 2004. The outcomes of this study are potentially valuable in assessing future strategies for OPEC policy decisions on oil production targets for its Members. This paper also adds to the strong body of evidence supporting the hypothesis that market returns are influenced by factors that affect business conditions, such as oil price shocks. The key findings are that there are asymmetric reactions to OPEC policy decisions during conflict periods for the US and UK stock markets. During conflict periods, oil markets require time to incorporate OPEC decisions. Conversely, in non-conflict periods the evidence suggests that the oil markets incorporate OPEC decisions efficiently. (Author)

  8. Managing Disease Risks from Trade: Strategic Behavior with Many Choices and Price Effects.

    Science.gov (United States)

    Chitchumnong, Piyayut; Horan, Richard D

    2018-03-16

    An individual's infectious disease risks, and hence the individual's incentives for risk mitigation, may be influenced by others' risk management choices. If so, then there will be strategic interactions among individuals, whereby each makes his or her own risk management decisions based, at least in part, on the expected decisions of others. Prior work has shown that multiple equilibria could arise in this setting, with one equilibrium being a coordination failure in which individuals make too few investments in protection. However, these results are largely based on simplified models involving a single management choice and fixed prices that may influence risk management incentives. Relaxing these assumptions, we find strategic interactions influence, and are influenced by, choices involving multiple management options and market price effects. In particular, we find these features can reduce or eliminate concerns about multiple equilibria and coordination failure. This has important policy implications relative to simpler models.

  9. Rational expectations and the effects of financial liberalization on price level and output

    Directory of Open Access Journals (Sweden)

    Rangan Gupta

    2013-02-01

    Full Text Available This paper develops a generalized short-term model of a small open financially repressed economy, characterized by unorganized money markets, intermediate goods imports, capital mobility, flexible exchange rates and rational expectations, to analyze the price- and output-effects of financial liberalization. The analysis shows that financial deregulation, in the form of increased rate of interest on deposits and higher cash reserve requirements, unambiguously and unconditionally reduces domestic price level, but fails to affect output. Moreover, the result does not depend on the degree of capital mobility. The paper recommends that a small open developing economy should deregulate interest rates and tighten monetary policy if reducing inflation is a priority. Such a policy, however, requires the establishment of a flexible exchange rate regime.

  10. Effects of time delay on stochastic resonance of the stock prices in financial system

    International Nuclear Information System (INIS)

    Li, Jiang-Cheng; Li, Chun; Mei, Dong-Cheng

    2014-01-01

    The effect of time delay on stochastic resonance of the stock prices in finance system was investigated. The time delay is introduced into the Heston model driven by the extrinsic and intrinsic periodic information for stock price. The signal power amplification (SPA) was calculated by numerical simulation. The results indicate that an optimal critical value of delay time maximally enhances the reverse-resonance in the behaviors of SPA as a function of long-run variance of volatility or cross correlation coefficient between noises for both cases of intrinsic and extrinsic periodic information. Moreover, in both cases, being a critical value in the delay time, when the delay time takes value below the critical value, reverse-resonance increases with the delay time increasing, however, when the delay time takes value above the critical value, the reverse-resonance decrease with the delay time increasing. - Highlights: • The effects of delay time on stochastic resonance of the stock prices was investigated. • There is an optimal critical value of delay time maximally enhances the reverse-resonance • The reverse-resonance increases with the delay time increasing as the delay time takes value below the critical value • The reverse-resonance decrease with the delay time increasing as the delay time takes value above the critical value

  11. Effects of time delay on stochastic resonance of the stock prices in financial system

    Energy Technology Data Exchange (ETDEWEB)

    Li, Jiang-Cheng [Department of Physics, Yunnan University, Kunming, 650091 (China); Li, Chun [Department of Computer Science, Puer Teachers' College, Puer 665000 (China); Mei, Dong-Cheng, E-mail: meidch@ynu.edu.cn [Department of Physics, Yunnan University, Kunming, 650091 (China)

    2014-06-13

    The effect of time delay on stochastic resonance of the stock prices in finance system was investigated. The time delay is introduced into the Heston model driven by the extrinsic and intrinsic periodic information for stock price. The signal power amplification (SPA) was calculated by numerical simulation. The results indicate that an optimal critical value of delay time maximally enhances the reverse-resonance in the behaviors of SPA as a function of long-run variance of volatility or cross correlation coefficient between noises for both cases of intrinsic and extrinsic periodic information. Moreover, in both cases, being a critical value in the delay time, when the delay time takes value below the critical value, reverse-resonance increases with the delay time increasing, however, when the delay time takes value above the critical value, the reverse-resonance decrease with the delay time increasing. - Highlights: • The effects of delay time on stochastic resonance of the stock prices was investigated. • There is an optimal critical value of delay time maximally enhances the reverse-resonance • The reverse-resonance increases with the delay time increasing as the delay time takes value below the critical value • The reverse-resonance decrease with the delay time increasing as the delay time takes value above the critical value.

  12. The effects of mergers and acquisitions on stock price behavior in banking sector of Pakistan

    Directory of Open Access Journals (Sweden)

    Zahoor Rahman

    2018-03-01

    Full Text Available Mergers and Acquisitions are considered as one of the useful strategies for growth and expansion of businesses. These strategies have widely been adopted in developed economies while are quite often practiced in developing countries like Pakistan. This study aims to explore the effect of Mergers and Acquisitions on stock price behavior of banking sector in Pakistan by using event study analysis for the period of 2002–2012. Market Study Method was used to compute the abnormal and cumulative abnormal returns for analyzing pre and post events effect of the phenomenon on share prices. The results reveal mixed observations of the activity of mergers and acquisitions on stock price performance. Our findings indicate that most of the firms experienced negative while some firms have shown positive abnormal and cumulative abnormal returns following the activity. Overall, the results indicate that the market responded negatively towards the phenomenon of mergers and acquisition in Banking sector of Pakistan. The results would be useful in providing new insights to the investors and management in making their investment related decisions.

  13. The Effects of Oil Price Shocks on real GDP in Iran

    Directory of Open Access Journals (Sweden)

    Mohammad Taghi Khosravi Larijani

    2013-09-01

    Full Text Available In this paper, the asymmetric effects of oil price shocks on GDP have been investigated by co-integration analysis in Iran economy during the period 1960-2010. We used Hodrick-Prescott filtering to separate positive shocks from negative shocks. The results showed that in long run the negative shocks have stronger effects on output than positive ones that can have damaging repercussions on economic growth. The findings have practical policy implications for decision makers in the area of macroeconomic planning. The use of stabilization and savings funds and diversification of the real sector seems crucial to minimize the harmful effects of oil booms and busts

  14. Effect of External Economic-Field Cycle and Market Temperature on Stock-Price Hysteresis: Monte Carlo Simulation on the Ising Spin Model

    Science.gov (United States)

    Punya Jaroenjittichai, Atchara; Laosiritaworn, Yongyut

    2017-09-01

    In this work, the stock-price versus economic-field hysteresis was investigated. The Ising spin Hamiltonian was utilized as the level of ‘disagreement’ in describing investors’ behaviour. The Ising spin directions were referred to an investor’s intention to perform his action on trading his stock. The periodic economic variation was also considered via the external economic-field in the Ising model. The stochastic Monte Carlo simulation was performed on Ising spins, where the steady-state excess demand and supply as well as the stock-price were extracted via the magnetization. From the results, the economic-field parameters and market temperature were found to have significant effect on the dynamic magnetization and stock-price behaviour. Specifically, the hysteresis changes from asymmetric to symmetric loops with increasing market temperature and economic-field strength. However, the hysteresis changes from symmetric to asymmetric loops with increasing the economic-field frequency, when either temperature or economic-field strength is large enough, and returns to symmetric shape at very high frequencies. This suggests competitive effects among field and temperature factors on the hysteresis characteristic, implying multi-dimensional complicated non-trivial relationship among inputs-outputs. As is seen, the results reported (over extensive range) can be used as basis/guideline for further analysis/quantifying how economic-field and market-temperature affect the stock-price distribution on the course of economic cycle.

  15. An illustrative note on the system price effect of wind and solar power. The German case

    Energy Technology Data Exchange (ETDEWEB)

    Jaegemann, Cosima

    2014-07-15

    Exposing wind and solar power to the market price signal allows for cost-efficient investment decisions, as it incentivizes investors to account for the marginal value (MV{sup el}) of renewable energy technologies. As shown by Lamont (2008), the MV{sup el} of wind and solar power units depends on their penetration level. More specifically, the MV el of wind and solar power units is a function of the respective unit's capacity factor and the covariance between its generation profile and the system marginal costs. The latter component of the MV{sup el} (i.e., the covariance) is found to decline as the wind and solar power penetration increases, displacing dispatchable power plants with higher short-run marginal costs of power production and thus reducing the system marginal costs in all generation hours. This so called 'system price effect' is analyzed in more detail in this paper. The analysis complements the work Lamont (2008) in two regards. First of all, an alternative expression for the MV{sup el} of wind and solar power units is derived, which shows that the MV{sup el} of fluctuating renewable energy technologies depends not only on their own penetration level but also on a variety of other parameters that are specific to the electricity system. Second, based on historical wholesale prices and wind and solar power generation data for Germany, a numerical 'ceteris paribus' example for Germany is presented which illustrates that the system price effect is already highly relevant for both wind and solar power generation in Germany.

