|
on Central and Western Asia |
| By: | Bent Flyvbjerg |
| Abstract: | Project promoters, forecasters, and managers sometimes object to two things in measuring inaccuracy in travel demand forecasting: (1) using the forecast made at the time of making the decision to build as the basis for measuring inaccuracy and (2) using traffic during the first year of operations as the basis for measurement. This paper presents the case against both objections. First, if one is interested in learning whether decisions about building transport infrastructure are based on reliable information, then it is exactly the traffic forecasted at the time of making the decision to build that is of interest. Second, although ideally studies should take into account so-called demand "ramp up" over a period of years, the empirical evidence and practical considerations do not support this ideal requirement, at least not for large-N studies. Finally, the paper argues that large samples of inaccuracy in travel demand forecasts are likely to be conservatively biased, i.e., accuracy in travel demand forecasts estimated from such samples would likely be higher than accuracy in travel demand forecasts in the project population. This bias must be taken into account when interpreting the results from statistical analyses of inaccuracy in travel demand forecasting. |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1303.7401&r=cwa |
| By: | Saad Ahmad Khan; Ladislau Boloni |
| Abstract: | We describe an agent-based simulation of a fictional (but feasible) information trading business. The Gas Price Information Trader (GPIT) buys information about real-time gas prices in a metropolitan area from drivers and resells the information to drivers who need to refuel their vehicles. Our simulation uses real world geographic data, lifestyle-dependent driving patterns and vehicle models to create an agent-based model of the drivers. We use real world statistics of gas price fluctuation to create scenarios of temporal and spatial distribution of gas prices. The price of the information is determined on a case-by-case basis through a simple negotiation model. The trader and the customers are adapting their negotiation strategies based on their historical profits. We are interested in the general properties of the emerging information market: the amount of realizable profit and its distribution between the trader and customers, the business strategies necessary to keep the market operational (such as promotional deals), the price elasticity of demand and the impact of pricing strategies on the profit. |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1303.7445&r=cwa |
| By: | Bent Flyvbjerg |
| Abstract: | This article examines five common misunderstandings about case-study research: (1) Theoretical knowledge is more valuable than practical knowledge; (2) One cannot generalize from a single case, therefore the single case study cannot contribute to scientific development; (3) The case study is most useful for generating hypotheses, while other methods are more suitable for hypotheses testing and theory building; (4) The case study contains a bias toward verification; and (5) It is often difficult to summarize specific case studies. The article explains and corrects these misunderstandings one by one and concludes with the Kuhnian insight that a scientific discipline without a large number of thoroughly executed case studies is a discipline without systematic production of exemplars, and that a discipline without exemplars is an ineffective one. Social science may be strengthened by the execution of more good case studies. |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1304.1186&r=cwa |
| By: | Konstantinos Spiliopoulos; Justin A. Sirignano; Kay Giesecke |
| Abstract: | We analyze the fluctuation of the loss from default around its large portfolio limit in a class of reduced-form models of correlated firm-by-firm default timing. We prove a weak convergence result for the fluctuation process and use it for developing a conditionally Gaussian approximation to the loss distribution. Numerical results illustrate the accuracy and computational efficiency of the approximation. |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1304.1420&r=cwa |
| By: | Grossman, Zachary; van der Weele, Joël |
| Abstract: | Avoiding information about adverse welfare consequences of self-interested decisions, orstrategic ignorance, is an important source of corruption, anti-social behavior and even atrocities. We model an agent who cares about self-image and has the opportunity to learn the social benefits of a personally costly action. The trade-off between self-image concerns and material payoffs can lead the agent to use ignorance as an excuse, even if it is deliberately chosen. Two experiments, modeled after Dana, Weber, and Kuang (2007), show that a) many people will reveal relevant information about others' payoffs after making an ethical decision, but not before, and b) some people are willing to pay for ignorance. These results corroborate the idea that Bayesian self-signaling drives people to avoid inconvenient facts in moral decisions. |
| Keywords: | Economics, Economics, General, prosocial behavior, dictator games, strategic ignorance, self-signaling |
| Date: | 2013–03–15 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:ucsbec:qt0bp6z29t&r=cwa |
| By: | Iseki, Hiroyuki; Smart, Michael; Taylor, Brian D.; Yoh, Allison |
| Keywords: | Engineering, Natural Resources and Conservation, Social Sciences, tax revenues, public sector budgets, metropolitan areas |
| Date: | 2012–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:uctcwp:qt87x5k9fj&r=cwa |
| By: | Jože Damijan; Črt Kostevc; Matija Rojec |
| Abstract: | This paper empirically accounts for the importance of the 'global supply chains' concept for export restructuring and productivity growth in Central and Eastern European Countries (CEECs) in the period 1995-2007. Using industry-level data and accounting for technology intensity, we show that FDI has significantly contributed to export restructuring in the CEECs. The effects of FDI are, however, heterogenous across countries. While more advanced core CEECs succeeded in boosting exports in higher-end technology industries, non-core CEECs stuck with export specialization in lower-end technology industries. This suggests that where FDI flows have been directed is of key importance. Our results show that export restructuring and economic specialization brought about by FDI during the last two decades in the CEECs might matter a lot for their potential for long-run productivity growth. Industries of higher-end technology intensity have experienced substantially higher productivity growth and so have countries more successful in attracting FDI to these industries. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ete:vivwps:37&r=cwa |
| By: | Heiko Karle (ETH Zurich, Switzerland) |
| Abstract: | Complementing the existing literature on anchoring effects and loss aversion, we analyze how firms can influence loss–averse consumers’ willingness to pay by product information in the form of informative advertising rather than by prices. We find that consumers’ willingness to pay is greatest when only partial information about the product—i.e. only a fraction of product attributes—is disclosed, and that partial information disclosure is the optimal mode of advertising for a monopolistic firm. This causes the consumers’ realized product valuation to diverge from their intrinsic product valuation, which leads to a reduction of consumer surplus. Consequently, transparency policies can help to protect consumers. |
