Addendum to: Importing Skill-Biased Technology
|
|
- Barnaby Bailey
- 8 years ago
- Views:
Transcription
1 Addendum to: Importng Skll-Based Technology Arel Bursten UCLA and NBER Javer Cravno UCLA August 202 Jonathan Vogel Columba and NBER Abstract Ths Addendum derves the results dscussed n secton 3.3 of our man paper.
2 Alternatve quanttatve trade models In ths secton we embed captal-skll complementarty nto an alternatve quanttatve trade model featurng monopolstc competton and heterogeneous rms. We rst analyze the case wth restrcted entry, n whch the mass of actve rms n each country s exogenously determned, and rms productvtes are drawn from a Pareto dstrbuton, as n the Chaney (2008) model. We show how to solve for real wages and the skll premum as a functon of domestc varables n ths settng. We note, however, that the expressons lnkng changes n the skll premum to changes n domestc expendture shares d er from those n the Rcardan model developed n the paper, and that changes n real wages now also depend on changes n the domestc trade balance. Fnally, we allow for endogenous entry as n Meltz (2003) and show that n ths case domestc expendture shares and the domestc trade balance are no longer su cent statstcs for the mpact of trade on the skll premum. We assume that there s a contnuum of producers n each country and sector, each producng a d erentated good. Producers operate the constant returns to scale technology detaled n the paper, y ('; j) = A 'b c;, where b c; b 3; b 4; s an nput bundle, b 3; and b 4; are de ned as n the paper, ' s the producer s dosyncratc productvty, and we ndex producers by ther productvty and ther sector. In addton to producton costs, we assume that ntermedate producers from country and sector j must ncur an ceberg trade cost n and a xed cost f n to sell n country n. The xed cost s denomnated n unts of the composte producton bundle b c;. Ths mples that producers n sector j must pay a xed cost c f n to sell n country n, where c s the unt cost of the composte producton bundle and s de ned n the paper. The dstrbuton of productvtes s gven by G ('; j) n sector j n each country. Productvtes are dstrbuted Pareto wth shape parameter and support [; ]: G ('; j) = '.. Restrcted entry We wll rst assume that the mass of rms operatng n each sector n each country M s determned exogenously. Frm s problem. The pro t maxmzng prce of a rm wth productvty ', operatng n A-
3 sector j, and sellng from country to country n s p n ('; j) = n n c n A '. Varable pro ts, & n ('; j), for ths rm are & n ('; j) = ' n n n [ n ] n n c A P n n Y n. If the rm s actve n market n, ts demand for the composte bundle s b c;n ('; j) = n p n ('; j) q n ('; j) + f n. n c The productvty threshold ' n below whch rms decde not to serve the market s gven by & n (' n ; j) = c f n. Aggregates. Aggregatng across rms, countres, and sectors, we obtan total demand of the nput bundle to be used n producton Bc;n P = X X c n j n n ('; j) P n Y n n where h M s the mass of rms from country operatng n sector j and where n ('; j) = R. p ' n n ('; j) q n ('; j) M dg ('; j) [P n Y n ] s the share of country n expendtures n sector j spent on goods produced n country. Total demand for the nput bundle to cover xed costs s gven by B F;c = X n X j f n M [ From the de nton of the partcpaton cuto, we obtan n ('; j) P n Y n c = Aggregate demand for the nput bundle s G (' n ; j)] n + n f n M [ G (' n ; j)] B c B F;c + B P c;n = X n X n + n n P n Y n. n c j A-2
4 Note that our mod ed market structure, relatve to the perfectly compettve market structure n our man paper, does not alter how total payments to the nput bundle, c B c, are splt among nputs. In addton, note that aggregate pro ts are: = X X n P n Y n c B c n j = X X n n P n Y n n j n Fnally, we can wrte the prce ndex n country for goods n sector j as " X Z P = n ' n n c n A n ' # n M n dg ('; j), and usng the de nton of the cuto, we can wrte the expendture share as c n = A n n f n n n n P n M ; (A) P n Y n wth + n n n (n ). We now characterze the steady-state equlbrum n the world economy... Steady-State Equlbrum We now de ne and characterze the steady state equlbrum for the world economy. In dong so, we show how aggregate quanttes and prces can be determned before solvng for product level varables. A steady-state equlbrum for the aggregate varables n the world economy conssts of a set of prces fv ; w ; r ; s g 2I, fp b; ; p b2; ; p b3; ; p b4; ; c g 2I, fp (S) ; P (M) ; P (E)g 2I, aggregate quanttes fk (S) ; K (E) ; X (M) ; X (S)g 2I, fc (M) ; C (S)g 2I, fy (M) ; Y (S); Y (E)g 2I ; partcpaton cuto s f' n g ;n2i ; j2j and trade shares f n g ;n2i ; j2j such that, gven factor supples, fh ; L g 2I and fm g ;n2i ; j2j, technologes, fa (S) ; A (M) ; A (E) g 2I, and net exports, fnx g 2I ; n each country, the followng are sats ed:. Household s maxmze utlty subject to ther budget constrants: The household s optmalty condtons n steady state are gven by the Euler equatons (6) and (7) n the man paper, and the ntra-temporal consumpton equaton (8) n the man paper. A-3
