Gas storage valuation under limited market liquidity: an application in Germany

Natural gas storages may be valued by applying real options theory. However, it is crucial to take into account that most evolving gas markets, like the German spot market, lack liquidity. This implies that large-scale operation of storages reduces the achievable operating margin since storage operators will pay higher prices for injected gas and earn less on withdrawn gas. Optimal storage operation will take this into account. In this context, considering storage operators as price takers does not account for interdependencies of storage operations and market prices. This paper offers a novel approach to storage valuation taking into account the effect of management decisions on market prices. The methodology proposed within this paper determines the optimal production schedule and value by determining the stochastic differential equation describing the storage value and then applying a finite difference scheme. We find that limited liquidity lowers the storage value and reduces withdrawal and injection amounts. Further, we observe decreasing reservation prices for injection and withdrawing for growing illiquidity resulting in a left shift of injection and withdrawing threshold prices.     

Modelling bonds and credit default swaps using a structural model with contagion

This paper develops a two-dimensional structural framework for valuing credit default swaps and corporate bonds in the presence of default contagion. Modelling the values of related firms as correlated geometric Brownian motions with exponential default barriers, analytical formulae are obtained for both credit default swap spreads and corporate bond yields. The credit dependence structure is influenced by both a longer-term correlation structure as well as by the possibility of default contagion. In this way, the model is able to generate a diverse range of shapes for the term structure of credit spreads using realistic values for input parameters.     

Expenditure elasticities of the demand for leisure services

Although some research has already focused on the analysis of expenditure elasticities of leisure demand, some shortcomings with regard to the content and the underlying theoretical model as well as the applied methods exist. This article aims at avoiding these problems to provide consistent derivatives of leisure service expenditure elasticities. Therefore, a regular demand system is derived from microeconomic duality theory. To implement leisure specific demand factors (i.e. demand- and supply-based sports and recreational opportunities as well as sports and recreational preferences) while still being consistent with neoclassical demand theory, the basic model is extended by applying the demographic translation framework. Data of the continuous household budget survey (n?=?7724) from Germany is used for the estimation of the derived demand system. It is shown how sensitive the results are depending on the applied (censored) regression model: 16 out of 18 analysed services are indicated as luxury goods based on the findings of the Tobit model type I but as necessities based on the findings of the Tobit model type II. Possible implications are presented and discussed.     

Gender differences of shoppers in the marketing and management of retail agglomerations

This paper aims to first identify gender differences in perception and evaluation of retail agglomerations, and second, discuss the implications of these differences for marketing and management. Based on a conceptual model 2151 agglomeration shoppers were surveyed using interviewer-administered questionnaires. Structural equation modelling revealed that accessibility, parking and infrastructure are perceived differently between gender groups. The attractiveness in terms of satisfaction, retention proneness and patronage intention was also evaluated distinctively. Nevertheless, when examining the impact of the perceived attributes on agglomeration attractiveness, there was no difference. In both settings, the retail tenant mix and the atmosphere are the main antecedents of attractiveness. Finally, an importance–performance analysis offers managers a method for prioritising their marketing efforts considering gender differences.     

Umverteilung durch öffentliche Realtransfers in der Hochschulbildung?

To support higher education, the public sector in Germany makes inter alia use of transfers in kind. With respect to “chances for education”, the social group-specific redistributive effects were quantified for various transfers in kind. The results show that especially students with high social backgrounds benefit from this type of support. A look “behind the scenes” reveals, however, that it is not primarily the transfer instrument but rather the allocation mechanisms of the upstream stages of the educational system which are constitutive for the redistribution effects.     

Importance of spatial proximity between venture capital investors and investees in Germany

Based on 1182 dyads of venture capitalists and German portfolio companies involved in a financing round between 2002 and 2007, the study here examines the importance of spatial proximity between investors and investees in a dense economy. Analysis of this data shows that the probability of a financing relationship decreases by 8% if the journey time increases by one standard deviation. For deals involving very small or very large investment sums, and for less experienced venture capitalists and lead investors, spatial proximity is particularly important. The results suggest that even in economies with a dense infrastructure such as Germany spatial proximity between investor and investee impacts the likelihood of an investment.     

The regulation of water services in the EU

The European Commission’s proposal for a Directive on the award of concession contracts has sparked vigorous public debate and intense opposition. This Directive is controversial because of the nature of the policy it proposes and because the sectors involved are highly sensitive. This Forum examines the weaknesses of the Commission’s proposal and presents an overview of the current issues in water regulation and the provision of water services. The authors analyse the regulation of natural monopolies, water efficiency and upstream competition in the water industry.     

Health Information on the Internet

Electronic Health (e-Health) increasingly strives to provide health information and services to healthcare stakeholders via the Internet, and to actively involve patients in their care. One major chance for these participatory healthcare and patient-centered approaches that integrate patients in healthcare are the phenomena and ideas associated with providing information and healthcare on the Internet. This paper examines the existing body of knowledge on online health information and explores the current state of research through a review of literature as well as past and current research projects. The fundamental categories of the analysis represent the stakeholders in the healthcare sector, the connecting information flows, the information-transferring technological applications, as well as the categories of the TEMPEST model. Based on these findings, causes and future research fields are discussed. The technological category has the largest share of all categories. Based on these findings, causes and future research fields are discussed.