| Keywords: | Advertising; Loss Aversion; Information Disclosure. |
| JEL: | D83 L41 M37 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:13-177&r=cwa |
| By: | BABA Ryota; MOTOHASHI Kazuyuki |
| Abstract: | Entrepreneurship activities are low in Japan, and it is often discussed that possible reasons are the lack of venture capital and a rigid labor market. However, it is rare to find a study that analyzes the human capital aspect of entrepreneurs based on a large scale sample survey. In this study, the characteristics of the human capital of entrepreneurs, such as education and job experience, are analyzed based on a survey of entrepreneurs conducted by the Research Institute of Economy, Trade and Industry (RIETI) in 2012. The entire process of entrepreneurship is divided into three phases—(1) planning, (2) execution, and (3) achieving success in business—and the determinants of each step, not only the education and job background, but also personal relationships with the entrepreneur and his/her personality, are investigated. It is found that broad experiences while attending universities such as extra-curriculum activities are an important factor at the planning and execution stage. In contrast, broader job experiences but within a limited number of companies can explain the probability of entrepreneurship success well. Therefore, promotion of entrepreneurship activity in Japan including forming a spin-off company requires both a variety of extra-curriculum activities experienced at universities and facilitating employees to develop broad professional experiences. |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rdpsjp:13016&r=cwa |
| By: | INUI Tomohiko; EDAMURA Kazuma; Xiaofei TAN; TODO Yasuyuki; HANEDA Sho |
| Abstract: | Chinese cross-border outbound mergers and acquisitions (M&As) of firms in developed countries have been expanding rapidly since the mid-2000s. The major motives are expansion to new markets and sourcing of knowledge and strategic assets. This study is the first attempt to examine the effects of Chinese outbound M&As on firm performance, applying econometric analysis to large firm-level data. We find that sales, productivity, and tangible and intangible assets of acquiring firms increase substantially after M&A deals, while the research and development (R&D) intensity remains the same. These results suggest that Chinese firms on average achieve their intended goals of outbound M&As. |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rpdpjp:13005&r=cwa |
| By: | Sandrine Jacob Leal; (CEREFIGE - ICN Business School Nancy-Metz (France)); ; |
| Abstract: | This paper investigates whether the observed “momentum effect” in individual stocks, caused by positive serial correlations in returns over short horizons, can be explained by fundamentalists’ heterogeneous beliefs when chartists are present in the market. For this purpose, we propose a heterogeneous agent model wherein agents follow different strategies and where information about asset fundamentals diffuses slowly. Computer-based simulations reveal that the interplay of fundamentalists and chartists can robustly generate positive serial correlations in returns over short horizons. Especially, short-term momentum is explained by trend-following strategies and slow diffusion of information. Furthermore, our model is able to simultaneously generate the momentum effect in individual stock returns, asset price overreaction and misalignments often observed in real financial time series. |
| Keywords: | momentum effect, return predictability, bounded rationality, trading strategies, computer-based simulations |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:fie:wpaper:1203&r=cwa |
| By: | Lauren Lambie-Hanson |
| Abstract: | Studies of foreclosure externalities have overwhelmingly focused on the impact of forced sales on the value of nearby properties, typically finding modest evidence of foreclosure spillovers. However, many quality-of-life issues posed by foreclosures may not be reflected in nearby sale prices. This paper uses new data from Boston on constituent complaints and requests for public services made to City government departments, matched with loan-level data, to examine the timing of foreclosure externalities. I find evidence that property conditions suffer most while homes are bank owned, although reduced maintenance is also common earlier in the foreclosure process. Since short sales prevent bank ownership, they should result in fewer neighborhood disamenities than foreclosures. |
| Keywords: | Foreclosure - Massachusetts ; Real property - Massachusetts ; Housing - Prices - Massachusetts |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedbpp:13-1&r=cwa |
| By: | Ali Kabiri |
| Abstract: | The NYSE boom of the 1920s ended with the infamous crash of October 1929 and subsequent collapse in common stock prices from 1929-1932. Most approaches have suggested an overvaluation of 100%, usually dating from mid-1927 to September 1929.Excessive speculation based on high real earnings growth rates from 1921-8, amid a euphoric “new age” for the US economy, has been given as the cause. However, the 1920s witnessed the emergence of new ideas emanating from new research on the long-term returns to common stocks (Smith, 1924). The research identified a large premium on common stocks held over the long term compared to corporate bonds. This, in turn led to the formation of new investment vehicles that aimed to hold diversified stock portfolios over the long run in order to earn the large equity risk premium. Whilst such an approach was capable of earning substantial excess returns over bonds, new ideas derived from the research led to a change in stock valuations. The paper reconstructs fundamental values of NYSE stocks from long run dividend growth and stock volatility data, and demonstrates why such a change in theoretical values was unjustified. Investors switched to valuing stocks according to a new theory, which ignored the compensation for stock return volatility, which made up the Equity Risk Premium (ERP), on the assumption that “retained earnings” were the source of the observed ERP. |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:fmg:fmgsps:sp218&r=cwa |
| By: | Jean-Bernard Chatelain (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris); Kirsten Ralf (Ecole Supérieure du Commerce Extérieur - ESCE) |
| Abstract: | Explanatory variables with simple correlation coefficients with the dependent variable below 0.1 in absolute value (such as aid with economic growth) may have very large and statistically significant estimated parameters in multiple regressions, which are unifortunately "outliers driven" or spurious. This is obtained by including another regressor which is highly correlated with the initial regressor, such as a lag, a square or interaction terms of this regressor. The analysis is applied on the "Botswana outliers driven" Burnside and Dollar [2000] article which found that aid had an effect on growth only for countries achieving "good" macroeconomic policies. |