5 The budget constrant s now wrtten as, (w L + s H + v K (S) + r K (E) + ) ( + nx ) = P (E) (E) K (E) (A2) +P (M) C (M) +P (S) [C (S) + (S) K (S)] h where aggregate pro ts are gven by: = n PI n n= n ('; j) P n Y n. As n the man paper, nx denotes net exports as a share of GDP, whch we take as a parameter. 2. Cost mnmzaton by producers of ntermedate goods: Cost mnmzaton mples equatons (20) (24) n the man paper. 3. Cost mnmzaton by producers of nal goods: The sectoral prce ndces for nal goods are gven by P = X n n c n ' n M n A n ' +! n (A3) and trade shares between any par of countres are gven by equaton (A). 4. Aggregate factor market clearng: Equatons (26) (3) n the man paper are now mod ed as, and, v K (S) = c B c, (A4) w L = ( ) p b2; w c B c, (A5) r K (E) = ( ) ( ) pb; s H = ( ) ( ) ( ) r pb2; c B c, p b; pb; pb2; s p b; c B c, (A6) (A7) P (S) X (S) = " ( ) c B c, (A8) P (M) X (M) = ( " ) ( ) c B c, (A9) where c B c = X n X j n + n n P n Y n. (A0) n c 5. Aggregate goods markets clear n each country: These are gven by equatons (33) (35) n the man paper. A-4
6 6. The partcpaton cuto s are gven by: ' n = n c A " c f n [ n ] n n n P n n Y n..2 Solvng n Terms of Domestc Expendture Shares # n. (A) In ths secton we show how to solve for all aggregate domestc varables as functons of domestc expendture shares,, domestc productvtes, A, domestc factor supples fh ; L g and fm g, and net exports nx. To better understand the d erence wth the Rcardan model, we use equaton (A) to wrte aggregate prce ndces as functons of domestc expendture shares, " c P = ('; j) A n n f P Y n n # : (A2) Note that sectoral prce ndces P are functons of sectoral expendtures, P Y, snce these determne the partcpaton cuto s and hence the dstrbuton of prces n each sector. Snce sectoral expendtures are not constant across equlbra, we cannot solve for the model s prces ndependently of the quanttes, as we dd n the Rcardan model. Instead, we can use the followng algorthm to solve for all aggregate domestc varables as a functon of domestc trade shares. Start by guessng expendtures n each sector P Y. From equatons (A5) and (A7) we obtan s w H L = ( ) p b;. (A3) The 3 prce ndex equatons (A2), together wth equaton (A3), the Euler equatons (6) and (7) and the cost mnmzaton equatons (20) (24) make a system of equatons. Together wth a choce of numerare these equatons can be used to solve for the 2 domestc prces. Gven prces, we can solve for quanttes as follows. Frst, solve for K (E) and K (S) usng equatons (A4), (A6), and (A7). Second, addng equatons (A4) (A7), we solve for c B c as c B c = v K (S) + w L + r K (E) + s H. Thrd, usng equatons (A8) and (A9), we obtan ntermedate nputs X (M) and X (S). Fourth, from equaton (8) n the paper and equaton (A2), we can solve for the consumpton levels C (S) and C (M). Fnally, from the market clearng equatons (33) (35) we obtan A-5
7 total producton n each sector. Use these equatons to verfy the guess..2 Endogenous Entry We now examne the case when entry s endogenous. We assume that n every perod there s an unbounded mass of potental entrants that can pay a sunk cost f e; to enter sector j and produce a d erentated good. Producers de each perod wth probablty M 0. In an equlbrum wth entry, the entry cost must equal dscounted expected pro ts. Ths mples: where c f e; = = X n M =M n n P n Y n n are total revenues n sector j. These two equatons determne the mass of rms n each sector M n ths settng. Note that, snce M depends on revenues accrung from each destnaton, n P n Y n, we can no longer solve for the equlbrum as a functon of domestc varables only even f there s trade balance (but not sector-by-sector) for each country. 2 D erences n factor ntenstes across sectors In ths secton we extend the model to allow for heterogeneous producton functons across sectors. In partcular, we allow for the parameters the parameters f ; ; ; ; " ; ; g j2j to be sector spec c: y (!; j) = A z (!; j) b 3; b 4; wth b ; = b 2; = h = k ( E )= + ( ) = h ( =( )= ), h = l ( )= + ( ) = ( b =( )= ), b 3; = k S b 2, b 4; = x " " S x M, where we have dropped country-spec c subscrpts,, from the producton functon parameters to facltate exposton. The unt cost of producton for supplyng the domestc A-6
8 market of a producer wth productvty A z (!; j) = s now sector spec c, c = p b 3; p b4; ( ), where p b; = p b2; = h r + ( ) s, h w + ( ) p b; p b3; = v p b2; ( ), p b4; = P (S) " P (M) " " ( " ) "., Aggregate factor market clearng condtons are now wrtten as, v K (S) = X j w L = X j ( pb2; ) w r K (E) = X j pb; ( ) ( ) r pb2; p b; s H = X j pb; ( ) ( ) ( ) s pb2; p b; and ntermedate nput market clearng s wrtten as P (S) X (S) = X j P (M) X (M) = X j " ( ) ( " ) ( ) where P n n P n Y n denotes total revenue accrung to all country producers n sector j. We now express the above condtons n terms of the factor content of trade. De ne by NX F the unts of factor F that are emboded n county s net exports, NX F = X j F!, (A4) A-7
