Energy Costs, the Transport Network, and Urban Form

1979 ◽  
Vol 11 (6) ◽  
pp. 655-664 ◽  
Author(s):  
D S Dendrinos
Keyword(s):  
Urban Form ◽  
Aggregate Demand ◽  
Transportation Cost ◽  
Fixed Number ◽  
Comparative Statics ◽  
Gasoline Prices ◽  
Energy Costs ◽  
Energy Prices ◽  
Long Run ◽  
The Impact

The paper examines, through comparative statics, the impact on urban form of changes in the price of energy used for transportation. Two specific models are analyzed within a framework of long-run equilibrium: Model 1 involves households that supply an institutionally fixed number of labor hours, and their choice of residential location is affected by energy costs as the only out-of-pocket transportation cost for the journey to work; and model 2 deals with households that trade off travel time for work time and thus incur a time cost equal to the forgone income from production. The paper shows that in model 1 higher gasoline prices do result in less aggregate demand for gasoline and in less suburbanization of the residential activity. In model 2 higher energy prices do not necessarily result in either less suburbanization or less aggregate demand for gasoline.

scholarly journals The Stability Of Virtual Equilibrium

2011 ◽  
Vol 2 (12) ◽  
Author(s):  
Tarek H. Selim
Keyword(s):  
Aggregate Demand ◽  
Market Equilibrium ◽  
Search Costs ◽  
Market Demand ◽  
Elastic Demand ◽  
Font Size ◽  
Demand Growth ◽  
Long Run ◽  
The Stability ◽  
The Impact

<p class="MsoBodyText2" style="margin: 0in 0.5in 0pt;"><span style="font-size: 10pt; mso-bidi-font-style: italic;"><span style="font-family: Times New Roman;">The impact of information technology (IT) on the stability of market equilibrium is explained from a simple microeconomic standpoint. Attributes of a dynamically stable &ldquo;virtual&rdquo; market equilibrium are described assuming consumer rationality, an elastic supply curve, and minimum static market demand. Three conditions are necessary for long-run price stability of such a &ldquo;virtual&rdquo; equilibrium: (1) firm-specific strategic effects have to be completely offset by aggregate demand growth effects, (2) market equilibrium must arise under the constraint of demand sustainability, and (3) consumer indirect utility gains from information availability must exceed their respective disutility from locational search costs. Those conditions stem from more elastic supply together with less elastic demand compared to when IT is not utilized.<span style="mso-spacerun: yes;">&nbsp; </span></span></span></p>

scholarly journals Extreme Events, Entrepreneurial Start-Ups, and Innovation: Theoretical Conjectures

2021 ◽  
Author(s):  
Thomas Gries ◽  
Wim Naudé
Keyword(s):  
Extreme Events ◽  
Aggregate Demand ◽  
Partial Equilibrium ◽  
Policy Recommendations ◽  
Online Retail ◽  
Long Run ◽  
Supply Shock ◽  
Partial Equilibrium Model ◽  
Start Ups ◽  
The Impact

AbstractIn light of the COVID-19 pandemic, we scrutinize what has been established in the literature on whether entrepreneurship can cause and resolve extreme events, the immediate and long-run impacts of extreme events on entrepreneurship, and whether extreme events can positively impact (some) entrepreneurship and innovation. Based on this, we utilize a partial equilibrium model to provide several conjectures on the impact of COVID-19 on entrepreneurship, and to derive policy recommendations for recovery. We illustrate that while entrepreneurship recovery will benefit from measures such as direct subsidies for start-ups, firms’ revenue losses, and loan liabilities, it will also benefit from aggregate demand-side support and income redistribution measures, as well as from measures that facilitate the innovation-response to the Keynesian supply-shock caused by the pandemic, such as access to online retail and well-functioning global transportation and logistics.

Influence of Facade Colour on Yearly Energy Need

2013 ◽  
Vol 855 ◽  
pp. 57-61
Author(s):  
Dušan Jurík ◽  
Ivan Chmúrny
Keyword(s):  
Low Cost ◽  
Point Of View ◽  
Main Trend ◽  
Energy Costs ◽  
Energy Prices ◽  
Zero Energy ◽  
Heating And Cooling ◽  
Energy Needs ◽  
The Impact ◽  
Selection Of

Energy prices are constantly rising and that ́s why people are always looking for new ways to reduce energy costs. The main trend is to eliminate heat losses to the maximum extent. The demands for more sophisticated outer insulation for building still envelope (roofs, floors, walls, doors, and windows) are growing. Increased demands are evident also in the standards used in this area. Buildings with nearly zero energy (nZEB) become not only a vision but reality. Several ways for reduction of the energy needs are offered. The application of various colour adjustments of the building facade is one of the options. The impact of colour on the demand for heating and cooling at different thermal insulation capability is analyzed from the thermo - technical point of view. However, the question is whether it is possible to influence the annual costs for heating and cooling through the selection of facade colour (respectively through the absorption of solar radiation). We can say that today's architecture tries to use the structure of the building as some kind of thermal radiation (or rather solar energy) accumulator. In such a way we can characterize the majority of the structural designs for energy low cost buildings, where the main aim of such a solution is to reduce the energy need for heating and cooling.

