Global Quality Management in Adjusting Prices

OpenAIRE

Bunta Levente Zoltán

2013-01-01

The following paper describes the basic principles of global quality management (T and the way that these influence pricing in a domain where due to the nature of the provided service, the provider who administers the network has a monopoly over the field.

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.

Does oil move equity prices? A global view

International Nuclear Information System (INIS)

Nandha, Mohan; Faff, Robert

2008-01-01

Many studies indicate that oil price shocks have an adverse effect on real output and, hence, an adverse effect on corporate profits where oil is used as a key input. The present study examines whether and to what extent the adverse effect of oil price shocks impacts stock market returns. To this end we, analyse 35 DataStream global industry indices for the period from April 1983 to September 2005. Our findings indicate that oil price rises have a negative impact on equity returns for all sectors except mining, and oil and gas industries. Generally, these results are consistent with economic theory and evidence provided by previous empirical studies. Little evidence of any asymmetry is detected in the oil price sensitivities. In light of our findings, we recommend that international portfolio investors consider hedging oil price risk. (author)

ACCOUNTING ASPECTS OF PRICING AND TRANSFER PRICING

OpenAIRE

TÜNDE VERES

2011-01-01

The pricing methods in practice need really complex view of the business situation and depend on the strategy and market position of a company. The structure of a price seems simple: cost plus margin. Both categories are special area in the management accounting. Information about the product costs, the allocation methodologies in cost accounting, the analyzing of revenue and different level of the margin needs information from accounting system. This paper analyzes the pricing methods from m...

Global strategies to reduce the price of antiretroviral medicines: evidence from transactional databases.

Science.gov (United States)

Waning, Brenda; Kaplan, Warren; King, Alexis C; Lawrence, Danielle A; Leufkens, Hubert G; Fox, Matthew P

2009-07-01

To estimate the impact of global strategies, such as pooled procurement arrangements, third-party price negotiation and differential pricing, on reducing the price of antiretrovirals (ARVs), which currently hinders universal access to HIV/AIDS treatment. We estimated the impact of global strategies to reduce ARV prices using data on 7253 procurement transactions (July 2002-October 2007) from databases hosted by WHO and the Global Fund to Fight AIDS, Tuberculosis and Malaria. For 19 of 24 ARV dosage forms, we detected no association between price and volume purchased. For the other five ARVs, high-volume purchases were 4-21% less expensive than medium- or low-volume purchases. Nine of 13 generic ARVs were priced 6-36% lower when purchased under the Clinton Foundation HIV/AIDS Initiative (CHAI). Fifteen of 18 branded ARVs were priced 23-498% higher for differentially priced purchases compared with non-CHAI generic purchases. However, two branded, differentially priced ARVs were priced 63% and 73% lower, respectively, than generic non-CHAI equivalents. Large purchase volumes did not necessarily result in lower ARV prices. Although current plans for pooled procurement will further increase purchase volumes, savings are uncertain and should be balanced against programmatic costs. Third-party negotiation by CHAI resulted in lower generic ARV prices. Generics were less expensive than differentially priced branded ARVs, except where little generic competition exists. Alternative strategies for reducing ARV prices, such as streamlining financial management systems, improving demand forecasting and removing barriers to generics, should be explored.

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.

GLOBAL FINANCIAL CRISIS AND AGRARIAN HOUSEHOLDS' INCOME, REMITTANCE AND PRICES IN RURAL NIGERIA AMID POLICY RESPONSES

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Mmaduabuchukwu Mkpado

2012-06-01

Full Text Available The recent global financial crisis affected almost all aspect of human life. This paper explored effects of the global financial crisis on farmers' income, remittance and prices of food staples and highlighted certain government policy responses. The study was conducted in Nigeria. Secondary data were used. Data were analyzed using descriptive statistics, equivalent variation and Shannon index analysis. Results showed the global financial crisis affected the agrarian households/sector in Nigeria. The increase in prices meant more nominal income to farmers but grossly reduced their welfare due to decrease in real income as result of high inflation trend. Recommendations include that government should continue to sustain agrarian programs aimed at helping poor farmers to increase their capacity in production to meet the growing demand and changes. In both cases, the disturbed age structure has a reverse effect on the movement of the population (the size of reproductive contingent, but also to all other structures of the population (the size of contingent employment, population, compulsory school contingent, contingent dependent population ratio. Rating natural conditions aimed at separation of homogenous territorial units with some degree of benefits and limitations types of economic development.

Global economic activity and crude oil prices. A cointegration analysis

International Nuclear Information System (INIS)

He, Yanan; Wang, Shouyang; Lai, Kin Keung

2010-01-01

This paper empirically investigates the cointegrating relationship between crude oil prices and global economic activity. The Kilian economic index is used as an indicator of global economic activity. Based on a supply-demand framework and the cointegration theory, we find that real futures prices of crude oil are cointegrated with the Kilian economic index and a trade weighted US dollar index, and crude oil prices are influenced significantly by fluctuations in the Kilian economic index through both long-run equilibrium conditions and short-run impacts. We also develop an empirically stable, data-coherent and single-equation error-correction model (ECM) which has sensible economic properties. Empirical results based on the ECM show that the adjustment implied by a permanent change in the Kilian economic index is a relatively drawn-out process. (author)

Mercurious Oil Index (MOI) : A new indicator for the global oil price

OpenAIRE

Leeuw, de, J.; Dorsman, A.B.; Nelissen, R.

2008-01-01

“The” price of oil does not exist. This paper describes the development of a (new) oil index, the Mercurious Oil Index (MOI). This index can be seen as an indicator for the global price of oil. We will discuss why this index is a reliable global price reference, and why it is superior to and more useful than the existing indices and/or benchmarks. Indices are very helpful instruments for the tracking and prediction of markets, to measure performance or sentiment and to form a solid basis on w...

Some global aspects regarding nuclear spent fuel management

International Nuclear Information System (INIS)

Ohai, Dumitru; Postoaca, Marius Marcel

2002-01-01

The globalization means the worldwide extension of certain aspects of social or economic processes, structural or environmental changes, or concerning working methodologies, technical activity, industrial production, etc. At present the emergence of global aspects is more frequently observed, being determined by the rapid development of computerized systems and of transfer of information, by the development of big transnational companies and due to the increasing international co-operation. Some of the manifested global aspects could be beneficial for the development of the human society, other could be not. It is necessary to perform an adequate analysis from this view point and to promote appropriate measures to enhance the positive global aspects and to mitigate the negative global aspects. These measures can have a good efficiency only if they are pursued at global level, but for this it is necessary to build an adequate international coordinating body, having the corresponding instruments for action. The global aspects identified in the field of nuclear power may be divided into two categories, namely: - related to the main features of nuclear power; - regarding the specific features of some subdivisions of the field, as for example, spent fuel management. In the paper both categories are discussed. The influence of the global aspects on the development of nuclear power and particularly on the back end activities of the fuel cycle, is also presented. At the same time, some possible actions for enhancing nuclear power development are proposed

GLOBAL TO DOMESTIC PRICE TRANSMISSION BETWEEN THE SEGMENTED CEREALS MARKETS: A STUDY OF AFGHAN RICE MARKETS

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Najibullah Hassanzoy

2015-10-01

Full Text Available This paper examines cointegration and the difference in the extent of price transmission, and speed of adjustment between global and domestic prices of high and low quality rice. Unit root tests, cointegration tests and error correction models are employed in the analysis. While there are no comparable studies in the literature, the findings of this study indicate that the dynamics of price transmission may be different between high and low quality rice markets. That is, the extent of price transmission appears to be larger for the global prices of low quality rice whereas the speed of adjustment to the long-run equilibrium may be faster for domestic prices of high quality rice. Moreover, a shock in the global prices of low quality rice may have a long-lasting effect on domestic prices of low quality rice as compared to their high quality counterparts affecting domestic prices of high quality rice.

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.

Global Phosphorus Fertilizer Market and National Policies: A Case Study Revisiting the 2008 Price Peak

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Nikolay Khabarov

2017-06-01

Full Text Available The commodity market super-cycle and food price crisis have been associated with rampant food insecurity and the Arab spring. A multitude of factors were identified as culprits for excessive volatility on the commodity markets. However, as it regards fertilizers, a clear attribution of market drivers explaining the emergence of extreme price events is still missing. In this paper, we provide a quantitative assessment of the price spike of the global phosphorus fertilizer market in 2008 focusing on diammonium phosphate (DAP. We find that fertilizer market policies in India, the largest global importer of phosphorus fertilizers and phosphate rock, turned out to be a major contributor to the global price spike. India doubled its import of P-fertilizer in 2008 at a time when prices doubled. The analysis of a wide set of factors pertinent to the 2008 price spike in phosphorus fertilizer market leads us to the discovery of a price spike magnification and triggering mechanisms. We find that the price spike was magnified on the one hand by protective trade measures of fertilizer suppliers leading to a 19% drop in global phosphate fertilizer export. On the other hand, the Indian fertilizer subsidy scheme led to farmers not adjusting their demand for fertilizer. The triggering mechanism appeared to be the Indian production outage of P-fertilizer resulting in the additional import demand for DAP in size of about 20% of annual global supply. The main conclusion is that these three factors have jointly caused the spike, underscoring the need for ex ante improvements in fertilizer market regulation on both national and international levels.

26 CFR 1.338-4 - Aggregate deemed sale price; various aspects of taxation of the deemed asset sale.

Science.gov (United States)

2010-04-01

... 26 Internal Revenue 4 2010-04-01 2010-04-01 false Aggregate deemed sale price; various aspects of taxation of the deemed asset sale. 1.338-4 Section 1.338-4 Internal Revenue INTERNAL REVENUE SERVICE... Aggregate deemed sale price; various aspects of taxation of the deemed asset sale. (a) Scope. This section...

Distributional impacts of the 2008 global food price spike in Vietnam

DEFF Research Database (Denmark)

McKay, Andy; Tarp, Finn

macro-data, this paper investigates how global price changes appear to have impacted on rural welfare in Vietnam during 2006-12. In this paper we study the case of rice in Vietnam, in the context of the 2008 food price spike. We analyse the responses of domestic producer and consumer prices, and discuss......Agriculture and food cultivation production remains a key sector in the Vietnamese economy in terms of productive activities, income generation, and national export earnings. Higher world market prices should therefore in principle have a beneficial impact on rural farmers. This is based however...... the policy actions taken by the government to help reduce the impact on consumers, as well as to continue to encourage production. We also look at the distributional impact of the resulting domestic price changes, using data from a specialist rural household survey to look at production response. Vietnam...

Global aspects of gauge anomalies

International Nuclear Information System (INIS)

Zhang, H.

1988-01-01

This dissertation discusses the global aspects of gauge anomalies in even dimensions. After a very brief description of local gauge anomalies, the possible global gauge anomalies for various gauge theories are discussed using homotopy theory. One of the main results obtained in a general formula for the SU(n - k) global gauge anomaly coefficient in arbitrary 2n dimensions. The result is expressed in terms of the James number of the Stiefel manifold SU(n + 1)/SU(n - k) and the generalized Dynkin indices. From this, the possibilities of SU(n), SU(n - 1), and SU(2) global gauge anomalies in arbitrary 2n dimensions have been determined. We have also determined the possibilities of global gauge anomalies for the gauge groups SP(2N) and SO(N) in certain general dimensions, as well as for the exceptional gauge groups in specific dimensions. Moreover, several general propositions are formulated and proved which are very useful in the study of global gauge anomalies

PROCESS OF GLOBAL SHOCKS TRANSMISSION TO DOMESTIC FOOD PRICE LEVEL: CASE OF BANGLADESH

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Fakir Azmal Huda

2014-04-01

Full Text Available The world experienced in dramatic price surge of food commodities since mid of 2007 to 2008. It was claimed that the crisis were being mainly for backdrop of global shocks in food and energy price. But how the shocks come to domestic market from external sources is a researchable phenomenon. Surprisingly few attempts have been made to systematically analysis of shock transmission from international to domestic market. The study analyzed the effect of global commodity market factors and domestic exchange rate development on domestic food price in Bangladesh. A bi-variants co-integration approach was applied for the analysis of shock transmission. Finally an error correction model was developed. The overall magnitudes of the pass through suggest that only 46 per cent of the total world shock pass-through in domestic economy.

The third oil price surge. What's different this time?

International Nuclear Information System (INIS)

Kesicki, Fabian

2010-01-01

The period from 2003 to 2008 was marked by an oil price increase comparable to the two oil price crises in the 1970s. This paper looks in detail at the situation of the oil price crises 30 years ago and compares them along various aspects on the demand and supply side with the recent price increase to identify similarities and differences. While both oil price crises in 1973 and 1979/1980 were ultimately caused by supply actions of members of the Organisation of Petroleum Exporting Countries (OPEC), all three oil price crises were preceded by high demand growth. Other aspects that favoured a high oil price in all three cases were low investments in new oil fields, as a consequence low spare capacity, and a weak US dollar. In addition, the recent oil price surge has been characterised by a high global refinery utilisation and refineries that did not adapt fast enough to the rising demand for lighter oil products. Moreover, broader geopolitical uncertainties, combined with risks associated with the oil trade helped push the oil price into a triple-digit zone. Speculation played only a limited and temporary role in accelerating price movements during the recent price increase. (author)

The pricing and procurement of antiretroviral drugs: an observational study of data from the Global Fund.

Science.gov (United States)

Vasan, Ashwin; Hoos, David; Mukherjee, Joia S; Farmer, Paul E; Rosenfield, Allan G; Perriëns, Joseph H

2006-05-01

The Purchase price report released in August 2004 by the Global Fund to Fight AIDS, Tuberculosis, and Malaria (Global Fund) was the first publication of a significant amount of real transaction purchase data for antiretrovirals (ARVs). We did an observational study of the ARV transaction data in the Purchase price report to examine the procurement behaviour of principal recipients of Global Fund grants in developing countries. We found that, with a few exceptions for specific products (e.g. lamivudine) and regions (e.g. eastern Europe), prices in low-income countries were broadly consistent or lower than the lowest differential prices quoted by the research and development sector of the pharmaceutical industry. In lower middle-income countries, prices were more varied and in several instances (lopinavir/ritonavir, didanosine, and zidovudine/lamivudine) were very high compared with the per capita income of the country. In all low- and lower middle-income countries, ARV prices were still significantly high given limited local purchasing power and economic strength, thus reaffirming the need for donor support to achieve rapid scale-up of antiretroviral therapy. However, the price of ARVs will have to decrease to render scale-up financially sustainable for donors and eventually for governments themselves. An important first step in reducing prices will be to make available in the public domain as much ARV transaction data as possible to provide a factual basis for discussions on pricing. The price of ARVs has considerable implications for the sustainability of human immunodeficiency virus/acquired immunodeficiency syndrome (HIV/AIDS) treatment in the developing world.

Distributions of carbon pricing on extraction, combustion and consumption of fossil fuels in the global supply-chain

Science.gov (United States)

Karstensen, Jonas; Peters, Glen

2018-01-01

Pricing carbon is one of the most important tools to reduce emissions and mitigate climate change. Already, about 40 nations have implemented explicit or implicit carbon prices, and a carbon price was explicitly stated as a mitigation strategy by many nations in their emission pledges submitted to the Paris Agreement. The coverage of carbon prices varies significantly between nations though, often only covering a subset of sectors in the economy. We investigate the propagation of carbon prices along the global supply-chain when the carbon price is applied at the point where carbon is removed from the ground (extraction), is combusted (production), or where goods and services are consumed (consumption). We consider both the regional and sectoral effects, and compare the carbon price income and costs relative to economic output. We find that implementation using different accounting systems makes a significant difference to revenues and increased expenditure, and that domestic and global trade plays a significant role in spreading the carbon price between sectors and countries. A few single sectors experience the largest relative price increases (especially electricity and transport), but most of the carbon price is ultimately paid by households for goods and services due to the large expenditure and indirect supply chain impacts. We finally show that a global carbon price will generate a larger share of revenue relative to GDP in non-OECD nations than OECD nations, independent on the point of implementation.

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

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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.

Energy prices will play an important role in determining global land use in the twenty first century

Science.gov (United States)

Steinbuks, Jevgenijs; Hertel, Thomas W.

2013-03-01

Global land use research to date has focused on quantifying uncertainty effects of three major drivers affecting competition for land: the uncertainty in energy and climate policies affecting competition between food and biofuels, the uncertainty of climate impacts on agriculture and forestry, and the uncertainty in the underlying technological progress driving efficiency of food, bioenergy and timber production. The market uncertainty in fossil fuel prices has received relatively less attention in the global land use literature. Petroleum and natural gas prices affect both the competitiveness of biofuels and the cost of nitrogen fertilizers. High prices put significant pressure on global land supply and greenhouse gas emissions from terrestrial systems, while low prices can moderate demands for cropland. The goal of this letter is to assess and compare the effects of these core uncertainties on the optimal profile for global land use and land-based GHG emissions over the coming century. The model that we develop integrates distinct strands of agronomic, biophysical and economic literature into a single, intertemporally consistent, analytical framework, at global scale. Our analysis accounts for the value of land-based services in the production of food, first- and second-generation biofuels, timber, forest carbon and biodiversity. We find that long-term uncertainty in energy prices dominates the climate impacts and climate policy uncertainties emphasized in prior research on global land use.

Energy prices will play an important role in determining global land use in the twenty first century

International Nuclear Information System (INIS)

Steinbuks, Jevgenijs; Hertel, Thomas W

2013-01-01

Global land use research to date has focused on quantifying uncertainty effects of three major drivers affecting competition for land: the uncertainty in energy and climate policies affecting competition between food and biofuels, the uncertainty of climate impacts on agriculture and forestry, and the uncertainty in the underlying technological progress driving efficiency of food, bioenergy and timber production. The market uncertainty in fossil fuel prices has received relatively less attention in the global land use literature. Petroleum and natural gas prices affect both the competitiveness of biofuels and the cost of nitrogen fertilizers. High prices put significant pressure on global land supply and greenhouse gas emissions from terrestrial systems, while low prices can moderate demands for cropland. The goal of this letter is to assess and compare the effects of these core uncertainties on the optimal profile for global land use and land-based GHG emissions over the coming century. The model that we develop integrates distinct strands of agronomic, biophysical and economic literature into a single, intertemporally consistent, analytical framework, at global scale. Our analysis accounts for the value of land-based services in the production of food, first- and second-generation biofuels, timber, forest carbon and biodiversity. We find that long-term uncertainty in energy prices dominates the climate impacts and climate policy uncertainties emphasized in prior research on global land use. (letter)

The influence of global benchmark oil prices on the regional oil spot market in multi-period evolution

International Nuclear Information System (INIS)

Jiang, Meihui; An, Haizhong; Jia, Xiaoliang; Sun, Xiaoqi

2017-01-01

Crude benchmark oil prices play a crucial role in energy policy and investment management. Previous research confined itself to studying the static, uncertain, short- or long-term relationship between global benchmark oil prices, ignoring the time-varying, quantitative, dynamic nature of the relationship during various stages of oil price volatility. This paper proposes a novel approach combining grey relation analysis, optimization wavelet analysis, and Bayesian network modeling to explore the multi-period evolution of the dynamic relationship between global benchmark oil prices and regional oil spot price. We analyze the evolution of the most significant decision-making risk periods, as well as the combined strategy-making reference oil prices and the corresponding periods during various stages of volatility. Furthermore, we determine that the network evolution of the quantitative lead/lag relationship between different influences of global benchmark oil prices shows a multi-period evolution phenomenon. For policy makers and market investors, our combined model can provide decision-making periods with the lowest expected risk and decision-making target reference oil prices and corresponding weights for strategy adjustment and market arbitrage. This study provides further information regarding period weights of target reference oil prices, facilitating efforts to perform multi-agent energy policy and intertemporal market arbitrage. - Highlights: • Multi-period evolution of the influence of different oil prices is discovered. • We combined grey relation analysis, optimization wavelet and Bayesian network. • The intensity of volatility, synchronization, and lead/lag effects are analyzed. • The target reference oil prices and corresponding period weights are determined.

MICROECONOMIC ASPECTS OF WATER PRICES

OpenAIRE

Goić, Srećko

2004-01-01

Water as a specific commodity, and water supply as a specific industry, represent a very interesting field for microeconomic analysis. Starting from the fact that in the market economy most of microeconomic categories and relations are turning around the price, this paper is attempting to give a comprehensive analysis of key microeconomic determinants of water prices. Establishing that the water market is a monopolistic one, relations between supply and demand have been analyzed, as well a...

Accurate market price formation model with both supply-demand and trend-following for global food prices providing policy recommendations.

Science.gov (United States)

Lagi, Marco; Bar-Yam, Yavni; Bertrand, Karla Z; Bar-Yam, Yaneer

2015-11-10

Recent increases in basic food prices are severely affecting vulnerable populations worldwide. Proposed causes such as shortages of grain due to adverse weather, increasing meat consumption in China and India, conversion of corn to ethanol in the United States, and investor speculation on commodity markets lead to widely differing implications for policy. A lack of clarity about which factors are responsible reinforces policy inaction. Here, for the first time to our knowledge, we construct a dynamic model that quantitatively agrees with food prices. The results show that the dominant causes of price increases are investor speculation and ethanol conversion. Models that just treat supply and demand are not consistent with the actual price dynamics. The two sharp peaks in 2007/2008 and 2010/2011 are specifically due to investor speculation, whereas an underlying upward trend is due to increasing demand from ethanol conversion. The model includes investor trend following as well as shifting between commodities, equities, and bonds to take advantage of increased expected returns. Claims that speculators cannot influence grain prices are shown to be invalid by direct analysis of price-setting practices of granaries. Both causes of price increase, speculative investment and ethanol conversion, are promoted by recent regulatory changes-deregulation of the commodity markets, and policies promoting the conversion of corn to ethanol. Rapid action is needed to reduce the impacts of the price increases on global hunger.

How to succeed with value-based pricing : A case study of how a Swedish OEM is working with price strategy in the context of globalization

OpenAIRE

HANNAH BJÖRK, HANNAH; FORSBERG, LINA

2015-01-01

In today’s world, change is faster than ever with rapid technological development and increasing global competition. The effects of globalization have led to more intense international competition when competitors originate from different parts of the world. Thanks to the use of new information technology, transparency has increased and made it possible for customers to compare products and prices between suppliers and prices in different markets and also buy cross-border. This puts pressure ...

Determinants of prices increase of agricultural commodities in a global context1

Directory of Open Access Journals (Sweden)

Borychowski Michał

2015-12-01

Full Text Available The main objective of this article is to present the determinants of increase in agricultural commodity prices after 2006. The other specific aim is to show the factors affecting agricultural raw materials and food prices in the global context. This article is a review paper of the determinants of recent commodity and food prices spikes. However, it provides an outlook on these determinants that were the most important for the increases in the last decade. The last part of the article (conclusions to some extent is a synthesis of considerations and includes the authors’ opinions concerning determinants and an attempt to identify which ones were the most important in the growth of agricultural commodity prices. These increases in agricultural commodity prices resulted from many factors and it is very difficult to separate the individual impact of each of them, because they occurred in parallel. However, it is possible to indicate several main reasons for these price increases, which are: adverse changes in supply-demand relations in agricultural markets, increases in oil prices (and increases of the volatility of those prices, development of biofuel production from agricultural commodities (the first generation biofuels, dollar depreciation, an increase in operations of a speculative nature on commodity markets and improper economic policy that created an environment for the growth of prices of agricultural products.

Pricing hospital care: Global budgets and marginal pricing strategies.

Science.gov (United States)

Sutherland, Jason M

2015-08-01

The Canadian province of British Columbia (BC) is adding financial incentives to increase the volume of surgeries provided by hospitals using a marginal pricing approach. The objective of this study is to calculate marginal costs of surgeries based on assumptions regarding hospitals' availability of labor and equipment. This study is based on observational clinical, administrative and financial data generated by hospitals. Hospital inpatient and outpatient discharge summaries from the province are linked with detailed activity-based costing information, stratified by assigned case mix categorizations. To reflect a range of operating constraints governing hospitals' ability to increase their volume of surgeries, a number of scenarios are proposed. Under these scenarios, estimated marginal costs are calculated and compared to prices being offered as incentives to hospitals. Existing data can be used to support alternative strategies for pricing hospital care. Prices for inpatient surgeries do not generate positive margins under a range of operating scenarios. Hip and knee surgeries generate surpluses for hospitals even under the most costly labor conditions and are expected to generate additional volume. In health systems that wish to fine-tune financial incentives, setting prices that create incentives for additional volume should reflect knowledge of hospitals' underlying cost structures. Possible implications of mis-pricing include no response to the incentives or uneven increases in supply. Copyright © 2015 The Authors. Published by Elsevier Ireland Ltd.. All rights reserved.

Measuring medicine prices in Peru: validation of key aspects of WHO/HAI survey methodology.

Science.gov (United States)

Madden, Jeanne M; Meza, Edson; Ewen, Margaret; Laing, Richard O; Stephens, Peter; Ross-Degnan, Dennis

2010-04-01

To assess the possibility of bias due to the limited target list and geographic sampling of the World Health Organization (WHO)/Health Action International (HAI) Medicine Prices and Availability survey used in more than 70 rapid sample surveys since 2001. A survey was conducted in Peru in 2005 using an expanded sample of medicine outlets, including remote areas. Comprehensive data were gathered on medicines in three therapeutic classes to assess the adequacy of WHO/HAI's target medicines list and the focus on only two product versions. WHO/HAI median retail prices were compared with average wholesale prices from global pharmaceutical sales data supplier IMS Health. No significant differences were found in overall availability or prices of target list medicines by retail location. The comprehensive survey of angiotensin-converting enzyme inhibitor, anti-diabetic, and anti-ulcer products revealed that some treatments not on the target list were costlier for patients and more likely to be unavailable, particularly in remote areas. WHO/HAI retail prices and IMS wholesale prices were strongly correlated for higher priced products, and weakly correlated for lower priced products (which had higher estimated retailer markups). The WHO/HAI survey approach strikes an appropriate balance between modest research costs and optimal information for policy. Focusing on commonly used medicines yields sufficient and valid results. Surveyors elsewhere should consider the limits of the survey data as well as any local circumstances, such as scarcity, that may call for extra field efforts.

Crude oil price shocks and stock returns. Evidence from Turkish stock market under global liquidity conditions

Energy Technology Data Exchange (ETDEWEB)

Berk, Istemi [Koeln Univ. (Germany). Energiewirtschaftliches Inst.; Aydogan, Berna [Izmir Univ. of Economics (Turkey). Dept. of International Trade and Finance

2012-09-15

The purpose of this study is to investigate the impacts of crude oil price variations on the Turkish stock market returns. We have employed vector autoregression (V AR) model using daily observations of Brent crude oil prices and Istanbul Stock Exchange National Index (ISE- 1 00) returns for the period between January 2, 1990 and November 1, 2011. We have also tested the relationship between oil prices and stock market returns under global liquidity conditions by incorporating a liquidity proxy variable, Chicago Board of Exchange's (CBOE) S and P 500 market volatility index (VIX), into the model. Variance decomposition test results suggest little empirical evidence that crude oil price shocks have been rationally evaluated in the Turkish stock market. Rather, it was global liquidity conditions that were found to account for the greatest amount of variation in stock market returns.

What Happens to Patterns of Food Consumption when Food Prices Change? Evidence from A Systematic Review and Meta-Analysis of Food Price Elasticities Globally.

Science.gov (United States)

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

2015-12-01

Recent years have seen considerable interest in examining the impact of food prices on food consumption and subsequent health consequences. Fiscal policies targeting the relative price of unhealthy foods are frequently put forward as ways to address the obesity epidemic. Conversely, various food subsidy interventions are used in attempts to reduce levels of under-nutrition. Information on price elasticities is essential for understanding how such changes in food prices affect food consumption. It is crucial to know not only own-price elasticities but also cross-price elasticities, as food substitution patterns may have significant implications for policy recommendations. While own-price elasticities are common in analyses of the impact of food price changes on health, cross-price effects, even though generally acknowledged, are much less frequently included in analyses, especially in the public health literature. This article systematically reviews the global evidence on cross-price elasticities and provides combined estimates for seven food groups in low-income, middle-income and high-income countries alongside previously estimated own-price elasticities. Changes in food prices had the largest own-price effects in low-income countries. Cross-price effects were more varied and depending on country income level were found to be reinforcing, undermining or alleviating own-price effects. Copyright © 2014 John Wiley & Sons, Ltd.

Value-based differential pricing: efficient prices for drugs in a global context.

Science.gov (United States)

Danzon, Patricia; Towse, Adrian; Mestre-Ferrandiz, Jorge

2015-03-01

This paper analyzes pharmaceutical pricing between and within countries to achieve second-best static and dynamic efficiency. We distinguish countries with and without universal insurance, because insurance undermines patients' price sensitivity, potentially leading to prices above second-best efficient levels. In countries with universal insurance, if each payer unilaterally sets an incremental cost-effectiveness ratio (ICER) threshold based on its citizens' willingness-to-pay for health; manufacturers price to that ICER threshold; and payers limit reimbursement to patients for whom a drug is cost-effective at that price and ICER, then the resulting price levels and use within each country and price differentials across countries are roughly consistent with second-best static and dynamic efficiency. These value-based prices are expected to differ cross-nationally with per capita income and be broadly consistent with Ramsey optimal prices. Countries without comprehensive insurance avoid its distorting effects on prices but also lack financial protection and affordability for the poor. Improving pricing efficiency in these self-pay countries includes improving regulation and consumer information about product quality and enabling firms to price discriminate within and between countries. © 2013 The Authors. Health Economics published by John Wiley & Sons Ltd.

Ex-vessel Fish Price Database: Disaggregating Prices for Low-Priced Species from Reduction Fisheries

Directory of Open Access Journals (Sweden)

Travis C. Tai

2017-11-01

Full Text Available Ex-vessel fish prices are essential for comprehensive fisheries management and socioeconomic analyses for fisheries science. In this paper, we reconstructed a global ex-vessel price database with the following areas of improvement: (1 compiling reported prices explicitly listed as “for reduction to fishmeal and fish oil” to estimate prices separately for catches destined for fishmeal and fish oil production, and other non-direct human consumption purposes; (2 including 95% confidence limit estimates for each price estimation; and (3 increasing the number of input data and the number of price estimates to match the reconstructed Sea Around Us catch database. Our primary focus was to address this first area of improvement as ex-vessel prices for catches destined for non-direct human consumption purposes were substantially overestimated, notably in countries with large reduction fisheries. For example in Peru, 2010 landed values were estimated as 3.8 billion real 2010 USD when using separate prices for reduction fisheries, compared with 5.8 billion using previous methods with only one price for all end-products. This update of the price database has significant global and country-specific impacts on fisheries price and landed value trends over time.

Can Equity Volatility Explain the Global Loan Pricing Puzzle?

OpenAIRE

Lewis Gaul; Pinar Uysal

2013-01-01

This paper examines whether unobservable differences in firm volatility are responsible for the global loan pricing puzzle, which is the observation that corporate loan interest rates appear to be lower in Europe than in the United States. We analyze whether equity volatility, an error prone measure of firm volatility, can explain this difference in loan spreads. We show that using equity volatility in OLS regressions will result in biased and inconsistent estimates of the difference in U.S. ...

The Pricing Evolution in the Air Transportation Industry. Implication for the Romanian Tourism Sector in the Era of Globalization

Directory of Open Access Journals (Sweden)

Andreea Marin-Pantelescu

2016-06-01

Full Text Available The globalization process involves the liberalization of the services and the air transportation industry is responsive to this reality. There is a developing tendency for global alliances and strategies in major airline companies. The globalization implies extending service networks in the whole world. Currently we are witnessing lower prices for domestic and foreign airline flights with benefits for the tourists’ business and leisure activities. The last minute offers and early booking prices provide a win-win situation, for the airline companies on one side and for the customers on the other side. The positive online reviews influence people buying decision because customers are more sensitive than ever to the services prices. Under this condition it is very interesting to see the evolution of pricing in the air transportation industry and the implication for the Romanian tourism sector.

Drug pricing and reimbursement information management: processes and decision making in the global economy.

Science.gov (United States)

Tsourougiannis, Dimitrios

2017-01-01

Background : Cost-containment initiatives are re-shaping the pharmaceutical business environment and affecting market access as well as pricing and reimbursement decisions. Effective price management procedures are too complex to accomplish manually. Prior to February 2013, price management within Astellas Pharma Europe Ltd was done manually using an Excel database. The system was labour intensive, slow to update, and prone to error. An innovative web-based pricing information management system was developed to address the shortcomings of the previous system. Development : A secure web-based system for submitting, reviewing and approving pricing requests was designed to: track all pricing applications and approval status; update approved pricing information automatically; provide fixed and customizable reports of pricing information; collect pricing and reimbursement rules from each country; validate pricing and reimbursement rules monthly. Several sequential phases of development emphasized planning, time schedules, target dates, budgets and implementation of the entire system. A test system was used to pilot the electronic (e)-pricing system with three affiliates (four users) in February 2013. Outcomes : The web-based system was introduced in March 2013, currently has about 227 active users globally and comprises more than 1000 presentations of 150 products. The overall benefits of switching from a manual to an e-pricing system were immediate and highly visible in terms of efficiency, transparency, reliability and compliance. Conclusions : The e-pricing system has improved the efficiency, reliability, compliance, transparency and ease of access to multinational drug pricing and approval information.

Speculation on commodities futures markets and destabilization of global food prices: exploring the connections.

Science.gov (United States)

Ghosh, Jayati; Heintz, James; Pollin, Robert

2012-01-01

In December 2010, the United Nations Food and Agriculture Organization's Food Price Index surpassed its previous peak of June 2008, and prices remained at this level through September 2011. This pattern is creating justified fears of a renewal or intensification of the global food crisis. This paper reviews arguments and evidence to inform debates on how to regulate commodity futures markets in the face of such price volatility and sustained high prices. We focus on the relationship between market liquidity and price patterns in asset markets in general and in commodities futures markets in particular, as well as the relationship between spot and futures market prices for food. We find strong evidence supporting the need to limit huge increases in trading volume on futures markets through regulations. We find that arguments opposing regulation are not supported. We find no support for the claim that liquidity in futures markets stabilizes prices at "fundamental" values or that spot market prices are free of any significant influence from futures markets. Given these results, the most appropriate position for regulators is precautionary: they should enact and enforce policies capable of effectively dampening excessive speculative trading on the commodities markets for food.

Mitigation potential and global health impacts from emissions pricing of food commodities

Science.gov (United States)

Springmann, Marco; Mason-D'Croz, Daniel; Robinson, Sherman; Wiebe, Keith; Godfray, H. Charles J.; Rayner, Mike; Scarborough, Peter

2017-01-01

The projected rise in food-related greenhouse gas emissions could seriously impede efforts to limit global warming to acceptable levels. Despite that, food production and consumption have long been excluded from climate policies, in part due to concerns about the potential impact on food security. Using a coupled agriculture and health modelling framework, we show that the global climate change mitigation potential of emissions pricing of food commodities could be substantial, and that levying greenhouse gas taxes on food commodities could, if appropriately designed, be a health-promoting climate policy in high-income countries, as well as in most low- and middle-income countries. Sparing food groups known to be beneficial for health from taxation, selectively compensating for income losses associated with tax-related price increases, and using a portion of tax revenues for health promotion are potential policy options that could help avert most of the negative health impacts experienced by vulnerable groups, whilst still promoting changes towards diets which are more environmentally sustainable.

Legal and policy foundations for global generic competition: Promoting affordable drug pricing in developing societies.

Science.gov (United States)

Zapatero Miguel, Pablo

2015-01-01

The so-called 'TRIPS flexibilities' restated in 2001 by the World Trade Organization's Doha Declaration on TRIPS and Public Health offer a variety of policy avenues for promoting global price-based competition for essential medicines, and thus for improving access to affordable medicines in the developing world. In recent years, developing countries and international organisations alike have begun to explore the potentialities of global generic markets and competition generally, and also of using compulsory licensing to remedy anti-competitive practices (e.g. excessive pricing) through TRIPS-compatible antitrust enforcement. These and other 'pro-competitive' TRIPS flexibilities currently available provide the critical leverage and policy space necessary to improve access to affordable medicines in the developing world.

Aspects of Price Discrimination in the Monopoly

Directory of Open Access Journals (Sweden)

Catalin Angelo Ioan

2012-06-01

Full Text Available The analysis allowed the determination in general of the consumer’s surplus or of the manufacturer’s surpluss in the case of monopoly and the determination of the allocative inefficiency in relation to the situation of perfect competition. Also, we broached the price discrimination of third order, analyzing, in terms of goods elasticities, the opportunity to separate prices in the conditions of differences existing between groups of firms.

Aspects of Price Discrimination in the Monopoly

OpenAIRE

Catalin Angelo Ioan; Gina Ioan

2012-01-01

The analysis allowed the determination in general of the consumer’s surplus or of the manufacturer’s surpluss in the case of monopoly and the determination of the allocative inefficiency in relation to the situation of perfect competition. Also, we broached the price discrimination of third order, analyzing, in terms of goods elasticities, the opportunity to separate prices in the conditions of differences existing between groups of firms.

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.)

[The aspects of pricing policy in Azerbaijan pharmaceutical sector].

Science.gov (United States)

Dzhalilova, K I; Alieva, K Ia

2012-01-01

The effect of macro-, middle- and microeconomic factors on price formation in Azerbaijan pharmaceutical market has been studied. Worldwide pharmaceutical leaders have the goals to become leader on the pharmaceutical market of Azerbaijan and maximize their market share. Non-leaders pharmaceutical companies use different strategies of price formation: prime cost plus markup, or price formation on the base of current prices. It was revealed that domestic pharmaceutical market has high demand elasticity. Future market development is related to stimulation of product development, and hard penetration to the market through realization of price formation strategy. Non-state pharmaceutical organizations to achieve the purpose of survive in conditions of high competition should take in to account the factor perceptions of assortment by customers.

Separated influence of crude oil prices on regional natural gas import prices

International Nuclear Information System (INIS)

Ji, Qiang; Geng, Jiang-Bo; Fan, Ying

2014-01-01

This paper analyses the impact of global economic activity and international crude oil prices on natural gas import prices in three major natural gas markets using the panel cointegration model. It also investigates the shock impacts of the volatility and the increase and decrease of oil prices on regional natural gas import prices. The results show that both global economic activity and international crude oil prices have significant long-term positive effects on regional natural gas import prices. The volatility of international crude oil prices has a negative impact on regional natural gas import prices. The shock impact is weak in North America, lags in Europe and is most significant in Asia, which is mainly determined by different regional policies for price formation. In addition, the response of natural gas import prices to increases and decreases in international crude oil prices shows an asymmetrical mechanism, of which the decrease impact is relatively stronger. - Highlights: • Impacts of world economy and oil prices on regional natural gas prices are analysed • North American natural gas prices are mainly affected by world economy • Asian and European natural gas prices are mainly affected by oil prices • The volatility of oil prices has a negative impact on regional natural gas prices • The response of natural gas import prices to oil prices up and down shows asymmetry

Enhancing medicine price transparency through price information mechanisms.