9 where F denotes the utlzaton of factor F n country and sector j, and where! s the rato of county s net exports n sector j to country s total revenue n sector j, P n! = [ n n Y n n P Y ] P n. (A5) n P n Y n By equatons (A4) and (A5), we have p F NX F = F X n6= [ n P n Y n n P Y ], (A6) where F h denotes the share of sector j revenue pad to factor F. By equaton (A6) and P = n6= n, we express equlbrum n the ntermedate nput markets as P (S) = P (M) = and n the factor markets as P j " ( ) P Y X (S) P j ( " ) ( ) P Y X (M) NX X (S) NX X(M) (A7) (A8) v = X j, P Y K (S) NX K(S) (A9) w = X j ( pb2; ) P Y, w L NX L (A20) r = X pb; ( ) ( ) (A2) r j pb2;!, P Y K (E) NX K(E) p b; s = X pb; ( ) ( ) ( ) (A22) s j pb2; P Y!, p b; H NX H A-8
10 Aggregate prces are: P = c. A (A23) Equatons (6) (9) ; (33) (35) ; and (A7) (A23) yeld a system of equatons n fw ; s ; v ; r g I =, fp g I =;j2j, fy g I =;j2j, fk (E) ; K (S)g I =, fc (M) ; C (S)g I =, and fx (M) ; X (S)g I = that characterzes the steady-state equlbrum and that depends only on domestc expendture shares by sector f g j2j, sectoral domestc productvtes fa g j2j, the factor content of trade for all factors NX F f ; ; ; ; " ; ; ; g j2j., and the parameters F 2F A-9
Elements of Advanced International Trade 1
Elements of Advanced Internatonal Trade 1 Treb Allen 2 and Costas Arkolaks 3 January 2015 [New verson: prelmnary] 1 Ths set of notes and the homeworks accomodatng them s a collecton of materal desgned
More informationIncome Distribution, Product Quality, and International Trade
Income Dstrbuton, Product Qualty, and Internatonal Trade Pablo Fajgelbaum Prnceton Unversty Gene M. Grossman Prnceton Unversty June 2009 Elhanan elpman arvard Unversty Abstract We develop a framework for
More informationSolution: Let i = 10% and d = 5%. By definition, the respective forces of interest on funds A and B are. i 1 + it. S A (t) = d (1 dt) 2 1. = d 1 dt.
Chapter 9 Revew problems 9.1 Interest rate measurement Example 9.1. Fund A accumulates at a smple nterest rate of 10%. Fund B accumulates at a smple dscount rate of 5%. Fnd the pont n tme at whch the forces
More informationStructural Estimation of Variety Gains from Trade Integration in a Heterogeneous Firms Framework
Journal of Economcs and Econometrcs Vol. 55, No.2, 202 pp. 78-93 SSN 2032-9652 E-SSN 2032-9660 Structural Estmaton of Varety Gans from Trade ntegraton n a Heterogeneous Frms Framework VCTOR RVAS ABSTRACT
More informationChapter 7: Answers to Questions and Problems
19. Based on the nformaton contaned n Table 7-3 of the text, the food and apparel ndustres are most compettve and therefore probably represent the best match for the expertse of these managers. Chapter
More informationRecurrence. 1 Definitions and main statements
Recurrence 1 Defntons and man statements Let X n, n = 0, 1, 2,... be a MC wth the state space S = (1, 2,...), transton probabltes p j = P {X n+1 = j X n = }, and the transton matrx P = (p j ),j S def.
More informationUsing Series to Analyze Financial Situations: Present Value
2.8 Usng Seres to Analyze Fnancal Stuatons: Present Value In the prevous secton, you learned how to calculate the amount, or future value, of an ordnary smple annuty. The amount s the sum of the accumulated
More informationFollow links for Class Use and other Permissions. For more information send email to: permissions@pupress.princeton.edu
COPYRIGHT NOTICE: Jord Galí: Monetary Polcy, Inflaton, and the Busness Cycle s publshed by Prnceton Unversty Press and copyrghted, 28, by Prnceton Unversty Press. All rghts reserved. No part of ths book
More informationInstitute of Informatics, Faculty of Business and Management, Brno University of Technology,Czech Republic
Lagrange Multplers as Quanttatve Indcators n Economcs Ivan Mezník Insttute of Informatcs, Faculty of Busness and Management, Brno Unversty of TechnologCzech Republc Abstract The quanttatve role of Lagrange
More informationProblem Set 3. a) We are asked how people will react, if the interest rate i on bonds is negative.
Queston roblem Set 3 a) We are asked how people wll react, f the nterest rate on bonds s negatve. When
More informationModelling the Cocaine and Heroin Markets in the Era of Globalization and Drug Reduction Policies Claudia Costa Storti and Paul De Grauwe
Modellng the Cocane and Heron Markets n the Era of Globalzaton and Drug Reducton Polces Clauda Costa Stort and Paul De Grauwe Modellng the Cocane and Heron Markets n the Era of Globalzaton and Drug Reducton
More informationTrade Adjustment and Productivity in Large Crises. Online Appendix May 2013. Appendix A: Derivation of Equations for Productivity
Trade Adjustment Productvty n Large Crses Gta Gopnath Department of Economcs Harvard Unversty NBER Brent Neman Booth School of Busness Unversty of Chcago NBER Onlne Appendx May 2013 Appendx A: Dervaton
More informationOn the Role of Consumer Expectations in Markets with Network Effects
No 13 On the Role of Consumer Expectatons n Markets wth Network Effects Irna Suleymanova, Chrstan Wey November 2010 (frst verson: July 2010) IMPRINT DICE DISCUSSION PAPER Publshed by Henrch Hene Unverstät
More informationbenefit is 2, paid if the policyholder dies within the year, and probability of death within the year is ).
