The Welfare Effects of Bundling in Multichannel Television Markets

2012 ◽  
Vol 102 (2) ◽  
pp. 643-685 ◽  
Author(s):  
Gregory S Crawford ◽  
Ali Yurukoglu
Keyword(s):  
Welfare Effects ◽  
Total Surplus ◽  
Consumer Benefits ◽  
Short Run ◽  
Using Data ◽  
A La Carte

We measure how the bundling of television channels affects short-run welfare. We estimate an industry model of viewership, demand, pricing, bundling, and input-market bargaining using data on ratings, purchases, prices, bundles, and input costs. We conduct simulations of à la carte policies that require distributors to offer individual channels for sale to consumers. We estimate that negotiated input costs rise by 103.0 percent under à la carte. These higher input costs offset consumer benefits from purchasing individual channels. Mean consumer and total surplus change by an estimated —5.4 to 0.2 percent and —1.7 to 6.0 percent, respectively. (JEL D12, L11, L51, L82, M31)

Electricity consumption and economic growth in ASEAN

2017 ◽  
Vol 5 (2) ◽  
pp. 16
Author(s):  
Ahmad Ghazali Ismail ◽  
Arlinah Abd Rashid ◽  
Azlina Hanif
Keyword(s):  
Economic Growth ◽  
Energy Use ◽  
Electricity Consumption ◽  
Panel Estimation ◽  
Real Gdp ◽  
Long Run ◽  
Bidirectional Relationship ◽  
Short Run ◽  
Using Data ◽  
The Relationship

The relationship and causality direction between electricity consumption and economic growth is an important issue in the fields of energy economics and policies towards energy use. Extensive literatures has discussed the issue, but the array of findings provides anything but consensus on either the existence of relations or direction of causality between the variables. This study extends research in this area by studying the long-run and causal relations between economic growth, electricity consumption, labour and capital based on the neo-classical one sector aggregate production technology mode using data of electricity consumption and real GDP for ASEAN from the year 1983 to 2012. The analysis is conducted using advanced panel estimation approaches and found no causality in the short run while in the long-run, the results indicate that there are bidirectional relationship among variables. This study provides supplementary evidences of relationship between electricity consumption and economic growth in ASEAN.

Determinants of Treasury-LIBOR Swap Spreads

2005 ◽  
Vol 08 (04) ◽  
pp. 687-705 ◽  
Author(s):  
D. K. Malhotra ◽  
Vivek Bhargava ◽  
Mukesh Chaudhry
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Default Risk ◽  
Yield Curve ◽  
Short Term ◽  
Long Run ◽  
Interest Rate Volatility ◽  
Short Run ◽  
Using Data ◽  
Swap Spreads

Using data from the Treasury versus London Interbank Offer Swap Rates (LIBOR) for October 1987 to June 1998, this paper examines the determinants of swap spreads in the Treasury-LIBOR interest rate swap market. This study hypothesizes Treasury-LIBOR swap spreads as a function of the Treasury rate of comparable maturity, the slope of the yield curve, the volatility of short-term interest rates, a proxy for default risk, and liquidity in the swap market. The study finds that, in the long-run, swap spreads are negatively related to the yield curve slope and liquidity in the swap market. We also find that swap spreads are positively related to the short-term interest rate volatility. In the short-run, swap market's response to higher default risk seems to be higher spread between the bid and offer rates.

scholarly journals Urban Accounting and Welfare

2013 ◽  
Vol 103 (6) ◽  
pp. 2296-2327 ◽  
Author(s):  
Klaus Desmet ◽  
Esteban Rossi-Hansberg
Keyword(s):  
Large Population ◽  
The United States ◽  
Welfare Effects ◽  
City Size ◽  
Negative Effects ◽  
The Us ◽  
City Size Distribution ◽  
Using Data ◽  
Main Components ◽  
The City

We use a simple theory of a system of cities to decompose the determinants of the city size distribution into three main components: efficiency, amenities, and frictions. Higher efficiency and better amenities lead to larger cities but also to greater frictions through congestion and other negative effects of agglomeration. Using data on MSAs in the United States, we estimate these city characteristics. Eliminating variation in any of them leads to large population reallocations, but modest welfare effects. We apply the same methodology to Chinese cities and find welfare effects that are many times larger than those in the US. (JEL H71, O18, P25, R11, R23, R41)

scholarly journals Investigating in the J-curve phenomenon in Tunisia- ARDL bound test approach

2020 ◽  
Vol 12 (5(J)) ◽  
pp. 23-32
Author(s):  
Elham Shubaita ◽  
Muhammad Mar’i ◽  
Mehdi Seraj
Keyword(s):  
Trade Balance ◽  
Real Exchange Rates ◽  
Distributed Model ◽  
Long Run ◽  
J Curve ◽  
Short Run ◽  
Using Data ◽  
Bound Test ◽  
The Relationship ◽  
Ardl Bound Test

This paper investigates the relationship between trade balance, real exchange rates, and incomes in Tunisia by adopting the autoregressive distributed model (ARDL) by using data over the period of 1980 to 2018. We also used the bound test cointegration between variables at a 10% significant level. Our findings show that the Tunisia economy does not match the Marshall-Lerner condition in the long run, that provides an accurate description of the particular situation for which a country currency devaluation or depreciation its currency under both fixed or floating regime is predicted to enhance the trade balance of a country, which means there is no j-curve phenomenon in the long run, which tries to differentiate between the change of short-run and long-run effects in the change of exchange rate on the trade balance. Our findings match the Marshall-Lerner condition in the short run and can confirm the existing j-curve in the case of Tunisia.