  16. The Asymmetric Effects of Oil Price Shocks on the Chinese Stock Market: Evidence from a Quantile Impulse Response Perspective

    Directory of Open Access Journals (Sweden)

    Huiming Zhu

    2016-08-01

    Full Text Available This paper uses a quantile impulse response approach to investigate the impact of oil price shocks on Chinese stock returns. This process allows us to uncover asymmetric effects of oil price shocks on stock market returns by taking into account the different quantiles of oil price shocks. Our results show that the responses of Chinese stock market returns to oil price shocks differ greatly, depending on whether the oil and stock market is in a bust or boom state and whether the shock is driven by demand or supply. The impacts of oil price shocks on Chinese stock returns present asymmetric features. In particular during a bust phase, oil supply and demand shocks significantly depress stock market returns, while during a boom period, the aggregate demand shock enhances stock market returns. These results suggest some important implications for investors and decision makers.

  17. Trading network predicts stock price.

    Science.gov (United States)

    Sun, Xiao-Qian; Shen, Hua-Wei; Cheng, Xue-Qi

    2014-01-16

    Stock price prediction is an important and challenging problem for studying financial markets. Existing studies are mainly based on the time series of stock price or the operation performance of listed company. In this paper, we propose to predict stock price based on investors' trading behavior. For each stock, we characterize the daily trading relationship among its investors using a trading network. We then classify the nodes of trading network into three roles according to their connectivity pattern. Strong Granger causality is found between stock price and trading relationship indices, i.e., the fraction of trading relationship among nodes with different roles. We further predict stock price by incorporating these trading relationship indices into a neural network based on time series of stock price. Experimental results on 51 stocks in two Chinese Stock Exchanges demonstrate the accuracy of stock price prediction is significantly improved by the inclusion of trading relationship indices.

  18. The Connection Between House Price Appreciation and Property Tax Revenues*

    OpenAIRE

    Lutz, Byron F.

    2008-01-01

    This paper explores two aspects of the connection between property tax revenues and house prices. First, I estimate the elasticity of property tax revenues with respect to house prices. This elasticity does not necessarily equal one as governments may adjust effective tax rates to offset changes in property values. Second, I examine the timing of the relationship. Institutional features of the property tax make it unlikely that changes in house prices will immediately influence tax revenues. ...

  19. Natural gas pricing

    International Nuclear Information System (INIS)

    Freedenthal, C.

    1993-01-01

    Natural gas pricing is the heart and soul of the gas business. Price specifically affects every phase of the industry. Too low a price will result in short supplies as seen in the mid-1970s when natural gas was scarce and in tight supply. To fully understand the pricing of this energy commodity, it is important to understand the total energy picture. In addition, the effect and impact of world and US economies, and economics in general are crucial to understanding natural gas pricing. The purpose of this presentation will be to show the parameters going into US natural gas pricing including the influence of the many outside industry factors like crude oil and coal pricing, market drivers pushing the gas industry, supply/demand parameters, risk management for buyers and sellers, and other elements involved in pricing analysis

  20. Driving for fun? Comparing the effect of fuel prices on weekday and weekend fuel consumption

    Energy Technology Data Exchange (ETDEWEB)

    Frondel, Manuel; Vance, Colin [Rheinisch-Westfaelisches Institut fuer Wirtschaftsforschung (RWI), Hohenzollernstr. 1-3, D-45128 Essen (Germany)

    2010-01-15

    Focusing on individual motorists in car-owning households in Germany, this paper investigates the determinants of automobile travel, with the specific aim of quantifying the effects of fuel prices and person-level attributes on travel conducted over a five-day week and weekend. Our analysis is predicated on the notion that car use is an individual decision, albeit one that is dependent on intra-household allocation processes, thereby building on a growing body of literature that has identified the importance of socioeconomic factors such as employment status, gender, and the presence of children in determining both access to and use of the car. To capture this two-stage decision process, we employ the two-part model, which consists of probit and OLS estimators, and derive elasticity estimates that incorporate both the discrete and continuous choices pertaining to car use. With fuel price elasticity estimates ranging between - 0.45 and - 0.50, our results suggest raising prices via fuel taxes to be a promising energy conservation and climate protection measure. (author)

  1. Driving for fun? Comparing the effect of fuel prices on weekday and weekend fuel consumption

    International Nuclear Information System (INIS)

    Frondel, Manuel; Vance, Colin

    2010-01-01

    Focusing on individual motorists in car-owning households in Germany, this paper investigates the determinants of automobile travel, with the specific aim of quantifying the effects of fuel prices and person-level attributes on travel conducted over a five-day week and weekend. Our analysis is predicated on the notion that car use is an individual decision, albeit one that is dependent on intra-household allocation processes, thereby building on a growing body of literature that has identified the importance of socioeconomic factors such as employment status, gender, and the presence of children in determining both access to and use of the car. To capture this two-stage decision process, we employ the two-part model, which consists of probit and OLS estimators, and derive elasticity estimates that incorporate both the discrete and continuous choices pertaining to car use. With fuel price elasticity estimates ranging between - 0.45 and - 0.50, our results suggest raising prices via fuel taxes to be a promising energy conservation and climate protection measure. (author)

  2. Macroeconomic effects of oil price shocks in Brazil and in the United States

    International Nuclear Information System (INIS)

    Cavalcanti, Tiago; Jalles, João Tovar

    2013-01-01

    Highlights: ► We find that output growth volatility in the US has been decreasing over time. ► The contribution of oil price shocks to such volatility has also been decreasing. ► In Brazil, oil shocks do not seem to have a clear impact on growth. ► They account for a small fraction of the Brazilian inflation and output volatility. ► Counterfactuals show US output would be 10% less volatile with Brazil’s oil import share. - Abstract: This paper studies the effects of oil price shocks in the last 30 years on the Brazilian and American inflation rate and rhythm of economic activity. The Brazilian and the United States economies are interesting polar cases, since they had a completely different path on the oil import dependence rate. While the oil import dependence rate has increase sharply in the United States (US), it has decreased substantially in Brazil. We found that output growth volatility in the United States has been decreasing over time as well as the contribution of oil price shocks to such volatility, despite the increase in oil import dependence. Inflation volatility has also been decreasing but oil price shocks are accounting for a larger fraction of this volatility in the US. In Brazil, such shocks do not seem to have a clear impact on output growth and they account for a very small fraction of the Brazilian inflation and output growth rate volatility. We finally run some counterfactual experiments to analyze how real output growth in the United States would had been if net oil import share in the United States behaved similarly to what was observed in Brazil. We conclude that output level would be roughly the same, however, it would be about 10% less volatile if the US had the actual Brazilian oil import share

  3. Analysis of the Complexity Entropy and Chaos Control of the Bullwhip Effect Considering Price of Evolutionary Game between Two Retailers

    Directory of Open Access Journals (Sweden)

    Junhai Ma

    2016-11-01

    Full Text Available In this research, a model is established to represent a supply chain, which consists of one manufacturer and two retailers. The price-sensitive demand model is considered and the price game system is built according to the rule of bounded rationality as well as the entropy theory. With the increase of the price adjustment speed, the game system may go into chaos from the stable and periodic state. The bullwhip effect and inventory variance ratio of different stages that the system falls in are compared in real time. We also employ the delayed feedback control method to control the system and succeed in mitigating the bullwhip effect of the system. On the whole, the bullwhip effect and inventory variance ratio in the stable state are smaller than those in period-doubling and chaos. In the stable state, there is an optimal price adjustment speed to obtain both the lowest bullwhip effect and inventory variance ratio.

  4. Risk Pricing and Profit Maximization of Insurance Companies ...

    African Journals Online (AJOL)

    The research investigates the impact of pricing of risk on the profitability of Nigeria insurance market and also the relationship between operation expenses and profitability of the non-life insurance market in Nigeria. Results show that economy, competition and government regulation have effect on pricing of risk. Also, it was ...

  5. Social accounting matrix and the effects of economic reform on health price index and household expenditures: Evidence from Iran.