Science.gov (United States)

Hinsch, Michael; Kaddar, Miloud; Schmitt, Sarah

2014-05-08

Medicine price information mechanisms provide an essential tool to countries that seek a better understanding of product availability, market prices and price compositions of individual medicines. To be effective and contribute to cost savings, these mechanisms need to consider prices in their particular contexts when comparing between countries. This article discusses in what ways medicine price information mechanisms can contribute to increased price transparency and how this may affect access to medicines for developing countries. We used data collected during the course of a WHO project focusing on the development of a vaccine price and procurement information mechanism. The project collected information from six medicine price information mechanisms and interviewed data managers and technical experts on key aspects as well as observed market effects of these mechanisms.The reviewed mechanisms were broken down into categories including objective and target audience, as well as the sources, types and volumes of data included. Information provided by the mechanisms was reviewed according to data available on medicine prices, product characteristics, and procurement modalities. We found indications of positive effects on access to medicines resulting from the utilization of the reviewed mechanisms. These include the uptake of higher quality medicines, more favorable results from contract negotiations, changes in national pricing policies, and the decrease of prices in certain segments for countries participating in or deriving data from the various mechanisms. The reviewed mechanisms avoid the methodological challenges observed for medicine price comparisons that only use national price databases. They work with high quality data and display prices in the appropriate context of procurement modalities as well as the peculiarities of purchasing countries. Medicine price information mechanisms respond to the need for increased medicine price transparency and have the

Oil price, biofuels and food supply

International Nuclear Information System (INIS)

Timilsina, Govinda R.; Mevel, Simon; Shrestha, Ashish

2011-01-01

The price of oil could play a significant role in influencing the expansion of biofuels, but this issue has yet to be fully investigated in the literature. Using a global computable general equilibrium (CGE) model, this study analyzes the impact of oil price on biofuel expansion, and subsequently, on food supply. The study shows that a 65% increase in oil price in 2020 from the 2009 level would increase the global biofuel penetration to 5.4% in 2020 from 2.4% in 2009. If oil prices rise 150% from their 2009 levels by 2020, the resulting penetration of biofuels would be 9%, which is higher than that would be caused by current mandates and targets introduced in more than forty countries around the world. The study also shows that aggregate agricultural output drops due to an oil price increase, but the drop is small in major biofuel producing countries as the expansion of biofuels would partially offset the negative impacts of the oil price increase on agricultural outputs. An increase in oil price would reduce global food supply through direct impacts as well as through the diversion of food commodities and cropland towards the production of biofuels. - Highlights: ► A global CGE model to analyze impacts of oil price on biofuels and food supply. ► Global biofuel penetration increases from 2.4% (2009) to 5.4% (2020) in baseline. ► A 150% rise of oil price boosts biofuels more than current mandates and targets do. ► Biofuels partially offset drops in agricultural outputs caused by oil price rise. ► Biofuels as well as oil price rise negatively affect global food supply.

The impact of global oil price shocks on China’s bulk commodity markets and fundamental industries

International Nuclear Information System (INIS)

Zhang, Chuanguo; Chen, Xiaoqing

2014-01-01

This paper investigated the reaction of aggregate commodity market to oil price shocks and also explored the effects of oil price shocks on China's fundamental industries: metals, petrochemicals, grains and oilfats. We separated the volatilities of oil price into expected, unexpected and negatively expected categories to identify how oil prices influence bulk commodity markets. We contrasted the results between different periods and among classified indices, in order to discover the significant changes in recent years and the differences at an industry level. Our results indicate that the aggregate commodity market was affected by both expected and unexpected oil price volatilities in China. The impact of unexpected oil price volatilities became more complex after 2007. The metals and grains indices did not significantly respond to the expected volatility in oil prices, in contrast to the petrochemicals and oilfats indices. These results not only contribute to advancing the existing literature, but also merit particular attention from policy makers and market investors in China. - Highlights: • We investigated the impact of global oil price shocks on China’s bulk commodity markets and fundamental industries. • The aggregate commodity market was affected by both expected and unexpected oil price volatilities. • The impact of unexpected oil price volatilities became more complex after 2007. • The metals and grains indices did not significantly respond to the expected volatility in oil prices

Study of Volatility of New Ship Building Prices in LNG Shipping

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T. Bangar Raju

2016-12-01

Full Text Available The natural gas market has been expanding in size and has attracted particular attention across the global energy market. Although most natural gas transportation is carried out through pipelines, almost one third of it is done with the help of merchant vessels, capable of carrying liquefied natural gas. These LNG carriers have a special design and thus can be treated as a separate class of global fleet. New vessels are huge capital investments by vessel owning companies and just like other vessel classes; the new shipbuilding prices for the LNG segment continue to be a key aspect in the decision making of business players. Additionally these prices can be volatile as new ship building prices fluctuate with time. This paper attempts to analyse the volatility of new ship building prices of LNG carriers. For the study, the average ship building prices for all the LNG carriers having volume carrying capacity is between 160,000 – 173,000 cbm to be delivered between 2016 – 2019 were taken into account. For the analysis, GARCH and EGARCH methods were applied on the data set. The analysis concluded that there is a great deal of volatility in the new ship building prices of LNG vessels. It was also identified that negative shocks were more persistent the positive shocks.

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.

Dutch house price fundamentals

NARCIS (Netherlands)

Haffner, M.E.A.; de Vries, P.

2009-01-01

This paper discusses house price developments in the Netherlands, specifically focussing on the question whether current house prices in the Dutch owner-occupied market are likely to decrease. We analyse three aspects of the question based on a literature review: (1) whether there is a house price

Farmgate Private Standards and Price Premium: Evidence From the GlobalGAP Scheme in Kenya's French Beans Marketing

OpenAIRE

Kariuki, Isaac Maina; Loy, Jens-Peter; Herzfeld, Thomas

2012-01-01

The proliferation of private quality and assurance schemes in international trade is defining market access in high value chains. The prime concern for small-scale producers is whether price premiums are realizable due to compliance. Using French beans marketing, the authors find that GlobalGAP certification, produce traceability, number of suppliers, competition for supplies, direct procurement, a good road network, and supply contracts have positive farmgate price effects for smallholders. ...

World oil prices, precious metal prices and macroeconomy in Turkey

International Nuclear Information System (INIS)

Soytas, Ugur; Sari, Ramazan; Hammoudeh, Shawkat; Hacihasanoglu, Erk

2009-01-01

We examine the long- and short-run transmissions of information between the world oil price, Turkish interest rate, Turkish lira-US dollar exchange rate, and domestic spot gold and silver price. We find that the world oil price has no predictive power of the precious metal prices, the interest rate or the exchange rate market in Turkey. The results also show that the Turkish spot precious metals, exchange rate and bond markets do not also provide information that would help improve the forecasts of world oil prices in the long run. The findings suggest that domestic gold is also considered a safe haven in Turkey during devaluation of the Turkish lira, as it is globally. It is interesting to note that there does not seem to be any significant influence of developments in the world oil markets on Turkish markets in the short run either. However, transitory positive initial impacts of innovations in oil prices on gold and silver markets are observed. The short-run price transmissions between the world oil market and the Turkish precious metal markets have implications for policy makers in emerging markets and both local and global investors in the precious metals market and the oil market.

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.

Dynamics of global supply chain and electric power networks: Models, pricing analysis, and computations

Science.gov (United States)

Matsypura, Dmytro

In this dissertation, I develop a new theoretical framework for the modeling, pricing analysis, and computation of solutions to electric power supply chains with power generators, suppliers, transmission service providers, and the inclusion of consumer demands. In particular, I advocate the application of finite-dimensional variational inequality theory, projected dynamical systems theory, game theory, network theory, and other tools that have been recently proposed for the modeling and analysis of supply chain networks (cf. Nagurney (2006)) to electric power markets. This dissertation contributes to the extant literature on the modeling, analysis, and solution of supply chain networks, including global supply chains, in general, and electric power supply chains, in particular, in the following ways. It develops a theoretical framework for modeling, pricing analysis, and computation of electric power flows/transactions in electric power systems using the rationale for supply chain analysis. The models developed include both static and dynamic ones. The dissertation also adds a new dimension to the methodology of the theory of projected dynamical systems by proving that, irrespective of the speeds of adjustment, the equilibrium of the system remains the same. Finally, I include alternative fuel suppliers, along with their behavior into the supply chain modeling and analysis framework. This dissertation has strong practical implications. In an era in which technology and globalization, coupled with increasing risk and uncertainty, complicate electricity demand and supply within and between nations, the successful management of electric power systems and pricing become increasingly pressing topics with relevance not only for economic prosperity but also national security. This dissertation addresses such related topics by providing models, pricing tools, and algorithms for decentralized electric power supply chains. This dissertation is based heavily on the following

Global and local aspects of causality in quantum mechanics

Directory of Open Access Journals (Sweden)

Stoica Cristinel

2013-09-01

Full Text Available Quantum mechanics forces us to reconsider certain aspects of classical causality. The ‘central mystery’ of quantum mechanics manifests in different ways, depending on the interpretation. This mystery can be formulated as the possibility of selecting part of the initial conditions of the Universe ‘retroactively’. This talk aims to show that there is a global, timeless, ‘bird’s view’ of the spacetime, which makes this mystery more reasonable. We will review some well-known quantum effects from the perspective of global consistency.

75 FR 166 - Postal Product Price Changes

Science.gov (United States)

2010-01-04

... POSTAL REGULATORY COMMISSION [Docket No. CP2009-49; Order No. 371] Postal Product Price Changes...-filed Postal Service request to change prices for a Global Plus 2 contract. This notice provides an...: On December 21, 2009, the Postal Service filed a notice that prices for the Global Plus 2 contract at...

The Shuttle Cost and Price model

Science.gov (United States)

Leary, Katherine; Stone, Barbara

1983-01-01

The Shuttle Cost and Price (SCP) model was developed as a tool to assist in evaluating major aspects of Shuttle operations that have direct and indirect economic consequences. It incorporates the major aspects of NASA Pricing Policy and corresponds to the NASA definition of STS operating costs. An overview of the SCP model is presented and the cost model portion of SCP is described in detail. Selected recent applications of the SCP model to NASA Pricing Policy issues are presented.

The Influence of the Internet on globalization process

Directory of Open Access Journals (Sweden)

Artur Borcuch

2012-06-01

Full Text Available We are being influenced by the rush of economic and social forces. Internet is perhaps the most visible aspect of globalization and in many ways its driving force. The process of globalization can be understood as the global reach of communications technology and capital movements. The globalization of financial markets means that the movement of exchange rates, interest rates, and stock prices in various countries are intimately interconnected. From the social point of view, globalization is changing the nature of global social relations. The aim of this article is to demonstrate (in a few examples, how does Internet affect the process of globalization?

A cross-country study of cigarette prices and affordability: evidence from the Global Adult Tobacco Survey.

Science.gov (United States)

Kostova, Deliana; Chaloupka, Frank J; Yurekli, Ayda; Ross, Hana; Cherukupalli, Rajeev; Andes, Linda; Asma, Samira

2014-01-01

To describe the characteristics of two primary determinants of cigarette consumption: cigarette affordability and the range of prices paid for cigarettes (and bidis, where applicable) in a set of 15 countries. From this cross-country comparison, identify places where opportunities may exist for reducing consumption through tax adjustments. Self-response data from 45,838 smokers from 15 countries, obtained from the Global Adult Tobacco Survey (GATS) 2008-2011. Using self-response data on individual cigarette expenditure and consumption, we construct a measure of the average cigarette price smokers pay for manufactured cigarettes (and bidis, where applicable) in 15 countries. We use these prices to evaluate cigarette affordability and the range of prices available in each country. These survey-derived measures of cigarette price and affordability are uniquely suited for cross-country comparison because they represent each country's distinctive mix of individual consumption characteristics such as brand choice, intensity of consumption, and purchasing behavior. In this sample of countries, cigarettes are most affordable in Russia, which has the most room for tobacco tax increase. Affordability is also relatively high in Brazil and China for cigarettes, and in India and Bangladesh for bidis. Although the affordability of cigarettes in India is relatively low, the range of cigarette prices paid is relatively high, providing additional evidence to support the call for simplifying the existing tax structure and reducing the width of price options. China has both high affordability and wide price ranges, suggesting multiple opportunities for reducing consumption through tax adjustments.

Structural analysis of a ship on global aspect using ANSYS

Science.gov (United States)

Rahman, M. Muzibur; Kamol, Rajia Sultana; Islam, Reyana

2017-12-01

Ship is a complex geometry which undergoes a combination of loadings such as hydrostatic, hydrodynamic, wind, wave etc. at sea and thus adequate strength in a ship has always been one of the most challenging tasks for the ship designers. International Maritime Organization (IMO) and classification societies are providing the standards to ensure the adequacy of strength for the ship against all demands throughout its service life. Thus, structural analysis is needed to assess the overall strength of hull, and the means in this regard are based on finite element method which may be applied either local or global aspect of the ship. This paper is an attempt to carry out the structural analysis of a ship in global aspect using ANSYS software to locate the most stress concentration and deformed area, which will have ultimate effect on fatigue fracture.

Measuring global gasoline and diesel price and income elasticities

International Nuclear Information System (INIS)

Dahl, Carol A.

2012-01-01

Price and income elasticities of transport fuel demand have numerous applications. They help forecast increases in fuel consumption as countries get richer, they help develop appropriate tax policies to curtail consumption, help determine how the transport fuel mix might evolve, and show the price response to a fuel disruption. Given their usefulness, it is understandable why hundreds of studies have focused on measuring such elasticities for gasoline and diesel fuel consumption. In this paper, I focus my attention on price and income elasticities in the existing studies to see what can be learned from them. I summarize the elasticities from these historical studies. I use statistical analysis to investigate whether income and price elasticities seem to be constant across countries with different incomes and prices. Although income and price elasticities for gasoline and diesel fuel are not found to be the same at high and low incomes and at high and low prices, patterns emerge that allow me to develop suggested price and income elasticities for gasoline and diesel demand for over one hundred countries. I adjust these elasticities for recent fuel mix policies, and suggest an agenda of future research topics. - Research highlights: ► Surveyed econometric studies of transport fuel demand. ► Developed price elasticities of demand for gasoline and diesel fuel for 120 countries. ► Developed income elasticities of demand for gasoline and diesel fuel for 120 countries. ► Suggested a research agenda for future work.

A Reconsideration of Full-Cost Pricing

OpenAIRE

Nubbemeyer, Elmar

2010-01-01

The wide use of full-cost pricing techniques remains an explanandum in both economics and management accounting theory. This work surveys and develops possible theoretical explanations of this industrial pricing behaviour and analyses some of its implications. By recognition of the widespread use of imperfect cost-plus pricing heuristics, observable pricing behaviour, as well as empirical market-level phenomena, can be explained. Furthermore, methodological aspects of marginalist price the...

On the global economic potentials and marginal costs of non-renewable resources and the price of energy commodities

International Nuclear Information System (INIS)

Mercure, Jean-François; Salas, Pablo

2013-01-01

A model is presented in this work for simulating endogenously the evolution of the marginal costs of production of energy carriers from non-renewable resources, their consumption, depletion pathways and timescales. Such marginal costs can be used to simulate the long term average price formation of energy commodities. Drawing on previous work where a global database of energy resource economic potentials was constructed, this work uses cost distributions of non-renewable resources in order to evaluate global flows of energy commodities. A mathematical framework is given to calculate endogenous flows of energy resources given an exogenous commodity price path. This framework can be used in reverse in order to calculate an endogenous marginal cost of production of energy carriers given an exogenous carrier demand. Using rigid price inelastic assumptions independent of the economy, these two approaches generate limiting scenarios that depict extreme use of natural resources. This is useful to characterise the current state and possible uses of remaining non-renewable resources such as fossil fuels and natural uranium. The theory is however designed for use within economic or technology models that allow technology substitutions. In this work, it is implemented in the global power sector model FTT:Power. Policy implications are given. - Highlights: • Theoretical model to forecast marginal costs of non-renewable resources. • Tracks the consumption and costs of non-renewable resources. • For use in economic or technology models

Will India set the price for teleradiology?

Science.gov (United States)

McLean, Thomas R

2009-06-01

With a lower cost for labour, Indian teleradiologists have an absolute price advantage in the global market. However, because trade is determined by comparative advantage rather than absolute price advantage, India's ability to export teleradiology services may be limited. The issue is, can the 'India price' for teleradiology set the price for these services in the USA? Review of the economic literature concerning the global teleradiology market. Currently, minimal information exists concerning the economic of global teleradiology market. However, a Ricardian analysis of this market suggests that India's ability to export teleradiology may be limited by rising opportunity costs (i.e. social unrest). Similarly, Heckscher-Ohlin analysis suggests that a lack of English-speaking physicians will limit India's ability to export teleradiology services to the USA. It appears unlikely that India will gain sufficient market share in the USA to determine the price of teleradiology services.

Aspects of Price Competitiveness in the Context of Preparing for Accession to the Euro Zone. New Challenges for Entrepreneurs. Romania’s Case

Directory of Open Access Journals (Sweden)

Lucian Claudiu ANGHEL

2014-12-01

Full Text Available In the process of preparing a state for the accession to the Euro Zone it is essential to analyze the price competitiveness of that state’s economy and the challenges that entrepreneurs will have to face in the new economic environment. In the present paper the authors want to capture some aspects of the competitiveness of the Romanian economy and implicit its entrepreneurs with emphasis on price competitiveness, whereas accession to the Euro Zone implies giving up to the independence of exchange rate policy, with a huge impact on price competitiveness. For this purpose this study will highlight a few elements on the relative importance of price competitiveness of entrepreneurs’ exports performance. The process of accessing Euro Zone creates significant changes in the existing way of conducting business and impacts significantly entire business environment – and this will become evident also for Romania.

How Do Companies Use the Price Strategies

Institute of Scientific and Technical Information of China (English)

赵亚男; 赵翠玲

2011-01-01

@@ 1 .Introduction With the development of the globalization, companies face many challenges.Pricing strategy is a part of their marketing efforts.Price is the only element in the marketing mix that produces revenues; all other elements re present cost.So pricing and price competition is the number-one problem facing many marketing executives.To select an initial price, companies should using pricing

Determinants of Price Stabilization in IPOs

Directory of Open Access Journals (Sweden)

Antonio Gledson de Carvalho

2010-12-01

Full Text Available In the most common mechanism for price stabilization in IPOs, the underwriter distributes stocks in excess of what was contracted (overallotment and eventually covers this short naked position by purchasing stocks in the secondary market (Aftermarket short covering , ASC. This mechanism can be used to avoid price drop or price volatility. This article provides a description of such activity in Brazil. We investigate the determinants of price stabilization in three aspects: amount overallotted, occurrence of ASC and its intensity. Our results indicate that price stabilization is an important activity in Brazilian IPOs and quite similar to that occurring in the US. The three different aspects of price stabilization have different determinants. The amount overallotted depends only on the ex-ante demand conditions. ASC occurs mostly on IPOs characterized by high risk, low ex-ante demand and carried by reputable underwriters. The intensity of the ASC increases with the riskiness and decreases with the ex-ante demand. None of the existing models fully explain these results.

Uncertain long-run emissions targets, CO2 price and global energy transition. A general equilibrium approach

International Nuclear Information System (INIS)

Durand-Lasserve, Olivier; Smeers, Yves; Pierru, Axel

2010-01-01

The persistent uncertainty about mid-century CO 2 emissions targets is likely to affect not only the technological choices that energy-producing firms will make in the future but also their current investment decisions. We illustrate this effect on CO 2 price and global energy transition within a MERGE-type general-equilibrium model framework, by considering simple stochastic CO 2 policy scenarios. In these scenarios, economic agents know that credible long-run CO 2 emissions targets will be set in 2020, with two possible outcomes: either a hard cap or a soft cap. Each scenario is characterized by the relative probabilities of both possible caps. We derive consistent stochastic trajectories - with two branches after 2020 - for prices and quantities of energy commodities and CO 2 emissions permits. The impact of uncertain long-run CO 2 emissions targets on prices and technological trajectories is discussed. In addition, a simple marginal approach allows us to analyze the Hotelling rule with risk premia observed for certain scenarios. (author)

TRANSFER PRICING AS A SYSTEM-FACTOR

Directory of Open Access Journals (Sweden)

L. M. Guisin

2011-01-01

Full Text Available It is proposed that transfer pricing plays a system-building role for multi-profile commercial banks of today. Bank transfer pricing system properties are outlined. Examples of practical implementation of the transfer pricing to bank activities are brought about. Impact of transferprices on key aspects of the bank management and control system is discussed.

THEORETICAL AND IDEOLOGICAL ASPECTS OF THE GLOBAL WARMING DISCOURSE

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Lucas Moreira Sales de Oliveira

2016-12-01

Full Text Available The global warming derived from human activities issue takes account today of a considerable part of individual and public attention in the political, economic, social and environmental scenario. The theoretical and ideological aspects of the environmental discourses involved are however often ignored. This paper aims to bring to light without attempting to exhaust the discussion on this subject (the ideology that involves interpretations of global climate change. To reach the objective it will be used de theoretical framework of ideology developed by Göhan Therborn (1991 applied to Six Degrees book by Mark Lynas (2009 and An inconvenient truth documentary by Al Gore (2006 analysis. Both works served as an example for the characterization of the point of view that blames human activities for global warming as ideological and how this ideology interpellates the individuals, in order to submit and qualify them.

Carbon Pricing: Design, Experiences and Issues

DEFF Research Database (Denmark)

Carbon Pricing reflects upon and further develops the ongoing and worthwhile global debate into how to design carbon pricing, and how to utilize the financial proceeds in the best possible way for society. The world has recently witnessed a significant downward adjustment in fossil fuel prices...

Review of uranium market price

International Nuclear Information System (INIS)

Maragatham Kumar; Nik Arlina Nik Ali; Koh You Beng

2007-01-01

Uranium is used as an abundant source of concentrated energy and is the principal fuel for the generation of electricity by nuclear reactors. In nuclear reactors, the uranium fuel is assembled in such a way that a controlled fission chain reaction can be achieved. Since uranium is the main source of nuclear energy, demand prospects for uranium has increased dramatically with the renewed global interest in nuclear power generation in recent years. Although the global uranium market is relatively small worldwide, compared to other mineral and energy sources, it is a very important market as nuclear power generation accounts for about 18% of global electricity supply. After reaching historic lows in 1990s, uranium prices have risen substantially in recent years. The outlook for nuclear power has changed since 2000, with concerns over global warming, proven excellent safety record, competitive costs, progress on nuclear waste disposal issues and also continuing new nuclear plant construction around the world. These and various other influencing factors have resulted in the uranium market evolving from one that was driven by excess secondary supplies to that by primary production. This paper reviews the global market prices for the years 1987 until 2006 and the factors, which influence the changes in global uranium market prices. (Author)

Oil transformation sector modelling: price interactions

International Nuclear Information System (INIS)

Maurer, A.

1992-01-01

A global oil and oil product prices evolution model is proposed that covers the transformation sector incidence and the final user price establishment together with price interactions between gaseous and liquid hydrocarbons. High disparities among oil product prices in the various consumer zones (North America, Western Europe, Japan) are well described and compared with the low differences between oil supply prices in these zones. Final user price fluctuations are shown to be induced by transformation differences and competition; natural gas market is also modelled

Space-time modeling of timber prices

Science.gov (United States)

Mo Zhou; Joseph Buongriorno

2006-01-01

A space-time econometric model was developed for pine sawtimber timber prices of 21 geographically contiguous regions in the southern United States. The correlations between prices in neighboring regions helped predict future prices. The impulse response analysis showed that although southern pine sawtimber markets were not globally integrated, local supply and demand...

Policy on energy pricing

Energy Technology Data Exchange (ETDEWEB)

Webb, M. G.

1977-10-15

Some economic principles of energy pricing in a market type economy in which there is consumer sovereignty are discussed. Thus resources will be allocated via the production processes in line with the preferences of consumers as revealed by their purchases of goods and services. Prices play the crucial role of coordinating instruments in this allocative process. It is assumed that all the energy industries are in the public sector. The following topics are discussed: the specification of objectives for the energy sector; marginal cost pricing; problems associated with the measurement of marginal costs; some aspects of the environmental costs associated with energy production and use, and some issues related to time differentiated tariffs; the modification of prices to achieve financial targets; and the use of energy prices to achieve income distribution objectives.

Supply disruptions and regional price effects in a spatial oligopoly. An application to the global gas market

International Nuclear Information System (INIS)

Growitsch, Christian; Hecking, Harald; Panke, Timo

2013-01-01

Supply shocks in the global gas market may affect countries differently, as the market is regionally interlinked but not perfectly integrated. Additionally, high supply-side concentration may expose countries to market power in different ways. To evaluate the strategic position of importing countries with regard to gas supplies, we disentangle import price components into increasing and decreasing factors. Due to the complexity of the interrelations in the global gas market, we use an equilibrium model programmed as a mixed complementarity problem (MCP) and simulate the blockage of LNG ows through the Strait of Hormuz. This enables us to account for the oligopolistic nature and the asymmetry of the gas supply. We find that Japan faces the most severe price increases, as the Japanese gas demand completely relies on LNG supply. In contrast, European countries such as the UK benefit from good interconnection to the continental pipeline system and domestic pricetaking production, both of which help to mitigate an increase in physical costs of supply as well as in the exercise of market power.

Price setting in turbulent times

DEFF Research Database (Denmark)

Ólafsson, Tjörvi; Pétursdóttir, Ásgerdur; Vignisdóttir, Karen Á.

This price setting survey among Icelandic firms aims to make two contributions to the literature. First, it studies price setting in an advanced economy within a more turbulent macroeconomic environment than has previously been done. The results indicate that price adjustments are to a larger...... extent driven by exchange rate fluctuations than in most other advanced countries. The median Icelandic firm reviews its prices every four months and changes them every six months. The main sources of price rigidity and the most commonly used price setting methods are the same as in most other countries....... A second contribution to the literature is our analysis of the nexus between price setting and exchange rate movements, a topic that has attracted surprisingly limited attention in this survey-based literature. A novel aspect of our approach is to base our analysis on a categorisation of firms...

Oil price shocks and economy: an open question

International Nuclear Information System (INIS)

Di Marzio, G.

2006-01-01

During the 1970s and 1980s advanced oil importing economies faced the adverse effects of oil supply disruptions with abrupt energy price rise, followed by sensible business cycle inversions and stagflation. The negative effects of the sharp energy price increase were amplified by factors such the induced costly resources reallocation between labour and capital, and between sectors of activity; rising uncertainty discouraging investments, and income redistribution consequences on aggregate demands After a shock the economic system generally adjusts in favour of less energy intensive industries; this leads pauses in production as part of the existing capital stock become obsolete, and causes resources under utilization. Since the 1970s a number of economists have been sceptical about why even large price shocks in a resource that accounts for less than 3-4 pct. of global GDP could cause losses of magnitude as those experienced in most advanced economies. They believe that monetary policy has played a role in generating the observed negative correlation between oil prices and economic activity, and question whether the post-oil-shock recessions were attributable to the oil price shocks themselves or to the monetary policy responding to these shocks. Empirical research largely shows a primary responsibility of large price shocks and major oil-supply disruptions on recessionary movements of GDP. Energy prices have risen sharply since 2003, driven by strengthening global demand; market fundamentals suggest that a considerable fraction of recent hikes will be permanent and current price levels remain credible. With limited spare capacity, the medium term oil supply-demand balance is expected to remain tight, and the price probably near current levels. Today' s high oil prices reflect the effects of sustained energy demand trends and, jointly, oil industry under investment during and after the low price era of the 1990s. The apparent moderate macro economic effects of the

Natural gas pricing policies in Southeast Asia

International Nuclear Information System (INIS)

Pacudan, R.B.

1998-01-01

The very dynamic economies of Southeast Asia have recently been experiencing a rapid increase in energy demand. Parallel to this development, there has been an increase in the utilization of indigenous natural gas resources. This article reviews gas-pricing policies in the region, which partly explain the rise in gas utilization. Although diverse, energy pricing policies in Southeast Asia address the common objective of enhancing domestic gas production and utilization. The article concludes that a more rational gas-pricing policy framework is emerging in the region. In global terms, gas pricing in the region tends to converge in a market-related framework, despite the many different pricing objectives of individual countries, and the predominance of non-economic pricing objectives in certain countries (especially gas-rich nations). Specifically, governments have been flexible enough to follow global trends and initiate changes in contractual agreements (pricing and profit-sharing), giving oil companies more favourable terms, and encouraging continued private investment in gas development. At the same time, promotional pricing has also been used to increase utilization of gas, through set prices and adjusted taxes achieving a lower price level compared to substitute fuels. For an efficient gas-pricing mechanism, refinements in the pricing framework should be undertaken, as demand for gas approaches existing and/or forecast production capacities. (author)

The impact of energy price shocks on the UK economy

International Nuclear Information System (INIS)

2007-01-01

This report describes the results of six scenarios considering the impact of energy price shocks on the UK economy. The six scenarios considered are: UK aggregate energy price scenario; pan-Europe aggregate energy price; global aggregate energy price; UK temporary gas price; UK permanent gas price; crude (Brent) oil price. As expected, shocks to aggregate energy prices cause the largest macroeconomic and energy demand effects (in terms of growth rate volatility). Shocks to gas prices produce a greater growth volatility for macroeconomic and energy demand than shocks to oil prices. In general terms, shocks specific to the UK market tend to produce more growth rate volatility than wider ranging price shocks (global or pan-European). All of the price shocks considered have a recursive effect on the main indicators, which tend to stabilise around the baseline level in the long run. The report summarises the results obtained in the different scenarios

Gold mining in the Peruvian Amazon: global prices, deforestation, and mercury imports.

Directory of Open Access Journals (Sweden)

Jennifer J Swenson

Full Text Available Many factors such as poverty, ineffective institutions and environmental regulations may prevent developing countries from managing how natural resources are extracted to meet a strong market demand. Extraction for some resources has reached such proportions that evidence is measurable from space. We present recent evidence of the global demand for a single commodity and the ecosystem destruction resulting from commodity extraction, recorded by satellites for one of the most biodiverse areas of the world. We find that since 2003, recent mining deforestation in Madre de Dios, Peru is increasing nonlinearly alongside a constant annual rate of increase in international gold price (∼18%/yr. We detect that the new pattern of mining deforestation (1915 ha/year, 2006-2009 is outpacing that of nearby settlement deforestation. We show that gold price is linked with exponential increases in Peruvian national mercury imports over time (R(2 = 0.93, p = 0.04, 2003-2009. Given the past rates of increase we predict that mercury imports may more than double for 2011 (∼500 t/year. Virtually all of Peru's mercury imports are used in artisanal gold mining. Much of the mining increase is unregulated/artisanal in nature, lacking environmental impact analysis or miner education. As a result, large quantities of mercury are being released into the atmosphere, sediments and waterways. Other developing countries endowed with gold deposits are likely experiencing similar environmental destruction in response to recent record high gold prices. The increasing availability of satellite imagery ought to evoke further studies linking economic variables with land use and cover changes on the ground.

Gold mining in the Peruvian Amazon: global prices, deforestation, and mercury imports.

Science.gov (United States)

Swenson, Jennifer J; Carter, Catherine E; Domec, Jean-Christophe; Delgado, Cesar I

2011-04-19

Many factors such as poverty, ineffective institutions and environmental regulations may prevent developing countries from managing how natural resources are extracted to meet a strong market demand. Extraction for some resources has reached such proportions that evidence is measurable from space. We present recent evidence of the global demand for a single commodity and the ecosystem destruction resulting from commodity extraction, recorded by satellites for one of the most biodiverse areas of the world. We find that since 2003, recent mining deforestation in Madre de Dios, Peru is increasing nonlinearly alongside a constant annual rate of increase in international gold price (∼18%/yr). We detect that the new pattern of mining deforestation (1915 ha/year, 2006-2009) is outpacing that of nearby settlement deforestation. We show that gold price is linked with exponential increases in Peruvian national mercury imports over time (R(2) = 0.93, p = 0.04, 2003-2009). Given the past rates of increase we predict that mercury imports may more than double for 2011 (∼500 t/year). Virtually all of Peru's mercury imports are used in artisanal gold mining. Much of the mining increase is unregulated/artisanal in nature, lacking environmental impact analysis or miner education. As a result, large quantities of mercury are being released into the atmosphere, sediments and waterways. Other developing countries endowed with gold deposits are likely experiencing similar environmental destruction in response to recent record high gold prices. The increasing availability of satellite imagery ought to evoke further studies linking economic variables with land use and cover changes on the ground.

An empirical analysis of freight rate and vessel price volatility transmission in global dry bulk shipping market

Directory of Open Access Journals (Sweden)

Lei Dai

2015-10-01

Full Text Available Global dry bulk shipping market is an important element of global economy and trade. Since newbuilding and secondhand vessels are often traded as assets and the freight rate is the key determinant of vessel price, it is important for shipping market participants to understand the market dynamics and price transmission mechanism over time to make suitable strategic decisions. To address this issue, a multi-variate GARCH model was applied in this paper to explore the volatility spillover effects across the vessel markets (including newbuilding and secondhand vessel markets and freight market. Specifically, the BEKK parameterization of the multi-variate GARCH model (BEKK GARCH was proposed to capture the volatility transmission effect from the freight market, newbuilding and secondhand vessel markets in the global dry bulk shipping industry. Empirical results reveal that significant volatility transmission effects exist in each market sector, i.e. capesize, panamax, handymax and handysize. Besides, the market volatility transmission mechanism varies among different vessel types. Moreover, some bilateral effects are found in the dry bulk shipping market, showing that lagged variances could affect the current variance in a counterpart market, regardless of the volatility transmission. A simple ratio is proposed to guide investors optimizing their portfolio allocations. The findings in this paper could provide unique insights for investors to understand the market and hedge their portfolios well.

The world energy demand in 2007: How high oil prices impact the global energy demand? June 9, 2008

International Nuclear Information System (INIS)

2008-01-01

How high oil prices impact the global energy demand? The growth of energy demand continued to accelerate in 2007 despite soaring prices, to reach 2,8 % (+ 0,3 point compared to 2006). This evolution results from two diverging trends: a shrink in energy consumption in most of OECD countries, except North America, and a strong increase in emerging countries. Within the OECD, two contrasting trends can be reported, that compensate each other partially: the reduction of energy consumption in Japan (-0.8%) and in Europe (-1.2%), particularly significant in the EU-15 (-1.9%); the increase of energy consumption in North America (+2%). Globally, the OECD overall consumption continued to increase slightly (+0.5%), while electricity increased faster (2,1%) and fuels remained stable. Elsewhere, the strong energy demand growth remained very dynamic (+5% for the total demand, 8% for electricity only), driven by China (+7.3%). The world oil demand increased by 1% only, but the demand has focused even more on captive end usages, transports and petrochemistry. The world gasoline and diesel demand increased by around 5,7% in 2007, and represents 53% of the total oil products demand in 2007 (51% in 2006). If gasoline and diesel consumption remained quasi-stable within OECD countries, the growth has been extremely strong in the emerging countries, despite booming oil prices. There are mainly two factors explaining this evolution where both oil demand and oil prices increased: Weak elasticity-prices to the demand in transport and petrochemistry sectors Disconnection of domestic fuel prices in major emerging countries (China, India, Latin America) compared to world oil market prices Another striking point is that world crude oil and condensate production remained almost stable in 2007, hence the entire demand growth was supported by destocking. During the same period, the OPEC production decreased by 1%, mainly due to the production decrease in Saudi Arabia, that is probably more

The analysis of pricing principles at domestic industrial enterprises

OpenAIRE

I.M. Rjabchenko; V.V. Bozhkova

2013-01-01

The analysis of pricing principles at domestic industrial enterprisesTheoretical and methodological aspects of marketing pricing formation are investigated in the article. The aim of this research is systematization of marketing pricing principles and formation of corresponding offers concerning perfection of a domestic industrial enterprises pricing policy.The results of the analysis. The authors note that pricing principles are important element of pricing methodology which form basic posit...

Energy and ethics. Ethical aspects of a future global power generation; Energie und Ethik. Ethische Aspekte zukuenftiger globaler Stromerzeugung

Energy Technology Data Exchange (ETDEWEB)

Gethmann, C.F. [Duisburg-Essen Univ. (Germany). Inst. fuer Philosophie; Europaeische Akademie Bad Neuenahr-Ahrweiler GmbH, Essen (Germany)

2008-07-01

The article deals with ethical questions regarding a future global energy supply by considering the normative aspects of economic efficiency, long-term liabilities, environmental sustainability, social acceptability and distributive equity. Regarding the ethical issues dealt with in the debate on the global energy supply, in particular two postulates arise: Both an improvement in knowledge and an improvement in the categories and procedures of ethical reflection are required. (orig.)

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.

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

Henry Hub and national balancing point prices: what will be the international gas price reference?

International Nuclear Information System (INIS)

Mazighi, A.E.H.