scholarly journals The Welfare Effects of Use-or-Lose Provisions in Markets with Dominant Firms

2013 ◽  
Vol 5 (1) ◽  
pp. 175-193 ◽  
Author(s):  
Ian Gale ◽  
Daniel P O'Brien
Keyword(s):  
Wireless Communications ◽  
Welfare Effects ◽  
Productive Capacity ◽  
Dominant Firm ◽  
Aggregate Output ◽  
Stated Objective ◽  
Total Surplus ◽  
Dominant Firms ◽  
Limit Capacity

A use-or-lose provision requires that firms employ a certain minimum fraction of their productive capacity. Variants have been used by regulators in the airline and wireless communications industries, among others. A typical stated objective is to limit capacity hoarding, thereby increasing aggregate output and welfare. When the dominant firm is more efficient than fringe firms, we find that imposing a use-or-lose provision induces the dominant firm to acquire capacity from the fringe, which causes aggregate output to fall. When the dominant firm is less efficient than the fringe, aggregate output rises. In both cases, total surplus may rise or fall. (JEL D43, K21, L13, L93)

scholarly journals Key Determinants of Organic Food Consumption: The Case of Olive Oil in Spain

HortScience ◽  
2018 ◽  
Vol 53 (8) ◽  
pp. 1172-1178 ◽  
Author(s):  
Manuela Vega-Zamora ◽  
Francisco José Torres-Ruiz ◽  
Manuel Parras-Rosa
Keyword(s):  
Olive Oil ◽  
Major Effect ◽  
Intent To Purchase ◽  
Product Consumption ◽  
Consumer Benefits ◽  
Quality Product ◽  
Key Variables ◽  
Using Data ◽  
Organic Food Consumption ◽  
Perceived Costs

The literature on organic consumer behavior has provided some knowledge about the main constructs and variables related to the purchase and consumption of organic foods and could be used to plan strategies to increase demand. However, the recommendations are not clear, varying among different authors, products, and markets; so, it seems necessary to study each case separately. This study aims to isolate the key variables that could influence the purchase of organic olive oil in the Spanish market and to analyze which of these variables have a major effect on the intent to purchase. Using data from a survey of 800 individuals, variables involved in the purchase decision process are included in a linear regression model of latent classes. The results indicate that the product consumption patterns do not respond to a uniform consumption profile but point to a coexistence of groups of people with different propensities to buy and different sensitivities to different commercial stimuli. The main conclusion is that the most effective actions to develop demand should focus on directly linking consumption of the product to consumer benefits such as leading a healthier life, eating a higher-quality product, or enjoying nature, rather than to other variables such as difficulties, perceived costs, or confidence in the certification process.

New Empirical Evidence of the Role of Interest Groups in Influencing the Growth of Government

2000 ◽  
Vol 18 (2) ◽  
pp. 83-100
Author(s):  
Gary A. Wagner ◽  
Russell S. Sobel
Keyword(s):  
Interest Groups ◽  
Political Action ◽  
Political Action Committees ◽  
The Public ◽  
The Status ◽  
Short Run ◽  
Using Data ◽  
The Impact ◽  
New Evidence

Abstract We provide new evidence regarding the role of interest groups in influencing the size and growth of government spending. Using data on the change in individual legislators’ total voted and sponsored spending from the status quo, we explore this relationship in a manner closer to the public choice tradition. Examining the impact diat interest groups have on individual legislators’ preferences for new spending, we find that interest groups within a legislator’s district exhibit more influence on the short-run growth of the budget than do Political Action Committees.

On the welfare effects of mergers: Short run vs. long run

1998 ◽  
Vol 38 (1) ◽  
pp. 1-24 ◽  
Author(s):  
Stephen Polasky ◽  
Charles F. Mason
Keyword(s):  
Welfare Effects ◽  
Long Run ◽  
Short Run

scholarly journals The Endogenous Money Hypothesis: an Empirical Study of The Saudi Arabia

2015 ◽  
Vol 1 (03) ◽  
Author(s):  
Dr. Saud Almutair
Keyword(s):  
Saudi Arabia ◽  
Money Supply ◽  
Wald Test ◽  
Bank Loans ◽  
Long Run ◽  
Demand Deposit ◽  
Short Run ◽  
Endogenous Money ◽  
Using Data ◽  
Vector Error Correction Models

In this paper, the endogenous money supply hypothesis in Saudi Arabia is examined using data from January 1997 to February 2015. The study uses Johansen cointegration technique and Vector Error Correction models (VECM) for cointegrated series.The long run causality was found to run from bank loans (BL) and from demand deposit (TD) to the money supply (MS1), and not from MS1to BL, as the mainstream view. The endogenios money supply hypothesis is reinforced by the long run causality running from BL to TD. For MS2, the study verifies a long run causality running from BL and TD to MS2. Therefore, the money supply of Saudi Arabia whether using MS1 or MS2 is endogenous in the long run. The result of short run causality with regard of MS1 using Wald Test does not confirm money supply endogeneity in the short run. Short run causality using Granger with regard to MS2 assures short run causality running from TD and BL to MS2. The implication of this work is that Saudi monetary agency can not control the money supply in the long run. It only has some influence on MS1 in the short run.

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