Estimating direct and indirect rebound effects for U.S. households with input–output analysis Part 1: Theoretical framework

This is the first part of a two-part paper providing an analytical model of the indirect rebound effect, given a direct rebound estimate, that integrates consumer demand theory with the embodied energy of household spending from environmentally-extended input–output analysis. The second part applies the model developed in part one to simulate the direct and indirect rebound for the average U.S. household in terms of primary energy, CO₂e, NO_x, and SO₂ emissions and for energy efficiency investments in electricity, natural gas, or gasoline services. Part one provides a critical review of the largely independent economic and industrial ecology literatures on the indirect rebound. By studying the two-goods case and the n-goods case, we demonstrate that the indirect rebound is bounded by the consumer budget constraint, and inversely related to the direct rebound. We also compare the common proportional spending and income elasticity spending assumptions with our model of cross-price elasticities including both substitution and income effects for the indirect rebound. By assuming zero incremental capital costs and the same embodied energy as conventional technologies for efficient appliances, we model an upper bound of the indirect rebound. Future work should also consider the increase in consumer welfare possible through the rebound effect.     

Technology licensing or cost-reducing outsourcing? Game theoretical analysis on consumers' home bias effects and firms' optimal strategies

International cost-reducing outsourcing lowers consumers' perceived quality of products due to home bias. This paper envisages a vertically differentiated Cournot duopoly associated with international, cost-reducing outsourcing and non-outsourcing schemes in both licensing and non-licensing cases. It examines the impacts of home bias effect on the behaviour of firms and welfare. It shows that the optimal strategy of the patent holder varies from situation to situation associated with the home bias effect. In equilibrium, the dominant strategy for the patent holder is licencing and no outsourcing. If a licensee will outsource its inputs after upgrading the quality of its products, then the patent holder will earn higher profits than one in a case where the licensee does not outsource. If both the patent holder and the licensee produce without outsourcing, a welfare-reducing licensing occurs. On the other hand, if the licensee outsources its production inputs but the patent holder does not outsource, then a welfare-improving licensing generates a win-win situation for the patent holder and for society. Furthermore, the smaller the quality gap between two goods prior to implementing licensing, the lower the royalty rate imposed by the patent holder.     

Internationalisation,growth and pay inequality: a cointegration analysis for Turkey, 1970–2007

The nature of the internationalisation-growth-inequality nexus is very complex; and therefore, not surprisingly, there is no consensus on whether increasing openness to trade leads to higher inequality or not – in fact, there is even no full understanding on the impact of the openness on the economic growth. In the case of Turkey it is observed that there is relatively little empirical work that addresses the issue of inequality. Considering this fact, the study aims to provide some more evidence on the complex relationship between trade openness, foreign direct investment, economic growth and pay inequality by utilising a combination of different Theil Indices of pay inequality. The paper utilises the Johansen Cointegration and Granger Causality methods. Our findings yield that higher economic growth resulting from trade openness comes with higher pay inequality.     

Economic reform and informal wage—a general equilibrium analysis

We attempt to trace the consequences of liberal economic policies on informal wage in a general equilibrium model with formal informal labor markets, wage-differential, vertical linkage and restricted capital movement. In particular, we show that the informal wage, representing income for a vast segment of unskilled labor may actually increase even if more people are employed in the informal segment. This also confirms that a contraction in the formal sector employment and the consequent expansion in the informal segment do not necessarily imply impoverishment of the existing set of informal workers.     

Keynes‐Marx and Keynes‐Wicksell Models of Monetary Growth: A framework for future analysis

This paper reconsiders and generalizes a dichotomizing two-sector real growth model of Marglin which claims that the steady state of capitalist economies is plagued by secular inflation. We show that this implication need not be true from the perspective of a more general steady state analysis and that the Marglin model can be embedded into a general Keynes‐Marx‐Friedman or Keynes‐Wicksell framework where money is superneutral, where therefore inflation is due solely to excessive monetary growth, where the private sector is basically asymptotically stable and where there is a steady state rate of employment that differs from the 'natural' rate of employment of monetarist models of inflation. We consider this model a benchmark model that requires equally general alternatives if the above implications are to be rejected.     