2005-01-01

One of the lessons in the history of international trade in commodities is the emergence - sooner or later - of an international price reference, most commonly known as an international marker price. In the area of oil, West Texas Intermediate (WTI) plays the role of a marker for sour crudes traded in the Atlantic basin. Brent oil fulfils this function for sweet crudes traded in Europe. Another important aspect in the area of global commodities is that the emergence of a marker price is not always necessarily related to the relative share of production of exports of the commodity, but primarily to the existence of an organized market for this commodity. Today, while international gas trade is intensifying, we still lack an international price reference for this commodity. This is due to the fact that the international trade of natural gas is still highly regionalized. It is also due to the fact that most gas markets are still regulated. Nevertheless, deregulation efforts have been implemented in both developed (the United States, the United Kingdom, continental Europe, Korea) and developing countries (Brazil, Chile) and have led to new market structures based on more competition in all segments of the gas chain, except transportation. In the meantime, price structures based on supply and demand principles are supposed to have emerged in the US and UK markets in the 1990s as a result of the implementation of deregulation measures. Today, the US gas market, which represents more than 660 billion cubic metres per year of consumption and the UK gas market, which is close to 100 bcm annually, are considered mature enough to make the principles of supply and demand operate inside these markets. In fact, the Henry Hub (HH) price, which is determined at a physical location in Louisiana, US, and the national balancing point (NBP) price, which is determined somewhere inside the national transmission system (NTS), without any precise location, are considered as potential

Implicit CO_2 prices of fossil fuel use in Switzerland

International Nuclear Information System (INIS)

Schleiniger, Reto

2016-01-01

This study aims to assess the efficiency of the fossil fuel taxation scheme currently in effect in Switzerland. To this end, the concept of implicit CO_2 prices is introduced, based on which prices for different fossil fuel uses are derived. Implicit CO_2 prices are defined as the difference between actual prices paid by consumers and efficient domestic fuel prices. Efficient domestic fuel prices, in turn, consist of private production costs, a uniform value added tax and only local external costs, not including external costs due to CO_2 emissions and global climate change. The resulting prices differ substantially, which suggests that there is considerable cost-saving potential in reducing CO_2 emissions in Switzerland. For passenger cars and air traffic, the implicit prices are negative. For these uses, higher fuel charges would therefore be beneficial from a purely domestic perspective, i.e., without considering the negative repercussions of global warming. - Highlights: •Efficient fossil fuel policy must take into account local and global externalities. •Implicit CO_2 prices are applied as efficiency indicator of fossil energy policy. •Implicit CO_2 prices vary strongly for different fossil fuel uses in Switzerland. •There is a large cost-saving potential in terms of reducing CO_2 emissions.

Pricing Policy and the College Choice Process.

Science.gov (United States)

Chapman, Randall G.

1979-01-01

A marketing management paradigm for academe is discussed along with aspects of the pricing policy process. The two most important factors affecting the college choice process are shown to be college quality and price-related considerations. Implications for marketing are discussed. (Author/LBH)

Food price volatility and hunger alleviation – can Cannes work?

Directory of Open Access Journals (Sweden)

Hajkowicz Stefan

2012-06-01

Full Text Available Abstract Recent years have seen global food prices rise and become more volatile. Price surges in 2008 and 2011 held devastating consequences for hundreds of millions of people and negatively impacted many more. Today one billion people are hungry. The issue is a high priority for many international agencies and national governments. At the Cannes Summit in November 2011, the G20 leaders agreed to implement five objectives aiming to mitigate food price volatility and protect vulnerable persons. To succeed, the global community must now translate these high level policy objectives into practical actions. In this paper, we describe challenges and unresolved dilemmas before the global community in implementing these five objectives. The paper describes recent food price volatility trends and an evaluation of possible causes. Special attention is given to climate change and water scarcity, which have the potential to impact food prices to a much greater extent in coming decades. We conclude the world needs an improved knowledge base and new analytical capabilities, developed in parallel with the implementation of practical policy actions, to manage food price volatility and reduce hunger and malnutrition. This requires major innovations and paradigm shifts by the global community.

Navigating catastrophes: Local but not global optimisation allows for macro-economic navigation of crises

Science.gov (United States)

Harré, Michael S.

2013-02-01

Two aspects of modern economic theory have dominated the recent discussion on the state of the global economy: Crashes in financial markets and whether or not traditional notions of economic equilibrium have any validity. We have all seen the consequences of market crashes: plummeting share prices, businesses collapsing and considerable uncertainty throughout the global economy. This seems contrary to what might be expected of a system in equilibrium where growth dominates the relatively minor fluctuations in prices. Recent work from within economics as well as by physicists, psychologists and computational scientists has significantly improved our understanding of the more complex aspects of these systems. With this interdisciplinary approach in mind, a behavioural economics model of local optimisation is introduced and three general properties are proven. The first is that under very specific conditions local optimisation leads to a conventional macro-economic notion of a global equilibrium. The second is that if both global optimisation and economic growth are required then under very mild assumptions market catastrophes are an unavoidable consequence. Third, if only local optimisation and economic growth are required then there is sufficient parametric freedom for macro-economic policy makers to steer an economy around catastrophes without overtly disrupting local optimisation.

Uncertain long-run emissions targets, CO{sub 2} price and global energy transition: A general equilibrium approach

Energy Technology Data Exchange (ETDEWEB)

Durand-Lasserve, Olivier, E-mail: olivier.durand@uclouvain.b [Universite Catholique de Louvain (UCL), CORE, Voie du Roman Pays 34, B-1348 Louvain-la-Neuve (Belgium); Pierru, Axel, E-mail: axel.pierru@ifp.f [IFP, Economics Department, 232 Avenue Napoleon Bonaparte, 92852 Rueil-Malmaison (France); Smeers, Yves, E-mail: yves.smeers@uclouvain.ac.b [Universite Catholique de Louvain (UCL), CORE, Voie du Roman Pays 34, B-1348 Louvain-la-Neuve (Belgium)

2010-09-15

The persistent uncertainty about mid-century CO{sub 2} emissions targets is likely to affect not only the technological choices that energy-producing firms will make in the future but also their current investment decisions. We illustrate this effect on CO{sub 2} price and global energy transition within a MERGE-type general-equilibrium model framework, by considering simple stochastic CO{sub 2} policy scenarios. In these scenarios, economic agents know that credible long-run CO{sub 2} emissions targets will be set in 2020, with two possible outcomes: either a 'hard cap' or a 'soft cap'. Each scenario is characterized by the relative probabilities of both possible caps. We derive consistent stochastic trajectories-with two branches after 2020-for prices and quantities of energy commodities and CO{sub 2} emissions permits. The impact of uncertain long-run CO{sub 2} emissions targets on prices and technological trajectories is discussed. In addition, a simple marginal approach allows us to analyze the Hotelling rule with risk premia observed for certain scenarios.

Uncertain long-run emissions targets, CO{sub 2} price and global energy transition. A general equilibrium approach

Energy Technology Data Exchange (ETDEWEB)

Durand-Lasserve, Olivier; Smeers, Yves [Universite Catholique de Louvain (UCL), CORE, Voie du Roman Pays 34, B-1348 Louvain-la-Neuve (Belgium); Pierru, Axel [IFP, Economics Department, 232 Avenue Napoleon Bonaparte, 92852 Rueil-Malmaison (France)

2010-09-15

The persistent uncertainty about mid-century CO{sub 2} emissions targets is likely to affect not only the technological choices that energy-producing firms will make in the future but also their current investment decisions. We illustrate this effect on CO{sub 2} price and global energy transition within a MERGE-type general-equilibrium model framework, by considering simple stochastic CO{sub 2} policy scenarios. In these scenarios, economic agents know that credible long-run CO{sub 2} emissions targets will be set in 2020, with two possible outcomes: either a hard cap or a soft cap. Each scenario is characterized by the relative probabilities of both possible caps. We derive consistent stochastic trajectories - with two branches after 2020 - for prices and quantities of energy commodities and CO{sub 2} emissions permits. The impact of uncertain long-run CO{sub 2} emissions targets on prices and technological trajectories is discussed. In addition, a simple marginal approach allows us to analyze the Hotelling rule with risk premia observed for certain scenarios. (author)

North American natural gas price outlook

International Nuclear Information System (INIS)

Denhardt, R.

1998-01-01

Issues regarding future natural gas prices for North America were discussed. Various aspects of the issue including the relationship between storage, weather and prices, received attention. It was noted that strong demand-growth will be needed to support near-term Canadian export increases without price declines. The issue of Gulf Coast production was also discussed. Power generation using natural gas as fuel is expected to support strong growth in the demand for natural gas. tabs., figs

Transfer Pricing - An Innovative Approach

Directory of Open Access Journals (Sweden)

Ramona MAXIM

2017-06-01

Full Text Available This paper presents transfer pricing and elements of drafting the transfer pricing file by the big companies. The transfer pricing procedure was founded based upon Order no. 442/2016 and the Fiscal Procedure Code and it represents a method upon which the tax base is transferred from a high tax country to a country with low taxation. This legislation outlines the conditions which companies must observe in order to draft the transfer pricing documentation and the significance thresholds. The purpose to draft a transfer pricing file is to reduce the differences between prices and market value and the actual results of company taxation. Economic double taxation occurs when tax authorities apply price adjustments because the company did not respect the principle of market value. Keeping records of transfer pricing and practicing a price aligned to market requirements contribute to an understanding of business development and the creation of appropriate tax planning. Taking into account all these aspects and the fact that any taxpayer is tempted to pay the lowest possible fees, tax havens become an option. In this context we can speak of a tax haven as a loophole in the use of the market price.

Petroleum Prices, Taxation and Subsidies in India

Energy Technology Data Exchange (ETDEWEB)

NONE

2009-07-01

The current Indian system of effectively subsidised petroleum product prices has significant implications for the emergence of India as a major global energy consumer, for the integrity of India's Central Government budget and for investment in India's growing oil and petroleum sector. This paper is part one of a broader study that looks at the current system of petroleum pricing and the macroeconomic, microeconomic, regional and global effects of this system.

TRANSFER PRICES IN ROMANIAN ECONOMY

Directory of Open Access Journals (Sweden)

ANDREEA-LAVINIA CAZACU (NEAMTU

2016-10-01

Full Text Available Transfer prices are a delicate subject and of major importance in jurisdictions to which they belong, as they are often used as a means of exploiting tax legislation. In proceedings of tax inspection and financial control carried out by the tax authorities, a special place is occupied by the transactions between affiliated entities with Romanian companies. The purpose of the tax inspection is: combating tax evasion and tracking these transactions to be carried out at market prices. The article aims to present how transfer prices affect the value of an enterprise, but also the methodological aspects relating to tax inspection and the necessary documents in order to deciphering the mode of transfer pricing in Romania.

Economics : pricing, demand, and economic efficiency : a primer.

Science.gov (United States)

2008-11-01

The Congestion Pricing Primer Series is part of : FHWAs outreach efforts to introduce the various : aspects of congestion pricing to decision-makers and : transportation professionals in the United States. The : primers are intended to lay out the...

Trends and prospects of international major commodity prices

Directory of Open Access Journals (Sweden)

Maria Cartas

2013-04-01

Full Text Available Trends and prospects of international major commodity prices. In 2012, the international commodity markets have seen declining prices, especially during the first half of the year, with some improvement mainly in the last quarter. On the whole, most of major commodity prices declined, following generally weaker demand and the uncertain global economic situation. The short term outlook shows broad declines of prices for all major commodity groups, including oil and excepting metal prices, which are expected to be sustained by the global economic recovery and increasing demand, mainly in China. This country represents a major player, with a great contribution to the movement of prices on most of international commodity markets, as she has a great role in the world consumption and trade of commodities, as well as in the world production of some of these goods, on the one hand, and enjoys huge financial resources, on the other.

Nonlinear Pricing in Markets with Interdependent Demand

OpenAIRE

Shmuel S. Oren; Stephen A. Smith; Robert B. Wilson

1982-01-01

This paper provides a mathematical framework for modeling demand and determining optimal price schedules in markets which have demand externalities and can sustain nonlinear pricing. These fundamental economic concepts appear in the marketplace in the form of mutual buyers' benefits and quantity discounts. The theory addressing these aspects is relevant to a wide variety of goods and services. Examples include tariffs for electronic communications services, pricing of franchises, and royalty ...

Strategic pricing in the engineering industry

OpenAIRE

Savukoski, Jesse

2015-01-01

In today’s challenging market environment, pricing is one of the most crucial elements in a company’s marketing plan. By identifying the best pricing practices in various situations, a firm can succeed and evolve in accordance with its long-term strategy. In this respect, this thesis is a case study with the aim of providing a comprehensive framework for the target company under which it can operate. More specifically, the framework handles strategic aspects of product pricing and busine...

Petroleum Prices, Taxation and Subsidies in India

Energy Technology Data Exchange (ETDEWEB)

NONE

2009-07-01

The current Indian system of effectively subsidised petroleum product prices has significant implications for the emergence of India as a major global energy consumer, for the integrity of India's Central Government budget and for investment in India's growing oil and petroleum sector. This paper is part one of a broader study that looks at the current system of petroleum pricing and the macroeconomic, microeconomic, regional and global effects of this system.

Compound Option Pricing under Fuzzy Environment

Directory of Open Access Journals (Sweden)

Xiandong Wang

2014-01-01

Full Text Available Considering the uncertainty of a financial market includes two aspects: risk and vagueness; in this paper, fuzzy sets theory is applied to model the imprecise input parameters (interest rate and volatility. We present the fuzzy price of compound option by fuzzing the interest and volatility in Geske’s compound option pricing formula. For each α, the α-level set of fuzzy prices is obtained according to the fuzzy arithmetics and the definition of fuzzy-valued function. We apply a defuzzification method based on crisp possibilistic mean values of the fuzzy interest rate and fuzzy volatility to obtain the crisp possibilistic mean value of compound option price. Finally, we present a numerical analysis to illustrate the compound option pricing under fuzzy environment.

Modelling oil price volatility with structural breaks

International Nuclear Information System (INIS)

Salisu, Afees A.; Fasanya, Ismail O.

2013-01-01

In this paper, we provide two main innovations: (i) we analyze oil prices of two prominent markets namely West Texas Intermediate (WTI) and Brent using the two recently developed tests by Narayan and Popp (2010) and Liu and Narayan, 2010 both of which allow for two structural breaks in the data series; and (ii) the latter method is modified to include both symmetric and asymmetric volatility models. We identify two structural breaks that occur in 1990 and 2008 which coincidentally correspond to the Iraqi/Kuwait conflict and the global financial crisis, respectively. We find evidence of persistence and leverage effects in the oil price volatility. While further extensions can be pursued, the consideration of asymmetric effects as well as structural breaks should not be jettisoned when modelling oil price volatility. - Highlights: ► We analyze oil price volatility using NP (2010) and LN (2010) tests. ► We modify the LN (2010) to account for leverage effects in oil price. ► We find two structural breaks that reflect major global crisis in the oil market. ► We find evidence of persistence and leverage effects in oil price volatility. ► Leverage effects and structural breaks are fundamental in oil price modelling.

Fish is food--the FAO's fish price index.

Science.gov (United States)

Tveterås, Sigbjørn; Asche, Frank; Bellemare, Marc F; Smith, Martin D; Guttormsen, Atle G; Lem, Audun; Lien, Kristin; Vannuccini, Stefania

2012-01-01

World food prices hit an all-time high in February 2011 and are still almost two and a half times those of 2000. Although three billion people worldwide use seafood as a key source of animal protein, the Food and Agriculture Organization (FAO) of the United Nations-which compiles prices for other major food categories-has not tracked seafood prices. We fill this gap by developing an index of global seafood prices that can help to understand food crises and may assist in averting them. The fish price index (FPI) relies on trade statistics because seafood is heavily traded internationally, exposing non-traded seafood to price competition from imports and exports. Easily updated trade data can thus proxy for domestic seafood prices that are difficult to observe in many regions and costly to update with global coverage. Calculations of the extent of price competition in different countries support the plausibility of reliance on trade data. Overall, the FPI shows less volatility and fewer price spikes than other food price indices including oils, cereals, and dairy. The FPI generally reflects seafood scarcity, but it can also be separated into indices by production technology, fish species, or region. Splitting FPI into capture fisheries and aquaculture suggests increased scarcity of capture fishery resources in recent years, but also growth in aquaculture that is keeping pace with demand. Regionally, seafood price volatility varies, and some prices are negatively correlated. These patterns hint that regional supply shocks are consequential for seafood prices in spite of the high degree of seafood tradability.

Fish is food--the FAO's fish price index.

Directory of Open Access Journals (Sweden)

Sigbjørn Tveterås

Full Text Available World food prices hit an all-time high in February 2011 and are still almost two and a half times those of 2000. Although three billion people worldwide use seafood as a key source of animal protein, the Food and Agriculture Organization (FAO of the United Nations-which compiles prices for other major food categories-has not tracked seafood prices. We fill this gap by developing an index of global seafood prices that can help to understand food crises and may assist in averting them. The fish price index (FPI relies on trade statistics because seafood is heavily traded internationally, exposing non-traded seafood to price competition from imports and exports. Easily updated trade data can thus proxy for domestic seafood prices that are difficult to observe in many regions and costly to update with global coverage. Calculations of the extent of price competition in different countries support the plausibility of reliance on trade data. Overall, the FPI shows less volatility and fewer price spikes than other food price indices including oils, cereals, and dairy. The FPI generally reflects seafood scarcity, but it can also be separated into indices by production technology, fish species, or region. Splitting FPI into capture fisheries and aquaculture suggests increased scarcity of capture fishery resources in recent years, but also growth in aquaculture that is keeping pace with demand. Regionally, seafood price volatility varies, and some prices are negatively correlated. These patterns hint that regional supply shocks are consequential for seafood prices in spite of the high degree of seafood tradability.

Aspects of Global Health Issues: Diseases, Natural Disasters, and Pharmaceutical Corporations and Medical Research.

Science.gov (United States)

Brown, Geraldine

2016-01-01

Global health issues are concerns of all public health officials throughout the world. This entails reviewing aspects such as the impact of poverty and the lack of access to quality health care, ignored global killers such as Diseases (Infectious diseases-Malaria, HIV/AIDS), Natural Disasters (Earthquakes, Tsunamis, Floods, and Armed Conflict), Health in the Media, and the Involvement of Pharmaceutical Corporations and Medical Research. These issues are challenges to many needless deaths. Global initiatives are not advancing as they should, such as access to drugs and medications, which some are political.

Globalization in the early modern era

NARCIS (Netherlands)

Zwart, de Pim

2016-01-01

This article contributes to the ongoing debate on the origins of globalization. It examines the process of commodity price convergence, an indicator of globalization, between Europe and Asia on the basis of newly obtained price data from the Dutch East India Company (VOC) archives. Prices for

Power transmission pricing: issues and international experience

International Nuclear Information System (INIS)

Bodenhoefer, H.J.; Wohlgemuth, N.

2001-01-01

A key aspect of electricity industry reorganization is transmission pricing because it heavily influences the degree of effective competition in 'liberalized' electricity markets. this paper presents an overview transmission pricing models, of issues related to an effective design of a transmission pricing approach, and presents approaches implemented internationally. A conclusion is that, due to the great number of institutional designs of electricity market organizations, particularly in Europe, it will be difficult to design/implement a model of cross-border transmission pricing that is capable of inducing a high degree of non-discriminatory international competition in electricity markets. (author)

Consultants' meeting on operational aspects of the global network ''isotopes in precipitation''

International Nuclear Information System (INIS)

1995-01-01

The Consultant's meeting on ''Operational Aspects of the Global Network - Isotopes in Precipitation'' was organized by the International Atomic Energy Agency (IAEA) in co-operation with the World Meteorological Organization (WMO), the Past Global Changes Project (PAGES) of the International Geosphere-Biosphere Programme (IGBP), the World Health Organization (WHO) and the International Association of Hydrological Sciences (IAHS). It was agreed to transfer the responsibility of running the GNIP and the collection of isotope data in precipitation to a Steering Committee, which will consist of representatives of the following organizations: IAEA, WMO, IGBP-PAGES, WHO, UNESCO and IAHS. The responsibilities of the International Atomic Energy Agency (IAEA) in the Steering Committee are as follows: Co-ordination of the sample analysis: Arrangements for and participation in the measuring programme. Monitoring analytical aspects of sample collection, storage, etc. Arrangements for interlaboratory comparison exercises; collection of isotope and meteorological data, maintenance of the GNIP database and data distribution to interested users; promotion of full use and wider application of GNIP data in practical hydrological applications. Figs, tabs

Perceptions of Water Pricing during a Drought: A Case Study from South Australia

Directory of Open Access Journals (Sweden)

John Martin

2013-02-01

Full Text Available This paper examines the perceptions of urban and regional water consumers in three areas of South Australia on the fairness of the water pricing system, the impact of increases in water pricing on households and pricing as a driver of water conservation. The study was conducted in 2009 during a time of severe drought and mandatory water restrictions. The results did not show a general aversion to all aspects of price increases but rather different sectors of the population were particularly resistant to different, specific aspects of water pricing. A state-wide water pricing policy in South Australia means that all consumers pay the same rate per volume of water consumed regardless of their location; yet in the regional study area, where it costs more for the service provider to supply the water, the respondents had stronger feelings that the price of water should be higher in places where it costs more to supply it. Generally, low income earners were less in favor of a block pricing system than higher income earners. The latter findings indicate a common lack of awareness around various aspects of water pricing. Some implications of the findings for water managers are outlined.

From Rio to Rio: a global carbon price signal to escape the great climate inconsistency

International Nuclear Information System (INIS)

Dion, Stephane; Laurent, Eloi

2012-05-01

Two decades after the 1992 Rio Conference, we must admit to collective failure in combating human-induced climate change. The problem is not that no efforts have been undertaken, but that these efforts have just not been enough. We cannot escape serious climate disruption - which, to some extent, has already begun - if we keep going down that road. We must change direction, and we must move quickly. To this end, we call in this paper for a fine-tuning of the international negotiations on climate. We propose refocusing these international efforts on negotiating a global carbon price signal, harmonized in principle but flexible in practice, instead of doggedly spending the next few years attempting to convince countries to accept stricter national targets for quantitative reduction of their greenhouse gas (GHG) emissions. We cannot afford to spend the next few years missing the wrong targets. Simply put, we must move away, collectively, from an ineffective logic of constraint to a pragmatic logic of price incentives. The December 2011 Durban Conference proved, once again, that the 'to each their own target' approach does not work. We must instead adopt a 'one price signal for all' strategy. If there were a single reason to improve the current mitigation logic, it would be this evident fact: developing countries, which now account for 60% of emissions worldwide, cannot accept what they perceive as an obstacle to their economic development, when developed countries have been able to get rich on unlimited use of fossil fuel energy. Indeed, in the foreseeable future, emerging economies, particularly China and India with Gross Domestic Product (GDP) annual growth rates of between 8% and 10%, will not accept absolute reduction targets for GHG emissions. On the other hand, these countries might be more open to the idea of a flexible levy of a price per tonne of carbon dioxide, a price from which they would derive revenues, and which their economic

Price caps and price floors in climate policy: a quantitative assessment

Energy Technology Data Exchange (ETDEWEB)

Philibert, Cedric

2008-12-15

This study assesses the long-term economic and environmental effects of introducing price caps and price floors in hypothetical climate change mitigation architecture, which aims to reduce global energy-related CO2 emissions by 50% by 2050. Based on abatement costs in IPCC and IEA reports, this quantitative analysis confirms what qualitative analyses have already suggested: introducing price caps could significantly reduce economic uncertainty. This uncertainty stems primarily from unpredictable economic growth and energy prices, and ultimately unabated emission trends. In addition, the development of abatement technologies is uncertain. With price caps, the expected costs could be reduced by about 50% and the uncertainty on economic costs could be one order of magnitude lower. Reducing economic uncertainties may spur the adoption of more ambitious policies by helping to alleviate policy makers' concerns of economic risks. Meanwhile, price floors would reduce the level of emissions beyond the objective if the abatement costs ended up lower than forecasted. If caps and floors are commensurate with the ambition of the policy pursued and combined with slightly tightened emission objectives, climatic results could be on average similar to those achieved with 'straight' objectives (i.e. with no cost-containment mechanism). (auth)

Grain price spikes and beggar-thy-neighbor policy responses

DEFF Research Database (Denmark)

Boysen, Ole; Jensen, Hans Grinsted

on the agenda of various international policy fora, including the annual meetings of G20 countries in recent years. For that reason, recent studies have attempted to quantify the extent to which such policy actions contributed to the rise in food prices. A study by Jensen & Anderson (2014) uses the global AGE...... model GTAP and the corresponding database to quantify the global policy actions contributions to the raise in food prices by modeling the changes in distortions to agricultural incentives in the period 2006 to 2008. We link the results from this global model into a national AGE model, highlighting how...... global "Beggar-thy-Neighbor Policy Responses" impacted on poor households in Uganda. More specifically we examine the following research questions: What were the Ugandan economy-wide and poverty impacts of the price spikes? What was the impact of other countries "Beggar-thy-Neighbor Policy Responses...

Optimal pricing and lot-sizing for perishable inventory with price and time dependent ramp-type demand

Science.gov (United States)

Panda, S.; Saha, S.; Basu, M.

2013-01-01

Product perishability is an important aspect of inventory control. To minimise the effect of deterioration, retailers in supermarkets, departmental store managers, etc. always want higher inventory depletion rate. In this article, we propose a dynamic pre- and post-deterioration cumulative discount policy to enhance inventory depletion rate resulting low volume of deterioration cost, holding cost and hence higher profit. It is assumed that demand is a price and time dependent ramp-type function and the product starts to deteriorate after certain amount of time. Unlike the conventional inventory models with pricing strategies, which are restricted to a fixed number of price changes and to a fixed cycle length, we allow the number of price changes before as well as after the start of deterioration and the replenishment cycle length to be the decision variables. Before start of deterioration, discounts on unit selling price are provided cumulatively in successive pricing cycles. After the start of deterioration, discounts on reduced unit selling price are also provided in a cumulative way. A mathematical model is developed and the existence of the optimal solution is verified. A numerical example is presented, which indicates that under the cumulative effect of price discounting, dynamic pricing policy outperforms static pricing strategy. Sensitivity analysis of the model is carried out.

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...

Global Tuition Pricing: An In-Depth Analysis

Science.gov (United States)

Cupp, Jason W.

2012-01-01

This study was conducted to determine if there is a relationship between select pricing schemes used throughout the world and positive social outcomes. The rising costs of college tuition and escalating student debt has raised the concern about how students should pay for financing their education and whether the current system is the most…

The impacts of global oil price shocks on China's fundamental industries

International Nuclear Information System (INIS)

Wang, Xiao; Zhang, Chuanguo

2014-01-01

This paper investigated the impacts of oil price shocks on China's fundamental industries. In order to analyze the reactions of different industries to oil price shocks, we focused on four fundamental industries: grains, metals, petrochemicals and oil fats. We separated the oil price shocks into two parts, positive and negative parts, to investigate how commodity markets react when oil prices go up and down. We further studied the extreme price movements, called jumps, existing in the oil markets and how jump behavior has affected China's commodity markets. Our results suggest that asymmetric effects of oil price shocks did exist in the four markets and the negative oil price shocks had stronger influences on the four markets in China. The petrochemicals market suffered most from the oil price shocks, and the grains market was least sensitive to the shocks. When jumps occurred in the crude oil market, the four commodity markets would be affected differently. The oil fats market and petrochemicals market tended to “overreact” to jumps. - Highlights: • We investigate the impacts of oil price shocks on China's fundamental industries. • Jump behavior does exist in the crude oil market. • The impacts of oil price shocks are asymmetric. • China's four commodity markets are affected by the jump behavior

Analyzing Developing Country Market Integration using Incomplete Price Data and Cluster Analysis

NARCIS (Netherlands)

Ansah, I.G.; Gardebroek, Koos; Ihle, R.; Jaletac, M.

2015-01-01

Recent global food price developments have spurred renewed interest in analyzing integration of local markets to global markets. A popular approach to quantify market integration is cointegration analysis. However, local market price data often has missing values, outliers, or short and incomplete

Strategic Transfer Pricing : The Art of Pricing Inter-company Transactions between Sweden and China

OpenAIRE

Hjertberg, Ida; Pettersson, Sanna

2010-01-01

Background International transfer pricing has been a highlighted issue during the last decades as country after country has revised and introduced new transfer pricing laws as a respond to the expanded globalization. Several countries are adopting similar approaches and the prime guiding principles are provided by the Organization for Economic Co-Operation (OECD). The international law as well as the laws of all 30 member countries is based on the OECD Guidelines. Purpose The purpose of this ...

Analysis of a decision model in the context of equilibrium pricing and order book pricing

Science.gov (United States)

Wagner, D. C.; Schmitt, T. A.; Schäfer, R.; Guhr, T.; Wolf, D. E.

2014-12-01

An agent-based model for financial markets has to incorporate two aspects: decision making and price formation. We introduce a simple decision model and consider its implications in two different pricing schemes. First, we study its parameter dependence within a supply-demand balance setting. We find realistic behavior in a wide parameter range. Second, we embed our decision model in an order book setting. Here, we observe interesting features which are not present in the equilibrium pricing scheme. In particular, we find a nontrivial behavior of the order book volumes which reminds of a trend switching phenomenon. Thus, the decision making model alone does not realistically represent the trading and the stylized facts. The order book mechanism is crucial.

Booms, busts and behavioural heterogeneity in stock prices

NARCIS (Netherlands)

Hommes, C.; in 't Veld, D.

2014-01-01

The global financial crisis indicated the limitations of representative rational agent models for asset pricing solely based on economic fundamentals. We estimate a simple behavioural heterogeneous agents model with boundedly rational traders in which the fundamental value of the stock prices is

Transparency in natural gas prices in Western Europe

International Nuclear Information System (INIS)

Vrieling, E.B.; Munksgaard, J.; Hopper, R.J.

1989-11-01

The present situation on price transparency in Western Europe and North america within the context of the European internal gas market is analyzed. In chapter one the ideas and policy proposals put forward by the European Commission are discussed. Special attention is paid to the situation of the large industrial consumers. It is argued that price transparency needs to be extended to more upstream price aspects. This includes information on city-gates prices, transmission and handling charges in addition to wellhead and import prices. In Western Europe (chapter two) two pricing principles can be distinguished at the final consumer level: pricing according to costs and prices according to market value. The first principle is applied in France, Belgium, the United Kingdom and Austria, as some cost elements are included in the tariff calculations in Italy. Countries where a market-evaluation methodology is applied are Denmark, the Netherlands, Germany, Spain and Switzerland. In North America (chapter three) price transparency is extensive and part of the necessary conditions of an open access contract carriage market. In order to integrate the aspect of price transparency in the broader framework of the internal gas market a model of an integrated natural gas market is described in chapter four. The model specifies the preconditions of a truly integrated gas market, i.e. accessible market entry at all levels of the gas sector and for all market players, equal market opportunity and a regulatory oversight system. A brief comparison between the model and the actual market situation in Western Europe showed that hardly any of these preconditions are met. The comparison points out which actions need to be taken to implement an internal gas market in Western Europe. 9 appendices

The role of storage dynamics in annual wheat prices

Science.gov (United States)

Schewe, Jacob; Otto, Christian; Frieler, Katja

2017-05-01

Identifying the drivers of global crop price fluctuations is essential for estimating the risks of unexpected weather-induced production shortfalls and for designing optimal response measures. Here we show that with a consistent representation of storage dynamics, a simple supply-demand model can explain most of the observed variations in wheat prices over the last 40 yr solely based on time series of annual production and long term demand trends. Even the most recent price peaks in 2007/08 and 2010/11 can be explained by additionally accounting for documented changes in countries’ trade policies and storage strategies, without the need for external drivers such as oil prices or speculation across different commodity or stock markets. This underlines the critical sensitivity of global prices to fluctuations in production. The consistent inclusion of storage into a dynamic supply-demand model closes an important gap when it comes to exploring potential responses to future crop yield variability under climate and land-use change.

Oil Price Rise and the Great Recession of 2008

Directory of Open Access Journals (Sweden)

Mehdi Siamak MONADJEMI

2017-02-01

Full Text Available The financial crises of 2007-2008, caused wide-spread falling output and unemployment, in the affected countries and also globally. The severity of the recession was such that it was called the “Great Recession”. As a result of an increase in demand from China and India, at the same time, oil prices rose significantly. The empirical results from this study show that oil price changes negatively affected global growth rate in the 1970s but not in the 1990s and 2000s. These results suggest that the Great Recession in 2008 that initiated by the financial crises, was independent of a significant rise in oil prices.

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).

Some anthropological aspects of globalization

Directory of Open Access Journals (Sweden)

Đurić Jelena B.

2002-01-01

Full Text Available Awareness about the role of anthropological perspective places each anthropological research within the context of globalization, pointing at the need for making the difference between concepts of globalization as the description and as the political project. This differentiation represents a frame of the research of globalization phenomena in order to understand their influence on concrete people in a concrete situation. The importance of the role of concepts in ubiquitous transformation of human lives is also confirmed in the paper. This is the way the influence of one culture unfolds through the dominant concepts, the culture which symbolically and normatively imposes itself as 'global' in spite of the fact that it is 'local' not only (and/or not any more in territorial sense but in its materialistic approach to the values. Hence, horizontal communication (globally available via the internet could serve to the communication of values as crucial spiritual points. It could contribute not only to the widening of cultural circles, but to the evolution of consciousness about the generalization of values up to the universal. This requires transcending of particular interests, which prevent effective conceptualization of the global anthropological meaning.

Pricing and crude oil self-sufficiency. [Canada

Energy Technology Data Exchange (ETDEWEB)

1979-11-01

How Canada should go about achieving crude oil self-sufficiency and who should develop Canada's petroleum resources are discussed. The degree of urgency and the level of commitment required by government, industry, and consumers are evaluated. What the price should be of Canadian crude oil and who should establish this price are also discussed. The economic aspects of investment, return, and taxation are also included. (DC)

Poverty, Policy and Price Transmission

DEFF Research Database (Denmark)

Elleby, Christian

This thesis consists of four self-contained chapters in which different aspects of the relationship between international commodity markets and domestic food markets are explored. What motivates the analysis is the recent surge in international commodity prices and the controversy over the poverty...

Hospital non-price competition under the Global Budget Payment and Prospective Payment Systems.

Science.gov (United States)

Chen, Wen-Yi; Lin, Yu-Hui

2008-06-01

This paper provides theoretical analyses of two alternative hospital payment systems for controlling medical cost: the Global Budget Payment System (GBPS) and the Prospective Payment System (PPS). The former method assigns a fixed total budget for all healthcare services over a given period with hospitals being paid on a fee-for-service basis. The latter method is usually connected with a fixed payment to hospitals within a Diagnosis-Related Group. Our results demonstrate that, given the same expenditure, the GBPS would approach optimal levels of quality and efficiency as well as the level of social welfare provided by the PPS, as long as market competition is sufficiently high; our results also demonstrate that the treadmill effect, modeling an inverse relationship between price and quantity under the GBPS, would be a quality-enhancing and efficiency-improving outcome due to market competition.

75 FR 69334 - International Product and Price Changes

Science.gov (United States)

2010-11-12

... illustrate Global Express Guaranteed and Express Mail International permit imprints.] [GRAPHIC] [TIFF OMITTED.... Priority Mail Gift Card Flat Rate Priority Mail DVD Box, 7\\9/ Envelope, 10'' x 7'', Item EP 14-GT. 16\\'' x... appropriate Price Group table based on the prices below:] BILLING CODE P [[Page 69340

Globalization: Economic and psychological aspects

Directory of Open Access Journals (Sweden)

Ljajić Samir

2016-01-01

Full Text Available Globalization requires a change of human identity, stepping out from the field of their own culture and its solutions, which are becoming obsolete, and which block one to fit in. It changes ones understanding, knowledge, morality, competence, which causes insecurity and fear. Quickly unwinding change reduces the ability to predict future which evokes fear and resistance to the arrival of foreigners and their capital and values, which are seen as intrusive and aggressive, and extreme reactions emerge. The idyllic image of global prosperity becomes the image of a global catastrophe. Individuals give in to this pressure and incidence of mental illnesses such as depression, substance abuse, suicide and murder, is rising. The authors conclude that psychology has its place in the study of the influence of globalization on humans. At present, the research of the negative consequences of globalization in general and the economic crisis in particular on man should have primacy, and in this regard preventive actions should be developed in order to avoid deeper disorders in future.

Oil price shocks and policy implications the emergence of U.S. tight oil production: a case study

OpenAIRE

Voth, Jeffrey Michael

2015-01-01

How have shocks to supply and demand affected global oil prices; and what are key policy implications following the resurgence of oil production in the United States? Highlights: − The recent collapse in global oil prices was dominated by oversupply. − The future of tight oil in the United States is vulnerable to obstacles beyond oil prices. − Opinions on tight oil from the Top 25 think tank organizations are considered. Global oil prices have fallen more than fifty percent since ...

Carbon pricing. Mobilizing non-state actors on a global issue with local implications

International Nuclear Information System (INIS)

Afriat, Marion; Vaidyula; Manasvini; Alberola, Emilie

2016-09-01

An effective carbon price should send economic and political signals that shift public and private investment to increase the competitiveness of low-carbon solutions (fuels switching, deployment of renewable energy, etc.) and stay below the 2 deg. C trajectory. In 2016, over 40 countries and 20 provinces and cities have established an explicit price on carbon through carbon taxes or emissions trading systems. The choice of the carbon pricing instrument depends largely on the national or local circumstances and priorities. Carbon pricing should not be a stand-alone policy and should be part of a coherent energy and climate policy framework in order to achieve an effective low-carbon transition in all economic sectors. In 2015, $26 billion in government revenue was generated in the world through carbon pricing initiatives. These revenues can be leveraged to yield economic and environmental benefits at the national and local level. The Paris Agreement provides the necessary framework to facilitate the uptake of carbon pricing

Assessing the value of price caps and floors

Energy Technology Data Exchange (ETDEWEB)

NONE

2009-07-01

This publication assesses the long-term economic and climatic effects of introducing price caps and price floors in hypothetical global climate change mitigation policy. Based on emission trends, abatement costs and equilibrium climate sensitivity from IPCC and IEA reports, this quantitative analysis confirms that price caps could significantly reduce economic uncertainty. This uncertainty stems primarily from unpredictable economic growth and energy prices, and ultimately unabated emission trends. In addition, the development of abatement technologies is uncertain. Furthermore,this analysis shows that rigid targets may entail greater economic risks with little or no comparative advantage for the climate. More ambitious emission objectives, combined with price caps and price floors, could still entail significantly lower expected costs while driving similar, or even slightly better, climatic outcomes in probabilistic terms.

Pareto Improving Price Regulation when the Asset Market is Incomplete

NARCIS (Netherlands)

Herings, P.J.J.; Polemarchakis, H.M.

1999-01-01

When the asset market is incomplete, competitive equilibria are constrained suboptimal, which provides a scope for pareto improving interventions. Price regulation can be such a pareto improving policy, even when the welfare effects of rationing are taken into account. An appealing aspect of price

World Oil Price and Biofuels : A General Equilibrium Analysis

OpenAIRE

Timilsina, Govinda R.; Mevel, Simon; Shrestha, Ashish

2011-01-01

The price of oil could play a significant role in influencing the expansion of biofuels. However, this issue has not been fully investigated yet in the literature. Using a global computable general equilibrium model, this study analyzes the impact of oil price on biofuel expansion, and subsequently, on food supply. The study shows that a 65 percent increase in oil price in 2020 from the 20...