    Science.gov (United States)

    Keshavarz, Khosro; Najafi, Behzad; Andayesh, Yaghob; Rezapour, Aziz; Abolhallaj, Masoud; Sarabi Asiabar, Ali; Hashemi Meshkini, Amir; Sanati, Ehsan; Mirian, Iman; Nikfar, Shekoofeh; Lotfi, Farhad

    2017-01-01

    Background: Socioeconomic indicators are the main factors that affect health outcome. Health price index (HPI) and households living costs (HLC) are affected by economic reform. This study aimed at examining the effect of subsidy targeting plan (STP) on HPI and HLC. Methods: The social accounting matrix was used to study the direct and indirect effects of STP. We chose 11 health related goods and services including insurance, compulsory social security services, hospital services, medical and dental services, other human health services, veterinary services, social services, environmental health services, laundry& cleaning and dyeing services, cosmetic and physical health services, and pharmaceutical products in the social accounting matrix to examine the health price index. Data were analyzed by the I-O&SAM software. Results: Due to the subsidy release on energy, water, and bread prices, we found that (i) health related goods and services groups' price index rose between 33.43% and 77.3%, (ii) the living cost index of urban households increased between 48.75% and 58.21%, and (iii) the living cost index of rural households grew between 53.51% and 68.23%. The results demonstrated that the elimination of subsidy would have negative effects on health subdivision and households' costs such that subsidy elimination increased the health prices index and the household living costs, especially among low-income families. The STP had considerable effects on health subdivision price index. Conclusion: The elimination or reduction of energy carriers and basic commodities subsidies have changed health price and households living cost index. Therefore, the policymakers should consider controlling the price of health sectors, price fluctuations and shocks.

  6. Recent oil price shock and Tunisian economy

    International Nuclear Information System (INIS)

    Jbir, Rafik; Zouari-Ghorbel, Sonia

    2009-01-01

    The objective of this paper is to study the oil prices-macroeconomy relationship by the analysis of the role of subsidy policy. The vector autoregression (VAR) method was employed to analyze the data over the period 1993 Q1 - 2007 Q3. The results of the model using both linear and non-linear specifications indicate that there is no direct impact of oil price shock on the economic activity. The shock of oil prices affects economic activity indirectly. The most significant channel by which the effects of the shock are transmitted is the government's spending. (author)

  7. The effect of urban trees on the rental price of single-family homes in Portland, Oregon

    Science.gov (United States)

    Geoffrey H. Donovan; David T. Butry

    2011-01-01

    Few studies have estimated the effect of environmental amenities on the rental price of houses. We address this gap in the literature by quantifying the effect of urban trees on the rental price of single-family homes in Portland, Oregon, USA. We found that an additional tree on a house's lot increased monthly rent by $5.62, and a tree in the public right of way...

  8. Effect of price and information on the food choices of women university students in Saudi Arabia: An experimental study.

    Science.gov (United States)

    Halimic, Aida; Gage, Heather; Raats, Monique; Williams, Peter

    2018-04-01

    To explore the impact of price manipulation and healthy eating information on intended food choices. Health information was provided to a random half of subjects (vs. information on Saudi agriculture). Each subject chose from the same lunch menu, containing two healthy and two unhealthy entrees, deserts and beverages, on five occasions. Reference case prices were 5, 3 and 2 Saudi Arabian Reals (SARs). Prices of healthy and unhealthy items were manipulated up (taxed) and down (subsidized) by 1 SAR in four menu variations (random order); subjects were given a budget enabling full choice within any menu. The number of healthy food choices were compared with different price combinations, and between information groups. Linear regression modelling explored the effect of relative prices of healthy/unhealthy options and information on number of healthy choices controlling for dietary behaviours and hunger levels. University campus, Saudi Arabia, 2013. 99 women students. In the reference case, 49.5% of choices were for healthy items. When the price of healthy items was reduced, 58.5% of selections were healthy; 57.2% when the price of unhealthy items rose. In regression modelling, reducing the price of healthy items and increasing the price of unhealthy items increased the number of healthy choices by 5% and 6% respectively. Students reporting a less healthy usual diet selected significantly fewer healthy items. Providing healthy eating information was not a significant influence. Price manipulation offers potential for altering behaviours to combat rising youth obesity in Saudi Arabia. Copyright © 2018 Elsevier Ltd. All rights reserved.

  9. Parallel imports of hospital pharmaceuticals: An empirical analysis of price effects from parallel imports and the design of procurement procedures in the Danish hospital sector

    OpenAIRE

    Hostenkamp, Gisela; Kronborg, Christian; Arendt, Jacob Nielsen

    2012-01-01

    We analyse pharmaceutical imports in the Danish hospital sector. In this market medicines are publicly tendered using first-price sealed-bid procurement auctions. We analyse whether parallel imports have an effect on pharmaceutical prices and whether the way tenders were organised matters for the competitive effect of parallel imports on prices. Our theoretical analysis shows that the design of the procurement rules affects both market structure and pharmaceutical prices. Parallel imports may...

  10. Effects of Tobacco Taxation and Pricing on Smoking Behavior in High Risk Populations: A Knowledge Synthesis

    Directory of Open Access Journals (Sweden)

    David Boisclair

    2011-10-01

    Full Text Available Tobacco taxation is an essential component of a comprehensive tobacco control strategy. However, to fully realize the benefits it is vital to understand the impact of increased taxes among high-risk subpopulations. Are they influenced to the same extent as the general population? Do they need additional measures to influence smoking behavior? The objectives of this study were to synthesize the evidence regarding differential effects of taxation and price on smoking in: youth, young adults, persons of low socio-economic status, with dual diagnoses, heavy/long-term smokers, and Aboriginal people. Using a better practices approach, a knowledge synthesis was conducted using a systematic review of the literature and an expert advisory panel. Experts were involved in developing the study plan, discussing findings, developing policy recommendations, and identifying priorities for future research. Most studies found that raising cigarette prices through increased taxes is a highly effective measure for reducing smoking among youth, young adults, and persons of low socioeconomic status. However, there is a striking lack of evidence about the impact of increasing cigarette prices on smoking behavior in heavy/long-term smokers, persons with a dual diagnosis and Aboriginals. Given their high prevalence of smoking, urgent attention is needed to develop effective policies for the six subpopulations reviewed. These findings will be of value to policy-makers and researchers in their efforts to improve the effectiveness of tobacco control measures, especially with subpopulations at most risk. Although specific studies are needed, tobacco taxation is a key policy measure for driving success.

  11. Effects of tobacco taxation and pricing on smoking behavior in high risk populations: a knowledge synthesis.

    Science.gov (United States)

    Bader, Pearl; Boisclair, David; Ferrence, Roberta

    2011-11-01

    Tobacco taxation is an essential component of a comprehensive tobacco control strategy. However, to fully realize the benefits it is vital to understand the impact of increased taxes among high-risk subpopulations. Are they influenced to the same extent as the general population? Do they need additional measures to influence smoking behavior? The objectives of this study were to synthesize the evidence regarding differential effects of taxation and price on smoking in: youth, young adults, persons of low socio-economic status, with dual diagnoses, heavy/long-term smokers, and Aboriginal people. Using a better practices approach, a knowledge synthesis was conducted using a systematic review of the literature and an expert advisory panel. Experts were involved in developing the study plan, discussing findings, developing policy recommendations, and identifying priorities for future research. Most studies found that raising cigarette prices through increased taxes is a highly effective measure for reducing smoking among youth, young adults, and persons of low socioeconomic status. However, there is a striking lack of evidence about the impact of increasing cigarette prices on smoking behavior in heavy/long-term smokers, persons with a dual diagnosis and Aboriginals. Given their high prevalence of smoking, urgent attention is needed to develop effective policies for the six subpopulations reviewed. These findings will be of value to policy-makers and researchers in their efforts to improve the effectiveness of tobacco control measures, especially with subpopulations at most risk. Although specific studies are needed, tobacco taxation is a key policy measure for driving success.

  12. Effectiveness of price adjustment clauses in district heat supply contracts. Consequences of the 2011 BGH rulings; Wirksamkeit von Preisanpassungsklauseln in Fernwaermelieferungsvertraegen. Konsequenzen der BGH-Urteile 2011

    Energy Technology Data Exchange (ETDEWEB)

    Buedenbender, Ulrich; Gromm, Marcel [TU Dresden (Germany). Lehrstuhl fuer Buergerliches Recht, Energiewirtschaftsrecht und Arbeitsrecht

    2011-07-01

    In 2011, the BGH had to decide for the first time on price adjustment clauses. There were four court rulings on price adjustment clauses in district heat supply contracts, and price adjustment clauses were considered to be ineffective in all cases. This is a trend similar to the rulings on gas supply contracts since 2005. This contribution discusses the consequences of the 2011 BGH rulings for future price adjustment clauses in district heat supply contracts. The contract partners, especially the customers of district heating utilities, must be sure whether a raised supply price will be based on an effective price adjustment clause, or whether it will enable the customer to refuse payment. (orig.)

  13. An Empirical Analysis of the Price Discovery Function of Shanghai Fuel Oil Futures Market

    Institute of Scientific and Technical Information of China (English)

    Wang Zhen; Liu Zhenhai; Chen Chao

    2007-01-01

    This paper analyzes the role of price discovery of Shanghai fuel oil futures market by using methods, such as unit root test, co-integration test, error correction model, Granger causality test, impulse-response function and variance decomposition. The results showed that there exists a strong relationship between the spot price of Huangpu fuel oil spot market and the futures price of Shanghai fuel oil futures market. In addition, the Shanghai fuel oil futures market exhibits a highly effective price discovery function.