| Keywords: | Near-Multicollinearity; student t-statistic; spurious regressions; Ceteris paribus; classical suppressor; parameter inflation factor; growth, foreign aid |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-00802579&r=cwa |
| By: | Peter Martey Addo (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, Università Ca' Foscari of Venice - Department of Economics, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris); Monica Billio (Università Ca' Foscari of Venice - Department of Economics); Dominique Guegan (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris) |
| Abstract: | With the emergence of the chaos theory and the method of surrogates data, nonlinear approaches employed in analysing time series typically suffer from high computational complexity and lack of straightforward explanation. Therefore, the need for methods capable of characterizing time series in terms of their linear, nonlinear, deterministic and stochastic nature are preferable. In this paper, we provide a signal modality analysis on a variety of exchange rates. The analysis is achieved by using the recently proposed "delay vector variance" (DVV) method, which examines local predictability of a signal in the phase space to detect the presence of determinism and nonlinearity in a time series. Optimal embedding parameters used in the DVV analysis are obtain via differential entropy based method using wavelet-based surrogates. A comprehensive analysis of the feasibility of this approach is provided. The empirical results show that the DVV method can be opted as an alternative way to understanding exchange rates dynamics. |
| Keywords: | Nonlinearity analysis; exchange rates; surrogates; Delay vector variance (DVV) method; wavelets |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-00803447&r=cwa |
| By: | Paula Matos Marques Simoes (Fundacao Dom Cabra - Fundacao Dom Cabra, MC - Management et Comportement - Grenoble École de Management (GEM)); Mark Esposito (MC - Management et Comportement - Grenoble École de Management (GEM), CPSL - University of Cambridge) |
| Abstract: | Little has been studied yet in terms of how communication nature influences change process. This article explores a case study that takes part in a broader research project, aimed to contribute in this direction. It was applied a mix method approach to characterize resistance to change and communication nature within one organization under a radical change process. One main theoretical contribution is an instrumental grid to characterize dialogic communication nature. Findings of the case study indicate that resistance to change reduces under dialogic communication and by revealing how communication dimensions perform in time, practitioners may enhance guidelines to effective change communication management |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:hal:gemwpa:hal-00802173&r=cwa |
| By: | Céline Guimas (UP1 UFR02 - Université Paris 1, Panthéon-Sorbonne - UFR d'Économie - Université Paris I - Panthéon-Sorbonne) |
| Abstract: | For a better understanding of this study, I will explain why organic agriculture offers interesting potential for reducing poverty and why contract farming arrangement can be a successful tool for ful lling this potential. However, in order to fully evaluate the impacts of organic contract farming scheme, it is necessary to evaluate the spillovers on the local community, including people that do not directly participate in such scheme. One of these spillovers is the creation of employment opportunities and this is the focus of this study. An increase in labor demand may limit conversion to organic farming in country where labor supply is scarce. However, in a country like Uganda where rural poor are often underemployed and have no - or too little - land to meet their own needs, job creation is a positive and crucial contribution for poverty alleviation. Hence, if organic contract farming increases labor demand, this deserves to be emphasized. For now, existing literature has never studied this speci c consequence and thus, future research should rigorously quantify this effect on labor demand. My own study, though limited by data availability on farm labor input, is a rst step in this important investigation. I will use a simple farm-household model in order to illustrate how farmers determine their farm labor demand as well as their farm and off-farm labor supply. This model has really modest purposes and aims only to give the main intuition about how the participation in an organic contract farming scheme can modify these decisions. At last, the empirical analysis will provide support for the main hypothesis that is tested: organic contract farming scheme increases the farm labor demand. Yet, results suggest this does not come from more labor intensive organic farm practices but mainly comes from higher price and product quality that are associated with the participation in this organic contract farming arrangement. This study is structured as follows: Section 2 introduces potentials and challenges of organic agriculture and contract farming. Section 3 focuses on Uganda and on potential employment contribution. Section 4 presents the cocoa and vanilla organic contract farming scheme with the exporter Esco (U) Ltd. Section 5 is dedicated to a simple farm-household model. At last section 6 and 7, focus on the empirical investigation and its results. |
| Keywords: | marché du travail, agriculture biologique, Ouganda |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:dumas-00802135&r=cwa |
| By: | Christian Brodhag (EPICE-ENSMSE - Département Etudes sur la performance, l'Innovation et le Changement en Entreprise - Institut Henri Fayol - École Nationale Supérieure des Mines - Saint-Étienne) |
| Abstract: | Technology transfer and innovation are considered major drivers of sustainable development; they place knowledge and its dissemination in society at the heart of the development process. This article considers the role of research universities, and how they can interact with key actors and institutions involved in 'innovation ecosystems'. Considering various approaches of innovation and institutional analysis design (IAD), it proposes an institutional model of innovation where different authorities produce rules and knowledge that can be mobilized and/or changed in their respective action arenas. On this conceptual basis, one initiative is described: integrated poles of excellence (IPEs) for renewable energy in West Africa, which were conceptualized as a resource and knowledge centre connected to project implementation. |
| Keywords: | research universities; innovation; innovation ecosystems; knowledge; institutional analysis design; sustainable development |
| Date: | 2013–03–14 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:emse-00804454&r=cwa |
| By: | Frédéric Abergel (FiQuant - Chaire de finance quantitative - Ecole Centrale Paris, MAS - Mathématiques Appliquées aux Systèmes - EA 4037 - Ecole Centrale Paris); Grégoire Loeper (FiQuant - Chaire de finance quantitative - Ecole Centrale Paris) |