IMPLICATIONS OF GLOBAL PRICING POLICIES ON ACCESS TO INNOVATIVE DRUGS: THE CASE OF TRASTUZUMAB IN SEVEN LATIN AMERICAN COUNTRIES.

Science.gov (United States)

Pichon-Riviere, Andres; Garay, Osvaldo Ulises; Augustovski, Federico; Vallejos, Carlos; Huayanay, Leandro; Bueno, Maria del Pilar Navia; Rodriguez, Alarico; de Andrade, Carlos José Coelho; Buendía, Jefferson Antonio; Drummond, Michael

2015-01-01

Differential pricing, based on countries' purchasing power, is recommended by the World Health Organization to secure affordable medicines. However, in developing countries innovative drugs often have similar or even higher prices than in high-income countries. We evaluated the potential implications of trastuzumab global pricing policies in terms of cost-effectiveness (CE), coverage, and accessibility for patients with breast cancer in Latin America (LA). A Markov model was designed to estimate life-years (LYs), quality-adjusted life-years (QALYs), and costs from a healthcare perspective. To better fit local cancer prognosis, a base case scenario using transition probabilities from clinical trials was complemented with two alternative scenarios with transition probabilities adjusted to reflect breast cancer epidemiology in each country. Incremental discounted benefits ranged from 0.87 to 1.00 LY and 0.51 to 0.60 QALY and incremental CE ratios from USD 42,104 to USD 110,283 per QALY (2012 U.S. dollars), equivalent to 3.6 gross domestic product per capita (GDPPC) per QALY in Uruguay and to 35.5 GDPPC in Bolivia. Probabilistic sensitivity analysis showed 0 percent probability that trastuzumab is CE if the willingness-to-pay threshold is one GDPPC per QALY, and remained so at three GDPPC threshold except for Chile and Uruguay (4.3 percent and 26.6 percent, respectively). Trastuzumab price would need to decrease between 69.6 percent to 94.9 percent to became CE in LA. Although CE in other settings, trastuzumab was not CE in LA. The use of health technology assessment to prioritize resource allocation and support price negotiations is critical to making innovative drugs available and affordable in developing countries.

Do food and oil prices co-move?

International Nuclear Information System (INIS)

Reboredo, Juan C.

2012-01-01

This paper studies co-movements between world oil prices and global prices for corn, soybean and wheat using copulas. Several copula models with different conditional dependence structures and time-varying dependence parameters were considered. Empirical results for weekly data from January 1998 to April 2011 showed weak oil-food dependence and no extreme market dependence between oil and food prices. These results support the neutrality of agricultural commodity markets to the effects of changes in oil prices and non-contagion between the crude oil and agricultural markets. However, dependence increased significantly in the last three years of the sampling period, even though upper tail dependence remained insignificant, indicating that food price spikes are not caused by positive extreme oil price changes. These results have implications for policy design, risk management and hedging strategies. - Highlights: ► We study co-movement between food and oil markets through copulas. ► Food prices are neutral to the effects of changes in oil prices. ► Oil price spikes had no causal effect on agricultural price spikes. ► Oil–corn and oil–soybean dependence increased in recent years. ► Food subsidy policies and price controls are unnecessary to avoid extreme oil prices.

Price sensitivity to tourism activities: looking for determinant factors

OpenAIRE

Lorenzo Masiero; Juan L. Nicolau

2011-01-01

The literature contains evidence that there is a marked heterogeneity in price responses to tourism products, leading to a great variety of tourist sensitivities to price. Thus the role price plays is complex, and a particularly challenging aspect of this complexity is that its effect is not unambiguous, thereby negating the idea that the demand for tourism products and tourist activities can always be regarded as demand for ordinary goods. This article identifies and explains, as a novelty f...

Price movements guided by the OPEC cartel, when there is a possible increase on prices inside the Market

Directory of Open Access Journals (Sweden)

Alex Paubel Junger

2017-07-01

Full Text Available The main purpose of this paper is to calculate the estimation of oil supply and demand in the last 12 quarters (2013-2015, using an OLSconometric model, indicating the supply and demand of the market, in a second moment the oil market current supply and demand curves would be indicated for the average price of Brent oil in the abovementioned period. So that in a second moment the "dead weight" of OPEC's economic price model is calculated and how this deadweight economically affects the oil and gas market globally, economically withdrawing the profits that the main producers could obtain if OPEC did not set the price artificially in unstable political scenarios. Lastly, regarding the global economy, and more precisely, the loss in the energy through financial results due the actions taken by OPEC led by Saudi Arabia and its partners in the Middle East, indicating the market failures caused by a cartel.

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...

The resilience of the Indian economy to rising oil prices as a validation test for a global energy-environment-economy CGE model

International Nuclear Information System (INIS)

Guivarch, C.; Hallegatte, St.; Crassous, R.

2008-09-01

This paper proposes to test the global hybrid computable general equilibrium model IMACLIM-R against macro-economic data. To do so, it compares the modeled and observed responses of the Indian economy to the rise of oil price during the 2003-2006 period. The objective is twofold: first, to disentangle the various mechanisms and policies at play in India's economy response to rising oil prices and, second, to validate our model as a tool capable of reproducing short-run statistical data. With default parametrization, the model predicts a significant decrease in the Indian growth rate that is not observed. However, this discrepancy is corrected if three additional mechanisms identified by the International Monetary Fund are introduced, namely the rise in exports of refined oil products, the imbalance of the trade balance allowed by large capital inflows, and the incomplete pass-through of the oil price increase to Indian customers. This work is a first step toward model validation, and provides interesting insights on the modeling methodology relevant to represent an economy's response to a shock, as well as on how short-term mechanisms - and policy action - can smooth the negative impacts of energy price shocks or climate policies. (authors)

The resilience of the Indian economy to rising oil prices as a validation test for a global energy-environment-economy CGE model

International Nuclear Information System (INIS)

Guivarch, Celine; Hallegatte, Stephane; Crassous, Renaud

2009-01-01

This paper proposes to test the global hybrid computable general equilibrium model IMACLIM-R against macroeconomic data. To do so, it compares the modeled and observed responses of the Indian economy to the rise of oil price during the 2003-2006 period. The objective is twofold: first, to disentangle the various mechanisms and policies at play in India's economy response to rising oil prices and, second, to validate our model as a tool capable of reproducing short-run statistical data. With default parameterization, the model predicts a significant decrease in the Indian growth rate that is not observed. However, this discrepancy is corrected if three additional mechanisms identified by the International Monetary Fund are introduced, namely the rise in exports of refined oil products, the imbalance of the trade balance allowed by large capital inflows, and the incomplete pass-through of the oil price increase to Indian customers. This work is a first step toward model validation, and provides interesting insights on the modeling methodology relevant to represent an economy's response to a shock, as well as on how short-term mechanisms - and policy action - can smooth the negative impacts of energy price shocks or climate policies. (author)

Transfer pricing and safe harbours

Directory of Open Access Journals (Sweden)

Veronika Solilová

2013-01-01

Full Text Available Transfer prices are significant for both taxpayers and tax administrations because they determine in large part taxable profits of associated enterprises in different tax jurisdictions. Moreover, in the context of taxation, transfer prices must be complied with the arm’s length principle. However, Multinational Enterprises have been faced daily by conflicting rules and approaches to applying the arm’s length principle, burdensome documentation requirements, inconsistent audit standards and unpredictable competent authority outcomes. Therefore, the Committee on Fiscal Affairs launched another project on the administrative aspects of transfer pricing in 2010. On 16 May 2013 as a partial solution of this project was approved by the OECD Council the Revised Section E on Safe Harbours in Chapter IV of the Transfer Pricing Guidelines for Multinational Enterprises and Tax Authorities. The paper is focused on significant changes of newly approved chapter IV of the Transfer Pricing Guidelines for Multinational Enterprises and Tax Authorities, further on analysis of practice in this area, on advantages and disadvantages of safe harbours for taxpayers and competent authorities with aim to suggest recommendations on use of safe harbours in the Czech Republic.

Do structural oil-market shocks affect stock prices?

International Nuclear Information System (INIS)

Apergis, Nicholas; Miller, Stephen M.

2009-01-01

This paper investigates how explicit structural shocks that characterize the endogenous character of oil price changes affect stock-market returns in a sample of eight countries - Australia, Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. For each country, the analysis proceeds in two steps. First, modifying the procedure of Kilian [Not All Oil Price Shocks are Alike: Disentangling Demand and Supply Shocks in the Crude Oil Market. American Economic Review.], we employ a vector error-correction or vector autoregressive model to decompose oil-price changes into three components: oil-supply shocks, global aggregate-demand shocks, and global oil-demand shocks. The last component relates to specific idiosyncratic features of the oil market, such as changes in the precautionary demand concerning the uncertainty about the availability of future oil supplies. Second, recovering the oil-supply shocks, global aggregate-demand shocks, and global oil-demand shocks from the first analysis, we then employ a vector autoregressive model to determine the effects of these structural shocks on the stock market returns in our sample of eight countries. We find that international stock market returns do not respond in a large way to oil market shocks. That is, the significant effects that exist prove small in magnitude. (author)

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)

Asset prices and priceless assets

NARCIS (Netherlands)

Penasse, J.N.G.

2014-01-01

The doctoral thesis studies several aspects of asset returns dynamics. The first three chapters focus on returns in the fine art market. The first chapter provides evidence for the existence of a slow-moving fad component in art prices that induces short-term return predictability. The article has

Drug pricing and reimbursement information management: processes and decision making in the global economy

OpenAIRE

Tsourougiannis, Dimitrios

2017-01-01

ABSTRACT Background: Cost-containment initiatives are re-shaping the pharmaceutical business environment and affecting market access as well as pricing and reimbursement decisions. Effective price management procedures are too complex to accomplish manually. Prior to February 2013, price management within Astellas Pharma Europe Ltd was done manually using an Excel database. The system was labour intensive, slow to update, and prone to error. An innovative web-based pricing information managem...

Exchange Market Pressure, Stock Prices, and Commodity Prices East of the Euro

Directory of Open Access Journals (Sweden)

Scott W. Hegerty

2018-03-01

Full Text Available Aim/purpose - This paper aims to examine connections between the exchange, equity, commodity and commodity markets of a set of Central and Eastern European (CEE economies using monthly time-series data. In particular, we examine whether stock - or commodity - price changes might put pressure on these currencies to depreciate, and whether these pressures are transmitted within the region or from larger neighbors. Design/methodology/approach - This paper creates monthly indices of Ex-change Market Pressure (EMP from 1998 to 2017 using a combination of currency depreciation, reserve losses, and changes in interest-rate differentials for the Czech Republic, Hungary, Poland, and Ukraine, Bulgaria, and Romania. After examining these indices for evidence of currency 'crises', and their components for evidence of changes in currency policy, Vector Autoregressive (VAR methods such as Granger causality and impulse-response functions are used to examine connections between EMP, domestic and foreign stock returns, and changes in commodity prices in the first four countries listed. Findings - While EMP increased in 2008, and the degree of central banks' currency- -market interventions decreased afterward, this paper uncovers key differences among countries. In particular, the Czech Republic is relatively insulated from international transmissions, while Hungary is more susceptible to global spillovers and Poland is exposed to events originating elsewhere in the CEE region. Ukraine shows bidirectional causality between its EMP and stock indices, and finds that pressure on the hryvnia increases if commodity or oil prices decline. Research implications/limitations - This study adds to the relatively limited literature regarding this region, and highlights particular vulnerabilities for both individual countries and specific neighbors; further research is necessary to uncover the channels of transmission using economic modeling. Originality

Internal carbon pricing - An increasingly widespread corporate practice

International Nuclear Information System (INIS)

2016-01-01

For the Global Climate Chance Summit, I4CE and EpE - Entreprises pour l'environnement, have come together to release a guidebook on internal carbon pricing. The publication outlines the concept of an internal carbon price, describes its various forms and also identifies benefits of adopting this policy. The publication is based on the experiences of companies that are members of EpE and aims to respond to the questions which may arise for companies seeking to put a price on carbon internally

Determinants of the energy price system in the Federal Republic of Germany

Energy Technology Data Exchange (ETDEWEB)

Hennicke, P.

1983-01-01

The seven theses presented in this article are to illustrate some basic determinants of the West German energy price system systematically and - at present mainly - empirically. The theses are related to the following sub-aspects: - relation between the consumption structure of primary energy and the heat-price relations, - influence of energy imports on the domestic energy price level, - existence and dimensions of differential revenues, - reproaches of bulling made to the petroleum industry, - extent and development of the differentiation of energy prices, - influence of governmental interventions on the energy price level, - theoretical price fixing principles and actual tariff policy.

Human Chagas Disease and Migration in the Context of Globalization: Some Particular Aspects

Directory of Open Access Journals (Sweden)

João Carlos Pinto Dias

2013-01-01

Full Text Available Human Chagas disease originated in Latin America, being spread around the world in relation with multiple bioecological, sociocultural, and political factors. The process of the disease production and dispersion is discussed, emphasizing the human migration and correlated aspects, in the context of globalization. Positive and negative consequences concern the future of this trypanosomiasis, mainly in terms of the ecologic and sociopolitical characteristics of the endemic and nonendemic countries.

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. ...

Macroeconomic factors and oil futures prices. A data-rich model

International Nuclear Information System (INIS)

Zagaglia, Paolo

2010-01-01

I study the dynamics of oil futures prices in the NYMEX using a large panel dataset that includes global macroeconomic indicators, financial market indices, quantities and prices of energy products. I extract common factors from the panel data series and estimate a Factor-Augmented Vector Autoregression for the maturity structure of oil futures prices. I find that latent factors generate information that, once combined with that of the yields, improves the forecasting performance for oil prices. Furthermore, I show that a factor correlated to purely financial developments contributes to the model performance, in addition to factors related to energy quantities and prices. (author)

Decoupling the Oil and Gas Prices. Natural Gas Pricing in the Post-Financial Crisis Market

International Nuclear Information System (INIS)

Kanai, Miharu

2011-01-01

This paper looks into natural gas pricing in the post-financial crisis market and, in particular, examines the question whether the oil-linked gas pricing system has outlived its utility as global gas markets mature and converge more rapidly than expected and as large new resources of unconventional gas shift the gas terms-of-trade. Two opposing natural gas pricing systems have coexisted for the last two decades. On the one hand, there is traditional oil-linked pricing, used in pipeline gas imports by Continental European countries and in LNG imports by the countries in Far East. The other is the system led by futures exchanges in deregulated, competitive markets largely in the UK and the US. World gas markets are changing and the basis and mechanisms of price formation are changing with them. There is no reason to expect a revolution in gas pricing, but formulas designed to address the challenges of the 1970's will need to adjust to the realities of the present and expectations for the 21. century. Because such changes will imply a redistribution of costs and benefits, vested shareholders will defend the status quo. But hopefully and ultimately, appropriately regulated markets will assert themselves and shareholders along the entire value chain will have their interests served

Canadian natural gas price debate

International Nuclear Information System (INIS)

Wight, G.

1998-01-01

Sunoco Inc. is a subsidiary of Suncor Energy, one of Canada's largest integrated energy companies having total assets of $2.8 billion. As one of the major energy suppliers in the country, Sunoco Inc has a substantial stake in the emerging trends in the natural gas industry, including the Canadian natural gas price debate. Traditionally, natural gas prices have been determined by the number of pipeline expansions, weather, energy supply and demand, and storage levels. In addition to all these traditional factors which still apply today, the present day natural gas industry also has to deal with deregulation, open competition and the global energy situation, all of which also have an impact on prices. How to face up to these challenges is the subject of this discourse. tabs., figs

Recent Global Food Price Shocks: Causes, Consequences and Lessons for African Governments and Donors-super- †

OpenAIRE

Philip Abbott; Adeline Borot de Battisti

2011-01-01

Dramatic increases in international agricultural commodity prices began in 2006 and peaked in July 2008. An equally remarkable and rapid decline of those prices then ensued, accompanied by extreme volatility in those prices. The trend in food prices lagged the rapid increases in other commodity prices, including oil and metals, but accompanied those other prices in the downward part of the cycle. Not all agricultural commodities increased to the same extent—grains and oilseed prices increased...

Exotic Options: a Chooser Option and its Pricing

Directory of Open Access Journals (Sweden)

Raimonda Martinkutė-Kaulienė

2012-12-01

Full Text Available Financial instruments traded in the markets and investors’ situation in such markets are getting more and more complex. This leads to more complex derivative structures used for hedging that are harder to analyze and which risk is harder managed. Because of the complexity of these instruments, the basic characteristics of many exotic options may sometimes be not clearly understood. Most scientific studies have been focused on developing models for pricing various types of exotic options, but it is important to study their unique characteristics and to understand them correctly in order to use them in proper market situations. The paper examines main aspects of options, emphasizing the variety of exotic options and their place in financial markets and risk management process. As the exact valuation of exotic options is quite difficult, the article deals with the theoretical and practical aspects of pricing of chooser options that suggest a broad range of usage and application in different market conditions. The calculations made in the article showed that the price of the chooser is closely correlated with the choice time and low correlated with its strike price. So the first mentioned factor should be taken into consideration when making appropriate hedging and investing decisions.

U.S. Residential Photovoltaic (PV) System Prices, Q4 2013 Benchmarks: Cash Purchase, Fair Market Value, and Prepaid Lease Transaction Prices

Energy Technology Data Exchange (ETDEWEB)

Davidson, C.; James, T. L.; Margolis, R.; Fu, R.; Feldman, D.

2014-10-01

The price of photovoltaic (PV) systems in the United States (i.e., the cost to the system owner) has dropped precipitously in recent years, led by substantial reductions in global PV module prices. This report provides a Q4 2013 update for residential PV systems, based on an objective methodology that closely approximates the book value of a PV system. Several cases are benchmarked to represent common variation in business models, labor rates, and module choice. We estimate a weighted-average cash purchase price of $3.29/W for modeled standard-efficiency, polycrystalline-silicon residential PV systems installed in the United States. This is a 46% decline from the 2013-dollar-adjusted price reported in the Q4 2010 benchmark report. In addition, this report frames the cash purchase price in the context of key price metrics relevant to the continually evolving landscape of third-party-owned PV systems by benchmarking the minimum sustainable lease price and the fair market value of residential PV systems.

Phosphate rock costs, prices and resources interaction.

Science.gov (United States)

Mew, M C

2016-01-15

This article gives the author's views and opinions as someone who has spent his working life analyzing the international phosphate sector as an independent consultant. His career spanned two price hike events in the mid-1970's and in 2008, both of which sparked considerable popular and academic interest concerning adequacy of phosphate rock resources, the impact of rising mining costs and the ability of mankind to feed future populations. An analysis of phosphate rock production costs derived from two major industry studies performed in 1983 and 2013 shows that in nominal terms, global average cash production costs increased by 27% to $38 per tonne fob mine in the 30 year period. In real terms, the global average cost of production has fallen. Despite the lack of upward pressure from increasing costs, phosphate rock market prices have shown two major spikes in the 30 years to 2013, with periods of less volatility in between. These price spike events can be seen to be related to the escalating investment cost required by new mine capacity, and as such can be expected to be repeated in future. As such, phosphate rock price volatility is likely to have more impact on food prices than rising phosphate rock production costs. However, as mining costs rise, recycling of P will also become increasingly driven by economics rather than legislation. Copyright © 2015 Elsevier B.V. All rights reserved.

Intra-day and regime-switching dynamics in electricity price formation

International Nuclear Information System (INIS)

Karakatsani, Nektaria V.; Bunn, Derek W.

2008-01-01

This paper analyses the complex, non-linear effects of spot price drivers in wholesale electricity markets: their intra-day dynamics and transient irregularities. The context is the UK market, after the reforms introduced in March 2001, analysed with an original set of price drivers reflecting economic, technical, strategic, risk, behavioural and market design effects. Models are estimated separately as daily time-series of the 48 half-hourly trading periods. All coefficients exhibit substantial intra-day variation, relating to the heterogeneity of operating plants and market design aspects. This reveals a market responding to economic fundamentals and plant operating properties, with learning and emergent financial characteristics, as well as some strategic manipulation of capacity, most effectively exercised by the more flexible plants. Using regime-switching parameters, the effects of capacity margin and inter-day capacity adjustment are elucidated, suggesting rent-seeking behaviour, despite the relatively low prices at the time. Overall, high-frequency, aggregate fundamental price models can usefully uncover critical aspects of market performance, evolution and agent behaviour. (author)

CONFLICT OF INTERESTS IN TRANSFER PRICING

Directory of Open Access Journals (Sweden)

M. Osvald

2014-09-01

Full Text Available In the conditions of globalization all the companies try to find the effective ways of maximizing their profit. One of the instruments is the system of the transfer pricing that helps to optimize the costs and allocate effective the resources of the company. Transfer pricing has detrimental effect on the economy of countries, though the governments use the regulations to minimize this effect on their economy. In this case the conflict of interests appears. Paper deals with an analysis of the functions and reasons of the economic agents which use the transfer prices to demonstrate the conflict of interests in transfer pricing. The purpose of the study is the determination of the best ways to solve the conflict situations in the process of transfer pricing according to the economic interests of the agents: company and government and within the company: headquarters and subsidiaries. The main point of resolving the conflict between company and government is to make clear regulations of transfer pricing for enterprises and productive relations between company and government. The methods to resolve the conflict within the company are: clear guidelines, decentralization and motivation for stuff members.

The economic and financial crisis: impacts on energy balances and prices

International Nuclear Information System (INIS)

Hyafil, Antoine

2009-01-01

The current economic crisis finds its origin in the existence of a global market for human capital, without unified prices: the development of a debt economy in Western countries can be regarded as an attempt to maintain economic growth in spite of the resulting pressure on labor wages. While the sub-prime crisis has shown the limits of such an attempt, the author believes that debt driven economic growth will continue to prevail in Western countries until price imbalances on the global market for human capital are resolved. This probably implies a substitution of public to private debt, and of private consumption to public investment with the resulting implications on public deficits, supply and demand, and relative prices. Energy prices will be sensitive to public spending's both mechanical impact on economic growth and qualitative impact on energy efficiency

The Dynamic Pricing of Next Generation Consumer Durables

OpenAIRE

Barry L. Bayus

1992-01-01

Learning curve effects, aspects of consumer demand models (e.g., reservation price distributions, intertemporal utility maximizing behavior), and competitive activity are reasons which have been offered to explain why prices of new durables decline over time. This paper presents an alternative rationale based on the buying behavior for products with overlapping replacement cycles (i.e., next generation products). A model for consumer sales of a new durable is developed by incorporating the re...

Optimal core acquisition and pricing strategies for hybrid manufacturing and remanufacturing systems

NARCIS (Netherlands)

Caner Bulmus, Serra; Zhu, Stuart X.; Teunter, Ruud H.

2014-01-01

In this study, we combine two aspects of remanufacturing, namely product acquisition management and marketing (pricing) of the remanufactured products. We consider an original equipment manufacturer (OEM) who decides on the acquisition prices offered for returns from different quality types and on

An Investigation into the Fundamental Drivers of Pricing of Residential Mortgage Products – A Risk Pricing Viewpoint

Directory of Open Access Journals (Sweden)

Harry M Karamujic

2010-12-01

Full Text Available Residential mortgage products (also known as home loans pricing has been long understood to be something of a ‘dark art’, requiring judgment and experience, rather than being an exact science. In the last decade, a lot has changed in this field and more and more lenders, primarily the larger lenders, are increasingly looking to make their pricing as exact as possible. Even so, inadequate pricing of residential mortgage products (in particular its substandard risk pricing has been seen as one of major causes of the global financial crisis (GFC and subsequent spectacular banking collapses. The underlying theme of the paper is to exhibit how contemporary lenders, in practice, price their residential mortgage products. While discussing elements of the pricing calculation particular attention was given to the exposition of how contemporary lenders price risks involved in providing home loans. Because of the importance of Basel capital accords to how financial institutions assess and quantify their risks, the paper provides an overview of Basel capital accords. The author envisages that the paper will (i help enhance comprehension of the underlying elements of the pricing calculation and the ways in which these elements relate to each other, (ii scrutinize how contemporary lenders identify and quantify risks and (iii improve consciousness of future changes in interest rates

7 CFR 1000.50 - Class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Class prices, component prices, and advanced pricing... advanced pricing factors. Class prices per hundredweight of milk containing 3.5 percent butterfat, component prices, and advanced pricing factors shall be as follows. The prices and pricing factors described...

Price transmission in the trans-atlantic northern shrimp value chain

DEFF Research Database (Denmark)

Nielsen, Max; Ankamah-Yeboah, Isaac; Staahl, Lisa

2018-01-01

affect northern shrimp fisheries. In this paper, price transmission in the trans-Atlantic northern shrimp value chain is analysed using a Vector Auto Regressive model in Error Correction form. Cointegration, the Law of One Price (LOP) and weak exogeneity are tested. The results reveal linkages from......Recent research has found that markets for farmed shrimp and wild-caught northern shrimp in Europe are integrated, indicating that northern shrimp prices are affected by total supply and demand of shrimp. Thus, the continued growth of global aquaculture production and associated price decline...

Nonlinear price impact from linear models

Science.gov (United States)

Patzelt, Felix; Bouchaud, Jean-Philippe

2017-12-01

The impact of trades on asset prices is a crucial aspect of market dynamics for academics, regulators, and practitioners alike. Recently, universal and highly nonlinear master curves were observed for price impacts aggregated on all intra-day scales (Patzelt and Bouchaud 2017 arXiv:1706.04163). Here we investigate how well these curves, their scaling, and the underlying return dynamics are captured by linear ‘propagator’ models. We find that the classification of trades as price-changing versus non-price-changing can explain the price impact nonlinearities and short-term return dynamics to a very high degree. The explanatory power provided by the change indicator in addition to the order sign history increases with increasing tick size. To obtain these results, several long-standing technical issues for model calibration and testing are addressed. We present new spectral estimators for two- and three-point cross-correlations, removing the need for previously used approximations. We also show when calibration is unbiased and how to accurately reveal previously overlooked biases. Therefore, our results contribute significantly to understanding both recent empirical results and the properties of a popular class of impact models.

Crude prices - is OPEC relevant?

International Nuclear Information System (INIS)

Verleger, P.K. Jr.

1994-01-01

Oil-exporting nations are in deep trouble. A global recession is suppressing consumption growth and frustrating exporter attempts to boost prices. Future prospects for oil exporters appear even bleaker. New production from several satellites of the former Soviet Union (FSU) will reach the market within a few years, limiting the increase in OPEC scales, and the FSU's incremental output will be augmented by much larger exports from Iraq. An oil price surge resulting from turmoil in Nigeria will, ironically, only serve to emphasize OPEC's loss of influence. When a cartel-like organization breaks down, the result is usually lower and more volatile prices, and so political or physical production disruptions have a greater impact on volumes supplied. In the future, these disruptions will occur more often because of the worsening financial situation in exporting countries. (author)

Explaining crude oil prices using fundamental measures

International Nuclear Information System (INIS)

Coleman, Les

2012-01-01

Oil is the world's most important commodity, and improving the understanding of drivers of its price is a longstanding research objective. This article analyses real oil prices during 1984–2007 using a monthly dataset of fundamental and market parameters that cover financial markets, global economic growth, demand and supply of oil, and geopolitical measures. The innovation is to incorporate proxies for speculative and terrorist activity and dummies for major industry events, and quantify price impacts of each. New findings are positive links between oil prices and speculative activity, bond yields, an interaction term incorporating OPEC market share and OECD import dependence, and the number of US troops and frequency of terrorist attacks in the Middle East. Shocks also prove significant with a $6–18 per barrel impact on price for several months. - Highlights: ► Article introduces new variables to the study of oil prices. ► New variables are terrorist incidents and military activity, and oil futures market size. ► Shocks prove important affecting prices by $6–18 per barrel for several months. ► OPEC market influence rises with OECD import dependence.

Local Staple Food Price Indices in the Age of Biofuels

Science.gov (United States)

Brown, Molly E.

2012-01-01

In many poor, food insecure regions, agriculture is a primary source of income and farmers are reliant both on their own production and on purchasing food in the market to feed their families. Large local food price increases over a short time period can be indicative of a deteriorating food security situation and may be the consequence of weather-related food production declines, Dr can simply be the result of price transmission from the international commodity market. Food price indices developed by the United Nations Food and Agriculture Organization (FAO) are used to monitor food price trends at a global level, but largely reflect supply and demand conditions in export markets far from the places where the chronically food insecure live. A much better understanding of how local staple food prices in isolated regions such as West Africa that grow most of the food they eat to better understand the impact of global commodity market transformations on sensitive communities at the margin. This information will also enable improved strategies for these farmers who are extraordinarily sensitive to climate change impacts on agricultural growing conditions.

Transfer prices – a debate amongst multinational companies and tax authorities

Directory of Open Access Journals (Sweden)

Gheorghe MATEI

2017-11-01

Full Text Available Transfer pricing is a topical subject because it has a strong impact on affiliated companies as well as on the countries in which these companies operate. Transfer pricing is one of the most important aspects of international tax, but a practical approach will help to focus on solutions to these problems, solutions that will help countries emerging to address evaluation issues transfer pricing in which is robust and equitable to all parties involved.

Transfer Prices Implication Upon Tax System. The Romanian Experience

Directory of Open Access Journals (Sweden)

Dumiter Florin

2017-06-01

Full Text Available Transfer prices are a top field in financial and legal scientific research and practical activity. Although this research field is still in the beginning, due to its complexity, as well as it’s inter-, multi- and transdisciplinarity, it can be noted that empirical studies, as well as practical researches in economic and legal matters, have intensified. Moreover, this field of transfer prices is in close connection with the area of international double taxation, which shows its international character. In this article we sought a holistic approach to the transfer price phenomenon, dealing with economic and legal technical aspects that we believed are important to emphasise. Without addressing the issue of transfer prices in an exhaustive manner, in this article we presented both the legal and the economic framework of transfer prices in Romania. The added value of this article lies in the approach to transfer prices, both legally and economically.

Looking Through a Social Lens: Conceptualising Social Aspects of Knowledge Management for Global Health Practitioners.

Science.gov (United States)

Limaye, Rupali J; Sullivan, Tara M; Dalessandro, Scott; Jenkins, Ann Hendrix

2017-04-13

Knowledge management plays a critical role in global health. Global health practitioners require knowledge in every aspect of their jobs, and in resource-scarce contexts, practitioners must be able to rely on a knowledge management system to access the latest research and practice to ensure the highest quality of care. However, we suggest that there is a gap in the way knowledge management is primarily utilized in global health, namely, the systematic incorporation of human and social factors. In this paper, we briefly outline the evolution of knowledge management and then propose a conceptualization of knowledge management that incorporates human and social factors for use within a global health context. Our conceptualization of social knowledge management recognizes the importance of social capital, social learning, social software and platforms, and social networks , all within the context of a larger social system and driven by social benefit . We then outline the limitations and discuss future directions of our conceptualization, and suggest how this new conceptualization is essential for any global health practitioner in the business of managing knowledge.

The price of natural gas

International Nuclear Information System (INIS)

Bakhtiari, A.M.S.

2001-01-01

Natural gas used to be a relatively cheap primary energy source, always at a discount to crude oil (on a comparative British thermal unit basis). It gradually evolved into a major resource during the 20th century - reaching a 24 per cent share of global primary energy in 1999. In the year 2000, natural gas prices in the USA rose to unheard-of highs of 10/million US dollars Btu, ushering in a new era, with natural gas at a 120 per cent premium to crude oil. This clearly was a watershed for gas, somehow similar to the 1973-74 watershed for oil prices. And similarly, any return to the status quo-ante looks rather improbable, although a number of experts (alongside the International Energy Agency) still believe the 2000 price 'spike' to have been ''only transitory''. The consequences of higher gas prices (at a level equal to crude oil prices on a Btu basis) will be multifaceted and momentous, altering habits and uses in downstream industries and economic sectors, as well as providing added income for major gas-exporters, such as Russia, Canada and Algeria. Another potential consequence of the 2000 watershed might be to propel US standard prices (such as the 'Henry Hub' spot) to international status and gas price-setter, as the 'WTI spot' became an 'international benchmark' for crude oils in the post-1993 era. For the time being, the equality of gas and oil prices has become the new norm; but, in the longer term, a discount of crude oil relative to natural gas might be envisaged, as the latter is a cleaner fuel and emits less carbon dioxide when used. (author)

Marginal abatement cost curves in general equilibrium: The influence of world energy prices

International Nuclear Information System (INIS)

Klepper, Gernot; Peterson, Sonja

2006-01-01

Marginal abatement cost curves (MACCs) are a favorite instrument to analyze international emissions trading. This paper focuses on the question of how to define MACCs in a general equilibrium context where the global abatement level influences energy prices and in turn national MACCs. We discuss the mechanisms theoretically and then use the CGE model DART for quantitative simulations. The result is, that changes in energy prices resulting from different global abatement levels do indeed affect national MACCs. Also, we compare different possibilities of defining MACCs-of which some are robust against changes in energy prices while others vary considerably. (author)

Incorporating the value of changes in price volatility into cost-benefit analysis-an application to oil prices in the transport sector

Energy Technology Data Exchange (ETDEWEB)

Jensen, Thomas C., E-mail: tcj@transport.dtu.d [Department of Transport, Danish Technical University, Bygningstorvet 116 Vest, 2800 Lyngby (Denmark); Moller, Flemming [National Environmental Research Institute, Box 358, Frederiksborgvej 399, 4000 Roskilde (Denmark)

2010-01-15

This paper contains a tentative suggestion of how to take into account the value of changes in price volatility in real world cost-benefit analyses. Price volatility is an important aspect of security of supply which first of all concerns physical availability, but assuming that consumers are risk averse, security of supply can also be viewed as a matter of avoiding oscillations in consumption originating from volatile prices of for instance oil. When the government makes transport-related choices on behalf of the consumers, the effect on oscillations in general consumption should be included in the policy assessment taking into account the most significant correlations between prices of alternative fuels and between fuel prices and consumption in general. In the present paper, a method of valuing changes in price volatility based on portfolio theory is applied to some very simple transport-related examples. They indicate that including the value of changes in price volatility often makes very little difference to the results of cost-benefit analyses, but more work has to be done on quantifying, among other things, consumers' risk aversion and the background standard deviation in total consumption before firm conclusions can be drawn.

Incorporating the value of changes in price volatility into cost-benefit analysis. An application to oil prices in the transport sector

Energy Technology Data Exchange (ETDEWEB)

Jensen, Thomas C. [Department of Transport, Danish Technical University, Bygningstorvet 116 Vest, 2800 Lyngby (Denmark); Moeller, Flemming [National Environmental Research Institute, Box 358, Frederiksborgvej 399, 4000 Roskilde (Denmark)

2010-01-15

This paper contains a tentative suggestion of how to take into account the value of changes in price volatility in real world cost-benefit analyses. Price volatility is an important aspect of security of supply which first of all concerns physical availability, but assuming that consumers are risk averse, security of supply can also be viewed as a matter of avoiding oscillations in consumption originating from volatile prices of for instance oil. When the government makes transport-related choices on behalf of the consumers, the effect on oscillations in general consumption should be included in the policy assessment taking into account the most significant correlations between prices of alternative fuels and between fuel prices and consumption in general. In the present paper, a method of valuing changes in price volatility based on portfolio theory is applied to some very simple transport-related examples. They indicate that including the value of changes in price volatility often makes very little difference to the results of cost-benefit analyses, but more work has to be done on quantifying, among other things, consumers' risk aversion and the background standard deviation in total consumption before firm conclusions can be drawn. (author)

Incorporating the value of changes in price volatility into cost-benefit analysis. An application to oil prices in the transport sector

International Nuclear Information System (INIS)

Jensen, Thomas C.; Moeller, Flemming

2010-01-01

This paper contains a tentative suggestion of how to take into account the value of changes in price volatility in real world cost-benefit analyses. Price volatility is an important aspect of security of supply which first of all concerns physical availability, but assuming that consumers are risk averse, security of supply can also be viewed as a matter of avoiding oscillations in consumption originating from volatile prices of for instance oil. When the government makes transport-related choices on behalf of the consumers, the effect on oscillations in general consumption should be included in the policy assessment taking into account the most significant correlations between prices of alternative fuels and between fuel prices and consumption in general. In the present paper, a method of valuing changes in price volatility based on portfolio theory is applied to some very simple transport-related examples. They indicate that including the value of changes in price volatility often makes very little difference to the results of cost-benefit analyses, but more work has to be done on quantifying, among other things, consumers' risk aversion and the background standard deviation in total consumption before firm conclusions can be drawn. (author)

Transfer pricing and the Czech tax policy

Directory of Open Access Journals (Sweden)

Veronika Solilová

2010-01-01

Full Text Available The Czech Republic as a small open economy with an extensive network of the international tax treaties for the avoidance of the double taxation prevents from shifting the tax base of the associated enterprises to countries with preferential tax regime through transfer pricing rules. Transfer pricing as one of the important areas of international taxes determines how the profits of the multinational enterprises are split between the jurisdictions in which they operate and which countries get to tax those profits. This situation may affect the global budget of the multinational enterprises and the tax reve­nues of the jurisdictions. This paper is focused on the transfer pricing rules used in the Czech Republic and makes recommendations for the Czech tax policy in this area based on the analysis of the transfer pricing rules in the EU Member States.

AN APPROACH ON LINKS BETWEEN TRANSFER PRICING AND TAX HAVENS

Directory of Open Access Journals (Sweden)

ANDREEA LAVINIA CAZACU (NEAMŢU

2015-10-01

Full Text Available Transfer pricing are the prices at which a company transfers physical goods and intangible property or provides services to affiliated companies. Transfer pricing mechanism is the most frequently used instrument for the transfer of the tax base from countries with high tax to low tax countries. In the context of transfer pricing, all transactions should be made only respecting the principle of market value (Arm’s length principle. Under current conditions, we can say that globalization influences the transfer pricing, because it makes possible to transfer profits from one country to another, by removing state barriers. The expression "transfer pricing" is used as shorthand for multinational corporations to store profits in tax havens and to avoid tax evasion in developed countries. These two terms (transfer pricing and tax havens combined, make the benefits of affiliated groups to grow impressively.