  14. Oil price volatility and the asymmetric response of gasoline prices to oil price increases and decreases

    International Nuclear Information System (INIS)

    Radchenko, S.

    2005-01-01

    This paper analyzes the effect of volatility in oil prices on the degree of asymmetry in the response of gasoline prices to oil price increases and decreases. Several time series measures of the asymmetry between the responses of gasoline prices to oil price increases and decreases and several measures of the oil price volatility are constructed. In all models, the degree of asymmetry in gasoline prices declines with an increase in oil price volatility. The results support the oligopolistic coordination theory as a likely explanation of the observed asymmetry and are not consistent with the standard search theory and the search theory with Bayesian updating. (author)

  15. Price fairness

    OpenAIRE

    Diller, Hermann

    2013-01-01

    Purpose – The purpose of this article is to integrate the various strands of fair price research into a concise conceptual model. Design/methodology/approach – The proposed price fairness model is based on a review of the fair pricing literature, incorporating research reported in not only English but also German. Findings – The proposed fair price model depicts seven components of a fair price: distributive fairness, consistent behaviour, personal respect and regard for the partner, fair dea...

  16. Wind Energy Facilities and Residential Properties: The Effect of Proximity and View on Sales Prices

    Energy Technology Data Exchange (ETDEWEB)

    Hoen, Ben; Wiser, Ryan; Cappers, Peter; Thayer, Mark; Sethi, Gautam

    2010-04-01

    With an increasing number of communities considering nearby wind power developments, there is a need to empirically investigate community concerns about wind project development. One such concern is that property values may be adversely affected by wind energy facilities, and relatively little research exists on the subject. The present research investigates roughly 7,500 sales of single-family homes surrounding 24 existing U.S. wind facilities. Across four different hedonic models the results are consistent: neither the view of the wind facilities nor the distance of the home to those facilities is found to have a statistically significant effect on home sales prices.

  17. The effects of average revenue regulation on electricity transmission investment and pricing

    International Nuclear Information System (INIS)

    Matsukawa, Isamu

    2008-01-01

    This paper investigates the long-run effects of average revenue regulation on an electricity transmission monopolist who applies a two-part tariff comprising a variable congestion price and a non-negative fixed access fee. A binding constraint on the monopolist's expected average revenue lowers the access fee, promotes transmission investment, and improves consumer surplus. In a case of any linear or log-linear electricity demand function with a positive probability that no congestion occurs, average revenue regulation is allocatively more efficient than a Coasian two-part tariff if the level of capacity under average revenue regulation is higher than that under a Coasian two-part tariff. (author)

  18. Wind Energy Facilities and Residential Properties: The Effect of Proximity and View on Sales Prices

    Energy Technology Data Exchange (ETDEWEB)

    San Diego State University; Bard Center for Environmental Policy at Bard College; Hoen, Ben; Wiser, Ryan; Cappers, Peter; Thayer, Mark; Sethi, Gautam

    2011-06-23

    With increasing numbers of communities considering wind power developments, empirical investigations regarding related community concerns are needed. One such concern is that proximate property values may be adversely affected, yet relatively little research exists on the subject. The present research investigates roughly 7,500 sales of single-family homes surrounding 24 existing U.S. wind facilities. Across four different hedonic models, and a variety of robustness tests, the results are consistent: neither the view of the wind facilities nor the distance of the home to those facilities is found to have a statistically significant effect on sales prices, yet further research is warranted.

  19. Downward Price-Based Brand Line Extensions Effects on Luxury Brands

    OpenAIRE

    Royo-Vela, Marcelo; Voss, Eileen

    2015-01-01

    This study tries to examine the brand concept consistency, the self-concept congruence and the resulting loyalty status of the consumers in order to evaluate whether a downward price-based line extensions in the luxury goods market has any negative or positive effect on them. By conducting focus group and in-depth interviews it was tried to filter out how brand concepts of luxury brands are perceived before and after a line extension. Results revealed that a crucial aspect for the evaluation ...

  20. DEVELOPMENT OF TIGHT OIL RESOURCES IN USA: PROFITABILITY OF EXPLOITATION AND EFFECT OF MACROECONOMIC INDICATORS IN VOLATILE OIL PRICE ENVIRONMENT

    Directory of Open Access Journals (Sweden)

    Kristina Strpić

    2017-01-01

    Full Text Available Large scale development of tight oil resources in US started after 2010. with following five-year period of favorable steady increase in crude oil price. During this relatively short expansion cycle, operating and capital expenses changed drastically for main tight oil plays due to technological improvements in both well drilling and completion, expansion of service sector as well as loose government monetary policy which allowed favorable financing. This paper analyzed trends in costs during expansion period, as well as correlation of oil price to number of operating rigs and production quotas. After 2008/2009. world financial crisis economy recovery in US was somewhat sluggish and it caused extreme volatile environment in both equity and commodity markets. In such volatile environment intra-day crude oil prices, as well as other commodities and equities, show significant reaction to monthly published macroeconomic indicator reports, which give better overviews of trends in economic recovery. Prior to announcement, these reports always have forecasted value determined by consensus among market analysts. Therefore, any positive or negative surprise in real value tends to influence price of oil. This paper investigated influence of such macroeconomic reports to closing intraday oil price, as well as effect of other important daily market indices. Analysis showed that only Producer Price Index (PPI, among other indicators, has statistical significance of affecting intraday closing oil price.

  1. The effect of Taiwan's tax-induced increases in cigarette prices on brand-switching and the consumption of cigarettes.

    Science.gov (United States)

    Tsai, Yi-Wen; Yang, Chung-Lin; Chen, Chin-Shyan; Liu, Tsai-Ching; Chen, Pei-Fen

    2005-06-01

    The effect of raising cigarette taxes to reduce smoking has been the subject of several studies, which often treat the price of cigarettes as an exogenous factor given to smokers who respond to it by adjusting their smoking behavior. However, cigarette prices vary with brand and quality, and smokers can and do switch to lower-priced brands to reduce the impact of the tax on the cost of cigarettes as they try to consume the same number of cigarettes as they had before a tax hike. Using data from a two-year follow-up interview survey conducted before and after a new cigarette tax scheme was imposed in Taiwan in 2002, this study examines three behavioral changes smokers may make to respond to tax-induced cigarette price increase: brand-switching, amount consumed, and amount spent on smoking. These changes were studied in relation to smoker income, before-tax cigarette price, level of addiction, exposure to advertizing, and consumer loyalty. We found that smokers, depending upon exposure to advertizing, level of consumer loyalty and initial price of cigarettes, switched brands to maintain current smoking habits and control costs. We also found that the initial amount smoked and level of addiction, not price, at least not at the current levels in Taiwan, determined whether a smoker reduced the number of cigarettes he consumed. Copyright 2005 John Wiley & Sons, Ltd.

  2. The substitutive effect of biofuels on fossil fuels in the lower and higher crude oil price periods

    International Nuclear Information System (INIS)

    Chang, Ting-Huan; Su, Hsin-Mei

    2010-01-01

    Various biofuels, including bioethanol and biodiesel are technologically being considered replacements for fossil fuels, such as the conventional gasoline and diesel. This paper aims to measure whether economic substitutability can be generated during periods of higher and/or lower prices of crude oil. The empirical results of the bivariate EGARCH model prove that this substitutive effect was occurred during the higher crude oil price period due to the significant price spillover effects from crude oil futures to corn and soybean futures, indicating that the increase in food prices can be attributed to more consumption of biofuels. We suggest more extensive research in the search for fuel alternatives from inedible feedstock such as pongamia, jojoba, jatropha, especially the 2nd generation biofuel technologies such as algae-based biofuels. (author)

  3. The substitutive effect of biofuels on fossil fuels in the lower and higher crude oil price periods

    Energy Technology Data Exchange (ETDEWEB)

    Chang, Ting-Huan [Energy and Environment Research Laboratories, Industrial Technology Research Institute, Hsinchu County 310 (China); Department of Banking and Finance, Tamkang University, No.151, Ying-Chuan Road, Taipei County 251 (China); Su, Hsin-Mei [Department of Banking and Finance, Tamkang University, No.151, Ying-Chuan Road, Taipei County 251 (China)

    2010-07-15

    Various biofuels, including bioethanol and biodiesel are technologically being considered replacements for fossil fuels, such as the conventional gasoline and diesel. This paper aims to measure whether economic substitutability can be generated during periods of higher and/or lower prices of crude oil. The empirical results of the bivariate EGARCH model prove that this substitutive effect was occurred during the higher crude oil price period due to the significant price spillover effects from crude oil futures to corn and soybean futures, indicating that the increase in food prices can be attributed to more consumption of biofuels. We suggest more extensive research in the search for fuel alternatives from inedible feedstock such as pongamia, jojoba, jatropha, especially the 2nd generation biofuel technologies such as algae-based biofuels. (author)

  4. Quantity precommitment and price matching

    DEFF Research Database (Denmark)

    Tumennasan, Norovsambuu

    We revisit the question of whether price matching is anti-competitive in a capacity constrained duopoly setting. We show that the effect of price matching depends on capacity. Specifically, price matching has no effect when capacity is relatively low, but it benefits the firms when capacity...... is relatively high. Interestingly, when capacity is in an intermediate range, price matching benefits only the small firm but does not affect the large firm in any way. Therefore, one has to consider capacity seriously when evaluating if price matching is anti-competitive. If the firms choose their capacities...... simultaneously before pricing decisions, then the effect of price matching is either pro-competitive or ambiguous. We show that if the cost of capacity is high, then price matching can only (weakly) decrease the market price. On the other hand, if the cost of capacity is low, then the effect of price matching...