| Abstract: | We study the influence of taking liquidity costs and market impact into account when hedging a contingent claim, first in the discrete time setting, then in continuous time. In the latter case and in a complete market, we derive a fully non-linear pricing partial differential equation, and characterizes its parabolic nature according to the value of a numerical parameter naturally interpreted as a relaxation coefficient for market impact. We then investigate the more challenging case of stochastic volatility models, and prove the parabolicity of the pricing equation in a particular case. |
| Keywords: | Market impact; partial differential equations; liquidity costs |
| Date: | 2013–03–19 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00802402&r=cwa |
| By: | Rémi Lemoy (LET - Laboratoire d'économie des transports - CNRS : UMR5593 - École Nationale des Travaux Publics de l'État [ENTPE] - Université Lumière - Lyon II, IXXI - Institut Rhône-Alpin des systèmes complexes - INRIA - École Normale Supérieure - Lyon - Institut National des Sciences Appliquées (INSA) - Lyon - Université Claude Bernard - Lyon I - Université Joseph Fourier - Grenoble I - CNRS - IRD, Phys-ENS - Laboratoire de Physique de l'ENS Lyon - CNRS : UMR5672 - École Normale Supérieure - Lyon); Charles Raux (LET - Laboratoire d'économie des transports - CNRS : UMR5593 - École Nationale des Travaux Publics de l'État [ENTPE] - Université Lumière - Lyon II, IXXI - Institut Rhône-Alpin des systèmes complexes - INRIA - École Normale Supérieure - Lyon - Institut National des Sciences Appliquées (INSA) - Lyon - Université Claude Bernard - Lyon I - Université Joseph Fourier - Grenoble I - CNRS - IRD); Pablo Jensen (LET - Laboratoire d'économie des transports - CNRS : UMR5593 - École Nationale des Travaux Publics de l'État [ENTPE] - Université Lumière - Lyon II, IXXI - Institut Rhône-Alpin des systèmes complexes - INRIA - École Normale Supérieure - Lyon - Institut National des Sciences Appliquées (INSA) - Lyon - Université Claude Bernard - Lyon I - Université Joseph Fourier - Grenoble I - CNRS - IRD, Phys-ENS - Laboratoire de Physique de l'ENS Lyon - CNRS : UMR5672 - École Normale Supérieure - Lyon) |
| Abstract: | We exploit the power of the Alonso-Mills-Muth (AMM) urban economics model and show that various utility functions and plausible conditions offer alternative explanations of households' location by income within a city. These include the existence of a "rich" center and more complex socio-spatial urban forms for instance alternating a rich center, poor suburbs and a rich outer ring, which have not yet been derived from the AMM model to our knowledge. In doing so we combine analytical ideas and illustrations by the means of an agent-based model. The hypothesis of a central or non-central amenity is also studied, leading to different insights on the issue. |
| Keywords: | urban economics ; location choice ; income ; amenity ; agent-based model |
| Date: | 2013–03–27 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00805116&r=cwa |
| By: | Mary-Françoise Renard (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Huanxiu GUO (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I) |
| Abstract: | Since 2003, a grass-roots movement of New Rural Reconstruction (NRR) has emerged in China to experience alternative model of rural development. The movement adopts a particular approach for rural development on basis of rural social and cultural reconstruction. In order to understand this social approach, we investigate an original NRR experiment in a poor village of south China, where organic farming is promoted by means of basketball game. An in-depth household survey is conducted to qualitatively analyze this social approach and derive intuitive hypothesis of extended social network for empirical test. With a panel structure dataset collected by the survey, we quantitatively identify the causal effect of social network by exploiting the endogeneity of social network formation. Our identification result provides micro evidence for a large social multiplier effect in the diffusion of organic farming, whereas it is negative for organic experts. Also, our results highlight the role of women, education and labor force for the development of organic farming. On basis of these results, we conclude that organic farming is suitable but challenging for small villages in China, while social activity is a good lever to achieve farmers' collective action for its large diffusion. |
| Keywords: | New rural reconstruction; Social network; Organic farming; China. D71;O33;Q55 |
| Date: | 2013–03–19 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00802119&r=cwa |
| By: | Antoinette Baujard (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - École Normale Supérieure - Lyon) |
| Abstract: | This paper tackles the problem of the demarcation of value judgments in economic expertise. Is it possible to disentangle values from facts, or neutral scientific assertions from value-laden judgments, in the context of economic expertise ? If not, why not ? And if it is, under what conditions ? First, drawing on concepts from analytic philosophy, the paper highlights the interdependencies between descriptive, evaluative, and prescriptive judgments. Second, drawing notably on social studies of science, the paper proposes a definition of 'expertise', and translates this into a list of successive stages wherein these different types of judgments are involved. A backward analysis of these stages is provided in order to identify where values stand, and who holds them. Third, reconsidering the positions of neutrality in economics (Mongin 2006), the paper defends the 'weak non-neutrality' view in the context of expertise, and concludes with reflections on what could be done to address the problem of democratic legitimacy raised by the difficulty of demarcation. |
| Keywords: | methodology ; value judgments ; prescription ; evaluation ; recommendation ; expertise ; neutrality ; demarcation |
| Date: | 2013–03–22 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00803552&r=cwa |
| By: | Niklas, Jakobsson (Dept. of Economics); Persson, Mattias (Örebro University); Svensson, Mikael (Dept. of Economics) |
| Abstract: | This paper analyzes whether class size has an effect on the prevalence of mental health problems and well-being among adolescents in Swedish schools. We use cross-sectional data collected in year 2008 covering 2,755 Swedish adolescents in 9th grade from 40 schools and 159 classes. We utilize different econometric approaches to address potential between- and within-school endogeneity including school-fixed effects and regression discontinuity approaches. Our results indicate no robust effects of class size on the prevalence of mental health problems and well-being, and we cannot reject the hypothesis that class size has no effect on mental health and well-being at all. |
| Keywords: | mental health; well-being; class size; adolescents; Sweden. |
| JEL: | H75 I12 I21 |
| Date: | 2013–03–22 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:kaunek:0009&r=cwa |
| By: | Högberg, Lovisa (Department of Real Estate and Construction Management, Royal Institute of Technology) |