A long-term view of worldwide fossil fuel prices

International Nuclear Information System (INIS)

Shafiee, Shahriar; Topal, Erkan

2010-01-01

This paper reviews a long-term trend of worldwide fossil fuel prices in the future by introducing a new method to forecast oil, natural gas and coal prices. The first section of this study analyses the global fossil fuel market and the historical trend of real and nominal fossil fuel prices from 1950 to 2008. Historical fossil fuel price analysis shows that coal prices are decreasing, while natural gas prices are increasing. The second section reviews previously available price modelling techniques and proposes a new comprehensive version of the long-term trend reverting jump and dip diffusion model. The third section uses the new model to forecast fossil fuel prices in nominal and real terms from 2009 to 2018. The new model follows the extrapolation of the historical sinusoidal trend of nominal and real fossil fuel prices. The historical trends show an increase in nominal/real oil and natural gas prices plus nominal coal prices, as well as a decrease in real coal prices. Furthermore, the new model forecasts that oil, natural gas and coal will stay in jump for the next couple of years and after that they will revert back to the long-term trend until 2018. (author)

Prices and taxes for gasoline and diesel in industrialized countries

International Nuclear Information System (INIS)

Davoust, R.

2008-01-01

This report present a comparative study on the prices and taxes of automotive fuels (gasoline and diesel fuel) in various industrialized countries, members of the OECD organization. Statistics are taken from a publication of the IEA (International Energy Agency), and concern the following fuel categories: regular gasoline, unleaded premium gasoline (SP 95 and SP 98), professional diesel fuel and domestic diesel fuel. It is shown that fuel prices are generally equivalent from one country to another, while taxes make all the difference for the retail final price. Somme global comparisons are also made between US and EU prices

Book prices and monetary issues in Renaissance Europe

Directory of Open Access Journals (Sweden)

Francesco Ammannati

2018-05-01

Full Text Available The difficulties associated with the creation of a large database of book prices include giving effective answers to questions such as how prices were formed during the various steps of the production process (sedimentation of production costs, costs related to the sale or what the nature of the assigned value is (estimated in the case of used books, or  of stock inventories, or the result of special conditions offered to specific customers, etc..  But first it is necessary to reflect on the interpretation given to the figures provided by the heterogeneous documentation which supports  the creation of such a database. The many reference currencies in which these prices are expressed, depending on the monetary area of action of the economic operators (printers, booksellers, customers are likely to confuse and mislead if their exact meaning is not clearly understood. This problem becomes even more urgent when, for example, the primary sources are the private notes of a collector who recorded how much he had paid for a book, or when two different currencies in place  or in time have the same name. This aspect is also crucial in comparing different places and markets. Was the price expressed in money of account or in coined money? In domestic or foreign currency? Is it possible to relate two prices expressed in different currencies? The purpose of this paper is therefore to explore in greater depth some of the economic-monetary aspects of Renaissance Europe in order to help clarify any doubts or misreadings by building a reliable picture of the various types of currency used in Europe between the sixteenth and seventeenth centuries. This is an essential step to subsequently address the possibility of comparing prices expressed in different currencies as they emerged on different markets.

Global experience curves for wind farms

International Nuclear Information System (INIS)

Junginger, M.; Faaij, A.; Turkenburg, W.C.

2005-01-01

In order to forecast the technological development and cost of wind turbines and the production costs of wind electricity, frequent use is made of the so-called experience curve concept. Experience curves of wind turbines are generally based on data describing the development of national markets, which cause a number of problems when applied for global assessments. To analyze global wind energy price development more adequately, we compose a global experience curve. First, underlying factors for past and potential future price reductions of wind turbines are analyzed. Also possible implications and pitfalls when applying the experience curve methodology are assessed. Second, we present and discuss a new approach of establishing a global experience curve and thus a global progress ratio for the investment cost of wind farms. Results show that global progress ratios for wind farms may lie between 77% and 85% (with an average of 81%), which is significantly more optimistic than progress ratios applied in most current scenario studies and integrated assessment models. While the findings are based on a limited amount of data, they may indicate faster price reduction opportunities than so far assumed. With this global experience curve we aim to improve the reliability of describing the speed with which global costs of wind power may decline

Is there transparency in the pricing of medicines in the South African ...

African Journals Online (AJOL)

Recent investigations by the Competition Commission of South Africa (SA) of suspected excessive pricing of cancer medicines in SA by three global pharmaceutical companies have once again drawn attention to increasing medicine pricing transparency and warrant further public debate.

Pricing strategies and levels and their impact on corporate profitability

Directory of Open Access Journals (Sweden)

Deonir De Toni

Full Text Available Abstract Price policy definition is one of the most important decisions in management as it affects corporate profitability and market competitiveness. Despite the importance that prices take in organizations, it appears that this element has not received proper attention by many academics and marketers since it represents, according to estimates, less than 2% of the papers on leading journals in the field. Thus, the aim of this study was to propose and test a theoretical model showing the impacts of pricing policy on corporate profitability. To this end, 150 companies in the metal-mechanic sector situated in the Northeast of Rio Grande do Sul State, Brazil were studied, integrating customer value-based pricing strategies, competition-based pricing strategies and cost-based pricing strategies with price levels (high and low and performance with respect to profitability. The results indicate that the profitability of the surveyed companies is positively affected by value-based pricing strategy and high price levels while it is negatively affected by low price levels. Such findings indicate that pricing policies influence the profitability of organizations and therefore, a more strategic look at the pricing process may constitute one aspect that cannot be overlooked by managers.

Pricing the Services in Dynamic Environment: Agent Pricing Model

Science.gov (United States)

Žagar, Drago; Rupčić, Slavko; Rimac-Drlje, Snježana

New Internet applications and services as well as new user demands open many new issues concerning dynamic management of quality of service and price for received service, respectively. The main goals of Internet service providers are to maximize profit and maintain a negotiated quality of service. From the users' perspective the main goal is to maximize ratio of received QoS and costs of service. However, achieving these objectives could become very complex if we know that Internet service users might during the session become highly dynamic and proactive. This connotes changes in user profile or network provider/s profile caused by high level of user mobility or variable level of user demands. This paper proposes a new agent based pricing architecture for serving the highly dynamic customers in context of dynamic user/network environment. The proposed architecture comprises main aspects and basic parameters that will enable objective and transparent assessment of the costs for the service those Internet users receive while dynamically change QoS demands and cost profile.

The transmission and management of price volatility in food supply chains

NARCIS (Netherlands)

Assefa, Tsion Taye

2016-01-01

The 2006-2011 period has been marked by increased volatility in food an agricultural commodity prices at a global level. In the EU, the continuous liberalization of agricultural markets under the Common Agricultural Policy has led to the exposure of EU agricultural to increasing market price

Electricity pricing: optimal operation and investment by industrial consumers

Energy Technology Data Exchange (ETDEWEB)

Outhred, H.R.; Kaye, R.J.; Sutanto, D.; Manimaran, R.; Bannister, C.H.; Lee, Y.B.

1988-08-01

Ongoing research in the areas of economically efficient electricity pricing and industrial consumer response is described. A new electricity pricing theory is described that incorporates future uncertainty and intertemporal linkages between decisions. It indicates that electricity prices should contain two terms - short-run marginal cost plus a term that reflects how each particular decision is likely to affect future global welfare. A practical implementation using spot prices and forward contracts plus financial instruments for risk sharing and decision coordination is explored, and a procedure for developing long-term pricing policy is considered. The operation of industrial plant has been investigated and models developed to optimize plant behaviour in response to spot prices and forward contracts for electricity. These models are described and results of simulation studies discussed. The economic efficiency and risk sharing advantages of this advanced tariff structure compared with a conventional time-of-use tariff are illustrated.

The impact of oil prices on the banking system in the Gulf Cooperation Council

Directory of Open Access Journals (Sweden)

Padamja Khandelwal

2017-06-01

Full Text Available This paper examines the links between global oil price movements and macroeconomic and financial developments in the Gulf Cooperation Council (GCC. The GCC economies can be adversely affected by low oil prices due to their high dependence on oil and gas exports and macro-financial linkages which can amplify the effects of oil price movements over the financial cycle. Historically, systemic financial sector risks rose in the GCC countries with the oil price upswing in the years before the global financial crisis. Against this background, a range of multivariate panel approaches, including a panel vector autoregression approach, were applied to macroeconomic and bank-level data covering the six GCC economies and span 1999–2014. The paper finds strong empirical evidence of feedback loops between oil price movements, bank balance sheets, and asset prices. Empirical evidence also suggests that bank capital and provisioning have behaved countercyclically through the cycle. That is, these ratios increase during good times. This has helped strengthen the resilience of the financial system to the oil price decline since mid-2014.

"Price-quakes" shaking the world's stock exchanges.

Directory of Open Access Journals (Sweden)

Jørgen Vitting Andersen

Full Text Available BACKGROUND: Systemic risk has received much more awareness after the excessive risk taking by major financial instituations pushed the world's financial system into what many considered a state of near systemic failure in 2008. The IMF for example in its yearly 2009 Global Financial Stability Report acknowledged the lack of proper tools and research on the topic. Understanding how disruptions can propagate across financial markets is therefore of utmost importance. METHODOLOGY/PRINCIPAL FINDINGS: Here, we use empirical data to show that the world's markets have a non-linear threshold response to events, consistent with the hypothesis that traders exhibit change blindness. Change blindness is the tendency of humans to ignore small changes and to react disproportionately to large events. As we show, this may be responsible for generating cascading events--pricequakes--in the world's markets. We propose a network model of the world's stock exchanges that predicts how an individual stock exchange should be priced in terms of the performance of the global market of exchanges, but with change blindness included in the pricing. The model has a direct correspondence to models of earth tectonic plate movements developed in physics to describe the slip-stick movement of blocks linked via spring forces. CONCLUSIONS/SIGNIFICANCE: We have shown how the price dynamics of the world's stock exchanges follows a dynamics of build-up and release of stress, similar to earthquakes. The nonlinear response allows us to classify price movements of a given stock index as either being generated internally, due to specific economic news for the country in question, or externally, by the ensemble of the world's stock exchanges reacting together like a complex system. The model may provide new insight into the origins and thereby also prevent systemic risks in the global financial network.

"Price-quakes" shaking the world's stock exchanges.

Science.gov (United States)

Andersen, Jørgen Vitting; Nowak, Andrzej; Rotundo, Giulia; Parrott, Lael; Martinez, Sebastian

2011-01-01

Systemic risk has received much more awareness after the excessive risk taking by major financial instituations pushed the world's financial system into what many considered a state of near systemic failure in 2008. The IMF for example in its yearly 2009 Global Financial Stability Report acknowledged the lack of proper tools and research on the topic. Understanding how disruptions can propagate across financial markets is therefore of utmost importance. Here, we use empirical data to show that the world's markets have a non-linear threshold response to events, consistent with the hypothesis that traders exhibit change blindness. Change blindness is the tendency of humans to ignore small changes and to react disproportionately to large events. As we show, this may be responsible for generating cascading events--pricequakes--in the world's markets. We propose a network model of the world's stock exchanges that predicts how an individual stock exchange should be priced in terms of the performance of the global market of exchanges, but with change blindness included in the pricing. The model has a direct correspondence to models of earth tectonic plate movements developed in physics to describe the slip-stick movement of blocks linked via spring forces. We have shown how the price dynamics of the world's stock exchanges follows a dynamics of build-up and release of stress, similar to earthquakes. The nonlinear response allows us to classify price movements of a given stock index as either being generated internally, due to specific economic news for the country in question, or externally, by the ensemble of the world's stock exchanges reacting together like a complex system. The model may provide new insight into the origins and thereby also prevent systemic risks in the global financial network.

Economic Exposure to Oil Price Shocks and the Fragility of Oil-Exporting Countries

Directory of Open Access Journals (Sweden)

Toon Vandyck

2018-04-01

Full Text Available From a price range between 100 and 120 USD (U.S. dollars per barrel in 2011–2014, the crude oil price fell from mid-2014 onwards, reaching a level of 26 USD per barrel in January 2016. Here we assess the economic consequences of this strong decrease in the oil price. A retrospective analysis based on data of the past 25 years sheds light on the vulnerability of oil-producing regions to the oil price volatility. Gross domestic product (GDP and government revenues in many Gulf countries exhibit a strong dependence on oil, while more diversified economies improve resilience to oil price shocks. The lack of a sovereign wealth fund, in combination with limited oil reserves, makes parts of Sub-Saharan Africa particularly vulnerable to sustained periods of low oil prices. Next, we estimate the macroeconomic impacts of a 60% oil price drop for all regions in the world. A numerical simulation yields a global GDP increase of roughly 1% and illustrates how the regional impact on GDP relates to oil export dependence. Finally, we reflect on the broader implications (such as migration flows of macroeconomic responses to oil prices and look ahead to the challenge of structural change in a world committed to limiting global warming.

High oil prices are here to stay

International Nuclear Information System (INIS)

Toennesen, Bjoern Inge

2004-01-01

The presentation discusses the development in the OPEC countries with emphasis on oil price fluctuation, spare production capacity and OPEC control. The capacity expansion in non-OPEC countries and the global demand development are also surveyed. (tk)

The global and Canadian energy outlook

International Nuclear Information System (INIS)

Stewart, M.J.

2006-01-01

The global energy situation is rapidly changing. Global oil and gas trade is increasing, in an environment of rising prices, higher costs, greater environmental concerns, and growing security uncertainties. While predictions of shortages through depletion of oil and gas reserves are unfounded, the world must adapt to higher prices and changing trade patterns, as conventional reserves are increasingly being replaced un-conventional resources. Canada, drawing upon its vast natural resources and technological innovation, is positioned to be an even more important global energy leader in the 21st century. (author)

Internalising externalities of energy use through price mechanism: a developing country perspective

International Nuclear Information System (INIS)

Bhattacharyya, S.C.

1995-01-01

As concern grows about the environmental aspect of energy use, it is increasingly suggested in recent years that energy pricing should take negative externalities of energy use into account. A large body of literature, both theoretical and applied, has grown up over the years proposing a variety of options and methods for internalising environmental costs. However, most of these theories and methods, developed in the industrialised countries, have hitherto neglected two aspects of developing economies: the existence of informal sector in the economy and widespread use of traditional energies. This paper discusses the issues related to internalising environmental costs through price mechanism when these two aspects are included. It also calls for a more careful analysis of energy and environmental policies. (author)

Oil Market and Prices Prospects for 2014

Directory of Open Access Journals (Sweden)

Mariana Papatulica

2013-10-01

Full Text Available The international crude oil prices started the year 2014 within parameters comparable to those of the precedent year: WTI (USA recorded 92 $/barrel, on the American spot market, considered a minimum value for the last 5 weeks, while Brent (Great Britain had a more stable evolution, on the spot Rotterdam market, staying around a value of 107,50 $/barrel. Despite analysts’ forecasts, which during the last 3 years staked on a lower oil price, as a consequence of the spectacular increase in non-OPEC oil production, namely of shale oil, the international oil price, namely that of Brent, closed each of the last 3 years around the same level, of 108 $/barrel. As for 2014, the great majority of oil analysts estimates again a decline of oil prices, as a result of a significant rise of oil offer globally, which will greatly surpass the demand rise.

Oil Prices and the Renewable Energy Sector

OpenAIRE

Kyritsis, Evangelos; Serletis, Apostolos

2017-01-01

Energy security, climate change, and growing energy demand issues are moving up on the global political agenda, and contribute to the rapid growth of the renewable energy sector. In this paper we investigate the effects of oil price shocks, and also of uncertainty about oil prices, on the stock returns of clean energy and technology companies. In doing so, we use monthly data that span the period from May 1983 to December 2016, and a bivariate structural VAR model that is modified to accommod...

Sellers to dominate price talks?

International Nuclear Information System (INIS)

McLean, A.

2000-01-01

The last decade has been a sad one for coal exporters with only two price increases going the sellers' way, one in 1995 and the other in 1996. True, the financial hardships imposed upon the miners have resulted in improvements in all aspects of the coal chain. Mine productivity as measured in tonnes of output per employee is up, while rail and port charges and even, albeit at more modest levels, government charges, are down. However there is a widespread viewpoint that this will be the year of the price rise and, potentially, a big one. The difference in the forthcoming coal negotiations with the Japanese buyers is that, this time, the tightness of the market, both in coking and thermal coal, is demand driven

Philosophical Aspects of Global Environmental Issues

Science.gov (United States)

Lazutinaa, Tatyana V.; Baksheev, Vladimir N.

2016-01-01

The relevance of this paper is determined by understanding of global environmental problems in the context of social ecology. The purpose of this paper is the analysis of main modern environmental global problems created by the equipment representing a public and social basis for the practical transformation of public relations and also the…

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

7 CFR 1124.50 - Class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Class prices, component prices, and advanced pricing factors. 1124.50 Section 1124.50 Agriculture Regulations of the Department of Agriculture (Continued... prices, and advanced pricing factors. See § 1000.50. ...

7 CFR 1030.50 - Class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Class prices, component prices, and advanced pricing factors. 1030.50 Section 1030.50 Agriculture Regulations of the Department of Agriculture (Continued... prices, and advanced pricing factors. See § 1000.50. ...

Global Mapping of Provisioning Ecosystem Services

Science.gov (United States)

Bingham, Lisa; Straatsma, Menno; Karssenberg, Derek

2016-04-01

Attributing monetary value to ecosystem services for decision-making has become more relevant as a basis for decision-making. There are a number of problematic aspects of the calculations, including consistency of economy represented (e.g., purchasing price, production price) and determining which ecosystem subservices to include in a valuation. While several authors have proposed methods for calculating ecosystem services and calculations are presented for global and regional studies, the calculations are mostly broken down into biomes and regions without showing spatially explicit results. The key to decision-making for governments is to be able to make spatial-based decisions because a large spatial variation may exist within a biome or region. Our objective was to compute the spatial distribution of global ecosystem services based on 89 subservices. Initially, only the provisioning ecosystem service category is presented. The provisioning ecosystem service category was calculated using 6 ecosystem services (food, water, raw materials, genetic resources, medical resources, and ornaments) divided into 41 subservices. Global data sets were obtained from a variety of governmental and research agencies for the year 2005 because this is the most data complete and recent year available. All data originated either in tabular or grid formats and were disaggregated to 10 km cell length grids. A lookup table with production values by subservice by country were disaggregated over the economic zone (either marine, land, or combination) based on the spatial existence of the subservice (e.g. forest cover, crop land, non-arable land). Values express the production price in international dollars per hectare. The ecosystem services and the ecosystem service category(ies) maps may be used to show spatial variation of a service within and between countries as well as to specifically show the values within specific regions (e.g. countries, continents), biomes (e.g. coastal, forest

Gas prices and price process

International Nuclear Information System (INIS)

Groenewegen, G.G.

1992-01-01

On a conference (Gas for Europe in the 1990's) during the Gasexpo '91 the author held a speech of which the Dutch text is presented here. Attention is paid to the current European pricing methods (prices based on the costs of buying, transporting and distributing the natural gas and prices based on the market value, which is deducted from the prices of alternative fuels), and the transparency of the prices (lack of information on the way the prices are determined). Also attention is paid to the market signal transparency and gas-gas competition, which means a more or less free market of gas distribution. The risks of gas-to-gas competition for a long term price stability, investment policies and security of supply are discussed. Opposition against the Third Party Access (TPA), which is the program to implement gas-to-gas competition, is caused by the fear of natural gas companies for lower gas prices and lower profits. Finally attention is paid to government regulation and the activities of the European Commission (EC) in this matter. 1 fig., 6 ills., 1 tab

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.

Price trends and project viability

International Nuclear Information System (INIS)

Olsen, W.H.

1999-01-01

The paper discusses some of the remarkable changes that have occurred in the oil and gas industry over about the past 25 years. In the past ten years alone, technology and politics have brought new ways of working together and the recovery of resources once thought of as impossible. Cooperation appears to be a key word. The paper was presented under the sub-headings of the environment, global energy outlook, technological drivers and the challenge ahead. The current low price of oil will inevitably slow down exploration and field development but the author remains optimistic despite the tough challenges. The paper contains many diagrams relating to production, costs, efficiency, exploration, reserves, price forecasts and exploration technology

Non-Price Competition in the Port Sector: A Case Study of Ports in Turkey

Directory of Open Access Journals (Sweden)

Soner Esmer

2016-03-01

Full Text Available Although the port sector has been facing increasing competition, there is limited research on how ports compete using non-price competition strategies. There are a few studies on non-price competition in the port sector. However they mainly focus on the marketing aspect. This paper seeks to fill this gap in the literature, especially from a combined marketing-economic perspective. Especially the paper's main objective is to identify the determinants of non-price competition in the port sector and evaluate their effect on various aspects of non-price competition. We start with a general conceptual framework to explain how competition in the sector can be affected by various factors and then propose an analytical framework on non-price competition. The analytical model is then used to support the design of a survey questionnaire. Next, hypothesis tests are conducted using exploratory factor analysis (EFA and structural equation modeling (SEM and data collected from a survey of Turkish ports. Based on the analysis results, the implications for port management and future research are also discussed.

Understanding gasoline pricing in Canada

International Nuclear Information System (INIS)

Anon.

2001-01-01

Pricing policies for gasoline by Canadian oil companies are discussed. An attempt is made to demonstrate that competition between oil companies is extremely keen, and markups are so small that to stay in business, retail outlets have to sell huge volumes and sell non-fuel products, as a means to increase revenues and margins. An explanation is provided for why gasoline prices move in unison, and why what appears to the public as collusion and gouging is, in fact, the result of retail dealers attempting to stay in business. The high prices are attributed mainly to taxes by municipalities, the provinces and the federal government; taxes are said to account for 40 to 50 per cent of the pump price. The cost of crude makes up another 35 to 45 per cent, refining adds 10 to 15 per cent, with the remaining 5 to 10 per cent representing retail costs. (Taxes in the United States average 20 to 30 per cent). Over the longer term, gasoline prices consistently reflect the cost of crude oil, dominated by the OPEC countries which supply about 41 per cent of daily world production. Another factor is the rise of global and regional commodity markets for refined products such as gasoline. Commodity traders buy wholesale gasoline cheaply whenever it is in oversupply, and sell it for a profit into markets where the demand is greater. While this is claimed to ensure competitive prices in all markets, the practice can also trigger abrupt changes in regional markets

Risks, prices, and positions: A social network analysis of illegal drug trafficking in the world-economy.

Science.gov (United States)

Boivin, Rémi

2014-03-01

Illegal drug prices are extremely high, compared to similar goods. There is, however, considerable variation in value depending on place, market level and type of drugs. A prominent framework for the study of illegal drugs is the "risks and prices" model (Reuter & Kleiman, 1986). Enforcement is seen as a "tax" added to the regular price. In this paper, it is argued that such economic models are not sufficient to explain price variations at country-level. Drug markets are analysed as global trade networks in which a country's position has an impact on various features, including illegal drug prices. This paper uses social network analysis (SNA) to explain price markups between pairs of countries involved in the trafficking of illegal drugs between 1998 and 2007. It aims to explore a simple question: why do prices increase between two countries? Using relational data from various international organizations, separate trade networks were built for cocaine, heroin and cannabis. Wholesale price markups are predicted with measures of supply, demand, risks of seizures, geographic distance and global positioning within the networks. Reported prices (in $US) and purchasing power parity-adjusted values are analysed. Drug prices increase more sharply when drugs are headed to countries where law enforcement imposes higher costs on traffickers. The position and role of a country in global drug markets are also closely associated with the value of drugs. Price markups are lower if the destination country is a transit to large potential markets. Furthermore, price markups for cocaine and heroin are more pronounced when drugs are exported to countries that are better positioned in the legitimate world-economy, suggesting that relations in legal and illegal markets are directed in opposite directions. Consistent with the world-system perspective, evidence is found of coherent world drug markets driven by both local realities and international relations. Copyright © 2013 Elsevier B

The development of a value based pricing index for new drugs in metastatic colorectal cancer

OpenAIRE

Lubbe, Martha Susanna; Dranitsaris, George; Truter, Ilse

2011-01-01

Background Worldwide, prices for cancer drugs have been under downward pressure where several governments have mandated price cuts of branded products. A better alternative to government mandated price cuts would be to estimate a final price based on drug performance, cost effectiveness and a country’s ability to pay. We developed a global pricing index for new cancer drugs in patients with metastatic colorectal cancer (mCRC) that encompasses all of these attributes. Methods ...

Measuring Regional Price Levels in the Czech Republic

Directory of Open Access Journals (Sweden)

Jiří Mrázek

2017-09-01

Full Text Available Regional price level comparison in the Czech Republic was a topic not touched until recently. Then a team of researchers from the University of Economics in Prague pioneered the way for NUTS 3 regions for the year 2007 and repeatedly in 2012. Another step to establish more reliable results came together with a research team of the Technical University in Liberec, which brought qualitatively new and well advanced approaches. This article aims to discuss some aspects of the two attempts to establish regional price level compariso in the Czech Republic.

Performance Analysis of Indonesia’s Mining Sector Price Index

Directory of Open Access Journals (Sweden)

Hastra Reza Satyatama

2017-07-01

Full Text Available Subprime mortage’s crisis in United States 2008 giving effect to the global capital markets especially the stock price index of the mining sector Indonesia. This research analyzes the effect of BI Rate, exchange rate, world gold price, crude oil price, and Dow Jones Industrial Average on the stock price index of the mining sector. This research employs time series monthly data of 2009-2016 with Error Correction Model-Engle Granger (ECM-EG as the method. The analysis showed that the BI rate, exchange rate and world gold price, has a negative and significant effect. World oil prices affect positively but not significant meanwhile the Dow Jones Industrial Average has a positive and significant impact on the stock price index of the mining sector. For investors in the mining sector, should pay attention to the exchange rate of the rupiah and Dow Jones Index significantly in the mining sector of the stock price index.DOI: 10.15408/sjie.v6i2.5395 

Russian oil prices: courting the world market

International Nuclear Information System (INIS)

Khartukov, E.M.

1995-01-01

The export and oil pricing of Russian crude was discussed. Russian crude and oil product exports are not yet wholly competitive with world oil markets. It was suggested that to do so, would be neither desirable nor actually possible at present. The reason for this is related to Russia's export duties regime and Russia's trade with its neighbouring countries which include the former Soviet republics. In the first half of 1995, the average border price of crude destined for those countries was US$75.04/tonne as opposed to US$114.77/tonne for crude exported to 'far-abroad', hard-currency markets. A breakdown of Russia's export duties for liquid fuels and a typical breakdown of export and domestic prices for Russian oil was provided. Russian crude is considerably under-priced mainly because of the poor state of the national refining industry which is in need of radical modernization. It was suggested that instead of globalization, it would be more appropriate to redirect the priorities of Russian energy policy towards defining optimal use of Russia's available energy potential, and rationalizing its domestic price structure first, which is the root cause of the national price problem. 5 refs., 5 tabs., 2 figs

Macroeconomic impacts of oil price shocks in Asian economies

International Nuclear Information System (INIS)

Cunado, Juncal; Jo, Soojin; Perez de Gracia, Fernando

2015-01-01

This paper analyzes the macroeconomic impact of structural oil shocks in four of the top oil-consuming Asian economies, using a VAR model. We identify three different structural oil shocks via sign restrictions: an oil supply shock, an oil demand shock driven by global economic activity and an oil-specific demand shock. The main results suggest that economic activity and prices respond very differently to oil price shocks depending on their types. In particular, an oil supply shock has a limited impact, while a demand shock driven by global economic activity has a significant positive effect in all four Asian countries examined. Our finding also includes that policy tools such as interest rates and exchange rates help mitigating the effects of supply shocks in Japan and Korea; however, they can be more actively used in response to demands shocks. - Highlights: • We analyze the effects of three structural oil price shocks on Asian economies. • Supply shocks have limited impact on the economic activity of Asian economies examined. • Demand shocks due to economic activity boosts GDP of all economies. • CPIs in India and Indonesia were only marginally affected by oil price shocks. • Monetary and exchange rate tools help mitigating supply shocks in Korea and Japan.

Do national drug policies influence antiretroviral drug prices? Evidence from the Southern African Development community.

Science.gov (United States)

Liu, Yao; Galárraga, Omar

2017-03-01

The efficacy of low- and middle-income countries’ (LMIC) national drug policies in managing antiretroviral (ARV) pharmaceutical prices is not well understood. Though ARV drug prices have been declining in LMIC over the past decade, little research has been done on the role of their national drug policies. This study aims to (i) analyse global ARV prices from 2004 to 2013 and (ii) examine the relationship of national drug policies to ARV prices. Analysis of ARV drug prices utilized data from the Global Price Reporting Mechanism from the World Health Organization (WHO). Ten of the most common ARV drugs (first-line and second-line) were selected. National drug policies were also assessed for 12 countries in the South African Development Community (SADC), which self-reported their policies through WHO surveys. The best predictor of ARV drug price was generic status—the generic versions of 8 out of 10 ARV drugs were priced lower than branded versions. However, other factors such as transaction volume, HIV prevalence, national drug policies and PEPFAR/CHAI involvement were either not associated with ARV drug price or were not consistent predictors of price across different ARV drugs. In the context of emerging international trade agreements, which aim to strengthen patent protections internationally and potentially delay the sale of generic drugs in LMIC, this study shines a spotlight on the importance of generic drugs in controlling ARV prices. Further research is needed to understand the impact of national drug policies on ARV prices.

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

THE MODEL CONSTRUCTIONS OF PRICE FORMING OF BUILDING MATERIALS MANUFACTURE IN BASHKORTOSTAN

Directory of Open Access Journals (Sweden)

H.N. Gizatullin

2007-06-01

Full Text Available In this work attempt has been done analyze the influence of the environmental factors, as outward, as inside to choice of the strategy and the pricing of the industry of the building materials of Bashkortostan. This article examines the competitive surroundings of enterprises and branches in a aspect of the regional market of the building industry’s production. The evaluation of the compatibility is given of the price and competitive strategy. As a result of the research and pricing majority of industry’s enterprises had no official document stating their per pose in a pricing area. In reason of analysis the general situation of the industry building materials the enterprises of Bashkortostan, the conception of pricing is determined on functional level.

The oil market. Call on OPEC determines the oil price

International Nuclear Information System (INIS)

Kingma, D.; Mulder, M.

2001-01-01

Several scenarios are applied to determine the oil price for the medium-long term, based on the so-called 'call on OPEC'. The 'call on OPEC' is part of the demand for oil which has to supplied by OPEC. It is expected that the nominal oil price will be circa $24 per barrel in 2004, based on a global growth of 4%. 2 refs

International to domestic price transmission in fourteen developing countries during the 2007-08 food crisis

DEFF Research Database (Denmark)

Baltzer, Kenneth Thomas

-through in China and India, over close relationship between international and domestic prices in Brazil and South Africa, to substantial domestic price overshooting in Ethiopia and Nigeria. Much of this variation can be explained by price stabilization policies, public policy failure, incomplete market integration......This paper synthesizes the evidence on price transmission from international maize, rice and wheat markets to domestic markets in fourteen developing countries during the global food crisis in 2007-08. A great variation in the price transmission patterns is observed; from almost no price pass...

Fundamental aspects affecting the return on investment from solar power plants

International Nuclear Information System (INIS)

Cintula, B.; Viglas, D.

2012-01-01

The article deals with fundamental parameters of solar cells-conversion efficiency of solar radiation into electricity and price of solar cells. These two aspects affect each other, so it is important to deal with both at once. In introduction are described the theoretical solutions about efficiency analysis. Furthermore the article is focused on a description of materials used in the photovoltaic cells. In addition, the article shows the price trend of photovoltaic cells for the last year. Finally, these two aspects are evaluated for return on investment in photovoltaic power plants. (Authors)

Quantifying the global and distributional aspects of American household carbon footprint

International Nuclear Information System (INIS)

Weber, Christopher L.; Matthews, H. Scott

2008-01-01

Analysis of household consumption and its environmental impact remains one of the most important topics in sustainability research. Nevertheless, much past and recent work has focused on domestic national averages, neglecting both the growing importance of international trade on household carbon footprint and the variation between households of different income levels and demographics. Using consumer expenditure surveys and multi-country life cycle assessment techniques, this paper analyzes the global and distributional aspects of American household carbon footprint. We find that due to recently increased international trade, 30% of total US household CO 2 impact in 2004 occurred outside the US. Further, households vary considerably in their CO 2 responsibilities: at least a factor of ten difference exists between low and high-impact households, with total household income and expenditure being the best predictors of both domestic and international portions of the total CO 2 impact. The global location of emissions, which cannot be calculated using standard input-output analysis, and the variation of household impacts with income, have important ramifications for polices designed to lower consumer impacts on climate change, such as carbon taxes. The effectiveness and fairness of such policies hinges on a proper understanding of how income distributions, rebound effects, and international trade affect them. (author)

The nature of oil shocks and the global economy

International Nuclear Information System (INIS)

Archanskaïa, Elizaveta; Creel, Jérôme; Hubert, Paul

2012-01-01

This paper identifies the main driving force behind oil price shocks in 1970–2006 by applying a simple identification strategy of supply-driven and demand-driven price shocks. The identification hypothesis states that supply-driven oil price shocks have a negative impact on the macroeconomic activity of countries, which are net consumers of oil while demand-driven oil price shocks do not have negative effects. In order to identify global demand-driven shocks, a weighted aggregate GDP series of countries, which are net consumers of oil, is constructed over 1970–2006. The key result is that the main driving force behind oil price shocks has changed from supply-driven shocks in 1970–1992 to demand-driven shocks in 1992–2006. - Highlights: ► We characterize the oil–macroeconomy relationship at the global level. ► We identify oil supply and oil demand shocks drawing on a AS/AS model. ► We construct an indicator of global activity for countries net consumers of oil. ► We use Qu-Perron break tests, TVP, Cyclical correlations and VARs. ► We show that the main driving force behind oil price shocks has changed around 1992.

Food irradiation: global aspects

International Nuclear Information System (INIS)

Vinning, G.

1988-01-01

As a commercial activity, food irradiation is twenty years old, but is backed by nearly eighty years of research on gamma irradiation and sixty years knowledge of application of the technology to food. An overview is given of the global boom and then the hiatus in its legislative and commercial applications. It is emphasised that in Australia, the overseas experience provides a number of models for proceeding further for food manufacturers, consumers and Government. 13 refs

7 CFR 1131.53 - Announcement of class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Announcement of class prices, component prices, and advanced pricing factors. 1131.53 Section 1131.53 Agriculture Regulations of the Department of Agriculture... class prices, component prices, and advanced pricing factors. See § 1000.53. ...

7 CFR 1005.53 - Announcement of class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Announcement of class prices, component prices, and advanced pricing factors. 1005.53 Section 1005.53 Agriculture Regulations of the Department of Agriculture... class prices, component prices, and advanced pricing factors. See § 1000.53. ...

7 CFR 1126.53 - Announcement of class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Announcement of class prices, component prices, and advanced pricing factors. 1126.53 Section 1126.53 Agriculture Regulations of the Department of Agriculture... class prices, component prices, and advanced pricing factors. See § 1000.53. ...

7 CFR 1032.53 - Announcement of class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Announcement of class prices, component prices, and advanced pricing factors. 1032.53 Section 1032.53 Agriculture Regulations of the Department of Agriculture... class prices, component prices, and advanced pricing factors. See § 1000.53. ...

7 CFR 1030.53 - Announcement of class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Announcement of class prices, component prices, and advanced pricing factors. 1030.53 Section 1030.53 Agriculture Regulations of the Department of Agriculture... of class prices, component prices, and advanced pricing factors. See § 1000.53. ...

7 CFR 1033.53 - Announcement of class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Announcement of class prices, component prices, and advanced pricing factors. 1033.53 Section 1033.53 Agriculture Regulations of the Department of Agriculture... class prices, component prices, and advanced pricing factors. See § 1000.53. ...

7 CFR 1001.53 - Announcement of class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Announcement of class prices, component prices, and advanced pricing factors. 1001.53 Section 1001.53 Agriculture Regulations of the Department of Agriculture... class prices, component prices, and advanced pricing factors. See § 1000.53. ...

7 CFR 1007.53 - Announcement of class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Announcement of class prices, component prices, and advanced pricing factors. 1007.53 Section 1007.53 Agriculture Regulations of the Department of Agriculture... class prices, component prices, and advanced pricing factors. See § 1000.53. ...

7 CFR 1006.53 - Announcement of class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Announcement of class prices, component prices, and advanced pricing factors. 1006.53 Section 1006.53 Agriculture Regulations of the Department of Agriculture... class prices, component prices, and advanced pricing factors. See § 1000.53. ...

7 CFR 1033.50 - Class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Class prices, component prices, and advanced pricing factors. 1033.50 Section 1033.50 Agriculture Regulations of the Department of Agriculture (Continued..., and advanced pricing factors. See § 1000.50. ...

7 CFR 1005.50 - Class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Class prices, component prices, and advanced pricing factors. 1005.50 Section 1005.50 Agriculture Regulations of the Department of Agriculture (Continued..., and advanced pricing factors. See § 1000.50. ...

7 CFR 1001.50 - Class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Class prices, component prices, and advanced pricing factors. 1001.50 Section 1001.50 Agriculture Regulations of the Department of Agriculture (Continued..., and advanced pricing factors. See § 1000.50. ...

7 CFR 1006.50 - Class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Class prices, component prices, and advanced pricing factors. 1006.50 Section 1006.50 Agriculture Regulations of the Department of Agriculture (Continued..., and advanced pricing factors. See § 1000.50. ...

7 CFR 1126.50 - Class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Class prices, component prices, and advanced pricing factors. 1126.50 Section 1126.50 Agriculture Regulations of the Department of Agriculture (Continued..., and advanced pricing factors. See § 1000.50. ...

7 CFR 1032.50 - Class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Class prices, component prices, and advanced pricing factors. 1032.50 Section 1032.50 Agriculture Regulations of the Department of Agriculture (Continued..., and advanced pricing factors. See § 1000.50. ...

7 CFR 1131.50 - Class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Class prices, component prices, and advanced pricing factors. 1131.50 Section 1131.50 Agriculture Regulations of the Department of Agriculture (Continued..., and advanced pricing factors. See § 1000.50. ...

7 CFR 1007.50 - Class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Class prices, component prices, and advanced pricing factors. 1007.50 Section 1007.50 Agriculture Regulations of the Department of Agriculture (Continued..., and advanced pricing factors. See § 1000.50. ...

7 CFR 1124.53 - Announcement of class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Announcement of class prices, component prices, and advanced pricing factors. 1124.53 Section 1124.53 Agriculture Regulations of the Department of Agriculture... Announcement of class prices, component prices, and advanced pricing factors. See § 1000.53. ...

Utility Green Pricing Programs: Design, Implementation, and Consumer Response

Energy Technology Data Exchange (ETDEWEB)

Bird, L.; Swezey, B.; Aabakken, J.