Financialization and commodity prices – an empirical analysis for coffee,cotton, wheat and oil

Commodity prices have crucial implications for developing countries. The question whether the financialization of commodity derivative markets has contributed to high and volatile commodity prices has been controversially debated. Building on limitations in the empirical literature, we estimate a multivariate Vector Autoregressive (VAR) model to assess the effect of different groups of financial investors (index investors and money managers) as well as fundamental and macroeconomic variables on the prices of coffee, cotton, wheat and oil. We find that, in contrast to index investors, money managers’ net long positions have a large statistically significant effect on commodity prices. This calls for policy interventions as commodity derivative markets may cease to perform their fundamental developmental roles.     

Factor analysis and structural equation model for patent analysis: a case study of Apple’s technology

In this study, we analyse patent data for technology analysis (TA) because patents are rich in information on developed technology. The results of TA can be used to perform more efficient research and development (R&D) planning. Most companies are trying to develop new and innovative technologies to improve their competitive positions. Research involving TA has been introduced in a variety of fields. Most of the published research analysed original variables related to a target technology. However, it is necessary to analyse the latent variables as well as the original variables included in the technology to achieve a better TA model. Therefore, we propose a factor analysis and a structural equation model for patent analysis. In addition, we use Apple’s patents to determine the target technology. In our case study, we analyse Apple’s technologies by latent variables. Our case study shows how the proposed model is applied to Apple’s R&D planning.     

Fertility choice,mortality expectations,and interdependent preferences—An empirical analysis

We investigate the empirical relationship between child mortality and fertility across 46 low and middle income countries. Specifically, we model the effect of mortality expectations and interdependent fertility preferences on fertility. The direct marginal effect of mortality expectations on fertility is larger than zero but less than unity. This implies that a decrease in mortality rates leads to a decrease in children born but to an increase in the number of surviving children and hence the rate of population growth. Taking into account interdependent fertility preferences, whereby an individual's fertility choice affects the fertility decisions of others, the marginal effect of mortality expectations on fertility becomes one. Hence, if we allow for both mortality expectations and the amplifying effect of interdependent fertility preferences, a decrease in child mortality has no net effect on the rate of population growth.     

On the development strategy of countries of intermediate size—An analysis of heterogeneous firms in a multi-region framework

This paper compares two policies: trade cost reduction and firm relocation cost reduction using a three-country version of a heterogeneous-firms geography and trade model, where the three countries have different market (population) sizes. We show how the effects of the two policies differ, in particular for the country of intermediate size. Unless the intermediate country is very small, in a relative sense, it will gain industry when relocation costs are reduced, but lose industry when trade costs are reduced. The smallest country loses industry in both cases, but only experiences lower welfare in the case of lower relocation costs. Thus, the ranking of the policies from the point of view of the two small and intermediate countries tends to be the opposite.     

Productivity,earnings, and profit sharing — An econometric analysis of alternative models

The theoretical status of the relationship between productivity, wages, and profit sharing (PS) is poor. Only some alternative hypotheses can be formulated. From these explanations six different econometric models are derived. Using data of the German Socio-Economic Panel the models are estimated and tests and indicators are employed to choose the best model. Our investigation speaks in favour of hybrid simultaneous Tobit models where the level of profit sharing is positively correlated with productivity which induces positive wage effects on the one hand. But on the other hand the level of wages is also relevant to the question whether a firm introduces or decides to continuePS and which amount ofPS should be paid.What is obvious is not always true and introspection is a notoriously unreliable guide to empirical magnitudes. Blinder (1990, p.2)     

System analysis and path choice for modem agricultural development： a case study of Suzhou

From the view of system theory, modern agriculture in a region embodies elements conformity, structure optimization, multi-functionality and sustainable development. This paper first expounds on the relationship among agricultural elements, structure, function and development theoretically, compartmentalizes agriculture types based on human-land elements matching, and depicts the development path of agricultural multi-functionality. it shows that the matching of human-land elements is a key to agricultural types, and the multi-functionality is an indication of agricultural development stages. At last, as a case study of Suzhou in eastern coastal area, the paper analyzes the evolvement situation and developing mechanism and some typical models of modern agriculture which suit to agriculture system evolvement. The results .show that in Suzhou the agriculture productivity, has improved greatly; And along with the agriculture structure optimizing, agriculture function has translated from ＂production ＂ to ＂non- production and production ＂. With simulation of agricultural trend in Suzhou, it is .found that Suzhou has a LP- dependence （labor productivity） on agricultural element, so Suzhou will has much more potential in land productivity. Based on the above analysis on agricultural system, some typical patterns on modern agriculture in Suzhou are brought up, such as export-oriented agriculture, enterprises-leading agriculture, science and technology, parks agriculture, stereoseopic agriculture, and tourism and sightseeing agriculture.     