| Abstract: | The EU Energy Performance Certificates provide new information and measure energy performance more exactly than many earlier (proxy) variables. This is one of the first studies to test the effect of this information, and the first one using Swedish data. The purpose of the paper is to test whether energy performance affects single-family house sales prices, and whether such impact is heterogeneous over house size, age and distance from city center. The paper also examines whether recommendations for supposedly cost-effective energy efficiency measures, by intervention category (construction, installation or operation/control technical measures), are perceived as untapped potential affecting sales prices. Energy performance measurement and dummy variables for three categories of improvement recommendations were included as explanatory variables in a hedonic regression analysis using transaction data and Energy Performance Certificates data for 1073 observations. The results indicate that better energy performance has a positive impact on sales price. Energy efficiency recommendations seem to have an impact on sales price; home buyers seem to require a larger “discount” for more complex types of measures. The results may imply that energy efficiency in buildings will become more important in the future, which may strengthen house owners’/sellers’ incentives to improve energy efficiency. |
| Keywords: | Energy efficiency; energy performance; property value; hedonic model; Swedish housing market |
| JEL: | D80 Q40 R15 |
| Date: | 2013–03–27 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:kthrec:2013_006&r=cwa |
| By: | Färe, Rolf (Dept. of Economics, Oregon State University); Grosskopf, Shawna (Dept. of Applied Economics, Oregon State University); Lundgren, Tommy (CERE, Centre for Environmental and Resource Economics); Marklund, Per-Olov (CERUM); Zhou, Wenchao (CERUM) |
| Abstract: | The production of desirable (good) outputs is frequently accompanied by unintended production of undesirable (bad) outputs. If two or more of these undesirable outputs are produced as byproducts, one may ask: ‘Which bad is worst?’ By worst we mean which bad inhibits the production of desirable outputs the most if it is regulated. We develop a model based on Leif Johansen’s capacity framework by estimating the capacity limiting effect of the bads. Our model resembles what is referred to as the von Liebig Law of the Minimum, familiar from the agricultural economics literature. To illustrate our model we apply our approach to a firm level data set from the Swedish paper and pulp industry. |
| Keywords: | von Liebig Law of the Minimum; DEA; emissions; regulation |
| JEL: | D24 Q01 Q50 |
| Date: | 2013–03–20 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:slucer:2013_002&r=cwa |
| By: | Lindqvist, Martin (Department of Economics, Swedish University of Agricultural Sciences); Gren, Ing-Marie (Department of Economics, Swedish University of Agricultural Sciences) |
| Abstract: | Technical change is an important factor to take into consideration when analysing environmental issues that span over a long time horizon. One important source of technical change is learning-by-doing. The purpose of this paper is to analyse the impact of technical change through learning-by-doing on the cost effective implementation of the nutrient goals stipulated in the 2007 HELCOM Baltic Sea Action Plan. Effects of learning-by-doing on the cost and allocation of abatement are analysed using a dynamic discrete model of control costs for abatement in the riparian countries of the Baltic Sea. The results indicate that the impact of learning-by-doing on the cost of abatement can be substantial depending on the learning rate and that technical change could lead to substantial cost decreases for the largest polluter, which is Poland. |
| Keywords: | Cost effectiveness; learning-by-doing; eutrophication; nutrient abatement; technical change; Baltic Sea |
| JEL: | D99 Q52 Q55 |
| Date: | 2013–03–27 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:slueko:2013_001&r=cwa |
| By: | Gren, Ing-Marie (Department of Economics, Swedish University of Agricultural Sciences); Elofsson, Katarina (Department of Economics, Swedish University of Agricultural Sciences) |
| Abstract: | Heavy loads of nutrients, i.e. nitrogen and phosphorus, cause severe damages in many waters in the world. This paper develops a model for nutrient trading markets for a sea damaged by both nitrogen and phosphorus and faces a dominant polluter of one or both nutrients. The existence of abatement measures with simultaneous impacts on both nutrients raises the need for double-dipping in both markets. It is shown that double-dipping decreases overall abatement costs for reaching predetermined targets, and reduces efficiency losses of market power, in particular when the same agent exercises market power in both markets. An empirical application to the intergovernmental agreement on reducing nutrient loads to the eutrophied Baltic Sea in North-East Europe demonstrates cost savings of approximately 25% from introduction of double-dipping, and that efficiency losses from market power of one dominant country, Poland, can be reduced by 10%. |
| Keywords: | nutrient trading; market power; double-dipping; eutrophication; Baltic Sea |
| JEL: | L19 Q53 Q58 |
| Date: | 2013–03–27 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:slueko:2013_002&r=cwa |
| By: | Kei Nanamiya |
| Abstract: | We consider the model for the discrete nonboundary wavelet coefficients of ARFIMA processes. Although many authors have explained the utility of the wavelet transform for the long dependent processes in semiparametrical literature, there have been a few studies in parametric setting. In this paper, we restrict the Daubechies wavelets filters to make the form of the (general) spectral density function of these coefficients clear. |
| Keywords: | discrete wavelet transform, long memory process, spectral density function |
| JEL: | C22 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:hst:ghsdps:gd12-281&r=cwa |
| By: | Yosuke Okada; Takahito Kushi |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:hst:ghsdps:gd12-289&r=cwa |
| By: | Andrew Chesher (Institute for Fiscal Studies and University College London); Adam Rosen (Institute for Fiscal Studies and University College London) |
| Abstract: | We study models with discrete endogenous variables and compare the use of two stage least squares (2SLS) in a linear probability model with bounds analysis using a nonparametric instrumental variable model. 2SLS has the advantage of providing an easy to compute point estimator of a slope coefficient which can be interpreted as a local average treatment effect (LATE). However, the 2SLS estimator does not measure the value of other useful treatment effect parameters without invoking untenable restrictions. The nonparametric instrumental variable (IV) model has the advantage of being weakly restrictive, so more generally applicable, but it usually delivers set identification. Nonetheless it can be used to consistently estimate bounds on many parameters of interest including, for example, average treatment effects. We illustrate using data from Angrist & Evans (1998) and study the effect of family size on female employment. |
| Keywords: | discrete endogenous variables; endogeneity; incomplete models; instrumental variables; set identification, structual econometrics |
