The effects of property and landowner characteristics on profit efficiency in salmon angling tourism in Norway

This paper analyzes how different property and landowner characteristics and other factors affect landowners’ profit efficiency from salmon angling tourism. The paper helps correct a lack of studies on the economic aspects of the triple bottom line approach to sustainability and suggests new areas of rural tourism research. A stochastic profit frontier function with an inefficiency module was estimated based on survey responses from 203 landowners along four Mid-Norway rivers. Profit efficiency decreased as the revenues from off-property and on-property activities increased relative to angling tourism. Factors increasing efficiency were long-term renting of fishing instead of permit sale or selling fishing packages with additional services and common property ownership instead of simple fee ownership. Cooperation, by merging several fishing rights into one unit rather than fishing on a single property basis, decreased efficiency. This study did not distinguish between different forms of cooperation; mandatory cooperation in the form of common property and voluntary cooperation between private properties are issues for further research. If sustainable economic efficiency is a public goal, policies should ensure a predictable economic environment for landowners specializing in salmon angling tourism and promote long-term renting, with a 10-year minimum period for the lease of fishing rights.     

Portfolio management without probabilities or statistics

Considered here is on-line portfolio management aimed at maximizing the long-run growth of financial wealth. The portfolio is repeatedly rebalanced in response to observed returns on diverse assets. Suppose statistical information and related methods are not available—or deemed too difficult. On that assumption this paper explores how an adaptive procedure, which totally dispenses with statistics and associated competence, nonetheless may solve the problem over time.     

Learning competitive market balance

Summary We exhibit a quite natural, adaptive process generated by price-taking, noncooperative firms, supplying the same market. Under rather mild conditions, that process, being driven by marginal profits, converges to a market clearing, Cournot-Nash equilibrium. Namely, it suffices for convergence that cost functions be strictly convex and that the law of demand holds. Randomness in revenues and costs is accommodated.Support from Ruhrgas is gratefully acknowledged.     

A new look for Stackelberg-Cournot equilibria in oligopolistic markets

Summary. This note deals with Cournot type oligopolies in which the market clearing price occasionally may be non-unique. A Stackelberg leading producer is present. Given that setting we explore continuity properties of the followers' reaction and provide sufficient conditions for existence of equilibrium. Received: June 20, 2000; revised version: April 24, 2001     

The Forward Premium in the Nord Pool Power Market

This article investigates the forward premium of futures contracts in the Nordic power market for the time period from January 2004 to December 2013. We find that futures prices are biased predictors of the subsequent spot prices and that there is a significant forward premium in the Nord Pool market, particularly during the winter and autumn. We analyze the impact from several factors on the forward premium. The spot price, and the deviation of water inflow from its usual level, positively affect the forward premium. The variance of the spot price also has a positive effect on the forward premium, but only for the contract closest to delivery.     

A New Method for Estimating Market Power with an Application to Norwegian Sawmilling

In this paper we apply an innovative econometric tool to estimate mark-ups in an output market. The contribution of the paper is in the novel use of the stochastic frontier approach that is widely used to estimate efficiency. We show that this method, which we call the stochastic frontier estimator of market power, can be used both in the dual cost function framework and in the primal framework, and that mark-ups can be estimated with or without constant returns to scale. We apply this method to the Norwegian sawmilling industry, 1974–91.     

Medium-term EU integration impacts on Norwegian agriculture: A partial equilibrium analysis

The paper analyses and discusses possible impacts on Norwegian agriculture of an EU membership based on the regionalized agricultural sector model CAPRI. Norwegian agriculture is characterized by a small-scale farming structure and high levels of support. Previous analyses have shown that Norwegian agriculture is expected to undergo dramatic changes because of EU membership in terms of farm income, production and structural change. Our study indicates that a substantial share of the agricultural production can be maintained at the national level. Milk and crop production may remain largely unaffected, while meat production decreases in the range of 10-20% compared to a reference run without membership. However, a reduction in total farm income by about 40% indicates that structural adjustments will follow EU accession. The results are discussed in view of the pattern of adjustments observed in Finland and Austria after EU accession in 1995. The need for the dairy industry to take advantage of the improved market access is stressed. Attention is also called to some strengths and limitations of the CAPRI model to analyse large-scale policy changes and to identify model improvements as an area of future research.     

Multifunctional agriculture, policy measures and the WTO: the Norwegian case

One of the questions debated in the ongoing WTO agricultural negotiations is whether 'trade-distorting' subsidies, or subsidies outside the 'green box', are needed in order to pursue non-trade concerns. The term 'multifunctional agriculture' is increasingly applied to describe non-trade concerns. This article focuses on how to achieve the multifunctional goals that nations may have with minimal trade-distortion. In the first part of the article, this is done by a literature review and a theoretical analysis. The findings are then converted into an analysis of possible policy formulations in a Norwegian context using a partial equilibrium model. The article argues that multifunctionality hardly can justify the use of market support, while it may justify production-related budget support if the positive externalities or public goods are produced jointly with or complementary to agricultural production. The article concludes with suggestions for WTO trade rules to prevent such policies from becoming a form of protectionism.     

Coupled projects,core imputations,and the CAPM

Projects, private or public, that share input factors or output requirements had better be construed as members of a portfolio. Present risk, the capital asset pricing model may facilitate valuation of each member. Chief results of that model are derived and generalized here as core solutions to a transferable-utility production game. Shadow prices define stochastic discount factors that determine values of individual projects. Variance aversion largely affects such prices whence optimal allocations.     

US Trade Policy Power and Sustainable Consumption: Beef and Cars in North East Asia

This paper describes the historical development of the traditionally marked contrast in regional consumption patterns between the Americas and North East Asia, and discusses the impact of these consumption patterns on the environment. Using the literature on consumption of beef and cars as indicators of consumption patterns and sustainability, the paper shows that the consumption style of the Americas is less sustainable than the traditional consumption patterns in North East Asia. However, it is also demonstrated that a change in consumption patterns in North East Asia has taken place throughout the 1990s, resulting in a move toward greater unsustainability. The reasons for this change are discussed, and it is argued that US trade policy power has played a significant role.