Estimating direct and indirect rebound effects for U.S. households with input–output analysis. Part 2: Simulation

This is the second part of a two-part paper that integrates economic and industrial ecology methods to estimate the indirect rebound effect from residential energy efficiency investments. We apply the model developed in part one to simulate the indirect rebound, given an estimate of the direct rebound, using a 2002 environmentally-extended input–output model and the 2004 Consumer Expenditure Survey (in 2002$) for the U.S. We find an indirect rebound of 5–15% in primary energy and CO₂e emissions, assuming a 10% direct rebound, depending on the fuel saved with efficiency and household income. The indirect rebound can be as high as 30–40% in NO_x or SO₂ emissions for efficiency in natural gas services. The substitution effect modeled in part one is small in most cases, and we discuss appropriate applications for proportional or income elasticity spending assumptions. Large indirect rebound effects occur as the U.S. electric grid becomes less-carbon intensive, in households with large transportation demands, or as energy prices increase. Even in extreme cases, there is limited evidence for backfire, or a rebound effect greater than 100%. Enacting pollution taxes or auctioned permits that internalize the externalities of energy use would ensure that rebound effects unambiguously increase consumers' welfare.     

Quo Vadis MRIO? Methodological, data and institutional requirements for multi-region input-output analysis

In order to understand wider sustainability impacts of consumption and to successfully promote and implement sustainable consumption and production policies, there is a need to capture the whole life-cycle impact of products and services across international supply chains. Multi-region input-output (MRIO) databases are a well described and suitable foundation for global sustainability analyses addressing a wide range of policy and research questions. In this paper we reflect on the reasons for the recent boom in MRIO compilation, summarise the current state of development and discuss future options for MRIO analysis. We list in detail the requirements for efficient and effective MRIO research and propose systemic and institutional changes. We deliberately try to go beyond existing ambitions for MRIO compilation and thus intend to stimulate discussion and to lay out the options for the future of MRIO research.     

A comparison of preferences for two GLP-1 products – liraglutide and exenatide – for the treatment of type 2 diabetes

Abstract

Objective:

To use time trade-off (TTO) to compare patient preferences for profiles of two glucagon-like peptide (GLP-1) products for the treatment of type 2 diabetes (liraglutide and exenatide) that vary on four key attributes – efficacy (as measured by hemoglobin A_1C), incidence of nausea, incidence of hypoglycemia, and dosing frequency (QD vs. BID) – and measure the contribution of those attributes to preferences.

Methods:

A total of 382 people with T2DM were recruited to participate in an internet-based survey consisting of a series of health-related questions, a conjoint exercise and a set of time trade-off items. In the conjoint exercise, respondents were presented with eight pairs of hypothetical GLP-1 profiles, and completed a time-tradeoff exercise for each pair.

Results:

The product profile representing liraglutide was preferred by 96% of respondents and resulted in significantly higher health utilities (0.038) than the product profile representing exenatide (0.978 vs. 0.94, p?<?0.05). Estimated preference scores from the conjoint analysis revealed that efficacy measured by hemoglobin A_1C is the most important attribute, followed by nausea, hypoglycemia, and dosing schedule.

Limitations:

On-line participants may not represent ‘typical’ type 2 diabetes patients, and brief product profiles represented results from clinical trials, not clinical practice

Conclusion:

Based on the four attributes presented, patients prefer liraglutide over exenatide. Preference is based on superior efficacy and less nausea more than less hypoglycemia and once-daily dosing.     

Aggregate production functions,growth economics,and the part‐time tyranny of the identity: a reply to Felipe and McCombie

A recent paper by Jesus Felipe and John McCombie argues that I have understated the importance of the value added identity for conventional estimates of production relationships. This reply seeks to clarify the areas of agreement and disagreement. It suggests that the problems raised by the accounting identity are genuine and deserve to be more widely known, but Felipe and McCombie have sometimes exaggerated the scope of the argument.     

FDI,income inequality and poverty: a time series analysis of Portugal, 1973–2016

Portuguese Economic Journal - Using time series data for Portugal between 1973 and 2016, this paper examines to what extent, inward FDI contributes to income inequality and poverty in the long-run....     

From “Decent work and economic growth” to “Sustainable work and economic degrowth”: a new framework for SDG 8

Empirica - The sustainable Development Goal (SDGs) have successfully raised awareness and built momentum for taking collective action, while also remaining uncritical of the central causes of the...