| JEL: | C10 C14 C50 C51 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:ifs:cemmap:10/13&r=cwa |
| By: | International Monetary Fund |
| Abstract: | One of the G-20's first reactions to the financial crisis that erupted by late 2008 was to task the IMF and the Financial Stability Board (FSB) with establishing a joint Early Warning Exercise (EWE). This Occasional Paper presents an overview of the IMF's contributions to the EWE. Part I sets out the process, analytical framework, outputs, and dissemination of the EWE, as well as the collaboration with the FSB. Part II describes the main analytical tools deployed in the exercise as of September 2010. As new tools are developed (or become available), they are being added to the EWE or substituted for other models. Once the global economy returns to more stable conditions, the EWE is likely to become the more forward-looking exercise it was initially meant to be, focusing primarily on low-probability, high-impact events (e.g., tail risks). Over time, as new sources of systemic risks emerge and new analytical tools become available, the EWE framework will continue to adapt. |
| Date: | 2012–07–31 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfocp:274&r=cwa |
| By: | Roberto Fontana; Alessandro Nuvolari; Hiroshi Shimizu; Andrea Vezzulli |
| Abstract: | It is well known that not all innovations are patented, but the exact volume of innovative activities undertaken outside the coverage of patent protection and, relatedly, the actual propensity to patent an innovation in different contexts remain, to a major degree, a matter of speculation. This paper presents an exploratory study comparing systematically patented and unpatented innovations over the period 1977-2004 across industrial sectors. The main data source is the ‘R&D 100 Awards’ competition organized by the journal Research and Development. Since 1963, the magazine has been awarding this prize to the 100 most technologically significant new products available for sale or licensing in the year preceding the judgments. We match the products winners of the R&D 100 awards competition with USPTO patents and we examine the variation of patent propensity across different contexts (industries, geographical areas and organizations). Finally we compare our findings with previous assessments of patent propensity based on several sources of data. |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:ise:isegwp:wp092013&r=cwa |
| By: | Yoshitaka Yamazaki (International University of Japan) |
| Abstract: | The purpose of this study is to find out what competencies are adaptively necessary for Asian managers of host country nationals (HCNs) who effectively work for subsidiaries of Japanese multinational corporations. A uniqueness of this study describes a qualitative approach conducted through interviews with Japanese, Chinese, Hong Kong, Malaysian, and Thai managers. A total of research participants were 267 from a leading Japanese MNC that has been strategically expanding Asia including those countries. Qualitative data analysis of the present study found 12 key competencies, yielding two kinds of competency models: the hierarchical model and the contextual human function model, which are commonly applicable for Asian managers demanded for effective organizational performance. Furthermore, this study also identified distinctive competencies needed for particular countries as being contextually specific, suggesting each country may require using these competencies to meet different environmental demands that exist across Asian countries. |
| Keywords: | skills, skill demands, qualitative approach, host country nationals, Asia, Japanese multinationals |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:iuj:wpaper:ems_2013_04&r=cwa |
| By: | Sirimal Abeyratne (International University of Japan) |
| Abstract: | Close economic ties and virtual 'free trade' between the small island economy of Sri Lanka and its growing big neighbor - India, appear to have created scope for the former to integrate into the supply chains of the latter. The paper is aimed at studying whether Sri Lanka has been integrating into the Indian manufacturing processes in line with emerging trade patterns based on 'global product sharing'. In spite of popular perceptions about the deeper integration of Sri Lanka into Indian supply chains, the study suggests that Indo-Lanka Free Trade Agreement (FTA) has not led to a breakthrough in the 'old style' trade integration between the two countries. While Sri Lanka's trade expansion under the FTA has brought about peculiar outcomes, the country's integration to Indian manufacturing processes has performed slowly and continued to remain weak. The specific policy issues related to Indo-Lanka FTA itself and to the bilateral trade expansion appear to have hindered their productsharing. Generally, trade and growth patterns in both Sri Lanka and India are different from the experience of East and Southeast Asian countries which created opportunities to accommodate the formation of globalized supply chains of fragmented manufacturing processes. The study draws out conclusions and inferences with policy relevance for bilateral trade, while notifying the danger of bilateral 'free trade' against rising protectionism. |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:iuj:wpaper:ems_2013_05&r=cwa |
| By: | Polato e Fava, Ana Claudia (CECS, Universidade Federal do ABC); Arends-Kuenning, Mary P. (University of Illinois at Urbana-Champaign) |
| Abstract: | In Brazil, wives do most of the household work. About sixty percent of them also work outside the household, working a total of about 10 hours more per week than men. Because of this unequal distribution of household work, husbands and wives might have different priorities regarding the purchase of durable goods. Although both husbands and wives enjoy entertainment durable goods, wives might have a relative preference for household-production durable goods such as washing machines over entertainment durable goods such as televisions. Using a Brazilian household consumption survey, we examine whether decisions about ownership of entertainment and production durable goods are the outcomes of a bargaining process between husbands and wives. We use several variables to measure bargaining power, including the ratio of women to men in a state. The results indicate that decisions about durable goods ownership are the outcomes of bargaining processes between husbands and wives with wives having a relative preference for household-production durable goods over entertainment durable goods compared to their husbands. Bargaining might explain why ownership of household production durable goods is relatively low in Brazil, despite their potential to save women's time. |
| Keywords: | consumer durables, Brazil, household production |
| JEL: | J16 J12 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7281&r=cwa |
| By: | Ota, Hitoshi |
| Abstract: | The paper investigates the ageing situation in India and the development of the government initiatives for the welfare of senior citizens. It also presents the initial results of a survey that the author conducted in 2011 in North Delhi. The main features related to ageing in India are 'feminisation', 'rurality' and 'poverty'. The survey in North Delhi reveals the differences between the male and the female senior citizens, and the vulnerability of the latter, in particular. The social security coverage such as pensions and health insurance was found quite limited among the respondents. |
