Voluntary Environmental Agreements vs. Emission Taxes in Strategic Trade Models

The purpose of the paper is to narrow the gap between the widespread use of voluntary agreements and research on the rationale of such approaches. A topical example are voluntary agreements of many industries to reduce carbon dioxide emissions because of global warming. If the industry anticipates that taxes and fees will be introduced in the coming years, it seems rational to act in advance in order to mitigate the tax levels.The conventional approach in strategic trade and tax models was to look at a two-stage game where governments set taxes first and then firms react. In such a policy regime the government is concerned about the international competitiveness of its firms and sets taxes below marginal damages. In this paper, we consider a policy regime with a reversed timing. Firms commit themselves in the face of emission taxes to abatement efforts and to lower levels of the environmentally intensive output. Then the government introduces the tax. Under this timing of strategies the tax is equal to marginal damage. Firms waive profit and reduce output in order to use less of the polluting input. The reward for this behavior will be a less strict use of policy instruments and hence lower abatement costs in the near future.     

Energy Tax and Competition in Energy Efficiency: The Case of Consumer Durables

The purpose of this paper is to analyze the role of anenergy tax on technical improvements and on prices ofconsumer durables induced by strategic competition inenergy efficiency. If the gasoline tax is raised thisdoes in principle not affect the producers of carsbecause the motorist pays for it in terms of a highercost of using the car. This, however, affects the unitsales of car producers because of substitution towardsother modes of transportation. A second element ofreaction to energy price variation is an indirect oneand relates to the effect of energy prices ontechnology. Competition forces car producers todevelop more energy efficient cars in order to reducethe cost of using a car. This indirect effect canpartly offset the direct effect of higher energyprices on demand if it is profitable for theautomobile industry to engineer more energy efficientequipment. We will analyze the impact of an energy taxon energy efficiency and on the price of a durablegood. This will be done within the framework of aduopoly competing in prices and in the energyefficiency of its products. The government chooses awelfare maximizing energy tax as an incentive toinnovate. Then we will analyze a strategic two-stagedecision process in which the duopolists first decideabout energy efficiency and then compete in prices.     

Der Mechanismus der Verkehrswirtschaft

Ohne Zusammenfassung     

The link between macroeconomic performance and variability in the UK

This paper examines the link between inflation, output growth and their respective variabilities. We employ a bivariate GARCH model, which incorporates mean and level effects, to investigate in a unified empirical framework all the possible interactions between the four variables. We show that not only does variability affect performance but the latter influences the former as well. Specifically, inflation has a positive impact on both variabilities.     

Evaluating the cost-effectiveness of an early detection of Parkinson's disease through innovative technology

ABSTRACT

Early detection of Parkinson's disease (PD) is critically important because it can increase patient quality of life and save treatment costs. An innovative approach for early detection of PD is to use nonwearable sensors that are capable of capturing skeletal joint data. This article evaluates the cost-effectiveness of this sensor-based intervention considering the quality-adjusted life years (QALYs) and the associated costs. The results indicate that the intervention would be cost-effective if devices were deployed for community health screening in public places such as health fairs and pharmacies.     

Matching Organizational Structure with Firm Attributes: A Study of Master Limited Partnerships

To create value and reduce agency costs, firms adopt available organizational structures that match their attributes. This paper studies the characteristics of firms that choose to become master limited partnerships (MLPs). The MLP sample is dominated by firms in low-growth industries that have highly focused operations and superior profitability compared to theirindustry peers. After becoming an MLP, sample firms reduce capital expenditures and increase cash distributions, taking advantage of their focus, profitability, and status as non-taxable entities. A subsample of MLPs subsequently change back to corporate form. After becomingcorporations, these firms reverse course by cutting cash distributions and increasing capital spending. This cycle demonstrates how firms restructure to adopt organizational forms that best fit their needs.     

Matching Organizational Structure with Firm Attributes: A Study of Master Limited Partnerships

To create value and reduce agency costs, firms adopt availableorganizational structures that match their attributes. Thispaper studies the characteristics of firms that choose to becomemaster limited partnerships (MLPs). The MLP sample is dominatedby firms in low-growth industries that have highly focused operationsand superior profitability compared to their industry peers.After becoming an MLP, sample firms reduce capital expendituresand increase cash distributions, taking advantage of their focus,profitability, and status as non-taxable entities. A subsampleof MLPs subsequently change back to corporate form. After becomingcorporations, these firms reverse course by cutting cash distributionsand increasing capital spending. This cycle demonstrates howfirms restructure to adopt organizational forms that best fittheir needs.     

An application of duality theory: A portfolio composition of the West-German private non-bank sector, 1968–1975

The objective of this paper is to apply the duality approach in the theory of consumer behavior for deriving demand systems to analyse the allocation of assets and liabilities of the private non-bank sector. A commodity approach is chosen where service flows of assets, physical capital and liabilities enter the direct utility function and the corresponding interest rates and price of capital enter the indirect utility function. The approach results in a system of demand and supply functions for optimal stocks consistent with utility maximization. For econometric implementation an overall model in an asset aggregate, capital and a liability aggregate is fitted first. Next, two submodels are constructed for an optimal allocation of the asset aggregate and the liability aggregate to its various components that made up the aggregate. Empirical results for time series data of the German private non-bank sector are presented.