Does Energy Constraint Facilitate the Japanese Technical Change?

2013 ◽  
Vol 664 ◽  
pp. 1166-1170 ◽  
Author(s):  
Yu Hong ◽  
Jia Lin Guan ◽  
Hong Wei Su
Keyword(s):  
Technical Change ◽  
Industrial Production ◽  
Energy Costs ◽  
Energy Prices ◽  
Negative Effects ◽  
Export Prices ◽  
Positive Effects ◽  
Long Run ◽  
Causality Tests ◽  
Short Run

This study challenges the traditional wisdom that soaring energy prices exert negative effects upon economic growth. For an industrialized country with very tight energy supply constraints, increasing energy costs may drive the firms to seek for technical change and innovation to compete internationally. Using the Japanese monthly data ranging from 1975 to 2010, this study tests for the assumption of endogenous cost-driven technical change. We identify a long-run equilibrium co-integrating relationship among the Japanese industrial production, energy prices, export volumes and export prices. Although energy prices are negatively associated with Japanese industrial production in static equilibrium, the results of Granger causality tests show that an increase in domestic energy costs has significantly positive effects on Japan’s industrial production as well as on export volumes and prices, in both short-run and long-run. We document that the seemingly paradox strongly suggests an endogenous technological change driven by energy costs in Japan.

scholarly journals Ekonomske posledice španske groznice (1918–1920): skica za ekonomsku istoriografiju jedne pandemije

2021 ◽  
Vol 69 (1) ◽  
pp. 131-170
Author(s):  
Boris Begović
Keyword(s):  
Human Capital ◽  
Technological Progress ◽  
Excess Mortality ◽  
Labour Supply ◽  
Aggregate Demand ◽  
Intergenerational Transfer ◽  
Long Run ◽  
Short Run ◽  
Spanish Flu ◽  
The Impact

The aim of the paper is to explore the economic outcomeс of the Spanish flu pandemic and to systemise the insights in such a way that they can be used for shedding light on the economic outcomes of COVID-19 pandemic. It was demonstrated that in the short run the impact of the Spanish flu was a significant one-off drop of the output due to the significant decrease in labour supply augmented by the decrease in aggregate demand. In the long run the Spanish flu decreased the level of available human capital in two ways: directly due to the excess mortality, and indirectly due to the intergenerational transfer of lower human capital and the health of mothers during pregnancy. The decrease in human capital generated adverse consequences on economic growth and these consequences increase with technological progress, which demands a higher level of human capital.

scholarly journals Impact of Budget Deficit on Private Consumption inWAEMU Countries: Evidence from Pooled Mean Group Estimation

2016 ◽  
Vol 8 (3) ◽  
pp. 189 ◽  
Author(s):  
Yaya Keho
Keyword(s):  
Private Consumption ◽  
Budget Deficit ◽  
Aggregate Demand ◽  
Estimation Method ◽  
Annual Data ◽  
Budget Deficits ◽  
Positive Effects ◽  
Pooled Mean Group ◽  
Long Run ◽  
The Impact

This study empirically investigates the impact of budget deficit on private consumption in seven member countries of the West African Economic and Monetary Union (WAEMU), namely Benin, Burkina Faso, Côte d’Ivoire, Mali, Niger, Senegal and Togo. It applies the pooled mean group estimation method to annual data covering the period 1970 to 2013. The results show that budget deficit and per capita GDP have long run positive effects on household consumption whereas inflation rate is detrimental to private consumption. This suggests that private consumption cannot be held responsible for any crowding-out effects that budget deficit might have on long run aggregate demand and economic growth in WAEMU countries. Therefore, restricting the size of budget deficits is costly for the development of WAEMU countries.

scholarly journals Revival of Legacy of Tooke and Gibson: Further Evidence and Implications for Monetary Policy

