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on Computational Economics |
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Issue of 2013‒02‒08
three papers chosen by |
| By: | Elisabetta Allevi (University of Brescia); Giorgia Oggioni (University of Brescia); Rossana Riccardi (University of Brescia); Marco Rocco (Bank of Italy) |
| Abstract: | The European Emissions Trading Scheme (ETS) is a cap and trade system to curb CO2 emissions. It has caused both direct costs (CO2 allowances) and indirect costs (higher electricity prices) to energy-intensive industries. Moreover, as there is no global CO2 agreement, the ETS could distort the European economy, prompting energy-intensive industries to relocate production to unregulated countries: the “carbon leakage” effect. This paper investigates the impact of ETS on the cement industry, focusing on Italy, the second European producer, analyzing a Cournot oligopolistic partial equilibrium model with a detailed technological representation of the market. Simulation results show that the European and Italian cement markets are subject to carbon leakage, especially where carbon regulation is more stringent and where plants are located near the seacoast. Further, transportation costs - particularly high in the cement sector - significantly affect the rate of carbon leakage. |
| Keywords: | carbon leakage, cement sector, ETS, generalized Nash game |
| JEL: | C60 D43 D58 C61 Q50 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wptemi:td_899_13&r=cmp |
| By: | Yoram Singer |
| Abstract: | A constant rebalanced portfolio is an asset allocation algorithm which keeps the same distribution of wealth among a set of assets along a period of time. Recently, there has been work on on-line portfolio selection algorithms which are competitive with the best constant rebalanced portfolio determined in hindsight. By their nature, these algorithms employ the assumption that high returns can be achieved using a fixed asset allocation strategy. However, stock markets are far from being stationary and in many cases the wealth achieved by a constant rebalanced portfolio is much smaller than the wealth achieved by an ad-hoc investment strategy that adapts to changes in the market. In this paper we present an efficient Bayesian portfolio selection algorithm that is able to track a changing market. We also describe a simple extension of the algorithm for the case of a general transaction cost, including the transactions cost models recently investigated by Blum and kalai. We provide a simple analysis of the competitiveness of the algorithm and check its performance on real stock data from the New York Stock Exchange accumulated during a 22-year period. |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1301.7413&r=cmp |
| By: | Laurence Jacquet; Dirk Van de gaer (THEMA, Universite de Cergy-Pontoise and THEMA; Universiteit Gent et CORE) |
| Abstract: | We consider an economy in which agents di¤er in terms of productivity (that may be either high or low) as well as in their preferences for labour. Individuals decide whether or not they enter the labour force. In this context and under asymmetric information, the optimal tax schedules derived under the Egalitarian Equivalence criterion (Fleurbaey et Maniquet [2005, 2006]) always satisfy the compensation principle (for distinct productivity levels). Under the criterion of Roemer [1993, 1998] and the weighted maximin à la Boadway et al. [2002], the optimal tax schedules may satisfy the compensation principle while the standard criteria in the optimal taxation literature fail to do so. Numerical simulations illustrate our analytical results and highlight how the parameters in the model affect the participation tax. |
| Keywords: | optimal taxation, compensation principle, heterogeneous preferences for labour |
| JEL: | H21 D63 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ema:worpap:2013-04&r=cmp |