2004-02-01

The term green pricing refers to programs offered by utilities in traditionally regulated electricity markets, which allow customers to support the development of renewable energy sources by paying a small premium on their electric bills. Since the introduction of the concept in the United States, the number of unique utility green pricing programs has expanded from just a few programs in 1993 to more than 90 in 2002. About 10% of U.S. utilities offered a green pricing option to about 26 million consumers by the end of 2002. This report provides: (1) aggregate industry data on consumer response to utility programs, which indicate the collective impact of green pricing on renewable energy development nationally; and (2) market data that can be used by utilities as a benchmark for gauging the relative success of their green pricing programs. Specifically, the paper presents current data and trends in consumer response to green pricing, as measured by renewable energy sales, participants, participation rates, and new renewable energy capacity supported. It presents data on various aspects of program design and implementation, such as product pricing, ownership of supplies, retention rates, marketing costs, the effectiveness of marketing techniques, and methods of enrolling and providing value to customers.

Fish market prices drive overfishing of the 'big ones'.

Science.gov (United States)

Tsikliras, Athanassios C; Polymeros, Konstantinos

2014-01-01

The relationship between fish market price and body size has not been explored much in fisheries science. Here, the mean market prices and fish body size were collected in order to examine the hypothesis that large fish, both among- and within-species, are being selectively targeted by fisheries because they may yield greater profit. Trophic levels, vulnerability to fishing and global landings were also collected because these variables may also be related to the market fish price. These relationships were examined using generalized additive models (GAM), which showed that, among species, fish market price was positively dependent on maximum total length (P = 0.0024) and negatively on landings (P = 0.0006), whereas it was independent of trophic level (P > 0.05) and vulnerability to fishing (P > 0.05). When the fish price vs. size relationship was tested within-species, large individuals were consistently attaining higher market prices compared to their medium and small-sized counterparts. We conclude that the selective removal of the larger fish, which is driven by their market price and to a lesser extent by their availability, may contribute to their overfishing.

Differential pricing of new pharmaceuticals in lower income European countries.

Science.gov (United States)

Kaló, Zoltán; Annemans, Lieven; Garrison, Louis P

2013-12-01

Pharmaceutical companies adjust the pricing strategy of innovative medicines to the imperatives of their major markets. The ability of payers to influence the ex-factory price of new drugs depends on country population size and income per capita, among other factors. Differential pricing based on Ramsey principles is a 'second-best' solution to correct the imperfections of the global market for innovative pharmaceuticals, and it is also consistent with standard norms of equity. This analysis summarizes the boundaries of differential pharmaceutical pricing for policymakers, payers and other stakeholders in lower-income countries, with special focus on Central-Eastern Europe, and describes the feasibility and implications of potential solutions to ensure lower pharmaceutical prices as compared to higher-income countries. European stakeholders, especially in Central-Eastern Europe and at the EU level, should understand the implications of increased transparency of pricing and should develop solutions to prevent the limited accessibility of new medicines in lower-income countries.

Is there transparency in the pricing of medicines in the South African private sector?

Science.gov (United States)

Bangalee, V; Suleman, F

2018-02-01

Recent investigations by the Competition Commission of South Africa (SA) of suspected excessive pricing of cancer medicines in SA by three global pharmaceutical companies have once again drawn attention to increasing medicine pricing transparency and warrant further public debate.

Foreign exchange risk in terms of global financial crisis

Directory of Open Access Journals (Sweden)

Michał Buszko

2009-12-01

Full Text Available Fx risk is one of the most important types of risk of financial activity. In practice, this risk comprises several risk aspects related to currencies exchanging, however most often it is identified with unexpected changes of their prices. In terms of the global financial crisis of 2007–2009, the fx risk has raised significantly, revealing a high daily volatility, increased spreads and the reversal of long-term exchange rate trends. Such increased risk especially influenced emerging markets economies, including Poland. Its consequence was quick strengthening of Polish currency at the beginning of the global crisis followed by a very sudden fall of its value. This event led to a substantial increase of banking risk, investment funds and corporate operations. It changed the structure of GDP sources as well as generated huge losses for exporting companies, using currency options hedging strategies.

Edgeworth Price Cycles, Cost-Based Pricing, and Sticky Pricing in Retail Gasoline Markets

OpenAIRE

Michael D. Noel

2007-01-01

This paper examines dynamic pricing behavior in retail gasoline markets for 19 Canadian cities over 574 weeks. I find three distinct retail pricing patterns: 1. cost-based pricing, 2. sticky pricing, and 3. steep, asymmetric retail price cycles that, while seldom documented empirically, resemble those of Maskin & Tirole[1988]. Using a Markov switching regression, I estimate the prevalence of patterns and the structural characteristics of the cycles. Retail price cycles prevail in over 40% of ...

Major Aspects of Transformations of International Companies in a Changing World

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Natalia Yurievna Konina

2016-01-01

Full Text Available Economic globalization and demographic changes as well rapidly changing technologies are the most important factors of the firm's environment. The rapid development of information technology radically changes the very essence of the creation of new value. The pace of technological change and innovations increases. In the most advanced sectors of global economy the knowledge is a key resource. The world economy has not finally recovered after the crisis of 2008-2009. The global economy his becoming more multicentre and the vector of economic power is shifting to China and India. The main actors and the anchor of today global economy are leading international companies (transnational corporations- TNCs. Several thousands of TNCs together with their value chain dominate the global economy. The economic power allows the largest TNCs significantly push the boundaries of the company. Globalization has changed external networks of TNCs, their corporate governance, corporate ownership as well transfer pricing schemes as well relations between the headquarter and its subsidiaries and affiliates. A remarkable feature of TNCs recent FDI flows is not Greenfield investment but mergers and acquisitions. Key features of TNC activities are defined by industry. A growing number of TNCs are changing their strategic activities, basing on the latest technology trends. The most important aspects of TNCs activities are linked to innovation, financial operations, advanced management technique, increase in intangible assets. Innovation activity of TNCs is shifting to Asia.

Agricultural Commodity Price Shocks and their Effect on Growth in Sub-Saharan Africa

OpenAIRE

Addison, Tony; Ghoshray, Atanu

2014-01-01

Commodity price shocks are an important type of external shock and are often cited as a problem for economic growth in sub-Saharan Africa. This paper quantifies the impact of agricultural commodity price shocks using a near vector autoregressive model. The novel aspect of this model is that we define an auxiliary variable that can potentially capture the definition of a price shock that allows us to determine whether the response of per capita Gross domestic product (GDP) growth in sub-Sahara...

Price-based control of electrical power systems

NARCIS (Netherlands)

Jokic, A.; Lazar, M.; Bosch, van den P.P.J.; Negenborn, R.R.; Lukszo, Z.; Hellendorn, H.

2010-01-01

In this chapter we present the price-based control as a suitable approach to solve some of the challenging problems facing future, market-based power sys tems. On the example of economically optimal power balance and transmission network congestion control, we present how global objectives and

Competitive Pricing by a Price Leader

OpenAIRE

Abhik Roy; Dominique M. Hanssens; Jagmohan S. Raju

1994-01-01

We examine the problem of pricing in a market where one brand acts as a price leader. We develop a procedure to estimate a leader's price rule, which is optimal given a sales target objective, and allows for the inclusion of demand forecasts. We illustrate our estimation procedure by calibrating this optimal price rule for both the leader and the follower using data on past sales and prices from the mid-size sedan segment of the U.S. automobile market. Our results suggest that a leader-follow...

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

Towards and Effective Financial Management: Relevance of Dividend Discount Model in Stock Price Valuation

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Ana Mugoša

2015-06-01

Full Text Available The aim of this paper is to analyze the relevance of dividend discount model, i.e. its specific form in stock price estimation known as Gordon growth model. The expected dividends can be a measure of cash flows returned to the stockholder. In this context, the model is useful for assessment of how risk factors, such as interest rates and changing inflation rates, affect stock returns. This is especially important in case when investors are value oriented, i.e. when expected dividends are theirmain investing drivers. We compared the estimated with the actual stock price values and tested the statistical significance of price differences in 199 publicly traded European companies for the period2010-2013. Statistical difference between pairs of price series (actual and estimated was tested using Wilcoxon and Kruskal-Wallis tests of median and distribution equality. The hypothesis that Gordon growth model cannot be reliable measure of stock price valuation on European equity market over period of 2010-2013 due to influence of the global financial crisis was rejected with 95% confidence. Gordon growth model has proven to be reliable measure of stock price valuation even over period of strong global financial crisis influence.

Analysis Of Coppers Market And Price-Focus On The Last Decades Change And Its Future Trend

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Eugie Kabwe

2015-08-01

Full Text Available Abstract it is important to analyse the major players within a copper supply chain as well as current market dynamics relevant international guidelines major impacts affecting the sustainability of the whole system and policy drivers affecting its price on the global market. Focusis on understanding major and provisional factors affecting copper price on themarketlong-term copper prices are determined by the fundamentals of supply and demand. Short term however are driven by financial market and other variables. Through analysis of the major factors and present market dynamics global copper consumption increased since 1970 regardless of the economic slump in 2007-2009 growth is likely to continuechiefly driven by increasing demand in China and India. Since 2004 the price of copper on the global market increased drastically its consumption was mainly concentrated in developed industrial countries. The economic situation of developed countries has a greater impact on copper prices addition of Asian nations increased urbanization and industrialization. Forecasts remain progressive asAsia advance with urbanization and industrializationplans. Anticipated to account for a major growth in global copper in the next 20 years will present a large task to double copper supply output. Urbanization and industrialization will continue to surge copper demand projected to overcome global copper production high demandbut lesser supply on the market.The decline of copper supply would cause a mountingdeficit in turn increase demand by 2025. Asias level of economic activity and urbanization is far from complete it will be a chief source of copper demand in the decades to come.

List prices vs. bargain prices: which solution to estimate consumer price indices?

OpenAIRE

Carlo De Gregorio

2010-01-01

Alternative approaches to CPI surveys are here evaluated, in markets where final prices are based on some sort of price listing. Three types of surveys are compared: local surveys (LOC), with small samples and a local price collection; list price surveys (LIS), with huge samples and centralised collection; mixed surveys (MXD), in which LOC and LIS are jointly used. Based on a multiplicative pricing model, some conditions are derived to establish the relative efficiency of these approaches. Th...

Energy at what price? Energy markets

International Nuclear Information System (INIS)

Favennec, J.P.; Amic, E.; Darmois, G.

2006-01-01

In 2005, the whole world had to stand a real energy shock due to the rise of oil, gas and electricity prices. The perspective of a possible shortage, even at the prospect of several decades, has led to a deep change of the world energy market. In this context, this book supplies a clear and didactical presentation of the mechanisms of petroleum, gas and electricity markets, with their advantages and limitations. At the time of a globalization of economy, the book analyzes the consequences of markets deregulation on the energy prices and tries to answer several main questions: why such a price volatility? Who will take the risk of investing now? Will the energy actors of the present day concentration be in a dominating position? Content: 1 - energy, markets and energy markets; 2 - crude oil and petroleum product markets; 3 - gas markets; 4 - electric power markets; 5 - perspectives. Glossary. Index. (J.S.)

Finding the multipath propagation of multivariable crude oil prices using a wavelet-based network approach

Science.gov (United States)

Jia, Xiaoliang; An, Haizhong; Sun, Xiaoqi; Huang, Xuan; Gao, Xiangyun

2016-04-01

The globalization and regionalization of crude oil trade inevitably give rise to the difference of crude oil prices. The understanding of the pattern of the crude oil prices' mutual propagation is essential for analyzing the development of global oil trade. Previous research has focused mainly on the fuzzy long- or short-term one-to-one propagation of bivariate oil prices, generally ignoring various patterns of periodical multivariate propagation. This study presents a wavelet-based network approach to help uncover the multipath propagation of multivariable crude oil prices in a joint time-frequency period. The weekly oil spot prices of the OPEC member states from June 1999 to March 2011 are adopted as the sample data. First, we used wavelet analysis to find different subseries based on an optimal decomposing scale to describe the periodical feature of the original oil price time series. Second, a complex network model was constructed based on an optimal threshold selection to describe the structural feature of multivariable oil prices. Third, Bayesian network analysis (BNA) was conducted to find the probability causal relationship based on periodical structural features to describe the various patterns of periodical multivariable propagation. Finally, the significance of the leading and intermediary oil prices is discussed. These findings are beneficial for the implementation of periodical target-oriented pricing policies and investment strategies.

ASSESSING THE GOVERNANCE FOR COMMODITY PRICE STABILIZATION - A RETROSPECTIVE LOOK

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Pop Larisa Nicoleta

2015-07-01

Full Text Available The volatility of commodity prices has become once again a matter of profound and controversial debates for both political and academic spheres worldwide in the framework of the global economy severely distressed by the recent economic turbulences. Although commodity markets were already notorious for their price instability, the events the world economy experienced in the years 2000s offered new connotations to this phenomenon. In the first decade of this millennium, the commodity markets have struggled with high volatility, with prices reaching historical peaks just to crash dramatically some months later and very soon to restart their rise. The significant increase in volatility generated many debates about its triggering factors, the implications in terms of risk exposure of economic actors, but also the need for reconfiguring regulatory policy frameworks. The quest for the most appropriate means to deal with commodity price turbulences has known different stages over the years. Decision makers worldwide have sought alternatives, formulated and tested various mechanisms whose central aim was to mitigate price fluctuations. Governments formulate and implement consistent regulatory policies whose international coordination is a ‘sine qua non’ condition for stabilizing these markets. However, the turbulences on commodity markets often generate policy responses that sometimes exacerbate rather than mitigate the price instability. The purpose of this paper is to assess the subject of governance regarding commodity price stabilization, offering a retrospective look at the mechanisms implemented over the years, with a central focus on the International Commodity Agreements – instruments through which in the previous decades the producer and consumer governments worldwide pursued price stabilization for some key commodities like sugar, coffee, cocoa, tin and natural rubber. After analyzing the effectiveness of the International Agreements and

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...

Output Price Risk, Material Input Price Risk, and Price Margins: Evidence from the US Catfish Industry.

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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.

Marine alien species as an aspect of global change

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Anna Occhipinti-Ambrogi

2010-06-01

Full Text Available The transport of organisms across oceans is an anthropogenic agent of global change that has profoundly affected the natural distribution of littoral biota and altered the makeup of biogeographic regions. The homogenization of marine biotas is a phenomenon especially affecting coastal regions and is spearheaded by a suite of opportunistic species at the expense of native species. Climate change may exacerbate the trend: sea surface temperatures, hydrodynamics, pH and carbonate cycles, already show marked fluctuations compared to the past. Alien invasive species are impacted by the change of marine climate in a variety of ways, which are we have just begun to notice, observe and interpret. A conceptual framework has yet to be conceived that links theories on biological introductions and invasions with the physical aspects of global change. Therefore predicting the scale of invasions or their impact on biodiversity is a daunting task. Integration of biological and environmental information systems, niche models, and climate projections would improve management of aquatic ecosystems under the dual threats of biotic invasions and climate change. The recorded spread of alien species and analysis of patterns of invasions may serve as the starting point for searching connections with climate change descriptors. The Mediterranean Sea is home to an exceptionally large number of alien species, resulting from its exceptional history and multiple vectors. For much of the twentieth century alien thermophilic species, which had entered the Mediterranean through the Suez Canal, have been confined to the Levantine Basin. In recent years climate driven hydrographic changes have coincided with a pronounced expansion of alien thermophilic biota to the central and western basins of the Mediterranean. We discuss some changes in emergent functions and services in Mediterranean ecosystems under the combined effect of invasive species and climate changes.

Non-Price Competition in the Port Sector: A Case Study of Ports in Turkey

OpenAIRE

Soner Esmer; Hong-Oanh Nguyen, Ph.D.; Yapa Mahinda Bandara, Ph.D.; Kazim Yeni, Ph.D.

2016-01-01

Although the port sector has been facing increasing competition, there is limited research on how ports compete using non-price competition strategies. There are a few studies on non-price competition in the port sector. However they mainly focus on the marketing aspect. This paper seeks to fill this gap in the literature, especially from a combined marketing-economic perspective. Especially the paper's main objective is to identify the determinants of non-price competition in the port sector...

Globalization vs National Sovereignty

Science.gov (United States)

2017-06-09

economic market or system in which prices are based on competition among private businesses and not controlled by a government.12 Global Commons...effects of globalization , work in different countries for years of their lives, conduct social networking and business through cyberspace. Civic...Qaeda. Today , The Islamic State of Iraq and Syria recruits and funds operations around the world benefiting from globalization . The central objectives

Microeconomics of the Productivity, Price Indicators and Farm Incomes. Analytical Approach

Directory of Open Access Journals (Sweden)

Włodzimierz Rembisz

2011-07-01

Full Text Available The paper develops a farm producer behavior type model to analyze the impact of a input productivity and price change on farm incomes. The theoretical analysis shows the consequences of the balance between the increase of production factor prices and their productivity improvement in the condition of stable procurement price for the farm producers income. The cost effect of the production factors price increment and its neutralization by productivity (TFP-type growth is examined as well as some aspects of the inputs shares (returns and costs in the produce value. The article argues that labor input productivity as an endogenous factor, is an essential for farm incomes growth assuming the specified type of the farm producer utility function (its equations and variables as well as no the compensative procurement price change conditions. Some empirical evidence is attached however more work in that respect is foreseen.

FUTURE FOSSIL FUEL PRICE IMPACTS ON NDC ACHIEVEMENT; ESTIMATION OF GHG EMISSIONS AND MITIGATION COSTS

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Yosuke Arino

2017-12-01

Full Text Available The Shale Revolution in the US, a supply-side innovation in oil and gas production, has been dramatically changing the world’s fossil fuel energy markets – leading to a decrease in oil, gas and coal prices. Some projections suggest that low fossil fuel prices might continue at least over the next few decades. Uncertainty in fossil fuel prices might affect the levels of emission reductions expected from submitted nationally determined contributions (NDCs and/or influence the difficulty of achieving the NDCs. This paper evaluated the impact of different (high, medium, and low fossil fuel prices, sustained through to 2050, on worldwide GHG emissions reductions and associated costs (mainly marginal abatement costs (MACs. Total global GHG emissions were estimated to be 57.5-61.5 GtCO2eq by 2030, with the range shown reflecting uncertainties about fossil fuel prices and the target levels of several NDCs (i.e., whether their upper or lower targets were adopted. It was found that lower fuel prices not only diminished the environmental effectiveness of global NDCs but also widened regional differences of marginal and total abatement costs, thereby generating more room for carbon leakage. One possible policy direction in terms of abatement efficiency, fairness and environmental effectiveness would be to require countries with low marginal and total abatement costs but having a major influence on global GHG emissions (such as China and India to increase their mitigation efforts, especially in a low-fuelprice world.

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...

Does the Credible Fiscal Policy Support the Prices Stabilization?

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Kuncoro Haryo

2015-06-01

Full Text Available This paper aims at analyzing the co-movement between fiscal policy and monetary policy rules in the context of price stabilization. More specifically, we observe the potential impact of fiscal policy credibility on the price stabilization in the inflation targeting framework. Motivated by the fact that empirical studies concerning this aspect are still limited, we take the case of Indonesia over the period 2001-2013. Based on the quarterly data analysis, we found that the impact of credibility typically depends on characteristics of fiscal rules commitment. On one hand, the credibility of debt rule reduces the inflation rate. In contrast, the incredible deficit rule policy does not have any impact on the inflation rate and therefore does not support to inflation targeting. Given those results, we conclude that credibility matters in stabilizing price levels. Accordingly, those findings suggest tightening coordination between monetary and fiscal policy to maintain fiscal sustainability in accordance with price stabilization policy

The Impact of Transfer Pricing on Tourism Entities

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Păiuşan Luminiţa

2017-01-01

Full Text Available The purpose of this document is desired to brought a significant contribution of the controlactivity, and to discuss new methods to ensure transparency and to eliminate constant disputesbetween the public and private sector. Starting with these aspects, we are looking to highlightinternational fraud as accompanying phenomena of transnational structures and economicrelations, to explain its impact on the Romanian economy and to discus the key to finding themetholodgy to eradicate this phenomenon, and also to indicate our recommendations and opinionsto what we believe is necessary to eradicate this phenomenon. Transfer pricing is basically theprice used in the transfer of tangible and intangible assets and / or transfer of services betweenrelated parties, and this price should be based on market price without influence of the relationshipof affiliation. For services or tangible assets, the transfer price comparison with the market isrelatively easy to perform, but in the case of intangible assets, quantification of future benefits thatit gives to an affiliated person, in comparison to a situation where this would be to an independent,is difficult to determine.

High food prices and the global financial crisis have reduced access to nutritious food and worsened nutritional status and health.

Science.gov (United States)

Brinkman, Henk-Jan; de Pee, Saskia; Sanogo, Issa; Subran, Ludovic; Bloem, Martin W

2010-01-01

A global economic and financial crisis is engulfing the developing world, coming on top of high food and fuel prices. This paper assesses the impact of the crises on food consumption, nutrition, and health. Several methods were applied, including risk analysis using the cost of the food basket, assessment surveys, simulations, regression analysis using a food consumption score (FCS), reflecting diet frequency and diversity, and a review of the impact of such dietary changes on nutritional status and health. The cost of the food basket increased in several countries, forcing households to reduce quality and quantity of food consumed. The FCS, which is a measure of diet diversity, is negatively correlated with food prices. Simulations show that energy consumption declined during 2006-2010 in nearly all developing regions, resulting potentially in an additional 457 million people (of 4.5 billion) at risk of being hungry and many more unable to afford the dietary quality required to perform, develop, and grow well. As a result of the crises, large numbers of vulnerable households have reduced the quality and quantity of foods they consume and are at risk of increased malnutrition. Population groups most affected are those with the highest requirements, including young children, pregnant and lactating women, and the chronically ill (particularly people with HIV/AIDS and tuberculosis). Because undernutrition during the first 2 y of life has life-long consequences, even short-term price rises will have long-term effects. Thus, measures to mitigate the impact of the crises are urgently required.

Can voluntary pooled procurement reduce the price of antiretroviral drugs? a case study of Efavirenz.

Science.gov (United States)

Kim, Sung Wook; Skordis-Worrall, Jolene

2017-05-01

: A number of strategies have aimed to assist countries in procuring antiretroviral therapy (ARV) at lower prices. In 2009, as the Global Fund to Fight AIDS, Tuberculosis and Malaria (GFATM) commenced a voluntary pooled procurement scheme, however, the impact of the scheme on ARV prices remains uncertain. This study aims to estimate the effect of VPP on drug prices using Efavirenz as a case study. This analysis uses WHO Global price report mechanism (GPRM) data from 2004 to 2013. Due to the highly skewed distribution of drug Prices, a generalized linear model (GLM) was used to conduct a difference-in-difference estimation of drug price changes over time. These analyses found that voluntary pooled procurement reduced both the ex-works price of generic Efavirenz and the incoterms price by 16.2 and 19.1%, respectively ( P <  0.001) in both cases). The year dummies were also statistically significant from 2006 to 2013 ( P <  0.001), indicating a strong decreasing trend in the price of Efavirenz over that period. Voluntary pooled procurement significantly reduced the price of 600 mg generic Efavirenz between 2009 and 2013. Voluntary pooled procurement therefore offers a potentially effective strategy for the reduction in HIV drug prices and the improvement of technical efficiency in HIV programming. Further work is required to establish if these findings hold also for other drugs. © The Author 2017. Published by Oxford University Press in association with The London School of Hygiene and Tropical Medicine. All rights reserved. For permissions, please e-mail: journals.permissions@oup.com

7 CFR 1000.53 - Announcement of class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... advanced pricing factors. 1000.53 Section 1000.53 Agriculture Regulations of the Department of Agriculture..., component prices, and advanced pricing factors. (a) On or before the 5th day of the month, the market... administrator for each Federal milk marketing order shall announce the following prices and pricing factors for...

A Practical Guide to the Economics of Carbon Pricing

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Ross McKitrick

2016-09-01

Full Text Available Canadian economists, politicians and even environmentalists are lining up enthusiastically behind pricing carbon as the solution to controlling greenhouse gas emissions in this country. Pricing carbon (or, more accurately, pricing carbon dioxide is not just a fashionable policy approach; it is the most efficient way we have to ration emissions, as it allows emitters — businesses and consumers — to make the most rational decisions about where it makes economic sense to curtail carbon and where it does not. Painfully costly command-and-control reductions make little sense in Canada, given our marginal contribution to global emissions. When practiced globally, a carbon price deals with Canadian emitters as fairly as it does others. However, a beneficial outcome is not guaranteed: certain rules must be observed in order for carbon pricing to have its intended effect of achieving the optimal balance between emission reduction and economic growth. First and foremost, carbon pricing only works in the absence of any other emission regulations. If pricing is layered on top of an emission-regulating regime already in place (such as emission caps or feed-in-tariff programs, it will not only fail to produce the desired effects in terms of emission rationing, it will have distortionary effects that cause disproportionate damage in the economy. Carbon taxes are meant to replace all other climate-related regulation, while the revenue from the taxes should not be funnelled into substitute goods, like renewable power (pricing lets the market decide which of those substitutes are worth funding but returned directly to taxpayers. The price of carbon is set according to what is known as the “social cost of carbon” — the quantified value of the impact that an emitted tonne of carbon today will have on humans in the future (adjusted to present value. That cost is not limitless; there is a point at which the cost of abating a tonne of carbon outweighs the

World oil and agricultural commodity prices: Evidence from nonlinear causality

International Nuclear Information System (INIS)

Nazlioglu, Saban

2011-01-01

The increasing co-movements between the world oil and agricultural commodity prices have renewed interest in determining price transmission from oil prices to those of agricultural commodities. This study extends the literature on the oil-agricultural commodity prices nexus, which particularly concentrates on nonlinear causal relationships between the world oil and three key agricultural commodity prices (corn, soybeans, and wheat). To this end, the linear causality approach of Toda-Yamamoto and the nonparametric causality method of Diks-Panchenko are applied to the weekly data spanning from 1994 to 2010. The linear causality analysis indicates that the oil prices and the agricultural commodity prices do not influence each other, which supports evidence on the neutrality hypothesis. In contrast, the nonlinear causality analysis shows that: (i) there are nonlinear feedbacks between the oil and the agricultural prices, and (ii) there is a persistent unidirectional nonlinear causality running from the oil prices to the corn and to the soybeans prices. The findings from the nonlinear causality analysis therefore provide clues for better understanding the recent dynamics of the agricultural commodity prices and some policy implications for policy makers, farmers, and global investors. This study also suggests the directions for future studies. - Research highlights: → This study determines the price transmission mechanisms between the world oil and three key agricultural commodity prices (corn, soybeans, and wheat). → The linear and nonlinear cointegration and causality methods are carried out. → The linear causality analysis supports evidence on the neutrality hypothesis. → The nonlinear causality analysis shows that there is a persistent unidirectional causality from the oil prices to the corn and to the soybeans prices.

Flexible LNG supply, storage and price formation in a global natural gas market

Science.gov (United States)

Hayes, Mark Hanley

The body of work included in this dissertation explores the interaction of the growing, flexible liquefied natural gas (LNG) trade with the fundamentals of pipeline gas supply, gas storage, and gas consumption. By nature of its uses---largely for residential heating and electric power generation---the consumption of natural gas is highly variable both seasonally and on less predictable daily and weekly timescales. Flexible LNG trade will interconnect previously isolated regional gas markets, each with non-correlated variability in gas demand, differing gas storage costs, and heterogeneous institutional structures. The dissertation employs a series of analytical models to address key issues that will affect the expansion of the LNG trade and the implications for gas prices, investment and energy policy. First, I employ an optimization model to evaluate the fundamentals of seasonal LNG swing between markets with non-correlated gas demand (the U.S. and Europe). The model provides insights about the interaction of LNG trade with gas storage and price formation in interconnected regional markets. I then explore how random (stochastic) variability in gas demand will drive spot cargo movements and covariation in regional gas prices. Finally, I analyze the different institutional structures of the gas markets in the U.S. and Europe and consider how managed gas markets in Europe---without a competitive wholesale gas market---may effectively "export" supply and price volatility to countries with more competitive gas markets, such as the U.S.

Policy interactions, risk and price formation in carbon markets

International Nuclear Information System (INIS)

Blyth, William; Bunn, Derek; Kettunen, Janne; Wilson, Tom

2009-01-01

Carbon pricing is an important mechanism for providing companies with incentives to invest in carbon abatement. Price formation in carbon markets involves a complex interplay between policy targets, dynamic technology costs, and market rules. Carbon pricing may under-deliver investment due to R and D externalities, requiring additional policies which themselves affect market prices. Also, abatement costs depend on the extent of technology deployment due to learning-by-doing. This paper introduces an analytical framework based on marginal abatement cost (MAC) curves with the aim of providing an intuitive understanding of the key dynamics and risk factors in carbon markets. The framework extends the usual static MAC representation of the market to incorporate policy interactions and some technology cost dynamics. The analysis indicates that supporting large-scale deployment of mature abatement technologies suppresses the marginal cost of abatement, sometimes to zero, whilst increasing total abatement costs. However, support for early stage R and D may reduce both total abatement cost and carbon price risk. An important aspect of the analysis is in elevating risk management considerations into energy policy formation, as the results of the stochastic modelling indicate wide distributions for the emergence of carbon prices and public costs around the policy expectations. (author)

The price of fixed income market volatility

CERN Document Server

Mele, Antonio

2015-01-01

Fixed income volatility and equity volatility evolve heterogeneously over time, co-moving disproportionately during periods of global imbalances and each reacting to events of different nature. While the methodology for options-based "model-free" pricing of equity volatility has been known for some time, little is known about analogous methodologies for pricing various fixed income volatilities. This book fills this gap and provides a unified evaluation framework of fixed income volatility while dealing with disparate markets such as interest-rate swaps, government bonds, time-deposits and credit. It develops model-free, forward looking indexes of fixed-income volatility that match different quoting conventions across various markets, and uncovers subtle yet important pitfalls arising from naïve superimpositions of the standard equity volatility methodology when pricing various fixed income volatilities. The ultimate goal of the authors´ efforts is to make interest rate volatility standardization a valuable...

Price strategy and pricing strategy: terms and content identification

OpenAIRE

Panasenko Tetyana

2015-01-01

The article is devoted to the terminology and content identification of seemingly identical concepts "price strategy" and "pricing strategy". The article contains evidence that the price strategy determines the direction, principles and procedure of implementing the company price policy and pricing strategy creates a set of rules and practical methods of price formation in accordance with the pricing strategy of the company.

Formation of an Integrated Stock Price Forecast Model in Lithuania

Directory of Open Access Journals (Sweden)

Audrius Dzikevičius

2016-12-01

Full Text Available Technical and fundamental analyses are widely used to forecast stock prices due to lack of knowledge of other modern models and methods such as Residual Income Model, ANN-APGARCH, Support Vector Machine, Probabilistic Neural Network and Genetic Fuzzy Systems. Although stock price forecast models integrating both technical and fundamental analyses are currently used widely, their integration is not justified comprehensively enough. This paper discusses theoretical one-factor and multi-factor stock price forecast models already applied by investors at a global level and determines possibility to create and apply practically a stock price forecast model which integrates fundamental and technical analysis with the reference to the Lithuanian stock market. The research is aimed to determine the relationship between stock prices of the 14 Lithuanian companies listed in the Main List by the Nasdaq OMX Baltic and various fundamental variables. Based on correlation and regression analysis results and application of c-Squared Test, ANOVA method, a general stock price forecast model is generated. This paper discusses practical implications how the developed model can be used to forecast stock prices by individual investors and suggests additional check measures.

Fish market prices drive overfishing of the ‘big ones’

Directory of Open Access Journals (Sweden)

Athanassios C. Tsikliras

2014-11-01

Full Text Available The relationship between fish market price and body size has not been explored much in fisheries science. Here, the mean market prices and fish body size were collected in order to examine the hypothesis that large fish, both among- and within-species, are being selectively targeted by fisheries because they may yield greater profit. Trophic levels, vulnerability to fishing and global landings were also collected because these variables may also be related to the market fish price. These relationships were examined using generalized additive models (GAM, which showed that, among species, fish market price was positively dependent on maximum total length (P = 0.0024 and negatively on landings (P = 0.0006, whereas it was independent of trophic level (P > 0.05 and vulnerability to fishing (P > 0.05. When the fish price vs. size relationship was tested within-species, large individuals were consistently attaining higher market prices compared to their medium and small-sized counterparts. We conclude that the selective removal of the larger fish, which is driven by their market price and to a lesser extent by their availability, may contribute to their overfishing.

Fish market prices drive overfishing of the ‘big ones’

Science.gov (United States)

Polymeros, Konstantinos

2014-01-01

The relationship between fish market price and body size has not been explored much in fisheries science. Here, the mean market prices and fish body size were collected in order to examine the hypothesis that large fish, both among- and within-species, are being selectively targeted by fisheries because they may yield greater profit. Trophic levels, vulnerability to fishing and global landings were also collected because these variables may also be related to the market fish price. These relationships were examined using generalized additive models (GAM), which showed that, among species, fish market price was positively dependent on maximum total length (P = 0.0024) and negatively on landings (P = 0.0006), whereas it was independent of trophic level (P > 0.05) and vulnerability to fishing (P > 0.05). When the fish price vs. size relationship was tested within-species, large individuals were consistently attaining higher market prices compared to their medium and small-sized counterparts. We conclude that the selective removal of the larger fish, which is driven by their market price and to a lesser extent by their availability, may contribute to their overfishing. PMID:25392754

Grain price spikes and beggar-thy-neighbor policy responses

DEFF Research Database (Denmark)

Jensen, Hans Grinsted; Anderson, Kym

When prices spike in international grain markets, national governments often reduce the extent to which that spike affects their domestic food markets. Those actions exacerbate the price spike and international welfare transfer associated with that terms of trade change. Several recent analyses...... have assessed the extent to which those policies contributed to the 2006-08 international price rise, but only by focusing on one commodity or using a back-of-the envelope (BOTE) method. This paper provides a more-comprehensive analysis using a global economy-wide model that is able to take account...... of the interactions between markets for farm products that are closely related in production and/or consumption, and able to estimate the impacts of those insulating policies on grain prices and on the grain trade and economic welfare of the world’s various countries. Our results support the conclusion from earlier...

The law of one price in global natural gas markets. A threshold cointegration analysis

Energy Technology Data Exchange (ETDEWEB)

Nick, Sebastian; Tischler, Benjamin

2014-11-15

The US and UK markets for natural gas are connected by arbitrage activity in the form of shifting trade volumes of liquefied natural gas (LNG). We empirically investigate the degree of integration between the US and the UK gas markets by using a threshold cointegration approach that is in accordance with the law of one price and explicitly accounts for transaction costs. Our empirical results reveal a high degree of market integration for the period 2000-2008. Although US and UK gas prices seemed to have decoupled between 2009 and 2012, we still find a certain degree of integration pointing towards significant regional price arbitrage. However, high threshold estimates in the latter period indicate impediments to arbitrage that are by far surpassing the LNG transport costs difference between the US and UK gas market.

Value based pricing: the least valued pricing strategy

OpenAIRE

Hoenen, Bob

2017-01-01

Pricing has been one of the least researched topics in marketing, although within these pricing strategies: cost-plus pricing is considered as the leading pricing strategy worldwide. Why should companies use such an unprofitable strategy, where fighting for a higher market share due to low prices is more a rule than exception? VBP is one of the most underestimated strategies by organizations. The definition of VBP is: 'value pricing applies to products that have the potential of being differe...

Testing the developed world: Global CAPM vs. Local CAPM

OpenAIRE

Knudsen, John

2009-01-01

The purpose of this paper is to assess the extent to which the developed world is integrated that the pricing difference between using the local CAPM and the global CAPM is not relevant. This paper has analysed the twenty developed countries which have been classified as such in the MSCI global index. The paper breaks down the country and stock to identify where there is a significant difference in the pricing of assets between the local and global CAPM, and the significance of the result.

48 CFR 36.207 - Pricing fixed-price construction contracts.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 1 2010-10-01 2010-10-01 false Pricing fixed-price... Contracting for Construction 36.207 Pricing fixed-price construction contracts. (a) Generally, firm-fixed... methods. (b) Lump-sum pricing shall be used in preference to unit pricing except when— (1) Large...

Price strategy and pricing strategy: terms and content identification

Directory of Open Access Journals (Sweden)

Panasenko Tetyana

2015-11-01

Full Text Available The article is devoted to the terminology and content identification of seemingly identical concepts "price strategy" and "pricing strategy". The article contains evidence that the price strategy determines the direction, principles and procedure of implementing the company price policy and pricing strategy creates a set of rules and practical methods of price formation in accordance with the pricing strategy of the company.

Price Uncertainty and Optimal Hedging in the Agricultural Market

Directory of Open Access Journals (Sweden)

Nicolae ISTUDOR

2014-06-01

Full Text Available The increased volatility of the agricultural prices has detrimental effects on the economic welfare and raises concerns regarding poverty and malnutrition at a global level. Financial risk management can be an efficient solution for limiting the effects of international agricultural price volatility. The paper analyzes the behavior of the U.S. wheat and corn prices, emphasizing their highly volatile and unpredictable nature. Given the existence of the basis risk, the estimation of the optimal hedge ratio is needed in order to provide an efficient hedging strategy against price risks. The role of public authorities in this context can consist in promoting education in the fields of hedging and understanding the agricultural price volatility risk. We estimate static and time varying optimal hedge ratios for wheat and corn through several methods. Based on the out of sample hedging effectiveness given by the variance reduction, the methods are compared and the results show that the time varying hedge ratios estimated through rolling window OLS and GARCH methods outperform the static counterparts.

Are Financial Markets an Aspect of Quantum World?

Directory of Open Access Journals (Sweden)

O. Racorean

2015-01-01

Full Text Available Writing the article “Time independent pricing of options in range bound markets” [1], the question in the title came naturally to my mind. It is stated, in the above article, that in certain market conditions the stock price is subjected to an equation that exactly matches a time independent Schrodinger equation. The time independent equation for options valuation is used further to explain a stock market phenomenon that resembles an α particle decay tunneling effect. The transmission coefficient for the stock price tunneling effect it is also deduced. Although, it may not have important impact in quantum physics, the philosophical aspects residing in the use of quantum mechanics for stock market specific are very important.

Logistics: Price Rises Incurred by High Oil Price

Institute of Scientific and Technical Information of China (English)

Lai Zhihui

2011-01-01

@@ "When the oil price grows by 100%, the logistic indus-try will see a price growth of 40%, while the logistics in-dustry a price rise of 35%, which means every price increase of 5% in the oil price will bring along that of 2% in this industry." said Liu Zongsheng, General Manager of Itochu Logistics Co., Ltd., on the seminar "Focusing on the eco-nomic consequences of raising oil price, interest rate and deposit reserve ratio", which was held recently.