| Keywords: | India, Social security, Aged, Pensions, Social policy, Senior Citizens Policy, New Pension Scheme (NPS), Indira Gandhi National Old Age Pension Scheme (IGNOAPS) |
| JEL: | I38 J14 R22 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:jet:dpaper:dpaper402&r=cwa |
| By: | Hashiguchi, Yoshihiro; Tanaka, Kiyoyasu |
| Abstract: | This paper estimates the impact of industrial agglomeration on firm-level productivity in Chinese manufacturing sectors. To account for spatial autocorrelation across regions, we formulate a hierarchical spatial model at the firm level and develop a Bayesian estimation algorithm. A Bayesian instrumental-variables approach is used to address endogeneity bias of agglomeration. Robust to these potential biases, we find that agglomeration of the same industry (i.e. localization) has a productivity-boosting effect, but agglomeration of urban population (i.e. urbanization) has no such effects. Additionally, the localization effects increase with educational levels of employees and the share of intermediate inputs in gross output. These results may suggest that agglomeration externalities occur through knowledge spillovers and input sharing among firms producing similar manufactures. |
| Keywords: | China, Industrial policy, Manufacturing industries, Productivity, Local economy, Agglomeration economies, Spatial autocorrelation, Bayes, Chinese firm-level data, GIS |
| JEL: | C21 C51 R10 R15 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:jet:dpaper:dpaper403&r=cwa |
| By: | Siegfried K. Berninghaus (Karlsruhe Institute of Technology, Institute for Economic Theory and Statistics); Werner Güth (Max Planck Institute of Economics, Strategic Interaction Group); Charlotte Klempt (Institute for Applied Economic Research); Kerstin Pull (Eberhard Karls Universität Tübingen) |
| Abstract: | Two participants have to decide jointly, with the discussions preceding their choice being video/audiotaped. For two tasks, one with and one without strategic interaction, we refer to obvious reasoning styles as mental models. The videotaped discussions are analyzed according to which mental models are mentioned by one or both participants in the same pair and how decisive such arguments were. The mental models for the risky choice task are "analytic approach", "commitment mode", and "avoid chance", and for the outside-option game "equality seeking", "backward induction", and "forward induction". We classify each pair according to their mental constellation in both tasks and assess mental models in addition to collecting choice data. Altogether, this allows for better explanations, especially of heterogeneity in reasoning and deciding. |
| Keywords: | behavioral principles, videotaped experiments, outside option games |
| JEL: | C72 C90 D03 G11 |
| Date: | 2013–03–21 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2013-012&r=cwa |
| By: | Tadanori Yosano (Graduate School of Business Administration, Kobe University) |
| Abstract: | This paper strives to explain why the Japanese Intellectual Asset-based Management (IAbM) report is more inclined for the SME-financial institution relationship with a detailed Japanese historical socioeconomic background. The Japanese Ministry of Economy, Trade and Industry (METI) first focus on the listed company-market actor relationship, however, the overlap between the IC information demand and supply was smaller than expected. This paper explains why there was the mismatch for IC information, and also addresses why non-listed SME IC information for financial institutions has been effective in IC disclosures with the previously shown empirical evidence. This paper also addresses why non-listed SME IC information for financial institutions has created some movement in the IC field by capturing main actors, such as METI, Organization for Small & Medium Enterprises and Regional Innovation, Japan (OSMERI), and other key IAbM supporters. |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:kbb:dpaper:2012-21&r=cwa |
| By: | Takashi Hatakeda (Graduate School of Business Administration, Kobe University) |
| Abstract: | We estimate dynamic R&D investment models in publicly traded Japanese manufacturing firms over 2001-2009. Splitting into two subsamples by the degree of corporate diversification, we provide evidence that less-diversified firms have an increased tendency to smooth R&D@but more-diversified firms donft do it. To clarify the causes behind corporate diversification, we also turn our eyes on the effect of financial liquidity or share ownership structure, showing that financially unconstrained firms tend to smooth R&D investment. We, furthermore, provide evidence that corporate diversification doesnft improve financial liquidity in financially constrained firms, but deteriorates financial liquidity in some financially unconstrained firms. |
| Keywords: | corporate diversification; R&D; investment smoothing; financial liquidity; share ownership structure |
| JEL: | G31 G32 |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:kbb:dpaper:2012-42&r=cwa |
| By: | Atsushi Tanaka (School of Economics, Kwansei Gakuin University) |
| Abstract: | In this paper, we develop a simple dynamic optimization model of a central bank, in which the bank’s profit affects its balance sheet. The model derives the transversality condition that is necessary for a central bank to be sustainable and to conduct an optimal monetary policy. In this sense, the transversality condition needs to be satisfied to maintain central bank credibility. We discuss some factors affecting the transversality condition and show that what is important to satisfy the condition and thus to maintain central bank credibility is not capital alone but the financial strength that generates no sustained loss. |
| Keywords: | central bank, capital, financial strength, credibility, monetary policy |
| JEL: | E5 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:kgu:wpaper:102&r=cwa |
| By: | Hannes Öhler; Peter Nunnenkamp |
| Abstract: | The regional allocation of aid within recipient countries has been largely ignored in the aid allocation literature. We use geocoded data on the location of aid projects financed by the World Bank and the African Development Bank within a sample of 27 recipient countries to assess the claim of donors that their aid targets needy population segments. We also assess whether political leaders in these countries direct aid funds to their home region, irrespective of regional needs. We do not find that the multilateral aid institutions take regional needs into account. Instead, favoritism appears to play an important role for location choices, in particular for physical infrastructure projects |
| Keywords: | aid allocation, within-country targeting, favoritism, World Bank, African Development Bank |
| JEL: | F35 F53 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1838&r=cwa |