  5. The Effect of Prior Knowledge on Price Acceptability and the Type of Information Examined.

    OpenAIRE

    Rao, Akshay R; Sieben, Wanda A

    1992-01-01

    This article assesses whether differences in prior knowledge result in differences in (1) price acceptability and (2) the extent to which different types of information are examined. Using a personal computer-based methodology, subjects who varied in their prior product knowledge provided price responses, and the time they spent examining various kinds of information was measured. Acceptable price-range and points (price limits) were found to be lowest for low-knowledge subjects. Further, the...

  6. Effects of calorie labeling and value size pricing on fast food meal choices: Results from an experimental trial

    OpenAIRE

    Jeffery Robert W; Story Mary T; Oakes J Michael; French Simone A; Harnack Lisa J; Rydell Sarah A

    2008-01-01

    Abstract Background Although point-of-purchase calorie labeling at restaurants has been proposed as a strategy for improving consumer food choices, a limited number of studies have evaluated this approach. Likewise, little research has been conducted to evaluate the influence of value size pricing on restaurant meal choices. Methods To examine the effect of point-of-purchase calorie information and value size pricing on fast food meal choices a randomized 2 × 2 factorial experiment was conduc...

  7. Effect of increasing the price of sugar-sweetened beverages on alcoholic beverage purchases: an economic analysis of sales data.

    Science.gov (United States)

    Quirmbach, Diana; Cornelsen, Laura; Jebb, Susan A; Marteau, Theresa; Smith, Richard

    2018-04-01

    Taxing soft-drinks may reduce their purchase, but assessing the impact on health demands wider consideration on alternative beverage choices. Effects on alcoholic drinks are of particular concern, as many contain similar or greater amounts of sugar than soft-drinks and have additional health harms. Changes in consumption of alcoholic drinks may reinforce or negate the intended effect of price changes for soft-drinks. A partial demand model, adapted from the Almost Ideal Demand System, was applied to Kantar Worldpanel data from 31 919 households from January 2012 to December 2013, covering drink purchases for home consumption, providing ~6 million purchases aggregated into 11 groups, including three levels of soft-drink, three of other non-alcoholic drinks and five of alcoholic drinks. An increase in the price of high-sugar drinks leads to an increase in the purchase of lager, an increase in the price of medium-sugar drinks reduces purchases of alcoholic drinks, while an increase in the price of diet/low-sugar drinks increases purchases of beer, cider and wines. Overall, the effects of price rises are greatest in the low-income group. Increasing the price of soft-drinks may change purchase patterns for alcohol. Increasing the price of medium-sugar drinks has the potential to have a multiplier-effect beneficial to health through reducing alcohol purchases, with the converse for increases in the price of diet-drinks. Although the reasons for such associations cannot be explained from this analysis, requiring further study, the design of fiscal interventions should now consider these wider potential outcomes. © Article author(s) (or their employer(s) unless otherwise stated in the text of the article) 2018. All rights reserved. No commercial use is permitted unless otherwise expressly granted.

  8. Price effects of changing quantities supplied at the integrated european fish market

    DEFF Research Database (Denmark)

    Nielsen, Max; Smit, Jos; Guillen, Jordi

    2012-01-01

    to be −1.1. This implies that price flexibilities previously estimated for single European countries underestimate price changes at the European level caused by quantity changes. Results indicate that changing quantities can increase revenues from individual species with large own-price flexibilities...

  9. Output Price Risk, Material Input Price Risk, and Price Margins: Evidence from the US Catfish Industry.

    Directory of Open Access Journals (Sweden)

    David Bouras

    2017-07-01

    Full Text Available Aim/purpose - To develop a conceptual model for analyzing the impact of output price risk and material input price risk on price margins. Design/methodology/approach - To analyze the combined effect of output price risk and material input risk on price margins, we use a series of comparative static analyses, GARCH models, and data ranging from 1990/01 to 2012/12. Findings - The theoretical results indicate that the impact of output price risk and the impact of material input price risk on price margins are ambiguous and, to a great extent, hinge on the correlation between output price and material input price. The empirical results show that whole frozen catfish price risk and live catfish price risk negatively affect the price margin for frozen catfish. The empirical results, however, indicate that the risk of the price of live catfish affects markedly the price margin for frozen whole catfish in contrast to the impact of the risk of the price of frozen whole catfish. Research implications/limitations - The empirical results have significant implications for managerial decision-making especially when crafting strategies for improving price margins. Accordingly, in order to beef up the price margin for frozen whole catfish, catfish processors may consider engaging in vertical integration. This paper has some limitations: first, it assumes that firms operate in competitive markets; second, it assumes that firms produce and sell a single product. Originality/value/contribution - Unlike earlier studies that focused solely on the effect of output price risk on price margins, this paper analyzes theoretically and empirically the impact of output price risk and material input price risk on price margins.

  10. Dynamic Pricing

    DEFF Research Database (Denmark)

    Sharifi, Reza; Anvari-Moghaddam, Amjad; Fathi, S. Hamid

    2017-01-01

    Dynamic pricing scheme, also known as real-time pricing (RTP), can be more efficient and technically beneficial than the other price-based schemes (such as flat-rate or time-of-use (TOU) pricing) for enabling demand response (DR) actions. Over the past few years, advantages of RTP-based schemes h...... of dynamic pricing can lead to increased willingness of consumers to participate in DR programs which in turn improve the operation of liberalized electricity markets.......Dynamic pricing scheme, also known as real-time pricing (RTP), can be more efficient and technically beneficial than the other price-based schemes (such as flat-rate or time-of-use (TOU) pricing) for enabling demand response (DR) actions. Over the past few years, advantages of RTP-based schemes...

  11. Myopic versus Far-Sighted Behaviors in Dynamic Supply Chain Coordination through Advertising with Reference Price Effect

    Directory of Open Access Journals (Sweden)

    Yafei Zu

    2017-01-01

    Full Text Available To better understand the different effects of the myopic and far-sighted behaviors on the advertising coordination in dynamic supply chain, this paper takes the reference price effect into consideration and formulates four differential game models for the two-level supply chain composed of a manufacturer and a retailer in the situation of Stackelberg game. In our models, the market demand is assumed to be affected by the goodwill, reference price, and the advertising investment, in which the advertising investment can promote the construction of goodwill and such goodwill can further enhance the reference price. The results show that the participating members in the supply chain should invest more in advertisement to improve the goodwill and the relative reference price reflected in the minds of consumers. A far-sighted manufacturer will invest more in the advertisement and charge a higher wholesale price regardless of the behavior choice of the retailer. However, such kind of ignorance leads to different results on the retail pricing strategies of the retailer. The numerical analyses are given in the end to verify the effectiveness of the conclusions which provide the theoretical support to the dynamic supply chain coordination in practice.

  12. Sensitivity of price elasticity of demand to aggregation, unobserved heterogeneity, price trends, and price endogeneity: Evidence from U.S. Data

    International Nuclear Information System (INIS)

    Miller, Mark; Alberini, Anna

    2016-01-01

    Price elasticity estimates of residential electricity demand vary widely across the energy economics and policy literature. In this paper, we seek to explain these findings using three nationwide datasets from the U.S. – the American Housing Survey, Forms EIA-861, and the Residential Energy Consumption Survey. We examine the role of the sample period, level of aggregation, use of panel data, use of instrumental variables, and inclusion of housing characteristics and capital stock. Our findings suggest that price elasticities have remained relatively constant over time. Upon splitting our panel datasets into annual cross sections, we do observe a negative relationship between price elasticities and the average price. Whether prices are rising or falling appears to have little effect on our estimates. We also find that aggregating our data can result in both higher and lower price elasticity estimates, depending on the dataset used, and that controlling for unit-level fixed effects with panel data generally results in more inelastic demand functions. Addressing the endogeneity of price and/or measurement error in price with instrumental variables has a small but noticeable effect on the price elasticities. Finally, controlling for housing characteristics and capital stock produces a lower price elasticity. - Highlights: • The price elasticity of residential electricity demand varies widely across studies. • We use three large datasets from the US to examine reasons for such wide variation. • Some assessed effects include aggregation, unobserved heterogeneity, and price trends. • Correcting for such issues can change the estimated price elasticity by 50–100%.

