Economic Rationale for Interconnection and Different Mobile Interconnection Regimes

2012 ◽  
Author(s):  
Barış Yüksel
Keyword(s):  
Economic Rationale

Efficient use of subsidies in the financing of water and wastewater investments

2005 ◽  
Vol 5 (6) ◽  
pp. 197-207
Author(s):  
A.J. Almagro
Keyword(s):  
European Commission ◽  
Significant Risk ◽  
The European Union ◽  
Checks And Balances ◽  
Economic Agents ◽  
Economic Justification ◽  
Economic Rationale ◽  
Eu Directives ◽  
Water And Wastewater ◽  
Investment Subsidy

Compliance with the European Union (EU) standards in the provision of water supply and wastewater services, as set forth in the relevant EU Directives, may require a significant investment effort for some countries and more specifically the new Member States. In order to ease this effort, these countries have the possibility of receiving subsidies from the European Commission to finance their investments. Using as a reference the standard methodology applied by the European Commission to define its intervention rate in a project, this paper focuses on the economic rationale and risks behind the investment subsidies in the sector. The questions asked are (a) what is the economic justification of this kind of investment subsidy and who are the target beneficiaries; (b) what factors may cause these subsidies to reach other economic agents; and (c) what measures would prevent those unexpected transfers of taxpayer resources. The results of the analysis indicate that, although the underlying methodology is economically sound, there is a significant risk that part of the subsidies may end up benefiting economic agents other than those originally targeted. However, this risk can be easily mitigated with some basic checks and balances during the calculation of the intervention rate. The views expressed in this paper are strictly personal.

A Transaction-Cost Perspective on the Multitude of Firm Characteristics

2020 ◽  
Vol 33 (5) ◽  
pp. 2180-2222 ◽  
Author(s):  
Victor DeMiguel ◽  
Alberto Martín-Utrera ◽  
Francisco J Nogales ◽  
Raman Uppal
Keyword(s):  
Transaction Costs ◽  
Stock Returns ◽  
Firm Characteristics ◽  
Pricing Models ◽  
Oxford University ◽  
Asset Pricing Models ◽  
Economic Rationale ◽  
Underlying Stocks ◽  
Different Characteristics ◽  
Published Paper

Abstract We investigate how transaction costs change the number of characteristics that are jointly significant for an investor’s optimal portfolio and, hence, how they change the dimension of the cross-section of stock returns. We find that transaction costs increase the number of significant characteristics from 6 to 15. The explanation is that, as we show theoretically and empirically, combining characteristics reduces transaction costs because the trades in the underlying stocks required to rebalance different characteristics often cancel out. Thus, transaction costs provide an economic rationale for considering a larger number of characteristics than that in prominent asset-pricing models. Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.

Exploring the economic rationale of extremes in GARCH generated betas The case of U.S. banks

2000 ◽  
Vol 40 (1) ◽  
pp. 85-106 ◽  
Author(s):  
Michael D. McKenzie ◽  
Robert D. Brooks ◽  
Robert W. Faff ◽  
Yew Kee Ho
Keyword(s):  
Economic Rationale

Vertical Trade Specialization and the Formation of North-South PTAs

2012 ◽  
Vol 64 (4) ◽  
pp. 622-658 ◽  
Author(s):  
Mark S. Manger
Keyword(s):  
Trade Agreements ◽  
Preferential Trade Agreements ◽  
Middle Income ◽  
Trade Specialization ◽  
Middle Income Countries ◽  
The North ◽  
Economic Rationale ◽  
Unit Value ◽  
Vertical Trade ◽  
Capital Intensive

During the last two decades, the number of preferential trade agreements (PTAs) grew almost exponentially to over 270 by 2010. A majority of these are agreements between developed and developing countries. Existing models provide little economic rationale for these agreements, but the existing literature lumps North-South PTAs together with other types of trade pacts. This article offers an explanation focused on the movement of less capital-intensive manufacturing from North to South, which in turn stimulates the exchange of similar goods differentiated by unit value—also referred to as vertical intra-industry trade. The North exports more capitalintensive goods, while more labor-intensive goods are produced and traded by the South. This kind of specialization creates incentives for governments to support PTAs. The author tests this model using a new measure of vertical trade specialization and finds strong evidence that such specialization promotes PTA formation. North-South PTAs should therefore be seen as part of a broader shift of manufacturing from high- to middle-income countries.

The effects of personal experience on choice-based preferences for wildfire protection programs

2013 ◽  
Vol 22 (2) ◽  
pp. 234 ◽  
Author(s):  
Thomas P. Holmes ◽  
Armando González-Cabán ◽  
John Loomis ◽  
José Sánchez
Keyword(s):  
Willingness To Pay ◽  
Personal Experience ◽  
Choice Experiment ◽  
Prior Experience ◽  
Preference Heterogeneity ◽  
Risk Averse ◽  
Risk Seeking ◽  
Economic Rationale ◽  
Trade Offs ◽  
Risk Loss

In this paper, we investigate homeowner preferences and willingness to pay for wildfire protection programs using a choice experiment with three attributes: risk, loss and cost. Preference heterogeneity among survey respondents was examined using three econometric models and risk preferences were evaluated by comparing willingness to pay for wildfire protection programs against expected monetary losses. The results showed that while nearly all respondents had risk seeking preferences, a small segment of respondents were risk neutral or risk averse. Only respondents who had personal experience with the effects of wildfire consistently made trade-offs among risk, loss and cost and these respondents were willing to pay more for wildfire protection programs than were respondents without prior experience of the effects of wildfire. The degree to which people with prior experience with the effects of wildfire can effectively articulate an economic rationale for investing in wildfire protection to other members of their own or other communities facing the threat of wildfires may influence the overall success of wildfire protection programs.

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