2017 ◽  
Vol 6 (3) ◽  
pp. 127-142
Author(s):  
Keyword(s):  
Interest Rate ◽  
Aggregate Demand ◽  
Correlation Coefficients ◽  
Large Data ◽  
Careful Analysis ◽  
Data Set ◽  
Long Run ◽  
Variable Bias ◽  
The Impact ◽  
The Relationship

AbstractTraditional economics assumes that interest rate effects inflation by changing the aggregate demand (Barth and Ramay, 2002). On the other hand, many economists in recent years have explored the cost side effects of monetary transmission and found very strong evidences in favour of cost channel. One of such studies is that by Rehman (2015) which explores the relationship between interest rate and inflation for a large data set comprising various measures of interest rate and inflation from countries around the globe. Rehman (2015) computes the correlation between two variables and he finds that the correlation between two variables is either positive or insignificant. Rehman argues that the finding is quite robust and does not change with a change in measure of interest rate and/or inflation. If the correlation between interest rate and inflation is positive then using interest rate to control inflation would be counterproductive. Thus it will endorse the warning of Wright Patman, a US congressman and Chairman of Joint Economic Committee who argues that “senseless of trying to fight inflation by raising interest rate, throwing the gasoline on fire to put out the flames would be as logical”. Findings of Rehman (2015) are based on correlation coefficients. The correlation without having control variables could only provide a clue and could be subject to serious missing variable bias. However, Rehman (2015) argues that thousands of similar clues from the entire globe collectively become very strong evidence. However, given the importance of the topic, it is necessary to do a more careful analysis and summarize the relationship between two variables which is not subject to missing variable bias. Therefore, this paper applies more sophisticated econometric techniques including Granger Causality and Static Long Run Solution to find the impact of interest rate and inflation.

scholarly journals A Review of the Unemployment - Economic Growth Nexus in Nigeria from 1980 to 2015: A Disaggregated Approach

Growth ◽  
2021 ◽  
Vol 8 (1) ◽  
pp. 48-56
Author(s):  
Oyinlola Olaniyi ◽  
Muhammad Ali ◽  
Adesanya Babatunde Moses
Keyword(s):  
Value Chain ◽  
Aggregate Demand ◽  
Negative Relationship ◽  
Total Output ◽  
Gdp Growth ◽  
Distributed Lag ◽  
Long Run ◽  
Oil Sector ◽  
The Impact ◽  
Bound Test

The phenomenon of jobless growth in Nigeria in recent years has called to question the Okun’s law that the growth of gross domestic product (GDP) reduces unemployment. This study therefore, analyses the nexus between GDP growth and unemployment in Nigeria by disaggregating total output into its sectoral components to analyze the impact of sectoral output on unemployment using data from 1980 to-2015 employing the econometric technique of Autoregressive Distributed Lag (ARDL) bound testing approach. Two ARDL models were specified. The first bound test revealed the existence of co integration between unemployment and GDP growth. The growth of GDP is positively related to unemployment in the long run but a negative relationship was found in the short run. The result of the disaggregated model (i.e the second ARDL model) found no long run relationship between unemployment and agriculture, industry, construction, trade, and services. We opined that the findings of the disaggregated model resulted from the disconnection between aggregate demand and aggregate supply of the productive sectors and the lack of direct linkages between the oil sector and other sectors of the economy. The study recommends that such linkages should be forged through enhanced funding of research and development, technological innovation and the development of value chain of agriculture and solid minerals output. Nigerians should be encouraged to consume locally made products. Efforts should be intensified to develop direct linkages between the oil sector and other sectors through input supply contracts and the development of downstream industries in the oil sector.

Energy Costs, Endogenous Innovation, and Long-run Growth / Energiekosten, endogener technischer Fortschritt und Wirtschaftswachstum

2002 ◽  
Vol 222 (4) ◽  
Author(s):  
Heinz Welsch ◽  
Klaus Eisenack
Keyword(s):  
Technological Progress ◽  
Marginal Utility ◽  
Energy Costs ◽  
Neoclassical Model ◽  
Secular Changes ◽  
Endogenous Innovation ◽  
Endogenous Technological Change ◽  
Long Run ◽  
Innovation Model ◽  
The Impact

SummaryBased on the observation that energy costs have been decreasing over much of the 20th century, this paper extends the Romer (1990) model of endogenous technological change to examine the impact of secular changes in energy costs on technological progress and long-run growth. The key finding is that decreasing energy costs, while unambiguously increasing the rate of growth of output, enhance or reduce the rate of technological progress depending on the representative household's elasticity of marginal utility. A calibration exercise shows that even if technological progress is actually neither enhanced nor reduced, the endogenous innovation model of growth predicts a substantially stronger effect of energy costs on growth than the neoclassical model.

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