Minimum alcohol pricing policies in practice: A critical examination of implementation in Canada.

Science.gov (United States)

Thompson, Kara; Stockwell, Tim; Wettlaufer, Ashley; Giesbrecht, Norman; Thomas, Gerald

2017-02-01

There is an interest globally in using Minimum Unit Pricing (MUP) of alcohol to promote public health. Canada is the only country to have both implemented and evaluated some forms of minimum alcohol prices, albeit in ways that fall short of MUP. To inform these international debates, we describe the degree to which minimum alcohol prices in Canada meet recommended criteria for being an effective public health policy. We collected data on the implementation of minimum pricing with respect to (1) breadth of application, (2) indexation to inflation and (3) adjustments for alcohol content. Some jurisdictions have implemented recommended practices with respect to minimum prices; however, the full harm reduction potential of minimum pricing is not fully realised due to incomplete implementation. Key concerns include the following: (1) the exclusion of minimum prices for several beverage categories, (2) minimum prices below the recommended minima and (3) prices are not regularly adjusted for inflation or alcohol content. We provide recommendations for best practices when implementing minimum pricing policy.

Javanese Price Setting: Refleksi Fenomenologis Harga Pokok Produksi Pedagang Bakso di Kota Malang

Directory of Open Access Journals (Sweden)

Shavira Zalshabila

2012-08-01

Full Text Available This study aims to analyze the aspects that underlie the determination of meatball’s the cost of production, which is reflected in the determination of the selling price of a product. The study using phenomenology method, which investigated the process of determining the cost of production, with the selling price in the eyes of meatball traders. The study found a Javanese price setting, in which the determination of the selling price of the meatballs are not a reflection of the cost of production, but rather a reflection of Javanese culture held by meatball traders. Among them are tepo seliro, mangan ora mangan sing penting ngumpul, and nerimo ing pandum.

Biofuel policies and the impact of developing countries' policy responses to the 2007-2008 food price boom

NARCIS (Netherlands)

Gorter, de Harry; Drabik, D.

2016-01-01

Economists have been unanimous that developing countries’ policy responses to high food grain prices in 2007–2008 in restricting exports and promoting imports increased both world food grain price levels and volatility. Furthermore, the literature emphasizes the self-defeating aspects of policy

Economy of education: National and global aspects

Directory of Open Access Journals (Sweden)

Oksana Ishchenko-Padukova

2017-12-01

Full Text Available Our paper focuses on the national economy of education. We assume that under the current conditions of the globalized world, the economy of education reveals its two-fold nature: on the one hand, it represents an element of the national economic system, and on the other, it is also a structural component of the global education system. Therefore, national economy of education is shaped up by both internal and external factors represented by national and international influences. We analyze here the functional composition and the methods of legal regulation of the economy of education under the conditions and provisions of the global geopolitical transformations. In addition, we use the empirical model of returns to education for showing the factors that impact the employability of young graduates at the labor market. Our results confirm the importance of education for achieving higher levels of income, both nationally and internationally. Finally, we come to the conclusion that its target function consists of the global promotion of national education and consolidation of national competitive position within the world education space.

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...

A new approach for crude oil price prediction based on stream learning

Directory of Open Access Journals (Sweden)

Shuang Gao

2017-01-01

Full Text Available Crude oil is the world's leading fuel, and its prices have a big impact on the global environment, economy as well as oil exploration and exploitation activities. Oil price forecasts are very useful to industries, governments and individuals. Although many methods have been developed for predicting oil prices, it remains one of the most challenging forecasting problems due to the high volatility of oil prices. In this paper, we propose a novel approach for crude oil price prediction based on a new machine learning paradigm called stream learning. The main advantage of our stream learning approach is that the prediction model can capture the changing pattern of oil prices since the model is continuously updated whenever new oil price data are available, with very small constant overhead. To evaluate the forecasting ability of our stream learning model, we compare it with three other popular oil price prediction models. The experiment results show that our stream learning model achieves the highest accuracy in terms of both mean squared prediction error and directional accuracy ratio over a variety of forecast time horizons.

Tomorrow's Energy Prices: An Analysis of System, Actors and Shaping Factors. Crude price drop and its consequences

International Nuclear Information System (INIS)

Chevalier, Jean-Marie; Chauvin, Dominique

2017-01-01

If one sector in recent decades has been a byword for how difficult it is to anticipate future developments at the global level, it has been the energy sector. We have seen fears over the dangers of a hydrocarbon shortage, the announcement of 'peak oil' and a boom in shale gas and oil. Forecasts based on major trends within the field have been revised as non-conventional sources with a substantial impact on price levels have emerged. Added to this is the need to confront climate change and hence to revamp our modes of energy production to give an enhanced role to renewables. In such a context, as Jean-Marie Chevalier stresses here, it is quite tricky to say how energy prices will develop or how energy production systems will change. This is why, in addition to the overview of possible developments in the prices of oil, natural gas and coal which this article provides, it particularly stresses the many elements of uncertainty that still prevail. Chevalier demonstrates the multiplicity of factors - and actor - involved in the way energy systems and prices develop and highlights the key elements that will play a role in enhancing or curbing those developments in the medium-to-long term. (author)

THE ASSET PRICE CHANNEL AND ITS ROLE IN MONETARY POLICY TRANSMISSION

Directory of Open Access Journals (Sweden)

Dan Horatiu

2013-07-01

Full Text Available his paper addresses the subject of the monetary policy transmission mechanism by focusing on the asset price channel, which is the monetary transmission channel responsible for the propagation of the effects induced by the monetary policy decisions made by the central bank that affect the price of assets. We will analyze the asset price channel by taking a close look at its structure, internal processes and the way it delivers monetary policy throughout the economy, ultimately influencing key variables such as the unemployment rate and the levels of consumption and production. After an introduction dealing with the entire monetary transmission mechanism, its role and purposes, we will focus on the particularities of the asset price channel and the two main ways in which it delivers monetary policy decision effects: through changes in Tobin’s q value, which is the ratio between the market value of a given company and its replacement cost of capital, and through the effect of wealth, both of financial and housing nature, on consumption. In our study, we will consider theoretical aspects and observations, but also empirical evidence that highlights that the exact way in which the asset price channel functions may differ from one economy to another due to differences in the structures of the respective economies and differences in psychology and cultural values of consumers. The deep understanding of the asset price transmission channel is very important for any central bank, as this is the channel that governs key aspects of monetary policy transmission linked to the market value of assets and individual wealth. These values have, as we will see in more detail throughout the paper, an important impact on both consumption and investment, two economic actions that can help the economy, but can also prove to be a crucial element in starting and perpetuating an economic crisis.

Is the corporate loan market globally integrated? a pricing puzzle

OpenAIRE

Mark S. Carey; Gregory P. Nini

2004-01-01

We offer evidence that interest rate spreads on syndicated loans to corporate borrowers are economically significantly smaller in Europe than in the U.S., other things equal. Differences in borrower, loan and lender characteristics associated with equilibrium mechanisms suggested in the literature do not appear to explain the phenomenon. Borrowers overwhelmingly issue in their natural home market and bank portfolios display significant home "bias." This may explain why pricing discrepancies a...

Price adjustment clauses with seal of quality. Regal verification; Preisanpassungsklauseln mit 'Guetesiegel'. Rechtliche Ueberpruefung

Energy Technology Data Exchange (ETDEWEB)

Donner, Oliver; Ottersbach, Joerg [BET Buero fuer Energiewirtschaft und Technische Planung GmbH, Aachen (Germany); Thomale, Hans-Christoph [FPS Rechtsanwaelte und Notare, Frankfurt am Main (Germany)

2013-03-11

Actually, district heating suppliers see themselves to be exposed to the general suspicion of the claim of increased prices from their customers. Partly, the existing price adjustment clauses really do not correspond to the legal requirements. This often was complaint by the customers, and resulted in legal disputes. Under this aspect, the BET bureau for energy industry and technical planning GmbH (Aachen, Federal Republic of Germany) and FPS Attorney/Notaries (Berlin, Federal Republic of Germany) analyse and develop price models with price adjustment clauses in order to meet the resulting, often considerable risks.

Use of Local Dynamic Electricity Prices for Indirect Control of DER Power Units

DEFF Research Database (Denmark)

Nørgård, Per Bromand; Isleifsson, Fridrik Rafn

2013-01-01

the grid voltage. The algorithms generating the local prices are dynamically adjusted according to the actual realised responses to the dynamic prices. Results are presented from an adapted version of the control principle implemented and tested in DTUs experimental research power system, SYSLAB, including...... wind power, solar power, flexible load and electrical storage. The local power price generation is based on the actual Nord Pool DK2 Spot prices on hourly basis as the quasi-stationary global electricity price, and the local SYSLAB's power exchange with the national grid as basis for the dynamic price...... system. A challenge is to find a cheap, simple and robust way to requests the proper power regulation by the DER power units. The use of broadcasted, dynamic power prices and volunteer responses is one option. The paper presents a proposal for and an illustration of advanced generation of local, dynamic...

Imputed prices of greenhouse gases and land forests

International Nuclear Information System (INIS)

Uzawa, Hirofumi

1993-01-01

The theory of dynamic optimum formulated by Maeler gives us the basic theoretical framework within which it is possible to analyse the economic and, possibly, political circumstances under which the phenomenon of global warming occurs, and to search for the policy and institutional arrangements whereby it would be effectively arrested. The analysis developed here is an application of Maeler's theory to atmospheric quality. In the analysis a central role is played by the concept of imputed price in the dynamic context. Our determination of imputed prices of atmospheric carbon dioxide and land forests takes into account the difference in the stages of economic development. Indeed, the ratios of the imputed prices of atmospheric carbon dioxide and land forests over the per capita level of real national income are identical for all countries involved. (3 figures, 2 tables) (Author)

Global aspects of classical integrable systems

CERN Document Server

Cushman, Richard H

2015-01-01

This book gives a uniquely complete description of the geometry of the energy momentum mapping of five classical integrable systems: the 2-dimensional harmonic oscillator, the geodesic flow on the 3-sphere, the Euler top, the spherical pendulum and the Lagrange top. It presents for the first time in book form a general theory of symmetry reduction which allows one to reduce the symmetries in the spherical pendulum and the Lagrange top. Also the monodromy obstruction to the existence of global action angle coordinates is calculated for the spherical pendulum and the Lagrange top. The book addresses professional mathematicians and graduate students and can be used as a textbook on advanced classical mechanics or global analysis.

Photovoltaic (PV) Pricing Trends: Historical, Recent, and Near-Term Projections

Energy Technology Data Exchange (ETDEWEB)

Feldman, David [National Renewable Energy Lab. (NREL), Golden, CO (United States); Barbose, Galen [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Margolis, Robert [National Renewable Energy Lab. (NREL), Golden, CO (United States); Wiser, Ryan [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Darghouth, Naim [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Goodrich, Alan [National Renewable Energy Lab. (NREL), Golden, CO (United States)

2012-11-30

The installed capacity of global and U.S. photovoltaic (PV) systems has soared in recent years, driven by declining PV prices and government incentives. The U.S. Department of Energy’s (DOE) SunShot Initiative aims to make PV cost competitive without incentives by reducing the cost of PV-generated electricity by about 75% between 2010 and 2020. This summary report—based on research at Lawrence Berkeley National Laboratory (LBNL) and the National Renewable Energy Laboratory (NREL)—examines progress in PV price reductions to help DOE and other PV stakeholders manage the transition to a market-driven PV industry, and to provide clarity surrounding the wide variety of potentially conflicting data available about PV system prices.

The world price of jump and volatility risk

NARCIS (Netherlands)

Driessen, J.; Maenhout, P.

2006-01-01

Jump and volatility risk are important for understanding equity returns, option pricing and asset allocation. This paper is the first to study international integration of markets for jump and volatility risk, using data on index options for each of the three main global markets: US S&P 500 index

Visibility graph network analysis of natural gas price: The case of North American market

Science.gov (United States)

Sun, Mei; Wang, Yaqi; Gao, Cuixia

2016-11-01

Fluctuations in prices of natural gas significantly affect global economy. Therefore, the research on the characteristics of natural gas price fluctuations, turning points and its influencing cycle on the subsequent price series is of great significance. Global natural gas trade concentrates on three regional markets: the North American market, the European market and the Asia-Pacific market, with North America having the most developed natural gas financial market. In addition, perfect legal supervision and coordinated regulations make the North American market more open and more competitive. This paper focuses on the North American natural gas market specifically. The Henry Hub natural gas spot price time series is converted to a visibility graph network which provides a new direction for macro analysis of time series, and several indicators are investigated: degree and degree distribution, the average shortest path length and community structure. The internal mechanisms underlying price fluctuations are explored through the indicators. The results show that the natural gas prices visibility graph network (NGP-VGN) is of small-world and scale-free properties simultaneously. After random rearrangement of original price time series, the degree distribution of network becomes exponential distribution, different from the original ones. This means that, the original price time series is of long-range negative correlation fractal characteristic. In addition, nodes with large degree correspond to significant geopolitical or economic events. Communities correspond to time cycles in visibility graph network. The cycles of time series and the impact scope of hubs can be found by community structure partition.

Impact of the oil price and fiscal facilities on offshore mining at the Dutch Continental Shelf

International Nuclear Information System (INIS)

Cate, Arie ten; Mulder, Machiel

2007-01-01

The surge in the oil price has raised questions about the magnitude of global reserves of oil. According to some analysts, the current high oil prices indicate a looming decline in the global production of oil. Others believe, however, that the increased level of the oil price encourages exploration and production activities, bringing the oil price to a lower equilibrium level in the near future. In this paper, we assess the impact of the unit profit (depending on the oil price) as well as fiscal facilities on the level of exploration and development drillings in the Dutch Continental Shelf. We conducted an econometric analysis of exploration and development drillings in the Dutch Continental Shelf over the period 1981-2003. Except a few fiscal changes, the regulatory framework for offshore activities in the Netherlands, the so-called 'small fields policy' was unchanged in this period. We find that the expected unit profit based on a moving average of the oil price significantly explains the level of both exploration and development drillings. In addition, the analysis suggests that fiscal facilities have only a temporary effect on exploration activities but are more important for development activities. We conclude that the oil price is a major economic incentive for activities of the mining industry

The Impact of the 2008 Global Financial Crisis on the Structure of the Transmission of Price Innovations Across Financial Markets: The Case of Southwest Asian Equity Markets

Directory of Open Access Journals (Sweden)

Liao Qunfeng

2016-06-01

Full Text Available This study examines the reaction of Southeast Asian equity markets to the transmission of price innovations from major equity markets during the pre and post periods of the 2008 global financial crisis. In particular, we examine the reaction of returns indices in Malaysia, the Philippines, South Korea, Taiwan, and Thailand as endogenous variables, and compare them to the returns indices of the U.S., the Eurozone, Japan, and China as exogenous variables. The results of VAR models indicate the combined and individual impact of the price innovations from the major equity markets on the volatility of returns of selected countries is relatively trivial during either the pre- or post-financial crisis periods. However, the individual impact of the U.S. innovations is generally higher during the post-financial crisis. The ARCH and GARCH models indicate the stock markets of Southeast Asian countries are more responsive to their own price innovations during both the pre- and the post-crisis periods, although some response to U.S. and Eurozone shocks is also observed.

FY 1998 international cooperation project for global environment/project to evaluate influence of climate change; 1998 nendo chosa hokokusho. Chikyu kankyo kokusai kyoryoku jigyo/kiko hendo eikyo hyokanado jigyo

Energy Technology Data Exchange (ETDEWEB)

NONE

1999-03-01

As a part of the international cooperation for the global warming problem, evaluation/study were conducted on policy to lessen climate changes from viewpoints of scientific technology, environment, and economy/society. In the development of evaluation methods on cost analysis, the following were pointed out: Changes in resource utilization brought about as a result of the policy are all needed to be numerated; In resource, clean air and water, and also abolition of price barrier and prices now in force are included. As subjects on the technology transfer, cited are barriers in aspects of organization/system and barriers in aspects of economy/finance and society. Especially, it was pointed out that it is necessary to exchange the persons concerned in the industrial sector. Of various optional policies toward the prevention of global warming, the Kyoto mechanism not only has an economical merit of the use of low cost option but can be fairly promising from an environmental viewpoint of internationally controlling the greenhouse effect gas emission, if the characteristic of practically using the market can be so designed that it fulfills its function. (NEDO)

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)

The geopolitical impact of the shale revolution: Exploring consequences on energy prices and rentier states

International Nuclear Information System (INIS)

Auping, Willem L.; Pruyt, Erik; Jong, Sijbren de; Kwakkel, Jan H.

2016-01-01

While the shale revolution was largely a US’ affair, it affects the global energy system. In this paper, we look at the effects of this spectacular increase in natural gas, and oil, extraction capacity can have on the mix of primary energy sources, on energy prices, and through that on internal political stability of rentier states. We use two exploratory simulation models to investigate the consequences of the combination of both complexity and uncertainty in relation to the global energy system and state stability. Our simulations show that shale developments could be seen as part of a long term hog-cycle, with a short term drop in oil prices if unconventional supply substitutes demand for oil. These lower oil prices may lead to instability in rentier states neighbouring the EU, especially when dependence on oil and gas income is high, youth bulges are present, or buffers like sovereign wealth funds are too limited to bridge the negative economic effects of temporary low oil prices. - Highlights: • We quantitatively explore geopolitical consequences of the shale gas revolution. • We use a multi-model approach to generate and use energy price scenarios. • Simulations show that current low oil prices could be part of a hog cycle. • The shale gas boom was an early warning for the drop in oil prices. • Low prices due to shale gas can reduce internal stability in rentier states.

IS THE PRICE RIGHT? PRICING FOR LONG TERM PROFITABILITY

Directory of Open Access Journals (Sweden)

Andrea Erika NYÁRÁDI

2007-01-01

Full Text Available The way how we choose our pricing strategy has a significant impact on company’s success. Nowadays companies more and more adopt a new way of thinking in pricing, namely pricing for a long term period in order to bring higher profitability, to build an efficient pricing strategy. Marketers have only recently begun to focus seriously on effective pricing. These companies are the so called progressive companies. They have begun doing more than just worrying about pricing. To increase profitability many are abandoning traditional reactive pricing procedures in favor of proactive pricing, making explicit corporate decisions to change their focus to growth in top-line sales to growth in profitability. The long-term implications of price strategies are still under-researched, and managers should be aware of shifts in customer reactions that may result from frequent adoption of certain strategies. The company pricing strategy should be seen in relation to developments in the company variables, internal ones (capital strength, competencies, organizational conditions, efficiency of the work force etc. as well as external ones (customers, competitors, the technological development etc., adopting strategic pricing. In this paper I will present the most effective pricing strategies leading to long term profitability, and also suggest practical conditions for pricing strategies to maximize profit in the long run.

Patients' views on price shopping and price transparency.

Science.gov (United States)

Semigran, Hannah L; Gourevitch, Rebecca; Sinaiko, Anna D; Cowling, David; Mehrotra, Ateev

2017-06-01

Driven by the growth of high deductibles and price transparency initiatives, patients are being encouraged to search for prices before seeking care, yet few do so. To understand why this is the case, we interviewed individuals who were offered access to a widely used price transparency website through their employer. Qualitative interviews. We interviewed individuals enrolled in a preferred provider organization product through their health plan about their experience using the price transparency tool (if they had done so), their past medical experiences, and their opinions on shopping for care. All interviews were transcribed and manually coded using a thematic coding guide. In general, respondents expressed frustration with healthcare costs and had a positive opinion of the idea of price shopping in theory, but 2 sets of barriers limited their ability to do so in reality. The first was the salience of searching for price information. For example, respondents recognized that due to their health plan benefits design, they would not save money by switching to a lower-cost provider. Second, other factors were more important than price for respondents when choosing a provider, including quality and loyalty to current providers. We found a disconnect between respondents' enthusiasm for price shopping and their reported use of a price transparency tool to shop for care. However, many did find the tool useful for other purposes, including checking their claims history. Addressing the barriers to price shopping identified by respondents can help inform ongoing and future price transparency initiatives.

Biofuels and the Greater Mekong Subregion: Assessing the impact on prices, production and trade

Energy Technology Data Exchange (ETDEWEB)

Yang, Jun; Huang, Jikun; Qiu, Huanguang [Center for Chinese Agricultural Policy, Chinese Academy of Sciences and Institute of Geographical Sciences and Natural Resources Research, Jia 11, Datun Road, Beijing 100101 (China); Rozelle, Scott [Freeman Spogli Institute of International Studies, Stanford University, East Encina Hall, Stanford, CA 94305 (United States); Sombilla, Mercy A. [Southeast Asian Regional Center for Graduate Study and Research in Agriculture, College, Laguna 4031 (Philippines)

2009-11-15

Similar to many other countries, all nations in the Greater Mekong Subregion (GMS) have planned or are planning to develop strong national biofuel programs. The overall goal of this paper is to better understand the impacts of global and regional biofuels on agriculture and the rest of the economy, with a specific focus on the GMS. Based on a modified multi-country, multi-sector computable general equilibrium model, this study reveals that global biofuel development will significantly increase agricultural prices and production and change trade in agricultural commodities in the GMS and the rest of world. While biofuel in the GMS will have little impacts on global prices, it will have significant effects on domestic agricultural production, land use, trade, and food security. The results also show that the extent of impacts from biofuel is highly dependent on international oil prices and the degree of substitution between biofuel and gasoline. The findings of this study have important policy implications for the GMS countries and the rest of world. (author)

Biofuels and the Greater Mekong Subregion: Assessing the impact on prices, production and trade

International Nuclear Information System (INIS)

Yang, Jun; Huang, Jikun; Qiu, Huanguang; Rozelle, Scott; Sombilla, Mercy A.

2009-01-01

Similar to many other countries, all nations in the Greater Mekong Subregion (GMS) have planned or are planning to develop strong national biofuel programs. The overall goal of this paper is to better understand the impacts of global and regional biofuels on agriculture and the rest of the economy, with a specific focus on the GMS. Based on a modified multi-country, multi-sector computable general equilibrium model, this study reveals that global biofuel development will significantly increase agricultural prices and production and change trade in agricultural commodities in the GMS and the rest of world. While biofuel in the GMS will have little impacts on global prices, it will have significant effects on domestic agricultural production, land use, trade, and food security. The results also show that the extent of impacts from biofuel is highly dependent on international oil prices and the degree of substitution between biofuel and gasoline. The findings of this study have important policy implications for the GMS countries and the rest of world. (author)

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...

Forecasting Day-Ahead Electricity Prices : Utilizing Hourly Prices

NARCIS (Netherlands)

E. Raviv (Eran); K.E. Bouwman (Kees); D.J.C. van Dijk (Dick)

2013-01-01

textabstractThe daily average price of electricity represents the price of electricity to be delivered over the full next day and serves as a key reference price in the electricity market. It is an aggregate that equals the average of hourly prices for delivery during each of the 24 individual

Dynamic impacts of high oil prices on the bioethanol and feedstock markets

International Nuclear Information System (INIS)

Cha, Kyung Soo; Bae, Jeong Hwan

2011-01-01

This study investigates the impacts of high international oil prices on the bioethanol and corn markets in the US. Between 2007 and 2008, the prices of major grain crops had increased sharply, reflecting the rise in international oil prices. These dual price shocks had caused substantial harm to the global economy. Employing a structural vector auto-regression model (SVAR), we analyze how increases in international oil prices could impact the prices of and demand for corn, which is used as a major bioethanol feedstock in the US. The results indicate that an increase in the oil price would increase bioethanol demand for corn and corn prices in the short run and that corn prices would stabilize in the long run as corn exports and feedstock demand for corn decline. Consequently, policies supporting biofuels should encourage the use of bioethanol co-products for feed and the development of marginal land to mitigate increases in the feedstock price. - Research highlights: → World economy experienced 'dual shocks', which were caused by skyrocketed oil prices and grain prices between 2007 and 2008. → Sharp increases in ethanol production in response to high oil prices were considered as a major driving force to 'ag-flation' in the United States. → Applying a time series econometric tool, called the 'structural vector auto-regression model', we evaluated relationship between ethanol production and corn prices. → The result shows that ethanol production affects corn prices in the short run, while corn prices are lowered as other corn demands (feed for livestock or export demand) decline in the long run.

DOES FEAR (VIX INDEX INCITE VOLATILITY IN FOOD PRICES?

Directory of Open Access Journals (Sweden)

Gökhan Çınar

2017-04-01

Full Text Available Globally, the volatility trend in food prices has continued to increase. Different data give the impression that this volatility may be caused by the international finance markets’ propagation effect. For this reason, the study focused on the VIX (fear index that is used to measure the movement in Standard & Poor’s 500 index. The main objective of the study is to analyze the degree of volatility between the VIX index and the wheat market. The research is comprised of monthly data obtained from year 2000 to 2015. The study employs the BEKK GARCH method. The findings show that the variance shocks in the fear index damage food prices. The results may be useful to policy makers in researching the causes of changes in the prices of food commodity and taking necessary measures.

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)

Forecasting Day-Ahead Electricity Prices: Utilizing Hourly Prices

OpenAIRE

Raviv, Eran; Bouwman, Kees E.; van Dijk, Dick

2013-01-01

This discussion paper led to a publication in 'Energy Economics' , 2015, 50, 227-239. The daily average price of electricity represents the price of electricity to be delivered over the full next day and serves as a key reference price in the electricity market. It is an aggregate that equals the average of hourly prices for delivery during each of the 24 individual hours. This paper demonstrates that the disaggregated hourly prices contain useful predictive information for the daily average ...

Domestic policy responses to the food price crisis: The case of Bolivia

Directory of Open Access Journals (Sweden)

Harald Grethe

2011-12-01

Full Text Available In face of the global food crisis of 2007–2008, severe concerns arose about how developing countries would be affected by the extreme short-term fluctuations in international commodity prices. We examine the effects of the crisis on Bolivia, one of the poorest countries of the Americas. We focus on the effectiveness of the domestic policy interventions in preventing spillovers of the development of international food prices to domestic markets. Using a cointegration model, we study price interdependencies of wheat flour, sunflower oil and poultry. The analysis suggests that the policy measures taken had little effect on food security during the food crisis. Throughout the entire period, perfect price transmission between the Bolivian poultry and sunflower oil markets and the respective international reference markets existed. Bolivian prices were determined by international prices and the policy interventions in the markets of these two commodities were not found to have had an effect. The government’s large-scale wheat flour imports did not shield Bolivian consumers from the shocks of international prices.

Higher Education Prices and Price Indexes. 1976 Supplement.

Science.gov (United States)

Halstead, Kent D.

The 1976 supplement presents higher education price index data for fiscal years 1971 through 1976. The basic study, "Higher Education Prices and Price Indexes" (ED 123 996) presents complete descriptions of the indexes together with index values and price data for fiscal years 1961 through 1974. Indexes are presented for research and development,…

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.

The sequential price of anarchy for atomic congestion games

NARCIS (Netherlands)

de Jong, Jasper; Uetz, Marc Jochen; Liu, Tie-Yan; Qi, Qi; Ye, Yinyu

2014-01-01

In situations without central coordination, the price of anarchy relates the quality of any Nash equilibrium to the quality of a global optimum. Instead of assuming that all players choose their actions simultaneously, we consider games where players choose their actions sequentially. The sequential

The sequential price of anarchy for atomic congestion games

NARCIS (Netherlands)

de Jong, Jasper; Uetz, Marc Jochen

2014-01-01

In situations without central coordination, the price of anarchy relates the quality of any Nash equilibrium to the quality of a global optimum. Instead of assuming that all players choose their actions simultaneously, here we consider games where players choose their actions sequentially. The

Application of Derivatives Market for Controlling Risks of Commodity Prices

Directory of Open Access Journals (Sweden)

Rasuolė Drazdauskienė

2015-05-01

Full Text Available The issue of raw milk procurement cost level and fluctuation which inhibits strengthening negotiating positions of dairy product fabricants and probability of them staying competitive in the European Union, is examined. Scientific literature that analyzes risks of staple prices is overviewed in the article. The paper provides statistical data representing the situation of Lithuania in contrast with European Union rates. Global usage of prospective transactions and their possible influence on price regulation are analyzed. After examining statistical data and academic literature, conclusions are provided.

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.

Sensitivity of district heating system operation to heat demand reductions and electricity price variations: A Swedish example

International Nuclear Information System (INIS)

Åberg, M.; Widén, J.; Henning, D.

2012-01-01

In the future, district heating companies in Sweden must adapt to energy efficiency measures in buildings and variable fuel and electricity prices. Swedish district heating demands are expected to decrease by 1–2% per year and electricity price variations seem to be more unpredictable in the future. A cost-optimisation model of a Swedish local district heating system is constructed using the optimisation modelling tool MODEST. A scenario for heat demand changes due to increased energy efficiency in buildings, combined with the addition of new buildings, is studied along with a sensitivity analysis for electricity price variations. Despite fears that heat demand reductions will decrease co-generation of clean electricity and cause increased global emissions, the results show that anticipated heat demand changes do not increase the studied system's primary energy use or global CO 2 emissions. The results further indicate that the heat production plants and the fuels used within the system have crucial importance for the environmental impact of district heat use. Results also show that low seasonal variations in electricity price levels with relatively low winter prices promote the use of electric heat pumps. High winter prices on the other hand promote co-generation of heat and electricity in CHP plants. -- Highlights: ► A MODEST optimisation model of the Uppsala district heating system is built. ► The impact of heat demand change on heat and electricity production is examined. ► An electricity price level sensitivity analysis for district heating is performed. ► Heat demand changes do not increase the primary energy use or global CO 2 emissions. ► Low winter prices promote use of electric heat pumps for district heating production.

Globalization, Superstars, and the Importance of Reputation: Theory and Evidence from the Wine Industry

DEFF Research Database (Denmark)

Gibbs, Mike; Tapia, Mikel; Warzynski, Frederic

2009-01-01

widely traded as a result of globalization. We then provide some empirical analysis of these ideas using data on prices and Robert Parker's ratings of wines. Wine prices are strongly related to ratings, and even more so for higher quality wine categories. In addition, changes in Parker ratings...... for the same wine result in large price changes. Price elasticities with respect to ratings have risen dramatically since 1993. One plausible explanation for this is the growing globalization of the fine wine market, which increases the prevalence of naive wine consumers....

Motorcycle helmets in Vietnam: ownership, quality, purchase price, and affordability.

Science.gov (United States)

Hung, Dang Viet; Stevenson, Mark R; Ivers, Rebecca Q

2008-06-01

This study investigated motorcycle helmet ownership, quality, purchase price, and affordability in Vietnam. A random sample of motorcyclists was interviewed to investigate aspects of helmet ownership, the purchase price, and affordability of a motorcycle helmet. Multivariate modeling conducted to determine factors associated with the purchase price and affordability of motorcycle helmets. Helmet quality was assessed based on current legal requirements in Vietnam. The prevalence of helmet use in Vietnam remains low (23.3%) despite a high level of helmet ownership (94%), indicating that this is an important area for public health intervention. Overall the quality of helmets appeared to be good; however, few helmets displayed legally required information. Motorcyclists with a high income purchase more helmets for their household rather than more expensive helmets. To ensure that helmets are accessible to the community, policy-makers need to consider pricing motorcycle helmets at a price indicated by the results of this study. Prior to universal motorcycle helmet legislation, the government will also need to ensure that standard helmets are available and that enforcement is at a level to ensure that motorcycle helmets are actually used.

Energy symposium 2007 - energy secured?... for what price. Summary of the congress contributions

International Nuclear Information System (INIS)

2008-01-01

With its topical title ''Energy secured?.. for what price'' the 2007 Energy Symposium has added yet another milestone to its success story. Energy is a fundamental aspect of our industrial society. It is of essential importance that the demand for low-cost energy is strategically secured. Energy prices are basic to calculations on products that have to be sold and exported. They are therefore also an essential factor in securing Europe as an industrial region

The imperfect price reversibility of non-transport oil demand in the OECD

International Nuclear Information System (INIS)

Dargay, J.; Gately, D.

1995-01-01

This paper examines the price reversibility of OECD non-transport oil demand and its components: residual (heavy) fuel oil, non-transport distillates and other non-transport oil products. Our purpose is to determine the extent to which the reductions in demand following the oil price increases of the 1970s have been - and will be - reversed by the price cuts of the 1980s. The analysis is based on an econometric model which utilizes price decomposition methods to measure separately the effects of price increases and price decreases. These methods allow empirical testing of irreversibility and hysteresis, and should be applicable in other areas of economics where asymmetry of response or persistence of effect are evident. Based on the statistical evidence, we reject the conventional specification of demand being perfectly price reversible. We conclude that the response to the price cuts of the 1980s has been significantly smaller than to the price increases of the 1970s. Demand has followed a ratchet process: price increases reduced demand substantially when demanders conserved and switched away from oil, but price cuts did not reverse this process completely, if at all. This has important implications for projections of oil demand, especially under low price assumptions: the OECD's dependency on oil will not increase as much as some analysts may have feared. There is, however, another aspect of imperfect price reversibility: the possibilities of adjusting to future price rises may not be as great as they have been in the past. The easiest and least costly demand savings have already been made, and oil has been replaced by other energy sources in many uses: what's done is done. (author)

Electricity market price spike analysis by a hybrid data model and feature selection technique

International Nuclear Information System (INIS)

Amjady, Nima; Keynia, Farshid

2010-01-01

In a competitive electricity market, energy price forecasting is an important activity for both suppliers and consumers. For this reason, many techniques have been proposed to predict electricity market prices in the recent years. However, electricity price is a complex volatile signal owning many spikes. Most of electricity price forecast techniques focus on the normal price prediction, while price spike forecast is a different and more complex prediction process. Price spike forecasting has two main aspects: prediction of price spike occurrence and value. In this paper, a novel technique for price spike occurrence prediction is presented composed of a new hybrid data model, a novel feature selection technique and an efficient forecast engine. The hybrid data model includes both wavelet and time domain variables as well as calendar indicators, comprising a large candidate input set. The set is refined by the proposed feature selection technique evaluating both relevancy and redundancy of the candidate inputs. The forecast engine is a probabilistic neural network, which are fed by the selected candidate inputs of the feature selection technique and predict price spike occurrence. The efficiency of the whole proposed method for price spike occurrence forecasting is evaluated by means of real data from the Queensland and PJM electricity markets. (author)

Oil price dynamics and speculation. A multivariate financial approach

International Nuclear Information System (INIS)

Cifarelli, Giulio; Paladino, Giovanna

2010-01-01

This paper assesses empirically whether speculation affects oil price dynamics. The growing presence of financial operators in the oil markets has led to the diffusion of trading techniques based on extrapolative expectations. Strategies of this kind foster feedback trading that may cause considerable departures of prices from their fundamental values. We investigate this hypothesis using a modified CAPM following Shiller (1984) and Sentana and Wadhwani (1992). First, a univariate GARCH(1,1)-M is estimated assuming the risk premium to be a function of the conditional oil price volatility. The single factor model, however, is outperformed by the multifactor ICAPM (Merton, 1973), which takes into account a larger investment opportunity set. Analysis is then carried out using a trivariate CCC GARCH-M model with complex nonlinear conditional mean equations where oil price dynamics are associated with both stock market and exchange rate behavior. We find strong evidence that oil price shifts are negatively related to stock price and exchange rate changes and that a complex web of time-varying first and second order conditional moment interactions affects both the CAPM and feedback trading components of the model. Despite the difficulties, we identify a significant role played by speculation in the oil market, which is consistent with the observed large daily upward and downward shifts in prices - a clear evidence that it is not a fundamental-driven market. Thus, from a policy point of view - given the impact of volatile oil prices on global inflation and growth - actions that monitor speculative activities on commodity markets more effectively are to be welcomed. (author)

Oil price dynamics and speculation. A multivariate financial approach

Energy Technology Data Exchange (ETDEWEB)

Cifarelli, Giulio [University of Florence, Dipartimento di Scienze Economiche, via delle Pandette 9, 50127, Florence (Italy); Paladino, Giovanna [Economics Department, LUISS University (Italy); BIIS International Division (Italy)

2010-03-15

This paper assesses empirically whether speculation affects oil price dynamics. The growing presence of financial operators in the oil markets has led to the diffusion of trading techniques based on extrapolative expectations. Strategies of this kind foster feedback trading that may cause considerable departures of prices from their fundamental values. We investigate this hypothesis using a modified CAPM following Shiller (1984) and Sentana and Wadhwani (1992). First, a univariate GARCH(1,1)-M is estimated assuming the risk premium to be a function of the conditional oil price volatility. The single factor model, however, is outperformed by the multifactor ICAPM (Merton, 1973), which takes into account a larger investment opportunity set. Analysis is then carried out using a trivariate CCC GARCH-M model with complex nonlinear conditional mean equations where oil price dynamics are associated with both stock market and exchange rate behavior. We find strong evidence that oil price shifts are negatively related to stock price and exchange rate changes and that a complex web of time-varying first and second order conditional moment interactions affects both the CAPM and feedback trading components of the model. Despite the difficulties, we identify a significant role played by speculation in the oil market, which is consistent with the observed large daily upward and downward shifts in prices - a clear evidence that it is not a fundamental-driven market. Thus, from a policy point of view - given the impact of volatile oil prices on global inflation and growth - actions that monitor speculative activities on commodity markets more effectively are to be welcomed. (author)

Branding and Performance in the Global Beer Market

DEFF Research Database (Denmark)

Madsen, Erik Strøjer

The mass market for beers is served by a few global breweries in an oligopoly structure covering most of the world market. The homogeneity of their main lager beers are very high and produced at large scaled plants at low costs. However, the breweries spend large amounts of money to promote some...... of the lager beers as premium beers and at a high and increasing price premium. Based on a database with prices for standard and premium lager, the paper study the development in the consumption of different types of beers on the global market in recent years. We estimate the price premium on premium beers...... and relate it to the rapid change in the oligopoly structure of the market through the merger and acquisition activities....

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.