REVIEW OF RISK MANAGEMENT CONCEPTS LOSS DISTRIBUTIONS AND INSURANCE Loss and nsurance: When someone s subject to the rsk of ncurrng a fnancal loss, the loss s generally modeled usng a random varable or
More informationCalculation of Sampling Weights
Perre Foy Statstcs Canada 4 Calculaton of Samplng Weghts 4.1 OVERVIEW The basc sample desgn used n TIMSS Populatons 1 and 2 was a two-stage stratfed cluster desgn. 1 The frst stage conssted of a sample
More informationHow To Calculate The Accountng Perod Of Nequalty
Inequalty and The Accountng Perod Quentn Wodon and Shlomo Ytzha World Ban and Hebrew Unversty September Abstract Income nequalty typcally declnes wth the length of tme taen nto account for measurement.
More informationBankruptcy and Aggregate Productivity
Bankruptcy and Aggregate Productvty Julan Nera Unversty of Eeter May 27, 205 Abstract I develop a model of fnancal ntermedaton to study the lnk between bankruptcy effcency the amount a lender can recover
More informationResults from the Dixit/Stiglitz monopolistic competition model
Results from the Dxt/Stgltz monopolstc competton model Rchard Foltyn February 4, 2012 Contents 1 Introducton 1 2 Constant elastcty sub-utlty functon 1 2.1 Preferences and demand..............................
More informationKiel Institute for World Economics Duesternbrooker Weg 120 24105 Kiel (Germany) Kiel Working Paper No. 1119
Kel Insttute for World Economcs Duesternbrooker Weg 120 24105 Kel (Germany) Kel Workng Paper No. 1119 Under What Condtons Do Venture Captal Markets Emerge? by Andrea Schertler July 2002 The responsblty
More informationLuby s Alg. for Maximal Independent Sets using Pairwise Independence
Lecture Notes for Randomzed Algorthms Luby s Alg. for Maxmal Independent Sets usng Parwse Independence Last Updated by Erc Vgoda on February, 006 8. Maxmal Independent Sets For a graph G = (V, E), an ndependent
More informationAnswer: A). There is a flatter IS curve in the high MPC economy. Original LM LM after increase in M. IS curve for low MPC economy
4.02 Quz Solutons Fall 2004 Multple-Choce Questons (30/00 ponts) Please, crcle the correct answer for each of the followng 0 multple-choce questons. For each queston, only one of the answers s correct.
More informationLecture 3: Force of Interest, Real Interest Rate, Annuity
Lecture 3: Force of Interest, Real Interest Rate, Annuty Goals: Study contnuous compoundng and force of nterest Dscuss real nterest rate Learn annuty-mmedate, and ts present value Study annuty-due, and
More informationElectoral Systems and Economic Growth
Electoral Systems and Economc Growth Dego Aboal Department of Economcs, Unversty of Essex May 2009 (Frst draft: May 2008) Abstract Poltcal nsttutons that are bult to deal wth con ct and arbtrate d erences
More informationIs Schumpeterian "Creative Destruction" a Plausible Source of. Endogenous Real Business Cycle Shocks?
s Schumpeteran "Creatve Destructon" a Plausble Source of Endogenous Real Busness Cycle Shocks? Kerk L. Phllps * Department of Economcs P.O. Box 22363 Brgham Young Unversty Provo, UT 84602-2363 phone: (80)
More informationIn our example i = r/12 =.0825/12 At the end of the first month after your payment is received your amount in the account, the balance, is
Payout annutes: Start wth P dollars, e.g., P = 100, 000. Over a 30 year perod you receve equal payments of A dollars at the end of each month. The amount of money left n the account, the balance, earns
More informationSupport Vector Machines
Support Vector Machnes Max Wellng Department of Computer Scence Unversty of Toronto 10 Kng s College Road Toronto, M5S 3G5 Canada wellng@cs.toronto.edu Abstract Ths s a note to explan support vector machnes.
More informationPSYCHOLOGICAL RESEARCH (PYC 304-C) Lecture 12
14 The Ch-squared dstrbuton PSYCHOLOGICAL RESEARCH (PYC 304-C) Lecture 1 If a normal varable X, havng mean µ and varance σ, s standardsed, the new varable Z has a mean 0 and varance 1. When ths standardsed
More informationThe Cox-Ross-Rubinstein Option Pricing Model
Fnance 400 A. Penat - G. Pennacc Te Cox-Ross-Rubnsten Opton Prcng Model Te prevous notes sowed tat te absence o arbtrage restrcts te prce o an opton n terms o ts underlyng asset. However, te no-arbtrage
More informationA) 3.1 B) 3.3 C) 3.5 D) 3.7 E) 3.9 Solution.