  13. [Acceptance of generic prescribing in general practice: effect of patient education and reference prices].

    Science.gov (United States)

    Vallès, J A; Barreiro, M; Cereza, G; Ferro, J J; Martínez, M J; Cucurull, E; Barceló, E

    2002-01-01

    To assess patient acceptance of the substitution of brand-name drugs for generic equivalents in the context of repeat prescriptions for chronic diseases. A prospective multicenter study of drug use was performed. Of the 31 centers included in the study, 8 were randomized to the intervention group and 23 to the control group. For 1 year, patients in the intervention group who visited the center to collect repeat prescriptions received verbal and written information on the advantages and disadvantages of generic and brand name drugs. Data on the number of patients taking brand-name drugs for which generic equivalents were available, as well as the reasons and variables related to refusal of generic drugs (age, gender, education, primary care centre, general practitioner, type of drug and total number of repeat prescriptions) were collected. The percentage of generic drugs among the total number of drugs prescribed was calculated at 2-monthly intervals. A total of 98.9% of the 4620 patients in the intervention group agreed to change to a generic formulation. The percentage of patients accepting generic drugs was significantly associated with the primary care centre, the class of drug, doctors' influence, and patient satisfaction with the drug. Generic prescriptions represented 5.9% in the intervention practices compared with 2.8% in controls. After the intervention, and before the application of reference prices, the percentages were 6.7% and 3.9%, respectively. Immediately after application of the reference prices, the percentages were 8.6% and 6.3%, respectively. Direct patient education is an effective strategy in increasing the prescription of generic equivalents. General practitioners' motivation and knowledge of generic drugs influenced their use. The application of reference prices increased the use of generic equivalents.

  14. An Analysis of the Effects of Photovoltaic Energy Systems on Residential Selling Prices in California.

    Energy Technology Data Exchange (ETDEWEB)

    Cappers, Peter; Wiser, Ryan; Thayer, Mark; Hoen, Ben

    2011-04-12

    An increasing number of homes with existing photovoltaic (PV) energy systems have sold in the U.S., yet relatively little research exists that estimates the marginal impacts of those PV systems on the sales price. A clearer understanding of these effects might influence the decisions of homeowners, home buyers and PV home builders. This research analyzes a large dataset of California homes that sold from 2000 through mid-2009 with PV installed. Across a large number of hedonic and repeat sales model specifications and robustness tests, the analysis finds strong evidence that homes with PV systems sold for a premium over comparable homes without. The effects range, on average, from approximately $3.9 to $6.4 per installed watt (DC), with most models coalescing near $5.5/watt, which corresponds to a premium of approximately $17,000 for a 3,100 watt system. The research also shows that, as PV systems age, the premium enjoyed at the time of home sale decreases. Additionally, existing homes with PV systems are found to have commanded a larger sales price premium than new homes with similarly sized PV systems. Reasons for this discrepancy are suggested, yet further research is warranted in this area as well as a number of other areas that are highlighted.

  15. Papers of the 2. annual Canadian Institute conference on managing natural gas price volatility : effective risk strategies for turbulent times

    International Nuclear Information System (INIS)

    2002-01-01

    The issue of how natural gas price volatility is affecting future energy projects was the focus of this conference. Discussions focused on the dynamics of supply and demand of natural gas in North America and how end-users are responding to price fluctuations. Methods by which storage can be used as an effective risk management tool was also on the agenda. The hedging strategies that work best for leading energy firms were described. It was noted that price volatility can be reduced through improved market transparency. Discussions also focused on credit risk in a volatile price environment. A total of 17 papers were presented of which 3 were indexed separately for inclusion in the database. tabs., figs

  16. Estimating the commodity market price of risk for energy prices

    International Nuclear Information System (INIS)

    Kolos, Sergey P.; Ronn, Ehud I.

    2008-01-01

    The purpose of this paper is to estimate the ''market price of risk'' (MPR) for energy commodities, the ratio of expected return to standard deviation. The MPR sign determines whether energy forward prices are upward- or downward-biased predictors of expected spot prices. We estimate MPRs using spot and futures prices, while accounting for the Samuelson effect. We find long-term MPRs generally positive and short-term negative, consistent with positive energy betas and hedging, respectively. In spot electricity markets, MPRs in Day-Ahead Prices agree with short-dated futures. Our results relate risk premia to informed hedging decisions, and futures prices to forecast/expected prices. (author)

  17. Effects of Perceived Trust and Perceived Price on Customers’ Intention to Buy in Online Store in Indonesia

    Directory of Open Access Journals (Sweden)

    Ricky Setiawan

    2012-06-01

    Full Text Available Price and trust are important factors that influence customer purchasing decision in online shopping. However, the synergy of these two factors in customer intention to buy still needs to get higher attention. This paper examines the relative influence of perceived trust and perceived price on customers intention to buy, both for customers who have bought item from the store (repeat customers and who have not (potential customers, and examines whether a difference exists on the strength of influence of price and trust to purchase intention in those groups. Data are analyzed with the multiple group analysis structural equation modeling, comparing the repeat customers and potential customers. The results of this paper reveal that there is no significant difference of effect between perceived trust and perceived price on intention to buy between potential and repeat customers and that perceived trust exerts a stronger effect than perceived price on purchase intentions for both potential and repeat customers of an online vendor. This paper also reveals that while perceived trust exerts a positive influence, perceived price exerts a negative influence on both perceived value and intention to buy.

  18. Technology for Price Management in Industrial Differential Product Market

    Directory of Open Access Journals (Sweden)

    E. V. Orlova

    2015-01-01

    Full Text Available The article studies price behavior of oligopolies in industrial market where price competition is replaced by non-price competition. There is a developed technology for pricing management of the products of industrial enterprises, which, unlike the existing ones, takes into account the dynamics of changes in consumer preferences and changes in the pricing policy of the enterprise competitor and is based on usage of system dynamics models to simulate the financial and economic performance of enterprises and the fuzzy model for situational analysis and decisionmaking on changes in prices for the products. A pricing simulation model is offered. It is based on system-dynamic modeling method, which takes into account the complex cause-to-effect concatenation of factors on price such as product quality, cost, price competition, price elasticity of economic demand, competitors’ quantity of output and estimates the impact of changing factors of internal and external enterprise environment on the effectiveness of its activities.The simulation model allows us to conduct diverse experiments and analyze the impact of management decisions on the efficiency of the enterprise. Based on the fuzzy approach a price decision-making model is developed. It operates not only precise (numeric values, but also qualitative assessments of variables and provides an adequate use of logical relationships and the laws of the mutual influence of market and production and economic factors. Qualitative dependences, which establish the influence of external and internal factors on the price change, are identified as a result of the study of economic laws and legal conformity that are in the context of rapid economic change and market turbulence may not be strictly formalized and take the form of linguistic statements, which express the conditional relationship between the qualitative assessments of initial factors and changes in the relative price.

  19. Analysis of Right Issue Announcement Effect toward Stock Price Movement and Stock Trading Volume within Issuer in Indonesia Stock Exchange

    Directory of Open Access Journals (Sweden)

    Wilson Yaputra Yakup

    2016-05-01

    Full Text Available The purpose of this study were to identify and analyze the rights issue effect to the stock price, the effect of the rights issue on stock trading volume, the correlation between stock prices before and after the right issue, as well as the correlation between volume of trading activity before the right issue and after that event. The objects of the study are the companies listed on Indonesia Stock Exchange (JSX. The hypothesis stated that right issues have a significant effect on stock price on companies listed on the JSX, rights issues have a significant effect on the stock trading volume on companies listed on the JSX, there is a significant correlation between stock price before and after the rights issue on companies listed in JSX, there is a significant correlation between volume of the stock trading before the rights issue and after that event. Data analysis used were descriptive statistics, simple linear regression analysis and paired t-test. Hypothesis testing was performed by using the Pearson correlation test with significance level of 5%. The results show that the right issue has a positive effect but not significant toward stock prices of companies listed in JSX, right issue has a negative effect and not significant toward the trading volume activity (TVA on companies listed in JSX.

  20. The effects of residential real-time pricing contracts on transco loads, pricing, and profitability: Simulations using the N-ABLE trademark agent-based model

    International Nuclear Information System (INIS)

    Ehlen, Mark A.; Scholand, Andrew J.; Stamber, Kevin L.

    2007-01-01

    An agent-based model is constructed in which a demand aggregator sells both uniform-price and real-time price (RTP) contracts to households as means for adding price elasticity in residential power use sectors, particularly during peak-price hours of the day. Simulations suggest that RTP contracts help a demand aggregator (1) shift its long-term contracts toward off-peak hours, thereby reducing its cost of power and (2) increase its short-run profits if it is one of the first aggregators to have large numbers of RTP contracts; but (3) create susceptibilities to short-term market demand and price volatilities. (author)

  1. Working Paper - WP/12/08- Exchange Rate Pass-through to Import Prices, and Monetary Policy in South Africa

    OpenAIRE

    Janine Aron; Greg Farrell; John Muellbauer; Peter Sinclair

    2012-01-01

    Understanding how import prices adjust to exchange rates helps anticipate inflation effects and monetary policy responses. This paper examines exchange rate pass-through to the monthly import price index in South Africa during 1980–2009. Various short-run pass-through estimates are calculated simply without recourse to a full structural model, yet without neglecting the long-run relationships between prices or the effects of previous import price changes, and controlling for domestic and fore...