The impact of electricity price changes on industrial prices and the general price level in Korea

International Nuclear Information System (INIS)

Lim, Seul-Ye; Yoo, Seung-Hoon

2013-01-01

Electricity has played an important role in the economic development of Korea and, thus, has become a critical factor in sustaining the well-being of the Korean people. This study attempts to investigate the impact of electricity price changes on industrial prices and the general price level using input–output (I–O) analysis. To this end, we apply the I–O price model to the 2011 I–O table recently produced by the Bank of Korea, paying particular attention to the electricity sector by considering it as exogenous and then investigating its impacts. The impacts of the electricity price changes on each industrial sector's prices and the general price level are quantitatively derived. For example, the overall impact of a 10% increase in electricity price on the Korean national economy is estimated to be 0.4367%. We also report the results from the model with the electricity sector endogenous and the model with endogenous electricity and labor sectors. This information can be usefully utilized in decision-making regarding price management for electricity. - Highlights: • We investigate the impact of electricity price changes on the Korean economy. • We use the input–output (I–O) analysis specifying the electricity sector as exogenous. • We apply the I–O price model to 2010 I–O table produced by the Bank of Korea. • The impact of a 10% increase in electricity price on the Korean economy is 0.2176%

Pulp & paper markets cope with high energy prices and growth in Asia : markets for paper, paperboard and woodpulp, 2005-2006

Science.gov (United States)

Peter J. Ince

2006-01-01

\\tPulp and paper markets in the UNECE region were influenced by higher energy prices and demand growth in Asia in 2005 and 2006. Important developments in Europe included the launching of the EU Emissions Trading Scheme, which was followed by substantial increases in electrical energy prices. High global energy prices pushed up costs of production and prices for pulp...

Price-Anderson Act: Congressional review begins

International Nuclear Information System (INIS)

Anon.

1984-01-01

Every 10 years Congress reviews, amends, and extends the Price-Anderson Act of 1957, which was designed to encourage the new nuclear industry by guaranteeing insurance beyond the level provided by private insurers. The Nuclear Regulatory Commission is recommending five congressional actions for the 1987 extension: reauthorization, replacement of the absolute insurance limitation with an annual limitation of liability, raising the retrospective premium per reactor per incident from $5 million to $10 million, raising the statute of limitations on claims for 20 to 30 years, and retaining current language dealing with extraordinary events. Two bills, H.R. 421 and H.R. 3277, were introduced with provisions that broaden the opportunity for victims compensation and eliminate the subsidy aspect. Hearings began in July, with reactions from the National Taxpayers Union and Nuclear insurance underwriters in conflict over the limitations on liability. DOE and DOE contractors urge continuation of the Price-Anderson limitation

Pricing of electricity in Indonesia

International Nuclear Information System (INIS)

Amarullah, M.

1983-01-01

The objectives of this study are 1) to establish a sound theoretical basis for the determinants of electricity demand in Indonesia, 2) to measure the welfare losses of existing electricity pricing, and 3) to suggest a method of reducing these welfare losses. An econometric model for electricity demand is estimated using pooled time-series of fifteen regions in Indonesia covering the period 1970-1979. The short run price elasticities for both residential and industrial/business sectors are found to be inelastic, while the long run price elasticities for these sectors are found to be quite elastic with a value of -.61 for the residential sector and of -1.1 for the industrial/business sector. Income elasticity is .8 in the short run and around 1.00 for the long run. The exposure variable that captures the accessibility of electricity, has long run elasticity of 1.00 for the residential sector and less than 1.00 for the industrial/business sector. Due to distributional considerations, the 1980's electricity rate was set below its efficient level, and has created a welfare loss of Rp.8273.23 million per month. This accounts for 36.03% of the monthly electricity revenue. A rebate mechanism is recommended in this study, which provides a way to mitigate conflicting aspects of efficiency and equity

Pricing hazardous substance emissions

Energy Technology Data Exchange (ETDEWEB)

Staring, Knut; Vennemo, Haakon

1997-12-31

This report discusses pricing of emissions to air of several harmful substances. It combines ranking indices for environmentally harmful substances with economic valuation data to yield price estimates. The ranking methods are discussed and a relative index established. Given the relative ranking of the substances, they all become valued by assigning a value to one of them, the `anchor` substance, for which lead is selected. Valuations are provided for 19 hazardous substances that are often subject to environmental regulations. They include dioxins, TBT, etc. The study concludes with a discussion of other categories of substances as well as uncertainties and possible refinements. When the valuations are related to CO, NOx, SOx and PM 10, the index system undervalues these pollutants as compared to other studies. The scope is limited to the outdoor environment and does not include global warming and eutrophication. The indices are based on toxicity and so do not apply to CO{sub 2} or other substances that are biologically harmless. The index values are not necessarily valid for all countries and should be considered as preliminary. 18 refs., 6 tabs.

Pricing hazardous substance emissions

Energy Technology Data Exchange (ETDEWEB)

Staring, Knut; Vennemo, Haakon

1998-12-31

This report discusses pricing of emissions to air of several harmful substances. It combines ranking indices for environmentally harmful substances with economic valuation data to yield price estimates. The ranking methods are discussed and a relative index established. Given the relative ranking of the substances, they all become valued by assigning a value to one of them, the `anchor` substance, for which lead is selected. Valuations are provided for 19 hazardous substances that are often subject to environmental regulations. They include dioxins, TBT, etc. The study concludes with a discussion of other categories of substances as well as uncertainties and possible refinements. When the valuations are related to CO, NOx, SOx and PM 10, the index system undervalues these pollutants as compared to other studies. The scope is limited to the outdoor environment and does not include global warming and eutrophication. The indices are based on toxicity and so do not apply to CO{sub 2} or other substances that are biologically harmless. The index values are not necessarily valid for all countries and should be considered as preliminary. 18 refs., 6 tabs.

Food Price Volatility and Decadal Climate Variability

Science.gov (United States)

Brown, M. E.

2013-12-01

The agriculture system is under pressure to increase production every year as global population expands and more people move from a diet mostly made up of grains, to one with more meat, dairy and processed foods. Weather shocks and large changes in international commodity prices in the last decade have increased pressure on local food prices. This paper will review several studies that link climate variability as measured with satellite remote sensing to food price dynamics in 36 developing countries where local monthly food price data is available. The focus of the research is to understand how weather and climate, as measured by variations in the growing season using satellite remote sensing, has affected agricultural production, food prices and access to food in agricultural societies. Economies are vulnerable to extreme weather at multiple levels. Subsistence small holders who hold livestock and consume much of the food they produce are vulnerable to food production variability. The broader society, however, is also vulnerable to extreme weather because of the secondary effects on market functioning, resource availability, and large-scale impacts on employment in trading, trucking and wage labor that are caused by weather-related shocks. Food price variability captures many of these broad impacts and can be used to diagnose weather-related vulnerability across multiple sectors. The paper will trace these connections using market-level data and analysis. The context of the analysis is the humanitarian aid community, using the guidance of the USAID Famine Early Warning Systems Network and the United Nation's World Food Program in their response to food security crises. These organizations have worked over the past three decades to provide baseline information on food production through satellite remote sensing data and agricultural yield models, as well as assessments of food access through a food price database. Econometric models and spatial analysis are used

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...

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.

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

A two-level discount model for coordinating a decentralized supply chain considering stochastic price-sensitive demand

Science.gov (United States)

Heydari, Jafar; Norouzinasab, Yousef

2015-12-01

In this paper, a discount model is proposed to coordinate pricing and ordering decisions in a two-echelon supply chain (SC). Demand is stochastic and price sensitive while lead times are fixed. Decentralized decision making where downstream decides on selling price and order size is investigated. Then, joint pricing and ordering decisions are extracted where both members act as a single entity aim to maximize whole SC profit. Finally, a coordination mechanism based on quantity discount is proposed to coordinate both pricing and ordering decisions simultaneously. The proposed two-level discount policy can be characterized from two aspects: (1) marketing viewpoint: a retail price discount to increase the demand, and (2) operations management viewpoint: a wholesale price discount to induce the retailer to adjust its order quantity and selling price jointly. Results of numerical experiments demonstrate that the proposed policy is suitable to coordinate SC and improve the profitability of SC as well as all SC members in comparison with decentralized decision making.

The determination of parameters for thermal unit pricing and economic interchange

International Nuclear Information System (INIS)

Briggs, D.W.; Pickles, R.; McPhail, E.M.

1988-01-01

When an interchange of energy occurs between adjoining utilities which is not the subject of a predetermined fixed price agreement but is related to the immediate cost of generating and transmitting the power, the purchaser and seller need to know the cost of the power before agreeing to the interchange. A working party from three Maritime utilities was set up to reveiw areas of interchange energy pricing between them and in particular standardize the following aspects: test procedure for a unit heat rate over its load range; maintenance and operating costs; provision for contingency costs; start up costs of units; and a pricing formula considering the above items. The three utilities are Nova Scotia Power Corporation, Maritime Electric, and New Brunswick Power Commission. Details are presented of the three utility's methods of determining heat rate, operating factor, total fuel cost, transmission loss, operations and maintenance costs, gas turbine parameters, pricing formulae, and start up costs. 2 figs., 7 tabs

Delivered Pricing, FOB Pricing, and Collusion in Spatial Markets

OpenAIRE

Maria Paz Espinosa

1992-01-01

This article examines price discrimination and collusion in spatial markets. The problem is analyzed in the context of a repeated duopoly game. I conclude that the prevailing pricing systems depend on the structural elements of the market. Delivered pricing systems emerge in equilibrium in highly monopolistic and highly competitive industries, while FOB is used in intermediate market structures. The fact driving this result is that delivered pricing policies allow spatial price discrimination...

Refining prices and margins in 1998

International Nuclear Information System (INIS)

Favennec, J.P.; Baudoin, C.

1999-01-01

Despite a business environment that was globally mediocre due primarily to the Asian crisis and to a mild winter in the northern hemisphere, the signs of improvement noted in the refining activity in 1996 were borne out in 1997. But the situation is not yet satisfactory in this sector: the low return on invested capital and the financing of environmental protection expenditure are giving cause for concern. In 1998, the drop in crude oil prices and the concomitant fall in petroleum product prices was ultimately rather favorable to margins. Two elements tended to put a damper on this relative optimism. First of all, margins continue to be extremely volatile and, secondly, the worsening of the economic and financial crisis observed during the summer made for a sharp decline in margins in all geographic regions, especially Asia

Residential CCHP microgrid with load aggregator: Operation mode, pricing strategy, and optimal dispatch

International Nuclear Information System (INIS)

Gu, Wei; Lu, Shuai; Wu, Zhi; Zhang, Xuesong; Zhou, Jinhui; Zhao, Bo; Wang, Jun

2017-01-01

Highlights: •A bilateral transaction mode for the residential CCHP microgrid is proposed. •An energy pricing strategy for the residential CCHP system is proposed. •A novel integrated demand response for the residential loads is proposed. •Two-stage operation optimization model for the CCHP microgrid is proposed. •Operations of typical days and annual scale of the CCHP microgrid are studied. -- Abstract: As the global energy crisis, environmental pollution, and global warming grow in intensity, increasing attention is being paid to combined cooling, heating, and power (CCHP) systems that realize high-efficiency cascade utilization of energy. This paper proposes a bilateral transaction mechanism between a residential CCHP system and a load aggregator (LA). The variable energy cost of the CCHP system is analyzed, based on which an energy pricing strategy for the CCHP system is proposed. Under this pricing strategy, the electricity price is constant, while the heat/cool price is ladder-shaped and dependent on the relationship between the electrical, heat, and cool loads. For the LA, an integrated demand response program is proposed that combines electricity-load shifting and a flexible heating/cooling supply, in which a thermodynamic model of buildings is used to determine the appropriate range of heating/cooling supply. Subsequently, a two-stage optimal dispatch model is proposed for the energy system that comprises the CCHP system and the LA. Case studies consisting of three scenarios (winter, summer, and excessive seasons) are delivered to demonstrate the effectiveness of the proposed approach, and the performance of the proposed pricing strategy is also evaluated by annual operation simulations.

Weighted Average Cost of Retail Gas (WACORG) highlights pricing effects in the US gas value chain: Do we need wellhead price-floor regulation to bail out the unconventional gas industry?

International Nuclear Information System (INIS)

Weijermars, Ruud

2011-01-01

The total annual revenue stream in the US natural gas value chain over the past decade is analyzed. Growth of total revenues has been driven by higher wellhead prices, which peaked in 2008. The emergence of the unconventional gas business was made possible in part by the pre-recessional rise in global energy prices. The general rise in natural gas prices between 1998 and 2008 did not lower overall US gas consumption, but shifts have occurred during the past decade in the consumption levels of individual consumer groups. Industry's gas consumption has decreased, while power stations increased their gas consumption. Commercial and residential consumers maintained flat gas consumption patterns. This study introduces the Weighted Average Cost of Retail Gas (WACORG) as a tool to calculate and monitor an average retail price based on the different natural gas prices charged to the traditional consumer groups. The WACORG also provides insight in wellhead revenues and may be used as an instrument for calibrating retail prices in support of wellhead price-floor regulation. Such price-floor regulation is advocated here as a possible mitigation measure against excessive volatility in US wellhead gas prices to improve the security of gas supply. - Highlights: → This study introduces an average retail price, WACORG. → WACORG can monitor price differentials for the traditional US gas consumer groups. → WACORG also provides insight in US wellhead revenues. → WACORG can calibrate retail prices in support of wellhead price-floor regulation. → Gas price-floor can improve security of gas supply by reducing price volatility.

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.

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...

Analysis Of Coppers Market And Price-Focus On The Last Decades Change And Its Future Trend

OpenAIRE

Eugie Kabwe; Wang Yiming

2015-01-01

Abstract it is important to analyse the major players within a copper supply chain as well as current market dynamics relevant international guidelines major impacts affecting the sustainability of the whole system and policy drivers affecting its price on the global market. Focusis on understanding major and provisional factors affecting copper price on themarketlong-term copper prices are determined by the fundamentals of supply and demand. Short term however are driven by financial market...

Why are current world food prices so high? : a memo

NARCIS (Netherlands)

Banse, M.A.H.; Nowicki, P.L.; Meijl, van H.

2008-01-01

World agricultural prices are very volatile which is due to traditional characteristics of agricultural markets such as inelastic (short run) supply and demand curves. A combination of record low global inventory levels, weather induced supply side shocks, surging outside investor influence, record

Dynamic cyclical comovements of oil prices with industrial production, consumer prices, unemployment, and stock prices

International Nuclear Information System (INIS)

Ewing, Bradley T.; Thompson, Mark A.

2007-01-01

This paper examines the empirical relationship between oil prices and several key macroeconomic variables. In particular, we investigate the cyclical comovements of crude oil prices with output, consumer prices, unemployment, and stock prices. The methodology involves the use of the Hodrick-Prescott [Hodrick, R.J., Prescott, E.C., 1980. Post-War US Business Cycles: An Empirical Investigation. Working Paper, Carnegie Mellon University] and Baxter-King [Baxter, M., King, R.G., 1999. Measuring business cycles: approximate band-pass filters for economic time series. Review of Economics and Statistics 81, 575-593] filters, as well as the recently developed full-sample asymmetric Christiano-Fitzgerald [Christiano, L.J., Fitzgerald, T.J., 2003. The band pass filter. International Economic Review 44, 435-465] band-pass filter. Contemporaneous and cross-correlation estimates are made using the stationary cyclical components of the time series to make inference about the degree to which oil prices move with the cycle. Besides documenting a number of important cyclical relationships using three different time series filtering methods, the results suggest that crude oil prices are procyclical and lag industrial production. Additionally, we find that oil prices lead consumer prices. (author)

How firms set prices for medical materials: a multi-country study.

Science.gov (United States)

Ide, Hiroo; Mollahaliloglu, Salih

2009-09-01

This study presents a comparison of medical material prices, discusses why differences exist, and examines methods for comparing prices. Market prices for drug-eluting stents (DES), non-drug-eluting stents (non-DES), and percutaneous transluminal coronary angioplasty (PTCA) catheters were collected from five countries: the United States, Japan, Korea, Turkey, and Thailand. To compare prices, three adjustment methods were used: currency exchange rates, purchasing power parity (PPP), and gross domestic product (GDP) per capita. The ratios of medical material prices compared with those in the United States were higher in Japan (from 1.4 for DES to 5.0 for PTCA catheters) and Korea (from 1.2 for DES to 4.0 for PTCA catheters), and lower in Turkey (from 0.8 for non-DES to 1.4 for DES) and Thailand (from 0.5 for non-DES to 1.3 for PTCA catheters). The PPP-adjusted ratios changed slightly for Japan, Korea, and Turkey. When the prices were adjusted by GDP per capita, the ratios were much higher. Comparing prices using currency exchange rates or PPP is applicable only between countries with stable economic relations; adjustment by GDP per capita reflects the actual burden. Further study is needed to fully elucidate the factors influencing the global medical material market.

NPP electrical price and tariff in the world

International Nuclear Information System (INIS)

Mochamad Nasrullah and Sriyana

2010-01-01

Construction of a Nuclear Power Plant (NPP) is always become a controversial issue. Nuclear utility and other party which support the NPP present a calculation of NPP electricity cost too optimistic. However for utility and other party that contra to nuclear present a calculation of NPP electricity cost too pessimistic. This study present to reduce the controversy of nuclear cost. In this study, capital cost (Engineering Procurement Construction, EPC) was taken from Asian, America and Europe, operating and maintenance cost uses experience data of PLN, and nuclear fuel cost uses data year of 2008 with high price, low price and average price scenario. The methodological tools used to compare electricity generation cost was LEGECOST, a program developed by IAEA (International Atomic Energy Agency), while for electricity tariff- price calculation using a program developed by PLN research and development center. With the discount rate 10%, the result shows that the cheapest electricity generation cost of NPP is less than 40 mills/kWh, and average electricity tariff was 55 mills/kWh. In the Europe countries the electricity tariff more expensive than NPP in Asia. However generating cost and electricity tariff of NPP in United Stated of America (USA) less competitive because investment cost more expensive. Generating cost and electricity tariff was different at each country depend on salary, labor wage, materials price, construction specification, regulation related to NPP and environment aspect. (author)

Energy prices and agricultural commodity prices: Testing correlation using copulas method

International Nuclear Information System (INIS)

Koirala, Krishna H.; Mishra, Ashok K.; D'Antoni, Jeremy M.; Mehlhorn, Joey E.

2015-01-01

The linear relationships between energy prices and prices for agricultural commodities such as corn and soybeans may have been affected, over the last several years, by policy legislations in the farm sector, the Energy Independence and Security Act of 2007, and the Renewable Fuel Standard Program for 2014. Using high-frequency data and newer methodology, this study investigates dependence between agricultural commodity futures prices and energy futures prices. Results reveal that agricultural commodity and energy future prices are highly correlated and exhibit positive and significant relationship. Findings from this study highlight that an increase in energy price increases the price of agricultural commodities. - Highlights: • Energy policy mandates production of 15 billion gallons of corn ethanol by 2015. • Energy-intensive agriculture has a link between energy sector and crop production costs. • We investigate correlation between energy prices and agricultural commodity prices. • Agricultural commodity and energy future prices are highly correlated. • Increase in energy price increases the price of agricultural commodity

Impact of European pharmaceutical price regulation on generic price competition: a review.

Science.gov (United States)

Puig-Junoy, Jaume

2010-01-01

Although economic theory indicates that it should not be necessary to intervene in the generic drug market through price regulation, most EU countries intervene in this market, both by regulating the maximum sale price of generics (price cap) and by setting the maximum reimbursement rate, especially by means of reference pricing systems. We analyse current knowledge of the impact of direct price-cap regulation of generic drugs and the implementation of systems regulating the reimbursement rate, particularly through reference pricing and similar tools, on dynamic price competition between generic competitors in Europe. A literature search was carried out in the EconLit and PubMed databases, and on Google Scholar. The search included papers published in English or Spanish between January 2000 and July 2009. Inclusion criteria included that studies had to present empirical results of a quantitative nature for EU countries of the impact of price capping and/or regulation of the reimbursement rate (reference pricing or similar systems) on price dynamics, corresponding to pharmacy sales, in the generic drug market. The available evidence indicates that price-cap regulation leads to a levelling off of generic prices at a higher level than would occur in the absence of this regulation. Reference pricing systems cause an obvious and almost compulsory reduction in the consumer price of all pharmaceuticals subject to this system, to a varying degree in different countries and periods, the reduction being greater for originator-branded drugs than for generics. In several countries with a reference pricing system, it was observed that generics with a consumer price lower than the reference price do not undergo price reductions until the reference price is reduced, even when there are other lower-priced generics on the market (absence of price competition below the reference price). Beyond the price reduction forced by the price-cap and/or reference pricing regulation itself

Pharmaceutical pricing: an empirical study of market competition in Chinese hospitals.

Science.gov (United States)

Wu, Jing; Xu, Judy; Liu, Gordon; Wu, Jiuhong

2014-03-01

High pharmaceutical prices and over-prescribing of high-priced pharmaceuticals in Chinese hospitals has long been criticized. Although policy makers have tried to address these issues, they have not yet found an effective balance between government regulation and market forces. Our objective was to explore the impact of market competition on pharmaceutical pricing under Chinese government regulation. Data from 11 public tertiary hospitals in three cities in China from 2002 to 2005 were used to explore the effect of generic and therapeutic competition on prices of antibiotics and cardiovascular products. A quasi-hedonic regression model was employed to estimate the impact of competition. The inputs to our model were specific attributes of the products and manufacturers, with the exception of competition variables. Our results suggest that pharmaceutical prices are inversely related to the number of generic and therapeutic competitors, but positively related to the number of therapeutic classes. In addition, the product prices of leading local manufacturers are not only significantly lower than those of global manufacturers, but are also lower than their non-leading counterparts when other product attributes are controlled for. Under the highly price-regulated market in China, competition from generic and therapeutic competitors did decrease pharmaceutical prices. Further research is needed to explore whether this competition increases consumer welfare in China's healthcare setting.

The global economic long-term potential of modern biomass in a climate-constrained world

Science.gov (United States)

Klein, David; Humpenöder, Florian; Bauer, Nico; Dietrich, Jan Philipp; Popp, Alexander; Bodirsky, Benjamin Leon; Bonsch, Markus; Lotze-Campen, Hermann

2014-07-01

Low-stabilization scenarios consistent with the 2 °C target project large-scale deployment of purpose-grown lignocellulosic biomass. In case a GHG price regime integrates emissions from energy conversion and from land-use/land-use change, the strong demand for bioenergy and the pricing of terrestrial emissions are likely to coincide. We explore the global potential of purpose-grown lignocellulosic biomass and ask the question how the supply prices of biomass depend on prices for greenhouse gas (GHG) emissions from the land-use sector. Using the spatially explicit global land-use optimization model MAgPIE, we construct bioenergy supply curves for ten world regions and a global aggregate in two scenarios, with and without a GHG tax. We find that the implementation of GHG taxes is crucial for the slope of the supply function and the GHG emissions from the land-use sector. Global supply prices start at 5 GJ-1 and increase almost linearly, doubling at 150 EJ (in 2055 and 2095). The GHG tax increases bioenergy prices by 5 GJ-1 in 2055 and by 10 GJ-1 in 2095, since it effectively stops deforestation and thus excludes large amounts of high-productivity land. Prices additionally increase due to costs for N2O emissions from fertilizer use. The GHG tax decreases global land-use change emissions by one-third. However, the carbon emissions due to bioenergy production increase by more than 50% from conversion of land that is not under emission control. Average yields required to produce 240 EJ in 2095 are roughly 600 GJ ha-1 yr-1 with and without tax.

The global economic long-term potential of modern biomass in a climate-constrained world

International Nuclear Information System (INIS)

Klein, David; Humpenöder, Florian; Bauer, Nico; Dietrich, Jan Philipp; Popp, Alexander; Leon Bodirsky, Benjamin; Bonsch, Markus; Lotze-Campen, Hermann

2014-01-01

Low-stabilization scenarios consistent with the 2 °C target project large-scale deployment of purpose-grown lignocellulosic biomass. In case a GHG price regime integrates emissions from energy conversion and from land-use/land-use change, the strong demand for bioenergy and the pricing of terrestrial emissions are likely to coincide. We explore the global potential of purpose-grown lignocellulosic biomass and ask the question how the supply prices of biomass depend on prices for greenhouse gas (GHG) emissions from the land-use sector. Using the spatially explicit global land-use optimization model MAgPIE, we construct bioenergy supply curves for ten world regions and a global aggregate in two scenarios, with and without a GHG tax. We find that the implementation of GHG taxes is crucial for the slope of the supply function and the GHG emissions from the land-use sector. Global supply prices start at $5 GJ −1 and increase almost linearly, doubling at 150 EJ (in 2055 and 2095). The GHG tax increases bioenergy prices by $5 GJ −1 in 2055 and by $10 GJ −1 in 2095, since it effectively stops deforestation and thus excludes large amounts of high-productivity land. Prices additionally increase due to costs for N 2 O emissions from fertilizer use. The GHG tax decreases global land-use change emissions by one-third. However, the carbon emissions due to bioenergy production increase by more than 50% from conversion of land that is not under emission control. Average yields required to produce 240 EJ in 2095 are roughly 600 GJ ha −1 yr −1 with and without tax. (letter)

Understanding Price Controls and Non-Price Competition with Matching Theory

OpenAIRE

Hatfield, John William; Plott, Charles R.; Tanaka, Tomomi

2012-01-01

We develop a quality competition model to understand how price controls affect market outcomes in buyer-seller markets with discrete goods of varying quality. While competitive equilibria do not necessarily exist in such markets when price controls are imposed, we show that stable outcomes do exist and characterize the set of stable outcomes in the presence of price restrictions. In particular, we show that price controls induce non-price competition: price floors induce the trade of ineffici...

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

Price performance following stock's IPO in different price limit systems

Science.gov (United States)

Wu, Ting; Wang, Yue; Li, Ming-Xia

2018-01-01

An IPO burst occurred in China's stock markets in 2015, while price limit trading rules usually help to reduce the short-term trading mania on individual stocks. It is interesting to make clear the function of the price limits after IPOs. We firstly make a statistical analysis based on all the IPO stocks listed from 1990 to 2015. A high dependency exists between the activities in stock's IPO and various market environment. We also focus on the price dynamics in the first 40 trading days after the stock listed. We find that price limit system will delay the price movement, especially for the up-trend movements, which may lead to longer continuous price limit hits. Similar to our previous work, many results such as ;W; shape can be also observed in the future daily return after the price limit open. At last, we find most IPO measures show evident correlations with the following price limit hits. IPO stocks with lower first-day turnover and earning per share will be followed with a longer continuous price limit hits and lower future daily return under the newest trading rules, which give us a good way to estimate the occurrence of price limit hits and the following price dynamics. Our analysis provides a better understanding of the price dynamics after IPO events and offers potential practical values for investors.

Gas markets and pricing in Asia

International Nuclear Information System (INIS)

Mashayekhi, A.; Law, P.L.

1992-01-01

The issues of natural gas market development and pricing are reviewed within the context of specific Asian countries where gas plays an important role. Within Southeast Asia, Malaysia's Penninsular Gas Utilization project signals a new era in pipeline gas trade with an agreement to supply Singapore. There is now also an opportunity to extend Malaysian pipeline supplies to Thailand, which is actively seeking natural gas from neighboring countries. The prospects for LNG are dominated by the high growth markets of Japan, South Korea, and Taiwan. LNG trade has tended to bind the region together through close economic ties. Due to the increasing damand within the supplier countries themselves and their close neighbors, it is likely that LNG consumers will increasingly need to look beyond their traditional Southeast Asian suppliers in the future, perhaps to higher cost LNG schemes outside the region. In Southeast Asia, reduction of the high volumes of associated gas currently flared from the Bombay High Field in India will not only make big contribution to meeting the country's future gas demand, but will also prove environmentally beneficial. Pakistan, in order to control its developing gas markets, has raised gas prices to consumers substantially, with beneficial effects on supply and demand. In Bangladesh, economic pricing has been important in allocating gas resources efficiently. At both the regional and global level, the link between gas use and the environment is becoming stronger, raising the question of relating gas and energy prices to environmental costs and benefits

Three essays on access pricing

Science.gov (United States)

Sydee, Ahmed Nasim

access pricing with congestion and in which investments in infrastructure are lumpy. To fix ideas, the model is formulated in the context of airport infrastructure investments, which captures both the element of congestion and the lumpiness involved in infrastructure investments. The optimal investment program suggests how many units of capacity should be installed and at which times. Because time is continuous in the model, the discounted cost -- despite the lumpiness of capacity additions -- can be made to vary continuously by varying the time a capacity addition is made. The main results that emerge from the analysis can be described as follows: First, the global demand for air travel rises with time and experiences an upward jump whenever a capacity addition is made. Second, the access price is constant and stays at the basic level when the system is not congested. When the system is congested, a congestion surcharge is imposed on top of the basic level, and the congestion surcharge rises with the level of congestion until the next capacity addition is made at which time the access price takes a downward jump. Third, the individual demand for air travel is constant before congestion sets in and after the last capacity addition takes place. During a time interval in which congestion rises, the individual demand for travel is below the level that prevails when there is no congestion and declines as congestion worsens. The third essay contains a model of access pricing for natural gas transmission pipelines, both when pipeline operators are regulated and when they behave strategically. The high sunk costs involved in building a pipeline network constitute a serious barrier of entry, and competitive behaviour in the transmission pipeline sector cannot be expected. Most of the economic analyses of access pricing for natural gas transmission pipelines are carried out from the regulatory perspective, and the access price paid by shippers are cost-based. The model formalized

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

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)

Computation of spot prices and congestion costs in large interconnected power systems

International Nuclear Information System (INIS)

Mukerji, R.; Jordan, G.A.; Clayton, R.; Haringa, G.E.

1995-01-01

Foremost among the new paradigms for the US utility industry is the ''poolco'' concept proposed by Prof. William W. Hogan of Harvard University. This concept uses a central pool or power exchange in which physical power is traded based on spot prices or market clearing prices. The rapid and accurate calculation of these ''spot'' prices and associated congestion costs for large interconnected power systems is the central tenet upon which the poolco concept is based. The market clearing price would be the same throughout the system if there were no system losses and transmission limitations did not exist. System losses cause small differences in market clearing prices as the cost of supplying a MW at various load buses includes the cost of losses. Transmission limits may cause large differences in market clearing prices between regions as low cost generation is blocked by the transmission constraints from serving certain loads. In models currently in use in the electric power industry spot price calculations range from ''bubble diagram'' type contract path models to full electrical representation such as GE-MAPS. The modeling aspects of the full electrical representation are included in the Appendix. The problem with the bubble diagram representation is that these models are liable to produce unacceptably large errors in the calculation of spot prices and congestion costs. The subtleties of the calculation of spot prices and congestion costs are illustrated in this paper

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.

Customer response on price incentives

International Nuclear Information System (INIS)

Naesje, Paal C.; Andersen, Thale K.; Saele, Hanne

2005-01-01

This paper analyses the relation between end-users energy attitudes and their corresponding energy behaviour. It presents empirical findings from analyses of the effects of two-way communication between consumers and power companies. Two-way communication has made available high quality data on energy consumption. In the build-up to the analysis in this paper the a number of aspects thought to influence energy consumption has been looked at; including standard of housing, number and age of residents, as well as socio-economic factors, behaviour and preferences. Here we choose to focus specifically on attitudes and behaviour. These aspects are controlled for price incentives. The combination of very tight peak power balance in the Nordic power system and few investments in extension of power networks has turned the focus towards manual or automatic demand-response which requires hourly metering for documentation. The data are two-fold: Hourly recordings of meter-data of electric consumption of 10,894 customers (nearly half of these had installed technology for remote load control) in two different network areas and survey-data from a questionnaire distributed to consumers that resulted in nearly 550 answers. During the winter 2003/2004 these customers were offered different price incentives. The analyses showed a net reduction in electricity consumption of 1,0 kWh/h at the most in peak load hours. The paper is based on two connected studies, 'End-user flexibility by efficient use of ICT' and 'Improving end-user knowledge for managing energy loads end consumption' conducted in Norway by the SINTEF group

Differential electricity pricing and energy efficiency in South Africa

International Nuclear Information System (INIS)

Kohler, Marcel

2014-01-01

By international standards the economy of South Africa is extremely energy intensive with only a few countries having higher intensities. SA's primary energy use per unit of GDP is amongst the highest in the world. The high energy and electricity intensity of the economy partly reflects SA's resource endowments (in particular the abundance of coal) but is also a function of the historical under-pricing of coal and electricity by the authorities. South African mining and industrial electricity efficiency is particularly concerning and considerably lower than the global average. This paper sets out to fill a significant gap in the South African energy literature by highlighting the importance of incorporating electricity demand factors as part of the country's energy policy and electricity planning horizon. The paper focuses its attention on modelling the electricity consumption of SA's industrial and mining sectors given these account for the lion's share of electricity demand. A differential electricity pricing policy which targets electricity intensive industrial and mining activities (as practised in China since 2004) is viewed by the author to be a superior policy to blanket electricity price increases administered by authorities in an effort to encourage electricity savings and improve energy efficiency in South Africa. - Highlights: • SA's primary energy use per unit of GDP is amongst the highest in the world. • SA industrial electricity efficiency is considerably lower than the global average. • A differential electricity pricing policy which targets electricity intensive activities. • Differential tariffs raise the cost of energy inefficiency and induces energy saving. • Highlights importance of energy demand modelling in electricity supply planning

Provisioning in Agricultural Communities: Local, Regional and Global Cereal Prices and Local Production on Three Continents

Science.gov (United States)

Brown, Molly E.; Tondel, Fabien; Essam, Timothy; Thorne, Jennifer A.; Mann, Bristol F.; Eilerts, Gary

2012-01-01

Monitoring and incorporating diverse market and staple food information into food price indices is critical for food price analyses. Satellite remote sensing data and earth science models have an important role to play in improving humanitarian aid timing, delivery and distribution. Incorporating environmental observations into econometric models will improve food security analysis and understanding of market functioning.

Why do stumpage prices increase more than lumber prices?

Science.gov (United States)

William G. Luppold; John E. Baumgras; John E. Baumgras

1998-01-01

Every sawmiller who has been in business more than 5 years realizes that hardwood stumpage prices tend to increase faster than lumber prices, decreasing the margin between these two prices. Although increases in stumpage versus lumber prices are readily apparent, the reason for the decrease in the margin is not. Recent research findings indicate that the stumpage/...

Global thermal coal trade outlook

International Nuclear Information System (INIS)

Ewart, E.

2008-01-01

Wood Mackenzie operates coal consulting offices in several cities around the world and is the number one consulting company in terms of global coal coverage. The company offers a unique mine-by-mine research methodology, and owns a proprietary modeling system for coal and power market forecasting. This presentation provided an overview of global thermal markets as well as recent market trends. Seaborne markets have an impact on price far greater than the volume of trade would imply. Research has also demonstrated that the global thermal coal market is divided between the Pacific and Atlantic Basins. The current status of several major coal exporting countries such as Canada, the United States, Venezuela, Colombia, Indonesia, Australia, China, South Africa, and Russia was displayed in an illustration. The presentation included several graphs indicating that the seaborne thermal coal market is highly concentrated; traditional coal flow and pricing trends shift as Asian demand growth and supply constraints lead to chronic under supply; coal prices have risen to historic highs in recent times; and, the Asian power sector demand is a major driver of future growth. The correlation between oil and gas markets to thermal coal was illustrated along with two scenarios of coal use in the United States in a carbon-constrained world. The impact of carbon legislation on coal demand from selected coal regions in the United States was also discussed. Wood Mackenzie forecasts a very strong growth in global thermal coal demand, driven largely by emerging Asian economies. tabs., figs

Locational Prices in Capacity Subscription Market Considering Transmission Limitations

Directory of Open Access Journals (Sweden)

S. Babaeinejad Sarookolaee

2013-06-01

Full Text Available This study focuses on one of the most effective type of capacity markets named Capacity Subscription (CS market which is predicted to be widely used in the upcoming smart grids. Despite variant researches done about the mechanism and structure of capacity markets, their performances have been rarely tested in the presence of network constraints. Considering this deficiency, we tried to propose a new method to determine capacity prices in the network considering the transmission line flow limitations named Local capacity Prices (LP. This method is quite new and has not been tried before in any other similar researches. The philosophy of the proposed method is to determine capacity prices considering each consumer share of total peak demand. The first advantage of LP is that the consumers who benefit from the transmission facilities and are the responsible for transmission congestions, pay higher capacity prices than those whom their needed electricity is prepared locally. The second advantage of LP is that consumers connected to the same bus do not have to pay same capacity price due to their different shares of total peak demand. For more clarification, two other different methods named Branches Flow limit as a Global Limit (BFGL and Locational Capacity Prices (LCP are proposed and compared to the LP method in order to show LP method efficiency. The numerical results obtained from case studies show that the LP method follows more justice market procedure which results in more efficient capacity prices in comparison to BFGL and LCP methods.

PRICING POLICY AND MARKETING STRATEGIES AS A PART OF COMPETITIVE ADVANTAGE OF RETAILS STORES IN THE SLOVAK REPUBLIC

OpenAIRE

Jaroslava Gburová; Róbert Štefko; Radovan Baèík

2013-01-01

The paper deals with price and marketing pricing strategies of retail chain stores in the Slovak Republic. The aim of this paper is to highlight the perception of the impact of economic recession in the retail chain stores. To determine the most used marketing pricing strategies has been used analysis of variance ANOVA. The global finance crisis does not have influence to selection and implementation of pricing strategy, which is used by branches of chain stores marketing management of in are...

DYNAMICS AND NEW CHALLENGES IN THE GLOBAL COMMODITY MARKET

Directory of Open Access Journals (Sweden)

MARIA CARTAS

2015-12-01

Full Text Available Global economy and particularly the world production of goods depends to a large extent on the supply of raw materials, of resource inputs extracted from the environment as well as an easy access to them. Commodities play an important part in the growth of global production and in the world trade in goods and services. The access to raw materials is vital for sustaining the productive capacity of the economy and also for satisfying domestic demand for industrial goods. On the other side, increasing demand for commodities and the need for assuring a sustainable supply pose great challenges on the world economy. The issue of raw materials supply represents a high - priority theme in the political agenda of the European Union. The Raw Materials Initiative launched in 2008 by the European Commission is based on three main pillars: - to ensure the access to raw materials on world market at undistorted conditions; - to foster sustainable supply of raw materials from European sources; - to reduce the EU's consumption of primary raw materials. (EC, 2008. To this end, EC has started to take action in order to ensure access to resources and avoid supply shortages. A great deal of attention is being paid to the study of recent developments in the global and particular commodity markets, taking into consideration fundamental aspects as supply concentration, governance of producing countries, the pressure of demand and its impact on prices, material's substitutability, stressing the role of resource consumption efficiency, recycling and substitution of vital raw materials and thus providing policy makers and industry with reliable information on how to efficiently manage resource inputs. This paper is dealing with the main developments which occurred during the past decade or so in the global commodity market, a major driver of the world economy, with particular reference to selected key -markets - as: aluminium, copper, nickel; cotton; corn, meat - swine