ACTS 408 Instructor: Natala A. Humphreys SOLUTION TO HOMEWOR 4 Secton 7: Annutes whose payments follow a geometrc progresson. Secton 8: Annutes whose payments follow an arthmetc progresson. Problem Suppose
More informationFisher Markets and Convex Programs
Fsher Markets and Convex Programs Nkhl R. Devanur 1 Introducton Convex programmng dualty s usually stated n ts most general form, wth convex objectve functons and convex constrants. (The book by Boyd and
More informationHealth Insurance and Household Savings
Health Insurance and Household Savngs Mnchung Hsu Job Market Paper Last Updated: November, 2006 Abstract Recent emprcal studes have documented a puzzlng pattern of household savngs n the U.S.: households
More informationDEFINING %COMPLETE IN MICROSOFT PROJECT
CelersSystems DEFINING %COMPLETE IN MICROSOFT PROJECT PREPARED BY James E Aksel, PMP, PMI-SP, MVP For Addtonal Informaton about Earned Value Management Systems and reportng, please contact: CelersSystems,
More informationEnvironmental Tax and the Distribution of Income with Heterogeneous Workers
Envronmental Tax and the Dstrbuton of Income wth Heterogeneous Workers Mrelle Chroleu-Assoulne Pars School of Economcs - Unversty Pars 1 Panthéon-Sorbonne Centre d Econome de la Sorbonne, 106-112 Bd de
More informationPolitical Economy of Sovereign Debt: Cycles of Debt Crisis and Inequality Overhang
Poltcal Economy of Soveregn Debt: Cycles of Debt Crss and Inequalty Overhang Alessandro Dovs Penn State aledovs@gmal.com Mkhal Golosov Prnceton golosov@prnceton.edu Al Shourdeh Wharton shourde@wharton.upenn.edu
More informationSupply network formation as a biform game
Supply network formaton as a bform game Jean-Claude Hennet*. Sona Mahjoub*,** * LSIS, CNRS-UMR 6168, Unversté Paul Cézanne, Faculté Sant Jérôme, Avenue Escadrlle Normande Némen, 13397 Marselle Cedex 20,
More informationForecasting the Direction and Strength of Stock Market Movement
Forecastng the Drecton and Strength of Stock Market Movement Jngwe Chen Mng Chen Nan Ye cjngwe@stanford.edu mchen5@stanford.edu nanye@stanford.edu Abstract - Stock market s one of the most complcated systems
More informationHousing Liquidity, Mobility and the Labour Market
Housng Lqudty, Moblty and the Labour Market Allen Head Huw Lloyd-Ells January 29, 2009 Abstract The relatonshps among geographcal moblty, unemployment and the value of owner-occuped housng are studed n
More informationEnvironmental Tax and the Distribution of Income with Heterogeneous Workers
Envronmental Tax and the Dstrbuton of Income wth Heterogeneous Workers Mrelle Chroleu-Assoulne Pars School of Economcs - Unversty Pars Panthéon-Sorbonne Centre d Econome de la Sorbonne, 06-2 Bd de l Hôptal
More informationAn Alternative Way to Measure Private Equity Performance
An Alternatve Way to Measure Prvate Equty Performance Peter Todd Parlux Investment Technology LLC Summary Internal Rate of Return (IRR) s probably the most common way to measure the performance of prvate
More informationWhat is Candidate Sampling
What s Canddate Samplng Say we have a multclass or mult label problem where each tranng example ( x, T ) conssts of a context x a small (mult)set of target classes T out of a large unverse L of possble
More informationHow Large are the Gains from Economic Integration? Theory and Evidence from U.S. Agriculture, 1880-2002
How Large are the Gans from Economc Integraton? Theory and Evdence from U.S. Agrculture, 1880-2002 Arnaud Costnot MIT and NBER Dave Donaldson MIT, NBER and CIFAR PRELIMINARY AND INCOMPLETE August 15, 2011
More informationPRIVATE SCHOOL CHOICE: THE EFFECTS OF RELIGIOUS AFFILIATION AND PARTICIPATION
PRIVATE SCHOOL CHOICE: THE EFFECTS OF RELIIOUS AFFILIATION AND PARTICIPATION Danny Cohen-Zada Department of Economcs, Ben-uron Unversty, Beer-Sheva 84105, Israel Wllam Sander Department of Economcs, DePaul
More information8.5 UNITARY AND HERMITIAN MATRICES. The conjugate transpose of a complex matrix A, denoted by A*, is given by
6 CHAPTER 8 COMPLEX VECTOR SPACES 5. Fnd the kernel of the lnear transformaton gven n Exercse 5. In Exercses 55 and 56, fnd the mage of v, for the ndcated composton, where and are gven by the followng
More informationOptimal Bidding Strategies for Generation Companies in a Day-Ahead Electricity Market with Risk Management Taken into Account
Amercan J. of Engneerng and Appled Scences (): 8-6, 009 ISSN 94-700 009 Scence Publcatons Optmal Bddng Strateges for Generaton Companes n a Day-Ahead Electrcty Market wth Rsk Management Taken nto Account
More informationIS-LM Model 1 C' dy = di
- odel Solow Assumptons - demand rrelevant n long run; assumes economy s operatng at potental GDP; concerned wth growth - Assumptons - supply s rrelevant n short run; assumes economy s operatng below potental
More informationAdverse selection in the annuity market with sequential and simultaneous insurance demand. Johann K. Brunner and Susanne Pech *) January 2005
Adverse selecton n the annuty market wth sequental and smultaneous nsurance demand Johann K. Brunner and Susanne Pech *) January 005 Revsed Verson of Workng Paper 004, Department of Economcs, Unversty
More informationEqulbra Exst and Trade S effcent proportionally
On Compettve Nonlnear Prcng Andrea Attar Thomas Marott Franços Salané February 27, 2013 Abstract A buyer of a dvsble good faces several dentcal sellers. The buyer s preferences are her prvate nformaton,
More informationQuantity-setting Oligopolies in Complementary Input Markets - the Case of Iron Ore and Coking Coal
Quantty-settng Olgopoles n Complementary Input Markets - the Case of Iron Ore and Cokng Coal AUTHORS Harald Heckng Tmo Panke EWI Workng Paper No. 14/06 February 2014 Insttute of Energy Economcs at the
More informationRisk Model of Long-Term Production Scheduling in Open Pit Gold Mining
Rsk Model of Long-Term Producton Schedulng n Open Pt Gold Mnng R Halatchev 1 and P Lever 2 ABSTRACT Open pt gold mnng s an mportant sector of the Australan mnng ndustry. It uses large amounts of nvestments,
More informationDiscriminatory versus Uniform-Price Electricity Auctions with Supply Function Equilibrium
Dscrmnatory versus Unform-Prce Electrcty Auctons wth Supply Functon Equlbrum Talat S. Genc a December, 007 Abstract. A goal of ths paper s to compare results for dscrmnatory auctons to results for unform-prce
More informationLevel Annuities with Payments Less Frequent than Each Interest Period
Level Annutes wth Payments Less Frequent than Each Interest Perod 1 Annuty-mmedate 2 Annuty-due Level Annutes wth Payments Less Frequent than Each Interest Perod 1 Annuty-mmedate 2 Annuty-due Symoblc approach
More informationChapter 5: Tariffs and Quotas. An import tariff is a tax on the imported goods, levied as goods pass into the
Chapter 5: Tarffs and Quotas n mport tarff s a tax on the mported goods, leved as goods pass nto the domestc country. n mport quota s a physcal lmt on the amount of the mported goods for a specfed perod
More informationThe OC Curve of Attribute Acceptance Plans
The OC Curve of Attrbute Acceptance Plans The Operatng Characterstc (OC) curve descrbes the probablty of acceptng a lot as a functon of the lot s qualty. Fgure 1 shows a typcal OC Curve. 10 8 6 4 1 3 4
More informationHow To Understand The Results Of The German Meris Cloud And Water Vapour Product
Ttel: Project: Doc. No.: MERIS level 3 cloud and water vapour products MAPP MAPP-ATBD-ClWVL3 Issue: 1 Revson: 0 Date: 9.12.1998 Functon Name Organsaton Sgnature Date Author: Bennartz FUB Preusker FUB Schüller
More informationProduction. 2. Y is closed A set is closed if it contains its boundary. We need this for the solution existence in the profit maximization problem.