  2. Pharmaceutical strategic purchasing requirements in Iran: Price interventions and the related effective factors.

    Science.gov (United States)

    Bastani, Peivand; Dinarvand, Rasoul; SamadBeik, Mahnaz; Pourmohammadi, Kimia

    2016-01-01

    Pharmaceutical access for the poor is an essential factor in developing countries that can be improved through strategic purchasing. This study was conducted to identify the elements affecting price in order to enable insurance organizations to put strategic purchasing into practice. This was a qualitative study conducted through content analysis with an inductive approach applying a five-stage framework analysis (familiarization, identifying a thematic framework, indexing, mapping, and interpretation). Data analysis was started right after transcribing each interview applying ATLAS.ti. Data were saturated after 32 semi-structured interviews by experts. These key informants were selected purposefully and through snowball sampling. Findings showed that there are four main themes as Pharmaceutical Strategic Purchasing Requirements in Iran as follows essential and structural factors, international factors, economical factors, and legal factors. Moreover, totally 14 related sub-themes were extracted in this area as the main effective variables. It seems that paying adequate attention to the four present themes and 14 sub-themes affecting price can enable health system policy-makers of developing countries like Iran to make the best decisions through strategic purchasing of drugs by the main insurers in order to improve access and health in the country.

  3. The effects of oil price shocks in a new-Keynesian framework with capital accumulation

    International Nuclear Information System (INIS)

    Acurio Vásconez, Verónica; Giraud, Gaël; Mc Isaac, Florent; Pham, Ngoc-Sang

    2015-01-01

    The economic implications of oil price shocks have been extensively studied since the 1970s. Despite this huge literature, no dynamic stochastic general equilibrium model was available that captures two well-known stylized facts: (1) the stagflationary impact of an oil price shock, together with (2) the influence of the energy efficiency of capital on the depth and length of this impact. We build, estimate and simulate a New-Keynesian model with capital accumulation, which takes the case of an economy where oil is imported from abroad, and where these stylized facts can be accounted for. Moreover, the Bayesian estimation of the model on the US economy (1984–2007) suggests that the output elasticity of oil might have been above 10%, stressing the role of oil use in US growth at this time. Finally, our simulations confirm that an increase in energy efficiency significantly attenuates the effects of an oil shock—a possible explanation of why the third oil shock (1999–2008) did not have the same macro-economic impact as the first two ones. These results suggest that oil consumption and energy efficiency have been two major engines for US growth in the last three decades.

  4. Pharmaceutical strategic purchasing requirements in Iran: Price interventions and the related effective factors

    Science.gov (United States)

    Bastani, Peivand; Dinarvand, Rasoul; SamadBeik, Mahnaz; Pourmohammadi, Kimia

    2016-01-01

    Objective: Pharmaceutical access for the poor is an essential factor in developing countries that can be improved through strategic purchasing. This study was conducted to identify the elements affecting price in order to enable insurance organizations to put strategic purchasing into practice. Methods: This was a qualitative study conducted through content analysis with an inductive approach applying a five-stage framework analysis (familiarization, identifying a thematic framework, indexing, mapping, and interpretation). Data analysis was started right after transcribing each interview applying ATLAS.ti. Data were saturated after 32 semi-structured interviews by experts. These key informants were selected purposefully and through snowball sampling. Findings: Findings showed that there are four main themes as Pharmaceutical Strategic Purchasing Requirements in Iran as follows essential and structural factors, international factors, economical factors, and legal factors. Moreover, totally 14 related sub-themes were extracted in this area as the main effective variables. Conclusion: It seems that paying adequate attention to the four present themes and 14 sub-themes affecting price can enable health system policy-makers of developing countries like Iran to make the best decisions through strategic purchasing of drugs by the main insurers in order to improve access and health in the country. PMID:26985434

  5. Effect of price elasticity of demand in monopolies with gradient adjustment

    International Nuclear Information System (INIS)

    Cavalli, Fausto; Naimzada, Ahmad

    2015-01-01

    Highlights: •A monopoly with isoelastic demand function is studied. •Reduced rationality monopolist uses gradient adjustment. •If marginal cost is small, increasing elasticity leads to stable dynamics. •For large marginal cost, dynamic can be unstable for both small and large elasticity. -- Abstract: We study a monopolistic market characterized by a constant elasticity demand function, in which the firm technology is described by a linear total cost function. The firm is assumed to be boundedly rational and to follow a gradient rule to adjust the production level in order to optimize its profit. We focus on what happens on varying the price elasticity of demand, studying the effect on the equilibrium stability. We prove that, depending on the relation between the market size and the marginal cost, two different scenarios are possible, in which elasticity has either a stabilizing or a mixed stabilizing/destabilizing effect

  6. Regulation of Pharmaceutical Prices

    DEFF Research Database (Denmark)

    Kaiser, Ulrich; Méndez, Susan J.; Rønde, Thomas

    2014-01-01

    Reference prices constitute a main determinant of patient health care reimbursement in many countries. We study the effects of a change from an "external" (based on a basket of prices in other countries) to an "internal" (based on comparable domestic products) reference price system. We find...... that while our estimated consumer compensating variation is small, the reform led to substantial reductions in list and reference prices as well as co-payments, and to sizeable decreases in overall producer revenues, health care expenditures, and co-payments. These effects differ markedly between branded...

  7. Regulation of Pharmaceutical Prices

    DEFF Research Database (Denmark)

    Kaiser, Ulrich; Méndez, Susan J.; Rønde, Thomas

    Reference prices constitute a main determinant of patient health care reimbursement in many countries. We study the effects of a change from an "external" (based on a basket of prices in other countries) to an "internal" (based on comparable domestic products) reference price system. We find...... that while our estimated consumer compensating variation is small, the reform led to substantial reductions in list and reference prices as well as co-payments, and to sizeable decreases in overall producer revenues, health care expenditures, and co-payments. These effects differ markedly between branded...

  8. The Effect of Price on Surgeons' Choice of Implants: A Randomized Controlled Survey.

    Science.gov (United States)

    Wasterlain, Amy S; Melamed, Eitan; Bello, Ricardo; Karia, Raj; Capo, John T

    2017-08-01

    Surgical costs are under scrutiny and surgeons are being held increasingly responsible for cost containment. In some instances, implants are the largest component of total procedure cost, yet previous studies reveal that surgeons' knowledge of implant prices is poor. Our study aims to (1) understand drivers behind implant selection and (2) assess whether educating surgeons about implant costs affects implant selection. We surveyed 226 orthopedic surgeons across 6 continents. The survey presented 8 clinical cases of upper extremity fractures with history, radiographs, and implant options. Surgeons were randomized to receive either a version with each implant's average selling price ("price-aware" group), or a version without prices ("price-naïve" group). Surgeons selected a surgical implant and ranked factors affecting implant choice. Descriptive statistics and univariate, multivariable, and subgroup analyses were performed. For cases offering implants within the same class (eg, volar locking plates), price-awareness reduced implant cost by 9% to 11%. When offered different models of distal radius volar locking plates, 25% of price-naïve surgeons selected the most expensive plate compared with only 7% of price-aware surgeons. For cases offering different classes of implants (eg, plate vs external fixator), there was no difference in implant choice between price-aware and price-naïve surgeons. Familiarity with the implant was the most common reason for choosing an implant in both groups (35% vs 46%). Price-aware surgeons were more likely to rank cost as a factor (29% vs 21%). Price awareness significantly influences surgeons' choice of a specific model within the same implant class. Merely including prices with a list of implants leads surgeons to select less expensive implants. This implies that an untapped opportunity exists to reduce surgical expenditures simply by enhancing surgeons' cost awareness. Economic/Decision Analyses I. Copyright © 2017 American

  9. Transfer Pricing

    DEFF Research Database (Denmark)

    Nielsen, Søren Bo

    2014-01-01

    Against a background of rather mixed evidence about transfer pricing practices in multinational enterprises (MNEs) and varying attitudes on the part of tax authorities, this paper explores how multiple aims in transfer pricing can be pursued across four different transfer pricing regimes. A MNE h...

  10. Gold prices

    OpenAIRE

    Joseph G. Haubrich

    1998-01-01

    The price of gold commands attention because it serves as an indicator of general price stability or inflation. But gold is also a commodity, used in jewelry and by industry, so demand and supply affect its pricing and need to be considered when gold is a factor in monetary policy decisions.