| By: | Katsushi S. Imai (Economics, School of Social Sciences, University of Manchester (UK) and RIEB, Kobe University (Japan)); Raghav Gaiha (Department of Urban Studies and Regional Planning, MIT, Cambridge, USA); Ganesh Thapa (International Fund for Agricultural Development, Rome, Italy); Samuel Kobina Annim (University of Manchester, UK) |
| Abstract: | Building on the recent literature on finance, growth and hunger, we have examined the experience of Asian countries over the period 1960-2010 by dynamic and static panel data models. We have found evidence favouring a positive role of finance - defined as private credit by banks - on growth of GDP and agricultural value added. Private credit as well as loans from the World Bank significantly reduces undernourishment, while remittances and loans from microfinance institutions appear to have a negative impact on poverty. Our empirical evidence shows that growth performance was significantly lower during the recent global financial crisis than non-crisis periods, though the severity is much smaller during the recent financial crisis than Asian financial crisis. |
| Keywords: | Finance, Economic Development, Agriculture, Inequality, Poverty, Asia |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:kob:dpaper:dp2013-10&r=cwa |
| By: | Yoichi Matsumoto (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan); Kiyonori Sakakibara; Masharu Tsujimoto |
| Abstract: | In this paper we discuss liquid crystal displays as an example of "complex goods," or products composed of multiple constituent elements, in order to elucidate the linkages between science and technology. Exploratory analysis of bibliographic information from patents reveals two primary characteristics of such linkages in the field. First, although technology may not display strong linkages with scientific findings over all, some scientific knowledge is highly valuable for patented inventions. Companies in this field may be able to leverage scientific findings not used by competitors in order to produce more inventions. Second, because complex goods are based on an array of constituent elements, players in the field have the option whether or not to pursue inventions with strong links to science. |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:kob:dpaper:dp2013-11&r=cwa |
| By: | Ngo Van Long; Fabien Prieur; Klarizze Puzon; Mabel Tidball |
| Abstract: | We propose a new methodology exploring Markov perfect equilibrium strategies in differential games with regime switching. Speciffically, we develop a general game with two players having two kinds of strategies. Players choose an action that in fluences the evolution of a state variable, and decide on the switching time between alternative and consecutive regimes. Compared to the optimal control problem with regime switching, necessary optimality conditions are modiffied for the first-mover. When choosing her optimal switching strategy, this player considers her impact on the other player's actions and welfare, vice versa. In order to deter- mine the optimal timing between regime changes, the notion of erroneous timing is introduced and necessary conditions for a particular timing to be erroneous are derived. |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:lam:wpaper:13-06&r=cwa |
| By: | Rhona Barr; Susana Mourato |
| Abstract: | We determine the effects of various management restrictions on adoption rates of marine PES schemes. Choice experiments are used in order to determine how fisher participation rates differ under different marine PES programme designs. Various designs, with differing restriction rates, show different rates of adoption. However, fishers’ express a high utility loss associated with any move away from the current management situation, irrespective of restriction levels. This indicates that PES scheme costs may be high and creating an enabling environment could be important to reducing these perceived losses, as could investment into conditional in-kind compensation mechanisms. The paper also shows choice experiments to be a useful tool in marine PES design. |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp101&r=cwa |
| By: | Saraly Andrade de Sá; Charles Palmer; Salvatore Di Falco |
| Abstract: | The expansion of a given land use may affect deforestation directly if forests are cleared to free land for this use, or indirectly, via the displacement of other land-use activities from non-forest areas towards the forest frontier. Unlike direct land conversion, indirect land-use changes affecting deforestation are not immediately observable. They require the linking of changes occurring in different regions. This paper empirically estimates these indirect effects for the case of Brazil. It presents evidence of a positive relationship between sugarcane expansion in the south of the country and cattle ranching in the Amazon, suggesting that the former is indeed displacing the latter towards the forest frontier. This displacement effect is shown to be a dynamic process materializing over 10 to 15 years. |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp74&r=cwa |
| By: | Alex Bowen |
| Abstract: | The term ‘green jobs’ can refer to employment in a narrowly defined set of industries providing environmental services. But it is more useful for the policy-maker to focus on the broader issue of the employment consequences of policies to correct environmental externalities such as anthropogenic climate change. Most of the literature focuses on direct employment created, with more cursory treatment of indirect and induced job creation, especially that arising from macroeconomic effects of policies. The potential adverse impacts of green growth policies on labour productivity and the costs of employment tend to be overlooked. More attention also needs to be paid in this literature to how labour markets work in different types of economy. There may be wedges between the shadow wage and the actual wage, particularly in developing countries with segmented labour markets and after adverse aggregate demand shocks, warranting a bigger and longer-lasting boost to green projects with high labour content. In these circumstances, the transition to green growth and job creation can go hand in hand. But there are challenges, especially for countries that have built their industrial development strategies around cheap carbon-based energy. Induced structural change, green or otherwise, should be accompanied by active labour market policies. |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp76&r=cwa |
| By: | Tanya O’Garra |
| Abstract: | Individuals and households are responsible for about one third of all carbon emissions in the UK and the US, and yet, there has been limited policy attention to this sector. This chapter proposes that voluntary engagement by individuals and households in carbon-reducing behaviours might be significantly enhanced if climate change is framed clearly, and unequivocally, as a moral issue. However, climate change has a number of features that make it difficult to apprehend as a typical moral problem. This chapter examines each of these features, and discusses how they might be re-cast so that the climate change problem takes the form of a standard moral problem. This chapter also serves as a rudimentary review of the ethics literature relevant to climate change. |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp81&r=cwa |