Producer Theory Producton ASSUMPTION 2.1 Propertes of the Producton Set The producton set Y satsfes the followng propertes 1. Y s non-empty If Y s empty, we have nothng to talk about 2. Y s closed A set
More informationEnabling P2P One-view Multi-party Video Conferencing
Enablng P2P One-vew Mult-party Vdeo Conferencng Yongxang Zhao, Yong Lu, Changja Chen, and JanYn Zhang Abstract Mult-Party Vdeo Conferencng (MPVC) facltates realtme group nteracton between users. Whle P2P
More informationRole of Bargaining in Marketing Channel Games of Quality Choice and Profit Share
Workng Paper Seres FSWP 2007-02 Role of Barganng n Marketng Channel Games of Qualty Choce and Proft Share Phlppe Bontems* Toulouse School of Economcs (GREMAQ, INRA and IDEI) Trtha Dhar Sauder School of
More informationPrice Competition in an Oligopoly Market with Multiple IaaS Cloud Providers
Prce Competton n an Olgopoly Market wth Multple IaaS Cloud Provders Yuan Feng, Baochun L, Bo L Department of Computng, Hong Kong Polytechnc Unversty Department of Electrcal and Computer Engneerng, Unversty
More informationGestimate Of Value Added And Gross Trade Flows
WO R K I N G PA P E R S E R I E S N O 1695 / J U LY 2014 COLLATERAL IMBALANCES IN INTRA-EUROPEAN TRADE? ACCOUNTING FOR THE DIFFERENCES BETWEEN GROSS AND VALUE ADDED TRADE BALANCES Arne J. Nagengast and
More informationSUPPLIER FINANCING AND STOCK MANAGEMENT. A JOINT VIEW.
SUPPLIER FINANCING AND STOCK MANAGEMENT. A JOINT VIEW. Lucía Isabel García Cebrán Departamento de Economía y Dreccón de Empresas Unversdad de Zaragoza Gran Vía, 2 50.005 Zaragoza (Span) Phone: 976-76-10-00
More informationThe Stock Market Game and the Kelly-Nash Equilibrium
The Stock Market Game and the Kelly-Nash Equlbrum Carlos Alós-Ferrer, Ana B. Ana Department of Economcs, Unversty of Venna. Hohenstaufengasse 9, A-1010 Venna, Austra. July 2003 Abstract We formulate the
More information17 Capital tax competition
17 Captal tax competton 17.1 Introducton Governments would lke to tax a varety of transactons that ncreasngly appear to be moble across jursdctonal boundares. Ths creates one obvous problem: tax base flght.