  11. Exploring the core factors and its dynamic effects on oil price: An application on path analysis and BVAR-TVP model

    International Nuclear Information System (INIS)

    Chai Jian; Guo, Ju-E.; Meng Lei; Wang Shouyang

    2011-01-01

    As the uncertainty of oil price increases, impacts of the influential factors on oil price vary over time. It is of great importance to explore the core factors and its time-varying influence on oil price. In view of this, based on the PATH-ANALYSIS model, this paper obtains the core factors, builds an oil price system VAR model, which uses demand, supply, price, and inventory as endogenous variables, and China's net imports as well as dollar index as exogenous variables. Then we set up a BVAR-TVP (Time varying parameter) model to analyze dynamic impacts of core factors on oil price. The results show that: (1) oil prices became more sensitive to oil supply changes, and the influence delays became shorter; (2) the impact of oil inventories on oil prices with a time lag of two quarters but has a downward trend; (3) the impact of oil consumption on oil prices with a time lag of two quarters, and this effect is increasingly greater; (4) the US dollar index is always the important factor of oil price and its control power increases gradually, and the financial crisis (occurred in 2008) further strengthens the influence of US dollar. - Highlights: ► We build an oil price VAR model based on the PATH-ANALYSIS results. ► The dynamic effects of core factors on oil price was studied by BVAR-TVP model. ► Oil prices became more sensitive to oil supply changes. ► The effect of oil consumption on oil prices is increasingly greater. ► Financial crisis further strengthens the influence of US dollar on oil price.

  12. Pricing and performance in health maintenance organizations: a strategic management perspective.

    Science.gov (United States)

    Conant, J S; Mokwa, M P; Burnett, J J

    1989-03-01

    Innovative, consumer-oriented pricing strategies have contributed to the impressive growth of health maintenance organizations (HMOs). In a national study of HMO marketing directors, the relationships between strategic management style and (1) the relative importance of pricing in competitive marketing strategy, (2) the effectiveness of price strategy planning, and (3) financial performance are examined. The findings indicate that HMOs practicing effective price planning also perform well on an overall basis. Insight into the content and substance of HMO pricing strategies is also provided.

  13. Pricing Mining Concessions Based on Combined Multinomial Pricing Model

    Directory of Open Access Journals (Sweden)

    Chang Xiao

    2017-01-01

    Full Text Available A combined multinomial pricing model is proposed for pricing mining concession in which the annualized volatility of the price of mineral products follows a multinomial distribution. First, a combined multinomial pricing model is proposed which consists of binomial pricing models calculated according to different volatility values. Second, a method is provided to calculate the annualized volatility and the distribution. Third, the value of convenience yields is calculated based on the relationship between the futures price and the spot price. The notion of convenience yields is used to adjust our model as well. Based on an empirical study of a Chinese copper mine concession, we verify that our model is easy to use and better than the model with constant volatility when considering the changing annualized volatility of the price of the mineral product.

  14. The Asymmetric Effects of Oil Price Changes on the Economic Activities in Indonesia

    OpenAIRE

    Rina Juliet Artami; Yonosuke Hara

    2018-01-01

    This paper analyzes the asymmetric impact of oil price changes on the economic growth of and inflation in Indonesia by using the vector autoregression (VAR) model for the period from 1990Q1 to 2016Q4. The results show that the impact of oil price changes on the gross domestic product (GDP) is asymmetric, as a drop in oil prices decreases the GDP, whereas an increase in oil prices does not significantly affect GDP. It is crucial for Indonesia to reduce its dependency on oil, mainly as its prim...

  15. Welfare Effects of Tax and Price Changes and the CES-UT Utility Function

    DEFF Research Database (Denmark)

    Munk, Knud Jørgen

    Dixit's 1975 paper "Welfare Effects of Tax and Price Changes" constitutes a seminal contribution to the theory of tax reform within a second-best general equilibrium framework. The present paper clarifies ambiguities with respect to normalisation which has led to misinterpretation of some of Dixit......'s analytical results. It proves that a marginal tax reform starting from a proportional tax system will improve social welfare if it increases the supply of labour, whatever the rule of normalisation adopted. In models which impose additive separability between consumption and leisure in household preferences...... elasticities can be derived from the parameters of the CES-UT and how it may be used for applied tax reform analysis...

  16. Effects of a price increase on purchases of sugar sweetened beverages. Results from a randomized controlled trial.

    NARCIS (Netherlands)

    Waterlander, W.E.; Mhurchu, C.N.; Steenhuis, I.H.M.

    2014-01-01

    Sugar sweetened beverage (SSB) taxes are receiving increased political interest. However, there have been no experimental studies of the effects of price increases on SSBs or the effects on close substitutes such as diet drinks, alcohol or sugary snacks. Therefore, the aim of this study was to

  17. The effects of price competition and reduced subsidies for uncompensated care on hospital mortality.

    Science.gov (United States)

    Volpp, Kevin G M; Ketcham, Jonathan D; Epstein, Andrew J; Williams, Sankey V

    2005-08-01

    To determine whether hospital mortality rates changed in New Jersey after implementation of a law that changed hospital payment from a regulated system based on hospital cost to price competition with reduced subsidies for uncompensated care and whether changes in mortality rates were affected by hospital market conditions. State discharge data for New Jersey and New York from 1990 to 1996. Study Design. We used an interrupted time series design to compare risk-adjusted in-hospital mortality rates between states over time. We compared the effect sizes in markets with different levels of health maintenance organization penetration and hospital market concentration and tested the sensitivity of our results to different approaches to defining hospital markets. The study sample included all patients under age 65 admitted to New Jersey or New York hospitals with stroke, hip fracture, pneumonia, pulmonary embolism, congestive heart failure, hip fracture, or acute myocardial infarction (AMI). Mortality among patients in New Jersey improved less than in New York by 0.4 percentage points among the insured (p=.07) and 0.5 percentage points among the uninsured (p=.37). There was a relative increase in mortality for patients with AMI, congestive heart failure, and stroke, especially for uninsured patients with these conditions, but not for patients with the other four conditions we studied. Less competitive hospital markets were significantly associated with a relative decrease in mortality among insured patients. Market-based reforms may adversely affect mortality for some conditions but it appears the effects are not universal. Insured patients in less competitive markets fared better in the transition to price competition.

  18. Study the Effect of Value-Added of Services Sector on Forecasting of Electricity Demand in Services Sector due to Price Reform

    Directory of Open Access Journals (Sweden)

    Sayed Mahdi Mostafavi

    2016-07-01

    Full Text Available Electrical energy is as one of the important effective factors on economic growth and development. In recent decades, numerous studies in different countries to estimate and forecast electricity demand in different parts of the economy have been made. In this paper, using the method ARDL, estimation and forecasting of electricity demand in the services sector of Iran are determined for the time period from 1983 to 2012. Estimated equations show that the added value of the services sector and a significant positive impact on the demand for electricity in this sector. The price elasticity for services sector is smaller than 1 due to low electricity prices and subsidized electricity. Hence, electricity prices have little impact on the demand for electricity. The results of the estimate represents a long-term relationship between the variables in the services sector. In this paper, based on amendments to the law on subsidies and estimated values, anticipated electricity demand until the end of the fifth development plan was carried out. The results indicate an increase in power consumption in the services sector.

  19. Intensity of Price and Volatility Spillover Effects in Asia-Pacific Basin Equity Markets

    Directory of Open Access Journals (Sweden)

    Sazali Abidin

    2014-12-01

    Full Text Available This paper investigates the intensity of price and volatility spillover effects in five major stock markets within the Asia Pacific basin region with a particular emphasis in the spillover effects between Australia and China. VAR(5 model is used for measuring the return spillover while AR/VAR model with exogenous variables is employed for measuring the effects of same day returns on return spillover. .In modelling the volatility spillover, we employ AR/GARCH model which also incorporates the same day effects. Results of both return and volatility spillover provide evidence that there are significant spillover effects across different markets in the Asia-Pacific region and as well as between Australia and China. This study also provides support to the view that a market is most affected by other markets that opens/closes just before it. The main contribution of this paper is the confirmation of spillover effects between markets in the region, in particular, the interdependence between Australia and China which may have evolved only recently and thus have received relatively little research attention to date.

  20. The importance of peer effects, cigarette prices and tobacco control policies for youth smoking behavior.

    Science.gov (United States)

    Powell, Lisa M; Tauras, John A; Ross, Hana

    2005-09-01

    This paper expands the youth cigarette demand literature by undertaking an examination of the determinants of smoking among high school students incorporating the importance of peer effects and allowing cigarette prices (taxes) and tobacco control policies to have a direct effect and an indirect effect (via the peer effect) on smoking behavior. To control for the potential endogeneity of our school-based peer measure we implement a two-stage generalized least squares estimator for a dichotomous dependent variable and implement a series of diagnostic tests. The key finding is that peer effects play a significant role in youth smoking decisions: moving a high-school student from a school where no children smoke to a school where one quarter of the youths smoke is found to increase the probability that the youth smokes by about 14.5 percentage points. The results suggest that there is a potential for social multiplier effects with respect to any exogenous change in cigarette taxes or tobacco control policies.