Price transmission in the international skim milk powder markets

This article investigates the strength and the pattern of spatial price linkages in skimmed milk powder markets using monthly wholesale price data from three major producers and exporters (the U.S.A., the E.U., and Oceania) and the nonlinear autoregressive distributed lag model. The results suggest that prices in the three regions considered are linked with stable long-run relationships. The law of one price, however, does not hold. The dominant pattern of transmission in the long run is asymmetric involving positive price stocks to be transmitted with higher intensity compared to negative prices shocks; asymmetries in price transmission exist in the short run as well.     

Testing for the LOP under nonlinearity: an application to four major EU pork markets

This article develops an econometric procedure to test the validity of the Law of One Price (LOP) under nonlinearity and to distinguish between its strong and its weak version. The procedure is applied to four major EU pork markets using weekly prices from 1991 to 2008. The empirical results suggest that the markets are well integrated, with deviations from the steady‐state price differentials corrected nonlinearly. The LOP is valid for all market pairs and for the pair Germany–Spain it holds in its strong version.     

Optimal investment with stock repurchase and financing as signals

When management has private information it has an incentiveto finance investment by issuing a security that is overpricedin the market. The market's valuation of the issued securitymay lead management either to forego profitable investmentsor to invest suboptimally. With investment fixed, there existfully revealing signaling equilibria in which the covenantsof the issued claim serve as signals. A straight bond issuecannot provide the signals but a convertible bond issue can.With investment endogenous, fully revealing equilibria existin which the par value of a straight bond issue and the announcedlevel of investment jointly serve as signals and investmentis optimal. The article also investigates the role of a stockrepurchase in these equilibria.     

ASPECTS OF POVERTY IN GREECE

Poverty in Greece is measured and decomposed using the primary consumption expenditure data of two Greek Household Expenditure Surveys (1974, 1981/82). Poverty is found to be associated with particular characteristics of the household or the household head. These characteristics are residence in rural areas, large household size, low educational level and old age of the household head. Poverty is also very high among members of households headed by farmers and retired persons. Both absolute and relative poverty declined substantially between 1974 and 1982. Changes in the structure of the population had a positive effect on poverty alleviation.     

World Energy Council’s Global Energy Scenarios to 2060

Since 1970, global energy consumption has more than doubled. Conventional resources, in particular oil, gas and coal, had a dominant share in supply and covered most of the growth in demand in the past. Even in 2015, these fossil fuels still accounted for more than 80% of global primary energy consumption. The contribution of renewable energies to the total electricity generation was 23% in 2015, the same share as in 1970. Developments in the coming decades will differ substantially, however. Total energy consumption will rise at a much more moderate pace than in the past, e.?g. by up to one third by 2060. Electricity consumption will double during this period. But even this is a considerable slowdown in growth compared with the five-fold increase seen between 1970 and 2015. And, unlike in the past, the emerging rise in consumption will essentially be covered by renewable energy sources. This is true especially for the electricity sector. This comparison with developments in the past shows the extent of the global energy transformation that may be expected in future. These developments are reflected in three global scenarios, which were published by the World Energy Council in October 2016. The results of this flagship study World Energy Scenarios to 2060 are mirrored with the main findings of the IEA’s World Energy Outlook and the U.S. EIA’s International Energy Outlook. The most important challenge indicated by the results of the mentioned studies is: the transformation, which is expected in the covered scenarios is not sufficient, in order to achieve the target of limiting the global temperature increase to less than 2 degrees Celsius compared to pre-industrial levels that was agreed by the international community of states in Paris at the end of 2015. It will be highlighted, which strategies could meet the requirement cost-efficiently—a prerequisite for its success.