More informationThe Choice of Direct Dealing or Electronic Brokerage in Foreign Exchange Trading
The Choce of Drect Dealng or Electronc Brokerage n Foregn Exchange Tradng Mchael Melvn Arzona State Unversty & Ln Wen Unversty of Redlands MARKET PARTICIPANTS: Customers End-users Multnatonal frms Central
More informationThe Application of Fractional Brownian Motion in Option Pricing
Vol. 0, No. (05), pp. 73-8 http://dx.do.org/0.457/jmue.05.0..6 The Applcaton of Fractonal Brownan Moton n Opton Prcng Qng-xn Zhou School of Basc Scence,arbn Unversty of Commerce,arbn zhouqngxn98@6.com
More informationOptimality in an Adverse Selection Insurance Economy. with Private Trading. November 2014
Optmalty n an Adverse Selecton Insurance Economy wth Prvate Tradng November 2014 Pamela Labade 1 Abstract Prvate tradng n an adverse selecton nsurance economy creates a pecunary externalty through the
More informationOn the Optimal Control of a Cascade of Hydro-Electric Power Stations
On the Optmal Control of a Cascade of Hydro-Electrc Power Statons M.C.M. Guedes a, A.F. Rbero a, G.V. Smrnov b and S. Vlela c a Department of Mathematcs, School of Scences, Unversty of Porto, Portugal;
More informationMean Molecular Weight
Mean Molecular Weght The thermodynamc relatons between P, ρ, and T, as well as the calculaton of stellar opacty requres knowledge of the system s mean molecular weght defned as the mass per unt mole of
More informationWORKING PAPERS. The Impact of Technological Change and Lifestyles on the Energy Demand of Households
ÖSTERREICHISCHES INSTITUT FÜR WIRTSCHAFTSFORSCHUNG WORKING PAPERS The Impact of Technologcal Change and Lfestyles on the Energy Demand of Households A Combnaton of Aggregate and Indvdual Household Analyss
More informationEfficient Project Portfolio as a tool for Enterprise Risk Management
Effcent Proect Portfolo as a tool for Enterprse Rsk Management Valentn O. Nkonov Ural State Techncal Unversty Growth Traectory Consultng Company January 5, 27 Effcent Proect Portfolo as a tool for Enterprse
More informationSection 5.4 Annuities, Present Value, and Amortization
Secton 5.4 Annutes, Present Value, and Amortzaton Present Value In Secton 5.2, we saw that the present value of A dollars at nterest rate per perod for n perods s the amount that must be deposted today
More informationNumerical General Equilibrium Analysis of China s. Impacts from Possible Mega Trade Deals
Numercal General Equlbrum Analyss of Chna s Impacts from Possble Mega Trade Deals Chundng L a, b, c a Insttute of World Economcs and Poltcs, Chnese Academy of Socal Scences; b Department of Economcs, Western
More informationInternalization, Clearing and Settlement, and Stock Market Liquidity 1
Internalzaton, Clearng and Settlement, and Stock Market Lqudty 1 Hans Degryse, Mark Van Achter 3, and Gunther Wuyts 4 May 010 1 We would lke to thank partcpants at semnars n Louvan, Mannhem, and Tlburg
More informationOnline Appendix: Measured Aggregate Gains from International Trade
Ole Appedx: Measured Aggregate Gas from Iteratoal Trade Arel Burste UCLA ad NBER Javer Cravo Uversty of Mchga March 3, 2014 I ths ole appedx we derve addtoal results dscussed the paper. I the frst secto,
More informationEnvironmental Tax and the Distribution of Income among Heterogeneous Workers
Envronmental Tax and the Dstrbuton of Income among Heterogeneous Workers Mrelle Chroleu-Assoulne, Mouez Fodha To cte ths verson: Mrelle Chroleu-Assoulne, Mouez Fodha. Envronmental Tax and the Dstrbuton
More informationBuy-side Analysts, Sell-side Analysts and Private Information Production Activities
Buy-sde Analysts, Sell-sde Analysts and Prvate Informaton Producton Actvtes Glad Lvne London Busness School Regent s Park London NW1 4SA Unted Kngdom Telephone: +44 (0)0 76 5050 Fax: +44 (0)0 774 7875
More informationDynamics of Toursm Demand Models in Japan
hort-run and ong-run structural nternatonal toursm demand modelng based on Dynamc AID model -An emprcal research n Japan- Atsush KOIKE a, Dasuke YOHINO b a Graduate chool of Engneerng, Kobe Unversty, Kobe,
More informationA Two Stage Stochastic Equilibrium Model for Electricity Markets with Two Way Contracts
A Two Stage Stochastc Equlbrum Model for Electrcty Markets wth Two Way Contracts Dal Zhang and Hufu Xu School of Mathematcs Unversty of Southampton Southampton SO17 1BJ, UK Yue Wu School of Management
More informationKiel Institute for World Economics Duesternbrooker Weg 120 24105 Kiel (Germany) Kiel Working Paper No. 1120
Kel Insttute for World Economcs Duesternbrooker Weg 45 Kel (Germany) Kel Workng Paper No. Path Dependences n enture Captal Markets by Andrea Schertler July The responsblty for the contents of the workng
More informationOligopoly Theory Made Simple
Olgopoly Theory Made Smple Huw Dxon Chapter 6, Surfng Economcs, pp 5-60. Olgopoly made smple Chapter 6. Olgopoly Theory Made Smple 6. Introducton. Olgopoly theory les at the heart of ndustral organsaton
More informationNBER WORKING PAPER SERIES CARBON MOTIVATED REGIONAL TRADE ARRANGEMENTS: ANALYTICS AND SIMULATIONS. Yan Dong John Whalley
NBER WORKING PAPER SERIES CARBON MOTIVATED REGIONAL TRADE ARRANGEMENTS: ANALYTICS AND SIMULATIONS Yan Dong John Whalley Workng Paper 14880 http://www.nber.org/papers/w14880 NATIONAL BUREAU OF ECONOMIC
More informationFeasibility of Using Discriminate Pricing Schemes for Energy Trading in Smart Grid
Feasblty of Usng Dscrmnate Prcng Schemes for Energy Tradng n Smart Grd Wayes Tushar, Chau Yuen, Bo Cha, Davd B. Smth, and H. Vncent Poor Sngapore Unversty of Technology and Desgn, Sngapore 138682. Emal:
More informationSector-Specific Technical Change
Sector-Specfc Techncal Change Susanto Basu, John Fernald, Jonas Fsher, and Mles Kmball 1 November 2013 Abstract: Theory mples that the economy responds dfferently to technology shocks that affect the producton
More informationDynamic Pricing for Smart Grid with Reinforcement Learning
Dynamc Prcng for Smart Grd wth Renforcement Learnng Byung-Gook Km, Yu Zhang, Mhaela van der Schaar, and Jang-Won Lee Samsung Electroncs, Suwon, Korea Department of Electrcal Engneerng, UCLA, Los Angeles,
More informationAPPLICATION OF PROBE DATA COLLECTED VIA INFRARED BEACONS TO TRAFFIC MANEGEMENT
APPLICATION OF PROBE DATA COLLECTED VIA INFRARED BEACONS TO TRAFFIC MANEGEMENT Toshhko Oda (1), Kochro Iwaoka (2) (1), (2) Infrastructure Systems Busness Unt, Panasonc System Networks Co., Ltd. Saedo-cho
More information) of the Cell class is created containing information about events associated with the cell. Events are added to the Cell instance
Calbraton Method Instances of the Cell class (one nstance for each FMS cell) contan ADC raw data and methods assocated wth each partcular FMS cell. The calbraton method ncludes event selecton (Class Cell
More informationLeveraged Firms, Patent Licensing, and Limited Liability
Leveraged Frms, Patent Lcensng, and Lmted Lablty Kuang-Cheng Andy Wang Socal Scence Dvson Center for General Educaton Chang Gung Unversty and Y-Je Wang Department of Economcs Natonal Dong Hwa Unversty
More informationNo 144. Bundling and Joint Marketing by Rival Firms. Thomas D. Jeitschko, Yeonjei Jung, Jaesoo Kim
No 144 Bundlng and Jont Marketng by Rval Frms Thomas D. Jetschko, Yeonje Jung, Jaesoo Km May 014 IMPRINT DICE DISCUSSION PAPER Publshed by düsseldorf unversty press (dup) on behalf of Henrch Hene Unverstät
More informationA Model of Intertemporal Emission Trading, Banking, and Borrowing*
Ž. JOURAL OF EVIROMEAL ECOOMICS AD MAAGEME 31, 269286 1996 ARICLE O. 0044 A Model of Intertemporal Emsson radng, Bankng, and Borrowng* JOAA D. RUBI Department of Economcs and Energy, Enronment and Resources
More informationTHE DISTRIBUTION OF LOAN PORTFOLIO VALUE * Oldrich Alfons Vasicek
HE DISRIBUION OF LOAN PORFOLIO VALUE * Oldrch Alfons Vascek he amount of captal necessary to support a portfolo of debt securtes depends on the probablty dstrbuton of the portfolo loss. Consder a portfolo
More informationA Novel Auction Mechanism for Selling Time-Sensitive E-Services
A ovel Aucton Mechansm for Sellng Tme-Senstve E-Servces Juong-Sk Lee and Boleslaw K. Szymansk Optmaret Inc. and Department of Computer Scence Rensselaer Polytechnc Insttute 110 8 th Street, Troy, Y 12180,
More informationInterest Rate Fundamentals
Lecture Part II Interest Rate Fundamentals Topcs n Quanttatve Fnance: Inflaton Dervatves Instructor: Iraj Kan Fundamentals of Interest Rates In part II of ths lecture we wll consder fundamental concepts
More informationThe Personalization Services Firm: What to Sell, Whom to Sell to and For How Much? *
The Personalzaton Servces Frm: What to Sell, Whom to Sell to and For How Much? * oseph Pancras Unversty of Connectcut School of Busness Marketng Department 00 Hllsde Road, Unt 04 Storrs, CT 0669-0 joseph.pancras@busness.uconn.edu
More informationGASTALE: An oligopolistic model of production and trade in the European gas market
August 2003 ECN-R--03-001 GASTALE: An olgopolstc model of producton and trade n the European gas market M.G. Boots, ECN F.A.M. Rjkers, ECN B.F. Hobbs, Johns Hopkns Unversty Preface In ths report, the emprcal
More information8 Algorithm for Binary Searching in Trees
8 Algorthm for Bnary Searchng n Trees In ths secton we present our algorthm for bnary searchng n trees. A crucal observaton employed by the algorthm s that ths problem can be effcently solved when the
More informationThe Economics of Two-sided Markets 2. Platform competition!
U. Porto Doctoral Programme n Economcs The Economcs of Two-sded Markets 2. Platform competton! Paul Belleflamme, CORE & LSM! Unversté catholque de Louvan! Aprl 10-13, 2012 Learnng objectves At the end
More informationGrowth and Poverty Reduction in
The Trade-Off Among Carbon Emssons, Economc Growth and Poverty Reducton n Inda VIJAY PRAKASH OJHA Rajv Gandh Insttute for Contemporary Studes (RGICS) New Delh, Inda August 2005 South Asan Network for Development
More informationRESEARCH DISCUSSION PAPER
Reserve Bank of Australa RESEARCH DISCUSSION PAPER Competton Between Payment Systems George Gardner and Andrew Stone RDP 2009-02 COMPETITION BETWEEN PAYMENT SYSTEMS George Gardner and Andrew Stone Research
More informationChapter 4 ECONOMIC DISPATCH AND UNIT COMMITMENT
Chapter 4 ECOOMIC DISATCH AD UIT COMMITMET ITRODUCTIO A power system has several power plants. Each power plant has several generatng unts. At any pont of tme, the total load n the system s met by the
More informationFIGHTING INFORMALITY IN SEGMENTED LABOR MARKETS A general equilibrium analysis applied to Uruguay *
Vol. 48, No. 1 (May, 2011), 1-37 FIGHTING INFORMALITY IN SEGMENTED LABOR MARKETS A general equlbrum analyss appled to Uruguay * Carmen Estrades ** María Inés Terra ** As n other Latn Amercan countres,
More informationSimple Interest Loans (Section 5.1) :
Chapter 5 Fnance The frst part of ths revew wll explan the dfferent nterest and nvestment equatons you learned n secton 5.1 through 5.4 of your textbook and go through several examples. The second part
More information